Adjustment of Civil Monetary Penalties for Inflation, 2033-2036 [2020-00413]
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Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
1. The authority citation for part 165
continues to read as follows:
■
Authority: 46 U.S.C. 70034, 70051; 33 CFR
1.05–1, 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 0170.1.
■
2. Add § 165.516 to read as follows:
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§ 165.516 Safety Zones; Waterway
Training Areas, Captain of the Port
Maryland-National Capital Region Zone.
(a) Regulated areas. The following
areas are established as safety zones
(these coordinates are based on Datum
NAD 83):
(1) Waterway training area Alpha. All
waters of the Patapsco River,
encompassed by a line connecting the
following points beginning at
39°14′07.98″ N, 076°32′58.50″ W; thence
to 39°13′34.98″ N, 076°32′24.00″ W;
thence to 39°13′22.50″ N, 076°32′28.98″
W; thence to 39°13′21.00″ N,
076°33′12.00″ W; and back to the
beginning point.
(2) Waterway training area Bravo. All
waters of the Chesapeake Bay,
encompassed by a line connecting the
following points beginning at
39°05′25.98″ N, 076°20′20.04″ W; thence
to 39°04′40.02″ N, 076°19′28.98″ W;
thence to 39°02′45.00″ N, 076°22′09.00″
W; thence to 39°03′30.00″ N,
076°23′00.00″ W; and back to the
beginning point.
(3) Waterway training area Charlie.
All waters of the Potomac River,
encompassed by a line connecting the
following points beginning at
38°00′28.80″ N, 076°22′43.80″ W; thence
to 38°01′18.00″ N, 076°21′54.00″ W;
thence to 38°05′06.00″ N, 076°27′43.20″
W; thence to 38°04′40.20″ N,
076°28′34.20″ W; and back to the
beginning point.
(4) Waterway training area Delta. All
waters of the Potomac River,
encompassed by a line connecting the
following points beginning at
38°32′31.14″ N, 077°15′29.82″ W; thence
to 38°32′48.18″ N, 077°15′54.24″ W;
thence to 38°33′34.56″ N, 077°15′07.20″
W; thence to 38°33′15.06″ N,
077°14′39.54″ W; and back to the
beginning point.
(b) Definitions. As used in this
section—
Captain of the Port (COTP) means the
Commander, U.S. Coast Guard Sector
Maryland-National Capital Region.
Designated representative means a
Coast Guard commissioned, warrant, or
petty officer designated by or assisting
the COTP in the enforcement of the
safety zones.
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Training participant means a person
or vessel authorized by the COTP as
participating in the training event or
otherwise designated by the COTP or
the COTP’s designated representative as
having a function tied to the training
event.
(c) Regulations. (1) Under the general
safety zone regulations in subpart C of
this part, you may not enter the safety
zones described in paragraph (a) of this
section unless authorized by the COTP
or the COTP’s designated representative.
(2) Except for training participants, all
vessels underway within this safety
zone at the time it is activated are to
depart the zone. To seek permission to
enter, contact the COTP or the COTP’s
designated representative by telephone
number 410–576–2693 or on Marine
Band Radio VHF–FM channel 16 (156.8
MHz). The Coast Guard vessels
enforcing this section can be contacted
on Marine Band Radio VHF–FM
channel 16 (156.8 MHz). Those in the
safety zone must comply with all lawful
orders or directions given to them by the
COTP or the COTP’s designated
representative.
(3) The U.S. Coast Guard may be
assisted in the patrol and enforcement
of the safety zone by Federal, State, and
local agencies.
(d) Enforcement. The safety zones
created by this section will be enforced
only upon issuance of a Broadcast
Notice to Mariners (BNM) by the COTP
or the COTP’s representative, as well as
on-scene notice or other appropriate
means in accordance with § 165.7.
Dated: January 7, 2020.
Joseph B. Loring,
Captain, U.S. Coast Guard, Captain of the
Port Maryland-National Capital Region.
[FR Doc. 2020–00280 Filed 1–13–20; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF EDUCATION
34 CFR Parts 36 and 668
RIN 1801–AA20
Adjustment of Civil Monetary Penalties
for Inflation
Department of Education.
Final regulations.
AGENCY:
ACTION:
The Department of Education
(Department) issues these final
regulations to adjust the Department’s
civil monetary penalties (CMPs) for
inflation. This adjustment is required by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (2015 Act), which amended the
Federal Civil Penalties Inflation
SUMMARY:
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2033
Adjustment Act of 1990 (Inflation
Adjustment Act). These final regulations
provide the 2020 annual inflation
adjustments being made to the penalty
amounts in the Department’s final
regulations published in the Federal
Register on February 1, 2019 (2019 final
rule). This rule was previously reported
as RIN 1801–AA19.
DATES: These regulations are effective
January 14, 2020. The adjusted CMPs
established by these regulations are
applicable only to civil penalties
assessed after January 14, 2020 whose
associated violations occurred after
November 2, 2015.
FOR FURTHER INFORMATION CONTACT:
Levon Schlichter, U.S. Department of
Education, Office of the General
Counsel, 400 Maryland Avenue SW,
Room 6E235, Washington, DC 20202–
2241. Telephone: (202) 453–6387.
Email: levon.schlichter@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service, toll free, at 1–800–877–8339.
Individuals with disabilities can
obtain this document in an accessible
format (e.g., braille, large print,
audiotape, or compact disc) on request
to the contact person listed in this
section.
SUPPLEMENTARY INFORMATION:
Background: A CMP is defined in the
Inflation Adjustment Act (28 U.S.C.
2461 note) as any penalty, fine, or other
sanction that is (1) for a specific
monetary amount as provided by
Federal law, or has a maximum amount
provided for by Federal law; (2)
assessed or enforced by an agency
pursuant to Federal law; and (3)
assessed or enforced pursuant to an
administrative proceeding or a civil
action in the Federal courts.
The Inflation Adjustment Act
provides for the regular evaluation of
CMPs to ensure that they continue to
maintain their deterrent value. The
Inflation Adjustment Act required that
each agency issue regulations to adjust
its CMPs beginning in 1996 and at least
every four years thereafter. The
Department published its most recent
cost adjustment to its CMPs in the
Federal Register on February 1, 2019
(84 FR 971), and those adjustments
became effective on the date of
publication.
The 2015 Act (section 701 of Pub. L.
114–74) amended the Inflation
Adjustment Act to improve the
effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1)
Adjust the level of CMPs with an initial
‘‘catch-up’’ adjustment through an
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Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations
interim final rule (IFR); and (2) make
subsequent annual adjustments for
inflation. Catch-up adjustments are
based on the percentage change between
the Consumer Price Index for all Urban
Consumers (CPI–U) for the month of
October in the year the penalty was last
adjusted by a statute other than the
Inflation Adjustment Act, and the
October 2015 CPI–U. Annual inflation
adjustments are based on the percentage
change between the October CPI–U
preceding the date of each statutory
adjustment, and the prior year’s October
CPI–U.1 The Department published an
IFR with the initial ‘‘catch-up’’ penalty
adjustment amounts on August 1, 2016
(81 FR 50321).
In these final regulations, based on
the CPI–U for the month of October
2019, not seasonally adjusted, we are
annually adjusting each CMP amount by
a multiplier for 2020 of 1.01764, as
directed by the Office of Management
and Budget (OMB) Memorandum No.
M–20–05 issued on December 16, 2019.
The Department’s Civil Monetary
Penalties: The following analysis
calculates new CMPs for penalty
statutes in the order in which they
appear in 34 CFR 36.2. The penalty
amounts are being adjusted up based on
the multiplier of 1.01764 provided in
OMB Memorandum No. M–20–05.
Statute: 20 U.S.C. 1015(c)(5).
Current Regulations: The CMP for 20
U.S.C. 1015(c)(5) (Section 131(c)(5) of
the Higher Education Act of 1965, as
amended (HEA)), as last set out in
statute in 1998 (Pub. L. 105–244, title I,
sec. 101(a), October 7, 1998, 112 Stat.
1602), is a fine of up to $25,000 for
failure by an institution of higher
education (IHE) to provide information
on the cost of higher education to the
Commissioner of Education Statistics. In
the 2019 final rule, we increased this
amount to $38,549.
New Regulations: The new penalty for
this section is $39,229.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $38,549 × 1.01764 =
$39,229.00, which makes the adjusted
penalty $39,229, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20
U.S.C. 1022d(a)(3) (Section 205(a)(3) of
the HEA), as last set out in statute in
2008 (Pub. L. 110–315, title II, sec.
201(2), August 14, 2008, 122 Stat. 3147),
is a fine of up to $27,500 for failure by
1 If a statute that created a penalty is amended to
change the penalty amount, the Department does
not adjust the penalty in the year following the
adjustment.
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an IHE to provide information to the
State and the public regarding its
teacher-preparation programs. In the
2019 final rule, we increased this
amount to $32,110.
New Regulations: The new penalty for
this section is $32,676.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $32,110 × 1.01764 =
$32,676.42, which makes the adjusted
penalty $32,676, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20
U.S.C. 1082(g) (Section 432(g) of the
HEA), as last set out in statute in 1986
(Pub. L. 99–498, title IV, sec. 402(a),
October 17, 1986, 100 Stat. 1401), is a
fine of up to $25,000 for violations by
lenders and guaranty agencies of Title
IV of the HEA, which authorizes the
Federal Family Education Loan
Program. In the 2019 final rule, we
increased this amount to $57,317.
New Regulations: The new penalty for
this section is $58,328.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $57,317 × 1.01764 =
$58,328.07, which makes the adjusted
penalty $58,328, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20
U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in
statute in 1986 (Pub. L. 99–498, title IV,
sec. 407(a), October 17, 1986, 100 Stat.
1488), is a fine of up to $25,000 for an
IHE’s violation of Title IV of the HEA or
its implementing regulations. Title IV
authorizes various programs of student
financial assistance. In the 2019 final
rule, we increased this amount to
$57,317.
New Regulations: The new penalty for
this section is $58,328.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $57,317 × 1.01764 =
$58,328.07, which makes the adjusted
penalty $58,328, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20
U.S.C. 1228c(c)(2)(E) (Section 429 of the
General Education Provisions Act), as
set out in statute in 1994 (Pub. L. 103–
382, title II, sec. 238, October 20, 1994,
108 Stat. 3918), is a fine of up to $1,000
for an educational organization’s failure
to disclose certain information to minor
students and their parents. In the 2019
final rule, we increased this amount to
$1,692.
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New Regulations: The new penalty for
this section is $1,722.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $1,692 × 1.01764 =
$1,721.85, which makes the adjusted
penalty $1,722, when rounded to the
nearest dollar.
Statute: 31 U.S.C. 1352(c)(1) and
(c)(2)(A).
Current Regulations: The CMPs for 31
U.S.C. 1352(c)(1) and (c)(2)(A), as set
out in statute in 1989 (Pub. L. 101–121,
title III, sec. 319(a)(1), October 23, 1989,
103 Stat. 750), are a fine of $10,000 to
$100,000 for recipients of Government
grants, contracts, etc. that improperly
lobby Congress or the Executive Branch
with respect to the award of
Government grants and contracts. In the
2019 final rule, we increased these
amounts to $20,134 to $201,340.
New Regulations: The new penalties
for these sections are $20,489 to
$204,892.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new minimum penalty is
calculated as follows: $20,134 × 1.01764
= $20,489.16, which makes the adjusted
penalty $20,489, when rounded to the
nearest dollar. The new maximum
penalty is calculated as follows:
$201,340 × 1.01764 = $204,891.64,
which makes the adjusted penalty
$204,892, when rounded to the nearest
dollar.
Statute: 31 U.S.C. 3802(a)(1) and
(a)(2).
Current Regulations: The CMPs for 31
U.S.C. 3802(a)(1) and (a)(2), as set out in
statute in 1986 (Pub. L. 99–509, title VI,
sec. 6103(a), Oct. 21, 1986, 100 Stat.
1937), are a fine of up to $5,000 for false
claims and statements made to the
Government. In the 2019 final rule, we
increased this amount to $11,463.
New Regulations: The new penalty for
this section is $11,665.
Reason: Using the multiplier of
1.01764 from OMB Memorandum No.
M–20–05, the new penalty is calculated
as follows: $11,463 × 1.01764 =
$11,665.21, which makes the adjusted
penalty $11,665, when rounded to the
nearest dollar.
Executive Orders 12866, 13563, and
13771
Regulatory Impact Analysis
Under Executive Order 12866, it must
be determined whether this regulatory
action is ‘‘significant’’ and, therefore,
subject to the requirements of the
Executive order and subject to review by
OMB. Section 3(f) of Executive Order
12866 defines a significant regulatory
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Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations
action as an action likely to result in a
rule that may—
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or Tribal governments or
communities in a material way (also
referred to as ‘‘economically significant’’
regulations);
(2) Create serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impacts of entitlement grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
stated in the Executive order.
We have determined that these final
regulations: (1) Exclusively implement
the annual adjustment; (2) are consistent
with OMB Memorandum No. M–20–05;
and (3) have an annual impact of less
than $100 million. Therefore, based on
OMB Memorandum No. M–20–05, this
is not a significant regulatory action
subject to review by OMB under section
3(f) of Executive Order 12866.
We have also reviewed these
regulations under Executive Order
13563, which supplements and
explicitly reaffirms the principles,
structures, and definitions governing
regulatory review established in
Executive Order 12866. To the extent
permitted by law, Executive Order
13563 requires that an agency—
(1) Propose or adopt regulations only
upon a reasoned determination that
their benefits justify their costs
(recognizing that some benefits and
costs are difficult to quantify);
(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives and
taking into account, among other things,
and to the extent practicable, the costs
of cumulative regulations;
(3) In choosing among alternative
regulatory approaches, select those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance a
regulated entity must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including economic incentives—such as
user fees or marketable permits—to
encourage the desired behavior, or
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providing information that enables the
public to make choices.
Executive Order 13563 also requires
an agency ‘‘to use the best available
techniques to quantify anticipated
present and future benefits and costs as
accurately as possible.’’ The Office of
Information and Regulatory Affairs of
OMB has emphasized that these
techniques may include ‘‘identifying
changing future compliance costs that
might result from technological
innovation or anticipated behavioral
changes.’’
We are issuing these final regulations
as required by statute and in accordance
with OMB Memorandum No. M–20–05.
The Secretary has no discretion to
consider alternative approaches as
delineated in the Executive order. Based
on this analysis and the reasons stated
in the preamble, the Department
believes that these final regulations are
consistent with the principles in
Executive Order 13563.
Under Executive Order 13771, for
each new regulation that the
Department proposes for notice and
comment or otherwise promulgates that
is a significant regulatory action under
Executive Order 12866 and that imposes
total costs greater than zero, it must
identify two deregulatory actions. For
fiscal year 2020, any new incremental
costs associated with a new regulation
must be fully offset by the elimination
of existing costs through deregulatory
actions. These final regulations are not
a significant regulatory action.
Therefore, the requirements of
Executive Order 13771 do not apply.
Waiver of Rulemaking and Delayed
Effective Date
Under the Administrative Procedure
Act (APA) (5 U.S.C. 553), the
Department generally offers interested
parties the opportunity to comment on
proposed regulations. However, section
4(b)(2) of the 2015 Act (28 U.S.C. 2461
note) provides that the Secretary can
adjust these 2020 penalty amounts
notwithstanding the requirements of 5
U.S.C. 553. Therefore, the requirements
of 5 U.S.C. 553 for notice and comment
and delaying the effective date of a final
rule do not apply here.
Regulatory Flexibility Act Certification
Pursuant to 5 U.S.C. 601(2), the
Regulatory Flexibility Act applies only
to rules for which an agency publishes
a general notice of proposed
rulemaking. The Regulatory Flexibility
Act does not apply to this rulemaking
because section 4(b)(2) of the 2015 Act
(28 U.S.C. 2461 note) provides that the
Secretary can adjust these 2020 penalty
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2035
amounts without publishing a general
notice of proposed rulemaking.
Paperwork Reduction Act of 1995
These regulations do not contain any
information collection requirements.
Intergovernmental Review
This program is not subject to
Executive Order 12372 and the
regulations in 34 CFR part 79.
Assessment of Educational Impact
Based on our own review, we have
determined that these regulations do not
require transmission of information that
any other agency or authority of the
United States gathers or makes
available.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. You may access the official
edition of the Federal Register and the
Code of Federal Regulations at
www.govinfo.gov. At this site you can
view this document, as well as all other
documents of this Department
published in the Federal Register, in
text or Portable Document Format
(PDF). To use PDF you must have
Adobe Acrobat Reader, which is
available free at the site.
You may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
List of Subjects
34 CFR Part 36
Claims, Fraud, Penalties.
34 CFR Part 668
Administrative practice and
procedure, Colleges and universities,
Consumer protection, Grant programs—
education, Loan programs—education,
Reporting and recordkeeping
requirements, Selective Service System,
Student aid, Vocational education.
Dated: January 9, 2020.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the
preamble, the Secretary amends parts 36
and 668 of title 34 of the Code of
Federal Regulations as follows:
PART 36—ADJUSTMENT OF CIVIL
MONETARY PENALTIES FOR
INFLATION
1. The authority citation for part 36
continues to read as follows:
■
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2036
Federal Register / Vol. 85, No. 9 / Tuesday, January 14, 2020 / Rules and Regulations
Authority: 20 U.S.C. 1221e–3 and 3474; 28
U.S.C. 2461 note, as amended by § 701 of
Pub. L. 114–74, unless otherwise noted.
2. Section 36.2 is amended by:
a. In the introductory text, removing
‘‘Table I’’ and adding ‘‘Table 1 of this
section’’ in its place.
■
■
b. Redesignating Table I as Table 1
and revising newly redesignated Table
1.
■ c. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
§ 36.2
*
Penalty adjustment.
*
*
*
*
TABLE 1 TO § 36.2—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS
Statute
Description
20 U.S.C. 1015(c)(5) (Section 131(c)(5)
of the Higher Education Act of 1965
(HEA)).
20 U.S.C. 1022d(a)(3) (Section 205(a)(3)
of the HEA).
Provides for a fine, as set by Congress in 1998, of up to $25,000 for failure by an
institution of higher education (IHE) to provide information on the cost of higher
education to the Commissioner of Education Statistics.
Provides for a fine, as set by Congress in 2008, of up to 27,500 for failure by an
IHE to provide information to the State and the public regarding its teacher-preparation programs.
Provides for a civil penalty, as set by Congress in 1986, of up to 25,000 for violations by lenders and guaranty agencies of Title IV of the HEA, which authorizes
the Federal Family Education Loan Program.
Provides for a civil penalty, as set by Congress in 1986, of up to 25,000 for an
IHE’s violation of Title IV of the HEA, which authorizes various programs of student financial assistance.
Provides for a civil penalty, as set by Congress in 1994, of up to 1,000 for an educational organization’s failure to disclose certain information to minor students
and their parents.
Provides for a civil penalty, as set by Congress in 1989, of 10,000 to 100,000 for
recipients of Government grants, contracts, etc. that improperly lobby Congress
or the Executive Branch with respect to the award of Government grants and
contracts.
Provides for a civil penalty, as set by Congress in 1986, of up to 5,000 for false
claims and statements made to the Government.
20 U.S.C. 1082(g) (Section 432(g) of the
HEA).
20
U.S.C.
1094(c)(3)(B)
487(c)(3)(B) of the HEA).
(Section
20 U.S.C. 1228c(c)(2)(E) (Section 429 of
the General Education Provisions Act).
31 U.S.C. 1352(c)(1) and (c)(2)(A) ...........
31 U.S.C. 3802(a)(1) and (a)(2) ...............
PART 668—STUDENT ASSISTANCE
GENERAL PROVISIONS
3. The authority citation for part 668
continues to read as follows:
■
Authority: 20 U.S.C. 1001–1003, 1070a,
1070g, 1085, 1087b, 1087d, 1087e, 1088,
1091, 1092, 1094, 1099c, 1099c–1, 1221e–3,
and 3474; Pub. L. 111–256, 124 Stat. 2643;
unless otherwise noted.
§ 668.84
[Amended]
4. Section 668.84(a)(1) introductory
text is amended by removing the
number ‘‘$57,317’’ and adding in its
place the number ‘‘$58,328’’.
■
[FR Doc. 2020–00413 Filed 1–13–20; 8:45 am]
BILLING CODE 4000–01–P
POSTAL SERVICE
39 CFR Part 233
Inspection Service Authority; Civil
Monetary Penalty Inflation Adjustment
lotter on DSKBCFDHB2PROD with RULES
New maximum
(and minimum,
if applicable)
penalty
amount
Postal ServiceTM.
ACTION: Interim final rule.
AGENCY:
This document updates postal
regulations by implementing inflation
adjustments to civil monetary penalties
that may be imposed under consumer
SUMMARY:
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protection and mailability provisions
enforced by the Postal Service pursuant
to the Deceptive Mail Prevention and
Enforcement Act and the Postal
Accountability and Enhancement Act.
These adjustments are required under
the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. This document includes the
adjustments for 2020 for statutory civil
monetary penalties subject to the 2015
Act.
DATES: Effective date: January 14, 2020.
FOR FURTHER INFORMATION CONTACT:
Steven Sultan, (202) 268–7385,
SESultan@uspis.gov.
SUPPLEMENTARY INFORMATION: The
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (2015 Act), Public Law 114–74,
129 Stat. 584, amended the Federal Civil
Penalties Inflation Adjustment Act of
1990 (1990 Act), Public Law 101–410,
104 Stat. 890 (28 U.S.C. 2461 note), to
improve the effectiveness of civil
monetary penalties and to maintain
their deterrent effect. Section 3 of the
1990 Act specifically includes the Postal
Service in the definition of ‘‘agency’’
subject to its provisions.
PO 00000
Frm 00030
Fmt 4700
Sfmt 4700
$39,229
32,676
58,328
58,328
1,722
20,489 to
204,892
11,665
Beginning in 2017, the 2015 Act
requires the Postal Service to make an
annual adjustment for inflation to civil
penalties that meet the definition of
‘‘civil monetary penalty’’ under the
1990 Act. The Postal Service must make
the annual adjustment for inflation and
publish the adjustment in the Federal
Register by January 15 of each year.
Each penalty will be adjusted as
instructed by the Office of Management
and Budget (OMB) based on the
Consumer Price Index (CPI–U) from the
most recent October. OMB has
furnished detailed instructions
regarding the annual adjustment for
2020 in memorandum M–20–05,
Implementation of Penalty Inflation
Adjustments for 2020, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (December 16, 2019), https://
www.whitehouse.gov/wp-content/
uploads/2019/12/M-20-05.pdf. This
year, OMB has advised that an
adjustment multiplier of 1.01764 will be
used. The new penalty amount must be
rounded to the nearest dollar.
The 2015 Act allows the interim final
rule and annual inflation adjustments to
be published without prior public
E:\FR\FM\14JAR1.SGM
14JAR1
]]>Agencies
[Federal Register Volume 85, Number 9 (Tuesday, January 14, 2020)]
[Rules and Regulations]
[Pages 2033-2036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00413]
=======================================================================
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DEPARTMENT OF EDUCATION
34 CFR Parts 36 and 668
RIN 1801-AA20
Adjustment of Civil Monetary Penalties for Inflation
AGENCY: Department of Education.
ACTION: Final regulations.
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SUMMARY: The Department of Education (Department) issues these final
regulations to adjust the Department's civil monetary penalties (CMPs)
for inflation. This adjustment is required by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act),
which amended the Federal Civil Penalties Inflation Adjustment Act of
1990 (Inflation Adjustment Act). These final regulations provide the
2020 annual inflation adjustments being made to the penalty amounts in
the Department's final regulations published in the Federal Register on
February 1, 2019 (2019 final rule). This rule was previously reported
as RIN 1801-AA19.
DATES: These regulations are effective January 14, 2020. The adjusted
CMPs established by these regulations are applicable only to civil
penalties assessed after January 14, 2020 whose associated violations
occurred after November 2, 2015.
FOR FURTHER INFORMATION CONTACT: Levon Schlichter, U.S. Department of
Education, Office of the General Counsel, 400 Maryland Avenue SW, Room
6E235, Washington, DC 20202-2241. Telephone: (202) 453-6387. Email:
[email protected].
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service, toll free, at 1-800-
877-8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape, or compact
disc) on request to the contact person listed in this section.
SUPPLEMENTARY INFORMATION:
Background: A CMP is defined in the Inflation Adjustment Act (28
U.S.C. 2461 note) as any penalty, fine, or other sanction that is (1)
for a specific monetary amount as provided by Federal law, or has a
maximum amount provided for by Federal law; (2) assessed or enforced by
an agency pursuant to Federal law; and (3) assessed or enforced
pursuant to an administrative proceeding or a civil action in the
Federal courts.
The Inflation Adjustment Act provides for the regular evaluation of
CMPs to ensure that they continue to maintain their deterrent value.
The Inflation Adjustment Act required that each agency issue
regulations to adjust its CMPs beginning in 1996 and at least every
four years thereafter. The Department published its most recent cost
adjustment to its CMPs in the Federal Register on February 1, 2019 (84
FR 971), and those adjustments became effective on the date of
publication.
The 2015 Act (section 701 of Pub. L. 114-74) amended the Inflation
Adjustment Act to improve the effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1) Adjust the level of CMPs
with an initial ``catch-up'' adjustment through an
[[Page 2034]]
interim final rule (IFR); and (2) make subsequent annual adjustments
for inflation. Catch-up adjustments are based on the percentage change
between the Consumer Price Index for all Urban Consumers (CPI-U) for
the month of October in the year the penalty was last adjusted by a
statute other than the Inflation Adjustment Act, and the October 2015
CPI-U. Annual inflation adjustments are based on the percentage change
between the October CPI-U preceding the date of each statutory
adjustment, and the prior year's October CPI-U.\1\ The Department
published an IFR with the initial ``catch-up'' penalty adjustment
amounts on August 1, 2016 (81 FR 50321).
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\1\ If a statute that created a penalty is amended to change the
penalty amount, the Department does not adjust the penalty in the
year following the adjustment.
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In these final regulations, based on the CPI-U for the month of
October 2019, not seasonally adjusted, we are annually adjusting each
CMP amount by a multiplier for 2020 of 1.01764, as directed by the
Office of Management and Budget (OMB) Memorandum No. M-20-05 issued on
December 16, 2019.
The Department's Civil Monetary Penalties: The following analysis
calculates new CMPs for penalty statutes in the order in which they
appear in 34 CFR 36.2. The penalty amounts are being adjusted up based
on the multiplier of 1.01764 provided in OMB Memorandum No. M-20-05.
Statute: 20 U.S.C. 1015(c)(5).
Current Regulations: The CMP for 20 U.S.C. 1015(c)(5) (Section
131(c)(5) of the Higher Education Act of 1965, as amended (HEA)), as
last set out in statute in 1998 (Pub. L. 105-244, title I, sec. 101(a),
October 7, 1998, 112 Stat. 1602), is a fine of up to $25,000 for
failure by an institution of higher education (IHE) to provide
information on the cost of higher education to the Commissioner of
Education Statistics. In the 2019 final rule, we increased this amount
to $38,549.
New Regulations: The new penalty for this section is $39,229.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $38,549 x 1.01764 =
$39,229.00, which makes the adjusted penalty $39,229, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20 U.S.C. 1022d(a)(3) (Section
205(a)(3) of the HEA), as last set out in statute in 2008 (Pub. L. 110-
315, title II, sec. 201(2), August 14, 2008, 122 Stat. 3147), is a fine
of up to $27,500 for failure by an IHE to provide information to the
State and the public regarding its teacher-preparation programs. In the
2019 final rule, we increased this amount to $32,110.
New Regulations: The new penalty for this section is $32,676.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $32,110 x 1.01764 =
$32,676.42, which makes the adjusted penalty $32,676, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20 U.S.C. 1082(g) (Section 432(g)
of the HEA), as last set out in statute in 1986 (Pub. L. 99-498, title
IV, sec. 402(a), October 17, 1986, 100 Stat. 1401), is a fine of up to
$25,000 for violations by lenders and guaranty agencies of Title IV of
the HEA, which authorizes the Federal Family Education Loan Program. In
the 2019 final rule, we increased this amount to $57,317.
New Regulations: The new penalty for this section is $58,328.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $57,317 x 1.01764 =
$58,328.07, which makes the adjusted penalty $58,328, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20 U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in statute in 1986 (Pub. L. 99-
498, title IV, sec. 407(a), October 17, 1986, 100 Stat. 1488), is a
fine of up to $25,000 for an IHE's violation of Title IV of the HEA or
its implementing regulations. Title IV authorizes various programs of
student financial assistance. In the 2019 final rule, we increased this
amount to $57,317.
New Regulations: The new penalty for this section is $58,328.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $57,317 x 1.01764 =
$58,328.07, which makes the adjusted penalty $58,328, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20 U.S.C. 1228c(c)(2)(E) (Section
429 of the General Education Provisions Act), as set out in statute in
1994 (Pub. L. 103-382, title II, sec. 238, October 20, 1994, 108 Stat.
3918), is a fine of up to $1,000 for an educational organization's
failure to disclose certain information to minor students and their
parents. In the 2019 final rule, we increased this amount to $1,692.
New Regulations: The new penalty for this section is $1,722.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $1,692 x 1.01764 =
$1,721.85, which makes the adjusted penalty $1,722, when rounded to the
nearest dollar.
Statute: 31 U.S.C. 1352(c)(1) and (c)(2)(A).
Current Regulations: The CMPs for 31 U.S.C. 1352(c)(1) and
(c)(2)(A), as set out in statute in 1989 (Pub. L. 101-121, title III,
sec. 319(a)(1), October 23, 1989, 103 Stat. 750), are a fine of $10,000
to $100,000 for recipients of Government grants, contracts, etc. that
improperly lobby Congress or the Executive Branch with respect to the
award of Government grants and contracts. In the 2019 final rule, we
increased these amounts to $20,134 to $201,340.
New Regulations: The new penalties for these sections are $20,489
to $204,892.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new minimum penalty is calculated as follows: $20,134 x
1.01764 = $20,489.16, which makes the adjusted penalty $20,489, when
rounded to the nearest dollar. The new maximum penalty is calculated as
follows: $201,340 x 1.01764 = $204,891.64, which makes the adjusted
penalty $204,892, when rounded to the nearest dollar.
Statute: 31 U.S.C. 3802(a)(1) and (a)(2).
Current Regulations: The CMPs for 31 U.S.C. 3802(a)(1) and (a)(2),
as set out in statute in 1986 (Pub. L. 99-509, title VI, sec. 6103(a),
Oct. 21, 1986, 100 Stat. 1937), are a fine of up to $5,000 for false
claims and statements made to the Government. In the 2019 final rule,
we increased this amount to $11,463.
New Regulations: The new penalty for this section is $11,665.
Reason: Using the multiplier of 1.01764 from OMB Memorandum No. M-
20-05, the new penalty is calculated as follows: $11,463 x 1.01764 =
$11,665.21, which makes the adjusted penalty $11,665, when rounded to
the nearest dollar.
Executive Orders 12866, 13563, and 13771
Regulatory Impact Analysis
Under Executive Order 12866, it must be determined whether this
regulatory action is ``significant'' and, therefore, subject to the
requirements of the Executive order and subject to review by OMB.
Section 3(f) of Executive Order 12866 defines a significant regulatory
[[Page 2035]]
action as an action likely to result in a rule that may--
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect a sector of the economy; productivity; competition;
jobs; the environment; public health or safety; or State, local, or
Tribal governments or communities in a material way (also referred to
as ``economically significant'' regulations);
(2) Create serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impacts of entitlement grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles stated in the
Executive order.
We have determined that these final regulations: (1) Exclusively
implement the annual adjustment; (2) are consistent with OMB Memorandum
No. M-20-05; and (3) have an annual impact of less than $100 million.
Therefore, based on OMB Memorandum No. M-20-05, this is not a
significant regulatory action subject to review by OMB under section
3(f) of Executive Order 12866.
We have also reviewed these regulations under Executive Order
13563, which supplements and explicitly reaffirms the principles,
structures, and definitions governing regulatory review established in
Executive Order 12866. To the extent permitted by law, Executive Order
13563 requires that an agency--
(1) Propose or adopt regulations only upon a reasoned determination
that their benefits justify their costs (recognizing that some benefits
and costs are difficult to quantify);
(2) Tailor its regulations to impose the least burden on society,
consistent with obtaining regulatory objectives and taking into
account, among other things, and to the extent practicable, the costs
of cumulative regulations;
(3) In choosing among alternative regulatory approaches, select
those approaches that maximize net benefits (including potential
economic, environmental, public health and safety, and other
advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives, rather
than the behavior or manner of compliance a regulated entity must
adopt; and
(5) Identify and assess available alternatives to direct
regulation, including economic incentives--such as user fees or
marketable permits--to encourage the desired behavior, or providing
information that enables the public to make choices.
Executive Order 13563 also requires an agency ``to use the best
available techniques to quantify anticipated present and future
benefits and costs as accurately as possible.'' The Office of
Information and Regulatory Affairs of OMB has emphasized that these
techniques may include ``identifying changing future compliance costs
that might result from technological innovation or anticipated
behavioral changes.''
We are issuing these final regulations as required by statute and
in accordance with OMB Memorandum No. M-20-05. The Secretary has no
discretion to consider alternative approaches as delineated in the
Executive order. Based on this analysis and the reasons stated in the
preamble, the Department believes that these final regulations are
consistent with the principles in Executive Order 13563.
Under Executive Order 13771, for each new regulation that the
Department proposes for notice and comment or otherwise promulgates
that is a significant regulatory action under Executive Order 12866 and
that imposes total costs greater than zero, it must identify two
deregulatory actions. For fiscal year 2020, any new incremental costs
associated with a new regulation must be fully offset by the
elimination of existing costs through deregulatory actions. These final
regulations are not a significant regulatory action. Therefore, the
requirements of Executive Order 13771 do not apply.
Waiver of Rulemaking and Delayed Effective Date
Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the
Department generally offers interested parties the opportunity to
comment on proposed regulations. However, section 4(b)(2) of the 2015
Act (28 U.S.C. 2461 note) provides that the Secretary can adjust these
2020 penalty amounts notwithstanding the requirements of 5 U.S.C. 553.
Therefore, the requirements of 5 U.S.C. 553 for notice and comment and
delaying the effective date of a final rule do not apply here.
Regulatory Flexibility Act Certification
Pursuant to 5 U.S.C. 601(2), the Regulatory Flexibility Act applies
only to rules for which an agency publishes a general notice of
proposed rulemaking. The Regulatory Flexibility Act does not apply to
this rulemaking because section 4(b)(2) of the 2015 Act (28 U.S.C. 2461
note) provides that the Secretary can adjust these 2020 penalty amounts
without publishing a general notice of proposed rulemaking.
Paperwork Reduction Act of 1995
These regulations do not contain any information collection
requirements.
Intergovernmental Review
This program is not subject to Executive Order 12372 and the
regulations in 34 CFR part 79.
Assessment of Educational Impact
Based on our own review, we have determined that these regulations
do not require transmission of information that any other agency or
authority of the United States gathers or makes available.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at www.govinfo.gov. At this site you can view this
document, as well as all other documents of this Department published
in the Federal Register, in text or Portable Document Format (PDF). To
use PDF you must have Adobe Acrobat Reader, which is available free at
the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
List of Subjects
34 CFR Part 36
Claims, Fraud, Penalties.
34 CFR Part 668
Administrative practice and procedure, Colleges and universities,
Consumer protection, Grant programs--education, Loan programs--
education, Reporting and recordkeeping requirements, Selective Service
System, Student aid, Vocational education.
Dated: January 9, 2020.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary amends
parts 36 and 668 of title 34 of the Code of Federal Regulations as
follows:
PART 36--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION
0
1. The authority citation for part 36 continues to read as follows:
[[Page 2036]]
Authority: 20 U.S.C. 1221e-3 and 3474; 28 U.S.C. 2461 note, as
amended by Sec. 701 of Pub. L. 114-74, unless otherwise noted.
0
2. Section 36.2 is amended by:
0
a. In the introductory text, removing ``Table I'' and adding ``Table 1
of this section'' in its place.
0
b. Redesignating Table I as Table 1 and revising newly redesignated
Table 1.
0
c. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 36.2 Penalty adjustment.
* * * * *
Table 1 to Sec. 36.2--Civil Monetary Penalty Inflation Adjustments
----------------------------------------------------------------------------------------------------------------
New maximum
(and minimum,
Statute Description if applicable)
penalty
amount
----------------------------------------------------------------------------------------------------------------
20 U.S.C. 1015(c)(5) (Section 131(c)(5) of Provides for a fine, as set by Congress in 1998, $39,229
the Higher Education Act of 1965 (HEA)). of up to $25,000 for failure by an institution
of higher education (IHE) to provide information
on the cost of higher education to the
Commissioner of Education Statistics.
20 U.S.C. 1022d(a)(3) (Section 205(a)(3) of Provides for a fine, as set by Congress in 2008, 32,676
the HEA). of up to 27,500 for failure by an IHE to provide
information to the State and the public
regarding its teacher-preparation programs.
20 U.S.C. 1082(g) (Section 432(g) of the HEA) Provides for a civil penalty, as set by Congress 58,328
in 1986, of up to 25,000 for violations by
lenders and guaranty agencies of Title IV of the
HEA, which authorizes the Federal Family
Education Loan Program.
20 U.S.C. 1094(c)(3)(B) (Section 487(c)(3)(B) Provides for a civil penalty, as set by Congress 58,328
of the HEA). in 1986, of up to 25,000 for an IHE's violation
of Title IV of the HEA, which authorizes various
programs of student financial assistance.
20 U.S.C. 1228c(c)(2)(E) (Section 429 of the Provides for a civil penalty, as set by Congress 1,722
General Education Provisions Act). in 1994, of up to 1,000 for an educational
organization's failure to disclose certain
information to minor students and their parents.
31 U.S.C. 1352(c)(1) and (c)(2)(A)........... Provides for a civil penalty, as set by Congress 20,489 to
in 1989, of 10,000 to 100,000 for recipients of 204,892
Government grants, contracts, etc. that
improperly lobby Congress or the Executive
Branch with respect to the award of Government
grants and contracts.
31 U.S.C. 3802(a)(1) and (a)(2).............. Provides for a civil penalty, as set by Congress 11,665
in 1986, of up to 5,000 for false claims and
statements made to the Government.
----------------------------------------------------------------------------------------------------------------
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS
0
3. The authority citation for part 668 continues to read as follows:
Authority: 20 U.S.C. 1001-1003, 1070a, 1070g, 1085, 1087b,
1087d, 1087e, 1088, 1091, 1092, 1094, 1099c, 1099c-1, 1221e-3, and
3474; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.
Sec. 668.84 [Amended]
0
4. Section 668.84(a)(1) introductory text is amended by removing the
number ``$57,317'' and adding in its place the number ``$58,328''.
[FR Doc. 2020-00413 Filed 1-13-20; 8:45 am]
BILLING CODE 4000-01-P
