2020 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations, 2279-2281 [2020-00479]
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2279
Rules and Regulations
Federal Register
Vol. 85, No. 10
Wednesday, January 15, 2020
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RIN 3209–AA49
2020 Civil Monetary Penalties Inflation
Adjustments for Ethics in Government
Act Violations
Office of Government Ethics.
Final rule.
AGENCY:
ACTION:
In accordance with the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, the U.S. Office of Government
Ethics is issuing this final rule to make
the 2020 annual adjustments to the
Ethics in Government Act civil
monetary penalties.
DATES: This final rule is effective
January 15, 2020.
FOR FURTHER INFORMATION CONTACT:
Kimberly L. Sikora Panza, Associate
Counsel, General Counsel and Legal
Policy Division, Office of Government
Ethics, Telephone: 202–482–9300; TTY:
800–877–8339; FAX: 202–482–9237.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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I. Background
In November 2015, Congress passed
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Sec. 701 of Pub. L. 114–74) (the
2015 Act), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410). The 2015 Act required Federal
agencies to make inflationary
adjustments to the civil monetary
penalties (CMPs) within their
jurisdiction with an initial ‘‘catch-up’’
adjustment through an interim final rule
effective no later than August 1, 2016,
and further mandates that Federal
agencies make subsequent annual
inflationary adjustments of their CMPs,
to be effective no later than January 15
of each year.
The Ethics in Government Act of 1978
as amended, 5 U.S.C. appendix (the
VerDate Sep<11>2014
16:02 Jan 14, 2020
Jkt 250001
Ethics Act) provides for five CMPs.1
Specifically, the Ethics Act provides for
penalties that can be assessed by an
appropriate United States district court,
based upon a civil action brought by the
Department of Justice, for the following
five types of violations:
(1) Knowing and willful failure to file,
report required information on, or
falsification of a public financial
disclosure report, 5 U.S.C. appendix
104(a), 5 CFR 2634.701(b);
(2) knowing and willful breach of a
qualified trust by trustees and interested
parties, 5 U.S.C. appendix
102(f)(6)(C)(i), 5 CFR 2634.702(a);
(3) negligent breach of a qualified
trust by trustees and interested parties,
5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR
2634.702(b);
(4) misuse of a public report, 5 U.S.C.
appendix 105(c)(2), 5 CFR 2634.703;
and
(5) violation of outside employment/
activities provisions, 5 U.S.C. appendix
504(a), 5 CFR 2636.104(a).
In compliance with the 2015 Act and
guidance issued by the Office of
Management and Budget (OMB), the
U.S. Office of Government Ethics (OGE)
made previous inflationary adjustments
to the five Ethics Act CMPs, and is
issuing this rulemaking to effectuate the
2020 annual inflationary adjustments to
those CMPs. In accordance with the
2015 Act, these adjustments are based
on the percent change between the
Consumer Price Index for all Urban
Consumers (CPI–U) for the month of
October preceding the date of the
adjustment, and the prior year’s October
CPI–U. Pursuant to OMB guidance, the
cost-of-living adjustment multiplier for
2020, based on the CPI–U for October
2019, not seasonally adjusted, is
1.01764. To calculate the 2020 annual
adjustment, agencies must multiply the
most recent penalty by the 1.01764
multiplier, and round to the nearest
dollar.
Applying the formula established by
the 2015 Act and OMB guidance, OGE
1 OGE has previously determined, after
consultation with the Department of Justice, that
the $200 late filing fee for public financial
disclosure reports that are more than 30 days
overdue (see section 104(d) of the Ethics Act, 5
U.S.C. appendix, 104(d), and 5 CFR 2634.704 of
OGE’s regulations thereunder) is not a CMP as
defined under the Federal Civil Penalties Inflation
Adjustment Act, as amended. Therefore, that fee is
not being adjusted in this rulemaking (nor was it
adjusted by OGE in previous CMP rulemakings),
and will remain at its current amount of $200.
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is amending the Ethics Act CMPs
through this rulemaking to:
(1) Increase the three penalties
reflected in 5 CFR 2634.702(a), 5 CFR
2634.703, and 5 CFR 2636.104(a)—
which were previously adjusted to a
maximum of $20,134—to a maximum of
$20,489;
(2) Increase the penalty reflected in 5
CFR 2634.702(b)—which was
previously adjusted to a maximum of
$10,067—to a maximum of $10,245; and
(3) Increase the penalty reflected in 5
CFR 2634.701(b)—which was
previously adjusted to a maximum of
$60,517—to a maximum of $61,585.
These adjusted penalty amounts will
apply to penalties assessed after January
15, 2020 (the effective date of this final
rule) whose associated violations
occurred after November 2, 2015.
OGE will continue to make future
annual inflationary adjustments to the
Ethics Act CMPs in accordance with the
statutory formula set forth in the 2015
Act and OMB guidance.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as
Director of the Office of Government
Ethics, I find that good cause exists for
waiving the general notice of proposed
rulemaking and public comment
procedures as to these technical
amendments. The notice and comment
procedures are being waived because
these amendments, which concern
matters of agency organization,
procedure and practice, are being
adopted in accordance with statutorily
mandated inflation adjustment
procedures of the 2015 Act, which
specifies that agencies shall adjust civil
monetary penalties notwithstanding
Section 553 of the Administrative
Procedure Act. It is also in the public
interest that the adjusted rates for civil
monetary penalties under the Ethics in
Government Act become effective as
soon as possible in order to maintain
their deterrent effect.
Regulatory Flexibility Act
As the Director of the Office of
Government Ethics, I certify under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) that this final rule would not
have a significant economic impact on
a substantial number of small entities
because it primarily affects current
Federal executive branch employees.
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Rules and Regulations
Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. chapter 35) does not apply
because this regulation does not contain
information collection requirements that
require approval of the Office of
Management and Budget.
Ethics is amending 5 CFR parts 2634
and 2636 as follows:
PART 2634—EXECUTIVE BRANCH
FINANCIAL DISCLOSURE, QUALIFIED
TRUSTS, AND CERTIFICATES OF
DIVESTITURE
For purposes of the Unfunded
Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule
would not significantly or uniquely
affect small governments and will not
result in increased expenditures by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more (as adjusted for
inflation) in any one year.
Executive Order 13563 and Executive
Order 12866
Authority: 5 U.S.C. app.; 26 U.S.C. 1043;
Pub. L. 101–410, 104 Stat. 890, 28 U.S.C.
2461 note, as amended by Sec. 31001, Pub.
L. 104–134, 110 Stat. 1321 and Sec. 701, Pub.
L. 114–74; Pub. L. 112–105, 126 Stat. 291;
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp.,
p. 215, as modified by E.O. 12731, 55 FR
42547, 3 CFR, 1990 Comp., p. 306.
2. Section 2634.701 is amended by
revising paragraph (b) to read as follows:
■
§ 2634.701
reports.
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select the regulatory
approaches that maximize net benefits
(including economic, environmental,
public health and safety effects,
distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. The Office of Management
and Budget has determined that
rulemakings such as this implementing
annual inflationary adjustments under
the 2015 Act are not significant
regulatory actions under Executive
Order 12866.
As Director of the Office of
Government Ethics, I have reviewed this
rule in light of section 3 of Executive
Order 12988, Civil Justice Reform, and
certify that it meets the applicable
standards provided therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of
interests, Financial disclosure,
Government employees, Penalties,
Privacy, Reporting and recordkeeping
requirements, Trusts and trustees.
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5 CFR Part 2636
Conflict of interests, Government
employees, Penalties.
Dated: January 9, 2020.
Emory Rounds,
Director, U.S. Office of Government Ethics.
For the reasons set forth in the
preamble, the U.S. Office of Government
Jkt 250001
Failure to file or falsifying
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*
(b) Civil action. The Attorney General
may bring a civil action in any
appropriate United States district court
against any individual who knowingly
and willfully falsifies or who knowingly
and willfully fails to file or report any
information required by filers of public
reports under subpart B of this part. The
court in which the action is brought
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth in Table 1
to this section, as provided by section
104(a) of the Act, as amended, and as
adjusted in accordance with the
inflation adjustment procedures
prescribed in the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended.
Executive Order 12988
16:02 Jan 14, 2020
TABLE 1 TO § 2634.702
1. The authority citation for part 2634
continues to read as follows:
■
Unfunded Mandates Reform Act
VerDate Sep<11>2014
section, as provided by section
102(f)(6)(C)(i) of the Act and as adjusted
in accordance with the inflation
adjustment procedures prescribed in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
TABLE 1 TO § 2634.701
Date of violation
Penalty
Violation occurring between
Sept. 29, 1999 and Nov. 2,
2015 ..................................
Violation occurring after Nov.
2, 2015 ..............................
$11,000
20,489
(b) The Attorney General may bring a
civil action in any appropriate United
States district court against any
individual who negligently violates the
provisions of § 2634.408(d)(1) or (e)(1).
The court in which the action is brought
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth in Table 2
to this section, as provided by section
102(f)(6)(C)(ii) of the Act and as
adjusted in accordance with the
inflation adjustment procedures of the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
TABLE 2 TO § 2634.702
Date of violation
Penalty
Violation occurring between
Sept. 29, 1999 and Nov. 2,
2015 ..................................
Violation occurring after Nov.
2, 2015 ..............................
$5,500
10,245
4. Section 2634.703 is revised to read
as follows:
■
§ 2634.703
Misuse of public reports.
(a) The Attorney General may bring a
Date of violation
Penalty
civil action against any person who
obtains or uses a report filed under this
Violation occurring between
Sept. 14, 2007 and Nov. 2,
part for any purpose prohibited by
2015 ..................................
$50,000 section 105(c)(1) of the Act, as
Violation occurring after Nov.
incorporated in § 2634.603(f). The court
2, 2015 ..............................
61,585 in which the action is brought may
assess against the person a civil
*
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*
monetary penalty in any amount, not to
■ 3. Section 2634.702 is revised to read
exceed the amounts set forth in Table 1
as follows:
to this section, as provided by section
105(c)(2) of the Act and as adjusted in
§ 2634.702 Breaches by trust fiduciaries
accordance with the inflation
and interested parties.
adjustment procedures prescribed in the
(a) The Attorney General may bring a
Federal Civil Penalties Inflation
civil action in any appropriate United
Adjustment Act of 1990, as amended.
States district court against any
individual who knowingly and willfully
TABLE 1 TO § 2634.703
violates the provisions of
§ 2634.408(d)(1) or (e)(1). The court in
Date of violation
Penalty
which the action is brought may assess
against the individual a civil monetary
Violation occurring between
penalty in any amount, not to exceed
Sept. 29, 1999 and Nov. 2,
2015 ..................................
$11,000
the amounts set forth in Table 1 to this
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Rules and Regulations
TABLE 1 TO § 2634.703—Continued
Date of violation
NUCLEAR REGULATORY
COMMISSION
Penalty
10 CFR Parts 2 and 13
Violation occurring after Nov.
2, 2015 ..............................
20,489
[NRC–2018–0048]
RIN 3150–AK11
(b) This remedy shall be in addition
to any other remedy available under
statutory or common law.
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PART 2636—LIMITATIONS ON
OUTSIDE EARNED INCOME,
EMPLOYMENT AND AFFILIATIONS
FOR CERTAIN NONCAREER
EMPLOYEES
Adjustment of Civil Penalties for
Inflation for Fiscal Year 2020
Nuclear Regulatory
Commission.
ACTION: Final rule.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is amending its
regulations to adjust the maximum civil
■ 5. The authority citation for part 2636
monetary penalties it can assess under
continues to read as follows:
statutes enforced by the agency. These
changes are mandated by the Federal
Authority: 5 U.S.C. App. (Ethics in
Civil Penalties Inflation Adjustment Act
Government Act of 1978); Pub. L. 101–410,
of 1990, as amended by the Federal
104 Stat. 890, 28 U.S.C. 2461 note (Federal
Civil Penalties Inflation Adjustment Act
Civil Penalties Inflation Adjustment Act of
Improvements Act of 2015. The NRC is
1990), as amended by Sec. 31001, Pub. L.
amending its regulations to adjust the
104–134, 110 Stat. 1321 (Debt Collection
Improvement Act of 1996) and Sec. 701, Pub. maximum civil monetary penalty for a
violation of the Atomic Energy Act of
L. 114–74 (Federal Civil Penalties Inflation
1954, as amended, or any regulation or
Adjustment Act Improvements Act of 2015);
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., order issued under the Atomic Energy
p. 215, as modified by E.O. 12731, 55 FR
Act from $298,211 to $303,471 per
42547, 3 CFR, 1990 Comp., p. 306.
violation, per day. Additionally, the
NRC is amending provisions concerning
■ 6. Section 2636.104 is amended by
program fraud civil penalties by
revising paragraph (a) to read as follows: adjusting the maximum civil monetary
penalty under the Program Fraud Civil
§ 2636.104 Civil, disciplinary and other
Remedies Act from $11,463 to $11,665
action.
for each false claim or statement.
(a) Civil action. Except when the
DATES: This final rule is effective on
employee engages in conduct in good
January 15, 2020.
faith reliance upon an advisory opinion
ADDRESSES: Please refer to Docket ID
issued under § 2636.103, an employee
who engages in any conduct in violation NRC–2018–0048 when contacting the
NRC about the availability of
of the prohibitions, limitations and
information for this action. You may
restrictions contained in this part may
obtain publicly-available information
be subject to civil action under 5 U.S.C.
app. 504(a) and a civil monetary penalty related to this action by any of the
following methods:
of not more than the amounts set in
• Federal Rulemaking Website: Go to
Table 1 to this section, as adjusted in
https://www.regulations.gov and search
accordance with the inflation
adjustment procedures prescribed in the for Docket ID NRC–2018–0048. Address
questions about NRC dockets to Carol
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, or Gallagher; telephone: 301–415–3463;
email: Carol.Gallagher@nrc.gov. For
the amount of the compensation the
technical questions, contact the
individual received for the prohibited
individual listed in the FOR FURTHER
conduct, whichever is greater.
INFORMATION CONTACT section of this
document.
TABLE 1 TO § 2636.104
• NRC’s Agencywide Documents
Access and Management System
Date of violation
Penalty
(ADAMS): You may obtain publiclyavailable documents online in the
Violation occurring between
ADAMS Public Documents collection at
Sept. 29, 1999 and Nov. 2,
2015 ..................................
$11,000 https://www.nrc.gov/reading-rm/
Violation occurring after Nov.
adams.html. To begin the search, select
2, 2015 ..............................
20,489 ‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
*
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*
the NRC’s Public Document Room (PDR)
[FR Doc. 2020–00479 Filed 1–14–20; 8:45 am]
reference staff at 1–800–397–4209, 301–
BILLING CODE 6345–03–P
415–4737, or by email to pdr.resource@
VerDate Sep<11>2014
16:02 Jan 14, 2020
Jkt 250001
SUMMARY:
PO 00000
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2281
nrc.gov. The ADAMS accession number
for each document referenced (if it is
available in ADAMS) is provided the
first time that it is mentioned in the
SUPPLEMENTARY INFORMATION section.
• NRC’s PDR: You may examine and
purchase copies of public documents at
the NRC’s PDR, Room O1–F21, One
White Flint North, 11555 Rockville
Pike, Rockville, Maryland 20852.
FOR FURTHER INFORMATION CONTACT: Eric
Michel, Office of the General Counsel,
U.S. Nuclear Regulatory Commission,
Washington, DC 20555–0001, telephone:
301–415–0932; email: Eric.Michel2@
nrc.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents:
I. Background
II. Discussion
III. Rulemaking Procedure
IV. Section-by-Section Analysis
V. Regulatory Analysis
VI. Regulatory Flexibility Act
VII. Backfitting and Issue Finality
VIII. Plain Writing
IX. National Environmental Policy Act
X. Paperwork Reduction Act
XI. Congressional Review Act
I. Background
Congress passed the Federal Civil
Penalties Inflation Adjustment Act of
1990 (FCPIAA) in 1990 to allow for
regular adjustment for inflation of civil
monetary penalties (CMPs), maintain
the deterrent effect of such penalties
and promote compliance with the law,
and improve the collection of CMPs by
the Federal Government (Pub. L. 101–
410, 104 Stat. 890; 28 U.S.C. 2461 note).
Pursuant to this authority, and as
amended by the Debt Collection
Improvement Act of 1996 (Pub. L. 104–
34, 110 Stat. 1321–373), the NRC
increased via rulemaking the CMP
amounts for violations of the Atomic
Energy Act of 1954, as amended (AEA)
(codified at § 2.205 of title 10 of the
Code of Federal Regulations (10 CFR))
and Program Fraud Civil Remedies Act
(codified at § 13.3) on four occasions
between 1996 and 2008.1
On November 2, 2015, Congress
amended the FCPIAA through the
Federal Civil Penalties Inflation
1 Adjustment of Civil Penalties for Inflation, (73
FR 54671; Sept. 23, 2008); Adjustment of Civil
Penalties for Inflation, (69 FR 62393; Oct. 26, 2004);
Adjustment of Civil Penalties for Inflation;
Miscellaneous Administrative Changes, (65 FR
59270; Oct. 4, 2000); Adjustment of Civil Monetary
Penalties for Inflation, (61 FR 53554; Oct. 11, 1996).
An adjustment was not performed in 2012 because
the FCPIAA at the time required agencies to round
their CMP amounts to the nearest multiple of
$1,000 or $10,000, depending on the size of the
CMP amount, and the 2012 adjustments based on
the statutory formula were small enough that no
adjustment resulted.
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]]>Agencies
[Federal Register Volume 85, Number 10 (Wednesday, January 15, 2020)]
[Rules and Regulations]
[Pages 2279-2281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00479]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 /
Rules and Regulations
[[Page 2279]]
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RIN 3209-AA49
2020 Civil Monetary Penalties Inflation Adjustments for Ethics in
Government Act Violations
AGENCY: Office of Government Ethics.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, the U.S. Office of Government
Ethics is issuing this final rule to make the 2020 annual adjustments
to the Ethics in Government Act civil monetary penalties.
DATES: This final rule is effective January 15, 2020.
FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate
Counsel, General Counsel and Legal Policy Division, Office of
Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX:
202-482-9237.
SUPPLEMENTARY INFORMATION:
I. Background
In November 2015, Congress passed the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L.
114-74) (the 2015 Act), which further amended the Federal Civil
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015
Act required Federal agencies to make inflationary adjustments to the
civil monetary penalties (CMPs) within their jurisdiction with an
initial ``catch-up'' adjustment through an interim final rule effective
no later than August 1, 2016, and further mandates that Federal
agencies make subsequent annual inflationary adjustments of their CMPs,
to be effective no later than January 15 of each year.
The Ethics in Government Act of 1978 as amended, 5 U.S.C. appendix
(the Ethics Act) provides for five CMPs.\1\ Specifically, the Ethics
Act provides for penalties that can be assessed by an appropriate
United States district court, based upon a civil action brought by the
Department of Justice, for the following five types of violations:
---------------------------------------------------------------------------
\1\ OGE has previously determined, after consultation with the
Department of Justice, that the $200 late filing fee for public
financial disclosure reports that are more than 30 days overdue (see
section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5
CFR 2634.704 of OGE's regulations thereunder) is not a CMP as
defined under the Federal Civil Penalties Inflation Adjustment Act,
as amended. Therefore, that fee is not being adjusted in this
rulemaking (nor was it adjusted by OGE in previous CMP rulemakings),
and will remain at its current amount of $200.
---------------------------------------------------------------------------
(1) Knowing and willful failure to file, report required
information on, or falsification of a public financial disclosure
report, 5 U.S.C. appendix 104(a), 5 CFR 2634.701(b);
(2) knowing and willful breach of a qualified trust by trustees and
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(i), 5 CFR
2634.702(a);
(3) negligent breach of a qualified trust by trustees and
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR
2634.702(b);
(4) misuse of a public report, 5 U.S.C. appendix 105(c)(2), 5 CFR
2634.703; and
(5) violation of outside employment/activities provisions, 5 U.S.C.
appendix 504(a), 5 CFR 2636.104(a).
In compliance with the 2015 Act and guidance issued by the Office
of Management and Budget (OMB), the U.S. Office of Government Ethics
(OGE) made previous inflationary adjustments to the five Ethics Act
CMPs, and is issuing this rulemaking to effectuate the 2020 annual
inflationary adjustments to those CMPs. In accordance with the 2015
Act, these adjustments are based on the percent change between the
Consumer Price Index for all Urban Consumers (CPI-U) for the month of
October preceding the date of the adjustment, and the prior year's
October CPI-U. Pursuant to OMB guidance, the cost-of-living adjustment
multiplier for 2020, based on the CPI-U for October 2019, not
seasonally adjusted, is 1.01764. To calculate the 2020 annual
adjustment, agencies must multiply the most recent penalty by the
1.01764 multiplier, and round to the nearest dollar.
Applying the formula established by the 2015 Act and OMB guidance,
OGE is amending the Ethics Act CMPs through this rulemaking to:
(1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5
CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to
a maximum of $20,134--to a maximum of $20,489;
(2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was
previously adjusted to a maximum of $10,067--to a maximum of $10,245;
and
(3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was
previously adjusted to a maximum of $60,517--to a maximum of $61,585.
These adjusted penalty amounts will apply to penalties assessed after
January 15, 2020 (the effective date of this final rule) whose
associated violations occurred after November 2, 2015.
OGE will continue to make future annual inflationary adjustments to
the Ethics Act CMPs in accordance with the statutory formula set forth
in the 2015 Act and OMB guidance.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as Director of the Office of
Government Ethics, I find that good cause exists for waiving the
general notice of proposed rulemaking and public comment procedures as
to these technical amendments. The notice and comment procedures are
being waived because these amendments, which concern matters of agency
organization, procedure and practice, are being adopted in accordance
with statutorily mandated inflation adjustment procedures of the 2015
Act, which specifies that agencies shall adjust civil monetary
penalties notwithstanding Section 553 of the Administrative Procedure
Act. It is also in the public interest that the adjusted rates for
civil monetary penalties under the Ethics in Government Act become
effective as soon as possible in order to maintain their deterrent
effect.
Regulatory Flexibility Act
As the Director of the Office of Government Ethics, I certify under
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final
rule would not have a significant economic impact on a substantial
number of small entities because it primarily affects current Federal
executive branch employees.
[[Page 2280]]
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
because this regulation does not contain information collection
requirements that require approval of the Office of Management and
Budget.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule would not significantly or
uniquely affect small governments and will not result in increased
expenditures by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more (as adjusted for
inflation) in any one year.
Executive Order 13563 and Executive Order 12866
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select the regulatory approaches that
maximize net benefits (including economic, environmental, public health
and safety effects, distributive impacts, and equity). Executive Order
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget has determined that rulemakings
such as this implementing annual inflationary adjustments under the
2015 Act are not significant regulatory actions under Executive Order
12866.
Executive Order 12988
As Director of the Office of Government Ethics, I have reviewed
this rule in light of section 3 of Executive Order 12988, Civil Justice
Reform, and certify that it meets the applicable standards provided
therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of interests, Financial
disclosure, Government employees, Penalties, Privacy, Reporting and
recordkeeping requirements, Trusts and trustees.
5 CFR Part 2636
Conflict of interests, Government employees, Penalties.
Dated: January 9, 2020.
Emory Rounds,
Director, U.S. Office of Government Ethics.
For the reasons set forth in the preamble, the U.S. Office of
Government Ethics is amending 5 CFR parts 2634 and 2636 as follows:
PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS,
AND CERTIFICATES OF DIVESTITURE
0
1. The authority citation for part 2634 continues to read as follows:
Authority: 5 U.S.C. app.; 26 U.S.C. 1043; Pub. L. 101-410, 104
Stat. 890, 28 U.S.C. 2461 note, as amended by Sec. 31001, Pub. L.
104-134, 110 Stat. 1321 and Sec. 701, Pub. L. 114-74; Pub. L. 112-
105, 126 Stat. 291; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p.
215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p.
306.
0
2. Section 2634.701 is amended by revising paragraph (b) to read as
follows:
Sec. 2634.701 Failure to file or falsifying reports.
* * * * *
(b) Civil action. The Attorney General may bring a civil action in
any appropriate United States district court against any individual who
knowingly and willfully falsifies or who knowingly and willfully fails
to file or report any information required by filers of public reports
under subpart B of this part. The court in which the action is brought
may assess against the individual a civil monetary penalty in any
amount, not to exceed the amounts set forth in Table 1 to this section,
as provided by section 104(a) of the Act, as amended, and as adjusted
in accordance with the inflation adjustment procedures prescribed in
the Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended.
Table 1 to Sec. 2634.701
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, $50,000
2015...................................................
Violation occurring after Nov. 2, 2015.................. 61,585
------------------------------------------------------------------------
* * * * *
0
3. Section 2634.702 is revised to read as follows:
Sec. 2634.702 Breaches by trust fiduciaries and interested parties.
(a) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
knowingly and willfully violates the provisions of Sec. 2634.408(d)(1)
or (e)(1). The court in which the action is brought may assess against
the individual a civil monetary penalty in any amount, not to exceed
the amounts set forth in Table 1 to this section, as provided by
section 102(f)(6)(C)(i) of the Act and as adjusted in accordance with
the inflation adjustment procedures prescribed in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended.
Table 1 to Sec. 2634.702
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000
2015...................................................
Violation occurring after Nov. 2, 2015.................. 20,489
------------------------------------------------------------------------
(b) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
negligently violates the provisions of Sec. 2634.408(d)(1) or (e)(1).
The court in which the action is brought may assess against the
individual a civil monetary penalty in any amount, not to exceed the
amounts set forth in Table 2 to this section, as provided by section
102(f)(6)(C)(ii) of the Act and as adjusted in accordance with the
inflation adjustment procedures of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended.
Table 2 to Sec. 2634.702
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, $5,500
2015...................................................
Violation occurring after Nov. 2, 2015.................. 10,245
------------------------------------------------------------------------
0
4. Section 2634.703 is revised to read as follows:
Sec. 2634.703 Misuse of public reports.
(a) The Attorney General may bring a civil action against any
person who obtains or uses a report filed under this part for any
purpose prohibited by section 105(c)(1) of the Act, as incorporated in
Sec. 2634.603(f). The court in which the action is brought may assess
against the person a civil monetary penalty in any amount, not to
exceed the amounts set forth in Table 1 to this section, as provided by
section 105(c)(2) of the Act and as adjusted in accordance with the
inflation adjustment procedures prescribed in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended.
Table 1 to Sec. 2634.703
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000
2015...................................................
[[Page 2281]]
Violation occurring after Nov. 2, 2015.................. 20,489
------------------------------------------------------------------------
(b) This remedy shall be in addition to any other remedy available
under statutory or common law.
PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES
0
5. The authority citation for part 2636 continues to read as follows:
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978);
Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil
Penalties Inflation Adjustment Act of 1990), as amended by Sec.
31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement
Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55
FR 42547, 3 CFR, 1990 Comp., p. 306.
0
6. Section 2636.104 is amended by revising paragraph (a) to read as
follows:
Sec. 2636.104 Civil, disciplinary and other action.
(a) Civil action. Except when the employee engages in conduct in
good faith reliance upon an advisory opinion issued under Sec.
2636.103, an employee who engages in any conduct in violation of the
prohibitions, limitations and restrictions contained in this part may
be subject to civil action under 5 U.S.C. app. 504(a) and a civil
monetary penalty of not more than the amounts set in Table 1 to this
section, as adjusted in accordance with the inflation adjustment
procedures prescribed in the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, or the amount of the compensation
the individual received for the prohibited conduct, whichever is
greater.
Table 1 to Sec. 2636.104
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000
2015...................................................
Violation occurring after Nov. 2, 2015.................. 20,489
------------------------------------------------------------------------
* * * * *
[FR Doc. 2020-00479 Filed 1-14-20; 8:45 am]
BILLING CODE 6345-03-P
