Civil Penalties Inflation Adjustments; Annual Adjustments, 9366-9369 [2020-02615]

Download as PDF 9366 § 232.301 Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations EDGAR Filer Manual. By the Commission. Dated: January 27, 2020. Vanessa A. Countryman, Secretary. [FR Doc. 2020–02083 Filed 2–18–20; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF THE INTERIOR Bureau of Indian Affairs 25 CFR Parts 140, 141, 211, 213, 225, 226, 227, 243, and 249 khammond on DSKJM1Z7X2PROD with RULES [210A2100DD/AAKC001030/ A0A501010.999900253G] RIN 1076–AF49 Civil Penalties Inflation Adjustments; Annual Adjustments Bureau of Indian Affairs, Interior. ACTION: Final rule. AGENCY: VerDate Sep<11>2014 16:42 Feb 18, 2020 Jkt 250001 This rule provides for annual adjustments to the level of civil monetary penalties contained in Bureau of Indian Affairs (Bureau) regulations to account for inflation under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance. DATES: This rule is effective on February 19, 2020. FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of Regulatory Affairs and Collaborative Action, Office of the Assistant Secretary—Indian Affairs; telephone (202) 273–4680, elizabeth.appel@ bia.gov. SUPPLEMENTARY INFORMATION: SUMMARY: Filers must prepare electronic filings in the manner prescribed by the EDGAR Filer Manual, promulgated by the Commission, which sets forth the technical formatting requirements for electronic submissions. The requirements for becoming an EDGAR Filer and updating company data are set forth in the updated EDGAR Filer Manual, Volume I: ‘‘General Information,’’ Version 35 (January 2020). The requirements for filing on EDGAR are set forth in the updated EDGAR Filer Manual, Volume II: ‘‘EDGAR Filing,’’ Version 53 (January 2020). All of these provisions have been incorporated by reference into the Code of Federal Regulations, which action was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. You must comply with these requirements in order for documents to be timely received and accepted. The EDGAR Filer Manual is available for website viewing and printing; the address for the Filer Manual is https://www.sec.gov/ info/edgar/edmanuals.htm. You can obtain paper copies of the EDGAR Filer Manual at the following address: Public Reference Room, U.S. Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. You can also inspect the document at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, email fedreg.legal@nara.gov, or go to: https://www.archives.gov/federalregister/cfr/ibr-locations.html. I. Background II. Calculation of Annual Adjustments III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866 and 13563) B. Reducing Regulation and Controlling Regulatory Costs (E.O. 13771) C. Regulatory Flexibility Act D. Small Business Regulatory Enforcement Fairness Act E. Unfunded Mandates Reform Act F. Takings (E.O. 12630) G. Federalism (E.O. 13132) H. Civil Justice Reform (E.O. 12988) I. Consultation With Indian Tribes (E.O. 13175) J. Paperwork Reduction Act K. National Environmental Policy Act L. Effects on the Energy Supply (E.O. 13211) M. Clarity of This Regulation N. Administrative Procedure Act I. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Public Law 114–74) (‘‘the Act’’). The Act requires Federal agencies to adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through rulemaking and then make subsequent annual adjustments for inflation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes. The Office of Management and Budget (OMB) issued guidance for Federal agencies on calculating the catch-up adjustment. See February 24, 2016, Memorandum for the Heads of Executive Departments and Agencies, from Shaun Donovan, Director, Office of Management and Budget, re: Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (M–16–06). Under the guidance, the Department PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 identified applicable civil monetary penalties and calculated the catch-up adjustment. A civil monetary penalty is any assessment with a dollar amount that is levied for a violation of a Federal civil statute or regulation, and is assessed or enforceable through a civil action in Federal court or an administrative proceeding. A civil monetary penalty does not include a penalty levied for violation of a criminal statute, or fees for services, licenses, permits, or other regulatory review. The calculated catch-up adjustment is based on the percent change between the Consumer Price Index for all Urban Consumers (CPI0–U) for the month of October in the year of the previous adjustment (or in the year of establishment, if no adjustment has been made) and the October 2015 CPI– U. The Bureau issued an interim final rule providing for calculated catch-up adjustments on June 30, 2016 (81 FR 42478) with an effective date of August 1, 2016, and requesting comments postpromulgation. The Bureau issued a final rule affirming the catch-up adjustments set forth in the interim final rule on December 2, 2016 (81 FR 86953). The Bureau then issued a final rule making the next scheduled annual inflation adjustment for 2017 on January 23, 2017 (82 FR 7649), for 2018 on February 6, 2018 (83 FR 5192), and for 2019 on April 15, 2019 (84 FR 15098). II. Calculation of 2020 Annual Adjustments OMB recently issued guidance to assist Federal agencies in implementing the annual adjustments required by the Act, which agencies must complete by January 15, 2020. See December 16, 2019, Memorandum for the Heads of Executive Departments and Agencies, from Russell T. Vought, Acting Director, Office of Management and Budget, re: Implementation of the Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (M–20–05). The guidance states that the cost-of-living adjustment multiplier for 2020, based on the Consumer Price Index (CPI–U) for the month of October 2019, not seasonally adjusted, is 1.01764. (The annual inflation adjustments are based on the percent change between the October CPI–U preceding the date of the adjustment, and the prior year’s October CPI–U. For 2020, OMB explains, October 2019 CPI–U (257.346)/October 2018 CPI–U (252.885) = 1.01764.) The guidance instructs agencies to complete the 2020 annual adjustment by multiplying each applicable penalty by E:\FR\FM\19FER1.SGM 19FER1 Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations the multiplier, 1.01764, and rounding to the nearest dollar. Further, agencies should apply the multiplier to the most recent penalty amount that includes the initial catch-up adjustment required by the Act. Description of penalty 25 CFR 140.3 ......... 25 CFR 141.50 ....... Penalty for trading in Indian country without a license .......................... Penalty for trading on Navajo, Hopi or Zuni reservations without a license. Penalty for violation of leases of Tribal land for mineral development, violation of part 211, or failure to comply with a notice of noncompliance or cessation order. Penalty for failure of lessee to comply with lease of restricted lands of members of the Five Civilized Tribes in Oklahoma for mining, operating regulations at part 213, or orders. Penalty for violation of minerals agreement, regulations at part 225, other applicable laws or regulations, or failure to comply with a notice of noncompliance or cessation order. Penalty for violation of lease of Osage reservation lands for oil and gas mining or regulations at part 226, or noncompliance with the Superintendent’s order. Penalty per day for failure to obtain permission to start operations ...... Penalty per day for failure to file records ............................................... Penalty for each well and tank battery for failure to mark wells and tank batteries. Penalty each day after operations are commenced for failure to construct and maintain pits. Penalty for failure to comply with requirements regarding valve or other approved controlling device. Penalty for failure to notify Superintendent before drilling, redrilling, deepening, plugging, or abandoning any well. Penalty per day for failure to properly care for and dispose of deleterious fluids. Penalty per day for failure to file plugging and other required reports .. Penalty for failure of lessee of certain lands in Wind River Indian Reservation, Wyoming, for oil and gas mining to comply with lease provisions, operating regulations, regulations at part 227, or orders. Penalty for non-Native transferees of live Alaskan reindeer who violates part 243, takes reindeer without a permit, or fails to abide by permit terms.. Penalty for fishing in violation of regulations at part 249 (Off-Reservation Treaty Fishing). 25 CFR 213.37 ....... 25 CFR 225.37 ....... 25 CFR 226.42 ....... 25 CFR 226.43(a) ... 25 CFR 226.43(b) ... 25 CFR 226.43(c) ... 25 CFR 226.43(d) ... 25 CFR 226.43(e) ... 25 CFR 226.43(f) .... 25 CFR 226.43(g) ... 25 CFR 226.43(h) ... 25 CFR 227.24 ....... 25 CFR 243.8 ......... 25 CFR 249.6(b) ..... Consistent with the Act, the adjusted penalty levels for 2020 will take effect immediately upon the effective date of the adjustment. The adjusted penalty levels for 2020 will apply to penalties assessed after that date including, if consistent with agency policy, assessments associated with violations that occurred on or after November 2, 2015 (the date of the Act). The Act does not, however, change previously assessed penalties that the Bureau is collecting or has collected. Nor does the Act change an agency’s existing statutory authorities to adjust penalties. III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866 and 13563) Executive Order 12866 provides that the Office of Information and Regulatory VerDate Sep<11>2014 16:42 Feb 18, 2020 Jkt 250001 Affairs in the Office of Management and Budget will review all significant rules. The Office of Information and Regulatory Affairs has determined that this rule is not significant. Executive Order 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the nation’s regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The Executive order directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based PO 00000 Frm 00005 Fmt 4700 multiplying 1.01764 (i.e., the cost-ofliving adjustment multiplier for 2020) by each penalty amount as updated by the adjustment made in 2019: Current penalty including catchup adjustment CFR citation 25 CFR 211.55 ....... khammond on DSKJM1Z7X2PROD with RULES The annual adjustment applies to all civil monetary penalties with a dollar amount that are subject to the Act. This final rule adjusts the following civil monetary penalties contained in the Bureau’s regulations for 2020 by Sfmt 4700 9367 Annual adjustment (multiplier) Adjusted penalty for 2019 $1,329 1,329 1.01764 1.01764 $1,352 1,352 1,597 1.01764 1,626 1,329 1.01764 1,352 1,692 1.01764 1,721 948 1.01764 965 94 94 94 1.01764 1.01764 1.01764 96 96 96 94 1.01764 96 189 1.01764 193 379 1.01764 385 948 1.01764 965 94 1,329 1.01764 1.01764 96 1,352 6,265 1.01764 6,376 1,329 1.01764 1,352 on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements. B. Reducing Regulation and Controlling Regulatory Costs (Executive Order 13771) This rule is not an E.O. 13771 regulatory action because this rule is not significant under Executive Order 12866. C. Regulatory Flexibility Act This rule will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because the rule makes adjustments for inflation. E:\FR\FM\19FER1.SGM 19FER1 9368 Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations D. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule: (a) Does not have an annual effect on the economy of 100 million or more. (b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. (c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. E. Unfunded Mandates Reform Act This rule does not impose an unfunded mandate on State, local, or tribal governments, or the private sector of more than 100 million per year. The rule does not have a significant or unique effect on State, local, or tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. F. Takings (E.O. 12630) This rule does not affect a taking of private property or otherwise have taking implications under Executive Order 12630. A takings implication assessment is not required. G. Federalism (E.O. 13132) Under the criteria in section 1 of Executive Order13132, this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. A federalism summary impact statement is not required. khammond on DSKJM1Z7X2PROD with RULES H. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of Executive Order 12988. Specifically, this rule: (a) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and (b) meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. I. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy) The Department of the Interior strives to strengthen its government-togovernment relationship with Indian tribes through a commitment to consultation with Indian Tribes and recognition of their right to self- VerDate Sep<11>2014 16:42 Feb 18, 2020 Jkt 250001 governance and Tribal sovereignty. We have evaluated this rule under the Department’s consultation policy and under the criteria in Executive Order 13175 and have determined that it has no substantial direct effects on federally recognized Indian Tribes and that consultation under the Department’s Tribal consultation policy is not required. J. Paperwork Reduction Act This rule does not contain information collection requirements, and a submission to the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) is not required. We may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number. K. National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required because the rule is covered by a categorical exclusion. This rule is excluded from the requirement to prepare a detailed statement because it is a regulation of an administrative nature. (For further information see 43 CFR 46.210(i)). We have also determined that the rule does not involve any of the extraordinary circumstances listed in 43 CFR 46.215 that would require further analysis under NEPA. L. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required. M. Administrative Procedure Act The Act requires agencies to publish annual inflation adjustments by no later than January 15, of each year, notwithstanding section 553 of the Administrative Procedure Act (APA) (5 U.S.C. 553). OMB has interpreted this direction to mean that the usual APA public procedure for rulemaking— which includes public notice of a proposed rule, an opportunity for public comment, and a delay in the effective date of a final rule—is not required when agencies issue regulations to implement the annual adjustments to civil penalties that the Act requires. Accordingly, we are issuing the 2019 annual adjustments as a final rule without prior notice or an opportunity for comment and with an effective date PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 immediately upon publication in the Federal Register. Section 553(b) of the Administrative Procedure Act (APA) provides that, when an agency for good cause finds that ‘‘notice and public procedure . . . are impracticable, unnecessary, or contrary to the public interest,’’ the agency may issue a rule without providing notice and an opportunity for prior public comment. Under section 553(b), the Bureau finds that there is good cause to promulgate this rule without first providing for public comment. It would not be possible to meet the deadlines imposed by the Act if we were to first publish a proposed rule, allow the public sufficient time to submit comments, analyze the comments, and publish a final rule. Also, the Bureau is promulgating this final rule to implement the statutory directive in the Act, which requires agencies to publish a final rule and to update the civil penalty amounts by applying a specified formula. The Bureau has no discretion to vary the amount of the adjustment to reflect any views or suggestions provided by commenters. Accordingly, it would serve no purpose to provide an opportunity for public comment on this rule prior to promulgation. Thus, providing for notice and public comment is impracticable and unnecessary. Furthermore, the Bureau finds under section 553(d)(3) of the APA that good cause exists to make this final rule effective immediately upon publication in the Federal Register. In the Act, Congress expressly required Federal agencies to publish annual inflation adjustments to civil penalties in the Federal Register by January 15 of each year, notwithstanding section 553 of the APA. Under the statutory framework and OMB guidance, the new penalty levels take effect immediately upon the effective date of the adjustment. The statutory deadline does not allow time to delay this rule’s effective date beyond publication. Moreover, an effective date after January 15 would delay application of the new penalty levels, contrary to Congress’s intent. List of Subjects 25 CFR Part 140 Business and industry, Indians, Penalties. 25 CFR Part 141 Business and industry, Credit, Indians—business and finance, Penalties. E:\FR\FM\19FER1.SGM 19FER1 Federal Register / Vol. 85, No. 33 / Wednesday, February 19, 2020 / Rules and Regulations 25 CFR Part 211 Geothermal energy, Indians—lands, Mineral resources, Mines, Oil and gas exploration, Reporting and recordkeeping requirements. ■ 5. The authority citation for part 211 continues to read as follows: PART 227—LEASING OF CERTAIN LANDS IN WIND RIVER INDIAN RESERVATION, WYOMING, FOR OIL AND GAS MINING Authority: Sec. 4, Act of May 11, 1938 (52 Stat. 347); Act of August 1, 1956 (70 Stat. 744); 25 U.S.C. 396a–g; 25 U.S.C. 2 and 9; and Sec. 701, Pub. L. 114–74, 129 Stat. 599, unless otherwise noted. § 211.55 25 CFR Part 225 Geothermal energy, Indians—lands, Mineral resources, Mines, Oil and gas exploration, Penalties, Reporting and recordkeeping requirements, Surety bonds. [Amended] 6. In § 211.55(a), remove ‘‘$1,597’’ and add in its place ‘‘$1,626’’. ■ 12. The authority citation for part 227 continues to read as follows: ■ Authority: Sec. 1, 39 Stat. 519; and Sec. 701, Pub. L. 114–74, 129 Stat. 599, unless otherwise noted. § 227.24 PART 213—LEASING OF RESTRICTED LANDS FOR MEMBERS OF FIVE CIVILIZED TRIBES, OKLAHOMA, FOR MINING ■ [Amended] 13. In § 227.24, remove ‘‘$1,329’’ and add in its place ‘‘$1,352’’. PART 243—REINDEER IN ALASKA 25 CFR Part 226 Indians—lands. ■ 7. The authority citation for part 213 continues to read as follows: ■ 25 CFR Part 227 Indians—lands, Mineral resources, Mines, Oil and gas exploration, Reporting and recordkeeping requirements. Authority: Sec. 2, 35 Stat. 312; sec. 18, 41 Stat. 426; sec. 1, 45 Stat. 495; sec. 1, 47 Stat. 777; 25 U.S.C. 356; and Sec. 701, Pub. L. 114–74, 129 Stat. 599. Interpret or apply secs. 3, 11, 35 Stat. 313, 316; sec. 8, 47 Stat. 779, unless otherwise noted. Authority: Sec. 12, 50 Stat. 902; 25 U.S.C. 500K; and Sec. 701, Pub. L. 114–74, 129 Stat. 599. 25 CFR Part 243 Indians, Livestock. § 213.37 [Amended] 8. In § 213.37, remove ‘‘$1,329’’ and add in its place ‘‘$1,352’’. ■ 25 CFR Part 249 Fishing, Indians. For the reasons given in the preamble, the Department of the Interior amends chapter I of title 25 Code of Federal Regulations as follows. 14. The authority citation for part 243 continues to read as follows: § 243.8 [Amended] 15. In § 243.8(a) introductory text, remove ‘‘$6,265’’ and add in its place ‘‘$6,376’’. ■ PART 249—OFF-RESERVATION TREATY FISHING PART 225—OIL AND GAS, GEOTHERMAL, AND SOLID MINERALS AGREEMENTS ■ Title 25—Indians 9. The authority citation for part 225 continues to read as follows: Authority: 25 U.S.C. 2, and 9; 5 U.S.C. 301; and Sec. 701, Pub. L. 114–74, 129 Stat. 599, unless otherwise noted. CHAPTER I—BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR Authority: 25 U.S.C. 2, 9, and 2101–2108; and Sec. 701, Pub. L. 114–74, 129 Stat. 599. § 249.6 § 225.37 ■ PART 140—LICENSED INDIAN TRADERS ■ [Amended] 10. In § 225.37(a), remove ‘‘$1,692’’ and add in its place ‘‘$1,721’’. ■ 1. The authority citation for part 140 continues to read as follows: ■ Authority: Sec. 5, 19 Stat. 200, sec. 1, 31 Stat. 1066 as amended; 25 U.S.C. 261, 262; 94 Stat. 544, 18 U.S.C. 437; 25 U.S.C. 2 and 9; 5 U.S.C. 301; and Sec. 701, Pub. L. 114– 74, 129 Stat. 599, unless otherwise noted. § 140.3 PART 226—LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING 9. The authority citation for part 226 continues to read as follows: 2. In § 140.3, remove ‘‘$1,329’’ and add in its place ‘‘$1,352’’. 16. The authority citation for part 249 continues to read as follows: [Amended] 17. In § 249.6(b), remove ‘‘$1,329’’ and add in its place ‘‘$1,352’’. Dated: January 23, 2020. Tara Sweeney, Assistant Secretary—Indian Affairs. [FR Doc. 2020–02615 Filed 2–18–20; 8:45 am] BILLING CODE 4337–15–P ■ Authority: Sec. 3, 34 Stat. 543; secs. 1, 2, 45 Stat. 1478; sec. 3, 52 Stat. 1034, 1035; sec. 2(a), 92 Stat. 1660; and Sec. 701, Pub. L. 114– 74, 129 Stat. 599. [Amended] ■ Internal Revenue Service 26 CFR Part 1 PART 141—BUSINESS PRACTICES ON THE NAVAJO, HOPI AND ZUNI RESERVATIONS 10. In § 226.42, remove ‘‘$948’’ and add in its place ‘‘$965’’. RIN 1545–BO56 3. The authority citation for part 141 continues to read as follows: § 226.43 Base Erosion and Anti-Abuse Tax; Correcting Amendment Authority: 5 U.S.C. 301; 25 U.S.C. 2 and 9; and Sec. 701, Pub. L. 114–74, 129 Stat. 599, unless otherwise noted. § 141.50 [Amended] 4. In § 141.50, remove ‘‘$1,329’’ and add in its place ‘‘$1,352’’. ■ VerDate Sep<11>2014 16:42 Feb 18, 2020 Jkt 250001 [Amended] DEPARTMENT OF THE TREASURY § 226.42 ■ khammond on DSKJM1Z7X2PROD with RULES d. In paragraph (g), remove ‘‘$948’’ and add in its place ‘‘$965’’. PART 211—LEASING OF TRIBAL LANDS FOR MINERAL DEVELOPMENT ■ 25 CFR Part 213 Indians—lands, Mineral resources, Mines, Oil and gas exploration, Reporting and recordkeeping requirements. 9369 [TD 9885] ■ [Amended] 11. In § 226.43: a. Remove ‘‘$94’’ each time it appears and add in each place ‘‘$96’’ wherever it appears in this section. ■ b. In paragraph (e), remove ‘‘$189’’ and add in its place ‘‘$193’’. ■ c. In paragraph (f), remove ‘‘$379’’ and add in its place ‘‘$385’’. ■ ■ PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. AGENCY: This document contains corrections to Treasury Decision 9885, which was published in the Federal SUMMARY: E:\FR\FM\19FER1.SGM 19FER1

Agencies

[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Rules and Regulations]
[Pages 9366-9369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02615]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Parts 140, 141, 211, 213, 225, 226, 227, 243, and 249

[210A2100DD/AAKC001030/A0A501010.999900253G]
RIN 1076-AF49


Civil Penalties Inflation Adjustments; Annual Adjustments

AGENCY: Bureau of Indian Affairs, Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule provides for annual adjustments to the level of 
civil monetary penalties contained in Bureau of Indian Affairs (Bureau) 
regulations to account for inflation under the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 and Office of 
Management and Budget (OMB) guidance.

DATES: This rule is effective on February 19, 2020.

FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Director, Office of 
Regulatory Affairs and Collaborative Action, Office of the Assistant 
Secretary--Indian Affairs; telephone (202) 273-4680, 
[email protected].

SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of Annual Adjustments
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866 and 13563)
    B. Reducing Regulation and Controlling Regulatory Costs (E.O. 
13771)
    C. Regulatory Flexibility Act
    D. Small Business Regulatory Enforcement Fairness Act
    E. Unfunded Mandates Reform Act
    F. Takings (E.O. 12630)
    G. Federalism (E.O. 13132)
    H. Civil Justice Reform (E.O. 12988)
    I. Consultation With Indian Tribes (E.O. 13175)
    J. Paperwork Reduction Act
    K. National Environmental Policy Act
    L. Effects on the Energy Supply (E.O. 13211)
    M. Clarity of This Regulation
    N. Administrative Procedure Act

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Public Law 114-74) (``the Act''). The Act requires Federal 
agencies to adjust the level of civil monetary penalties with an 
initial ``catch-up'' adjustment through rulemaking and then make 
subsequent annual adjustments for inflation. The purpose of these 
adjustments is to maintain the deterrent effect of civil penalties and 
to further the policy goals of the underlying statutes.
    The Office of Management and Budget (OMB) issued guidance for 
Federal agencies on calculating the catch-up adjustment. See February 
24, 2016, Memorandum for the Heads of Executive Departments and 
Agencies, from Shaun Donovan, Director, Office of Management and 
Budget, re: Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (M-16-06). Under the guidance, 
the Department identified applicable civil monetary penalties and 
calculated the catch-up adjustment. A civil monetary penalty is any 
assessment with a dollar amount that is levied for a violation of a 
Federal civil statute or regulation, and is assessed or enforceable 
through a civil action in Federal court or an administrative 
proceeding. A civil monetary penalty does not include a penalty levied 
for violation of a criminal statute, or fees for services, licenses, 
permits, or other regulatory review. The calculated catch-up adjustment 
is based on the percent change between the Consumer Price Index for all 
Urban Consumers (CPI0-U) for the month of October in the year of the 
previous adjustment (or in the year of establishment, if no adjustment 
has been made) and the October 2015 CPI-U.
    The Bureau issued an interim final rule providing for calculated 
catch-up adjustments on June 30, 2016 (81 FR 42478) with an effective 
date of August 1, 2016, and requesting comments post-promulgation. The 
Bureau issued a final rule affirming the catch-up adjustments set forth 
in the interim final rule on December 2, 2016 (81 FR 86953). The Bureau 
then issued a final rule making the next scheduled annual inflation 
adjustment for 2017 on January 23, 2017 (82 FR 7649), for 2018 on 
February 6, 2018 (83 FR 5192), and for 2019 on April 15, 2019 (84 FR 
15098).

II. Calculation of 2020 Annual Adjustments

    OMB recently issued guidance to assist Federal agencies in 
implementing the annual adjustments required by the Act, which agencies 
must complete by January 15, 2020. See December 16, 2019, Memorandum 
for the Heads of Executive Departments and Agencies, from Russell T. 
Vought, Acting Director, Office of Management and Budget, re: 
Implementation of the Penalty Inflation Adjustments for 2020, Pursuant 
to the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (M-20-05). The guidance states that the cost-of-living 
adjustment multiplier for 2020, based on the Consumer Price Index (CPI-
U) for the month of October 2019, not seasonally adjusted, is 1.01764. 
(The annual inflation adjustments are based on the percent change 
between the October CPI-U preceding the date of the adjustment, and the 
prior year's October CPI-U. For 2020, OMB explains, October 2019 CPI-U 
(257.346)/October 2018 CPI-U (252.885) = 1.01764.) The guidance 
instructs agencies to complete the 2020 annual adjustment by 
multiplying each applicable penalty by

[[Page 9367]]

the multiplier, 1.01764, and rounding to the nearest dollar. Further, 
agencies should apply the multiplier to the most recent penalty amount 
that includes the initial catch-up adjustment required by the Act.
    The annual adjustment applies to all civil monetary penalties with 
a dollar amount that are subject to the Act. This final rule adjusts 
the following civil monetary penalties contained in the Bureau's 
regulations for 2020 by multiplying 1.01764 (i.e., the cost-of-living 
adjustment multiplier for 2020) by each penalty amount as updated by 
the adjustment made in 2019:

----------------------------------------------------------------------------------------------------------------
                                                                      Current
                                                                      penalty         Annual         Adjusted
           CFR citation                Description of penalty        including      adjustment      penalty for
                                                                      catchup      (multiplier)        2019
                                                                    adjustment
----------------------------------------------------------------------------------------------------------------
25 CFR 140.3.....................  Penalty for trading in Indian          $1,329         1.01764          $1,352
                                    country without a license.
25 CFR 141.50....................  Penalty for trading on                  1,329         1.01764           1,352
                                    Navajo, Hopi or Zuni
                                    reservations without a
                                    license.
25 CFR 211.55....................  Penalty for violation of                1,597         1.01764           1,626
                                    leases of Tribal land for
                                    mineral development,
                                    violation of part 211, or
                                    failure to comply with a
                                    notice of noncompliance or
                                    cessation order.
25 CFR 213.37....................  Penalty for failure of lessee           1,329         1.01764           1,352
                                    to comply with lease of
                                    restricted lands of members
                                    of the Five Civilized Tribes
                                    in Oklahoma for mining,
                                    operating regulations at
                                    part 213, or orders.
25 CFR 225.37....................  Penalty for violation of                1,692         1.01764           1,721
                                    minerals agreement,
                                    regulations at part 225,
                                    other applicable laws or
                                    regulations, or failure to
                                    comply with a notice of
                                    noncompliance or cessation
                                    order.
25 CFR 226.42....................  Penalty for violation of                  948         1.01764             965
                                    lease of Osage reservation
                                    lands for oil and gas mining
                                    or regulations at part 226,
                                    or noncompliance with the
                                    Superintendent's order.
25 CFR 226.43(a).................  Penalty per day for failure                94         1.01764              96
                                    to obtain permission to
                                    start operations.
25 CFR 226.43(b).................  Penalty per day for failure                94         1.01764              96
                                    to file records.
25 CFR 226.43(c).................  Penalty for each well and                  94         1.01764              96
                                    tank battery for failure to
                                    mark wells and tank
                                    batteries.
25 CFR 226.43(d).................  Penalty each day after                     94         1.01764              96
                                    operations are commenced for
                                    failure to construct and
                                    maintain pits.
25 CFR 226.43(e).................  Penalty for failure to comply             189         1.01764             193
                                    with requirements regarding
                                    valve or other approved
                                    controlling device.
25 CFR 226.43(f).................  Penalty for failure to notify             379         1.01764             385
                                    Superintendent before
                                    drilling, redrilling,
                                    deepening, plugging, or
                                    abandoning any well.
25 CFR 226.43(g).................  Penalty per day for failure               948         1.01764             965
                                    to properly care for and
                                    dispose of deleterious
                                    fluids.
25 CFR 226.43(h).................  Penalty per day for failure                94         1.01764              96
                                    to file plugging and other
                                    required reports.
25 CFR 227.24....................  Penalty for failure of lessee           1,329         1.01764           1,352
                                    of certain lands in Wind
                                    River Indian Reservation,
                                    Wyoming, for oil and gas
                                    mining to comply with lease
                                    provisions, operating
                                    regulations, regulations at
                                    part 227, or orders.
25 CFR 243.8.....................  Penalty for non-Native                  6,265         1.01764           6,376
                                    transferees of live Alaskan
                                    reindeer who violates part
                                    243, takes reindeer without
                                    a permit, or fails to abide
                                    by permit terms..
25 CFR 249.6(b)..................  Penalty for fishing in                  1,329         1.01764           1,352
                                    violation of regulations at
                                    part 249 (Off-Reservation
                                    Treaty Fishing).
----------------------------------------------------------------------------------------------------------------

    Consistent with the Act, the adjusted penalty levels for 2020 will 
take effect immediately upon the effective date of the adjustment. The 
adjusted penalty levels for 2020 will apply to penalties assessed after 
that date including, if consistent with agency policy, assessments 
associated with violations that occurred on or after November 2, 2015 
(the date of the Act). The Act does not, however, change previously 
assessed penalties that the Bureau is collecting or has collected. Nor 
does the Act change an agency's existing statutory authorities to 
adjust penalties.

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs in the Office of Management and Budget will review 
all significant rules. The Office of Information and Regulatory Affairs 
has determined that this rule is not significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The Executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. We have developed this rule in a manner consistent 
with these requirements.

B. Reducing Regulation and Controlling Regulatory Costs (Executive 
Order 13771)

    This rule is not an E.O. 13771 regulatory action because this rule 
is not significant under Executive Order 12866.

C. Regulatory Flexibility Act

    This rule will not have a significant economic effect on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.) because the rule makes adjustments for 
inflation.

[[Page 9368]]

D. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of 100 million or 
more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

E. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments, or the private sector of more than 100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

F. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under Executive Order 12630. A takings 
implication assessment is not required.

G. Federalism (E.O. 13132)

    Under the criteria in section 1 of Executive Order13132, this rule 
does not have sufficient federalism implications to warrant the 
preparation of a federalism summary impact statement. A federalism 
summary impact statement is not required.

H. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule: (a) Meets the criteria of section 3(a) 
requiring that all regulations be reviewed to eliminate errors and 
ambiguity and be written to minimize litigation; and (b) meets the 
criteria of section 3(b)(2) requiring that all regulations be written 
in clear language and contain clear legal standards.

I. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian tribes through a 
commitment to consultation with Indian Tribes and recognition of their 
right to self-governance and Tribal sovereignty. We have evaluated this 
rule under the Department's consultation policy and under the criteria 
in Executive Order 13175 and have determined that it has no substantial 
direct effects on federally recognized Indian Tribes and that 
consultation under the Department's Tribal consultation policy is not 
required.

J. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to the Office of Management and Budget under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.) is not required. We may not 
conduct or sponsor, and you are not required to respond to, a 
collection of information unless it displays a currently valid OMB 
control number.

K. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required because the rule is covered by a categorical exclusion. This 
rule is excluded from the requirement to prepare a detailed statement 
because it is a regulation of an administrative nature. (For further 
information see 43 CFR 46.210(i)). We have also determined that the 
rule does not involve any of the extraordinary circumstances listed in 
43 CFR 46.215 that would require further analysis under NEPA.

L. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in Executive Order 13211. A Statement of Energy Effects is not 
required.

M. Administrative Procedure Act

    The Act requires agencies to publish annual inflation adjustments 
by no later than January 15, of each year, notwithstanding section 553 
of the Administrative Procedure Act (APA) (5 U.S.C. 553). OMB has 
interpreted this direction to mean that the usual APA public procedure 
for rulemaking--which includes public notice of a proposed rule, an 
opportunity for public comment, and a delay in the effective date of a 
final rule--is not required when agencies issue regulations to 
implement the annual adjustments to civil penalties that the Act 
requires. Accordingly, we are issuing the 2019 annual adjustments as a 
final rule without prior notice or an opportunity for comment and with 
an effective date immediately upon publication in the Federal Register.
    Section 553(b) of the Administrative Procedure Act (APA) provides 
that, when an agency for good cause finds that ``notice and public 
procedure . . . are impracticable, unnecessary, or contrary to the 
public interest,'' the agency may issue a rule without providing notice 
and an opportunity for prior public comment. Under section 553(b), the 
Bureau finds that there is good cause to promulgate this rule without 
first providing for public comment. It would not be possible to meet 
the deadlines imposed by the Act if we were to first publish a proposed 
rule, allow the public sufficient time to submit comments, analyze the 
comments, and publish a final rule. Also, the Bureau is promulgating 
this final rule to implement the statutory directive in the Act, which 
requires agencies to publish a final rule and to update the civil 
penalty amounts by applying a specified formula. The Bureau has no 
discretion to vary the amount of the adjustment to reflect any views or 
suggestions provided by commenters. Accordingly, it would serve no 
purpose to provide an opportunity for public comment on this rule prior 
to promulgation. Thus, providing for notice and public comment is 
impracticable and unnecessary.
    Furthermore, the Bureau finds under section 553(d)(3) of the APA 
that good cause exists to make this final rule effective immediately 
upon publication in the Federal Register. In the Act, Congress 
expressly required Federal agencies to publish annual inflation 
adjustments to civil penalties in the Federal Register by January 15 of 
each year, notwithstanding section 553 of the APA. Under the statutory 
framework and OMB guidance, the new penalty levels take effect 
immediately upon the effective date of the adjustment. The statutory 
deadline does not allow time to delay this rule's effective date beyond 
publication. Moreover, an effective date after January 15 would delay 
application of the new penalty levels, contrary to Congress's intent.

List of Subjects

25 CFR Part 140

    Business and industry, Indians, Penalties.

25 CFR Part 141

    Business and industry, Credit, Indians--business and finance, 
Penalties.

[[Page 9369]]

25 CFR Part 211

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Reporting and recordkeeping requirements.

25 CFR Part 213

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 225

    Geothermal energy, Indians--lands, Mineral resources, Mines, Oil 
and gas exploration, Penalties, Reporting and recordkeeping 
requirements, Surety bonds.

25 CFR Part 226

    Indians--lands.

25 CFR Part 227

    Indians--lands, Mineral resources, Mines, Oil and gas exploration, 
Reporting and recordkeeping requirements.

25 CFR Part 243

    Indians, Livestock.

25 CFR Part 249

    Fishing, Indians.

    For the reasons given in the preamble, the Department of the 
Interior amends chapter I of title 25 Code of Federal Regulations as 
follows.

Title 25--Indians

CHAPTER I--BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR

PART 140--LICENSED INDIAN TRADERS

0
1. The authority citation for part 140 continues to read as follows:

    Authority:  Sec. 5, 19 Stat. 200, sec. 1, 31 Stat. 1066 as 
amended; 25 U.S.C. 261, 262; 94 Stat. 544, 18 U.S.C. 437; 25 U.S.C. 
2 and 9; 5 U.S.C. 301; and Sec. 701, Pub. L. 114-74, 129 Stat. 599, 
unless otherwise noted.


Sec.  140.3   [Amended]

0
2. In Sec.  140.3, remove ``$1,329'' and add in its place ``$1,352''.

PART 141--BUSINESS PRACTICES ON THE NAVAJO, HOPI AND ZUNI 
RESERVATIONS

0
3. The authority citation for part 141 continues to read as follows:

    Authority:  5 U.S.C. 301; 25 U.S.C. 2 and 9; and Sec. 701, Pub. 
L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  141.50   [Amended]

0
4. In Sec.  141.50, remove ``$1,329'' and add in its place ``$1,352''.

PART 211--LEASING OF TRIBAL LANDS FOR MINERAL DEVELOPMENT

0
5. The authority citation for part 211 continues to read as follows:

    Authority:  Sec. 4, Act of May 11, 1938 (52 Stat. 347); Act of 
August 1, 1956 (70 Stat. 744); 25 U.S.C. 396a-g; 25 U.S.C. 2 and 9; 
and Sec. 701, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  211.55   [Amended]

0
6. In Sec.  211.55(a), remove ``$1,597'' and add in its place 
``$1,626''.

PART 213--LEASING OF RESTRICTED LANDS FOR MEMBERS OF FIVE CIVILIZED 
TRIBES, OKLAHOMA, FOR MINING

0
7. The authority citation for part 213 continues to read as follows:

    Authority:  Sec. 2, 35 Stat. 312; sec. 18, 41 Stat. 426; sec. 1, 
45 Stat. 495; sec. 1, 47 Stat. 777; 25 U.S.C. 356; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599. Interpret or apply secs. 3, 11, 35 
Stat. 313, 316; sec. 8, 47 Stat. 779, unless otherwise noted.


Sec.  213.37   [Amended]

0
8. In Sec.  213.37, remove ``$1,329'' and add in its place ``$1,352''.

PART 225--OIL AND GAS, GEOTHERMAL, AND SOLID MINERALS AGREEMENTS

0
9. The authority citation for part 225 continues to read as follows:

    Authority:  25 U.S.C. 2, 9, and 2101-2108; and Sec. 701, Pub. L. 
114-74, 129 Stat. 599.


Sec.  225.37   [Amended]

0
10. In Sec.  225.37(a), remove ``$1,692'' and add in its place 
``$1,721''.

PART 226--LEASING OF OSAGE RESERVATION LANDS FOR OIL AND GAS MINING

0
9. The authority citation for part 226 continues to read as follows:

    Authority:  Sec. 3, 34 Stat. 543; secs. 1, 2, 45 Stat. 1478; 
sec. 3, 52 Stat. 1034, 1035; sec. 2(a), 92 Stat. 1660; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599.


Sec.  226.42   [Amended]

0
10. In Sec.  226.42, remove ``$948'' and add in its place ``$965''.


Sec.  226.43   [Amended]

0
11. In Sec.  226.43:
0
a. Remove ``$94'' each time it appears and add in each place ``$96'' 
wherever it appears in this section.
0
b. In paragraph (e), remove ``$189'' and add in its place ``$193''.
0
c. In paragraph (f), remove ``$379'' and add in its place ``$385''.
0
d. In paragraph (g), remove ``$948'' and add in its place ``$965''.

PART 227--LEASING OF CERTAIN LANDS IN WIND RIVER INDIAN 
RESERVATION, WYOMING, FOR OIL AND GAS MINING

0
12. The authority citation for part 227 continues to read as follows:

    Authority:  Sec. 1, 39 Stat. 519; and Sec. 701, Pub. L. 114-74, 
129 Stat. 599, unless otherwise noted.


Sec.  227.24   [Amended]

0
13. In Sec.  227.24, remove ``$1,329'' and add in its place ``$1,352''.

PART 243--REINDEER IN ALASKA

0
14. The authority citation for part 243 continues to read as follows:

    Authority:  Sec. 12, 50 Stat. 902; 25 U.S.C. 500K; and Sec. 701, 
Pub. L. 114-74, 129 Stat. 599.


Sec.  243.8   [Amended]

0
15. In Sec.  243.8(a) introductory text, remove ``$6,265'' and add in 
its place ``$6,376''.

PART 249--OFF-RESERVATION TREATY FISHING

0
16. The authority citation for part 249 continues to read as follows:

    Authority:  25 U.S.C. 2, and 9; 5 U.S.C. 301; and Sec. 701, Pub. 
L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  249.6   [Amended]

0
17. In Sec.  249.6(b), remove ``$1,329'' and add in its place 
``$1,352''.

    Dated: January 23, 2020.
Tara Sweeney,
Assistant Secretary--Indian Affairs.
[FR Doc. 2020-02615 Filed 2-18-20; 8:45 am]
 BILLING CODE 4337-15-P