Civil Monetary Penalties Inflation Adjustments, 13725-13727 [2020-04278]

Download as PDF Federal Register / Vol. 85, No. 47 / Tuesday, March 10, 2020 / Rules and Regulations khammond on DSKJM1Z7X2PROD with RULES III. Administrative Procedure Act In general, the Administrative Procedure Act (‘‘APA’’) 7 imposes three principal requirements when an agency promulgates legislative rules (rules made pursuant to Congressionallydelegated authority): (1) Publication with adequate notice of a proposed rule; (2) followed by a meaningful opportunity for the public to comment on the rule’s content; and (3) publication of the final rule not less than 30 days before its effective date. The APA provides that notice and comment procedures do not apply if the agency for good cause finds them to be ‘‘unnecessary, impracticable, or contrary to the public interest.’’ 8 Section 553(d) of the APA also provides that publication at least 30 days prior to a rule’s effective date is not required for (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) a rule for which the agency finds good cause for shortened notice and publishes its reasoning with the rule.9 The Board has determined that good cause exists for finding that the notice, public comment, and delayed effective date provisions of the APA are unnecessary, impracticable, or contrary to the public interest with respect to these final amendments to Regulation D. The rate changes for IORR and IOER that are reflected in the final amendments to Regulation D were made with a view towards accommodating commerce and business and with regard to their bearing upon the general credit situation of the country. Notice and public comment would prevent the Board’s action from being effective as promptly as necessary in the public interest and would not otherwise serve any useful purpose. Notice, public comment, and a delayed effective date would create uncertainty about the finality and effectiveness of the Board’s action and undermine the effectiveness of that action. Accordingly, the Board has determined that good cause exists to dispense with the notice, public comment, and delayed effective date procedures of the APA with respect to these final amendments to Regulation D. IV. Regulatory Flexibility Analysis The Regulatory Flexibility Act (‘‘RFA’’) does not apply to a rulemaking where a general notice of proposed rulemaking is not required.10 As noted previously, the Board has determined 75 U.S.C. 551 et seq. U.S.C. 553(b)(3)(A). 9 5 U.S.C. 553(d). 10 5 U.S.C. 603, 604. 85 VerDate Sep<11>2014 18:24 Mar 09, 2020 Jkt 250001 13725 that it is unnecessary and contrary to the public interest to publish a general notice of proposed rulemaking for this final rule. Accordingly, the RFA’s requirements relating to an initial and final regulatory flexibility analysis do not apply. SMALL BUSINESS ADMINISTRATION V. Paperwork Reduction Act AGENCY: In accordance with the Paperwork Reduction Act (‘‘PRA’’) of 1995,11 the Board reviewed the final rule under the authority delegated to the Board by the Office of Management and Budget. The final rule contains no requirements subject to the PRA. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. Authority and Issuance For the reasons set forth in the preamble, the Board amends 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: ■ 13 CFR Parts 107, 120, 142, and 146 RIN 3245–AH24 Civil Monetary Penalties Inflation Adjustments U.S. Small Business Administration. ACTION: Final rule. The Small Business Administration (SBA) is amending its regulations to adjust for inflation the amount of certain civil monetary penalties that are within the jurisdiction of the agency. These adjustments comply with the requirement in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to make annual adjustments to the penalties. DATES: This rule is effective March 10, 2020. FOR FURTHER INFORMATION CONTACT: Arlene Embrey, 202–205–6976, or at arlene.embrey@sba.gov. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the Act), Public Law 114–74, 129 Stat. 584, was ■ 2. Section 204.10 is amended by enacted. The Act amended the Federal revising paragraph (b)(5) to read as Civil Penalties Inflation Adjustment Act follows: of 1990, Public Law 101–410, 104 Stat 890 (the 1990 Inflation Adjustment Act), § 204.10 Payment of interest on balances. to improve the effectiveness of civil * * * * * monetary penalties and to maintain (b) * * * their deterrent effect. The Act required agencies to issue a final rule by August (5) The rates for IORR and IOER are: 1, 2016, to adjust the level of civil monetary penalties with an initial TABLE 1 TO PARAGRAPH (b)(5) ‘‘catch-up’’ adjustment and to annually adjust these monetary penalties for Rate inflation by January 15 of each (percent) subsequent year. The Act authorizes IORR ........................................... 1.10 agencies to implement the annual IOER ........................................... 1.10 adjustments without regard to the requirements for public notice and comment or delayed effective date By order of the Board of Governors of the under the Administrative Procedure Act Federal Reserve System, March 4, 2020. (APA), 5 U.S.C. 553(b)(3)(B) and (d)(3), Michele Taylor Fennell, respectively. Assistant Secretary of the Board. In addition, based on the definition of [FR Doc. 2020–04826 Filed 3–9–20; 8:45 am] a ‘‘civil monetary penalty’’ in the 1990 BILLING CODE 6210–01–P Inflation Adjustment Act, agencies are to make adjustments only to the civil penalties that (i) are for a specific monetary amount as provided by Federal law or have a maximum amount provided for by Federal law; (ii) are 11 44 U.S.C. 3506; see 5 CFR part 1320 Appendix assessed or enforced by an agency; and A.1. (iii) are enforced or assessed in an Authority: 12 U.S.C. 248(a), 248(c), 461, 601, 611, and 3105. PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1 13726 Federal Register / Vol. 85, No. 47 / Tuesday, March 10, 2020 / Rules and Regulations administrative proceeding or a civil action in the Federal courts. Therefore, penalties that are stated as a percentage of an indeterminate amount or as a function of a violation (penalties that encompass actual damages incurred) are not to be adjusted. SBA published in the Federal Register an interim final rule with its initial adjustments to the civil monetary penalties, including an initial ‘‘catchup’’ adjustment, on May 19, 2016 (81 FR 31489), with an effective date of August 1, 2016. SBA published its first annual adjustments to the monetary penalties on February 9, 2017 (82 FR 9967), with an immediate effective date. SBA published its subsequent annual adjustments for 2018 on February 21, 2018 (83 FR 7361), and for 2019 on April 1, 2019 (84 FR 12059), both with immediate effective dates. This rule will establish the adjusted penalty amounts for 2020 with immediate effective date upon publication. On December 16, 2019, the Office of Management and Budget published its annual guidance memorandum for 2020 civil monetary penalties inflation adjustments (M–20–05, Implementation of Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015). The guidance memorandum provides the formula for calculating the annual adjustments based on the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October preceding the adjustment, and specifically on the change between the October CPI–U preceding the date of adjustment and the prior year’s CPI–U. Based on this methodology, the 2020 civil monetary penalty inflation adjustment is October 2019 CPI–U (257.346)/October 2018 CPI–U (252.885) = 1.01764. The annual adjustments identified in this rule were obtained by applying this multiplier of 1.01764 to the most recently adjusted penalty amounts that were published in SBA’s 2019 adjustments to civil monetary penalties (84 FR 12059, April 1, 2019). khammond on DSKJM1Z7X2PROD with RULES II. Civil Money Penalties Adjusted by This Rule This rule adjusts civil monetary penalties authorized by the Small Business Act, the Small Business Investment Act of 1958 (SBIAct), the Program Fraud Civil Remedies Act, and the Byrd Amendment to the Federal Regulation of Lobbying Act. These penalties and the implementing regulations are discussed below. VerDate Sep<11>2014 16:53 Mar 09, 2020 Jkt 250001 1. 13 CFR 107.665—Civil Penalties 4. 13 CFR 146.400—Penalties SBA licenses, regulates and provides financial assistance to financial entities called small business investment companies (SBICs). Pursuant to section 315 of the SBIAct, 15 U.S.C. 687g, SBA may impose a penalty on any SBIC for each day that it fails to comply with SBA’s regulations or directives governing the filing of regular or special reports. The penalty for non-compliance is incorporated in § 107.665 of the SBIC program regulations. SBA’s regulations at 13 CFR part 146 govern lobbying activities by recipients of federal financial assistance. These regulations implement the authority in 31 U.S.C. 1352, which was established in 1989, and impose penalties on any recipient that fails to comply with certain requirements in the part. Specifically, under § 146.400(a) and (b), penalties may be imposed on those who make prohibited expenditures or fail to file the required disclosure forms or to amend such forms, if necessary. This rule amends § 107.665 to adjust the current civil penalty from $266 to $271 per day of failure to file. The current civil penalty of $266 was multiplied by the multiplier of 1.01764 to reach a product of $271, rounded to the nearest dollar. 2. 13 CFR 120.465—Civil Penalty for Late Submission of Required Reports This rule amends § 146.400(a) and (b) to adjust the current civil penalty amounts to ‘‘not less than $20,489 and not more than $204,892.’’ The current civil penalty amounts of $20,134 and $201,340 were multiplied by the multiplier of 1.01764 to reach a product of $20,489 and $204,892, respectively, rounded to the nearest dollar. According to the regulations at § 120.465, any SBA Supervised Lender, as defined in 13 CFR 120.10, that violates a regulation or written directive issued by the SBA Administrator regarding the filing of any regular or special report is subject to the civil penalty amount stated in § 120.465(b) for each day the company fails to file the report, unless the SBA Supervised Lender can show that there is reasonable cause for its failure to file. This penalty is authorized by section 23(j)(1) of the Small Business Act, 15 U.S.C. 650(j)(1). This rule also amends § 146.400(e) to adjust the civil penalty that may be imposed for a first-time violation of § 146.400(a) and (b) to $20,489 and to adjust the civil penalty that may be imposed for second and subsequent offenses to ‘‘not less than $20,489 and not more than $204,892.’’ The current civil penalty amounts of $20,134 and $201,340 were multiplied by the multiplier of 1.01764 to reach a product of $20,489 and $204,892 respectively, rounded to the nearest dollar. This rule amends § 120.465(b) to adjust the current civil penalty from $6,623 to $6,740 per day of failure to file. The current civil penalty of $6,623 was multiplied by the multiplier of 1.01764 to reach a product of $6,740, rounded to the nearest dollar. The Act provides that agencies shall annually adjust civil monetary penalties for inflation notwithstanding Section 553 of the APA. Additionally, the Act provides a non-discretionary cost-ofliving formula for annual adjustment of the civil monetary penalties. For these reasons, the requirements in sections 553(b), (c), and (d) of the APA, relating to notice and comment and requiring that a rule be effective 30 days after publication in the Federal Register, are inapplicable. 3. 13 CFR 142.1—Overview of Regulations SBA has promulgated regulations at 13 CFR part 142 to implement the civil penalties authorized by the Program Fraud Civil Remedies Act of 1986 (PFCRA), 31 U.S.C. 3801–3812. Under the current regulation at 13 CFR 142.1(b), a person who submits, or causes to be submitted, a false claim or a false statement to SBA is subject to a civil penalty of not more than $11,463, for each statement or claim. The adjusted civil penalty amount was calculated by multiplying the current civil penalty of $11,463 by the multiplier of 1.01764 to reach a product of $11,665, rounded to the nearest dollar. PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 III. Justification for Final Rule IV. Justification for Immediate Effective Date Section 553(d) requires agencies to publish their rules at least 30 days before their effective dates, except if the agency finds for good cause that the delay is impracticable, unnecessary, or contrary to the public interest. By expressly exempting this rule from section 553, the Act has provided SBA with the good cause justification for this rule to become effective on the date it is published in the Federal Register. E:\FR\FM\10MRR1.SGM 10MRR1 Federal Register / Vol. 85, No. 47 / Tuesday, March 10, 2020 / Rules and Regulations List of Subjects Compliance With Executive Orders 12866, 12988, 13132, 13771, and the Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory Flexibility Act (5 U.S.C. 601–612). 13 CFR Part 107 Investment companies, Loan programs-business, Reporting and recordkeeping requirements, Small businesses. Executive Order 12866 The Office of Management and Budget has determined that this final rule is not a significant regulatory action under Executive Order 12866. This is also not a major rule under the Congressional Review Act, 5 U.S.C. 800. Executive Order 12988 This action meets applicable standards set forth in Sections 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect. Executive Order 13132 For the purpose of Executive Order 13132, SBA has determined that the rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, this final rule has no federalism implications warranting preparation of a federalism assessment. Executive Order 13771 This rule is not an Executive Order 13771 regulatory action, because this rule is not significant under Executive Order 12866. 13 CFR Part 142 Administrative practice and procedure, Claims, Fraud, Penalties. 13 CFR Part 146 Government contracts, Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, SBA amends 13 CFR parts 107, 120, 142, and 146 as follows: PART 107—SMALL BUSINESS INVESTMENT COMPANIES 1. The authority citation for part 107 continues to read as follows: ■ Authority: 15 U.S.C. 681, 683, 687(c), 687b, 687d, 687g, 687m. § 107.665 [Amended] 2. In § 107.665, remove ‘‘$266’’ and add in its place ‘‘$271’’. ■ PART 120—BUSINESS LOANS 3. The authority citation for part 120 continues to read as follows: ■ SBA has determined that this rule does not impose additional reporting or recordkeeping requirements. Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3), and 697(a) and (e); Pub. L. 111–5, 123 Stat. 115, Pub. L. 111–240, 124 Stat. 2504; Pub. L. 114–38, 129 Stat.437. Regulatory Flexibility Act § 120.465 The Regulatory Flexibility Act (‘‘RFA’’) requires agencies to consider the effect of their regulatory actions on small entities, including small nonprofit businesses, and small local governments. Pursuant to the RFA, when an agency issues a rule, the agency must prepare an analysis that describes whether the impact of the rule will have a significant economic impact on a substantial number of such small entities. However, the RFA requires such analysis only where notice and comment rulemaking are required. As stated above, SBA has express statutory authority to issue this rule without regard to the notice and comment requirement of the APA. Since notice and comment is not required before this rule is issued, SBA is not required to prepare a regulatory analysis. ■ Paperwork Reduction Act khammond on DSKJM1Z7X2PROD with RULES 13 CFR Part 120 Loan programs-business, Reporting and recordkeeping requirements, Small businesses. VerDate Sep<11>2014 16:53 Mar 09, 2020 Jkt 250001 [Amended] 4. In § 120.465, amend paragraph (b) by removing ‘‘$6,623’’ and adding in its place ‘‘$6,740’’. PART 142—PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS 5. The authority citation for part 142 continues to read as follows: ■ Authority: 15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2). § 142.1 [Amended] 6. In § 142.1, amend paragraph (b) by removing ‘‘$11,463’’ and adding in its place ‘‘$11,665’’. ■ PART 146—NEW RESTRICTIONS ON LOBBYING 7. The authority citation for part 146 continues to read as follows: ■ PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 13727 Authority: Section 319, Pub. L. 101–121 (31 U.S.C. 1352); 15 U.S.C. 634(b)(6). § 146.400 [Amended] 8. Amend § 146.400 by removing ‘‘$20,134’’ wherever it appears and adding in its place ‘‘$20,489’’ and by removing ‘‘$201,340’’ wherever it appears and adding in its place ‘‘$204,892’’. ■ Dated: February 24, 2020. Jovita Carranza, Administrator. [FR Doc. 2020–04278 Filed 3–9–20; 8:45 am] BILLING CODE 8026–03–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2020–0179; Project Identifier MCAI–2019–00125–E; Amendment 39–21102; AD 2020–05–01] RIN 2120–AA64 Airworthiness Directives; Rolls-Royce Deutschland Ltd & Co KG (Type Certificate Previously Held by RollsRoyce plc) Turbofan Engines Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. AGENCY: The FAA is adopting a new airworthiness directive (AD) for all Rolls-Royce Deutschland Ltd. & Co KG (RRD) Trent 1000–AE3, Trent 1000– CE3, Trent 1000–D3, Trent 1000–G3, Trent 1000–H3, Trent 1000–J3, Trent 1000–K3, Trent 1000–L3, Trent 1000– M3, Trent 1000–N3, Trent 1000–P3, Trent 1000–Q3, and Trent 1000–R3 model turbofan engines. This AD requires initial and repetitive borescope inspections (BSI) of the high-pressure turbine (HPT) blades. This AD also requires replacement of HPT blades with parts eligible for installation when the HPT blades fail inspection or reach the new life limit. This AD was prompted by the manufacturer identifying that the HPT blades may fail prematurely. The FAA is issuing this AD to address the unsafe condition on these products. DATES: This AD is effective March 25, 2020. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of March 25, 2020. The FAA must receive comments on this AD by April 24, 2020. SUMMARY: E:\FR\FM\10MRR1.SGM 10MRR1

Agencies

SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 85, Number 47 (Tuesday, March 10, 2020)]
[Rules and Regulations]
[Pages 13725-13727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04278]


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SMALL BUSINESS ADMINISTRATION

13 CFR Parts 107, 120, 142, and 146

RIN 3245-AH24


Civil Monetary Penalties Inflation Adjustments

AGENCY: U.S. Small Business Administration.

ACTION: Final rule.

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SUMMARY: The Small Business Administration (SBA) is amending its 
regulations to adjust for inflation the amount of certain civil 
monetary penalties that are within the jurisdiction of the agency. 
These adjustments comply with the requirement in the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to 
make annual adjustments to the penalties.

DATES: This rule is effective March 10, 2020.

FOR FURTHER INFORMATION CONTACT: Arlene Embrey, 202-205-6976, or at 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 2, 2015, the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (the Act), Public Law 114-74, 
129 Stat. 584, was enacted. The Act amended the Federal Civil Penalties 
Inflation Adjustment Act of 1990, Public Law 101-410, 104 Stat 890 (the 
1990 Inflation Adjustment Act), to improve the effectiveness of civil 
monetary penalties and to maintain their deterrent effect. The Act 
required agencies to issue a final rule by August 1, 2016, to adjust 
the level of civil monetary penalties with an initial ``catch-up'' 
adjustment and to annually adjust these monetary penalties for 
inflation by January 15 of each subsequent year. The Act authorizes 
agencies to implement the annual adjustments without regard to the 
requirements for public notice and comment or delayed effective date 
under the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B) and 
(d)(3), respectively.
    In addition, based on the definition of a ``civil monetary 
penalty'' in the 1990 Inflation Adjustment Act, agencies are to make 
adjustments only to the civil penalties that (i) are for a specific 
monetary amount as provided by Federal law or have a maximum amount 
provided for by Federal law; (ii) are assessed or enforced by an 
agency; and (iii) are enforced or assessed in an

[[Page 13726]]

administrative proceeding or a civil action in the Federal courts. 
Therefore, penalties that are stated as a percentage of an 
indeterminate amount or as a function of a violation (penalties that 
encompass actual damages incurred) are not to be adjusted.
    SBA published in the Federal Register an interim final rule with 
its initial adjustments to the civil monetary penalties, including an 
initial ``catch-up'' adjustment, on May 19, 2016 (81 FR 31489), with an 
effective date of August 1, 2016. SBA published its first annual 
adjustments to the monetary penalties on February 9, 2017 (82 FR 9967), 
with an immediate effective date. SBA published its subsequent annual 
adjustments for 2018 on February 21, 2018 (83 FR 7361), and for 2019 on 
April 1, 2019 (84 FR 12059), both with immediate effective dates. This 
rule will establish the adjusted penalty amounts for 2020 with 
immediate effective date upon publication.
    On December 16, 2019, the Office of Management and Budget published 
its annual guidance memorandum for 2020 civil monetary penalties 
inflation adjustments (M-20-05, Implementation of Penalty Inflation 
Adjustments for 2020, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015). The guidance memorandum 
provides the formula for calculating the annual adjustments based on 
the Consumer Price Index for all Urban Consumers (CPI-U) for the month 
of October preceding the adjustment, and specifically on the change 
between the October CPI-U preceding the date of adjustment and the 
prior year's CPI-U. Based on this methodology, the 2020 civil monetary 
penalty inflation adjustment is October 2019 CPI-U (257.346)/October 
2018 CPI-U (252.885) = 1.01764. The annual adjustments identified in 
this rule were obtained by applying this multiplier of 1.01764 to the 
most recently adjusted penalty amounts that were published in SBA's 
2019 adjustments to civil monetary penalties (84 FR 12059, April 1, 
2019).

II. Civil Money Penalties Adjusted by This Rule

    This rule adjusts civil monetary penalties authorized by the Small 
Business Act, the Small Business Investment Act of 1958 (SBIAct), the 
Program Fraud Civil Remedies Act, and the Byrd Amendment to the Federal 
Regulation of Lobbying Act. These penalties and the implementing 
regulations are discussed below.

1. 13 CFR 107.665--Civil Penalties

    SBA licenses, regulates and provides financial assistance to 
financial entities called small business investment companies (SBICs). 
Pursuant to section 315 of the SBIAct, 15 U.S.C. 687g, SBA may impose a 
penalty on any SBIC for each day that it fails to comply with SBA's 
regulations or directives governing the filing of regular or special 
reports. The penalty for non-compliance is incorporated in Sec.  
107.665 of the SBIC program regulations.
    This rule amends Sec.  107.665 to adjust the current civil penalty 
from $266 to $271 per day of failure to file. The current civil penalty 
of $266 was multiplied by the multiplier of 1.01764 to reach a product 
of $271, rounded to the nearest dollar.

2. 13 CFR 120.465--Civil Penalty for Late Submission of Required 
Reports

    According to the regulations at Sec.  120.465, any SBA Supervised 
Lender, as defined in 13 CFR 120.10, that violates a regulation or 
written directive issued by the SBA Administrator regarding the filing 
of any regular or special report is subject to the civil penalty amount 
stated in Sec.  120.465(b) for each day the company fails to file the 
report, unless the SBA Supervised Lender can show that there is 
reasonable cause for its failure to file. This penalty is authorized by 
section 23(j)(1) of the Small Business Act, 15 U.S.C. 650(j)(1).
    This rule amends Sec.  120.465(b) to adjust the current civil 
penalty from $6,623 to $6,740 per day of failure to file. The current 
civil penalty of $6,623 was multiplied by the multiplier of 1.01764 to 
reach a product of $6,740, rounded to the nearest dollar.

3. 13 CFR 142.1--Overview of Regulations

    SBA has promulgated regulations at 13 CFR part 142 to implement the 
civil penalties authorized by the Program Fraud Civil Remedies Act of 
1986 (PFCRA), 31 U.S.C. 3801-3812. Under the current regulation at 13 
CFR 142.1(b), a person who submits, or causes to be submitted, a false 
claim or a false statement to SBA is subject to a civil penalty of not 
more than $11,463, for each statement or claim. The adjusted civil 
penalty amount was calculated by multiplying the current civil penalty 
of $11,463 by the multiplier of 1.01764 to reach a product of $11,665, 
rounded to the nearest dollar.

4. 13 CFR 146.400--Penalties

    SBA's regulations at 13 CFR part 146 govern lobbying activities by 
recipients of federal financial assistance. These regulations implement 
the authority in 31 U.S.C. 1352, which was established in 1989, and 
impose penalties on any recipient that fails to comply with certain 
requirements in the part. Specifically, under Sec.  146.400(a) and (b), 
penalties may be imposed on those who make prohibited expenditures or 
fail to file the required disclosure forms or to amend such forms, if 
necessary.
    This rule amends Sec.  146.400(a) and (b) to adjust the current 
civil penalty amounts to ``not less than $20,489 and not more than 
$204,892.'' The current civil penalty amounts of $20,134 and $201,340 
were multiplied by the multiplier of 1.01764 to reach a product of 
$20,489 and $204,892, respectively, rounded to the nearest dollar.
    This rule also amends Sec.  146.400(e) to adjust the civil penalty 
that may be imposed for a first-time violation of Sec.  146.400(a) and 
(b) to $20,489 and to adjust the civil penalty that may be imposed for 
second and subsequent offenses to ``not less than $20,489 and not more 
than $204,892.'' The current civil penalty amounts of $20,134 and 
$201,340 were multiplied by the multiplier of 1.01764 to reach a 
product of $20,489 and $204,892 respectively, rounded to the nearest 
dollar.

III. Justification for Final Rule

    The Act provides that agencies shall annually adjust civil monetary 
penalties for inflation notwithstanding Section 553 of the APA. 
Additionally, the Act provides a non-discretionary cost-of-living 
formula for annual adjustment of the civil monetary penalties. For 
these reasons, the requirements in sections 553(b), (c), and (d) of the 
APA, relating to notice and comment and requiring that a rule be 
effective 30 days after publication in the Federal Register, are 
inapplicable.

IV. Justification for Immediate Effective Date

    Section 553(d) requires agencies to publish their rules at least 30 
days before their effective dates, except if the agency finds for good 
cause that the delay is impracticable, unnecessary, or contrary to the 
public interest. By expressly exempting this rule from section 553, the 
Act has provided SBA with the good cause justification for this rule to 
become effective on the date it is published in the Federal Register.

[[Page 13727]]

Compliance With Executive Orders 12866, 12988, 13132, 13771, and the 
Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory 
Flexibility Act (5 U.S.C. 601-612).

Executive Order 12866

    The Office of Management and Budget has determined that this final 
rule is not a significant regulatory action under Executive Order 
12866. This is also not a major rule under the Congressional Review 
Act, 5 U.S.C. 800.

Executive Order 12988

    This action meets applicable standards set forth in Sections 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. The action does not 
have retroactive or preemptive effect.

Executive Order 13132

    For the purpose of Executive Order 13132, SBA has determined that 
the rule will not have substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, this final rule has no federalism implications 
warranting preparation of a federalism assessment.

Executive Order 13771

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

Paperwork Reduction Act

    SBA has determined that this rule does not impose additional 
reporting or recordkeeping requirements.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA'') requires agencies to 
consider the effect of their regulatory actions on small entities, 
including small non-profit businesses, and small local governments. 
Pursuant to the RFA, when an agency issues a rule, the agency must 
prepare an analysis that describes whether the impact of the rule will 
have a significant economic impact on a substantial number of such 
small entities. However, the RFA requires such analysis only where 
notice and comment rulemaking are required. As stated above, SBA has 
express statutory authority to issue this rule without regard to the 
notice and comment requirement of the APA. Since notice and comment is 
not required before this rule is issued, SBA is not required to prepare 
a regulatory analysis.

List of Subjects

13 CFR Part 107

    Investment companies, Loan programs-business, Reporting and 
recordkeeping requirements, Small businesses.

13 CFR Part 120

    Loan programs-business, Reporting and recordkeeping requirements, 
Small businesses.

13 CFR Part 142

    Administrative practice and procedure, Claims, Fraud, Penalties.

13 CFR Part 146

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

    For the reasons set forth in the preamble, SBA amends 13 CFR parts 
107, 120, 142, and 146 as follows:

PART 107--SMALL BUSINESS INVESTMENT COMPANIES

0
1. The authority citation for part 107 continues to read as follows:

     Authority: 15 U.S.C. 681, 683, 687(c), 687b, 687d, 687g, 687m.


Sec.  107.665  [Amended]

0
2. In Sec.  107.665, remove ``$266'' and add in its place ``$271''.

PART 120--BUSINESS LOANS

0
3. The authority citation for part 120 continues to read as follows:

    Authority:  15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and 
note, 636(a), (h) and (m), 650, 687(f), 696(3), and 697(a) and (e); 
Pub. L. 111-5, 123 Stat. 115, Pub. L. 111-240, 124 Stat. 2504; Pub. 
L. 114-38, 129 Stat.437.


Sec.  120.465  [Amended]

0
4. In Sec.  120.465, amend paragraph (b) by removing ``$6,623'' and 
adding in its place ``$6,740''.

PART 142--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
5. The authority citation for part 142 continues to read as follows:

    Authority:  15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2).


Sec.  142.1  [Amended]

0
6. In Sec.  142.1, amend paragraph (b) by removing ``$11,463'' and 
adding in its place ``$11,665''.

PART 146--NEW RESTRICTIONS ON LOBBYING

0
7. The authority citation for part 146 continues to read as follows:

    Authority:  Section 319, Pub. L. 101-121 (31 U.S.C. 1352); 15 
U.S.C. 634(b)(6).


Sec.  146.400  [Amended]

0
8. Amend Sec.  146.400 by removing ``$20,134'' wherever it appears and 
adding in its place ``$20,489'' and by removing ``$201,340'' wherever 
it appears and adding in its place ``$204,892''.

    Dated: February 24, 2020.
Jovita Carranza,
Administrator.
[FR Doc. 2020-04278 Filed 3-9-20; 8:45 am]
 BILLING CODE 8026-03-P

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