Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment, 42299-42300 [2020-13461]

Download as PDF 42299 Rules and Regulations Federal Register Vol. 85, No. 135 Tuesday, July 14, 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 PERSONNEL MANAGEMENT 5 CFR Part 185 RIN 3206–AN39 Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment Office of Personnel Management (OPM). AGENCY: ACTION: Final rule. This rule adjusts the level of civil monetary penalties contained in U.S. Office of Personnel Management regulations implementing the Program Fraud Civil Remedies Act of 1986. DATES: Effective August 13, 2020. FOR FURTHER INFORMATION CONTACT: Alan Miller, Office of the General Counsel, Office of Personnel Management, 1900 E St. NW, Washington, DC 20415, Matthew.Donohue@opm.gov, (202) 606– 1700. SUPPLEMENTARY INFORMATION: SUMMARY: Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114–74) (‘‘the Act’’). The Act required agencies to: (1) Adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking, and (2) make subsequent annual adjustments for inflation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties. OPM has updated the agency’s monetary penalties annually since the passage of the 2015 Act. This rule takes into account adjustments for the year 2020 based on inflation for that year. These calculations were made based on guidance contained in Office of Management and Budget Memorandum M–20–05: Current penalty CFR citation Description of the penalty 5 CFR 185.103(a) .............. 5 CFR 185.103(f)(2) ........... Civil Penalty for False Claims ................................................................................ Civil Penalty for False Statements ......................................................................... This final rule is being issued without prior public notice or opportunity for public comments. The 2015 Act’s amendments to the Inflation Adjustment Act required the agency to adjust penalties initially through an interim final rulemaking, which did not require the agency to complete a notice and comment process prior to promulgating the interim final rule. The amendments also explicitly required the agency to make subsequent annual adjustments notwithstanding 5 U.S.C. 553 (the section of the Administrative Procedure Act that normally requires agencies to engage in notice and comment). The formula used for adjusting the amount of civil penalties is given by statute, with no discretion provided to OPM regarding the computation of the adjustments. OPM is charged only with performing ministerial computations to determine the amount of adjustment to the civil penalties due to increases in the Consumer Price Index for all Urban Consumers (CPI–U). Calculation of Adjustment The Office of Management and Budget (OMB) issues guidance annually on calculating adjustments. Under this guidance, OPM has identified applicable civil monetary penalties and calculated the annual adjustment. A VerDate Sep<11>2014 16:18 Jul 13, 2020 Jkt 250001 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 catchup adjustment is based on the percent change between the Consumer Price Index for all Urban Consumers (CPI–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. Office of Management and Budget Memorandum M–20–05 stated that the cost of living multiplier for calculating adjustments in 2020 was 1.01764. This multiplier is to be applied to the current level of civil monetary penalties for agencies. When OPM’s current penalties of $11,463 are multiplied by 1.01764, the resulting penalty amount is $11,665. Regulatory Impact Analysis: Executive Order 12866, as Supplemented by Executive Order 13563 OPM, with the concurrence of the Office of Management and Budget PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 $11,463 11,463 2020 inflation adjustment $11,665 11,665 (OMB), has determined that this is not a significant regulatory action under Executive Order 12866, as supplemented by Executive Order 13563. Therefore, no regulatory impact analysis is required. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. See 5 U.S.C. 603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil penalties annually. No discretion is allowed. Thus, the RFA does not apply to this final rule. Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)) This rule is not a major rule under 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, E:\FR\FM\14JYR1.SGM 14JYR1 42300 Federal Register / Vol. 85, No. 135 / Tuesday, July 14, 2020 / Rules and Regulations 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 United States-based enterprises to compete with foreignbased enterprises. Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532) This rule does not involve a Federal mandate that may result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more and that such rulemaking will not significantly or uniquely affect small governments. E.O. 12630, Takings This rule does not have takings implications. For the reasons set forth in the preamble, amend part 185 of title 5 of the Code of Federal Regulations as follows: PART 185—PROGRAM FRAUD CIVIL REMEDIES: CIVIL MONETARY PENALTY INFLATION ADJUSTMENT 1. The authority citation for part 185 continues to read: ■ Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801–3812. § 185.103 [Amended] 2. Amend § 185.103 by: a. In paragraph (a), revising ‘‘$11,463’’ to read as ‘‘$11,665’’. ■ b. In paragraph (f)(2), revising ‘‘$11,463’’ to read as ‘‘$11,665’’. ■ ■ BILLING CODE 6325–48–P This rule does not have federalism implications. The rule does 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. E.O. 12988, Civil Justice Reform E.O. 13175, Consultation With Indian Tribes In accordance with Executive Order 13175, OPM has evaluated this rule and determined that it has no tribal implications. Paperwork Reduction Act This document does not contain proposed information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104– 13. List of Subjects in 5 CFR Part 185 Program fraud civil remedies, Claims, Penalties, Basis for civil penalties and assessments. Jkt 250001 DEPARTMENT OF AGRICULTURE Food and Nutrition Service 7 CFR Part 253 [FNS–2019–0048] RIN 0584–AE78 This rule complies with the requirements of E.O. 12988. Specifically, this rule: (a) Does not unduly burden the judicial system. (b) 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 (c) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. 16:18 Jul 13, 2020 FOR FURTHER INFORMATION CONTACT: [FR Doc. 2020–13461 Filed 7–13–20; 8:45 am] E.O. 13132, Federalism VerDate Sep<11>2014 Office of Personnel Management. Alexys Stanley, Regulatory Affairs Analyst. Food Distribution Program on Indian Reservations: Two-Year Administrative Funding Availability and Substantial Burden Waiver Signatory Requirement Food and Nutrition Service (FNS), USDA. ACTION: Final rule. AGENCY: Through this rulemaking, the U.S. Department of Agriculture’s (the Department or USDA) Food and Nutrition Service (FNS) is codifying a revised statutory requirement included in the Agriculture Improvement Act of 2018. The 2018 Farm Bill at section 4003 requires FDPIR administrative funds to remain available for obligation at the Indian Tribal Organization (ITO) and State agency level for a period of two Federal fiscal years. This provision was self-executing and went into effect upon enactment of the 2018 Farm Bill in Federal fiscal year (FY) 2019. This final rulemaking will also amend the Department’s previous implementation of the 2018 Farm Bill provision on the administrative match waiver requirement based on substantial burden. SUMMARY: DATES: This rule is effective July 14, 2020. PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 Barbara Lopez, Program Analyst, Food Distribution Division, Food and Nutrition Service, U.S. Department of Agriculture, 1320 Braddock Place, Alexandria, Virginia 22314 or email Barbara.Lopez@usda.gov. SUPPLEMENTARY INFORMATION: I. Discussion of Final Rule II. Two-Year Administrative Funding Availability A. Background B. Implementation Memorandum C. Regulatory Changes to Two-Year Availability of Administrative Funding III. Revision of State Agency/ITO Administrative Match Waiver Requirements A. Background B. Comment Analysis and Regulatory Change IV. Procedural Matters I. Discussion of Final Rule In the following discussion and regulatory text, the term ‘‘State agency,’’ as defined at 7 CFR 253.2, is used to include ITOs authorized to administer FDPIR and the Food Distribution Program for Indian Households in Oklahoma (FDPIHO) in accordance with 7 CFR parts 253 and 254. The term ‘‘FDPIR’’ is used in this rulemaking to refer collectively to FDPIR and FDPIHO. On December 20, 2018, the 2018 Farm Bill was signed into law. Section 4003 of the 2018 Farm Bill included FDPIRspecific provisions and modified Section 4(b) of the Food and Nutrition Act (FNA) (7 U.S.C. 2013(b)). This rule codifies the statutory requirement included in Section 4003(a)(3), which modifies Section 4(b)(7) of the FNA (7 U.S.C. 2013(b)(7)) to allow FDPIR administrative funds to remain available for obligation by the State agency for a period of two Federal fiscal years. Previously, funds made available to State agencies for the administration of FDPIR remained available for obligation for only one Federal fiscal year. This rule revises Federal regulation at 7 CFR 253.11(i) to conform to Section 4003(a)(3) of the 2018 Farm Bill. This provision is non-discretionary; accordingly, the Department is issuing this rule as a final rule and is not taking comments. Section 4003 of the 2018 Farm Bill also modified Section 4(b)(4) of the FNA (7 U.S.C. 2013(b)(4)) to allow State agencies/ITOs to qualify for an administrative funding match waiver if their required match share would be a substantial burden. This provision was added to Federal regulations through a previous final rule with request for comments, Food Distribution Program on Indian Reservations: Revisions to the Administrative Match Requirement (84 E:\FR\FM\14JYR1.SGM 14JYR1

Agencies

Office of Personnel Management

[Federal Register Volume 85, Number 135 (Tuesday, July 14, 2020)]
[Rules and Regulations]
[Pages 42299-42300]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13461]



========================================================================
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. 135 / Tuesday, July 14, 2020 / Rules 
and Regulations

[[Page 42299]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 185

RIN 3206-AN39


Program Fraud Civil Remedies: Civil Monetary Penalty Inflation 
Adjustment

AGENCY: Office of Personnel Management (OPM).

ACTION: Final rule.

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

SUMMARY: This rule adjusts the level of civil monetary penalties 
contained in U.S. Office of Personnel Management regulations 
implementing the Program Fraud Civil Remedies Act of 1986.

DATES: Effective August 13, 2020.

FOR FURTHER INFORMATION CONTACT: Alan Miller, Office of the General 
Counsel, Office of Personnel Management, 1900 E St. NW, Washington, DC 
20415, [email protected], (202) 606-1700.

SUPPLEMENTARY INFORMATION:

Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Pub. L. 114-74) (``the Act''). The Act required agencies to: (1) 
Adjust the level of civil monetary penalties with an initial ``catch-
up'' adjustment through an interim final rulemaking, and (2) make 
subsequent annual adjustments for inflation. The purpose of these 
adjustments is to maintain the deterrent effect of civil penalties. OPM 
has updated the agency's monetary penalties annually since the passage 
of the 2015 Act.
    This rule takes into account adjustments for the year 2020 based on 
inflation for that year. These calculations were made based on guidance 
contained in Office of Management and Budget Memorandum M-20-05:

----------------------------------------------------------------------------------------------------------------
                                                                                      Current     2020 inflation
                  CFR citation                      Description of the penalty        penalty        adjustment
----------------------------------------------------------------------------------------------------------------
5 CFR 185.103(a)................................  Civil Penalty for False Claims         $11,463         $11,665
5 CFR 185.103(f)(2).............................  Civil Penalty for False                 11,463          11,665
                                                   Statements.
----------------------------------------------------------------------------------------------------------------

    This final rule is being issued without prior public notice or 
opportunity for public comments. The 2015 Act's amendments to the 
Inflation Adjustment Act required the agency to adjust penalties 
initially through an interim final rulemaking, which did not require 
the agency to complete a notice and comment process prior to 
promulgating the interim final rule. The amendments also explicitly 
required the agency to make subsequent annual adjustments 
notwithstanding 5 U.S.C. 553 (the section of the Administrative 
Procedure Act that normally requires agencies to engage in notice and 
comment). The formula used for adjusting the amount of civil penalties 
is given by statute, with no discretion provided to OPM regarding the 
computation of the adjustments. OPM is charged only with performing 
ministerial computations to determine the amount of adjustment to the 
civil penalties due to increases in the Consumer Price Index for all 
Urban Consumers (CPI-U).

Calculation of Adjustment

    The Office of Management and Budget (OMB) issues guidance annually 
on calculating adjustments. Under this guidance, OPM has identified 
applicable civil monetary penalties and calculated the annual 
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 (CPI-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.
    Office of Management and Budget Memorandum M-20-05 stated that the 
cost of living multiplier for calculating adjustments in 2020 was 
1.01764. This multiplier is to be applied to the current level of civil 
monetary penalties for agencies. When OPM's current penalties of 
$11,463 are multiplied by 1.01764, the resulting penalty amount is 
$11,665.

Regulatory Impact Analysis: Executive Order 12866, as Supplemented by 
Executive Order 13563

    OPM, with the concurrence of the Office of Management and Budget 
(OMB), has determined that this is not a significant regulatory action 
under Executive Order 12866, as supplemented by Executive Order 13563. 
Therefore, no regulatory impact analysis is required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 requires agencies to adjust 
civil penalties annually. No discretion is allowed. Thus, the RFA does 
not apply to this final rule.

Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2))

    This rule is not a major rule under 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,

[[Page 42300]]

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 
United States-based enterprises to compete with foreign-based 
enterprises.

Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532)

    This rule does not involve a Federal mandate that may result in the 
expenditure by State, local and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more and that such 
rulemaking will not significantly or uniquely affect small governments.

E.O. 12630, Takings

    This rule does not have takings implications.

E.O. 13132, Federalism

    This rule does not have federalism implications. The rule does 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.

E.O. 12988, Civil Justice Reform

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Does not unduly burden the judicial system.
    (b) 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
    (c) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

E.O. 13175, Consultation With Indian Tribes

    In accordance with Executive Order 13175, OPM has evaluated this 
rule and determined that it has no tribal implications.

Paperwork Reduction Act

    This document does not contain proposed information collection 
requirements subject to the Paperwork Reduction Act of 1995, Public Law 
104-13.

List of Subjects in 5 CFR Part 185

    Program fraud civil remedies, Claims, Penalties, Basis for civil 
penalties and assessments.

Office of Personnel Management.
Alexys Stanley,
Regulatory Affairs Analyst.

    For the reasons set forth in the preamble, amend part 185 of title 
5 of the Code of Federal Regulations as follows:

PART 185--PROGRAM FRAUD CIVIL REMEDIES: CIVIL MONETARY PENALTY 
INFLATION ADJUSTMENT

0
1. The authority citation for part 185 continues to read:

    Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812.


Sec.  185.103   [Amended]

0
2. Amend Sec.  185.103 by:
0
a. In paragraph (a), revising ``$11,463'' to read as ``$11,665''.
0
b. In paragraph (f)(2), revising ``$11,463'' to read as ``$11,665''.

[FR Doc. 2020-13461 Filed 7-13-20; 8:45 am]
BILLING CODE 6325-48-P

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