Department of State 2021 Civil Monetary Penalties Inflationary Adjustment, 7804-7807 [2021-00668]
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7804
Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Rules and Regulations
PART 143—COLLECTION OF CLAIMS
OWED THE UNITED STATES ARISING
FROM ACTIVITIES UNDER THE
COMMISSION’S JURISDICTION
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a,
13a–1(d), 13(a), 13b; 31 U.S.C. 3701–3720E;
28 U.S.C. 2461 note.
■
2. Revise § 143.8(b) to read as follows:
§ 143.8 Inflation-adjusted civil monetary
penalties.
1. The authority citation for part 143
continues to read as follows:
■
*
*
*
*
*
(b) 2021 Inflation adjustment. The
maximum amount of each civil
monetary penalty in the following
charts applies to penalties assessed after
January 15, 2021:
(1) For non-manipulation or
attempted manipulation violations:
TABLE 1 TO PARAGRAPH (b)(1)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
10/22/2008
10/23/2008
through
10/22/2012
10/23/2012
through
11/01/2015
11/02/2015
to
present
Civil Monetary Penalty Imposed By The Commission In An Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
$130,000
$130,000
$140,000
$170,129
625,000
675,000
700,000
937,161
140,000
187,432
Civil Monetary Penalty Imposed By A Federal District Court In A Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1The
Any Person .......................................
130,000
140,000
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For manipulation or attempted
manipulation violations:
TABLE 2 TO PARAGRAPH (b)(2)
Date of violation and corresponding penalty
U.S. Code citation
Civil monetary penalty description
10/23/2004
through
05/21/2008
05/22/2008
through
08/14/2011
08/15/2011
through
11/01/2015
11/02/2015
to
present
Civil Monetary Penalty Imposed By The Commission In An Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
$130,000
$1,000,000
$1,025,000
$1,227,202
625,000
1,000,000
1,025,000
1,227,202
1,025,000
1,227,202
Civil Monetary Penalty Imposed By A Federal District Court In A Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1The
Any Person .......................................
1,000,000
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on January 12,
2021, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission,
Commodity Futures Trading Commission.
Note: The following appendix will not
appear in the Code of Federal
Regulations.
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130,000
Appendix to Adjustment of Civil
Monetary Penalties for Inflation—
2021—Commission Voting Summary
and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
ACTION:
[FR Doc. 2021–00897 Filed 2–1–21; 8:45 am]
SUMMARY: This final rule is issued to
adjust the civil monetary penalties
(CMP) for regulatory provisions
maintained and enforced by the
Department of State. The revised CMP
adjusts the amount of civil monetary
penalties assessed by the Department of
State based on the December 2020
guidance from the Office of
Management and Budget. The new
amounts will apply only to those
penalties assessed on or after the
effective date of this rule, regardless of
the date on which the underlying facts
or violations occurred.
BILLING CODE 6351–01–P
DEPARTMENT OF STATE
22 CFR Parts 35, 103, 127, and 138
[Public Notice 11298]
RIN 1400–AF16
On this matter, Chairman Tarbert and
Commissioners Quintenz, Behnam, Stump,
Department of State 2021 Civil
Monetary Penalties Inflationary
Adjustment
AGENCY:
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Final rule.
02FER1
Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Rules and Regulations
DATES:
This final rule is effective on
February 2, 2021.
Overview of the Areas Affected by This
Rule
FOR FURTHER INFORMATION CONTACT:
Within the Department of State (title
22, Code of Federal Regulations), this
rule affects four areas:
(1) Part 35, which implements the
Program Fraud Civil Remedies Act of
1986 (PFCRA), codified at 31 U.S.C.
3801–3812;
(2) Part 103, which implements the
Chemical Weapons Convention
Implementation Act of 1998 (CWC Act);
(3) Part 127, which implements the
penalty provisions of sections 38(e),
39A(c), and 40(k) of the Arms Export
Control Act (AECA) (22 U.S.C. 2778(e),
2779a(c), and 2780(k)); and
(4) Part 138, which implements
Section 319 of Public Law 101–121,
codified at 31 U.S.C. 1352, prohibits
recipients of Federal contracts, grants,
and loans from using appropriated
funds for lobbying the executive or
legislative branches of the Federal
Government in connection with a
specific contract.
Alice Kottmyer, Attorney-Adviser,
Office of Management, kottmyeram@
state.gov. ATTN: Regulatory Change,
CMP Adjustments, (202) 647–2318.
The
Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law
101–410, as amended by the Debt
Collection Improvement Act of 1996,
Public Law 104–134, required the head
of each agency to adjust its CMPs for
inflation no later than October 23, 1996
and required agencies to make
adjustments at least once every four
years thereafter. The Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, Section 701
of Public Law 114–74 (the 2015 Act)
further amended the 1990 Act by
requiring agencies to adjust CMPs, if
necessary, pursuant to a ‘‘catch-up’’
adjustment methodology prescribed by
the 2015 Act, which mandated that the
catch-up adjustment take effect no later
than August 1, 2016. Additionally, the
2015 Act required agencies to make
annual adjustments to their respective
CMPs in accordance with guidance
issued by the Office of Management and
Budget (OMB).
Based on these statutes, the
Department of State (the Department)
published a final rule in June 2016 1 to
implement the ‘‘catch-up’’ provisions;
and annual updates to its CMPs in
January 2017,2 January 2018,3 March
2019 (delayed due to the Government
shutdown),4 and January 2020.5
On December 29, 2020, OMB notified
agencies that the annual cost-of-living
adjustment multiplier for 2021, based
on the Consumer Price Index, is
1.01182. Additional information may be
found in OMB Memorandum M–21–10,
at: https://www.whitehouse.gov/wpcontent/uploads/2020/12/M-21-10.pdf.
This final rule amends Department
CMPs for fiscal year 2021.
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SUPPLEMENTARY INFORMATION:
Specific Changes to 22 CFR Made by
This Rule
I. Part 35
The PFCRA, enacted in 1986,
authorizes agencies, with approval from
the Department of Justice, to pursue
individuals or firms for false claims.
Applying the 2021 multiplier, the new
maximum liabilities are as follows:
$11,803 up to $348,035.
II. Part 103
The CWC Act provided domestic
implementation of the Convention on
the Prohibition of the Development,
Production, Stockpiling, and Use of
Chemical Weapons and on Their
Destruction. The penalty provisions of
the CWC Act are codified at 22 U.S.C.
6761. Applying the 2021 multiplier, the
new maximum amounts are as follows:
Prohibited acts related to inspections,
$39,693; for Recordkeeping violations,
$7,939.
7805
III. Part 127
The Assistant Secretary of State for
Political-Military Affairs is responsible
for the imposition of CMPs under the
International Traffic in Arms
Regulations (ITAR), which is
administered by the Directorate of
Defense Trade Controls (DDTC).
(1) AECA Section 38(e)
Applying the 2021 multiplier, the
new maximum penalty under 22 U.S.C.
2778 (22 CFR 127.10(a)(1)(i)) is
$1,197,728.
(2) AECA Section 39A(c)
Applying the multiplier, the new
maximum penalty under 22 U.S.C.
2779a (22 CFR 127.10(a)(1)(ii)) is
$870,856, or five times the amount of
the prohibited payment, whichever is
greater.
(3) AECA Section 40(k)
Applying the multiplier, the new
maximum penalty under 22 U.S.C. 2780
(22 CFR 127.10(a)(1)(iii)) is $1,036,566.
IV. Part 138
Section 319 of Public Law 101–121,
codified at 31 U.S.C. 1352, provides
penalties for recipients of Federal
contracts, grants, and loans who use
appropriated funds to lobby the
executive or legislative branches of the
Federal Government in connection with
a specific contract, grant, or loan. Any
person who violates that prohibition is
subject to a civil penalty. The statute
also requires each person who requests
or receives a Federal contract, grant,
cooperative agreement, loan, or a
Federal commitment to insure or
guarantee a loan, to disclose any
lobbying; there is a penalty for failure to
disclose.
Applying the 2021 multiplier, the
maximum penalties for both improper
expenditures and failure to disclose, is:
For first offenders, $20,396; for others,
not less than $20,731, and not more
than $207,314.
Summary
Citation in 22 CFR
2020 Max penalties
§ 35.3 ..................................................................
§ 103.6(a)(1) .......................................................
Prohibited Acts ...................................................
§ 103.6(a)(2) .......................................................
Recordkeeping Violations ...................................
§ 127.10(a)(1)(i) ..................................................
§ 127.10(a)(1)(ii) .................................................
$11,665 up to $343,969 ...................................
$39,229 ............................................................
$11,803 up to $348,035.
$39,693.
$7,846 ..............................................................
$7,939.
$1,183,736 .......................................................
$860,683 ..........................................................
or 5 times the amount of the prohibited payment, whichever is greater.
$1,024,457 .......................................................
$1,197,728.
$870,856.
or 5 times the amount of the prohibited payment, whichever is greater.
$1,036,566.
§ 127.10(a)(1)(iii) ................................................
1 81
2 82
FR 36771 (Jun. 8, 2016).
FR 3168 (Jan. 11, 2017).
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4 84
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FR 234 (Jan. 3, 2018).
FR 9957 (Mar. 19, 2019).
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FR 2020 (Jan. 14, 2020).
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Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Rules and Regulations
Citation in 22 CFR
2020 Max penalties
§ 138.400 ............................................................
First Offenders ....................................................
§ 138.400 ............................................................
$20,158 ............................................................
$20,396.
$20,489 up to $204,892 ...................................
$20,731 up to $207,314.
Effective Date of Penalties
Executive Orders 12372 and 13132
22 CFR Part 103
The revised CMP amounts will go into
effect on the date this rule is published.
All violations for which CMPs are
assessed on or after the effective date of
this rule, regardless of whether the
violation occurred before the effective
date, will be assessed at the adjusted
penalty level.
This amendment 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, in
accordance with Executive Order 13132,
it is determined that this amendment
does not have sufficient federalism
implications to require consultations or
warrant the preparation of a federalism
summary impact statement.
Administrative practice and
procedure, Chemicals, Classified
information, Foreign relations, Freedom
of information, International
organization, Investigations, Penalties,
Reporting and recordkeeping
requirements.
Future Adjustments and Reporting
The 2015 Act directed agencies to
undertake an annual review of CMPs
using a formula prescribed by the
statute. Annual adjustments to CMPs are
made in accordance with the guidance
issued by OMB. As in this rulemaking,
the Department of State will publish
notification of annual inflation
adjustments to CMPs in the Federal
Register no later than January 15 of each
year, with the adjusted amount taking
effect immediately upon publication.
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is publishing
this rule using the ‘‘good cause’’
exception to the Administrative
Procedure Act (5 U.S.C. 553(b)), as the
Department has determined that public
comment on this rulemaking would be
impractical, unnecessary, or contrary to
the public interest. This rulemaking is
mandatory and entirely without agency
discretion; it implements Public Law
114–74. See 5 U.S.C. 553(d)(3).
Regulatory Flexibility Act
Because this rulemaking is exempt
from 5 U.S.C. 553, a Regulatory
Flexibility Analysis is not required.
This rule does not involve a mandate
that will result in the expenditure by
State, local, and Tribal governments, in
the aggregate, or by the private sector, of
$100 million or more in any year and it
will not significantly or uniquely affect
small governments. Therefore, no
actions were deemed necessary under
the provisions of the Unfunded
Mandates Reform Act of 1995.
Small Business Regulatory Enforcement
Fairness Act of 1996
This rule is not a major rule within
the meaning of the Small Business
Regulatory Enforcement Fairness Act of
1996.
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Executive Orders 12866 and 13563
The Department believes that benefits
of the rulemaking outweigh any costs,
and there are no feasible alternatives to
this rulemaking. Pursuant to M–20–05,
OIRA has determined that agency
regulations that (1) exclusively
implement the annual adjustment, (2)
are consistent with this guidance, and
(3) have an annual impact of less than
$100 million, are generally not
significant regulatory actions under E.O.
12866. Therefore, agencies are generally
not required to submit regulations
satisfying those criteria to OIRA for
review. This regulation satisfies all of
those criteria.
Executive Order 12988
The Department of State has reviewed
the proposed amendment in light of
Executive Order 12988 to eliminate
ambiguity, minimize litigation, establish
clear legal standards, and reduce
burden.
The Department of State has
determined that this rulemaking will
not have tribal implications, will not
impose substantial direct compliance
costs on Indian Tribal governments, and
will not preempt Tribal law.
Accordingly, Executive Order 13175
does not apply to this rulemaking.
This rulemaking does not impose or
revise any information collections
subject to 44 U.S.C. Chapter 35.
List of Subjects
22 CFR Part 35
Administrative practice and
procedure, Claims, Fraud, Penalties.
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Arms and munitions, Exports.
22 CFR Part 138
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
For the reasons set forth above, 22
CFR parts 35, 103, 127, and 138 are
amended as follows:
PART 35—PROGRAM FRAUD CIVIL
REMEDIES
1. The authority citation for part 35
continues to read as follows:
■
Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801
et seq.; Pub. L. 114–74, 129 Stat. 584.
§ 35.3
[Amended]
2. In § 35.3:
a. Remove ‘‘$11,665’’ and add in its
place ‘‘$11,803’’, wherever it occurs.
■ b. In paragraph (f), remove ‘‘$343,969’’
and add in its place ‘‘$348,035’’.
■
PART 103—REGULATIONS FOR
IMPLEMENTATION OF THE CHEMICAL
WEAPONS CONVENTION AND THE
CHEMICAL WEAPONS CONVENTION
IMPLEMENTATION ACT OF 1998 ON
THE TAKING OF SAMPLES AND ON
ENFORCEMENT OF REQUIREMENTS
CONCERNING RECORDKEEPING AND
INSPECTIONS
3. The authority citation for part 103
continues to read as follows:
■
Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701
et seq.; Pub. L. 114–74, 129 Stat. 584.
Paperwork Reduction Act
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22 CFR Part 127
■
Executive Order 13175
Unfunded Mandates Reform Act of 1995
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New (FY 21) max penalties
§ 103.6
[Amended]
4. In § 103.6:
■ a. In paragraph (a)(1), remove
‘‘$39,229’’ and add in its place
‘‘$39,693’’; and
■ b. In paragraph (a)(2), remove
‘‘$7,846’’ and add in its place ‘‘$7,939’’.
■
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Federal Register / Vol. 86, No. 20 / Tuesday, February 2, 2021 / Rules and Regulations
PART 127—VIOLATIONS AND
PENALTIES
5. The authority citation for part 127
continues to read as follows:
■
Authority: Sections 2, 38, and 42, Pub. L.
90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22
U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78
FR 16129; Pub. L. 114–74, 129 Stat. 584.
§ 127.10
[Amended]
6. In § 127.10:
a. In paragraph (a)(1)(i), remove
‘‘$1,183,736’’ and add in its place
‘‘$1,197,728’’;
■ b. In paragraph (a)(1)(ii), remove
‘‘$860,683’’ and add in its place
‘‘$870,856’’; and
■ c. In paragraph (a)(1)(iii), remove
‘‘$1,024,457’’ and add in its place
‘‘$1,036,566’’.
■
■
PART 138—RESTRICTIONS ON
LOBBYING
7. The authority citation for part 138
continues to read as follows:
■
Authority: 22 U.S.C. 2651a; 31 U.S.C.
1352; Pub. L. 114–74, 129 Stat. 584.
§ 138.400
[Amended]
8. In § 138.400:
a. Remove ‘‘$20,489’’ and ‘‘$204,892’’
and add in their place ‘‘$20,731’’ and
‘‘$207,314’’, respectively, wherever they
occur.
■ b. In paragraph (e), remove ‘‘$20,158’’
and add in its place ‘‘$20,396’’.
■
■
Zachary A. Parker,
Director, Office of Directives Management.
Editorial note: This document was
received for publication by the Office of the
Federal Register on January 11, 2021.
[FR Doc. 2021–00668 Filed 2–1–21; 8:45 am]
BILLING CODE 4710–10–P
DEPARTMENT OF LABOR
Office of the Secretary of Labor
29 CFR Part 22
Occupational Safety and Health
Administration
29 CFR Part 1986
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RIN 1290–AA28
Rules of Practice and Procedure
Concerning Filing and Service and
Amended Rules Concerning Filing and
Service; Correction
Employment and Training
Administration, Office of Workers’
Compensation Programs, Office of the
AGENCY:
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Secretary, Office of Labor-Management
Standards, Wage and Hour Division,
Occupational Safety and Health
Administration, Office of Federal
Contract Compliance Programs.
ACTION: Direct final rule; correction.
SUMMARY: The Department of Labor
(Department or DOL) is correcting a
direct final rule that appeared in the
Federal Register on January 11, 2021,
‘‘Rules of Practice and Procedure
Concerning Filing and Service and
Amended Rules Concerning Filing and
Service.’’ The companion proposed rule
to the final rule was published in the
same issue of the Federal Register. The
final rule required electronic filing (efiling) and made acceptance of
electronic service (e-service) automatic
for attorneys and non-attorney
representatives representing parties in
proceedings before the Administrative
Review Board, unless the Board
authorized non-electronic filing and
service for good cause. Among other
changes, the final rule was intended to
revise several sections of the Code of
Federal Regulations. However, the final
rule as published inadvertently omitted
amendatory instructions to revise two
section headings, despite providing
revised language for those headings.
This document provides the omitted
amendatory instructions to ensure that
these two section headings are revised
as written in the final rule.
DATES: This correction is effective on
February 25, 2021, unless the
Department receives a significant
adverse comment to the underlying
direct final rule or its companion
proposed rule by February 10, 2021 that
explains why the rule is inappropriate.
FOR FURTHER INFORMATION CONTACT: Mr.
Thomas Shepherd, Clerk of the
Appellate Boards, at 202–693–6319 or
Shepherd.Thomas@dol.gov.
SUPPLEMENTARY INFORMATION: DOL is
making the following corrections to the
final rule, as published in the Federal
Register on Monday, January 11, 2021
(86 FR 1772).
DOL is adding amendatory
instructions to change the section
headings of two sections of the Code of
Federal Regulations.
At 86 FR 1781, third column, 29 CFR
part 22, amendatory instruction 43
revised § 22.39, paragraphs (a), (b)(3),
(c), (f), and (h) through (l). The text of
§ 22.39 as written in the final rule also
included a revised section heading;
however, amendatory instruction 43 did
not specify that the section heading
should be revised in addition to the text
of the above-listed paragraphs. In this
action, amendatory instruction 43 is
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7807
corrected to clarify that the section
heading of § 22.39 should be revised as
well. Amendatory instruction 43 is
corrected to read: ‘‘43. In § 22.39, revise
the section heading and paragraphs (a),
(b)(3), (c), (f), and (h) through (l) to read
as follows:’’. The section heading is
being revised to read ‘‘Appeal to ARB’’
instead of ‘‘Appeal to authority head.’’
This change is in keeping with the
Department’s clearly expressed intent in
the preamble of the final rule to revise
references in the regulations to an
‘‘authority head’’ to references to the
‘‘ARB’’ in order to clarify the
responsibilities of the Administrative
Review Board.
At 86 FR 1793, third column, 29 CFR
part 1986, amendatory instruction 133
revised § 1986.110, paragraph (c). The
text of § 1986.110 as written in the final
rule also included a revised section
heading; however, amendatory
instruction 133 did not specify that the
section heading should be revised in
addition to the text of paragraph (c). In
this action, amendatory instruction 133
is corrected to clarify that the section
heading of § 1986.110 should be revised,
as well. Amendatory instruction 133 is
corrected to read: ‘‘133. In § 1986.110,
revise the section heading and
paragraph (c) to read as follows:’’. The
section heading is being revised to read
‘‘Decision and orders of the
Administrative Review Board’’ instead
of ‘‘Decisions and order of the
Administrative Review Board.’’ The
change to § 1986.110 is intended to
make the section heading consistent
with other similar section headings in
the chapter of Title 29 that are titled
‘‘Decision and orders of the
Administrative Review Board.’’
Federal Register Correction
In FR Rule Doc. No. 2020–28055,
published in the issue of January 11,
2021, beginning on page 1772, the
following corrections are made:
PART 22—PROGRAM FRAUD CIVIL
REMEDIES ACT OF 1986
§ 22.39
[Corrected]
1. On page 1781, in the third column,
correct amendatory instruction 43 to
read: ‘‘43. In § 22.39, revise the section
heading and paragraphs (a), (b)(3), (c),
(f), and (h) through (l) to read as
follows:’’.
■
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02FER1
]]>Agencies
[Federal Register Volume 86, Number 20 (Tuesday, February 2, 2021)]
[Rules and Regulations]
[Pages 7804-7807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00668]
=======================================================================
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DEPARTMENT OF STATE
22 CFR Parts 35, 103, 127, and 138
[Public Notice 11298]
RIN 1400-AF16
Department of State 2021 Civil Monetary Penalties Inflationary
Adjustment
AGENCY: Department of State.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule is issued to adjust the civil monetary
penalties (CMP) for regulatory provisions maintained and enforced by
the Department of State. The revised CMP adjusts the amount of civil
monetary penalties assessed by the Department of State based on the
December 2020 guidance from the Office of Management and Budget. The
new amounts will apply only to those penalties assessed on or after the
effective date of this rule, regardless of the date on which the
underlying facts or violations occurred.
[[Page 7805]]
DATES: This final rule is effective on February 2, 2021.
FOR FURTHER INFORMATION CONTACT: Alice Kottmyer, Attorney-Adviser,
Office of Management, [email protected]. ATTN: Regulatory Change,
CMP Adjustments, (202) 647-2318.
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law 101-410, as amended by the Debt
Collection Improvement Act of 1996, Public Law 104-134, required the
head of each agency to adjust its CMPs for inflation no later than
October 23, 1996 and required agencies to make adjustments at least
once every four years thereafter. The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, Section 701 of Public Law 114-
74 (the 2015 Act) further amended the 1990 Act by requiring agencies to
adjust CMPs, if necessary, pursuant to a ``catch-up'' adjustment
methodology prescribed by the 2015 Act, which mandated that the catch-
up adjustment take effect no later than August 1, 2016. Additionally,
the 2015 Act required agencies to make annual adjustments to their
respective CMPs in accordance with guidance issued by the Office of
Management and Budget (OMB).
Based on these statutes, the Department of State (the Department)
published a final rule in June 2016 \1\ to implement the ``catch-up''
provisions; and annual updates to its CMPs in January 2017,\2\ January
2018,\3\ March 2019 (delayed due to the Government shutdown),\4\ and
January 2020.\5\
---------------------------------------------------------------------------
\1\ 81 FR 36771 (Jun. 8, 2016).
\2\ 82 FR 3168 (Jan. 11, 2017).
\3\ 83 FR 234 (Jan. 3, 2018).
\4\ 84 FR 9957 (Mar. 19, 2019).
\5\ 85 FR 2020 (Jan. 14, 2020).
---------------------------------------------------------------------------
On December 29, 2020, OMB notified agencies that the annual cost-
of-living adjustment multiplier for 2021, based on the Consumer Price
Index, is 1.01182. Additional information may be found in OMB
Memorandum M-21-10, at: https://www.whitehouse.gov/wp-content/uploads/2020/12/M-21-10.pdf. This final rule amends Department CMPs for fiscal
year 2021.
Overview of the Areas Affected by This Rule
Within the Department of State (title 22, Code of Federal
Regulations), this rule affects four areas:
(1) Part 35, which implements the Program Fraud Civil Remedies Act
of 1986 (PFCRA), codified at 31 U.S.C. 3801-3812;
(2) Part 103, which implements the Chemical Weapons Convention
Implementation Act of 1998 (CWC Act);
(3) Part 127, which implements the penalty provisions of sections
38(e), 39A(c), and 40(k) of the Arms Export Control Act (AECA) (22
U.S.C. 2778(e), 2779a(c), and 2780(k)); and
(4) Part 138, which implements Section 319 of Public Law 101-121,
codified at 31 U.S.C. 1352, prohibits recipients of Federal contracts,
grants, and loans from using appropriated funds for lobbying the
executive or legislative branches of the Federal Government in
connection with a specific contract.
Specific Changes to 22 CFR Made by This Rule
I. Part 35
The PFCRA, enacted in 1986, authorizes agencies, with approval from
the Department of Justice, to pursue individuals or firms for false
claims. Applying the 2021 multiplier, the new maximum liabilities are
as follows: $11,803 up to $348,035.
II. Part 103
The CWC Act provided domestic implementation of the Convention on
the Prohibition of the Development, Production, Stockpiling, and Use of
Chemical Weapons and on Their Destruction. The penalty provisions of
the CWC Act are codified at 22 U.S.C. 6761. Applying the 2021
multiplier, the new maximum amounts are as follows: Prohibited acts
related to inspections, $39,693; for Recordkeeping violations, $7,939.
III. Part 127
The Assistant Secretary of State for Political-Military Affairs is
responsible for the imposition of CMPs under the International Traffic
in Arms Regulations (ITAR), which is administered by the Directorate of
Defense Trade Controls (DDTC).
(1) AECA Section 38(e)
Applying the 2021 multiplier, the new maximum penalty under 22
U.S.C. 2778 (22 CFR 127.10(a)(1)(i)) is $1,197,728.
(2) AECA Section 39A(c)
Applying the multiplier, the new maximum penalty under 22 U.S.C.
2779a (22 CFR 127.10(a)(1)(ii)) is $870,856, or five times the amount
of the prohibited payment, whichever is greater.
(3) AECA Section 40(k)
Applying the multiplier, the new maximum penalty under 22 U.S.C.
2780 (22 CFR 127.10(a)(1)(iii)) is $1,036,566.
IV. Part 138
Section 319 of Public Law 101-121, codified at 31 U.S.C. 1352,
provides penalties for recipients of Federal contracts, grants, and
loans who use appropriated funds to lobby the executive or legislative
branches of the Federal Government in connection with a specific
contract, grant, or loan. Any person who violates that prohibition is
subject to a civil penalty. The statute also requires each person who
requests or receives a Federal contract, grant, cooperative agreement,
loan, or a Federal commitment to insure or guarantee a loan, to
disclose any lobbying; there is a penalty for failure to disclose.
Applying the 2021 multiplier, the maximum penalties for both
improper expenditures and failure to disclose, is: For first offenders,
$20,396; for others, not less than $20,731, and not more than $207,314.
Summary
------------------------------------------------------------------------
New (FY 21) max
Citation in 22 CFR 2020 Max penalties penalties
------------------------------------------------------------------------
Sec. 35.3................. $11,665 up to $11,803 up to
$343,969. $348,035.
Sec. 103.6(a)(1).......... $39,229............. $39,693.
Prohibited Acts.............
Sec. 103.6(a)(2).......... $7,846.............. $7,939.
Recordkeeping Violations....
Sec. 127.10(a)(1)(i)...... $1,183,736.......... $1,197,728.
Sec. 127.10(a)(1)(ii)..... $860,683............ $870,856.
or 5 times the or 5 times the
amount of the amount of the
prohibited payment, prohibited payment,
whichever is whichever is
greater. greater.
Sec. 127.10(a)(1)(iii).... $1,024,457.......... $1,036,566.
[[Page 7806]]
Sec. 138.400.............. $20,158............. $20,396.
First Offenders.............
Sec. 138.400.............. $20,489 up to $20,731 up to
$204,892. $207,314.
------------------------------------------------------------------------
Effective Date of Penalties
The revised CMP amounts will go into effect on the date this rule
is published. All violations for which CMPs are assessed on or after
the effective date of this rule, regardless of whether the violation
occurred before the effective date, will be assessed at the adjusted
penalty level.
Future Adjustments and Reporting
The 2015 Act directed agencies to undertake an annual review of
CMPs using a formula prescribed by the statute. Annual adjustments to
CMPs are made in accordance with the guidance issued by OMB. As in this
rulemaking, the Department of State will publish notification of annual
inflation adjustments to CMPs in the Federal Register no later than
January 15 of each year, with the adjusted amount taking effect
immediately upon publication.
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is publishing this rule using the ``good
cause'' exception to the Administrative Procedure Act (5 U.S.C.
553(b)), as the Department has determined that public comment on this
rulemaking would be impractical, unnecessary, or contrary to the public
interest. This rulemaking is mandatory and entirely without agency
discretion; it implements Public Law 114-74. See 5 U.S.C. 553(d)(3).
Regulatory Flexibility Act
Because this rulemaking is exempt from 5 U.S.C. 553, a Regulatory
Flexibility Analysis is not required.
Unfunded Mandates Reform Act of 1995
This rule does not involve a mandate that will result in the
expenditure by State, local, and Tribal governments, in the aggregate,
or by the private sector, of $100 million or more in any year and it
will not significantly or uniquely affect small governments. Therefore,
no actions were deemed necessary under the provisions of the Unfunded
Mandates Reform Act of 1995.
Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule within the meaning of the Small
Business Regulatory Enforcement Fairness Act of 1996.
Executive Orders 12372 and 13132
This amendment 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, in accordance with Executive
Order 13132, it is determined that this amendment does not have
sufficient federalism implications to require consultations or warrant
the preparation of a federalism summary impact statement.
Executive Orders 12866 and 13563
The Department believes that benefits of the rulemaking outweigh
any costs, and there are no feasible alternatives to this rulemaking.
Pursuant to M-20-05, OIRA has determined that agency regulations that
(1) exclusively implement the annual adjustment, (2) are consistent
with this guidance, and (3) have an annual impact of less than $100
million, are generally not significant regulatory actions under E.O.
12866. Therefore, agencies are generally not required to submit
regulations satisfying those criteria to OIRA for review. This
regulation satisfies all of those criteria.
Executive Order 12988
The Department of State has reviewed the proposed amendment in
light of Executive Order 12988 to eliminate ambiguity, minimize
litigation, establish clear legal standards, and reduce burden.
Executive Order 13175
The Department of State has determined that this rulemaking will
not have tribal implications, will not impose substantial direct
compliance costs on Indian Tribal governments, and will not preempt
Tribal law. Accordingly, Executive Order 13175 does not apply to this
rulemaking.
Paperwork Reduction Act
This rulemaking does not impose or revise any information
collections subject to 44 U.S.C. Chapter 35.
List of Subjects
22 CFR Part 35
Administrative practice and procedure, Claims, Fraud, Penalties.
22 CFR Part 103
Administrative practice and procedure, Chemicals, Classified
information, Foreign relations, Freedom of information, International
organization, Investigations, Penalties, Reporting and recordkeeping
requirements.
22 CFR Part 127
Arms and munitions, Exports.
22 CFR Part 138
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
For the reasons set forth above, 22 CFR parts 35, 103, 127, and 138
are amended as follows:
PART 35--PROGRAM FRAUD CIVIL REMEDIES
0
1. The authority citation for part 35 continues to read as follows:
Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801 et seq.; Pub. L.
114-74, 129 Stat. 584.
Sec. 35.3 [Amended]
0
2. In Sec. 35.3:
0
a. Remove ``$11,665'' and add in its place ``$11,803'', wherever it
occurs.
0
b. In paragraph (f), remove ``$343,969'' and add in its place
``$348,035''.
PART 103--REGULATIONS FOR IMPLEMENTATION OF THE CHEMICAL WEAPONS
CONVENTION AND THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT
OF 1998 ON THE TAKING OF SAMPLES AND ON ENFORCEMENT OF REQUIREMENTS
CONCERNING RECORDKEEPING AND INSPECTIONS
0
3. The authority citation for part 103 continues to read as follows:
Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701 et seq.; Pub. L.
114-74, 129 Stat. 584.
Sec. 103.6 [Amended]
0
4. In Sec. 103.6:
0
a. In paragraph (a)(1), remove ``$39,229'' and add in its place
``$39,693''; and
0
b. In paragraph (a)(2), remove ``$7,846'' and add in its place
``$7,939''.
[[Page 7807]]
PART 127--VIOLATIONS AND PENALTIES
0
5. The authority citation for part 127 continues to read as follows:
Authority: Sections 2, 38, and 42, Pub. L. 90-629, 90 Stat. 744
(22 U.S.C. 2752, 2778, 2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22
U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78 FR 16129; Pub. L. 114-
74, 129 Stat. 584.
Sec. 127.10 [Amended]
0
6. In Sec. 127.10:
0
a. In paragraph (a)(1)(i), remove ``$1,183,736'' and add in its place
``$1,197,728'';
0
b. In paragraph (a)(1)(ii), remove ``$860,683'' and add in its place
``$870,856''; and
0
c. In paragraph (a)(1)(iii), remove ``$1,024,457'' and add in its place
``$1,036,566''.
PART 138--RESTRICTIONS ON LOBBYING
0
7. The authority citation for part 138 continues to read as follows:
Authority: 22 U.S.C. 2651a; 31 U.S.C. 1352; Pub. L. 114-74, 129
Stat. 584.
Sec. 138.400 [Amended]
0
8. In Sec. 138.400:
0
a. Remove ``$20,489'' and ``$204,892'' and add in their place
``$20,731'' and ``$207,314'', respectively, wherever they occur.
0
b. In paragraph (e), remove ``$20,158'' and add in its place
``$20,396''.
Zachary A. Parker,
Director, Office of Directives Management.
Editorial note: This document was received for publication by
the Office of the Federal Register on January 11, 2021.
[FR Doc. 2021-00668 Filed 2-1-21; 8:45 am]
BILLING CODE 4710-10-P
