Program Fraud Civil Remedies Act of 1986, Civil Monetary Penalties Inflation Adjustment, 21948-21949 [2021-08600]

Download as PDF 21948 Federal Register / Vol. 86, No. 78 / Monday, April 26, 2021 / Rules and Regulations TABLE 2 TO PARAGRAPH (b) Parts per million Commodity * * * * * Sugarcane, cane ...................................................................................................................................................... Sugarcane, molasses .............................................................................................................................................. * * * * * * * * [FR Doc. 2021–08598 Filed 4–23–21; 8:45 am] BILLING CODE 6560–50–P GENERAL SERVICES ADMINISTRATION 41 CFR Part 105–70 [FPMR Case 2021–101–1; Docket No. 2021– 0007; Sequence No. 1] RIN 3090–AK43 Program Fraud Civil Remedies Act of 1986, Civil Monetary Penalties Inflation Adjustment Office of General Counsel, General Services Administration. ACTION: Final rule. AGENCY: In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015, this final rule incorporates the penalty inflation adjustments for the civil monetary penalties set forth in the United States Code, as codified in our regulations. DATES: Effective: May 26, 2021. FOR FURTHER INFORMATION CONTACT: Mr. Aaron Pound, Assistant General Counsel, General Law Division (LG), General Services Administration, 1800 F Street NW, Washington, DC 20405. Telephone Number 202–501–1460. SUPPLEMENTARY INFORMATION: SUMMARY: I. The Debt Collection Improvement Act of 1996 To maintain the remedial impact of civil monetary penalties (CMPs) and to promote compliance with the law, the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101– 410) was amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104–134) to require Federal agencies to regularly adjust certain CMPs for inflation and further amended by the Federal Civil Penalties Inflation VerDate Sep<11>2014 16:01 Apr 23, 2021 Jkt 253001 * * Adjustment Act Improvement Act of 2015 (Sec. 701 of Pub. L. 114–74). As amended, the law requires each agency to make an initial inflationary adjustment for all applicable CMPs, and to make further adjustments at least once every year thereafter for these penalty amounts. The Debt Collection Improvement Act of 1996 further stipulates that any resulting increases in a CMP due to the calculated inflation adjustments shall apply only to violations which occur after the date the increase takes effect, i.e., thirty (30) days after date of publication in the Federal Register. Pursuant to the 2015 Act, agencies are required to adjust the level of the CMP with an initial ‘‘catch up’’, and make subsequent annual adjustments for inflation. Catch up adjustments are based on the percent change between the Consumer Price Index for Urban Consumers (CPI–U) for the month of October for the year of the previous adjustment, and the October 2015 CPI–U. Annual inflation adjustments will be based on the percent change between the October CPI–U preceding the date of adjustment and the prior year’s October CPI–U. II. The Program Fraud Civil Remedies Act of 1986 In 1986, sections 6103 and 6104 of the Omnibus Budget Reconciliation Act of 1986 (Pub. L. 99–501) set forth the Program Fraud Civil Remedies Act of 1986 (PFCRA). Specifically, this statute imposes a CMP and an assessment against any person who, with knowledge or reason to know, makes, submits, or presents a false, fictitious, or fraudulent claim or statement to the Government. The General Services Administration’s regulations, published in the Federal Register (61 FR 246, December 20, 1996) and codified at 41 CFR part 105–70, set forth a CMP of up to $10,781 for each false claim or statement made to the agency. Based on the penalty amount inflation factor calculation, derived from originally dividing the June 2015 CPI by the June 1996 CPI and making the CPI-based annual adjustment thereafter, after rounding we are adjusting the maximum PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 Expiration date * 3 90 * * 12/31/2023 12/31/2023 * penalty amount for this CMP to $11,001 per violation. III. Waiver of Proposed Rulemaking In developing this final rule, we are waiving the usual notice of proposed rulemaking and public comment procedures set forth in the Administrative Procedure Act, 5 U.S.C. 553 (APA). The APA provides an exception to the notice and comment procedures when an agency finds there is good cause for dispensing with such procedures on the basis that they are impracticable, unnecessary, or contrary to the public interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with the notice of proposed rulemaking and public comment procedures for this rule. Specifically, this rulemaking comports and is consistent with the statutory authority set forth in the Debt Collection Improvement Act of 1996, with no issues of policy discretion. Accordingly, we believe that opportunity for prior comment is unnecessary and contrary to the public interest, and we are issuing these revised regulations as a final rule that will apply to all future cases under this authority. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a not significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. The Office of Management and Budget (OMB) has reviewed this final rule in E:\FR\FM\26APR1.SGM 26APR1 Federal Register / Vol. 86, No. 78 / Monday, April 26, 2021 / Rules and Regulations accordance with the provisions of E.O. 12866 and has determined that it does not meet the criteria for a significant regulatory action. As indicated above, the provisions contained in this final rulemaking set forth the inflation adjustments in compliance with the Debt Collection Improvement Act of 1996 for specific applicable CMPs. The great majority of individuals, organizations and entities addressed through these regulations do not engage in such prohibited conduct, and as a result, we believe that any aggregate economic impact of these revised regulations will be minimal, affecting only those limited few who may engage in prohibited conduct in violation of the statute. As such, this final rule and the inflation adjustment contained therein should have no effect on Federal or state expenditures. V. Regulatory Flexibility Act The Administrator of General Services certifies that this final rule will not have a significant economic impact on a substantial number of small business entities. While some penalties may have an impact on small business entities, it is the nature of the violation and not the size of the entity that will result in an action by the agency, and the aggregate economic impact of this rulemaking on small business entities should be minimal, affecting only those few who have engaged in prohibited conduct in violation of statutory intent. VI. Paperwork Reduction Act This final rule imposes no new reporting or recordkeeping requirements necessitating clearance by OMB. List of Subject in 41 CFR Part 105–70 Administrative hearing, Claims, Program fraud. Katy Kale, Acting Administrator. Accordingly, 41 CFR part 105–70 is amended as set forth below: PART 105–70—IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986 1. The authority citation for part 105– 70 continues to read as follows: ■ Authority: 40 U.S.C. 121(c); 31 U.S.C. 3809. § 105–70.003 [Amended] 2. Amend § 105–70.003 by— a. Removing from paragraph (a)(1)(iv) the amount ‘‘11,282’’ and adding ‘‘11,400’’ in its place; and ■ ■ VerDate Sep<11>2014 16:01 Apr 23, 2021 Jkt 253001 b. Removing from paragraph (b)(1)(ii) the amount ‘‘11,282’’ and adding ‘‘11,400’’ in its place. ■ [FR Doc. 2021–08600 Filed 4–23–21; 8:45 am] BILLING CODE 6820–81–P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services 42 CFR Part 414 [CMS–1687–RCN] RIN 0938–AT21 Medicare Program; Durable Medical Equipment Fee Schedule Adjustments To Resume the Transitional 50/50 Blended Rates To Provide Relief in Rural Areas and Non-Contiguous Areas; Extension of Timeline for Final Rule Publication Centers for Medicare & Medicaid Services (CMS), Department of Health and Human Services (HHS). ACTION: Continuation of effectiveness and extension of timeline for publication of the final rule. AGENCY: This document announces the continuation of effectiveness of a Medicare interim final rule and the extension of the timeline for publication of the final rule. Section 1871(a)(3)(B) of the Social Security Act (the Act) specifies that a Medicare final rule must be published no later than 3 years after the publication date of the proposed or interim final rule, except under exceptional circumstances. In accordance with sections 1871(a)(3)(B) and 1871(a)(3)(C) of the Act, we are providing a notification of continuation for a Medicare interim final rule, announcing the different timeline on which we intend to publish the final rule, and explaining why we were unable to publish the final rule on the regular, required 3-year timeline. DATES: As of April 23, 2021, the Medicare provisions adopted in the interim final rule published on May 11, 2018 (83 FR 21912) continue in effect and the regular timeline for publication of the final rule is extended for an additional year, until May 11, 2022. FOR FURTHER INFORMATION CONTACT: Alexander Ullman, (410) 786–9671 or DMEPOS@cms.hhs.gov. SUPPLEMENTARY INFORMATION: In the May 11, 2018 Federal Register (83 FR 21912), we published an interim final rule with comment period (IFC) titled ‘‘Medicare Program; Durable Medical SUMMARY: PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 21949 Equipment Fee Schedule Adjustments to Resume the Transitional 50/50 Blended Rates to Provide Relief in Rural Areas and Non-Contiguous Areas’’. The May 2018 IFC made technical amendments to the regulation to reflect the extension of the transition period from June 30, 2016 to December 31, 2016 that was mandated by the 21st Century Cures Act for phasing in fee schedule adjustments for certain durable medical equipment (DME) and enteral nutrition furnished in areas not subject to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program (CBP) (83 FR 21915). In addition, in the May 2018 IFC, CMS—(1) amended 42 CFR 414.210(g) to resume the transition period’s blended fee schedule rates for items furnished in rural areas and noncontiguous areas (Alaska, Hawaii, and United States territories) not subject to the CBP from June 1, 2018 through December 31, 2018 (83 FR 21915); (2) made technical amendments to existing DMEPOS regulations to reflect the exclusion of infusion drugs used with DME from the DMEPOS CBP (83 FR 21919); and (3) stated that the fee schedule amounts for wheelchair accessories and back and seat cushions used in conjunction with group 3 power wheelchairs would continue to be based on the unadjusted fee schedule amounts updated by the covered item update specified in section 1834(a)(14) of the Act (83 FR 21919). We stated that the fee schedule amounts for all other accessories used with different types of base equipment would continue to be calculated in accordance with the adjustment methodology set forth in § 414.210(g)(5) of our regulations (83 FR 21919). Section 1871(a)(3)(B) of the Act requires CMS to publish a Medicare final rule no later than 3 years after the publication of a proposed or interim final rule, except under exceptional circumstances. In such circumstances, section 1871(a)(3)(B) of the Act allows the Secretary to vary the final regulation publication timeline if the Secretary provides public notice of the different timeline on which it intends to publish the final regulation, and that notice includes a brief explanation of the justification for the variation. The notice must be published by no later than the timeline previously established with respect to the final rule publication date. The May 2018 IFC was published on May 11, 2018. Therefore, in accordance with section 1871(a)(3)(B) of the Act, we must finalize the May 2018 IFC by May 11, 2021, except under exceptional E:\FR\FM\26APR1.SGM 26APR1

Agencies

[Federal Register Volume 86, Number 78 (Monday, April 26, 2021)]
[Rules and Regulations]
[Pages 21948-21949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-08600]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 105-70

[FPMR Case 2021-101-1; Docket No. 2021-0007; Sequence No. 1]
RIN 3090-AK43


Program Fraud Civil Remedies Act of 1986, Civil Monetary 
Penalties Inflation Adjustment

AGENCY: Office of General Counsel, General Services Administration.

ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996 and further amended by the Federal Civil Penalties 
Inflation Adjustment Act Improvement Act of 2015, this final rule 
incorporates the penalty inflation adjustments for the civil monetary 
penalties set forth in the United States Code, as codified in our 
regulations.

DATES: Effective: May 26, 2021.

FOR FURTHER INFORMATION CONTACT: Mr. Aaron Pound, Assistant General 
Counsel, General Law Division (LG), General Services Administration, 
1800 F Street NW, Washington, DC 20405. Telephone Number 202-501-1460.

SUPPLEMENTARY INFORMATION: 

I. The Debt Collection Improvement Act of 1996

    To maintain the remedial impact of civil monetary penalties (CMPs) 
and to promote compliance with the law, the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410) was amended by the 
Debt Collection Improvement Act of 1996 (Pub. L. 104-134) to require 
Federal agencies to regularly adjust certain CMPs for inflation and 
further amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvement Act of 2015 (Sec. 701 of Pub. L. 114-74). As amended, the 
law requires each agency to make an initial inflationary adjustment for 
all applicable CMPs, and to make further adjustments at least once 
every year thereafter for these penalty amounts. The Debt Collection 
Improvement Act of 1996 further stipulates that any resulting increases 
in a CMP due to the calculated inflation adjustments shall apply only 
to violations which occur after the date the increase takes effect, 
i.e., thirty (30) days after date of publication in the Federal 
Register. Pursuant to the 2015 Act, agencies are required to adjust the 
level of the CMP with an initial ``catch up'', and make subsequent 
annual adjustments for inflation. Catch up adjustments are based on the 
percent change between the Consumer Price Index for Urban Consumers 
(CPI-U) for the month of October for the year of the previous 
adjustment, and the October 2015 CPI-U. Annual inflation adjustments 
will be based on the percent change between the October CPI-U preceding 
the date of adjustment and the prior year's October CPI-U.

II. The Program Fraud Civil Remedies Act of 1986

    In 1986, sections 6103 and 6104 of the Omnibus Budget 
Reconciliation Act of 1986 (Pub. L. 99-501) set forth the Program Fraud 
Civil Remedies Act of 1986 (PFCRA). Specifically, this statute imposes 
a CMP and an assessment against any person who, with knowledge or 
reason to know, makes, submits, or presents a false, fictitious, or 
fraudulent claim or statement to the Government. The General Services 
Administration's regulations, published in the Federal Register (61 FR 
246, December 20, 1996) and codified at 41 CFR part 105-70, set forth a 
CMP of up to $10,781 for each false claim or statement made to the 
agency. Based on the penalty amount inflation factor calculation, 
derived from originally dividing the June 2015 CPI by the June 1996 CPI 
and making the CPI-based annual adjustment thereafter, after rounding 
we are adjusting the maximum penalty amount for this CMP to $11,001 per 
violation.

III. Waiver of Proposed Rulemaking

    In developing this final rule, we are waiving the usual notice of 
proposed rulemaking and public comment procedures set forth in the 
Administrative Procedure Act, 5 U.S.C. 553 (APA). The APA provides an 
exception to the notice and comment procedures when an agency finds 
there is good cause for dispensing with such procedures on the basis 
that they are impracticable, unnecessary, or contrary to the public 
interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good 
cause exists for dispensing with the notice of proposed rulemaking and 
public comment procedures for this rule. Specifically, this rulemaking 
comports and is consistent with the statutory authority set forth in 
the Debt Collection Improvement Act of 1996, with no issues of policy 
discretion. Accordingly, we believe that opportunity for prior comment 
is unnecessary and contrary to the public interest, and we are issuing 
these revised regulations as a final rule that will apply to all future 
cases under this authority.

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a not significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.
    The Office of Management and Budget (OMB) has reviewed this final 
rule in

[[Page 21949]]

accordance with the provisions of E.O. 12866 and has determined that it 
does not meet the criteria for a significant regulatory action. As 
indicated above, the provisions contained in this final rulemaking set 
forth the inflation adjustments in compliance with the Debt Collection 
Improvement Act of 1996 for specific applicable CMPs. The great 
majority of individuals, organizations and entities addressed through 
these regulations do not engage in such prohibited conduct, and as a 
result, we believe that any aggregate economic impact of these revised 
regulations will be minimal, affecting only those limited few who may 
engage in prohibited conduct in violation of the statute. As such, this 
final rule and the inflation adjustment contained therein should have 
no effect on Federal or state expenditures.

V. Regulatory Flexibility Act

    The Administrator of General Services certifies that this final 
rule will not have a significant economic impact on a substantial 
number of small business entities. While some penalties may have an 
impact on small business entities, it is the nature of the violation 
and not the size of the entity that will result in an action by the 
agency, and the aggregate economic impact of this rulemaking on small 
business entities should be minimal, affecting only those few who have 
engaged in prohibited conduct in violation of statutory intent.

VI. Paperwork Reduction Act

    This final rule imposes no new reporting or recordkeeping 
requirements necessitating clearance by OMB.

List of Subject in 41 CFR Part 105-70

    Administrative hearing, Claims, Program fraud.

Katy Kale,
Acting Administrator.

    Accordingly, 41 CFR part 105-70 is amended as set forth below:

PART 105-70--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT 
OF 1986

0
1. The authority citation for part 105-70 continues to read as follows:

    Authority:  40 U.S.C. 121(c); 31 U.S.C. 3809.


Sec.  105-70.003   [Amended]

0
2. Amend Sec.  105-70.003 by--
0
a. Removing from paragraph (a)(1)(iv) the amount ``11,282'' and adding 
``11,400'' in its place; and
0
b. Removing from paragraph (b)(1)(ii) the amount ``11,282'' and adding 
``11,400'' in its place.

[FR Doc. 2021-08600 Filed 4-23-21; 8:45 am]
BILLING CODE 6820-81-P