2022 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations, 2523-2525 [2022-00795]
Download as PDF
2523
Rules and Regulations
Federal Register
Vol. 87, No. 11
Tuesday, January 18, 2022
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 GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RIN 3209–AA60
2022 Civil Monetary Penalties Inflation
Adjustments for Ethics in Government
Act Violations
Office of Government Ethics.
Final rule.
AGENCY:
ACTION:
In accordance with the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, the U.S. Office of Government
Ethics is issuing this final rule to make
the 2022 annual adjustments to the
Ethics in Government Act civil
monetary penalties.
DATES:
Effective date: This final rule is
effective January 18, 2022.
Applicability date: This final rule is
applicable beginning January 15, 2022.
FOR FURTHER INFORMATION CONTACT:
Margaret Dylus-Yukins, Assistant
Counsel, General Counsel and Legal
Policy Division, Office of Government
Ethics, Telephone: 202–482–9300; TTY:
800–877–8339; FAX: 202–482–9237.
SUPPLEMENTARY INFORMATION:
khammond on DSKJM1Z7X2PROD with RULES
SUMMARY:
I. Background
In November 2015, Congress passed
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Sec. 701 of Pub. L. 114–74) (the
2015 Act), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410). The 2015 Act required Federal
agencies to make inflationary
adjustments to the civil monetary
penalties (CMPs) within their
jurisdiction with an initial ‘‘catch-up’’
adjustment through an interim final rule
effective no later than August 1, 2016,
and further mandates that Federal
agencies make subsequent annual
inflationary adjustments of their CMPs,
to be effective no later than January 15
of each year.
VerDate Sep<11>2014
16:23 Jan 14, 2022
Jkt 256001
The Ethics in Government Act of 1978
as amended, 5 U.S.C. appendix (the
Ethics Act) provides for five CMPs.1
Specifically, the Ethics Act provides for
penalties that can be assessed by an
appropriate United States district court,
based upon a civil action brought by the
Department of Justice, for the following
five types of violations:
(1) Knowing and willful failure to file,
report required information on, or
falsification of a public financial
disclosure report, 5 U.S.C. appendix
104(a), 5 CFR 2634.701(b);
(2) Knowing and willful breach of a
qualified trust by trustees and interested
parties, 5 U.S.C. appendix
102(f)(6)(C)(i), 5 CFR 2634.702(a);
(3) Negligent breach of a qualified
trust by trustees and interested parties,
5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR
2634.702(b);
(4) Misuse of a public report, 5 U.S.C.
appendix 105(c)(2), 5 CFR 2634.703;
and
(5) Violation of outside employment/
activities provisions, 5 U.S.C. appendix
504(a), 5 CFR 2636.104(a).
In compliance with the 2015 Act and
guidance issued by the Office of
Management and Budget (OMB), the
U.S. Office of Government Ethics (OGE)
made previous inflationary adjustments
to the five Ethics Act CMPs, and is
issuing this rulemaking to effectuate the
2022 annual inflationary adjustments to
those CMPs. In accordance with the
2015 Act, these adjustments are based
on the percent change between the
Consumer Price Index for all Urban
Consumers (CPI–U) for the month of
October preceding the date of the
adjustment, and the prior year’s October
CPI–U. Pursuant to OMB guidance, the
cost-of-living adjustment multiplier for
2022, based on the CPI–U for October
2021, not seasonally adjusted, is
1.06222. To calculate the 2022 annual
adjustment, agencies must multiply the
most recent penalty by the 1.06222
1 U.S. Office of Government Ethics (OGE) has
previously determined, after consultation with the
Department of Justice, that the $200 late filing fee
for public financial disclosure reports that are more
than 30 days overdue (see section 104(d) of the
Ethics Act, 5 U.S.C. appendix, 104(d), and 5 CFR
2634.704 of OGE’s regulations thereunder) is not a
CMP as defined under the Federal Civil Penalties
Inflation Adjustment Act, as amended. Therefore,
that fee is not being adjusted in this rulemaking
(nor was it adjusted by OGE in previous CMP
rulemakings), and will remain at its current amount
of $200.
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
multiplier, and round to the nearest
dollar.
Applying the formula established by
the 2015 Act and OMB guidance, OGE
is amending the Ethics Act CMPs
through this rulemaking to:
(1) Increase the three penalties
reflected in 5 CFR 2634.702(a), 5 CFR
2634.703, and 5 CFR 2636.104(a)—
which were previously adjusted to a
maximum of $20,731—to a maximum of
$22,021;
(2) Increase the penalty reflected in 5
CFR 2634.702(b)—which was
previously adjusted to a maximum of
$10,366—to a maximum of $11,011; and
(3) Increase the penalty reflected in 5
CFR 2634.701(b)—which was
previously adjusted to a maximum of
$62,313—to a maximum of $66,190.
These adjusted penalty amounts will
apply to penalties assessed after January
15, 2022 (the applicability date of this
final rule), whose associated violations
occurred after November 2, 2015.
OGE will continue to make future
annual inflationary adjustments to the
Ethics Act CMPs in accordance with the
statutory formula set forth in the 2015
Act and OMB guidance.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as
Director of the Office of Government
Ethics, I find that good cause exists for
waiving the general notice of proposed
rulemaking and public comment
procedures as to these technical
amendments. The notice and comment
procedures are being waived because
these amendments, which concern
matters of agency organization,
procedure and practice, are being
adopted in accordance with statutorily
mandated inflation adjustment
procedures of the 2015 Act, which
specifies that agencies shall adjust civil
monetary penalties notwithstanding
Section 553 of the Administrative
Procedure Act. It is also in the public
interest that the adjusted rates for civil
monetary penalties under the Ethics in
Government Act become effective as
soon as possible in order to maintain
their deterrent effect.
Regulatory Flexibility Act
As the Director of the Office of
Government Ethics, I certify under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) that this final rule would not
E:\FR\FM\18JAR1.SGM
18JAR1
2524
Federal Register / Vol. 87, No. 11 / Tuesday, January 18, 2022 / Rules and Regulations
have a significant economic impact on
a substantial number of small entities
because it primarily affects current
Federal executive branch employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. chapter 35) does not apply
because this regulation does not contain
information collection requirements that
require approval of the Office of
Management and Budget.
Unfunded Mandates Reform Act
Approved: January 12, 2022.
Emory Rounds,
Director, U.S. Office of Government Ethics.
For the reasons set forth in the
preamble, the U.S. Office of Government
Ethics is amending 5 CFR parts 2634
and 2636 as follows:
PART 2634—EXECUTIVE BRANCH
FINANCIAL DISCLOSURE, QUALIFIED
TRUSTS, AND CERTIFICATES OF
DIVESTITURE
1. The authority citation for part 2634
continues to read as follows:
■
For purposes of the Unfunded
Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule
would not significantly or uniquely
affect small governments and will not
result in increased expenditures by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more (as adjusted for
inflation) in any one year.
Executive Order 13563 and Executive
Order 12866
Authority: 5 U.S.C. app.; 26 U.S.C. 1043;
Pub. L. 101–410, 104 Stat. 890, 28 U.S.C.
2461 note, as amended by Sec. 31001, Pub.
L. 104–134, 110 Stat. 1321 and Sec. 701, Pub.
L. 114–74; Pub. L. 112–105, 126 Stat. 291;
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp.,
p. 215, as modified by E.O. 12731, 55 FR
42547, 3 CFR, 1990 Comp., p. 306.
2. Section 2634.701 is amended by
revising paragraph (b) to read as follows:
■
§ 2634.701
reports.
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select the regulatory
approaches that maximize net benefits
(including economic, environmental,
public health and safety effects,
distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. The Office of Management
and Budget has determined that
rulemakings such as this implementing
annual inflationary adjustments under
the 2015 Act are not significant
regulatory actions under Executive
Order 12866.
*
*
*
*
*
(b) Civil action. The Attorney General
may bring a civil action in any
appropriate United States district court
against any individual who knowingly
and willfully falsifies or who knowingly
and willfully fails to file or report any
information required by filers of public
reports under subpart B of this part. The
court in which the action is brought
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth in Table 1
to this section, as provided by section
104(a) of the Act, as amended, and as
adjusted in accordance with the
inflation adjustment procedures
prescribed in the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended.
Executive Order 12988
As Director of the Office of
Government Ethics, I have reviewed this
rule in light of section 3 of Executive
Order 12988, Civil Justice Reform, and
certify that it meets the applicable
standards provided therein.
List of Subjects
khammond on DSKJM1Z7X2PROD with RULES
Certificates of divestiture, Conflict of
interests, Financial disclosure,
Government employees, Penalties,
Privacy, Reporting and recordkeeping
requirements, Trusts and trustees.
5 CFR Part 2636
Conflict of interests, Government
employees, Penalties.
16:23 Jan 14, 2022
TABLE 1 TO § 2634.701
Date of violation
Penalty
Violation occurring between Sept. 14,
2007 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$50,000
66,190
*
*
*
*
*
3. Section 2634.702 is revised to read
as follows:
■
5 CFR Part 2634
VerDate Sep<11>2014
Failure to file or falsifying
Jkt 256001
§ 2634.702 Breaches by trust fiduciaries
and interested parties.
(a) The Attorney General may bring a
civil action in any appropriate United
States district court against any
individual who knowingly and willfully
violates the provisions of
§ 2634.408(d)(1) or (e)(1). The court in
which the action is brought may assess
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
against the individual a civil monetary
penalty in any amount, not to exceed
the amounts set forth in Table 1 to this
section, as provided by section
102(f)(6)(C)(i) of the Act and as adjusted
in accordance with the inflation
adjustment procedures prescribed in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
TABLE 1 TO § 2634.702
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
22,021
(b) The Attorney General may bring a
civil action in any appropriate United
States district court against any
individual who negligently violates the
provisions of § 2634.408(d)(1) or (e)(1).
The court in which the action is brought
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth in Table 2
to this section, as provided by section
102(f)(6)(C)(ii) of the Act and as
adjusted in accordance with the
inflation adjustment procedures of the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
TABLE 2 TO § 2634.702
Date of violation
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
Penalty
$5,500
11,011
4. Section 2634.703 is amended by
revising paragraph (a) to read as follows:
■
§ 2634.703
Misuse of public reports.
(a) The Attorney General may bring a
civil action against any person who
obtains or uses a report filed under this
part for any purpose prohibited by
section 105(c)(1) of the Act, as
incorporated in § 2634.603(f). The court
in which the action is brought may
assess against the person a civil
monetary penalty in any amount, not to
exceed the amounts set forth in Table 1
to this section, as provided by section
105(c)(2) of the Act and as adjusted in
accordance with the inflation
adjustment procedures prescribed in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
TABLE 1 TO § 2634.703
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
22,021
*
E:\FR\FM\18JAR1.SGM
*
*
18JAR1
*
*
Federal Register / Vol. 87, No. 11 / Tuesday, January 18, 2022 / Rules and Regulations
PART 2636—LIMITATIONS ON
OUTSIDE EARNED INCOME,
EMPLOYMENT AND AFFILIATIONS
FOR CERTAIN NONCAREER
EMPLOYEES
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
5. The authority citation for part 2636
continues to read as follows:
■
Authority: 5 U.S.C. App. (Ethics in
Government Act of 1978); Pub. L. 101–410,
104 Stat. 890, 28 U.S.C. 2461 note (Federal
Civil Penalties Inflation Adjustment Act of
1990), as amended by Sec. 31001, Pub. L.
104–134, 110 Stat. 1321 (Debt Collection
Improvement Act of 1996) and Sec. 701, Pub.
L. 114–74 (Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015);
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp.,
p. 215, as modified by E.O. 12731, 55 FR
42547, 3 CFR, 1990 Comp., p. 306.
6. Section 2636.104 is amended by
revising paragraph (a) to read as follows:
■
§ 2636.104
action.
Civil, disciplinary and other
(a) Civil action. Except when the
employee engages in conduct in good
faith reliance upon an advisory opinion
issued under § 2636.103, an employee
who engages in any conduct in violation
of the prohibitions, limitations, and
restrictions contained in this part may
be subject to civil action under 5 U.S.C.
app. 504(a) and a civil monetary penalty
of not more than the amounts set in
Table 1 to this section, as adjusted in
accordance with the inflation
adjustment procedures prescribed in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, or
the amount of the compensation the
individual received for the prohibited
conduct, whichever is greater.
TABLE 1 TO § 2636.104
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
22,021
*
*
*
*
*
[FR Doc. 2022–00795 Filed 1–14–22; 8:45 am]
khammond on DSKJM1Z7X2PROD with RULES
BILLING CODE 6345–03–P
[Docket No. FAA–2021–0665; Project
Identifier AD–2021–00270–T; Amendment
39–21848; AD 2021–25–05]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
The FAA is superseding
Airworthiness Directive (AD) 2017–23–
02, which applied to certain The Boeing
Company Model 737–200, –200C, –300,
–400, and –500 series airplanes. AD
2017–23–02 required repetitive
inspections, replacement, and
applicable on-condition actions for
certain fuselage crown skin panels. This
AD was prompted by an evaluation by
the design approval holder indicating
that the fuselage crown skin panels are
subject to widespread fatigue damage.
This AD retains the actions in AD 2017–
23–02, revises certain airplane
configurations and inspection locations,
and adds airplanes to the applicability.
The FAA is issuing this AD to address
the unsafe condition on these products.
DATES: This AD is effective February 22,
2022.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of February 22, 2022.
ADDRESSES: For service information
identified in this final rule, contact
Boeing Commercial Airplanes,
Attention: Contractual & Data Services
(C&DS), 2600 Westminster Blvd., MC
110–SK57, Seal Beach, CA 90740–5600;
telephone 562–797–1717; internet
https://www.myboeingfleet.com. You
may view this service information at the
FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For
information on the availability of this
material at the FAA, call 206–231–3195.
It is also available at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2021–
0665.
SUMMARY:
Examining the AD Docket
You may examine the AD docket at
https://www.regulations.gov by
searching for and locating Docket No.
FAA–2021–0665; or in person at Docket
Operations between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal
VerDate Sep<11>2014
16:23 Jan 14, 2022
Jkt 256001
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
2525
holidays. The AD docket contains this
final rule, any comments received, and
other information. The address for
Docket Operations is U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT:
James Guo, Aerospace Engineer,
Airframe Section, FAA, Los Angeles
ACO Branch, 3960 Paramount
Boulevard, Lakewood, CA 90712–4137;
phone: 562–627–5357; email:
james.guo@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 to supersede AD 2017–23–02,
Amendment 39–19096 (82 FR 52835,
November 15, 2017) (AD 2017–23–02).
AD 2017–23–02 applied to certain The
Boeing Company Model 737–200,
–200C, –300, –400, and –500 series
airplanes. The NPRM published in the
Federal Register on August 24, 2021 (86
FR 47260). The NPRM was prompted by
an evaluation by the design approval
holder indicating that the fuselage
crown skin panels are subject to
widespread fatigue damage. In the
NPRM, the FAA proposed to retain the
actions in AD 2017–23–02, revise
certain airplane configurations and
inspection locations, and add airplanes
to the applicability. The FAA is issuing
this AD to address cracking in the
fuselage crown skin panels. Multiple
adjacent cracks in the fuselage crown
skin could link up and lead to
decompression or loss of structural
integrity of the airplane.
Discussion of Final Airworthiness
Directive
Comments
The FAA received a comment from
one commenter. The following presents
the comment received on the NPRM and
the FAA’s response.
Effect of Winglets on Accomplishment
of the Proposed Actions
Aviation Partners Boeing stated that
the installation of winglets per
Supplemental Type Certificate (STC)
ST01219SE does not affect the actions
specified in the proposed AD.
The FAA concurs with the
commenter. The FAA has redesignated
paragraph (c) of the proposed AD as
paragraph (c)(1) of this AD and added
paragraph (c)(2) to this AD to state that
installation of STC ST01219SE does not
affect the ability to accomplish the
actions required by this AD. Therefore,
E:\FR\FM\18JAR1.SGM
18JAR1
Agencies
[Federal Register Volume 87, Number 11 (Tuesday, January 18, 2022)]
[Rules and Regulations]
[Pages 2523-2525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00795]
========================================================================
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. 87, No. 11 / Tuesday, January 18, 2022 /
Rules and Regulations
[[Page 2523]]
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RIN 3209-AA60
2022 Civil Monetary Penalties Inflation Adjustments for Ethics in
Government Act Violations
AGENCY: Office of Government Ethics.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015, the U.S. Office of Government
Ethics is issuing this final rule to make the 2022 annual adjustments
to the Ethics in Government Act civil monetary penalties.
DATES:
Effective date: This final rule is effective January 18, 2022.
Applicability date: This final rule is applicable beginning January
15, 2022.
FOR FURTHER INFORMATION CONTACT: Margaret Dylus-Yukins, Assistant
Counsel, General Counsel and Legal Policy Division, Office of
Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX:
202-482-9237.
SUPPLEMENTARY INFORMATION:
I. Background
In November 2015, Congress passed the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L.
114-74) (the 2015 Act), which further amended the Federal Civil
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015
Act required Federal agencies to make inflationary adjustments to the
civil monetary penalties (CMPs) within their jurisdiction with an
initial ``catch-up'' adjustment through an interim final rule effective
no later than August 1, 2016, and further mandates that Federal
agencies make subsequent annual inflationary adjustments of their CMPs,
to be effective no later than January 15 of each year.
The Ethics in Government Act of 1978 as amended, 5 U.S.C. appendix
(the Ethics Act) provides for five CMPs.\1\ Specifically, the Ethics
Act provides for penalties that can be assessed by an appropriate
United States district court, based upon a civil action brought by the
Department of Justice, for the following five types of violations:
---------------------------------------------------------------------------
\1\ U.S. Office of Government Ethics (OGE) has previously
determined, after consultation with the Department of Justice, that
the $200 late filing fee for public financial disclosure reports
that are more than 30 days overdue (see section 104(d) of the Ethics
Act, 5 U.S.C. appendix, 104(d), and 5 CFR 2634.704 of OGE's
regulations thereunder) is not a CMP as defined under the Federal
Civil Penalties Inflation Adjustment Act, as amended. Therefore,
that fee is not being adjusted in this rulemaking (nor was it
adjusted by OGE in previous CMP rulemakings), and will remain at its
current amount of $200.
---------------------------------------------------------------------------
(1) Knowing and willful failure to file, report required
information on, or falsification of a public financial disclosure
report, 5 U.S.C. appendix 104(a), 5 CFR 2634.701(b);
(2) Knowing and willful breach of a qualified trust by trustees and
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(i), 5 CFR
2634.702(a);
(3) Negligent breach of a qualified trust by trustees and
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR
2634.702(b);
(4) Misuse of a public report, 5 U.S.C. appendix 105(c)(2), 5 CFR
2634.703; and
(5) Violation of outside employment/activities provisions, 5 U.S.C.
appendix 504(a), 5 CFR 2636.104(a).
In compliance with the 2015 Act and guidance issued by the Office
of Management and Budget (OMB), the U.S. Office of Government Ethics
(OGE) made previous inflationary adjustments to the five Ethics Act
CMPs, and is issuing this rulemaking to effectuate the 2022 annual
inflationary adjustments to those CMPs. In accordance with the 2015
Act, these adjustments are based on the percent change between the
Consumer Price Index for all Urban Consumers (CPI-U) for the month of
October preceding the date of the adjustment, and the prior year's
October CPI-U. Pursuant to OMB guidance, the cost-of-living adjustment
multiplier for 2022, based on the CPI-U for October 2021, not
seasonally adjusted, is 1.06222. To calculate the 2022 annual
adjustment, agencies must multiply the most recent penalty by the
1.06222 multiplier, and round to the nearest dollar.
Applying the formula established by the 2015 Act and OMB guidance,
OGE is amending the Ethics Act CMPs through this rulemaking to:
(1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5
CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to
a maximum of $20,731--to a maximum of $22,021;
(2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was
previously adjusted to a maximum of $10,366--to a maximum of $11,011;
and
(3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was
previously adjusted to a maximum of $62,313--to a maximum of $66,190.
These adjusted penalty amounts will apply to penalties assessed
after January 15, 2022 (the applicability date of this final rule),
whose associated violations occurred after November 2, 2015.
OGE will continue to make future annual inflationary adjustments to
the Ethics Act CMPs in accordance with the statutory formula set forth
in the 2015 Act and OMB guidance.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as Director of the Office of
Government Ethics, I find that good cause exists for waiving the
general notice of proposed rulemaking and public comment procedures as
to these technical amendments. The notice and comment procedures are
being waived because these amendments, which concern matters of agency
organization, procedure and practice, are being adopted in accordance
with statutorily mandated inflation adjustment procedures of the 2015
Act, which specifies that agencies shall adjust civil monetary
penalties notwithstanding Section 553 of the Administrative Procedure
Act. It is also in the public interest that the adjusted rates for
civil monetary penalties under the Ethics in Government Act become
effective as soon as possible in order to maintain their deterrent
effect.
Regulatory Flexibility Act
As the Director of the Office of Government Ethics, I certify under
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final
rule would not
[[Page 2524]]
have a significant economic impact on a substantial number of small
entities because it primarily affects current Federal executive branch
employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
because this regulation does not contain information collection
requirements that require approval of the Office of Management and
Budget.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule would not significantly or
uniquely affect small governments and will not result in increased
expenditures by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more (as adjusted for
inflation) in any one year.
Executive Order 13563 and Executive Order 12866
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select the regulatory approaches that
maximize net benefits (including economic, environmental, public health
and safety effects, distributive impacts, and equity). Executive Order
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget has determined that rulemakings
such as this implementing annual inflationary adjustments under the
2015 Act are not significant regulatory actions under Executive Order
12866.
Executive Order 12988
As Director of the Office of Government Ethics, I have reviewed
this rule in light of section 3 of Executive Order 12988, Civil Justice
Reform, and certify that it meets the applicable standards provided
therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of interests, Financial
disclosure, Government employees, Penalties, Privacy, Reporting and
recordkeeping requirements, Trusts and trustees.
5 CFR Part 2636
Conflict of interests, Government employees, Penalties.
Approved: January 12, 2022.
Emory Rounds,
Director, U.S. Office of Government Ethics.
For the reasons set forth in the preamble, the U.S. Office of
Government Ethics is amending 5 CFR parts 2634 and 2636 as follows:
PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS,
AND CERTIFICATES OF DIVESTITURE
0
1. The authority citation for part 2634 continues to read as follows:
Authority: 5 U.S.C. app.; 26 U.S.C. 1043; Pub. L. 101-410, 104
Stat. 890, 28 U.S.C. 2461 note, as amended by Sec. 31001, Pub. L.
104-134, 110 Stat. 1321 and Sec. 701, Pub. L. 114-74; Pub. L. 112-
105, 126 Stat. 291; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p.
215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p.
306.
0
2. Section 2634.701 is amended by revising paragraph (b) to read as
follows:
Sec. 2634.701 Failure to file or falsifying reports.
* * * * *
(b) Civil action. The Attorney General may bring a civil action in
any appropriate United States district court against any individual who
knowingly and willfully falsifies or who knowingly and willfully fails
to file or report any information required by filers of public reports
under subpart B of this part. The court in which the action is brought
may assess against the individual a civil monetary penalty in any
amount, not to exceed the amounts set forth in Table 1 to this section,
as provided by section 104(a) of the Act, as amended, and as adjusted
in accordance with the inflation adjustment procedures prescribed in
the Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended.
Table 1 to Sec. 2634.701
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015... $50,000
Violation occurring after Nov. 2, 2015........................ 66,190
------------------------------------------------------------------------
* * * * *
0
3. Section 2634.702 is revised to read as follows:
Sec. 2634.702 Breaches by trust fiduciaries and interested parties.
(a) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
knowingly and willfully violates the provisions of Sec. 2634.408(d)(1)
or (e)(1). The court in which the action is brought may assess against
the individual a civil monetary penalty in any amount, not to exceed
the amounts set forth in Table 1 to this section, as provided by
section 102(f)(6)(C)(i) of the Act and as adjusted in accordance with
the inflation adjustment procedures prescribed in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended.
Table 1 to Sec. 2634.702
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 22,021
------------------------------------------------------------------------
(b) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
negligently violates the provisions of Sec. 2634.408(d)(1) or (e)(1).
The court in which the action is brought may assess against the
individual a civil monetary penalty in any amount, not to exceed the
amounts set forth in Table 2 to this section, as provided by section
102(f)(6)(C)(ii) of the Act and as adjusted in accordance with the
inflation adjustment procedures of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended.
Table 2 to Sec. 2634.702
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $5,500
Violation occurring after Nov. 2, 2015........................ 11,011
------------------------------------------------------------------------
0
4. Section 2634.703 is amended by revising paragraph (a) to read as
follows:
Sec. 2634.703 Misuse of public reports.
(a) The Attorney General may bring a civil action against any
person who obtains or uses a report filed under this part for any
purpose prohibited by section 105(c)(1) of the Act, as incorporated in
Sec. 2634.603(f). The court in which the action is brought may assess
against the person a civil monetary penalty in any amount, not to
exceed the amounts set forth in Table 1 to this section, as provided by
section 105(c)(2) of the Act and as adjusted in accordance with the
inflation adjustment procedures prescribed in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended.
Table 1 to Sec. 2634.703
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 22,021
------------------------------------------------------------------------
* * * * *
[[Page 2525]]
PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES
0
5. The authority citation for part 2636 continues to read as follows:
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978);
Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil
Penalties Inflation Adjustment Act of 1990), as amended by Sec.
31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement
Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55
FR 42547, 3 CFR, 1990 Comp., p. 306.
0
6. Section 2636.104 is amended by revising paragraph (a) to read as
follows:
Sec. 2636.104 Civil, disciplinary and other action.
(a) Civil action. Except when the employee engages in conduct in
good faith reliance upon an advisory opinion issued under Sec.
2636.103, an employee who engages in any conduct in violation of the
prohibitions, limitations, and restrictions contained in this part may
be subject to civil action under 5 U.S.C. app. 504(a) and a civil
monetary penalty of not more than the amounts set in Table 1 to this
section, as adjusted in accordance with the inflation adjustment
procedures prescribed in the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, or the amount of the compensation
the individual received for the prohibited conduct, whichever is
greater.
Table 1 to Sec. 2636.104
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 22,021
------------------------------------------------------------------------
* * * * *
[FR Doc. 2022-00795 Filed 1-14-22; 8:45 am]
BILLING CODE 6345-03-P