Program Fraud Civil Remedies, 10308-10309 [2022-03608]

Agencies

• DEPARTMENT OF THE TREASURY

[Federal Register Volume 87, Number 37 (Thursday, February 24, 2022)]
[Rules and Regulations]
[Pages 10308-10309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03608]


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DEPARTMENT OF THE TREASURY

31 CFR Part 16


Program Fraud Civil Remedies

AGENCY: Departmental Offices, Treasury.

ACTION: Final rule.

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SUMMARY: This final rule updates the definition of ``investigating 
official'' in the Department's Program Fraud regulations. The 
definition is revised to include inspectors general that have been 
established since the Program Fraud regulations were implemented. This 
final rule adopts a November 23, 2021 proposed rule without change.

DATES: Effective March 28, 2022.

FOR FURTHER INFORMATION CONTACT: Brian Sonfield, Assistant General 
Counsel for General Law, Ethics & Regulation at (202) 622-9804.

SUPPLEMENTARY INFORMATION:

Background and Proposed Rule

    The Department promulgated implementing regulations for the Program 
Fraud Civil Remedies Act of 1986 (Act) (31 U.S.C. 3801 through 3812) on 
September 17, 1987 (52 FR 35071). The Act generally provides that any 
person who knowingly submits a false claim or statement to the Federal 
Government may be liable for an administrative civil penalty for each 
false claim or statement, and, in certain cases, to an assessment equal 
to double the amount falsely claimed.
    The Act vests authority to investigate allegations of liability 
under its provisions in an agency's investigating official. Based upon 
the results of an investigation, the agency reviewing official 
determines, with the concurrence of the Attorney General, whether to 
refer the matter to a presiding officer for an administrative hearing. 
Any penalty or assessment imposed under the Act may be collected by the 
Attorney General, through the filing of a civil action, or by 
offsetting amounts other than tax refunds, owed the particular party by 
the federal government.
    The Act grants agency investigating officials authority to require 
by subpoena the production of documentary evidence which is ``not 
otherwise reasonably available.'' If the case proceeds to hearing, the 
presiding officer may require the attendance and testimony of witnesses 
as well as the production of documentary evidence.
    The Department of the Treasury adopted implementing regulations at 
31 CFR part 16, which designated the Department's Assistant Secretary 
for Management as the authority head, designated the Department's 
Inspector General as the investigating official, and assigned the role 
of reviewing official to the General Counsel or designee.
    On November 23, 2021 (86 FR 66497), the Department issued a 
proposed rule that would revise the definition of investigating 
official in Sec.  16.2. Since the regulations were promulgated in 1987, 
three inspectors general have been established including the Treasury 
Inspector General for Tax Administration (See Internal Revenue Service 
Restructuring and Reform Act of 1998, Pub. L. 105-206, 112 Stat. 685), 
the Special Inspector General for the Troubled Asset Relief Program 
(See Emergency Economic Stabilization Act of 2008, Pub. L. 110-343, 122 
Stat. 3765), and the Special Inspector General for Pandemic Recovery 
(See Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-
136, 134 Stat. 281). The proposed revision would define investigating 
official as any Inspector General, including any Special Inspector 
General, with investigatory authority over programs of the Department 
of the Treasury.

This Final Rule

    The public comment period on the proposed rule closed on January 6, 
2022. One comment was received that supported the proposal. The 
Department appreciates the commenter's input.
    For the reasons discussed in the proposed rule and this preamble, 
the Department adopts the proposed rule without change.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq., 
requires agencies to prepare an initial regulatory flexibility analysis 
(IRFA) to determine the economic impact of the rule on small entities. 
A small entity is defined as either a small business, a small 
organization, or a small governmental jurisdiction; an individual is 
not a small entity. Section 605(b) of the RFA allows an agency to 
prepare a certification in lieu of an IRFA if the rule will not have a 
significant economic impact on a substantial number of small entities. 
Pursuant to 5 U.S.C. 605(b), it is hereby certified that this 
regulation will not have a significant economic impact on a substantial 
number of small entities. The rule is limited to updating the 
definition of investigating official for program fraud investigations 
in order to reflect current law. Accordingly, this rule will have no 
direct impacts on small entities.

Regulatory Planning and Review

    Executive Orders 13563 and 12866 direct agencies to assess 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). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This rule is not a ``significant regulatory action'' under Executive 
Order 12866.

Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 requires 
that agencies assess anticipated costs and benefits and take certain 
other actions before issuing a rule that includes any federal mandate 
that may result in expenditures in any one year by a state, local, or 
tribal government, in the aggregate, or by the private sector, of $100 
million in 1995 dollars, updated annually for inflation. This 
regulation does not include any federal mandate that may result in 
expenditures by state, local, or tribal governments, or by the private 
sector in excess of that threshold.

Federalism

    Executive Order 13132 (titled Federalism) prohibits an agency from 
publishing any rule that has federalism

[[Page 10309]]

implications if the rule either imposes substantial, direct compliance 
costs on state and local governments, and is not required by statute, 
or preempts state law, unless the agency meets the consultation and 
funding requirements of section 6 of the Executive order. This rule 
does not have federalism implications and does not impose substantial 
direct compliance costs on state and local governments or preempt state 
law, within the meaning of the Executive order.

List of Subjects in 31 CFR Part 16

    Administrative practice and procedure, Fraud, Investigations, 
Organizations and functions (Government agencies), Penalties.

    For the reasons stated in the preamble, the Department of the 
Treasury amends 31 CFR part 16 as follows:

PART 16--REGULATIONS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES 
ACT OF 1986

0
1. The authority citation for part 16 continues to read as follows:

    Authority:  31 U.S.C. 3801-3812.


0
2. In Sec.  16.2, revise the definition of ``Investigating official'' 
to read as follows:


Sec.  16.2  Definitions.

* * * * *
    Investigating official means any Inspector General, including any 
Special Inspector General, with investigatory authority over programs 
of the Department of the Treasury, as applicable.
* * * * *

Laurie Schaffer,
Acting General Counsel.
[FR Doc. 2022-03608 Filed 2-23-22; 8:45 am]
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