Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment, 5245-5246 [2023-01612]

Download as PDF 5245 Rules and Regulations Federal Register Vol. 88, No. 18 Friday, January 27, 2023 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 185 RIN 3206–AN39 Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment I. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Office of Personnel Management (OPM). ACTION: Final rule. AGENCY: khammond on DSKJM1Z7X2PROD with RULES This rule adjusts the level of civil monetary penalties contained in U.S. Office of Personnel Management regulations implementing the Program Fraud Civil Remedies Act of 1986, in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget guidance. DATES: Effective date: February 27, 2023. FOR FURTHER INFORMATION CONTACT: Valerie Dew, Office of the General Counsel, Office of Personnel Management, 1900 E St. NW, Washington, DC 20415, Valerie.Dew@ opm.gov, (202) 606–1700. SUPPLEMENTARY INFORMATION: SUMMARY: Improvements Act of 2015 (sec. 701 of Pub. L. 114–74, 28 U.S.C. 2461 note) (‘‘the Act’’). The Act required agencies to: (1) adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking, and (2) make subsequent annual adjustments for inflation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties. OPM has updated the agency’s monetary penalties since the passage of the 2015 Act. This rule takes into account adjustments for the year 2023 based on inflation for that year. These calculations were made based on guidance contained in Office of Management and Budget Memorandum M–23–05: 2022 Inflation adjustment CFR citation Description of the penalty 5 CFR 185.103(a) ....................................................... 5 CFR 185.103(f)(2) ................................................... Civil Penalty for False Claims .................................... Civil Penalty for False Statements ............................. This final rule is being issued without prior public notice or opportunity for public comments. The 2015 Act’s amendments to the Inflation Adjustment Act required the agency to adjust penalties initially through an interim final rulemaking, which did not require the agency to complete a notice and comment process prior to promulgating the interim final rule. The amendments also explicitly required the agency to make subsequent annual adjustments notwithstanding 5 U.S.C. 553 (the section of the Administrative Procedure Act that normally requires agencies to engage in notice and comment). The formula used for adjusting the amount of civil penalties is given by statute, with no discretion provided to OPM regarding the computation of the adjustments. OPM is charged only with performing ministerial computations to determine the amount of adjustment to the civil penalties due to increases in the Consumer Price Index for all Urban Consumers (CPI–U). II. Calculation of Adjustment The Office of Management and Budget (OMB) issues guidance annually on calculating adjustments. Under this guidance, OPM has identified VerDate Sep<11>2014 15:56 Jan 26, 2023 Jkt 259001 applicable civil monetary penalties and calculated the annual adjustment. A civil monetary penalty is any assessment with a dollar amount that is levied for a violation of a Federal civil statute or regulation, and is assessed or enforceable through a civil action in Federal court or an administrative proceeding. A civil monetary penalty does not include a penalty levied for violation of a criminal statute, or fees for services, licenses, permits, or other regulatory review. The calculated catchup adjustment is based on the percent change between the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October in the year of the previous adjustment (or in the year of establishment, if no adjustment has been made) and the October 2015 CPI– U. Office of Management and Budget Memorandum M–23–05 stated that the cost-of-living multiplier for calculating adjustments in 2023 was 1.07745. This multiplier is to be applied to the current level of civil monetary penalties for agencies. When OPM’s 2022 penalties of $12,537 are multiplied by 1.07745, the resulting penalty amount is $13,508. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 2023 Inflation adjustment $12,537 12,537 $13,508 13,508 III. Procedural Requirements A. Executive Orders 13563 and 12866, Regulatory Review Executive Orders 13563 and 12866 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). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. In accordance with the provisions of Executive Order 12866, this rule is not a significant rule as was not reviewed by OMB. B. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. See 5 U.S.C. E:\FR\FM\27JAR1.SGM 27JAR1 5246 Federal Register / Vol. 88, No. 18 / Friday, January 27, 2023 / Rules and Regulations H. E.O. 13175, Consultation With Indian Tribes 603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil penalties annually. No discretion is allowed. Thus, the RFA does not apply to this final rule. In accordance with Executive Order 13175, OPM has evaluated this rule and determined that it has no tribal implications. I. Paperwork Reduction Act C. Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)) This rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act. This rule: (a) Does not have an annual effect on the economy of $100 million or more. (b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. (c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreignbased enterprises. D. Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532) This rule does not involve a Federal mandate that may result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more and that such rulemaking will not significantly or uniquely affect small governments. E. E.O. 12630, Takings This rule does not have takings implications. This document does not contain proposed information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104– 13. List of Subjects in 5 CFR Part 185 Basis for civil penalties and assessments, Claims, Penalties, Program fraud civil remedies. Office of Personnel Management. Stephen Hickman, Federal Register Liaison. For the reasons set forth in the preamble, amend part 185 of title 5 of the Code of Federal Regulations as follows: PART 185—PROGRAM FRAUD CIVIL REMEDIES 1. The authority citation for part 185 continues to read: ■ Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801–3812. § 185.103 [Amended] 2. In § 185.103, amend paragraphs (a) introductory text and (f)(2) by removing ‘‘$12,537’’ and adding ‘‘$13,508’’ in its place. ■ [FR Doc. 2023–01612 Filed 1–26–23; 8:45 am] BILLING CODE 6325–48–P F. E.O. 13132, Federalism This rule does not have federalism implications. The rule does not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. khammond on DSKJM1Z7X2PROD with RULES G. E.O. 12988, Civil Justice Reform 15:56 Jan 26, 2023 Jkt 259001 Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2023–0024; Project Identifier AD–2022–01492–A; Amendment 39–22311; AD 2023–02–04] RIN 2120–AA64 This rule complies with the requirements of E.O. 12988. Specifically, this rule: (a) Does not unduly burden the judicial system. (b) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and (c) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. VerDate Sep<11>2014 DEPARTMENT OF TRANSPORTATION Airworthiness Directives; Mooney International Corporation Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. AGENCY: The FAA is adopting a new airworthiness directive (AD) for certain Mooney International Corporation Model M20C, M20D, M20E, M20F, and M20G airplanes. This AD was prompted by reports of the hybrid material SUMMARY: PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 elevator balance weight cracking. This AD requires inspecting to determine whether a certain elevator balance weight is installed. If installed, this AD requires inspecting each affected elevator balance weight for corrosion and cracking, and depending on the findings, either replacing each affected elevator balance weight with a nonhybrid (lead) elevator balance weight or repetitively inspecting each affected elevator balance weight. This AD also prohibits the installation of an affected elevator balance weight on any airplane. The FAA is issuing this AD to address the unsafe condition on these products. DATES: This AD is effective February 13, 2023. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 13, 2023. The FAA must receive comments on this AD by March 13, 2023. ADDRESSES: You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods: • Federal eRulemaking Portal: Go to regulations.gov. Follow the instructions for submitting comments. • Fax: (202) 493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. • Hand Delivery: Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. AD Docket: You may examine the AD docket at regulations.gov by searching for and locating Docket No. FAA–2023– 0024; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, any comments received, and other information. The street address for Docket Operations is listed above. Material Incorporated by Reference: • For service information identified in this final rule, contact Mooney International Corporation, 165 Al Mooney Road North, Kerrville, TX 78028; phone: (800) 456–3033; email: support@mooney.com; website: mooney.com. • You may view this service information at the FAA, Airworthiness Products Section, Operational Safety Branch, 901 Locust, Kansas City, MO 64106. For information on the availability of this material at the FAA, call (817) 222–5110. It is also available at regulations.gov by searching for and locating Docket No. FAA–2023–0024. E:\FR\FM\27JAR1.SGM 27JAR1

Agencies

Office of Personnel Management

[Federal Register Volume 88, Number 18 (Friday, January 27, 2023)]
[Rules and Regulations]
[Pages 5245-5246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01612]



========================================================================
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. 88, No. 18 / Friday, January 27, 2023 / Rules 
and Regulations

[[Page 5245]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 185

RIN 3206-AN39


Program Fraud Civil Remedies: Civil Monetary Penalty Inflation 
Adjustment

AGENCY: Office of Personnel Management (OPM).

ACTION: Final rule.

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

SUMMARY: This rule adjusts the level of civil monetary penalties 
contained in U.S. Office of Personnel Management regulations 
implementing the Program Fraud Civil Remedies Act of 1986, in 
accordance with the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 and Office of Management and Budget guidance.

DATES: Effective date: February 27, 2023.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (sec. 
701 of Pub. L. 114-74, 28 U.S.C. 2461 note) (``the Act''). The Act 
required agencies to: (1) adjust the level of civil monetary penalties 
with an initial ``catch-up'' adjustment through an interim final 
rulemaking, and (2) make subsequent annual adjustments for inflation. 
The purpose of these adjustments is to maintain the deterrent effect of 
civil penalties. OPM has updated the agency's monetary penalties since 
the passage of the 2015 Act.
    This rule takes into account adjustments for the year 2023 based on 
inflation for that year. These calculations were made based on guidance 
contained in Office of Management and Budget Memorandum M-23-05:

----------------------------------------------------------------------------------------------------------------
                                                                                 2022 Inflation   2023 Inflation
                 CFR citation                     Description of the penalty       adjustment       adjustment
----------------------------------------------------------------------------------------------------------------
5 CFR 185.103(a).............................  Civil Penalty for False Claims.          $12,537          $13,508
5 CFR 185.103(f)(2)..........................  Civil Penalty for False                   12,537           13,508
                                                Statements.
----------------------------------------------------------------------------------------------------------------

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

II. Calculation of Adjustment

    The Office of Management and Budget (OMB) issues guidance annually 
on calculating adjustments. Under this guidance, OPM has identified 
applicable civil monetary penalties and calculated the annual 
adjustment. A civil monetary penalty is any assessment with a dollar 
amount that is levied for a violation of a Federal civil statute or 
regulation, and is assessed or enforceable through a civil action in 
Federal court or an administrative proceeding. A civil monetary penalty 
does not include a penalty levied for violation of a criminal statute, 
or fees for services, licenses, permits, or other regulatory review. 
The calculated catch-up adjustment is based on the percent change 
between the Consumer Price Index for all Urban Consumers (CPI-U) for 
the month of October in the year of the previous adjustment (or in the 
year of establishment, if no adjustment has been made) and the October 
2015 CPI-U.
    Office of Management and Budget Memorandum M-23-05 stated that the 
cost-of-living multiplier for calculating adjustments in 2023 was 
1.07745. This multiplier is to be applied to the current level of civil 
monetary penalties for agencies. When OPM's 2022 penalties of $12,537 
are multiplied by 1.07745, the resulting penalty amount is $13,508.

III. Procedural Requirements

A. Executive Orders 13563 and 12866, Regulatory Review

    Executive Orders 13563 and 12866 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). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. In accordance with the provisions of Executive Order 
12866, this rule is not a significant rule as was not reviewed by OMB.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C.

[[Page 5246]]

603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 requires agencies to adjust civil penalties 
annually. No discretion is allowed. Thus, the RFA does not apply to 
this final rule.

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

    This rule is not a major rule under the Small Business Regulatory 
Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

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

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

E. E.O. 12630, Takings

    This rule does not have takings implications.

F. E.O. 13132, Federalism

    This rule does not have federalism implications. The rule does not 
have substantial direct effects on the States, on the relationship 
between the National Government and the States, or on the distribution 
of power and responsibilities among the various levels of government.

G. E.O. 12988, Civil Justice Reform

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

H. E.O. 13175, Consultation With Indian Tribes

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

I. Paperwork Reduction Act

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

List of Subjects in 5 CFR Part 185

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

Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.

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

PART 185--PROGRAM FRAUD CIVIL REMEDIES

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

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


Sec.  185.103  [Amended]

0
2. In Sec.  185.103, amend paragraphs (a) introductory text and (f)(2) 
by removing ``$12,537'' and adding ``$13,508'' in its place.

[FR Doc. 2023-01612 Filed 1-26-23; 8:45 am]
BILLING CODE 6325-48-P

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