Civil Monetary Penalties Inflation Adjustments, 50003-50005 [2023-16217]
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Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Rules and Regulations
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245–AI01
Civil Monetary Penalties Inflation
Adjustments
U.S. Small Business
Administration.
ACTION: Final rule.
AGENCY:
The Small Business
Administration (SBA) is amending its
regulations to adjust for inflation the
amount of certain civil monetary
penalties that are within the jurisdiction
of the agency. These adjustments
comply with the requirement in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, to make annual adjustments to the
penalties.
DATES: This rule is effective August 1,
2023.
FOR FURTHER INFORMATION CONTACT:
Arlene Embrey, 202–205–6976 or at
arlene.embrey@sba.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Background
On November 2, 2015, the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
Inflation Adjustment Act), Public Law
114–74, 129 Stat. 584, was enacted. This
act amended the Federal Civil Penalties
Inflation Adjustment Act of 1990, Public
Law 101–410, 104 Stat. 890 (the 1990
Inflation Adjustment Act), to improve
the effectiveness of civil monetary
penalties and to maintain their deterrent
effect. The 2015 Inflation Adjustment
Act required agencies to issue a final
rule by August 1, 2016, to adjust the
level of civil monetary penalties with an
initial ‘‘catch-up’’ adjustment and to
annually adjust these monetary
penalties for inflation by January 15 of
each subsequent year.
Based on the definition of a ‘‘civil
monetary penalty’’ in the 1990 Inflation
Adjustment Act, agencies are to make
adjustments only to the civil penalties
that (i) are for a specific monetary
amount as provided by Federal law or
have a maximum amount provided for
by Federal law; (ii) are assessed or
enforced by an agency; and (iii) are
enforced or assessed in an
administrative proceeding or a civil
action in the Federal courts. Therefore,
penalties that are stated as a percentage
of an indeterminate amount or as a
function of a violation (penalties that
encompass actual damages incurred) are
not to be adjusted.
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SBA published in the Federal
Register an interim final rule with its
initial adjustments to the civil monetary
penalties, including an initial ‘‘catchup’’ adjustment, on May 19, 2016, (81
FR 31489) with an effective date of
August 1, 2016. SBA published its first
annual adjustments to the monetary
penalties on February 9, 2017 (82 FR
9967), with an immediate effective date.
SBA published its subsequent annual
adjustments for 2018 on February 21,
2018 (83 FR 7361), for 2019 on April 1,
2019 (84 FR 12059), for 2020 on March
10, 2020 (85 FR 13725), for 2021 on
September 24, 2021 (86 FR 52955), and
on May 11, 2022 (87 FR 28756), all with
immediate effective dates. This rule will
establish the adjusted penalty amounts
for 2023 with an immediate effective
date upon publication.
On December 15, 2022, the Office of
Management and Budget (OMB)
published its annual guidance
memorandum for 2023 civil monetary
penalties inflation adjustments (M–23–
05, Implementation of Penalty Inflation
Adjustments for 2023, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015). The memorandum provides the
formula for calculating the annual
adjustments based on the Consumer
Price Index for all Urban Consumers
(CPI–U) for the month of October
preceding the adjustment, and
specifically on the change between the
October CPI–U preceding the date of
adjustment and the prior year’s CPI–U.
Based on this methodology, the 2023
civil monetary penalty inflation
adjustment factor is 1.07745 (October
2022 CPI–U (298.012)/October 2021
CPI–U (276.589). The annual adjustment
amounts identified in this rule were
obtained by applying this multiplier of
1.07745 to those penalty amounts that
were published in SBA’s 2022
adjustments to civil monetary penalties
at 87 FR 28756 (May 11, 2022).
50003
may impose a penalty on any SBIC for
each day that it fails to comply with
SBA’s regulations or directives
governing the filing of regular or special
reports. The penalty for non-compliance
is incorporated in § 107.665 of the SBIC
program regulations.
This rule amends § 107.665 to adjust
the current civil penalty from $291 to
$314 per day of failure to file. The
current civil penalty of $291 was
multiplied by the multiplier of 1.07745
to reach a product of $314, rounded to
the nearest dollar.
2. 13 CFR 120.465—Civil Penalty for
Late Submission of Required Reports
According to the regulations at
§ 120.465, any SBA Supervised Lender,
as defined in 13 CFR 120.10, that
violates a regulation or written directive
issued by the SBA Administrator
regarding the filing of any regular or
special report is subject to the civil
penalty amount stated in § 120.465(b)
for each day the company fails to file
the report, unless the SBA Supervised
Lender can show that there is
reasonable cause for its failure to file.
This penalty is authorized by section
23(j)(1) of the Small Business Act, 15
U.S.C. 650(j)(1).
This rule amends § 120.465(b) to
adjust the current civil penalty to $7,805
per day of failure to file from $7,244 per
day of failure to file. The current civil
penalty of $7,244 was multiplied by the
multiplier of 1.07745 to reach a product
of $7,805, rounded to the nearest dollar.
II. Civil Monetary Penalties Adjusted by
This Rule
This rule adjusts civil monetary
penalties authorized by the Small
Business Act, the Small Business
Investment Act of 1958 (SBI Act), the
Program Fraud Civil Remedies Act, and
the Byrd Amendment to the Federal
Regulation of Lobbying Act. These
penalties and the implementing
regulations are discussed below.
3. 13 CFR 120.1500—Types of Formal
Enforcement Actions—SBA Lenders
According to the regulations at
§ 120.1500(b), SBA may assess a civil
monetary penalty against a 7(a) Lender.
In determining whether to assess a civil
monetary penalty and, if so, in what
amount, SBA may consider: the gravity
(e.g., severity and frequency) of the
violation; the history of previous
violations; the financial resources and
good faith of the 7(a) Lender; and any
other matters as justice may require.
This penalty is authorized by the Small
Business Act, 15 U.S.C. 657t(e)(2)(B).
This rule amends § 120.1500(b)(2) to
adjust the current civil penalty from
$268,694 to $289,504. The current civil
penalty of $268,694 was multiplied by
the multiplier of 1.07745 to reach a
product of $289,504, rounded to the
nearest dollar.
1. 13 CFR 107.665—Civil Penalties
SBA licenses, regulates, and provides
financial assistance to financial entities
called small business investment
companies (SBICs). Pursuant to section
315 of the SBI Act, 15 U.S.C. 687g, SBA
4. 13 CFR 142.1—Overview of
Regulations
SBA has promulgated regulations at
13 CFR part 142 to implement the civil
penalties authorized by the Program
Fraud Civil Remedies Act of 1986
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50004
Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Rules and Regulations
(PFCRA), 31 U.S.C. 3801–3812. Under
the current regulation at 13 CFR
142.1(b), a person who submits, or
causes to be submitted, a false claim or
a false statement to SBA is subject to a
civil penalty of not more than $12,537,
for each statement or claim.
This rule amends § 142.1(b) to adjust
the current civil penalty from $12,537 to
$13,508. The adjusted civil penalty
amount was calculated by multiplying
the current civil penalty of $12,537 by
the multiplier of 1.07745 to reach a
product of $13,508, rounded to the
nearest dollar.
5. 13 CFR 146.400—Penalties
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SBA’s regulations at 13 CFR part 146
govern lobbying activities by recipients
of Federal financial assistance. These
regulations implement the authority in
31 U.S.C. 1352 and impose penalties on
any recipient that fails to comply with
certain requirements in the part.
Specifically, under § 146.400(a) and (b),
penalties may be imposed on those who
make prohibited expenditures or fail to
file the required disclosure forms or to
amend such forms, if necessary.
This rule amends § 146.400(a) and (b)
to adjust the current civil penalty
amounts to ‘‘not less than $23,727 and
not more than $237,268.’’ The current
civil penalty amounts of $22,021 and
$220,213 were multiplied by the
multiplier of 1.07745 to reach a product
of $23,727 and $237,268, respectively,
rounded to the nearest dollar.
This rule also amends § 146.400(e) to
adjust the civil penalty that may be
imposed for a first-time violation of
§ 146.400(a) and (b) to $23,727 and to
adjust the civil penalty that may be
imposed for second and subsequent
offenses to ‘‘not less than $23,727 and
not more than $237,268.’’ The current
civil penalty amounts of $22,021 and
$220,213 were multiplied by the
multiplier of 1.077455 to reach a
product of $23,727 and $237,268,
respectively, rounded to the nearest
dollar.
Compliance With Executive Orders
12866, 12988, 13132, and the
Administrative Procedure Act (5 U.S.C.
553), the Congressional Review Act (5
U.S.C. 801–808), the Paperwork
Reduction Act (44 U.S.C. Ch. 35) and
the Regulatory Flexibility Act (5 U.S.C.
601–612).
Executive Order 12866
The Office of Management and Budget
has determined that this final rule is not
a significant regulatory action under
Executive Order 12866.
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Executive Order 12988
This action meets applicable
standards set forth in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The action does not have
retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order
13132, SBA determined that the rule
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,
this final rule has no federalism
implications warranting preparation of a
federalism assessment.
The Administrative Procedure Act
(APA)
The APA requires agencies generally
to provide notice and an opportunity for
public comment before adopting a rule
unless the agency for good cause finds
that notice and comment are
impracticable, unnecessary, or contrary
to the public interest. 5 U.S.C. 553(b).
The APA also requires agencies to allow
at least 30 days after publication for a
final rule to become effective ‘‘except as
otherwise provided by the agency for
good cause found and published with
the rule.’’ 5 U.S.C. 553(d). For the
following reasons prior public notice, an
opportunity for public comment, and a
delayed effective date are not required
for this rule. The 2015 Inflation
Adjustment Act directs agencies to
adjust their civil penalties annually
notwithstanding section 553 of the APA.
28 U.S.C. 2461 note, sec. 4(b)(2).
This exemption from the notice and
comment, and delayed effective date
requirements of the APA, in effect
provides SBA with the good cause
justification to promulgate this as a final
rule that will become effective
immediately on the date it is published
in the Federal Register. Additionally,
the 2015 Inflation Adjustment Act
provides a non-discretionary cost-ofliving formula for making the annual
adjustment to the civil monetary
penalties; SBA merely performs the
ministerial task of calculating the
amount of the adjustments. Therefore,
even without the statutory exemption
from the APA, notice and comment
would be unnecessary.
The Congressional Review Act (CRA)
The Office of Management and Budget
determined that this rule is not a major
rule under 5 U.S.C. 804(2).
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Paperwork Reduction Act
SBA has determined that this rule
does not impose additional reporting or
recordkeeping requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires agencies to consider the effect
of their regulatory actions on small
entities, including small non-profit
businesses, and small local
governments. Pursuant to the RFA,
when an agency issues a rule, the
agency must prepare an analysis that
describes whether the impact of the rule
will have a significant economic impact
on a substantial number of such small
entities. However, the RFA requires
such analysis only where notice and
comment rulemaking are required. As
stated above, SBA has express statutory
authority to issue this rule without
regard to the notice and comment
requirement of the APA. Since notice
and comment is not required before this
rule is issued, SBA is not required to
prepare a regulatory analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan
programs—business, Reporting and
recordkeeping requirements, Small
businesses.
13 CFR Part 120
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
13 CFR Part 142
Administrative practice and
procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
PART 107—SMALL BUSINESS
INVESTMENT COMPANIES
1. The authority citation for part 107
continues to read as follows:
■
Authority: 15 U.S.C. 681, 683, 687(c), 687b,
687d, 687g, 687m.
§ 107.665
[Amended]
2. In § 107.665, remove ‘‘$291’’ and
add in its place ‘‘$314’’.
■
PART 120—BUSINESS LOANS
3. The authority citation for part 120
continues to read as follows:
■
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Federal Register / Vol. 88, No. 146 / Tuesday, August 1, 2023 / Rules and Regulations
Authority: 15 U.S.C. 634(b)(6), (b)(7),
(b)(14), (h), and note, 636(a), (h), and (m), and
note, 636m, 650, 657t, and note, 657u, and
note, 687(f), 696(3), and (7), and note, 697,
697a and e, and note; Public Law 116–260,
134 Stat. 1182.
§ 120.465
[Amended]
4. In § 120.465, amend paragraph (b)
by removing ‘‘$7,244’’ and adding in its
place ‘‘$7,805’’.
■
§ 120.1500
[Amended]
5. In § 120.1500, amend paragraph
(b)(2) by removing ‘‘$268,694’’ and
adding in its place ‘‘289,504’’.
■
PART 142—PROGRAM FRAUD CIVIL
REMEDIES ACT REGULATIONS
6. The authority citation for part 142
continues to read as follows:
■
Authority: 15 U.S.C. 634(b); 31 U.S.C.
3803(g)(2).
§ 142.1
[Amended]
7. In § 142.1, amend paragraph (b) by
removing ‘‘$12,537’’ and adding in its
place ‘‘$13,508’’.
■
PART 146—NEW RESTRICTIONS ON
LOBBYING
8. The authority citation for part 146
is revised to read as follows:
■
Authority: 31 U.S.C. 1352 and 15 U.S.C.
634(b)(6).
§ 146.400
[Amended]
9. Amend § 146.400 by removing
‘‘$22,021’’ wherever it appears and
adding in its place ‘‘$23,727’’ and by
removing ‘‘$220,213’’ wherever it
appears and adding in its place
‘‘$237,268’’.
■
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2023–16217 Filed 7–31–23; 8:45 am]
BILLING CODE 8026–09–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2022–1296; Project
Identifier MCAI–2022–00628–T; Amendment
39–22495; AD 2023–13–10]
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RIN 2120–AA64
Airworthiness Directives; Airbus SAS
Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
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The FAA is superseding
Airworthiness Directive (AD) 2020–20–
05 and AD 2022–09–16, which applied
to certain Airbus SAS Model A318
series; A319–111, –112, –113, –114,
–115, –131, –132, –133, –151N, and
–153N; A320 series; and A321 series
airplanes. AD 2020–20–05 and AD
2022–09–16 required revising the
existing maintenance or inspection
program, as applicable, to incorporate
new or more restrictive airworthiness
limitations. This AD was prompted by
a determination that new or more
restrictive airworthiness limitations are
necessary. This AD continues to require
the actions in AD 2022–09–16, and also
requires revising the existing
maintenance or inspection program, as
applicable, to incorporate additional
new or more restrictive airworthiness
limitations; as specified in a European
Union Aviation Safety Agency (EASA)
AD, which is incorporated by reference.
The FAA is issuing this AD to address
the unsafe condition on these products.
DATES: This AD is effective September 5,
2023.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of September 5, 2023
ADDRESSES:
AD Docket: You may examine the AD
docket at regulations.gov under Docket
No. FAA–2022–1296; 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, the mandatory
continuing airworthiness information
(MCAI), 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.
Material Incorporated by Reference:
• For material incorporated by
reference in this AD, contact EASA,
Konrad-Adenauer-Ufer 3, 50668
Cologne, Germany; telephone +49 221
8999 000; email ADs@easa.europa.eu;
website easa.europa.eu. You may find
this material on the EASA website at
ad.easa.europa.eu.
• You may view this material 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 in the AD docket at
regulations.gov under Docket No. FAA–
2022–1296.
FOR FURTHER INFORMATION CONTACT: Dan
Rodina, Aviation Safety Engineer, FAA,
SUMMARY:
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50005
1600 Stewart Avenue, Suite 410,
Westbury, NY 11590; telephone 206–
231–3225; email dan.rodina@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 to supersede AD 2020–20–05,
Amendment 39–21261 (85 FR 65197,
October 15, 2020) (AD 2020–20–05), and
AD 2022–09–16, Amendment 39–22036
(87 FR 31943, May 26, 2022) (AD 2022–
09–16). AD 2020–20–05 and AD 2022–
09–16 applied to certain Model A318–
111, –112, –121, and –122 airplanes;
Model A319–111, –112, –113, –114,
–115, –131, –132, –133, –151N, and
–153N airplanes; Model A320–211,
–212, –214, –216, –231, –232, –233,
–251N, –252N, –253N, –271N, –272N,
and –273N airplanes; and Model –111,
–112, –131, –211, –212, –213, –231,
–232, –251N, –251NX, –252N, –252NX,
–253N, –253NX, –271N, –271NX,
–272N, and –272NX airplanes. AD
2020–20–05 and AD 2022–09–16
required revising the existing
maintenance or inspection program, as
applicable, to incorporate new or more
restrictive airworthiness limitations.
The FAA issued AD 2020–20–05 and
AD 2022–09–16 to address fatigue
cracking, accidental damage, or
corrosion in principal structural
elements, which could result in reduced
structural integrity of the airplane.
The NPRM published in the Federal
Register on October 20, 2022 (87 FR
63712). The NPRM was prompted by
AD 2022–0085, dated May 12, 2022,
issued by EASA, which is the Technical
Agent for the Member States of the
European Union (EASA AD 2022–0085)
(also referred to as the MCAI). The
MCAI states that new and/or more
restrictive maintenance tasks have been
published.
You may examine the MCAI in the
AD docket at regulations.gov under
Docket No. FAA–2022–1296.
In the NPRM, the FAA proposed to
continue to require the actions in AD
2022–09–16 and require revising the
existing maintenance or inspection
program, as applicable, to incorporate
additional new or more restrictive
airworthiness limitations, as specified
in EASA AD 2022–0085. The NPRM
also proposed to require revising the
existing maintenance or inspection
program, as applicable, to incorporate
new or more restrictive airworthiness
limitations, as specified in EASA AD
2021–0140.
The FAA issued a supplemental
notice of proposed rulemaking (SNPRM)
to amend 14 CFR part 39 to supersede
AD 2020–20–05 and AD 2022–09–16.
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Agencies
[Federal Register Volume 88, Number 146 (Tuesday, August 1, 2023)]
[Rules and Regulations]
[Pages 50003-50005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16217]
[[Page 50003]]
=======================================================================
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SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245-AI01
Civil Monetary Penalties Inflation Adjustments
AGENCY: U.S. Small Business Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Small Business Administration (SBA) is amending its
regulations to adjust for inflation the amount of certain civil
monetary penalties that are within the jurisdiction of the agency.
These adjustments comply with the requirement in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to
make annual adjustments to the penalties.
DATES: This rule is effective August 1, 2023.
FOR FURTHER INFORMATION CONTACT: Arlene Embrey, 202-205-6976 or at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (the 2015 Inflation Adjustment
Act), Public Law 114-74, 129 Stat. 584, was enacted. This act amended
the Federal Civil Penalties Inflation Adjustment Act of 1990, Public
Law 101-410, 104 Stat. 890 (the 1990 Inflation Adjustment Act), to
improve the effectiveness of civil monetary penalties and to maintain
their deterrent effect. The 2015 Inflation Adjustment Act required
agencies to issue a final rule by August 1, 2016, to adjust the level
of civil monetary penalties with an initial ``catch-up'' adjustment and
to annually adjust these monetary penalties for inflation by January 15
of each subsequent year.
Based on the definition of a ``civil monetary penalty'' in the 1990
Inflation Adjustment Act, agencies are to make adjustments only to the
civil penalties that (i) are for a specific monetary amount as provided
by Federal law or have a maximum amount provided for by Federal law;
(ii) are assessed or enforced by an agency; and (iii) are enforced or
assessed in an administrative proceeding or a civil action in the
Federal courts. Therefore, penalties that are stated as a percentage of
an indeterminate amount or as a function of a violation (penalties that
encompass actual damages incurred) are not to be adjusted.
SBA published in the Federal Register an interim final rule with
its initial adjustments to the civil monetary penalties, including an
initial ``catch-up'' adjustment, on May 19, 2016, (81 FR 31489) with an
effective date of August 1, 2016. SBA published its first annual
adjustments to the monetary penalties on February 9, 2017 (82 FR 9967),
with an immediate effective date. SBA published its subsequent annual
adjustments for 2018 on February 21, 2018 (83 FR 7361), for 2019 on
April 1, 2019 (84 FR 12059), for 2020 on March 10, 2020 (85 FR 13725),
for 2021 on September 24, 2021 (86 FR 52955), and on May 11, 2022 (87
FR 28756), all with immediate effective dates. This rule will establish
the adjusted penalty amounts for 2023 with an immediate effective date
upon publication.
On December 15, 2022, the Office of Management and Budget (OMB)
published its annual guidance memorandum for 2023 civil monetary
penalties inflation adjustments (M-23-05, Implementation of Penalty
Inflation Adjustments for 2023, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015). The memorandum
provides the formula for calculating the annual adjustments based on
the Consumer Price Index for all Urban Consumers (CPI-U) for the month
of October preceding the adjustment, and specifically on the change
between the October CPI-U preceding the date of adjustment and the
prior year's CPI-U. Based on this methodology, the 2023 civil monetary
penalty inflation adjustment factor is 1.07745 (October 2022 CPI-U
(298.012)/October 2021 CPI-U (276.589). The annual adjustment amounts
identified in this rule were obtained by applying this multiplier of
1.07745 to those penalty amounts that were published in SBA's 2022
adjustments to civil monetary penalties at 87 FR 28756 (May 11, 2022).
II. Civil Monetary Penalties Adjusted by This Rule
This rule adjusts civil monetary penalties authorized by the Small
Business Act, the Small Business Investment Act of 1958 (SBI Act), the
Program Fraud Civil Remedies Act, and the Byrd Amendment to the Federal
Regulation of Lobbying Act. These penalties and the implementing
regulations are discussed below.
1. 13 CFR 107.665--Civil Penalties
SBA licenses, regulates, and provides financial assistance to
financial entities called small business investment companies (SBICs).
Pursuant to section 315 of the SBI Act, 15 U.S.C. 687g, SBA may impose
a penalty on any SBIC for each day that it fails to comply with SBA's
regulations or directives governing the filing of regular or special
reports. The penalty for non-compliance is incorporated in Sec.
107.665 of the SBIC program regulations.
This rule amends Sec. 107.665 to adjust the current civil penalty
from $291 to $314 per day of failure to file. The current civil penalty
of $291 was multiplied by the multiplier of 1.07745 to reach a product
of $314, rounded to the nearest dollar.
2. 13 CFR 120.465--Civil Penalty for Late Submission of Required
Reports
According to the regulations at Sec. 120.465, any SBA Supervised
Lender, as defined in 13 CFR 120.10, that violates a regulation or
written directive issued by the SBA Administrator regarding the filing
of any regular or special report is subject to the civil penalty amount
stated in Sec. 120.465(b) for each day the company fails to file the
report, unless the SBA Supervised Lender can show that there is
reasonable cause for its failure to file. This penalty is authorized by
section 23(j)(1) of the Small Business Act, 15 U.S.C. 650(j)(1).
This rule amends Sec. 120.465(b) to adjust the current civil
penalty to $7,805 per day of failure to file from $7,244 per day of
failure to file. The current civil penalty of $7,244 was multiplied by
the multiplier of 1.07745 to reach a product of $7,805, rounded to the
nearest dollar.
3. 13 CFR 120.1500--Types of Formal Enforcement Actions--SBA Lenders
According to the regulations at Sec. 120.1500(b), SBA may assess a
civil monetary penalty against a 7(a) Lender. In determining whether to
assess a civil monetary penalty and, if so, in what amount, SBA may
consider: the gravity (e.g., severity and frequency) of the violation;
the history of previous violations; the financial resources and good
faith of the 7(a) Lender; and any other matters as justice may require.
This penalty is authorized by the Small Business Act, 15 U.S.C.
657t(e)(2)(B).
This rule amends Sec. 120.1500(b)(2) to adjust the current civil
penalty from $268,694 to $289,504. The current civil penalty of
$268,694 was multiplied by the multiplier of 1.07745 to reach a product
of $289,504, rounded to the nearest dollar.
4. 13 CFR 142.1--Overview of Regulations
SBA has promulgated regulations at 13 CFR part 142 to implement the
civil penalties authorized by the Program Fraud Civil Remedies Act of
1986
[[Page 50004]]
(PFCRA), 31 U.S.C. 3801-3812. Under the current regulation at 13 CFR
142.1(b), a person who submits, or causes to be submitted, a false
claim or a false statement to SBA is subject to a civil penalty of not
more than $12,537, for each statement or claim.
This rule amends Sec. 142.1(b) to adjust the current civil penalty
from $12,537 to $13,508. The adjusted civil penalty amount was
calculated by multiplying the current civil penalty of $12,537 by the
multiplier of 1.07745 to reach a product of $13,508, rounded to the
nearest dollar.
5. 13 CFR 146.400--Penalties
SBA's regulations at 13 CFR part 146 govern lobbying activities by
recipients of Federal financial assistance. These regulations implement
the authority in 31 U.S.C. 1352 and impose penalties on any recipient
that fails to comply with certain requirements in the part.
Specifically, under Sec. 146.400(a) and (b), penalties may be imposed
on those who make prohibited expenditures or fail to file the required
disclosure forms or to amend such forms, if necessary.
This rule amends Sec. 146.400(a) and (b) to adjust the current
civil penalty amounts to ``not less than $23,727 and not more than
$237,268.'' The current civil penalty amounts of $22,021 and $220,213
were multiplied by the multiplier of 1.07745 to reach a product of
$23,727 and $237,268, respectively, rounded to the nearest dollar.
This rule also amends Sec. 146.400(e) to adjust the civil penalty
that may be imposed for a first-time violation of Sec. 146.400(a) and
(b) to $23,727 and to adjust the civil penalty that may be imposed for
second and subsequent offenses to ``not less than $23,727 and not more
than $237,268.'' The current civil penalty amounts of $22,021 and
$220,213 were multiplied by the multiplier of 1.077455 to reach a
product of $23,727 and $237,268, respectively, rounded to the nearest
dollar.
Compliance With Executive Orders 12866, 12988, 13132, and the
Administrative Procedure Act (5 U.S.C. 553), the Congressional Review
Act (5 U.S.C. 801-808), the Paperwork Reduction Act (44 U.S.C. Ch. 35)
and the Regulatory Flexibility Act (5 U.S.C. 601-612).
Executive Order 12866
The Office of Management and Budget has determined that this final
rule is not a significant regulatory action under Executive Order
12866.
Executive Order 12988
This action meets applicable standards set forth in sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order 13132, SBA determined that the
rule 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, this final rule has no federalism implications
warranting preparation of a federalism assessment.
The Administrative Procedure Act (APA)
The APA requires agencies generally to provide notice and an
opportunity for public comment before adopting a rule unless the agency
for good cause finds that notice and comment are impracticable,
unnecessary, or contrary to the public interest. 5 U.S.C. 553(b). The
APA also requires agencies to allow at least 30 days after publication
for a final rule to become effective ``except as otherwise provided by
the agency for good cause found and published with the rule.'' 5 U.S.C.
553(d). For the following reasons prior public notice, an opportunity
for public comment, and a delayed effective date are not required for
this rule. The 2015 Inflation Adjustment Act directs agencies to adjust
their civil penalties annually notwithstanding section 553 of the APA.
28 U.S.C. 2461 note, sec. 4(b)(2).
This exemption from the notice and comment, and delayed effective
date requirements of the APA, in effect provides SBA with the good
cause justification to promulgate this as a final rule that will become
effective immediately on the date it is published in the Federal
Register. Additionally, the 2015 Inflation Adjustment Act provides a
non-discretionary cost-of-living formula for making the annual
adjustment to the civil monetary penalties; SBA merely performs the
ministerial task of calculating the amount of the adjustments.
Therefore, even without the statutory exemption from the APA, notice
and comment would be unnecessary.
The Congressional Review Act (CRA)
The Office of Management and Budget determined that this rule is
not a major rule under 5 U.S.C. 804(2).
Paperwork Reduction Act
SBA has determined that this rule does not impose additional
reporting or recordkeeping requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires agencies to consider
the effect of their regulatory actions on small entities, including
small non-profit businesses, and small local governments. Pursuant to
the RFA, when an agency issues a rule, the agency must prepare an
analysis that describes whether the impact of the rule will have a
significant economic impact on a substantial number of such small
entities. However, the RFA requires such analysis only where notice and
comment rulemaking are required. As stated above, SBA has express
statutory authority to issue this rule without regard to the notice and
comment requirement of the APA. Since notice and comment is not
required before this rule is issued, SBA is not required to prepare a
regulatory analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan programs--business, Reporting and
recordkeeping requirements, Small businesses.
13 CFR Part 120
Loan programs--business, Reporting and recordkeeping requirements,
Small businesses.
13 CFR Part 142
Administrative practice and procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
PART 107--SMALL BUSINESS INVESTMENT COMPANIES
0
1. The authority citation for part 107 continues to read as follows:
Authority: 15 U.S.C. 681, 683, 687(c), 687b, 687d, 687g, 687m.
Sec. 107.665 [Amended]
0
2. In Sec. 107.665, remove ``$291'' and add in its place ``$314''.
PART 120--BUSINESS LOANS
0
3. The authority citation for part 120 continues to read as follows:
[[Page 50005]]
Authority: 15 U.S.C. 634(b)(6), (b)(7), (b)(14), (h), and note,
636(a), (h), and (m), and note, 636m, 650, 657t, and note, 657u, and
note, 687(f), 696(3), and (7), and note, 697, 697a and e, and note;
Public Law 116-260, 134 Stat. 1182.
Sec. 120.465 [Amended]
0
4. In Sec. 120.465, amend paragraph (b) by removing ``$7,244'' and
adding in its place ``$7,805''.
Sec. 120.1500 [Amended]
0
5. In Sec. 120.1500, amend paragraph (b)(2) by removing ``$268,694''
and adding in its place ``289,504''.
PART 142--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS
0
6. The authority citation for part 142 continues to read as follows:
Authority: 15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2).
Sec. 142.1 [Amended]
0
7. In Sec. 142.1, amend paragraph (b) by removing ``$12,537'' and
adding in its place ``$13,508''.
PART 146--NEW RESTRICTIONS ON LOBBYING
0
8. The authority citation for part 146 is revised to read as follows:
Authority: 31 U.S.C. 1352 and 15 U.S.C. 634(b)(6).
Sec. 146.400 [Amended]
0
9. Amend Sec. 146.400 by removing ``$22,021'' wherever it appears and
adding in its place ``$23,727'' and by removing ``$220,213'' wherever
it appears and adding in its place ``$237,268''.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2023-16217 Filed 7-31-23; 8:45 am]
BILLING CODE 8026-09-P