2024 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations, 1439-1441 [2024-00271]
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1439
Rules and Regulations
Federal Register
Vol. 89, No. 7
Wednesday, January 10, 2024
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–AA69
2024 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 2024 annual adjustments to the
Ethics in Government Act civil
monetary penalties.
DATES: This final rule is effective
January 15, 2024.
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:
SUMMARY:
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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 annual inflationary
adjustments to the civil monetary
penalties (CMPs) within their
jurisdiction, to be effective no later than
January 15 of each year.
The Ethics in Government Act, as
amended, Chapter 131, title 5 of the
United States Code, provides for five
CMPs.1 Specifically, the Ethics in
1 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
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15:42 Jan 09, 2024
Jkt 262001
Government 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. 13106(a)(1), 5
CFR 2634.701(b);
(2) knowing and willful breach of a
qualified trust by trustees and interested
parties, 5 U.S.C. 13104(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. 13104(f)(6)(C)(ii), 5 CFR
2634.702(b);
(4) misuse of a public report, 5 U.S.C.
13107(c)(2), 5 CFR 2634.703; and
(5) violation of outside employment/
activities provisions, 5 U.S.C. 13145(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 in Government Act
CMPs, and is issuing this rulemaking to
effectuate the 2024 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 2024, based on the CPI–
U for October 2023, not seasonally
adjusted, is 1.03241. To calculate the
2024 annual adjustment, agencies must
multiply the most recent penalty by the
1.03241 multiplier, and round to the
nearest dollar.
Applying the formula established by
the 2015 Act and OMB guidance, OGE
is amending the Ethics in Government
Act CMPs through this rulemaking to:
(1) Increase the three penalties
reflected in 5 CFR 2634.702(a),
overdue (see 5 U.S.C. 13106(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).
The late filing fee for public financial disclosure
reports that are more than 30 days overdue will
remain at its current amount of $200.
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2634.703, and 2636.104(a)—which were
previously adjusted to a maximum of
$23,727—to a maximum of $24,496;
(2) Increase the penalty reflected in 5
CFR 2634.702(b)—which was
previously adjusted to a maximum of
$11,864—to a maximum of $12,249; and
(3) Increase the penalty reflected in 5
CFR 2634.701(b)—which was
previously adjusted to a maximum of
$71,316—to a maximum of $73,627.
These adjusted penalty amounts will
apply to penalties for violations that
occurred after November 2, 2015, and
that are assessed after January 15, 2024
(the effective date of this final rule).
OGE will continue to make future
annual inflationary adjustments to the
Ethics in Government 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 Acting
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 Acting 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
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
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations
because this regulation does not contain
information collection requirements that
require approval of the Office of
Management and Budget.
PART 2634—EXECUTIVE BRANCH
FINANCIAL DISCLOSURE, QUALIFIED
TRUSTS, AND CERTIFICATES OF
DIVESTITURE
Unfunded Mandates Reform Act
■
For purposes of the Unfunded
Mandates Reform Act of 1995 (2 U.S.C.
chapter 25, 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.
1. The authority citation for part 2634
is revised to read as follows:
Authority: 5 U.S.C. ch. 131; 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.
*
*
*
*
*
(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 5 U.S.C.
13106(a)(1), 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
TABLE 1 TO § 2634.701(b)
As Acting 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
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Conflict of interests, Government
employees, Penalties.
Dated: January 4, 2024.
Shelley Finlayson,
Acting 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:
VerDate Sep<11>2014
15:42 Jan 09, 2024
Failure to file or falsifying
Jkt 262001
Date of violation
Penalty
Violation occurring between Sept. 14,
2007 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$50,000
73,627
*
*
*
*
3. Section 2634.702 is revised to read
as follows:
TABLE 1 TO § 2634.702(a)
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
24,496
(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 paragraph (b), as provided by 5
U.S.C. 13104(f)(6)(C)(ii) 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(b)
Date of violation
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
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$5,500
12,249
4. Section 2634.703 is revised 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 5
U.S.C. 13107(c)(1), 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 5 U.S.C. 13107(c)(2) 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(a)
§ 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
against the individual a civil monetary
penalty in any amount, not to exceed
the amounts set forth in Table 1 to this
paragraph (a), as provided by section 5
U.S.C. 13104(f)(6)(C)(i) and as adjusted
in accordance with the inflation
adjustment procedures prescribed in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
Penalty
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
24,496
(b) This remedy shall be in addition
to any other remedy available under
statutory or common law.
PART 2636—LIMITATIONS ON
OUTSIDE EARNED INCOME,
EMPLOYMENT AND AFFILIATIONS
FOR CERTAIN NONCAREER
EMPLOYEES
5. The authority citation for part 2636
is revised to read as follows:
■
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations
Authority: 5 U.S.C. ch. 131; 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; 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 the section heading and
paragraph (a) to read as follows:
■
§ 2636.104
action.
I. Legal Background
II. Regulatory Procedures
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.
13145(a), and a civil monetary penalty
of not more than the amounts set in
Table 1 to this this paragraph (a), 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(a)
Date of violation
Penalty
Violation occurring between Sept. 29,
1999 and Nov. 2, 2015 ..........................
Violation occurring after Nov. 2, 2015 ......
$11,000
24,496
*
*
*
*
*
[FR Doc. 2024–00271 Filed 1–9–24; 8:45 am]
BILLING CODE 6345–03–P
NATIONAL CREDIT UNION
ADMINISTRATION
12 CFR Part 747
RIN 3133–AF58
Civil Monetary Penalty Inflation
Adjustment
National Credit Union
Administration (NCUA).
ACTION: Final rule.
AGENCY:
The NCUA Board (Board) is
amending its regulations to adjust the
maximum amount of each civil
monetary penalty (CMP) within its
jurisdiction to account for inflation.
This action, including the amount of the
adjustments, is required under the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Debt Collection Improvement Act of
1996 and the Federal Civil Penalties
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SUMMARY:
VerDate Sep<11>2014
15:42 Jan 09, 2024
Jkt 262001
Inflation Adjustment Act Improvements
Act of 2015.
DATES: This final rule is effective
January 10, 2024.
FOR FURTHER INFORMATION CONTACT: Gira
Bose, Senior Staff Attorney, at 1775
Duke Street, Alexandria, VA 22314, or
telephone: (703) 518–6562.
SUPPLEMENTARY INFORMATION:
I. Legal Background
A. Statutory Requirements
Every Federal agency, including the
NCUA, is required by law to adjust its
maximum CMP amounts each year to
account for inflation. Prior to this being
an annual requirement, agencies were
required to adjust their CMPs at least
once every four years. The previous
four-year requirement stemmed from the
Debt Collection Improvement Act of
1996,1 which amended the Federal Civil
Penalties Inflation Adjustment Act of
1990.2
The current annual requirement stems
from the Bipartisan Budget Act of 2015,3
which contains the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
amendments).4 This legislation
provided for an initial ‘‘catch-up’’
adjustment of CMPs in 2016, followed
by annual adjustments. The catch-up
adjustment reset CMP maximum
amounts by setting aside the inflation
adjustments that agencies made in prior
years and instead calculated inflation
with reference to the year when each
CMP was enacted or last modified by
Congress. Agencies were required to
publish their catch-up adjustments in an
interim final rule by July 1, 2016, and
make them effective by August 1, 2016.5
The NCUA complied with these
requirements in a June 2016 interim
final rule, followed by a November 2016
final rule to confirm the adjustments as
final.6
The 2015 amendments also specified
how agencies must conduct annual
inflation adjustments after the 2016
catch-up adjustment. Following the
catch-up adjustment, agencies must
make the required adjustments and
publish them in the Federal Register by
1 Public Law 104–134, Sec. 31001(s), 110 Stat.
1321–373 (Apr. 26, 1996). The law is codified at 28
U.S.C. 2461 note.
2 Public Law 101–410, 104 Stat. 890 (Oct. 5,
1990), codified at 28 U.S.C. 2461 note.
3 Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015).
4 129 Stat. 599.
5 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov.
7, 2016).
PO 00000
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1441
January 15 each year.7 For 2017, the
NCUA issued an interim final rule on
January 6, 2017,8 followed by a final
rule issued on June 23, 2017.9 For each
of the years 2018 through 2023, the
NCUA issued a final rule to satisfy the
agency’s annual requirements.10 This
final rule satisfies the agency’s
requirement for the 2024 annual
adjustment.
The law provides that the adjustments
shall be made notwithstanding the
section of the Administrative Procedure
Act (APA) that requires prior notice and
public comment for agency
rulemaking.11 The 2015 amendments
also specify that each CMP maximum
must be increased by the percentage by
which the consumer price index for
urban consumers (CPI–U) 12 for October
of the year immediately preceding the
year the adjustment is made exceeds the
CPI–U for October of the prior year.13
Thus, for the adjustment to be made in
2024, an agency must compare the
October 2022 and October 2023 CPI–U
figures.
An annual adjustment under the 2015
amendments is not required if a CMP
has been amended in the preceding 12
months pursuant to other authority.
Specifically, the statute provides that an
agency is not required to make an
annual adjustment to a CMP if in the
preceding 12 months it has been
increased by an amount greater than the
annual adjustment required by the 2015
amendments.14 The NCUA did not
make any adjustments in the preceding
12 months pursuant to other authority.
Therefore, this rulemaking adjusts all of
the NCUA’s CMPs pursuant to the 2015
amendments.
B. Application to the 2024 Adjustments
and Office of Management and Budget
Guidance
This section applies the statutory
requirements and the Office of
Management and Budget’s (OMB)
guidance to the NCUA’s CMPs and sets
forth the Board’s calculation of the 2024
adjustments.
7 Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584,
599 (Nov. 2, 2015).
8 82 FR 7640 (Jan. 23, 2017).
9 82 FR 29710 (June 30, 2017).
10 83 FR 2029 (Jan. 16, 2018); 84 FR 2052 (Feb.
6, 2019); 85 FR 2009 (Jan. 14, 2020); 86 FR 933 (Jan.
7, 2021); 87 FR 377 (Jan. 5, 2022); 88 FR 1323 (Jan.
10, 2023).
11 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 599 (Nov. 2, 2015).
12 This index is published by the Department of
Labor, Bureau of Labor Statistics, and is available
at its website: https://www.bls.gov/cpi/.
13 Public Law 114–74, Sec. 701(b)(2)(B), 129 Stat.
584, 600 (Nov. 2, 2015).
14 Public Law 114–74, Sec. 701(b)(1), 129 Stat.
584, 600 (Nov. 2, 2015).
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Agencies
[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Rules and Regulations]
[Pages 1439-1441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00271]
========================================================================
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. 89, No. 7 / Wednesday, January 10, 2024 /
Rules and Regulations
[[Page 1439]]
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RIN 3209-AA69
2024 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 2024 annual adjustments
to the Ethics in Government Act civil monetary penalties.
DATES: This final rule is effective January 15, 2024.
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 annual inflationary adjustments
to the civil monetary penalties (CMPs) within their jurisdiction, to be
effective no later than January 15 of each year.
The Ethics in Government Act, as amended, Chapter 131, title 5 of
the United States Code, provides for five CMPs.\1\ Specifically, the
Ethics in Government 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\ 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
5 U.S.C. 13106(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). The late filing fee for public
financial disclosure reports that are more than 30 days overdue 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. 13106(a)(1), 5 CFR 2634.701(b);
(2) knowing and willful breach of a qualified trust by trustees and
interested parties, 5 U.S.C. 13104(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. 13104(f)(6)(C)(ii), 5 CFR 2634.702(b);
(4) misuse of a public report, 5 U.S.C. 13107(c)(2), 5 CFR
2634.703; and
(5) violation of outside employment/activities provisions, 5 U.S.C.
13145(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 in
Government Act CMPs, and is issuing this rulemaking to effectuate the
2024 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 2024, based on the CPI-U for October 2023, not
seasonally adjusted, is 1.03241. To calculate the 2024 annual
adjustment, agencies must multiply the most recent penalty by the
1.03241 multiplier, and round to the nearest dollar.
Applying the formula established by the 2015 Act and OMB guidance,
OGE is amending the Ethics in Government Act CMPs through this
rulemaking to:
(1) Increase the three penalties reflected in 5 CFR 2634.702(a),
2634.703, and 2636.104(a)--which were previously adjusted to a maximum
of $23,727--to a maximum of $24,496;
(2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was
previously adjusted to a maximum of $11,864--to a maximum of $12,249;
and
(3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was
previously adjusted to a maximum of $71,316--to a maximum of $73,627.
These adjusted penalty amounts will apply to penalties for
violations that occurred after November 2, 2015, and that are assessed
after January 15, 2024 (the effective date of this final rule). OGE
will continue to make future annual inflationary adjustments to the
Ethics in Government 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 Acting 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 Acting 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 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
[[Page 1440]]
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 25, 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 Acting 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.
Dated: January 4, 2024.
Shelley Finlayson,
Acting 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 is revised to read as follows:
Authority: 5 U.S.C. ch. 131; 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 5 U.S.C. 13106(a)(1), 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(b)
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015... $50,000
Violation occurring after Nov. 2, 2015........................ 73,627
------------------------------------------------------------------------
* * * * *
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 paragraph (a), as provided by
section 5 U.S.C. 13104(f)(6)(C)(i) 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(a)
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 24,496
------------------------------------------------------------------------
(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 paragraph (b), as provided by 5
U.S.C. 13104(f)(6)(C)(ii) 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(b)
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $5,500
Violation occurring after Nov. 2, 2015........................ 12,249
------------------------------------------------------------------------
0
4. Section 2634.703 is revised 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 5 U.S.C. 13107(c)(1), 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
5 U.S.C. 13107(c)(2) 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(a)
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 24,496
------------------------------------------------------------------------
(b) This remedy shall be in addition to any other remedy available
under statutory or common law.
PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES
0
5. The authority citation for part 2636 is revised to read as follows:
[[Page 1441]]
Authority: 5 U.S.C. ch. 131; 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; 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 the section heading and
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. 13145(a), and a civil
monetary penalty of not more than the amounts set in Table 1 to this
this paragraph (a), 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(a)
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015... $11,000
Violation occurring after Nov. 2, 2015........................ 24,496
------------------------------------------------------------------------
* * * * *
[FR Doc. 2024-00271 Filed 1-9-24; 8:45 am]
BILLING CODE 6345-03-P