Inspection Service Authority; Civil Monetary Penalty Inflation Adjustment, 1460-1461 [2024-00313]

Agencies

• Postal Service

[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Rules and Regulations]
[Pages 1460-1461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00313]


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POSTAL SERVICE

39 CFR Parts 233 and 273


Inspection Service Authority; Civil Monetary Penalty Inflation 
Adjustment

AGENCY: Postal Service\TM\.

ACTION: Interim final rule.

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SUMMARY: This document updates postal regulations by implementing 
inflation adjustments to civil monetary penalties that may be imposed 
under consumer protection and mailability provisions enforced by the 
Postal Service pursuant to the Deceptive Mail Prevention and 
Enforcement Act and the Postal Accountability and Enhancement Act, as 
well as the civil monetary penalty that may be imposed by the Postal 
Service for false claims and statements under the Program Fraud Civil 
Remedies Act. These adjustments are required under the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This 
document includes the adjustments for 2024 for the statutory civil 
monetary penalties subject to the 2015 Act and all necessary updates 
authorized by the 2015 Act for regulatory civil monetary penalties.

DATES: Effective January 10, 2024.

FOR FURTHER INFORMATION CONTACT: Louis DiRienzo, (202) 268-2705, 
[email protected].

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (2015 Act), Public Law 114-74, 
129 Stat. 584, amended the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (1990 Act), Public Law 101-410, 104 Stat. 890 (28 U.S.C. 
2461 note), to improve the effectiveness of civil monetary penalties 
and to maintain their deterrent effect. Section 3 of the 1990 Act 
specifically includes the Postal Service in the definition of 
``agency'' subject to its provisions.
    Beginning in 2017, the 2015 Act requires the Postal Service to make 
an annual adjustment for inflation to civil penalties that meet the 
definition of ``civil monetary penalty'' under the 1990 Act. The Postal 
Service must make the annual adjustment for inflation and publish the 
adjustment in the Federal Register by January 15 of each year. Each 
penalty will be adjusted as instructed by the Office of Management and 
Budget (OMB) based on the Consumer Price Index (CPI-U) from the most 
recent October. OMB has furnished detailed instructions regarding the 
annual adjustment for 2024 in memorandum M-24-07, Implementation of 
Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (December 
19, 2023), https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf. This 
year, OMB has advised that an adjustment multiplier of 1.03241 will be 
used. The new penalty amount must be rounded to the nearest dollar.
    The 2015 Act allows the interim final rule and annual inflation 
adjustments to be published without prior public notice or opportunity 
for public comment.

Adjustments to Postal Service Civil Monetary Penalties

    Civil monetary penalties may be assessed for postal offenses under 
sections 106 and 108 of the Deceptive Mail Prevention and Enforcement 
Act, Public Law 106-168, 113 Stat. 1811, 1814 (see, 39 U.S.C. 3012(a), 
(c)(1), (d), and 3017(g)(2), (h)(1)(A)); and section 1008 of the Postal 
Accountability and Enhancement Act, Public Law 109-435, 120 Stat. 3259-
3261 (see, 39 U.S.C. 3018(c)(1)(A)). The statutory civil monetary 
penalties subject to the 2015 Act and the amount of each penalty after 
implementation of the annual adjustment for inflation are as follows:

39 U.S.C. 3012(a)--False Representations and Lottery Orders

    Under 39 U.S.C. 3005(a)(1)-(3), the Postal Service may issue 
administrative orders prohibiting persons from using the mail to obtain 
money through false representations or lotteries. Persons who evade, 
attempt to evade, or fail to comply with an order to stop such 
prohibited practices may be liable to the United States for a civil 
penalty under 39 U.S.C. 3012(a). The regulations implemented pursuant 
to this section currently impose a $85,637 penalty for each mailing 
less than 50,000 pieces, $171,269 for each mailing of 50,000 to 100,000 
pieces, and $17,128 for each additional 10,000 pieces above 100,000 not 
to exceed $3,425,405. The new penalties will be as follows: a $88,412 
penalty for each mailing less than 50,000 pieces, $176,820 for each 
mailing of 50,000 to 100,000 pieces, and $17,683 for each additional 
10,000 pieces above 100,000 not to exceed $3,536,422.

39 U.S.C. 3012(c)(1)--False Representation and Lottery Penalties in 
Lieu of or as Part of an Order

    In lieu of or as part of an order issued under 39 U.S.C. 
3005(a)(1)-(3), the Postal Service may assess a civil penalty. 
Currently, the amount of this penalty, set in the implementing 
regulations to 39 U.S.C. 3012(c)(1), is $42,818 for each mailing that 
is less than 50,000 pieces, $85,637 for each mailing of 50,000 to 
100,000 pieces, and an additional $8,564 for each additional 10,000 
pieces above 100,000 not to exceed $1,712,703. The new penalties will 
be $44,206 for each mailing that is less than 50,000 pieces, $88,412 
for each mailing of 50,000 to 100,000 pieces, and an additional $8,842 
for each additional 10,000 pieces above 100,000 not to exceed 
$1,768,212.

[[Page 1461]]

39 U.S.C. 3012(d)--Misleading References to the United States 
Government; Sweepstakes and Deceptive Mailings

    Persons may be liable to the United States for a civil penalty 
under 39 U.S.C. 3012(d) for sending certain deceptive mail matter 
described in 39 U.S.C. 3001((h)-(k), including:
     Solicitations making false claims of Federal Government 
connection or approval;
     Certain solicitations for the purchase of a product or 
service that may be obtained without cost from the Federal Government;
     Solicitations containing improperly prepared ``facsimile 
checks''; and
     Certain solicitations for ``skill contests'' and 
``sweepstakes'' sent to individuals who, in accordance with 39 U.S.C. 
3017(d), have requested that such materials not be mailed to them.
    Currently, under the implementing regulations, this penalty is not 
to exceed $17,128 for each mailing. The new penalty will be $17,683.

39 U.S.C. 3017(g)(2)--Commercial Use of Lists of Persons Electing Not 
To Receive Skill Contest or Sweepstakes Mailings

    Under 39 U.S.C. 3017(g)(2), the Postal Service may impose a civil 
penalty against a person who provides information for commercial use 
about individuals who, in accordance with 39 U.S.C. 3017(d), have 
elected not to receive certain sweepstakes and contest information. 
Currently, this civil penalty may not exceed $3,425,405 per violation, 
pursuant to the implementing regulations. The new penalty may not 
exceed $3,536,422 per violation.

39 U.S.C. 3017(h)(1)(A)--Reckless Mailing of Skill Contest or 
Sweepstakes Matter

    Currently, under 39 U.S.C. 3017(h)(1)(A) and its implementing 
regulations, any promoter who recklessly mails nonmailable skill 
contest or sweepstakes matter may be liable to the United States in the 
amount of $17,128 per violation for each mailing to an individual. The 
new penalty is $17,683 per violation.

39 U.S.C. 3018(c)(1)(A)--Hazardous Material

    Under 39 U.S.C. 3018(c)(1)(A), the Postal Service may impose a 
civil penalty payable into the Treasury of the United States on a 
person who knowingly mails nonmailable hazardous materials or fails to 
follow postal laws on mailing hazardous materials. Currently, this 
civil penalty is at least $371, but not more than $147,675 for each 
violation, pursuant to the implementing regulations. The new penalty is 
at least $383, but not more than $152,461 for each violation.

Adjustments to Regulatory Postal Service Civil Monetary Penalties

    In October 1986, Congress enacted the Program Fraud Civil Remedies 
Act, 31 U.S.C. 3801-3812. The Program Fraud Civil Remedies Act 
established an administrative remedy against any person who makes, or 
causes to be made, a false claim or written statement to certain 
Federal agencies. The Act requires each covered agency to promulgate 
rules and regulations necessary to implement its provisions. The Postal 
Service's implementing regulations are found in part 273 of title 39, 
Code of Federal Regulations. The current penalty amount is $13,508. The 
new penalty amount is $13,946.

List of Subjects

39 CFR Part 233

    Administrative practice and procedure, Banks, Banking, Credit, 
Crime, Infants and children, Law enforcement, Penalties, Privacy, 
Seizures and forfeitures.

39 CFR Part 273

    Administrative practice and procedure, Claims, Fraud, Penalties.

    For the reasons set out in the preamble, the Postal Service amends 
39 CFR parts 233 and 273 as follows:

PART 233--INSPECTION SERVICE AUTHORITY

0
1. The authority citation for part 233 continues to read as follows:

    Authority:  39 U.S.C. 101, 102, 202, 204, 401, 402, 403, 404, 
406, 410, 411, 1003, 3005(e)(1), 3012, 3017, 3018; 12 U.S.C. 3401-
3422; 18 U.S.C. 981, 983, 1956, 1957, 2254, 3061; 21 U.S.C. 881; 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-
208, 110 Stat. 3009; Secs. 106 and 108, Pub. L. 106-168, 113 Stat. 
1806 (39 U.S.C. 3012, 3017); Pub. L. 114-74, 129 Stat. 584.


Sec.  233.12   [Amended]

0
2. In Sec.  233.12:
0
a. In paragraph (a):
0
i. Remove ``$85,637'' and add in its place ``$88,412'';
0
ii. Remove ``$171,269'' and add in its place ``$176,820'';
0
iii. Remove ``$17,128'' and add in its place ``$17,683''; and
0
iv. remove ``$3,425,405'' and add in its place ``$3,536,422''.
0
b. In paragraph (b):
0
i. Remove ``$42,818'' and add in its place ``$44,206'';
0
ii. Remove ``$85,637'' and add in its place ``$88,412'';
0
iii. Remove ``$8,564'' and add in its place ``$8,842''; and
0
iv. Remove ``$1,712,703'' and add in its place ``$1,768,212''.
0
c. In paragraph (c)(4), remove ``$17,128'' and add in its place 
``$17,683''.
0
d. In paragraph (d), remove ``$3,425,405'' and add in its place 
``$3,536,422''.
0
e. In paragraph (e), remove ``$17,128'' and add in its place 
``$17,683''.
0
f. In paragraph (f), remove ``$371'' and add in its place ``$383'' and 
remove ``$147,675'' and add in its place ``$152,461''.

PART 273--ADMINISTRATION OF PROGRAM FRAUD CIVIL REMEDIES ACT

0
3. The authority citation for part 273 continues to read as follows:

    Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 401.


0
4. In Sec.  273.3:
0
a. In paragraph (a)(1)(iv):
0
i. Remove the second sentence.
0
ii. Remove ``$13,508'' and add in its place ``$13,946''.
0
b. Designate the undesignated paragraph following paragraph (b)(1)(ii) 
as paragraph (b)(1)(iii).
0
c. In paragraph (b)(1)(ii), add a sentence at the end of the paragraph.
    The addition reads as follows:


Sec.  273.3  Liability for false claims and statements.

* * * * *
    (b) * * *
    (1) * * *
    (ii) * * * As adjusted under Public Law 114-74, the penalty is 
$13,946 per claim.
* * * * *

Christopher Doyle,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2024-00313 Filed 1-9-24; 8:45 am]
BILLING CODE 7710-12-P