Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment, 3877-3878 [2024-01085]

Download as PDF 3877 Rules and Regulations Federal Register Vol. 89, No. 14 Monday, January 22, 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 PERSONNEL MANAGEMENT 5 CFR Part 185 RIN 3206–AO65 Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment 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 rule, and (2) make subsequent annual adjustments for inflation not later than January 15 of each year. 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 2024 based on inflation since the last adjustment. These calculations were made based on guidance contained in Office of Management and Budget Memorandum M–24–07: Office of Personnel Management (OPM). ACTION: Final rule. I. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act 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 ........................... AGENCY: ddrumheller on DSK120RN23PROD with RULES1 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 January 22, 2024. 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: This final rule is being issued without prior public notice or opportunity for public comments and is effective upon publication in the Federal Register. 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 and to delay the effective date). 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 VerDate Sep<11>2014 16:22 Jan 19, 2024 Jkt 262001 calculating adjustments. Under this guidance, OPM has described how to identify 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 24–07 stated that the cost-of-living multiplier for calculating adjustments in 2024 was 1.03241. This multiplier is to be applied to the current level of civil monetary penalties for agencies. When OPM’s 2023 penalties of $13,508 are multiplied by 1.03241 and PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 2023 Inflation adjustment 2024 Inflation adjustment $13,508 13,508 $13,946 13,946 rounded to the nearest dollar, the resulting penalty amount is $13,946. III. Procedural Requirements A. Regulatory Review OPM has examined the impact of this rule as required by Executive Orders 12866, 13563, and 14094, which 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). OMB has determined that this rule is not a ‘‘significant regulatory action’’ under section 3(f) of Executive Order 12866, as amended by Executive Order 14094. B. Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)), 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 E:\FR\FM\22JAR1.SGM 22JAR1 3878 Federal Register / Vol. 89, No. 14 / Monday, January 22, 2024 / Rules and Regulations 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. 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. Office of Personnel Management. Kayyonne Marston, Federal Register Liaison. C. Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532) ■ PART 185—PROGRAM FRAUD CIVIL REMEDIES 1. The authority citation for part 185 continues to read as follows: 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 will not significantly or uniquely affect small governments. 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 ‘‘$13,508’’ and adding ‘‘$13,946’’ in its place. ■ [FR Doc. 2024–01085 Filed 1–19–24; 8:45 am] D. E.O. 12630, Takings BILLING CODE 6325–48–P This rule does not have takings implications. E. E.O. 13132, Federalism DEPARTMENT OF TRANSPORTATION 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. Federal Aviation Administration F. E.O. 12988, Civil Justice Reform Airworthiness Directives; Airbus SAS Airplanes 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. G. 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. ddrumheller on DSK120RN23PROD with RULES1 For the reasons set forth in the preamble, OPM amends 5 CFR part 185 as follows: H. Paperwork Reduction Act This document does not contain information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104–13. List of Subjects in 5 CFR Part 185 Claims, Fraud, Penalties. VerDate Sep<11>2014 16:22 Jan 19, 2024 Jkt 262001 14 CFR Part 39 [Docket No. FAA–2024–0033; Project Identifier MCAI–2023–01206–T; Amendment 39–22661; AD 2024–01–10] RIN 2120–AA64 Federal Aviation Administration (FAA), DOT. ACTION: Final rule; request for comments. AGENCY: The FAA is adopting a new airworthiness directive (AD) for all Airbus SAS Model A330–200, A330– 200 Freighter, A330–300, A330–800, A330–900, A340–500, and A340–600 series airplanes. This AD was prompted by a report of temporary loss of the flight director (FD) and autothrottle (A/ THR) on an airplane dispatched under the provisions of a master minimum equipment list (MMEL) item for fuel quantity indication (FQI). This AD requires revising the operator’s existing FAA-approved minimum equipment list (MEL), 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 February 6, 2024. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 6, 2024. SUMMARY: PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 The FAA must receive comments on this AD by March 7, 2024. 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 under Docket No. FAA–2024–0033; 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 street address for Docket Operations is listed above. Material Incorporated by Reference: • For material incorporated by reference in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone +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 service information 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 at regulations.gov under Docket No. FAA– 2024–0033. FOR FURTHER INFORMATION CONTACT: Vladimir A. Ulyanov, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone 206–231–3229; email vladimir.ulyanov@ faa.gov. SUPPLEMENTARY INFORMATION: Comments Invited The FAA invites you to send any written data, views, or arguments about this final rule. Send your comments to an address listed under ADDRESSES. Include ‘‘Docket No. FAA–2024–0033; Project Identifier MCAI–2023–01206–T’’ at the beginning of your comments. The most helpful comments reference a specific portion of the final rule, explain the reason for any recommended change, and include supporting data. E:\FR\FM\22JAR1.SGM 22JAR1

Agencies

Office of Personnel Management

[Federal Register Volume 89, Number 14 (Monday, January 22, 2024)]
[Rules and Regulations]
[Pages 3877-3878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01085]



========================================================================
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. 14 / Monday, January 22, 2024 / Rules 
and Regulations

[[Page 3877]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 185

RIN 3206-AO65


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 January 22, 2024.

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 rule, 
and (2) make subsequent annual adjustments for inflation not later than 
January 15 of each year. 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 2024 based on 
inflation since the last adjustment. These calculations were made based 
on guidance contained in Office of Management and Budget Memorandum M-
24-07:

----------------------------------------------------------------------------------------------------------------
                                                                               2023 Inflation    2024 Inflation
                CFR citation                    Description of the penalty       adjustment        adjustment
----------------------------------------------------------------------------------------------------------------
5 CFR 185.103(a)............................  Civil Penalty for False Claims           $13,508           $13,946
5 CFR 185.103(f)(2).........................  Civil Penalty for False                   13,508            13,946
                                               Statements.
----------------------------------------------------------------------------------------------------------------

    This final rule is being issued without prior public notice or 
opportunity for public comments and is effective upon publication in 
the Federal Register. 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 and to delay the effective 
date). 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 described how 
to identify 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 24-07 stated that the 
cost-of-living multiplier for calculating adjustments in 2024 was 
1.03241. This multiplier is to be applied to the current level of civil 
monetary penalties for agencies. When OPM's 2023 penalties of $13,508 
are multiplied by 1.03241 and rounded to the nearest dollar, the 
resulting penalty amount is $13,946.

III. Procedural Requirements

A. Regulatory Review

    OPM has examined the impact of this rule as required by Executive 
Orders 12866, 13563, and 14094, which 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). OMB has 
determined that this rule is not a ``significant regulatory action'' 
under section 3(f) of Executive Order 12866, as amended by Executive 
Order 14094.

B. Regulatory Flexibility Act and Small Business Regulatory Enforcement 
Fairness Act

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)), 
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

[[Page 3878]]

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. 
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. 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 will not 
significantly or uniquely affect small governments.

D. E.O. 12630, Takings

    This rule does not have takings implications.

E. 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.

F. 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.

G. 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.

H. Paperwork Reduction Act

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

List of Subjects in 5 CFR Part 185

    Claims, Fraud, Penalties.

Office of Personnel Management.
Kayyonne Marston,
Federal Register Liaison.

    For the reasons set forth in the preamble, OPM amends 5 CFR part 
185 as follows:

PART 185--PROGRAM FRAUD CIVIL REMEDIES

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

    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 ``$13,508'' and adding ``$13,946'' in its place.

[FR Doc. 2024-01085 Filed 1-19-24; 8:45 am]
BILLING CODE 6325-48-P

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