Civil Monetary Penalty Inflation Adjustment, 11163-11164 [2024-03015]
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11163
Rules and Regulations
Federal Register
Vol. 89, No. 31
Wednesday, February 14, 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.
MERIT SYSTEMS PROTECTION
BOARD
5 CFR Part 1201
Civil Monetary Penalty Inflation
Adjustment
AGENCY:
Merit Systems Protection
Board.
ACTION:
Final rule.
This final rule adjusts the
level of civil monetary penalties (CMPs)
in regulations maintained and enforced
by the Merit Systems Protection Board
(MSPB) with an annual adjustment
under the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Act) and Office of
Management and Budget (OMB)
guidance.
DATES: This final rule is effective on
February 14, 2024.
FOR FURTHER INFORMATION CONTACT: Gina
K. Grippando, Clerk of the Board, Merit
Systems Protection Board, 1615 M
Street NW, Washington, DC 20419;
phone: (202) 653–7200; fax: (202) 653–
7130; or email: mspb@mspb.gov.
SUPPLEMENTARY INFORMATION:
ddrumheller on DSK120RN23PROD with RULES1
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (the 1990 Act),
Public Law 101–410, provided for the
regular evaluation of CMPs by Federal
agencies. Periodic inflationary
adjustments of CMPs ensure that the
consequences of statutory violations
adequately reflect the gravity of such
offenses and that CMPs are properly
accounted for and collected by the
Federal Government. In April 1996, the
1990 Act was amended by the Debt
Collection Improvement Act of 1996
(the 1996 Act), Public Law 104–134,
requiring Federal agencies to adjust
their CMPs at least once every four
years. However, because inflationary
adjustments to CMPs were statutorily
capped at ten percent of the maximum
penalty amount, but only required to be
VerDate Sep<11>2014
16:56 Feb 13, 2024
Jkt 262001
calculated every four years, CMPs in
many cases did not correspond with the
true measure of inflation over the
preceding four-year period, leading to a
decline in the real value of the penalty.
To remedy this decline, the 2015 Act
(section 701 of Pub. L. 114–74) requires
agencies to adjust CMP amounts with
annual inflationary adjustments through
a rulemaking using a methodology
mandated by the legislation. The
purpose of these adjustments is to
maintain the deterrent effect of civil
penalties.
A civil monetary penalty is ‘‘any
penalty, fine, or other sanction’’ that: (1)
‘‘is for a specific amount’’ or ‘‘has a
maximum amount’’ under Federal law;
and (2) a Federal agency assesses or
enforces ‘‘pursuant to an administrative
proceeding or a civil action in the
Federal courts.’’ 28 U.S.C. 2461 note.
The MSPB is authorized to assess
CMPs pursuant to 5 U.S.C. 1215(a)(3)
and 5 U.S.C. 7326 in disciplinary
actions brought by the Special Counsel.
The corresponding MSPB regulation for
both CMPs is 5 CFR 1201.126(a). As
required by the 2015 Act, and pursuant
to guidance issued by OMB, MSPB is
now making an annual adjustment for
2024, according to the prescribed
formulas.
II. Calculation of Adjustment
The CMP listed in 5 U.S.C. 1215(a)(3)
was established in 1978 with the
enactment of the Civil Service Reform
Act of 1978 (CSRA), Public Law 95–454,
section 202(a), 92 Stat. 1121–30 (Oct.
13, 1978), and originally codified at 5
U.S.C. 1207(b). That CMP was last
amended by section 106 of the
Whistleblower Protection Enhancement
Act of 2012, Public Law 112–199, 12
Stat. 1468 (Nov. 27, 2012), now codified
at 5 U.S.C. 1215(a)(3), which provided
for a CMP ‘‘not to exceed $1,000.’’ The
CMP authorized in 5 U.S.C. 7326 was
established in 2012 by section 4 of the
Hatch Act Modernization Act of 2012
(Hatch Act), Public Law 112–230, 126
Stat. 1617 (Dec. 28, 2012), which
provided for a CMP ‘‘not to exceed
$1,000.’’ On January 24, 2023, MSPB
issued a final rule which increased the
maximum CMP allowed under both 5
U.S.C. 1215(a)(3) and 5 U.S.C. 7326 to
$1,288 for the year 2023. See 88 FR 4079
(Jan. 24, 2023). This increase reflected
the annual increase for the year 2023
mandated by the 2015 Act.
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
On December 19, 2023, OMB issued
guidance on calculating the annual
inflationary adjustment for 2024. See
Memorandum from Shalanda D. Young,
Director, OMB, to Heads of Executive
Departments and Agencies re:
Implementation of Penalty Inflation
Adjustments for 2024, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, M–24–07 (Dec. 19, 2023). Therein,
OMB notified agencies that the annual
adjustment multiplier for 2024, based
on the Consumer Price Index for All
Urban Consumers (CPI–U), is 1.03241
and that the 2024 annual adjustment
amount is obtained by multiplying the
2023 penalty amount by the 2024
annual adjustment multiplier, and
rounding to the nearest dollar.
Therefore, the new maximum penalty
under the CSRA and the Hatch Act is
$1,288 × 1.03241 = $1,330.00.
III. Effective Date of Penalties
The revised CMP amounts will go into
effect on February 14, 2024. All
violations for which CMPs are assessed
after the effective date of this rule will
be assessed at the adjusted penalty level
regardless of whether the violation
occurred before the effective date.
IV. Procedural Requirements
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), MSPB has
determined 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
Congress has specifically exempted
agencies from these requirements when
implementing the 2015 Act. The 2015
Act explicitly requires 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. It is also
in the public interest that the adjusted
rates for CMPs under the CSRA and the
Hatch Act become effective as soon as
possible to maintain their effective
deterrent effect.
B. Regulatory Impact Analysis:
Executive Order 12866
The MSPB has determined that this is
not a significant regulatory action under
E:\FR\FM\14FER1.SGM
14FER1
11164
Federal Register / Vol. 89, No. 31 / Wednesday, February 14, 2024 / Rules and Regulations
E.O. 12866. Therefore, no regulatory
impact analysis is required.
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires an agency to prepare a
regulatory flexibility analysis for rules
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. The RFA applies only to rules
for which an agency is required to first
publish a proposed rule. See 5 U.S.C.
603(a) and 604(a). As discussed above,
the 2015 Act does not require agencies
to first publish a proposed rule when
adjusting CMPs within their
jurisdiction. Thus, the RFA does not
apply to this final rule.
D. Paperwork Reduction Act
This document does not contain
information collection requirements
subject to the Paperwork Reduction Act
of 1995, Public Law 104–13 (44 U.S.C.
Chapter 35).
E. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801, et seq.), the Office of
Information and Regulatory Affairs
designated this rule as not a ‘‘major
rule’’ as defined by 5 U.S.C. 804(2).
List of Subjects in 5 CFR Part 1201
Administrative practice and
procedure, Civil rights, Government
employees.
For the reasons set forth above, 5 CFR
part 1201 is amended as follows:
PART 1201—PRACTICES AND
PROCEDURES
1. The authority citation for part 1201
continues to read as follows:
■
Authority: 5 U.S.C. 1204, 1305, and 7701,
and 38 U.S.C. 4331, unless otherwise noted.
§ 1201.126
[Amended]
2. Section 1201.126 is amended in
paragraph (a) by removing ‘‘$1,288’’ and
adding in its place ‘‘$1,330.’’
■
ddrumheller on DSK120RN23PROD with RULES1
Jennifer Everling,
Deputy Clerk of the Board.
[FR Doc. 2024–03015 Filed 2–13–24; 8:45 am]
BILLING CODE 7400–01–P
VerDate Sep<11>2014
16:56 Feb 13, 2024
Jkt 262001
14 CFR Part 39
[Docket No. FAA–2023–1219; Project
Identifier MCAI–2023–00004–T; Amendment
39–22651; AD 2023–26–08]
RIN 2120–AA64
Airworthiness Directives; Bombardier,
Inc. Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for certain
Bombardier, Inc., Model CL–600–2B16
(604 Variant) airplanes. This AD was
prompted by a determination that a
combination of system faults and
procedural actions will cause the
ground spoilers to deploy in the air.
This AD requires revising the existing
airplane flight manual (AFM) to add
revised procedures. The FAA is issuing
this AD to address the unsafe condition
on these products.
DATES: This AD is effective March 20,
2024.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of March 20, 2024.
ADDRESSES:
AD Docket: You may examine the AD
docket at regulations.gov under Docket
No. FAA–2023–1219; 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 service information identified
in this final rule, contact Bombardier
Business Aircraft Customer Response
Center, 400 Coˆte-Vertu Road West,
Dorval, Que´bec H4S 1Y9, Canada;
telephone 514–855–2999; email:
ac.yul@aero.bombardier.com; website:
bombardier.com.
• 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
SUMMARY:
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
regulations.gov under Docket No. FAA–
2023–1219.
FOR FURTHER INFORMATION CONTACT:
William Reisenauer, Aviation Safety
Engineer, FAA, 1600 Stewart Avenue,
Suite 410, Westbury, NY 11590;
telephone 516–228–7300; email 9-avsnyaco-cos@faa.gov.
SUPPLEMENTARY INFORMATION:
Background
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would
apply to certain Bombardier, Inc., Model
CL–600–2B16 (604 Variant) airplanes.
The NPRM published in the Federal
Register on July 5, 2023 (88 FR 42886).
The NPRM was prompted by AD CF–
2023–01, dated January 4, 2023, issued
by Transport Canada (hereafter referred
to as the MCAI), which is the aviation
authority for Canada. The MCAI states
that, during an in-service event, a
combination of system faults and
procedural actions caused the ground
spoilers to deploy in the air. During this
event, the WOW [weight-on-wheels]
INPUT Caution message had posted on
the engine indication and crew alerting
system (EICSA) after takeoff. The WOW
INPUT message persisted, even after the
flightcrew executed the WOW INPUT
Quick Reference Handbook (QRH)
procedure. During this time, the GND
SPLRS [ground spoilers] NOT ARMED
message also posted, and the flightcrew
consequently manually armed the
ground spoilers as required by
procedure. An investigation by
Bombardier, Inc., revealed that a fault
occurred in the proximity sensor
electronic unit (PSEU), which
erroneously indicated ON GROUND
while the airplane was in the air.
In the NPRM, the FAA proposed to
require revision of the existing AFM to
add revised procedures. The FAA is
issuing this AD to address possible
ground spoiler deployment leading to
reduced controllability of the airplane,
or excessive loss of altitude on final
approach.
You may examine the MCAI in the
AD docket at regulations.gov under
Docket No. FAA–2023–1219.
Discussion of Final Airworthiness
Directive
Comments
The FAA received one comment from
a commenter who supported the NPRM
without change.
The FAA received additional
comments from Bombardier. The
following presents the comments
received and the FAA’s responses.
E:\FR\FM\14FER1.SGM
14FER1
Agencies
[Federal Register Volume 89, Number 31 (Wednesday, February 14, 2024)]
[Rules and Regulations]
[Pages 11163-11164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-03015]
========================================================================
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. 31 / Wednesday, February 14, 2024 /
Rules and Regulations
[[Page 11163]]
MERIT SYSTEMS PROTECTION BOARD
5 CFR Part 1201
Civil Monetary Penalty Inflation Adjustment
AGENCY: Merit Systems Protection Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adjusts the level of civil monetary penalties
(CMPs) in regulations maintained and enforced by the Merit Systems
Protection Board (MSPB) with an annual adjustment under the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the
2015 Act) and Office of Management and Budget (OMB) guidance.
DATES: This final rule is effective on February 14, 2024.
FOR FURTHER INFORMATION CONTACT: Gina K. Grippando, Clerk of the Board,
Merit Systems Protection Board, 1615 M Street NW, Washington, DC 20419;
phone: (202) 653-7200; fax: (202) 653-7130; or email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990 (the
1990 Act), Public Law 101-410, provided for the regular evaluation of
CMPs by Federal agencies. Periodic inflationary adjustments of CMPs
ensure that the consequences of statutory violations adequately reflect
the gravity of such offenses and that CMPs are properly accounted for
and collected by the Federal Government. In April 1996, the 1990 Act
was amended by the Debt Collection Improvement Act of 1996 (the 1996
Act), Public Law 104-134, requiring Federal agencies to adjust their
CMPs at least once every four years. However, because inflationary
adjustments to CMPs were statutorily capped at ten percent of the
maximum penalty amount, but only required to be calculated every four
years, CMPs in many cases did not correspond with the true measure of
inflation over the preceding four-year period, leading to a decline in
the real value of the penalty. To remedy this decline, the 2015 Act
(section 701 of Pub. L. 114-74) requires agencies to adjust CMP amounts
with annual inflationary adjustments through a rulemaking using a
methodology mandated by the legislation. The purpose of these
adjustments is to maintain the deterrent effect of civil penalties.
A civil monetary penalty is ``any penalty, fine, or other
sanction'' that: (1) ``is for a specific amount'' or ``has a maximum
amount'' under Federal law; and (2) a Federal agency assesses or
enforces ``pursuant to an administrative proceeding or a civil action
in the Federal courts.'' 28 U.S.C. 2461 note.
The MSPB is authorized to assess CMPs pursuant to 5 U.S.C.
1215(a)(3) and 5 U.S.C. 7326 in disciplinary actions brought by the
Special Counsel. The corresponding MSPB regulation for both CMPs is 5
CFR 1201.126(a). As required by the 2015 Act, and pursuant to guidance
issued by OMB, MSPB is now making an annual adjustment for 2024,
according to the prescribed formulas.
II. Calculation of Adjustment
The CMP listed in 5 U.S.C. 1215(a)(3) was established in 1978 with
the enactment of the Civil Service Reform Act of 1978 (CSRA), Public
Law 95-454, section 202(a), 92 Stat. 1121-30 (Oct. 13, 1978), and
originally codified at 5 U.S.C. 1207(b). That CMP was last amended by
section 106 of the Whistleblower Protection Enhancement Act of 2012,
Public Law 112-199, 12 Stat. 1468 (Nov. 27, 2012), now codified at 5
U.S.C. 1215(a)(3), which provided for a CMP ``not to exceed $1,000.''
The CMP authorized in 5 U.S.C. 7326 was established in 2012 by section
4 of the Hatch Act Modernization Act of 2012 (Hatch Act), Public Law
112-230, 126 Stat. 1617 (Dec. 28, 2012), which provided for a CMP ``not
to exceed $1,000.'' On January 24, 2023, MSPB issued a final rule which
increased the maximum CMP allowed under both 5 U.S.C. 1215(a)(3) and 5
U.S.C. 7326 to $1,288 for the year 2023. See 88 FR 4079 (Jan. 24,
2023). This increase reflected the annual increase for the year 2023
mandated by the 2015 Act.
On December 19, 2023, OMB issued guidance on calculating the annual
inflationary adjustment for 2024. See Memorandum from Shalanda D.
Young, Director, OMB, to Heads of Executive Departments and Agencies
re: Implementation of Penalty Inflation Adjustments for 2024, Pursuant
to the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015, M-24-07 (Dec. 19, 2023). Therein, OMB notified agencies
that the annual adjustment multiplier for 2024, based on the Consumer
Price Index for All Urban Consumers (CPI-U), is 1.03241 and that the
2024 annual adjustment amount is obtained by multiplying the 2023
penalty amount by the 2024 annual adjustment multiplier, and rounding
to the nearest dollar. Therefore, the new maximum penalty under the
CSRA and the Hatch Act is $1,288 x 1.03241 = $1,330.00.
III. Effective Date of Penalties
The revised CMP amounts will go into effect on February 14, 2024.
All violations for which CMPs are assessed after the effective date of
this rule will be assessed at the adjusted penalty level regardless of
whether the violation occurred before the effective date.
IV. Procedural Requirements
A. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), MSPB has determined 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 Congress has specifically
exempted agencies from these requirements when implementing the 2015
Act. The 2015 Act explicitly requires 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. It is also in the public interest that the
adjusted rates for CMPs under the CSRA and the Hatch Act become
effective as soon as possible to maintain their effective deterrent
effect.
B. Regulatory Impact Analysis: Executive Order 12866
The MSPB has determined that this is not a significant regulatory
action under
[[Page 11164]]
E.O. 12866. Therefore, no regulatory impact analysis is required.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for rules unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. The RFA applies only to rules for
which an agency is required to first publish a proposed rule. See 5
U.S.C. 603(a) and 604(a). As discussed above, the 2015 Act does not
require agencies to first publish a proposed rule when adjusting CMPs
within their jurisdiction. Thus, the RFA does not apply to this final
rule.
D. Paperwork Reduction Act
This document does not contain information collection requirements
subject to the Paperwork Reduction Act of 1995, Public Law 104-13 (44
U.S.C. Chapter 35).
E. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule'' as defined by 5 U.S.C. 804(2).
List of Subjects in 5 CFR Part 1201
Administrative practice and procedure, Civil rights, Government
employees.
For the reasons set forth above, 5 CFR part 1201 is amended as
follows:
PART 1201--PRACTICES AND PROCEDURES
0
1. The authority citation for part 1201 continues to read as follows:
Authority: 5 U.S.C. 1204, 1305, and 7701, and 38 U.S.C. 4331,
unless otherwise noted.
Sec. 1201.126 [Amended]
0
2. Section 1201.126 is amended in paragraph (a) by removing ``$1,288''
and adding in its place ``$1,330.''
Jennifer Everling,
Deputy Clerk of the Board.
[FR Doc. 2024-03015 Filed 2-13-24; 8:45 am]
BILLING CODE 7400-01-P