Civil Monetary Penalties Inflation Adjustments, 48132-48135 [2024-12282]
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Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Rules and Regulations
‘‘For the reasons discussed in the
preamble, APHIS amends 9 CFR part 11
as follows:’’
PART 11 [CORRECTED]
2. On page 39244, in the second
column, preceding the part 11 heading,
add amendatory instruction 1 for part 11
to read as follows:
‘‘■ 1. Effective February 1, 2025,
revise part 11 to read as follows:’’
■
§ 11.19
[Corrected]
3. On page 39251, in the third column,
above the signature block, add
amendatory instruction 2 for § 11.19 and
the accompanying regulatory text to
read as follows:
‘‘■ 2. Effective June 7, 2024, add
§ 11.19 to read as follows:
■
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§ 11.19 Authorization and training of Horse
Protection Inspectors.
APHIS will authorize HPIs after the
successful completion of training by
APHIS. The management of any horse
show, horse exhibition, horse sale, or
horse auction may appoint HPIs holding
a current authorization to detect and
diagnose horses that are sore or to
otherwise inspect horses and any
records pertaining to such horses for the
purposes of determining compliance
with the Act and regulations.
(a) Authorization process. All persons
wishing to become HPIs must submit an
application to APHIS. Guidance
regarding submitting applications is
located on the APHIS Horse Protection
website. Applicants will be required to
show that they meet the Tier 1
qualifications in paragraph (a)(1) of this
section in order for the application to be
evaluated. If the applicant meets the
qualifications in paragraph (a)(1) of the
section, the applicant will be further
evaluated based on the Tier 2
qualifications in paragraph (a)(2) of this
section. In order for APHIS to consider
the applicant as a candidate to be an
HPI, all qualifications must be met.
(1) Tier 1 qualifications. The
applicant must be a veterinarian, except
that veterinary technicians and persons
employed by State and local
government agencies to enforce laws or
regulations pertaining to animal welfare
may also be authorized if APHIS
determines that there is an insufficient
pool of veterinarians among current
HPIs and applicants to be HPIs.
(2) Tier 2 qualifications. (i) The
applicant must demonstrate sufficient
knowledge and experience of equine
husbandry and science and applicable
principles of equine science, welfare,
care, and health for APHIS to determine
that the applicant can consistently
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identify equine soring and soring
practices.
(ii) The applicant must not have been
found to have violated any provision of
the Act or the regulations in this part
occurring after July 13, 1976, or have
been assessed any civil penalty, or have
been the subject of a disqualification
order in any proceeding involving an
alleged violation of the Act or
regulations occurring after July 13, 1976.
(iii) The applicant must not have been
disqualified by the Secretary from
performing diagnosis, detection, and
inspection under the Act.
(iv) The applicant must not have
acted in a manner that calls into
question the applicant’s honesty,
professional integrity, reputation,
practices, and reliability relative to
possible authorization as an HPI. APHIS
will base this on a review of:
(A) Criminal conviction records, if
any, indicating that the applicant may
lack the honesty, integrity, and
reliability to appropriately and
effectively perform HPI duties.
(B) Official records of the person’s
actions while participating in Federal,
State, or local veterinary programs when
those actions reflect on the honesty,
reputation, integrity, and reliability of
the applicant.
(C) Judicial determinations in any
type of litigation adversely reflecting on
the honesty, reputation, integrity, and
reliability of the applicant.
(D) Any other evidence reflecting on
the honesty, reputation, integrity, and
reliability of the applicant.
(b) Training. All applicants selected
as candidates must complete a formal
training program administered by
APHIS prior to authorization. Continual
training as APHIS determines to be
necessary is a condition of maintaining
authorization to inspect horses.
(c) Listing. APHIS will maintain a list
of all HPIs on the APHIS Horse
Protection website. The list is also
available by contacting APHIS by email
or U.S. mail.
Note 1 to paragraph (c): Send email to
horseprotection@usda.gov, or U.S. mail to
USDA/APHIS/AC, 2150 Centre Ave.,
Building B, Mailstop 3W11, Fort Collins, CO
80526–8117.
(d) Denial of an HPI application and
disqualification of HPIs—(1) Denial.
APHIS may deny an application for
authorization of an HPI, or deny
continuation in the program to an HPI
trainee not yet authorized, for any of the
reasons outlined in paragraph (a) of this
section. In such instances, the applicant
shall be provided written notification of
the grounds for the denial. The
applicant may appeal the decision, in
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writing, within 30 days after receiving
the written denial notice. The appeal
must state all of the facts and reasons
that the person wants the Administrator
to consider in deciding the appeal. As
soon as practicable, the Administrator
will grant or deny the appeal, in writing,
stating the reasons for the decision.
(2) Disqualification. APHIS may
permanently disqualify any HPI who
fails to inspect horses in accordance
with the procedures prescribed by
APHIS or otherwise fails to perform
duties necessary for APHIS to enforce
the Act and regulations, after notice and
opportunity for a hearing. Requests for
hearings and the hearings themselves
shall be in accordance with the Uniform
Rules of Practice for the Department of
Agriculture in subpart H of 7 CFR part
1.
(Approved by the Office of Management and
Budget under control number 0579–0490)
Done in Washington, DC, May 31, 2024.
Jennifer Moffitt,
Under Secretary for Marketing and Regulatory
Programs.
[FR Doc. 2024–12315 Filed 6–4–24; 8:45 am]
BILLING CODE 3410–34–P
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 June 5,
2024.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Arlene Embrey, 202–205–6976 or at
arlene.embrey@sba.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
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Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Rules and Regulations
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 ‘‘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), for
2022 on May 11, 2022 (87 FR 28756),
and for 2023 on August 1, 2023 (88 FR
50003) all with immediate effective
dates. This rule will establish the
adjusted penalty amounts for 2024 with
an immediate effective date upon
publication.
On December 19, 2023, the Office of
Management and Budget (OMB)
published its annual guidance
memorandum for 2024 civil monetary
penalties inflation adjustments (M–24–
07, Implementation of Penalty Inflation
Adjustments for 2024 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
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(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 2024
civil monetary penalty inflation
adjustment factor is 1.03241 (October
2023 CPI–U (307.671)/October 2022
CPI–U (298.012)). The annual
adjustment amounts identified in this
rule were obtained by applying this
multiplier of 1.03241 to those penalty
amounts that were published in SBA’s
2023 adjustments to civil monetary
penalties at 88 FR 50003 (August 1,
2023).
II. Civil Money 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 § 107.665 of the SBIC
program regulations.
This rule amends § 107.665 to adjust
the current civil penalty from $314 to
$324 per day of failure to file. The
current civil penalty of $314 was
multiplied by the multiplier of 1.03241
to reach a product of $324, 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 $8,058
per day of failure to file from $7,805 per
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48133
day of failure to file. The current civil
penalty of $7,805 was multiplied by the
multiplier of 1.03241 to reach a product
of $8,058, rounded to the nearest dollar.
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
$289,504 to $298,887. The current civil
penalty of $289,504 was multiplied by
the multiplier of 1.03241 to reach a
product of $298,887, 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
(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 $13,508
for each statement or claim.
This rule amends § 142.1(b) to adjust
the current civil penalty from $13,508 to
$13,946. The adjusted civil penalty
amount was calculated by multiplying
the current civil penalty of $13,508 by
the multiplier of 1.03241 to reach a
product of $13,946, 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 § 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 $24,496 and
not more than $244,958.’’ The current
civil penalty amounts of $23,727 and
$237,268 were multiplied by the
multiplier of 1.03241 to reach a product
of $24,496 and $244,958, respectively,
rounded to the nearest dollar.
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Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Rules and Regulations
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 $24,496 and to
adjust the civil penalty that may be
imposed for second and subsequent
offenses to ‘‘not less than $24,496 and
not more than $244,958.’’ The current
civil penalty amounts of $23,327 and
$237,268 were multiplied by the
multiplier of 1.03241 to reach a product
of $24,496 and $244,958, 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.
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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
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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).
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 is 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
Investment companies, Loan
programs—business, Reporting and
recordkeeping requirements, Small
businesses.
13 CFR Part 120
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
Frm 00004
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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. 662, 681–687, 687b–
h, 687k–m.
§ 107.665
[Amended]
2. In § 107.665, remove ‘‘$314’’ and
add in its place ‘‘$324’’.
■
PART 120—BUSINESS LOANS
3. The authority citation for part 120
continues to read as follows:
■
Authority: 15 U.S.C. 634(b) (6), (b) (7), (b)
(14), (h), and note, 636(a), (h) and (m), 650,
687(f), 696(3) and (7), and 697(a) and (e); sec.
521, Pub. L. 114–113, 129 Stat. 2242; sec.
328(a), Pub. L. 116–260, 134 Stat. 1182.
§ 120.465
[Amended]
4. In § 120.465, amend paragraph (b)
by removing ‘‘$7,805’’ and adding in its
place ‘‘$8,058’’.
■
§ 120.1500
[Amended]
5. In § 120.1500, amend paragraph
(b)(2) by removing ‘‘289,504’’ and
adding in its place ‘‘298,887’’.
■
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 ‘‘$13,508’’ and adding in its
place ‘‘$13,946’’.
■
PART 146—NEW RESTRICTIONS ON
LOBBYING
13 CFR Part 107
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8. The authority citation for part 146
continues to read as follows:
■
Authority: 31 U.S.C. 1352 and 15 U.S.C.
634(b)(6).
§ 146.400
[Amended]
9. In § 146.400, remove ‘‘$23,727’’
wherever it appears and add in its place
■
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Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Rules and Regulations
‘‘$24,496’’ and remove ‘‘$237,268’’
wherever it appears and add in its place
‘‘$244,958’’.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024–12282 Filed 6–4–24; 8:45 am]
BILLING CODE 8026–09–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 97
[Docket No. 31549; Amdt. No. 4116]
Standard Instrument Approach
Procedures, and Takeoff Minimums
and Obstacle Departure Procedures;
Miscellaneous Amendments
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This rule amends, suspends,
or removes Standard Instrument
Approach Procedures (SIAPs) and
associated Takeoff Minimums and
Obstacle Departure Procedures for
operations at certain airports. These
regulatory actions are needed because of
the adoption of new or revised criteria,
or because of changes occurring in the
National Airspace System, such as the
commissioning of new navigational
facilities, adding new obstacles, or
changing air traffic requirements. These
changes are designed to provide for the
safe and efficient use of the navigable
airspace and to promote safe flight
operations under instrument flight rules
at the affected airports.
DATES: This rule is effective June 5,
2024. The compliance date for each
SIAP, associated Takeoff Minimums,
and ODP is specified in the amendatory
provisions.
The incorporation by reference of
certain publications listed in the
regulations is approved by the Director
of the Federal Register as of June 5,
2024.
SUMMARY:
Availability of matter
incorporated by reference in the
amendment is as follows:
ADDRESSES:
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For Examination
1. U.S. Department of Transportation,
Docket Ops–M30, 1200 New Jersey
Avenue SE, West Bldg., Ground Floor,
Washington, DC 20590–0001;
2. The FAA Air Traffic Organization
Service Area in which the affected
airport is located;
3. The office of Aeronautical
Information Services, 6500 South
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MacArthur Blvd., Oklahoma City, OK
73169 or,
4. The National Archives and Records
Administration (NARA).
For information on the availability of
this material at NARA, visit
www.archives.gov/federal-register/cfr/
ibr-locations or email fr.inspection@
nara.gov.
Availability
All SIAPs and Takeoff Minimums and
ODPs are available online free of charge.
Visit the National Flight Data Center
online at nfdc.faa.gov to register.
Additionally, individual SIAP and
Takeoff Minimums and ODP copies may
be obtained from the FAA Air Traffic
Organization Service Area in which the
affected airport is located.
FOR FURTHER INFORMATION CONTACT:
Thomas J. Nichols, Flight Procedures
and Airspace Group, Flight
Technologies and Procedures Division,
Flight Standards Service, Federal
Aviation Administration. Mailing
Address: FAA Mike Monroney
Aeronautical Center, Flight Procedures
and Airspace Group, 6500 South
MacArthur Blvd., STB Annex, Bldg. 26,
Room 217, Oklahoma City, OK 73099.
Telephone: (405) 954–1139.
SUPPLEMENTARY INFORMATION: This rule
amends 14 CFR part 97 by amending the
referenced SIAPs. The complete
regulatory description of each SIAP is
listed on the appropriate FAA Form
8260, as modified by the National Flight
Data Center (NFDC)/Permanent Notice
to Air Missions (P–NOTAM), and is
incorporated by reference under 5
U.S.C. 552(a), 1 CFR part 51, and 14
CFR 97.20. The large number of SIAPs,
their complex nature, and the need for
a special format make their verbatim
publication in the Federal Register
expensive and impractical. Further,
pilots do not use the regulatory text of
the SIAPs, but refer to their graphic
depiction on charts printed by
publishers of aeronautical materials.
Thus, the advantages of incorporation
by reference are realized and
publication of the complete description
of each SIAP contained on FAA form
documents is unnecessary. This
amendment provides the affected CFR
sections, and specifies the SIAPs and
Takeoff Minimums and ODPs with their
applicable effective dates. This
amendment also identifies the airport
and its location, the procedure and the
amendment number.
Availability and Summary of Material
Incorporated by Reference
The material incorporated by
reference is publicly available as listed
in the ADDRESSES section.
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48135
The material incorporated by
reference describes SIAPs, Takeoff
Minimums and ODPs as identified in
the amendatory language for part 97 of
this final rule.
The Rule
This amendment to 14 CFR part 97 is
effective upon publication of each
separate SIAP and Takeoff Minimums
and ODP as amended in the transmittal.
For safety and timeliness of change
considerations, this amendment
incorporates only specific changes
contained for each SIAP and Takeoff
Minimums and ODP as modified by
FDC permanent NOTAMs.
The SIAPs and Takeoff Minimums
and ODPs, as modified by FDC
permanent NOTAM, and contained in
this amendment are based on criteria
contained in the U.S. Standard for
Terminal Instrument Procedures
(TERPS). In developing these changes to
SIAPs and Takeoff Minimums and
ODPs, the TERPS criteria were applied
only to specific conditions existing at
the affected airports. All SIAP
amendments in this rule have been
previously issued by the FAA in a FDC
NOTAM as an emergency action of
immediate flight safety relating directly
to published aeronautical charts.
The circumstances that created the
need for these SIAP and Takeoff
Minimums and ODP amendments
require making them effective in less
than 30 days.
Because of the close and immediate
relationship between these SIAPs,
Takeoff Minimums and ODPs, and
safety in air commerce, I find that notice
and public procedure under 5 U.S.C.
553(b) are impracticable and contrary to
the public interest and, where
applicable, under 5 U.S.C. 553(d), good
cause exists for making these SIAPs
effective in less than 30 days.
The FAA has determined that this
regulation only involves an established
body of technical regulations for which
frequent and routine amendments are
necessary to keep them operationally
current. It, therefore—(1) is not a
‘‘significant regulatory action’’ under
Executive Order 12866; (2) is not a
‘‘significant rule’’ under DOT regulatory
Policies and Procedures (44 FR 11034;
February 26, 1979); and (3) does not
warrant preparation of a regulatory
evaluation as the anticipated impact is
so minimal. For the same reason, the
FAA certifies that this amendment will
not have a significant economic impact
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
E:\FR\FM\05JNR1.SGM
05JNR1
]]>Agencies
[Federal Register Volume 89, Number 109 (Wednesday, June 5, 2024)]
[Rules and Regulations]
[Pages 48132-48135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12282]
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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.
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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 June 5, 2024.
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
[[Page 48133]]
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), for 2022 on May 11, 2022
(87 FR 28756), and for 2023 on August 1, 2023 (88 FR 50003) all with
immediate effective dates. This rule will establish the adjusted
penalty amounts for 2024 with an immediate effective date upon
publication.
On December 19, 2023, the Office of Management and Budget (OMB)
published its annual guidance memorandum for 2024 civil monetary
penalties inflation adjustments (M-24-07, Implementation of Penalty
Inflation Adjustments for 2024 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 2024 civil monetary
penalty inflation adjustment factor is 1.03241 (October 2023 CPI-U
(307.671)/October 2022 CPI-U (298.012)). The annual adjustment amounts
identified in this rule were obtained by applying this multiplier of
1.03241 to those penalty amounts that were published in SBA's 2023
adjustments to civil monetary penalties at 88 FR 50003 (August 1,
2023).
II. Civil Money 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 $314 to $324 per day of failure to file. The current civil penalty
of $314 was multiplied by the multiplier of 1.03241 to reach a product
of $324, 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 $8,058 per day of failure to file from $7,805 per day of
failure to file. The current civil penalty of $7,805 was multiplied by
the multiplier of 1.03241 to reach a product of $8,058, 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 $289,504 to $298,887. The current civil penalty of
$289,504 was multiplied by the multiplier of 1.03241 to reach a product
of $298,887, 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 (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 $13,508 for each statement or claim.
This rule amends Sec. 142.1(b) to adjust the current civil penalty
from $13,508 to $13,946. The adjusted civil penalty amount was
calculated by multiplying the current civil penalty of $13,508 by the
multiplier of 1.03241 to reach a product of $13,946, 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 $24,496 and not more than
$244,958.'' The current civil penalty amounts of $23,727 and $237,268
were multiplied by the multiplier of 1.03241 to reach a product of
$24,496 and $244,958, respectively, rounded to the nearest dollar.
[[Page 48134]]
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 $24,496 and to adjust the civil penalty that may be imposed for
second and subsequent offenses to ``not less than $24,496 and not more
than $244,958.'' The current civil penalty amounts of $23,327 and
$237,268 were multiplied by the multiplier of 1.03241 to reach a
product of $24,496 and $244,958, 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 is 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. 662, 681-687, 687b-h, 687k-m.
Sec. 107.665 [Amended]
0
2. In Sec. 107.665, remove ``$314'' and add in its place ``$324''.
PART 120--BUSINESS LOANS
0
3. The authority citation for part 120 continues to read as follows:
Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and
note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a)
and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a),
Pub. L. 116-260, 134 Stat. 1182.
Sec. 120.465 [Amended]
0
4. In Sec. 120.465, amend paragraph (b) by removing ``$7,805'' and
adding in its place ``$8,058''.
Sec. 120.1500 [Amended]
0
5. In Sec. 120.1500, amend paragraph (b)(2) by removing ``289,504''
and adding in its place ``298,887''.
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 ``$13,508'' and
adding in its place ``$13,946''.
PART 146--NEW RESTRICTIONS ON LOBBYING
0
8. The authority citation for part 146 continues to read as follows:
Authority: 31 U.S.C. 1352 and 15 U.S.C. 634(b)(6).
Sec. 146.400 [Amended]
0
9. In Sec. 146.400, remove ``$23,727'' wherever it appears and add in
its place
[[Page 48135]]
``$24,496'' and remove ``$237,268'' wherever it appears and add in its
place ``$244,958''.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024-12282 Filed 6-4-24; 8:45 am]
BILLING CODE 8026-09-P
