Federal Civil Penalties Inflation Adjustment Act Amendments, 1902-1903 [2025-00094]

Download as PDF 1902 Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Rules and Regulations DEPARTMENT OF VETERANS AFFAIRS 38 CFR Parts 36 and 42 RIN 2900–AS26 Federal Civil Penalties Inflation Adjustment Act Amendments Department of Veterans Affairs. Final rule. AGENCY: ACTION: The Department of Veterans Affairs (VA) is amending its regulations to adjust for inflation the amount of civil monetary penalties that are within VA’s jurisdiction. 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 January 10, 2025. FOR FURTHER INFORMATION CONTACT: Stephanie Li, Assistant Director, Regulations, Legislation, Engagement, and Training, Loan Guaranty Service (26), Veterans Benefits Administration, Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420, 202–632–8862. (This is not a toll-free number.) SUPPLEMENTARY INFORMATION: On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) (Pub. L. 114–74, section 701, 129 Stat. 584, 599–600), which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101–410, section 5, 104 Stat. 890, 891–892), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The amended statute, codified in a note following 28 U.S.C. 2461, requires agencies to publish annual adjustments for inflation based on the percentage change between the Consumer Price Index (defined in the statute as the Consumer Price Index for all-urban consumers (CPI–U) published by the Department of Labor) for the month of October preceding the date of the adjustment and the prior year’s October CPI–U. 28 U.S.C. 2461 note, sections 4(a) and (b) and 5(b)(1). This rule implements the 2025 calendar year inflation adjustment amounts. Under 38 U.S.C. 3710(g)(4)(B), VA is authorized to levy civil monetary penalties against private lenders that originate VA-guaranteed loans if a lender falsely certifies that they have complied with certain credit khammond on DSK9W7S144PROD with RULES SUMMARY: VerDate Sep<11>2014 16:01 Jan 08, 2025 Jkt 265001 information and loan processing standards as set forth by 38 U.S.C. Ch. 37 and 38 CFR part 36. Under section 3710(g)(4)(B), any lender who knowingly and willfully makes such a false certification shall be liable to the United States Government for a civil penalty equal to two times the amount of the Secretary’s loss on the loan involved or to another appropriate amount, not to exceed $10,000, whichever is greater. VA implemented the penalty amount in 38 CFR 36.4340(k)(1)(i) and (k)(3). On December 17, 2024, the Office of Management and Budget (OMB) issued OMB Circular M– 25–02. This circular reflects that the October 2023 CPI–U was 307.671 and the October 2024 CPI–U was 315.664, resulting in an inflation adjustment multiplier of 1.02598. Accordingly, the calendar year 2025 inflation revision imposes an adjustment from $27,894 to $28,619. Under 31 U.S.C. 3802, VA can impose monetary penalties against any person who makes, presents, or submits a claim or written statement to VA that the person knows or has reason to know is false, fictitious, or fraudulent, or who engages in other covered conduct. The statute permits, in addition to any other remedy that may be prescribed by law, a civil penalty of not more than $5,000 for each claim. 31 U.S.C. 3802(a)(1) and (2). VA implemented the penalty amount in 38 CFR 42.3(a)(1)(iv) and (b)(1)(ii). As previously noted, OMB Circular M–25–02 reflects an inflation adjustment multiplier of 1.02598. Therefore, the calendar year 2025 inflation revision imposes an adjustment from $13,946 to $14,308. Accordingly, VA is revising 38 CFR 36.4340(k)(1)(i) and (3) and 38 CFR 42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 2025 inflationary adjustments for civil monetary penalties assessed or enforced by VA. prior notice and public comment and a delayed effective date are unnecessary. Administrative Procedure Act The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before issuing any rule 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 (adjusted annually for inflation) in any one year. This final rule will have no such effect on state, local, and tribal governments, or on the private sector. The Secretary of Veterans Affairs finds that there is good cause under 5 U.S.C. 553(b)(B) and (d)(3) to publish this rule without prior opportunity for public comment and to publish this rule with an immediate effective date. The statute requires agencies to make annual adjustments for inflation to the allowed amounts of civil monetary penalties ‘‘notwithstanding section 553 of title 5, United States Code.’’ 28 U.S.C. 2461 note, sections 4(a) and (b). The penalty adjustments, and the methodology used to determine the adjustments, are set by the terms of the statute. VA has no discretion to make changes in those areas. Therefore, an opportunity for PO 00000 Frm 00056 Fmt 4700 Sfmt 4700 Executive Orders 12866, 13563, and 14094 Executive Order 12866 (Regulatory Planning and Review) directs agencies to assess the costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, and other advantages; distributive impacts; and equity). Executive Order 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14094 (Executive Order on Modernizing Regulatory Review) supplements and reaffirms the principles, structures, and definitions governing contemporary regulatory review established in Executive Order 12866 of September 30, 1993 (Regulatory Planning and Review), and Executive Order 13563 of January 18, 2011 (Improving Regulation and Regulatory Review). The Office of Information and Regulatory Affairs has determined that this rulemaking is not a significant regulatory action under Executive Order 12866, as amended by Executive Order 14094. The Regulatory Impact Analysis associated with this rulemaking can be found as a supporting document at www.regulations.gov. Regulatory Flexibility Act The Regulatory Flexibility Act, 5 U.S.C. 601 through 612, is not applicable to this rulemaking because notice of proposed rulemaking is not required. 5 U.S.C. 601(2), 603(a), and 604(a). Unfunded Mandates Paperwork Reduction Act This final rule contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521). E:\FR\FM\10JAR1.SGM 10JAR1 Federal Register / Vol. 90, No. 6 / Friday, January 10, 2025 / Rules and Regulations Congressional Review Act Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not satisfying the criteria under 5 U.S.C. 804(2). 38 CFR Part 36 Condominiums, housing, individuals with disabilities, loan programs— housing and community development, loan programs—Veterans, manufactured homes, mortgage insurance, reporting and recordkeeping requirements, Veterans. 38 CFR Part 42 Administrative practice and procedure, claims, fraud, penalties. For the reasons stated in the preamble, the Department of Veterans Affairs amends 38 CFR parts 36 and 42 as set forth below: PART 36—LOAN GUARANTY 1. The authority citation for part 36 continues to read as follows: Authority: 38 U.S.C. 501 and 3720. [Amended] 2. In § 36.4340, amend paragraphs (k)(1)(i) introductory text and (k)(3) by removing ‘‘$27,894’’ and adding in its place ‘‘$28,619’’. ■ PART 42—STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES ACT 3. The authority citation for part 42 continues to read as follows: khammond on DSK9W7S144PROD with RULES ■ Authority: Pub. L. 99–509, secs. 6101– 6104, 100 Stat. 1874, codified at 31 U.S.C. 3801–3812. [Amended] 4. In § 42.3, amend paragraphs (a)(1)(iv) and (b)(1)(ii) by removing ■ Jkt 265001 [EPA–HQ–OAR–2021–0863; EPA–R03– OAR–2023–0179; FRL–12161–03–OAR] RIN 2060–AW38 Excess Emissions During Periods of Startup, Shutdown, and Malfunction; Partial Withdrawals of Findings of Failure To Submit State Implementation Plan (SIP) Due to the receipt of adverse comment, the Environmental Protection Agency (EPA) is withdrawing the November 26, 2024, direct final rule to partially withdraw two final actions finding that 13 States and/or local air pollution control agencies failed to submit State Implementation Plan (SIP) revisions required by the Clean Air Act (CAA) in a timely manner to address the EPA’s 2015 findings of substantial inadequacy and ‘‘SIP calls’’ for provisions applying to excess emissions during periods of startup, shutdown, and malfunction (SSM). The EPA will address all comments received in a subsequent final rule for which the EPA will not institute a second comment period. SUMMARY: Effective January 10, 2025, the EPA withdraws the direct final rule published at 89 FR 93187 on November 26, 2024. FOR FURTHER INFORMATION CONTACT: General questions concerning this document should be addressed to, Sydney Lawrence, Office of Air Quality Planning and Standards, Air Quality Policy Division, 109 T.W. Alexander Drive, Research Triangle Park, NC 27711; by telephone (919) 541–4768; or by email at lawrence.sydney@epa.gov. SUPPLEMENTARY INFORMATION: On November 26, 2024, the EPA published a direct final rule (89 FR 93187) to partially withdraw two final actions finding that 13 States and/or local air pollution control agencies failed to submit SIP revisions required by the CAA to address the EPA’s 2015 findings of substantial inadequacy and ‘‘SIP calls’’ for provisions applying to excess emissions during periods of SSM. In the DATES: ■ 16:01 Jan 08, 2025 ENVIRONMENTAL PROTECTION AGENCY Environmental Protection Agency (EPA). ACTION: Direct final rule; withdrawal. Consuela Benjamin, Regulation Development Coordinator, Office of Regulation Policy & Management, Office of General Counsel, Department of Veterans Affairs. VerDate Sep<11>2014 BILLING CODE 8320–01–P AGENCY: Signing Authority Denis McDonough, Secretary of Veterans Affairs, approved and signed this document on December 31, 2024, and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. § 42.3 [FR Doc. 2025–00094 Filed 1–8–25; 8:45 am] 40 CFR Part 52 List of Subjects § 36.4340 ‘‘$13,946’’ and adding in its place ‘‘$14,308’’. PO 00000 Frm 00057 Fmt 4700 Sfmt 4700 1903 proposal for the direct final rule published on the same day (89 FR 93243), the EPA stated that written comments must be received on or before December 26, 2024. The EPA stated that if any relevant adverse comments are received on the proposal, the EPA will publish a timely withdrawal of the direct final rule in the Federal Register. On December 22, 2024, an adverse comment dated December 18, 2024, was posted in the docket that the EPA interprets as relevant and adverse. Therefore, the EPA is withdrawing the direct final rule and will publish a subsequent final rule wherein the EPA will address all comments received. The EPA will not institute a second comment period on the subsequent final rule. List of Subjects in 40 CFR Part 52 Environmental protection, Administrative practice and procedure, Air pollution control, Approval and promulgation of implementation plans, Incorporation by reference, Intergovernmental relations, and Reporting and recordkeeping requirements. Joesph Goffman, Assistant Administrator. [FR Doc. 2025–00433 Filed 1–8–25; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2024–0349; FRL–12130– 02–R9] Air Plan Revisions; Arizona; Maricopa County Air Quality Department Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is finalizing a limited approval and limited disapproval of revisions to the Maricopa County Air Quality Department (MCAQD or ‘‘County’’) portion of the Arizona State Implementation Plan (SIP). These revisions concern emissions of volatile organic compounds (VOCs) from loading of organic liquids and gasoline. Under the authority of the Clean Air Act (CAA or ‘‘Act’’), this action simultaneously approves local rules that regulate these emission sources and directs Arizona to correct rule deficiencies. We are also finalizing a disapproval of MCAQD’s reasonably available control technology (RACT) demonstration for the source categories SUMMARY: E:\FR\FM\10JAR1.SGM 10JAR1

Agencies

[Federal Register Volume 90, Number 6 (Friday, January 10, 2025)]
[Rules and Regulations]
[Pages 1902-1903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00094]



[[Page 1902]]

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Parts 36 and 42

RIN 2900-AS26


Federal Civil Penalties Inflation Adjustment Act Amendments

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations to adjust for inflation the amount of civil monetary 
penalties that are within VA's jurisdiction. 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 January 10, 2025.

FOR FURTHER INFORMATION CONTACT: Stephanie Li, Assistant Director, 
Regulations, Legislation, Engagement, and Training, Loan Guaranty 
Service (26), Veterans Benefits Administration, Department of Veterans 
Affairs, 810 Vermont Avenue NW, Washington, DC 20420, 202-632-8862. 
(This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On November 2, 2015, the President signed 
into law the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Act) (Pub. L. 114-74, section 701, 129 
Stat. 584, 599-600), which amended the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410, section 5, 104 Stat. 
890, 891-892), to improve the effectiveness of civil monetary penalties 
and to maintain their deterrent effect. The amended statute, codified 
in a note following 28 U.S.C. 2461, requires agencies to publish annual 
adjustments for inflation based on the percentage change between the 
Consumer Price Index (defined in the statute as the Consumer Price 
Index for all-urban consumers (CPI-U) published by the Department of 
Labor) for the month of October preceding the date of the adjustment 
and the prior year's October CPI-U. 28 U.S.C. 2461 note, sections 4(a) 
and (b) and 5(b)(1). This rule implements the 2025 calendar year 
inflation adjustment amounts.
    Under 38 U.S.C. 3710(g)(4)(B), VA is authorized to levy civil 
monetary penalties against private lenders that originate VA-guaranteed 
loans if a lender falsely certifies that they have complied with 
certain credit information and loan processing standards as set forth 
by 38 U.S.C. Ch. 37 and 38 CFR part 36. Under section 3710(g)(4)(B), 
any lender who knowingly and willfully makes such a false certification 
shall be liable to the United States Government for a civil penalty 
equal to two times the amount of the Secretary's loss on the loan 
involved or to another appropriate amount, not to exceed $10,000, 
whichever is greater. VA implemented the penalty amount in 38 CFR 
36.4340(k)(1)(i) and (k)(3). On December 17, 2024, the Office of 
Management and Budget (OMB) issued OMB Circular M-25-02. This circular 
reflects that the October 2023 CPI-U was 307.671 and the October 2024 
CPI-U was 315.664, resulting in an inflation adjustment multiplier of 
1.02598. Accordingly, the calendar year 2025 inflation revision imposes 
an adjustment from $27,894 to $28,619.
    Under 31 U.S.C. 3802, VA can impose monetary penalties against any 
person who makes, presents, or submits a claim or written statement to 
VA that the person knows or has reason to know is false, fictitious, or 
fraudulent, or who engages in other covered conduct. The statute 
permits, in addition to any other remedy that may be prescribed by law, 
a civil penalty of not more than $5,000 for each claim. 31 U.S.C. 
3802(a)(1) and (2). VA implemented the penalty amount in 38 CFR 
42.3(a)(1)(iv) and (b)(1)(ii). As previously noted, OMB Circular M-25-
02 reflects an inflation adjustment multiplier of 1.02598. Therefore, 
the calendar year 2025 inflation revision imposes an adjustment from 
$13,946 to $14,308.
    Accordingly, VA is revising 38 CFR 36.4340(k)(1)(i) and (3) and 38 
CFR 42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 2025 inflationary 
adjustments for civil monetary penalties assessed or enforced by VA.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds that there is good cause 
under 5 U.S.C. 553(b)(B) and (d)(3) to publish this rule without prior 
opportunity for public comment and to publish this rule with an 
immediate effective date. The statute requires agencies to make annual 
adjustments for inflation to the allowed amounts of civil monetary 
penalties ``notwithstanding section 553 of title 5, United States 
Code.'' 28 U.S.C. 2461 note, sections 4(a) and (b). The penalty 
adjustments, and the methodology used to determine the adjustments, are 
set by the terms of the statute. VA has no discretion to make changes 
in those areas. Therefore, an opportunity for prior notice and public 
comment and a delayed effective date are unnecessary.

Executive Orders 12866, 13563, and 14094

    Executive Order 12866 (Regulatory Planning and Review) directs 
agencies to assess the costs and benefits of available regulatory 
alternatives and, when regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, and other advantages; 
distributive impacts; and equity). Executive Order 13563 (Improving 
Regulation and Regulatory Review) emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 (Executive Order on 
Modernizing Regulatory Review) supplements and reaffirms the 
principles, structures, and definitions governing contemporary 
regulatory review established in Executive Order 12866 of September 30, 
1993 (Regulatory Planning and Review), and Executive Order 13563 of 
January 18, 2011 (Improving Regulation and Regulatory Review). The 
Office of Information and Regulatory Affairs has determined that this 
rulemaking is not a significant regulatory action under Executive Order 
12866, as amended by Executive Order 14094. The Regulatory Impact 
Analysis associated with this rulemaking can be found as a supporting 
document at www.regulations.gov.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 through 612, is not 
applicable to this rulemaking because notice of proposed rulemaking is 
not required. 5 U.S.C. 601(2), 603(a), and 604(a).

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule 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 (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
state, local, and tribal governments, or on the private sector.

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

[[Page 1903]]

Congressional Review Act

    Pursuant to Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C. 
801 et seq.), the Office of Information and Regulatory Affairs 
designated this rule as not satisfying the criteria under 5 U.S.C. 
804(2).

List of Subjects

38 CFR Part 36

    Condominiums, housing, individuals with disabilities, loan 
programs--housing and community development, loan programs--Veterans, 
manufactured homes, mortgage insurance, reporting and recordkeeping 
requirements, Veterans.

38 CFR Part 42

    Administrative practice and procedure, claims, fraud, penalties.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved and signed 
this document on December 31, 2024, and authorized the undersigned to 
sign and submit the document to the Office of the Federal Register for 
publication electronically as an official document of the Department of 
Veterans Affairs.

Consuela Benjamin,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs amends 38 CFR parts 36 and 42 as set forth below:

PART 36--LOAN GUARANTY

0
1. The authority citation for part 36 continues to read as follows:

    Authority: 38 U.S.C. 501 and 3720.

Sec.  36.4340  [Amended]

0
2. In Sec.  36.4340, amend paragraphs (k)(1)(i) introductory text and 
(k)(3) by removing ``$27,894'' and adding in its place ``$28,619''.

PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES 
ACT

0
3. The authority citation for part 42 continues to read as follows:

    Authority: Pub. L. 99-509, secs. 6101-6104, 100 Stat. 1874, 
codified at 31 U.S.C. 3801-3812.


Sec.  42.3  [Amended]

0
4. In Sec.  42.3, amend paragraphs (a)(1)(iv) and (b)(1)(ii) by 
removing ``$13,946'' and adding in its place ``$14,308''.

[FR Doc. 2025-00094 Filed 1-8-25; 8:45 am]
BILLING CODE 8320-01-P
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