Inflation Adjustment of Civil Monetary Penalties
| Citation | 84 FR 15955 |
| Record Number | 2019-07664 |
| Published date | 17 April 2019 |
| Section | Rules and Regulations |
| Court | The Secretary Of The Treasury Office |
Federal Register, Volume 84 Issue 74 (Wednesday, April 17, 2019)
[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Rules and Regulations]
[Pages 15955-15956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07664]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury
31 CFR Parts 27 and 50
Inflation Adjustment of Civil Monetary Penalties
AGENCY: Departmental Offices, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury (``Department'' or
``Treasury'') publishes this final rule to adjust its civil monetary
penalties (``CMPs'') for inflation as mandated by the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015
(collectively referred to herein as ``the Act''). This rule adjusts
CMPs within the jurisdiction of two components of the Department to the
maximum amount required by the Act.
DATES: The final rule is effective April 17, 2019.
FOR FURTHER INFORMATION CONTACT: For information regarding the
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW,
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), or
Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at
(202) 622-3220 (not a toll free number). Persons who have difficulty
hearing or speaking may access these numbers via TTY by calling the
toll-free Federal Relay Service at (800) 877-8339.
For information regarding the Treasury-wide CMP, contact Richard
Dodson, Senior Counsel, General Law, Ethics, and Regulation, 202-622-
9949.
SUPPLEMENTARY INFORMATION:
I. Background
In order to improve the effectiveness of CMPs and to maintain their
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires
Federal agencies to adjust each CMP provided by law within the
jurisdiction of the agency. The 2015 Act requires agencies to adjust
the level of CMPs with an initial ``catch-up'' adjustment through an
interim final rulemaking and to make subsequent annual adjustments for
inflation, without needing to provide notice and the opportunity for
public comment required by 5 U.S.C. 553. The Department's initial
catch-up adjustment interim final rules were published on December 7,
2016 (Departmental Offices) (81 FR 88600), and for 31 CFR part 27, on
February 11, 2019 (84 FR 3105). The Department's 2018 annual adjustment
was published on March 19, 2018 (83 FR 11876). The 2015 Act provides
that any increase in a CMP shall apply to CMPs that are assessed after
the date the increase takes effect, regardless of whether the
[[Page 15956]]
underlying violation predated such increase.\1\
---------------------------------------------------------------------------
\1\ However, the increased CMPs apply only with respect to
underlying violations occurring after the date of enactment of the
2015 Act, i.e., after November 2, 2015.
---------------------------------------------------------------------------
II. Method of Calculation
The method of calculating CMP adjustments applied in this final
rule is required by the 2015 Act. Under the 2015 Act and the Office of
Management and Budget guidance required by the 2015 Act, annual
inflation adjustments subsequent to the initial catch-up adjustment are
to be based on the percent change between the Consumer Price Index for
all Urban Consumers (``CPI-U'') for the October preceding the date of
the adjustment and the prior year's October CPI-U. As set forth in
Office of Management and Budget Memorandum M-19-04 of December 14,
2018, the adjustment multiplier for 2019 is 1.02522. In order to
complete the 2019 annual adjustment, each current CMP is multiplied by
the 2019 adjustment multiplier. Under the 2015 Act, any increase in CMP
must be rounded to the nearest multiple of $1.
Procedural Matters
1. Administrative Procedure Act
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to
make annual adjustments for inflation to CMPs, without needing to
provide notice and the opportunity for public comment and a delayed
effective date required by 5 U.S.C. 553. Additionally, the methodology
used, effective 2017, for adjusting CMPs for inflation is provided by
statute, with no discretion provided to agencies regarding the
substance of the adjustments for inflation to CMPs. The Department is
charged only with performing ministerial computations to determine the
dollar amount of adjustments for inflation to CMPs. Accordingly, prior
public notice, an opportunity for public comment, and a delayed
effective date are not required for this rule.
2. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
3. Executive Order 12866
This rule is not a significant regulatory action as defined in
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Public Law
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR
part 1320, do not apply to this rule because there are no new or
revised recordkeeping or reporting requirements.
List of Subjects
31 CFR Part 27
Administrative practice and procedure, Penalties.
31 CFR Part 50
Insurance, Terrorism.
Authority and Issuance
For the reasons set forth in the preamble, parts 27 and 50 of title
31 of the Code of Federal Regulations are amended as follows:
PART 27--CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE
TREASURY NAMES, SYMBOLS, ETC.
0
1. The authority citation for part 27 continues to read as follows:
Authority: 31 U.S.C. 321, 333.
0
2. Amend Sec. 27.3 by revising paragraph (c) to read as follows:
Sec. 27.3 Assessment of civil penalties.
* * * * *
(c) Civil penalty. An assessing official may impose a civil penalty
on any person who violates the provisions of paragraph (a) of this
section. The amount of a civil monetary penalty shall not exceed $7,975
for each and every use of any material in violation of paragraph (a),
except that such penalty shall not exceed $39,873 for each and every
use if such use is in a broadcast or telecast.
* * * * *
PART 50--TERRORISM RISK INSURANCE PROGRAM
0
3. The authority citation for part 50 continues to read as follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660,
Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15
U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28
U.S.C. 2461 note).
0
4. Amend Sec. 50.83 by revising paragraph (a) to read as follows:
Sec. 50.83 Adjustment of civil monetary penalty amount.
(a) Inflation adjustment. Any penalty under the Act and the
regulations in this part may not exceed the greater of $1,394,837 and,
in the case of any failure to pay, charge, collect or remit amounts in
accordance with the Act or the regulations in this part such amount in
dispute.
* * * * *
David Dwyer,
Executive Secretary.
[FR Doc. 2019-07664 Filed 4-16-19; 8:45 am]
BILLING CODE 4810-25-P
