Inspection Service Authority; Civil Monetary Penalty Inflation Adjustment
| Published date | 13 May 2019 |
| Citation | 84 FR 20804 |
| Record Number | 2019-09436 |
| Section | Rules and Regulations |
| Court | Postal Service |
Federal Register, Volume 84 Issue 92 (Monday, May 13, 2019)
[Federal Register Volume 84, Number 92 (Monday, May 13, 2019)]
[Rules and Regulations]
[Pages 20804-20806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09436]
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POSTAL SERVICE
39 CFR Part 233
Inspection Service Authority; Civil Monetary Penalty Inflation
Adjustment
AGENCY: Postal Service\TM\.
ACTION: Interim final rule.
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SUMMARY: This document updates postal regulations by implementing
inflation adjustments to civil monetary penalties that may be imposed
under consumer protection and mailability provisions enforced by the
Postal Service pursuant to the Deceptive Mail Prevention and
Enforcement Act and the Postal Accountability and Enhancement Act.
These adjustments are required under the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015. This
document includes the adjustments for 2018 and 2019 for statutory civil
monetary penalties subject to the 2015 Act.
DATES: Effective Date: May 13, 2019.
FOR FURTHER INFORMATION CONTACT: Steven Sultan, (202) 268-7385,
[email protected].
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Improvements Act of 2015 (2015 Act), Public Law 114-74, 129
Stat. 584, amended the Federal Civil Penalties Inflation Adjustment Act
of 1990 (1990 Act), Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461
note), to improve the effectiveness of civil monetary penalties and to
maintain their deterrent effect. Section 3 of the 1990 Act specifically
includes the Postal Service in the definition of ``agency'' subject to
its provisions.
Beginning in 2017, the 2015 Act requires the Postal Service to make
an annual adjustment for inflation to civil penalties that meet the
definition of ``civil monetary penalty'' under the 1990 Act. The Postal
Service must make the annual adjustment for inflation and publish the
adjustment in the Federal Register by January 15 of each year. The
Postal Service did not complete the annual adjustments for 2018 or 2019
due to an oversight. In order to satisfy the annual adjustment
requirement, the Postal Service will be making both the 2018 and 2019
annual adjustments at this time. Each penalty will be adjusted as
instructed by the Office of Management and Budget (OMB) based on the
Consumer Price Index (CPI-U) from the most recent October. OMB has
furnished detailed instructions regarding the annual adjustment for
2018 in memorandum M-18-03, Implementation of Penalty Inflation
Adjustments for 2018, Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (December 15, 2017), https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf. OMB provided
detailed instructions regarding the annual adjustment for 2019 in
memorandum M-19-04, Implementation of Penalty Inflation Adjustments for
2019, Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (December 14, 2018), https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf. For 2018,
OMB has advised that an adjustment multiplier of 1.02041 will be
[[Page 20805]]
used. For 2019, OMB has advised that an adjustment multiplier of
1.02522 will be used. The Postal Service will first apply the 2018
adjustment multiplier. The Postal Service will then apply the 2019
adjustment multiplier on the 2018 adjusted amount. The new penalty
amount must be rounded to the nearest dollar after each adjustment
multiplier is applied. The new penalty amounts will take effect
immediately upon publication in the Federal Register.
The 2015 Act allows the interim final rule and annual inflation
adjustments to be published without prior public notice or opportunity
for public comment.
Adjustments to Postal Service Civil Monetary Penalties
Civil monetary penalties may be assessed for postal offenses under
sections 106 and 108 of the Deceptive Mail Prevention and Enforcement
Act, Public Law 106-168, 113 Stat. 1811, 1814 (see, 39 U.S.C. 3012(a),
(c)(1), (d), and 3017(g)(2), (h)(1)(A)); and section 1008 of the Postal
Accountability and Enhancement Act, Public Law 109-435, 120 Stat. 3259-
3261 (see, 39 U.S.C. 3018 (c)(1)(A)). The statutory civil monetary
penalties subject to the 2015 Act and the amount of each penalty the
annual adjustment for inflation are as follows:
39 U.S.C. 3012(a)--False Representations and Lottery Orders
Under 39 U.S.C. 3005(a)(1)-(3), the Postal Service may issue
administrative orders prohibiting persons from using the mail to obtain
money through false representations or lotteries. Persons who evade,
attempt to evade, or fail to comply with an order to stop such
prohibited practices may be liable to the United States for a civil
penalty under 39 U.S.C. 3012(a). The regulations implemented pursuant
to this section currently imposes a $69,463 penalty for each mailing
less than 50,000 pieces, $138,925 for each mailing of 50,000 to 100,000
pieces, and $13,893 for each additional 10,000 pieces above 100,000 not
to exceed $2,778,505. The new penalties will be as follows: $72,669 for
each mailing less than 50,000 pieces, $145,335 for each mailing of
50,000 to 100,000 pieces, and $14,535 for each additional 10,000 pieces
above 100,000 not to exceed $2,906,718.
39 U.S.C. 3012(c)(1)--False Representation and Lottery Penalties in
Lieu of or as Part of an Order
In lieu of or as part of an order issued under 39 U.S.C.
3005(a)(1)-(3), the Postal Service may assess a civil penalty.
Currently, the amount of this penalty, set in the implementing
regulations to 39 U.S.C. 3012(c)(1), is $34,731 for each mailing that
is less than 50,000 pieces, $69,463 for each mailing of 50,000 to
100,000 pieces, and an additional $6,946 for each additional 10,000
pieces above 100,000 not to exceed $1,389,252. The new penalties will
be: $36,334 for each mailing that is less than 50,000 pieces, $72,669
for each mailing of 50,000 to 100,000 pieces, and an additional $7,267
for each additional 10,000 pieces above 100,000 not to exceed
$1,453,359.
39 U.S.C. 3012(d)--Misleading References to the United States
Government; Sweepstakes and Deceptive Mailings
Persons sending certain deceptive mail matter described in 39
U.S.C. 3001(h)-(k), including:
Solicitations making false claims of Federal Government
connection or approval;
Certain solicitations for the purchase of a product or
service that may be obtained without cost from the Federal Government;
Solicitations containing improperly prepared ``facsimile
checks''; and
Certain solicitations for ``skill contests'' and
``sweepstakes'' sent to individuals who, in accordance with 39 U.S.C.
3017(d), have requested that such materials not be mailed to them;
may be liable to the United States for a civil penalty under 39 U.S.C.
3012(d). Currently, this penalty is not to exceed $13,893 for each
mailing. The new penalty will be $14,535.
39 U.S.C. 3017(g)(2)--Commercial Use of Lists of Persons Electing Not
To Receive Skill Contest or Sweepstakes Mailings
Under 39 U.S.C. 3017(g)(2), the Postal Service may impose a civil
penalty against a person who provides information for commercial use
about individuals who, in accordance with 39 U.S.C. 3017(d), have
elected not to receive certain sweepstakes and contest information.
Currently, this civil penalty may not exceed $2,778,505 per violation.
The new penalty may not exceed $2,906,718 per violation.
39 U.S.C. 3017(h)(1)(A)--Reckless Mailing of Skill Contest or
Sweepstakes Matter
Currently, under 39 U.S.C. 3017(h)(1)(A) and its implementing
regulations, any promoter who recklessly mails nonmailable skill
contest or sweepstakes matter may be liable to the United States in the
amount of $13,893 per violation for each mailing to an individual. The
new penalty is $14,535 per violation.
39 U.S.C. 3018(c)(1)(A)--Hazardous Material
Under 39 U.S.C. 3018(c)(1)(A), the Postal Service may impose a
civil penalty payable into the Treasury of the United States on a
person who knowingly mails nonmailable hazardous materials or fails to
follow postal laws on mailing hazardous materials. Currently, this
civil penalty is at least $300, but not more than $119,786 for each
violation. The new penalty is at least $314, but not more than $125,314
for each violation.
List of Subjects in 39 CFR Part 233
Administrative practice and procedure, Banks, Banking, Credit,
Crime, Infants and children, Law enforcement, Penalties, Privacy,
Seizures and forfeitures.
For the reasons set out in this document, the Postal Service amends
39 CFR part 233 as follows:
PART 233--INSPECTION SERVICE AUTHORITY
0
1. The authority citation for 39 CFR part 233 is revised to read as
follows:
Authority: 39 U.S.C. 101, 102, 202, 204, 401, 402, 403, 404,
406, 410, 411, 1003, 3005(e)(1), 3012, 3017, 3018; 12 U.S.C. 3401-
3422; 18 U.S.C. 981, 983, 1956, 1957, 2254, 3061; 21 U.S.C. 881;
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-
208, 110 Stat. 3009; Secs. 106 and 108, Pub. L. 106-168, 113 Stat.
1806 (39 U.S.C. 3012, 3017); Pub. L. 114-74, 129 Stat. 584.
Sec. 233.12 [Amended]
0
2. In Sec. 233.12:
0
a. In paragraph (a), remove ``$69,463'' and add in its place
``$72,669'', remove ``$138,925'' and add in its place ``$145,335'',
remove ``$13,893'' and add in its place ``$14,535'', and remove
``$2,778,505'' and add in its place ``$2,906,718''.
0
b. In paragraph (b), remove ``$34,731'' and add in its place
``$36,334'', remove ``$69,463'' and add in its place ``$72,669'',
remove ``$6,946'' and add in its place ``$7,267'', and remove
``$1,389,252'' and add in its place ``$1,453,359''.
0
c. In paragraph (c)(4), remove ``$13,893'' and add in its place
``$14,535''.
0
d. In paragraph (d), remove ``$2,778,505'' and add in its place
``$2,906,718''.
0
e. In paragraph (e), remove ``$13,893'' and add in its place
``$14,535''.
0
f. In Sec. 233.12(f), remove ``$300'' and add in its place ``$314''
and remove
[[Page 20806]]
``$119,786'' and add in its place ``$125,314''.
Ruth Stevenson,
Attorney, Federal Compliance.
[FR Doc. 2019-09436 Filed 5-10-19; 8:45 am]
BILLING CODE 7710-12-P
