Inspection Service Authority; Civil Monetary Penalty Inflation Adjustment
| Citation | 85 FR 2036 |
| Published date | 14 January 2020 |
| Record Number | 2020-00028 |
| Section | Rules and Regulations |
| Court | Postal Service |
Federal Register, Volume 85 Issue 9 (Tuesday, January 14, 2020)
[Federal Register Volume 85, Number 9 (Tuesday, January 14, 2020)]
[Rules and Regulations]
[Pages 2036-2037]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00028]
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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 2020 for statutory civil monetary
penalties subject to the 2015 Act.
DATES: Effective date: January 14, 2020.
FOR FURTHER INFORMATION CONTACT: Steven Sultan, (202) 268-7385,
[email protected].
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act 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. 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 2020 in memorandum M-20-05, Implementation of
Penalty Inflation Adjustments for 2020, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (December
16, 2019), https://www.whitehouse.gov/wp-content/uploads/2019/12/M-20-05.pdf. This year, OMB has advised that an adjustment multiplier of
1.01764 will be used. The new penalty amount must be rounded to the
nearest dollar.
The 2015 Act allows the interim final rule and annual inflation
adjustments to be published without prior public
[[Page 2037]]
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, Pub. L. 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 after implementation of 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 impose a $72,669 penalty 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. The new penalties will be as follows: A $73,951
penalty for each mailing less than 50,000 pieces, $147,899 for each
mailing of 50,000 to 100,000 pieces, and $14,791 for each additional
10,000 pieces above 100,000 not to exceed $2,957,993.
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 $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. The new penalties will
be: $36,975 for each mailing that is less than 50,000 pieces, $73,951
for each mailing of 50,000 to 100,000 pieces, and an additional $7,395
for each additional 10,000 pieces above 100,000 not to exceed
$1,478,996.
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, under the implementing regulations, this penalty is
not to exceed $14,535 for each mailing. The new penalty will be
$14,791.
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 $2,906,718 per violation,
pursuant to the implementing regulations. The new penalty may not
exceed $2,957,993 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 $14,535 per violation for each mailing to an individual. The
new penalty is $14,791 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 $314, but not more than $125,314 for each
violation, pursuant to the implementing regulations. The new penalty is
at least $320, but not more than $127,525 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 ``$72,669'' and add in its place
``$73,951'', remove ``$145,335'' and add in its place ``$147,899'',
remove ``$100,000 pieces'' and add in its place ``100,000 pieces'',
remove ``$14,535'' and add in its place ``$14,791'', and remove
``$2,906,718'' and add in its place ``$2,957,993''.
0
b. In paragraph (b), remove ``$36,334'' and add in its place
``$36,975'', remove ``$72,669'' and add in its place ``$73,951'',
remove ``$7,267'' and add in its place ``$7,395'', and remove
``$1,453,359'' and add in its place ``$1,478,996''.
0
c. In paragraph (c)(4), remove ``$14,535'' and add in its place
``$14,791''.
0
d. In paragraph (d), remove ``$2,906,718'' and add in its place
``$2,957,993''.
0
e. In paragraph (e), remove ``$14,535'' and add in its place
``$14,791''.
0
f. In Sec. 233.12(f), remove ``$314'' and add in its place ``$320''
and remove ``$125,314'' and add in its place ``$127,525''.
Brittany M. Johnson,
Attorney, Federal Compliance.
[FR Doc. 2020-00028 Filed 1-13-20; 8:45 am]
BILLING CODE 7710-12-P
