Rule2021-17675
Civil Monetary Penalty Inflation Adjustment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 19, 2021
Effective
August 19, 2021
Issuing agencies
Defense Department
Abstract
The Department of Defense is issuing this final rule to adjust each of its statutory civil monetary penalties (CMP) to account for inflation. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act), requires the head of each agency to adjust for inflation its CMP levels in effect as of November 2, 2015, under a revised methodology that was effective for 2016 and for each year thereafter.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 158 (Thursday, August 19, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 158 (Thursday, August 19, 2021)]
[Rules and Regulations]
[Pages 46599-46601]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17675]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 269
[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL18
Civil Monetary Penalty Inflation Adjustment
AGENCY: Office of the Under Secretary of Defense (Comptroller),
Department of Defense.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Defense is issuing this final rule to adjust
each of its statutory civil monetary penalties (CMP) to account for
inflation. The Federal Civil Penalties Inflation Adjustment Act of
1990, as amended by the Debt Collection Improvement Act of 1996 and the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015 (the 2015 Act), requires the head of each agency to adjust for
inflation its CMP levels in effect as of November 2, 2015, under a
revised methodology that was effective for 2016 and for each year
thereafter.
DATES: This rule is effective August 19, 2021.
FOR FURTHER INFORMATION CONTACT: Kellie Allison, 703-614-0410.
SUPPLEMENTARY INFORMATION:
Background Information
The Federal Civil Penalties Inflation Adjustment Act of 1990,
Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461, note), as amended by
the Debt Collection Improvement Act of 1996, Public Law 104-134, April
26, 1996, and further amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (the 2015 Act), Public Law 114-
74, November 2, 2015, required agencies to annually adjust the level of
CMPs for inflation to improve their effectiveness and maintain their
deterrent effect. The 2015 Act required that not later than July 1,
2016, and not later than January 15 of every year thereafter, the head
of each agency must adjust each CMP within its jurisdiction by the
inflation adjustment described in the 2015 Act. The inflation
adjustment is determined by increasing the maximum CMP or the range of
minimum and maximum CMPs, as applicable, for each CMP by the cost-of-
living adjustment, rounded to the nearest multiple of $1. The cost-of-
living adjustment is the percentage (if any) for each CMP by which the
Consumer Price Index (CPI) for the month of October preceding the date
of the adjustment, exceeds the CPI for the month of October in the
previous calendar year.
The initial catch up adjustments for inflation to the Department of
Defense's CMPs were published as an interim final rule in the Federal
Register on May 26, 2016 (81 FR 33389-33391) and became effective on
that date. The interim final rule was published as a final rule without
change on September 12, 2016 (81 FR 62629-62631), effective that date.
The revised methodology for agencies for 2017 and each year thereafter
provides for the improvement of the effectiveness of CMPs and to
maintain their deterrent effect. The Department of Defense is adjusting
the level of all civil monetary penalties under its jurisdiction by the
Office of Management and Budget (OMB) directed cost-of-living
adjustment multiplier for 2021 of 1.01182 prescribed in OMB Memorandum
M-21-10, ``Implementation of Penalty Inflation Adjustments for 2021,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015,'' dated December 16, 2019. The Department of
Defense's 2021 adjustments for inflation to CMPs apply only to those
CMPs, including those whose associated violation predated such
adjustment, which are assessed by the Department of Defense after the
effective date of the new CMP level.
Statement of Authority and Costs and Benefits
Pursuant to 5 U.S.C. 553(b)B, there is good cause to issue this
rule without prior public notice or opportunity for public comment
because it would be impracticable and unnecessary. The Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section
701(b)) requires agencies, effective 2017, to make annual adjustments
for inflation to CMPs notwithstanding section 553 of title 5, United
States Code. Additionally, the methodology used, effective 2017, for
adjusting CMPs for inflation is established in statute, with no
discretion provided to agencies regarding the substance of the
adjustments for inflation to CMPs. The Department of Defense is charged
only with performing ministerial computations to determine the dollar
amount of adjustments for inflation to CMPs.
Further, there are no significant costs associated with the
regulatory revisions that would impose any mandates on the Department
of Defense, Federal, State or local governments, or the private sector.
Accordingly, prior public notice and an opportunity for public comment
are not required for this rule. The benefit of this rule is the
Department of Defense anticipates that civil monetary penalty
collections may increase in the future due to new penalty authorities
and other changes in this rule. However, it is difficult to accurately
predict the extent of any increase, if any, due to a variety of
factors, such as budget and staff resources, the number and quality of
civil penalty referrals or leads, and the length of time needed to
investigate and resolve a case.
Regulatory Procedures
Executive Order 12866, ``Regulatory Planning and Review'' and Executive
Order 13563, ``Improving Regulation and Regulatory Review''
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule is not a ``significant regulatory action,'' and
was not reviewed by the Office of Management and Budget.
Unfunded Mandates Reform Act (2 U.S.C. Chapter 25)
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2
U.S.C. 1532) requires agencies to assess anticipated costs and benefits
[[Page 46600]]
before issuing any rule the mandates of which require spending in any
year of $100 million in 1995 dollars, updated annually for inflation.
In 2016, that threshold is approximately $146 million. This rule will
not mandate any requirements for State, local, or tribal governments,
nor will it affect private sector costs.
Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)
Because notice of proposed rulemaking and opportunity for comment
are not required pursuant to 5 U.S.C. 553, or any other law, the
analytical requirements of the Regulatory Flexibility Act (5 U.S.C.
601, et seq.) are inapplicable. Therefore, a regulatory flexibility
analysis is not required and has not been prepared.
Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)
The Department of Defense determined that 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.
Executive Order 13132, ``Federalism''
Executive Order 13132 establishes certain requirements that an
agency must meet when it promulgates a rule that imposes substantial
direct requirement costs on State and local governments, preempts State
law, or otherwise has Federalism implications. This final rule will not
have a substantial effect on State and local governments.
List of Subjects in 32 CFR Part 269
Administrative practice and procedure, Penalties.
Accordingly, 32 CFR part 269 is amended as follows.
PART 269--[AMENDED]
0
1. The authority citation for 32 CFR part 269 continues to read as
follows:
Authority: 28 U.S.C. 2461 note.
0
2. In Sec. 269.4, revise paragraph (d) to read as follows:
Sec. 269.4 Cost of living adjustments of civil monetary penalties.
* * * * *
(d) Inflation adjustment. Maximum civil monetary penalties within
the jurisdiction of the Department are adjusted for inflation as
follows:
Table 1 to Paragraph (d)
----------------------------------------------------------------------------------------------------------------
Maximum New adjusted
United States code Civil monetary penalty description penalty amount maximum
as of 02/21/20 penalty amount
----------------------------------------------------------------------------------------------------------------
National Defense Authorization Act for Unauthorized Activities Directed at or 134,807 136,400
FY 2005, 10 U.S.C. 113, note. Possession of Sunken Military Craft.
10 U.S.C. 1094(c)(1).................. Unlawful Provision of Health Care....... 11,837 11,977
10 U.S.C. 1102(k)..................... Wrongful Disclosure--Medical Records:
First Offense........................... 6,999 7,082
Subsequent Offense...................... 46,663 47,214
10 U.S.C. 2674(c)(2).................. Violation of the Pentagon Reservation 1,928 1,951
Operation and Parking of Motor Vehicles
Rules and Regulations.
31 U.S.C. 3802(a)(1).................. Violation Involving False Claim......... 11,665 11,803
31 U.S.C. 3802(a)(2).................. Violation Involving False Statement..... 11,665 11,803
42 U.S.C. 1320a-7a(a); 32 CFR False claims............................ 20,866 21,112.64
200.210(a)(1).
42 U.S.C. 1320a-7a(a); 32 CFR Claims submitted with a false 20,866 21,112.64
200.210(a)(1). certification of physician license.
42 U.S.C. 1320a-7a(a); 32 CFR Claims presented by excluded party...... 20,866 21,112.64
200.210(a)(2).
42 U.S.C. 1320a-7a(a); 32 CFR Employing or contracting with an 20,866 21,112.64
200.210(a)(2); (b)(2)(ii). excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR Pattern of claims for medically 20,866 21,112.64
200.210(a)(1). unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR Ordering or prescribing while excluded.. 20,866 21,112.64
200.210(a)(2).
42 U.S.C. 1320a-7a(a); 32 CFR Known retention of an overpayment....... 20,866 21,112.64
200.210(a)(5).
42 U.S.C. 1320a-7a(a); 32 CFR Making or using a false record or 104,330 105,563.18
200.210(a)(4). statement that is material to a false
or fraudulent claim.
42 U.S.C. 1320a-7a(a); 32 CFR Failure to grant timely access to OIG 31,300 31,669.97
200.210(a)(6). for audits, investigations,
evaluations, or other statutory
functions of OIG.
42 U.S.C. 1320a-7a(a); 32 CFR Making false statements, omissions, 104,330 105,563.18
200.210(a)(3). misrepresentations in an enrollment
application.
42 U.S.C. 1320a-7a(a); 32 CFR Unlawfully offering, paying, soliciting, 104,330 105,563.18
200.310(a). or receiving remuneration to induce or
in return for the referral of business
in violation of 1128B(b) of the Social
Security Act.
----------------------------------------------------------------------------------------------------------------
[[Page 46601]]
Dated: August 12, 2021.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2021-17675 Filed 8-18-21; 8:45 am]
BILLING CODE 5001-06-P
</pre></body>
</html>Indexed from Federal Register on August 19, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.