Rule2022-01135
Federal Civil Penalties Inflation Adjustment Act Amendments
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
January 21, 2022
Effective
January 21, 2022
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) is providing public notice of inflationary adjustments to the maximum civil monetary penalties assessed or enforced by VA, as implemented by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, for calendar year 2022. VA may impose civil monetary penalties for false loan guaranty certifications. Also, VA may impose civil monetary penalties for fraudulent claims or written statements made in connection with VA programs generally. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, sets forth a formula that increases the maximum statutory amounts for civil monetary penalties and directs VA to give public notice of the new maximum amounts by regulation.
Full Text
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<title>Federal Register, Volume 87 Issue 14 (Friday, January 21, 2022)</title>
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[Federal Register Volume 87, Number 14 (Friday, January 21, 2022)]
[Rules and Regulations]
[Pages 3225-3226]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01135]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Parts 36 and 42
RIN 2900-AR41
Federal Civil Penalties Inflation Adjustment Act Amendments
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is providing public
notice of inflationary adjustments to the maximum civil monetary
penalties assessed or enforced by VA, as implemented by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, for
calendar year 2022. VA may impose civil monetary penalties for false
loan guaranty certifications. Also, VA may impose civil monetary
penalties for fraudulent claims or written statements made in
connection with VA programs generally. The Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015, sets forth
a formula that increases the maximum statutory amounts for civil
monetary penalties and directs VA to give public notice of the new
maximum amounts by regulation.
DATES: Effective Date: This rule is effective January 21, 2022.
FOR FURTHER INFORMATION CONTACT: Stephanie Li, Chief, Regulations Team,
Loan Guaranty Service, 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, sec. 701, 129
Stat. 599), which amended the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890), to improve the
effectiveness of civil monetary penalties and to maintain their
deterrent effect. The 2015 Act was codified in a note following 28
U.S.C. 2461. The 2015 Act requires agencies to publish annual
adjustments for inflation, based on the percentage change between the
Consumer Price Index (defined in the Act 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, secs. 4(a) and (b) and
5(b)(1). This rule implements the 2022 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 chapter 37, title 38 U.S.C. and part 36, title 38 CFR. 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 15, 2021, the Office of
Management and Budget (OMB) issued Circular M-22-07. This circular
reflects that the October 2020 CPI-U was 260.388 and the October 2021
CPI-U was 276.589, resulting in an inflation adjustment multiplier of
1.06222. Accordingly, the calendar year 2022 inflation revision imposes
an adjustment from $23,607 to $25,076.
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) and (b)(1). As previously noted, OMB Circular M-22-07
reflects an inflation adjustment multiplier of 1.06222. Therefore, the
calendar year 2022 inflation revision imposes an adjustment from
$11,803 to $12,537.
Accordingly, VA is revising 38 CFR 36.4340(k)(1)(i) and (3) and 38
CFR 42.3(a)(1) and (b)(1) to reflect the 2022 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 dispense with the opportunity
for prior notice and public comment and to publish this rule with an
immediate effective date. The 2015 Act 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, sec. 4(a) and (b). The penalty
adjustments, and the methodology used to determine the adjustments, are
set by the terms of the 2015 Act. 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 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory
[[Page 3226]]
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. The Office of Information and Regulatory
Affairs has determined that this rule is not a significant regulatory
action under Executive Order 12866. The Regulatory Impact Analysis
associated with this rulemaking can be found as a supporting document
at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes
certain requirements on Federal agency rules that are subject to the
notice and comment requirements of the Administrative Procedure Act
(APA), 5 U.S.C. 553(b). This final rule is exempt from the notice and
comment requirements of the APA because the 2015 Act directed the
Department to issue the annual adjustments without regard to section
553 of the APA. Therefore, the requirements of the RFA applicable to
notice and comment rulemaking do not apply to this rule. Accordingly,
the Department is not required either to certify that the final rule
would not have a significant economic impact on a substantial number of
small entities or to conduct a regulatory flexibility analysis.
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).
Assistance Listing
The Assistance Listing number and title for the program affected by
this document is 64.114, Veterans Housing Guaranteed and Insured Loans.
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 a major rule, as defined by 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 this
document on January 14, 2022, 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.
Jeffrey M. Martin,
Assistant Director, 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
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1. The authority citation for part 36 continues to read as follows:
Authority: 38 U.S.C. 501 and 3720.
Sec. 36.4340 [Amended]
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2. In Sec. 36.4340, amend paragraphs (k)(1)(i) introductory text and
(k)(3) by removing ``$23,607'' and adding in its place ``$25,076''.
PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES
ACT
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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]
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4. In Sec. 42.3, amend paragraphs (a)(1)(iv) and (b)(1)(ii) by
removing ``$11,803'' and adding in its place ``$12,537''.
[FR Doc. 2022-01135 Filed 1-20-22; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on January 21, 2022.
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