Rule2022-03608
Program Fraud Civil Remedies
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
February 24, 2022
Effective
March 28, 2022
Issuing agencies
Treasury Department
Abstract
This final rule updates the definition of "investigating official" in the Department's Program Fraud regulations. The definition is revised to include inspectors general that have been established since the Program Fraud regulations were implemented. This final rule adopts a November 23, 2021 proposed rule without change.
Full Text
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<title>Federal Register, Volume 87 Issue 37 (Thursday, February 24, 2022)</title>
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[Federal Register Volume 87, Number 37 (Thursday, February 24, 2022)]
[Rules and Regulations]
[Pages 10308-10309]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03608]
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DEPARTMENT OF THE TREASURY
31 CFR Part 16
Program Fraud Civil Remedies
AGENCY: Departmental Offices, Treasury.
ACTION: Final rule.
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SUMMARY: This final rule updates the definition of ``investigating
official'' in the Department's Program Fraud regulations. The
definition is revised to include inspectors general that have been
established since the Program Fraud regulations were implemented. This
final rule adopts a November 23, 2021 proposed rule without change.
DATES: Effective March 28, 2022.
FOR FURTHER INFORMATION CONTACT: Brian Sonfield, Assistant General
Counsel for General Law, Ethics & Regulation at (202) 622-9804.
SUPPLEMENTARY INFORMATION:
Background and Proposed Rule
The Department promulgated implementing regulations for the Program
Fraud Civil Remedies Act of 1986 (Act) (31 U.S.C. 3801 through 3812) on
September 17, 1987 (52 FR 35071). The Act generally provides that any
person who knowingly submits a false claim or statement to the Federal
Government may be liable for an administrative civil penalty for each
false claim or statement, and, in certain cases, to an assessment equal
to double the amount falsely claimed.
The Act vests authority to investigate allegations of liability
under its provisions in an agency's investigating official. Based upon
the results of an investigation, the agency reviewing official
determines, with the concurrence of the Attorney General, whether to
refer the matter to a presiding officer for an administrative hearing.
Any penalty or assessment imposed under the Act may be collected by the
Attorney General, through the filing of a civil action, or by
offsetting amounts other than tax refunds, owed the particular party by
the federal government.
The Act grants agency investigating officials authority to require
by subpoena the production of documentary evidence which is ``not
otherwise reasonably available.'' If the case proceeds to hearing, the
presiding officer may require the attendance and testimony of witnesses
as well as the production of documentary evidence.
The Department of the Treasury adopted implementing regulations at
31 CFR part 16, which designated the Department's Assistant Secretary
for Management as the authority head, designated the Department's
Inspector General as the investigating official, and assigned the role
of reviewing official to the General Counsel or designee.
On November 23, 2021 (86 FR 66497), the Department issued a
proposed rule that would revise the definition of investigating
official in Sec. 16.2. Since the regulations were promulgated in 1987,
three inspectors general have been established including the Treasury
Inspector General for Tax Administration (See Internal Revenue Service
Restructuring and Reform Act of 1998, Pub. L. 105-206, 112 Stat. 685),
the Special Inspector General for the Troubled Asset Relief Program
(See Emergency Economic Stabilization Act of 2008, Pub. L. 110-343, 122
Stat. 3765), and the Special Inspector General for Pandemic Recovery
(See Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-
136, 134 Stat. 281). The proposed revision would define investigating
official as any Inspector General, including any Special Inspector
General, with investigatory authority over programs of the Department
of the Treasury.
This Final Rule
The public comment period on the proposed rule closed on January 6,
2022. One comment was received that supported the proposal. The
Department appreciates the commenter's input.
For the reasons discussed in the proposed rule and this preamble,
the Department adopts the proposed rule without change.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
requires agencies to prepare an initial regulatory flexibility analysis
(IRFA) to determine the economic impact of the rule on small entities.
A small entity is defined as either a small business, a small
organization, or a small governmental jurisdiction; an individual is
not a small entity. Section 605(b) of the RFA allows an agency to
prepare a certification in lieu of an IRFA if the rule will not have a
significant economic impact on a substantial number of small entities.
Pursuant to 5 U.S.C. 605(b), it is hereby certified that this
regulation will not have a significant economic impact on a substantial
number of small entities. The rule is limited to updating the
definition of investigating official for program fraud investigations
in order to reflect current law. Accordingly, this rule will have no
direct impacts on small entities.
Regulatory Planning and Review
Executive Orders 13563 and 12866 direct agencies to assess 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, distributive 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'' under Executive
Order 12866.
Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that agencies assess anticipated costs and benefits and take certain
other actions before issuing a rule that includes any federal mandate
that may result in expenditures in any one year by a state, local, or
tribal government, in the aggregate, or by the private sector, of $100
million in 1995 dollars, updated annually for inflation. This
regulation does not include any federal mandate that may result in
expenditures by state, local, or tribal governments, or by the private
sector in excess of that threshold.
Federalism
Executive Order 13132 (titled Federalism) prohibits an agency from
publishing any rule that has federalism
[[Page 10309]]
implications if the rule either imposes substantial, direct compliance
costs on state and local governments, and is not required by statute,
or preempts state law, unless the agency meets the consultation and
funding requirements of section 6 of the Executive order. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments or preempt state
law, within the meaning of the Executive order.
List of Subjects in 31 CFR Part 16
Administrative practice and procedure, Fraud, Investigations,
Organizations and functions (Government agencies), Penalties.
For the reasons stated in the preamble, the Department of the
Treasury amends 31 CFR part 16 as follows:
PART 16--REGULATIONS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
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1. The authority citation for part 16 continues to read as follows:
Authority: 31 U.S.C. 3801-3812.
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2. In Sec. 16.2, revise the definition of ``Investigating official''
to read as follows:
Sec. 16.2 Definitions.
* * * * *
Investigating official means any Inspector General, including any
Special Inspector General, with investigatory authority over programs
of the Department of the Treasury, as applicable.
* * * * *
Laurie Schaffer,
Acting General Counsel.
[FR Doc. 2022-03608 Filed 2-23-22; 8:45 am]
BILLING CODE 4810-AK-P
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