Rule2022-20154
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
September 19, 2022
Effective
September 19, 2022
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
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<title>Federal Register, Volume 87 Issue 180 (Monday, September 19, 2022)</title>
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[Federal Register Volume 87, Number 180 (Monday, September 19, 2022)]
[Rules and Regulations]
[Pages 57145-57147]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-20154]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 269
[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL50
Civil Monetary Penalty Inflation Adjustment
AGENCY: Office of the Under Secretary of Defense (Comptroller),
Department of Defense.
ACTION: Final rule.
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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 September 19, 2022.
FOR FURTHER INFORMATION CONTACT: Dzenana Dzanic, 703-571-1652.
SUPPLEMENTARY INFORMATION:
Background Information
The Federal Civil Penalties Inflation Adjustment Act of 1990,
Public Law 101-410, codified at 28 U.S.C. 2461,
[[Page 57146]]
note, as amended, requires agencies to annually adjust the level of
CMPs for inflation to improve their effectiveness and maintain their
deterrent effect. Section 2461 requires 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 set forth therein. 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 2022 of 1.06222 prescribed in OMB Memorandum
M-22-07, ``Implementation of Penalty Inflation Adjustments for 2022,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.'' The Department of Defense's 2022
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
2461) 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. Accordingly, prior public notice and
an opportunity to comment are not required for this rule. For the same
reasons, there is good cause under 5 U.S.C. 553(d)(3) to waive the 30-
day delay in effective date.
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''
These Executive Orders 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). These Executive Orders also
emphasize the importance of quantifying both costs and benefits, of
reducing costs, of harmonizing rules, and of promoting flexibility.
This rule has been designated ``not significant'', under section 3(f)
of Executive Order 12866. Accordingly, this rule has not been reviewed
by the OMB under these requirements.
Congressional Review Act, 5 U.S.C. 804(2)
The Congressional Review Act, 5 U.S.C. 801 et seq., generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. A major rule may take effect no earlier than 60 calendar
days after Congress receives the rule report or the rule is published
in the Federal Register, whichever is later. This rule is not a major
rule, as defined by 5 U.S.C. 804(2).
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
before issuing any rule the mandates of which require spending in any
year of $100 million in 1995 dollars, updated annually for inflation.
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)
The Under Secretary of Defense (Comptroller) certified that this
rule is not subject to the Regulatory Flexibility Act (5 U.S.C. 601)
because it would not, if promulgated, have a significant economic
impact on a substantial number of small entities. Therefore, the
Regulatory Flexibility Act, as amended, does not require DoD to prepare
a regulatory flexibility analysis.
Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)
The Paperwork Reduction Act was enacted to minimize the paperwork
burden for individuals; small businesses; educational and nonprofit
institutions; Federal contractors; State, local and tribal governments;
and other persons resulting from the collection of information by or
for the federal government. The Act requires agencies obtain approval
from the Office of Management and Budget before using identical
questions to collect information from ten or more persons. This rule
does not impose reporting or recordkeeping requirements on the public.
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.
[[Page 57147]]
Executive Order 13175, ``Consultation and Coordination With Indian
Tribal Governments''
It has been determined that this rule will not have a substantial
effect on Indian tribal governments. This rule does not impose
substantial direct compliance costs on one or more Indian tribes,
preempt tribal law, or effect the distribution of power and
responsibilities between the federal government and Indian tribes.
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 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)
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Maximum New adjusted
United States Code Civil monetary penalty penalty amount maximum
description as of 2021 penalty amount
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National Defense Authorization Act for FY Unauthorized Activities Directed 136,400 144,887.01
2005, 10 U.S.C. 113, note. at or Possession of Sunken
Military Craft.
10 U.S.C. 1094(c)(1).......................... Unlawful Provision of Health 11,977 12,722.32
Care.
10 U.S.C. 1102(k)............................. Wrongful Disclosure--Medical
Records:
First Offense................... 7,082 7,522.71
Subsequent Offense.............. 47,214 50,152.10
10 U.S.C. 2674(c)(2).......................... Violation of the Pentagon 1,951 2,072.63
Reservation Operation and
Parking of Motor Vehicles Rules
and Regulations.
31 U.S.C. 3802(a)(1).......................... Violation Involving False Claim. 11,803 12,537.48
31 U.S.C. 3802(a)(2).......................... Violation Involving False 11,803 12,537.48
Statement.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)... False claims.................... 21,112.64 22,426.26
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)... Claims submitted with a false 21,112.64 22,426.26
certification of physician
license.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2)... Claims presented by excluded 21,112.64 22,426.26
party.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2); Employing or contracting with an 21,112.64 22,426.26
(b)(2)(ii). excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)... Pattern of claims for medically 21,112.64 22,426.26
unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2)... Ordering or prescribing while 21,112.64 22,426.26
excluded.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(5)... Known retention of an 21,112.64 22,426.26
overpayment.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(4)... Making or using a false record 105,563.18 112,131.32
or statement that is material
to a false or fraudulent claim.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(6)... Failure to grant timely access 31,669.97 33,640.47
to OIG for audits,
investigations, evaluations, or
other statutory functions of
OIG.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(3)... Making false statements, 105,563.18 112,131.32
omissions, misrepresentations
in an enrollment application.
42 U.S.C. 1320a-7a(a); 32 CFR 200.310(a)...... Unlawfully offering, paying, 105,563.18 112,131.32
soliciting, or receiving
remuneration to induce or in
return for the referral of
business in violation of
1128B(b) of the Social Security
Act.
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Dated: September 13, 2022.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2022-20154 Filed 9-16-22; 8:45 am]
BILLING CODE 5001-06-P
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</html>Indexed from Federal Register on September 19, 2022.
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