Rule2023-00322
Inspection Service Authority; 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
January 11, 2023
Effective
January 11, 2023
Issuing agencies
Postal Service
Abstract
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, as well as the civil monetary penalty that may be imposed by the Postal Service for false claims and statements under the Program Fraud Civil Remedies 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 2023 for the statutory civil monetary penalties subject to the 2015 Act and all necessary updates authorized by the 2015 Act for regulatory civil monetary penalties.
Full Text
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<title>Federal Register, Volume 88 Issue 7 (Wednesday, January 11, 2023)</title>
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[Federal Register Volume 88, Number 7 (Wednesday, January 11, 2023)]
[Rules and Regulations]
[Pages 1513-1515]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00322]
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POSTAL SERVICE
39 CFR Parts 233 and 273
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, as
well as the civil monetary penalty that may be imposed by the Postal
Service for false claims and statements under the Program Fraud Civil
Remedies 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 2023 for the statutory civil
monetary penalties subject to the 2015 Act and all necessary updates
authorized by the 2015 Act for regulatory civil monetary penalties.
DATES: Effective January 11, 2023.
FOR FURTHER INFORMATION CONTACT: Louis DiRienzo, (202) 268-2705,
<a href="/cdn-cgi/l/email-protection#ec808688859e8589829683ac999f9c859fc28b839a"><span class="__cf_email__" data-cfemail="bcd0d6d8d5ced5d9d2c6d3fcc9cfccd5cf92dbd3ca">[email protected]</span></a>.
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. The
Postal Service has not completed the annual adjustments for the civil
monetary penalty that may be imposed under the Program Fraud Civil
Remedies Act. In order to satisfy the annual adjustment requirement,
the Postal Service is making all annual adjustments at this time. 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 2023 in memorandum M-23-05, Implementation of
Penalty Inflation Adjustments for 2023, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (December
15, 2022), <a href="https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf">https://www.whitehouse.gov/wp-content/uploads/2022/12/M-23-05-CMP-CMP-Guidance.pdf</a>. This year, OMB has advised that an adjustment
multiplier of 1.07745 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 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, Public Law 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
[[Page 1514]]
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 $79,481 penalty for each mailing
less than 50,000 pieces, $158,958 for each mailing of 50,000 to 100,000
pieces, and $15,897 for each additional 10,000 pieces above 100,000 not
to exceed $3,179,178. The new penalties will be as follows: a $85,637
penalty for each mailing less than 50,000 pieces, $171,269 for each
mailing of 50,000 to 100,000 pieces, and $17,128 for each additional
10,000 pieces above 100,000 not to exceed $3,425,405.
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 $39,740 for each mailing that
is less than 50,000 pieces, $79,481 for each mailing of 50,000 to
100,000 pieces, and an additional $7,948 for each additional 10,000
pieces above 100,000 not to exceed $1,589,589. The new penalties will
be $42,818 for each mailing that is less than 50,000 pieces, $85,637
for each mailing of 50,000 to 100,000 pieces, and an additional $8,564
for each additional 10,000 pieces above 100,000 not to exceed
$1,712,703.
39 U.S.C. 3012(d)--Misleading References to the United States
Government; Sweepstakes and Deceptive Mailings
Persons may be liable to the United States for a civil penalty
under 39 U.S.C. 3012(d) for sending certain deceptive mail matter
described in 39 U.S.C. 3001(h)-(k), including:
<bullet> Solicitations making false claims of Federal Government
connection or approval;
<bullet> Certain solicitations for the purchase of a product or
service that may be obtained without cost from the Federal Government;
<bullet> Solicitations containing improperly prepared ``facsimile
checks''; and
<bullet> 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.
Currently, under the implementing regulations, this penalty is not
to exceed $15,897 for each mailing. The new penalty will be $17,128.
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 $3,179,178 per violation,
pursuant to the implementing regulations. The new penalty may not
exceed $3,425,405 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 $15,897 per violation for each mailing to an individual. The
new penalty is $17,128 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 $344, but not more than $137,060 for each
violation, pursuant to the implementing regulations. The new penalty is
at least $371, but not more than $147,675 for each violation.
Adjustments to Regulatory Postal Service Civil Monetary Penalties
In October 1986, Congress enacted the Program Fraud Civil Remedies
Act, 31 U.S.C. 3801-3812. The Program Fraud Civil Remedies Act
established an administrative remedy against any person who makes, or
causes to be made, a false claim or written statement to certain
Federal agencies. The Act requires each covered agency to promulgate
rules and regulations necessary to implement its provisions. The Postal
Service's implementing regulations are found in part 273 of title 39,
Code of Federal Regulations. The current penalty amount is $12,537. The
new penalty amount is $13,508.
List of Subjects
39 CFR Part 233
Administrative practice and procedure, Banks, Banking, Credit,
Crime, Infants and children, Law enforcement, Penalties, Privacy,
Seizures and forfeitures.
39 CFR Part 273
Administrative practice and procedure, Claims, Fraud, Penalties.
For the reasons set out in the preamble, the Postal Service amends
39 CFR parts 233 and 273 as follows:
PART 233--INSPECTION SERVICE AUTHORITY
0
1. The authority citation for part 233 continues 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 ``$79,481'' and add in its place
``$85,637'', remove ``$158,958'' and add in its place ``$171,269'',
remove ``$15,897'' and add in its place ``$17,128'', and remove
``$3,179,178'' and add in its place ``$3,425,405'';
0
b. In paragraph (b), remove ``$39,740'' and add in its place
``$42,818'', remove ``$79,481'' and add in its place ``$85,637'',
remove ``$7,948'' and add in its place ``$8,564'', and remove
``$1,589,589'' and add in its place ``$1,712,703'';
0
c. In paragraph (c)(4), remove ``$15,897'' and add in its place
``$17,128'';
0
d. In paragraph (d), remove ``$3,179,178'' and add in its place
``$3,425,405'';
0
e. In paragraph (e), remove ``$15,897'' and add in its place
``$17,128''; and
0
f. In paragraph (f), remove ``$344'' and add in its place ``$371'' and
remove ``$137,060'' and add in its place ``$147,675''.
[[Page 1515]]
PART 273--ADMINISTRATION OF PROGRAM FRAUD CIVIL REMEDIES ACT
0
3. The authority citation for part 273 continues to read as follows:
Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 401.
0
4. In Sec. 273.3, in paragraph (a)(1)(iv), add a sentence to the end
of the paragraph to read as follows:
Sec. 273.3 Liability for false claims and statements.
* * * * *
(a) * * *
(1) * * *
(iv) * * * As adjusted under Public Law 114-74, the penalty is
$13,508 per claim.
* * * * *
Tram Pham,
Attorney, Ethics & Legal Compliance.
[FR Doc. 2023-00322 Filed 1-10-23; 8:45 am]
BILLING CODE 7710-12-P
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</html>Indexed from Federal Register on January 11, 2023.
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.