Rule2023-00579
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 13, 2023
Effective
January 13, 2023
Issuing agencies
Defense Department
Abstract
The DoD 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 88 Issue 9 (Friday, January 13, 2023)</title>
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[Federal Register Volume 88, Number 9 (Friday, January 13, 2023)]
[Rules and Regulations]
[Pages 2239-2241]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00579]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 269
[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL58
Civil Monetary Penalty Inflation Adjustment
AGENCY: Office of the Under Secretary of Defense (Comptroller),
Department of Defense (DoD).
ACTION: Final rule.
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SUMMARY: The DoD 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 January 13, 2023.
FOR FURTHER INFORMATION CONTACT: Dzenana Dzanic, 703-508-9277.
SUPPLEMENTARY INFORMATION:
Background Information
The Federal Civil Penalties Inflation Adjustment Act of 1990,
Public Law 101-410, codified at 28 U.S.C. 2461, 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 DoD'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 to maintain
their deterrent effect. The DoD 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 2023
of 1.07745 prescribed in OMB Memorandum M-23-05, ``Implementation of
Penalty Inflation Adjustments for 2023, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015.'' The
DoD's 2023 adjustments for inflation to CMPs apply only to those CMPs,
including those whose associated violation predated such adjustment,
which are assessed by the DoD 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 5 U.S.C. 553. 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
DoD 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 DoD,
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 DoD
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
[[Page 2240]]
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 Executive Orders.
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 OMB 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.
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 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)
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New adjusted
Maximum maximum
United States Code Civil monetary penalty description penalty amount penalty amount
as of 2022 ($) ($)
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National Defense Authorization Act for FY Unauthorized Activities Directed at 144,887 156,108
2005, 10 U.S.C 113, note. or Possession of Sunken Military
Craft.
10 U.S.C. 1094(c)(1)....................... Unlawful Provision of Health Care.. 12,722 13,707
10 U.S.C. 1102(k).......................... Wrongful Disclosure--Medical .............. ..............
Records:.
First Offense...................... 7,523 8,106
Subsequent Offense................. 50,152 54,036
10 U.S.C. 2674(c)(2)....................... Violation of the Pentagon 2,073 2,234
Reservation Operation and Parking
of Motor Vehicles Rules and
Regulations.
31 U.S.C. 3802(a)(1)....................... Violation Involving False Claim.... 12,537 13,508
31 U.S.C. 3802(a)(2)....................... Violation Involving False Statement 12,537 13,508
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1) False claims....................... 22,426 24,163
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1) Claims submitted with a false 22,426 24,163
certification of physician license.
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42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2) Claims presented by excluded party. 22,426 24,163
42 U.S.C. 1320a-7a(a); 32 CFR Employing or contracting with an 22,426 24,163
200.210(a)(2); (b)(2)(ii). excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1) Pattern of claims for medically 22,426 24,163
unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2) Ordering or prescribing while 22,426 24,163
excluded.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(5) Known retention of an overpayment.. 22,426 24,163
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(4) Making or using a false record or 112,131 120,816
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 to 33,640 36,245
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, omissions, 112,131 120,816
misrepresentations in an
enrollment application.
42 U.S.C. 1320a-7a(a); 32 CFR 200.310(a)... Unlawfully offering, paying, 112,131 120,816
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: January 10, 2023.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2023-00579 Filed 1-12-23; 8:45 am]
BILLING CODE 5001-06-P
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</html>Indexed from Federal Register on January 13, 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.