Rule2023-05769
Inflation Adjustment of Civil Monetary Penalties
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
March 21, 2023
Effective
March 21, 2023
Issuing agencies
Treasury Department
Abstract
The Department of the Treasury ("Department" or "Treasury") publishes this final rule to adjust its civil monetary penalties ("CMPs") for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (collectively referred to herein as "the Act"). This rule adjusts CMPs within the jurisdiction of two components of Departmental Offices for 2022 and 2023.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 54 (Tuesday, March 21, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 54 (Tuesday, March 21, 2023)]
[Rules and Regulations]
[Pages 16885-16887]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05769]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury
31 CFR Parts 16, 27, and 50
Inflation Adjustment of Civil Monetary Penalties
AGENCY: Departmental Offices Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury (``Department'' or
``Treasury'') publishes this final rule to adjust its civil monetary
penalties (``CMPs'') for inflation as mandated by the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015
(collectively referred to herein as ``the Act''). This rule adjusts
CMPs within the jurisdiction of two components of Departmental Offices
for 2022 and 2023.
DATES: This rule is effective March 21, 2023.
FOR FURTHER INFORMATION CONTACT: For information regarding the
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW,
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), or
Sherry Rowlett, Program Policy Analyst, Federal Insurance Office, at
(202) 622-1890 (not a toll free number). Persons who have difficulty
hearing or speaking may access these numbers via TTY by calling the
toll-free Federal Relay Service at (800) 877-8339.
For information regarding the Treasury-wide CMPs, contact Richard
Dodson, Senior Counsel, General Law, Ethics, and Regulation, 202-622-
9949.
SUPPLEMENTARY INFORMATION:
I. Background
In order to improve the effectiveness of CMPs and to maintain their
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires
Federal agencies to adjust each CMP provided by law within the
jurisdiction of the agency. The 2015 Act requires agencies to adjust
the level of CMPs with an initial ``catch-up'' adjustment through an
interim final rulemaking and to make subsequent annual adjustments for
inflation, without needing to provide notice and
[[Page 16886]]
the opportunity for public comment required by 5 U.S.C. 553. This rule
constitutes the Department's 2022 and 2023 annual adjustment. The 2015
Act provides that any increase in a CMP shall apply to CMPs that are
assessed after the date the increase takes effect, regardless of
whether the underlying violation predated such increase.\1\
---------------------------------------------------------------------------
\1\ However, the increased CMPs apply only with respect to
underlying violations occurring after the date of enactment of the
2015 Act, i.e., after November 2, 2015.
---------------------------------------------------------------------------
II. Method of Calculation
The method of calculating CMP adjustments applied in this final
rule is required by the 2015 Act. Under the 2015 Act and the Office of
Management and Budget guidance required by the 2015 Act, annual
inflation adjustments subsequent to the initial catch-up adjustment are
to be based on the percent change between the Consumer Price Index for
all Urban Consumers (``CPI-U'') for the October preceding the date of
the adjustment and the prior year's October CPI-U. As set forth in
Office of Management and Budget (OMB) Memorandum M-22-07 of December
15, 2021, the adjustment multiplier for 2022 is 1.06222. Additionally,
as set forth in OMB Memorandum M-23-05 of December 15, 2022, the
adjustment multiplier for 2023 is 1.07745. In order to complete the
2022 and 2023 annual adjustments, each current CMP is multiplied by the
2022 and 2023 adjustment multipliers. Under the 2015 Act, any increase
in CMP must be rounded to the nearest multiple of $1.
With regard to the CMPs assessed under 31 U.S.C. 3802(a), the
penalty assessment for 2021 ($8,212) is multiplied by 1.06222,
resulting in a penalty of $8,723 for 2022. Multiplying $8,723 by 1.
07745 results in a penalty of $9,399 for 2023.
With regard to the CMPs assessed under 31 U.S.C. 333(c), the first
penalty under this section was adjusted to $8,212 in 2021. This amount
is multiplied by 1.06222, resulting in a penalty of $8,723 for 2022.
Multiplying $8,723 by 1. 07745 results in a penalty of $9,399 for 2023.
The second penalty under this section was adjusted to $41,056 in 2021.
Multiplying this amount by 1.06222 results in a penalty of $43,611 for
2022. Multiplying $43,611 by 1.07745 results in a penalty of $46,989
for 2023.
Finally, with regard to the CMP assessed under Section 104 of Title
I, Public Law 107-297, as amended, the penalty assessment for 2021
($1,436,220) is multiplied by 1.06222, resulting in a penalty of
$1,525,582 for 2022. Multiplying $1,525,582 by 1.07745 results in a
penalty of $1,643,738 for 2023.
Procedural Matters
1. Administrative Procedure Act
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Section 701(b)) requires agencies to make annual
adjustments for inflation to CMPs, without needing to provide notice
and the opportunity for public comment and a delayed effective date
required by 5 U.S.C. 553. Additionally, the methodology used for
adjusting CMPs for inflation is provided by statute, with no discretion
provided to agencies regarding the substance of the adjustments for
inflation to CMPs. The Department is charged only with performing
ministerial computations to determine the dollar amount of adjustments
for inflation to CMPs. Accordingly, prior public notice, an opportunity
for public comment, and a delayed effective date are not required for
this rule.
2. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
3. Executive Order 12866
This rule is not a significant regulatory action as defined in
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Public Law
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR
part 1320, do not apply to this rule because there are no new or
revised recordkeeping or reporting requirements.
List of Subjects
31 CFR Part 16
Administrative Practice and Procedure, Claims, Fraud, Penalties.
31 CFR Part 27
Administrative Practice and Procedure, Penalties.
31 CFR Part 50
Insurance, Terrorism.
Authority and Issuance
For the reasons set forth in the preamble, parts 16, 27, and 50 of
title 31 of the Code of Federal Regulations are amended as follows:
PART 16--REGULATIONS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
0
1. The authority citation for part 16 continues to read as follows:
Authority: 31 U.S.C. 3801-3812.
0
2. Amend Sec. 16.3 by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to
read as follows:
Sec. 16.3 Basis for civil penalties and assessments.
(a) * * *
(1) * * *
(iv) Is for payment for the provision of property or services which
the person has not provided as claimed, shall be subject, in addition
to any other remedy that may be prescribed by law, to a civil penalty
of not more than $9,399 for each such claim.
* * * * *
(b) * * *
(1) * * *
(ii) Includes or is accompanied by an express certification or
affirmation of the truthfulness and accuracy of the content of the
statement, shall be subject, in addition to any other remedy that may
be prescribed by law, to a civil penalty of not more than $9,399 for
each such statement.
* * * * *
PART 27--CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE
TREASURY NAMES, SYMBOLS, ETC.
0
3. The authority citation for part 27 continues to read as follows:
Authority: 31 U.S.C. 321, 333.
0
4. Amend Sec. 27.3 by revising paragraph (c) to read as follows:
Sec. 27.3 Assessment of civil penalties.
* * * * *
(c) Civil penalty. An assessing official may impose a civil penalty
on any person who violates the provisions of paragraph (a) of this
section. The amount of a civil monetary penalty shall not exceed $9,399
for each and every use of any material in violation of paragraph (a),
except that such penalty shall not exceed $46,989 for each and every
use if such use is in a broadcast or telecast.
* * * * *
PART 50--TERRORISM RISK INSURANCE PROGRAM
0
5. The authority citation for part 50 is revised to read as follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as
[[Page 16887]]
amended by Pub. L. 109-144, 119 Stat. 2660, Pub. L. 110-160, 121
Stat. 1839, Pub. L. 114-1, 129 Stat. 3, and Pub. L. 116-94, 133
Stat. 2534 (15 U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601,
Title VII (28 U.S.C. 2461 note); Pub. L. 116-94, Div. I, Title V,
Sec. 501, 133 Stat. 3026.
0
6. Amend Sec. 50.83 by revising paragraph (a) to read as follows:
Sec. 50.83 Adjustment of civil monetary penalty amount.
(a) Inflation adjustment. Any penalty under the Act and these
regulations may not exceed the greater of $1,643,738 and, in the case
of any failure to pay, charge, collect or remit amounts in accordance
with the Act or these regulations, such amount in dispute.
* * * * *
Kayla Arslanian,
Executive Secretary.
[FR Doc. 2023-05769 Filed 3-20-23; 8:45 am]
BILLING CODE 4810-AK-P
</pre></body>
</html>Indexed from Federal Register on March 21, 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.