Rule2024-00353
Federal Civil Penalties Inflation Adjustment Act Amendments
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 10, 2024
Effective
January 10, 2024
Issuing agencies
Veterans Affairs Department
Abstract
The Department of Veterans Affairs (VA) is amending its regulations to adjust for inflation the amount of civil monetary penalties that are within VA's jurisdiction. These adjustments comply with the requirement in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to make annual adjustments to the penalties.
Full Text
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<title>Federal Register, Volume 89 Issue 7 (Wednesday, January 10, 2024)</title>
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[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Rules and Regulations]
[Pages 1458-1460]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00353]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Parts 36 and 42
RIN 2900-AR89
Federal Civil Penalties Inflation Adjustment Act Amendments
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
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SUMMARY: The Department of Veterans Affairs (VA) is amending its
regulations to adjust for inflation the amount of civil monetary
penalties that are within VA's jurisdiction. These adjustments comply
with the requirement in the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015, to make annual
adjustments to the penalties.
[[Page 1459]]
DATES: This rule is effective January 10, 2024.
FOR FURTHER INFORMATION CONTACT: Stephanie Li, Assistant Director,
Regulations, Legislation, Engagement, and Training, Loan Guaranty
Service (26), Veterans Benefits Administration, Department of Veterans
Affairs, 810 Vermont Avenue NW, Washington, DC 20420, (202) 632-8862.
(This is not a toll-free number.)
SUPPLEMENTARY INFORMATION: On November 2, 2015, the President signed
into law the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Act) (Pub. L. 114-74, sec. 701, 129
Stat. 584, 599-600), which amended the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410, sec. 5, 104 Stat.
890, 891-892), to improve the effectiveness of civil monetary penalties
and to maintain their deterrent effect. The amended statute, codified
in a note following 28 U.S.C. 2461, requires agencies to publish annual
adjustments for inflation, based on the percentage change between the
Consumer Price Index (defined in the statute as the Consumer Price
Index for all-urban consumers (CPI-U) published by the Department of
Labor) for the month of October preceding the date of the adjustment
and the prior year's October CPI-U. 28 U.S.C. 2461 note, secs. 4(a) and
(b) and 5(b)(1). This rule implements the 2024 calendar year inflation
adjustment amounts.
Under 38 U.S.C. 3710(g)(4)(B), VA is authorized to levy civil
monetary penalties against private lenders that originate VA-guaranteed
loans if a lender falsely certifies that they have complied with
certain credit information and loan processing standards, as set forth
by chapter 37, title 38 U.S.C. and part 36, title 38 CFR. Under section
3710(g)(4)(B), any lender who knowingly and willfully makes such a
false certification shall be liable to the United States Government for
a civil penalty equal to two times the amount of the Secretary's loss
on the loan involved or to another appropriate amount, not to exceed
$10,000, whichever is greater. VA implemented the penalty amount in 38
CFR 36.4340(k)(1)(i) and (k)(3). On December 19, 2023, the Office of
Management and Budget (OMB) issued Circular M-24-07. This circular
reflects that the October 2022 CPI-U was 298.012 and the October 2023
CPI-U was 307.671, resulting in an inflation adjustment multiplier of
1.03241. Accordingly, the calendar year 2024 inflation revision imposes
an adjustment from $27,018 to $27,894.
Under 31 U.S.C. 3802, VA can impose monetary penalties against any
person who makes, presents, or submits a claim or written statement to
VA that the person knows or has reason to know is false, fictitious, or
fraudulent, or who engages in other covered conduct. The statute
permits, in addition to any other remedy that may be prescribed by law,
a civil penalty of not more than $5,000 for each claim. 31 U.S.C.
3802(a)(1) and (2). VA implemented the penalty amount in 38 CFR
42.3(a)(1)(iv) and (b)(1)(ii). As previously noted, OMB Circular M-24-
07 reflects an inflation adjustment multiplier of 1.03241. Therefore,
the calendar year 2024 inflation revision imposes an adjustment from
$13,508 to $13,946.
Accordingly, VA is revising 38 CFR 36.4340(k)(1)(i) and (3) and
42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 2024 inflationary
adjustments for civil monetary penalties assessed or enforced by VA.
Administrative Procedure Act
The Secretary of Veterans Affairs finds that there is good cause
under 5 U.S.C. 553(b)(B) and (d)(3) to dispense with the opportunity
for prior notice and public comment and to publish this rule with an
immediate effective date. The statute requires agencies to make annual
adjustments for inflation to the allowed amounts of civil monetary
penalties ``notwithstanding section 553 of title 5, United States
Code.'' 28 U.S.C. 2461 note, sec. 4(a) and (b). The penalty
adjustments, and the methodology used to determine the adjustments, are
set by the terms of the statute. VA has no discretion to make changes
in those areas. Therefore, an opportunity for prior notice and public
comment and a delayed effective date are unnecessary.
Executive Orders 12866, 13563 and 14094
Executive Order 12866 (Regulatory Planning and Review) directs
agencies to assess the costs and benefits of available regulatory
alternatives and, when regulation is necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health and safety effects, and other advantages;
distributive impacts; and equity). Executive Order 13563 (Improving
Regulation and Regulatory Review) emphasizes the importance of
quantifying both costs and benefits, reducing costs, harmonizing rules,
and promoting flexibility. Executive Order 14094 (Executive Order on
Modernizing Regulatory Review) supplements and reaffirms the
principles, structures, and definitions governing contemporary
regulatory review established in Executive Order 12866 of September 30,
1993 (Regulatory Planning and Review), and Executive Order 13563 of
January 18, 2011 (Improving Regulation and Regulatory Review). The
Office of Information and Regulatory Affairs has determined that this
rulemaking is not a significant regulatory action under Executive Order
12866, as amended by Executive Order 14094. The Regulatory Impact
Analysis associated with this rulemaking can be found as a supporting
document at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601-612, is not applicable
to this rulemaking because notice of proposed rulemaking is not
required. 5 U.S.C. 601(2), 603(a), 604(a).
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any one year. This final rule will have no such effect on
State, local, and tribal governments, or on the private sector.
Paperwork Reduction Act
This final rule contains no provisions constituting a collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).
Congressional Review Act
Pursuant to Subtitle E of the Small Business Regulatory Enforcement
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C.
801 et seq.), the Office of Information and Regulatory Affairs
designated this rule as not satisfying the criteria under 5 U.S.C.
804(2).
List of Subjects
38 CFR Part 36
Condominiums, Housing, Individuals with disabilities, Loan
programs--housing and community development, Loan programs--veterans,
Manufactured homes, Mortgage insurance, Reporting and recordkeeping
requirements, Veterans.
38 CFR Part 42
Administrative practice and procedure, Claims, Fraud, Penalties.
[[Page 1460]]
Signing Authority
Denis McDonough, Secretary of Veterans Affairs, approved and signed
this document on January 4, 2024, and authorized the undersigned to
sign and submit the document to the Office of the Federal Register for
publication electronically as an official document of the Department of
Veterans Affairs.
Luvenia Potts
Regulation Development Coordinator, Office of Regulation Policy &
Management, Office of General Counsel, Department of Veterans Affairs.
For the reasons stated in the preamble, the Department of Veterans
Affairs amends 38 CFR parts 36 and 42 as set forth below:
PART 36--LOAN GUARANTY
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1. The authority citation for part 36 continues to read as follows:
Authority: 38 U.S.C. 501 and 3720.
Sec. 36.4340 [Amended]
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2. In Sec. 36.4340, amend paragraphs (k)(1)(i) introductory text and
(k)(3) by removing ``$27,018'' and adding in its place ``$27,894''.
PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES
ACT
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3. The authority citation for part 42 continues to read as follows:
Authority: Pub. L. 99-509, secs. 6101-6104, 100 Stat. 1874,
codified at 31 U.S.C. 3801-3812.
Sec. 42.3 [Amended]
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4. In Sec. 42.3, amend paragraphs (a)(1)(iv) and (b)(1)(ii) by
removing ``$13,508'' and adding in its place ``$13,946''.
[FR Doc. 2024-00353 Filed 1-9-24; 8:45 am]
BILLING CODE 8320-01-P
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</html>Indexed from Federal Register on January 10, 2024.
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