Rule2024-01085
Program Fraud Civil Remedies: 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 22, 2024
Effective
January 22, 2024
Issuing agencies
Personnel Management Office
Abstract
This rule adjusts the level of civil monetary penalties contained in U.S. Office of Personnel Management regulations implementing the Program Fraud Civil Remedies Act of 1986, in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget guidance.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 14 (Monday, January 22, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 14 (Monday, January 22, 2024)]
[Rules and Regulations]
[Pages 3877-3878]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01085]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 14 / Monday, January 22, 2024 / Rules
and Regulations
[[Page 3877]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 185
RIN 3206-AO65
Program Fraud Civil Remedies: Civil Monetary Penalty Inflation
Adjustment
AGENCY: Office of Personnel Management (OPM).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule adjusts the level of civil monetary penalties
contained in U.S. Office of Personnel Management regulations
implementing the Program Fraud Civil Remedies Act of 1986, in
accordance with the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 and Office of Management and Budget guidance.
DATES: Effective January 22, 2024.
FOR FURTHER INFORMATION CONTACT: Valerie Dew, Office of the General
Counsel, Office of Personnel Management, 1900 E St. NW, Washington, DC
20415, <a href="/cdn-cgi/l/email-protection#3761565b52455e52197352407758475a19505841"><span class="__cf_email__" data-cfemail="5c0a3d30392e35397218392b1c332c31723b332a">[email protected]</span></a>, (202) 606-1700.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (sec.
701 of Pub. L. 114-74, 28 U.S.C. 2461 note) (``the Act''). The Act
required agencies to: (1) adjust the level of civil monetary penalties
with an initial ``catch-up'' adjustment through an interim final rule,
and (2) make subsequent annual adjustments for inflation not later than
January 15 of each year. The purpose of these adjustments is to
maintain the deterrent effect of civil penalties. OPM has updated the
agency's monetary penalties since the passage of the 2015 Act.
This rule takes into account adjustments for the year 2024 based on
inflation since the last adjustment. These calculations were made based
on guidance contained in Office of Management and Budget Memorandum M-
24-07:
----------------------------------------------------------------------------------------------------------------
2023 Inflation 2024 Inflation
CFR citation Description of the penalty adjustment adjustment
----------------------------------------------------------------------------------------------------------------
5 CFR 185.103(a)............................ Civil Penalty for False Claims $13,508 $13,946
5 CFR 185.103(f)(2)......................... Civil Penalty for False 13,508 13,946
Statements.
----------------------------------------------------------------------------------------------------------------
This final rule is being issued without prior public notice or
opportunity for public comments and is effective upon publication in
the Federal Register. The 2015 Act's amendments to the Inflation
Adjustment Act required the agency to adjust penalties initially
through an interim final rulemaking, which did not require the agency
to complete a notice and comment process prior to promulgating the
interim final rule. The amendments also explicitly required the agency
to make subsequent annual adjustments notwithstanding 5 U.S.C. 553 (the
section of the Administrative Procedure Act that normally requires
agencies to engage in notice and comment and to delay the effective
date). The formula used for adjusting the amount of civil penalties is
given by statute, with no discretion provided to OPM regarding the
computation of the adjustments. OPM is charged only with performing
ministerial computations to determine the amount of adjustment to the
civil penalties due to increases in the Consumer Price Index for all
Urban Consumers (CPI-U).
II. Calculation of Adjustment
The Office of Management and Budget (OMB) issues guidance annually
on calculating adjustments. Under this guidance, OPM has described how
to identify applicable civil monetary penalties and calculated the
annual adjustment. A civil monetary penalty is any assessment with a
dollar amount that is levied for a violation of a Federal civil statute
or regulation and is assessed or enforceable through a civil action in
Federal court or an administrative proceeding. A civil monetary penalty
does not include a penalty levied for violation of a criminal statute
or fees for services, licenses, permits, or other regulatory review.
The calculated catch-up adjustment is based on the percent change
between the Consumer Price Index for all Urban Consumers (CPI-U) for
the month of October in the year of the previous adjustment (or in the
year of establishment, if no adjustment has been made) and the October
2015 CPI-U.
Office of Management and Budget Memorandum M 24-07 stated that the
cost-of-living multiplier for calculating adjustments in 2024 was
1.03241. This multiplier is to be applied to the current level of civil
monetary penalties for agencies. When OPM's 2023 penalties of $13,508
are multiplied by 1.03241 and rounded to the nearest dollar, the
resulting penalty amount is $13,946.
III. Procedural Requirements
A. Regulatory Review
OPM has examined the impact of this rule as required by Executive
Orders 12866, 13563, and 14094, which 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, distributive impacts, and equity). OMB has
determined that this rule is not a ``significant regulatory action''
under section 3(f) of Executive Order 12866, as amended by Executive
Order 14094.
B. Regulatory Flexibility Act and Small Business Regulatory Enforcement
Fairness Act
The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)),
requires an agency to prepare a regulatory flexibility analysis for
rules unless the agency certifies that the rule will not have a
significant economic impact on a substantial
[[Page 3878]]
number of small entities. The RFA applies only to rules for which an
agency is required to first publish a proposed rule. See 5 U.S.C.
603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 requires agencies to adjust civil penalties
annually. No discretion is allowed. Thus, the RFA does not apply to
this final rule.
C. Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532)
This rule does not involve a Federal mandate 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 and will not
significantly or uniquely affect small governments.
D. E.O. 12630, Takings
This rule does not have takings implications.
E. E.O. 13132, Federalism
This rule does not have federalism implications. The rule does not
have substantial direct effects on the States, on the relationship
between the National Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
F. E.O. 12988, Civil Justice Reform
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Does not unduly burden the judicial system.
(b) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(c) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
G. E.O. 13175, Consultation With Indian Tribes
In accordance with Executive Order 13175, OPM has evaluated this
rule and determined that it has no tribal implications.
H. Paperwork Reduction Act
This document does not contain information collection requirements
subject to the Paperwork Reduction Act of 1995, Public Law 104-13.
List of Subjects in 5 CFR Part 185
Claims, Fraud, Penalties.
Office of Personnel Management.
Kayyonne Marston,
Federal Register Liaison.
For the reasons set forth in the preamble, OPM amends 5 CFR part
185 as follows:
PART 185--PROGRAM FRAUD CIVIL REMEDIES
0
1. The authority citation for part 185 continues to read as follows:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812.
Sec. 185.103 [Amended]
0
2. In Sec. 185.103, amend paragraphs (a) introductory text and (f)(2)
by removing ``$13,508'' and adding ``$13,946'' in its place.
[FR Doc. 2024-01085 Filed 1-19-24; 8:45 am]
BILLING CODE 6325-48-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 22, 2024.
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.