Rule2024-01554
Annual Civil Monetary Penalties 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 29, 2024
Effective
January 29, 2024
Issuing agencies
Corporation for National and Community Service
Abstract
The Corporation for National and Community Service, which operates as AmeriCorps, is updating its regulations to reflect required annual inflation-related increases to the civil monetary penalties under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Act) and Office of Management and Budget (OMB) guidance.
Full Text
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<title>Federal Register, Volume 89 Issue 19 (Monday, January 29, 2024)</title>
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[Federal Register Volume 89, Number 19 (Monday, January 29, 2024)]
[Rules and Regulations]
[Pages 5435-5436]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01554]
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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
45 CFR Parts 1230 and 2554
RIN 3045-AA87
Annual Civil Monetary Penalties Inflation Adjustment
AGENCY: Corporation for National and Community Service.
ACTION: Final rule.
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SUMMARY: The Corporation for National and Community Service, which
operates as AmeriCorps, is updating its regulations to reflect required
annual inflation-related increases to the civil monetary penalties
under the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Act) and Office of Management and Budget (OMB) guidance.
DATES: This rule is effective January 29, 2024.
FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Office of General
Counsel, at <a href="/cdn-cgi/l/email-protection#ceabafbebeaba28ef2afeea6bcaba8f3" http: americorps.gov">americorps.gov</a>">eappel@<a href="http://americorps.gov">americorps.gov</a></a> or 202-937-6065.
SUPPLEMENTARY INFORMATION:
I. Background
AmeriCorps is a Federal agency that engages millions of Americans
in service. AmeriCorps members and AmeriCorps Seniors volunteers serve
directly with nonprofit organizations to tackle our nation's most
pressing challenges. For more information, visit <a href="http://americorps.gov">americorps.gov</a>.
AmeriCorps has two civil monetary penalties in its regulations. A
civil monetary penalty under the Act is a penalty, fine, or other
sanction that: (1) is for a specific monetary amount as provided by
Federal law or has a maximum amount provided for by Federal law; and
(2) is assessed or enforced by an agency pursuant to Federal law; and
(3) is assessed or enforced pursuant to an administrative proceeding or
a civil action in the Federal courts. (See 28 U.S.C. 2461 note.) 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 Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (sec. 701 of Pub. L. 114-74) (the ``Act'') requires
agencies to adjust their civil monetary penalties for inflation
annually. This rule updates AmeriCorps' two civil penalties for
inflation.
II. Method of Calculation
The inflation adjustment for each applicable civil monetary penalty
is determined using the percent increase in the Consumer Price Index
for all Urban Consumers (CPI-U) for the month of October of the year in
which the amount of each civil money penalty was most recently
established or modified. See December 19, 2023, OMB Memo for the Heads
of Executive Departments and Agencies, M-24-07, Implementation of
Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015. The cost-
of-living adjustment multiplier for 2024, based on the CPI-U for the
month of October 2023, not seasonally adjusted, is 1.03241.
The agency identified two civil penalties in its regulations: (1)
the penalty associated with Restrictions on Lobbying (45 CFR 1230.400)
and (2) the penalty associated with the Program Fraud Civil Remedies
Act (45 CFR 2554.1):
<bullet> The civil monetary penalties related to Restrictions on
Lobbying (45 CFR 1230.400) range from $23,728 to $237,267. Using the
2024 multiplier, the new range of possible civil monetary penalties is
from $24,497 to $244,957.
<bullet> The Program Fraud Civil Remedies Act of 1986 (45 CFR
2554.1) civil monetary penalty has an upper limit of $13,508. Using the
2024 multiplier, the new upper limit of the civil monetary penalty is
$13,946.
III. Summary of Final Rule
This final rule adjusts the civil monetary penalty amounts related
to Restrictions on Lobbying (45 CFR 1230.400) and the Program Fraud
Civil Remedies Act of 1986 (45 CFR 2554.1). The range of civil monetary
penalties related to Restrictions on Lobbying increase from ``$23,728
to $237,267'' to ``$24,497 to $244,957.'' The civil monetary penalties
for the Program Fraud Civil Remedies Act of 1986 increase from ``up to
$13,508'' to ``up to $13,946.''
IV. Regulatory Procedures
A. Determination of Good Cause for Publication Without Notice and
Comment and With an Immediate Effective Date
Section 553(b) of the Administrative Procedure Act (APA) (5 U.S.C.
553) provides that, when an agency for good cause finds that notice and
public comment procedures are impracticable, unnecessary, or contrary
to the public interest, then the agency may issue a rule without
providing notice and an opportunity for prior public comment. The
agency finds that there is good cause to except this rule from the
public notice and comment provisions of the APA in this case. Because
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015 requires the agency to update its regulations based on a
prescribed formula, the agency has no discretion in the nature or
amount of the change to the civil monetary penalties to reflect any
views or suggestions provided by commenters. Accordingly, it would
serve no purpose to provide an opportunity for public comment on this
rule prior to promulgation. Thus, providing for notice and public
comment is impracticable and unnecessary. Additionally, it would not be
possible to meet the deadlines imposed by the Act if we were to first
publish a proposed rule, allow the public sufficient time to submit
comments, analyze the comments, and publish a final rule. Therefore,
notice and comment for these proscribed updates is impracticable and
unnecessary.
Furthermore, the agency finds under section 553(d)(3) of the APA
that good cause exists to make this final rule effective immediately
upon publication in the Federal Register. In the Act,
[[Page 5436]]
Congress expressly required Federal agencies to publish annual
inflation adjustments to civil penalties in the Federal Register by
January 15 of each year, notwithstanding section 553 of the APA. Under
the statutory framework and OMB guidance, the new penalty levels take
effect immediately upon the effective date of the adjustment. The
statutory deadline does not allow time to delay this rule's effective
date beyond publication. Moreover, a delayed effective date would delay
application of the new penalty levels, contrary to Congress's intent.
Accordingly, we are issuing the annual adjustments as a final rule
without prior notice or an opportunity for comment and with an
effective date immediately upon publication in the Federal Register.
B. Review Under Procedural Statutes and Executive Orders
The agency has determined that making technical changes to the
amount of civil monetary penalties in its regulations does not trigger
any requirements under procedural statutes and Executive orders that
govern rulemaking procedures.
List of Subjects
45 CFR Part 1230
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
45 CFR Part 2554
Claims, Fraud, Organization and functions (Government agencies),
Penalties.
For the reasons discussed in the preamble, under the authority of
42 U.S.C. 12651c(c), the Corporation for National and Community Service
amends chapters XII and XXV, title 45 of the Code of Federal
Regulations as follows:
PART 1230--NEW RESTRICTIONS ON LOBBYING
0
1. The authority citation for part 1230 continues to read as follows:
Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub.
L. 93-113; 42 U.S.C. 4951, et seq.; 42 U.S.C. 5060.
Sec. 1230.400 [Amended]
0
2. Amend Sec. 1230.400 by removing ``$23,728'' and ``$237,267''
wherever they appear and adding in their places ``24,497'' and
``$244,957'', respectively.
Appendix A to Part 1230 [Amended]
0
3. Amend appendix A to part 1230 by removing ``$23,728'' and
``$237,267'' wherever they appear and adding in their places
``$24,497'' and ``$244,957'', respectively.
PART 2554--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS
0
4. The authority citation for part 2554 continues to read as follows:
Authority: Pub. L. 99-509, Secs. 6101-6104, 100 Stat. 1874 (31
U.S.C. 3801-3812); 42 U.S.C. 12651c-12651d.
Sec. 2554.1 [Amended]
0
5. Amend Sec. 2554.1 in paragraph (b) by removing ``$13,508'' and
adding in its place ``$13,946''.
Fernando Laguarda,
General Counsel.
[FR Doc. 2024-01554 Filed 1-26-24; 8:45 am]
BILLING CODE 6050-28-P
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