Rule2025-00715
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 15, 2025
Effective
January 15, 2025
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 90 Issue 9 (Wednesday, January 15, 2025)</title>
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[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Rules and Regulations]
[Pages 3693-3695]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00715]
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DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 269
[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL82
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 on January 15, 2025.
FOR FURTHER INFORMATION CONTACT: Nicole Gleicher-Bye, 703-692-2754.
SUPPLEMENTARY INFORMATION:
Background Information
The Federal Civil Penalties Inflation Adjustment Act of 1990,
Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461, note), as amended by
the Debt Collection Improvement Act of 1996, Public Law 104-134, April
26, 1996, and further amended by the Federal
[[Page 3694]]
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the
2015 Act), Public Law 114-74, November 2, 2015, required agencies to
annually adjust the level of CMPs for inflation to improve their
effectiveness and maintain their deterrent effect. The 2015 Act
required 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 described in
the 2015 Act. 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 and to
maintain their deterrent effect. The Department of Defense 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 2025 of 1.02598 prescribed in OMB Memorandum
M-25-02, ``Implementation of Penalty Inflation Adjustments for 2025,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015,'' dated December 19, 2024. The DoD's 2025
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 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,'' as Amended
by Executive Order 14094, ``Modernizing Regulatory Review'' and
Executive Order 13563, ``Improving Regulation and Regulatory Review''
Executive Orders 12866 (as amended by Executive Order 14094) and
13563 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;
distribution of impacts; and equity). Executive Order 13563 emphasizes
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, as amended by E.O. 14094.
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
[[Page 3695]]
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
Tribe 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--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT
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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Maximum penalty New adjusted
United States Code Civil monetary penalty description amount as of 01/12/ maximum penalty
24 amount
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National Defense Authorization Act Unauthorized Activities Directed at 161,168 165,355
for FY 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... 14,152 14,519
10 U.S.C. 1102(k)................. Wrongful Disclosure--Medical
Records:
First Offense.................... 8,368 8,586
Subsequent Offense............... 55,788 57,237
10 U.S.C. 2674(c)(2).............. Violation of the Pentagon 2,306 2,366
Reservation Operation and Parking
of Motor Vehicles Rules and
Regulations.
31 U.S.C. 3802(a)(1).............. Violation Involving False Claim..... 13,946 14,308
31 U.S.C. 3802(a)(2).............. Violation Involving False Statement. 13,946 14,308
42 U.S.C. 1320a-7a(a); 32 CFR False claims........................ 24,946 25,594
200.210(a)(1).
42 U.S.C. 1320a-7a(a); 32 CFR Claims submitted with a false 24,946 25,594
200.210(a)(1). certification of physician license.
42 U.S.C. 1320a-7a(a); 32 CFR Claims presented by excluded party.. 24,946 25,594
200.210(a)(2).
42 U.S.C. 1320a-7a(a); 32 CFR Employing or contracting with an 24,946 25,594
200.210(a)(2); (b)(2) (ii). excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR Patterns of claims for medically 24,946 25,594
200.210(a)(1). unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR Ordering or prescribing while 24,946 25,594
200.210(a)(2). excluded.
42 U.S.C. 1320a-7a(a); 32 CFR Known retention of an overpayment... 24,946 25,594
200.210(a)(5).
42 U.S.C. 1320a-7a(a); 32 CFR Making or using a false record or 124,731 127,972
200.210(a)(4). statement that is material to a
false or fraudulent claim.
42 U.S.C. 1320a-7a(a); 32 CFR Failure to grant timely access to 37,420 38,392
200.210(a)(6). OIG for audits, investigations,
evaluations, or other statutory
functions of OIG.
42 U.S.C. 1320a-7a(a); 32 CFR Making false statements, omissions, 124,731 127,972
200.210(a)(3). misrepresentations in an enrollment
application.
42 U.S.C. 1320a-7a(a); 32 CFR Unlawfully offering, paying, 124,731 127,972
200.310(a). 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 8, 2025.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2025-00715 Filed 1-14-25; 8:45 am]
BILLING CODE 6001-FR-P
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</html>Indexed from Federal Register on January 15, 2025.
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