Federal Register - February 3, 2021
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Fuente: Federal Register
Federal Register / Vol. 86, No. 21 / Wednesday, February 3, 2021 / Rules and Regulations administrative proceeding or a civil action in the Federal courts.
The Inflation Adjustment Act provides for the regular evaluation of CMPs to ensure that they continue to maintain their deterrent value. The Inflation Adjustment Act required that each agency issue regulations to adjust its CMPs beginning in 1996 and at least every four years thereafter. The Department published its most recent cost adjustment to its CMPs in the Federal Register on January 14, 2020
85 FR 2033, and those adjustments became effective on the date of publication.
The 2015 Act section 701 of Pub. L.
11474 amended the Inflation Adjustment Act to improve the effectiveness of CMPs and to maintain their deterrent effect.
The 2015 Act requires agencies to: 1
Adjust the level of CMPs with an initial catch-up adjustment through an interim final rule IFR; and 2 make subsequent annual adjustments for inflation. Catch-up adjustments are based on the percentage change between the Consumer Price Index for all Urban Consumers CPIU for the month of October in the year the penalty was last adjusted by a statute other than the Inflation Adjustment Act, and the October 2015 CPIU. Annual inflation adjustments are based on the percentage change between the October CPIU
preceding the date of each statutory adjustment, and the prior years October CPIU.1 The Department published an IFR with the initial catch-up penalty adjustment amounts on August 1, 2016
81 FR 50321.
In these final regulations, based on the CPIU for the month of October 2020, not seasonally adjusted, we are annually adjusting each CMP amount by a multiplier for 2021 of 1.01182, as directed by the Office of Management and Budget OMB Memorandum No.
M2110 issued on December 23, 2020.
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The Departments Civil Monetary Penalties The following analysis calculates new CMPs for penalty statutes in the order in which they appear in 34 CFR 36.2.
The penalty amounts are being adjusted up based on the multiplier of 1.01182
provided in OMB Memorandum No. M
2110.
Statute: 20 U.S.C. 1015c5.
Current Regulations: The CMP for 20
U.S.C. 1015c5 Section 131c5 of the Higher Education Act of 1965, as 1 If a statute that created a penalty is amended to change the penalty amount, the Department does not adjust the penalty in the year following the adjustment.
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amended HEA, as last set out in statute in 1998 Pub. L. 105244, title I, section 101a, October 7, 1998, 112
Stat. 1602, is a fine of up to $25,000 for failure by an institution of higher education IHE to provide information on the cost of higher education to the Commissioner of Education Statistics. In the 2020 final rule, we increased this amount to $39,229.
New Regulations: The new penalty for this section is $39,693.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new penalty is calculated as follows: $39,229 1.01182 =
$39,692.69, which makes the adjusted penalty $39,693, when rounded to the nearest dollar.
Statute: 20 U.S.C. 1022da3.
Current Regulations: The CMP for 20
U.S.C. 1022da3 Section 205a3 of the HEA, as last set out in statute in 2008 Pub. L. 110315, title II, section 2012, August 14, 2008, 122 Stat. 3147, is a fine of up to $27,500 for failure by an IHE to provide information to the State and the public regarding its teacher-preparation programs. In the 2020 final rule, we increased this amount to $32,676.
New Regulations: The new penalty for this section is $33,062.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new penalty is calculated as follows: $$32,676 1.01182 =
$33,062.23, which makes the adjusted penalty $33,062, when rounded to the nearest dollar.
Statute: 20 U.S.C. 1082g.
Current Regulations: The CMP for 20
U.S.C. 1082g Section 432g of the HEA, as last set out in statute in 1986
Pub. L. 99498, title IV, 402a, October 17, 1986, 100 Stat. 1401, is a fine of up to $25,000 for violations by lenders and guaranty agencies of Title IV of the HEA, which authorizes the Federal Family Education Loan Program. In the 2020 final rule, we increased this amount to $58,328.
New Regulations: The new penalty for this section is $59,017.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new penalty is calculated as follows: $58,328 1.01182 =
$59,017.44, which makes the adjusted penalty $59,017, when rounded to the nearest dollar.
Statute: 20 U.S.C. 1094c3B.
Current Regulations: The CMP for 20
U.S.C. 1094c3B Section 487c3B of the HEA, as set out in statute in 1986 Pub. L. 99498, title IV, 407a, October 17, 1986, 100 Stat.
1488, is a fine of up to $25,000 for an IHEs violation of Title IV of the HEA or
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its implementing regulations. Title IV
authorizes various programs of student financial assistance. In the 2020 final rule, we increased this amount to $58,328.
New Regulations: The new penalty for this section is $59,017.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new penalty is calculated as follows: $58,328 1.01182 =
$59,017.44, which makes the adjusted penalty $59,017, when rounded to the nearest dollar.
Statute: 20 U.S.C. 1228cc2E.
Current Regulations: The CMP for 20
U.S.C. 1228cc2E Section 429 of the General Education Provisions Act, as set out in statute in 1994 Pub. L. 103
382, title II, 238, October 20, 1994, 108
Stat. 3918, is a fine of up to $1,000 for an educational organizations failure to disclose certain information to minor students and their parents. In the 2020
final rule, we increased this amount to $1,722.
New Regulations: The new penalty for this section is $1,742.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new penalty is calculated as follows: $1,722 1.01182 =
$1,742.35, which makes the adjusted penalty $1,742, when rounded to the nearest dollar.
Statute: 31 U.S.C. 1352c1 and c2A.
Current Regulations: The CMPs for 31
U.S.C. 1352c1 and c2A, as set out in statute in 1989 Pub. L. 101121, title III, 319a1, October 23, 1989, 103 Stat. 750, are a fine of $10,000 to $100,000 for recipients of Government grants, contracts, etc. that improperly lobby Congress or the Executive Branch with respect to the award of Government grants and contracts. In the 2020 final rule, we increased these amounts to $20,489 to $204,892.
New Regulations: The new penalties for these sections are $20,731 to $207,314.
Reason: Using the multiplier of 1.01182 from OMB Memorandum No.
M2110, the new minimum penalty is calculated as follows: $20,489 1.01182
= $20,731.18, which makes the adjusted penalty $20,731, when rounded to the nearest dollar. The new maximum penalty is calculated as follows:
$204,892 1.01182 = $207,313.82, which makes the adjusted penalty $207,314, when rounded to the nearest dollar.
Statute: 31 U.S.C. 3802a1 and a2.
Current Regulations: The CMPs for 31
U.S.C. 3802a1 and a2, as set out in statute in 1986 Pub. L. 99509, title VI,
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