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Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Rules and Regulations 117.1

Purpose.

b
3 Prescribes that contractors will implement the provisions of this part no later than 6 months from February 24, 2021, with the exception of requirements for reporting foreign travel to the Department of Defense prescribed in SEAD 3 and implemented through this rule. Contractors under the security cognizance of the Department of Defense will begin reporting foreign travel to the Department of Defense no later than 18 months from February 24, 2021.
Dated: August 12, 2021.
Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense.
FR Doc. 202117688 Filed 81821; 8:45 am BILLING CODE 500106P

DEPARTMENT OF DEFENSE
Office of the Secretary 32 CFR Part 269
Docket ID: DOD2016OS0045
RIN 0790AL18

Civil Monetary Penalty Inflation Adjustment Office of the Under Secretary of Defense Comptroller, Department of Defense.
ACTION: Final rule.
AGENCY:

The Department of Defense 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 August 19, 2021.
FOR FURTHER INFORMATION CONTACT:
Kellie Allison, 7036140410.
SUPPLEMENTARY INFORMATION:
lotter on DSK11XQN23PROD with RULES1

SUMMARY:

Background Information The Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101410, 104 Stat. 890 28 U.S.C. 2461, note, as amended by the Debt Collection Improvement Act of 1996,
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Public Law 104134, April 26, 1996, and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 the 2015
Act, Public Law 11474, 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-ofliving adjustment, rounded to the nearest multiple of $1. The cost-ofliving 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 Department of Defenses CMPs were published as an interim final rule in the Federal Register on May 26, 2016 81 FR 3338933391 and became effective on that date. The interim final rule was published as a final rule without change on September 12, 2016 81 FR 6262962631, 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 2021 of 1.01182
prescribed in OMB Memorandum M
2110, Implementation of Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, dated December 16, 2019.
The Department of Defenses 2021
adjustments for inflation to CMPs apply only to those CMPs, including those whose associated violation predated such adjustment, which are assessed by the Department of Defense after the effective date of the new CMP level.
Statement of Authority and Costs and Benefits Pursuant to 5 U.S.C. 553bB, 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
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Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 Section 701b requires agencies, effective 2017, to make annual adjustments for inflation to CMPs notwithstanding section 553 of title 5, United States Code. 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 Department of Defense is charged only with performing ministerial computations to determine the dollar amount of adjustments for inflation to CMPs.
Further, there are no significant costs associated with the regulatory revisions that would impose any mandates on the Department of Defense, 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 Department of Defense 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 and Executive Order 13563, Improving Regulation and Regulatory Review Executive Orders 13563 and 12866
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, distribute 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 is not a significant regulatory action, and was not reviewed by the Office of Management and Budget.
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
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