Federal Register - December 13, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Rules and Regulations 2021 the civil penalties that were most recently adjusted as of June 19, 2020.
Under the statutory formula, the adjustments made by this rule are based on the Bureau of Labor Statistics Consumer Price Index for October 2020.
The Office of Management and Budget OMB Memorandum for the Heads of Executive Departments and Agencies M2110 Dec. 23, 2020 https
www.whitehouse.gov/wp-content/
uploads/2020/12/M-21-10.pdf last visited January 6, 2021, instructs that the applicable inflation factor for this adjustment is 1.01182.
Accordingly, this rule adjusts the civil penalty amounts in 28 CFR 85.5 by applying this inflation factor mechanically to each of the civil penalty amounts listed rounded to the nearest dollar.
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Example In 2016, the Program Fraud Civil Remedies Act penalty was increased to $10,781 in accordance with the adjustment requirements of the BBA.
For 2017, where the applicable inflation factor was 1.01636, the existing penalty of $10,781 was multiplied by 1.01636 and revised to $10,957
rounded to the nearest dollar.
For 2018, where the applicable inflation factor is 1.02041, the existing penalty of $10,957 was multiplied by 1.02041 and revised to $11,181
rounded to the nearest dollar.
Had an adjustment rule been published in 2019, where the applicable inflation factor was 1.02041, the existing penalty of $11,181 would have been multiplied by 1.02522 and revised to $11,463 rounded to the nearest dollar.
For the final rule in 2020 in which the ending 2019 penalty amounts were used as the starting penalty amounts for purposes of calculation the starting penalty of $11,463 was multiplied by 1.01764 and revised to $11,665
rounded to the nearest dollar.
For this final rule in 2021, where the applicable inflation factor is 1.01182, the existing penalty of $11,665
is multiplied by 1.01182 and revised to $11,803 rounded to the nearest dollar.
This rule adjusts for inflation civil monetary penalties within the jurisdiction of the Department of Justice for purposes of the Inflation Adjustment Act, as amended. Other agencies are responsible for the inflation adjustments of certain other civil monetary penalties that the Departments litigating components bring suit to collect. The reader should consult the regulations of those other agencies for inflation adjustments to those penalties.
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III. Effective Date of Adjusted Civil Penalty Amounts Under this rule, the adjusted civil penalty amounts are applicable only to civil penalties assessed after December 13, 2021, with respect to violations occurring after November 2, 2015, the date of enactment of the BBA.
The penalty amounts set forth in the existing table in 28 CFR 85.5 are applicable to civil penalties assessed after August 1, 2016, and on or before the effective date of this rule, with respect to violations occurring after November 2, 2015. Civil penalties for violations occurring on or before November 2, 2015, and assessments made on or before August 1, 2016, will continue to be subject to the civil monetary penalty amounts set forth in the Departments regulations in 28 CFR
parts 20, 22, 36, 68, 71, 76, and 85 as such regulations were in effect prior to August 1, 2016 or as set forth by statute if the amount had not yet been adjusted by regulation prior to August 1, 2016.
IV. Statutory and Regulatory Analyses A. Administrative Procedure Act The BBA provides that, for each annual adjustment made after the initial adjustments of civil penalties in 2016, the head of an agency shall adjust the civil monetary penalties each year notwithstanding 5 U.S.C. 553.
Accordingly, this rule is being issued as a final rule without prior notice and public comment, and without a delayed effective date.
B. Regulatory Flexibility Act Only those entities that are determined to have violated Federal law and regulations would be affected by the increase in the civil penalty amounts made by this rule. A Regulatory Flexibility Act analysis is not required for this rule because publication of a notice of proposed rulemaking was not required. See 5 U.S.C. 603a.
C. Executive Orders 12866 and 13563
Regulatory Review This final rule has been drafted in accordance with Executive Order 12866, Regulatory Planning and Review, section 1b, The Principles of Regulation, and in accordance with Executive Order 13563, Improving Regulation and Regulatory Review, section 1, General Principles of Regulation. Executive Orders 12866 and 13563 direct agencies, in certain circumstances, to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits
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including potential economic, environmental, public health and safety effects, distributive impacts, and equity.
The Department of Justice has determined that this rule is not a significant regulatory action under Executive Order 12866, Regulatory Planning and Review, section 3f, and, accordingly, this rule has not been reviewed by the Office of Management and Budget. This final rule implements the BBA by making an across-the-board adjustment of the civil penalty amounts in 28 CFR 85.5 to account for inflation since the adoption of the Departments final rule published on June 19, 2020.
D. Executive Order 13132Federalism This rule will 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. Therefore, in accordance with Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment.
E. Executive Order 12988Civil Justice Reform This regulation meets the applicable standards set forth in sections 3a and 3b2 of Executive Order 12988.
F. Unfunded Mandates Reform Act of 1995
This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995.
G. Congressional Review Act This rule is not a major rule as defined by the Congressional Review Act, 5 U.S.C. 804. It will not result in an annual effect on the economy of $100
million or more; a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.
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