[Federal Register Volume 61, Number 210 (Tuesday, October 29, 1996)]
[Rules and Regulations]
[Pages 55750-55751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27348]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 273


Liabilities for False Claims and Statements

AGENCY: Postal Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule amends sections of the Postal Service regulations 
under the Program Fraud Civil Remedies Act regarding liabilities of 
false claims and statements to allow cost-of-living or inflation 
adjustments to civil monetary penalties administered by the Postal 
Service.

EFFECTIVE DATE: October 23, 1996.

FOR FURTHER INFORMATION CONTACT: Elizabeth P. Martin, (202) 268-3022.

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990, 28 U.S.C. 2461 note, amended by the Debt 
Collection Improvement Act of 1996, Pub. L. 104-134, 31001(s), 110 
Stat. 1321 (1996), requires agencies that assess civil monetary 
penalties to adjust their civil monetary penalties for inflation. The 
Postal Service may seek a civil penalty procedure under 31 U.S.C. 3802 
for violations involving false claims and statements. The Postal 
Service is governed by 28 U.S.C. 2641 note, and accordingly, amends its 
civil penalties to reflect changes in Secs. 273.3(a)(1) and 
273.3(b)(1). Both sections are revised to increase the assessment of 
civil penalties from $5,000 to $5,500.

List of Subjects in 39 CFR Part 273

    Administrative practice and procedure, Claims, Fraud, Penalties, 
Postal Service.

    For the reasons set out in this document, the Postal Service amends 
39 CFR part 273 as follows:

PART 273--ADMINISTRATION OF PROGRAM FRAUD CIVIL REMEDIES ACT

    1. The authority citation for 39 CFR part 273 continues to read as 
follows:

    Authority: 31 U.S.C. Chapter 38; 39 U.S.C. 401.

    2. Section 273.3 is amended by revising paragraphs (a)(1) and 
(b)(1) to read as follows:


Sec. 273.3 Liability for false claims and statements.

* * * * *
    (a) Claims. (1) Any person who makes, presents, or submits, or 
causes to be made, presented, or submitted, a claim that the person 
knows or has reason to know--
    (i) Is false, fictitious, or fraudulent; or
    (ii) Includes or is supported by any written statement asserting a 
material fact which is false, fictitious, or fraudulent; or
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making, presenting, or 
submitting such statement has a duty to include such material fact; or

[[Page 55751]]

    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed

Shall be subject to, in addition to any other remedy that may be 
prescribed by law, a civil penalty of not more than $5,500 for each 
such claim.
* * * * *
    (b) Statements. (1) Any person who makes, presents, or submits, or 
causes to be made, presented, or submitted, a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making, presenting or submitting such statement 
had a duty to include in such statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement.

Shall be subject to, in addition to any other remedy that may be 
prescribed by law, a civil penalty of not more than $5,500 for each 
such statement.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-27348 Filed 10-28-96; 8:45 am]
BILLING CODE 7710-12-P