[Federal Register Volume 61, Number 213 (Friday, November 1, 1996)]
[Rules and Regulations]
[Pages 56449-56450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28037]


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


DEPARTMENT OF VETERANS AFFAIRS
38 CFR Parts 36 and 42

RIN 2900-AI48


Federal Civil Penalties Inflation Adjustment

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: This document amends Department of Veterans Affairs (VA) 
regulations by providing notice as required by statute to reflect 
statutory increases in maximum civil monetary penalties. Under 38 
U.S.C. 3710, VA may impose civil monetary penalties for false loan 
guaranty certifications. Also, under 31 U.S.C. 3802, VA may impose 
civil monetary penalties for fraudulent claims and for fraudulent 
statements. The Federal Civil Monetary Penalties Act of 1990, as 
amended by the Debt Collection Improvement Act of 1996 (the Act), sets 
forth a formula increasing the maximum statutory amounts for civil 
monetary penalties and requires VA to give notice of the new maximum 
amounts by regulation. Accordingly, this document gives notice that the 
maximum civil monetary penalties have been increased as follows: 
$11,000 maximum civil monetary penalty for false loan guaranty 
certifications; $5,500 maximum civil monetary penalty for fraudulent 
claims; and $5,500 maximum civil monetary penalty for fraudulent 
statements.

EFFECTIVE DATE: The effective date is November 1, 1996.

FOR FURTHER INFORMATION CONTACT: Thomas O. Gessel, Director, Office of 
Regulations Management (02D), Office of General Counsel, Department of 
Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 20420, (202) 
273-8605.

SUPPLEMENTARY INFORMATION: Under the provisions of 5 U.S.C. 553, there 
is good cause for dispensing with prior notice and comment. This final 
rule merely sets forth specific information required by statute to be 
set forth in VA regulations. Accordingly, notice and public procedure 
thereon are impracticable, unnecessary, and contrary to the public 
interest.
    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. This final rule merely sets forth specific information required by 
statute to be set forth in VA regulations. Accordingly, no proposed 
rulemaking was required in connection with the adoption of this final 
rule. Pursuant to 5 U.S.C. 605(b), this final rule is exempt from the 
initial and final regulatory flexibility analyses requirements of 
sections 603 and 604.

    There is no Catalog of Federal Domestic Assistance Number for 
the programs affected by this regulation.

List of Subjects

38 CFR Part 36

    Condominiums, Housing, Indians, Individuals with disabilities, Loan 
programs--housing and community development, Loan programs--Indians, 
Loan programs--veterans, Manufactured homes, Mortgage insurance, 
Reporting and recordkeeping requirements, Veterans.

38 CFR Part 42

    Administrative practice and procedure, Claims, Fraud, Penalties.

    Approved: September 27, 1996.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set forth in the preamble, 38 CFR parts 36 and 42 
are amended as follows:

PART 36--LOAN GUARANTY

    1. The authority citation for part 36, Secs. 36.4300 through 
36.4375, is revised to read as follows:

    Authority: Sections 36.4300 through 36.4375 issued under 38 
U.S.C. 101, 501, 3701-3704, 3710, 3712-3714, 3720, 3729, 3732, 
unless otherwise noted.


Sec. 36.4337   [Amended]

    2. In Sec. 36.4337, paragraphs (k)(1)(i) introductory text and 
(k)(3) are amended by removing ``$10,000'' and adding, in its place, 
``$11,000''; and by adding an authority citation at the end of the 
section to read as follows:


Sec. 36.4337   Underwriting standards, processing procedures, lender 
responsibility and lender certification.

* * * * *
(Authority: 38 U.S.C. 3710)

PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES 
ACT

    3. The authority citation for part 42 continues to read as follows:

    Authority: Pub. L. 99-509, secs. 6101-6104, 100 Stat. 1874, to 
be codified at 31 U.S.C. 3801-3812.


Sec. 42.3   [Amended]

    4. In Sec. 42.3, paragraphs (a)(1)(iv) and (b)(1) concluding text 
are amended by removing ``$5,000'' and adding, in their place, 
``$5,500''; and by adding an authority citation at the end of the 
section to read as follows:

[[Page 56450]]

Sec. 42.3   Basis for civil penalties and assessments.

* * * * *
(Authority: 31 U.S.C. 3802)

[FR Doc. 96-28037 Filed 10-31-96; 8:45 am]
BILLING CODE 8320-01-P