[Federal Register Volume 64, Number 167 (Monday, August 30, 1999)]
[Rules and Regulations]
[Pages 47099-47104]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22347]


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DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Parts 270, 274a, and 280

28 CFR Parts 20, 22, 36, 71, 76, and 85

[AG Order No. 2249-99]
RIN 1105-AA48


Civil Monetary Penalties Inflation Adjustment

AGENCY: Office of the Attorney General, Justice.

ACTION: Final rule.

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SUMMARY: In accordance with the requirements of section 4 of the 
Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, as 
amended by the Debt Collection Improvement Act of 1996, the United 
States Department of Justice is publishing this regulation adjusting 
for inflation the civil monetary penalties assessed or enforced by the 
Department.

DATES: This rule is effective September 29, 1999.

FOR FURTHER INFORMATION CONTACT: Robert Hinchman, Senior Counsel, 
Office of Policy Development, Department of Justice, Room 4258, Main 
Building, 950 Pennsylvania Avenue, NW., Washington, DC. 20530,(202) 
514-8059.

SUPPLEMENTARY INFORMATION:

Background

Why Is the Justice Department Revising Its Civil Monetary 
Penalties?

    The Federal Civil Monetary Penalties Inflation Adjustment Act of 
1990, Pub. L. 101-410 (Adjustment Act), provides for the regular 
evaluation of civil monetary penalties to ensure that they continue to 
maintain their deterrent effect and that penalty amounts due the 
Federal Government are properly accounted for and collected.
    On April 26, 1996, President Clinton signed into law the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996, Pub. L. 104-
134. Section 31001 of that Act, also known as the Debt Collection

[[Page 47100]]

Improvement Act of 1996 (Improvement Act), amended the Adjustment Act 
to provide for more effective tools for government wide collection of 
delinquent debt.
    In particular, section 31001(s)(1) of the Improvement Act amended 
section 4 of the Adjustment Act to require the head of each agency to 
``by regulation adjust each civil monetary penalty provided by law 
within the jurisdiction of the Federal agency'' and to ``publish each 
such regulation in the Federal Register'' not later than one hundred 
eighty days after enactment of the Debt Collection Improvement Act of 
1996. Subsection (s)(1) also added a new section 7 to the Adjustment 
Act providing that any increase in a civil monetary penalty made 
pursuant to this Act shall apply only to violations that occur after 
the date the increase takes effect.

Is There a Limit on the First Adjustment of These Penalties?

    Subsection (s)(2) of the Improvement Act provides that the first 
adjustment of a civil monetary penalty made pursuant to the amendment 
in subsection (s)(1) may not exceed 10 percent of such penalty.

How Often Will These Penalties be Adjusted for Inflation?

    The adjustment for inflation required by the Adjustment Act must be 
done every four years. Pursuant to the Improvement Act, the first 
adjustment was required by October 23, 1996.

What Penalties Imposed Pursuant to the Immigration Reform and 
Control Act of 1986 Does This Rule Adjust and What Penalties Were 
Adjusted by a Recently Published EOIR Rule?

    This rule adjusts, among other things, penalties listed in 8 CFR 
part 274a that the Immigration and Naturalization Service (INS) imposes 
pursuant to 8 U.S.C. 1324a for various specified unlawful acts 
pertaining to the employment of unauthorized aliens. On January 12, 
1999, the Executive Office for Immigration Review (EOIR) issued a rule 
adjusting civil monetary penalties within its area. 64 FR 7066. The 
adjustment of EOIR penalties included penalties at 28 CFR 68.52(d) that 
are imposed pursuant to 8 U.S.C. 1324b for unfair employment practices, 
including discrimination. The Office of Special Counsel for Immigration 
Related Unfair Employment Practices, Civil Rights Division, is 
authorized to seek these penalties at hearings presided over by EOIR 
Administrative Law Judges. The adjustment of these two sets of 
penalties by this rule and by the recent EOIR rule maintains parity 
among fines imposed for violating the employer sanctions and the anti-
discrimination provisions of the Immigration Reform and Control Act of 
1986.
    This rule fulfills the Attorney General's obligations under the 
Improvement Act with respect to all civil monetary penalties, except 
those pertaining to EOIR.

Are There Any Related Regulations of Other Federal Agencies That 
Readers of This Rule Should Consult?

    The Office of Government Ethics (OGE) is publishing elsewhere in 
this issue of the Federal Register a rule adjusting for inflation 
certain Ethics Act and Ethics Reform Act civil monetary penalties that 
are codified at 5 CFR part 2634 and 5 CFR part 2636. Because the 
Department's Civil Division brings Ethics Act enforcement actions, the 
Department and OGE have coordinated the issuance of these regulations. 
For the convenience of the reader, the Department is including in this 
rule adjustments to the same Ethics Act and Ethics Reform Act penalties 
that OGE is making today, in the same amount and effective on the same 
day as the adjustments contained in the OGE rule. Further, as OGE notes 
in the preamble to its rule, the Department and OGE have determined 
that the $200 late filing fee for public financial disclosure reports 
that are more than 30 days overdue (see section 105(d) of the Ethics 
Act, 5 U.S.C. app. 105(d) and 5 CFR 2634.704) is not a civil monetary 
penalty as defined by the Federal Civil Penalties Inflation Adjustment 
Act, as amended. Therefore, that fee is not being adjusted.
    The Department's litigating components bring suit to collect 
various civil monetary penalties of other agencies as well. The reader 
should consult the regulations of those other agencies for any 
inflation adjustments of their penalties.

Are There Any Penalties That Are Not Being Adjusted?

    The Department notes that various civil penalties contained in 
Title 8, Title 21, and Title 28 are not being adjusted by this rule 
because they have been in effect for a short number of years or because 
the penalty scheme is new. Penalties not being adjusted by this rule 
will be adjusted, if appropriate, during the next adjustment required 
by the Debt Collection Improvement Act.

Administrative Procedure Act, 5 U.S.C. 553

    The Department finds that good cause exists under 5 U.S.C. 
553(b)(B) and (d)(3) for immediate implementation of this final rule 
without prior notice and comment. This rule is a nondiscretionary 
ministerial action to conform the amount of civil penalties assessed or 
enforced by the Department of Justice to the statutorily mandated 
ranges. The calculation of these adjustments follows the mathematical 
formula set forth in section 5 of the Adjustment Act.

Regulatory Flexibility Act

    The Attorney General in accordance with the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), has reviewed this rule and by approving it 
certifies that it will not have a significant economic impact on a 
substantial number of small entities. Only those entities which are 
determined to have violated Federal law and regulations would be 
affected by the increase in penalties made by this rule pursuant to the 
statutory requirement.

Executive Order 12866

    This rule has been drafted and reviewed in accordance with 
Executive Order 12866, section 1(b), Principles of Regulation. The 
Department of Justice has determined that this rule is not a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review, and accordingly this rule has not 
been reviewed by the Office of Management and Budget.

Executive Order 12612

    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 
12612, it is determined that this rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Assessment.

Executive Order 12988--Civil Justice Reform

    This regulation meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

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.

[[Page 47101]]

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by the Small Business 
Regulatory Enforcement Fairness Act of 1996, 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; or significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based companies to compete with foreign-
based companies in domestic and export markets.

Plain Language Instructions

    We try to write clearly. If you can suggest how to improve the 
clarity of these regulations, call or write Robert Hinchman, Senior 
Counsel, Office of Policy Development, Department of Justice, Room 
4258, Main Building, 950 Pennsylvania Avenue, N.W., Washington, D.C. 
20530, (202) 514-8059.

List of Subjects

8 CFR Part 270

    Administrative practice and procedure, Aliens, Employment, Fraud, 
Penalties.

8 CFR Part 274a

    Administrative practice and procedure, Aircraft, Immigration, Law 
enforcement, Motor carriers, Motor vehicles, Seizures and forfeitures, 
Vessels.

8 CFR Part 280

    Administrative practice and procedure, Immigration, Penalties.

28 CFR Part 20

    Crime, Penalties, Research, and Statistics.

28 CFR Part 22

    Crime, Juvenile delinquency, Penalties, Privacy, Research, and 
Statistics.

28 CFR Part 36

    Administrative practice and procedure, Alcoholism, Americans with 
disabilities, Buildings, Business and industry, Civil rights, Consumer 
protection, Drug abuse, Handicapped, Historic preservation, Penalties, 
Reporting and recordkeeping requirements.

28 CFR Part 71

    Claims, Fraud, Organization and function (Government agencies), 
Penalties.

28 CFR Part 76

    Drug traffic control, Drug abuse, Authority delegations (Government 
agencies), Penalties.

28 CFR Part 85

    Penalties.

    Accordingly, for the reasons set forth in the preamble, chapter I 
of Title 8 and chapter I of Title 28 of the Code of Federal Regulations 
are amended as follows:

TITLE 8--ALIENS AND NATIONALITY

PART 270--PENALTIES FOR DOCUMENT FRAUD

    1. The authority citation for part 270 is revised to read as 
follows:

    Authority: 8 U.S.C. 1101, 1103, and 1324c; Pub. L. 101-410, 104 
Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.

    2. Section 270.3 is amended by revising paragraph (b)(1)(ii) to 
read as follows:


Sec. 270.3  Penalties.

* * * * *
    (b) * * *
    (1) * * *
    (ii) To pay a civil penalty as follows:
    (A) First offense. Not less than $250 and not exceeding $2,000 for 
each fraudulent document or each proscribed activity described in 
section 274C(a)(1) through (a)(4) of the Act before September 29, 1999, 
and not less than $275 and not exceeding $2,200, for each fraudulent 
document or each proscribed activity on or after September 29, 1999.
    (B) Subsequent offenses. Not less than $2,000 and not more than 
$5,000 for each fraudulent document or each proscribed activity 
described in section 274C(a)(1) through (a)(4) of the Act before 
September 29, 1999, and not less than $2,200 and not exceeding $5,500, 
for each fraudulent document or each proscribed activity occurring on 
or after September 29, 1999.
* * * * *

PART 274a--CONTROL OF EMPLOYMENT OF ALIENS

    3. The authority citation for part 274a is revised to read as 
follows:

    Authority: 8 U.S.C. 1101, 1103, 1324a; 8 CFR part 2; Pub. L. 
101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 
1321.

    4. Section 274a.8 is amended by revising paragraph (b) to read as 
follows:


Sec. 274a.8  Prohibition of indemnity bonds.

* * * * *
    (b) Penalty. Any person or other entity who requires any individual 
to post a bond or security as stated in this section shall, after 
notice and opportunity for an administrative hearing in accordance with 
section 274A(e)(3)(B) of the Act, be subject to a civil monetary 
penalty of $1,000 for each violation before September 29, 1999, and 
$1,100 for each violation occurring on or after September 29, 1999, and 
to an administrative order requiring the return to the individual of 
any amounts received in violation of this section or, if the individual 
cannot be located, to the general fund of the Treasury.
    5. Section 274a.10 is amended by revising paragraph (b)(1)(ii) and 
paragraph (b)(2) introductory text to read as follows:


Sec. 274a.10  Penalties.

* * * * *
    (b) * * *
    (1) * * *
    (ii) To pay a civil fine according to the following schedule:
    (A) First offense--not less than $250 and not more than $2,000 for 
each unauthorized alien with respect to whom the offense occurred 
before September 29, 1999, and not less than $275 and not exceeding 
$2,200, for each unauthorized alien with respect to whom the offense 
occurred occurring on or after September 29, 1999.
    (B) Second offense--not less than $2,000 and not more than $5,000 
for each unauthorized alien with respect to whom the second offense 
occurred before September 29, 1999, and not less than $2,200 and not 
exceeding $5,500, for each unauthorized alien with respect to whom the 
second offense occurred on or after September 29, 1999; or
    (C) More than two offenses--not less than $3,000 and not more than 
$10,000 for each unauthorized alien with respect to whom the third or 
subsequent offense occurred before September 29, 1999, and not less 
than $3,300 and not exceeding $11,000, for each unauthorized alien with 
respect to whom the third or subsequent offense occurred on or after 
September 29, 1999; and
* * * * *
    (2) A respondent determined by the Service (if a respondent fails 
to request a hearing) or by an administrative law judge, to have failed 
to comply with the employment verification requirements as set forth in 
Sec. 274a.2(b), shall be subject to a civil penalty in an amount of not 
less than $100 and not more than $1,000 for each individual with 
respect to whom such violation occurred before September 29, 1999, and 
not less than $110 and not more than $1,100 for each individual with 
respect to whom such violation occurred on or after September

[[Page 47102]]

29, 1999. In determining the amount of the penalty, consideration shall 
be given to:
* * * * *

PART 280--IMPOSITION AND COLLECTION OF FINES

    6. The authority citation for part 280 is revised to read as 
follows:

    Authority: 8 U.S.C. 1103, 1221, 1223, 1227, 1229, 1253, 1281, 
1283, 1284, 1285, 1286, 1322, 1323, and 1330; 66 Stat. 173, 195, 
197, 201, 203, 212, 219, 221-223, 226, 227, 230; Pub. L. 101-410, 
104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.

    7. Section 280.53 is added to read as follows:


Sec. 280.53  Civil monetary penalties inflation adjustment.

    (a) In general. In accordance with the requirements of the Federal 
Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 101-410, 104 
Stat. 890, as amended by the Debt Collection Improvement Act of 1996, 
Pub. L. 104-34, 110 Stat. 1321, the civil monetary penalties provided 
by law within the jurisdiction of the Service and listed in paragraph 
(c) of this section are adjusted as set forth in this section, 
effective for violations occurring on or after September 29, 1999.
    (b) Calculation of adjustment. (1) The inflation adjustments 
described in paragraph (c) of this section were determined by 
increasing the maximum civil monetary penalty or the range of minimum 
and maximum civil monetary penalties, as applicable, for each civil 
monetary penalty assessed or enforced by the Service by the cost-of-
living adjustment as that term is defined by the Federal Civil 
Penalties Inflation Adjustment Act of 1990, Pub. L. 101-410. Any 
increase so determined was rounded to the nearest--
    (i) Multiples of $10 in the case of penalties less than or equal to 
$100;
    (ii) Multiples of $100 in the case of penalties greater than $100 
but less than or equal to $1,000;
    (iii) Multiples of $1,000 in the case of penalties greater than 
$1,000 but less than or equal to $10,000;
    (iv) Multiples of $5,000 in the case of penalties greater than 
$10,000 but less than or equal to $100,000;
    (v) Multiples of $10,000 in the case of penalties greater than 
$100,000 but less than or equal to $200,000; and
    (vi) Multiples of $25,000 in the case of penalties greater than 
$200,000.
    (2) Notwithstanding the provisions of paragraph (b)(1) of this 
section, the initial adjustment for each penalty is capped at 10%.
    (c) Adjustment to penalties. The civil monetary penalties provided 
by law within the jurisdiction of the Service, as set forth in this 
paragraph (c)(1) through (9), are adjusted in accordance with the 
inflation adjustment procedures prescribed in section 5 of the Federal 
Civil Monetary Penalties Inflation Adjustment Act of 1990, Pub. L. 101-
410, effective on or after the September 29, 1999 as follows:
    (1) Section 231(d) of the Act, Lists of Aliens and Citizen 
Passengers Arriving or Departing; Record of Resident Aliens and 
Citizens Leaving Permanently for Foreign Country: from $300 to $330.
    (2) Section 234 of the Act, Designation of Ports of Entry for 
Aliens Arriving by Civil Aircraft: from $2,000 to $2,200.
    (3) Section 251(d) of the Act, List of Alien Crewmen; Reports of 
Illegal Landings: from $200 to $220 for each alien not reported in 
accordance with Sec. 251; and from $5,000 to $5,500 for use of alien 
crewman for longshore work in violation of section 251(d).
    (4) Section 254(a) of the Act, Control of Alien Crewman: from $500 
minimum/$3,000 maximum to $550 minimum/$3,300 maximum.
    (5) Section 255 of the Act, Employment on Passenger Vessels of 
Aliens Afflicted with Certain Disabilities: from $1,000 to $1,100.
    (6) Section 256 of the Act, Discharge of Alien Crewman: from $1,500 
minimum/$3,000 maximum to $1,500 minimum/$3,300 maximum.
    (7) Section 257 of the Act, Bringing Alien Crewmen Into United 
States with Intent to Evade Immigration Laws: from a $10,000 maximum to 
a $11,000 maximum.
    (8) Section 271(a) of the Act, Prevention of Unauthorized Landing 
of Aliens: from $3,000 to $3,300.
    (9) Section 272(a) of the Act, Bringing in Aliens Subject to 
Exclusion on a Health-Related Ground: from $3,000 to $3,300.
    (10) Section 273(b) of the Act, Unlawful Bringing of Aliens Into 
United States: from $3,000 to $3,300.
    (d) Identification of sections requiring no adjustment to 
penalties. The civil monetary penalties provided by law within the 
jurisdiction of the Service, as set forth below in paragraphs (d)(1) 
through (7) of this section require no adjustment:
    (1) Section 240B(d) of the Act, Voluntary Departure.
    (2) Section 243(c)(1)(A) and (B) of the Act, Penalties Related to 
Removal.
    (3) Section 274C(a)(5) and (a)(6) of the Act, Penalties for 
Document Fraud.
    (4) Section 274D of the Act, Penalties for Failure to Depart.
    (5) Section 275(b) of the Act, Entry of Alien at Improper Time or 
Place.

TITLE 28--JUDICIAL ADMINISTRATION

PART 20--CRIMINAL JUSTICE INFORMATION SYSTEMS

    8. The authority citation for part 20 is revised to read as 
follows:

    Authority: 28 U.S.C. 534; Pub. L. 92-544, 86 Stat. 1115; 42 
U.S.C. 3711, et seq.; Pub. L. 99-169, 99 Stat. 1002, 1008-1011, as 
amended by Pub. L. 99-569, 100 Stat. 3190, 3196; Pub. L. 101-410, 
104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.

    9. Section 20.25 is amended by revising the first sentence to read 
as follows:


Sec. 20.25  Penalties.

    Any agency or individual violating subpart B of these regulations 
shall be subject to a civil penalty not to exceed $10,000 for a 
violation occurring before September 29, 1999, and not to exceed 
$11,000 for a violation occurring on after September 29, 1999. * * *

PART 22--CONFIDENTIALITY OF IDENTIFIABLE RESEARCH AND STATISTICAL 
INFORMATION:

    10. The authority citation for part 22 is revised to read as 
follows:

    Authority: Secs. 801(a), 812(a), Omnibus Crime Control and Safe 
Streets Act of 1968, 42 U.S.C. 3701, et seq., as amended (Pub. L. 
90-351, as amended by Pub. L. 93-83, Pub. L. 93-415, Pub. L. 94-430, 
Pub. L. 94-503, Pub. L. 95-115, Pub. L. 96-157, and Pub. L. 98-473); 
secs. 262(b), 262(d), Juvenile Justice and Delinquency Prevention 
Act of 1974, 42 U.S.C. 5601, et seq., as amended (Pub. L. 93-415, as 
amended by Pub. L. 94-503, Pub. L. 95-115, Pub. L. 99-509, and Pub. 
L. 98-473); and secs. 1407(a) and 1407(d) of the Victims of Crime 
Act of 1984, 42 U.S.C. 10601, et seq., Pub. L. 98-473; Pub. L. 101-
410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.

    11. Section 22.29 is revised to read as follows:


Sec. 22.29  Sanctions.

    Where BJA, OJJDP, BJS, NIJ, or OJP believes that a violation of 
section 812(a) of the Act or section 1407(d) of the Victims of Crime 
Act, these regulations, or any grant or contract conditions entered 
into thereunder has occurred, it may initiate administrative actions 
leading to termination of a grant or contract, commence appropriate 
personnel and/or other procedures in cases involving Federal employees, 
and/or initiate appropriate legal actions leading to imposition of a 
civil penalty not to exceed $10,000 for a violation occurring before 
September 29, 1999, and not to exceed $11,000 for a violation occurring 
on or after September 29, 1999 against any person responsible for such 
violations.

[[Page 47103]]

PART 36--NONDISCRIMINATION ON THE BASIS OF DISABILITY BY PUBLIC 
ACCOMMODATIONS AND IN COMMERCIAL FACILITIES

    12. The authority citation for part 36 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 28 U.S.C. 509, 510; 42 U.S.C. 12188(b); 
Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 
Stat. 1321.

    13. Section 36.504 is amended by revising paragraph (a)(3) (i) and 
(ii) to read as follows:


Sec. 36.504  Relief.

    (a) * * *
    (3) * * *
    (i) Not exceeding $50,000 for a first violation occurring before 
September 29, 1999, and not exceeding $55,000 for a first violation 
occurring on or after September 29, 1999; and
    (ii) Not exceeding $100,000 for any subsequent violation occurring 
before September 29, 1999, and not exceeding $110,000 for any 
subsequent violation occurring on or after September 29, 1999.
* * * * *

PART 71--IMPLEMENTATION OF THE PROVISIONS OF THE PROGRAM FRAUD 
CIVIL REMEDIES ACT OF 1986

    14. The authority citation for part 71 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 28 U.S.C. 509, 510; 31 U.S.C. 3801-
3812; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 
110 Stat. 1321.

    15. In Sec. 71.3, the concluding text of paragraphs (a) and (f) are 
removed, and the introductory text of paragraphs (a) and (f) are 
revised to read as follows:


Sec. 71.3  Basis for civil penalties and assessments.

    (a) Any person shall be subject, in addition to any other remedy 
that may be prescribed by law, to a civil penalty of not more than 
$5,000 for each claim listed in paragraphs (a)(1) through (a)(4) of 
this section made before September 29, 1999, and not more than $5,500 
for each such claim made on or after September 29, 1999, if that person 
makes a claim that the person knows or has reason to know:
* * * * *
    (f) Any person shall be subject, in addition to any other remedy 
that may be prescribed by law, to a civil penalty of not more than 
$5,000 for each statement listed in paragraphs (f)(1) and (f)(2) of 
this section made before September 29, 1999, and not more than $5,500 
for each such statement made on or after September 29, 1999, if that 
person makes a written statement that:
* * * * *

PART 76--RULES OF PROCEDURE FOR ASSESSMENT OF CIVIL PENALTIES FOR 
POSSESSION OF CERTAIN CONTROLLED SUBSTANCES

    16-17. The authority citation for part 76 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 21 U.S.C. 844a, 875, 876; 28 U.S.C. 
509, 510,; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 
104-134, 110 Stat. 1321.

    18. Section 76.3 is amended by revising paragraph (a) to read as 
follows:


Sec. 76.3  Basis for civil penalty.

    (a) Any individual who knowingly possesses a controlled substance 
that is listed in Sec. 76.2(h) in violation of 21 U.S.C. 844a shall be 
liable to the United States for a civil penalty in an amount of not to 
exceed $10,000 for each such violation occurring before September 29, 
1999, and not to exceed $11,000 for each such violation occurring on or 
after September 29, 1999.
* * * * *
    19. Part 85 is added to read as follows:

PART 85--CIVIL MONETARY PENALTIES INFLATION ADJUSTMENT

Sec.
85.1  In general.
85.2  Calculation of adjustment.
85.3  Adjustments to penalties.

    Authority: 5 U.S.C. 301, 28 U.S.C. 503; Pub. L. 101-410, 104 
Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.


Sec. 85.1  In general.

    (a) In accordance with the requirements of the Federal Civil 
Penalties Inflation Adjustment Act of 1990, Pub. L. 104-410, 104 Stat. 
890, as amended by the Debt Collection Improvement Act of 1996, Pub. L. 
104-134, 110 Stat. 1321, the civil monetary penalties provided by law 
within the jurisdiction of the Department of Justice and listed in 
section 85.3 are adjusted as set forth in this part, effective for 
violations occurring on or after September 29, 1999.
    (b) Reference should be made to regulations of the Immigration and 
Naturalization Service in title 8 of the Code of Federal Regulations 
for the adjustment of civil monetary penalties pertaining to 
immigration matters. In addition, adjustments to civil penalties 
relating to unauthorized employment of aliens, immigration related 
unfair employment practices, and civil document fraud are addressed in 
28 CFR 68.52.


Sec. 85.2  Calculation of adjustment.

    (a) The inflation adjustments described in Sec. 85.3 were 
determined by increasing the maximum civil monetary penalty or the 
range of minimum and maximum civil monetary penalties, as applicable, 
for each civil monetary penalty assessed or enforced by the Department 
of Justice by the cost-of-living adjustment as that term is defined by 
the Federal Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 
101-410. Any increase so determined was rounded to the nearest--
    (1) Multiples of $10 in the case of penalties less than or equal to 
$100;
    (2) Multiples of $100 in the case of penalties greater than $100 
but less than or equal to $1,000;
    (3) Multiples of $1000 in the case of penalties greater than $1000 
but less than or equal to $10,000;
    (4) Multiples of $5,000 in the case of penalties greater than 
$10,000 but less than or equal to $100,000;
    (5) Multiples of $10,000 in the case of penalties greater than 
$100,000 but less than or equal to $200,000; and
    (6) Multiples of $25,000 in the case of penalties greater than 
$200,000.
    (b) Notwithstanding the provisions of paragraph (a) of this 
section, the initial adjustment for each penalty is capped at 10%.


Sec. 85.3  Adjustments to penalties.

    The civil monetary penalties provided by law within the 
jurisdiction of the respective components of the Department, as set 
forth in paragraphs (a) through (d) of this section, are adjusted in 
accordance with the inflation adjustment procedures prescribed in 
section 5 of the Federal Civil Monetary Penalties Inflation Adjustment 
Act of 1990, Pub. L. 101-410, effective on or after September 29, 1999, 
as follows:
    (a) Civil Division. (1) 5 U.S.C. App. 4 102(f)(6)(C)(i), Ethics in 
Government Act of 1978, knowing and willful disclosure, solicitation, 
or receipt of information with respect to blind trusts: from $10,000 to 
$11,000.
    (2) 5 U.S.C. App. 4 102(f)(6)(C)(ii), Ethics in Government Act of 
1978, negligent disclosure, solicitation, or receipt of information 
with respect to blind trusts: from $5,000 to $5,500.
    (3) 5 U.S.C. App. 4 104(a), Ethics in Government Act of 1978, 
falsification or failure to file required reports: from $10,000 to 
$11,000.
    (4) 5 U.S.C. App. 4 105(c)(2), Ethics in Government Act of 1978, 
unlawful acquisition or use of public reports: from $10,000 to $11,000.
    (5) 5 U.S.C. App. 4 504(a), Ethics Reform Act of 1989, violations 
of

[[Page 47104]]

limitations on outside earned income and employment: from $10,000 to 
$11,000.
    (6) 12 U.S.C. 1833a(b)(1), Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989, violation: from $1,000,000 to $1,100,000.
    (7) 12 U.S.C. 1833a(b)(2), Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989, continuing violations (per day): minimum 
from $1,000,000 to $1,100,000; maximum from $5,000,000 to $5,500,000.
    (8) 22 U.S.C. 2399b(a)(3)(A), Foreign Assistance Act of 1961, 
fraudulent claim for assistance: from $2,000 to $2,200.
    (9) 31 U.S.C. 3729(a), False Claims Act, violations: minimum from 
$5,000 to $5,500; maximum from $10,000 to $11,000.
    (10) 31 U.S.C. 3802(a)(1), Program Fraud Civil Remedies Act, 
violation involving false claim: from $5,000 to $5,500.
    (11) 31 U.S.C. 3802(a)(2), Program Fraud Civil Remedies Act, 
violation involving false statement: from $5,000 to $5,500.
    (12) 40 U.S.C. 489(b)(1), Federal Property and Administrative 
Services Act of 1949, violation involving surplus government property: 
from $2,000 to $2,200.
    (13) 41 U.S.C. 55(a)(1)(B), Anti-Kickback Act of 1986, violation 
involving kickbacks: from $10,000 to $11,000.
    (b) Civil Rights Division. (1) 18 U.S.C. 248(c)(2)(B), Freedom of 
Access to Clinic Entrances Act of 1994: nonviolent physical obstruction 
(first order) from $10,000 to $11,000; (subsequent order) unchanged at 
$15,000.
    (2) 18 U.S.C. 248(c)(2)(B), Freedom of Access to Clinic Entrances 
Act of 1994: other violations (first order) unchanged at $15,000; 
(subsequent order) from $25,000 to $27,500.
    (3) 42 U.S.C. 3614(d)(1)(C), Fair Housing Act of 1968, as amended 
in 1988: pattern or practice violation (first order) from $50,000 to 
$55,000; (subsequent order) from $100,000 to $110,000.
    (c) Criminal Division. 18 U.S.C. 216(b), Ethics Reform Act of 1989, 
violation: from $50,000 to $55,000.
    (d) Drug Enforcement Administration. 21 U.S.C. 961(1), Controlled 
Substances Import Export Act, transshipment and in-transit shipment of 
controlled substances: from $25,000 to $27,500.

    Dated: August 12, 1999.
Janet Reno,
Attorney General.
[FR Doc. 99-22347 Filed 8-27-99; 8:45 am]
BILLING CODE 4410-19-P