[Federal Register Volume 82, Number 22 (Friday, February 3, 2017)]
[Rules and Regulations]
[Pages 9131-9136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01306]
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DEPARTMENT OF JUSTICE
28 CFR Part 85
[Docket No. OAG 156; AG Order No. 3823-2017]
Civil Monetary Penalties Inflation Adjustment for 2017
AGENCY: Department of Justice.
ACTION: Final rule.
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SUMMARY: The Department of Justice is adjusting for inflation the civil
monetary penalties assessed or enforced by components of the
Department, in accordance with the provisions of the Bipartisan Budget
Act of 2015, for penalties assessed after February 3, 2017, whose
associated violations occurred after November 2, 2015.
DATES: Effective date: This rule is effective February 3, 2017.
Applicability date: The adjusted civil penalty amounts are
applicable only to civil penalties assessed after February 3, 2017,
whose associated violations occurred after November 2, 2015.
FOR FURTHER INFORMATION CONTACT: Robert Hinchman, Senior Counsel,
Office of Legal Policy, U.S. Department of Justice, Room 4252 RFK
Building, 950 Pennsylvania Avenue NW., Washington, DC 20530, telephone
(202) 514-8059 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
I. Statutory Process for Implementing Annual Inflation Adjustments
Section 701 of the Bipartisan Budget Act of 2015, Public Law 114-74
(Nov. 2, 2015), titled the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (the ``2015 Amendments''), 28 U.S.C. 2461
note, substantially revised the prior provisions of the Federal Civil
Monetary Penalties Inflation Adjustment Act of 1990, Public Law 101-410
(the ``Inflation Adjustment Act''), and substituted a different
statutory formula for calculating inflation adjustments on an annual
basis.
In accordance with the provisions of the 2015 Amendments, on June
30, 2016 (81 FR 42491), the Department of Justice published an interim
rule (``2016 interim rule'') to adjust for inflation the civil monetary
penalties assessed by components of the Department after August 1,
2016, whose associated violations occurred after November 2, 2015 (the
so-called ``catch-up'' adjustments). See 28 CFR 85.5. Readers may refer
to the Supplementary Information (also known as the preamble) of the
Department's 2016 interim rule for additional background information
regarding the statutory authority for adjustments of civil monetary
penalty amounts to take account of inflation and the Department's past
implementation of inflation adjustments. After considering the public
comments submitted in response to the 2016 interim rule, the Department
will finalize the 2016 interim rule.
II. Inflation Adjustments Made by This Rule
The 2015 Amendments also provide for agencies to adjust for
inflation their civil penalty amounts by January 15,
[[Page 9132]]
2017, and not later than January 15 of each year thereafter.
Accordingly, the Department is publishing this final rule to adjust the
civil penalty amounts that were most recently adjusted as of August 1,
2016.
This rule provides the current inflation adjustments being made in
2017. This rule adjusts the civil penalty amounts as established in the
2016 interim rule (which added 28 CFR 85.5), rounded to the nearest
dollar. This means that the maximum civil monetary penalty or the range
of minimum and maximum civil monetary penalties, as applicable, for
each civil monetary penalty is increased by the cost-of-living
adjustment, which is the ``percentage (if any) for each civil monetary
penalty by which--(A) the Consumer Price Index for the month of October
preceding the date of [this] adjustment, exceeds (B) the Consumer Price
Index for the month of October 1 year before the month of October
referred to in subparagraph (A).'' Inflation Adjustment Act, as
amended, sec. 5(b)(1), 28 U.S.C. 2461 note.
As provided in the 2015 Amendments, the adjustments made by this
rule are based on the Bureau of Labor Statistics' Consumer Price Index
for October 2016.\1\ The inflation factor used in calculating the
adjustments was provided to all federal agencies in the OMB Memorandum
for the Heads of Executive Departments and Agencies M-17-11 (December
16, 2016). https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf (last visited December 22, 2016). The
applicable inflation factor for this adjustment is 1.01636.
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\1\ For inflation adjustments other than the ``initial
adjustment'' made in the 2016 rule, the adjustment will be
determined by the difference in the Consumer Price Index between the
October preceding the date of the new adjustment and the October the
year before. See Public Law 114-74, sec. 701(b)(2)(B) (amending
section 5(b) of the Inflation Adjustment Act).
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An example of how the adjustment is calculated using this inflation
factor is set forth below.
Example:
The Program Fraud Civil Remedies Act penalty was increased to
$10,781 in 2016, in accordance with the catch-up adjustment requirement
of the 2015 Amendments. This amount is then multiplied by the inflation
factor, as shown below:
$10,781 x 1.01636 = $10,957.38
When rounded to the nearest dollar, the new penalty is $10,957.
This rule adjusts for inflation the civil monetary penalties
assessed by components 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 Department's litigating components bring suit to collect. The
reader should consult the regulations of those other agencies for
inflation adjustments to those penalties.
III. Effective Date of Adjusted Civil Penalty Amounts
The adjusted civil penalty amounts added by this rule are
applicable only to civil penalties assessed after February 3, 2017,
whose associated violations occurred after November 2, 2015, the date
of enactment of the 2015 Amendments.
The penalty amounts set forth in 28 CFR 85.5, as added by the June
30, 2016, interim rule are applicable only to civil penalties assessed
after August 1, 2016, and on or before February 3, 2017, whose
associated violations occurred after November 2, 2015. For convenient
reference, this rule amends the table in 28 CFR 85.5 to include both
the adjusted penalty amounts as added by the 2016 interim rule as well
as the new adjusted civil penalty amounts being adopted in this final
rule.
Violations occurring on or before November 2, 2015, and assessments
made on or before August 1, 2016, whose associated violations occurred
after November 2, 2015, will continue to be subject to the civil
monetary penalty amounts set forth in the Department's regulations 28
CFR parts 20, 22, 36, 68, 71, 76 and 85 as such regulations existed
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).
Statutory and Regulatory Analyses
Administrative Procedure Act
The Inflation Adjustment Act, as amended by the 2015 Amendments,
provides that for the second adjustment made after the date of
enactment of the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, and each adjustment thereafter, the head of
an agency shall adjust civil monetary penalties and shall make the
adjustment notwithstanding 5 U.S.C. 553. See Public Law 114-74, sec.
701(b)(1)(D) (amending section 4(b)(2) of the Inflation Adjustment
Act). Accordingly, this rule is being issued as a final rule without
prior notice and public comment, and without a 30-day delayed effective
date.
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. 603(a).
Executive Orders 12866 and 13563--Regulatory Review
This final rule has been drafted in accordance with Executive Order
12866, ``Regulatory Planning and Review,'' section 1(b), 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 (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 3(f), and, accordingly, this
rule has not been reviewed by the Office of Management and Budget. This
final rule implements the 2015 Amendments by making an across-the-board
adjustment of the civil penalty amounts to account for inflation since
the adoption of the 2016 interim rule. The 2016 interim rule itself was
determined not to be a significant regulatory action under Executive
Order 12866.
Executive Order 13132--Federalism
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.
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
[[Page 9133]]
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.
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 $100 million or more; a major increase in costs or prices
for consumers, individual industries, Federal, State, or local
government agencies, or geographic regions; or significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign-based enterprises in domestic and export markets.
List of Subjects in 28 CFR Part 85
Administrative practice and procedure, Penalties.
Accordingly, for the reasons set forth in the preamble, chapter I
of title 28 of the Code of Federal Regulations is amended as follows:
PART 85--CIVIL MONETARY PENALTIES INFLATION ADJUSTMENT
0
1. The authority citation for part 85 continues to read as follows:
Authority: 5 U.S.C. 301, 28 U.S.C. 503; Pub. L. 101-410, 104
Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321; Pub. L.
114-74, section 701, 28 U.S.C. 2461 note.
0
2. Section 85.5 is revised to read as follows:
Sec. 85.5 Adjustments to penalties for violations occurring after
November 2, 2015.
For civil penalties assessed after February 3, 2017, whose
associated violations occurred after November 2, 2015, the civil
monetary penalties provided by law within the jurisdiction of the
Department are adjusted as set forth in the fifth column of the
following table. For civil penalties assessed after August 1, 2016, and
on or before February 3, 2017, whose associated violations occurred
after November 2, 2015, the civil monetary penalties provided by law
within the jurisdiction of the Department are those set forth in the
fourth column of the following table.
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DOJ penalty DOJ penalty
U.S.C. citation Name/description CFR citation assessed after 8/ assessed after 2/
1/2016 ($) \1\ 3/2017 ($) \2\
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ATF
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18 U.S.C. 922(t)(5)............ Brady Law--Nat'l ................. 8,162............ 8,296.
Instant Criminal
Check System;
Transfer of firearm
without checking NICS.
18 U.S.C. 924(p)............... Child Safety Lock Act; ................. 2,985............ 3,034.
Secure gun storage or
safety device,
violation.
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Civil Division
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12 U.S.C. 1833a(b)(1).......... Financial Institutions 28 CFR 85.3(a)(6) 1,893,610........ 1,924,589.
Reform, Recovery, and
Enforcement Act
(FIRREA) Violation.
12 U.S.C. 1833a(b)(2).......... FIRREA Violation 28 CFR 85.3(a)(7) 1,893,610........ 1,924,589.
(continuing) (per
day).
12 U.S.C. 1833a(b)(2).......... FIRREA Violation 28 CFR 85.3(a)(7) 9,468,050........ 9,622,947.
(continuing).
22 U.S.C. 2399b(a)(3)(A)....... Foreign Assistance 28 CFR 85.3(a)(8) 5,500............ 5,590.
Act; Fraudulent Claim
for Assistance (per
act).
31 U.S.C. 3729(a).............. False Claims Act; \3\ 28 CFR 85.3(a)(9) Min. 10,781...... Min. 10,957.
Violations. Max. 21,563...... Max. 21,916.
31 U.S.C. 3802(a)(1)........... Program Fraud Civil 28 CFR 71.3(a)... 10,781........... 10,957.
Remedies Act;
Violations Involving
False Claim (per
claim).
31 U.S.C. 3802(a)(2)........... Program Fraud Civil 28 CFR 71.3(f)... 10,781........... 10,957.
Remedies Act;
Violation Involving
False Statement (per
statement).
40 U.S.C. 123(a)(1)(A)......... Federal Property and 28 CFR 5,500............ 5,590.
Administrative 85.3(a)(12).
Services Act;
Violation Involving
Surplus Government
Property (per act).
41 U.S.C. 8706(a)(1)(B)........ Anti-Kickback Act; 28 CFR 21,563........... 21,916.
Violation Involving 85.3(a)(13).
Kickbacks \4\ (per
occurrence).
18 U.S.C. 2723(b).............. Driver's Privacy ................. 7,954............ 8,084.
Protection Act of
1994; Prohibition on
Release and Use of
Certain Personal
Information from
State Motor Vehicle
Records--Substantial
Non-compliance (per
day).
18 U.S.C. 216(b)............... Ethics Reform Act of 28 CFR 85.3(c)... 94,681........... 96,230.
1989; Penalties for
Conflict of Interest
Crimes \5\ (per
violation).
41 U.S.C. 2105(b)(1)........... Office of Federal ................. 98,935........... 100,554.
Procurement Policy
Act; \6\ Violation by
an individual (per
violation).
41 U.S.C. 2105(b)(2)........... Office of Federal ................. 989,345.......... 1,005,531.
Procurement Policy
Act; \6\ Violation by
an organization (per
violation).
42 U.S.C. 5157(d).............. Disaster Relief Act of ................. 12,500........... 12,705.
1974; \7\ Violation
(per violation).
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Civil Rights Division (excluding immigration-related penalties)
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18 U.S.C. 248(c)(2)(B)(i)...... Freedom of Access to 28 CFR 15,909........... 16,169.
Clinic Entrances Act 85.3(b)(1)(i).
of 1994 (``FACE
Act''); Nonviolent
physical obstruction,
first violation.
18 U.S.C. 248(c)(2)(B)(ii)..... FACE Act; Nonviolent 28 CFR 23,863........... 24,253.
physical obstruction, 85.3(b)(1)(ii).
subsequent violation.
[[Page 9134]]
18 U.S.C. 248(c)(2)(B)(i)...... FACE Act; Violation 28 CFR 23,863........... 24,253.
other than a 85.3(b)(2)(i).
nonviolent physical
obstruction, first
violation.
18 U.S.C. 248(c)(2)(B)(ii)..... FACE Act; Violation 28 CFR 39,772........... 40,423.
other than a 85.3(b)(2)(ii).
nonviolent physical
obstruction,
subsequent violation.
42 U.S.C. 3614(d)(1)(C)(i)..... Fair Housing Act of 28 CFR 98,935........... 100,554.
1968; first violation. 85.3(b)(3)(i).
42 U.S.C. 3614(d)(1)(C)(ii).... Fair Housing Act of 28 CFR 197,869.......... 201,106.
1968; subsequent 85.3(b)(3)(ii).
violation.
42 U.S.C. 12188(b)(2)(C)(i).... Americans With 28 CFR 89,078........... 90,535.
Disabilities Act; 36.504(a)(3)(i).
Public accommodations
for individuals with
disabilities, first
violation.
42 U.S.C. 12188(b)(2)(C)(ii)... Americans With 28 CFR 178,156.......... 181,071.
Disabilities Act; 36.504(a)(3)(ii).
Public accommodations
for individuals with
disabilities,
subsequent violation.
50 U.S.C. App. 597(b)(3)....... Servicemembers Civil 28 CFR 59,810........... 60,788.
Relief Act of 2003; 85.3(b)(4)(i).
first violation.
50 U.S.C. App. 597(b)(3)....... Servicemembers Civil 28 CFR 119,620.......... 121,577.
Relief Act of 2003; 85.3(b)(4)(ii).
subsequent violation.
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Criminal Division
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18 U.S.C. 983(h)(1)............ Civil Asset Forfeiture ................. Min. 342......... Min. 348.
Reform Act of 2000; Max. 6,834....... Max. 6,946.
Penalty for Frivolous
Assertion of Claim.
18 U.S.C. 1956(b).............. Money Laundering ................. 21,563........... 21,916.
Control Act of 1986;
Violation \8\.
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DEA
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21 U.S.C. 844a(a).............. Anti-Drug Abuse Act of 28 CFR 76.3(a)... 19,787........... 20,111.
1988; Possession of
small amounts of
controlled substances
(per violation).
21 U.S.C. 961(1)............... Controlled Substance 28 CFR 85.3(d)... 68,750........... 69,875.
Import Export Act;
Drug abuse, import or
export.
21 U.S.C. 842(c)(1)(A)......... Controlled Substances ................. 62,500........... 63,523.
Act (``CSA'');
Violations of 842(a)--
other than (5), (10)
and (16)--Prohibited
acts re: Controlled
substances (per
violation).
21 U.S.C. 842(c)(1)(B)......... CSA; Violations of ................. 14,502........... 14,739.
842(a)(5) and (10)--
Prohibited acts re:
Controlled substances.
21 U.S.C. 842(c)(1)(C)......... CSA; Violation of ................. 500,855.......... 509,049.
825(e) by importer,
exporter,
manufacturer, or
distributor--False
labeling of anabolic
steroids (per
violation).
21 U.S.C. 842(c)(1)(D)......... CSA; Violation of ................. 1,002............ 1,018.
825(e) at the retail
level--False labeling
of anabolic steroids
(per violation).
21 U.S.C. 842(c)(2)(C)......... CSA; Violation of ................. 375,613.......... 381,758.
842(a)(11) by a
business--Distributio
n of laboratory
supply with reckless
disregard \9\.
21 U.S.C. 856(d)............... Illicit Drug Anti- ................. 321,403.......... 326,661.
Proliferation Act of
2003; Maintaining
drug-involved
premises \10\.
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Immigration-Related Penalties
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8 U.S.C. 1324a(e)(4)(A)(i)..... Immigration Reform and 28 CFR Min. 539......... Min. 548.
Control Act of 1986 68.52(c)(1)(i). Max. 4,313....... Max. 4,384.
(``IRCA''); Unlawful
employment of aliens,
first order (per
unauthorized alien).
8 U.S.C. 1324a(e)(4)(A)(ii).... IRCA; Unlawful 28 CFR Min. 4,313....... Min. 4,384.
employment of aliens, 68.52(c)(1)(ii). Max. 10,781...... Max. 10,957.
second order (per
such alien).
8 U.S.C. 1324a(e)(4)(A)(iii)... IRCA; Unlawful 28 CFR Min. 6,469....... Min. 6,575.
employment of aliens, 68.52(c)(1)(iii). Max. 21,563...... Max. 21,916.
subsequent order (per
such alien).
8 U.S.C. 1324a(e)(5)........... IRCA; Paperwork 28 CFR Min. 216......... Min. 220.
violation (per 68.52(c)(5). Max. 2,156....... Max. 2,191.
relevant individual).
8 U.S.C. 1324a (note).......... IRCA; Violation 28 CFR Min. 751......... Min. 763.
relating to 68.52(c)(6). Max. 1,502....... Max. 1,527.
participating
employer's failure to
notify of final
nonconfirmation of
employee's employment
eligibility (per
relevant individual).
8 U.S.C. 1324a(g)(2)........... IRCA; Violation/ 28 CFR 2,156............ 2,191.
prohibition of 68.52(c)(7).
indemnity bonds (per
violation).
8 U.S.C. 1324b(g)(2)(B)(iv)(I). IRCA; Unfair 28 CFR Min. 445......... Min. 452.
immigration-related 68.52(d)(1)(viii Max. 3,563....... Max. 3,621.
employment practices, ).
first order (per
individual
discriminated
against).
8 U.S.C. 1324b(g)(2)(B)(iv)(II) IRCA; Unfair 28 CFR Min. 3,563....... Min. 3,621.
immigration-related 68.52(d)(1)(ix). Max. 8,908....... Max. 9,054.
employment practices,
second order (per
individual
discriminated
against).
8 U.S.C. IRCA; Unfair 28 CFR Min. 5,345....... Min. 5,432.
1324b(g)(2)(B)(iv)(III). immigration-related 68.52(d)(1)(x). Max. 17,816...... Max 18,107.
employment practices,
subsequent order (per
individual
discriminated
against).
[[Page 9135]]
8 U.S.C. 1324b(g)(2)(B)(iv)(IV) IRCA; Unfair 28 CFR Min. 178......... Min. 181.
immigration-related 68.52(d)(1)(xii). Max. 1,782....... Max. 1,811.
employment practices,
document abuse (per
individual
discriminated
against).
8 U.S.C. 1324c(d)(3)(A)........ IRCA; Document fraud, 28 CFR Min. 445......... Min. 452.
first order--for 68.52(e)(1)(i). Max. 3,563....... Max. 3,621.
violations described
in U.S.C. 1324c(a)(1)-
(4) (per document).
8 U.S.C. 1324c(d)(3)(B)........ IRCA; Document fraud, 28 CFR Min. 3,563....... Min. 3,621.
subsequent order--for 68.52(e)(1)(iii). Max. 8,908....... Max. 9,054.
violations described
in U.S.C. 1324c(a)(1)-
(4) (per document).
8 U.S.C. 1324c(d)(3)(A)........ IRCA; Document fraud, 28 CFR Min. 376......... Min. 382.
first order--for 68.52(e)(1)(ii). Max. 3,005....... Max. 3,054.
violations described
in U.S.C. 1324c(a)(5)-
(6) (per document).
8 U.S.C. 1324c(d)(3)(B)........ IRCA; Document fraud, 28 CFR Min. 3,005....... Min. 3,054.
subsequent order--for 68.52(e)(1)(iv). Max. 7,512....... Max. 7,635.
violations described
in U.S.C. 1324c(a)(5)-
(6) (per document).
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FBI
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49 U.S.C. 30505(a)............. National Motor Vehicle ................. 1,591............ 1,617.
Title Identification
System; Violation
(per violation).
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Office of Justice Programs
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42 U.S.C. 3789g(d)............. Confidentiality of 28 CFR 20.25..... 27,500........... 27,950.
information; State
and Local Criminal
History Record
Information Systems--
Right to Privacy
Violation.
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\1\ The figures set forth in the fourth column represent the civil penalty amounts as last adjusted by the
Department of Justice, effective August 1, 2016.
\2\ All figures set forth in this table are maximum penalties, unless otherwise indicated.
\3\ Section 3729(a)(1) of Title 31 provides that any person who violates this section is liable to the United
States Government for a civil penalty of not less than $5,000 and not more than $10,000, as adjusted by the
Federal Civil Penalties Inflation Adjustment Act of 1990, plus 3 times the amount of damages which the
Government sustains because of the act of that person. 31 U.S.C. 3729(a)(1) (2015). Section 3729(a)(2) permits
the court to reduce the damages under certain circumstances to not less than 2 times the amount of damages
which the Government sustains because of the act of that person. Id. section 3729(a)(2). The adjustment made
by this regulation is only applicable to the specific statutory penalty amounts stated in subsection (a)(1),
which is only one component of the civil penalty imposed under section 3729(a)(1).
\4\ Section 8706(a)(1) of Title 41 provides that the Federal Government in a civil action may recover from a
person that knowingly engages in conduct prohibited by section 8702 of Title 44 a civil penalty equal to twice
the amount of each kickback involved in the violation and not more than $10,000 for each occurrence of
prohibited conduct. 41 U.S.C. 8706(a)(1) (2015). The adjustment made by this regulation is only applicable to
the specific statutory penalty amount stated in subsection (a)(1)(B), which is only one component of the civil
penalty imposed under section 8706.
\5\ Section 216(b) of Title 18 provides that the civil penalty should be no more than $50,000 for each violation
or the amount of compensation which the person received or offered for the prohibited conduct, whichever
amount is greater. 18 U.S.C. 216(b) (2015). Therefore, the adjustment made by this regulation is only
applicable to the specific statutory penalty amount stated in subsection (b), which is only one aspect of the
possible civil penalty imposed under section 216(b).
\6\ Section 2105(b) of Title 41 provides that the Attorney General may bring a civil action in an appropriate
district court of the United States against a person that engages in conduct that violates section 2102, 2103,
or 2104 of Title 41. 41 U.S.C. 2105(b) (2015). Section 2105(b) further provides that on proof of that conduct
by a preponderance of the evidence, an individual is liable to the Federal Government for a civil penalty of
not more than $50,000 for each violation plus twice the amount of compensation that the individual received or
offered for the prohibited conduct, and an organization is liable to the Federal Government for a civil
penalty of not more than $500,000 for each violation plus twice the amount of compensation that the
organization received or offered for the prohibited conduct. Id. section 2105(b). The adjustments made by this
regulation are only applicable to the specific statutory penalty amounts stated in subsections (b)(1) and
(b)(2), which are each only one component of the civil penalties imposed under sections 2105(b)(1) and (b)(2).
\7\ The Attorney General has authority to bring a civil action when a person has violated or is about to violate
a provision under this statute. 42 U.S.C. 5157(b) (2015). The Federal Emergency Management Agency has
promulgated regulations regarding this statute and has adjusted the penalty in its regulation. 44 CFR
206.14(d) (2015). The Department of Health and Human Services (HHS) has also promulgated a regulation
regarding the penalty under this statute. 42 CFR 38.8 (2015).
\8\ Section 1956(b)(1) of Title 18 provides that whoever conducts or attempts to conduct a transaction described
in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in
subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of the
value of the property, funds, or monetary instruments involved in the transaction; or $10,000. 18 U.S.C.
1956(b)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty
amount stated in subsection (b)(1)(B), which is only one aspect of the possible civil penalty imposed under
section 1956(b).
\9\ Section 842(c)(2)(C) of Title 21 provides that in addition to the penalties set forth elsewhere in the
subchapter or subchapter II of the chapter, any business that violates paragraph (11) of subsection (a) of the
section shall, with respect to the first such violation, be subject to a civil penalty of not more than
$250,000, but shall not be subject to criminal penalties under the section, and shall, for any succeeding
violation, be subject to a civil fine of not more than $250,000 or double the last previously imposed penalty,
whichever is greater. 21 U.S.C. 842(c)(2)(C) (2015). The adjustment made by this regulation regarding the
penalty for a succeeding violation is only applicable to the specific statutory penalty amount stated in
subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding violation
imposed under section 842(c)(2)(C).
\10\ Section 856(d)(1) of Title 21 provides that any person who violates subsection (a) of the section shall be
subject to a civil penalty of not more than the greater of $250,000; or 2 times the gross receipts, either
known or estimated, that were derived from each violation that is attributable to the person. 21 U.S.C.
856(d)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty
amount stated in subsection (d)(1)(A), which is only one aspect of the possible civil penalty imposed under
section 856(d)(1).
[[Page 9136]]
Dated: January 13, 2017.
Loretta E. Lynch,
Attorney General.
[FR Doc. 2017-01306 Filed 2-2-17; 8:45 am]
BILLING CODE 4410-19-P