[Federal Register Volume 84, Number 28 (Monday, February 11, 2019)]
[Rules and Regulations]
[Pages 3105-3107]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01926]


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DEPARTMENT OF THE TREASURY

31 CFR Part 27


Civil Penalty Assessment for Misuse of Department of the Treasury 
Names, Symbols, Etc.

AGENCY: Department of the Treasury.

ACTION: Direct final rule.

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SUMMARY: This rule amends regulations that provide civil penalties for 
misuse of Department of the Treasury names, symbols, etc. to implement 
the Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015. In particular, this rule adjusts for 
inflation the maximum amount of the civil monetary penalties that may 
be assessed under its regulations, and updates the inflation 
adjustments through 2018 in accordance with instructions from the 
Office of Management and Budget. In addition, the regulation is amended 
to reflect changes in Treasury organizational structure.

DATES: This rule is effective April 12, 2019. Written comments are due 
on or before March 13, 2019. If the Department receives significant 
adverse comments, we will publish a timely withdrawal in the Federal 
Register informing the public that this rule will not take effect.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
     Mail: Richard Dodson, Attorney-Advisor, General Law, 
Ethics, and Regulation, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue NW, Washington, DC 20220.
    Comments received by mail will be considered timely if they are 
postmarked on or before the comment date. The www.regulations.gov site 
will accept comments until 11:59 p.m.

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eastern time on the comment due date. Received comments, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not enclose any information 
in your comments or supporting materials that you consider confidential 
or inappropriate for public disclosure. Properly submitted comments 
will be available for inspection and downloading at http://www.regulations.gov. The Department will consolidate all received 
comments and make them available without change.

FOR FURTHER INFORMATION CONTACT: Richard Dodson, Attorney-Advisor, 
General Law, Ethics, and Regulation, 202-622-9949 (this is not a toll-
free number).

SUPPLEMENTARY INFORMATION: 

Discussion

    Section 4 of the Federal Civil Penalties Inflation Adjustment Act 
(1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended 
by the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 2461 note) 
(collectively, the FCPIA Act), requires each federal agency with 
statutory authority to assess civil monetary penalties (CMPs) to adjust 
CMPs for inflation according to a formula described in section 5 of the 
FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs continue 
to maintain their deterrent effect through periodic cost-of-living 
based adjustments.
    The FCPIA Act directs agencies to adjust the level of CMPs for 
inflation annually, with an initial ``catch up'' adjustment effective 
no later than August 1, 2016. Catch-up adjustments are based on the 
percent change between the Consumer Price Index for all Urban Consumers 
(CPI-U) for the month of October in the year of the last non-FCPIA-Act-
based adjustment and the October 2015 CPI-U. In accordance with the 
FCPIA Act, however, the amount of the CMP catch-up adjustment shall not 
exceed 150 percent of the level in effect on November 2, 2015 (the 
``maximum adjustment''). Annual inflation adjustments will be based on 
the percent change between the October CPI-U preceding the date of the 
adjustment and the prior year's October CPI-U. The FCPIA Act requires 
agencies to round all CMP levels to the nearest dollar after applying 
the multiplier.
    On February 24, 2016, the Office of Management and Budget (``OMB'') 
issued written guidance providing agencies with CPI-U related 
multipliers to use when adjusting the CMP level or range of CMP levels 
based on the year the CMP was established or last adjusted by statute 
or regulation. (Memorandum for the Heads of Executive Departments and 
Agencies: Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (OMB Guidance)).
    The adjusted civil penalty amounts described in this rule are 
applicable only to civil penalties assessed after the effective date of 
this regulation.
    Treasury is currently authorized to impose CMPs against persons who 
have misused the words, titles, abbreviations, initials, symbols, 
emblems, seals, or badges of the Department, pursuant to 31 U.S.C. 333. 
The maximum CMPs under this statute were established on August 15, 
1994, and have not been adjusted. The maximum CMPs established were 
$5,000 for each use of any material in violation of 31 U.S.C. 333(a), 
and $25,000 if such use is in a broadcast or telecast.

Adjustment

    Pursuant to the OMB Guidance, the relevant inflation factor is 
1.67728 for the initial catch-up adjustment. Because application of the 
factor would result in an adjustment of greater than 150% for both 31 
U.S.C. 333 CMPs, the initial adjustment of these penalties is limited 
to 150%. The relevant inflation factors for 2017 and 2018 are 1.01636 
and 1.02041, respectively. OMB Memoranda M-17-11 and M-18-03.
    With respect to the $5,000 CMP, applying the initial 150% 
adjustment would result in a maximum penalty amount of $7,500. 
Multiplying that amount by the 2017 factor of 1.0136 and rounding to 
the nearest dollar would yield a maximum penalty amount of $7,623. 
Finally, applying the 2018 factor of 1.02041 to that amount results in 
an adjusted maximum penalty amount of $7,779.
    With respect to the $25,000 CMP, applying the initial 150% 
adjustment would result in a maximum penalty amount of $37,500. 
Multiplying that amount by the 2017 factor of 1.0136 and rounding to 
the nearest dollar would yields maximum penalty amount of $38,114. 
Finally, applying the 2018 factor of 1.02041 to that amount results in 
an adjusted maximum penalty amount of $38,892.

Organizational Changes

    Finally, the regulation is updated to reflect changes in 
organizational structure. References to the United States Customs 
Service, United States Secret Service, the Bureau of Alcohol, Tobacco 
and Firearms, Bureau of the Public Debt, and the Federal Law 
Enforcement Training Center have been deleted. The Bureau of the Fiscal 
Service and Commissioner of the Bureau of the Fiscal Service have been 
added. Because the existing regulation prohibits misuse of the titles 
of any Treasury organization or official, regardless of whether they 
are specifically listed, this update makes no substantive change in the 
coverage or application of the regulation.

Direct Final Procedures

    Treasury is issuing this regulation as a direct final rule. The 
effective date of this rule is April 12, 2019 without further notice, 
unless Treasury receives written adverse comments before March 13, 
2019.
    If Treasury receives timely written adverse comments on this 
regulation, Treasury will withdraw the regulation before its effective 
date.

Procedural Requirements

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply 
because adjustments under the FCPIA Act are exempt from the requirement 
to publish a notice of proposed rulemaking.

Regulatory Planning and Review

    The rule is not a ``significant regulatory action'' as defined in 
Executive Order 12866.

List of Subjects in 31 CFR Part 27

    Administrative practice and procedure, Penalties.

    For the reasons set out in the preamble, title 31, subtitle A, part 
27 of the Code of the Federal Regulations is amended to read as 
follows:

PART 27--CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE 
TREASURY NAMES, SYMBOLS, ETC.

0
1. The authority citation for part 27 continues to read as follows:

    Authority:  31 U.S.C. 321, 333.


0
2. Amend Sec.  27.3 by revising paragraphs (a)(1)(i) through (iii) and 
(c) to read as follows:


Sec.  27.3   Assessment of civil penalties.

    (a) * * *
    (1) * * *
    (i) The words ``Department of the Treasury,'' ``Internal Revenue 
Service,'' ``Bureau of the Fiscal Service,'' ``Bureau of Engraving and 
Printing,'' ``Comptroller of the Currency,''

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``Financial Crimes Enforcement Network,'' ``United States Mint,'' 
``Alcohol and Tobacco Tax and Trade Bureau,'' or the name of any other 
service, bureau, office, or subdivision of the Department of the 
Treasury;
    (ii) The titles ``Secretary of the Treasury,'' ``Treasurer of the 
United States,'' ``Commissioner of Internal Revenue,'' ``Commissioner 
of the Bureau of the Fiscal Service,'' ``Director of the Bureau of 
Engraving and Printing,'' ``Comptroller of the Currency,'' ``Director 
of the Financial Crimes Enforcement Network,'' ``Director of the United 
States Mint,'' ``Administrator of the Alcohol and Tobacco Tax and Trade 
Bureau,'' or the title of any other officer or employee of the 
Department of the Treasury or subdivision thereof;
    (iii) The abbreviations or initials of any entity or title referred 
to in paragraph (a)(1)(i) or (ii) of this section, including but not 
limited to ``IRS,'' ``BFS,'' ``TTB,'' and ``FINCEN'' or ``FinCEN'';
* * * * *
    (c) Civil penalty. An assessing official may impose a civil penalty 
on any person who violates the provisions of paragraph (a) of this 
section. The amount of a civil monetary penalty shall not exceed $7,779 
for each and every use of any material in violation of paragraph (a), 
except that such penalty shall not exceed $38,892 for each and every 
use if such use is in a broadcast or telecast.
* * * * *

Ryan D. Brady,
Executive Secretary.
[FR Doc. 2019-01926 Filed 2-8-19; 8:45 am]
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