[Federal Register Volume 85, Number 35 (Friday, February 21, 2020)]
[Rules and Regulations]
[Pages 10063-10064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02712]


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DEPARTMENT OF THE TREASURY

Office of the Secretary of the Treasury

31 CFR Parts 27 and 50


Inflation Adjustment of Civil Monetary Penalties

AGENCY: Departmental Offices Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury (``Department'' or 
``Treasury'') publishes this final rule to adjust its civil monetary 
penalties (``CMPs'') for inflation as mandated by the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(collectively referred to herein as ``the Act''). This rule adjusts 
CMPs within the jurisdiction of two components of the Department to the 
maximum amount required by the Act.

DATES: The adjustments to the CMPs set forth in 31 CFR part 27 and 31 
CFR part 50 are effective February 21, 2020.

FOR FURTHER INFORMATION CONTACT: For information regarding the 
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior 
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room 
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW, 
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), or 
Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at 
(202) 622-3220 (not a toll free number). Persons who have difficulty 
hearing or speaking may access these numbers via TTY by calling the 
toll-free Federal Relay Service at (800) 877-8339.
    For information regarding the Treasury-wide CMP, contact Richard 
Dodson, Senior Counsel, General Law, Ethics, and Regulation, 202-622-
9949.

SUPPLEMENTARY INFORMATION:

I. Background

    In order to improve the effectiveness of CMPs and to maintain their 
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act 
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires 
Federal agencies to adjust each CMP provided by law within the 
jurisdiction of the agency. The 2015 Act requires agencies to adjust 
the level of CMPs with an initial ``catch-up'' adjustment through an 
interim final rulemaking and to make subsequent annual adjustments for 
inflation, without needing to provide notice and the opportunity for 
public comment required by 5 U.S.C. 553. The Department's initial 
catch-up adjustment interim final rules were published on December 7, 
2016 (Departmental Offices) (81 FR 88600), and for 31 CFR part 27, on 
February 11, 2019 (84 FR 3105). The Department's 2018 annual adjustment 
was published on March 19, 2018 (83 FR 11876), and the Department's 
2019 annual adjustment was published on April 17, 2019 (84 FR 15955). 
The 2015 Act provides that any increase in a CMP shall apply to CMPs 
that are assessed after the date the increase takes effect, regardless 
of whether the underlying violation predated such increase.\1\
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    \1\ However, the increased CMPs apply only with respect to 
underlying violations occurring after the date of enactment of the 
2015 Act, i.e., after November 2, 2015.
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II. Method of Calculation

    The method of calculating CMP adjustments applied in this final 
rule is required by the 2015 Act. Under the 2015 Act and the Office of 
Management and Budget guidance required by the 2015 Act, annual 
inflation adjustments subsequent to the initial catch-up adjustment are 
to be based on the percent change between the Consumer Price Index for 
all Urban Consumers (``CPI-U'') for the October preceding the date of 
the adjustment and the prior

[[Page 10064]]

year's October CPI-U. As set forth in Office of Management and Budget 
Memorandum M-20-05 of December 16, 2019, the adjustment multiplier for 
2019 is 1.01764. In order to complete the 2019 annual adjustment, each 
current CMP is multiplied by the 2020 adjustment multiplier. Under the 
2015 Act, any increase in CMP must be rounded to the nearest multiple 
of $1.

Procedural Matters

1. Administrative Procedure Act
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to 
make annual adjustments for inflation to CMPs, without needing to 
provide notice and the opportunity for public comment and a delayed 
effective date required by 5 U.S.C. 553. Additionally, the methodology 
used, effective 2017, for adjusting CMPs for inflation is provided by 
statute, with no discretion provided to agencies regarding the 
substance of the adjustments for inflation to CMPs. The Department is 
charged only with performing ministerial computations to determine the 
dollar amount of adjustments for inflation to CMPs. Accordingly, prior 
public notice, an opportunity for public comment, and a delayed 
effective date are not required for this rule.
2. Regulatory Flexibility Act
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
3. Executive Order 12866
    This rule is not a significant regulatory action as defined in 
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised recordkeeping or reporting requirements.

List of Subjects

31 CFR Part 27

    Administrative Practice and Procedure, Penalties.

31 CFR Part 50

    Insurance, Terrorism.

Authority and Issuance

    For the reasons set forth in the preamble, part 27 and part 50 of 
title 31 of the Code of Federal Regulations are amended 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 paragraph (c) to read as follows:


Sec.  27.3  Assessment of civil penalties.

* * * * *
    (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 $8,116 
for each and every use of any material in violation of paragraph (a), 
except that such penalty shall not exceed $40,576 for each and every 
use if such use is in a broadcast or telecast.
* * * * *

PART 50--TERRORISM RISK INSURANCE PROGRAM

0
3. The authority citation for part 50 is revised to read as follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660, 
Pub. L. 110-160, 121 Stat. 1839, Pub. L. 114-1, 129 Stat. 3, and 
Pub. L. 116-94, 133 Stat. 2534 (15 U.S.C. 6701 note); Pub. L. 114-
74, 129 Stat. 601, Title VII (28 U.S.C. 2461 note).


0
4. Amend Sec.  50.83(a) to read as follows:


Sec.  50.83  Adjustment of civil monetary penalty amount.

    (a) Inflation Adjustment. Any penalty under the Act and these 
regulations may not exceed the greater of $1,419,442 and, in the case 
of any failure to pay, charge, collect or remit amounts in accordance 
with the Act or these regulations such amount in dispute.
* * * * *

David B. Dwyer,
Executive Secretary.
[FR Doc. 2020-02712 Filed 2-20-20; 8:45 am]
 BILLING CODE 4810-25-P