[Federal Register Volume 86, Number 46 (Thursday, March 11, 2021)]
[Rules and Regulations]
[Pages 13822-13823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05068]



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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1230 and 2554

RIN 3045-AA76


Annual Civil Monetary Penalties Inflation Adjustment

AGENCY: Corporation for National and Community Service.

ACTION: Interim final rule.

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SUMMARY: The Corporation for National and Community Service (CNCS, 
operating as AmeriCorps) is updating its regulations to reflect 
required annual inflation-related increases to the civil monetary 
penalties in its regulations, pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015.

DATES: Effective date: This rule is effective March 11, 2021.
    Comment due date: Technical comments may be submitted until April 
12, 2021.

ADDRESSES: You may send your comments electronically through the 
Federal Government's one-stop rulemaking website at 
www.regulations.gov. Also, you may mail or deliver your comments to 
Stephanie Soper, Law Office Manager, Office of General Counsel, at the 
Corporation for National and Community Service, 250 E Street SW, 
Washington, DC 20525. Due to continued delays in CNCS's receipt of 
mail, we strongly encourage you to submit your comments online. You may 
request this document in an alternative format for the visually 
impaired.

FOR FURTHER INFORMATION CONTACT: Stephanie Soper, Law Office Manager, 
Office of General Counsel, at 202-606-6747 or by email to 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    AmeriCorps, the operating name for Corporation for National and 
Community Service, is a Federal agency that engages millions of 
Americans in service. AmeriCorps members and AmeriCorps Seniors 
volunteers serve directly with nonprofit organizations to tackle our 
nation's most pressing challenges. For more information, visit 
americorps.gov.
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Sec. 701 of Pub. L. 114-74) (the ``Act''), which is 
intended to improve the effectiveness of civil monetary penalties and 
to maintain the deterrent effect of such penalties, requires agencies 
to adjust the civil monetary penalties for inflation annually.

II. Method of Calculation

    AmeriCorps has two civil monetary penalties in its regulations. A 
civil monetary penalty under the Act is a penalty, fine, or other 
sanction that is for a specific monetary amount as provided by Federal 
law or has a maximum amount provided for by Federal law and is assessed 
or enforced by an agency pursuant to Federal law and is assessed or 
enforced pursuant to an administrative proceeding or a civil action in 
the Federal courts. (See 28 U.S.C. 2461 note).
    The inflation adjustment for each applicable civil monetary penalty 
is determined using the percent increase in the Consumer Price Index 
for all Urban Consumers (CPI-U) for the month of October of the year in 
which the amount of each civil money penalty was most recently 
established or modified. In the December 23, 2020, OMB Memo for the 
Heads of Executive Agencies and Departments, M-21-10, Implementation of 
Penalty Inflation Adjustments for 2021, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, OMB 
published the multiplier for the required annual adjustment. The cost-
of-living adjustment multiplier for 2021, based on the CPI-U for the 
month of October 2020, not seasonally adjusted, is 1.01182.
    The agency identified two civil penalties in its regulations: (1) 
The penalty associated with Restrictions on Lobbying (45 CFR 1230.400) 
and (2) the penalty associated with the Program Fraud Civil Remedies 
Act (45 CFR 2554.1).
    The civil monetary penalties related to Restrictions on Lobbying 
(Section 319, Pub. L. 101-121; 31 U.S.C. 1352) range from $20,489 to 
$204,892. Using the 2021 multiplier, the new range of possible civil 
monetary penalties is from $20,732 to $207,313.
    The Program Fraud Civil Remedies Act of 1986 (Pub. L. 99-509) civil 
monetary penalty has an upper limit of $11,665. Using the 2021 
multiplier, the new upper limit of the civil monetary penalty is 
$11,803.

III. Summary of Final Rule

    This final rule adjusts the civil monetary penalty amounts related 
to Restrictions on Lobbying (45 CFR 1230.400) and the Program Fraud 
Civil Remedies Act of 1986 (45 CFR 2554.1). The range of civil monetary 
penalties related to Restrictions on Lobbying increase from ``$20,489 
to $204,892'' to ``$20,732 to $207,313.'' The civil monetary penalties 
for the Program Fraud Civil Remedies Act of 1986 increase from ``up to 
$11,665'' to ``up to $11,803.''

IV. Regulatory Procedures

A. Determination of Good Cause for Publication Without Notice and 
Comment

    The agency finds, under 5 U.S.C. 553(b)(3)(B), that there is good 
cause to except this rule from the public notice and comment provisions 
of the Administrative Procedure Act, 5 U.S.C. 553(b). Because the 
agency is implementing a final rule pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, which 
requires the agency to update its regulations based on a prescribed 
formula, the agency has no discretion in the nature or amount of the 
change to the civil monetary penalties. Therefore, notice and comment 
for these proscribed updates is impracticable and unnecessary. As an 
interim final rule, no further regulatory action is required for the 
issuance of this legally binding rule. If you would like to provide 
technical comments, however, they may be submitted until April 12, 
2021.

B. Review Under Procedural Statutes and Executive Orders

    The agency has determined that making technical changes to the 
amount of civil monetary penalties in its regulations does not trigger 
any requirements under procedural statutes and Executive orders that 
govern rulemaking procedures.

V. Effective Date

    This rule is effective March 11, 2021. The adjusted civil penalty 
amounts apply to civil penalties assessed on or after March 11, 2021, 
when the violation occurred after November 2, 2015. If the violation 
occurred prior to November 2, 2015, or a penalty was assessed prior to 
August 1, 2016, the pre-adjustment civil penalty amounts in effect 
prior to August 1, 2106, will apply.

List of Subjects

45 CFR Part 1230

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

45 CFR Part 2554

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

    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapters XII and XXV, title 45

[[Page 13823]]

of the Code of Federal Regulations as follows:

PART 1230--NEW RESTRICTIONS ON LOBBYING

0
1. The authority citation for part 1230 continues to read as follows:

    Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. 
L. 93-113; 42 U.S.C. 4951, et seq.; 42 U.S.C. 5060.


Sec.  1230.400  [Amended]

0
2. Amend Sec.  1230.400 by:
0
a. In paragraphs (a), (b), and (e), removing ``$20,489'' and adding in 
its place ``$20,732'' each place it appears.
0
b. In paragraphs (a), (b), and (e), removing ``$204,892'' and adding in 
its place ``$207,313'' each place it appears.

Appendix A to Part 1230 [Amended]

0
3. Amend appendix A to part 1230 by:
0
a. Removing ``$20,489'' and adding in its place ``$20,732'' each place 
it appears.
0
b. Removing ``$204,892'' and adding in its place ``$207,313'' each 
place it appears.

PART 2554--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
4. The authority citation for part 2554 continues to read as follows:

    Authority:  Pub. L. 99-509, Secs. 6101-6104, 100 Stat. 1874 (31 
U.S.C. 3801-3812); 42 U.S.C. 12651c-12651d.


Sec.  2554.1  [Amended]

0
5. Amend Sec.  2554.1 by removing ``$11,665'' in paragraph (b) and 
adding in its place ``$11,803.''

    Dated: March 5, 2021.
Fernando Laguarda,
General Counsel.
[FR Doc. 2021-05068 Filed 3-10-21; 8:45 am]
BILLING CODE 6050-28-P