[Federal Register Volume 88, Number 14 (Monday, January 23, 2023)]
[Rules and Regulations]
[Pages 3928-3930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01227]


=======================================================================
-----------------------------------------------------------------------

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1230 and 2554

RIN 3045-AA86


Annual Civil Monetary Penalties Inflation Adjustment

AGENCY: Corporation for National and Community Service.

[[Page 3929]]


ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Corporation for National and Community Service (CNCS) is 
updating its regulations to reflect required annual inflation-related 
increases to the civil monetary penalties under the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Act) and 
Office of Management and Budget (OMB) guidance.

DATES: This rule is effective January 23, 2023.

FOR FURTHER INFORMATION CONTACT: Kiara Rhodes, Office of General 
Counsel, at [email protected] or 202-937-6965. Individuals who use 
a telecommunications device for the deaf (TTY-TDD) may call 800-833-
3722 between 8 a.m. and 8 p.m. Eastern Time, Monday through Friday.

SUPPLEMENTARY INFORMATION:

I. Background

    The Corporation for National and Community Service, which operates 
as AmeriCorps, 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.
    AmeriCorps has two civil monetary penalties in its regulations. A 
civil monetary penalty under the Act is a penalty, fine, or other 
sanction that: (1) is for a specific monetary amount as provided by 
Federal law or has a maximum amount provided for by Federal law; and 
(2) is assessed or enforced by an agency pursuant to Federal law; and 
(3) is assessed or enforced pursuant to an administrative proceeding or 
a civil action in the Federal courts. (See 28 U.S.C. 2461 note). A 
civil monetary penalty does not include a penalty levied for violation 
of a criminal statute, or fees for services, licenses, permits, or 
other regulatory review.
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Sec. 701 of Pub. L. 114-74) (the ``Act'') requires 
agencies to adjust their civil monetary penalties for inflation 
annually. Today's rule updates AmeriCorps' two civil penalties for 
inflation.

II. Method of Calculation

    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. See December 15, 2022 OMB Memo for the Heads 
of Executive Departments and Agencies, M-23-05, Implementation of 
Penalty Inflation Adjustments for 2023, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015. The cost-
of-living adjustment multiplier for 2023, based on the CPI-U for the 
month of October 2022, not seasonally adjusted, is 1.07745.
    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 (45 CFR 1230.400) range from $22,022 to $220,212. Using the 
2023 multiplier, the new range of possible civil monetary penalties is 
from $23,728 to $237,267.
     The Program Fraud Civil Remedies Act of 1986 (45 CFR 
2554.1) civil monetary penalty has an upper limit of $12,537. Using the 
2023 multiplier, the new upper limit of the civil monetary penalty is 
$13,508.

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 ``$22,022 
to $220,212'' to ``$23,728 to $237,267.'' The civil monetary penalties 
for the Program Fraud Civil Remedies Act of 1986 increase from ``up to 
$12,537'' to ``up to $13,508.''

IV. Regulatory Procedures

A. Determination of Good Cause for Publication Without Notice and 
Comment and With an Immediate Effective Date

    Section 553(b) of the Administrative Procedure Act (APA) (5 U.S.C. 
553) provides that, when an agency for good cause finds that notice and 
public comment procedures are impracticable, unnecessary, or contrary 
to the public interest, then the agency may issue a rule without 
providing notice and an opportunity for prior public comment. The 
agency finds that there is good cause to except this rule from the 
public notice and comment provisions of the APA in this case. Because 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 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 to reflect any 
views or suggestions provided by commenters. Accordingly, it would 
serve no purpose to provide an opportunity for public comment on this 
rule prior to promulgation. Thus, providing for notice and public 
comment is impracticable and unnecessary. Additionally, it would not be 
possible to meet the deadlines imposed by the Act if we were to first 
publish a proposed rule, allow the public sufficient time to submit 
comments, analyze the comments, and publish a final rule. Therefore, 
notice and comment for these proscribed updates is impracticable and 
unnecessary.
    Furthermore, the agency finds under section 553(d)(3) of the APA 
that good cause exists to make this final rule effective immediately 
upon publication in the Federal Register. In the Act, Congress 
expressly required Federal agencies to publish annual inflation 
adjustments to civil penalties in the Federal Register by January 15 of 
each year, notwithstanding section 553 of the APA. Under the statutory 
framework and OMB guidance, the new penalty levels take effect 
immediately upon the effective date of the adjustment. The statutory 
deadline does not allow time to delay this rule's effective date beyond 
publication. Moreover, an effective date after January 15 would delay 
application of the new penalty levels, contrary to Congress's intent.
    Accordingly, we are issuing the annual adjustments as a final rule 
without prior notice or an opportunity for comment and with an 
effective date immediately upon publication in the Federal Register.

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.

List of Subjects

45 CFR Part 1230

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

[[Page 3930]]

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 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 removing ``$22,022'' wherever it appears and 
adding, in its place, ``$23,728'', and by removing ``$220,212'' 
wherever it appears and adding, in its place, ``$237,267''.

Appendix A to Part 1230 [Amended]

0
3. Amend appendix A to part 1230 by removing ``$22,022'' wherever it 
appears and adding, in its place, ``$23,728'' and removing ``$220,212'' 
wherever it appears and adding, in its place, ``$237,267''.

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 in paragraph (b) by removing ``$12,537'' and 
adding, in its place, ``$13,508''.

Fernando Laguarda,
General Counsel.
[FR Doc. 2023-01227 Filed 1-20-23; 8:45 am]
BILLING CODE 6050-28-P