[Federal Register Volume 88, Number 54 (Tuesday, March 21, 2023)]
[Rules and Regulations]
[Pages 16885-16887]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-05769]


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DEPARTMENT OF THE TREASURY

Office of the Secretary of the Treasury

31 CFR Parts 16, 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 Departmental Offices 
for 2022 and 2023.

DATES: This rule is effective March 21, 2023.

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 
Sherry Rowlett, Program Policy Analyst, Federal Insurance Office, at 
(202) 622-1890 (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 CMPs, 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

[[Page 16886]]

the opportunity for public comment required by 5 U.S.C. 553. This rule 
constitutes the Department's 2022 and 2023 annual adjustment. 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 year's October CPI-U. As set forth in 
Office of Management and Budget (OMB) Memorandum M-22-07 of December 
15, 2021, the adjustment multiplier for 2022 is 1.06222. Additionally, 
as set forth in OMB Memorandum M-23-05 of December 15, 2022, the 
adjustment multiplier for 2023 is 1.07745. In order to complete the 
2022 and 2023 annual adjustments, each current CMP is multiplied by the 
2022 and 2023 adjustment multipliers. Under the 2015 Act, any increase 
in CMP must be rounded to the nearest multiple of $1.
    With regard to the CMPs assessed under 31 U.S.C. 3802(a), the 
penalty assessment for 2021 ($8,212) is multiplied by 1.06222, 
resulting in a penalty of $8,723 for 2022. Multiplying $8,723 by 1. 
07745 results in a penalty of $9,399 for 2023.
    With regard to the CMPs assessed under 31 U.S.C. 333(c), the first 
penalty under this section was adjusted to $8,212 in 2021. This amount 
is multiplied by 1.06222, resulting in a penalty of $8,723 for 2022. 
Multiplying $8,723 by 1. 07745 results in a penalty of $9,399 for 2023. 
The second penalty under this section was adjusted to $41,056 in 2021. 
Multiplying this amount by 1.06222 results in a penalty of $43,611 for 
2022. Multiplying $43,611 by 1.07745 results in a penalty of $46,989 
for 2023.
    Finally, with regard to the CMP assessed under Section 104 of Title 
I, Public Law 107-297, as amended, the penalty assessment for 2021 
($1,436,220) is multiplied by 1.06222, resulting in a penalty of 
$1,525,582 for 2022. Multiplying $1,525,582 by 1.07745 results in a 
penalty of $1,643,738 for 2023.

Procedural Matters

1. Administrative Procedure Act
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Section 701(b)) requires agencies 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 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 16

    Administrative Practice and Procedure, Claims, Fraud, Penalties.

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, parts 16, 27, and 50 of 
title 31 of the Code of Federal Regulations are amended as follows:

PART 16--REGULATIONS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES 
ACT OF 1986

0
1. The authority citation for part 16 continues to read as follows:

    Authority:  31 U.S.C. 3801-3812.


0
2. Amend Sec.  16.3 by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to 
read as follows:


Sec.  16.3  Basis for civil penalties and assessments.

    (a) * * *
    (1) * * *
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed, shall be subject, in addition 
to any other remedy that may be prescribed by law, to a civil penalty 
of not more than $9,399 for each such claim.
* * * * *
    (b) * * *
    (1) * * *
    (ii) Includes or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the content of the 
statement, shall be subject, in addition to any other remedy that may 
be prescribed by law, to a civil penalty of not more than $9,399 for 
each such statement.
* * * * *

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

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

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


0
4. 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 $9,399 
for each and every use of any material in violation of paragraph (a), 
except that such penalty shall not exceed $46,989 for each and every 
use if such use is in a broadcast or telecast.
* * * * *

PART 50--TERRORISM RISK INSURANCE PROGRAM

0
5. 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

[[Page 16887]]

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); Pub. L. 116-94, Div. I, Title V, 
Sec.  501, 133 Stat. 3026.


0
6. Amend Sec.  50.83 by revising paragraph (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 $1,643,738 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.
* * * * *

Kayla Arslanian,
Executive Secretary.
[FR Doc. 2023-05769 Filed 3-20-23; 8:45 am]
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