[Federal Register Volume 89, Number 9 (Friday, January 12, 2024)]
[Rules and Regulations]
[Pages 2144-2146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00647]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 269

[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL72


Civil Monetary Penalty Inflation Adjustment

AGENCY: Office of the Under Secretary of Defense (Comptroller), 
Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The DoD is issuing this final rule to adjust each of its 
statutory civil monetary penalties (CMP) to account for inflation. The 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 
Act), requires the head of each agency to adjust for inflation its CMP 
levels in effect as of November 2, 2015, under a revised methodology 
that was effective for 2016 and for each year thereafter.

DATES: This rule is effective January 15, 2024.

FOR FURTHER INFORMATION CONTACT: Dzenana Dzanic, 703-508-9277.

SUPPLEMENTARY INFORMATION:

Background Information

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 
Public Law 101-410, codified at 28 U.S.C. 2461, note, as amended, 
requires agencies to annually adjust the level of CMPs for inflation to 
improve their effectiveness and maintain their deterrent effect. 
Section 2461 requires that not later than July 1, 2016, and not later 
than January 15 of every year thereafter, the head of each agency must 
adjust each CMP within its jurisdiction by the inflation adjustment set 
forth therein. The inflation adjustment is determined by increasing the 
maximum CMP or the range of minimum and maximum CMPs, as applicable, 
for each CMP by the cost-

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of-living adjustment, rounded to the nearest multiple of $1. The cost-
of-living adjustment is the percentage (if any) for each CMP by which 
the Consumer Price Index (CPI) for the month of October preceding the 
date of the adjustment exceeds the CPI for the month of October in the 
previous calendar year.
    The initial catch up adjustments for inflation to the DoD's CMPs 
were published as an interim final rule in the Federal Register on May 
26, 2016 (81 FR 33389-33391) and became effective on that date. The 
interim final rule was published as a final rule without change on 
September 12, 2016 (81 FR 62629-62631), effective that date. The 
revised methodology for agencies for 2017 and each year thereafter 
provides for the improvement of the effectiveness of CMPs to maintain 
their deterrent effect. The DoD is adjusting the level of all civil 
monetary penalties under its jurisdiction by the Office of Management 
and Budget (OMB) directed cost-of-living adjustment multiplier for 2024 
of 1.03241 prescribed in OMB Memorandum M-24-07, ``Implementation of 
Penalty Inflation Adjustments for 2024, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015.'' The 
DoD's 2024 adjustments for inflation to CMPs apply only to those CMPs, 
including those whose associated violation predated such adjustment, 
which are assessed by the DoD after the effective date of the new CMP 
level.

Statement of Authority and Costs and Benefits

    Pursuant to 5 U.S.C. 553(b)B, there is good cause to issue this 
rule without prior public notice or opportunity for public comment 
because it would be impracticable and unnecessary. The Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 
2461) requires agencies, effective 2017, to make annual adjustments for 
inflation to CMPs notwithstanding 5 U.S.C. 553. Additionally, the 
methodology used, effective 2017, for adjusting CMPs for inflation is 
established in statute, with no discretion provided to agencies 
regarding the substance of the adjustments for inflation to CMPs. The 
DoD is charged only with performing ministerial computations to 
determine the dollar amount of adjustments for inflation to CMPs. 
Accordingly, prior public notice and an opportunity to comment are not 
required for this rule. For the same reasons, there is good cause under 
5 U.S.C. 553(d)(3) to waive the 30-day delay in effective date.
    Further, there are no significant costs associated with the 
regulatory revisions that would impose any mandates on the DoD, 
Federal, State or local governments, or the private sector. 
Accordingly, prior public notice and an opportunity for public comment 
are not required for this rule. The benefit of this rule is the DoD 
anticipates that civil monetary penalty collections may increase in the 
future due to new penalty authorities and other changes in this rule. 
However, it is difficult to accurately predict the extent of any 
increase, if any, due to a variety of factors, such as budget and staff 
resources, the number and quality of civil penalty referrals or leads, 
and the length of time needed to investigate and resolve a case.

Regulatory Procedures

    Executive Order 12866, ``Regulatory Planning and Review'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review''
    Executive Order 14094, ``Modernizing Regulatory Review,'' 
supplements and reaffirms the principles, structures, and definitions 
governing contemporary regulatory review established in Executive Order 
12866 of September 30, 1993 (Regulatory Planning and Review), and 
Executive Order 13563 of January 18, 2011 (Improving Regulation and 
Regulatory Review). In accordance with paragraph (b) of Executive Order 
14094, section 3(f) of Executive Order 12866 is amended to read as 
follows: ``Significant regulatory action'' means any regulatory action 
that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $200 million or more 
(adjusted every 3 years by the Administrator of OIRA for changes in 
gross domestic product); or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, territorial, or 
tribal governments or communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise legal or policy issues for which centralized review would 
meaningfully further the President's priorities or the principles set 
forth in this Executive order, as specifically authorized in a timely 
manner by the Administrator of OIRA in each case.
    This rule has been designated ``not significant,'' under the 
amended section 3(f) of Executive Order 12866.

Congressional Review Act, 5 U.S.C. 804(2)

    The Congressional Review Act, 5 U.S.C. 801 et seq., generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. A major rule may take effect no earlier than 60 calendar 
days after Congress receives the rule report or the rule is published 
in the Federal Register, whichever is later. This rule is not a major 
rule, as defined by 5 U.S.C. 804(2).

Unfunded Mandates Reform Act (2 U.S.C. Chapter 25)

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 
U.S.C. 1532) requires agencies to assess anticipated costs and benefits 
before issuing any rule the mandates of which require spending in any 
year of $100 million in 1995 dollars, updated annually for inflation. 
This rule will not mandate any requirements for State, local, or tribal 
governments, nor will it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)

    The Under Secretary of Defense (Comptroller) certified that this 
rule is not subject to the Regulatory Flexibility Act (5 U.S.C. 601) 
because it would not, if promulgated, have a significant economic 
impact on a substantial number of small entities. Therefore, the 
Regulatory Flexibility Act, as amended, does not require DoD to prepare 
a regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    The Paperwork Reduction Act was enacted to minimize the paperwork 
burden for individuals; small businesses; educational and nonprofit 
institutions; Federal contractors; State, local and tribal governments; 
and other persons resulting from the collection of information by or 
for the Federal government. The Act requires agencies obtain approval 
from the OMB before using identical questions to collect information 
from ten or more persons. This rule does not impose reporting or 
recordkeeping requirements on the public.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency

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must meet when it promulgates a rule that imposes substantial direct 
requirement costs on State and local governments, preempts State law, 
or otherwise has Federalism implications. This final rule will not have 
a substantial effect on State and local governments.

Executive Order 13175, ``Consultation and Coordination With Indian 
Tribal Governments''

    It has been determined that this rule will not have a substantial 
effect on Indian tribal governments. This rule does not impose 
substantial direct compliance costs on one or more Indian tribes, 
preempt tribal law, or effect the distribution of power and 
responsibilities between the Federal government and Indian tribes.

List of Subjects in 32 CFR Part 269

    Administrative practice and procedure, Penalties.

    Accordingly, 32 CFR part 269 is amended as follows.

PART 269--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

0
1. The authority citation for 32 CFR part 269 continues to read as 
follows:

    Authority:  28 U.S.C. 2461 note.


0
2. In Sec.  269.4, revise paragraph (d) to read as follows:


Sec.  269.4   Cost of living adjustments of civil monetary penalties.

* * * * *
    (d) Inflation adjustment. Maximum civil monetary penalties within 
the jurisdiction of the Department are adjusted for inflation as 
follows:

                                            Table 1 to Paragraph (d)
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                                                                                Maximum penalty    New adjusted
              United States Code                    Civil monetary penalty        amount as of   maximum penalty
                                                         description                2023 ($)        amount ($)
----------------------------------------------------------------------------------------------------------------
National Defense Authorization Act for FY      Unauthorized Activities                 $156,108         $161,168
 2005, 10 U.S.C. 113, note.                     Directed at or Possession of
                                                Sunken Military Craft.
10 U.S.C. 1094(c)(1).........................  Unlawful Provision of Health              13,707           14,152
                                                Care.
10 U.S.C. 1102(k)............................  Wrongful Disclosure--Medical
                                                Records:
                                               First Offense..................            8,106            8,368
                                               Subsequent Offense.............           54,036           55,788
10 U.S.C. 2674(c)(2).........................  Violation of the Pentagon                  2,234            2,306
                                                Reservation Operation and
                                                Parking of Motor Vehicles
                                                Rules and Regulations.
31 U.S.C. 3802(a)(1).........................  Violation Involving False Claim           13,508           13,946
31 U.S.C. 3802(a)(2).........................  Violation Involving False                 13,508           13,946
                                                Statement.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)..  False claims...................           24,163           24,946
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)..  Claims submitted with a false             24,163           24,946
                                                certification of physician
                                                license.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2)..  Claims presented by excluded              24,163           24,946
                                                party.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2);   Employing or contracting with             24,163           24,946
 (b)(2)(ii).                                    an excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(1)..  Pattern of claims for medically           24,163           24,946
                                                unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(2)..  Ordering or prescribing while             24,163           24,946
                                                excluded.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(5)..  Known retention of an                     24,163           24,946
                                                overpayment.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(4)..  Making or using a false record           120,816          124,731
                                                or statement that is material
                                                to a false or fraudulent claim.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(6)..  Failure to grant timely access            36,245           37,420
                                                to OIG for audits,
                                                investigations, evaluations,
                                                or other statutory functions
                                                of OIG.
42 U.S.C. 1320a-7a(a); 32 CFR 200.210(a)(3)..  Making false statements,                 120,816          124,731
                                                omissions, misrepresentations
                                                in an enrollment application.
42 U.S.C. 1320a-7a(a); 32 CFR 200.310(a).....  Unlawfully offering, paying,             120,816          124,731
                                                soliciting, or receiving
                                                remuneration to induce or in
                                                return for the referral of
                                                business in violation of
                                                1128B(b) of the Social
                                                Security Act.
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    Dated: January 9, 2024.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2024-00647 Filed 1-11-24; 8:45 am]
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