[Federal Register Volume 90, Number 97 (Wednesday, May 21, 2025)]
[Rules and Regulations]
[Pages 21687-21688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-09081]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 97 / Wednesday, May 21, 2025 / Rules
and Regulations
[[Page 21687]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 185
RIN 3206-AO79
Program Fraud Civil Remedies: Civil Monetary Penalty Inflation
Adjustment
AGENCY: Office of Personnel Management (OPM).
ACTION: Final rule.
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SUMMARY: This rule adjusts the level of civil monetary penalties
contained in U.S. Office of Personnel Management regulations
implementing the Program Fraud Civil Remedies Act of 1986, in
accordance with the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 and Office of Management and Budget guidance.
DATES: Effective date: May 21, 2025.
FOR FURTHER INFORMATION CONTACT: Valerie Dew, Office of the General
Counsel, Office of Personnel Management, 1900 E St NW, Washington, DC
20415, [email protected], (202) 606-1700.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (sec.
701 of Pub. L. 114-74, 28 U.S.C. 2461 note) (``the 2015 Act''). The
2015 Act required agencies to: (1) adjust the level of civil monetary
penalties with an initial ``catch-up'' adjustment through an interim
final rule, and (2) make subsequent annual adjustments for inflation
not later than January 15 of each year. The purpose of these
adjustments is to maintain the deterrent effect of civil penalties.
Since the passage of the 2015 Act, OPM has updated the agency's
monetary penalties found in 5 CFR part 185 that implement the Program
Fraud Civil Remedies Act of 1986.
This rule takes into account adjustments for the year 2025 based on
inflation since the last adjustment. These calculations were made based
on guidance contained in Office of Management and Budget Memorandum M-
25-02:
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2024 Inflation 2025 Inflation
CFR citation Description of the penalty adjustment adjustment
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5 CFR 185.103(a)............................ Civil Penalty for False Claims $13,946 $14,308
5 CFR 185.103(f)(2)......................... Civil Penalty for False 13,946 14,308
Statements.
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This final rule is being issued without prior public notice or
opportunity for public comments and is effective upon publication in
the Federal Register. The 2015 Act required the agency to adjust
penalties initially through an interim final rulemaking, which did not
require the agency to complete a notice and comment process prior to
promulgating the interim final rule. The amendments also explicitly
required the agency to make subsequent annual adjustments
notwithstanding 5 U.S.C. 553 (the section of the Administrative
Procedure Act that normally requires agencies to engage in notice and
comment and to delay the effective date). The formula used for
adjusting the amount of a civil penalty is given by statute, with no
discretion provided to OPM regarding the computation of the
adjustments. OPM is charged only with performing ministerial
computations to determine the amount of adjustment to the civil
penalties due to increases in the Consumer Price Index for all Urban
Consumers (CPI-U).
II. Calculation of Adjustment
The Office of Management and Budget (OMB) issues guidance annually
on calculating adjustments. Under this guidance, OPM has calculated the
annual adjustment to the penalties in 5 CFR part 185 that implement the
Program Fraud Civil Remedies Act of 1986. A civil monetary penalty is
any assessment with a dollar amount that is levied for a violation of a
Federal civil statute or regulation and is assessed or enforceable
through a civil action in Federal court or an administrative
proceeding. 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 Office of Management and Budget Memorandum M-25-02 stated that
the cost-of-living multiplier for calculating adjustments in 2025 was
1.02598. This multiplier is to be applied to the current level of civil
monetary penalties for agencies (i.e., the penalty amount the agency
updated and published for 2024). Under 5 CFR 185.103, when OPM's 2024
penalties of $13,946 are multiplied by 1.02598 and rounded to the
nearest dollar, the resulting penalty amounts are each $14,308.
III. Procedural Requirements
Regulatory Review
OPM has examined the impact of this rule as required by Executive
Orders 12866, 13563, and 14094, which direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). OMB has
determined that this rule is not a ``significant regulatory action''
under section 3(f) of Executive Order 12866, as amended by Executive
Order 14094. This rule is not an E.O. 14192 regulatory action because
this rule is not significant under E.O. 12866.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) as amended by the Small
Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)) requires
an agency to prepare a regulatory flexibility analysis for rules unless
the agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. The RFA
[[Page 21688]]
applies only to rules for which an agency is required to first publish
a proposed rule. See 5 U.S.C. 603(a) and 604(a). The Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 requires
agencies to adjust civil penalties annually. No discretion is allowed.
Thus, the Director of OPM certifies that the RFA does not apply to this
final rule.
Unfunded Mandate Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits before
issuing any rule that would impose spending costs on State, local, or
Tribal governments in the aggregate, or on the private sector, in any 1
year of $100 million in 1995 dollars, updated annually for inflation.
That threshold is currently approximately $183 million. This regulation
will not result in the expenditure by State, local, or Tribal
governments, in the aggregate, or by the private sector, in excess of
the threshold. Thus, no written assessment of unfunded mandates is
required.
E.O. 13132, Federalism
This rule does not have federalism implications. The rule does not
have substantial direct effects on the States, on the relationship
between the Federal Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
E.O. 12988, Civil Justice Reform
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Does not unduly burden the judicial system.
(b) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(c) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
Paperwork Reduction Act
This document does not contain information collection requirements
subject to the Paperwork Reduction Act of 1995, as amended (44 U.S.C.
3501-3521).
List of Subjects in 5 CFR Part 185
Administrative practice and procedure, Claims, Fraud, Penalties.
Office of Personnel Management.
Jerson Matias,
Federal Register Liaison.
Accordingly, for the reasons set forth in the preamble, OPM amends
5 CFR part 185 as follows:
PART 185--PROGRAM FRAUD CIVIL REMEDIES
0
1. The authority citation for part 185 continues to read:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812.
Sec. 185.103 [Amended]
0
2. In Sec. 185.103, amend paragraphs (a) introductory text and (f)(2)
by removing ``$13,946'' and adding ``$14,308'' in its place.
[FR Doc. 2025-09081 Filed 5-20-25; 8:45 am]
BILLING CODE 6325-48-P