[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67234-67235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32279]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 105-70
[RIN NO. 3090-AG18]
Program Fraud Civil Remedies Act of 1986, Civil Monetary
Penalties Inflation Adjustment
AGENCY: Office of General Counsel, General Services Administration.
ACTION: Final rule.
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SUMMARY: In accordance with the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410), as amended by the Debt
Collection Improvement Act of 1996 (Pub. L. 104-134), this final rule
incorporates the penalty inflation adjustments for the civil monetary
penalties set forth in 31 U.S.C. 3802(a)(1) and (a)(2), as codified in
41 CFR Part 105-70.
DATES: This rule is effective January 21, 1997.
FOR FURTHER INFORMATION CONTACT:
Jeffrey H. Domber, Senior Assistant General Counsel, General Law
Division (LG), General Services Administration, 18th & F Streets, NW,
Washington, DC 20405. Telephone No. (202) 501-1460.
SUPPLEMENTARY INFORMATION:
I. The Debt Collection Improvement Act of 1996
To maintain the remedial impact of civil monetary penalties (CMPs)
and to promote compliance with the law, the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410) was amended by the
Debt Collection Improvement Act of 1996 (Pub. L. 104-134) to require
Federal agencies to regularly adjust certain CMPs for inflation. As
amended, the law requires each agency to make an initial inflationary
adjustment for all applicable CMPs, and to make further adjustments at
least once every four years thereafter for these penalty amounts. The
Debt Collection Improvement Act of 1996 further stipulates that any
resulting increases in
[[Page 67235]]
a CMP due to the calculated inflation adjustments shall apply only to
violations which occur after the date the increase takes effect, i.e.,
thirty (30) days after date of publication in the Federal Register, and
shall not exceed ten percent of such penalty for the initial inflation
adjustment. Under the Act, the inflation adjustment for each applicable
CMP is determined by increasing the maximum CMP amount per violation by
the cost-of-living adjustment. The ``cost-of-living'' adjustment is
defined as the percentage of each CMP by which the Consumer Price Index
(CPI) for the month of June of the calendar year preceding the
adjustment exceeds the CPI for the month of June of the calendar year
in which the amount of the CMP was last set or adjusted in accordance
with the law. Any calculated increase under this adjustment is subject
to a specific rounding formula set forth in the Act.
II. The Program Fraud Civil Remedies Act of 1986
In 1986, sections 6103 and 6104 of the Omnibus Budget
Reconciliation Act of 1986 (Pub. L. 99-501) set forth the Program Fraud
Civil Remedies Act of 1986 (PFCRA). Specifically, this statute imposes
a CMP and an assessment against any person who, with knowledge or
reason to know, makes, submits, or presents a false, fictitious, or
fraudulent claim or statement to the Government. The General Services
Administration's regulations, published in the Federal Register (52 FR
45188, November 25, 1987) and codified at 41 CFR Part 105-70, set forth
a CMP of up to $5,000 for each false claim or statement made to the
agency. Based on the penalty amount inflation factor calculation,
derived from dividing the June 1995 CPI by the June 1986 CPI, after
rounding and the ten percent maximum ceiling, we are adjusting the
maximum penalty amount for this CMP to $5,500 per violation.
III. Waiver of Proposed Rulemaking
In developing this final rule, we are waiving the usual notice of
proposed rulemaking and public comment procedures set forth in the
Administrative Procedure Act, 5 U.S.C. 553 (APA). The APA provides an
exception to the notice and comment procedures when an agency finds
there is good cause for dispensing with such procedures on the basis
that they are impracticable, unnecessary or contrary to the public
interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good
cause exists for dispensing with the notice of proposed rulemaking and
public comment procedures for this rule. Specifically, this rulemaking
comports and is consistent with the statutory authority set forth in
the Debt Collection Improvement Act of 1996, with no issues of policy
discretion. Accordingly, we believe that opportunity for prior comment
is unnecessary and contrary to the public interest, and we are issuing
these revised regulations as a final rule that will apply to all future
cases under this authority.
The Office of Management and Budget (OMB) has reviewed this final
rule in accordance with the provisions of Executive Order 12866 and has
determined that it does not meet the criteria for a significant
regulatory action. As indicated above, the provisions contained in this
final rulemaking set forth the inflation adjustments in compliance with
the Debt Collection Improvement Act of 1996 for specific applicable
CMPs. The great majority of individuals, organizations and entities
addressed through these regulations do not engage in such prohibited
conduct, and as a result, we believe that any aggregate economic impact
of these revised regulations will be minimal, affecting only those
limited few who may engage in prohibited conduct in violation of the
statute. As such, this final rule and the inflation adjustment
contained therein should have no effect on Federal or state
expenditures.
The Administrator of General Services certifies that this final
rule will not have a significant economic impact on a substantial
number of small business entities. While some penalties may have an
impact on small business entities, it is the nature of the violation
and not the size of the entity that will result in an action by the
agency, and the aggregate economic impact of this rulemaking on small
business entities should be minimal, affecting only those few who have
engaged in prohibited conduct in violation of statutory intent.
This final rule imposes no new reporting or recordkeeping
requirements necessitating clearance by OMB.
List of Subjects in 41 CFR Part 105-70
Administrative hearing, Claims, Program fraud.
Accordingly, 41 CFR Part 105-70 is amended as set forth below:
PART 105-70--[AMENDED]
1. The authority citation for 41 CFR Part 105-70 continues to read
as follows:
Authority: 40 U.S.C. 486(c); 31 U.S.C. 3809.
Sec. 105-70.003 [Amended]
2. Section 105-70.003 is amended in paragraph (a)(1)(iv) by
removing the amount ``5,000'' and inserting in its place, the amount
``5,500''.
3. Section 105-70.003 is amended in paragraph (b)(1)(ii) by
removing the amount ``5,000'' and inserting in its place, the amount
``5,500''.
Dated: November 4, 1996.
David J. Barram,
Acting Administrator of General Services.
[FR Doc. 96-32279 Filed 12-19-96; 8:45 am]
BILLING CODE 6820-38-M
