89 FR 244 pgs. 103662-103663 - Civil Monetary Penalties Inflation Adjustment
Type: RULEVolume: 89Number: 244Pages: 103662 - 103663
Pages: 103662, 103663Docket number: [FPMR Case 2025-01; Docket No. GSA-FPMR-2025-0021; Sequence No. 1]
FR document: [FR Doc. 2024-30242 Filed 12-18-24; 8:45 am]
Agency: General Services Administration
Official PDF Version: PDF Version
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 105-70
[FPMR Case 2025-01; Docket No. GSA-FPMR-2025-0021; Sequence No. 1]
RIN 3090-AK89
Civil Monetary Penalties Inflation Adjustment
AGENCY:
The Office of the General Counsel, General Services Administration.
ACTION:
Final rule.
SUMMARY:
In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015, this final rule applies the inflation adjustments for GSA's civil monetary penalties.
DATES:
Effective 30 days after the date of publication.
FOR FURTHER INFORMATION CONTACT:
Mr. Aaron Pound, Assistant General Counsel, General Law Division (LG), General Services Administration, 1800 F Street NW, Washington DC 20405. Telephone Number 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) and the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 (Sec. 701 of Pub. L. 114-74) 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 year thereafter for these penalty amounts. The Debt Collection Improvement Act of 1996 further stipulates that any resulting increases in a CMP due to the calculated inflation adjustments shall apply only to violations which occur after the date the increase takes effect 30 days after the date of publication in the Federal Register . Pursuant to the 2015 Act, agencies are required to adjust the level of the CMP with an initial "fix", and make subsequent annual adjustments for inflation. Catch up adjustments are based on the percent change between the Consumer Price Index for Urban Consumers (CPI-U) for the month of October for the year of the previous adjustment, and the October 2015 CPI-U. Annual inflation adjustments will be based on the percent change between the October CPI-U preceding the date of adjustment and the prior year's October CPI-U.
II. The Program Fraud Civil Remedies Act of 1986
Sections 6103 and 6104 of the Omnibus Budget Reconciliation Act of 1986 (Pub. L. 99-509) 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 (61 FR 246, December 20, 1996) and codified at 41 CFR part 105-70, currently set forth a CMP of up to $13,400 for each false claim or statement made to the agency. Based on the penalty amount inflation factor calculation, derived from originally dividing the October 2023 CPI by the October 2024 CPI and making the CPI-based annual adjustment thereafter, after rounding, we are adjusting the maximum penalty amount for this CMP to $13,700 for each false claim or statement made to the agency.
III. Subsequent Annual Adjustments
The 2015 Act also requires agencies to make annual adjustments to civil penalty amounts no later than January 15 of each year following the initial adjustment described above. For subsequent adjustments made in accordance with the 2015 Act, the amount of the adjustment is based on the percent increase between the CPI-U for the month of October preceding the date of the adjustment and the CPI-U for the October one year prior to the October immediately preceding the date of the adjustment. If there is no increase, there is no adjustment of civil penalties. Therefore, if GSA adjusts penalties in January 2026, the adjustment will be calculated based on the percent change between the CPI-U for October 2026 (the October immediately preceding the date of adjustment) and October 2025 (the October one year prior to October 2026). GSA will publish the amount of these annual inflation adjustments in the Federal Register no later than January 15 of each year, starting in 2026.
IV. Public Participation
The Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 expressly exempts this final rule from the notice and comment requirements of the Administrative Procedure Act by directing agencies to adjust civil monetary penalties for inflation "notwithstanding section 553 of title 5, United States Code" (Pub. L. 114-74, 129 Stat. 599; 28 U.S.C. 2461 note). As such, this final rule is being issued without prior public notice or opportunity for public comment, with an effective date 30 days after the date of publication in the Federal Register .
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 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). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget (OMB) has reviewed this final rule in accordance with the provisions of E.O. 12866 and has determined that it does not meet the criteria for a significant regulatory action and thus was not subject to review under Section 6(b) of E.O. 12866. As indicated above, the provisions contained in this final rulemaking set forth the inflation adjustments in compliance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, 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.
VI. Congressional Review Act
[top] The agency and the Office of Information and Regulatory Affairs, OMB have determined that this rule is not a major rule under 5 U.S.C. 804(2). Subtitle E of the Small Business
VII. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) 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 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). As explained above, GSA is not required to first publish a proposed rule here. Thus, the RFA does not apply to this final rule.
VIII. Paperwork Reduction Act
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.
Robin Carnahan,
Administrator.
Accordingly, 41 CFR part 105-70 is amended as set forth below:
PART 105-70-IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986
1. The authority citation for part 105-70 continues to read as follows:
Authority:
40 U.S.C. 121(c); 31 U.S.C. 3809.
2. Amend §?105-70.003 by-
a. Removing from paragraph (a)(1)(iv) the amount "13,400" and adding "13,700" in its place;
b. Removing from paragraph (b)(1)(ii) the amount "13,400" and adding "13,700" in its place; and
c. Adding paragraphs (f) and (g).
The additions read as follows:
§?105-70.003 Basis for civil penalties and assessments.
(f) For violations occurring on or after January 1, 2025, the maximum penalty, which may be assessed under paragraphs (a)(1)(iv) or (b)(1)(ii) of this section, is the larger of:
(1) The amount for the previous calendar year, or
(2) An amount adjusted for inflation, calculated by multiplying the amount for the previous calendar year by the percentage by which the CPI-U for the month of October preceding the current calendar year exceeds the CPI-U for the month of October of the calendar year two years prior to the current calendar year, adding that amount to the amount for the previous calendar year, and rounding the total to the nearest hundred dollar increment.
(g) Notice of the maximum penalty which may be assessed under paragraphs (a)(1)(iv) and (b)(1)(ii) of this section for calendar year 2026 and thereafter will be published by GSA in the Federal Register on an annual basis on or before January 15 of each calendar year.
[FR Doc. 2024-30242 Filed 12-18-24; 8:45 am]
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