536 Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 

Dated: January 14, 2019. 

Scott E. Anderson, 

Captain, U.S. Coast Guard, Captain of the 

Port, Delaware Bay. 

[FR Doc. 2019–00075 Filed 1–30–19; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 36 and 42 

RIN 2900–AQ55 

Federal Civil Penalties Inflation 

Adjustment Act Amendments 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is providing public notice 

of inflationary adjustments to the 

maximum civil monetary penalties 

assessed or enforced by VA, as 

implemented by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, for calendar 

year 2019. VA may impose civil 

monetary penalties for false loan 

guaranty certifications. Also, VA may 

impose civil monetary penalties for 

fraudulent claims or written statements 

made in connection with VA programs 

generally. The Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015, sets forth a formula that 

increases the maximum statutory 

amounts for civil monetary penalties 

and directs VA to give public notice of 

the new maximum amounts by 

regulation. Accordingly, VA is 

providing notice of the calendar year 

2019 inflationary adjustments that 

increase maximum civil monetary 

penalties from $22,363 to $22,927 for 

false loan guaranty certifications and 

from $11,181 to $11,463 for fraudulent 

claims or written statements made in 

connection with VA programs generally. 

DATES: Effective Date: This rule is 

effective January 31, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Michael Shores, Director, Office of 

Regulation Policy and Management 

(00REG), Department of Veterans 

Affairs, 810 Vermont Avenue NW, 

Washington, DC 20420, (202) 461–4921. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: On 

November 2, 2015, the President signed 

into law the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (2015 Act) (Pub. L. 114–74, 

sec. 701, 129 Stat. 599), which amended 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Pub. L. 101– 

410, 104 Stat. 890), to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The 2015 Act was codified in a note 

following 28 U.S.C. 2461. The 2015 Act 

requires agencies to publish annual 

adjustments for inflation, based on the 

percent change between the Consumer 

Price Index for All Urban Consumers 

(CPI–U) for the month of October 

preceding the date of the adjustment 

and the prior year’s October CPI–U. 28 

U.S.C. 2461 note, secs. 4(a) and (b) and 

5(b)(1). This rule implements the 2019 

calendar year inflation adjustment 

amounts. 

Under 38 U.S.C. 3710(g)(4)(B), VA is 

authorized to levy civil monetary 

penalties against private lenders that 

originate VA-guaranteed loans if a 

lender falsely certifies that they have 

complied with certain credit 

information and loan processing 

standards, as set forth by chapter 37, 

title 38 U.S.C. and part 36, title 38 CFR. 

Under section 3710(g)(4)(B), any lender 

who knowingly and willfully makes 

such a false certification shall be liable 

to the United States Government for a 

civil penalty equal to two times the 

amount of the Secretary’s loss on the 

loan involved or to another appropriate 

amount, not to exceed $10,000, 

whichever is greater. VA implemented 

the penalty amount in 38 CFR 

36.4340(k)(1)(i) and (k)(3). On December 

14, 2018, OMB issued Circular M–19– 

04. This circular reflects that the 

October 2017 CPI–U was 246.663 and 

the October 2018 CPI–U was 252.885, 

resulting in an inflation adjustment 

multiplier of 1.02522. Accordingly, the 

calendar year 2019 inflation revision 

imposes an adjustment from $22,363 to 

$22,927. 

Under 31 U.S.C. 3802, VA can impose 

monetary penalties against any person 

who makes, presents, or submits a claim 

or written statement to VA that the 

person knows or has reason to know is 

false, fictitious, or fraudulent, or who 

engages in other covered conduct. The 

statute permits, in addition to any other 

remedy that may be prescribed by law, 

a civil penalty of not more than $5,000 

for each claim. 31 U.S.C. 3802(a)(1) and 

(2). VA implemented the penalty 

amount in 38 CFR 42.3(a)(1) and (b)(1). 

As previously noted, Circular M–19–04 

reflects an inflation adjustment 

multiplier of 1.02522. Therefore, the 

calendar year 2019 inflation revision 

imposes an adjustment from $11,181 to 

$11,463. 

Accordingly, VA is revising 38 CFR 

36.4340(k)(1)(i) and (3) and 38 CFR 

42.3(a)(1)(iv) and (b)(1)(ii) to reflect the 

2019 inflationary adjustments for civil 

monetary penalties assessed or enforced 

by VA. 

Administrative Procedure Act 

The Secretary of Veterans Affairs 

finds that there is good cause under 5 

U.S.C. 553(b)(B) and (d)(3) to dispense 

with the opportunity for prior notice 

and public comment and to publish this 

rule with an immediate effective date. 

The 2015 Act requires agencies to make 

annual adjustments for inflation to the 

allowed amounts of civil monetary 

penalties ‘‘notwithstanding section 553 

of title 5, United States Code.’’ 28 U.S.C. 

2461 note, sec. 4(a) and (b). The penalty 

adjustments, and the methodology used 

to determine the adjustments, are set by 

the terms of the 2015 Act. VA has no 

discretion to make changes in those 

areas. Therefore, an opportunity for 

prior notice and public comment and a 

delayed effective date is unnecessary. 

Executive Orders 12866, 13563, and 

13771 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action’’ requiring review by 

OMB, unless OMB waives such review, 

as any regulatory action that is likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more 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, 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 novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this regulatory action 


khammond on DSKBBV9HB2PROD with RULES
Federal Register / Vol. 84, No. 21 / Thursday, January 31, 2019 / Rules and Regulations 537 

have been examined, and it has been 

determined not to be a significant 

regulatory action under Executive Order 

12866. VA’s impact analysis can be 

found as a supporting document at 

http://www.regulations.gov, usually 

within 48 hours after the rulemaking 

document is published. Additionally, a 

copy of the rulemaking and its impact 

analysis are available on VA’s website at 

http://www.va.gov/orpm/, by following 

the link for ‘‘VA Regulations Published 

From FY 2004 Through Fiscal Year to 

Date.’’ This rule is not an Executive 

Order 13771 regulatory action because 

this rule is not significant under 

Executive Order 12866. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This final rule will have no 

such effect on State, local, and tribal 

governments, or on the private sector. 

Paperwork Reduction Act 

This final rule contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act of 

1995 (44 U.S.C. 3501–3521). 

Regulatory Flexibility Act 

The Regulatory Flexibility Act, 5 

U.S.C. 601 et seq. (RFA), imposes 

certain requirements on Federal agency 

rules that are subject to the notice and 

comment requirements of the 

Administrative Procedure Act (APA), 5 

U.S.C. 553(b). This final rule is exempt 

from the notice and comment 

requirements of the APA because the 

2015 Act directed the Department to 

issue the annual adjustments without 

regard to section 553 of the APA. 

Therefore, the requirements of the RFA 

applicable to notice and comment 

rulemaking do not apply to this rule. 

Accordingly, the Department is not 

required either to certify that the final 

rule would not have a significant 

economic impact on a substantial 

number of small entities or to conduct 

a regulatory flexibility analysis. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance number and title for the 

program affected by this document is 

64.114, Veterans Housing Guaranteed 

and Insured Loans. 

List of Subjects 

38 CFR Part 36 

Condominiums, Housing, Individuals 

with disabilities, Loan programs— 

housing and community development, 

Loan programs—veterans, Manufactured 

homes, Mortgage insurance, Reporting 

and recordkeeping requirements, 

Veterans. 

38 CFR Part 42 

Administrative practice and 

procedure, Claims, Fraud, Penalties. 

Signing Authority 

The Secretary of Veterans Affairs 

approved this document and authorized 

the undersigned to sign and submit the 

document to the Office of the Federal 

Register for publication electronically as 

an official document of the Department 

of Veterans Affairs. Robert L. Wilkie, 

Secretary, Department of Veterans 

Affairs, approved this document on 

January 23, 2019, for publication. 

Dated: January 23, 2019. 

Jeffrey M. Martin, 

Assistant Director, Office of Regulation Policy 

& Management, Office of the Secretary, 

Department of Veterans Affairs. 

For the reasons stated in the 

preamble, the Department of Veterans 

Affairs amends 38 CFR parts 36 and 42 

as set forth below: 

PART 36—LOAN GUARANTY 

■ 1. The authority citation for part 36 

continues to read as follows: 

Authority: 38 U.S.C. 501 and 3720. 

§ 36.4340 [Amended] 

■ 2. In § 36.4340, amend paragraphs 

(k)(1)(i) introductory text and (k)(3) by 

removing ‘‘$22,363’’ and adding in its 

place ‘‘$22,927’’. 

PART 42—STANDARDS 

IMPLEMENTING THE PROGRAM 

FRAUD CIVIL REMEDIES ACT 

■ 3. The authority citation for part 42 

continues to read as follows: 

Authority: Pub. L. 99–509, secs. 6101– 

6104, 100 Stat. 1874, codified at 31 U.S.C. 

3801–3812. 

§ 42.3 [Amended] 

■ 4. In § 42.3, amend paragraphs 

(a)(1)(iv) and (b)(1)(ii) by removing 

‘‘$11,181’’ and adding in its place 

‘‘$11,463’’. 

[FR Doc. 2019–00369 Filed 1–30–19; 8:45 am] 

BILLING CODE 8320–01–P 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3015 

[Docket No. RM2017–1; Order No. 4963] 

Competitive Postal Products 

AGENCY: Postal Regulatory Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adopting 

a final rule concerning the minimum 

amount that the Postal Service’s 

competitive products as a whole are 

required to contribute to institutional 

costs annually. The rule as adopted uses 

a formula-based approach to annually 

calculate competitive products’ 

appropriate share of institutional costs. 

For additional information, Order No. 

4963 can be accessed electronically 

through the Commission’s website at 

https://www.prc.gov. 

DATES: Effective: March 4, 2019. 

FOR FURTHER INFORMATION CONTACT: 

David A. Trissell, General Counsel, at 

202–789–6820. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Relevant Statutory Requirements 

II. Background 

III. Basis and Purpose of Rule Change 

IV. Final Rule 

I. Relevant Statutory Requirements 

Section 3633(a)(3) of title 39 of the 

United States Code requires the 

Commission to ‘‘ensure that all 

competitive products collectively cover 

what the Commission determines to be 

an appropriate share of the institutional 

costs of the Postal Service.’’ 39 U.S.C. 

3633(a)(3). Section 3633(b) requires that 

the Commission revisit the appropriate 

share regulation at least every 5 years in 

order to determine if the minimum 

contribution requirement should be 

‘‘retained in its current form, modified, 

or eliminated.’’ 39 U.S.C. 3633(b). In 

making such a determination, the 

Commission is required to consider ‘‘all 

relevant circumstances, including the 

prevailing competitive conditions in the 

market, and the degree to which any 

costs are uniquely or disproportionately 

associated with any competitive 

products.’’ Id. 

II. Background 

Pursuant to section 3633(b), the 

Commission initiated Docket No. 

RM2017–1 for the purpose of 

conducting its second review of the 

appropriate share requirement since the 

enactment of the Postal Accountability 

and Enhancement Act (PAEA), Public 

Law 109–435, 120 Stat. 3198 (2006). In 

the decade following the PAEA’s 


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