Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Rules and Regulations 10029 

1 82 FR 58348. 

2 82 FR 27431. 

* * * * * 

[FR Doc. 2021–03033 Filed 2–17–21; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

44 CFR Parts 59, 61 and 62 

[Docket ID FEMA–2018–0026] 

RIN 1660–AA95 

National Flood Insurance Program: 

Conforming Changes To Reflect the 

Biggert-Waters Flood Insurance 

Reform Act of 2012 (BW–12) and the 

Homeowners Flood Insurance 

Affordability Act of 2014 (HFIAA), and 

Additional Clarifications for Plain 

Language; Correction 

AGENCY: Federal Emergency 

Management Agency; DHS. 

ACTION: Final rule; correction. 

SUMMARY: On July 20, 2020, FEMA 

published in the Federal Register a final 

rule revising the National Flood 

Insurance Program (NFIP) regulations to 

codify certain provisions of the BiggertWaters Flood Insurance Reform Act of 

2012 and the Homeowner Flood 

Insurance Affordability Act of 2014, and 

to clarify certain existing NFIP rules 

relating to NFIP operations and the 

Standard Flood Insurance Policy. This 

final rule provides corrections to those 

instructions, to be used in lieu of the 

information published July 20. 

DATES: This correction is effective 

October 1, 2021. 

ADDRESSES: The docket for this 

rulemaking is available for inspection 

using the Federal eRulemaking Portal at 

http://www.regulations.gov and can be 

viewed by following that website’s 

instructions. 

FOR FURTHER INFORMATION CONTACT: 

Kelly Bronowicz, Director, Policyholder 

Services Division, Federal Insurance 

and Mitigation Administration, Federal 

Emergency Management Agency, 400 C 

Street SW, Washington, DC 20472, (202) 

557–9488. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2020–09260, beginning on page 43946 

in the Federal Register of Monday, July 

20, 2020, the following corrections are 

made: 

PART 61—INSURANCE COVERAGE 

AND RATES 

§ 61.6 [Corrected] 

■ 1. On page 43958, in the amendment 

to § 61.6, in ‘‘Table 1 to Paragraph (a)— 

Maximum Amounts of Coverage 

Available’’, the center heading ‘‘Bulding 

Coverage’’ is corrected to read ‘‘Building 

Coverage’’; 

Appendix A(1) to Part 61 [Corrected] 

■ 2. On page 43968, in the first column, 

in Appendix A(1) to part 61, article 

VIII.D.3.c, ‘‘If this policy is cancelled 

pursuant to VIII.D.4.b,’’ is corrected to 

read ‘‘If this policy is cancelled 

pursuant to VIII.D.3.b,’’; 

Appendix A(2) to Part 61 [Corrected] 

■ 3. On page 43976, in the second 

column, in Appendix A(2) to part 61, 

article VIII.D.3.c, ‘‘If this policy is 

cancelled pursuant to VIII.D.4.b,’’ is 

corrected to read ‘‘If this policy is 

cancelled pursuant to VIII.D.3.b,’’’ 

Appendix A(3) to Part 61 [Corrected] 

■ 4. On page 43984, in the third column, 

in Appendix A(3) to part 61, article 

IX.D.3.c, ‘‘If this policy is cancelled 

pursuant to VIII.D.3.a,’’ is corrected to 

read ‘‘If this policy is cancelled 

pursuant to IX.D.3.b,’’; 

§ 62.6 [Corrected] 

■ 5. On page 43986, in the third column, 

instruction number 18 and the 

corresponding CFR text is corrected to 

read as follows: 

18. In § 62.6, revise the section 

heading, redesignate paragraphs (a) and 

(b) as paragraphs (b) and (c), add new 

paragraph (a), and revise newly 

redesignated paragraph (b) introductory 

text. 

The addition and revision read as 

follows: 

§ 62.6 Brokers and agents writing NFIP 

policies through the NFIP Direct Servicing 

Agent. 

(a) A broker or agent selling policies 

of flood insurance placed with the NFIP 

at the offices of its servicing agent must 

be duly licensed by the state insurance 

regulatory authority in the state in 

which the property is located. 

(b) The earned commission which 

will be paid to any property or casualty 

insurance agent or broker, with respect 

to each policy or renewal the agent duly 

procures on behalf of the insured, in 

connection with policies of flood 

insurance placed with the NFIP at the 

offices of its servicing agent, but not 

with respect to policies of flood 

insurance issued pursuant to subpart C 

of this part, will not be less than $10 

and is computed as follows: 

* * * * * 

MaryAnn Tierney, 

Acting Deputy Administrator, Federal 

Emergency Management Agency. 

[FR Doc. 2021–02644 Filed 2–17–21; 8:45 am] 

BILLING CODE 9111–52–P 

NATIONAL FOUNDATION ON THE 

ARTS AND THE HUMANITIES 

National Endowment for the Arts 

45 CFR Parts 1149 and 1158 

RIN 3135–AA33 

Civil Penalties Adjustment for 2021 

AGENCY: National Endowment for the 

Arts, National Foundation on the Arts 

and the Humanities. 

ACTION: Final rule. 

SUMMARY: The National Endowment for 

the Arts (NEA) is adjusting the 

maximum civil monetary penalties 

(CMPs) that may be imposed for 

violations of the Program Fraud Civil 

Remedies Act (PFCRA) and the NEA’s 

Restrictions on Lobbying to reflect the 

requirements of the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (the 2015 

Act). The 2015 Act further amended the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (the Inflation 

Adjustment Act) to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

This final rule provides the 2021 annual 

inflation adjustments to the initial 

‘‘catch-up’’ adjustments made on June 

15, 2017, and reflects all other inflation 

adjustments made in the interim. 

DATES: This rule is effective February 

18, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Daniel Fishman, Assistant General 

Counsel, National Endowment for the 

Arts, 400 7th St. SW, Washington, DC 

20506, Telephone: 202–682–5418. 

SUPPLEMENTARY INFORMATION: 

1. Background 

On December 12, 2017, the NEA 

issued a final rule titled ‘‘Federal Civil 

Penalties Adjustments’’ 1 which 

finalized the NEA’s June 15, 2017 

interim final rule titled ‘‘Implementing 

the Federal Civil Penalties Adjustment 

Act Improvements Act of 2015’’,2

implementing the 2015 Act (section 701 

of Pub. L. 114–74), which amended the 


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10030 Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Rules and Regulations 

3OMB Memorandum M–21–10 (December 23, 

2020). 

Inflation Adjustment Act (28 U.S.C. 

2461 note) requiring catch-up and 

annual adjustments to the NEA’s CMPs. 

The 2015 Act requires agencies make 

annual adjustments to its CMPs for 

inflation. 

A CMP is defined in the Inflation 

Adjustment Act as any penalty, fine, or 

other sanction that is (1) for a specific 

monetary amount as provided by 

Federal law, or has a maximum amount 

provided for by Federal law; (2) 

assessed or enforced by an agency 

pursuant to Federal law; and (3) 

assessed or enforced pursuant to an 

administrative proceeding or a civil 

action in the Federal courts. 

These annual inflation adjustments 

are based on the percentage change in 

the Consumer Price Index for all Urban 

Consumers (CPI–U) for the month of 

October preceding the date of the 

adjustment, relative to the October CPI– 

U in the year of the previous 

adjustment. The formula for the amount 

of a CMP inflation adjustment is 

prescribed by law, as explained in OMB 

Memorandum M–16–06 (February 24, 

2016), and therefore the amount of the 

adjustment is not subject to the exercise 

of discretion by the Chairman of the 

National Endowment for the Arts 

(Chairman). 

The Office of Management and Budget 

has issued guidance on implementing 

and calculating the 2021 adjustment 

under the 2015 Act.3 Per this guidance, 

the CPI–U adjustment multiplier for this 

annual adjustment is 1.01182. In its 

prior rules, the NEA identified two 

CMPs, which require adjustment: The 

penalty for false statements under the 

PFCRA and the penalty for violations of 

the NEA’s Restrictions on Lobbying. 

With this rule, the NEA is adjusting the 

amount of those CMPs accordingly. 

2. Dates of Applicability 

The inflation adjustments contained 

in this rule shall apply to any violations 

assessed after January 15, 2021. 

3. Adjustments 

Two CMPs in NEA regulations require 

adjustment in accordance with the 2015 

Act: (1) The penalty associated with the 

Program Fraud Civil Remedies Act (45 

CFR 1149.9) and (2) the penalty 

associated with Restrictions on 

Lobbying (45 CFR 1158.400; 45 CFR part 

1158, appendix A). 

A. Adjustments to Penalties Under the 

NEA’s Program Fraud Civil Remedies 

Act Regulations 

The current maximum penalty under 

the PFCRA for false claims and 

statements is currently set at $11,664. 

The post-adjustment penalty or range is 

obtained by multiplying the preadjustment penalty or range by the 

percent change in the CPI–U over the 

relevant time period and rounding to 

the nearest dollar. Between October 

2018 and October 2019, the CPI–U 

increased by 101.182 percent. Therefore, 

the new post-adjustment maximum 

penalty under the PFCRA for false 

statements is $11,664 × 1.01182 = 

$11,801.87 which rounds to $11,802. 

Therefore, the maximum penalty under 

the PFCRA for false claims and 

statements will be $11,802. 

B. Adjustments to Penalties Under the 

NEA’s Restrictions on Lobbying 

Regulations 

The penalty for violations of the 

Restrictions on Lobbying is currently set 

at a range of a minimum of $20,478 and 

a maximum of $204,891.64. This range 

was improperly not rounded last year. 

While no penalties were assessed which 

would implicate this incorrect 

maximum penalty, we note here that the 

amount should have been set at 

$204,892. We set our penalties for this 

year in accordance with the correct 

amount, without regard to the previous 

administrative error. The postadjustment penalty or range is obtained 

by multiplying the pre-adjustment 

penalty or range by the percent change 

in the CPI–U over the relevant time 

period and rounding to the nearest 

dollar. Between October 2018 and 

October 2019, the CPI–U increased by 

101.182 percent. Therefore, the new 

post-adjustment minimum penalty 

under the Restrictions on Lobbying is 

$20,478 × 1.01182 = $20,720.05, which 

rounds to $20,720, and the maximum 

penalty under the Restrictions on 

Lobbying is $204,892 x 1.01182 = 

$207,313.82, which rounds to $207,314. 

Therefore, the range of penalties under 

the law on the Restrictions on Lobbying 

shall be between $20,720 and $207,314. 

Administrative Procedure Act 

Section 553 of the Administrative 

Procedure Act requires agencies to 

provide an opportunity for notice and 

comment on rulemaking and also 

requires agencies to delay a rule’s 

effective date for 30 days following the 

date of publication in the Federal 

Register unless an agency finds good 

cause to forgo these requirements. 

However, section 4(b)(2) of the 2015 Act 

requires agencies to adjust civil 

monetary penalties notwithstanding 

section 553 of the Administrative 

Procedure Act (APA) and publish 

annual inflation adjustments in the 

Federal Register. ‘‘This means that the 

public procedure the APA generally 

requires . . . is not required for agencies 

to issue regulations implementing the 

annual adjustment.’’ OMB 

Memorandum M–18–03. 

Even if the 2015 Act did not except 

this final rule from section 553 of the 

APA, the NEA has good cause to 

dispense with notice and comment. 

Section 553(b)(B) authorizes agencies to 

dispense with notice and comment 

procedures for rulemaking if the agency 

finds good cause that notice and 

comment are impracticable, 

unnecessary, or contrary to public 

interest. The annual adjustments to civil 

penalties for inflation and the method of 

calculating those adjustments are 

established by section 5 of the 2015 Act, 

as amended, leaving no discretion for 

the NEA. Accordingly, public comment 

would be impracticable because the 

NEA would be unable to consider such 

comments in the rulemaking process. 

Regulatory Planning and Review 

(Executive Order 12866) 

Executive Order 12866 (E.O. 12866) 

established a process for review of rules 

by the Office of Information and 

Regulatory Affairs, which is within the 

Office of Management and Budget 

(OMB). Only ‘‘significant’’ proposed and 

final rules are subject to review under 

this Executive Order. ‘‘Significant,’’ as 

used in E.O. 12866, means 

‘‘economically significant.’’ It refers to 

rules with (1) an impact on the economy 

of $100 million; or that (2) were 

inconsistent or interfered with an action 

taken or planned by another agency; (3) 

materially altered the budgetary impact 

of entitlements, grants, user fees, or loan 

programs; or (4) raised novel legal or 

policy issues. 

This final rule would not be a 

significant policy change and OMB has 

not reviewed this final rule under E.O. 

12866. The NEA has made the 

assessments required by E.O. 12866 and 

determined that this final rule: (1) Will 

not have an effect of $100 million or 

more on the economy; (2) will not 

adversely affect in a material way the 

economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or Tribal 

governments or communities; (3) will 

not create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; (4) does 

not alter the budgetary effects of 

entitlements, grants, user fees, or loan 


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Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Rules and Regulations 10031 

programs or the rights or obligations of 

their recipients; and (5) does not raise 

novel legal or policy issues. 

Federalism (Executive Order 13132) 

This final rule does not have 

federalism implications, as set forth in 

E.O. 13132. As used in this order, 

federalism implications mean 

‘‘substantial direct effects on the States, 

on the relationship between the 

[N]ational [G]overnment and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government.’’ The NEA has 

determined that this final rule will not 

have federalism implications within the 

meaning of E.O. 13132. 

Civil Justice Reform (Executive Order 

12988) 

This final rule meets the applicable 

standards set forth in section 3(a) and 

3(b)(2) of E.O. 12988. Specifically, this 

final rule is written in clear language 

designed to help reduce litigation. 

Indian Tribal Governments (Executive 

Order 13175) 

Under the criteria in E.O. 13175, the 

NEA has evaluated this final rule and 

determined that it would have no 

potential effects on federally recognized 

Indian Tribes. 

Takings (Executive Order 12630) 

Under the criteria in E.O. 12630, this 

final rule does not have significant 

takings implications. Therefore, a 

takings implication assessment is not 

required. 

Regulatory Flexibility Act of 1980 (5 

U.S.C. 605(b)) 

This final rule will not have a 

significant adverse impact on a 

substantial number of small entities, 

including small businesses, small 

governmental jurisdictions, or certain 

small not-for-profit organizations. 

Paperwork Reduction Act of 1995 (44 

U.S.C., Chapter 35) 

This final rule will not impose any 

‘‘information collection’’ requirements 

under the Paperwork Reduction Act. 

Under the Act, information collection 

means the obtaining or disclosure of 

facts or opinions by or for an agency by 

10 or more nonfederal persons. 

Unfunded Mandates Act of 1995 

(Section 202, Pub. L. 104–4) 

This final rule does not contain a 

Federal mandate that will result in the 

expenditure by State, local, and Tribal 

governments, in the aggregate, or by the 

private sector of $100 million or more 

in any one year. 

National Environmental Policy Act of 

1969 (5 U.S.C. 804) 

The final rule will not have a 

significant effect on the human 

environment. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (Sec. 804, Pub. L. 

104–121) 

This final rule would not be a major 

rule as defined in section 804 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. This final rule will 

not result in an annual effect on the 

economy of $100 million or more, a 

major increase in costs or prices, 

significant adverse effects on 

competition, employment, investment, 

productivity, innovation, or on the 

ability of United States-based 

companies to compete with foreignbased companies in domestic and 

export markets. 

E-Government Act of 2002 (44 U.S.C. 

3504) 

Section 206 of the E-Government Act 

requires agencies, to the extent 

practicable, to ensure that all 

information about that agency required 

to be published in the Federal Register 

is also published on a publicly 

accessible website. All information 

about the NEA required to be published 

in the Federal Register may be accessed 

at https://www.arts.gov. This Act also 

requires agencies to accept public 

comments on their rules ‘‘by electronic 

means.’’ See heading ‘‘Public 

Participation’’ for directions on 

electronic submission of public 

comments on this final rule. 

Finally, the E-Government Act 

requires, to the extent practicable, that 

agencies ensure that a publicly 

accessible Federal Government website 

contains electronic dockets for 

rulemakings under the Administrative 

Procedure Act of 1946 (5 U.S.C. 551 et 

seq.). Under this Act, an electronic 

docket consists of all submissions under 

section 553(c) of title 5, United States 

Code; and all other materials that by 

agency rule or practice are included in 

the rulemaking docket under section 

553(c) of title 5, United States Code, 

whether or not submitted electronically. 

The website https://

www.regulations.gov contains electronic 

dockets for the NEA’s rulemakings 

under the Administrative Procedure Act 

of 1946. 

Plain Writing Act of 2010 (5 U.S.C. 301) 

Under this Act, the term ‘‘plain 

writing’’ means writing that is clear, 

concise, well-organized, and follows 

other best practices appropriate to the 

subject or field and intended audience. 

To ensure that this final rule has been 

written in plain and clear language so 

that it can be used and understood by 

the public, the NEA has modeled the 

language of this final rule on the Federal 

Plain Language Guidelines. 

Public Participation (Executive Order 

13563) 

The NEA encourages public 

participation by ensuring its 

documentation is understandable by the 

general public, and has written this final 

rule in compliance with Executive 

Order 13563 by ensuring its 

accessibility, consistency, simplicity of 

language, and overall 

comprehensibility. 

List of Subjects in 45 CFR Parts 1149 

and 1158 

Administrative practice and 

procedure, Government contracts, Grant 

programs, Loan programs, Lobbying, 

Penalties. 

For the reasons stated in the 

preamble, the NEA amends 45 CFR 

chapter XI, subchapter B, as follows: 

PART 1149—PROGRAM FRAUD CIVIL 

REMEDIES ACT REGULATIONS 

■ 1. The authority citation for part 1149 

continues to read as follows: 

Authority: 5 U.S.C. App. 8G(a)(2); 20 

U.S.C. 959; 28 U.S.C. 2461 note; 31 U.S.C. 

3801–3812. 

■ 2. Revise § 1149.9(a)(1) to read as 

follows: 

§ 1149.9 What civil penalties and 

assessments may I be subjected to? 

(a) * * * 

(1) A civil penalty of not more than 

$11,802 for each false, fictitious or 

fraudulent statement or claim; and 

* * * * * 

PART 1158—NEW RESTRICTIONS ON 

LOBBYING 

■ 3. The authority citation for part 1158 

continues to read as follows: 

Authority: 20 U.S.C. 959; 28 U.S.C. 2461; 

31 U.S.C. 1352. 

§ 1158.400 [Amended] 

■ 4. Amend § 1158.400(a), (b), and (e) 

by: 

■ a. Removing ‘‘$20,478’’ and adding in 

its place ‘‘$20,720’’ each place it 

appears. 

■ b. Removing ‘‘$204,891.64’’ and 

adding in its place ‘‘$207,314’’ each 

place it appears. 

Appendix A to Part 1158 [Amended] 

■ 5. Amend appendix A to part 1158 by: 


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10032 Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Rules and Regulations 

■ a. Removing ‘‘$20,478’’ and adding in 

its place ‘‘$20,720’’ each place it 

appears. 

■ b. Removing ‘‘$204,891.64’’ and 

adding in its place ‘‘$207,314’’ each 

place it appears. 

Dated: January 11, 2021. 

Anthony M. Bennett, 

Director of Administrative Services. 

[FR Doc. 2021–00765 Filed 2–17–21; 8:45 am] 

BILLING CODE P 


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