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.

Rules and Regulations Federal Register

34933 

Vol. 83, No. 142 

Tuesday, July 24, 2018 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Part 185 

RIN 3206–AN39 

Program Fraud Civil Remedies: Civil 

Monetary Penalty Inflation Adjustment 

AGENCY: Office of Personnel 

Management (OPM). 

ACTION: Final rule. 

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, with 

an initial ‘‘catch-up’’ adjustment under 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 and Office of Management and 

Budget guidance. It also makes 

subsequent annual catch up 

adjustments. 

DATES: Effective August 23, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Austin Fulk, Office of the General 

Counsel, Office of Personnel 

Management, 1900 E St, NW, 

Washington, DC 20415, Austin.Fulk@

opm.gov, (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) (‘‘the Act’’). The Act 

required agencies to: (1) Adjust the level 

of civil monetary penalties with an 

initial ‘‘catch-up’’ adjustment through 

an interim final rulemaking, and (2) 

make subsequent annual adjustments 

for inflation. The purpose of these 

adjustments is to maintain the deterrent 

effect of civil penalties. 

On July 19, 2016, OPM made an 

initial adjustment to the following civil 

monetary penalties to carry out the 

requirements of the 2015 Act, based on 

instructions found in Office of 

Management and Budget Memorandum 

M–16–06: 

CFR citation Description of the penalty Current 

penalty 

Catchup 

adjustment 

Adjusted 

penalty 

5 CFR 185.103(a) ........................................... Civil Penalty for False Claims ........................ $5,000 $5,781 $10,781 

5 CFR 185.103(f)(2) ........................................ Civil Penalty for False Statements ................. 5,000 5,781 10,781 

That rule took effect on August 1, 

2016. 

This rule takes into account 

adjustments for the year 2016 based on 

inflation for that year. These 

calculations were made based on 

guidance contained in Office of 

Management and Budget Memorandum 

M–17–11: 

CFR citation Description of the penalty Adjusted 

penalty 

2016 Inflation 

adjustment 

2016 Inflation 

adjusted 

amount 

5 CFR 185.103(a) ........................................... Civil Penalty for False Claims ........................ $10,781 $176 $10,957 

5 CFR 185.103(f)(2) ........................................ Civil Penalty for False Statements ................. 10,781 176 10,957

This rule makes additional 

adjustments for the year 2017 based on 

inflation for that year. These 

calculations were made based on 

guidance contained in Office of 

Management and Budget Memorandum 

M–18–03: 

CFR citation Description of the penalty Adjusted 

penalty 

2017 Inflation 

adjustment 

2016 Inflation 

adjusted 

amount 

5 CFR 185.103(a) ........................................... Civil Penalty for False Claims ........................ $10,957 $223 $11,181 

5 CFR 185.103(f)(2) ........................................ Civil Penalty for False Statements ................. 10,957 223 11,181

This final rule is being issued without 

prior public notice or opportunity for 

public comments. The 2015 Act’s 

amendments to the Inflation Adjustment 

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). The 

formula used for adjusting the amount 

of civil penalties 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 


jstallworth on DSKBBY8HB2PROD with RULES
34934 Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Rules and Regulations 

the Consumer Price Index for all Urban 

Consumers (CPI–U). 

II. Calculation of Adjustment 

The Office of Management and Budget 

(OMB) issued guidance on calculating 

the initial catch-up adjustment. See 

February 24, 2016, Memorandum for the 

Heads of Executive Departments and 

Agencies, from Shaun Donovan, 

Director, Office of Management and 

Budget, re: Implementation of the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. Under this guidance, OPM has 

identified applicable civil monetary 

penalties and calculated the catch-up 

adjustment. 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 

calculated catch-up adjustment is based 

on the percent change between the 

Consumer Price Index for all Urban 

Consumers (CPI–U) for the month of 

October in the year of the previous 

adjustment (or in the year of 

establishment, if no adjustment has 

been made) and the October 2015 

CPI–U. 

The Office of Management and Budget 

published guidance on adjusting 

penalties based on the increase in the 

CPI–U between October of 2015 and 

October of 2016, as well as between 

October of 2016 and 2017. See 

December 16, 2016, Memorandum for 

the Heads of Executive Departments and 

Agencies, from Shaun Donovan, 

Director, Office of Management and 

Budget, re: Implementation of the 2017 

annual adjustment pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015; December 15, 2017 Memorandum 

for the Heads of Executive Departments 

and Agencies, from Mick Mulvaney, 

Director, Office of Management and 

Budget re: Implementation of Penalty 

Inflation Adjustments for 2018, 

Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015. This guidance provided 

OPM with the level to which civil 

penalties should be adjusted as annual 

inflation adjustments following the 

initial necessary update to comply with 

the 2015 Act. Although OPM published 

the initial interim final rulemaking to 

adjust its relevant penalties in 

compliance with the 2015 Act, OPM has 

not yet issued the 2017 or 2018 

adjustments. As a result, the increases 

associated with the first two annual 

inflation adjustments mandated under 

the 2015 Act after the original 

adjustment are combined here. 

III. Executive Order Requirements 

Executive Orders 13563 and 12866 

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). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been designated a not significant 

regulatory action, under Executive 

Order 12866. E.O. 13771. 

This final rule is not an E.O. 13771 

regulatory action because this rule is not 

significant under E.O. 12866. 

A. Regulatory Flexibility Act 

I certify that this regulation will not 

have a significant economic impact on 

a substantial number of small entities. 

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). The Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 requires 

agencies to adjust civil penalties 

annually. No discretion is allowed. 

Thus, the RFA does not apply to this 

final rule. 

B. Small Business Regulatory 

Enforcement Fairness Act (5 U.S.C. 

804(2)) 

This rule is not a major rule under the 

Small Business Regulatory Enforcement 

Fairness Act. This rule: 

(a) Does not have an annual effect on 

the economy of $100 million or more. 

(b) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. 

(c) Does not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of United States-based 

enterprises to compete with foreignbased enterprises. 

C. Unfunded Mandate Reform Act of 

1995 (2 U.S.C. 1532) 

This rule does not involve a Federal 

mandate 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 

and that such rulemaking will not 

significantly or uniquely affect small 

governments. 

D. E.O. 12630, Takings 

This rule does not have takings 

implications. 

E. E.O. 13132, Federalism 

We have examined this rule in 

accordance with Executive Order 13132, 

Federalism, and have determined that 

this rule will not have any negative 

impact on the rights, roles, and 

responsibilities of State, local, or Tribal 

governments. 

F. 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. 

G. E.O. 13175, Consultation With Indian 

Tribes 

In accordance with Executive Order 

13175, OPM has evaluated this rule and 

determined that it has no tribal 

implications. 

H. Paperwork Reduction Act 

This rule does not involve any 

collections of information subject to the 

Paperwork Reduction Act of 1995, 

Public Law 104–13. 

List of Subjects in 5 CFR Part 185 

Program fraud civil remedies, Claims, 

Penalties, Basis for civil penalties and 

assessments. 

Office of Personnel Management. 

Jeff T.H. Pon, 

Director. 

For the reasons set forth in the 

preamble, OPM amends part 185 of title 

5 of the Code of Federal Regulations as 

follows: 


jstallworth on DSKBBY8HB2PROD with RULES
Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Rules and Regulations 34935 

PART 185—PROGRAM FRAUD CIVIL 

REMEDIES: CIVIL MONETARY 

PENALTY INFLATION ADJUSTMENT 

■ 1. The authority citation for part 185 

continues to read: 

Authority: 28 U.S.C. 2461 note. 

§ 185.103 [Amended] 

■ 2. Section 185.103 is amended as 

follows: 

■ a. In paragraph (a) introductory text, 

revise ‘‘$10,781’’ to read ‘‘$11,181’’. 

■ b. In paragraph (f)(2), revise ‘‘$10,781’’ 

to read ‘‘$11,181’’. 

[FR Doc. 2018–15764 Filed 7–23–18; 8:45 am] 

BILLING CODE 6325–48–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. No. AMS–SC–17–0073; SC18–985–1 

FR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Salable Quantities and 

Allotment Percentages for the 2018– 

2019 Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Far West 

Spearmint Oil Administrative 

Committee (Committee) to establish 

salable quantities and allotment 

percentages of Class 1 (Scotch) and 

Class 3 (Native) spearmint oil for the 

2018–2019 marketing year. This rule 

also removes references to past volume 

regulation no longer in effect. 

DATES: Effective August 23, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Marketing Specialist, 

or Gary Olson, Regional Director, 

Northwest Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or Email: 

Barry.Broadbent@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

amends regulations issued to carry out 

a marketing order as defined in 7 CFR 

900.2(j). This rule is issued under 

Marketing Order No. 985, as amended (7 

CFR part 985), regulating the handling 

of spearmint oil produced in the Far 

West. Part 985 (referred to as the 

‘‘Order’’) is effective under the 

Agricultural Marketing Agreement Act 

of 1937, as amended (7 U.S.C. 601–674), 

hereinafter referred to as the ‘‘Act.’’ The 

Committee locally administers the 

Order and is comprised of spearmint oil 

producers operating within the area of 

production, and a public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This rule falls within 

a category of regulatory actions that the 

Office of Management and Budget 

(OMB) exempted from Executive Order 

12866 review. Additionally, because 

this rule does not meet the definition of 

a significant regulatory action, it does 

not trigger the requirements contained 

in Executive Order 13771. See OMB’s 

Memorandum titled ‘‘Interim Guidance 

Implementing Section 2 of the Executive 

Order of January 30, 2017, titled 

‘Reducing Regulation and Controlling 

Regulatory Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the Order now in effect, 

salable quantities and allotment 

percentages may be established for 

classes of spearmint oil produced in the 

Far West. This rule establishes 

quantities and percentages for Class 1 

(Scotch) and Class 3 (Native) spearmint 

oil for the 2018–2019 marketing year, 

which began on June 1, 2018. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

Pursuant to §§ 985.50, 985.51, and 

985.52, the Order requires the 

Committee to meet each year to consider 

supply and demand of spearmint oil 

and a marketing policy for the ensuing 

marketing year. When such 

considerations indicate a need to 

establish or maintain stable market 

conditions through volume regulation, 

the Committee recommends salable 

quantity limitations and producer 

allotments to regulate the quantity of 

Far West spearmint oil available to the 

market. 

According to § 985.12, ‘‘salable 

quantity’’ is the total quantity of each 

class of oil that handlers may purchase 

from, or handle on behalf of, producers 

during a given marketing year. The total 

industry allotment base is the aggregate 

of all allotment bases held individually 

by producers as prescribed under 

§ 985.53(d)(1). The total allotment base 

is generally revised each year on June 1 

due to producer base being lost because 

of the bona fide effort production 

provision of § 985.53(e). The allotment 

percentage for each class of spearmint 

oil is derived by dividing the salable 

quantity by the total industry allotment 

base for that same class of oil. The 

allotment percentage is the percentage 

used to calculate each producer’s 

prorated share of the salable quantity or 

their ‘‘annual allotment,’’ as defined in 

§ 985.13. 

The Committee met on October 25, 

2017, to consider its marketing policy 

for the 2018–2019 marketing year. At 

that meeting, the Committee determined 

that, based on overall market and 

supply conditions, volume regulation 

for Classes 1 and 3 (Scotch and Native, 

respectively) spearmint oil is necessary. 

With a unanimous vote, the Committee 

recommended the establishment of a 

salable quantity and allotment 

percentage for Class 1 (Scotch) and 

Class 3 (Native) spearmint oil of 760,660 

pounds and 35 percent, and 1,307,947 

pounds and 53 percent, respectively. 

The Committee also unanimously set its 

2018–2019 marketing year trade 

demand estimate for Far West Scotch 

spearmint oil at 850,000 pounds, and for 

Far West Native spearmint oil at 

1,306,605 pounds. Salable quantities 

and allotment percentages have been 

placed into effect each season since the 

Order’s inception in 1980. 

Class 1 (Scotch) Spearmint Oil 

The Committee’s recommended 2018– 

2019 marketing year salable quantity 

and allotment percentage for Far West 

Scotch spearmint oil represent a 

decrease from the previous year’s 

volume restrictions. The 2018–2019 

marketing year salable quantity of 

760,660 pounds is 13,985 pounds less 

than the 2017–2018 salable quantity of 


jstallworth on DSKBBY8HB2PROD with RULES