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

1439 

Vol. 89, No. 7 

Wednesday, January 10, 2024 

1OGE has previously determined, after 

consultation with the Department of Justice, that 

the $200 late filing fee for public financial 

disclosure reports that are more than 30 days 

overdue (see 5 U.S.C. 13106(d) and 5 CFR 2634.704 

of OGE’s regulations thereunder) is not a CMP as 

defined under the Federal Civil Penalties Inflation 

Adjustment Act, as amended. Therefore, that fee is 

not being adjusted in this rulemaking (nor was it 

adjusted by OGE in previous CMP rulemakings). 

The late filing fee for public financial disclosure 

reports that are more than 30 days overdue will 

remain at its current amount of $200. 

OFFICE OF GOVERNMENT ETHICS 

5 CFR Parts 2634 and 2636 

RIN 3209–AA69 

2024 Civil Monetary Penalties Inflation 

Adjustments for Ethics in Government 

Act Violations 

AGENCY: Office of Government Ethics. 

ACTION: Final rule. 

SUMMARY: In accordance with the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015, the U.S. Office of Government 

Ethics is issuing this final rule to make 

the 2024 annual adjustments to the 

Ethics in Government Act civil 

monetary penalties. 

DATES: This final rule is effective 

January 15, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Margaret Dylus-Yukins, Assistant 

Counsel, General Counsel and Legal 

Policy Division, Office of Government 

Ethics, Telephone: 202–482–9300; TTY: 

800–877–8339; FAX: 202–482–9237. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In November 2015, Congress passed 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Sec. 701 of Pub. L. 114–74) (the 

2015 Act), which further amended the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990 (Pub. L. 101– 

410). The 2015 Act required Federal 

agencies to make annual inflationary 

adjustments to the civil monetary 

penalties (CMPs) within their 

jurisdiction, to be effective no later than 

January 15 of each year. 

The Ethics in Government Act, as 

amended, Chapter 131, title 5 of the 

United States Code, provides for five 

CMPs.1 Specifically, the Ethics in 

Government Act provides for penalties 

that can be assessed by an appropriate 

United States district court, based upon 

a civil action brought by the Department 

of Justice, for the following five types of 

violations: 

(1) knowing and willful failure to file, 

report required information on, or 

falsification of a public financial 

disclosure report, 5 U.S.C. 13106(a)(1), 5 

CFR 2634.701(b); 

(2) knowing and willful breach of a 

qualified trust by trustees and interested 

parties, 5 U.S.C. 13104(f)(6)(C)(i), 5 CFR 

2634.702(a); 

(3) negligent breach of a qualified 

trust by trustees and interested parties, 

5 U.S.C. 13104(f)(6)(C)(ii), 5 CFR 

2634.702(b); 

(4) misuse of a public report, 5 U.S.C. 

13107(c)(2), 5 CFR 2634.703; and 

(5) violation of outside employment/ 

activities provisions, 5 U.S.C. 13145(a), 

5 CFR 2636.104(a). 

In compliance with the 2015 Act and 

guidance issued by the Office of 

Management and Budget (OMB), the 

U.S. Office of Government Ethics (OGE) 

made previous inflationary adjustments 

to the five Ethics in Government Act 

CMPs, and is issuing this rulemaking to 

effectuate the 2024 annual inflationary 

adjustments to those CMPs. In 

accordance with the 2015 Act, these 

adjustments are 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. Pursuant to OMB 

guidance, the cost-of-living adjustment 

multiplier for 2024, based on the CPI– 

U for October 2023, not seasonally 

adjusted, is 1.03241. To calculate the 

2024 annual adjustment, agencies must 

multiply the most recent penalty by the 

1.03241 multiplier, and round to the 

nearest dollar. 

Applying the formula established by 

the 2015 Act and OMB guidance, OGE 

is amending the Ethics in Government 

Act CMPs through this rulemaking to: 

(1) Increase the three penalties 

reflected in 5 CFR 2634.702(a), 

2634.703, and 2636.104(a)—which were 

previously adjusted to a maximum of 

$23,727—to a maximum of $24,496; 

(2) Increase the penalty reflected in 5 

CFR 2634.702(b)—which was 

previously adjusted to a maximum of 

$11,864—to a maximum of $12,249; and 

(3) Increase the penalty reflected in 5 

CFR 2634.701(b)—which was 

previously adjusted to a maximum of 

$71,316—to a maximum of $73,627. 

These adjusted penalty amounts will 

apply to penalties for violations that 

occurred after November 2, 2015, and 

that are assessed after January 15, 2024 

(the effective date of this final rule). 

OGE will continue to make future 

annual inflationary adjustments to the 

Ethics in Government Act CMPs in 

accordance with the statutory formula 

set forth in the 2015 Act and OMB 

guidance. 

II. Matters of Regulatory Procedure 

Administrative Procedure Act 

Pursuant to 5 U.S.C. 553(b), as Acting 

Director of the Office of Government 

Ethics, I find that good cause exists for 

waiving the general notice of proposed 

rulemaking and public comment 

procedures as to these technical 

amendments. The notice and comment 

procedures are being waived because 

these amendments, which concern 

matters of agency organization, 

procedure and practice, are being 

adopted in accordance with statutorily 

mandated inflation adjustment 

procedures of the 2015 Act, which 

specifies that agencies shall adjust civil 

monetary penalties notwithstanding 

Section 553 of the Administrative 

Procedure Act. It is also in the public 

interest that the adjusted rates for civil 

monetary penalties under the Ethics in 

Government Act become effective as 

soon as possible in order to maintain 

their deterrent effect. 

Regulatory Flexibility Act 

As the Acting Director of the Office of 

Government Ethics, I certify under the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) that this final rule would not 

have a significant economic impact on 

a substantial number of small entities 

because it primarily affects current 

Federal executive branch employees. 

Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does not apply 


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1440 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 

because this regulation does not contain 

information collection requirements that 

require approval of the Office of 

Management and Budget. 

Unfunded Mandates Reform Act 

For purposes of the Unfunded 

Mandates Reform Act of 1995 (2 U.S.C. 

chapter 25, subchapter II), this rule 

would not significantly or uniquely 

affect small governments and will not 

result in increased expenditures by 

State, local, and tribal governments, in 

the aggregate, or by the private sector, of 

$100 million or more (as adjusted for 

inflation) in any one year. 

Executive Order 13563 and Executive 

Order 12866 

Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select the regulatory 

approaches that maximize net benefits 

(including 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. The Office of Management 

and Budget has determined that 

rulemakings such as this implementing 

annual inflationary adjustments under 

the 2015 Act are not significant 

regulatory actions under Executive 

Order 12866. 

Executive Order 12988 

As Acting Director of the Office of 

Government Ethics, I have reviewed this 

rule in light of section 3 of Executive 

Order 12988, Civil Justice Reform, and 

certify that it meets the applicable 

standards provided therein. 

List of Subjects 

5 CFR Part 2634 

Certificates of divestiture, Conflict of 

interests, Financial disclosure, 

Government employees, Penalties, 

Privacy, Reporting and recordkeeping 

requirements, Trusts and trustees. 

5 CFR Part 2636 

Conflict of interests, Government 

employees, Penalties. 

Dated: January 4, 2024. 

Shelley Finlayson, 

Acting Director, U.S. Office of Government 

Ethics. 

For the reasons set forth in the 

preamble, the U.S. Office of Government 

Ethics is amending 5 CFR parts 2634 

and 2636 as follows: 

PART 2634—EXECUTIVE BRANCH 

FINANCIAL DISCLOSURE, QUALIFIED 

TRUSTS, AND CERTIFICATES OF 

DIVESTITURE 

■ 1. The authority citation for part 2634 

is revised to read as follows: 

Authority: 5 U.S.C. ch. 131; 26 U.S.C. 

1043; Pub. L. 101–410, 104 Stat. 890, 28 

U.S.C. 2461 note, as amended by sec. 31001, 

Pub. L. 104–134, 110 Stat. 1321 and sec. 701, 

Pub. L. 114–74; Pub. L. 112–105, 126 Stat. 

291; E.O. 12674, 54 FR 15159, 3 CFR, 1989 

Comp., p. 215, as modified by E.O. 12731, 55 

FR 42547, 3 CFR, 1990 Comp., p. 306. 

■ 2. Section 2634.701 is amended by 

revising paragraph (b) to read as follows: 

§ 2634.701 Failure to file or falsifying 

reports. 

* * * * * 

(b) Civil action. The Attorney General 

may bring a civil action in any 

appropriate United States district court 

against any individual who knowingly 

and willfully falsifies or who knowingly 

and willfully fails to file or report any 

information required by filers of public 

reports under subpart B of this part. The 

court in which the action is brought 

may assess against the individual a civil 

monetary penalty in any amount, not to 

exceed the amounts set forth in Table 1 

to this section, as provided by 5 U.S.C. 

13106(a)(1), and as adjusted in 

accordance with the inflation 

adjustment procedures prescribed in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

TABLE 1 TO § 2634.701(b) 

Date of violation Penalty 

Violation occurring between Sept. 14, 

2007 and Nov. 2, 2015 .......................... $50,000 

Violation occurring after Nov. 2, 2015 ...... 73,627 

* * * * * 

■ 3. Section 2634.702 is revised to read 

as follows: 

§ 2634.702 Breaches by trust fiduciaries 

and interested parties. 

(a) The Attorney General may bring a 

civil action in any appropriate United 

States district court against any 

individual who knowingly and willfully 

violates the provisions of 

§ 2634.408(d)(1) or (e)(1). The court in 

which the action is brought may assess 

against the individual a civil monetary 

penalty in any amount, not to exceed 

the amounts set forth in Table 1 to this 

paragraph (a), as provided by section 5 

U.S.C. 13104(f)(6)(C)(i) and as adjusted 

in accordance with the inflation 

adjustment procedures prescribed in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

TABLE 1 TO § 2634.702(a) 

Date of violation Penalty 

Violation occurring between Sept. 29, 

1999 and Nov. 2, 2015 .......................... $11,000 

Violation occurring after Nov. 2, 2015 ...... 24,496 

(b) The Attorney General may bring a 

civil action in any appropriate United 

States district court against any 

individual who negligently violates the 

provisions of § 2634.408(d)(1) or (e)(1). 

The court in which the action is brought 

may assess against the individual a civil 

monetary penalty in any amount, not to 

exceed the amounts set forth in Table 2 

to this paragraph (b), as provided by 5 

U.S.C. 13104(f)(6)(C)(ii) and as adjusted 

in accordance with the inflation 

adjustment procedures of the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990, as amended. 

TABLE 2 TO § 2634.702(b) 

Date of violation Penalty 

Violation occurring between Sept. 29, 

1999 and Nov. 2, 2015 .......................... $5,500 

Violation occurring after Nov. 2, 2015 ...... 12,249 

■ 4. Section 2634.703 is revised to read 

as follows: 

§ 2634.703 Misuse of public reports. 

(a) The Attorney General may bring a 

civil action against any person who 

obtains or uses a report filed under this 

part for any purpose prohibited by 5 

U.S.C. 13107(c)(1), as incorporated in 

§ 2634.603(f). The court in which the 

action is brought may assess against the 

person a civil monetary penalty in any 

amount, not to exceed the amounts set 

forth in Table 1 to this section, as 

provided by 5 U.S.C. 13107(c)(2) and as 

adjusted in accordance with the 

inflation adjustment procedures 

prescribed in the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended. 

TABLE 1 TO § 2634.703(a) 

Date of violation Penalty 

Violation occurring between Sept. 29, 

1999 and Nov. 2, 2015 .......................... $11,000 

Violation occurring after Nov. 2, 2015 ...... 24,496 

(b) This remedy shall be in addition 

to any other remedy available under 

statutory or common law. 

PART 2636—LIMITATIONS ON 

OUTSIDE EARNED INCOME, 

EMPLOYMENT AND AFFILIATIONS 

FOR CERTAIN NONCAREER 

EMPLOYEES 

■ 5. The authority citation for part 2636 

is revised to read as follows: 


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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1441 

1Public Law 104–134, Sec. 31001(s), 110 Stat. 

1321–373 (Apr. 26, 1996). The law is codified at 28 

U.S.C. 2461 note. 

2Public Law 101–410, 104 Stat. 890 (Oct. 5, 

1990), codified at 28 U.S.C. 2461 note. 

3Public Law 114–74, 129 Stat. 584 (Nov. 2, 2015). 

4 129 Stat. 599. 

5Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

6 81 FR 40152 (June 21, 2016); 81 FR 78028 (Nov. 

7, 2016). 

7Public Law 114–74, Sec. 701(b)(1), 129 Stat. 584, 

599 (Nov. 2, 2015). 

8 82 FR 7640 (Jan. 23, 2017). 

9 82 FR 29710 (June 30, 2017). 

10 83 FR 2029 (Jan. 16, 2018); 84 FR 2052 (Feb. 

6, 2019); 85 FR 2009 (Jan. 14, 2020); 86 FR 933 (Jan. 

7, 2021); 87 FR 377 (Jan. 5, 2022); 88 FR 1323 (Jan. 

10, 2023). 

11Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 599 (Nov. 2, 2015). 

12This index is published by the Department of 

Labor, Bureau of Labor Statistics, and is available 

at its website: https://www.bls.gov/cpi/. 

13Public Law 114–74, Sec. 701(b)(2)(B), 129 Stat. 

584, 600 (Nov. 2, 2015). 

14Public Law 114–74, Sec. 701(b)(1), 129 Stat. 

584, 600 (Nov. 2, 2015). 

Authority: 5 U.S.C. ch. 131; Pub. L. 101– 

410, 104 Stat. 890, 28 U.S.C. 2461 note, as 

amended by sec. 31001, Pub. L. 104–134, 110 

Stat. 1321 and sec. 701, Pub. L. 114–74; E.O. 

12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 

215, as modified by E.O. 12731, 55 FR 42547, 

3 CFR, 1990 Comp., p. 306. 

■ 6. Section 2636.104 is amended by 

revising the section heading and 

paragraph (a) to read as follows: 

§ 2636.104 Civil, disciplinary, and other 

action. 

(a) Civil action. Except when the 

employee engages in conduct in good 

faith reliance upon an advisory opinion 

issued under § 2636.103, an employee 

who engages in any conduct in violation 

of the prohibitions, limitations, and 

restrictions contained in this part may 

be subject to civil action under 5 U.S.C. 

13145(a), and a civil monetary penalty 

of not more than the amounts set in 

Table 1 to this this paragraph (a), as 

adjusted in accordance with the 

inflation adjustment procedures 

prescribed in the Federal Civil Penalties 

Inflation Adjustment Act of 1990, as 

amended, or the amount of the 

compensation the individual received 

for the prohibited conduct, whichever is 

greater. 

TABLE 1 TO § 2636.104(a) 

Date of violation Penalty 

Violation occurring between Sept. 29, 

1999 and Nov. 2, 2015 .......................... $11,000 

Violation occurring after Nov. 2, 2015 ...... 24,496 

* * * * * 

[FR Doc. 2024–00271 Filed 1–9–24; 8:45 am] 

BILLING CODE 6345–03–P 

NATIONAL CREDIT UNION 

ADMINISTRATION 

12 CFR Part 747 

RIN 3133–AF58 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: National Credit Union 

Administration (NCUA). 

ACTION: Final rule. 

SUMMARY: The NCUA Board (Board) is 

amending its regulations to adjust the 

maximum amount of each civil 

monetary penalty (CMP) within its 

jurisdiction to account for inflation. 

This action, including the amount of the 

adjustments, is required under the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996 and the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015. 

DATES: This final rule is effective 

January 10, 2024. 

FOR FURTHER INFORMATION CONTACT: Gira 

Bose, Senior Staff Attorney, at 1775 

Duke Street, Alexandria, VA 22314, or 

telephone: (703) 518–6562. 

SUPPLEMENTARY INFORMATION: 

I. Legal Background 

II. Regulatory Procedures 

I. Legal Background 

A. Statutory Requirements 

Every Federal agency, including the 

NCUA, is required by law to adjust its 

maximum CMP amounts each year to 

account for inflation. Prior to this being 

an annual requirement, agencies were 

required to adjust their CMPs at least 

once every four years. The previous 

four-year requirement stemmed from the 

Debt Collection Improvement Act of 

1996,1 which amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990.2

The current annual requirement stems 

from the Bipartisan Budget Act of 2015,3

which contains the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015 (the 2015 

amendments).4 This legislation 

provided for an initial ‘‘catch-up’’ 

adjustment of CMPs in 2016, followed 

by annual adjustments. The catch-up 

adjustment reset CMP maximum 

amounts by setting aside the inflation 

adjustments that agencies made in prior 

years and instead calculated inflation 

with reference to the year when each 

CMP was enacted or last modified by 

Congress. Agencies were required to 

publish their catch-up adjustments in an 

interim final rule by July 1, 2016, and 

make them effective by August 1, 2016.5

The NCUA complied with these 

requirements in a June 2016 interim 

final rule, followed by a November 2016 

final rule to confirm the adjustments as 

final.6

The 2015 amendments also specified 

how agencies must conduct annual 

inflation adjustments after the 2016 

catch-up adjustment. Following the 

catch-up adjustment, agencies must 

make the required adjustments and 

publish them in the Federal Register by 

January 15 each year.7 For 2017, the 

NCUA issued an interim final rule on 

January 6, 2017,8 followed by a final 

rule issued on June 23, 2017.9 For each 

of the years 2018 through 2023, the 

NCUA issued a final rule to satisfy the 

agency’s annual requirements.10 This 

final rule satisfies the agency’s 

requirement for the 2024 annual 

adjustment. 

The law provides that the adjustments 

shall be made notwithstanding the 

section of the Administrative Procedure 

Act (APA) that requires prior notice and 

public comment for agency 

rulemaking.11 The 2015 amendments 

also specify that each CMP maximum 

must be increased by the percentage by 

which the consumer price index for 

urban consumers (CPI–U) 12 for October 

of the year immediately preceding the 

year the adjustment is made exceeds the 

CPI–U for October of the prior year.13

Thus, for the adjustment to be made in 

2024, an agency must compare the 

October 2022 and October 2023 CPI–U 

figures. 

An annual adjustment under the 2015 

amendments is not required if a CMP 

has been amended in the preceding 12 

months pursuant to other authority. 

Specifically, the statute provides that an 

agency is not required to make an 

annual adjustment to a CMP if in the 

preceding 12 months it has been 

increased by an amount greater than the 

annual adjustment required by the 2015 

amendments.14 The NCUA did not 

make any adjustments in the preceding 

12 months pursuant to other authority. 

Therefore, this rulemaking adjusts all of 

the NCUA’s CMPs pursuant to the 2015 

amendments. 

B. Application to the 2024 Adjustments 

and Office of Management and Budget 

Guidance 

This section applies the statutory 

requirements and the Office of 

Management and Budget’s (OMB) 

guidance to the NCUA’s CMPs and sets 

forth the Board’s calculation of the 2024 

adjustments. 


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