1458 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 

would affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please call or email the 

person listed in the FOR FURTHER

INFORMATION CONTACT section. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1– 

888–REG–FAIR (1–888–734–3247). The 

Coast Guard will not retaliate against 

small entities that question or complain 

about this rule or any policy or action 

of the Coast Guard. 

C. Collection of Information 

This rule will not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

D. Federalism and Indian Tribal 

Governments 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on the States, on the relationship 

between the National Government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. We have 

analyzed this rule under that order and 

have determined that it is consistent 

with the fundamental federalism 

principles and preemption requirements 

described in Executive Order 13132. 

Also, this rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

E. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Though this rule 

will not result in such an expenditure, 

we do discuss the effects of this rule 

elsewhere in this preamble. 

F. Environment 

We have analyzed this rule under 

Department of Homeland Security 

Directive 023–01, Rev. 1, associated 

implementing instructions, and 

Environmental Planning COMDTINST 

5090.1 (series), which guide the Coast 

Guard in complying with the National 

Environmental Policy Act of 1969 (42 

U.S.C. 4321–4370f), and have 

determined that this action is one of a 

category of actions that do not 

individually or cumulatively have a 

significant effect on the human 

environment. This rule involves a safety 

zone lasting only 60 days based on the 

response operations for the fire onboard 

the M/V GENIUS STAR XI and will 

prohibit entry within 1 nautical mile of 

the vessel. It is categorically excluded 

from further review under paragraph 

L60d of Appendix A, Table 1 of DHS 

Instruction Manual 023–01–001–01, 

Rev. 1. A Record of Environmental 

Consideration supporting this 

determination is available in the docket. 

For instructions on locating the docket, 

see the ADDRESSES section of this 

preamble. 

G. Protest Activities 

The Coast Guard respects the First 

Amendment rights of protesters. 

Protesters are asked to call or email the 

person listed in the FOR FURTHER

INFORMATION CONTACT section to 

coordinate protest activities so that your 

message can be received without 

jeopardizing the safety or security of 

people, places, or vessels. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Waterways. 

For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 46 U.S.C. 70034, 70051, 70124; 

33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; 

Department of Homeland Security Delegation 

No. 00170.1, Revision No. 01.3. 

■ 2. Add § 165.T17–0020 to read as 

follows: 

§ 165.T17–0020 Safety Zone; North Pacific 

Ocean, Dutch Harbor, AK. 

(a) Location. The following is a safety 

zone: All navigable waters within a 1 

nautical mile radius of the M/V GENIUS 

STAR XI within the Captain of the Port 

Zone Western Alaska in the vicinity of 

the Port of Dutch Harbor, AK. 

(b) Definitions. As used in this 

section, designated representative 

means a Coast Guard Patrol 

Commander, including a Coast Guard 

Coxswain, petty officer, or other officer 

operating a Coast Guard vessel and a 

Federal, State, and local officer 

designated by or assisting the Captain of 

the Port Western Alaska (COTP) in the 

enforcement of the safety zone. 

(c) Regulations. (1) Under the general 

safety zone regulations in subpart C of 

this part, you shall not enter the safety 

zone described in paragraph (a) of this 

section unless authorized by the COTP 

or the COTP’s designated representative. 

(2) To seek permission to enter, 

contact the COTP or the COTP’s 

representative via Marine VHF channel 

16 or by calling the USCG Command 

Center at 907–428–4100. Those in the 

safety zone must comply with all lawful 

orders or directions given to them by the 

COTP or the COTP’s designated 

representative. 

(d) Enforcement period. This section 

will be enforced from January 7, 2024, 

through March 6, 2024. 

Dated: January 5, 2024. 

C.A. Culpepper, 

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

Port Western Alaska. 

[FR Doc. 2024–00437 Filed 1–8–24; 4:15 pm] 

BILLING CODE P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Parts 36 and 42 

RIN 2900–AR89 

Federal Civil Penalties Inflation 

Adjustment Act Amendments 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending its regulations 

to adjust for inflation the amount of 

civil monetary penalties that are within 

VA’s jurisdiction. These adjustments 

comply with the requirement in the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015, to make annual adjustments to the 

penalties. 


lotter on DSK11XQN23PROD with RULES1
Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 1459 

DATES: This rule is effective January 10, 

2024. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie Li, Assistant Director, 

Regulations, Legislation, Engagement, 

and Training, Loan Guaranty Service 

(26), Veterans Benefits Administration, 

Department of Veterans Affairs, 810 

Vermont Avenue NW, Washington, DC 

20420, (202) 632–8862. (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. 584, 599–600), which 

amended the Federal Civil Penalties 

Inflation Adjustment Act of 1990 (Pub. 

L. 101–410, sec. 5, 104 Stat. 890, 891– 

892), to improve the effectiveness of 

civil monetary penalties and to maintain 

their deterrent effect. The amended 

statute, codified in a note following 28 

U.S.C. 2461, requires agencies to 

publish annual adjustments for 

inflation, based on the percentage 

change between the Consumer Price 

Index (defined in the statute as the 

Consumer Price Index for all-urban 

consumers (CPI–U) published by the 

Department of Labor) 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 2024 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 

19, 2023, the Office of Management and 

Budget (OMB) issued Circular M–24–07. 

This circular reflects that the October 

2022 CPI–U was 298.012 and the 

October 2023 CPI–U was 307.671, 

resulting in an inflation adjustment 

multiplier of 1.03241. Accordingly, the 

calendar year 2024 inflation revision 

imposes an adjustment from $27,018 to 

$27,894. 

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)(iv) and 

(b)(1)(ii). As previously noted, OMB 

Circular M–24–07 reflects an inflation 

adjustment multiplier of 1.03241. 

Therefore, the calendar year 2024 

inflation revision imposes an 

adjustment from $13,508 to $13,946. 

Accordingly, VA is revising 38 CFR 

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

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

2024 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 statute 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 statute. VA has no 

discretion to make changes in those 

areas. Therefore, an opportunity for 

prior notice and public comment and a 

delayed effective date are unnecessary. 

Executive Orders 12866, 13563 and 

14094 

Executive Order 12866 (Regulatory 

Planning and Review) directs 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 

14094 (Executive Order on Modernizing 

Regulatory Review) supplements and 

reaffirms the principles, structures, and 

definitions governing contemporary 

regulatory review established in 

Executive Order 12866 of September 30, 

1993 (Regulatory Planning and Review), 

and Executive Order 13563 of January 

18, 2011 (Improving Regulation and 

Regulatory Review). The Office of 

Information and Regulatory Affairs has 

determined that this rulemaking is not 

a significant regulatory action under 

Executive Order 12866, as amended by 

Executive Order 14094. The Regulatory 

Impact Analysis associated with this 

rulemaking can be found as a 

supporting document at 

www.regulations.gov. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act, 5 

U.S.C. 601–612, is not applicable to this 

rulemaking because notice of proposed 

rulemaking is not required. 5 U.S.C. 

601(2), 603(a), 604(a). 

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). 

Congressional Review Act 

Pursuant to Subtitle E of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (known as the 

Congressional Review Act) (5 U.S.C. 801 

et seq.), the Office of Information and 

Regulatory Affairs designated this rule 

as not satisfying the criteria under 5 

U.S.C. 804(2). 

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. 


lotter on DSK11XQN23PROD with RULES1
1460 Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Rules and Regulations 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs, approved and signed 

this document on January 4, 2024, 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. 

Luvenia Potts 

Regulation Development Coordinator, Office 

of Regulation Policy & Management, Office 

of General Counsel, 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 ‘‘$27,018’’ and adding in its 

place ‘‘$27,894’’. 

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 

‘‘$13,508’’ and adding in its place 

‘‘$13,946’’. 

[FR Doc. 2024–00353 Filed 1–9–24; 8:45 am] 

BILLING CODE 8320–01–P 

POSTAL SERVICE 

39 CFR Parts 233 and 273 

Inspection Service Authority; Civil 

Monetary Penalty Inflation Adjustment 

AGENCY: Postal ServiceTM. 

ACTION: Interim final rule. 

SUMMARY: This document updates postal 

regulations by implementing inflation 

adjustments to civil monetary penalties 

that may be imposed under consumer 

protection and mailability provisions 

enforced by the Postal Service pursuant 

to the Deceptive Mail Prevention and 

Enforcement Act and the Postal 

Accountability and Enhancement Act, 

as well as the civil monetary penalty 

that may be imposed by the Postal 

Service for false claims and statements 

under the Program Fraud Civil 

Remedies Act. These adjustments are 

required under the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. This 

document includes the adjustments for 

2024 for the statutory civil monetary 

penalties subject to the 2015 Act and all 

necessary updates authorized by the 

2015 Act for regulatory civil monetary 

penalties. 

DATES: Effective January 10, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Louis DiRienzo, (202) 268–2705, 

ljdirienzo@uspis.gov. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (2015 Act), Public Law 114–74, 

129 Stat. 584, amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (1990 Act), Public Law 101–410, 

104 Stat. 890 (28 U.S.C. 2461 note), to 

improve the effectiveness of civil 

monetary penalties and to maintain 

their deterrent effect. Section 3 of the 

1990 Act specifically includes the Postal 

Service in the definition of ‘‘agency’’ 

subject to its provisions. 

Beginning in 2017, the 2015 Act 

requires the Postal Service to make an 

annual adjustment for inflation to civil 

penalties that meet the definition of 

‘‘civil monetary penalty’’ under the 

1990 Act. The Postal Service must make 

the annual adjustment for inflation and 

publish the adjustment in the Federal 

Register by January 15 of each year. 

Each penalty will be adjusted as 

instructed by the Office of Management 

and Budget (OMB) based on the 

Consumer Price Index (CPI–U) from the 

most recent October. OMB has 

furnished detailed instructions 

regarding the annual adjustment for 

2024 in memorandum M–24–07, 

Implementation of Penalty Inflation 

Adjustments for 2024, Pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (December 19, 2023), https://

www.whitehouse.gov/wp-content/ 

uploads/2023/12/M-24-07- 

Implementation-of-Penalty-InflationAdjustments-for-2024.pdf. This year, 

OMB has advised that an adjustment 

multiplier of 1.03241 will be used. The 

new penalty amount must be rounded to 

the nearest dollar. 

The 2015 Act allows the interim final 

rule and annual inflation adjustments to 

be published without prior public 

notice or opportunity for public 

comment. 

Adjustments to Postal Service Civil 

Monetary Penalties 

Civil monetary penalties may be 

assessed for postal offenses under 

sections 106 and 108 of the Deceptive 

Mail Prevention and Enforcement Act, 

Public Law 106–168, 113 Stat. 1811, 

1814 (see, 39 U.S.C. 3012(a), (c)(1), (d), 

and 3017(g)(2), (h)(1)(A)); and section 

1008 of the Postal Accountability and 

Enhancement Act, Public Law 109–435, 

120 Stat. 3259–3261 (see, 39 U.S.C. 

3018(c)(1)(A)). The statutory civil 

monetary penalties subject to the 2015 

Act and the amount of each penalty 

after implementation of the annual 

adjustment for inflation are as follows: 

39 U.S.C. 3012(a)—False 

Representations and Lottery Orders 

Under 39 U.S.C. 3005(a)(1)–(3), the 

Postal Service may issue administrative 

orders prohibiting persons from using 

the mail to obtain money through false 

representations or lotteries. Persons who 

evade, attempt to evade, or fail to 

comply with an order to stop such 

prohibited practices may be liable to the 

United States for a civil penalty under 

39 U.S.C. 3012(a). The regulations 

implemented pursuant to this section 

currently impose a $85,637 penalty for 

each mailing less than 50,000 pieces, 

$171,269 for each mailing of 50,000 to 

100,000 pieces, and $17,128 for each 

additional 10,000 pieces above 100,000 

not to exceed $3,425,405. The new 

penalties will be as follows: a $88,412 

penalty for each mailing less than 

50,000 pieces, $176,820 for each mailing 

of 50,000 to 100,000 pieces, and $17,683 

for each additional 10,000 pieces above 

100,000 not to exceed $3,536,422. 

39 U.S.C. 3012(c)(1)—False 

Representation and Lottery Penalties in 

Lieu of or as Part of an Order 

In lieu of or as part of an order issued 

under 39 U.S.C. 3005(a)(1)–(3), the 

Postal Service may assess a civil 

penalty. Currently, the amount of this 

penalty, set in the implementing 

regulations to 39 U.S.C. 3012(c)(1), is 

$42,818 for each mailing that is less 

than 50,000 pieces, $85,637 for each 

mailing of 50,000 to 100,000 pieces, and 

an additional $8,564 for each additional 

10,000 pieces above 100,000 not to 

exceed $1,712,703. The new penalties 

will be $44,206 for each mailing that is 

less than 50,000 pieces, $88,412 for each 

mailing of 50,000 to 100,000 pieces, and 

an additional $8,842 for each additional 

10,000 pieces above 100,000 not to 

exceed $1,768,212. 


lotter on DSK11XQN23PROD with RULES1