1072 Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 

1 81 FR 36771 (Jun. 8, 2016). 

2 82 FR 3168 (Jan. 11, 2017). 

3 83 FR 234 (Jan. 3, 2018). 

4 84 FR 9957 (Mar. 19, 2019). 

5 85 FR 2020 (Jan. 14, 2020). 

6 86 FR 7804 (Feb. 2, 2021). 

(k) Section 333(a) of the Energy Policy 

and Conservation Act, 42 U.S.C. 

6303(a)—$503; 

(l) Sections 525(a) and (b) of the 

Energy Policy and Conservation Act, 42 

U.S.C. 6395(a) and (b), respectively— 

$24,714 and $46,517, respectively; 

(m) Section 621(a)(2) of the Fair 

Credit Reporting Act, 15 U.S.C. 

1681s(a)(2)—$4,367; 

(n) Section 1115(a) of the Medicare 

Prescription Drug Improvement and 

Modernization Act of 2003, Public Law 

108–173, as amended by Public Law 

115–263, 21 U.S.C. 355 note—$16,445; 

(o) Section 814(a) of the Energy 

Independence and Security Act of 2007, 

42 U.S.C. 17304—$1,323,791; and 

(p) Civil monetary penalties 

authorized by reference to the Federal 

Trade Commission Act under any other 

provision of law within the jurisdiction 

of the Commission—refer to the 

amounts set forth in paragraphs (c), (d), 

(e) and (f) of this section, as applicable. 

By direction of the Commission. 

April Tabor, 

Secretary. 

[FR Doc. 2022–00213 Filed 1–7–22; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF STATE 

22 CFR Parts 35, 103, 127, and 138 

[Public Notice: 11617] 

RIN 1400–AF43 

Department of State 2022 Civil 

Monetary Penalties Inflationary 

Adjustment 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: This final rule is issued to 

adjust the civil monetary penalties 

(CMP) for regulatory provisions 

maintained and enforced by the 

Department of State. The revised CMP 

adjusts the amount of civil monetary 

penalties assessed by the Department of 

State based on the December 2021 

guidance from the Office of 

Management and Budget. The new 

amounts will apply only to those 

penalties assessed on or after the 

effective date of this rule, regardless of 

the date on which the underlying facts 

or violations occurred. 

DATES: This final rule is effective on 

January 10, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Alice Kottmyer, Attorney-Adviser, 

Office of Management, kottmyeram@

state.gov. ATTN: Regulatory Change, 

CMP Adjustments, (202) 647–2318. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, Public Law 

101–410, as amended by the Debt 

Collection Improvement Act of 1996, 

Public Law 104–134, required the head 

of each agency to adjust its CMPs for 

inflation no later than October 23, 1996 

and required agencies to make 

adjustments at least once every four 

years thereafter. The Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, Section 701 

of Public Law 114–74 (the 2015 Act) 

further amended the 1990 Act by 

requiring agencies to adjust CMPs, if 

necessary, pursuant to a ‘‘catch-up’’ 

adjustment methodology prescribed by 

the 2015 Act, which mandated that the 

catch-up adjustment take effect no later 

than August 1, 2016. Additionally, the 

2015 Act required agencies to make 

annual adjustments to their respective 

CMPs in accordance with guidance 

issued by the Office of Management and 

Budget (OMB). 

Based on these statutes, the 

Department of State (the Department) 

published a final rule in June 2016 1 to 

implement the ‘‘catch-up’’ provisions; 

and annual updates to its CMPs in 

January 2017,2 January 2018,3 March 

2019 (delayed due to the Government 

shutdown),4 January 2020,5 and 

February 2021 (delayed due to 

transition issues).6

On December 15, 2021, OMB notified 

agencies that the annual cost-of-living 

adjustment multiplier for 2021, based 

on the Consumer Price Index, is 

1.06222. Additional information may be 

found in OMB Memorandum M–22–07 

at: https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 

This final rule amends Department 

CMPs for fiscal year 2022. 

Overview of the Areas Affected by This 

Rule 

Within the Department of State (title 

22, Code of Federal Regulations), this 

rule affects four areas: 

(1) Part 35, which implements the 

Program Fraud Civil Remedies Act of 

1986 (PFCRA), codified at 31 U.S.C. 

3801–3812; 

(2) Part 103, which implements the 

Chemical Weapons Convention 

Implementation Act of 1998 (CWC Act); 

(3) Part 127, which implements the 

penalty provisions of sections 38(e), 

39A(c), and 40(k) of the Arms Export 

Control Act (AECA) (22 U.S.C. 2778(e), 

2779a(c), and 2780(k)); and 

(4) Part 138, which implements 

Section 319 of Public Law 101–121, 

codified at 31 U.S.C. 1352, prohibits 

recipients of Federal contracts, grants, 

and loans from using appropriated 

funds for lobbying the executive or 

legislative branches of the Federal 

Government in connection with a 

specific contract. 

Specific Changes to 22 CFR Made by 

This Rule 

I. Part 35 

The PFCRA, enacted in 1986, 

authorizes agencies, with approval from 

the Department of Justice, to pursue 

individuals or firms for false claims. In 

addition to applying the annual 

adjustment, this rule also corrects a 

typographical error made in the Code of 

Federal Regulations (CFR). On January 

14, 2020, a rule (85 FR 2020) was 

published in the Federal Register noting 

the inflationary adjustment in § 35.3 for 

2020. Although the rule correctly listed 

the maximum amount at $349,969, an 

error was made in amending the CFR 

itself, with the amount entered as 

$343,969. The inflationary adjustment 

for 2021 (86 FR 7804 (February 2, 2020)) 

then applied the correct multiplier 

(1.01182), but to the erroneously entered 

number. The maximum amount was 

listed for 2021 as $348,035 but should 

have been $354,106. 

This rule corrects those errors, and for 

the 2022 inflationary adjustment uses 

the proper $354,106 multiplied by the 

inflationary adjustment for 2022 

(1.06222), resulting in a maximum 

liability of $376,138. The amounts for 

the maximum penalty for each false 

claim or statement were correctly 

entered in both 2020 and 2021. 

Consequently, applying the 2022 

multiplier, the new maximum penalty is 

$12,537 for each false claim or 

statement, up to a maximum of 

$376,138. 

II. Part 103 

The CWC Act provided domestic 

implementation of the Convention on 

the Prohibition of the Development, 

Production, Stockpiling, and Use of 

Chemical Weapons and on Their 

Destruction. The penalty provisions of 

the CWC Act are codified at 22 U.S.C. 

6761. Applying the 2021 multiplier, the 

new maximum amounts are as follows: 

Prohibited acts related to inspections, 

$42,163; for recordkeeping violations, 

$8,433. 

III. Part 127 

The Assistant Secretary of State for 

Political-Military Affairs is responsible 


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Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 1073 

7See discussion relating to 22 CFR 35.3. 

for the imposition of CMPs under the 

International Traffic in Arms 

Regulations (ITAR), which is 

administered by the Directorate of 

Defense Trade Controls (DDTC). 

(1) AECA Section 38(e) 

Applying the 2021 multiplier, the 

new maximum penalty under 22 U.S.C. 

2778 (22 CFR 127.10(a)(1)(i)) is 

$1,272,251. 

(2) AECA Section 39A(c) 

Applying the multiplier, the new 

maximum penalty under 22 U.S.C. 

2779a (22 CFR 127.10(a)(1)(ii)) is 

$925,041, or five times the amount of 

the prohibited payment, whichever is 

greater. 

(3) AECA Section 40(k) 

Applying the multiplier, the new 

maximum penalty under 22 U.S.C. 2780 

(22 CFR 127.10(a)(1)(iii)) is $1,101,061. 

IV. Part 138 

Section 319 of Public Law 101–121, 

codified at 31 U.S.C. 1352, provides 

penalties for recipients of Federal 

contracts, grants, and loans who use 

appropriated funds to lobby the 

executive or legislative branches of the 

Federal Government in connection with 

a specific contract, grant, or loan. Any 

person who violates that prohibition is 

subject to a civil penalty. The statute 

also requires each person who requests 

or receives a Federal contract, grant, 

cooperative agreement, loan, or a 

Federal commitment to insure or 

guarantee a loan, to disclose any 

lobbying; there is a penalty for failure to 

disclose. 

Applying the 2021 multiplier, the 

maximum penalties for both improper 

expenditures and failure to disclose, is: 

For first offenders, $21,665; for others, 

not less than $22,021, and not more 

than $220,213. 

Summary 

2022 MULTIPLIER: 1.06222 

Citation in 22 CFR Corrected FY21 max penalties 7 New (FY 22) max penalties 

§ 35.3 .................................................................. $11,803 up to $354,106 ................................... $12,537 up to $376,138. 

§ 103.6(a)(1) Prohibited Acts .............................. $39,693 ............................................................ $42,163. 

§ 103.6(a)(2) Recordkeeping Violations ............. $7,939 .............................................................. $8,433. 

§ 127.10(a)(1)(i) .................................................. $1,197,728 ....................................................... $1,272,251. 

§ 127.10(a)(1)(ii) ................................................. $870,856 or 5 times the amount of the prohibited payment, whichever is greater.$925,041 or 5 times the amount of the prohibited payment, whichever is greater. 

§ 127.10(a)(1)(iii) ................................................ $1,036,566 ....................................................... $1,101,061. 

§ 138.400 First Offenders ................................... $20,396 ............................................................ $21,665. 

§ 138.400 ............................................................ $20,731 up to $207,314 ................................... $22,021 up to $220,213. 

Effective Date of Penalties 

The revised CMP amounts will go into 

effect on the date this rule is published. 

All violations for which CMPs are 

assessed on or after the effective date of 

this rule, regardless of whether the 

violation occurred before the effective 

date, will be assessed at the adjusted 

penalty level. 

Future Adjustments and Reporting 

The 2015 Act directed agencies to 

undertake an annual review of CMPs 

using a formula prescribed by the 

statute. Annual adjustments to CMPs are 

made in accordance with the guidance 

issued by OMB. As in this rulemaking, 

the Department of State will publish 

notification of annual inflation 

adjustments to CMPs in the Federal 

Register no later than January 15 of each 

year, with the adjusted amount taking 

effect immediately upon publication. 

Regulatory Analysis and Notices 

Administrative Procedure Act 

The Department of State is publishing 

this rule using the ‘‘good cause’’ 

exception to the Administrative 

Procedure Act (5 U.S.C. 553(b)), as the 

Department has determined that public 

comment on this rulemaking would be 

impractical, unnecessary, or contrary to 

the public interest. This rulemaking is 

mandatory and entirely without agency 

discretion; it implements Public Law 

114–74. See 5 U.S.C. 553(d)(3). 

Regulatory Flexibility Act 

Because this rulemaking is exempt 

from 5 U.S.C. 553, a regulatory 

flexibility analysis is not required. 

Unfunded Mandates Reform Act of 1995 

This rule does not involve a 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 year and it 

will not significantly or uniquely affect 

small governments. Therefore, no 

actions were deemed necessary under 

the provisions of the Unfunded 

Mandates Reform Act of 1995. 

Congressional Review Act 

This rule is not a major rule within 

the meaning of the Small Business 

Regulatory Enforcement Fairness Act of 

1996. 

Executive Orders 12372 and 13132 

This amendment will not have 

substantial direct effects 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. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this amendment 

does not have sufficient federalism 

implications to require consultations or 

warrant the preparation of a federalism 

summary impact statement. 

Executive Orders 12866 and 13563 

The Department believes that benefits 

of the rulemaking outweigh any costs, 

and there are no feasible alternatives to 

this rulemaking. Pursuant to M–22–07, 

OIRA has determined that agency 

regulations that (1) exclusively 

implement the annual adjustment, (2) 

are consistent with this guidance, and 

(3) have an annual impact of less than 

$100 million, are generally not 

significant regulatory actions under E.O. 

12866. Therefore, agencies are generally 

not required to submit regulations 

satisfying those criteria to OIRA for 

review. This regulation satisfies all of 

those criteria. 

Executive Order 12988 

The Department of State has reviewed 

the proposed amendment in light of 

Executive Order 12988 to eliminate 

ambiguity, minimize litigation, establish 

clear legal standards, and reduce 

burden. 

Executive Order 13175 

The Department of State has 

determined that this rulemaking will 

not have tribal implications, will not 

impose substantial direct compliance 

costs on Indian Tribal governments, and 


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1074 Federal Register / Vol. 87, No. 6 / Monday, January 10, 2022 / Rules and Regulations 

will not preempt Tribal law. 

Accordingly, Executive Order 13175 

does not apply to this rulemaking. 

Paperwork Reduction Act 

This rulemaking does not impose or 

revise any information collections 

subject to 44 U.S.C. Chapter 35. 

List of Subjects 

22 CFR Part 35 

Administrative practice and 

procedure, Claims, Fraud, Penalties. 

22 CFR Part 103 

Administrative practice and 

procedure, Chemicals, Classified 

information, Foreign relations, Freedom 

of information, International 

organization, Investigations, Penalties, 

Reporting and recordkeeping 

requirements. 

22 CFR Part 127 

Arms and munitions, Crime, Exports, 

Penalties, Seizures and forfeitures. 

22 CFR Part 138 

Government contracts, Grant 

programs, Loan programs, Lobbying, 

Penalties, Reporting and recordkeeping 

requirements. 

For the reasons set forth above, 22 

CFR parts 35, 103, 127, and 138 are 

amended as follows: 

PART 35—PROGRAM FRAUD CIVIL 

REMEDIES 

■ 1. The authority citation for part 35 

continues to read as follows: 

Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801 

et seq.; Pub. L. 114–74, 129 Stat. 584. 

§ 35.3 [Amended] 

■ 2. In § 35.3: 

■ a. Remove ‘‘$11,803’’and add in its 

place ‘‘$12,537’’, wherever it occurs. 

■ b. In paragraph (f), remove ‘‘$348,035’’ 

and add in its place ‘‘$376,138’’. 

PART 103—REGULATIONS FOR 

IMPLEMENTATION OF THE CHEMICAL 

WEAPONS CONVENTION AND THE 

CHEMICAL WEAPONS CONVENTION 

IMPLEMENTATION ACT OF 1998 ON 

THE TAKING OF SAMPLES AND ON 

ENFORCEMENT OF REQUIREMENTS 

CONCERNING RECORDKEEPING AND 

INSPECTIONS 

■ 3. The authority citation for part 103 

continues to read as follows: 

Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701 

et seq.; Pub. L. 114–74, 129 Stat. 584. 

§ 103.6 [Amended] 

■ 4. In § 103.6: 

■ a. In paragraph (a)(1), remove 

‘‘$39,693’’ and add in its place 

‘‘$42,163’’; and 

■ b. In paragraph (a)(2), remove 

‘‘$7,939’’ and add in its place ‘‘$8,433’’. 

PART 127—VIOLATIONS AND 

PENALTIES 

■ 5. The authority citation for part 127 

continues to read as follows: 

Authority: Sections 2, 38, and 42, Pub. L. 

90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22 

U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78 

FR 16129; Pub. L. 114–74, 129 Stat. 584. 

§ 127.10 [Amended] 

■ 6. In § 127.10: 

■ a. In paragraph (a)(1)(i), remove 

‘‘$1,197,728’’ and add in its place 

‘‘$1,272,251’’; 

■ b. In paragraph (a)(1)(ii), remove 

‘‘$870,856’’ and add in its place 

‘‘$925,041’’; and 

■ c. In paragraph (a)(1)(iii), remove 

‘‘$1,036,566’’ and add in its place 

‘‘$1,101,061’’. 

PART 138—RESTRICTIONS ON 

LOBBYING 

■ 7. The authority citation for part 138 

continues to read as follows: 

Authority: 22 U.S.C. 2651a; 31 U.S.C. 

1352; Pub. L. 114–74, 129 Stat. 584. 

§ 138.400 [Amended] 

■ 8. In § 138.400: 

■ a. Remove ‘‘$20,731’’ and ‘‘$207,314’’ 

and add in their place ‘‘$22,021’’ and 

‘‘$220,213’’, respectively, wherever they 

occur. 

■ b. In paragraph (e), remove ‘‘$20,396’’ 

and add in its place ‘‘$21,665’’. 

Kevin E. Bryant, 

Deputy Director, Office of Directives 

Management. 

[FR Doc. 2022–00235 Filed 1–7–22; 8:45 am] 

BILLING CODE 4710–10–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2021–0931] 

RIN 1625–AA00 

Safety Zone; San Diego Bay, San 

Diego, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

the navigable waters in the vicinity of 

the Coronado Bridge in San Diego Bay, 

San Diego, CA, in support of a U.S. 

Navy exercise. The safety zone is 

needed to protect personnel, vessels, 

and the marine environment from 

potential hazards associated with the 

exercise. Entry of vessels or persons into 

this zone is prohibited unless 

specifically authorized by the Captain of 

the Port San Diego. 

DATES: This rule is effective from 5 p.m. 

on January 10, 2022 through 3 p.m. on 

January 11, 2022. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2021– 

0931 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Lieutenant Commander John 

Santorum, Waterways Management, 

U.S. Coast Guard Sector San Diego, CA; 

telephone 619–278–7656, email 

MarineEventsSD@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Coast Guard is issuing this 

temporary rule without prior notice and 

opportunity to comment pursuant to 

authority under section 4(a) of the 

Administrative Procedure Act (APA) (5 

U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because we 

must establish this safety zone by 

January 10, 2022. This urgent safety 

zone is required to protect the maritime 

public and the surrounding waterways 

from hazards associated with a U.S. 

Navy exercise. The Coast Guard lacks 

sufficient time to provide a reasonable 

comment period and then consider 

those comments before issuing the rule. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 


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