Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 2071 

1 82 FR 26850 (June 12, 2017). 

2 82 FR 52224 (Nov. 13, 2017). 

3 82 FR 56890 (Dec. 1, 2017). 

1OMB Memorandum M–18–03 (December 15, 

2017). 

SUMMARY: The U.S. Copyright Office is 

further extending the deadline for the 

submission of written comments in 

response to its June 12, 2017 and 

November 13, 2017 interim rules, 

regarding changes to the special 

procedure for examining secure tests, 

and the creation of a new group 

registration option for secure tests, 

respectively. 

DATES: The comment period for the 

interim rules, published on June 12, 

2017 (82 FR 26850), and November 13, 

2017 (82 FR 52224), is extended by an 

additional sixty days. Comments must 

be made in writing and must be 

received in the U.S. Copyright Office no 

later than April 2, 2018. 

ADDRESSES: For reasons of government 

efficiency, the Copyright Office is using 

the regulations.gov system for the 

submission and posting of public 

comments in this proceeding. All 

comments are therefore to be submitted 

electronically through regulations.gov. 

Specific instructions for submitting 

comments are available on the 

Copyright Office website at https://

www.copyright.gov/rulemaking/ 

securetests/. If electronic submission of 

comments is not feasible due to lack of 

access to a computer and/or the 

internet, please contact the Office for 

special instructions using the contact 

information below. 

FOR FURTHER INFORMATION CONTACT: 

Robert J. Kasunic, Associate Register of 

Copyrights and Director of Registration 

Policy and Practice; Sarang Vijay Damle, 

General Counsel and Associate Register 

of Copyrights; Erik Bertin, Deputy 

Director of Registration Policy and 

Practice; or Kevin R. Amer, Senior 

Counsel for Policy and International 

Affairs, by telephone at 202–707–8040 

or by email at rkas@loc.gov, sdam@

loc.gov, ebertin@loc.gov, and kamer@

loc.gov. 

SUPPLEMENTARY INFORMATION: On June 

12, 2017, the U.S. Copyright Office 

issued an interim rule memorializing its 

special procedures for examining secure 

texts.1 On November 13, 2017, the 

Office issued an additional interim rule 

establishing a new group registration 

option for secure test questions.2 The 

Office invited public comment on each 

of these interim rules, and previously 

extended its initial deadline for the 

submission of written comments.3 To 

ensure that members of the public have 

sufficient time to respond, and to ensure 

that the Office has the benefit of a 

complete record, the Office is further 

extending the submission deadline by 

an additional sixty days. Written 

comments now are due no later than 

April 2, 2018. 

Dated: January 9, 2018. 

Sarang V. Damle, 

General Counsel and Associate Register of 

Copyrights. 

[FR Doc. 2018–00549 Filed 1–12–18; 8:45 am] 

BILLING CODE 1410–30–P 

NATIONAL FOUNDATION FOR THE 

ARTS AND HUMANITIES 

National Endowment for the Arts 

45 CFR Parts 1149 and 1158 

RIN 3135–AA33 

Civil Penalties Adjustment for 2018 

AGENCY: National Endowment for the 

Arts, National Foundation for the Arts 

and 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 2018 annual 

inflation adjustments to the initial 

‘‘catch-up’’ adjustments made on June 

15, 2017. 

DATES: Effective date: This rule is 

effective January 15, 2018. Applicability 

date: The adjusted civil monetary 

penalties established by this rule are 

applicable only to civil penalties 

assessed after January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Aswathi Zachariah, 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 entitled ‘‘Federal 

Civil Penalties Adjustments’’ which 

finalized the NEA’s June 15, 2017 

interim final rule entitled 

‘‘Implementing the Federal Civil 

Penalties Adjustment Act Improvements 

Act’’, implementing the 2015 Act 

(section 701 of Pub. L. 114–74), which 

amended the 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 2018 adjustment 

under the 2015 Act.1 Per this guidance, 

the CPI–U adjustment multiplier for this 

annual adjustment in 1.02041. In its 

prior rules, the NEA identified two civil 

penalties which require adjustment: The 

penalty for false statements under the 

PFCRA and the penalty for violations of 

the NEA’s Restrictions on Lobbying. The 

NEA adjusts the amount of those CMPs 

amount accordingly. 

2. Effective Dates 

The inflation adjustments contained 

in this rule shall apply to any violations 

assessed after January 15, 2018, the 

effective date of this rule. 

3. Adjustments 

Two civil penalties in NEA 

regulations require adjustment in 

accordance with the 2015 Act: (1) The 

penalty associated with Restrictions on 

Lobbying (45 CFR 1158.400; 45 CFR part 

1158, app. A) and (2) the penalty 

associated with the Program Fraud Civil 

Remedies Act (45 CFR 1149.9). 


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2072 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

2 Id. 

A. Adjustments to Penalties Under the 

NEA’s Program Fraud Civil Remedies 

Act Regulations 

The current penalty under the PFCRA 

for false claims and statements is 

currently set at $10,957. 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 2016 and 

October 2017, the CPI–U increased by 

102.041 percent. Therefore, the new 

post-adjustment maximum penalty 

under the PFCRA for false statements is 

$10,957 × 1.02041 = $11,180.63, which 

rounds to $11,180. Therefore, the 

maximum penalty under the PFCRA for 

false claims and statements will be 

$11,180. 

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 $19,246 and 

a maximum of $192,459. 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 2016 and 

October 2017, the CPI–U increased by 

102.041 percent. Therefore, the new 

post-adjustment minimum penalty 

under the Restrictions on Lobbying is 

$19,246 × 1.02041 = $19,638.81, which 

rounds to $19,639, and the maximum 

penalty under the Restrictions on 

Lobbying is $192,459 × 1.02041 = 

$196,387.09, which rounds to $196,387. 

Therefore, range of penalties under the 

law on the Restrictions on Lobbying 

shall be between $19,639 and $196,387. 

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 rulemaking 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 FCPIAA, 

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 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 

programs or the rights or obligations of 

their recipients; and (5) does not raise 

novel legal or policy issues. 

Executive Order 13771 

Executive Order 13771 section 5 

requires that agencies, in most 

circumstances, remove or rescind two 

regulations for every regulatory action 

(such as the promulgation of 

regulations) unless they request and are 

specifically exempted from that order’s 

requirements by the Director of the 

Office of Management and Budget (the 

Director). 

This rule is not subject to the 

requirements of Executive Order 13771 

because this rule is not significant under 

Executive Order 12866. Per OMB 

guidance, annual inflation adjustments 

‘‘are not significant regulatory actions 

under E.O. 12866, they are not 

considered E.O. 13771 regulatory 

actions.’’ 2 Furthermore, the NEA has 

requested and has received an 

exemption from the requirement that 

the agency rescind two regulations for 

every regulation it promulgate from the 

Director. 

Federalism (Executive Order 13132) 

This 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 national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government.’’ The NEA 

has determined that this rulemaking 

will not have Federalism implications 

within the meaning of E.O. 13132. 

Civil Justice Reform (Executive Order 

12988) 

This Directive 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 

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 rulemaking 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. 


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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 2073 

Paperwork Reduction Act of 1995 (44 

U.S.C., Chapter 35) 

This rulemaking 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 rulemaking 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 

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 $100,000,000 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 foreign 

based 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 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 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 rule on the Federal Plain Language 

Guidelines. 

Public Participation 

The NEA encourages public 

participation by ensuring its 

documentation is understandable by the 

general public, and has written this final 

rule in compliance with E.O. 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 

$10,957 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. 

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

read as follows: 

§ 1158.400 Penalties. 

(a) Any person who makes an 

expenditure prohibited herein shall be 

subject to a civil penalty of not less than 

$19,639 and not more than $196,387 for 

each such expenditure. 

(b) Any person who fails to file or 

amend the disclosure form (see 

appendix B of this part) to be filed or 

amended if required herein, shall be 

subject to a civil penalty of not less than 

$19,639 and not more than $196,387 for 

each such failure. 

* * * * * 

(e) First offenders under paragraph (a) 

or (b) of this section shall be subject to 

a civil penalty of $19,639, absent 

aggravating circumstances. Second and 

subsequent offenses by persons shall be 

subject to an appropriate civil penalty 

between $19,639 and $196,387, as 

determined by the agency head or his or 

her designee. 

* * * * * 

Appendix A to Part 1158 [Amended] 

■ 5. Amend appendix A to part 1158 by: 

■ a. Removing ‘‘$19,246’’ and adding in 

its place ‘‘$19,639’’ each place it 

appears. 

■ b. Removing ‘‘$192,459’’ and adding 

in its place ‘‘$196,387’’ each place it 

appears. 

Dated: January 9, 2018. 

Jillian Miller, 

Director of Guidelines and Panel Operations, 

Administrative Services, National 

Endowment for the Arts. 

[FR Doc. 2018–00537 Filed 1–12–18; 8:45 am] 

BILLING CODE P 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE 

45 CFR Parts 1230 and 2554 

RIN 3045–AA68 

Annual Civil Monetary Penalties 

Inflation Adjustment 

AGENCY: Corporation for National and 

Community Service. 

ACTION: Interim final rule. 

SUMMARY: The Corporation for National 

and Community Service (CNCS) is 

updating its regulations to reflect 

required annual inflation-related 

increases to the civil monetary penalties 

in its regulations, pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. 


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