Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 2045 

1See 28 U.S.C. 2461 note. 2The statute also provides that, for the initial 

2016 adjustment, an agency may adjust a civil 

penalty by less than the otherwise required amount 

if (1) it determines, after publishing a notice of 

proposed rulemaking and providing an opportunity 

for comment, that increasing the civil penalty by 

the otherwise required amount would have a 

negative economic impact or that the social costs 

of increasing the civil penalty by the otherwise 

required amount outweigh the benefits, and (2) the 

Director of the Office of Management and Budget 

concurs with that determination. Inflation 

Adjustment Act section 4(c), codified at 28 UUSC 

2461 note. NASA has chosen not to make use of this 

exception. 3 Inflation Adjustment Act section 6, codified at 

28 U.S.C. 2461 note. 

4 82 FR 28760. 

5 82 FR 48760. 

6Public Law 101–410, 104 Stat. 890 (1990). 

7Public Law 104–134, section 31001(s)(1), 110 

Stat. 1321, 1321–373 (1996). 

8Public Law 114–74, section 701, 129 Stat. 584, 

599 (2015). 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Renton, Washington, on 

December 27, 2017. 

John P. Piccola, Jr., 

Acting Director, System Oversight Division, 

Aircraft Certification Service. 

[FR Doc. 2018–00110 Filed 1–12–18; 8:45 am] 

BILLING CODE 4910–13–P 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

14 CFR Parts 1264 and 1271 

[Document Number NASA–17–094: Docket 

Number–NASA–2017–0004] 

RIN 2700–AE30 

Implementation of the Federal Civil 

Penalties Inflation Adjustment Act and 

Adjustment of Amounts for 2018 

AGENCY: National Aeronautics and 

Space Administration. 

ACTION: Final rule. 

SUMMARY: The National Aeronautics and 

Space Administration (NASA) has 

adopted a final rule making inflation 

adjustments to civil monetary penalties 

within its jurisdiction. This final rule 

represents the annual 2018 inflation 

adjustments of monetary penalties. 

These adjustments are required by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. 

DATES: Effective: This final rule is 

effective January 15, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Bryan R. Diederich, Office of the 

General Counsel, NASA Headquarters, 

telephone (202) 358–0216. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Inflation Adjustment Act, as 

amended by the 2015 Act, required 

Federal agencies to adjust the civil 

penalty amounts within their 

jurisdiction for inflation by July 1, 2016. 

Subsequent to the 2016 adjustment, 

Federal agencies were required to make 

an annual inflation adjustment by 

January 15 every year thereafter.1

Agencies were required to make the 

initial 2016 adjustments through an 

interim final rulemaking published in 

the Federal Register.2 Under the 

amended Act, any increase in a civil 

penalty made under the Act will apply 

to penalties assessed after the increase 

takes effect, including penalties whose 

associated violation predated the 

increase.3 The inflation adjustments 

mandated by the Act serve to maintain 

the deterrent effect of civil penalties and 

to promote compliance with the law. 

On June 26, 2017, NASA published its 

interim final rule providing for the 

initial adjustment called for under the 

Act.4 The public comment period 

interim final rule closed on August 24, 

2016, and the rule became effective on 

August 25, 2017. On October 20, 2017, 

NASA adopted this interim rule as 

final.5 In its final rule, NASA also 

amended the interim rule to incorporate 

the required annual adjustments for 

2017. 

Pursuant to the Act, adjustments to 

the civil penalties are required to be 

made by January 15 of each year. The 

annual adjustments are based on the 

percent change between the U.S. 

Department of Labor’s Consumer Price 

Index for All Urban Consumers (‘‘CPI– 

U’’) for the month of October preceding 

the date of the adjustment, and the CPI– 

U for October of the prior year (28 

U.S.C. 2461 note, section (5)(b)(1)). 

Based on that formula, the cost-of-living 

adjustment multiplier for 2018 is 

1.02041 percent. Pursuant to the 2015 

Act, adjustments are rounded to the 

nearest dollar. 

II. The Final Rule 

This final rule makes the required 

adjustments to civil penalties for 2018. 

Applying the 2018 multiplier above, the 

adjustments for each penalty are 

summarized below. 

Law Penalty description 2017 penalty 

Penalty 

adjusted 

for 2018 

Program Fraud Civil Remedies Act of 1986 ................ Maximum Penalties for False Claims ........................... $10,957 $11,181 

Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 

319.

Minimum Penalty for use of appropriated funds to 

lobby or influence certain contracts.

19,246 19,639 

Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 

319.

Maximum Penalty for use of appropriated funds to 

lobby or influence certain contracts.

192,459 196,387 

Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 

319.

Minimum penalty for failure to report certain lobbying 

transactions.

19,246 19,639 

Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 

319.

Maximum penalty for failure to report certain lobbying 

transactions.

192,459 196,387 

This rule codifies these civil penalty 

amounts by amending parts 1264 and 

1271 of title 14 of the CFR. 

III. Legal Authority and Effective Date 

NASA issues this rule under the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990,6 as amended 

by the Debt Collection Improvement Act 

of 1996,7 and further amended by the 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015,8 which requires NASA to adjust 

the civil penalties within its jurisdiction 


daltland on DSKBBV9HB2PROD with RULES
2046 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations 

9See 5 U.S.C. 533(d). 

10 5 U.S.C. 603(a), 604(a). 

11 44 U.S.C. 3506. 

1 15 U.S.C. 77a et seq. 

2Public Law 111–203, 124 Stat. 1376 (2010). 

3The SEC and the CFTC, in consultation with the 

Board of Governors of the Federal Reserve System, 

jointly further defined the product and 

intermediary terms used in Title VII, including 

‘‘swap,’’ ‘‘security-based swap,’’ ‘‘swap dealer,’’ 

‘‘security-based swap dealer,’’ ‘‘major swap 

participant,’’ ‘‘major security-based swap 

participant,’’ ‘‘eligible contract participant,’’ and 

‘‘security-based swap agreement.’’ See Further 

Definition of ‘‘Swap Dealer,’’ ‘‘Security-Based Swap 

Dealer,’’ ‘‘Major Swap Participant,’’ ‘‘Major 

Security-Based Swap Participant’’ and ‘‘Eligible 

Contract Participant’’, Release No. 34–66868 (Apr. 

27, 2012), 77 FR 30596 (May 23, 2012) 

(‘‘Intermediary Definitions Adopting Release’’), and 

Further Definition of ‘‘Swap,’’ ‘‘Security-Based 

Swap,’’ and ‘‘Security-Based Swap Agreement’’; 

Mixed Swaps; Security-Based Swap Agreement 

Recordkeeping, Release No. 33–9338 (Jul. 18, 2012), 

77 FR 48208 (Aug. 13, 2012) (‘‘Product Definitions 

Adopting Release’’). 

4 15 U.S.C. 78a et seq. 

5See Sections 761(a)(2) and 768(a)(1) of the 

Dodd-Frank Act (amending Section 3(a)(10) of the 

Exchange Act [15 U.S.C. 78c(a)(10)] and Section 

2(a)(1) of the Securities Act [15 U.S.C. 77b(a)(1)], 

respectively). 

6See 15 U.S.C. 77e. 

for inflation according to a statutorily 

prescribed formula. 

Section 553 of title 5 of the United 

States Code generally requires an agency 

to publish a rule at least 30 days before 

its effective date to allow for advance 

notice and opportunity for public 

comments.9 After the initial adjustment 

for 2016, however, the Civil Penalties 

Inflation Adjustment Act requires 

agencies to make subsequent annual 

adjustments for inflation 

‘‘notwithstanding section 553 of title 5, 

United States Code.’’ Moreover, the 

2018 adjustments are made according to 

a statutory formula that does not 

provide for agency discretion. 

Accordingly, a delay in effectiveness of 

the 2018 adjustments is not required. 

IV. Regulatory Requirements 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required, the Regulatory 

Flexibility Act does not require an 

initial or final regulatory flexibility 

analysis.10

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995,11 NASA 

reviewed this final rule. No collections 

of information pursuant to the 

Paperwork Reduction Act are contained 

in the final rule. 

List of Subjects in 14 CFR Parts 1264 

and 1271 

Claims, Lobbying, Penalties. 

For the reasons stated in the 

preamble, the National Aeronautics and 

Space Administration is amending 14 

CFR parts 1264 and 1271 as follows: 

PART 1264—IMPLEMENTATION OF 

THE PROGRAM FRAUD CIVIL 

PENALTIES ACT OF 1986 

■ 1. The authority citation for part 1264 

continues to read as follows: 

Authority: 31 U.S.C. 3809, 51 U.S.C. 

20113(a). 

§ 1264.102 [Amended] 

■ 2. In § 1264.102, remove the number 

‘‘$10,957’’ everywhere it appears and 

add in its place the number ‘‘$11,181’’. 

PART 1271—NEW RESTRICTIONS ON 

LOBBYING 

■ 3. The authority citation for part 1271 

continues to read as follows: 

Authority: Section 319, Pub. L. 101–121 

(31 U.S.C. 1352); Pub. L. 97–258 (31 U.S.C. 

6301 et seq.) 

§ 1271.400 [Amended] 

■ 4. In § 1271.400: 

■ a. In paragraphs (a) and (b), remove 

the words ‘‘not less than $19,246 and 

not more than $192,459’’ and add in 

their place the words ‘‘not less than 

$19,639 and not more than $196,387’’. 

■ b. In paragraph (e), remove the two 

occurrences of ‘‘$19,246’’ and add in 

their place ‘‘$19,639’’ and remove 

‘‘$192,459’’ and add in its place 

‘‘$196,387’’. 

Appendix A to Part 1271 [Amended] 

■ 5. In appendix A to part 1271: 

■ a. Remove the number ‘‘$19,246’’ 

everywhere it appears and add in its 

place the number ‘‘$19,639’’. 

■ b. Remove the number ‘‘$192,459’’ 

everywhere it appears and add in its 

place the number ‘‘$196,387’’. 

Nanette J. Smith, 

NASA Federal Register Liaison Officer. 

[FR Doc. 2018–00587 Filed 1–12–18; 8:45 am] 

BILLING CODE 7510–13–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 230 

[Release No. 33–10450; File No. S7–09–14] 

RIN 3235–AL41 

Treatment of Certain Communications 

Involving Security-Based Swaps That 

May Be Purchased Only by Eligible 

Contract Participants 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: We are adopting a rule under 

the Securities Act of 1933 (‘‘Securities 

Act’’) to provide that certain 

communications involving securitybased swaps will not be deemed to 

constitute ‘‘offers’’ of such securitybased swaps for purposes of Section 5 

of the Securities Act. The final rule 

covers the publication or distribution of 

price quotes that relate to security-based 

swaps that may be purchased only by 

persons who are eligible contract 

participants (‘‘covered SBS’’) and are 

traded or processed on or through 

certain trading platforms. The final rule 

also covers a broker, dealer, or securitybased swap dealer’s publication or 

distribution of written communications 

that discuss covered SBS and that meet 

the definition of ‘‘research report’’ in 

Rule 139(d) under the Securities Act 

and certain other conditions. 

DATES: Effective January 16, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Andrew Schoeffler, Special Counsel, 

Office of Capital Markets Trends, 

Division of Corporation Finance, at 

(202) 551–3860, U.S. Securities and 

Exchange Commission, 100 F Street NE, 

Washington, DC 20549–3628. 

SUPPLEMENTARY INFORMATION: We are 

adopting Rule 135d under the Securities 

Act.1

I. Background and Summary 

On July 21, 2010, President Barack 

Obama signed the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (‘‘Dodd-Frank Act’’) 2 into law. Title 

VII of the Dodd-Frank Act (‘‘Title VII’’) 

provides the Securities and Exchange 

Commission (‘‘SEC’’ or the 

‘‘Commission’’) and the Commodity 

Futures Trading Commission (‘‘CFTC’’) 

with the authority to regulate over-thecounter derivatives. Under Title VII, the 

CFTC regulates ‘‘swaps,’’ the SEC 

regulates ‘‘security-based swaps,’’ and 

the CFTC and SEC jointly regulate 

‘‘mixed swaps.’’ 3

Title VII amended the Securities Act 

and the Securities Exchange Act of 1934 

(‘‘Exchange Act’’) 4 to include ‘‘securitybased swaps’’ in the definition of 

‘‘security.’’ 5 As a result, ‘‘security-based 

swaps’’ are subject to the Securities Act 

and the Exchange Act and the rules and 

regulations thereunder. Section 5 of the 

Securities Act requires that any offer or 

sale of a security must either be 

registered under the Securities Act or be 

made pursuant to an exemption from 

registration.6 As a result, counterparties 


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