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[Federal Register Volume 90, Number 9 (Wednesday, January 15, 2025)]
[Rules and Regulations]
[Pages 3693-3695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00715]

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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 269

[Docket ID: DOD-2016-OS-0045]
RIN 0790-AL82

Civil Monetary Penalty Inflation Adjustment

AGENCY: Office of the Under Secretary of Defense (Comptroller), 
Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The DoD is issuing this final rule to adjust each of its 
statutory civil monetary penalties (CMP) to account for inflation. 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 (the 2015 
Act), requires the head of each agency to adjust for inflation its CMP 
levels in effect as of November 2, 2015, under a revised methodology 
that was effective for 2016 and for each year thereafter.

DATES: This rule is effective on January 15, 2025.

FOR FURTHER INFORMATION CONTACT: Nicole Gleicher-Bye, 703-692-2754.

SUPPLEMENTARY INFORMATION:

Background Information

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 
Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461, note), as amended by 
the Debt Collection Improvement Act of 1996, Public Law 104-134, April 
26, 1996, and further amended by the Federal

[[Page 3694]]

Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 
2015 Act), Public Law 114-74, November 2, 2015, required agencies to 
annually adjust the level of CMPs for inflation to improve their 
effectiveness and maintain their deterrent effect. The 2015 Act 
required that not later than July 1, 2016, and not later than January 
15 of every year thereafter, the head of each agency must adjust each 
CMP within its jurisdiction by the inflation adjustment described in 
the 2015 Act. The inflation adjustment is determined by increasing the 
maximum CMP or the range of minimum and maximum CMPs, as applicable, 
for each CMP by the cost-of-living adjustment, rounded to the nearest 
multiple of $1. The cost-of-living adjustment is the percentage (if 
any) for each CMP by which the Consumer Price Index (CPI) for the month 
of October preceding the date of the adjustment, exceeds the CPI for 
the month of October in the previous calendar year.
    The initial catch up adjustments for inflation to the DoD's CMPs 
were published as an interim final rule in the Federal Register on May 
26, 2016 (81 FR 33389-33391), and became effective on that date. The 
interim final rule was published as a final rule without change on 
September 12, 2016 (81 FR 62629-62631), effective that date. The 
revised methodology for agencies for 2017 and each year thereafter 
provides for the improvement of the effectiveness of CMPs and to 
maintain their deterrent effect. The Department of Defense is adjusting 
the level of all civil monetary penalties under its jurisdiction by the 
Office of Management and Budget (OMB) directed cost-of-living 
adjustment multiplier for 2025 of 1.02598 prescribed in OMB Memorandum 
M-25-02, ``Implementation of Penalty Inflation Adjustments for 2025, 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015,'' dated December 19, 2024. The DoD's 2025 
adjustments for inflation to CMPs apply only to those CMPs, including 
those whose associated violation predated such adjustment, which are 
assessed by the DoD after the effective date of the new CMP level.

Statement of Authority and Costs and Benefits

    Pursuant to 5 U.S.C. 553(b)B, there is good cause to issue this 
rule without prior public notice or opportunity for public comment 
because it would be impracticable and unnecessary. The Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 
2461) requires agencies, effective 2017, to make annual adjustments for 
inflation to CMPs notwithstanding 5 U.S.C. 553. Additionally, the 
methodology used, effective 2017, for adjusting CMPs for inflation is 
established in statute, with no discretion provided to agencies 
regarding the substance of the adjustments for inflation to CMPs. The 
DoD is charged only with performing ministerial computations to 
determine the dollar amount of adjustments for inflation to CMPs. 
Accordingly, prior public notice and an opportunity to comment are not 
required for this rule. For the same reasons, there is good cause under 
5 U.S.C. 553(d)(3) to waive the 30-day delay in effective date.
    Further, there are no significant costs associated with the 
regulatory revisions that would impose any mandates on the DoD, 
Federal, State or local governments, or the private sector. 
Accordingly, prior public notice and an opportunity for public comment 
are not required for this rule. The benefit of this rule is the DoD 
anticipates that civil monetary penalty collections may increase in the 
future due to new penalty authorities and other changes in this rule. 
However, it is difficult to accurately predict the extent of any 
increase, if any, due to a variety of factors, such as budget and staff 
resources, the number and quality of civil penalty referrals or leads, 
and the length of time needed to investigate and resolve a case.

Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review,'' as Amended 
by Executive Order 14094, ``Modernizing Regulatory Review'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Orders 12866 (as amended by Executive Order 14094) and 
13563 direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health, and safety effects; 
distribution of 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. This rule 
has been designated not significant, under section 3(f) of Executive 
Order 12866, as amended by E.O. 14094.

Congressional Review Act, 5 U.S.C. 804(2)

    The Congressional Review Act, 5 U.S.C. 801 et seq., generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. A major rule may take effect no earlier than 60 calendar 
days after Congress receives the rule report or the rule is published 
in the Federal Register, whichever is later. This rule is not a major 
rule, as defined by 5 U.S.C. 804(2).

Unfunded Mandates Reform Act (2 U.S.C. Chapter 25)

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 
U.S.C. 1532) requires agencies to assess anticipated costs and benefits 
before issuing any rule the mandates of which require spending in any 
year of $100 million in 1995 dollars, updated annually for inflation. 
This rule will not mandate any requirements for State, local, or tribal 
governments, nor will it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)

    The Under Secretary of Defense (Comptroller) certified that this 
rule is not subject to the Regulatory Flexibility Act (5 U.S.C. 601) 
because it would not, if promulgated, have a significant economic 
impact on a substantial number of small entities. Therefore, the 
Regulatory Flexibility Act, as amended, does not require DoD to prepare 
a regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    The Paperwork Reduction Act was enacted to minimize the paperwork 
burden for individuals; small businesses; educational and nonprofit 
institutions; Federal contractors; State, local and Tribal governments; 
and other persons resulting from the collection of information by or 
for the Federal Government. The Act requires agencies obtain approval 
from the OMB before using identical questions to collect information 
from ten or more persons. This rule does not impose reporting or 
recordkeeping requirements on the public.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a rule that imposes substantial 
direct requirement costs on State and local governments, preempts State 
law, or

[[Page 3695]]

otherwise has federalism implications. This final rule will not have a 
substantial effect on State and local governments.

Executive Order 13175, ``Consultation and Coordination With Indian 
Tribe Governments''

    It has been determined that this rule will not have a substantial 
effect on Indian Tribal governments. This rule does not impose 
substantial direct compliance costs on one or more Indian Tribes, 
preempt tribal law, or effect the distribution of power and 
responsibilities between the Federal Government and Indian Tribes.

List of Subjects in 32 CFR Part 269

    Administrative practice and procedure, Penalties.

    Accordingly, 32 CFR part 269 is amended as follows:

PART 269--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

0
1. The authority citation for 32 CFR part 269 continues to read as 
follows:

    Authority:  28 U.S.C. 2461 note.

0
2. In Sec.  269.4, revise paragraph (d) to read as follows:

Sec.  269.4  Cost of living adjustments of civil monetary penalties.

* * * * *
    (d) Inflation adjustment. Maximum civil monetary penalties within 
the jurisdiction of the Department are adjusted for inflation as 
follows:

                                            Table 1 to Paragraph (d)
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                                                                            Maximum penalty      New adjusted
        United States Code           Civil monetary penalty description   amount as of 01/12/   maximum penalty
                                                                                  24                amount
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National Defense Authorization Act  Unauthorized Activities Directed at              161,168             165,355
 for FY 2005, 10 U.S.C. 113, note.   or Possession of Sunken Military
                                     Craft.
10 U.S.C. 1094(c)(1)..............  Unlawful Provision of Health Care...              14,152              14,519
10 U.S.C. 1102(k).................  Wrongful Disclosure--Medical
                                     Records:
                                       First Offense....................               8,368               8,586
                                       Subsequent Offense...............              55,788              57,237
10 U.S.C. 2674(c)(2)..............  Violation of the Pentagon                          2,306               2,366
                                     Reservation Operation and Parking
                                     of Motor Vehicles Rules and
                                     Regulations.
31 U.S.C. 3802(a)(1)..............  Violation Involving False Claim.....              13,946              14,308
31 U.S.C. 3802(a)(2)..............  Violation Involving False Statement.              13,946              14,308
42 U.S.C. 1320a-7a(a); 32 CFR       False claims........................              24,946              25,594
 200.210(a)(1).
42 U.S.C. 1320a-7a(a); 32 CFR       Claims submitted with a false                     24,946              25,594
 200.210(a)(1).                      certification of physician license.
42 U.S.C. 1320a-7a(a); 32 CFR       Claims presented by excluded party..              24,946              25,594
 200.210(a)(2).
42 U.S.C. 1320a-7a(a); 32 CFR       Employing or contracting with an                  24,946              25,594
 200.210(a)(2); (b)(2) (ii).         excluded individual.
42 U.S.C. 1320a-7a(a); 32 CFR       Patterns of claims for medically                  24,946              25,594
 200.210(a)(1).                      unnecessary services/supplies.
42 U.S.C. 1320a-7a(a); 32 CFR       Ordering or prescribing while                     24,946              25,594
 200.210(a)(2).                      excluded.
42 U.S.C. 1320a-7a(a); 32 CFR       Known retention of an overpayment...              24,946              25,594
 200.210(a)(5).
42 U.S.C. 1320a-7a(a); 32 CFR       Making or using a false record or                124,731             127,972
 200.210(a)(4).                      statement that is material to a
                                     false or fraudulent claim.
42 U.S.C. 1320a-7a(a); 32 CFR       Failure to grant timely access to                 37,420              38,392
 200.210(a)(6).                      OIG for audits, investigations,
                                     evaluations, or other statutory
                                     functions of OIG.
42 U.S.C. 1320a-7a(a); 32 CFR       Making false statements, omissions,              124,731             127,972
 200.210(a)(3).                      misrepresentations in an enrollment
                                     application.
42 U.S.C. 1320a-7a(a); 32 CFR       Unlawfully offering, paying,                     124,731             127,972
 200.310(a).                         soliciting, or receiving
                                     remuneration to induce or in return
                                     for the referral of business in
                                     violation of 1128B(b) of the Social
                                     Security Act.
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    Dated: January 8, 2025.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2025-00715 Filed 1-14-25; 8:45 am]
BILLING CODE 6001-FR-P
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