Source: https://www.federalregister.gov/documents/2016/06/30/2016-15528/civil-monetary-penalties-inflation-adjustment
Timestamp: 2017-03-26 00:09:38
Document Index: 297887710

Matched Legal Cases: ['ART 22', '§\u2009701', '§\u20093729', '§\u2009216', '§\u200985', '§\u200985', '§\u200985', '§\u200985', 'arts 20', 'art2', '§\u200920', '§\u200920', 'art3', 'art 22', 'art4', '§\u200922', '§\u200922', 'art5', 'art 36', 'art6', '§\u200936', 'art7', 'art 68', 'art\n5', 'art8', '§\u200968', '§\u200968', 'art9', 'art 71', 'art10', '§\u200971', '§\u200971', 'art11', 'art 76', 'art\n5', 'art12', '§\u200976', '§\u200976', 'art13', 'art 85', 'art14', '§\u200985', '§\u200985', '§\u200985', 'art15', '§\u200985', 'art16', '§\u200985', '§\u200985', 'art17', '§\u200985', '§\u200985', '§\u2009701', '§\u20093729', '§\u2009216']

:: Civil Monetary Penalties Inflation Adjustment
A Rule by the Justice Department on 06/30/2016
DOJ-OAG-2016-0015
A. Prior Statutory Provisions for Inflation Adjustments
B. Past Inflation Adjustment Rules
C. Revised Statutory Process for Implementing Annual Inflation Adjustments
Adjustments Made in This Rule for Civil Monetary Penalties
Effective Date of Adjusted Civil Penalty Amounts
PART 22—CONFIDENTIALITY OF IDENTIFIABLE RESEARCH AND STATISTICAL INFORMATION
https://www.federalregister.gov/d/2016-15528
Public comments: Written comments must be postmarked and electronic comments must be submitted on or before August 29, 2016. Commenters should be aware that the electronic Federal Docket Management System (FDMS) will accept comments submitted prior to Midnight Eastern Time on the last day of the comment period.
To ensure proper handling of comments, please reference “Docket No. OAG 148” on all electronic and written correspondence. The Department encourages all comments be submitted electronically through http://www.regulations.gov using the electronic comment form provided on that site. An electronic copy of this document is also available at http://
www.regulations.gov for easy reference. Paper comments that duplicate the electronic submission are not necessary as all comments submitted to http://www.regulations.gov will be posted for public review and are part of the official docket record. Should you, however, wish to submit written comments via regular or express mail, they should be sent to Robert Hinchman, Senior Counsel, Office of Legal Policy, U.S. Department of Justice, Room 4252 RFK Building, 950 Pennsylvania Avenue NW., Washington, DC 20530.
The Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 28 U.S.C. 2461 note (2014) (“Inflation Adjustment Act”), provided for the regular evaluation and adjustment for inflation of civil monetary penalties to, among other things, ensure that they continue to maintain their deterrent effect and that penalty amounts due the Federal Government are properly accounted for and collected. Section 31001(s)(1) of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, Public Law 104-134, also known as the Debt Collection Improvement Act of 1996 (“Improvement Act”), amended section 4 of the Inflation Adjustment Act to require the head of each agency to adjust periodically each civil monetary penalty provided by law within the jurisdiction of the Federal agency by regulation and to publish each such regulation in the Federal Register. Subsection (s)(1) also added a new section to the Inflation Adjustment Act providing that any increase in a civil monetary penalty made under the Act shall apply only to violations that occur after the date the increase takes effect. Subsection (s)(2) of the Improvement Act provided that the first adjustment of a civil monetary penalty made pursuant to the amendment in subsection (s)(1) may not exceed 10 percent of such penalty.
The amounts of the adjustments were determined according to a formula set forth in the Inflation Adjustment Act, which used applicable “rounders” (or increments) for calculations based on the amount of the current penalty along with the statutorily defined cost-of-living adjustment. See 28 CFR 85.2 (2015); Public Law 101-410, sec. 5. For example, the applicable “rounder” for a current $15,000 civil penalty amount was $5,000, which meant that there would be no inflation adjustment if the raw inflation adjustment calculation showed an increase of less than $2,500, but the civil penalty amount would be increased by the full $5,000 increment if the raw inflation adjustment was above the rounding threshold. See id.
In compliance with the prior statutory requirements, the Department of Justice published a rule on February 12, 1999 (64 FR 7066-03) adjusting the immigration-related civil monetary penalties assessed or enforced by the Executive Office for Immigration Review's (EOIR) Office of the Chief Administrative Hearing Officer (OCAHO). On August 30, 1999 (64 FR 47099), the Department published a rule adjusting the other civil monetary penalties assessed or enforced by it.
On February 26, 2008 (73 FR 10130-01), the Department of Homeland Security (DHS) and the Department of Justice published a rule adjusting for inflation the immigration-related civil monetary penalties assessed or enforced by those two Departments under sections 274A, 274B, and 274C of the Immigration and Nationality Act (INA).[1] On March 28, 2014 (79 FR 17434-01), the Department published a rule adjusting for inflation the civil monetary penalties assessed or enforced by the Civil Rights Division.
Section 701 of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015), titled the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“2015 Amendments”), 28 U.S.C. 2461 note, substantially revised the prior provisions of the Inflation Adjustment Act and substituted a different statutory formula for calculating inflation adjustments on an annual basis.
The 2015 Amendments set forth a different method of calculation for the initial adjustment following the 2015 Amendments than for subsequent adjustments. For the initial adjustment, the “cost-of-living adjustment,” which sets the amount by which the maximum civil monetary penalty or the range of minimum and maximum civil monetary penalties, as applicable, would be increased, is defined as “the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for the month of October, 2015 exceeds the Consumer Price Index for the month of October of the calendar year during which the amount of such civil monetary penalty was established or adjusted under a provision of law other than this Act.” Public Law 114-74, sec. 701(b)(2)(B) (amending section 5(b) of the Inflation Adjustment Act). This adjustment is to be applied to “the amount of the civil monetary penalty as it was most recently established or adjusted under a provision of law other than this Act,” and “shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment of” the 2015 Amendments. Id. For adjustments other than the initial adjustment, the “cost-of-living adjustment” is defined as “the percentage (if any) for each civil monetary penalty by which—(A) the Start Printed Page 42493Consumer Price Index for the month of October preceding the date of the adjustment, exceeds (B) the Consumer Price Index 1 year before the month of October referred to in subparagraph (A).” Id.
In short, the 2015 Amendments tie the inflation adjustments for the initial adjustment to an index reflecting the cost of living increases between 2015 and the year in which each civil penalty was established or adjusted by a provision of law other than the Inflation Adjustment Act. For subsequent adjustments, however, the adjustment will be determined by the difference in the Consumer Price Index between the October preceding the new adjustment and the October the year before. In addition, instead of using the larger “rounders” under the old formula, the resulting new civil penalty amounts adjusted under the 2015 Amendments are rounded to the nearest $1.
The 2015 Amendments removed the 10 percent cap on the first-time inflation adjustment for each penalty, and, as noted above, provided that the initial adjustment following the 2015 Amendments “shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment of” the 2015 Amendments. See Public Law 114-74, sec. 701(c) (repealing section 31001(s)(2) of the Improvement Act); id. sec. 701(b)(2)(B) (amending section 5(b) of the Inflation Adjustment Act). Effectively, this means that the adjusted civil penalty under this rule—which sets forth the initial inflation adjustment following the 2015 Amendments—cannot be more than 2.5 times the amount of the current penalty, including prior inflation adjustments under the Inflation Adjustment Act. As shown in Table A of this preamble indicating the calculation of inflation adjustments, this statutory cap affects only six of the civil penalties being adjusted under this rule, because of prior inflation adjustments implemented since 1999. Although the statute authorizes the Department, with the concurrence of the Director of the Office of Management and Budget, to make a determination in certain circumstances to increase a civil penalty by less than the otherwise required amount, the Department is not invoking that authority in this rule. See Public Law 114-74, sec. 701(b)(1)(D) (adding section 4(c) to Inflation Adjustment Act).
In accordance with the 2015 Amendments, the adjustments made by this rule are based on the Bureau of Labor Statistics' Consumer Price Index for October 2015. The inflation factors used in Table A were provided to all federal agencies in the OMB Memorandum for the Heads of Executive Departments and Agencies M-16-06 (Feb. 24, 2016). https://www.whitehouse.gov/​sites/​default/​files/​omb/​memoranda/​2016/​m-16-06.pdf (last visited June 3, 2016).
Table A provides the calculations upon which the current inflation adjustments are being made. As summarized above, the key factors for these calculations are (1) the year in which each civil penalty amount was established or adjusted under a provision of law other than the Inflation Adjustment Act; (2) the amount of each civil penalty as so established or adjusted; (3) the inflationary adjustment factor (as determined according to the chart prepared by OMB) for the year of the most recent establishment or adjustment of the amount of the penalty; and (4) the resulting amount of the new adjusted civil penalty. For example, for a civil penalty that was most recently established by law at the amount of $1,000 in the year 1996, applying the inflationary adjustment factor of 1.50245 for that year, the adjusted penalty as determined under this rule is $1,502, as rounded to the nearest $1. The only departures from this straightforward calculation are for those civil penalties whose amount was set decades ago and not previously adjusted; in those few cases, the civil penalty amount is capped at 2.5 times the civil penalty amount currently in effect, as noted by the footnotes in Table A.Start Printed Page 42494
Table AU.S.C. CitationName/DescriptionCFR CitationYear enactedLast year adjusted (Non IAA)Penalty (Non IAA) ($)MultiplierDOJ Penalty as of 11/2/15 ($) 1New DOJ penalty 2ATF18 U.S.C. 922(t)(5)Brady Law—Nat'l Instant Criminal Check System; Transfer of firearm without checking NICS199319935,0001.632385,0008,16218 U.S.C. 924(p)Child Safety Lock Act; Secure gun storage or safety device, violation200520052,5001.193972,5002,985Civil Division12 U.S.C. 1833a(b)(1)Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Violation28 CFR 85.3(a)(6)198919891,000,0001.893611,100,0001,893,61012 U.S.C. 1833a(b)(2)FIRREA Violation (continuing) (per day)28 CFR 85.3(a)(7)198919891,000,0001.893611,100,0001,893,61012 U.S.C. 1833a(b)(2)FIRREA Violation (continuing)28 CFR 85.3(a)(7)198919895,000,0001.893615,500,0009,468,05022 U.S.C. 2399b(a)(3)(A)Foreign Assistance Act; Fraudulent Claim for Assistance (per act)28 CFR 85.3(a)(8)196819682,0006.737622,2005,500 **31 U.S.C. 3729(a)False Claims Act; 3 Violations28 CFR 85.3(a)(9)19861986Min. 5,000 Max. 10,0002.15628Min, 5,500 Max. 11,000Min. 10,781 Max. 21,56331 U.S.C. 3802(a)(1)Program Fraud Civil Remedies Act; Violations Involving False Claim (per claim)28 CFR 71.3(a)198619865,0002.156285,50010,78131 U.S.C. 3802(a)(2)Program Fraud Civil Remedies Act; Violation Involving False Statement (per statement)28 CFR 71.3(f)198619865,0002.156285,50010,78140 U.S.C. 123(a)(1)(A)Federal Property and Administrative Services Act; Violation Involving Surplus Government Property (per act)28 CFR 85.3(a)(12)194919492,00010.035362,2005,500 **41 U.S.C. 8706(a)(1)(B)Anti-Kickback Act; Violation Involving Kickbacks 4 (per occurrence)28 CFR 85.3(a)(13)1986198610,0002.1562811,00021,56318 U.S.C. 2723(b)Driver's Privacy Protection Act of 1994; Prohibition on Release and Use of Certain Personal Information from State Motor Vehicle Records—Substantial Non-compliance (per day)199419945,0001.590895,0007,95418 U.S.C. 216(b)Ethics Reform Act of 1989; Penalties for Conflict of Interest Crimes 5 (per violation)28 CFR 85.3(c)1989198950,0001.8936155,00094,68141 U.S.C. 2105(b)(1)Office of Federal Procurement Policy Act; 6 Violation by an individual (per violation)1988198850,0001.9786950,00098,93541 U.S.C. 2105(b)(2)Office of Federal Procurement Policy Act; 6 Violation by an organization (per violation)19881988500,0001.97869500,000989,34542 U.S.C. 5157(d)Disaster Relief Act of 1974; 7 Violation (per violation)197419745,0004.654365,00012,500 **Start Printed Page 42495Civil Rights Division (excluding immigration-related penalties)18 U.S.C. 248(c)(2)(B)(i)Freedom of Access to Clinic Entrances Act of 1994 (“FACE Act”); Nonviolent physical obstruction, first violation28 CFR 85.3(b)(1)(i)1994199410,0001.5908916,00015,90918 U.S.C. 248(c)(2)(B)(ii)FACE Act; Nonviolent physical obstruction, subsequent violation28 CFR 85.3(b)(1)(ii)1994199415,0001.5908916,50023,86318 U.S.C. 248(c)(2)(B)(i)FACE Act; Violation other than a nonviolent physical obstruction, first violation28 CFR 85.3(b)(2)(i)1994199415,0001.5908916,50023,86318 U.S.C. 248(c)(2)(B)(ii)FACE Act; Violation other than a nonviolent physical obstruction, subsequent violation28 CFR 85.3(b)(2)(ii)1994199425,0001.5908937,50039,77242 U.S.C. 3614(d)(1)(C)(i)Fair Housing Act of 1968; first violation28 CFR 85.3(b)(3)(i)1988198850,0001.9786975,00098,93542 U.S.C. 3614(d)(1)(C)(ii)Fair Housing Act of 1968; subsequent violation28 CFR 85.3(b)(3)(ii)19881988100,0001.97869150,000197,86942 U.S.C. 12188(b)(2)(C)(i)Americans With Disabilities Act; Public accommodations for individuals with disabilities, first violation28 CFR 36.504(a)(3)(i)1990199050,0001.7815675,00089,07842 U.S.C. 12188(b)(2)(C)(ii)Americans With Disabilities Act; Public accommodations for individuals with disabilities, subsequent violation28 CFR 36.504(a)(3)(ii)19901990100,0001.78156150,000178,15650 U.S.C. App. 597(b)(3)Servicemembers Civil Relief Act of 2003; first violation28 CFR 85.3(b)(4)(i)2010201055,0001.0874560,00059,81050 U.S.C. App. 597(b)(3)Servicemembers Civil Relief Act of 2003; subsequent violation28 CFR 85.3(b)(4)(ii)20102010110,0001.08745120,000119,620Criminal Division18 U.S.C. 983(h)(1)Civil Asset Forfeiture Reform Act of 2000; Penalty for Frivolous Assertion of Claim20002000Min. 250 Max. 5,0001.36689Min. 250 Max. 5,000Min. 342 Max. 6,83418 U.S.C. 1956(b)Money Laundering Control Act of 1986; Violation 81986198610,0002.1562810,00021,563DEA21 U.S.C. 844a(a)Anti-Drug Abuse Act of 1988; Possession of small amounts of controlled substances (per violation)28 CFR 76.3(a)1988198810,0001.9786911,00019,78721 U.S.C. 961(1)Controlled Substance Import Export Act; Drug abuse, import or export28 CFR 85.3(d)1970197025,0006.0365027,50068,750 **21 U.S.C. 842(c)(1)(A)Controlled Substances Act (“CSA”); Violations of 842(a)—other than (5), (10) and (16)—Prohibited acts re: controlled substances (per violation)1970197025,0006.0365025,00062,500 **21 U.S.C. 842(c)(1)(B)CSA; Violations of 842(a)(5) and (10)—Prohibited acts re: controlled substances1998199810,0001.4502310,00014,50221 U.S.C. 842(c)(1)(C)CSA; Violation of 825(e) by importer, exporter, manufacturer, or distributor—False labeling of anabolic steroids (per violation)20142014500,0001.00171500,000500,85521 U.S.C. 842(c)(1)(D)CSA; Violation of 825(e) at the retail level—False labeling of anabolic steroids (per violation)201420141,0001.001711,0001,002Start Printed Page 4249621 U.S.C. 842(c)(2)(C)CSA; Violation of 842(a)(11) by a business—Distribution of laboratory supply with reckless disregard.919961996250,0001.50245250,000375,61321 U.S.C. 856(d)Illicit Drug Anti-Proliferation Act of 2003; Maintaining drug-involved premises.1020032003250,0001.28561250,000321,403Immigration-Related Penalties8 U.S.C. 1324a(e)(4)(A)(i)Immigration Reform and Control Act of 1986 (“IRCA”); Unlawful employment of aliens, first order (per unauthorized alien)28 CFR 68.52(c)(1)(i)19861986Min. 250 Max. 2,0002.15628Min. 375 Max. 3,200Min. 539 Max. 4,3138 U.S.C. 1324a(e)(4)(A)(ii)IRCA; Unlawful employment of aliens, second order (per such alien)28 CFR 68.52(c)(1)(ii)19861986Min. 2,000 Max. 5,0002.15628Min. 3,200 Max. 6,500Min. 4,313 Max. 10,7818 U.S.C. 1324a(e)(4)(A)(iii)IRCA; Unlawful employment of aliens, subsequent order (per such alien)28 CFR 68.52(c)(1)(iii)19861986Min. 3,000 Max. 10,0002.15628Min. 4,300 Max. 16,000Min. 6,469 Max. 21,5638 U.S.C. 1324a(e)(5)IRCA; Paperwork violation (per relevant individual)28 CFR 68.52(c)(5)19861986Min. 100 Max. 1,0002.15628Min. 110 Max. 1,100Min. 216 Max. 2,1568 U.S.C. 1324a (note)IRCA; Violation relating to participating employer's failure to notify of final nonconfirmation of employee's employment eligibility (per relevant individual)28 CFR 68.52(c)(6)19961996Min. 500 Max. 1,0001.50245Min. 550 Max. 1,100Min. 751 Max. 1,5028 U.S.C. 1324a(g)(2)IRCA; Violation/prohibition of indemnity bonds (per violation)28 CFR 68.52(c)(7)198619861,0002.156281,1002,1568 U.S.C. 1324b(g)(2)(B)(iv)(I)IRCA; Unfair immigration-related employment practices, first order (per individual discriminated against)28 CFR 68.52(d)(1)(viii)19901990Min. 250 Max. 2,0001.78156Min, 375 Max. 3,200Min. 445 Max. 3,5638 U.S.C. 1324b(g)(2)(B)(iv)(II)IRCA; Unfair immigration-related employment practices, second order (per individual discriminated against)28 CFR 68.52(d)(1)(ix)19901990Min. 2,000 Max. 5,0001.78156Min. 3,200 Max. 6,500Min. 3,563 Max. 8,9088 U.S.C. 1324b(g)(2)(B)(iv)(III)IRCA; Unfair immigration-related employment practices, subsequent order (per individual discriminated against)28 CFR 68.52(d)(1)(x)19901990Min. 3,000 Max. 10,0001.78156Min. 4,300 Max. 16,000Min. 5,345 Max. 17,8168 U.S.C. 1324b(g)(2)(B)(iv)(IV)IRCA; Unfair immigration-related employment practices, document abuse (per individual discriminated against)28 CFR 68.52(d)(1)(xii)19901990Min. 100 Max. 1,0001.78156Min. 110 Max. 1,100Min. 178 Max. 1,7828 U.S.C. 1324c(d)(3)(A)IRCA; Document fraud, first order—for violations described in U.S.C. 1324c(a)(1)-(4) (per document)28 CFR 68.52(e)(1)(i)19901990Min. 250 Max. 2,0001.78156Min. 375 Max. 3,200Min. 445 Max. 3,5638 U.S.C. 1324c(d)(3)(B)IRCA; Document fraud, subsequent order—for violations described in U.S.C. 1324c(a)(1)-(4) (per document)28 CFR 68.52(e)(1)(iii)19901990Min. 2,000 Max. 5,0001.78156Min. 3,200 Max. 6,500Min. 3,563 Max. 8,9088 U.S.C. 1324c(d)(3)(A)IRCA; Document fraud, first order—for violations described in U.S.C. 1324c(a)(5)-(6) (per document)28 CFR 68.52(e)(1)(ii)19961996Min. 250 Max. 2,0001.50245Min. 275 Max. 2,200Min. 376 Max. 3,0058 U.S.C. 1324c(d)(3)(B)IRCA; Document fraud, subsequent order—for violations described in U.S.C. 1324c(a)(5)-(6) (per document)28 CFR 68.52(e)(1)(iv)19961996Min. 2,000 Max. 5,0001.50245Min. 2,200 Max. 5,500Min. 3,005 Max. 7,512Start Printed Page 42497FBI49 U.S.C. 30505(a)National Motor Vehicle Title Identification System; Violation (per violation)199419941,0001.590891,0001,591Office of Justice Programs42 U.S.C. 3789g(d)Confidentiality of information; State and Local Criminal History Record Information Systems—Right to Privacy Violation28 CFR 20.251979197910,0003.1627411,00027,500 **** Adjusted penalty capped at 2.5 times the penalty amount in effect on November 2, 2015, the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, sec. 701 (“2015 Amendments”). See id. § 701(b)(2) (amending section 5(b)(2)(C) of the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) to provide that the amount of the first inflation adjustment after the date of enactment of the 2015 Amendments “shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment of the [2015 Amendments].”).1 The figures set forth in this column represent the penalty as last adjusted by Department of Justice regulation or statute as of November 2, 2015.2 All figures set forth in this table are maximum penalties, unless otherwise indicated.3 Section 3729(a)(1) of Title 31 states that any person who violates this section “is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990, plus 3 times the amount of damages which the Government sustains because of the act of that person.” 31 U.S.C. 3729(a)(1) (2012) (citation omitted). Section 3729(a)(2) permits the court to reduce the damages under certain circumstances to “not less than 2 times the amount of damages which the Government sustains because of the act of that person.” Id. § 3729(a)(2). The adjustment made by this regulation is only applicable to the specific statutory penalty amounts stated in subsection (a)(1), which is only one component of the civil penalty imposed under section 3729(a)(1).4 Section 8706(a)(1) of Title 41 states that “[t]he Federal Government in a civil action may recover from a person—(1) that knowingly engages in conduct prohibited by section 8702 of this title a civil penalty equal to—(A) twice the amount of each kickback involved in the violation; and (B) not more than $10,000 for each occurrence of prohibited conduct . . . .” 41 U.S.C. 8706(a)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (a)(1)(B), which is only one component of the civil penalty imposed under section 8706.5 Section 216(b) of Title 18 states the civil penalty should be no “more than $50,000 for each violation or the amount of compensation which the person received or offered for the prohibited conduct, whichever amount is greater.” 18 U.S.C. 216(b) (2012). Therefore, the adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b), which is only one aspect of the possible civil penalty imposed under § 216(b).6 Section 2105(b) of Title 41 states, “(b) Civil penalties.—The Attorney General may bring a civil action in an appropriate district court of the United States against a person that engages in conduct that violates section 2102, 2103, or 2104 of this title. On proof of that conduct by a preponderance of the evidence—(1) an individual is liable to the Federal Government for a civil penalty of not more than $50,000 for each violation plus twice the amount of compensation that the individual received or offered for the prohibited conduct; and (2) an organization is liable to the Federal Government for a civil penalty of not more than $500,000 for each violation plus twice the amount of compensation that the organization received or offered for the prohibited conduct.” 41 U.S.C. 2105(b) (2012). The adjustments made by this regulation are only applicable to the specific statutory penalty amounts stated in subsections (b)(1) and (b)(2), which are each only one component of the civil penalties imposed under sections 2105(b)(1) and (b)(2).7 The Attorney General has authority to bring a civil action when a person has violated or is about to violate a provision under this statute. 42 U.S.C. 5157(b) (2012)). The Federal Emergency Management Agency has promulgated regulations regarding this statute and has adjusted the penalty in its regulation. 44 CFR 206.14(d) (2015). The Department of Health and Human Services (HHS) has also promulgated a regulation regarding the penalty under this statute. 42 CFR 38.8 (2015).8 Section 1956(b)(1) of Title 18 states that “[w]hoever conducts or attempts to conduct a transaction described in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of—(A) the value of the property, funds, or monetary instruments involved in the transaction; or (B) $10,000.” 18 U.S.C. 1956(b)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b)(1)(B), which is only one aspect of the possible civil penalty imposed under section 1956(b).9 Section 842(c)(2)(C) of Title 21 states that “[i]n addition to the penalties set forth elsewhere in this subchapter or subchapter II of this chapter, any business that violates paragraph (11) of subsection (a) of this section shall, with respect to the first such violation, be subject to a civil penalty of not more than $250,000, but shall not be subject to criminal penalties under this section, and shall, for any succeeding violation, be subject to a civil fine of not more than $250,000 or double the last previously imposed penalty, whichever is greater.” 21 U.S.C. 842(c)(2)(C) (2012). The adjustment made by this regulation regarding the penalty for a succeeding violation is only applicable to the specific statutory penalty amount stated in subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding violation imposed under section 842(c)(2)(C).10 Section 856(d)(1) of Title 21 states that “(1) Any person who violates subsection (a) of this section shall be subject to a civil penalty of not more than the greater of—(A) $250,000; or (B) 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to the person.” 21 U.S.C. 856(d)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (d)(1)(A), which is only one aspect of the possible civil penalty imposed under section 856(d)(1).
Currently, 28 CFR 85.3 provides for inflation adjustments of a number of civil penalties enforced by the Department, pursuant to the former inflation adjustment statutory provisions. This rule revises § 85.3 to provide that the inflation adjustments set forth in that section will continue to apply to violations occurring on or before November 2, 2015, the date of enactment of the 2015 Amendments, as well as to assessments made before August 1, 2016, whose associated violations occurred after November 2, 2015. Other existing Department regulations provide for inflation adjustments of other civil penalties under prior law, such as the civil penalties under certain provisions of the immigration laws in 28 CFR 68.52. Those other existing regulations are also being revised to provide that the existing regulatory inflation adjustments will continue to apply to violations occurring on or before November 2, 2015, as well as to assessments made before August 1, 2016, whose associated violations occurred after November 2, 2015.
A new regulatory provision, § 85.5, includes a comprehensive table setting forth the penalty amounts for civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015. The table in § 85.5 is the same as Table A in this preamble, except that it only includes the first three descriptive columns for each civil penalty provision, and the last two columns setting forth the penalty amounts in effect on November 2, 2015 (the date of enactment of the 2015 Amendments) and the new adjusted civil penalty amounts taking effect for civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015. (The other columns in Table A, which show how the adjusted civil penalty amounts are calculated, are provided for informational purposes in this preamble, but are not being codified in the Code of Federal Regulations.) Those instances where the civil penalty amount for the initial adjustment is capped at 2.5 times the civil penalty amount currently in effect, as provided in the 2015 Amendments, are noted by footnote in the table in § 85.5.[2] This rule adjusts for inflation civil monetary penalties within the jurisdiction of the Justice Department for purposes of the Inflation Adjustment Act, as amended. Other agencies are responsible for the inflation adjustments of certain other civil monetary penalties that the Department's litigating components bring suit to collect. The reader should consult the regulations of those other agencies for inflation adjustments to those penalties.
In this rule, the adjusted civil penalty amounts are applicable only to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, the date of enactment of the 2015 Amendments. Therefore, violations occurring on or before November 2, 2015, and assessments made prior to August 1, 2016, whose associated violations occurred after November 2, 2015, will continue to be subject to the civil monetary penalty amounts set forth in the Department's existing regulations in 28 CFR parts 20, 22, 36, 68, 71, 76 and 85 (or as set forth by statute if the amount has not yet been adjusted by regulation).
The Attorney General is publishing this rule as an interim final rule, without prior notice and comment, as authorized by the 2015 Amendments. The Department is providing a 60-day period for public comment after publication of this rule and welcomes public comment on the changes made to reflect the revised process for calculating inflation adjustments under the Inflation Adjustment Act, as amended by the 2015 Amendments.
Only those entities that are determined to have violated Federal law and regulations would be affected by the increase in the civil penalty amounts made by this rule. A Regulatory Flexibility Act analysis is not required for this rule because publication of a notice of proposed rulemaking is not required. See 5 U.S.C. 603(a).
This regulation has been drafted and reviewed in accordance with Executive Order 12866, “Regulatory Planning and Review” section 1(b), The Principles of Regulation, and in accordance with Executive Order 13563, “Improving Regulation and Regulatory Review” section 1, General Principles of Regulation.
The Department of Justice has determined that this rule is not a “significant regulatory action” under Executive Order 12866, Regulatory Planning and Review, section 3(f), and accordingly this rule has not been reviewed by the Office of Management and Budget.
Both Executive Orders 12866 and 13563 direct agencies, in certain circumstances, 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, distributive impacts, and equity). As stated above, the statute authorizes the Department, with the concurrence of the Director of the Office of Management and Budget, to make a determination in certain circumstances to increase a civil penalty by less than the otherwise required amount. However, the Department is not invoking that authority in this rule. The adjustments to existing civil monetary penalties set forth in this rule are calculated pursuant to the statutory formula.
This rule will not 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, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions Start Printed Page 42499of the Unfunded Mandates Reform Act of 1995.
Start Amendment Part2. In § 20.25, add after the first sentence a new sentence to read as follows: End Amendment Part
§ 20.25 Penalties.
* * * For civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, see the civil penalty amount as provided in 28 CFR 85.5. * * * Start Part
Start Amendment Part3. The authority citation for part 22 continues to read as follows: End Amendment Part
Start Amendment Part4. In § 22.29 add a new sentence at the end to read as follows: End Amendment Part
§ 22.29 Sanctions.
* * * For civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, see the civil penalty amount as provided in 28 CFR 85.5. Start Part
Start Amendment Part5. The authority citation for part 36 continues to read as follows: End Amendment Part
Start Amendment Part6. In § 36.504, revise paragraphs (a)(3)(i) and (a)(3)(ii), to read as follows: End Amendment Part
Start Amendment Part7. The authority citation for part 68 continues to read as follows: End Amendment Part
5 U.S.C. 301, 554; 8 U.S.C. 1103, 1324a, 1324b, and 1324c.
Start Amendment Part8. In § 68.52, revise paragraphs (c)(8), (d)(2), and (e)(3), to read as follows: End Amendment Part
§ 68.52 Final order of the Administrative Law Judge.
(2) Civil penalties assessed after August 1, 2016. For civil penalties assessed after August 1, 2016, whose associated violations described in paragraph (d) of this section occurred Start Printed Page 42500after November 2, 2015, the applicable civil penalty amounts are set forth in 28 CFR 85.5.
Start Amendment Part9. The authority citation for part 71 continues to read as follows: End Amendment Part
Start Amendment Part10. In § 71.3, paragraph (a) introductory text and paragraph (f) introductory text are revised, to read as follows: End Amendment Part
§ 71.3 Basis for civil penalties and assessments.
Start Amendment Part11. The authority citation for part 76 continues to read as follows: End Amendment Part
5 U.S.C. 301; 21 U.S.C. 844a, 875, 876; 28 U.S.C. 509, 510; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321.
Start Amendment Part12. In § 76.3 add a new sentence at the end of paragraph (a) to read as follows: End Amendment Part
§ 76.3 Basis for civil penalty.
(a) * * * For civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, see the civil penalty amount as provided in 28 CFR 85.5.
Start Amendment Part13. The authority citation for part 85 is revised to read as follows: End Amendment Part
Start Amendment Part14. Revise § 85.1 to read as follows: End Amendment Part
§ 85.1 In general.
§ 85.2 [Removed and reserved]
Start Amendment Part15. Remove and reserve § 85.2. End Amendment Part
Start Amendment Part16. In § 85.3, revise the heading and the introductory text to read as follows: End Amendment Part
§ 85.3 Adjustments to penalties for violations occurring on or before November 2, 2015.
Start Amendment Part17. Add § 85.5 to read as follows: End Amendment Part
§ 85.5 Adjustments to penalties for violations occurring after November 2, 2015.
For civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are adjusted as set forth in the following table.
U.S.C. CitationName/DescriptionCFR CitationDOJ Penalty as of 11/2/15 ($) 1New DOJ penalty 2ATF18 U.S.C. 922(t)(5)Brady Law—Nat'l Instant Criminal Check System; Transfer of firearm without checking NICS5,0008,162Start Printed Page 4250118 U.S.C. 924(p)Child Safety Lock Act; Secure gun storage or safety device, violation2,5002,985Civil Division12 U.S.C. 1833a(b)(1)Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) Violation28 CFR 85.3(a)(6)1,100,0001,893,61012 U.S.C. 1833a(b)(2)FIRREA Violation (continuing) (per day)28 CFR 85.3(a)(7)1,100,0001,893,61012 U.S.C. 1833a(b)(2)FIRREA Violation (continuing)28 CFR 85.3(a)(7)5,500,0009,468,05022 U.S.C. 2399b(a)(3)(A)Foreign Assistance Act; Fraudulent Claim for Assistance (per act)28 CFR 85.3(a)(8)2,2005,500 **31 U.S.C. 3729(a)False Claims Act; 3 Violations28 CFR 85.3(a)(9)Min, 5,500Min. 10,781 Max. 11,000Max. 21,56331 U.S.C. 3802(a)(1)Program Fraud Civil Remedies Act; Violations Involving False Claim (per claim)28 CFR 71.3(a)5,50010,78131 U.S.C. 3802(a)(2)Program Fraud Civil Remedies Act; Violation Involving False Statement (per statement)28 CFR 71.3(f)5,50010,78140 U.S.C. 123(a)(1)(A)Federal Property and Administrative Services Act; Violation Involving Surplus Government Property (per act)28 CFR 85.3(a)(12)2,2005,500 **41 U.S.C. 8706(a)(1)(B)Anti-Kickback Act; Violation Involving Kickbacks 4 (per occurrence)28 CFR 85.3(a)(13)11,00021,56318 U.S.C. 2723(b)Driver's Privacy Protection Act of 1994; Prohibition on Release and Use of Certain Personal Information from State Motor Vehicle Records—Substantial Non-compliance (per day)5,0007,95418 U.S.C. 216(b)Ethics Reform Act of 1989; Penalties for Conflict of Interest Crimes 5 (per violation)28 CFR 85.3(c)55,00094,68141 U.S.C. 2105(b)(1)Office of Federal Procurement Policy Act; 6 Violation by an individual (per violation)50,00098,93541 U.S.C. 2105(b)(2)Office of Federal Procurement Policy Act; 6 Violation by an organization (per violation)500,000989,34542 U.S.C. 5157(d)Disaster Relief Act of 1974;7 Violation (per violation)5,00012,500 **Civil Rights Division (excluding immigration-related penalties)18 U.S.C. 248(c)(2)(B)(i)Freedom of Access to Clinic Entrances Act of 1994 (“FACE Act”); Nonviolent physical obstruction, first violation28 CFR 85.3(b)(1)(i)16,00015,90918 U.S.C. 248(c)(2)(B)(ii)FACE Act; Nonviolent physical obstruction, subsequent violation28 CFR 85.3(b)(1)(ii)16,50023,86318 U.S.C. 248(c)(2)(B)(i)FACE Act; Violation other than a nonviolent physical obstruction, first violation28 CFR 85.3(b)(2)(i)16,50023,86318 U.S.C. 248(c)(2)(B)(ii)FACE Act; Violation other than a nonviolent physical obstruction, subsequent violation28 CFR 85.3(b)(2)(ii)37,50039,77242 U.S.C. 3614(d)(1)(C)(i)Fair Housing Act of 1968; first violation28 CFR 85.3(b)(3)(i)75,00098,93542 U.S.C. 3614(d)(1)(C)(ii)Fair Housing Act of 1968; subsequent violation28 CFR 85.3(b)(3)(ii)150,000197,86942 U.S.C. 12188(b)(2)(C)(i)Americans With Disabilities Act; Public accommodations for individuals with disabilities, first violation28 CFR 36.504(a)(3)(i)75,00089,07842 U.S.C. 12188(b)(2)(C)(ii)Americans With Disabilities Act; Public accommodations for individuals with disabilities, subsequent violation28 CFR 36.504(a)(3)(ii)150,000178,15650 U.S.C. App. 597(b)(3)Servicemembers Civil Relief Act of 2003; first violation28 CFR 85.3(b)(4)(i)60,00059,81050 U.S.C. App. 597(b)(3)Servicemembers Civil Relief Act of 2003; subsequent violation28 CFR 85.3(b)(4)(ii)120,000119,620Criminal Division18 U.S.C. 983(h)(1)Civil Asset Forfeiture Reform Act of 2000; Penalty for Frivolous Assertion of ClaimMin. 250Min. 342 Max. 5,000Max. 6,83418 U.S.C. 1956(b)Money Laundering Control Act of 1986; Violation 810,00021,563DEA21 U.S.C. 844a(a)Anti-Drug Abuse Act of 1988; Possession of small amounts of controlled substances (per violation)28 CFR 76.3(a)11,00019,78721 U.S.C. 961(1)Controlled Substance Import Export Act; Drug abuse, import or export28 CFR 85.3(d)27,50068,750 **Start Printed Page 4250221 U.S.C. 842(c)(1)(A)Controlled Substances Act (“CSA”); Violations of 842(a)—other than (5), (10) and (16)—Prohibited acts re: controlled substances (per violation)25,00062,500 **21 U.S.C. 842(c)(1)(B)CSA; Violations of 842(a)(5) and (10)—Prohibited acts re: controlled substances10,00014,50221 U.S.C. 842(c)(1)(C)CSA; Violation of 825(e) by importer, exporter, manufacturer, or distributor—False labeling of anabolic steroids (per violation)500,000500,85521 U.S.C. 842(c)(1)(D)CSA; Violation of 825(e) at the retail level—False labeling of anabolic steroids (per violation)1,0001,00221 U.S.C. 842(c)(2)(C)CSA; Violation of 842(a)(11) by a business—Distribution of laboratory supply with reckless disregard 9250,000375,61321 U.S.C. 856(d)Illicit Drug Anti-Proliferation Act of 2003; Maintaining drug-involved premises 10250,000321,403Immigration-Related Penalties8 U.S.C. 1324a(e)(4)(A)(i)Immigration Reform and Control Act of 1986 (“IRCA”); Unlawful employment of aliens, first order (per unauthorized alien)28 CFR 68.52(c)(1)(i)Min. 375Min. 539 Max 3,200Max. 4,3138 U.S.C. 1324a(e)(4)(A)(ii)IRCA; Unlawful employment of aliens, second order (per such alien)28 CFR 68.52(c)(1)(ii)Min. 3,200Min. 4,313 Max. 6,500Max. 10,7818 U.S.C. 1324a(e)(4)(A)(iii)IRCA; Unlawful employment of aliens, subsequent order (per such alien)28 CFR 68.52(c)(1)(iii)Min. 4,300Min. 6,469 Max. 16,000Max. 21,5638 U.S.C. 1324a(e)(5)IRCA; Paperwork violation (per relevant individual)28 CFR 68.52(c)(5)Min. 110Min. 216 Max. 1,100Max. 2,1568 U.S.C. 1324a (note)IRCA; Violation relating to participating employer's failure to notify of final nonconfirmation of employee's employment eligibility (per relevant individual)28 CFR 68.52(c)(6)Min. 550Min. 751 Max. 1,100Max. 1,5028 U.S.C. 1324a(g)(2)IRCA; Violation/prohibition of indemnity bonds (per violation)28 CFR 68.52(c)(7)1,1002,1568 U.S.C. 1324b(g)(2)(B)(iv)(I)IRCA; Unfair immigration-related employment practices, first order (per individual discriminated against)28 CFR 68.52(d)(1)(viii)Min, 375Min. 445 Max. 3,200Max. 3,5638 U.S.C. 1324b(g)(2)(B)(iv)(II)IRCA; Unfair immigration-related employment practices, second order (per individual discriminated against)28 CFR 68.52(d)(1)(ix)Min. 3,200Min. 3,563 Max. 6,500Max. 8,9088 U.S.C. 1324b(g)(2)(B)(iv)(III)IRCA; Unfair immigration-related employment practices, subsequent order (per individual discriminated against)28 CFR 68.52(d)(1)(x)Min. 4,300Min. 5,345 Max. 16,000Max. 17,8168 U.S.C. 1324b(g)(2)(B)(iv)(IV)IRCA; Unfair immigration-related employment practices, document abuse (per individual discriminated against)28 CFR 68.52(d)(1)(xii)Min. 110Min. 178 Max. 1,100Max. 1,7828 U.S.C. 1324c(d)(3)(A)IRCA; Document fraud, first order—for violations described in U.S.C. 1324c(a)(1)-(4) (per document)28 CFR 68.52(e)(1)(i)Min. 375Min. 445 Max. 3,200Max. 3,5638 U.S.C. 1324c(d)(3)(B)IRCA; Document fraud, subsequent order—for violations described in U.S.C. 1324c(a)(1)-(4) (per document)28 CFR 68.52(e)(1)(iii)Min. 3,200Min. 3,563 Max. 6,500Max. 8,9088 U.S.C. 1324c(d)(3)(A)IRCA; Document fraud, first order—for violations described in U.S.C. 1324c(a)(5)-(6) (per document)28 CFR 68.52(e)(1)(ii)Min. 275Min. 376 Max. 2,200Max. 3,0058 U.S.C. 1324c(d)(3)(B)IRCA; Document fraud, subsequent order—for violations described in U.S.C. 1324c(a)(5)-(6) (per document)28 CFR 68.52(e)(1)(iv)Min. 2,200Min. 3,005 Max. 5,500Max. 7,512FBI49 U.S.C. 30505(a)National Motor Vehicle Title Identification System; Violation (per violation)1,0001,591Start Printed Page 42503Office of Justice Programs42 U.S.C. 3789g(d)Confidentiality of information; State and Local Criminal History Record Information Systems—Right to Privacy Violation28 CFR 20.2511,00027,500 **** Adjusted penalty capped at 2.5 times the penalty amount in effect on November 2, 2015, the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, sec. 701 (“2015 Amendments”). See id. § 701(b)(2) (amending section 5(b)(2)(C) of the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) to provide that the amount of the first inflation adjustment after the date of enactment of the 2015 Amendments “shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment of the [2015 Amendments].”).1 The figures set forth in this column represent the penalty as last adjusted by Department of Justice regulation or statute as of November 2, 2015.2 All figures set forth in this table are maximum penalties, unless otherwise indicated.3 Section 3729(a)(1) of Title 31 states that any person who violates this section “is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990, plus 3 times the amount of damages which the Government sustains because of the act of that person.” 31 U.S.C. 3729(a)(1) (2012) (citation omitted). Section 3729(a)(2) permits the court to reduce the damages under certain circumstances to “not less than 2 times the amount of damages which the Government sustains because of the act of that person.” Id. § 3729(a)(2). The adjustment made by this regulation is only applicable to the specific statutory penalty amounts stated in subsection (a)(1), which is only one component of the civil penalty imposed under section 3729(a)(1).4 Section 8706(a)(1) of Title 41 states that “[t]he Federal Government in a civil action may recover from a person—(1) that knowingly engages in conduct prohibited by section 8702 of this title a civil penalty equal to—(A) twice the amount of each kickback involved in the violation; and (B) not more than $10,000 for each occurrence of prohibited conduct . . . .” 41 U.S.C. 8706(a)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (a)(1)(B), which is only one component of the civil penalty imposed under section 8706.5 Section 216(b) of Title 18 states the civil penalty should be no “more than $50,000 for each violation or the amount of compensation which the person received or offered for the prohibited conduct, whichever amount is greater.” 18 U.S.C. 216(b) (2012). Therefore, the adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b), which is only one aspect of the possible civil penalty imposed under § 216(b).6 Section 2105(b) of Title 41 states, “(b) Civil penalties.—The Attorney General may bring a civil action in an appropriate district court of the United States against a person that engages in conduct that violates section 2102, 2103, or 2104 of this title. On proof of that conduct by a preponderance of the evidence—(1) an individual is liable to the Federal Government for a civil penalty of not more than $50,000 for each violation plus twice the amount of compensation that the individual received or offered for the prohibited conduct; and (2) an organization is liable to the Federal Government for a civil penalty of not more than $500,000 for each violation plus twice the amount of compensation that the organization received or offered for the prohibited conduct.” 41 U.S.C. 2105(b) (2012). The adjustments made by this regulation are only applicable to the specific statutory penalty amounts stated in subsections (b)(1) and (b)(2), which are each only one component of the civil penalties imposed under sections 2105(b)(1) and (b)(2).7 The Attorney General has authority to bring a civil action when a person has violated or is about to violate a provision under this statute. 42 U.S.C. 5157(b) (2012)). The Federal Emergency Management Agency has promulgated regulations regarding this statute and has adjusted the penalty in its regulation. 44 CFR 206.14(d) (2015). The Department of Health and Human Services (HHS) has also promulgated a regulation regarding the penalty under this statute. 42 CFR 38.8 (2015).8 Section 1956(b)(1) of Title 18 states that “[w]hoever conducts or attempts to conduct a transaction described in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of—(A) the value of the property, funds, or monetary instruments involved in the transaction; or (B) $10,000.” 18 U.S.C. 1956(b)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b)(1)(B), which is only one aspect of the possible civil penalty imposed under section 1956(b).9 Section 842(c)(2)(C) of Title 21 states that “[i]n addition to the penalties set forth elsewhere in this subchapter or subchapter II of this chapter, any business that violates paragraph (11) of subsection (a) of this section shall, with respect to the first such violation, be subject to a civil penalty of not more than $250,000, but shall not be subject to criminal penalties under this section, and shall, for any succeeding violation, be subject to a civil fine of not more than $250,000 or double the last previously imposed penalty, whichever is greater.” 21 U.S.C. 842(c)(2)(C) (2012). The adjustment made by this regulation regarding the penalty for a succeeding violation is only applicable to the specific statutory penalty amount stated in subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding violation imposed under section 842(c)(2)(C).10 Section 856(d)(1) of Title 21 states that “(1) Any person who violates subsection (a) of this section shall be subject to a civil penalty of not more than the greater of—(A) $250,000; or (B) 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to the person.” 21 U.S.C. 856(d)(1) (2012). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (d)(1)(A), which is only one aspect of the possible civil penalty imposed under section 856(d)(1).
Loretta E. Lynch, Attorney General.
The former Immigration and Naturalization Service (INS) was part of the Department of Justice when the 1999 inflation adjustments rules for civil monetary penalties were adopted. However, Congress abolished the former INS effective March 1, 2003, and transferred its functions to DHS pursuant to the Homeland Security Act, Public Law 107-296 (Nov. 25, 2002). EOIR was a separate component at that time, and it remains within the Department of Justice under the authority of the Attorney General.
In rare instances, the adjusted civil penalty amount under this rule is less than the penalty amount currently in effect, because, in these cases, the use of rounders under the former law increased a particular penalty by an increment exceeding the actual rate of inflation. For example, in 2014, the Department published a rule increasing the $55,000 civil penalty for a first violation of the Servicemembers Civil Relief Act, 50 U.S.C. 4041(b)(3), by an increment of $5,000 to $60,000. 79 FR 17434-01 (Mar. 28, 2014). Under this rule, taking account of the actual rate of inflation since enactment, the civil penalty amount is adjusted slightly lower to $59,810.
[FR Doc. 2016-15528 Filed 6-29-16; 8:45 am]