[Federal Register Volume 70, Number 2 (Tuesday, January 4, 2005)]
[Rules and Regulations]
[Pages 297-298]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-100]
[[Page 297]]
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DEPARTMENT OF EDUCATION
34 CFR Part 36
Adjustment of Civil Monetary Penalties for Inflation
AGENCY: Department of Education.
ACTION: Final regulations.
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SUMMARY: The Department of Education (Department) issues these final
regulations to adjust the Department's civil monetary penalties (CMPs)
for inflation.
DATES: These regulations are effective January 4, 2005.
FOR FURTHER INFORMATION CONTACT: Lisa Kanter, Office of the General
Counsel, U.S. Department of Education, 400 Maryland Avenue, SW., room
6E205, Washington, DC 20202-2241. Telephone: (202) 401-8300.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Information Relay Service (FIRS) at 1 (800) 877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Adjustment Act
of 1990 (Inflation Adjustment Act) (28 U.S.C. 2461 note), as amended by
the Debt Collection Improvement Act of 1996 (DCIA) (31 U.S.C. 3701
note), provides for the regular evaluation of CMPs to ensure that they
continue to maintain their deterrent value. As amended by the DCIA, the
Inflation Adjustment Act requires that each agency issue regulations to
adjust its CMPs beginning in 1996 and at least every 4 years
thereafter. The Department's initial adjustment to each CMP was
published in the Federal Register on November 18, 2002 (67 FR 69654)
and became effective on the date of publication. Although it has not
been 4 years since the Department's last adjustments, had the
Department published adjustments in 1996 and 2000, it would now be time
to adjust its CMPs. Accordingly, the Department is now making any
necessary adjustments.
A CMP is defined in the statute 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.
The formula for the amount of a CMP inflation adjustment is
prescribed by law and is not subject to the exercise of discretion by
the Secretary of the Department of Education (Secretary). The
adjustment reflects the percentage increase in the Consumer Price Index
for all urban consumers (CPI-U) published by the Department of Labor
from June of the calendar year in which the amount was last set or
adjusted pursuant to law, to June of the calendar year preceding the
adjustment.
Four of the Department's CMP were adjusted in 2002. These CMPs are
(1) 20 U.S.C. 1082(g), which provides for a fine of up to $27,500 for
violations by lenders and guaranty agencies of Title IV-B of the Higher
Education Act of 1965, as amended (HEA), which authorizes the Federal
Family Education Loan Program; (2) 20 U.S.C. 1094(c)(3)(B), which
provides for a fine of up to $27,500 for an institution of higher
education's violation of Title IV of the HEA, which authorizes various
programs of student financial assistance; (3) 31 U.S.C. 1352(c)(1) and
(c)(2)(A), which provide for a fine of $11,000 to $110,000 for
recipients of Government grants, contracts, etc. that lobby Congress or
the Executive Branch with respect to the award of Government grants and
contracts; and (4) 31 U.S.C. 3802(a)(1) and (a)(2), which provide for a
fine of up to $5,500 for false claims and statements made to the
Government. For these four CMPs, not enough inflation has occurred
since 2002 to require an adjustment under the Inflation Adjustment Act.
Two of the Department's CMPs were enacted as part of the Higher
Education Amendments of 1998 (Pub. L. 105-244). These CMPs are 20
U.S.C. 1015(c)(5), which provides for a fine of up to $25,000 for
failure by an institution of higher education (IHE) to provide
information on the cost of higher education to the Commissioner of
Education Statistics, and 20 U.S.C. 1027(f)(3), which provides for a
fine of up to $25,000 for failure by an IHE to provide information to
the State and the public regarding its teacher preparation programs. In
2002, when the Department last adjusted its CMPs, not enough inflation
had occurred to require an adjustment to these CMPs under the Inflation
Adjustment Act. At this time, however, there has been more than 10
percent inflation, warranting an adjustment for each of these CMPs. By
statute, the Department's first adjustment of a CMP may not exceed 10
percent of such a penalty, and, therefore, we are adjusting these CMPs
by 10 percent.
Two additional points regarding the Department's adjustments are
worth noting. First, the Department is using the following CPI-U
figures as measures of inflation: 163 for June 1998; 179.9 for June
2002; and 183.7 for June 2003. Second, the increases to the
Department's CMPs due to these inflation adjustments apply only to
violations that occur after the effective date of the adjustments.
Waiver of Proposed Rulemaking
Under the Administrative Procedure Act (5 U.S.C. 553), the
Department generally offers interested parties the opportunity to
comment on proposed regulations. However, these regulations merely
implement the statutory mandate to adjust CMPs for inflation. The
regulations reflect administrative computations performed by the
Department as prescribed by the statute and do not establish or affect
substantive policy. Therefore, under 5 U.S.C. 553(b)(B), the Secretary
has determined that public notice and comment are impracticable,
unnecessary, and contrary to the public interest.
Regulatory Flexibility Act Certification
The Secretary certifies that these regulations will not have a
significant economic impact on a substantial number of small entities.
The formula for the amount of the inflation adjustments is prescribed
by statute and is not subject to the exercise of discretion by the
Secretary. These CMPs are infrequently imposed by the Secretary, and
the regulations do not involve any special considerations that might
affect the imposition of CMPs on small entities.
Paperwork Reduction Act of 1995
These regulations do not contain any information collection
requirements.
Assessment of Educational Impact
Based on our own review, we have determined that these final
regulations do not require transmission of information that any other
agency or authority of the United States gathers or makes available.
Electronic Access to This Document
You may view this document, as well as all other documents of this
Department published in the Federal Register, in text or Adobe Portable
Document Format (PDF) on the Internet at the following site: http://
www.ed.gov/news/fedregister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about
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using PDF, call the U.S. Government Printing Office (GPO), toll free,
at 1-888-293-6498; or in the Washington, DC, area at (202) 512-1530.
Note: The official version of this document is the document
published in the Federal Register. Free Internet access to the
official edition of the Federal Register and the Code of Federal
Regulations is available on GPO Access at: http://www.gpoaccess.gov/
nara/index.html.
(Catalog of Federal Domestic Assistance Number does not apply)
List of Subjects in 34 CFR Part 36
Claims, Fraud, Penalties.
Dated: December 28, 2004.
Eugene W. Hickok,
Deputy Secretary of Education.
0
For the reasons discussed in the preamble, the Secretary amends part 36
in title 34 of the Code of Federal Regulations as follows:
PART 36--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION
0
1. The authority citation for part 36 continues to read as follows:
Authority: 28 U.S.C. 2461 note and 31 U.S.C. 3701 note, unless
otherwise noted.
0
2. Section 36.2 is amended by revising Table I to read as follows:
Sec. 36.2 Penalty adjustment.
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Table I, Section 36.2.--Civil Monetary Penalty Inflation Adjustments
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New maximum (and minimum, if
Statute Description applicable) penalty amount
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20 U.S.C. 1015(c)(5).......................... Provides for a fine of up $27,500.
to $25,000 for failure by
an institution of higher
education (IHE) to provide
information on the cost of
higher education to the
Commissioner of Education
Statistics.
20 U.S.C. 1027(f)(3).......................... Provides for a fine of up $27,500.
to $25,000 for failure by
an IHE to provide
information to the State
and the public regarding
its teacher-preparation
programs.
20 U.S.C. 1082(g)............................. Provides for a civil $27,500.
penalty of up to $25,000
for violations by lenders
and guaranty agencies of
Title IV-B of the Higher
Education Act of 1965, as
amended (HEA), which
authorizes the Federal
Family Education Loan
Program.
20 U.S.C. 1094(c)(3)(B)....................... Provides for a civil $27,500.
penalty of up to $25,000.
for an institution of
higher education's
violation of Title IV of
the Higher Education Act
of 1965, as amended, which
authorizes various
programs of student
financial assistance.
31 U.S.C. 1352(c)(1) and (c)(2)(A)............ Provides for a civil $11,000 to $110,000.
penalty of $10,000 to
$100,000 for recipients of
Government grants,
contracts, etc. that lobby
Congress or the Executive
Branch with respect to the
award of Government grants
and contracts.
31 U.S.C. 3802(a)(1) and (a)(2)............... Provides for a civil $5,500.
penalty of up to $5,000.
for false claims and
statements made to the
Government.
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[FR Doc. 05-100 Filed 1-3-05; 8:45 am]
BILLING CODE 4000-01-P