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Mar
01

Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015

From: OMB Memorandum M- 16-06

Overview

On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act) (Sec. 701 of Public Law 114-74), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) (Public Law 101-410), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect.

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Completing the catch-up adjustment

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  1. Agencies may request from OMB concurrence for a reduced catch-up adjustment determination, if they demonstrate the otherwise required increase of the penalty or penalty range would have a negative economic impact, or that the social costs would outweigh the benefits. Consistent with the 2015 Act, agencies should consult with OMB before proposing a reduced catch-up adjustment determination. Further, in accordance with the 2015 Act, the agency must have OMB concurrence before adjusting penalties pursuant to a reduced catch-up adjustment determination. Further, in making such a determination, the agency must use the standard rulemaking process, which includes publication in the Federal Register of a notice of proposed rulemaking and a final rule. Agencies seeking a reduced catch -up adjustment determination should submit their associated notices of proposed rulemaking to the Office of Information and Regulatory Affairs (OIRA), OMB, for review under Executive Order (E.O.) 12866 as soon as possible, and no later than May 2, 2016. OMB expects determination concurrences to be rare.

Read Complete Memorandum

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