Unknown. Final rule

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2016-08-23.xml --- 81 163 Tuesday, August 23, 2016 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 57583-57586 2016-20035 Agricultural Marketing Agricultural Marketing Service PROPOSED RULES Beef Promotion and Research, 57495-57497 2016-20098 Increased Assessment Rates: Apricots Grown in Designated Counties in Washington, 57493-57495 2016-20096 Agriculture Agriculture Department See Agricultural Marketing Service See Forest Service See Rural Housing Service AIRFORCE Air Force Department NOTICES Meetings:

Air Force Scientific Advisory Board, 57570-57571 2016-20071 Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Federal Firearms License, 57616-57617 2016-20051 Notification of Change of Mailing or Premise Address, 57615-57616 2016-20077 Antitrust Division Antitrust Division NOTICES Proposed Final Judgments: United States of America v. Charter Communications, Inc., et al., 57617-57620 2016-20066 Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 57569-57570 2016-20114 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 57587-57589 2016-20069 2016-20068 Centers Medicare Centers for Medicare & Medicaid Services PROPOSED RULES Inappropriate Steering of Individuals Eligible for or Receiving Medicare and Medicaid Benefits to Individual Market Plans, 57554-57558 2016-20034 Children Children and Families Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 57589 2016-20089 Low-Income Home Energy Assistance Program: State Median Income Estimates for Federal Fiscal Year 2017, 57589-57591 2016-19922 Coast Guard Coast Guard RULES Safety Zones: Upper Mississippi River, St. Louis, MO, 57459-57461 2016-20084 Transportation Worker Identification Credential; Reader Requirements, 57652-57713 2016-19383 PROPOSED RULES Safety Zones: Columbia River, Sand Island, WA, 57507-57509 2016-20132 NOTICES Waterway Suitability Assessments:

Expansion of Liquefied Natural Gas Facility, Ingleside, TX, 57599-57600 2016-20088 Commerce Commerce Department See Economic Development Administration See First Responder Network Authority See Foreign-Trade Zones Board See Industry and Security Bureau See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration See National Telecommunications and Information Administration Community Living Administration Community Living Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Alzheimer's and Dementia Program Data Reporting Tool, 57591-57592 2016-20156 Protection and Advocacy Annual Program Performance Report and Statement of Goals and Priorities, 57592-57593 2016-20161 Corporation Corporation for National and Community Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 57570 2016-20099 Defense Department Defense Department See Air Force Department NOTICES Arms Sales, 57571-57578 2016-20094 2016-20104 2016-20122 TRICARE:

Fiscal Year 2017 Continued Health Care Benefit Program; Quarterly Premium Update, 57578-57579 2016-20131 Economic Development Economic Development Administration NOTICES Trade Adjustment Assistance Eligibility; Petitions, 57561 2016-20133 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Study of Title I Schoolwide and Targeted Assistance Programs, 57579 2016-20070 Employment and Training Employment and Training Administration NOTICES Worker Adjustment Assistance Eligibility;

Determinations, 57627-57629 2016-20050 Worker Adjustment Assistance Eligibility; Determinations: Exal Corp. Including On-Site Leased Workers from Alliance Industrial Solutions and Ryan Alternative Staffing, Youngstown, OH, 57625 2016-20046 Mesabi Radial Tire Co., 57626-57627 2016-20049 Worker Adjustment Assistance Eligibility; Investigations, 57625-57626 2016-20047 Energy Department Energy Department See Energy Efficiency and Renewable Energy Office Energy Efficiency Energy Efficiency and Renewable Energy Office NOTICES Request for Project Submissions:

Call For U.S.-China Energy Performance Contracting Pilot Projects to be Recognized at the 7th Annual U.S.-China Energy Efficiency Forum, 57579-57580 2016-20101 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: Indiana; Shipbuilding Antifoulant Coatings, 57469-57473 2016-20016 Virginia; Minor New Source Review, Nonroad Engines, 57466-57469 2016-19888 Wisconsin; Kenosha County 2008 8-Hour Ozone Nonattainment Area Reasonable Further Progress Plan, 57463-57466 2016-20002 Petitions:

Brunner Island Steam Electric Station; Deadline Extension, 57461-57463 2016-20140 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Florida; Hillsborough Area; SO2 Attainment Demonstration, 57522-57531 2016-20118 Florida; Nassau Area; SO2 Attainment Demonstration, 57535-57544 2016-20119 Georgia; Infrastructure Requirements for the 2012 PM2.5 National Ambient Air Quality Standard, 57544-57554 2016-20139 Indiana; Shipbuilding Antifoulant Coatings, 57534-57535 2016-20011 Maine;

New Hampshire; Rhode Island; Vermont; Interstate Transport of Air Pollution, 57519-57522 2016-20022 South Carolina; Infrastructure Requirements for the 2012 PM2.5 National Ambient Air Quality Standard, 57509-57519 2016-20141 Virginia; Adoption of Control Techniques Guidelines for Control of Volatile Organic Compound Emissions, 57531-57534 2016-20143 Virginia; Minor New Source Review, Nonroad Engines, 57534 2016-19878 Wisconsin; Kenosha County, 2008 8-Hour Ozone Nonattainment Area Reasonable Further Progress Plan, 57535 2016-20008 NOTICES Meetings:

Science and Information Subcommittee, 57580 2016-20153 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: All Hot Air Balloons, 57449-57451 2016-19937 Rolls-Royce Deutschland Ltd and Co KG Turbofan Engines, 57447-57449 2016-20081 Federal Communications Federal Communications Commission RULES Closed Captioning of Video Programming: Telecommunications for the Deaf and Hard of Hearing, Inc., 57473-57489 2016-19685 NOTICES Meetings: North American Numbering Council, 57580-57581 2016-20067 Federal Highway Federal Highway Administration RULES Right-of-Way and Real Estate, 57716-57741 2016-19475 NOTICES Environmental Impact Statements;

Availability, etc.: State Route 30, Cache County, UT, 57645-57646 2016-19827 Federal Housing Finance Agency Federal Housing Finance Agency PROPOSED RULES Federal Home Loan Bank New Business Activities, 57499-57505 2016-19858 FIRSTNET First Responder Network Authority NOTICES Meetings: First Responder Network Authority Board and Finance Committee, 57561-57562 2016-20123 Fiscal Fiscal Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Management of Federal Agency Disbursements, 57649-57650 2016-19976 Foreign Trade Foreign-Trade Zones Board NOTICES Production Activities: Max Home, LLC; Foreign-Trade Zone 158, Vicksburg and Jackson, MS, 57562 2016-20180 Subzone Approvals: Next Level Apparel, Ashford, AL, 57562 2016-20168 Forest Forest Service NOTICES Meetings: Chippewa National Forest Resource Advisory Committee, 57559 2016-20078 Rogue and Umpqua Resource Advisory Committee, 57559-57560 2016-19355 General Services General Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: USA.gov and All Related Subdomains, 57581-57582 2016-20107 Gulf Coast Ecosystem Restoration Council Gulf Coast Ecosystem Restoration Council NOTICES Draft Update to the Comprehensive Plan, 57582-57583 2016-19986 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See Community Living Administration See National Institutes of Health NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 57593-57597 2016-20110 2016-20130 2016-20134 2016-20135 2016-20136 Homeland Homeland Security Department See Coast Guard See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection RULES Civil Monetary Penalty Adjustments for Inflation; Correction, 57442 2016-19672 Housing Housing and Urban Development Department PROPOSED RULES Native American Housing Assistance and Self-Determination Act: Negotiated Rulemaking Committee Ninth Meeting, 57506-57507 2016-20115 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Affirmatively Furthering Fair Housing Local Government Assessment Tool, 57601-57610 2016-20125 Meetings: Manufactured Housing Consensus Committee, 57611 2016-20127 Order of Succession for Office of General Counsel, 57610-57611 2016-20128 Industry Industry and Security Bureau RULES Additions and Removals of Certain Persons and Modification of Certain Entries to the Entity List, 57451-57456 2016-20142 PROPOSED RULES License Exceptions: Temporary Exports to Mexico, 57505-57506 2016-19670 Interior Interior Department See Land Management Bureau See National Park Service Internal Revenue Internal Revenue Service RULES Arbitrage Guidance for Tax-Exempt Bonds:

Correction, 2016-20086 57458-57459 2016-20087 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Carbon Steel Butt-Weld Pipe Fittings from Brazil, Japan, Taiwan, Thailand, and the People's Republic of China, 57562-57563 2016-20174 International Trade Com International Trade Commission NOTICES Andean Trade Preference Act: Impact on U.S. Industries and Consumers and on Drug Crop Eradication and Crop Substitution, 57613-57614 2016-20079 Complaints:

Certain Sleep-Disordered Breathing Treatment Mask Systems and Components Thereof, 57614-57615 2016-20082 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Antitrust Division NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Approval as a Nonprofit Budget and Credit Counseling Agency, 57622 2016-20052 Application for Approval as a Provider of a Personal Financial Management Instructional Course, 57623-57624 2016-20053 Claims of U.S.

Nationals Referred to the Foreign Claims Settlement Commission by the Department of State, 57621-57622 2016-20109 Quality of Service Survey, 57623 2016-20108 Consent Decrees under CERCLA, 57624-57625 2016-20076 Meetings: National Domestic Communications Assistance Centers Executive Advisory Board, 57620-57621 2016-20126 Labor Department Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Environmental Assessments; Availability, etc.:

Coeur d'Alene Resource Management Plan; Amendments, 57611-57612 2016-20095 National Highway National Highway Traffic Safety Administration NOTICES Amendments to Highway Safety Program Guidelines, 57646-57649 2016-20165 National Institute National Institute of Standards and Technology NOTICES Meetings: Genome in a Bottle Consortium; Workshop, 57564-57565 2016-20120 Visiting Committee on Advanced Technology, 57563-57564 2016-20121 National Institute National Institutes of Health NOTICES Meetings:

Eunice Kennedy Shriver National Institute of Child Health and Human Development, 57597 2016-20037 National Cancer Advisory Board; Correction, 57597-57598 2016-20036 National Institute of Dental and Craniofacial Research, 57597-57598 2016-20038 2016-20039 National Institute of Mental Health, 57599 2016-20040 National Institute of Nursing Research, 57598-57599 2016-20041 Office of the Director, 57598 2016-20042 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Exclusive Economic Zone Off Alaska:

Pacific Cod in the Bering Sea and Aleutian Islands Management Area, 57491-57492 2016-20106 Reallocation of Pacific Cod in the Bering Sea and Aleutian Islands Management Area, 57491 2016-20105 Fisheries Off West Coast States: Coastal Pelagic Species Fisheries; Annual Specifications, 57489-57490 2016-20056 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: South Pacific Tuna Act, 57565 2016-20080 Programmatic Environmental Impact and Related Procedures Pacific Island Fisheries;

Aquaculture, 57567-57569 2016-20048 Requests for Nominations: Advisory Panel for Atlantic Highly Migratory Species Southeast Data, Assessment, and Review Workshops, 57565-57567 2016-20103 National Park National Park Service NOTICES Requests for Nominations: Na Hoa Pili O Kaloko-Honokohau National Historical Park Advisory Commission, 57612-57613 2016-20083 National Telecommunications National Telecommunications and Information Administration NOTICES Meetings: First Responder Network Authority Board and Finance Committee, 57561-57562 2016-20123 Nuclear Regulatory Nuclear Regulatory Commission RULES List of Approved Spent Fuel Storage Casks:

Holtec International HI-STORM Flood/Wind Multipurpose Canister Storage System, Amendment No. 2, 57442-57446 2016-20090 PROPOSED RULES List of Approved Spent Fuel Storage Casks: Holtec International HI-STORM Flood/Wind Multipurpose Canister Storage System, Amendment No. 2, 57497-57499 2016-20091 NOTICES License Application; Renewals: Virginia Electric and Power Company; North Anna Power Station Independent Spent Fuel Storage Installation, 57629-57632 2016-20092 Postal Service Postal Service NOTICES Product Changes:

Priority Mail and First-Class Package Service Negotiated Service Agreement, 57632 2016-20043 2016-20045 Priority Mail Express and Priority Mail Negotiated Service Agreement, 57632 2016-20044 Rural Housing Service Rural Housing Service RULES Civil Monetary Penalties, 57439-57442 2016-19954 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 57560-57561 2016-20012 Securities Securities and Exchange Commission NOTICES Applications: FS Global Credit Opportunities Fund, et al.;, 57636-57639 2016-20059 Meetings;

Sunshine Act, 57634-57635 2016-20214 Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe Limited, 57635-57636 2016-20064 NASDAQ Stock Market LLC, 57641-57642 2016-20065 New York Stock Exchange LLC, 57642-57644 2016-20061 NYSE Arca, Inc., 57632-57634 2016-20062 NYSE MKT LLC, 2016-20060 57639-57640, 57642 2016-20063 Small Business Small Business Administration NOTICES Surrender of License of Small Business Investment Company, 57644 2016-20032 State Department State Department NOTICES Culturally Significant Objects Imported for Exhibition:

In the Tower: Barbara Kruger, 57645 2016-20298 Meetings: Shipping Coordinating Committee, 57645 2016-20113 Presidential Permits: Union Pacific Railroad Co. to Operate and Maintain the Brownsville West Rail Bypass International Bridge on the U.S.-Mexico Border West of Brownsville, TX, 57644-57645 2016-20111 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See National Highway Traffic Safety Administration Treasury Treasury Department See Fiscal Service See Internal Revenue Service U.S.

Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 57600-57601 2016-20055 Customs U.S. Customs and Border Protection RULES Importations; Prohibitions: Jadeite or Rubies Mined or Extracted from Burma and Articles of Jewelry Containing Jadeite or Rubies Mined or Extracted from Burma, 57456-57458 2016-20057 Veteran Affairs Veterans Affairs Department NOTICES Meetings: MyVA Advisory Committee, 57650 2016-20033 Separate Parts In This Issue Part II Homeland Security Department, Coast Guard, 57652-57713 2016-19383 Part III Transportation Department, Federal Highway Administration, 57716-57741 2016-19475 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 81 163 Tuesday, August 23, 2016 Rules and Regulations DEPARTMENT OF AGRICULTURE Rural Housing Service 7 CFR Part 3560 RIN 0575-AC93 Civil Monetary Penalties AGENCY: Rural Housing Service, USDA. ACTION: Final rule. SUMMARY: The Rural Housing Service (RHS or Agency) is implementing its civil monetary penalty provision.

Currently, the Agency is limited to severe actions, such as acceleration and foreclosure, as a remedy for non-monetary compliance violations, actions that may not be in the best interest of the government. New Civil Monetary Penalties regulations will enable the Agency to target the non-monetary default issues and elicit compliance by the borrower without such a drastic step as foreclosure. By implementing procedures for Civil Monetary Penalties, the Agency will be provided an important tool to enforce compliance with the regulations.

DATES: This rule is effective September 22, 2016. However, there will be an implementation period for this rule that will allow the Agency to ensure that proper guidance is disseminated. The implementation date is December 21, 2016. FOR FURTHER INFORMATION CONTACT: Stephanie White, Director, Multi-Family Housing Portfolio Management Division, Rural Housing Service, STOP 0782—Room 1263S, 1400 Independence Avenue SW., Washington, DC 20250-0782, Telephone:

(202)720-1615. SUPPLEMENTARY INFORMATION: Executive Order 12866, Classification This rule has been determined to be not significant for purposes of Executive Order 12866 and has not been reviewed by the Office of Management and Budget (OMB). Authority The civil monetary penalty provision is authorized under section 543(b) of the Housing Act of 1949, as amended (42 U.S.C. 1490s(b)). Environmental Impact Statement This document has been reviewed in accordance with 7 CFR part 1970. RHS has determined that this action does not constitute a major Federal action significantly affecting the quality of the environment. In accordance with the National Environmental Policy Act of 1969, 42 U.S.C. 4321 *et seq.,* an Environmental Impact Statement is not required. Regulatory Flexibility Act This rule has been reviewed with regard to the requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). Under Section 605(b) of the Regulatory Flexibility Act, 5 U.S.C. 605(b), the Agency has determined and certified by signature on this document that this rule will not have a significant economic impact on a substantial number of small entities since this rulemaking action does not involve a new or expanded program nor does it require any more action on the part of a small business than required of a large entity. Executive Order 13132, Federalism The policies contained in this rule do not have any substantial direct effect on States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of Government. This rule does not impose substantial direct compliance costs on State and local Governments; therefore, consultation with the States is not required. Executive Order 12988, Civil Justice Reform This rule has been reviewed under Executive Order 12988. In accordance with this rule:

(1)Unless otherwise specifically provided, all State and local laws that are in conflict with this rule will be preempted;

(2)no retroactive effect will be given to this rule except as specifically prescribed in the rule; and

(3)administrative proceedings of the National Appeals Division of the Department of Agriculture (7 CFR part 11) must be exhausted before bringing suit in court that challenges action taken under this rule. Unfunded Mandate Reform Act

(UMRA)Title II of the UMRA, Public Law 104-4, establishes requirements for Federal Agencies to assess the effects of their regulatory actions on State, local, and tribal Governments and on the private sector. Under section 202 of the UMRA, Federal Agencies generally must prepare a written statement, including cost-benefit analysis, for proposed and Final Rules with “Federal mandates” that may result in expenditures to State, local, or tribal Governments, in the aggregate, or to the private sector, of $100 million or more in any 1-year. When such a statement is needed for a rule, section 205 of the UMRA generally requires a Federal Agency to identify and consider a reasonable number of regulatory alternatives and adopt the least costly, more cost-effective, or least burdensome alternative that achieves the objectives of the rule. This rule contains no Federal mandates (under the regulatory provisions of title II of the UMRA) for State, local, and tribal governments or for the private sector. Therefore, this rule is not subject to the requirements of sections 202 and 205 of the UMRA. Paperwork Reduction Act of 1995 The revisions in this rulemaking for 7 CFR part 3560 are subject to the Paperwork Reduction Act package with the assigned OMB control number of 0575-0189. No changes would impact that package. E-Government Act Compliance RHS is committed to complying with the E-Government Act to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services and for other purposes. Programs Affected The programs affected by this regulation are listed in the Catalog of Federal Domestic Assistance under Section 514 program and Section 516 program (10.405); Section 515 program (10.415); Section 521 (10.427); and Section 542 (10.448). Executive Order 13175, Consultation and Coordination With Indian Tribal Governments This executive order imposes requirements on RHS in the development of regulatory policies that have tribal implications or preempt tribal laws. RHS has determined that the rule does not have a substantial direct effect on one or more Indian tribe(s) or on either the relationship or the distribution of powers and responsibilities between the Federal Government and the Indian tribes. Thus, the rule is not subject to the requirements of Executive Order 13175. If tribal leaders are interested in consulting with RHS on this rule, they are encouraged to contact USDA's Office of Tribal Relations or Rural Development's Native American Coordinator at

(720)544-2911 or *AIAN@wdc.usda.gov* to request such consultation. Executive Order 12372, Intergovernmental Review of Federal Programs This final rule is subject to the provisions of Executive Order 12372 which require intergovernmental consultation with State and local officials. RHS conducts intergovernmental consultations for each loan and grant in a manner delineated in 7 CFR part 3015 subpart V. Non-Discrimination Statement In accordance with Federal civil rights law and U.S. Department of Agriculture

(USDA)civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identification (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident. Persons with disabilities who require alternative means of communication for program information ( *e.g.,* Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at

(202)720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at

(800)877-8339. Additionally, program information may be made available in languages other than English. To file a discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at *http://www.ascr.usda.gov/complaint_filing_cust.html* and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call

(866)632-9992. Submit your completed form or letter to USDA by:

(1)*Mail:* U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW., Washington, DC 20250-9410;

(2)*fax:*

(202)690-7442; or

(3)*email: program.intake@usda.gov.* USDA is an equal opportunity provider, employer, and lender. I. Background Section 543(b) of the Housing Act of 1949 as amended (hereinafter the Act) (42 U.S.C. 1490s(b)) states for 5 different types of violations, “the Secretary may, after notice and opportunity for a hearing, impose a civil monetary penalty

(CMP)against any individual or entity, including its owners, officers, directors, general partners, limited partners, or employees, who knowingly and materially violate, or participate in the violation of the Act or its regulations.” In the proposed rule published in the **Federal Register** on January 4, 2013 (78 FR 672) RHS proposed to implement two civil monetary penalty provisions. First, RHS proposed to amend its regulations to create a new section for imposing civil monetary penalties under the authority of 42 U.S.C. 1490s (section 543 of the Housing Act of 1949, as amended (Act)) (Housing Act CMP). Second, RHS proposed to adopt the USDA civil monetary penalty provisions for the Program Fraud Civil Remedies Act of 1986 (PFCRA) in a revision to an existing regulation (PFCRA CMP). In the proposed rule, RHS addressed the following issues for CMP: 1. Procedures for the determination of the civil monetary penalties; 2. Procedures for the administrative hearing; 3. Establishing fines; and 4. Procedures for the collection of fines. In the final rule, Multi-Family Housing

(MFH)will set out procedures to use the USDA Administrative Law Judges' office to conduct the hearings for the civil monetary penalty program. The Administrative Laws Judges conduct similar hearings for other USDA agencies. The Administrative Law Judges' regulations allow within its jurisdiction, “other adjudicatory proceedings in which the complaint instituting the proceeding so provides with the concurrence of the Assistant Secretary for Administration.” See 7 CFR 1.131(b)(6) Rural Housing Service

(RHS)received concurrence in conducting MFH's civil monetary penalty hearings through the Administrative Law Judges' office. The Agency expects about 50 CMP cases annually. II. Summary of Comments and Responses On January 4, 2013 (78 FR 672), the Agency published a proposed rule for Civil Monetary Penalties. A thirty-day comment period that ended February 4, 2013, was provided. Fifty-one comments were received from eleven stakeholders, including housing associations, housing advocates, and individuals. RHS is also including five comments relating to civil monetary penalties received from an interim rule titled “Reinvention of the Sections 514, 515, 516 and 521 Multi-Family Housing Programs”, which was published on November 26, 2004 (69 FR 69032-69176). Of the comments received, two comments were deemed not relevant to the rule, as the comments were not related to the CMP proposed rule. *The Agency will adopt the following comments:* *Duplication and vagueness of CMP/PFCRA:* Twenty-one comments mentioned that the proposed rule was broad and vague. Comments expressed concern about the duplication and overlap of existing rules created by the proposed rule. Several commenters requested that the Agency explain the need for Program Fraud Civil Remedies Act (PFCRA) in the proposed rule. The Agency has reviewed the comments and agrees that the inclusion of PFCRA provisions in the proposed rule created repetition and overlap, so they have been removed. Accordingly, the Agency has determined that 7 CFR part 1, subpart L, Procedures Related to Administrative Hearings Under the Program Fraud Civil Remedies Act of 1986, will be replaced with references to 7 CFR part 1, subpart H—Rules of Practice Governing Formal Adjudicatory Proceedings Instituted by the Secretary Under Various Statutes. The majority of borrowers and management agents within the multifamily portfolio comply with Agency regulations and procedures and will not be affected by this rule. We estimate that less than five percent of the multifamily portfolio will be affected by the CMP rule. *CMP Process:* Ten comments expressed concerns about the CMP process. Those concerns included: • Two comments concerning the timeliness and use of the Attorney General. The concern was that the use of the United States Attorney's office could take years delaying completion of any civil monetary penalty against the individual or entity. • One commenter raised a concern about the role of the Office of General Counsel

(OGC)and its impact on the length of time for completing a CMP case and whether it had adequate staffing to handle such matters. • One comment requested clearer guidance on the role and process of the Fraud Claims Officer, and the designation of the reviewing official. • One comment objected to the pre-penalty notices warning that a penalty may be coming if the Agency did not receive adequate performance. • Five comments were received that raised concerns about the complicated methodology of the process, ambiguous deadlines, and the standards for maintaining a property. • Another comment suggested that the rule clearly limit which portions of Part 1 apply so, for example, the Agency is clear that it is not seeking to take on the Office of Inspector General

(OIG)investigation powers, but is still providing full and adequate discovery and hearing procedures. • Another commenter suggested an initial process using the State Director or Program Director. • The Agency considered all of the comments above and changed the rule by enlisting the Office of Administrative Law Judges to administer civil monetary hearings to address the concerns of due process. References to the Fraud Office, of which there is no equivalent in USDA have been removed. No specific pre-penalty notice will be provided. Instead the Agency will use servicing letters in the existing guidance provided in the Serving Handbook. The Administrative Law Judges conduct similar hearings for other U.S. Department of Agriculture agencies. The Administrative Law Judges' regulations allow within its jurisdiction, “other adjudicatory proceedings in which the complaint instituting the proceeding so provides with the concurrence of the Assistant Secretary for Administration.” See 7 CFR 1.131(b)(6). The Agency process will be similar to that used by Investigative and Enforcement Services of the Animal and Plant Health Inspection Service (APHIS). Borrowers will have an opportunity to resolve the findings or deficiencies by working with the State Director and Agency staff prior through its regulatory loan servicing procedures prior to a CMP hearing. As with other loan servicing actions, the Agency will complete its loan servicing pursuant to 7 CFR part 3560 of the Borrower's loan account before pursuing civil monetary penalties. Pursuant to 7 CFR 3560.456(b), the Agency will make a determination on whether to proceed with an acceleration or seek CMPs. The Office of General Counsel will review the cases to ensure legal sufficiency as well as represent the Agency on any cases that they recommend to move forward. Once forwarded, the timing of the process will be incumbent on the caseload of the Office of the Administrative Law Judges. The Agency will amend § 3560.461(b)(2) adding references to 7 CFR part 1 subpart H-Rules of Practice Governing Formal Adjudicatory Proceedings Instituted by the Secretary Under Various Statutes. In response to comments concerning duplicity, due process and procedural concerns the Agency determined it will use its authority in section 543(b) Housing Act authority and this subpart rather than 7 CFR part 1, subpart L. *CMP Fees:* Three commenters expressed concerns about the fee structure and its reasonableness. As described in the proposed rule, the CMP fees will be assessed in accordance with 7 CFR part 3, subpart I. The Administrative Law Judge will use the criteria in the final rule and the requirements in section 3.91(b)(8) to determine the fees. The Agency believes that the fees set in the final rule will be reasonable. With the threshold of the fees independently established in USDA regulation and the assessment of the CMP fees imposed by the Administrative Law Judges, the Agency believes these measures eliminate any potential RHS subjectivity or bias. • *Failure to Disclose:* One commenter requested that the Agency add a section to the rule that specifies the failure to disclose proper identity-of-interest information on site managers and contractors as a cause to impose CMP. We agree this should be included and have adopted the comment. This requirement is addressed in § 3560.461(b)(1)(iii) entitled, “Failing to submit information requested by the Agency in a timely manner.” *The Agency will not adopt the following comments:* *Non-profits:* Six commenters were concerned about the negative impact of the rule on non-profit borrowers. Some requested exempt status or a 24-month grace period for implementation when a non-profit obtains a property through a transfer and assumption. The Agency does not see a need to adopt the comment because all borrowers, including non-profits, are required to adhere to the requirements of 7 CFR part 3560. In addition, MFH will work with the non-profits to assist them in bringing the properties into compliance with MFH regulations. As a result, MFH does not think it is necessary to implement a 24 month grace period. *Liability Concerns:* One commenter expressed concerns about liability in the case of a Limited Liability Corporation

(LLC)and whether the tenant could be liable. It is ultimately the borrower's responsibility to remain compliant with the program regulations. False information provided by the tenant resulting in unauthorized benefits may be pursued under 7 CFR part 3560, subpart O—Unauthorized Assistance. The Agency will determine borrower liability on a case-by-case basis and as the regulation and law allows. A Tenant may be liable under the CMP and is subject to the requirements of this rule. *Lack of Resources:* One commenter requested that the rule clarify that civil monetary penalties will not be sought or assessed under circumstances where the primary cause of a failure to properly manage or maintain a project results from a lack of available funds where the borrower has requested rental increases or additional loans or grants in order to maintain and repair the project, but such requests have been denied. The Agency understands the commenter's concern. The Agency is choosing not to adopt the comment because the Agency is confident it can work with borrowers on tools that are available, which may include rent increases in accordance with 7 CFR part 3560, subpart E and other servicing options available under subpart J. List of Subjects in 7 CFR Part 3560 Aged, Loan programs—Agriculture, Loan programs—Housing and Community Development, Low and moderate income housing, Public housing, Rent subsidies. For the reasons set forth in the preamble, chapter XXXV, Title 7 of the Code of Federal Regulations is amended as follows: PART 3560—DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS 1. The authority citation for part 3560 continues to read as follows: Authority: 42 U.S.C. 1480. Subpart J—Special Servicing, Enforcement, Liquidation, and Other Actions 2. Amend § 3560.461 by revising paragraphs (b)(2) and (b)(4) to read as follows: § 3560.461 Enforcement provisions.

(b)* * *

(2)*Amount.* Civil penalties shall be assessed in accordance with 7 CFR part 3, subpart I. In determining the amount of a civil monetary penalty under this section, the Agency must take into consideration:

(i)The gravity of the offense;

(ii)Any history of prior offenses by the violator (including offenses occurring prior to the enactment of this section);

(iii)Any injury to tenants;

(iv)Any injury to the public;

(v)Any benefits received by the violator as a result of the violation;

(vi)Deterrence of future violations; and

(vii)Such other factors as the Agency may establish by regulation.

(4)Hearings under this part shall be conducted in accordance with the procedures applicable to hearings in accordance with 7 CFR part 1, subpart H. Dated: July 25, 2016. Tony Hernandez, Administrator, Rural Housing Service. [FR Doc. 2016-19954 Filed 8-22-16; 8:45 am]

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