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Department of Commerce: Compliance with the Inflation Adjustment Act

GAO-02-1085R Published: Sep 30, 2002. Publicly Released: Sep 30, 2002.
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Highlights

GAO initiated a governmentwide review of the implementation of the Federal Civil Penalties Inflation Adjustment Act of 1990. The act requires each federal agency to issue a regulation adjusting its covered maximum civil monetary penalties for inflation by October 23, 1996, and requires each agency to make necessary adjustments at least once every 4 years thereafter. During the review, GAO determined that the Department of Commerce had adjusted its civil penalties in a manner inconsistent with eh requirements of the statute.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Commerce Although there are some advantages to rounding on the basis of the size of the increase rather than the size of the penalty, such a determination does not comport with the plain language of the statute. Therefore, the Secretary of Commerce should initiate a regulatory action to adjust the agency's civil penalties in a manner consistent with the requirements of the Inflation Adjustment Act.
Closed – Implemented
The Office of the Secretary within the Department of Commerce published a final rule adjusting the department's civil penalties in accordance with the requirements of the Inflation Adjustment Act on January 29, 2003 (68 FR 4380).

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Topics

Federal lawFines (penalties)InflationNoncompliancePrice inflationFederal assistance programsFederal rulemakingEnvironmental protectionDebt collectionPrice indexes