81_FR_36563 81 FR 36454 - Civil Monetary Penalty Adjustments for Inflation

81 FR 36454 - Civil Monetary Penalty Adjustments for Inflation

DEPARTMENT OF COMMERCE
Office of the Secretary

Federal Register Volume 81, Issue 109 (June 7, 2016)

Page Range36454-36458
FR Document2016-13231

This interim final rule is being issued to adjust for inflation each civil monetary penalty (CMP) provided by law within the jurisdiction of the Department of Commerce (Commerce Department). The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, requires the head of each agency to adjust for inflation its CMP levels in effect as of November 2, 2015, under a revised methodology effective for 2016 which provides for initial catch up adjustments for inflation in 2016, and under a revised methodology for each year thereafter. The revised methodologies provide for the improvement of the effectiveness of CMPs and to maintain their deterrent effect. The initial catch up adjustment for inflation of a CMP in 2016 shall not exceed 150 percent of the amount of the CMP on the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (November 2, 2015). The initial catch up adjustments for inflation to CMPs are required to be published through an interim final rule not later than July 1, 2016, and the adjustments for inflation shall take effect not later than August 1, 2016. For each year thereafter, the adjustments for inflation to CMPs shall take effect not later than January 15. These adjustments for inflation apply only to CMPs with a dollar amount, and will not apply to CMPs written as functions of violations. These adjustments for inflation apply only to those CMPs, including those whose associated violation predated such adjustment, which are assessed by Commerce Department after the effective date of the new CMP level.

Federal Register, Volume 81 Issue 109 (Tuesday, June 7, 2016)
[Federal Register Volume 81, Number 109 (Tuesday, June 7, 2016)]
[Rules and Regulations]
[Pages 36454-36458]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13231]


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DEPARTMENT OF COMMERCE

Office of the Secretary

15 CFR Part 6

[Docket No. 160523449-6449-01]
RIN 0605-AA44


Civil Monetary Penalty Adjustments for Inflation

AGENCY: Office of the Chief Financial Officer and Assistant Secretary 
for Administration, Department of Commerce.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule is being issued to adjust for 
inflation each civil monetary penalty (CMP) provided by law within the 
jurisdiction of the Department of Commerce (Commerce Department). The 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, requires 
the head of each agency to adjust for inflation its CMP levels in 
effect as of November 2, 2015, under a revised methodology effective 
for 2016 which provides for initial catch up adjustments for inflation 
in 2016, and under a revised methodology for each year thereafter. The 
revised methodologies provide for the improvement of the effectiveness 
of CMPs and to maintain their deterrent effect. The initial catch up 
adjustment for inflation of a CMP in 2016 shall not exceed 150 percent 
of the amount of the CMP on the date of enactment of the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (November 
2, 2015). The initial catch up adjustments for inflation to CMPs are 
required to be published through an interim final rule not later than 
July 1, 2016, and the adjustments for inflation shall take effect not 
later than August 1, 2016. For each year thereafter, the adjustments 
for inflation to CMPs shall take effect not later than January 15. 
These adjustments for inflation apply only to CMPs with a dollar 
amount, and will not apply to CMPs written as functions of violations.

[[Page 36455]]

These adjustments for inflation apply only to those CMPs, including 
those whose associated violation predated such adjustment, which are 
assessed by Commerce Department after the effective date of the new CMP 
level.

DATES:  This rule is effective July 7, 2016; comments must be received 
on or before July 7, 2016.

ADDRESSES: You may submit comments, identified by the regulations.gov 
docket number DOC-2016-0004, by any of the following methods:
     Electronic Submissions: Submit all electronic public 
comments via the Federal eRulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=DOC-2016-0004 click the ``Comment Now'' icon, complete 
the required fields, and enter or attach your comments.
     Mail: Acting Deputy Chief Financial Officer, Office of 
Financial Management, Department of Commerce, 1401 Constitution Ave 
NW., Room D200, Washington, DC 20230.
    Instructions: You must submit comments by one of the above methods 
to ensure that Commerce Department receives the comments and considers 
them. Comments sent by any other method, to any other address or 
individual, or received after the end of the comment period, may not be 
considered. All comments received are a part of the public record and 
will generally be posted to http://www.regulations.gov without change. 
All Personal Identifying Information (for example, name, address, etc.) 
voluntarily submitted by the commenter may be publicly accessible. Do 
not submit Confidential Business Information or otherwise sensitive or 
protected information.
    Commerce Department will accept anonymous comments (enter ``N/A'' 
in the required fields if you wish to remain anonymous). Attachments to 
electronic comments will be accepted in Microsoft Word, Excel, 
WordPerfect, or Adobe PDF file formats only.

FOR FURTHER INFORMATION CONTACT: Jennifer Ayers, Acting Deputy Chief 
Financial Officer and Director for Financial Management, Office of 
Financial Management, at (202) 482-1207, Department of Commerce, 1401 
Constitution Avenue NW., Room D200, Washington, DC 20230. The Commerce 
Department Civil Monetary Penalties; Adjustment for Inflation are 
available for downloading from Commerce Department, Office of Financial 
Management's Web site at the following address: http://www.osec.doc.gov/ofm/OFM_Publications.html.

SUPPLEMENTARY INFORMATION: 

Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. 
L. 101-410; 28 U.S.C. 2461), as amended by the Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134), provided for adjustments for 
inflation to CMPs to ensure that CMPs continue to maintain their 
deterrent value and that CMPs due to the Federal Government were 
properly accounted for and collected. On October 24, 1996, November 1, 
2000, December 14, 2004, December 11, 2008, and December 7, 2012, 
Commerce Department published in the Federal Register a schedule of 
CMPs adjusted for inflation as required by law.
    A CMP is defined as any penalty, fine, or other sanction that:
    1. Is for a specific monetary amount as provided by Federal law, or 
has a maximum amount provided for by Federal law; and,
    2. Is assessed or enforced by an agency pursuant to Federal law; 
and,
    3. Is assessed or enforced pursuant to an administrative proceeding 
or a civil action in the Federal courts.
    On November 2, 2015, the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (Section 701 of Pub. L. 114-74) 
further amended the Federal Civil Penalties Inflation Adjustment Act of 
1990 to improve the effectiveness of CMPs and to maintain their 
deterrent effect. This amendment requires agencies to: (1) Adjust the 
CMP levels in effect as of November 2, 2015, with initial catch up 
adjustments for inflation through an interim final rulemaking; and (2) 
make subsequent annual adjustments for inflation to CMPs.
    Agencies are required to publish interim final rules with initial 
catch up adjustments for inflation by July 1, 2016, and the adjustments 
for inflation shall take effect no later than August 1, 2016. For each 
year thereafter, the adjustments for inflation to CMPs shall take 
effect not later than January 15.
    The maximum amount for an initial catch up adjustment for inflation 
shall not exceed 150 percent of the amount of that CMP on the date of 
enactment of the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (November 2, 2015).
    These adjustments for inflation apply only to CMPs with a dollar 
amount, and will not apply to CMPs written as functions of violations. 
These adjustments for inflation apply only to those CMPs, including 
those whose associated violation predated such adjustment, which are 
assessed by Commerce Department after the effective date of the new CMP 
level.
    For an initial catch up adjustment for inflation to a CMP, agencies 
may adjust for inflation the amount of a CMP by less than the otherwise 
required amount if after publishing a notice of proposed rulemaking and 
providing an opportunity for comment, the agency determines in a final 
rule that increasing that CMP by the otherwise required amount will 
have a negative economic impact; or the social costs of increasing that 
CMP by the otherwise required amount outweigh the benefits. The 
concurrence of the Director of the Office of Management and Budget will 
be required if the adjustment for inflation is less than the otherwise 
required amount.
    This regulation adjusts for inflation CMPs that are provided by law 
within the jurisdiction of Commerce Department. The actual CMP assessed 
for a particular violation is dependent upon a variety of factors. For 
example, the National Oceanic and Atmospheric Administration's (NOAA) 
Policy for the Assessment of Civil Administrative Penalties and Permit 
Sanctions (Penalty Policy), a compilation of NOAA internal guidelines 
that are used when assessing CMPs for violations for most of the 
statutes NOAA enforces, will be interpreted in a manner consistent with 
this regulation to maintain the deterrent effect of the CMPs. The CMP 
ranges in the Penalty Policy are intended to aid enforcement attorneys 
in determining the appropriate CMP to assess for a particular 
violation. The Penalty Policy is maintained and made available to the 
public on the NOAA Office of the General Counsel, Enforcement Section, 
Web site at: http://www.gc.noaa.gov/enforce-office3.html.
    The initial catch up adjustments for inflation to CMPs set forth in 
this regulation were determined pursuant to the revised methodology 
prescribed by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, which requires the maximum CMP, or the 
minimum and maximum CMP, as applicable, to be increased by the cost-of-
living adjustment. The term ``cost -of-living adjustment'' is defined 
by the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015. For the initial catch up adjustments for inflation to 
CMPs, the cost-of-living adjustment is the percentage (if any) for each 
CMP by which the Consumer Price Index for the month of October 2015 
exceeds the Consumer Price Index of October of the calendar year during 
which the amount of such CMP was established or adjusted under a 
provision of law other than the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of

[[Page 36456]]

2015. For subsequent adjustments for inflation to CMPs, the cost-of-
living adjustment is the percentage (if any) for each CMP by which the 
Consumer Price Index for the month of October preceding the date of the 
adjustment exceeds the Consumer Price Index for the previous month of 
October.

Classification

    Pursuant to 5 U.S.C. 553(b)B, there is good cause to issue this 
rule without prior public notice or opportunity for public comment 
because it would be impracticable and unnecessary. The Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 
701(b)(1)) requires initial catch up adjustments for inflation to CMPs 
and to provide the new CMP levels through an interim final rulemaking, 
to be published by July 1, 2016. This law also requires agencies to 
make subsequent annual adjustments for inflation to CMPs 
notwithstanding section 553 of title 5, United States Code. 
Additionally, the methodologies used for adjusting CMPs for inflation 
is given by statute, with no discretion provided to agencies regarding 
the substance of the adjustments for inflation to CMPs. Commerce 
Department is charged only with performing ministerial computations to 
determine the dollar amount of adjustments for inflation to CMPs. 
Accordingly, prior public notice and comment are not required for this 
rule.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised recordkeeping or reporting requirements.

Regulatory Analysis

E.O. 12866, Regulatory Review

    This rule is not a significant regulatory action as the term is 
defined in Executive Order 12866.

Regulatory Flexibility Act

    Because notice of proposed rulemaking and opportunity for comment 
are not required pursuant to 5 U.S.C. 553, or any other law, the 
analytical requirements of the Regulatory Flexibility act (5 U.S.C. 
601, et seq.) are inapplicable. Therefore, a regulatory flexibility 
analysis is not required and has not been prepared.

List of Subjects in 15 CFR Part 6

    Law enforcement, Civil monetary penalties.

    Dated: May 31, 2016.
Jennifer Ayers,
Acting Deputy Chief Financial Officer and Director for Financial 
Management, Department of Commerce.

Authority and Issuance

0
For the reasons stated in the preamble, Commerce Department revises 15 
CFR part 6 to read as follows:

PART 6--CIVIL MONETARY PENALTY ADJUSTMENTS FOR INFLATION

Sec.
Sec.  6.1 Definitions.
Sec.  6.2 Purpose and scope.
Sec.  6.3 Limitation on initial catch up adjustments for inflation.
Sec.  6.4 Adjustments for inflation.
Sec.  6.5 Effective date of adjustments for inflation.
Sec.  6.6 Subsequent adjustments for inflation.

    Authority:  Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Pub. L. 104-134, 110 Stat. 1321 (31 U.S.C. 3701 note); Sec. 
701 of Pub. L. 114-74, 129 Stat. 599 (28 U.S.C. 1 note; 28 U.S.C. 
2461 note).


Sec.  6.1  Definitions.

    (a) Commerce Department means the United States Department of 
Commerce.
    (b) Civil Monetary Penalty means any penalty, fine, or other 
sanction that:
    (1) Is for a specific monetary amount as provided by Federal law, 
or has a maximum amount provided for by Federal law; and
    (2) Is assessed or enforced by an agency pursuant to Federal law; 
and
    (3) Is assessed or enforced pursuant to an administrative 
proceeding or a civil action in the Federal courts.


Sec.  6.2  Purpose and scope.

    The purpose of this part is to make adjustments for inflation to 
civil monetary penalties, as required by the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410; 28 U.S.C. 2461), as 
amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-
134) and the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Section 701 of Pub. L. 114-74), of each civil 
monetary penalty provided by law within the jurisdiction of the United 
States Department of Commerce (Commerce Department).


Sec.  6.3  Limitation on initial catch up adjustments for inflation.

    The initial catch up adjustment for inflation to a civil monetary 
penalty shall not exceed 150 percent of the amount of that civil 
monetary penalty that was in effect as of November 2, 2015.


Sec.  6.4  Adjustments for inflation.

    The civil monetary penalties provided by law within the 
jurisdiction of Commerce Department, as set forth in paragraphs (a) 
through (f) of this section, are hereby adjusted for inflation in 
accordance with the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended, from the amount of such civil monetary penalties that 
was in effect as of November 2, 2015, to the amounts of such civil 
monetary penalties, as thus adjusted. The year stated in parenthesis 
represents the year that the civil monetary penalty was last set by law 
or adjusted by law (excluding adjustments for inflation).
    (a) United States Department of Commerce. (1) 31 U.S.C. 3802(a)(1), 
Program Fraud Civil Remedies Act of 1986 (1986), violation, maximum 
from $5,500 to $10,781.
    (2) 31 U.S.C. 3802(a)(2), Program Fraud Civil Remedies Act of 1986 
(1986; newly reported penalty), violation, maximum $10,781.
    (3) 31 U.S.C. 3729(a)(1)(G), False Claims Act (1986); violation, 
minimum from $5,500 to $10,781; maximum from $11,000 to $21,563.
    (b) Bureau of Industry and Security. (1) 15 U.S.C. 5408(b)(1), 
Fastener Quality Act (1990), violation, maximum from $32,500 to 
$44,539.
    (2) 22 U.S.C. 6761(a)(1)(A), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $25,000 to $36,256.
    (3) 22 U.S.C. 6761(a)(l)(B), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $5,000 to $7,251.
    (4) 50 U.S.C. 1705(b), International Emergency Economic Powers Act 
(2007), violation, maximum $284,582.
    (5) 22 U.S.C. 8142(a), United States Additional Protocol 
Implementation Act (2006), violation, maximum from $27,500 to $29,464.
    (c) Census Bureau. (1) 13 U.S.C. 304, Collection of Foreign Trade 
Statistics (2002), each day's delinquency of a violation; total of not 
to exceed maximum violation, from $1,000 to $1,312; maximum per 
violation, from $10,000 to $13,118.
    (2) 13 U.S.C. 305(b), Collection of Foreign Trade Statistics 
(2002), violation, maximum from $10,000 to $13,118.
    (d) Economics and Statistics Administration. (1) 22 U.S.C. 3105(a), 
International Investment and Trade in Services Act (1990); failure to 
furnish information, minimum from $2,500 to $4,454; maximum from 
$32,500 to $44,539.
    (e) International Trade Administration. (1) 19 U.S.C. 81s,

[[Page 36457]]

Foreign Trade Zone (1934), violation, maximum from $1,100 to $2,750.
    (2) 19 U.S.C. 1677f(f)(4), U.S.-Canada FTA Protective Order (1988), 
violation, maximum from $130,000 to $197,869.
    (f) National Oceanic and Atmospheric Administration. (1) 51 U.S.C. 
60123(a), Land Remote Sensing Policy Act of 2010 (2010), violation, 
maximum from $10,000 to $10,874.
    (2) 51 U.S.C. 60148(c), Land Remote Sensing Policy Act of 2010 
(2010), violation, maximum from $10,000 to $10,874.
    (3) 16 U.S.C. 773f(a), Northern Pacific Halibut Act of 1982 (2007), 
violation, maximum from $200,000 to $227,666.
    (4) 16 U.S.C. 783, Sponge Act (1914), violation, maximum from $650 
to $1,625.
    (5) 16 U.S.C. 957(d), (e), and (f), Tuna Conventions Act of 1950 
(1962):
    (i) Violation of 16 U.S.C. 957(a), maximum from $32,500 to $81,250.
    (ii) Subsequent violation of 16 U.S.C. 957(a), maximum from $70,000 
to $175,000.
    (iii) Violation of 16 U.S.C. 957(b), maximum from $1,100 to $2,750.
    (iv) Subsequent violation of 16 U.S.C. 957(b), maximum from $6,500 
to $16,250.
    (v) Violation of 16 U.S.C. 957(c), maximum from $140,000 to 
$350,000.
    (6) 16 U.S.C. 957(i), Tuna Conventions Act of 1950 \1\ (new 
penalty), violation, maximum $178,156.
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    \1\ This National Oceanic and Atmospheric Administration maximum 
civil monetary penalty, as prescribed by law, is the maximum civil 
penalty per 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation 
and Management Act civil monetary penalty (item (15)).
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    (7) 16 U.S.C. 959, Tuna Conventions Act of 1950 \2\ (new penalty), 
violation, maximum $178,156.
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    \2\ See footnote 1.
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    (8) 16 U.S.C. 971f(a), Atlantic Tunas Convention Act of 1975,\3\ 
violation, maximum from $140,000 to $178,156.
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    \3\ See footnote 1.
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    (9) 16 U.S.C. 973f(a), South Pacific Tuna Act of 1988 (1988), 
violation, maximum from $350,000 to $494,672.
    (10) 16 U.S.C. 1174(b), Fur Seal Act Amendments of 1983 (1983), 
violation, maximum from $11,000 to $23,548.
    (11) 16 U.S.C. 1375(a)(1), Marine Mammal Protection Act of 1972 
(1972), violation, maximum from $11,000 to $27,500.
    (12) 16 U.S.C. 1385(e), Dolphin Protection Consumer Information 
Act,\4\ violation, maximum from $130,000 to $178,156.
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    \4\ This National Oceanic and Atmospheric Administration maximum 
civil monetary penalty was revised by law in 2015 to be the maximum 
civil penalty per 16 U.S.C. 1858(a), Magnuson-Stevens Fishery 
Conservation and Management Act civil monetary penalty (item (15)).
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    (13) 16 U.S.C. 1437(d)(1), National Marine Sanctuaries Act (1992), 
violation, maximum from $140,000 to $167,728.
    (14) 16 U.S.C. 1540(a)(1), Endangered Species Act of 1973:
    (i) Violation as specified (1988), maximum from $32,500 to $49,467.
    (ii) Violation as specified (1988), maximum from $13,200 to 
$23,744.
    (iii) Otherwise violation (1978), maximum from $650 to $1,625.
    (15) 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation and 
Management Act (1990), violation, maximum from $140,000 to $178,156.
    (16) 16 U.S.C. 2437(a), Antarctic Marine Living Resources 
Convention Act of 1984,\5\ violation, maximum from $6,500 to $178,156.
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    \5\ See footnote 4.
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    (17) 16 U.S.C. 2465(a), Antarctic Protection Act of 1990,\6\ 
violation, maximum from $6,500 to $178,156.
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    \6\ See footnote 4.
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    (18) 16 U.S.C. 3373(a), Lacey Act Amendments of 1981 (1981):
    (i) 16 U.S.C. 3373(a)(1), violation, maximum from $11,000 to 
$25,464.
    (ii) 16 U.S.C. 3373(a)(2), violation, maximum from $275 to $637.
    (19) 16 U.S.C. 3606(b)(1), Atlantic Salmon Convention Act of 
1982,\7\ violation, maximum from $140,000 to $178,156.
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    \7\ See footnote 1.
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    (20) 16 U.S.C. 3637(b), Pacific Salmon Treaty Act of 1985,\8\ 
violation, maximum from $140,000 to $178,156.
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    \8\ See footnote 1.
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    (21) 16 U.S.C. 4016(b)(1)(B), Fish and Seafood Promotion Act of 
1986 (1986); violation, minimum from $500 to $1,078; maximum from 
$6,500 to $10,781.
    (22) 16 U.S.C. 5010, North Pacific Anadromous Stocks Act of 
1992,\9\ violation, maximum from $130,000 to $178,156.
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    \9\ See footnote 4.
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    (23) 16 U.S.C. 5103(b)(2), Atlantic Coastal Fisheries Cooperative 
Management Act,\10\ violation, maximum from $140,000 to $178,156.
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    \10\ See footnote 1.
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    (24) 16 U.S.C. 5154(c)(1), Atlantic Striped Bass Conservation 
Act,\11\ violation, maximum from $140,000 to $178,156.
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    \11\ See footnote 1.
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    (25) 16 U.S.C. 5507(a), High Seas Fishing Compliance Act of 1995 
(1995), violation, maximum from $130,000 to $154,742.
    (26) 16 U.S.C. 5606(b), Northwest Atlantic Fisheries Convention Act 
of 1995,\12\ violation, maximum from $140,000 to $178,156.
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    \12\ See footnote 1.
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    (27) 16 U.S.C. 6905(c), Western and Central Pacific Fisheries 
Convention Implementation Act,\13\ violation, maximum from $140,000 to 
$178,156.
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    \13\ See footnote 1.
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    (28) 16 U.S.C. 7009(c) and (d), Pacific Whiting Act of 2006,\14\ 
violation, maximum from $140,000 to $178,156.
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    \14\ See footnote 1.
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    (29) 22 U.S.C. 1978(e), Fishermen's Protective Act of 1967 (1971):
    (i) Violation, maximum from $11,000 to $27,500.
    (ii) Subsequent violation, maximum from $32,500 to $81,250.
    (30) 30 U.S.C. 1462(a), Deep Seabed Hard Mineral Resources Act 
(1980), violation, maximum, from $32,500 to $70,117.
    (31) 42 U.S.C. 9152(c), Ocean Thermal Energy Conversion Act of 1980 
(1980), violation, maximum from $32,500 to $70,117.
    (32) 16 U.S.C. 1827a, Billfish Conservation Act of 2012 \15\ (new 
penalty), violation, maximum $178,156.
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    \15\ See footnote 1.
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    (33) 16 U.S.C. 7407(b)(1), Port State Measures Agreement Act of 
2015 \16\ (new penalty), violation, maximum $178,156.
---------------------------------------------------------------------------

    \16\ See footnote 1.
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    (34) 16 U.S.C. 1826g(f), High Seas Driftnet Fishing Moratorium 
Protection Act \17\ (new penalty), violation, maximum $178,156.
---------------------------------------------------------------------------

    \17\ See footnote 1.
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Sec.  6.5  Effective date of adjustments for inflation.

    The adjustments for inflation made by Sec.  6.4, of the civil 
monetary penalties there specified, are effective on July 7, 2016, and 
said civil monetary penalties, as thus adjusted by the adjustments for 
inflation made by Sec.  6.4, apply only to those civil monetary 
penalties, including those whose associated violation predated such 
adjustment, which are assessed by Commerce Department after the 
effective date of the new civil monetary penalty level, and before the 
effective date of any future adjustments for inflation to civil 
monetary penalties thereto made subsequent to July 7, 2016 as provided 
in Sec.  6.6.


Sec.  6.6  Subsequent adjustments for inflation.

    The Secretary of Commerce or his or her designee by regulation 
shall make subsequent adjustments for inflation to Commerce 
Department's civil monetary penalties annually, which shall take effect 
not later than January 15, 2017,

[[Page 36458]]

and for each year thereafter, notwithstanding section 553 of title 5, 
United States Code.
[FR Doc. 2016-13231 Filed 6-6-16; 8:45 am]
 BILLING CODE 3510-DP-P



                                                36454                Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Rules and Regulations

                                                Adoption of the Amendment                               (h) Alternative Methods of Compliance                    Issued in Renton, Washington, on May 20,
                                                                                                        (AMOCs)                                                2016.
                                                  Accordingly, under the authority                         (1) The Manager, Seattle Aircraft                   Victor Wicklund,
                                                delegated to me by the Administrator,                   Certification Office (ACO), FAA, has the               Acting Manager, Transport Airplane
                                                the FAA amends 14 CFR part 39 as                        authority to approve AMOCs for this AD, if             Directorate, Aircraft Certification Service.
                                                follows:                                                requested using the procedures found in 14             [FR Doc. 2016–12842 Filed 6–6–16; 8:45 am]
                                                                                                        CFR 39.19. In accordance with 14 CFR 39.19,            BILLING CODE 4910–13–P
                                                PART 39—AIRWORTHINESS                                   send your request to your principal inspector
                                                DIRECTIVES                                              or local Flight Standards District Office, as
                                                                                                        appropriate. If sending information directly
                                                                                                        to the manager of the ACO, send it to the              DEPARTMENT OF COMMERCE
                                                ■ 1. The authority citation for part 39
                                                continues to read as follows:                           attention of the person identified in
                                                                                                        paragraph (i) of this AD. Information may be           Office of the Secretary
                                                    Authority: 49 U.S.C. 106(g), 40113, 44701.          emailed to: 9-ANM-Seattle-ACO-AMOC-
                                                                                                        Requests@faa.gov.                                      15 CFR Part 6
                                                § 39.13     [Amended]
                                                                                                           (2) Before using any approved AMOC,                 [Docket No. 160523449–6449–01]
                                                ■ 2. The FAA amends § 39.13 by adding                   notify your appropriate principal inspector,
                                                                                                        or lacking a principal inspector, the manager          RIN 0605–AA44
                                                the following new airworthiness
                                                                                                        of the local flight standards district office/
                                                directive (AD):                                         certificate holding district office.                   Civil Monetary Penalty Adjustments for
                                                2016–11–17 The Boeing Company:                             (3) An AMOC that provides an acceptable             Inflation
                                                    Amendment 39–18544 ; Docket No.                     level of safety may be used for any repair
                                                    FAA–2015–3987; Directorate Identifier               required by this AD if it is approved by the           AGENCY:  Office of the Chief Financial
                                                    2015–NM–066–AD.                                     Boeing Commercial Airplanes Organization               Officer and Assistant Secretary for
                                                                                                        Designation Authorization (ODA) that has               Administration, Department of
                                                (a) Effective Date
                                                                                                        been authorized by the Manager, Seattle                Commerce.
                                                    This AD is effective July 12, 2016.                 ACO, to make those findings. For a repair              ACTION: Interim final rule with request
                                                (b) Affected ADs                                        method to be approved, the repair must meet            for comments.
                                                                                                        the certification basis of the airplane, and the
                                                    None.                                               approval must specifically refer to this AD.           SUMMARY:    This interim final rule is
                                                (c) Applicability                                       (i) Related Information                                being issued to adjust for inflation each
                                                   This AD applies to certain The Boeing                  For more information about this AD,                  civil monetary penalty (CMP) provided
                                                Company Model 787–8 airplanes, certificated             contact Sean J. Schauer, Aerospace Engineer,           by law within the jurisdiction of the
                                                in any category, as identified in Boeing Alert          Systems and Equipment Branch, ANM–130S,                Department of Commerce (Commerce
                                                Service Bulletin B787–81205–SB270024–00,                FAA, Seattle ACO, 1601 Lind Avenue SW.,                Department). The Federal Civil
                                                Issue 001, dated September 24, 2014.                    Renton, WA 98057–3356; phone: 425–917–                 Penalties Inflation Adjustment Act of
                                                (d) Subject                                             6479; fax: 425–917–6590; email:                        1990, as amended by the Debt
                                                                                                        sean.schauer@faa.gov.                                  Collection Improvement Act of 1996
                                                 Air Transport Association (ATA) of
                                                America Code 24, Electrical power.                      (j) Material Incorporated by Reference                 and the Federal Civil Penalties Inflation
                                                                                                                                                               Adjustment Act Improvements Act of
                                                (e) Unsafe Condition                                       (1) The Director of the Federal Register
                                                                                                                                                               2015, requires the head of each agency
                                                                                                        approved the incorporation by reference
                                                  This AD was prompted by a report of wire              (IBR) of the service information listed in this        to adjust for inflation its CMP levels in
                                                chafing caused by a left wing spoiler actuator          paragraph under 5 U.S.C. 552(a) and 1 CFR              effect as of November 2, 2015, under a
                                                wire not having enough separation from a                part 51.                                               revised methodology effective for 2016
                                                certain bracket when the spoiler is in the                 (2) You must use this service information           which provides for initial catch up
                                                deployed position. We are issuing this AD to                                                                   adjustments for inflation in 2016, and
                                                                                                        as applicable to do the actions required by
                                                detect and correct wire chafing; such chafing
                                                                                                        this AD, unless the AD specifies otherwise.            under a revised methodology for each
                                                could result in an electrical short and
                                                                                                           (i) Boeing Alert Service Bulletin B787–             year thereafter. The revised
                                                potential fire in a flammable fluid leakage
                                                                                                        81205–SB270024–00, Issue 001, dated                    methodologies provide for the
                                                zone and possible loss of several functions
                                                                                                        September 24, 2014.                                    improvement of the effectiveness of
                                                essential for safe flight.
                                                                                                           (ii) Reserved.                                      CMPs and to maintain their deterrent
                                                (f) Compliance                                             (3) For Boeing service information
                                                                                                                                                               effect. The initial catch up adjustment
                                                  Comply with this AD within the                        identified in this AD, contact Boeing
                                                                                                        Commercial Airplanes, Attention: Data &
                                                                                                                                                               for inflation of a CMP in 2016 shall not
                                                compliance times specified, unless already                                                                     exceed 150 percent of the amount of the
                                                done.                                                   Services Management, P.O. Box 3707, MC
                                                                                                        2H–65, Seattle, WA 98124–2207; telephone               CMP on the date of enactment of the
                                                (g) Wire Separation Measurement, Related                206–544–5000, extension 1; fax 206–766–                Federal Civil Penalties Inflation
                                                Investigative Actions, and Corrective                   5680; Internet https://                                Adjustment Act Improvements Act of
                                                Actions                                                 www.myboeingfleet.com.                                 2015 (November 2, 2015). The initial
                                                   Within 24 months after the effective date               (4) You may view this service information           catch up adjustments for inflation to
                                                of this AD: Measure the separation between              at the FAA, Transport Airplane Directorate,            CMPs are required to be published
                                                the electro-mechanical actuator wire                    1601 Lind Avenue SW., Renton, WA. For                  through an interim final rule not later
                                                W801182 of the left wing, spoiler 4, and the            information on the availability of this                than July 1, 2016, and the adjustments
                                                support bracket of the flap variable camber             material at the FAA, call 425–227–1221.                for inflation shall take effect not later
jstallworth on DSK7TPTVN1PROD with RULES




                                                trim unit, and do all applicable related                   (5) You may view this service information
                                                                                                                                                               than August 1, 2016. For each year
                                                investigative and corrective actions, in                that is incorporated by reference at the
                                                accordance with the Accomplishment                      National Archives and Records                          thereafter, the adjustments for inflation
                                                Instructions of Boeing Alert Service Bulletin           Administration (NARA). For information on              to CMPs shall take effect not later than
                                                B787–81205–SB270024–00, Issue 001, dated                the availability of this material at NARA, call        January 15. These adjustments for
                                                September 24, 2014. Do all applicable related           202–741–6030, or go to: http://                        inflation apply only to CMPs with a
                                                investigative and corrective actions before             www.archives.gov/federal-register/cfr/ibr-             dollar amount, and will not apply to
                                                further flight.                                         locations.html.                                        CMPs written as functions of violations.


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                                                                    Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Rules and Regulations                                          36455

                                                These adjustments for inflation apply                   Background                                                For an initial catch up adjustment for
                                                only to those CMPs, including those                        The Federal Civil Penalties Inflation               inflation to a CMP, agencies may adjust
                                                whose associated violation predated                     Adjustment Act of 1990 (Pub. L. 101–                   for inflation the amount of a CMP by
                                                such adjustment, which are assessed by                  410; 28 U.S.C. 2461), as amended by the                less than the otherwise required amount
                                                Commerce Department after the                           Debt Collection Improvement Act of                     if after publishing a notice of proposed
                                                effective date of the new CMP level.                    1996 (Pub. L. 104–134), provided for                   rulemaking and providing an
                                                DATES: This rule is effective July 7,                   adjustments for inflation to CMPs to                   opportunity for comment, the agency
                                                2016; comments must be received on or                   ensure that CMPs continue to maintain                  determines in a final rule that increasing
                                                before July 7, 2016.                                                                                           that CMP by the otherwise required
                                                                                                        their deterrent value and that CMPs due
                                                ADDRESSES: You may submit comments,                                                                            amount will have a negative economic
                                                                                                        to the Federal Government were
                                                identified by the regulations.gov docket                                                                       impact; or the social costs of increasing
                                                                                                        properly accounted for and collected.
                                                number DOC–2016–0004, by any of the                                                                            that CMP by the otherwise required
                                                                                                        On October 24, 1996, November 1, 2000,
                                                following methods:                                                                                             amount outweigh the benefits. The
                                                                                                        December 14, 2004, December 11, 2008,
                                                   • Electronic Submissions: Submit all                                                                        concurrence of the Director of the Office
                                                                                                        and December 7, 2012, Commerce
                                                electronic public comments via the                                                                             of Management and Budget will be
                                                                                                        Department published in the Federal
                                                Federal eRulemaking Portal. Go to                                                                              required if the adjustment for inflation
                                                                                                        Register a schedule of CMPs adjusted
                                                www.regulations.gov/                                                                                           is less than the otherwise required
                                                                                                        for inflation as required by law.
                                                #!docketDetail;D=DOC-2016-0004 click                                                                           amount.
                                                                                                           A CMP is defined as any penalty, fine,                 This regulation adjusts for inflation
                                                the ‘‘Comment Now’’ icon, complete the                  or other sanction that:
                                                required fields, and enter or attach your                                                                      CMPs that are provided by law within
                                                                                                           1. Is for a specific monetary amount                the jurisdiction of Commerce
                                                comments.                                               as provided by Federal law, or has a
                                                   • Mail: Acting Deputy Chief Financial                                                                       Department. The actual CMP assessed
                                                                                                        maximum amount provided for by                         for a particular violation is dependent
                                                Officer, Office of Financial                            Federal law; and,
                                                Management, Department of Commerce,                                                                            upon a variety of factors. For example,
                                                                                                           2. Is assessed or enforced by an                    the National Oceanic and Atmospheric
                                                1401 Constitution Ave NW., Room                         agency pursuant to Federal law; and,
                                                D200, Washington, DC 20230.                                                                                    Administration’s (NOAA) Policy for the
                                                                                                           3. Is assessed or enforced pursuant to              Assessment of Civil Administrative
                                                   Instructions: You must submit                        an administrative proceeding or a civil
                                                comments by one of the above methods                                                                           Penalties and Permit Sanctions (Penalty
                                                                                                        action in the Federal courts.                          Policy), a compilation of NOAA internal
                                                to ensure that Commerce Department                         On November 2, 2015, the Federal
                                                receives the comments and considers                                                                            guidelines that are used when assessing
                                                                                                        Civil Penalties Inflation Adjustment Act               CMPs for violations for most of the
                                                them. Comments sent by any other                        Improvements Act of 2015 (Section 701
                                                method, to any other address or                                                                                statutes NOAA enforces, will be
                                                                                                        of Pub. L. 114–74) further amended the                 interpreted in a manner consistent with
                                                individual, or received after the end of                Federal Civil Penalties Inflation
                                                the comment period, may not be                                                                                 this regulation to maintain the deterrent
                                                                                                        Adjustment Act of 1990 to improve the                  effect of the CMPs. The CMP ranges in
                                                considered. All comments received are                   effectiveness of CMPs and to maintain
                                                a part of the public record and will                                                                           the Penalty Policy are intended to aid
                                                                                                        their deterrent effect. This amendment                 enforcement attorneys in determining
                                                generally be posted to http://                          requires agencies to: (1) Adjust the CMP               the appropriate CMP to assess for a
                                                www.regulations.gov without change.                     levels in effect as of November 2, 2015,               particular violation. The Penalty Policy
                                                All Personal Identifying Information (for               with initial catch up adjustments for                  is maintained and made available to the
                                                example, name, address, etc.)                           inflation through an interim final                     public on the NOAA Office of the
                                                voluntarily submitted by the commenter                  rulemaking; and (2) make subsequent                    General Counsel, Enforcement Section,
                                                may be publicly accessible. Do not                      annual adjustments for inflation to                    Web site at: http://www.gc.noaa.gov/
                                                submit Confidential Business                            CMPs.                                                  enforce-office3.html.
                                                Information or otherwise sensitive or                      Agencies are required to publish                       The initial catch up adjustments for
                                                protected information.                                  interim final rules with initial catch up              inflation to CMPs set forth in this
                                                   Commerce Department will accept                      adjustments for inflation by July 1,                   regulation were determined pursuant to
                                                anonymous comments (enter ‘‘N/A’’ in                    2016, and the adjustments for inflation                the revised methodology prescribed by
                                                the required fields if you wish to remain               shall take effect no later than August 1,              the Federal Civil Penalties Inflation
                                                anonymous). Attachments to electronic                   2016. For each year thereafter, the                    Adjustment Act Improvements Act of
                                                comments will be accepted in Microsoft                  adjustments for inflation to CMPs shall                2015, which requires the maximum
                                                Word, Excel, WordPerfect, or Adobe                      take effect not later than January 15.                 CMP, or the minimum and maximum
                                                PDF file formats only.                                     The maximum amount for an initial                   CMP, as applicable, to be increased by
                                                FOR FURTHER INFORMATION CONTACT:                        catch up adjustment for inflation shall                the cost-of-living adjustment. The term
                                                Jennifer Ayers, Acting Deputy Chief                     not exceed 150 percent of the amount of                ‘‘cost -of-living adjustment’’ is defined
                                                Financial Officer and Director for                      that CMP on the date of enactment of                   by the Federal Civil Penalties Inflation
                                                Financial Management, Office of                         the Federal Civil Penalties Inflation                  Adjustment Act Improvements Act of
                                                Financial Management, at (202) 482–                     Adjustment Act Improvements Act of                     2015. For the initial catch up
                                                1207, Department of Commerce, 1401                      2015 (November 2, 2015).                               adjustments for inflation to CMPs, the
                                                Constitution Avenue NW., Room D200,                        These adjustments for inflation apply               cost-of-living adjustment is the
                                                Washington, DC 20230. The Commerce                      only to CMPs with a dollar amount, and                 percentage (if any) for each CMP by
                                                Department Civil Monetary Penalties;                    will not apply to CMPs written as                      which the Consumer Price Index for the
jstallworth on DSK7TPTVN1PROD with RULES




                                                Adjustment for Inflation are available                  functions of violations. These                         month of October 2015 exceeds the
                                                for downloading from Commerce                           adjustments for inflation apply only to                Consumer Price Index of October of the
                                                Department, Office of Financial                         those CMPs, including those whose                      calendar year during which the amount
                                                Management’s Web site at the following                  associated violation predated such                     of such CMP was established or
                                                address: http://www.osec.doc.gov/ofm/                   adjustment, which are assessed by                      adjusted under a provision of law other
                                                OFM_Publications.html.                                  Commerce Department after the                          than the Federal Civil Penalties Inflation
                                                SUPPLEMENTARY INFORMATION:                              effective date of the new CMP level.                   Adjustment Act Improvements Act of


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                                                36456               Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Rules and Regulations

                                                2015. For subsequent adjustments for                      Dated: May 31, 2016.                                 § 6.4   Adjustments for inflation.
                                                inflation to CMPs, the cost-of-living                   Jennifer Ayers,                                           The civil monetary penalties provided
                                                adjustment is the percentage (if any) for               Acting Deputy Chief Financial Officer and              by law within the jurisdiction of
                                                each CMP by which the Consumer Price                    Director for Financial Management,                     Commerce Department, as set forth in
                                                Index for the month of October                          Department of Commerce.                                paragraphs (a) through (f) of this section,
                                                preceding the date of the adjustment                                                                           are hereby adjusted for inflation in
                                                                                                        Authority and Issuance
                                                exceeds the Consumer Price Index for                                                                           accordance with the Federal Civil
                                                the previous month of October.                          ■ For the reasons stated in the preamble,              Penalties Inflation Adjustment Act of
                                                Classification                                          Commerce Department revises 15 CFR                     1990, as amended, from the amount of
                                                                                                        part 6 to read as follows:                             such civil monetary penalties that was
                                                  Pursuant to 5 U.S.C. 553(b)B, there is                                                                       in effect as of November 2, 2015, to the
                                                good cause to issue this rule without                   PART 6—CIVIL MONETARY PENALTY                          amounts of such civil monetary
                                                prior public notice or opportunity for                  ADJUSTMENTS FOR INFLATION                              penalties, as thus adjusted. The year
                                                public comment because it would be                                                                             stated in parenthesis represents the year
                                                impracticable and unnecessary. The                      Sec.
                                                                                                                                                               that the civil monetary penalty was last
                                                Federal Civil Penalties Inflation                       § 6.1 Definitions.
                                                                                                        § 6.2 Purpose and scope.                               set by law or adjusted by law (excluding
                                                Adjustment Act Improvements Act of                                                                             adjustments for inflation).
                                                2015 (Section 701(b)(1)) requires initial               § 6.3 Limitation on initial catch up
                                                                                                             adjustments for inflation.                           (a) United States Department of
                                                catch up adjustments for inflation to                   § 6.4 Adjustments for inflation.                       Commerce. (1) 31 U.S.C. 3802(a)(1),
                                                CMPs and to provide the new CMP                         § 6.5 Effective date of adjustments for                Program Fraud Civil Remedies Act of
                                                levels through an interim final                              inflation.                                        1986 (1986), violation, maximum from
                                                rulemaking, to be published by July 1,                  § 6.6 Subsequent adjustments for inflation.            $5,500 to $10,781.
                                                2016. This law also requires agencies to                                                                          (2) 31 U.S.C. 3802(a)(2), Program
                                                                                                          Authority: Pub. L. 101–410, 104 Stat. 890
                                                make subsequent annual adjustments                      (28 U.S.C. 2461 note); Pub. L. 104–134, 110            Fraud Civil Remedies Act of 1986 (1986;
                                                for inflation to CMPs notwithstanding                   Stat. 1321 (31 U.S.C. 3701 note); Sec. 701 of          newly reported penalty), violation,
                                                section 553 of title 5, United States                   Pub. L. 114–74, 129 Stat. 599 (28 U.S.C. 1             maximum $10,781.
                                                Code. Additionally, the methodologies                   note; 28 U.S.C. 2461 note).                               (3) 31 U.S.C. 3729(a)(1)(G), False
                                                used for adjusting CMPs for inflation is                                                                       Claims Act (1986); violation, minimum
                                                given by statute, with no discretion                    § 6.1   Definitions.
                                                                                                                                                               from $5,500 to $10,781; maximum from
                                                provided to agencies regarding the                        (a) Commerce Department means the                    $11,000 to $21,563.
                                                substance of the adjustments for                        United States Department of Commerce.                     (b) Bureau of Industry and Security.
                                                inflation to CMPs. Commerce                               (b) Civil Monetary Penalty means any                 (1) 15 U.S.C. 5408(b)(1), Fastener
                                                Department is charged only with                         penalty, fine, or other sanction that:                 Quality Act (1990), violation, maximum
                                                performing ministerial computations to                                                                         from $32,500 to $44,539.
                                                                                                          (1) Is for a specific monetary amount
                                                determine the dollar amount of                                                                                    (2) 22 U.S.C. 6761(a)(1)(A), Chemical
                                                                                                        as provided by Federal law, or has a
                                                adjustments for inflation to CMPs.                                                                             Weapons Convention Implementation
                                                                                                        maximum amount provided for by
                                                Accordingly, prior public notice and                                                                           Act (1998), violation, maximum from
                                                                                                        Federal law; and
                                                comment are not required for this rule.                                                                        $25,000 to $36,256.
                                                                                                          (2) Is assessed or enforced by an                       (3) 22 U.S.C. 6761(a)(l)(B), Chemical
                                                Paperwork Reduction Act                                 agency pursuant to Federal law; and                    Weapons Convention Implementation
                                                  The provisions of the Paperwork                         (3) Is assessed or enforced pursuant to              Act (1998), violation, maximum from
                                                Reduction Act of 1995, Public Law 104–                  an administrative proceeding or a civil                $5,000 to $7,251.
                                                13, 44 U.S.C. Chapter 35, and its                       action in the Federal courts.                             (4) 50 U.S.C. 1705(b), International
                                                implementing regulations, 5 CFR part                                                                           Emergency Economic Powers Act
                                                1320, do not apply to this rule because                 § 6.2   Purpose and scope.
                                                                                                                                                               (2007), violation, maximum $284,582.
                                                there are no new or revised                               The purpose of this part is to make                     (5) 22 U.S.C. 8142(a), United States
                                                recordkeeping or reporting                              adjustments for inflation to civil                     Additional Protocol Implementation Act
                                                requirements.                                           monetary penalties, as required by the                 (2006), violation, maximum from
                                                                                                        Federal Civil Penalties Inflation                      $27,500 to $29,464.
                                                Regulatory Analysis
                                                                                                        Adjustment Act of 1990 (Pub. L. 101–                      (c) Census Bureau. (1) 13 U.S.C. 304,
                                                E.O. 12866, Regulatory Review                           410; 28 U.S.C. 2461), as amended by the                Collection of Foreign Trade Statistics
                                                  This rule is not a significant                        Debt Collection Improvement Act of                     (2002), each day’s delinquency of a
                                                regulatory action as the term is defined                1996 (Pub. L. 104–134) and the Federal                 violation; total of not to exceed
                                                in Executive Order 12866.                               Civil Penalties Inflation Adjustment Act               maximum violation, from $1,000 to
                                                                                                        Improvements Act of 2015 (Section 701                  $1,312; maximum per violation, from
                                                Regulatory Flexibility Act                              of Pub. L. 114–74), of each civil                      $10,000 to $13,118.
                                                   Because notice of proposed                           monetary penalty provided by law                          (2) 13 U.S.C. 305(b), Collection of
                                                rulemaking and opportunity for                          within the jurisdiction of the United                  Foreign Trade Statistics (2002),
                                                comment are not required pursuant to 5                  States Department of Commerce                          violation, maximum from $10,000 to
                                                U.S.C. 553, or any other law, the                       (Commerce Department).                                 $13,118.
                                                analytical requirements of the                                                                                    (d) Economics and Statistics
                                                                                                        § 6.3 Limitation on initial catch up                   Administration. (1) 22 U.S.C. 3105(a),
                                                Regulatory Flexibility act (5 U.S.C. 601,
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                                                                                                        adjustments for inflation.
                                                et seq.) are inapplicable. Therefore, a                                                                        International Investment and Trade in
                                                regulatory flexibility analysis is not                    The initial catch up adjustment for                  Services Act (1990); failure to furnish
                                                required and has not been prepared.                     inflation to a civil monetary penalty                  information, minimum from $2,500 to
                                                                                                        shall not exceed 150 percent of the                    $4,454; maximum from $32,500 to
                                                List of Subjects in 15 CFR Part 6                       amount of that civil monetary penalty                  $44,539.
                                                  Law enforcement, Civil monetary                       that was in effect as of November 2,                      (e) International Trade
                                                penalties.                                              2015.                                                  Administration. (1) 19 U.S.C. 81s,


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                                                                    Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Rules and Regulations                                            36457

                                                Foreign Trade Zone (1934), violation,                   violation, maximum from $130,000 to                    1995,12 violation, maximum from
                                                maximum from $1,100 to $2,750.                          $178,156.                                              $140,000 to $178,156.
                                                  (2) 19 U.S.C. 1677f(f)(4), U.S.-Canada                  (13) 16 U.S.C. 1437(d)(1), National                    (27) 16 U.S.C. 6905(c), Western and
                                                FTA Protective Order (1988), violation,                 Marine Sanctuaries Act (1992),                         Central Pacific Fisheries Convention
                                                maximum from $130,000 to $197,869.                      violation, maximum from $140,000 to                    Implementation Act,13 violation,
                                                  (f) National Oceanic and Atmospheric                  $167,728.                                              maximum from $140,000 to $178,156.
                                                Administration. (1) 51 U.S.C. 60123(a),                   (14) 16 U.S.C. 1540(a)(1), Endangered                  (28) 16 U.S.C. 7009(c) and (d), Pacific
                                                Land Remote Sensing Policy Act of 2010                  Species Act of 1973:                                   Whiting Act of 2006,14 violation,
                                                (2010), violation, maximum from                           (i) Violation as specified (1988),                   maximum from $140,000 to $178,156.
                                                $10,000 to $10,874.                                     maximum from $32,500 to $49,467.                          (29) 22 U.S.C. 1978(e), Fishermen’s
                                                  (2) 51 U.S.C. 60148(c), Land Remote                     (ii) Violation as specified (1988),                  Protective Act of 1967 (1971):
                                                Sensing Policy Act of 2010 (2010),                      maximum from $13,200 to $23,744.                          (i) Violation, maximum from $11,000
                                                violation, maximum from $10,000 to                        (iii) Otherwise violation (1978),                    to $27,500.
                                                $10,874.                                                maximum from $650 to $1,625.                              (ii) Subsequent violation, maximum
                                                  (3) 16 U.S.C. 773f(a), Northern Pacific                 (15) 16 U.S.C. 1858(a), Magnuson-                    from $32,500 to $81,250.
                                                                                                        Stevens Fishery Conservation and                          (30) 30 U.S.C. 1462(a), Deep Seabed
                                                Halibut Act of 1982 (2007), violation,
                                                                                                        Management Act (1990), violation,                      Hard Mineral Resources Act (1980),
                                                maximum from $200,000 to $227,666.
                                                                                                        maximum from $140,000 to $178,156.                     violation, maximum, from $32,500 to
                                                  (4) 16 U.S.C. 783, Sponge Act (1914),
                                                                                                          (16) 16 U.S.C. 2437(a), Antarctic                    $70,117.
                                                violation, maximum from $650 to
                                                                                                        Marine Living Resources Convention                        (31) 42 U.S.C. 9152(c), Ocean Thermal
                                                $1,625.
                                                                                                        Act of 1984,5 violation, maximum from                  Energy Conversion Act of 1980 (1980),
                                                  (5) 16 U.S.C. 957(d), (e), and (f), Tuna                                                                     violation, maximum from $32,500 to
                                                Conventions Act of 1950 (1962):                         $6,500 to $178,156.
                                                                                                          (17) 16 U.S.C. 2465(a), Antarctic                    $70,117.
                                                  (i) Violation of 16 U.S.C. 957(a),                                                                              (32) 16 U.S.C. 1827a, Billfish
                                                maximum from $32,500 to $81,250.                        Protection Act of 1990,6 violation,
                                                                                                        maximum from $6,500 to $178,156.                       Conservation Act of 2012 15 (new
                                                  (ii) Subsequent violation of 16 U.S.C.                                                                       penalty), violation, maximum $178,156.
                                                957(a), maximum from $70,000 to                           (18) 16 U.S.C. 3373(a), Lacey Act
                                                                                                        Amendments of 1981 (1981):                               (33) 16 U.S.C. 7407(b)(1), Port State
                                                $175,000.                                                                                                      Measures Agreement Act of 2015 16
                                                  (iii) Violation of 16 U.S.C. 957(b),                    (i) 16 U.S.C. 3373(a)(1), violation,
                                                                                                        maximum from $11,000 to $25,464.                       (new penalty), violation, maximum
                                                maximum from $1,100 to $2,750.                                                                                 $178,156.
                                                  (iv) Subsequent violation of 16 U.S.C.                  (ii) 16 U.S.C. 3373(a)(2), violation,
                                                                                                        maximum from $275 to $637.                               (34) 16 U.S.C. 1826g(f), High Seas
                                                957(b), maximum from $6,500 to                                                                                 Driftnet Fishing Moratorium Protection
                                                $16,250.                                                  (19) 16 U.S.C. 3606(b)(1), Atlantic
                                                                                                        Salmon Convention Act of 1982,7                        Act 17 (new penalty), violation,
                                                  (v) Violation of 16 U.S.C. 957(c),                                                                           maximum $178,156.
                                                maximum from $140,000 to $350,000.                      violation, maximum from $140,000 to
                                                  (6) 16 U.S.C. 957(i), Tuna                            $178,156.                                              § 6.5 Effective date of adjustments for
                                                Conventions Act of 1950 1 (new                            (20) 16 U.S.C. 3637(b), Pacific Salmon               inflation.
                                                penalty), violation, maximum $178,156.                  Treaty Act of 1985,8 violation,                          The adjustments for inflation made by
                                                  (7) 16 U.S.C. 959, Tuna Conventions                   maximum from $140,000 to $178,156.                     § 6.4, of the civil monetary penalties
                                                Act of 1950 2 (new penalty), violation,                   (21) 16 U.S.C. 4016(b)(1)(B), Fish and               there specified, are effective on July 7,
                                                maximum $178,156.                                       Seafood Promotion Act of 1986 (1986);                  2016, and said civil monetary penalties,
                                                                                                        violation, minimum from $500 to                        as thus adjusted by the adjustments for
                                                  (8) 16 U.S.C. 971f(a), Atlantic Tunas
                                                                                                        $1,078; maximum from $6,500 to                         inflation made by § 6.4, apply only to
                                                Convention Act of 1975,3 violation,
                                                                                                        $10,781.                                               those civil monetary penalties,
                                                maximum from $140,000 to $178,156.
                                                                                                          (22) 16 U.S.C. 5010, North Pacific                   including those whose associated
                                                  (9) 16 U.S.C. 973f(a), South Pacific
                                                                                                        Anadromous Stocks Act of 1992,9                        violation predated such adjustment,
                                                Tuna Act of 1988 (1988), violation,
                                                                                                        violation, maximum from $130,000 to                    which are assessed by Commerce
                                                maximum from $350,000 to $494,672.
                                                                                                        $178,156.                                              Department after the effective date of
                                                  (10) 16 U.S.C. 1174(b), Fur Seal Act
                                                                                                          (23) 16 U.S.C. 5103(b)(2), Atlantic                  the new civil monetary penalty level,
                                                Amendments of 1983 (1983), violation,
                                                                                                        Coastal Fisheries Cooperative                          and before the effective date of any
                                                maximum from $11,000 to $23,548.
                                                                                                        Management Act,10 violation, maximum                   future adjustments for inflation to civil
                                                  (11) 16 U.S.C. 1375(a)(1), Marine
                                                                                                        from $140,000 to $178,156.                             monetary penalties thereto made
                                                Mammal Protection Act of 1972 (1972),
                                                                                                          (24) 16 U.S.C. 5154(c)(1), Atlantic                  subsequent to July 7, 2016 as provided
                                                violation, maximum from $11,000 to
                                                                                                        Striped Bass Conservation Act,11                       in § 6.6.
                                                $27,500.
                                                                                                        violation, maximum from $140,000 to
                                                  (12) 16 U.S.C. 1385(e), Dolphin                                                                              § 6.6 Subsequent adjustments for
                                                                                                        $178,156.
                                                Protection Consumer Information Act,4                                                                          inflation.
                                                                                                          (25) 16 U.S.C. 5507(a), High Seas
                                                                                                        Fishing Compliance Act of 1995 (1995),                    The Secretary of Commerce or his or
                                                  1 This National Oceanic and Atmospheric
                                                                                                        violation, maximum from $130,000 to                    her designee by regulation shall make
                                                Administration maximum civil monetary penalty,
                                                as prescribed by law, is the maximum civil penalty      $154,742.                                              subsequent adjustments for inflation to
                                                per 16 U.S.C. 1858(a), Magnuson-Stevens Fishery           (26) 16 U.S.C. 5606(b), Northwest                    Commerce Department’s civil monetary
                                                Conservation and Management Act civil monetary          Atlantic Fisheries Convention Act of                   penalties annually, which shall take
                                                penalty (item (15)).                                                                                           effect not later than January 15, 2017,
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                                                  2 See footnote 1.
                                                                                                          5 See footnote 4.
                                                  3 See footnote 1.
                                                                                                          6 See footnote 4.                                     12 See footnote 1.
                                                  4 This National Oceanic and Atmospheric
                                                                                                          7 See footnote 1.                                     13 See footnote 1.
                                                Administration maximum civil monetary penalty             8 See footnote 1.                                     14 See footnote 1.
                                                was revised by law in 2015 to be the maximum civil
                                                                                                          9 See footnote 4.                                     15 See footnote 1.
                                                penalty per 16 U.S.C. 1858(a), Magnuson-Stevens
                                                                                                          10 See footnote 1.                                    16 See footnote 1.
                                                Fishery Conservation and Management Act civil
                                                monetary penalty (item (15)).                             11 See footnote 1.                                    17 See footnote 1.




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                                                36458               Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Rules and Regulations

                                                and for each year thereafter,                           equipment capable of handling                          controls precursor chemicals identified
                                                notwithstanding section 553 of title 5,                 biological materials by updating the                   on the AG common control list that are
                                                United States Code.                                     controls on freeze-drying                              not also ‘‘scheduled’’ chemicals (i.e.,
                                                [FR Doc. 2016–13231 Filed 6–6–16; 8:45 am]              (lyophilization) equipment.                            chemicals identified as Schedule 1,
                                                BILLING CODE 3510–DP–P                                     Finally, this rule amends the EAR to                Schedule 2, or Schedule 3 chemicals)
                                                                                                        reflect the addition of Angola and                     under the Chemical Weapons
                                                                                                        Burma as States Parties to the Chemical                Convention (CWC).
                                                DEPARTMENT OF COMMERCE                                  Weapons Convention (CWC) and also                        Like the other precursor chemicals
                                                                                                        amends the Chemical Weapons                            controlled under ECCN 1C350.d,
                                                Bureau of Industry and Security                         Convention Regulations (CWCR) to                       diethylamine requires a license for
                                                                                                        reflect the addition of these two                      chemical/biological (CB) reasons to
                                                15 CFR Parts 710, 745, and 774                          countries as States Parties.                           destinations indicated under CB
                                                [Docket No. 160302176–6176–01]                          DATES: This rule is effective June 7,                  Column 2 on the Commerce Country
                                                                                                        2016.                                                  Chart (see Supplement No. 1 to part 738
                                                RIN 0694–AG88                                                                                                  of the EAR) and for anti-terrorism (AT)
                                                                                                        FOR FURTHER INFORMATION CONTACT:
                                                Implementation of the February 2015                                                                            reasons to destinations in Country
                                                                                                        Richard P. Duncan, Ph.D., Director,
                                                Australia Group (AG) Intersessional                                                                            Group E:1 (see Supplement No. 1 to part
                                                                                                        Chemical and Biological Controls
                                                Decisions and the June 2015 AG                                                                                 742 of the EAR). Because none of the
                                                                                                        Division, Office of Nonproliferation and
                                                Plenary Understandings                                                                                         precursor chemicals controlled under
                                                                                                        Treaty Compliance, Bureau of Industry
                                                                                                                                                               ECCN 1C350.d (including diethylamine)
                                                AGENCY:  Bureau of Industry and                         and Security, Telephone: (202) 482–                    are identified as ‘‘scheduled’’ chemicals
                                                Security, Commerce.                                     3343, Email: Richard.Duncan@                           under the CWC, these precursor
                                                                                                        bis.doc.gov.                                           chemicals do not require a license for
                                                ACTION: Final rule.
                                                                                                        SUPPLEMENTARY INFORMATION: The                         chemical weapons (CW) reasons. (See
                                                SUMMARY:    The Bureau of Industry and                  Bureau of Industry and Security (BIS) is               part 742 of the EAR for additional
                                                Security (BIS) publishes this final rule                amending the Export Administration                     information on the AT controls that
                                                to amend the Export Administration                      Regulations (EAR) to implement the                     apply to Iran, North Korea, Sudan, and
                                                Regulations (EAR) to implement the                      recommendations presented at the                       Syria. See part 746 of the EAR for
                                                recommendations presented at the                        Australia Group (AG) Intersessional                    additional information on the sanctions
                                                February 2015 Australia Group (AG)                      meeting held in The Hague,                             that apply to Iran, North Korea, and
                                                intersessional implementation meeting,                  Netherlands, on February 4, 2015, and                  Syria.)
                                                and later adopted pursuant to the AG                    adopted pursuant to the AG silent
                                                silent approval procedure, and the                                                                             Amendments to ECCN 1C351 (Human
                                                                                                        approval procedure in April 2015, and
                                                understandings reached at the June 2015                                                                        and Animal Pathogens and ‘‘Toxins’’)
                                                                                                        the understandings reached at the AG
                                                AG Plenary meeting. This rule amends                    Plenary meeting held in Perth,                           This final rule amends ECCN 1C351
                                                three Commerce Control List (CCL)                       Australia, from June 1–5, 2015. The AG                 on the CCL to reflect the addition of two
                                                entries to reflect the February 2015                    is a multilateral forum consisting of 41               viruses (severe acute respiratory
                                                intersessional recommendations that                     participating countries that maintain                  syndrome-related coronavirus, a.k.a.
                                                were adopted by the AG. Specifically,                   export controls on a list of chemicals,                SARS-related coronavirus, and
                                                this rule amends the CCL entry that                     biological agents, and related equipment               reconstructed 1918 influenza virus) that
                                                controls chemical precursors by adding                  and technology that could be used in a                 were not previously identified on the
                                                the chemical diethylamine (C.A.S. 109–                  chemical or biological weapons                         AG ‘‘List of Human and Animal
                                                89–7), which was not previously                         program. The AG periodically reviews                   Pathogens and Toxins for Export
                                                identified on the AG’s ‘‘Chemical                       items on its control list to enhance the               Control’’ and to update the
                                                Weapons Precursors’’ common control                     effectiveness of participating                         nomenclature for seventeen viruses that
                                                list. This rule also amends the CCL                     governments’ national controls and to                  were already identified on this AG
                                                entry that controls certain human and                   achieve greater harmonization among                    common control list and in ECCN
                                                zoonotic pathogens and toxins by                        these controls.                                        1C351.a (nineteen viruses were updated
                                                adding two viruses that were not                                                                               on the AG common control list, but only
                                                previously identified on the AG ‘‘List of               Amendments to the CCL Based on the                     seventeen viruses in ECCN 1C351.a
                                                Human and Animal Pathogens and                          February 2015 AG Intersessional                        required updating). Prior to the
                                                Toxins for Export Control’’ and by                      Recommendations                                        publication of this final rule, the two
                                                updating the nomenclature of certain                      This rule amends three Export Control                viruses that are being added to ECCN
                                                viruses that were already identified on                 Classification Numbers (ECCNs) on the                  1C351.a were listed under ECCN
                                                this AG common control list. In                         Commerce Control List (CCL) (see                       1C351.b, which controls viruses
                                                addition, this rule amends the CCL                      Supplement No. 1 to part 774 of the                    identified on the ‘‘select agents’’ lists
                                                entry that controls equipment capable of                EAR), as described below, to reflect the               maintained by the Animal and Plant
                                                handling biological materials to reflect                February 2015 intersessional                           Health Inspection Service (APHIS), U.S.
                                                the AG intersessional updates to the                    recommendations that were adopted by                   Department of Agriculture, and the
                                                controls on biocontainment chambers,                    the AG.                                                Centers for Disease Control and
                                                isolators, and biological safety cabinets                                                                      Prevention (CDC), U.S. Department of
                                                and the controls on aerosol inhalation                  Amendments to ECCN 1C350 (Precursor                    Health and Human Services, but not
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                                                equipment described on the AG                           Chemicals)                                             identified on the AG ‘‘List of Human
                                                ‘‘Control List of Dual-Use Biological                     This final rule amends ECCN 1C350                    and Animal Pathogens and Toxins for
                                                Equipment and Related Technology and                    on the CCL, to reflect the addition of the             Export Control.’’
                                                Software.’’ Consistent with the                         chemical diethylamine (C.A.S. 109–89–                    The license requirements applicable
                                                understandings adopted at the June                      7) to the AG’s ‘‘Chemical Weapons                      to the viruses affected by the
                                                2015 AG Plenary meeting, this rule also                 Precursors’’ common control list, by                   amendments in this final rule (including
                                                amends the CCL entry that controls                      adding this chemical to 1C350.d, which                 the two viruses that are being moved


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Document Created: 2018-02-08 07:31:53
Document Modified: 2018-02-08 07:31:53
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule with request for comments.
DatesThis rule is effective July 7, 2016; comments must be received on or before July 7, 2016.
ContactJennifer Ayers, Acting Deputy Chief Financial Officer and Director for Financial Management, Office of Financial Management, at (202) 482-1207, Department of Commerce, 1401 Constitution Avenue NW., Room D200, Washington, DC 20230. The Commerce Department Civil Monetary Penalties; Adjustment for Inflation are available for downloading from Commerce Department, Office of Financial
FR Citation81 FR 36454 
RIN Number0605-AA44
CFR AssociatedLaw Enforcement and Civil Monetary Penalties

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