81 FR 42554 - Adjustment of Civil Monetary Penalties To Reflect Inflation
FEDERAL COMMUNICATIONS COMMISSION Federal Register Volume 81, Issue 126 (June 30, 2016)
Federal Register Volume 81, Issue 126 (June 30, 2016)
| Page Range | 42554-42556 | |
| FR Document | 2016-14801 |
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)] [Rules and Regulations] [Pages 42554-42556] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-14801] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [DA 16-644] Adjustment of Civil Monetary Penalties To Reflect Inflation AGENCY: Federal Communications Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Inflation Adjustment Act) requires the Federal Communications Commission to amend its forfeiture penalty rules for inflation. DATES: This rule is effective August 1, 2016. FOR FURTHER INFORMATION CONTACT: Donna Cyrus, Enforcement Bureau, 202- 418-7325. SUPPLEMENTARY INFORMATION: On June 9, 2016, the Enforcement Bureau of the Federal Communications Commission adopted and released an order on delegated authority, DA 16-644, which adjusts the Commission's forfeiture penalties for inflation. On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015, which included, as Section 701 thereto, the 2015 Inflation Adjustment Act, which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410), to improve the effectiveness of civil monetary penalties and maintain their deterrent effect. Under the act, federal agencies, including the Federal Communications Commission, must issue an interim final rulemaking and publish interim final rules by July 1, 2016, which will take effect by August 1, 2016. According to the 2015 Inflation Adjustment Act, the initial inflation adjustment will be the [[Page 42555]] percentage by which the Consumer Price Index (CPI) for the month of October 2015 exceeds the CPI for the month of October of the calendar year during which the civil monetary penalty ``was established or adjusted under a provision of law other than this Act.'' The 2015 Inflation Adjustment Act requires the Director of the Office of Management and Budget (OMB) to issue, guidance to agencies on implementing the Act. OMB issued that guidance on February 24, 2016, and this Order follows that guidance. Pursuant to the 2015 Inflation Adjustment Act, we update the civil monetary penalties set forth in the Communications Act of 1934, as amended (Communications Act or Act), to reflect an ``inflation adjustment'' that derives from the ``cost-of- living adjustment.'' The cost-of-living adjustment reflects the total inflation that has taken place in the years since the penalties were last set or adjusted by statute or rule. This document does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, it does not contain any new or modified information collection burden for small business concerns with fewer than 25 employees, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4). The Commission will not send a copy of this Order per the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because the rules are amended only to account for inflation and do not substantially affect the rights or obligations of non-agency parties. List of Subjects Administrative practice and procedure, Penalties. Federal Communications Commission. Lisa S. Gelb, Chief of Staff, Enforcement Bureau. Final Rules For the reasons discussed in the preamble, the Federal Communications Commission amends 47 part 1 as follows: PART 1--PRACTICE AND PROCEDURE Subpart A--General Rules of Practice and Procedure 0 1. The authority citation for part 1 continues to read as follows: Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 155, 157, 225, 227, 303(r), and 309. 0 2. Section 1.80 is amended by revising the table following paragraph (b)(8) ``Section III. Non-Section 503 Forfeitures That Are Affected by the Downward Adjustment Factors'' and revising paragraph (b)(9) to read as follows: Sec. 1.80 Forfeiture proceedings. * * * * * Section III. Non-Section 503 Forfeitures That Are Affected by the Downward Adjustment Factors * * * * * ------------------------------------------------------------------------ Violation Statutory amount ($) ------------------------------------------------------------------------ Sec. 202(c) Common Carrier Discrimination.. $11,362, $568/day. Sec. 203(e) Common Carrier Tariffs......... 11,362, 568/day. Sec. 205(b) Common Carrier Prescriptions... 22,723. Sec. 214(d) Common Carrier Line Extensions. 2,272/day. Sec. 219(b) Common Carrier Reports......... 2,272/day. Sec. 220(d) Common Carrier Records & 11,362/day. Accounts. Sec. 223(b) Dial-a-Porn.................... 117,742. Sec. 227(e) Caller Identification.......... 10,874/violation. 32,622/ day for each day of continuing violation, up to 1,087,450 for any single act or failure to act. Sec. 364(a) Forfeitures (Ships)............ 9,468/day (owner). Sec. 364(b) Forfeitures (Ships)............ 1,894 (vessel master). Sec. 386(a) Forfeitures (Ships)............ 9,468/day (owner). Sec. 386(b) Forfeitures (Ships)............ 1,894 (vessel master). Sec. 634 Cable EEO......................... 839. ------------------------------------------------------------------------ (9) Inflation adjustments to the maximum forfeiture amount. (i) Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Inflation Adjustment Act), Public Law 114-74 (129 Stat. 599-600), which amends the Federal Civil Monetary Penalty Inflation Adjustment Act of 1990, Public Law 101-410 (104 Stat. 890; 28 U.S.C. 2461 note), the statutory maximum amount of a forfeiture penalty assessed under this section shall be adjusted for inflation with an initial ``catch-up'' adjustment through an interim final rulemaking and interim final rules published by July 1, 2016, to take effect by August 1, 2016. Subsequent annual adjustments shall be published by January 15 each year. Catch-up adjustments will be based on the `cost-of-living adjustment' (CPI), which is the percentage (if any) by which the CPI for October in the year of the previous adjustment exceeds the CPI for October 2015. Annual inflation adjustments will be based on the percentage (if any) by which the CPI for October preceding the date of the adjustment exceeds the prior year's CPI for October. The Office of Management and Budget has provided ``Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year'' (Table A) to determine the civil monetary penalty catch-up adjustment multiplier by calendar year. The Catch-up adjustment is determined by (A) Identifying from Table A, column A the latest year the penalty level or penalty range was established or last adjusted by statute or regulation (other than pursuant to the Inflation Adjustment Act), and from column B, identifying the corresponding multiplier to adjust the penalty level or range for inflation; (B) Multiplying the corresponding amount from column B by the amount of the maximum penalty level or the range of minimum and maximum penalties as most recently established or adjusted by statute or regulation (other than pursuant to the Inflation Adjustment Act before November 2, 2015); [[Page 42556]] (C) Rounding to the nearest dollar; and (D) Comparing the new amount or range of the penalty with the amount or range in the prior year to ensure the maximum increase is not more than 150 percent of the most recent levels. (ii) The application of the inflation adjustments required by the 2015 Inflation Adjustment Act, 28 U.S.C. 2461 note, results in the following adjusted statutory maximum forfeitures authorized by the Communications Act: ------------------------------------------------------------------------ Maximum penalty after 2015 inflation U.S. Code citation adjustment act adjustment ($) ------------------------------------------------------------------------ 47 U.S.C. 202(c)........................................ $11,362 568 47 U.S.C. 203(e)........................................ 11,362 568 47 U.S.C. 205(b)........................................ 22,723 47 U.S.C. 214(d)........................................ 2,272 47 U.S.C. 219(b)........................................ 2,272 47 U.S.C. 220(d)........................................ 11,362 47 U.S.C. 223(b)........................................ 117,742 47 U.S.C. 227(e)........................................ 10,874 32,622 1,087,450 47 U.S.C. 362(a)........................................ 9,468 47 U.S.C. 362(b)........................................ 1,894 47 U.S.C. 386(a)........................................ 9,468 47 U.S.C. 386(b)........................................ 1,894 47 U.S.C. 503(b)(2)(A).................................. 47,340 473,402 47 U.S.C. 503(b)(2)(B).................................. 189,361 1,893,610 47 U.S.C. 503(b)(2)(C).................................. 383,038 3,535,740 47 U.S.C. 503(b)(2)(D).................................. 18,936 142,021 108,745 47 U.S.C. 503(b)(2)(F).................................. 1,087,450 1,875 47 U.S.C. 507(a)........................................ .............. 47 U.S.C. 507(b)........................................ 275 47 U.S.C. 554........................................... 839 * * * * * * * ------------------------------------------------------------------------ [FR Doc. 2016-14801 Filed 6-29-16; 8:45 am] BILLING CODE 6712-01-P
![42554 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations
§ 506.4 Cost of living adjustments of civil ‘cost-of-living adjustment’ means the Price Index for the month of October of
monetary penalties. percentage (if any) for each civil the calendar year during which the
(a) The inflation adjustment under monetary penalty by which the amount of such civil monetary penalty
§ 506.3 will initially be determined by Consumer Price Index for the month of was established or adjusted under a
increasing the maximum civil monetary October preceding the adjustment provision of law of civil monetary
penalty for each civil monetary penalty exceeds the Consumer Price Index for penalty. The initial cost-of-living
by the initial cost-of-living adjustment. the month of October 1 year before the adjustment may not exceed 150 percent
The inflation adjustment will month of October preceding the of such penalty on November 2, 2015,
subsequently be determined by adjustment. the date of the enactment of the Federal
increasing the maximum civil monetary Civil Penalties Inflation Act Adjustment
penalty for each civil monetary penalty (c) Initial adjustment. For purposes of
paragraph (a) of this section, the term Improvements Act of 2015.
by the cost-of-living adjustment. Any
increase determined under this section ‘initial cost-of-living-adjustment’ means (d) Inflation adjustment. Maximum
shall be rounded to the nearest multiple the percentage (if any) for each civil Civil Monetary Penalties within the
of $1. monetary penalty by which the jurisdiction of the Federal Maritime
(b) Inflation adjustment. For purposes Consumer Price Index for the month of Commission are adjusted for inflation as
of paragraph (a) of this section, the term October, 2015 exceeds the Consumer follows:
New adjusted
Maximum maximum
penalty penalty
United States Code Citation Civil monetary penalty description amount prior amount as of
to August 1, August 1,
2016 2016
46 U.S.C. 42304 ........................................................... Adverse impact on U.S. carriers by foreign shipping 1,600,000 1,978,690
practices.
46 U.S.C. 41107(a) ...................................................... Knowing and Willful violation/Shipping Act of 1984, or 45,000 56,467
Commission regulation or order.
46 U.S.C. 41107(b) ...................................................... Violation of Shipping Act of 1984, Commission regula- 9,000 11,293
tion or order, not knowing and willful.
46 U.S.C. 41108(b) ...................................................... Operating in foreign commerce after tariff suspension 80,000 112,934
46 U.S.C. 42104 ........................................................... Failure to provide required reports, etc./Merchant Ma- 9,000 8,908
rine Act of 1920.
46 U.S.C. 42106 ........................................................... Adverse shipping conditions/Merchant Marine Act of 1,600,000 1,781,560
1920.
46 U.S.C. 42108 ........................................................... Operating after tariff or service contract suspension/ 80,000 89,078
Merchant Marine Act of 1920.
46 U.S.C. 44102 ........................................................... Failure to establish financial responsibility for non-per- 9,000 22,500
formance of transportation. 300 750
46 U.S.C. 44103 ........................................................... Failure to establish financial responsibility for death or 9,000 22,500
injury. 300 750
31 U.S.C. 3802(a)(1) .................................................... Program Fraud Civil Remedies Act/makes false claim 9,000 10,781
31 U.S.C. 3802(a)(2) .................................................... Program Fraud Civil Remedies Act/giving false state- 9,000 10,781
ment.
■ 5. Revise § 506.5 to read as follows: FEDERAL COMMUNICATIONS SUPPLEMENTARY INFORMATION: On June 9,
COMMISSION 2016, the Enforcement Bureau of the
§ 506.5 Application of increase to Federal Communications Commission
violations. 47 CFR Part 1 adopted and released an order on
Any adjustment in a civil monetary delegated authority, DA 16–644, which
[DA 16–644]
penalty under this part shall apply only adjusts the Commission’s forfeiture
to civil monetary penalties, including Adjustment of Civil Monetary Penalties penalties for inflation. On November 2,
those whose associated violation To Reflect Inflation 2015, the President signed into law the
predated such increase, which are Bipartisan Budget Act of 2015, which
assessed after the date the adjustment AGENCY: Federal Communications included, as Section 701 thereto, the
takes effect. Commission. 2015 Inflation Adjustment Act, which
ACTION: Final rule. amended the Federal Civil Penalties
By the Commission.
Inflation Adjustment Act of 1990 (Pub.
Rachel E. Dickon, SUMMARY: The Federal Civil Penalties L. 101–410), to improve the
Assistant Secretary. Inflation Adjustment Act Improvements effectiveness of civil monetary penalties
[FR Doc. 2016–15569 Filed 6–29–16; 8:45 am] Act of 2015 (the 2015 Inflation and maintain their deterrent effect.
Adjustment Act) requires the Federal
BILLING CODE 6731–AA–P Under the act, federal agencies,
Communications Commission to amend
srobinson on DSK5SPTVN1PROD with RULES
including the Federal Communications
its forfeiture penalty rules for inflation.
Commission, must issue an interim final
DATES: This rule is effective August 1, rulemaking and publish interim final
2016. rules by July 1, 2016, which will take
FOR FURTHER INFORMATION CONTACT: effect by August 1, 2016. According to
Donna Cyrus, Enforcement Bureau, 202– the 2015 Inflation Adjustment Act, the
418–7325. initial inflation adjustment will be the
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![42556 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations
(C) Rounding to the nearest dollar; DEPARTMENT OF DEFENSE Paragraph (a)(1) of the statute requires
and that a procurement policy, regulation,
Defense Acquisition Regulations procedure or form (including an
(D) Comparing the new amount or
System amendment or modification thereof)
range of the penalty with the amount or
range in the prior year to ensure the must be published for public comment
48 CFR Part 202 if it has either a significant effect
maximum increase is not more than 150
[Docket DARS–2016–0008] beyond the internal operating
percent of the most recent levels.
procedures of the agency issuing the
(ii) The application of the inflation RIN 0750–AI89 policy, regulation, procedure or form
adjustments required by the 2015 (including an amendment or
Inflation Adjustment Act, 28 U.S.C. Defense Federal Acquisition modification thereof) must be published
2461 note, results in the following Regulation Supplement: Deletion of for public comment if it has either a
adjusted statutory maximum forfeitures Supplemental Coverage for the significant effect beyond the internal
Definition of ‘‘Simplified Acquisition operating procedures of the agency
authorized by the Communications Act:
Threshold’’ (DFARS Case 2016–D007) issuing the policy, regulation, procedure
Maximum AGENCY: Defense Acquisition or form, or has a significant cost or
penalty after Regulations System, Department of administrative impact on contractors or
2015 inflation offerors. This final rule is not required
U.S. Code citation adjustment Defense (DoD).
act ACTION: Final rule. to be published for public comment,
adjustment because the DFARS change to remove a
($) SUMMARY: DoD is issuing a final rule definition that is being elevated to the
amending the Defense Federal FAR will not have any cost or
47 U.S.C. 202(c) ................... $11,362 Acquisition Regulation Supplement administrative impact on contractors or
568 (DFARS) to delete the supplemental offerors.
47 U.S.C. 203(e) .................. 11,362 coverage for the definition ‘‘simplified
568 III. Executive Orders 12866 and 13563
acquisition threshold.’’ Federal
47 U.S.C. 205(b) .................. 22,723
Acquisition Regulation (FAR) final rule Executive Orders (E.O.s) 12866 and
47 U.S.C. 214(d) .................. 2,272
47 U.S.C. 219(b) .................. 2,272
2015–020 added to the FAR the 13563 direct agencies to assess all costs
47 U.S.C. 220(d) .................. 11,362
simplified acquisition threshold for and benefits of available regulatory
47 U.S.C. 223(b) .................. 117,742
contracts to be awarded and performed, alternatives and, if regulation is
47 U.S.C. 227(e) .................. 10,874 or purchases to be made, outside the necessary, to select regulatory
32,622 United States in support of a approaches that maximize net benefits
1,087,450 humanitarian or peacekeeping (including potential economic,
47 U.S.C. 362(a) .................. 9,468 operation. environmental, public health and safety
47 U.S.C. 362(b) .................. 1,894 DATES: Effective June 30, 2016. effects, distributive impacts, and
47 U.S.C. 386(a) .................. 9,468 FOR FURTHER INFORMATION CONTACT: equity). E.O. 13563 emphasizes the
47 U.S.C. 386(b) .................. 1,894 Defense Acquisition Regulations importance of quantifying both costs
47 U.S.C. 503(b)(2)(A) ......... 47,340 System, Attn: Ms. Julie Hammond, and benefits, of reducing costs, of
473,402 harmonizing rules, and of promoting
OUSD (AT&L) DPAP/DARS, Room
47 U.S.C. 503(b)(2)(B) ......... 189,361 flexibility. This is not a significant
1,893,610 3B941, 3060 Defense Pentagon,
Washington, DC 20301–3060, telephone regulatory action and, therefore, was not
47 U.S.C. 503(b)(2)(C) ......... 383,038 subject to review under section 6(b) of
3,535,740 571–372–6174.
E.O. 12866, Regulatory Planning and
47 U.S.C. 503(b)(2)(D) ......... 18,936 SUPPLEMENTARY INFORMATION:
Review, dated September 30.
142,021
108,745 I. Background
IV. Applicability to Contracts at or
47 U.S.C. 503(b)(2)(F) .......... 1,087,450 DoD is amending the DFARS to delete Below the Simplified Acquisition
1,875 the supplemental definition for Threshold and for Commercial Items,
47 U.S.C. 507(a) .................. ........................ ‘‘simplified acquisition threshold’’ with Including Commercially Available Off-
47 U.S.C. 507(b) .................. 275 regard to humanitarian or peacekeeping the-Shelf Items
47 U.S.C. 554 ....................... 839 operations at DFARS part 202. This
supplemental definition was included This case does not add any new
* * * in DFARS when there was no existing provisions or clauses or impact any
* * coverage in the FAR. The simplified existing provisions or clauses.
* * acquisition threshold for humanitarian V. Regulatory Flexibility Act
[FR Doc. 2016–14801 Filed 6–29–16; 8:45 am]
or peacekeeping operations has been
added to the FAR under final rule 2015– The Regulatory Flexibility Act does
BILLING CODE 6712–01–P
020. There is no need to duplicate the not apply to this rule because this final
definition in the DFARS; therefore, this rule does not constitute a significant
rule removes the supplemental DFARS revision within the meaning of
definition at DFARS part 202. FAR 1.501–1, and 41 U.S.C. 1707 does
not require publication for public
srobinson on DSK5SPTVN1PROD with RULES
II. Publication of This Final Rule for comment.
Public Comment Is Not Required by
Statute VI. Paperwork Reduction Act
41 U.S.C. 1707, Publication of The rule does not contain any
Proposed Regulations, is the statute that information collection requirements that
applies to the publication of the Federal require the approval of the Office of
Acquisition Regulation (FAR). Management and Budget under the
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Document Created: 2018-02-08 07:45:25
Document Modified: 2018-02-08 07:45:25
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective August 1, 2016. | |
| Contact | Donna Cyrus, Enforcement Bureau, 202- 418-7325. | |
| FR Citation | 81 FR 42554 |
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