82 FR 8170 - Annual Adjustment of Civil Monetary Penalties To Reflect Inflation
FEDERAL COMMUNICATIONS COMMISSION Federal Register Volume 82, Issue 14 (January 24, 2017)
Federal Register Volume 82, Issue 14 (January 24, 2017)
| Page Range | 8170-8171 | |
| FR Document | 2017-00365 |
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)] [Rules and Regulations] [Pages 8170-8171] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00365] ======================================================================= ----------------------------------------------------------------------- FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 1 [DA 16-1453] Annual 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 to reflect annual adjustments for inflation in order to improve their effectiveness and maintain their deterrent effect. The 2015 Inflation Adjustment Act provides that the new penalty levels shall apply to penalties assessed after the effective date of the increase, including when the penalties whose associated violation predate the increase. DATES: Effective January 24, 2017. FOR FURTHER INFORMATION CONTACT: Celia Lewis, Enforcement Bureau, 202- 418-7456, or Gregory Haledjian, Enforcement Bureau, 202-418-7440. SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, DA 16-1453, adopted and released on December 30, 2016. The document is available for download at http://transition.fcc.gov/Daily_Releases/Daily_Business/2016/db1230/DA-16-1453A1.pdf. The complete text of this document is also available for inspection and copying during normal business hours in the FCC Reference Information Center, Portals II, 445 12th Street SW., Room CY-A257, Washington, DC 20554. On November 2, 2015, President Obama 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, agencies are required to make annual inflationary adjustments by January 15 each year, beginning in 2017. The adjustments are calculated pursuant to Office of Management and Budget (OMB) guidance. OMB issued guidance on December 16, 2016, and this Order follows that guidance. We therefore update the civil monetary penalties set forth in the Commission's rules, to reflect an annual inflation adjustment that derives from OMB's cost-of-living multiplier of 1.01636. The cost-of-living adjustment is ``the percentage (if any)'' by which the ``(A) Consumer Price Index for the month of October preceding the date of the adjustment, exceeds (B) the Consumer Price Index for the month of October 1 year before the month of October referred to in subparagraph (A).'' This document does not contain new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. 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 Enforcement Bureau will coordinate with the Commission's Consumer & Governmental Affairs Bureau, Reference Information Center to report this Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A). List of Subjects in 47 CFR Part 1 Administrative practice and procedure, Penalties. [[Page 8171]] 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 CFR part 1 as follows: PART 1--PRACTICE AND PROCEDURE 0 1. The authority citation for part 1 is revised to read as follows: Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 155, 157, 160, 201, 225, 227, 303, 309, 301, 332, 1403, 1404, 1451, 1452, and 1455. 0 2. Section 1.80 is amended by revising the table in Section III of the note to paragraph (b)(8) and revising paragraph (b)(9) to read as follows: Sec. 1.80 Forfeiture proceedings. * * * * * (b) * * * (8) * * * Note to paragraph (b)(8) * * * Section III. Non-Section 503 Forfeitures That Are Affected by the Downward Adjustment Factors * * * * * ------------------------------------------------------------------------ Violation Statutory amount ($) ------------------------------------------------------------------------ Sec. 202(c) Common Carrier $11,548, $577/day. Discrimination. Sec. 203(e) Common Carrier Tariffs..... $11,548, $577/day. Sec. 205(b) Common Carrier $23,095. Prescriptions. Sec. 214(d) Common Carrier Line $2,309/day. Extensions. Sec. 219(b) Common Carrier Reports..... $2,309/day. Sec. 220(d) Common Carrier Records & $11,548/day. Accounts. Sec. 223(b) Dial-a-Porn................ $119,668/day. Sec. 227(e) Caller Identification...... $11,052/violation. $33,156/day for each day of continuing violation, up to $1,105,241 for any single act or failure to act. Sec. 364(a) Forfeitures (Ships)........ $9,623/day (owner). Sec. 364(b) Forfeitures (Ships)........ $1,925 (vessel master). Sec. 386(a) Forfeitures (Ships)........ $9,623/day (owner). Sec. 386(b) Forfeitures (Ships)........ $1,925 (vessel master). Sec. 634 Cable EEO..................... $853/day. ------------------------------------------------------------------------ (9) Inflation adjustments to the maximum forfeiture amount. (i) Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 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 annually for inflation by order published no later than January 15 each year. Annual inflation adjustments will be based on the percentage (if any) by which the CPI-U for October preceding the date of the adjustment exceeds the prior year's CPI-U for October. The Office of Management and Budget (OMB) will issue adjustment rate guidance no later than December 15 each year to adjust for inflation in the CPI-U as of the most recent October. (ii) The application of the annual inflation adjustment required by the foregoing Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 results in the following adjusted statutory maximum forfeitures authorized by the Communications Act: ------------------------------------------------------------------------ Maximum penalty after U.S. Code citation 2017 inflation adjustment ------------------------------------------------------------------------ 47 U.S.C. 202(c)........................................ $11,548 577 47 U.S.C. 203(e)........................................ 11,548 577 47 U.S.C. 205(b)........................................ 23,095 47 U.S.C. 214(d)........................................ 2,309 47 U.S.C. 219(b)........................................ 2,309 47 U.S.C. 220(d)........................................ 11,548 47 U.S.C. 223(b)........................................ 119,668 47 U.S.C. 227(e)........................................ 11,052 33,156 1,105,241 47 U.S.C. 362(a)........................................ 9,623 47 U.S.C. 362(b)........................................ 1,925 47 U.S.C. 386(a)........................................ 9,623 47 U.S.C. 386(b)........................................ 1,925 47 U.S.C. 503(b)(2)(A).................................. 48,114 481,147 47 U.S.C. 503(b)(2)(B).................................. 192,459 1,924,589 47 U.S.C. 503(b)(2)(C).................................. 389,305 3,593,585 47 U.S.C. 503(b)(2)(D).................................. 19,246 144,344 47 U.S.C. 503(b)(2)(F).................................. 110,524 1,105,241 47 U.S.C. 507(a)........................................ 1,906 47 U.S.C. 507(b)........................................ 279 47 U.S.C. 554........................................... 853 ------------------------------------------------------------------------ * * * * * [FR Doc. 2017-00365 Filed 1-23-17; 8:45 am] BILLING CODE 6712-01-P
![8170 Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations
provides creditor’s rights under corrected to read ‘‘The comments cited available for download at http://
commercial law and the final leases treated as loans under section transition.fcc.gov/Daily_Releases/
regulations reflect that decision’’. 467; receivables and payables resulting Daily_Business/2016/db1230/DA–16–
2. On page 72906, second column, the from conforming adjustments under 1453A1.pdf. The complete text of this
last paragraph, ‘‘The Treasury section 482; production payments under document is also available for
Department and the IRS have section 636; coupon stripping inspection and copying during normal
determined that the proposed transactions under section 1286; and business hours in the FCC Reference
regulations already properly provided debt (or instruments treated as debt) Information Center, Portals II, 445 12th
for this result. As a result of an issuance described in section 856(m)(2), Street SW., Room CY–A257,
described in the subsidiary stock 860G(a)(1), or 1361(c)(5)’’. Washington, DC 20554.
issuance exception, the issuer (S2) 4. On page 72916, third column, the
becomes a successor to the transferor first complete sentence of the On November 2, 2015, President
(S1) to the extent of the value of the incomplete paragraph at the top, ‘‘The Obama signed into law the Bipartisan
expanded group stock acquired from the final and temporary regulations also Budget Act of 2015, which included, as
issuer, but only with respect to a debt provide an exception for debt Section 701 thereto, the 2015 Inflation
instrument of the issuer issued during instruments deemed to arise as a result Adjustment Act, which amended the
the per se period determined with of transfer pricing adjustments under Federal Civil Penalties Inflation
respect to the issuance. If the issuer (S2) section 482’’ is corrected to read ‘‘The Adjustment Act of 1990 (Pub. L. 101–
engages in another transaction described final and temporary regulations also 410), to improve the effectiveness of
in the subsidiary stock issuance provide an exception for debt civil monetary penalties and maintain
exception as a transferor, the acquisition instruments that arise due to their deterrent effect. Under the act,
of the stock of the expanded group conforming adjustments under § 1.482– agencies are required to make annual
member (the second issuer) would also 1(g)(3)’’. inflationary adjustments by January 15
not constitute an acquisition of
Martin V. Franks, each year, beginning in 2017. The
expanded group stock by reason of the
Chief, Publications and Regulations Branch, adjustments are calculated pursuant to
exception. Therefore, under a second
application of the subsidiary stock Legal Processing Division, Associate Chief Office of Management and Budget
issuance exception, the acquisition of Counsel, Procedure and Administration. (OMB) guidance. OMB issued guidance
the stock of S3 by the issuer (S2), a [FR Doc. 2017–00497 Filed 1–23–17; 8:45 am] on December 16, 2016, and this Order
successor to the transferor (S1), is not BILLING CODE 4830–01–P follows that guidance. We therefore
treated as described in the second prong update the civil monetary penalties set
of the funding rule and thus cannot be forth in the Commission’s rules, to
treated as funded by a covered debt FEDERAL COMMUNICATIONS reflect an annual inflation adjustment
instrument issued by the transferor (S1). COMMISSION that derives from OMB’s cost-of-living
After the second issuance, the second multiplier of 1.01636. The cost-of-living
issuer (S3) is a successor to both the first 47 CFR Part 1 adjustment is ‘‘the percentage (if any)’’
transferor (S1) and the first issuer (S2), [DA 16–1453] by which the ‘‘(A) Consumer Price
which remains a successor to the first Index for the month of October
transferor (S1). The final and temporary Annual Adjustment of Civil Monetary preceding the date of the adjustment,
regulations change the terminology, but Penalties To Reflect Inflation exceeds (B) the Consumer Price Index
do not change the result of the proposed for the month of October 1 year before
regulations in this regard.’’ is corrected AGENCY: Federal Communications
Commission. the month of October referred to in
to read, ‘‘The Treasury Department and subparagraph (A).’’
the IRS have determined that the ACTION: Final rule.
proposed regulations already properly This document does not contain new
SUMMARY: The Federal Civil Penalties or modified information collection
provided for this result in the situation Inflation Adjustment Act Improvements
where S2 controls S3 within the requirements subject to the Paperwork
Act of 2015 (the 2015 Inflation
meaning of § 1.385–3(c)(2)(i)(B). Reduction Act of 1995 (PRA), Public
Adjustment Act) requires the Federal
However, the final regulations further Law 104–13. It does not contain any
Communications Commission to amend
clarify the application of the subsidiary its forfeiture penalty rules to reflect new or modified information collection
stock acquisition exception in other annual adjustments for inflation in burden for small business concerns with
tiered transfer situations, for instance order to improve their effectiveness and fewer than 25 employees, pursuant to
where S2 subsequently engages in a maintain their deterrent effect. The 2015 the Small Business Paperwork Relief
transaction with an expanded group Inflation Adjustment Act provides that Act of 2002, Public Law 107–198, see 44
member controlled by S1, but not the new penalty levels shall apply to U.S.C. 3506(c)(4).
controlled by S2. See § 1.385–
penalties assessed after the effective The Enforcement Bureau will
3(g)(24)(ii)(B).’’.
date of the increase, including when the coordinate with the Commission’s
3. On page 72916, second column, the
second sentence of the first full penalties whose associated violation Consumer & Governmental Affairs
paragraph from the bottom, ‘‘The predate the increase. Bureau, Reference Information Center to
comments cited leases treated as loans DATES: Effective January 24, 2017. report this Order to Congress and the
under section 467; receivables and FOR FURTHER INFORMATION CONTACT: Government Accountability Office
sradovich on DSK3GMQ082PROD with RULES
payables resulting from correlative Celia Lewis, Enforcement Bureau, 202– pursuant to the Congressional Review
adjustments under section 482; 418–7456, or Gregory Haledjian, Act, see 5 U.S.C. 801(a)(1)(A).
production payments under section 636; Enforcement Bureau, 202–418–7440.
coupon stripping transactions under SUPPLEMENTARY INFORMATION: This is a
List of Subjects in 47 CFR Part 1
section 1286; and debt (or instruments summary of the Commission’s Order, Administrative practice and
treated as debt) described in section DA 16–1453, adopted and released on procedure, Penalties.
856(m)(2), 860G(a)(1), or 1361(c)(5)’’ is December 30, 2016. The document is
VerDate Sep<11>2014 17:47 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 E:\FR\FM\24JAR1.SGM 24JAR1](https://thefederalregister.org/doc/82_FR_8184/page/1.svg)
![Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations 8171
Federal Communications Commission. PART 1—PRACTICE AND paragraph (b)(8) and revising paragraph
Lisa S. Gelb, PROCEDURE (b)(9) to read as follows:
Chief of Staff, Enforcement Bureau. § 1.80 Forfeiture proceedings.
■ 1. The authority citation for part 1 is
Final Rules revised to read as follows: * * * * *
(b) * * *
For the reasons discussed in the Authority: 15 U.S.C. 79 et seq., 47 U.S.C. (8) * * *
preamble, the Federal Communications 151, 154(i) and (j), 155, 157, 160, 201, 225, Note to paragraph (b)(8) * * *
Commission amends 47 CFR part 1 as 227, 303, 309, 301, 332, 1403, 1404, 1451, Section III. Non-Section 503
follows: 1452, and 1455. Forfeitures That Are Affected by the
■ 2. Section 1.80 is amended by revising Downward Adjustment Factors
the table in Section III of the note to * * * * *
Statutory amount
Violation ($)
Sec. 202(c) Common Carrier Discrimination ........................................... $11,548, $577/day.
Sec. 203(e) Common Carrier Tariffs ........................................................ $11,548, $577/day.
Sec. 205(b) Common Carrier Prescriptions ............................................. $23,095.
Sec. 214(d) Common Carrier Line Extensions ........................................ $2,309/day.
Sec. 219(b) Common Carrier Reports ..................................................... $2,309/day.
Sec. 220(d) Common Carrier Records & Accounts ................................. $11,548/day.
Sec. 223(b) Dial-a-Porn ............................................................................ $119,668/day.
Sec. 227(e) Caller Identification ............................................................... $11,052/violation. $33,156/day for each day of continuing violation, up
to $1,105,241 for any single act or failure to act.
Sec. 364(a) Forfeitures (Ships) ................................................................ $9,623/day (owner).
Sec. 364(b) Forfeitures (Ships) ................................................................ $1,925 (vessel master).
Sec. 386(a) Forfeitures (Ships) ................................................................ $9,623/day (owner).
Sec. 386(b) Forfeitures (Ships) ................................................................ $1,925 (vessel master).
Sec. 634 Cable EEO ................................................................................ $853/day.
(9) Inflation adjustments to the (ii) The application of the annual Maximum
maximum forfeiture amount. (i) inflation adjustment required by the U.S. Code citation penalty after
Pursuant to the Federal Civil Penalties foregoing Federal Civil Penalties 2017 inflation
adjustment
Inflation Adjustment Act Improvements Inflation Adjustment Act Improvements
Act of 2015, Public Law 114–74 (129 Act of 2015 results in the following 47 U.S.C. 362(b) .................. 1,925
Stat. 599–600), which amends the adjusted statutory maximum forfeitures 47 U.S.C. 386(a) .................. 9,623
Federal Civil Monetary Penalty Inflation authorized by the Communications Act: 47 U.S.C. 386(b) .................. 1,925
Adjustment Act of 1990, Public Law 47 U.S.C. 503(b)(2)(A) ......... 48,114
101–410 (104 Stat. 890; 28 U.S.C. 2461 Maximum 481,147
note), the statutory maximum amount of penalty after 47 U.S.C. 503(b)(2)(B) ......... 192,459
U.S. Code citation 2017 inflation 1,924,589
a forfeiture penalty assessed under this adjustment
section shall be adjusted annually for 47 U.S.C. 503(b)(2)(C) ......... 389,305
inflation by order published no later 47 U.S.C. 202(c) ................... $11,548 3,593,585
47 U.S.C. 503(b)(2)(D) ......... 19,246
than January 15 each year. Annual 577
47 U.S.C. 203(e) .................. 11,548 144,344
inflation adjustments will be based on 47 U.S.C. 503(b)(2)(F) ......... 110,524
the percentage (if any) by which the 577
47 U.S.C. 205(b) .................. 23,095 1,105,241
CPI–U for October preceding the date of 47 U.S.C. 507(a) .................. 1,906
47 U.S.C. 214(d) .................. 2,309
the adjustment exceeds the prior year’s 47 U.S.C. 219(b) .................. 2,309 47 U.S.C. 507(b) .................. 279
CPI–U for October. The Office of 47 U.S.C. 220(d) .................. 11,548 47 U.S.C. 554 ....................... 853
Management and Budget (OMB) will 47 U.S.C. 223(b) .................. 119,668
issue adjustment rate guidance no later 47 U.S.C. 227(e) .................. 11,052 * * * * *
than December 15 each year to adjust for 33,156 [FR Doc. 2017–00365 Filed 1–23–17; 8:45 am]
inflation in the CPI–U as of the most 1,105,241 BILLING CODE 6712–01–P
recent October. 47 U.S.C. 362(a) .................. 9,623
sradovich on DSK3GMQ082PROD with RULES
VerDate Sep<11>2014 17:47 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00041 Fmt 4700 Sfmt 9990 E:\FR\FM\24JAR1.SGM 24JAR1](https://thefederalregister.org/doc/82_FR_8184/page/2.svg)
Document Created: 2018-02-01 15:12:38
Document Modified: 2018-02-01 15:12:38
| 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 | Effective January 24, 2017. | |
| Contact | Celia Lewis, Enforcement Bureau, 202- 418-7456, or Gregory Haledjian, Enforcement Bureau, 202-418-7440. | |
| FR Citation | 82 FR 8170 | |
| CFR Associated | Administrative Practice and Procedure and Penalties |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR