83 FR 706 - Civil Monetary Penalty Adjustments for Inflation

DEPARTMENT OF COMMERCE
Office of the Secretary

Federal Register Volume 83, Issue 5 (January 8, 2018)

Page Range		706-709
FR Document		2017-28230

This final rule is being issued to adjust for inflation each civil monetary penalty (CMP) provided by law within the jurisdiction of the United States Department of Commerce (Department of Commerce). 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, required the head of each agency to adjust for inflation its CMP levels in effect as of November 2, 2015, under a revised methodology that was effective for 2016 which provided for initial catch up adjustments for inflation in 2016, and requires adjustments for inflation to CMPs under a revised methodology for each year thereafter. The 2017 adjustments for inflation to CMPs to the Department of Commerce's CMPs were published in the Federal Register on December 28, 2016 and became effective January 15, 2017. The revised annual methodology provides for the improvement of the effectiveness of CMPs and to maintain their deterrent effect. Agencies' annual adjustments for inflation to CMPs shall take effect not later than January 15. The Department of Commerce's 2018 adjustments for inflation to CMPs apply only to CMPs with a dollar amount, and will not apply to CMPs written as functions of violations. The Department of Commerce's 2018 adjustments for inflation to CMPs apply only to those CMPs, including those whose associated violation predated such adjustment, which are assessed by the Department of Commerce after the effective date of the new CMP level.

Federal Register, Volume 83 Issue 5 (Monday, January 8, 2018)

[Federal Register Volume 83, Number 5 (Monday, January 8, 2018)]
[Rules and Regulations]
[Pages 706-709]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28230]


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DEPARTMENT OF COMMERCE

Office of the Secretary

15 CFR Part 6

[Docket No. 171219999-7999-01]
RIN 0605-AA48


Civil Monetary Penalty Adjustments for Inflation

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule is being issued to adjust for inflation each 
civil monetary penalty (CMP) provided by law within the jurisdiction of 
the United States Department of Commerce (Department of Commerce). 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, required 
the head of each agency to adjust for inflation its CMP levels in 
effect as of November 2, 2015, under a revised methodology that was 
effective for 2016 which provided for initial catch up adjustments for 
inflation in 2016, and requires adjustments for inflation to CMPs under 
a revised methodology for each year thereafter. The 2017 adjustments 
for inflation to CMPs to the Department of Commerce's CMPs were 
published in the Federal Register on December 28, 2016 and became 
effective January 15, 2017. The revised annual methodology provides for 
the improvement of the effectiveness of CMPs and to maintain their 
deterrent effect. Agencies' annual adjustments for inflation to CMPs 
shall take effect not later than January 15. The Department of 
Commerce's 2018 adjustments for inflation to CMPs apply only to CMPs 
with a dollar amount, and will not apply to CMPs written as functions 
of violations. The Department of Commerce's 2018 adjustments for 
inflation to CMPs apply only to those CMPs, including those whose 
associated violation predated such adjustment, which are assessed by 
the Department of Commerce after the effective date of the new CMP 
level.

DATES: This rule is effective January 15, 2018.

FOR FURTHER INFORMATION CONTACT: Stephen Kunze, 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 Department 
of Commerce's Civil Monetary Penalty Adjustments for Inflation are 
available for downloading from the Department of Commerce, Office of 
Financial Management's website 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 agencies' 
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, the Department of Commerce 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 (1) required agencies to adjust the 
CMP levels in effect as of November 2, 2015, with initial catch up 
adjustments for inflation through a final rulemaking to take effect no 
later than August 1, 2016; and (2) requires agencies to make subsequent 
annual adjustments for inflation to CMPs that shall take effect not 
later than January 15.
    The Department of Commerce's initial catch up adjustments for 
inflation to CMPs were published in the Federal Register on June 7, 
2016, and the new CMP levels became effective July 7, 2016. The 
Department of Commerce's 2017 adjustments for inflation to CMPs were 
published in the Federal Register on December 28, 2016, and the new CMP 
levels became effective January 15, 2017.
    The Department of Commerce's 2018 adjustments for inflation to CMPs 
apply only to CMPs with a dollar amount, and will not apply to CMPs 
written as functions of violations. These 2018 adjustments for 
inflation to CMPs apply only to those CMPs, including those whose 
associated violation predated such adjustment, which are assessed by 
the Department of Commerce after the effective date of the new CMP 
level.
    This regulation adjusts for inflation CMPs that are provided by law 
within the jurisdiction of the Department of Commerce. 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

[[Page 707]]

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 NOAA's Office of the 
General Counsel, Enforcement Section website at: http://www.gc.noaa.gov/enforce-office.html.
    The Department of Commerce's 2018 adjustments for inflation to CMPs 
set forth in this regulation were determined pursuant to the 
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 2018 adjustments for inflation to 
CMPs, the cost-of-living adjustment is the percentage for each CMP by 
which the Consumer Price Index for the month of October 2017 exceeds 
the Consumer Price Index for the month of October 2016.

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)) requires agencies to make annual adjustments for inflation to 
CMPs notwithstanding section 553 of title 5, United States Code. 
Additionally, the methodology 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. The Department of 
Commerce is charged only with performing ministerial computations to 
determine the dollar amounts of adjustments for inflation to CMPs. 
Accordingly, prior public notice and an opportunity for public 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 that 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: December 26, 2017.
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, the Department of Commerce 
revises 15 CFR part 6 to read as follows:

PART 6--CIVIL MONETARY PENALTY ADJUSTMENTS FOR INFLATION

Sec.
6.1 Definitions.
6.2 Purpose and scope.
6.3 2018 Adjustments for inflation to civil monetary penalties.
6.4 Effective date of 2018 adjustments for inflation to civil 
monetary penalties.
6.5 Subsequent annual adjustments for inflation to civil monetary 
penalties.

    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) The Department of Commerce 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 (Department of Commerce).


Sec.  6.3  Adjustments for inflation to civil monetary penalties.

    The civil monetary penalties provided by law within the 
jurisdiction of the Department of Commerce, as set forth in paragraphs 
(a) through (f) of this section, are hereby adjusted for inflation in 
2018 in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, from the amounts of such civil 
monetary penalties that were in effect as of January 15, 2017, 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 $10,957 to $11,181.
    (2) 31 U.S.C. 3802(a)(2), Program Fraud Civil Remedies Act of 1986 
(1986), violation, maximum from $10,957 to $11,181.
    (3) 31 U.S.C. 3729(a)(1)(G), False Claims Act (1986); violation, 
minimum from $10,957 to $11,181; maximum from $21,916 to $22,363.
    (b) Bureau of Industry and Security. (1) 15 U.S.C. 5408(b)(1), 
Fastener Quality Act (1990), violation, maximum from $45,268 to 
$46,192.
    (2) 22 U.S.C. 6761(a)(1)(A), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $36,849 to $37,601.
    (3) 22 U.S.C. 6761(a)(l)(B), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $7,370 to $7,520.
    (4) 50 U.S.C. 1705(b), International Emergency Economic Powers Act 
(2007), violation, maximum from $289,238 to $295,141.
    (5) 22 U.S.C. 8142(a), United States Additional Protocol 
Implementation Act (2006), violation, maximum from $29,946 to $30,557.
    (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 $1,333 to

[[Page 708]]

$1,360; maximum per violation, from $13,333 to $13,605.
    (2) 13 U.S.C. 305(b), Collection of Foreign Trade Statistics 
(2002), violation, maximum from $13,333 to $13,605.
    (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 $4,527 to $4,619; maximum from 
$45,268 to $46,192.
    (e) International Trade Administration. (1) 19 U.S.C. 81s, Foreign 
Trade Zone (1934), violation, maximum from $2,795 to $2,852.
    (2) 19 U.S.C. 1677f(f)(4), U.S.-Canada FTA Protective Order (1988), 
violation, maximum from $201,106 to $205,211.
    (f) National Oceanic and Atmospheric Administration. (1) 51 U.S.C. 
60123(a), Land Remote Sensing Policy Act of 2010 (2010), violation, 
maximum from $11,052 to $11,278.
    (2) 51 U.S.C. 60148(c), Land Remote Sensing Policy Act of 2010 
(2010), violation, maximum from $11,052 to $11,278.
    (3) 16 U.S.C. 773f(a), Northern Pacific Halibut Act of 1982 (2007), 
violation, maximum from $231,391 to $236,114.
    (4) 16 U.S.C. 783, Sponge Act (1914), violation, maximum from 
$1,652 to $1,686.
    (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 $82,579 to $84,264.
    (ii) Subsequent violation of 16 U.S.C. 957(a), maximum from 
$177,863 to $181,493.
    (iii) Violation of 16 U.S.C. 957(b), maximum from $2,795 to $2,852.
    (iv) Subsequent violation of 16 U.S.C. 957(b), maximum from $16,516 
to $16,853.
    (v) Violation of 16 U.S.C. 957(c), maximum from $355,726 to 
$362,986.
    (6) 16 U.S.C. 957(i), Tuna Conventions Act of 1950,\1\ violation, 
maximum from $181,071 to $184,767.
    (7) 16 U.S.C. 959, Tuna Conventions Act of 1950,\2\ violation, 
maximum from $181,071 to $184,767.
    (8) 16 U.S.C. 971f(a), Atlantic Tunas Convention Act of 1975,\3\ 
violation, maximum from $181,071 to $184,767.
    (9) 16 U.S.C. 973f(a), South Pacific Tuna Act of 1988 (1988), 
violation, maximum from $502,765 to $513,026.
    (10) 16 U.S.C. 1174(b), Fur Seal Act Amendments of 1983 (1983), 
violation, maximum from $23,933 to $24,421.
    (11) 16 U.S.C. 1375(a)(1), Marine Mammal Protection Act of 1972 
(1972), violation, maximum from $27,950 to $28,520.
    (12) 16 U.S.C. 1385(e), Dolphin Protection Consumer Information 
Act,\4\ violation, maximum from $181,071 to $184,767.
    (13) 16 U.S.C. 1437(d)(1), National Marine Sanctuaries Act (1992), 
violation, maximum from $170,472 to $173,951.
    (14) 16 U.S.C. 1540(a)(1), Endangered Species Act of 1973:
    (i) Violation as specified (1988), maximum from $50,276 to $51,302.
    (ii) Violation as specified (1988), maximum from $24,132 to 
$24,625.
    (iii) Otherwise violation (1978), maximum from $1,652 to $1,686.
    (15) 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation and 
Management Act (1990), violation, maximum from $181,071 to $184,767.
    (16) 16 U.S.C. 2437(a), Antarctic Marine Living Resources 
Convention Act of 1984,\5\ violation, maximum from $181,071 to 
$184,767.
    (17) 16 U.S.C. 2465(a), Antarctic Protection Act of 1990,\6\ 
violation, maximum from $181,071 to $184,767.
    (18) 16 U.S.C. 3373(a), Lacey Act Amendments of 1981 (1981):
    (i) 16 U.S.C. 3373(a)(1), violation, maximum from $25,881 to 
$26,409.
    (ii) 16 U.S.C. 3373(a)(2), violation, maximum from $647 to $660.
    (19) 16 U.S.C. 3606(b)(1), Atlantic Salmon Convention Act of 
1982,\7\ violation, maximum from $181,071 to $184,767.
    (20) 16 U.S.C. 3637(b), Pacific Salmon Treaty Act of 1985,\8\ 
violation, maximum from $181,071 to $184,767.
    (21) 16 U.S.C. 4016(b)(1)(B), Fish and Seafood Promotion Act of 
1986 (1986); violation, minimum from $1,096 to $1,118; maximum from 
$10,957 to $11,181.
    (22) 16 U.S.C. 5010, North Pacific Anadromous Stocks Act of 
1992,\9\ violation, maximum from $181,071 to $184,767.
    (23) 16 U.S.C. 5103(b)(2), Atlantic Coastal Fisheries Cooperative 
Management Act,\10\ violation, maximum from $181,071 to $184,767.
    (24) 16 U.S.C. 5154(c)(1), Atlantic Striped Bass Conservation 
Act,\11\ violation, maximum from $181,071 to $184,767.
    (25) 16 U.S.C. 5507(a), High Seas Fishing Compliance Act of 1995 
(1995), violation, maximum from $157,274 to $160,484.
    (26) 16 U.S.C. 5606(b), Northwest Atlantic Fisheries Convention Act 
of 1995,\12\ violation, maximum from $181,071 to $184,767
    (27) 16 U.S.C. 6905(c), Western and Central Pacific Fisheries 
Convention Implementation Act,\13\ violation, maximum from $181,071 to 
$184,767.
    (28) 16 U.S.C. 7009(c) and (d), Pacific Whiting Act of 2006,\14\ 
violation, maximum from $181,071 to $184,767.
    (29) 22 U.S.C. 1978(e), Fishermen's Protective Act of 1967 (1971):
    (i) Violation, maximum from $27,950 to $28,520.
    (ii) Subsequent violation, maximum from $82,579 to $84,264.
    (30) 30 U.S.C. 1462(a), Deep Seabed Hard Mineral Resources Act 
(1980), violation, maximum, from $71,264 to $72,718.
    (31) 42 U.S.C. 9152(c), Ocean Thermal Energy Conversion Act of 1980 
(1980), violation, maximum from $71,264 to $72,718.
    (32) 16 U.S.C. 1827a, Billfish Conservation Act of 2012,\15\ 
violation, maximum from $181,071 to $184,767.
    (33) 16 U.S.C. 7407(b), Port State Measures Agreement Act of 
2015,\16\ violation, maximum from $181,071 to $184,767.
    (34) 16 U.S.C. 1826g(f), High Seas Driftnet Fishing Moratorium 
Protection Act,\17\ violation, maximum from $181,071 to $184,767.
    (35) 16 U.S.C. 7705, Ensuring Access to Pacific Fisheries Act,\18\ 
(newly reported penalty), violation, maximum $184,767.
    (36) 16 U.S.C. 7805, Ensuring Access to Pacific Fisheries Act,\19\ 
(newly reported penalty), violation, maximum $184,767.

------------
    \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)).
    \2\ See footnote 1.
    \3\ See footnote 1.
    \4\ See footnote 1.
    \5\ See footnote 1.
    \6\ See footnote 1.
    \7\ See footnote 1.
    \8\ See footnote 1.
    \9\ See footnote 1.
    \10\ See footnote 1.
    \11\ See footnote 1.
    \12\ See footnote 1.
    \13\ See footnote 1.
    \14\ See footnote 1.
    \15\ See footnote 1.
    \16\ See footnote 1.
    \17\ See footnote 1.
    \18\ See footnote 1.
    \19\ See footnote 1.


Sec.  6.4   Effective date of adjustments for inflation to civil 
monetary penalties.

    The Department of Commerce's 2018 adjustments for inflation made by 
Sec.  6.3, of the civil monetary penalties there specified, are 
effective on January 15, 2018, and said civil monetary penalties, as 
thus adjusted by the adjustments for inflation made by Sec.  6.3, apply 
only to those civil monetary penalties, including those whose 
associated

[[Page 709]]

violation predated such adjustment, which are assessed by the 
Department of Commerce 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 January 15, 2018 as provided in Sec.  6.5.


Sec.  6.5   Subsequent annual adjustments for inflation to civil 
monetary penalties.

    The Secretary of Commerce or his or her designee by regulation 
shall make subsequent adjustments for inflation to the Department of 
Commerce's civil monetary penalties annually, which shall take effect 
not later than January 15, notwithstanding section 553 of title 5, 
United States Code.

[FR Doc. 2017-28230 Filed 1-5-18; 8:45 am]
 BILLING CODE 3510-DP-P

Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations 707

CMPs for violations for most of the Regulatory Analysis Federal Civil Penalties Inflation
statutes NOAA enforces, will be Adjustment Act of 1990 (Pub. L. 101–
E.O. 12866, Regulatory Review
interpreted in a manner consistent with 410; 28 U.S.C. 2461), as amended by the
this regulation to maintain the deterrent This rule is not a significant Debt Collection Improvement Act of
effect of the CMPs. The CMP ranges in regulatory action as that term is defined 1996 (Pub. L. 104–134) and the Federal
the Penalty Policy are intended to aid in Executive Order 12866. Civil Penalties Inflation Adjustment Act
enforcement attorneys in determining Improvements Act of 2015 (Section 701
Regulatory Flexibility Act
the appropriate CMP to assess for a of Pub. L. 114–74), of each civil
particular violation. The Penalty Policy Because notice of proposed monetary penalty provided by law
is maintained and made available to the rulemaking and opportunity for within the jurisdiction of the United
public on NOAA’s Office of the General comment are not required pursuant to 5 States Department of Commerce
Counsel, Enforcement Section website U.S.C. 553, or any other law, the (Department of Commerce).
at: http://www.gc.noaa.gov/enforce- analytical requirements of the
office.html. Regulatory Flexibility act (5 U.S.C. 601, § 6.3 Adjustments for inflation to civil
The Department of Commerce’s 2018 et seq.) are inapplicable. Therefore, a monetary penalties.
adjustments for inflation to CMPs set regulatory flexibility analysis is not The civil monetary penalties provided
forth in this regulation were determined required and has not been prepared. by law within the jurisdiction of the
pursuant to the methodology prescribed Department of Commerce, as set forth in
List of Subjects in 15 CFR Part 6 paragraphs (a) through (f) of this section,
by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of Law enforcement, Civil monetary are hereby adjusted for inflation in 2018
2015, which requires the maximum penalties. in accordance with the Federal Civil
CMP, or the minimum and maximum Dated: December 26, 2017. Penalties Inflation Adjustment Act of
CMP, as applicable, to be increased by 1990, as amended, from the amounts of
Jennifer Ayers,
the cost-of-living adjustment. The term such civil monetary penalties that were
Acting Deputy Chief Financial Officer and
‘‘cost-of-living adjustment’’ is defined in effect as of January 15, 2017, to the
Director for Financial Management,
by the Federal Civil Penalties Inflation Department of Commerce. amounts of such civil monetary
Adjustment Act Improvements Act of penalties, as thus adjusted. The year
2015. For the 2018 adjustments for Authority and Issuance stated in parenthesis represents the year
inflation to CMPs, the cost-of-living that the civil monetary penalty was last
■ For the reasons stated in the preamble,
adjustment is the percentage for each set by law or adjusted by law (excluding
the Department of Commerce revises 15
CMP by which the Consumer Price adjustments for inflation).
CFR part 6 to read as follows:
Index for the month of October 2017 (a) United States Department of
exceeds the Consumer Price Index for PART 6—CIVIL MONETARY PENALTY Commerce. (1) 31 U.S.C. 3802(a)(1),
the month of October 2016. ADJUSTMENTS FOR INFLATION Program Fraud Civil Remedies Act of
1986 (1986), violation, maximum from
Classification Sec. $10,957 to $11,181.
Pursuant to 5 U.S.C. 553(b)B, there is 6.1 Definitions. (2) 31 U.S.C. 3802(a)(2), Program
good cause to issue this rule without 6.2 Purpose and scope. Fraud Civil Remedies Act of 1986
prior public notice or opportunity for 6.3 2018 Adjustments for inflation to civil (1986), violation, maximum from
public comment because it would be monetary penalties.
$10,957 to $11,181.
impracticable and unnecessary. The 6.4 Effective date of 2018 adjustments for
inflation to civil monetary penalties.
(3) 31 U.S.C. 3729(a)(1)(G), False
Federal Civil Penalties Inflation 6.5 Subsequent annual adjustments for Claims Act (1986); violation, minimum
Adjustment Act Improvements Act of inflation to civil monetary penalties. from $10,957 to $11,181; maximum
2015 (Section 701(b)) requires agencies from $21,916 to $22,363.
to make annual adjustments for inflation Authority: Pub. L. 101–410, 104 Stat. 890
(b) Bureau of Industry and Security.
(28 U.S.C. 2461 note); Pub. L. 104–134, 110
to CMPs notwithstanding section 553 of Stat. 1321 (31 U.S.C. 3701 note); Sec. 701 of (1) 15 U.S.C. 5408(b)(1), Fastener
title 5, United States Code. Pub. L. 114–74, 129 Stat. 599 (28 U.S.C. 1 Quality Act (1990), violation, maximum
Additionally, the methodology used for note; 28 U.S.C. 2461 note). from $45,268 to $46,192.
adjusting CMPs for inflation is given by (2) 22 U.S.C. 6761(a)(1)(A), Chemical
statute, with no discretion provided to § 6.1 Definitions. Weapons Convention Implementation
agencies regarding the substance of the (a) The Department of Commerce Act (1998), violation, maximum from
adjustments for inflation to CMPs. The means the United States Department of $36,849 to $37,601.
Department of Commerce is charged Commerce. (3) 22 U.S.C. 6761(a)(l)(B), Chemical
only with performing ministerial (b) Civil Monetary Penalty means any Weapons Convention Implementation
computations to determine the dollar penalty, fine, or other sanction that: Act (1998), violation, maximum from
amounts of adjustments for inflation to (1) Is for a specific monetary amount $7,370 to $7,520.
CMPs. Accordingly, prior public notice as provided by Federal law, or has a (4) 50 U.S.C. 1705(b), International
and an opportunity for public comment maximum amount provided for by Emergency Economic Powers Act
are not required for this rule. Federal law; and (2007), violation, maximum from
(2) Is assessed or enforced by an $289,238 to $295,141.
Paperwork Reduction Act (5) 22 U.S.C. 8142(a), United States
agency pursuant to Federal law; and
The provisions of the Paperwork (3) Is assessed or enforced pursuant to Additional Protocol Implementation Act
jstallworth on DSKBBY8HB2PROD with RULES

Reduction Act of 1995, Public Law 104– an administrative proceeding or a civil (2006), violation, maximum from
13, 44 U.S.C. Chapter 35, and its action in the Federal courts. $29,946 to $30,557.
implementing regulations, 5 CFR part (c) Census Bureau. (1) 13 U.S.C. 304,
1320, do not apply to this rule because § 6.2 Purpose and scope. Collection of Foreign Trade Statistics
there are no new or revised The purpose of this part is to make (2002), each day’s delinquency of a
recordkeeping or reporting adjustments for inflation to civil violation; total of not to exceed
requirements. monetary penalties, as required by the maximum violation, from $1,333 to

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708 Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations

$1,360; maximum per violation, from violation, maximum from $181,071 to (29) 22 U.S.C. 1978(e), Fishermen’s
$13,333 to $13,605. $184,767. Protective Act of 1967 (1971):
(2) 13 U.S.C. 305(b), Collection of (13) 16 U.S.C. 1437(d)(1), National (i) Violation, maximum from $27,950
Foreign Trade Statistics (2002), Marine Sanctuaries Act (1992), to $28,520.
violation, maximum from $13,333 to violation, maximum from $170,472 to (ii) Subsequent violation, maximum
$13,605. $173,951. from $82,579 to $84,264.
(d) Economics and Statistics (14) 16 U.S.C. 1540(a)(1), Endangered (30) 30 U.S.C. 1462(a), Deep Seabed
Administration. (1) 22 U.S.C. 3105(a), Species Act of 1973: Hard Mineral Resources Act (1980),
International Investment and Trade in (i) Violation as specified (1988), violation, maximum, from $71,264 to
Services Act (1990); failure to furnish maximum from $50,276 to $51,302. $72,718.
information, minimum from $4,527 to (ii) Violation as specified (1988), (31) 42 U.S.C. 9152(c), Ocean Thermal
$4,619; maximum from $45,268 to maximum from $24,132 to $24,625. Energy Conversion Act of 1980 (1980),
$46,192. (iii) Otherwise violation (1978), violation, maximum from $71,264 to
(e) International Trade maximum from $1,652 to $1,686. $72,718.
Administration. (1) 19 U.S.C. 81s, (15) 16 U.S.C. 1858(a), Magnuson- (32) 16 U.S.C. 1827a, Billfish
Foreign Trade Zone (1934), violation, Stevens Fishery Conservation and Conservation Act of 2012,15 violation,
maximum from $2,795 to $2,852. Management Act (1990), violation, maximum from $181,071 to $184,767.
(2) 19 U.S.C. 1677f(f)(4), U.S.-Canada maximum from $181,071 to $184,767. (33) 16 U.S.C. 7407(b), Port State
FTA Protective Order (1988), violation, (16) 16 U.S.C. 2437(a), Antarctic
Measures Agreement Act of 2015,16
maximum from $201,106 to $205,211. Marine Living Resources Convention
violation, maximum from $181,071 to
(f) National Oceanic and Atmospheric Act of 1984,5 violation, maximum from
$184,767.
Administration. (1) 51 U.S.C. 60123(a), $181,071 to $184,767.
(17) 16 U.S.C. 2465(a), Antarctic (34) 16 U.S.C. 1826g(f), High Seas
Land Remote Sensing Policy Act of 2010 Driftnet Fishing Moratorium Protection
(2010), violation, maximum from Protection Act of 1990,6 violation,
Act,17 violation, maximum from
$11,052 to $11,278. maximum from $181,071 to $184,767.
(18) 16 U.S.C. 3373(a), Lacey Act $181,071 to $184,767.
(2) 51 U.S.C. 60148(c), Land Remote (35) 16 U.S.C. 7705, Ensuring Access
Sensing Policy Act of 2010 (2010), Amendments of 1981 (1981):
(i) 16 U.S.C. 3373(a)(1), violation, to Pacific Fisheries Act,18 (newly
violation, maximum from $11,052 to reported penalty), violation, maximum
$11,278. maximum from $25,881 to $26,409.
(ii) 16 U.S.C. 3373(a)(2), violation, $184,767.
(3) 16 U.S.C. 773f(a), Northern Pacific (36) 16 U.S.C. 7805, Ensuring Access
Halibut Act of 1982 (2007), violation, maximum from $647 to $660.
(19) 16 U.S.C. 3606(b)(1), Atlantic to Pacific Fisheries Act,19 (newly
maximum from $231,391 to $236,114. reported penalty), violation, maximum
(4) 16 U.S.C. 783, Sponge Act (1914), Salmon Convention Act of 1982,7
violation, maximum from $181,071 to $184,767.
violation, maximum from $1,652 to
$1,686. $184,767. ——————
(5) 16 U.S.C. 957(d), (e), and (f), Tuna (20) 16 U.S.C. 3637(b), Pacific Salmon 1 This National Oceanic and Atmospheric

Conventions Act of 1950 (1962): Treaty Act of 1985,8 violation, Administration maximum civil monetary
(i) Violation of 16 U.S.C. 957(a), maximum from $181,071 to $184,767. penalty, as prescribed by law, is the
(21) 16 U.S.C. 4016(b)(1)(B), Fish and maximum civil penalty per 16 U.S.C. 1858(a),
maximum from $82,579 to $84,264.
Seafood Promotion Act of 1986 (1986); Magnuson-Stevens Fishery Conservation and
(ii) Subsequent violation of 16 U.S.C. Management Act civil monetary penalty
957(a), maximum from $177,863 to violation, minimum from $1,096 to
(item (15)).
$181,493. $1,118; maximum from $10,957 to 2 See footnote 1.
(iii) Violation of 16 U.S.C. 957(b), $11,181. 3 See footnote 1.
maximum from $2,795 to $2,852. (22) 16 U.S.C. 5010, North Pacific 4 See footnote 1.
(iv) Subsequent violation of 16 U.S.C. Anadromous Stocks Act of 1992,9 5 See footnote 1.

957(b), maximum from $16,516 to violation, maximum from $181,071 to 6 See footnote 1.

$16,853. $184,767. 7 See footnote 1.

(v) Violation of 16 U.S.C. 957(c), (23) 16 U.S.C. 5103(b)(2), Atlantic 8 See footnote 1.

maximum from $355,726 to $362,986. Coastal Fisheries Cooperative 9 See footnote 1.
10 See footnote 1.
(6) 16 U.S.C. 957(i), Tuna Management Act,10 violation, maximum
11 See footnote 1.
Conventions Act of 1950,1 violation, from $181,071 to $184,767. 12 See footnote 1.
maximum from $181,071 to $184,767. (24) 16 U.S.C. 5154(c)(1), Atlantic 13 See footnote 1.
(7) 16 U.S.C. 959, Tuna Conventions Striped Bass Conservation Act,11 14 See footnote 1.
Act of 1950,2 violation, maximum from violation, maximum from $181,071 to 15 See footnote 1.
$181,071 to $184,767. $184,767. 16 See footnote 1.
(8) 16 U.S.C. 971f(a), Atlantic Tunas (25) 16 U.S.C. 5507(a), High Seas 17 See footnote 1.
Convention Act of 1975,3 violation, Fishing Compliance Act of 1995 (1995), 18 See footnote 1.

maximum from $181,071 to $184,767. violation, maximum from $157,274 to 19 See footnote 1.

(9) 16 U.S.C. 973f(a), South Pacific $160,484.
Tuna Act of 1988 (1988), violation, (26) 16 U.S.C. 5606(b), Northwest § 6.4 Effective date of adjustments for
Atlantic Fisheries Convention Act of inflation to civil monetary penalties.
maximum from $502,765 to $513,026.
(10) 16 U.S.C. 1174(b), Fur Seal Act 1995,12 violation, maximum from The Department of Commerce’s 2018
Amendments of 1983 (1983), violation, $181,071 to $184,767 adjustments for inflation made by § 6.3,
jstallworth on DSKBBY8HB2PROD with RULES

maximum from $23,933 to $24,421. (27) 16 U.S.C. 6905(c), Western and of the civil monetary penalties there
(11) 16 U.S.C. 1375(a)(1), Marine Central Pacific Fisheries Convention specified, are effective on January 15,
Mammal Protection Act of 1972 (1972), Implementation Act,13 violation, 2018, and said civil monetary penalties,
violation, maximum from $27,950 to maximum from $181,071 to $184,767. as thus adjusted by the adjustments for
$28,520. (28) 16 U.S.C. 7009(c) and (d), Pacific inflation made by § 6.3, apply only to
(12) 16 U.S.C. 1385(e), Dolphin Whiting Act of 2006,14 violation, those civil monetary penalties,
Protection Consumer Information Act,4 maximum from $181,071 to $184,767. including those whose associated

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Federal Register / Vol. 83, No. 5 / Monday, January 8, 2018 / Rules and Regulations 709

violation predated such adjustment, license requirements. In this final rule, (including potential economic,
which are assessed by the Department of BIS is amending ECCNs 0D606 and environmental, public health and safety
Commerce after the effective date of the 0E606 by reinstating original text that effects, distributive impacts, and
new civil monetary penalty level, and was erroneously replaced with the text equity). Executive Order 13563
before the effective date of any future for ECCNs 0D614 and 0E614, emphasizes the importance of
adjustments for inflation to civil respectively, in the December 27 rule. In quantifying both costs and benefits, of
monetary penalties thereto made addition, this rule reinstates paragraph reducing costs, of harmonizing rules,
subsequent to January 15, 2018 as (2) of the Special Conditions for STA in and of promoting flexibility. This rule
provided in § 6.5. ECCN 8A609. does not impose any regulatory burden
on the public and is consistent with the
§ 6.5 Subsequent annual adjustments for Part 774
goals of Executive Order 13563. This
inflation to civil monetary penalties. ECCNs 0D606 and 0E606: The rule has been designated not significant
The Secretary of Commerce or his or December 27 rule amended ECCN for purposes of Executive Order 12866.
her designee by regulation shall make subparagraphs 0D606.a and 0E606.a to This rule is not an Executive Order
subsequent adjustments for inflation to include references to ECCNs 0B606 and 13771 regulatory action because this
the Department of Commerce’s civil 0C606. During drafting, the License rule is not significant under Executive
monetary penalties annually, which Requirements section and the text Order 12866.
shall take effect not later than January following the revised subparagraphs for 2. This final rule does not contain
15, notwithstanding section 553 of title both ECCNs was exchanged with the information collections subject to the
5, United States Code. text for ECCNs 0D614 and 0E614, requirements of the Paperwork
[FR Doc. 2017–28230 Filed 1–5–18; 8:45 am] respectively. In order to follow the Reduction Act of 1995 (44 U.S.C. 3501
BILLING CODE 3510–DP–P
guidelines of the original preamble, this et seq.) (PRA). Notwithstanding any
correction to the December 27 rule other provision of law, no person is
restores the original License required to respond to, nor is subject to
DEPARTMENT OF COMMERCE Requirements section and the text of a penalty for failure to comply with, a
ECCNs 0D606 and 0E606 following collection of information, subject to the
Bureau of Industry and Security subparagraph .a in both ECCNs. In requirements of the Paperwork
addition, this rule replaces the incorrect Reduction Act of 1995 (44 U.S.C. 3501
15 CFR Part 774 reference to 0D606 with 0E606 in the et seq.) (PRA), unless that collection of
[170207157–7157–01] Special Conditions for STA of ECCN information displays a currently valid
0E606. Office of Management and Budget
RIN 0694–AH31 ECCN 8A609: The December 27 rule (OMB) Control Number.
amended ECCN 8A609 by revising the 3. This rule does not contain policies
Revisions, Clarifications, and title reference in these ECCNs to match with Federalism implications as that
Technical Corrections to the Export the current title of § 740.20(g) and in term is defined in Executive Order
Administration Regulations; doing so inadvertently removed 13132.
Correction paragraph (2) of the Special Conditions 4. The Department of Commerce finds
for STA. This rule restores paragraph (2) that there is good cause under 5 U.S.C.
AGENCY: Bureau of Industry and
of the Special Conditions for STA in 553(b)(B) to waive the provisions of the
Security, Commerce.
ECCN 8A609. Administrative Procedure Act otherwise
ACTION: Final rule; correcting requiring prior notice and the
amendments. Export Administration Act opportunity for public comment
SUMMARY: In this final rule, the Bureau Since August 21, 2001, the Export because they are unnecessary. The
of Industry and Security corrects an Administration Act of 1979, as revisions made by this rule are
error in the text of Export Control amended, has been in lapse. However, administrative in nature and do not
Classification Numbers (ECCNs) 0D606, the President, through Executive Order affect the privileges and obligations of
0E606, and 8A609. 13222 of August 17, 2001, 3 CFR, 2001 the public. Additionally, it is important
Comp., p. 783 (2002), as amended by that the edits and clarifications are
DATES: This rule is effective January 8, added as soon as possible to prevent
Executive Order 13637 of March 8,
2018. improper interpretation of the EAR. The
2013, 78 FR 16129 (March 13, 2013),
FOR FURTHER INFORMATION CONTACT: Ivan and as extended by the Notice of August Department also finds that there is good
Mogensen, Office of Exporter Services, 15, 2017, 82 FR 39005 (August 16, 2017) cause under 5 U.S.C. 553(b)(A) to waive
Bureau of Industry and Security, by has continued the EAR in effect under the provisions of the Administrative
telephone: (202) 482–2440 or email: the International Emergency Economic Procedure Act requiring notice and
Ivan.Mogensen@bis.doc.gov. Powers Act (50 U.S.C. 1701 et seq.). BIS comment because these changes are
SUPPLEMENTARY INFORMATION: continues to carry out the provisions of limited to providing guidance on
the Export Administration Act, as existing interpretations of current EAR
Overview provisions. Because these revisions are
appropriate and to the extent permitted
On December 27, 2017, BIS published by law, pursuant to Executive Order not substantive changes to the EAR, the
a final rule, Revisions, Clarifications, 13222 as amended by Executive Order 30-day delay in effectiveness otherwise
and Technical Corrections to the Export 13637. required by 5 U.S.C. 553(d) is not
Administration Regulations (82 FR applicable. No other law requires that a
jstallworth on DSKBBY8HB2PROD with RULES

61153) (the December 27 rule), which Rulemaking Requirements notice of proposed rulemaking and
made corrections to certain provisions 1. Executive Orders 13563 and 12866 opportunity for public comment be
of the Export Administration direct agencies to assess all costs and given for this rule. The analytical
Regulations (EAR), including the benefits of available regulatory requirements of the Regulatory
Commerce Control List (part 774 of the alternatives and, if regulation is Flexibility Act (5 U.S.C. 601 et. seq.) are
EAR) (CCL). The corrections were necessary, to select regulatory not applicable because no general notice
editorial in nature and did not affect approaches that maximize net benefits of proposed rulemaking was required

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Document Created: 2018-01-06 02:31:56
Document Modified: 2018-01-06 02:31:56

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 January 15, 2018.
Contact		Stephen Kunze, 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 Department of Commerce's Civil Monetary Penalty Adjustments for Inflation are available for downloading from the Department of Commerce, Office of
FR Citation		83 FR 706
RIN Number		0605-AA48
CFR Associated		Law Enforcement and Civil Monetary Penalties

83 FR 706 - Civil Monetary Penalty Adjustments for Inflation

DEPARTMENT OF COMMERCEOffice of the Secretary

Federal Register Volume 83, Issue 5 (January 8, 2018)

DEPARTMENT OF COMMERCE
Office of the Secretary