[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Rules and Regulations]
[Pages 11316-11317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6098]
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FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 1997-3]
Adjustments to Civil Monetary Penalty Amounts
AGENCY: Federal Election Commission.
ACTION: Final rule.
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SUMMARY: This rule implements the Debt Collection Improvement Act of
1996 (``DCIA''), which requires the Commission to adopt a regulation
adjusting for inflation the maximum amount of civil monetary penalties
(``CMP'') under the Federal Election Campaign Act of 1971 (``FECA'' or
``Act''), as amended. Any increase in CMP shall apply only to
violations that occur after the effective date of this regulation.
EFFECTIVE DATE: March 12, 1997.
FOR FURTHER INFORMATION CONTACT:
Ms. Susan E. Propper, Assistant General Counsel, or Rita A. Reimer,
Attorney, 999 E Street, N.W., Washington, D.C. 20463, (202) 219-3690 or
(800) 424-9530.
SUPPLEMENTARY INFORMATION: The Commission is publishing final rules
implementing the Debt Collection Improvement Act of 1996, Pub. L. 104-
134, section 31001(s), 110 Stat. 1321-358, 1321-373 (April 26, 1996).
The DCIA amended the Federal Civil Penalties Inflation Adjustment Act
``Inflation Adjustment Act''), 28 U.S.C. 2461 nt., to require that the
Commission adopt regulations no later than 180 days after enactment of
the statute and at least once every four years thereafter, adjusting
for inflation that maximum amount of the CMP's contained in the status
administered by the Commission.
Explanation and Justification
A CMP is defined at section 3(2) of the Interest Adjustment Act as
any penalty, fine, or other sanction that (1) is for a specific amount,
or has a maximum amount, as provided by federal law; and (2) is
assessed or enforced by an agency in an administrative proceedings or
by federal law. This definition covers the monetary penalty provisions
administered by the Commission.
The DCIA requires that these penalties be adjusted by the cost of
living adjustment set forth in section 5 of the Interest Adjustment
Act. The cost of living adjustment is defined as the percentage by
which the U.S. Department of Labor's Consumer Price Index (``CPI'') for
the month of June of the year preceding the adjustment exceeds the CPI
for the month of June for the year in which the amount of the penalty
was last set or adjusted pursuant to law. The adjusted amounts are then
rounded in accordance with a specified rounding formula. However, the
DCIA imposes a 10% maximum increase for each penalty for the first
adjustment following its enactment.
Part 111--Compliance Procedure (2 U.S.C. 437g, 437d(a))
Section 11.24 Civil Penalties (2 U.S.C. 437g(a)(5), (6), (12), 28
U.S.C. 2461 nt.
The Commission's general CMP provisions for violations of the FECA
are found at 2 U.S.C. 437g(a) (5) and (6). They provide for a civil
penalty not to exceed the greater of $5,000 or an amount equal to any
contribution or expenditure involved in the violation.
These amounts are doubled in the case of a knowing and willful
violation, to $10,000 or an amount equal to 200 percent of any
contribution or expenditure involved in the violation.
In addition, the Act imposes CMP's on those who violate certain of
its confidentiality provisions. 2 U.S.C. 437g(a)(12). The penalty for
violating this section is a fine of not more than $2,000 or $5,000 in
the case of a knowing and willful violation.
Sections 437g(a) (5) and (6) were enacted in 1976. Pub. L. 94-283,
sec. 109, 90 Stat. 475, 483 (May 11, 1976). Section 437g(a)(12) was
added in 1980. Pub. L. 96-187, sec. 108.93 Stat. 1339, 1361 (Jan. 8,
1980).
The civil penalties established in those sections have not
subsequently been revised. The Commission is therefore increasing the
amount of each maximum CMP by 10%. As explained above, neither the CPI
formula nor the rounding off formula applies to this situation, since
the Interest Adjustment Act limits the first post-enactment adjustment
to 10%.
Accordingly, as of March 12, 1997, the maximum civil penalties set
forth in 2 U.S.C. 437g(a) (5) and (6) are increased to the greater of
the amount of any contribution or expenditure involved in the violation
or $5,500. The maximum penalty for a knowing and willful violation is
increased to the greater of twice the amount of any contribution or
expenditure involved in the violation or $11,000. The maximum penalty
for a violation of 2 U.S.C. 437g(a)(12) is
[[Page 11317]]
increased to $2,200, or $5,500 for a knowing and willful violation.
These increased CMP's shall apply only to violations that occur after
March 12, 1997.
These CMP provisions do not currently appear in the Commission's
rules. However, section 4(1) of the Interest Adjustment Act directs the
Commission to ``by regulation adjust each civil monetary penalty'' by
the specified percentage (emphasis added). The Commission is
accordingly adopting new 11 CFR 111.24, ``Civil Penalties,'' for this
purpose. This section lists each penalty established at 2 U.S.C.
437g(a)(5), (6) and (12), adjusted upwards by 10% as required by the
Interest Adjustment Act.
The Commission has no discretion in taking this action, but is
doing so pursuant to a statutory mandate. These are thus technical
amendments that are exempt from the notice and comment requirements of
the Administrative Procedure Act at 5 U.S.C. 553(b)(B) and the
legislative review requirements of 2 U.S.C. 438(d). These exemptions
allow the rule to become effective immediately upon publication in the
Federal Register. Accordingly, these amendments are effective on March
12, 1997.
Certification of No Effect Pursuant to 5 U.S.C. 605(b) Regulatory
Flexibility Act
The provisions of the Regulatory Flexibility Act are not applicable
to this final rule because the agency was not required to publish a
notice of proposed rulemaking under 5 U.S.C. 553 or any other laws.
Therefore, no regulatory flexibility analysis is required.
List of Subjects in 11 CFR Part 111
Administrative practice and procedure, Elections, Law enforcement.
For the reasons set out in the preamble, Subchapter A, Chapter I of
Title 11 of the Code of Federal Regulations is amended to read as
follows:
PART 111--COMPLIANCE PROCEDURE (2 U.S.C. 437g, 437d(a))
1. The authority citation for Part 111 is revised to read as
follows:
Authority: 2 U.S.C. 437g, 437d(a), 438(a)(8); 28 U.S.C. 2461 nt.
2. Part 111 is amended by adding new section 111.24, to read as
follows:
Sec. 111.24 Civil Penalties (2 U.S.C. 437g(a) (5), (6), (12), 28
U.S.C. 2461 nt.).
(a) Except as provided in paragraph (b) of this section, a civil
penalty negotiated by the Commission or imposed by a court for a
violation of the Act or chapter 95 or 96 of title 26 shall not exceed
the greater of $5,500 or an amount equal to any contribution or
expenditure involved in the violation. In the case of a knowing and
willful violation, the civil penalty shall not exceed the greater of
$11,000 or an amount equal to 200% of any contribution or expenditure
involved in the violation.
(b) Any Commission member or employee, or any other person, who in
violation of 2 U.S.C. 437g(a)912)(A) makes public any notification or
investigation under 2 U.S.C. 437g without receiving the written consent
of the person receiving such notification, or the person with respect
to whom such investigation is made, shall be fined not more than
$2,200. Any such member employee, or other person who knowingly and
willfully violates this provision shall be fined not more than $5,500.
Dated: March 6, 1997.
John Warren McGarry,
Chairman, Federal Election Commission.
[FR Doc. 97-6098 Filed 3-11-97; 8:45 am]
BILLING CODE 6715-01-M