[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