[Federal Register Volume 65, Number 199 (Friday, October 13, 2000)]
[Rules and Regulations]
[Pages 60868-60869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26193]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[FCC 00-347]


Inflation Adjustment of Maximum Forfeiture Penalties

AGENCY: Federal Communications Commission

ACTION: Final rule.

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SUMMARY: This document increases the maximum monetary forfeiture 
penalties available to the Commission under its rules governing 
monetary forfeiture proceedings to account for inflation. The 
inflationary adjustment is necessary to implement the Debt Collection 
Improvement Act of 1996, which requires federal agencies to adjust 
``civil monetary penalties provided by law'' at least once every four 
years. The increase covers the period from the last adjustment on June 
1995, to June 1999. During that period, the Consumer Price Index 
(``CPI'') increased by 9.02%. The CPI increase was applied to each 
maximum penalty, and then rounded using the statutorily defined rules 
to adjust each maximum monetary forfeiture penalty accordingly. The 
base forfeiture amounts in the Commission's rules remain unchanged by 
this rule revision.

DATES: Effective November 13, 2000.

FOR FURTHER INFORMATION CONTACT: Thomas Spavins, Enforcement Bureau, 
Technical and Public Safety Division, 202-418-1739.

SUPPLEMENTARY INFORMATION: This is a summary of the Order by the 
Commission, FCC 00-347, adopted on September 14, 2000, and released on 
September 19, 2000. The complete text of this Order is available for 
inspection and copying during normal business hours in the FCC 
Reference Information Center, Courtyard Level, 445 12th Street, SW., 
Washington, DC, and also may be purchased from the Commission's copy 
contractor, International Transcription Services, Inc., at 202-857-
3800, CY-B400, 445 12th Street, SW., Washington, DC.
    This Order amends Sec. 1.80(b) of the Commission's rules by 
increasing the maximum monetary forfeiture penalties available to the 
Commission. The Order adjusts the maximum forfeiture penalties to 
account for the increase in the Consumer Price Index between June 1995 
and June 1999, as required by the Debt Collection Improvement Act of 
1996, 28 U.S.C. 2461, and as defined in Sec. 1.80(b)(5) of the 
Commission's rules. In addition to amending Sec. 1.80(b) of the 
Commission's rules, the Order also deletes some obsolete or duplicative 
material. The Order does not affect the forfeiture base amounts 
specified in Sec. 1.80(b)(4) of the Commission's rules.
    As the Order simply implements the requirements of Sec. 1.80(b)(5) 
and updates associated text, the Commission finds good cause to 
conclude that notice and comment procedures of the Administrative 
Procedure Act are unnecessary. 5 U.S.C. 553(b)(3)(B). Since a general 
notice of proposed rulemaking is not required, the Regulatory 
Flexibility Act does not apply. 5 U.S.C. 601 et seq.
    The actions taken in the Order have been analyzed with respect to 
the Paperwork Reduction Act of 1995, and found to impose no new or 
modified reporting and record keeping requirements or burdens on the 
public.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Penalties.

Federal Comunications Commission.
William F. Caton,
Deputy Secretary.

Rule Changes

    For the reasons discussed in the preamble, the Federal 
Communications Commission amends 47 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

Subpart A--General Rules of Practice and Procedure

Miscellaneous Proceedings

    1. The authority citation for part 1 continues to read as follows:

    Authority: 47 U.S.C. 325(e).


    2. Section 1.80 is amended by:
    (a) Revising paragraphs (b)(1) through the text of paragraph (b)(4) 
preceding the table.
    (b) Revising the first paragraph and Section III of the note to 
paragraph (b)(4).
    (c) Revising paragraph (b)(5)(iii) including the table.
    The revisions read as follows:


Sec. 1.80  Forfeiture proceedings.

* * * * *
    (b) Limits on the amount of forfeiture assessed. (1) If the 
violator is a broadcast station licensee or permittee, a cable 
television operator, or an applicant for any broadcast or cable 
television operator license, permit, certificate, or other instrument 
of authorization issued by the Commission, except as otherwise noted in 
this paragraph, the forfeiture penalty

[[Page 60869]]

under this section shall not exceed $27,500 for each violation or each 
day of a continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of $300,000 for any 
single act or failure to act described in paragraph (a) of this 
section. There is no limit on forfeiture assessments for EEO violations 
by cable operators that occur after notification by the Commission of a 
potential violation. See Section 634(f)(2) of the Communications Act.
    (2) If the violator is a common carrier subject to the provisions 
of the Communications Act or an applicant for any common carrier 
license, permit, certificate, or other instrument of authorization 
issued by the Commission, the amount of any forfeiture penalty 
determined under this section shall not exceed $120,000 for each 
violation or each day of a continuing violation, except that the amount 
assessed for any continuing violation shall not exceed a total of 
$1,200,000 for any single act or failure to act described in paragraph 
(a) of this section.
    (3) In any case not covered in paragraphs (b)(1) or (b)(2) of this 
section, the amount of any forfeiture penalty determined under this 
section shall not exceed $11,000 for each violation or each day of a 
continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of $87,500 for any single 
act or failure to act described in paragraph (a) of this section.


    Note to paragraph (b)(3): For information concerning notices of 
apparent liability and notices of opportunity for hearing, see 
paragraphs (e), (f), and (g) of this section.


    (4) Factors considered in determining the amount of the forfeiture 
penalty. In determining the amount of the forfeiture penalty, the 
Commission or its designee will take into account the nature, 
circumstances, extent and gravity of the violations and, with respect 
to the violator, the degree of culpability, any history of prior 
offenses, ability to pay, and such other matters as justice may 
require.

    Note to paragraph (b)(4):

Guidelines for Assessing Forfeitures

    The Commission and its staff may use these guidelines in 
particular cases. The Commission and its staff retain the discretion 
to issue a higher or lower forfeiture than provided in the 
guidelines, to issue no forfeiture at all, or to apply alternative 
or additional sanctions as permitted by the statute. The forfeiture 
ceiling per violation or per day for a continuing violation stated 
in Section 503 of the Communications Act and the Commission's Rules 
are described in Sec. 1.80(b)(5)(iii). These statutory maxima are 
effective November 13, 2000. Forfeitures issued under other sections 
of the Act are dealt with separately in Section III of this note.
* * * * *

Section III. Non-Section 503 Forfeitures That Are Affected by the 
Downward Adjustment Factors

    Unlike Section 503 of the Act, which establishes maximum 
forfeiture amounts, other sections of the Act, with one exception, 
state prescribed amounts of forfeitures for violations of the 
relevant section. These amounts are then subject to mitigation or 
remission under Section 504 of the Act. The one exception is Section 
223 of the Act, which provides a maximum forfeiture per day. For 
convenience, the Commission will treat this amount as if it were a 
prescribed base amount, subject to downward adjustments. The 
following amounts are adjusted for inflation pursuant to the Debt 
Collection Improvement Act of 1996 (DCIA), 28 U.S.C. 2461. These 
non-Section 503 forfeitures may be adjusted downward using the 
``Downward Adjustment Criteria'' shown for Section 503 forfeitures 
in Section II of this note.

------------------------------------------------------------------------
              Violation                      Statutory amount ($)
------------------------------------------------------------------------
Sec. 202(c) Common Carrier            7,600 330/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs..  7,600 330/day.
Sec. 205(b) Common Carrier            13,200.
 Prescriptions.
Sec. 214(d) Common Carrier Line       1,200/day.
 Extensions.
Sec. 219(b) Common Carrier Reports..  1,200.
Sec. 220(d) Common Carrier Records &  7,600/day.
 Accounts.
Sec. 223(b) Dial-a-Porn.............  60,000 maximum/day.
Sec. 364(a) Ship Station Inspection.  5,500 (owner).
Sec. 364(b) Ship Station Inspection.  1,100 (vessel master).
Sec. 386(a) Forfeitures.............  5,500/day (owner).
Sec. 386(b) Forfeitures.............  1,100 (vessel master).
Sec. 634 Cable EEO..................  500/day.
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    (5) * * *
    (iii) The application of the inflation adjustments required by the 
DCIA, 28 U.S.C. 2461, results in the following adjusted statutory 
maximum forfeitures authorized by the Communications Act:

------------------------------------------------------------------------
                                                               Maximum
                                                               penalty
                     U.S. Code citation                       after DCIA
                                                              adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)...........................................       $7,600
                                                                     330
47 U.S.C 203(e)............................................        7,600
                                                                     330
47 U.S.C. 205(b)...........................................       13,200
47 U.S.C. 214(d)...........................................        1,200
47 U.S.C. 219(b)...........................................        1,200
47 U.S.C. 220(d)...........................................        7,600
47 U.S.C. 223(b)...........................................       60,000
47 U.S.C. 362(a)...........................................        5,500
47 U.S.C. 362(b)...........................................        1,100
47 U.S.C. 386(a)...........................................        5,500
47 U.S.C. 386(b)...........................................        1,100
47 U.S.C. 503(b)(2)(A).....................................       27,500
                                                                 300,000
47 U.S.C. 503(b)(2)(B).....................................      120,000
                                                               1,200,000
47 U.S.C. 503(b)(2)(C).....................................       11,000
                                                                  87,500
47 U.S.C. 507(a)...........................................          550
47 U.S.C. 507(b)...........................................          110
47 U.S.C. 554..............................................          500
------------------------------------------------------------------------


    Note to paragraph (b)(5): Pursuant to Public Law 104-134, the 
first inflation adjustment cannot exceed 10 percent of the statutory 
maximum amount.

* * * * *
[FR Doc. 00-26193 Filed 10-12-00; 8:45 am]
BILLING CODE 6712-01-U