[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42554-42556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14801]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 16-644]


Adjustment of Civil Monetary Penalties To Reflect Inflation

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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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 for inflation.

DATES: This rule is effective August 1, 2016.

FOR FURTHER INFORMATION CONTACT: Donna Cyrus, Enforcement Bureau, 202-
418-7325.

SUPPLEMENTARY INFORMATION: On June 9, 2016, the Enforcement Bureau of 
the Federal Communications Commission adopted and released an order on 
delegated authority, DA 16-644, which adjusts the Commission's 
forfeiture penalties for inflation. On November 2, 2015, the President 
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, federal agencies, 
including the Federal Communications Commission, must issue an interim 
final rulemaking and publish interim final rules by July 1, 2016, which 
will take effect by August 1, 2016. According to the 2015 Inflation 
Adjustment Act, the initial inflation adjustment will be the

[[Page 42555]]

percentage by which the Consumer Price Index (CPI) for the month of 
October 2015 exceeds the CPI for the month of October of the calendar 
year during which the civil monetary penalty ``was established or 
adjusted under a provision of law other than this Act.'' The 2015 
Inflation Adjustment Act requires the Director of the Office of 
Management and Budget (OMB) to issue, guidance to agencies on 
implementing the Act. OMB issued that guidance on February 24, 2016, 
and this Order follows that guidance. Pursuant to the 2015 Inflation 
Adjustment Act, we update the civil monetary penalties set forth in the 
Communications Act of 1934, as amended (Communications Act or Act), to 
reflect an ``inflation adjustment'' that derives from the ``cost-of-
living adjustment.'' The cost-of-living adjustment reflects the total 
inflation that has taken place in the years since the penalties were 
last set or adjusted by statute or rule.
    This document does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. In addition, therefore, 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 Commission will not send a copy of this Order per the 
Congressional Review Act, see 5 U.S.C. 801(a)(1)(A), because the rules 
are amended only to account for inflation and do not substantially 
affect the rights or obligations of non-agency parties.

List of Subjects

    Administrative practice and procedure, Penalties.

    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 part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

Subpart A--General Rules of Practice and Procedure

0
1. The authority citation for part 1 continues to read as follows:

    Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 
155, 157, 225, 227, 303(r), and 309.


0
2. Section 1.80 is amended by revising the table following paragraph 
(b)(8) ``Section III. Non-Section 503 Forfeitures That Are Affected by 
the Downward Adjustment Factors'' and revising paragraph (b)(9) to read 
as follows:


Sec.  1.80  Forfeiture proceedings.

* * * * *

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

* * * * *

------------------------------------------------------------------------
                 Violation                       Statutory amount ($)
------------------------------------------------------------------------
Sec. 202(c) Common Carrier Discrimination..  $11,362, $568/day.
Sec. 203(e) Common Carrier Tariffs.........  11,362, 568/day.
Sec. 205(b) Common Carrier Prescriptions...  22,723.
Sec. 214(d) Common Carrier Line Extensions.  2,272/day.
Sec. 219(b) Common Carrier Reports.........  2,272/day.
Sec. 220(d) Common Carrier Records &         11,362/day.
 Accounts.
Sec. 223(b) Dial-a-Porn....................  117,742.
Sec. 227(e) Caller Identification..........  10,874/violation. 32,622/
                                              day for each day of
                                              continuing violation, up
                                              to 1,087,450 for any
                                              single act or failure to
                                              act.
Sec. 364(a) Forfeitures (Ships)............  9,468/day (owner).
Sec. 364(b) Forfeitures (Ships)............  1,894 (vessel master).
Sec. 386(a) Forfeitures (Ships)............  9,468/day (owner).
Sec. 386(b) Forfeitures (Ships)............  1,894 (vessel master).
Sec. 634 Cable EEO.........................  839.
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    (9) Inflation adjustments to the maximum forfeiture amount.
    (i) Pursuant to the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015 (2015 Inflation Adjustment Act), 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 for inflation 
with an initial ``catch-up'' adjustment through an interim final 
rulemaking and interim final rules published by July 1, 2016, to take 
effect by August 1, 2016. Subsequent annual adjustments shall be 
published by January 15 each year. Catch-up adjustments will be based 
on the `cost-of-living adjustment' (CPI), which is the percentage (if 
any) by which the CPI for October in the year of the previous 
adjustment exceeds the CPI for October 2015. Annual inflation 
adjustments will be based on the percentage (if any) by which the CPI 
for October preceding the date of the adjustment exceeds the prior 
year's CPI for October. The Office of Management and Budget has 
provided ``Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment 
Multiplier by Calendar Year'' (Table A) to determine the civil monetary 
penalty catch-up adjustment multiplier by calendar year. The Catch-up 
adjustment is determined by
    (A) Identifying from Table A, column A the latest year the penalty 
level or penalty range was established or last adjusted by statute or 
regulation (other than pursuant to the Inflation Adjustment Act), and 
from column B, identifying the corresponding multiplier to adjust the 
penalty level or range for inflation;
    (B) Multiplying the corresponding amount from column B by the 
amount of the maximum penalty level or the range of minimum and maximum 
penalties as most recently established or adjusted by statute or 
regulation (other than pursuant to the Inflation Adjustment Act before 
November 2, 2015);

[[Page 42556]]

    (C) Rounding to the nearest dollar; and
    (D) Comparing the new amount or range of the penalty with the 
amount or range in the prior year to ensure the maximum increase is not 
more than 150 percent of the most recent levels.
    (ii) The application of the inflation adjustments required by the 
2015 Inflation Adjustment Act, 28 U.S.C. 2461 note, results in the 
following adjusted statutory maximum forfeitures authorized by the 
Communications Act:

------------------------------------------------------------------------
                                                              Maximum
                                                           penalty after
                                                          2015 inflation
                   U.S. Code citation                        adjustment
                                                                act
                                                            adjustment
                                                                ($)
------------------------------------------------------------------------
47 U.S.C. 202(c)........................................         $11,362
                                                                     568
47 U.S.C. 203(e)........................................          11,362
                                                                     568
47 U.S.C. 205(b)........................................          22,723
47 U.S.C. 214(d)........................................           2,272
47 U.S.C. 219(b)........................................           2,272
47 U.S.C. 220(d)........................................          11,362
47 U.S.C. 223(b)........................................         117,742
47 U.S.C. 227(e)........................................          10,874
                                                                  32,622
                                                               1,087,450
47 U.S.C. 362(a)........................................           9,468
47 U.S.C. 362(b)........................................           1,894
47 U.S.C. 386(a)........................................           9,468
47 U.S.C. 386(b)........................................           1,894
47 U.S.C. 503(b)(2)(A)..................................          47,340
                                                                 473,402
47 U.S.C. 503(b)(2)(B)..................................         189,361
                                                               1,893,610
47 U.S.C. 503(b)(2)(C)..................................         383,038
                                                               3,535,740
47 U.S.C. 503(b)(2)(D)..................................          18,936
                                                                 142,021
                                                                 108,745
47 U.S.C. 503(b)(2)(F)..................................       1,087,450
                                                                   1,875
47 U.S.C. 507(a)........................................  ..............
47 U.S.C. 507(b)........................................             275
47 U.S.C. 554...........................................             839
 
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[FR Doc. 2016-14801 Filed 6-29-16; 8:45 am]
 BILLING CODE 6712-01-P