[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8170-8171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00365]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 16-1453]


Annual 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 to reflect annual adjustments for inflation in order to improve 
their effectiveness and maintain their deterrent effect. The 2015 
Inflation Adjustment Act provides that the new penalty levels shall 
apply to penalties assessed after the effective date of the increase, 
including when the penalties whose associated violation predate the 
increase.

DATES: Effective January 24, 2017.

FOR FURTHER INFORMATION CONTACT: Celia Lewis, Enforcement Bureau, 202-
418-7456, or Gregory Haledjian, Enforcement Bureau, 202-418-7440.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
DA 16-1453, adopted and released on December 30, 2016. The document is 
available for download at http://transition.fcc.gov/Daily_Releases/Daily_Business/2016/db1230/DA-16-1453A1.pdf. The complete text of this 
document is also available for inspection and copying during normal 
business hours in the FCC Reference Information Center, Portals II, 445 
12th Street SW., Room CY-A257, Washington, DC 20554.
    On November 2, 2015, President Obama 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, agencies are required to make annual 
inflationary adjustments by January 15 each year, beginning in 2017. 
The adjustments are calculated pursuant to Office of Management and 
Budget (OMB) guidance. OMB issued guidance on December 16, 2016, and 
this Order follows that guidance. We therefore update the civil 
monetary penalties set forth in the Commission's rules, to reflect an 
annual inflation adjustment that derives from OMB's cost-of-living 
multiplier of 1.01636. The cost-of-living adjustment is ``the 
percentage (if any)'' by which the ``(A) Consumer Price Index for the 
month of October preceding the date of the adjustment, exceeds (B) the 
Consumer Price Index for the month of October 1 year before the month 
of October referred to in subparagraph (A).''
    This document does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995 
(PRA), Public Law 104-13. 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 Enforcement Bureau will coordinate with the Commission's 
Consumer & Governmental Affairs Bureau, Reference Information Center to 
report this Order to Congress and the Government Accountability Office 
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Penalties.


[[Page 8171]]


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 CFR part 1 as follows:

PART 1--PRACTICE AND PROCEDURE

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

    Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 
155, 157, 160, 201, 225, 227, 303, 309, 301, 332, 1403, 1404, 1451, 
1452, and 1455.

0
2. Section 1.80 is amended by revising the table in Section III of the 
note to paragraph (b)(8) and revising paragraph (b)(9) to read as 
follows:


Sec.  1.80  Forfeiture proceedings.

* * * * *
    (b) * * *
    (8) * * *
    Note to paragraph (b)(8) * * *
    Section III. Non-Section 503 Forfeitures That Are Affected by the 
Downward Adjustment Factors
* * * * *

------------------------------------------------------------------------
               Violation                      Statutory amount  ($)
------------------------------------------------------------------------
Sec. 202(c) Common Carrier               $11,548, $577/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs.....  $11,548, $577/day.
Sec. 205(b) Common Carrier               $23,095.
 Prescriptions.
Sec. 214(d) Common Carrier Line          $2,309/day.
 Extensions.
Sec. 219(b) Common Carrier Reports.....  $2,309/day.
Sec. 220(d) Common Carrier Records &     $11,548/day.
 Accounts.
Sec. 223(b) Dial-a-Porn................  $119,668/day.
Sec. 227(e) Caller Identification......  $11,052/violation. $33,156/day
                                          for each day of continuing
                                          violation, up to $1,105,241
                                          for any single act or failure
                                          to act.
Sec. 364(a) Forfeitures (Ships)........  $9,623/day (owner).
Sec. 364(b) Forfeitures (Ships)........  $1,925 (vessel master).
Sec. 386(a) Forfeitures (Ships)........  $9,623/day (owner).
Sec. 386(b) Forfeitures (Ships)........  $1,925 (vessel master).
Sec. 634 Cable EEO.....................  $853/day.
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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, 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 annually for inflation by order published no 
later than January 15 each year. Annual inflation adjustments will be 
based on the percentage (if any) by which the CPI-U for October 
preceding the date of the adjustment exceeds the prior year's CPI-U for 
October. The Office of Management and Budget (OMB) will issue 
adjustment rate guidance no later than December 15 each year to adjust 
for inflation in the CPI-U as of the most recent October.
    (ii) The application of the annual inflation adjustment required by 
the foregoing Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 results in the following adjusted statutory 
maximum forfeitures authorized by the Communications Act:

------------------------------------------------------------------------
                                                              Maximum
                                                           penalty after
                   U.S. Code citation                     2017 inflation
                                                            adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)........................................         $11,548
                                                                     577
47 U.S.C. 203(e)........................................          11,548
                                                                     577
47 U.S.C. 205(b)........................................          23,095
47 U.S.C. 214(d)........................................           2,309
47 U.S.C. 219(b)........................................           2,309
47 U.S.C. 220(d)........................................          11,548
47 U.S.C. 223(b)........................................         119,668
47 U.S.C. 227(e)........................................          11,052
                                                                  33,156
                                                               1,105,241
47 U.S.C. 362(a)........................................           9,623
47 U.S.C. 362(b)........................................           1,925
47 U.S.C. 386(a)........................................           9,623
47 U.S.C. 386(b)........................................           1,925
47 U.S.C. 503(b)(2)(A)..................................          48,114
                                                                 481,147
47 U.S.C. 503(b)(2)(B)..................................         192,459
                                                               1,924,589
47 U.S.C. 503(b)(2)(C)..................................         389,305
                                                               3,593,585
47 U.S.C. 503(b)(2)(D)..................................          19,246
                                                                 144,344
47 U.S.C. 503(b)(2)(F)..................................         110,524
                                                               1,105,241
47 U.S.C. 507(a)........................................           1,906
47 U.S.C. 507(b)........................................             279
47 U.S.C. 554...........................................             853
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[FR Doc. 2017-00365 Filed 1-23-17; 8:45 am]
 BILLING CODE 6712-01-P