[Federal Register Volume 83, Number 22 (Thursday, February 1, 2018)]
[Rules and Regulations]
[Pages 4600-4601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01990]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 18-12]


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 February 1, 2018.

FOR FURTHER INFORMATION CONTACT: Lisa Gelb, Enforcement Bureau, 202-
418-1479.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
DA 18-12, adopted and released on January 5, 2018. The document is 
available for download at http://transition.fcc.gov/Daily_Releases/Daily_Business/2018/db0105/DA-18-12A1.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.
    The Bipartisan Budget Act of 2015 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. The 
adjustments are calculated pursuant to Office of Management and Budget 
(OMB) guidance. OMB issued guidance on December 15, 2017, 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 1.02041.

Paperwork Reduction Act

    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).

Congressional Review Act

    The Commission will send a copy of 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.

Federal Communications Commission.
Lisa S. Gelb,
Deputy Chief, 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: 47 U.S.C. 34-39, 151, 154(i), 154(j), 155, 157, 160, 
201, 225, 227, 303, 309, 310, 332, 1403, 1404, 1451, 1452, 1455; 28 
U.S.C. 2461 note.

Subpart A--General Rules of Practice and Procedure

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               $11,784, $589/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs.....  $11,784, $589/day.
Sec. 205(b) Common Carrier               $23,566.
 Prescriptions.
Sec. 214(d) Common Carrier Line          $2,356/day.
 Extensions.
Sec. 219(b) Common Carrier Reports.....  $2,356/day.
Sec. 220(d) Common Carrier Records &     $11,784/day.
 Accounts.
Sec. 223(b) Dial-a-Porn................  $122,110/day.
Sec. 227(e) Caller Identification......  $11,278/violation.
                                         $33,833/day for each day of
                                          continuing violation, up to
                                          $1,127,799 for any single act
                                          or failure to act.
Sec. 364(a) Forfeitures (Ships)........  $9,819/day (owner).

[[Page 4601]]

 
Sec. 364(b) Forfeitures (Ships)........  $1,964 (vessel master).
Sec. 386(a) Forfeitures (Ships)........  $9,819/day (owner).
Sec. 386(b) Forfeitures (Ships)........  $1,964 (vessel master).
Sec. 634 Cable EEO.....................  $870/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 2018
                  U.S. Code citation                       inflation
                                                           adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c).....................................            $11,784
                                                                     589
47 U.S.C. 203(e).....................................             11,784
                                                                     589
47 U.S.C. 205(b).....................................             23,566
47 U.S.C. 214(d).....................................              2,356
47 U.S.C. 219(b).....................................              2,356
47 U.S.C. 220(d).....................................             11,784
47 U.S.C. 223(b).....................................            122,110
47 U.S.C. 227(e).....................................             11,278
                                                                  33,833
                                                               1,127,799
47 U.S.C. 362(a).....................................              9,819
47 U.S.C. 362(b).....................................              1,964
47 U.S.C. 386(a).....................................              9,819
47 U.S.C. 386(b).....................................              1,964
47 U.S.C. 503(b)(2)(A)...............................             49,096
                                                                 490,967
47 U.S.C. 503(b)(2)(B)...............................            196,387
                                                               1,963,870
47 U.S.C. 503(b)(2)(C)...............................            397,251
                                                               3,666,930
47 U.S.C. 503(b)(2)(D)...............................             19,639
                                                                 147,290
47 U.S.C. 503(b)(2)(F)...............................            112,780
                                                               1,127,799
47 U.S.C. 507(a).....................................              1,945
47 U.S.C. 507(b).....................................                285
47 U.S.C. 554........................................                870
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[FR Doc. 2018-01990 Filed 1-31-18; 8:45 am]
 BILLING CODE 6712-01-P