[Federal Register Volume 84, Number 26 (Thursday, February 7, 2019)]
[Rules and Regulations]
[Pages 2461-2462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01056]


-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 18-1272]


Annual Adjustment of Civil Monetary Penalties To Reflect 
Inflation

AGENCY: Federal Communications Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 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 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: The rule is effective February 7, 2019. The civil monetary 
penalties are applicable beginning January 15, 2019.

FOR FURTHER INFORMATION CONTACT: Lisa S. Gelb, Deputy Chief, 
Enforcement Bureau, 202-418-2019.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
DA 18-1272, adopted and released on December 19, 2018. The document is 
available for download at https://www.fcc.gov/document/annual-adjustment-civil-monetary-penalties-reflect-inflation. 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 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 Inflation Adjustment 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 
14, 2018, and this Order follows that guidance. The Commission 
therefore updates the civil monetary penalties for 2019, to reflect an 
annual inflation adjustment based on the

[[Page 2462]]

percent change between each published October's CPI-U; in this case, 
October 2018 CPI-U (252.885)/October 2017 CPI-U (246.663) = 1.02522. 
The Commission multiplies 1.02522 by the most recent penalty amount and 
then rounds the result to the nearest dollar.

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. 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 continues to read as follows:

    Authority: 47 U.S.C. chs. 2, 5, 9, 13; Sec. 102(c), Div. P, 
Public Law 115-141, 132 Stat. 1084; 28 U.S.C. 2461, unless otherwise 
noted.


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


Sec.  1.80  Forfeiture proceedings.

    (b) * * *
    (8) * * *
    Note to paragraph (b)(8) * * *
    Section III * * *

------------------------------------------------------------------------
                                           Statutory amount after 2019
               Violation                   annual inflation adjustment
------------------------------------------------------------------------
Sec. 202(c) Common Carrier               $12,081, $604/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs.....  $12,081, 604/day.
Sec. 205(b) Common Carrier               $24,160.
 Prescriptions.
Sec. 214(d) Common Carrier Line          $2,415/day.
 Extensions.
Sec. 219(b) Common Carrier Reports.....  $2,415/day.
Sec. 220(d) Common Carrier Records &     $12,081/day.
 Accounts.
Sec. 223(b) Dial-a-Porn................  $125,190/day.
Sec. 227(e) Caller Identification......  $11,562/violation,
                                         $34,686/day for each day of
                                          continuing violation, up to
                                          $1,156,242 for any single act
                                          or failure to act.
Sec. 364(a) Forfeitures (Ships)........  $10,067/day (owner).
Sec. 364(b) Forfeitures (Ships)........  $2,014 (vessel master).
Sec. 386(a) Forfeitures (Ships)........  $10,067/day (owner).
Sec. 386(b) Forfeitures (Ships)........  $2,014 (vessel master).
Sec. 634 Cable EEO.....................  $892/day.
------------------------------------------------------------------------

    (9) * * *
    (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                       2019 annual
                                                             inflation
                                                            adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)........................................         $12,081
                                                                     604
47 U.S.C. 203(e)........................................          12,081
                                                                     604
47 U.S.C. 205(b)........................................          24,160
47 U.S.C. 214(d)........................................           2,415
47 U.S.C. 219(b)........................................           2,415
47 U.S.C. 220(d)........................................          12,081
47 U.S.C. 223(b)........................................         125,190
47 U.S.C. 227(e)........................................          11,562
                                                                  34,686
                                                               1,156,242
47 U.S.C. 362(a)........................................          10,067
47 U.S.C. 362(b)........................................           2,014
47 U.S.C. 386(a)........................................          10,067
47 U.S.C. 386(b)........................................           2,014
47 U.S.C. 503(b)(2)(A)..................................          50,334
                                                                 503,349
47 U.S.C. 503(b)(2)(B)..................................         201,340
                                                               2,013,399
47 U.S.C. 503(b)(2)(C)..................................         407,270
                                                               3,759,410
47 U.S.C. 503(b)(2)(D)..................................          20,134
                                                                 151,005
47 U.S.C. 503(b)(2)(F)..................................         115,624
                                                               1,156,242
47 U.S.C. 507(a)........................................           1,994
47 U.S.C. 507(b)........................................             292
47 U.S.C. 554...........................................             892
------------------------------------------------------------------------

* * * * *

[FR Doc. 2019-01056 Filed 2-6-19; 8:45 am]
BILLING CODE 6712-01-P