[Federal Register Volume 86, Number 6 (Monday, January 11, 2021)]
[Rules and Regulations]
[Pages 1764-1766]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29024]


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DEPARTMENT OF COMMERCE

Office of the Secretary

15 CFR Part 6

[Docket No. 201209-0333]
RIN 0605-AA58


Civil Monetary Penalty Adjustments for Inflation

AGENCY: Office of the Chief Financial Officer and Assistant Secretary 
for Administration, Department of Commerce.

ACTION: Final rule.

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SUMMARY: This final rule is being issued to adjust for inflation each 
civil monetary penalty (CMP) provided by law within the jurisdiction of 
the United States Department of Commerce (Department of Commerce). The 
Department of Commerce's 2021 adjustments for inflation to CMPs apply 
only to CMPs with a dollar amount, and will not apply to CMPs written 
as functions of violations. The Department of Commerce's 2021 
adjustments for inflation to CMPs apply only to those CMPs, including 
those whose associated violation predated such adjustment, which are 
assessed by the Department of Commerce after the effective date of the 
new CMP level.

DATES: This rule is effective January 15, 2021.

FOR FURTHER INFORMATION CONTACT: Stephen M. Kunze, Deputy Chief 
Financial Officer and Director for Financial Management, Office of 
Financial Management, at (202) 482-1207, Department of Commerce, 1401 
Constitution Avenue NW, Room D200, Washington, DC 20230. The Department 
of Commerce's Civil Monetary Penalty Adjustments for Inflation are 
available for downloading from the Department of Commerce, Office of 
Financial Management's website at the following address: http://www.osec.doc.gov/ofm/OFM_Publications.html.

SUPPLEMENTARY INFORMATION: 

Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. 
L. 101-410; 28 U.S.C. 2461), as amended by the Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134), provided for agencies' 
adjustments for inflation to CMPs to ensure that CMPs continue to 
maintain their deterrent value and that CMPs due to the Federal 
Government were properly accounted for and collected.
    A CMP is defined as any penalty, fine, or other sanction that:
    1. Is for a specific monetary amount as provided by Federal law, or 
has a maximum amount provided for by Federal law; and,
    2. Is assessed or enforced by an agency pursuant to Federal law; 
and,
    3. Is assessed or enforced pursuant to an administrative proceeding 
or a civil action in the Federal courts.
    On November 2, 2015, the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (Section 701 of Pub. L. 114-74) 
further amended the Federal Civil Penalties Inflation Adjustment Act of 
1990 to improve the effectiveness of CMPs and to maintain their 
deterrent effect. This amendment (1) required agencies to adjust the 
CMP levels in effect as of November 2, 2015, with initial catch up 
adjustments for inflation through a final rulemaking to take effect no 
later than August 1, 2016; and (2) requires agencies to make subsequent 
annual adjustments for inflation to CMPs that shall take effect not 
later than January 15. The Department of Commerce's 2020 adjustments 
for inflation to CMPs were published in the Federal Register on January 
3, 2020, and the new CMP levels became effective January 15, 2020.
    The Department of Commerce's 2021 adjustments for inflation to CMPs 
apply only to CMPs with a dollar amount, and will not apply to CMPs 
written as functions of violations. These 2021 adjustments for 
inflation apply only to those CMPs, including those whose associated 
violation predated such adjustment, which are assessed by the 
Department of Commerce after the effective date of the new CMP level.
    This regulation adjusts for inflation CMPs that are provided by law 
within the jurisdiction of the Department of Commerce. The actual CMP 
assessed for a particular violation is dependent upon a variety of 
factors. For example, the National Oceanic and Atmospheric 
Administration's (NOAA) Policy for the Assessment of Civil 
Administrative Penalties and Permit Sanctions (Penalty Policy), a 
compilation of NOAA internal guidelines that are used when assessing 
CMPs for violations for most of the statutes NOAA enforces, will be 
interpreted in a manner consistent with this regulation to maintain the 
deterrent effect of the CMPs. The CMP ranges in the Penalty Policy are 
intended to aid enforcement attorneys in determining the appropriate 
CMP to assess for a particular violation. The Penalty Policy is 
maintained and made available to the public on NOAA's Office of the 
General Counsel, Enforcement Section website at: http://www.gc.noaa.gov/enforce-office.html.
    The Department of Commerce's 2021 adjustments for inflation to CMPs 
set forth in this regulation were determined pursuant to the 
methodology prescribed by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, which requires the maximum 
CMP, or the minimum and maximum CMP, as applicable, to be increased by 
the cost-of-living adjustment. The term ``cost-of-living adjustment'' 
is defined by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015. For the 2021 adjustments for inflation to 
CMPs, the cost-of-living adjustment is the percentage for each CMP by 
which the Consumer Price Index for the month of October 2020 exceeds 
the Consumer Price Index for the month of October 2019.

Classification

    Pursuant to 5 U.S.C. 553(b)(3)(B), there is good cause to issue 
this rule without prior public notice or opportunity for public comment 
because it would be impracticable and unnecessary. The Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 
701(b)) requires agencies to make annual adjustments for inflation to 
CMPs notwithstanding section 553 of title 5, United States Code. 
Additionally, the methodology used for adjusting CMPs for inflation is 
given by statute, with no discretion provided to agencies regarding the 
substance of the adjustments for inflation to CMPs. The Department of 
Commerce is charged only with performing ministerial computations to 
determine the dollar amounts of adjustments for inflation to CMPs. 
Accordingly, prior public notice and an opportunity for public comment 
are not required for this rule. For the same reasons, there is good 
cause under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effective 
date.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no new or 
revised

[[Page 1765]]

recordkeeping or reporting requirements.

Regulatory Analysis

E.O. 12866, Regulatory Review

    This rule is not a significant regulatory action as that term is 
defined in Executive Order 12866.

Regulatory Flexibility Act

    Because notice of proposed rulemaking and opportunity for comment 
are not required pursuant to 5 U.S.C. 553, or any other law, the 
analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 
601, et seq.) are inapplicable. Therefore, a regulatory flexibility 
analysis is not required and has not been prepared.

List of Subjects in 15 CFR Part 6

    Civil monetary penalties, Law enforcement.

    Dated: December 28, 2020.
Stephen M. Kunze,
Deputy Chief Financial Officer and Director for Financial Management, 
Department of Commerce.

Authority and Issuance

0
For the reasons stated in the preamble, the Department of Commerce 
revises 15 CFR part 6 to read as follows:

PART 6--CIVIL MONETARY PENALTY ADJUSTMENTS FOR INFLATION

Sec.
6.1 Definitions.
6.2 Purpose and scope.
6.3 Adjustments for inflation to civil monetary penalties.
6.4 Effective date of adjustments for inflation to civil monetary 
penalties.
6.5 Subsequent annual adjustments for inflation to civil monetary 
penalties.

    Authority:  Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Pub. L. 104-134, 110 Stat. 1321 (31 U.S.C. 3701 note); Sec. 
701 of Pub. L. 114-74, 129 Stat. 599 (28 U.S.C. 1 note; 28 U.S.C. 
2461 note).


Sec.  6.1   Definitions.

    (a) The Department of Commerce means the United States Department 
of Commerce.
    (b) Civil monetary penalty means any penalty, fine, or other 
sanction that:
    (1) Is for a specific monetary amount as provided by Federal law, 
or has a maximum amount provided for by Federal law; and
    (2) Is assessed or enforced by an agency pursuant to Federal law; 
and
    (3) Is assessed or enforced pursuant to an administrative 
proceeding or a civil action in the Federal courts.


Sec.  6.2   Purpose and scope.

    The purpose of this part is to make adjustments for inflation to 
civil monetary penalties, as required by the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410; 28 U.S.C. 2461), as 
amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-
134) and the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Section 701 of Pub. L. 114-74), of each civil 
monetary penalty provided by law within the jurisdiction of the United 
States Department of Commerce (Department of Commerce).


Sec.  6.3   Adjustments for inflation to civil monetary penalties.

    The civil monetary penalties provided by law within the 
jurisdiction of the Department of Commerce, as set forth in paragraphs 
(a) through (f) of this section, are hereby adjusted for inflation in 
2020 in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, from the amounts of such civil 
monetary penalties that were in effect as of January 15, 2020, to the 
amounts of such civil monetary penalties, as thus adjusted. The year 
stated in parenthesis represents the year that the civil monetary 
penalty was last set by law or adjusted by law (excluding adjustments 
for inflation).
    (a) United States Department of Commerce. (1) 31 U.S.C. 3802(a)(1), 
Program Fraud Civil Remedies Act of 1986 (1986), violation, maximum 
from $11,665 to $11,803.
    (2) 31 U.S.C. 3802(a)(2), Program Fraud Civil Remedies Act of 1986 
(1986), violation, maximum from $11,665 to $11,803.
    (3) 31 U.S.C. 3729(a)(1)(G), False Claims Act (1986); violation, 
minimum from $11,665 to $11,803; maximum from $23,331 to $23,607.
    (b) Bureau of Economic Analysis. 22 U.S.C. 3105(a), International 
Investment and Trade in Services Act (1990); failure to furnish 
information, minimum from $4,819 to $4,876; maximum from $48,192 to 
$48,762.
    (c) Bureau of Industry and Security. (1) 15 U.S.C. 5408(b)(1), 
Fastener Quality Act (1990), violation, maximum from $48,192 to 
$48,762.
    (2) 22 U.S.C. 6761(a)(1)(A), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $39,229 to $39,693.
    (3) 22 U.S.C. 6761(a)(l)(B), Chemical Weapons Convention 
Implementation Act (1998), violation, maximum from $7,846 to $7,939.
    (4) 50 U.S.C. 1705(b), International Emergency Economic Powers Act 
(2007), violation, maximum from $307,922 to $311,562.
    (5) 22 U.S.C. 8142(a), United States Additional Protocol 
Implementation Act (2006), violation, maximum from $31,881 to $32,258.
    (6) 50 U.S.C. 4819, Export Control Reform Act of 2018 (2018), 
violation, maximum from $305,292 to $308,901.
    (d) Census Bureau. (1) 13 U.S.C. 304, Collection of Foreign Trade 
Statistics (2002), each day's delinquency of a violation; total of not 
to exceed maximum per violation, from $1,419 to $1,436; maximum per 
violation, from $14,194 to $14,362.
    (2) 13 U.S.C. 305(b), Collection of Foreign Trade Statistics 
(2002), violation, maximum from $14,194 to $14,362.
    (e) International Trade Administration. (1) 19 U.S.C. 81s, Foreign 
Trade Zone (1934), violation, maximum from $2,976 to $3,011.
    (2) 19 U.S.C. 1677f(f)(4), U.S.-Canada Free Trade Agreement 
Protective Order (1988), violation, maximum from $214,097 to $216,628.
    (f) National Oceanic and Atmospheric Administration. (1) 51 U.S.C. 
60123(a), Land Remote Sensing Policy Act of 2010 (2010), violation, 
maximum from $11,766 to $11,905.
    (2) 51 U.S.C. 60148(c), Land Remote Sensing Policy Act of 2010 
(2010), violation, maximum from $11,766 to $11,905.
    (3) 16 U.S.C. 773f(a), Northern Pacific Halibut Act of 1982 (2007), 
violation, maximum from $246,339 to $249,251.
    (4) 16 U.S.C. 783, Sponge Act (1914), violation, maximum from 
$1,759 to $1,780.
    (5) 16 U.S.C. 957(d), (e), and (f), Tuna Conventions Act of 1950 
(1962):
    (i) Violation of 16 U.S.C. 957(a), maximum from $87,913 to $88,952.
    (ii) Subsequent violation of 16 U.S.C. 957(a), maximum from 
$189,352 to $191,590.
    (iii) Violation of 16 U.S.C. 957(b), maximum from $2,976 to $3,011.
    (iv) Subsequent violation of 16 U.S.C. 957(b), maximum from $17,583 
to $17,791.
    (v) Violation of 16 U.S.C. 957(c), maximum from $378,706 to 
$383,182.
    (6) 16 U.S.C. 957(i), Tuna Conventions Act of 1950,\1\ violation, 
maximum from $192,768 to $195,047.
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    \1\This National Oceanic and Atmospheric Administration maximum 
civil monetary penalty, as prescribed by law, is the maximum civil 
penalty per 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation 
and Management Act civil monetary penalty (paragraph (f)(15) of this 
section).
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    (7) 16 U.S.C. 959, Tuna Conventions Act of 1950,\2\ violation, 
maximum from $192,768 to $195,047.
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    \2\ See footnote 1.

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[[Page 1766]]

    (8) 16 U.S.C. 971f(a), Atlantic Tunas Convention Act of 1975,\3\ 
violation, maximum from $192,768 to $195,047.
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    \3\ See footnote 1.
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    (9) 16 U.S.C. 973f(a), South Pacific Tuna Act of 1988 (1988), 
violation, maximum from $535,243 to $541,570.
    (10) 16 U.S.C. 1174(b), Fur Seal Act Amendments of 1983 (1983), 
violation, maximum from $25,479 to $25,780.
    (11) 16 U.S.C. 1375(a)(1), Marine Mammal Protection Act of 1972 
(1972), violation, maximum from $29,755 to $30,107.
    (12) 16 U.S.C. 1385(e), Dolphin Protection Consumer Information 
Act,\4\ violation, maximum from $192,768 to $195,047.
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    \4\ See footnote 1.
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    (13) 16 U.S.C. 1437(d)(1), National Marine Sanctuaries Act (1992), 
violation, maximum from $181,484 to $183,629.
    (14) 16 U.S.C. 1540(a)(1), Endangered Species Act of 1973:
    (i) Violation as specified (1988), maximum from $53,524 to $54,157.
    (ii) Violation as specified (1988), maximum from $25,691 to 
$25,995.
    (iii) Otherwise violation (1978), maximum from $1,759 to $1,780.
    (15) 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation and 
Management Act (1990), violation, maximum from $192,768 to $195,047.
    (16) 16 U.S.C. 2437(a), Antarctic Marine Living Resources 
Convention Act of 1984,\5\ violation, maximum from $192,768 to 
$195,047.
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    \5\ See footnote 1.
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    (17) 16 U.S.C. 2465(a), Antarctic Protection Act of 1990,\6\ 
violation, maximum from $192,768 to $195,047.
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    \6\ See footnote 1.
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    (18) 16 U.S.C. 3373(a), Lacey Act Amendments of 1981 (1981):
    (i) 16 U.S.C. 3373(a)(1), violation, maximum from $27,553 to 
$27,879.
    (ii) 16 U.S.C. 3373(a)(2), violation, maximum from $689 to $697.
    (19) 16 U.S.C. 3606(b)(1), Atlantic Salmon Convention Act of 
1982,\7\ violation, maximum from $192,768 to $194,047.
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    \7\ See footnote 1.
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    (20) 16 U.S.C. 3637(b), Pacific Salmon Treaty Act of 1985,\8\ 
violation, maximum from $192,768 to $195,047.
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    \8\ See footnote 1.
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    (21) 16 U.S.C. 4016(b)(1)(B), Fish and Seafood Promotion Act of 
1986 (1986); violation, minimum from $1,166 to $1,180; maximum from 
$11,665 to $11,803.
    (22) 16 U.S.C. 5010, North Pacific Anadromous Stocks Act of 
1992,\9\ violation, maximum from $192,768 to $195,047.
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    \9\ See footnote 1.
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    (23) 16 U.S.C. 5103(b)(2), Atlantic Coastal Fisheries Cooperative 
Management Act,\10\ violation, maximum from $192,768 to $195,047.
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    \10\ See footnote 1.
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    (24) 16 U.S.C. 5154(c)(1), Atlantic Striped Bass Conservation 
Act,\11\ violation, maximum from $192,768 to $195,047.
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    \11\ See footnote 1.
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    (25) 16 U.S.C. 5507(a), High Seas Fishing Compliance Act of 1995 
(1995), violation, maximum from $167,433 to $169,412.
    (26) 16 U.S.C. 5606(b), Northwest Atlantic Fisheries Convention Act 
of 1995,\12\ violation, maximum from $192,768 to $195,047.
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    \12\ See footnote 1.
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    (27) 16 U.S.C. 6905(c), Western and Central Pacific Fisheries 
Convention Implementation Act,\13\ violation, maximum from $192,768 to 
$195,047.
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    \13\ See footnote 1.
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    (28) 16 U.S.C. 7009(c) and (d), Pacific Whiting Act of 2006,\14\ 
violation, maximum from $192,768 to $195,047.
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    \14\ See footnote 1.
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    (29) 22 U.S.C. 1978(e), Fishermen's Protective Act of 1967 (1971):
    (i) Violation, maximum from $29,755 to $30,107.
    (ii) Subsequent violation, maximum from $87,913 to $88,952.
    (30) 30 U.S.C. 1462(a), Deep Seabed Hard Mineral Resources Act 
(1980), violation, maximum, from $75,867 to $76,764.
    (31) 42 U.S.C. 9152(c), Ocean Thermal Energy Conversion Act of 1980 
(1980), violation, maximum from $75,867 to $76,764.
    (32) 16 U.S.C. 1827a, Billfish Conservation Act of 2012,\15\ 
violation, maximum from $192,768 to $195,047.
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    \15\ See footnote 1.
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    (33) 16 U.S.C. 7407(b), Port State Measures Agreement Act of 
2015,\16\ violation, maximum from $192,768 to $195,047.
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    \16\ See footnote 1.
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    (34) 16 U.S.C. 1826g(f), High Seas Driftnet Fishing Moratorium 
Protection Act,\17\ violation, maximum from $192,768 to $195,047.
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    \17\ See footnote 1.
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    (35) 16 U.S.C. 7705, Ensuring Access to Pacific Fisheries Act,\18\ 
violation, maximum from $192,768 to $195,047.
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    \18\ See footnote 1.
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    (36) 16 U.S.C. 7805, Ensuring Access to Pacific Fisheries Act,\19\ 
violation, maximum from $192,768 to $195,047.
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    \19\ See footnote 1.
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    (g) National Technical Information Service. 42 U.S.C. 1306c(c), 
Bipartisan Budget Act of 2013 (2013), violation, minimum from $1,000 to 
$1,012; maximum total penalty on any person for any calendar year, 
excluding willful or intentional violations from $250,000 to $252,955.


Sec.  6.4   Effective date of adjustments for inflation to civil 
monetary penalties.

    The Department of Commerce's 2021 adjustments for inflation made by 
Sec.  6.3, of the civil monetary penalties there specified, are 
effective on January 15, 2021, and said civil monetary penalties, as 
thus adjusted by the adjustments for inflation made by Sec.  6.3, apply 
only to those civil monetary penalties, including those whose 
associated violation predated such adjustment, which are assessed by 
the Department of Commerce after the effective date of the new civil 
monetary penalty level, and before the effective date of any future 
adjustments for inflation to civil monetary penalties thereto made 
subsequent to January 15, 2021 as provided in Sec.  6.5.


Sec.  6.5   Subsequent annual adjustments for inflation to civil 
monetary penalties.

    The Secretary of Commerce or his or her designee by regulation 
shall make subsequent adjustments for inflation to the Department of 
Commerce's civil monetary penalties annually, which shall take effect 
not later than January 15, notwithstanding section 553 of title 5, 
United States Code.

[FR Doc. 2020-29024 Filed 1-8-21; 8:45 am]
BILLING CODE 3510-DP-P