[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Rules and Regulations]
[Pages 3830-3832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00432]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 20-1540; FRS 17365]


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 January 15, 2021. The civil monetary 
penalties are applicable beginning January 15, 2021.

ADDRESSES: Federal Communications Commission, 45 L Street NE, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Lisa Gelb, Deputy Chief, Enforcement 
Bureau, at [email protected] or 202-418-2019.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order, 
DA 20-1540, adopted and released on December 29, 2020. The document is 
available for download at https://www.fcc.gov/document/2021-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, 
45 L Street NE, Washington, DC 20554. To request this document in 
accessible formats for people with disabilities (e.g., Braille, large 
print, electronic files, audio format, etc.) or to request reasonable 
accommodations (e.g., accessible format documents, sign language 
interpreters, CART, etc.), send an email to [email protected] or call the 
FCC's Consumer and Governmental Affairs Bureau at (202) 418-0530 
(voice), (202) 418-0432 (TTY).
    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 
23, 2020, and this Order follows that guidance. The Commission 
therefore updates the civil monetary penalties for 2021, to reflect an 
annual inflation adjustment based on the percent change between each 
published October's CPI-U; in this case, October 2020 CPI-U (260.388)/
October 2019 CPI-U (257.346) = 1.01182. The Commission multiplies 
1.01182 by the most recent penalty amount and then rounds the result to 
the nearest dollar.
    The Bureau notes that, although our annual inflation adjustment 
orders have specifically amended ``[Sec.  ] 1.80(b) of the Commission's 
rules . . . to adjust the forfeiture penalties for inflation, in 
accordance with the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Inflation Adjustment Act),'' we did not 
list all of the relevant rules in the Appendix to those orders. In 
addition, Sec.  1.80(b) was recently amended to include new civil 
monetary penalties adopted since the prior inflation adjustment order. 
Therefore, we now include amendments to Sec.  1.80(b)(1) through (8) of 
the Commission's rules, and the penalties in paragraph (b)(6) 
associated with the Preventing Illegal Radio Abuse Through Enforcement 
Act (PIRATE Act). The penalties stated in these provisions reflect all 
appropriate inflation adjustments under the 2015 Inflation Adjustment 
Act, including the initial ``catch up'' adjustment where appropriate.

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 has determined, and the Administrator of the Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
concurs that this rule is non-major under the Congressional Review Act, 
5 U.S.C. 804(2). The Commission will send a copy of this Order to 
Congress and the Government Accountability Office pursuant to 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 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; 28 U.S.C. 2461, unless 
otherwise noted.


0
2. Amend Sec.  1.80 by revising paragraphs (b)(1) through (8), the 
table in section III of the note to paragraph (b)(8), and paragraph 
(b)(10)(ii) to read as follows:

[[Page 3831]]

Sec.  1.80  Forfeiture proceedings.

* * * * *
    (b) * * *
    (1) Forfeiture penalty for a broadcast station licensee, permittee, 
cable television operator, or applicant. If the violator is a broadcast 
station licensee or permittee, a cable television operator, or an 
applicant for any broadcast or cable television operator license, 
permit, certificate, or other instrument of authorization issued by the 
Commission, except as otherwise noted in this paragraph (b)(1), the 
forfeiture penalty under this section shall not exceed $51,827 for each 
violation or each day of a continuing violation, except that the amount 
assessed for any continuing violation shall not exceed a total of 
$518,283 for any single act or failure to act described in paragraph 
(a) of this section. There is no limit on forfeiture assessments for 
EEO violations by cable operators that occur after notification by the 
Commission of a potential violation. See section 634(f)(2) of the 
Communications Act. Notwithstanding the foregoing in this section, if 
the violator is a broadcast station licensee or permittee or an 
applicant for any broadcast license, permit, certificate, or other 
instrument of authorization issued by the Commission, and if the 
violator is determined by the Commission to have broadcast obscene, 
indecent, or profane material, the forfeiture penalty under this 
section shall not exceed $419,353 for each violation or each day of a 
continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of $3,870,946 for any 
single act or failure to act described in paragraph (a) of this 
section.
    (2) Forfeiture penalty for a common carrier or applicant. If the 
violator is a common carrier subject to the provisions of the 
Communications Act or an applicant for any common carrier license, 
permit, certificate, or other instrument of authorization issued by the 
Commission, the amount of any forfeiture penalty determined under this 
section shall not exceed $207,314 for each violation or each day of a 
continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of $2,073,133 for any 
single act or failure to act described in paragraph (a) of this 
section.
    (3) Forfeiture penalty for a manufacturer or service provider. If 
the violator is a manufacturer or service provider subject to the 
requirements of section 255, 716, or 718 of the Communications Act, and 
is determined by the Commission to have violated any such requirement, 
the manufacturer or service provider shall be liable to the United 
States for a forfeiture penalty of not more than $119,055 for each 
violation or each day of a continuing violation, except that the amount 
assessed for any continuing violation shall not exceed a total of 
$1,190,546 for any single act or failure to act.
    (4) Forfeiture penalty for a 227(e) violation. Any person 
determined to have violated section 227(e) of the Communications Act or 
the rules issued by the Commission under section 227(e) of the 
Communications Act shall be liable to the United States for a 
forfeiture penalty of not more than $11,905 for each violation or three 
times that amount for each day of a continuing violation, except that 
the amount assessed for any continuing violation shall not exceed a 
total of $1,190,546 for any single act or failure to act. Such penalty 
shall be in addition to any other forfeiture penalty provided for by 
the Communications Act.
    (5) Forfeiture penalty for a 227(b)(4)(B) violation. Any person 
determined to have violated section 227(b)(4)(B) of the Communications 
Act or the rules in 47 CFR part 64 issued by the Commission under 
section 227(b)(4)(B) of the Communications Act shall be liable to the 
United States for a forfeiture penalty determined in accordance with 
paragraphs (A)-(F) of section 503(b)(2) plus an additional penalty not 
to exceed $10,118.
    (6) Forfeiture penalty for a section 6507(b)(4) Tax Relief Act 
violation. If a violator who is granted access to the Do-Not-Call 
registry of public safety answering points discloses or disseminates 
any registered telephone number without authorization, in violation of 
section 6507(b)(4) of the Middle Class Tax Relief and Job Creation Act 
of 2012 or the Commission's implementing rules in 47 CFR part 64, the 
monetary penalty for such unauthorized disclosure or dissemination of a 
telephone number from the registry shall be not less than $111,493 per 
incident nor more than $1,114,929 per incident depending upon whether 
the conduct leading to the violation was negligent, grossly negligent, 
reckless, or willful, and depending on whether the violation was a 
first or subsequent offense.
    (7) Forfeiture penalty for a section 6507(b)(5) Tax Relief Act 
violation. If a violator uses automatic dialing equipment to contact a 
telephone number on the Do-Not-Call registry of public safety answering 
points, in violation of section 6507(b)(5) of the Middle Class Tax 
Relief and Job Creation Act of 2012 or the Commission's implementing 
rules in 47 CFR part 64, the monetary penalty for contacting such a 
telephone number shall be not less than $11,149 per call nor more than 
$111,493 per call depending on whether the violation was negligent, 
grossly negligent, reckless, or willful, and depending on whether the 
violation was a first or subsequent offense.
    (8) Maximum forfeiture penalty for any case not previously covered. 
In any case not covered in paragraphs (b)(1) through (7) of this 
section, the amount of any forfeiture penalty determined under this 
section shall not exceed $20,731 for each violation or each day of a 
continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of $155,485 for any 
single act or failure to act described in paragraph (a) of this 
section.
* * * * *

    Note to paragraph (b)(8): * * *


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

------------------------------------------------------------------------
                                           Statutory amount after 2021
               Violation                   annual inflation adjustment
------------------------------------------------------------------------
Sec. 202(c) Common Carrier               $12,439, $622/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs.....  $12,439, $622/day.
Sec. 205(b) Common Carrier               $24,877.
 Prescriptions.
Sec. 214(d) Common Carrier Line          $2,487/day.
 Extensions.
Sec. 219(b) Common Carrier Reports.....  $2,487/day.
Sec. 220(d) Common Carrier Records &     $12,439/day.
 Accounts.
Sec. 223(b) Dial-a-Porn................  $128,904/day.

[[Page 3832]]

 
Sec. 227(e) Caller Identification......  $11,905/violation.
                                         *$35,715/day for each day of
                                          continuing violation, up to
                                          $1,190,546 for any single act
                                          or failure to act
Sec. 364(a) Forfeitures (Ships)........  $10,366/day (owner).
Sec. 364(b) Forfeitures (Ships)........  $2,074 (vessel master).
Sec. 386(a) Forfeitures (Ships)........  $10,366/day (owner).
Sec. 386(b) Forfeitures (Ships)........  $2,074 (vessel master).
Sec. 511 Pirate Radio Broadcasting.....  $2,023,640, $101,182/day.
Sec. 634 Cable EEO.....................  $919/day.
------------------------------------------------------------------------

    (10) * * *
    (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:

                    Table 4 to Paragraph (b)(10)(ii)
------------------------------------------------------------------------
                                             Maximum penalty after 2021
            U.S. Code citation               annual inflation adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)..........................  $12,439
                                            622
47 U.S.C. 203(e)..........................  12,439
                                            622
47 U.S.C. 205(b)..........................  24,877
47 U.S.C. 214(d)..........................  2,487
47 U.S.C. 219(b)..........................  2,487
47 U.S.C. 220(d)..........................  12,439
47 U.S.C. 223(b)..........................  128,904
47 U.S.C. 227(e)..........................  11,905
                                            35,715
                                            1,190,546
47 U.S.C. 362(a)..........................  10,366
47 U.S.C. 362(b)..........................  2,074
47 U.S.C. 386(a)..........................  10,366
47 U.S.C. 386(b)..........................  2,074
47 U.S.C. 503(b)(2)(A)....................  51,827
                                            518,283
47 U.S.C. 503(b)(2)(B)....................  207,314
                                            2,073,133
47 U.S.C. 503(b)(2)(C)....................  419,353
                                            3,870,946
47 U.S.C. 503(b)(2)(D)....................  ............................
                                            20,731
                                            155,485
47 U.S.C. 503(b)(2)(F)....................  119,055
                                            1,190,546
47 U.S.C. 507(a)..........................  2,053
47 U.S.C. 507(b)..........................  301
47 U.S.C. 511.............................  2,023,640
                                            101,182
47 U.S.C. 554.............................  919
------------------------------------------------------------------------

* * * * *
[FR Doc. 2021-00432 Filed 1-14-21; 8:45 am]
BILLING CODE 6712-01-P