[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Rules and Regulations]
[Pages 73638-73641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28075]


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FEDERAL ELECTION COMMISSION

11 CFR Part 111

[Notice 2021-20]


Civil Monetary Penalties Annual Inflation Adjustments

AGENCY: Federal Election Commission.

ACTION: Final rule.

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SUMMARY: As required by the Federal Civil Penalties Inflation 
Adjustment Act of 1990, the Federal Election Commission is adjusting 
for inflation the civil monetary penalties established under the 
Federal Election Campaign Act, the Presidential Election Campaign Fund 
Act, and the Presidential Primary Matching Payment Account Act. The 
civil monetary penalties being adjusted are those negotiated by the 
Commission or imposed by a court for certain statutory violations, and 
those imposed by the Commission for late filing of or failure to file 
certain reports required by the Federal Election Campaign Act. The 
adjusted civil monetary penalties are calculated according to a 
statutory formula and the adjusted amounts will apply to penalties 
assessed after the effective date of these rules.

DATES: The final rules are effective on December 28, 2021.

FOR FURTHER INFORMATION CONTACT: Mr. Robert M. Knop, Assistant General 
Counsel, Mr. Joseph P. Wenzinger, Attorney, or Ms. Terrell D. 
Stansbury, Paralegal, Office of General Counsel, (202) 694-1650 or 
(800) 424-9530.

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (the ``Inflation Adjustment Act''),\1\ as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of

[[Page 73639]]

2015 (the ``2015 Act''),\2\ requires federal agencies, including the 
Commission, to adjust for inflation the civil monetary penalties within 
their jurisdiction according to prescribed formulas. A civil monetary 
penalty is ``any penalty, fine, or other sanction'' that (1) ``is for a 
specific monetary amount'' or ``has a maximum amount'' under federal 
law; and (2) that a federal agency assesses or enforces ``pursuant to 
an administrative proceeding or a civil action'' in federal court.\3\ 
Under the Federal Election Campaign Act, 52 U.S.C. 30101 through 45 
(``FECA''), the Commission may seek and assess civil monetary penalties 
for violations of FECA, the Presidential Election Campaign Fund Act, 26 
U.S.C. 9001 through 13, and the Presidential Primary Matching Payment 
Account Act, 26 U.S.C. 9031 through 42.
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    \1\ Public Law 101-410, 104 Stat. 890 (codified at 28 U.S.C. 
2461 note), amended by Debt Collection Improvement Act of 1996, 
Public Law 104-134, 31001(s)(1), 110 Stat. 1321, 1321-373; Federal 
Reports Elimination Act of 1998, Public Law 105-362, 1301, 112 Stat. 
3280.
    \2\ Public Law 114-74, section 701, 129 Stat. 584, 599.
    \3\ Inflation Adjustment Act section 3(2).
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    The Inflation Adjustment Act requires federal agencies to adjust 
their civil penalties annually, and the adjustments must take effect no 
later than January 15 of every year.\4\ Pursuant to guidance issued by 
the Office of Management and Budget,\5\ the Commission is now adjusting 
its civil monetary penalties for 2022.\6\
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    \4\ Inflation Adjustment Act section 4(a).
    \5\ See Inflation Adjustment Act Sec.  7(a) (requiring OMB to 
``issue guidance to agencies on implementing the inflation 
adjustments required under this Act''); see also Memorandum from 
Shalanda D. Young, Acting Director, Office of Management and Budget, 
to Heads of Executive Departments and Agencies, M-22-07, Dec. 15, 
2021, https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf (``OMB Memorandum'').
    \6\ Inflation Adjustment Act section 5.
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    The Commission must adjust for inflation its civil monetary 
penalties ``notwithstanding Section 553'' of the Administrative 
Procedure Act (``APA'').\7\ Thus, the APA's notice-and-comment and 
delayed effective date requirements in 5 U.S.C. 553(b) through (d) do 
not apply because Congress has specifically exempted agencies from 
these requirements.\8\
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    \7\ Inflation Adjustment Act section 4(b)(2).
    \8\ See, e.g., Asiana Airlines v. FAA, 134 F.3d 393, 396-99 
(D.C. Cir. 1998) (finding APA ``notice and comment'' requirement not 
applicable where Congress clearly expressed intent to depart from 
normal APA procedures).
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    Furthermore, because the inflation adjustments made through these 
final rules are required by Congress and involve no Commission 
discretion or policy judgments, these rules do not need to be submitted 
to the Speaker of the United States House of Representatives or the 
President of the United States Senate under the Congressional Review 
Act, 5 U.S.C. 801 et seq. Moreover, because the APA's notice-and-
comment procedures do not apply to these final rules, the Commission is 
not required to conduct a regulatory flexibility analysis under 5 
U.S.C. 603 or 604. See 5 U.S.C. 601(2), 604(a). Nor is the Commission 
required to submit these revisions for congressional review under FECA. 
See 5 U.S.C. 30111(d)(1), (4) (providing for congressional review when 
Commission ``prescribe[s]'' a ``rule of law'').
    The new penalty amounts will apply to civil monetary penalties that 
are assessed after the date the increase takes effect, even if the 
associated violation predated the increase.\9\
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    \9\ Inflation Adjustment Act section 6.
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Explanation and Justification

    The Inflation Adjustment Act requires the Commission to annually 
adjust its civil monetary penalties for inflation by applying a cost-
of-living-adjustment (``COLA'') ratio.\10\ The COLA ratio is the 
percentage that the Consumer Price Index (``CPI'') \11\ ``for the month 
of October preceding the date of the adjustment'' exceeds the CPI for 
October of the previous year.\12\ To calculate the adjusted penalty, 
the Commission must increase the most recent civil monetary penalty 
amount by the COLA ratio.\13\ According to the Office of Management and 
Budget, the COLA ratio for 2022 is 0.01622, or 1.622%; thus, to 
calculate the new penalties, the Commission must multiply the most 
recent civil monetary penalties in force by 1.06222.\14\
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    \10\ The COLA ratio must be applied to the most recent civil 
monetary penalties. Inflation Adjustment Act, section 4(a); see also 
OMB Memorandum at 2.
    \11\ The Inflation Adjustment Act, section 3, uses the CPI ``for 
all-urban consumers published by the Department of Labor.''
    \12\ Inflation Adjustment Act, section 5(b)(1).
    \13\ Inflation Adjustment Act, section 5(a), (b)(1).
    \14\ OMB Memorandum at 1.
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    The Commission assesses two types of civil monetary penalties that 
must be adjusted for inflation. First are penalties that are either 
negotiated by the Commission or imposed by a court for violations of 
FECA, the Presidential Election Campaign Fund Act, or the Presidential 
Primary Matching Payment Account Act. These civil monetary penalties 
are set forth at 11 CFR 111.24. Second are the civil monetary penalties 
assessed through the Commission's Administrative Fines Program for late 
filing or non-filing of certain reports required by FECA. See 52 U.S.C. 
30109(a)(4)(C) (authorizing Administrative Fines Program), 30104(a) 
(requiring political committee treasurers to report receipts and 
disbursements within certain time periods). The penalty schedules for 
these civil monetary penalties are set out at 11 CFR 111.43 and 111.44.

1. 11 CFR 111.24--Civil Penalties

    FECA establishes the civil monetary penalties for violations of 
FECA and the other statutes within the Commission's jurisdiction. See 
52 U.S.C. 30109(a)(5), (6), (12). Commission regulations in 11 CFR 
111.24 provide the current inflation-adjusted amount for each such 
civil monetary penalty. To calculate the adjusted civil monetary 
penalty, the Commission multiplies the most recent penalty amount by 
the COLA ratio and rounds that figure to the nearest dollar.
    The actual adjustment to each civil monetary penalty is shown in 
the chart below.

----------------------------------------------------------------------------------------------------------------
                                                                  Most recent                       New civil
                            Section                              civil penalty        COLA           penalty
----------------------------------------------------------------------------------------------------------------
11 CFR 111.24(a)(1)...........................................          $20,528         1.06222           21,805
11 CFR 111.24(a)(2)(i)........................................           43,792         1.06222           46,517
11 CFR 111.24(a)(2)(ii).......................................           71,812         1.06222           76,280
11 CFR 111.24(b)..............................................            6,141         1.06222            6,523
11 CFR 111.24(b)..............................................           15,352         1.06222           16,307
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2. 11 CFR 111.43, 111.44--Administrative Fines

    FECA authorizes the Commission to assess civil monetary penalties 
for violations of the reporting requirements of 52 U.S.C. 30104(a) 
according to the penalty schedules ``established and published by the 
Commission.'' 52 U.S.C. 30109(a)(4)(C)(i). The Commission has 
established two penalty schedules: The penalty schedule in 11 CFR 
111.43(a) applies to reports that are not election sensitive, and the 
penalty schedule in 11 CFR

[[Page 73640]]

111.43(b) applies to reports that are election sensitive.\15\ Each 
penalty schedule contains two columns of penalties, one for late-filed 
reports and one for non-filed reports, with penalties based on the 
level of financial activity in the report and, if late-filed, its 
lateness.\16\ In addition, 11 CFR 111.43(c) establishes a civil 
monetary penalty for situations in which a committee fails to file a 
report and the Commission cannot calculate the relevant level of 
activity. Finally, 11 CFR 111.44 establishes a civil monetary penalty 
for failure to file timely reports of contributions received less than 
20 days, but more than 48 hours, before an election. See 52 U.S.C. 
30104(a)(6).
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    \15\ Election sensitive reports are certain reports due shortly 
before an election. See 11 CFR 111.43(d)(1).
    \16\ A report is considered to be ``not filed'' if it is never 
filed or is filed more than a certain number of days after its due 
date. See 11 CFR 111.43(e).
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    To determine the adjusted civil monetary penalty amount for each 
level of activity, the Commission multiplies the most recent penalty 
amount by the COLA ratio and rounds that figure to the nearest dollar. 
The new civil monetary penalties are shown in the schedules in the rule 
text, below.

List of Subjects in 11 CFR Part 111

    Administrative practice and procedures, Elections, Law enforcement, 
Penalties.

    For the reasons set out in the preamble, the Federal Election 
Commission amends 11 CFR part 111 as follows:

PART 111--COMPLIANCE PROCEDURE (52 U.S.C. 30109, 30107(a))

0
1. The authority citation for part 111 continues to read as follows:

    Authority:  52 U.S.C. 30102(i), 30109, 30107(a), 30111(a)(8); 28 
U.S.C. 2461 nt.


Sec.  111.24  [Amended]

0
2. In Sec.  111.24, in the table below, for each paragraph indicated in 
the left column, remove the number indicated in the middle column, and 
add in its place the number indicated in the right column.

------------------------------------------------------------------------
                       Section                         Remove      Add
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111.24(a)(1)........................................   $20,528   $21,805
111.24(a)(2)(i).....................................    43,792    46,517
111.24(a)(2)(ii)....................................    71,812    76,280
111.24(b)...........................................     6,141     6,523
111.24(b)...........................................    15,352    16,307
------------------------------------------------------------------------


0
3. Section 111.43 is amended by revising paragraphs (a), (b), and (c) 
to read as follows:


Sec.  111.43  What are the schedules of penalties?

    (a) The civil money penalty for all reports that are filed late or 
not filed, except election sensitive reports and pre-election reports 
under 11 CFR 104.5, shall be calculated in accordance with the 
following schedule of penalties:

                        Table 1 to Paragraph (a)
------------------------------------------------------------------------
                                       And the report     Or the report
  If the level of activity in the     was filed late,    was not filed,
            report was:               the civil money    the civil money
                                        penalty is:        penalty is:
------------------------------------------------------------------------
$1-4,999.99 \a\....................  [$38 + ($6 x       $373 x [1 + (.25
                                      Number of days     x Number of
                                      late)] x [1 +      previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$5,000-9,999.99....................  [$74 + ($6 x       $448 x [1 + (.25
                                      Number of days     x Number of
                                      late)] x [1 +      previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$10,000-24,999.99..................  [$160 + ($6 x      $748 x [1 + (.25
                                      Number of days     x Number of
                                      late)] x [1 +      previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$25,000-49,999.99..................  [$317 + ($30 x     $1,346 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$50,000-74,999.99..................  [$478 + ($120 x    $4,292 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$75,000-99,999.99..................  [$635 + ($160 x    $5,563 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$100,000-149,999.99................  [$952 + ($199 x    $7,154 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$150,000-199,999.99................  [$1,274 + ($238 x  $8,743 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$200,000-249,999.99................  [$1,589 + ($277 x  $10,332 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$250,000-349,999.99................  [$2,385 + ($317 x  $12,717 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$350,000-449,999.99................  [$3,180 + ($317 x  $14,306 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$450,000-549,999.99................  [$3,974 + ($317 x  $15,101 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$550,000-649,999.99................  [$4,768 + ($317 x  $15,897 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$650,000-749,999.99................  [$5,563 + ($317 x  $16,691 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$750,000-849,999.99................  [$6,358 + ($317 x  $17,485 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$850,000-949,999.99................  [$7,154 + ($317 x  $ 18,280 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$950,000 or over...................  [$7,948 + ($317 x  $19,075 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.


[[Page 73641]]

    (b) The civil money penalty for election sensitive reports that are 
filed late or not filed shall be calculated in accordance with the 
following schedule of penalties:

                        Table 2 to Paragraph (b)
------------------------------------------------------------------------
                                       And the report     Or the report
  If the level of activity in the     was filed late,    was not filed,
            report was:               the civil money    the civil money
                                        penalty is:        penalty is:
------------------------------------------------------------------------
$1-$4,999.99 \a\...................  [$74 + ($14 x      $748 x [1 + (.25
                                      Number of days     x Number of
                                      late)] x [1 +      previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$5,000-$9,999.99...................  [$150 + ($14 x     $897 x [1 + (.25
                                      Number of days     x Number of
                                      late)] x [1 +      previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$10,000-24,999.99..................  [$224 + ($14 x     $1,346 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$25,000-49,999.99..................  [$478 + ($38 x     $2,093 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$50,000-74,999.99..................  [$716 + ($120 x    $4,768 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$75,000-99,999.99..................  [$952 + ($160 x    $6,358 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$100,000-149,999.99................  [$1,431 + ($199 x  $7,948 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$150,000-199,999.99................  [$1,908 + ($238 x  $9,537 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$200,000-249,999.99................  [$2,385 + ($277 x  $11,922 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$250,000-349,999.99................  [$3,576 + ($317 x  $14,306 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$350,000-449,999.99................  [$4,768 + ($317 x  $15,897 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$450,000-549,999.99................  [$5,961 + ($317 x  $17,485 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$550,000-649,999.99................  [$7,154 + ($317 x  $19,075 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$650,000-749,999.99................  [$8,346 + ($317 x  $20,665 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$750,000-849,999.99................  [$9,537 + ($317 x  $22,255 x [1 +
                                      Number of days     (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$850,000-949,999.99................  [$10,729 + ($317   $23,843 x [1 +
                                      x Number of days   (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
$950,000 or over...................  [$11,922 + ($317   $25,434 x [1 +
                                      x Number of days   (.25 x Number
                                      late)] x [1 +      of previous
                                      (.25 x Number of   violations)].
                                      previous
                                      violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
  previous violations will not exceed the level of activity in the
  report.

    (c) If the respondent fails to file a required report and the 
Commission cannot calculate the level of activity under paragraph (d) 
of this section, then the civil money penalty shall be $8,743.
* * * * *


Sec.  111.44  [Amended]

0
4. In Sec.  111.44, in paragraph (a)(1), remove ``$151'' and add in its 
place ``$160''.

    Dated: December 21, 2021.

    On behalf of the Commission,
Ellen L. Weintraub,
Commissioner, Federal Election Commission.
[FR Doc. 2021-28075 Filed 12-27-21; 8:45 am]
BILLING CODE 6715-01-P