[Federal Register Volume 87, Number 3 (Wednesday, January 5, 2022)]
[Rules and Regulations]
[Pages 396-398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28310]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[DA 21-1631; FR ID 65075]


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 (Inflation Adjustment Act) requires the 
Federal Communications Commission (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: 
    Effective date: The rule is effective January 5, 2022.
    Applicability date: The civil monetary penalties are applicable 
beginning January 15, 2022.

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 21-1631, adopted and released on December 22, 2021. The complete 
text of this document is available for download at https://www.fcc.gov/document/2022-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).

Synopsis

    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 
15, 2021, and this Order follows that guidance. The Commission 
therefore updates the civil monetary penalties for 2022, to reflect an 
annual inflation adjustment based on the percent change between each 
published October's CPI-U; in this case, October 2021 CPI-U (276.589)/
October 2020 CPI-U (260.388) = 1.06222. The Commission multiplies 
1.06222 by the most recent penalty amount and then rounds the result to 
the nearest dollar.
    For 2022, the adjusted penalty or penalty range for each applicable 
penalty is calculated by multiplying the most recent penalty amount by 
the 2022 annual adjustment (1.06222), then rounding the result to the 
nearest dollar. The adjustments in civil monetary

[[Page 397]]

penalties that we adopt in this Order apply only to such penalties 
assessed on and after January 15, 2022.

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 note, 
unless otherwise noted.


0
2. Amend Sec.  1.80 by revising paragraphs (b)(1) through (9), Table 4 
to paragraph (b)(10), and paragraph (b)(11)(ii) to read as follows:


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 $55,052 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 
$550,531 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 $445,445 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 $4,111,796 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 $220,213 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 $2,202,123 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 $126,463 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 
$1,264,622 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 $12,646 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 $1,264,622 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 $10,748.
    (6) Forfeiture penalty for pirate radio broadcasting. (i) Any 
person who willfully and knowingly does or causes or suffers to be done 
any pirate radio broadcasting shall be subject to a fine of not more 
than $2,149,551; and
    (ii) Any person who willfully and knowingly violates the Act or any 
rule, regulation, restriction, or condition made or imposed by the 
Commission under authority of the Act, or any rule, regulation, 
restriction, or condition made or imposed by any international radio or 
wire communications treaty or convention, or regulations annexed 
thereto, to which the United States is party, relating to pirate radio 
broadcasting shall, in addition to any other penalties provided by law, 
be subject to a fine of not more than $107,478 for each day during 
which such offense occurs, in accordance with the limit described in 
this section.
    (7) 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 $118,430 per 
incident nor more than $1,184,300 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.
    (8) Forfeiture penalty for a section 6507(b)(5) Tax Relief Act 
violation. If a

[[Page 398]]

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 $11,843 per call nor more than $118,430 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.
    (9) Maximum forfeiture penalty for any case not previously covered. 
In any case not covered in paragraphs (b)(1) through (8) of this 
section, the amount of any forfeiture penalty determined under this 
section shall not exceed $22,021 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 $165,159 for any 
single act or failure to act described in paragraph (a) of this 
section.
    (10) * * *

   Table 4 to Paragraph (b)(10)--Non-Section 503 Forfeitures That Are
             Affected by the Downward Adjustment Factors \1\
------------------------------------------------------------------------
                                           Statutory amount after 2022
               Violation                   annual inflation adjustment
------------------------------------------------------------------------
Sec. 202(c) Common Carrier               $13,213, $661/day.
 Discrimination.
Sec. 203(e) Common Carrier Tariffs.....  $13,213, $661/day.
Sec. 205(b) Common Carrier               $26,425.
 Prescriptions.
Sec. 214(d) Common Carrier Line          $2,642/day.
 Extensions.
Sec. 219(b) Common Carrier Reports.....  $2,642/day.
Sec. 220(d) Common Carrier Records &     $13,213/day.
 Accounts.
Sec. 223(b) Dial-a-Porn................  $136,924/day.
Sec. 227(e) Caller Identification......  $12,646/violation. $37,937/day
                                          for each day of continuing
                                          violation, up to $1,264,622
                                          for any single act or failure
                                          to act.
Sec. 364(a) Forfeitures (Ships)........  $11,011/day (owner).
Sec. 364(b) Forfeitures (Ships)........  $2,203 (vessel master).
Sec. 386(a) Forfeitures (Ships)........  $11,011/day (owner).
Sec. 386(b) Forfeitures (Ships)........  $2,203 (vessel master).
Sec. 511 Pirate Radio Broadcasting.....  $2,149,551, $107,478/day.
Sec. 634 Cable EEO.....................  $976/day.
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\1\ Unlike section 503 of the Act, which establishes maximum forfeiture
  amounts, other sections of the Act, with two exceptions, state
  prescribed amounts of forfeitures for violations of the relevant
  section. These amounts are then subject to mitigation or remission
  under section 504 of the Act. One exception is section 223 of the Act,
  which provides a maximum forfeiture per day. For convenience, the
  Commission will treat this amount as if it were a prescribed base
  amount, subject to downward adjustments. The other exception is
  section 227(e) of the Act, which provides maximum forfeitures per
  violation, and for continuing violations. The Commission will apply
  the factors set forth in section 503(b)(2)(E) of the Act and this
  table 4 to determine the amount of the penalty to assess in any
  particular situation. The amounts in this table 4 are adjusted for
  inflation pursuant to the Debt Collection Improvement Act of 1996
  (DCIA), 28 U.S.C. 2461. These non-section 503 forfeitures may be
  adjusted downward using the ``Downward Adjustment Criteria'' shown for
  section 503 forfeitures in table 3 to this paragraph (b)(10).

    (11) * * *
    (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 5 to Paragraph (b)(11)(ii)
------------------------------------------------------------------------
                                                              Maximum
                                                           penalty after
                   U.S. Code citation                       2022 annual
                                                             inflation
                                                            adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)........................................         $13,213
                                                                     661
47 U.S.C. 203(e)........................................          13,213
                                                                     661
47 U.S.C. 205(b)........................................          26,425
47 U.S.C. 214(d)........................................           2,642
47 U.S.C. 219(b)........................................           2,642
47 U.S.C. 220(d)........................................          13,213
47 U.S.C. 223(b)........................................         136,924
47 U.S.C. 227(e)........................................          12,646
                                                                  37,937
                                                               1,264,622
47 U.S.C. 362(a)........................................          11,011
47 U.S.C. 362(b)........................................           2,203
47 U.S.C. 386(a)........................................          11,011
47 U.S.C. 386(b)........................................           2,203
47 U.S.C. 503(b)(2)(A)..................................          55,052
                                                                 550,531
47 U.S.C. 503(b)(2)(B)..................................         220,213
                                                              22,202,123
47 U.S.C. 503(b)(2)(C)..................................         445,445
                                                               4,111,796
47 U.S.C. 503(b)(2)(D)..................................          22,021
                                                                 165,159
47 U.S.C. 503(b)(2)(F)..................................         126,463
                                                               1,264,622
47 U.S.C. 507(a)........................................           2,181
47 U.S.C. 507(b)........................................             320
47 U.S.C. 511...........................................       2,149,551
                                                                 107,478
47 U.S.C. 554...........................................             976
------------------------------------------------------------------------

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[FR Doc. 2021-28310 Filed 1-4-22; 8:45 am]
BILLING CODE 6712-01-P