Rule2024-00624
Annual Adjustment of Civil Monetary Penalties To Reflect Inflation
Primary source
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Published
January 12, 2024
Effective
January 12, 2024
Issuing agencies
Federal Communications Commission
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 9 (Friday, January 12, 2024)</title>
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[Federal Register Volume 89, Number 9 (Friday, January 12, 2024)]
[Rules and Regulations]
[Pages 2148-2151]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00624]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[DA 23-1198; FR ID 196408]
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 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 12, 2024.
Applicability date: The civil monetary penalties are applicable
beginning January 15, 2024.
FOR FURTHER INFORMATION CONTACT: Peter S. Hyun, Chief of Staff and
Deputy Bureau Chief, Enforcement Bureau, at <a href="/cdn-cgi/l/email-protection#2f7f4a5b4a5d0167565a416f494c4c01484059"><span class="__cf_email__" data-cfemail="7020150415025e3809051e301613135e171f06">[email protected]</span></a> or 202-
418-2019.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
DA 23-1198, adopted and released on December 22, 2023. The complete
text of this document is available for download at <a href="https://docs.fcc.gov/public/attachments/DA-23-1198A1.pdf">https://docs.fcc.gov/public/attachments/DA-23-1198A1.pdf</a>. 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
<a href="/cdn-cgi/l/email-protection#86e0e5e5b3b6b2c6e0e5e5a8e1e9f0"><span class="__cf_email__" data-cfemail="ec8a8f8fd9dcd8ac8a8f8fc28b839a">[email protected]</span></a> or call the FCC's Consumer and Governmental Affairs
Bureau at (202) 418-0530 (voice).
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
19, 2023, and this Order follows that guidance. The Commission
therefore updates the civil monetary penalties for 2024, to reflect an
annual inflation adjustment based on the percent change between each
published October's CPI-U; in this case, October 2023 CPI-U (307.671)/
October 2022 CPI-U (298.012) = 1.03241. The Commission multiplies
1.03241 by the most recent penalty amount and then rounds the result to
the nearest dollar.
For 2024, the adjusted penalty or penalty range for each applicable
penalty is calculated by multiplying the most recent penalty amount by
the 2024 annual adjustment (1.03241), then rounding the result to the
nearest dollar. The adjustments in civil monetary penalties that we
adopt in this Order apply only to such penalties assessed on and after
January 15, 2024.
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).
[[Page 2149]]
List of Subjects in 47 CFR Part 1
Administrative practice and procedure, Penalties.
Federal Communications Commission.
Peter Hyun,
Chief of Staff and Deputy Bureau 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 is revised 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 (10), Table 4
to paragraph (b)(11), and paragraph (b)(12)(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 $61,238 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
$612,395 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 (47 U.S.C. 554). 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 $495,500 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 $4,573,840 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 $244,958 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 $2,449,575 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 (47
U.S.C. 255, 617, or 619), 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 $140,674 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 $1,406,728 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 $14,067 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 $1,406,728 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 $11,955.
(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 $2,391,097; 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 $119,555 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 $131,738 per
incident nor more than $1,317,380 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 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 $13,174 per call nor more than
$131,738 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) Forfeiture penalty for a failure to block. Any person
determined to have failed to block illegal robocalls pursuant to
Sec. Sec. 64.6305(g) and 64.1200(n) of this chapter shall be liable to
the United States for a forfeiture penalty of no more than $24,496 for
each violation, to be assessed on a per-call basis.
[[Page 2150]]
(10) Maximum forfeiture penalty for any case not previously
covered. In any case not covered in paragraphs (b)(1) through (9) of
this section, the amount of any forfeiture penalty determined under
this section shall not exceed $24,496 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 $183,718 for any
single act or failure to act described in paragraph (a) of this
section.
(11) * * *
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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)(11).
Table 4 to Paragraph (b)(11)--Non-Section 503 Forfeitures That Are
Affected by the Downward Adjustment Factors \1\
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Statutory amount after 2024
Violation annual inflation adjustment
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Sec. 202(c) Common Carrier $14,697, $735/day.
Discrimination.
Sec. 203(e) Common Carrier Tariffs..... $14,697, $735/day.
Sec. 205(b) Common Carrier $29,395.
Prescriptions.
Sec. 214(d) Common Carrier Line $2,939/day.
Extensions.
Sec. 219(b) Common Carrier Reports..... $2,939/day.
Sec. 220(d) Common Carrier Records & $14,697/day.
Accounts.
Sec. 223(b) Dial-a-Porn................ $152,310/day.
Sec. 227(e) Caller Identification...... $14,067/violation.
$42,200/day for each day of
continuing violation, up to
$1,406,728 for any single act
or failure to act.
Sec. 364(a) Forfeitures (Ships)........ $12,249/day (owner).
Sec. 364(b) Forfeitures (Ships)........ $2,451 (vessel master).
Sec. 386(a) Forfeitures (Ships)........ $12,249/day (owner).
Sec. 386(b) Forfeitures (Ships)........ $2,451 (vessel master).
Sec. 511 Pirate Radio Broadcasting..... $2,391,097, $119,555/day.
Sec. 634 Cable EEO..................... $1,086/day.
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(12) * * *
(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)(12)(ii)
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Maximum penalty after 2024
U.S. Code citation annual inflation adjustment
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47 U.S.C. 202(c)....................... $14,697.
$735.
47 U.S.C. 203(e)....................... $14,697.
$735.
47 U.S.C. 205(b)....................... $29,395.
47 U.S.C. 214(d)....................... $2,939.
47 U.S.C. 219(b)....................... $2,939.
47 U.S.C. 220(d)....................... $14,697.
47 U.S.C. 223(b)....................... $152,310.
47 U.S.C. 227(b)(4)(B)................. $61,238, plus an additional
penalty not to exceed $11,955.
$612,395, plus an additional
penalty not to exceed $11,955.
$244,958, plus an additional
penalty not to exceed $11,955.
$2,449,575, plus an additional
penalty not to exceed $11,955.
$495,500, plus an additional
penalty not to exceed $11,955.
$4,573,840, plus an additional
penalty not to exceed $11,955.
$24,496, plus an additional
penalty not to exceed $11,955.
$183,718, plus an additional
penalty not to exceed $11,955.
$140,674, plus an additional
penalty not to exceed $11,955.
$1,406,728, plus an additional
penalty not to exceed $11,955.
47 U.S.C. 227(e)....................... $14,067.
$42,200.
$1,406,728.
47 U.S.C. 362(a)....................... $12,249.
47 U.S.C. 362(b)....................... $2,451.
47 U.S.C. 386(a)....................... $12,249.
47 U.S.C. 386(b)....................... $2,451.
47 U.S.C. 503(b)(2)(A)................. $61,238.
$612,395.
[[Page 2151]]
47 U.S.C. 503(b)(2)(B)................. $244,958.
$2,449,575.
47 U.S.C. 503(b)(2)(C)................. $495,500.
$4,573,840.
47 U.S.C. 503(b)(2)(D)................. $24,496.
$183,718.
47 U.S.C. 503(b)(2)(F)................. $140,674.
$1,406,728.
47 U.S.C. 507(a)....................... $2,426.
47 U.S.C. 507(b)....................... $356.
47 U.S.C. 511.......................... $2,391,097.
$119,555.
47 U.S.C. 554.......................... $1,086.
Sec. 6507(b)(4) of Tax Relief Act...... $1,317,380/incident.
Sec. 6507(b)(5) of Tax Relief Act...... $131,738/call.
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[FR Doc. 2024-00624 Filed 1-11-24; 8:45 am]
BILLING CODE 6712-01-P
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