[Federal Register Volume 62, Number 22 (Monday, February 3, 1997)]
[Rules and Regulations]
[Pages 4917-4920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2080]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 1

[FCC 97-2]


Forfeiture Proceedings

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In accordance with the Federal Civil Monetary Penalty 
Inflation Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996, this order amends the Commission's rules regarding 
forfeiture proceedings to implement inflation adjustments to monetary 
forfeiture penalties that may be assessed by the Commission.

EFFECTIVE DATE: March 5, 1997.

FOR FURTHER INFORMATION CONTACT: Douglas Cooper, Compliance and 
Information Bureau, (202) 418-1160.

SUPPLEMENTARY INFORMATION:

Adopted: January 3, 1997
Released: January 15, 1997


[[Page 4918]]


    1. The Debt Collection Improvement Act of 1996 (Public Law 104-134, 
Sec. 31001, 110 Stat. 1321, 1321-358), enacted on April 26, 1996, 
amended the Federal Civil Penalties Inflation Adjustment Act of 1990 
(Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461 note), to require 
all federal departments and agencies to adjust civil monetary 
penalties,<SUP>1 or forfeitures, for inflation no later than 180 days 
after the date of the amendment of the Debt Collection Improvement Act, 
and at least once every four years thereafter. This Order implements 
this requirement by increasing the statutory maximum amounts for 
monetary forfeiture penalties.
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    \1\ The Federal Civil Penalties Inflation Adjustment Act of 1990 
defines a civil monetary penalty as any such penalty, fine or other 
such sanction that, inter alia, has a maximum amount provided for by 
Federal Law; and is assessed or enforced by an agency pursuant to 
federal law and is assessed or enforced pursuant to an 
administrative proceeding (Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 
2461 note). This definition includes forfeitures that may be 
assessed or enforced by the Commission.
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    2. Specifically, this Order amends section 1.80 of the Commission's 
rules, 47 CFR Sec. 1.80, by adding a new paragraph (b)(5) to 
incorporate the inflation adjustments prescribed in the Debt Collection 
Improvement Act. Pursuant to the statutory change, this first 
adjustment is determined by dividing the June 1995 Consumer Price Index 
(CPI) by the CPI for June of the year the particular forfeiture was set 
or last adjusted.<SUP>2 The result is the cost of living adjustment, 
also referred to as the inflation factor. The Debt Collection 
Improvement Act provisions then prescribe that the inflation factor be 
multiplied by the statutory maximum amount for a monetary forfeiture 
penalty and the product be rounded according to specified rounding 
rules.<SUP>3 The resulting amount is then added to the statutory 
maximum amount. The Debt Collection Improvement Act prescribes, 
however, that the adjustments due to inflation apply only to the 
violations that occur after the effective date of the Act (October 23, 
1996), and that the inflation adjustment cannot exceed 10 percent of 
the statutory maximum amount.
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    \2\ The CPI index can be found through the Department of Labor.
    Call the Bureau of Labor Statistics, faxdat service:
    (404) 347-3702 (automated menu for CPI years no earlier than 
1976)
    (404) 347-4416 (for assistance, and for CPI all years) Or, to 
find the CPI through the Internet:
    (1) Go to the Consumer Price Index Home Page at: <a href="http://
stats.bls.gov/cpihome.htm">http://
stats.bls.gov/cpihome.htm</a>
    (2) Select Most Requested Series.
    (3) Select Consumer Price Index--All Urban Consumers.
    (4) Select ``US ALL ITEMS-1967=100-CUUR0000AA0.''
    (5) Scroll down and select the year that you are looking for.
    (6) Scroll down and select ``Retrieve Data.''
    \3\ The rounding rules are as follows:
    (1) Round increase to the nearest multiple of $10 if the penalty 
is from $0 to $100.
    (2) Round increase to the nearest multiple of $100 if the 
penalty is from $101 to $1,000.
    (3) Round increase to the nearest multiple of $1,000 if the 
penalty is from $1,001 to $10,000.
    (4) Round increase to the nearest multiple of $5,000 if the 
penalty is from $10,001 to $100,000.
    (5) Round increase to the nearest multiple of $10,000 if the 
penalty is from $100,001 to $200,000.
    (6) Round increase to the nearest multiple of $25,000 if the 
penalty is over $200,001.
    See Federal Civil Penalties Inflation Adjustment Act of 1990, 
Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461 note, Sec. 5.
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    3. The new section 1.80 (b)(5) applies the inflation adjustment to 
the statutory maximum amounts that may be assessed by the Commission 
under the forfeiture authority provisions in the Communications Act, as 
follows: sections 202(c), 203(e), 205(b), 214(d), 219(b), 220(d), 
223(b), 362(a), 362(b), 386(a), 386(b), 503(b), 506, and 634; 47 U.S.C. 
Secs. 202(c), 203(e), 205(b), 214(d), 219(b), 220(d), 223(b), 362(a), 
362(b), 386(a), 386(b), 503(b), 506, and 554.<SUP>4 In addition, this 
Order adjusts for inflation the monetary forfeiture penalties set forth 
in section 1.80 (b)(1), (b)(2), and (b)(3) of the Commission's Rules, 
which implement the monetary forfeiture penalties in section 503(b) of 
the Act.
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    \4\ The inflation adjustments prescribed by the Debt Collection 
Improvement Act will increase a monetary forfeiture penalty to an 
amount greater than the statutory maximum monetary forfeiture 
penalty amount. The adjusted forfeiture amounts are reprinted below.
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    4. Sections 202(c), 203(e), 205(b), 214(d), 219(b), 220(d), 223(b), 
362(a), 362(b), 386(a), 386(b), and 503(b) of the Act were set or last 
adjusted in 1989. Therefore, the June 1989 CPI is used for determining 
the inflation factor for these sections. Section 506 forfeitures were 
set or last adjusted in 1954. Section 634 forfeitures were set in 1992. 
Thus, the June CPI index for 1954 and 1992, respectively, is used to 
calculate the inflation factors for these forfeitures.
    5. We are taking this opportunity to update the statutory citations 
included in section 1.80(a)(4) of the rules by adding a reference to 
Section 634 of the Communications Act, which prescribes a forfeiture 
penalty for violating the equal employment opportunity requirements 
applicable to cable systems and multichannel video programming 
distributors, and to include section references to citations to the 
Communications Act in section 1.80(a)(4) of the rules.
    6. The addition of section 1.80(b)(5) and amendments to sections 
1.80(b)(1), (b)(2), and (b)(3) of our rules adopted herein implement 
the statutory requirement of the Debt Collection Improvement Act and 
the amendments to section 1.80(a)(4) simply update the list of 
statutory forfeiture provisions. Therefore, the Commission for good 
cause finds that compliance with the notice and comment provisions of 
the Administrative Procedure Act (APA) is unnecessary. See 5 U.S.C. 
553(b)(B).
    7. Accordingly, pursuant to sections 4(i) and 303(r) of the 
Communications Act of 1934, as amended, 47 U.S.C. 154(i), 303(r), and 
the Debt Collection Improvement Act of 1996, Public Law 104-134, Sec. 
31001, 110 Stat. 1321, 1321-358, it is ordered that 47 CFR 1.80(a)(4), 
1.80(b)(1), 1.80(b)(2), and 1.80(b)(3) are amended and that 47 CFR 
1.80(b)(5) is added as set forth below, effective March 5, 1997.

List of Subjects in 47 CFR Part 1

    Administrative practice and procedure, Claims, Penalties.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
Rule Changes
    Title 47 of the Code of Federal Regulations, Part 1, is amended as 
follows:

PART 1--[AMENDED]

    1. The authority citation for Part 1 continues to read as follows:

    Authority: 15 U.S.C. 79 et seq., and 47 U.S.C. 151, 154(i), 
154(j), and 303(r).

    2. Section 1.80 is amended by revising the introductory text of 
paragraph (a) and paragraph (a)(4), the concluding text of paragraph 
(a), and paragraphs (b)(1), (b)(2) and (b)(3), and by adding new 
paragraph (b)(5) to read as follows:


Sec. 1.80  Forfeiture proceedings.

    (a) Persons against whom and violations for which a forfeiture may 
be assessed. A forfeiture penalty may be assessed against any person 
found to have:
* * * * *
    (4) Violated any provision of section 1304, 1343, or 1464 of Title 
18, United States Code.

A forfeiture penalty assessed under this section is in addition to any 
other penalty provided for by the Communications Act, except that the 
penalties provided for in paragraphs (b)(1), (b)(2) and (b)(3) of this 
section shall not apply to conduct which is subject to a forfeiture 
penalty under sections 202(c), 203(e), 205(b), 214(d), 219(b), 220(d), 
223(b), 362(a), 362(b),

[[Page 4919]]

386(a), 386(b), 503(b), 506, and 634 of the Communications Act. The 
remaining provisions of this section are applicable to such conduct.
    (b) Limits on the amount of forfeiture assessed. (1) 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, the forfeiture penalty under this section shall not 
exceed $27,500 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 $275,000 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.
    (2) 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 $110,000 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 
$1,100,000 for any single act or failure to act described in paragraph 
(a) of this section.
    (3) In any case not covered in paragraphs (b)(1) or (b)(2) of this 
section, the amount of any forfeiture penalty determined under this 
section shall not exceed $11,000 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 $82,500 for any single 
act or failure to act described in paragraph (a) of this section.
* * * * *
    (5) Inflation adjustments to the maximum forfeiture amount. (i) 
Pursuant to the Debt Collection Improvement Act of 1996, Public Law 
104-134 (110 Stat. 1321-358), which amends the Federal Civil Monetary 
Penalty Inflation Adjustment Act of 1990, Public Law 101-410 (104 Stat. 
890; 28 U.S.C. 2461 note), the statutory maximum amount of a forfeiture 
penalty assessed under this section shall be adjusted for inflation at 
least once every four years using the following formula. First, obtain 
the inflation factor by dividing the CPI for June of the preceding year 
by the CPI for June of the year the forfeiture was last set or 
adjusted. Then, multiply the inflation factor by the statutory maximum 
amount. Round off this result using the rules in paragraph (b)(5)(ii) 
of this section. Add the rounded result to the statutory maximum 
forfeiture penalty amount. The sum is the statutory maximum amount, 
adjusted for inflation.
    (ii) The rounding rules are as follows:
    (A) Round increase to the nearest multiple of $10 if the penalty is 
from $0 to $100;
    (B) Round increase to the nearest multiple of $100 if the penalty 
is from $101 to $1,000;
    (C) Round increase to the nearest multiple of $1,000 if the penalty 
is from $1,001 to $10,000;
    (D) Round increase to the nearest multiple of $5,000 if the penalty 
is from $10,001 to $100,000;
    (E) Round increase to the nearest multiple of $10,000 if the 
penalty is from $100,001 to $200,000; or
    (F) Round increase to the nearest multiple of $25,000 if the 
penalty is over $200,001.
    (iii) The first application of the inflation adjustments required 
by Public Law 104-134 results in the following adjustments to the 
statutory forfeitures currently authorized by the Communications Act:

------------------------------------------------------------------------
                                                              Maximum   
                                              Current      penalty after
           U.S. Code citation                statutory    Public Law 104-
                                              maximum     134 adjustment
                                              penalty                   
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47 USC 202(c)...........................          $6,000          $6,600
                                                     300             330
47 USC 203(e)...........................           6,000           6,600
                                                     300             330
47 USC 205(b)...........................          12,000          13,200
47 USC 214(d)...........................           1,200           1,200
47 USC 219(b)...........................           1,200           1,200
47 USC 220(d)...........................           6,000           6,600
47 USC 223(b)...........................          50,000          55,000
47 USC 362(a)...........................           5,000           5,500
47 USC 362(b)...........................           1,000           1,100
47 USC 386(a)...........................           5,000           5,500
47 USC 386(b)...........................           1,000           1,100
47 USC 503(b)(2)(A).....................          25,000          27,500
                                                 250,000         275,000
47 USC 503(b)(2)(B).....................         100,000         110,000
                                               1,000,000       1,100,000
47 USC 503(b)(2)(C).....................          10,000          11,000
                                                  75,000          82,500
47 USC 506(a)...........................             500             550
47 USC 506(b)...........................             100             110
47 USC 554..............................             500             500
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[[Page 4920]]

    Note: Pursuant to Public Law 104-134, the first inflation 
adjustment cannot exceed 10 percent of the statutory maximum amount.
* * * * *
[FR Doc. 97-2080 Filed 1-31-97; 8:45 am]
BILLING CODE 6712-01-P