11316 Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Rules and Regulations

Although this assessment rate is

effective for an indefinite period, the

Committee will continue to meet prior

to or during each fiscal year to

recommend a budget of expenses and

consider recommendations for

modification of the assessment rate. The

dates and times of Committee meetings

are available from the Committee or the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department will evaluate

Committee recommendations and other

available information to determine

whether modification of the assessment

rate is needed. Further rulemaking will

be undertaken as necessary. The

Committee’s 1997 budget and those for

subsequent fiscal years will be reviewed

and, as appropriate, approved by the

Department.

After consideration of all relevant

material presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1997 fiscal year began on

January 1, 1997, and the marketing

order requires that the rate of

assessment for each fiscal year apply to

all assessable olives handled during the

appropriate crop year; (3) handlers are

aware of this action which was

recommended by the Committee at a

public meeting and is similar to other

assessment rate actions issued in past

years; and (4) an interim final rule was

published on this action and provided

a 30-day comment period, no comments

were received.

List of Subjects in 7 CFR Part 932

Marketing agreements, Olives,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 932 is amended as

follows:

PART 932—OLIVES GROWN IN

CALIFORNIA

Accordingly, the interim final rule

amending 7 CFR part 932 which was

published at 62 FR 2549 on January 17,

1997, is adopted as a final rule without

change.

Dated: March 4, 1997.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 97–6203 Filed 3–11–97; 8:45 am]

BILLING CODE 3410–02–P

FEDERAL ELECTION COMMISSION

11 CFR Part 111

[Notice 1997–3]

Adjustments to Civil Monetary Penalty

Amounts

AGENCY: Federal Election Commission.

ACTION: Final rule.

SUMMARY: This rule implements the

Debt Collection Improvement Act of

1996 (‘‘DCIA’’), which requires the

Commission to adopt a regulation

adjusting for inflation the maximum

amount of civil monetary penalties

(‘‘CMP’’) under the Federal Election

Campaign Act of 1971 (‘‘FECA’’ or

‘‘Act’’), as amended. Any increase in

CMP shall apply only to violations that

occur after the effective date of this

regulation.

EFFECTIVE DATE: March 12, 1997.

FOR FURTHER INFORMATION CONTACT:

Ms. Susan E. Propper, Assistant General

Counsel, or Rita A. Reimer, Attorney,

999 E Street, N.W., Washington, D.C.

20463, (202) 219–3690 or (800) 424–

9530.

SUPPLEMENTARY INFORMATION: The

Commission is publishing final rules

implementing the Debt Collection

Improvement Act of 1996, Pub. L. 104–

134, section 31001(s), 110 Stat. 1321–

358, 1321–373 (April 26, 1996). The

DCIA amended the Federal Civil

Penalties Inflation Adjustment Act

‘‘Inflation Adjustment Act’’), 28 U.S.C.

2461 nt., to require that the Commission

adopt regulations no later than 180 days

after enactment of the statute and at

least once every four years thereafter,

adjusting for inflation that maximum

amount of the CMP’s contained in the

status administered by the Commission.

Explanation and Justification

A CMP is defined at section 3(2) of

the Interest Adjustment Act as any

penalty, fine, or other sanction that (1)

is for a specific amount, or has a

maximum amount, as provided by

federal law; and (2) is assessed or

enforced by an agency in an

administrative proceedings or by federal

law. This definition covers the monetary

penalty provisions administered by the

Commission.

The DCIA requires that these

penalties be adjusted by the cost of

living adjustment set forth in section 5

of the Interest Adjustment Act. The cost

of living adjustment is defined as the

percentage by which the U.S.

Department of Labor’s Consumer Price

Index (‘‘CPI’’) for the month of June of

the year preceding the adjustment

exceeds the CPI for the month of June

for the year in which the amount of the

penalty was last set or adjusted

pursuant to law. The adjusted amounts

are then rounded in accordance with a

specified rounding formula. However,

the DCIA imposes a 10% maximum

increase for each penalty for the first

adjustment following its enactment.

Part 111—Compliance Procedure (2

U.S.C. 437g, 437d(a))

Section 11.24 Civil Penalties (2 U.S.C.

437g(a)(5), (6), (12), 28 U.S.C. 2461 nt.

The Commission’s general CMP

provisions for violations of the FECA

are found at 2 U.S.C. 437g(a) (5) and (6).

They provide for a civil penalty not to

exceed the greater of $5,000 or an

amount equal to any contribution or

expenditure involved in the violation.

These amounts are doubled in the

case of a knowing and willful violation,

to $10,000 or an amount equal to 200

percent of any contribution or

expenditure involved in the violation.

In addition, the Act imposes CMP’s

on those who violate certain of its

confidentiality provisions. 2 U.S.C.

437g(a)(12). The penalty for violating

this section is a fine of not more than

$2,000 or $5,000 in the case of a

knowing and willful violation.

Sections 437g(a) (5) and (6) were

enacted in 1976. Pub. L. 94–283, sec.

109, 90 Stat. 475, 483 (May 11, 1976).

Section 437g(a)(12) was added in 1980.

Pub. L. 96–187, sec. 108.93 Stat. 1339,

1361 (Jan. 8, 1980).

The civil penalties established in

those sections have not subsequently

been revised. The Commission is

therefore increasing the amount of each

maximum CMP by 10%. As explained

above, neither the CPI formula nor the

rounding off formula applies to this

situation, since the Interest Adjustment

Act limits the first post-enactment

adjustment to 10%.

Accordingly, as of March 12, 1997,

the maximum civil penalties set forth in

2 U.S.C. 437g(a) (5) and (6) are increased

to the greater of the amount of any

contribution or expenditure involved in

the violation or $5,500. The maximum

penalty for a knowing and willful

violation is increased to the greater of

twice the amount of any contribution or

expenditure involved in the violation or

$11,000. The maximum penalty for a

violation of 2 U.S.C. 437g(a)(12) is
Federal Register / Vol. 62, No. 48 / Wednesday, March 12, 1997 / Rules and Regulations 11317

increased to $2,200, or $5,500 for a

knowing and willful violation. These

increased CMP’s shall apply only to

violations that occur after March 12,

1997.

These CMP provisions do not

currently appear in the Commission’s

rules. However, section 4(1) of the

Interest Adjustment Act directs the

Commission to ‘‘by regulation adjust

each civil monetary penalty’’ by the

specified percentage (emphasis added).

The Commission is accordingly

adopting new 11 CFR 111.24, ‘‘Civil

Penalties,’’ for this purpose. This

section lists each penalty established at

2 U.S.C. 437g(a)(5), (6) and (12),

adjusted upwards by 10% as required

by the Interest Adjustment Act.

The Commission has no discretion in

taking this action, but is doing so

pursuant to a statutory mandate. These

are thus technical amendments that are

exempt from the notice and comment

requirements of the Administrative

Procedure Act at 5 U.S.C. 553(b)(B) and

the legislative review requirements of 2

U.S.C. 438(d). These exemptions allow

the rule to become effective

immediately upon publication in the

Federal Register. Accordingly, these

amendments are effective on March 12,

1997.

Certification of No Effect Pursuant to 5

U.S.C. 605(b) Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act are not applicable to this

final rule because the agency was not

required to publish a notice of proposed

rulemaking under 5 U.S.C. 553 or any

other laws. Therefore, no regulatory

flexibility analysis is required.

List of Subjects in 11 CFR Part 111

Administrative practice and

procedure, Elections, Law enforcement.

For the reasons set out in the

preamble, Subchapter A, Chapter I of

Title 11 of the Code of Federal

Regulations is amended to read as

follows:

PART 111—COMPLIANCE

PROCEDURE (2 U.S.C. 437g, 437d(a))

1. The authority citation for Part 111

is revised to read as follows:

Authority: 2 U.S.C. 437g, 437d(a),

438(a)(8); 28 U.S.C. 2461 nt.

2. Part 111 is amended by adding new

section 111.24, to read as follows:

§ 111.24 Civil Penalties (2 U.S.C. 437g(a)

(5), (6), (12), 28 U.S.C. 2461 nt.).

(a) Except as provided in paragraph

(b) of this section, a civil penalty

negotiated by the Commission or

imposed by a court for a violation of the

Act or chapter 95 or 96 of title 26 shall

not exceed the greater of $5,500 or an

amount equal to any contribution or

expenditure involved in the violation.

In the case of a knowing and willful

violation, the civil penalty shall not

exceed the greater of $11,000 or an

amount equal to 200% of any

contribution or expenditure involved in

the violation.

(b) Any Commission member or

employee, or any other person, who in

violation of 2 U.S.C. 437g(a)912)(A)

makes public any notification or

investigation under 2 U.S.C. 437g

without receiving the written consent of

the person receiving such notification,

or the person with respect to whom

such investigation is made, shall be

fined not more than $2,200. Any such

member employee, or other person who

knowingly and willfully violates this

provision shall be fined not more than

$5,500.

Dated: March 6, 1997.

John Warren McGarry,

Chairman, Federal Election Commission.

[FR Doc. 97–6098 Filed 3–11–97; 8:45 am]

BILLING CODE 6715–01–M

SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

Small Business Size Regulations;

Affiliation With Investment Companies

AGENCY: Small Business Administration.

ACTION: Final rule.

SUMMARY: The Small Business

Administration (SBA) is amending part

121 section103(b)(5) of its size

regulations to make clear that, for

purposes of the Small Business

Investment Act of 1958 (SBIAct), certain

venture capital firms and pension plans

that make investments in small firms are

not considered affiliated with those

firms in which they invest. As a result,

for any assistance under the SBIAct, an

applicant concern is not affiliated with

these investors. This final rule is in

accordance with section 208 of the

Small Business Programs Improvement

Act of 1996.

EFFECTIVE DATE: March 12, 1997.

FOR FURTHER INFORMATION CONTACT: Gary

M. Jackson, Assistant Administrator for

Size Standards, 409 3rd Street, SW,

Washington, DC 20416, (202) 205–6618.

SUPPLEMENTARY INFORMATION: Division D

of the Omnibus Consolidated

Appropriations Act for Fiscal Year 1997

(Public Law 104–208) is the Small

Business Programs Improvement Act of

1996 (SBPIAct), which amended the

Small Business Investment Act of 1958

(SBIAct). Title II, Section 208 of the

SBPIAct amends the definition of

‘‘small business concern’’ to clarify that,

for purposes of the SBIAct, a business

which receives an investment from

certain types of venture capital firms

and pension plans shall not be

considered affiliates of one another.

Specifically, section 208 of the

amendment provides that such

investments shall not cause a business

concern to be deemed not

independently owned and operated; and

further, the investments shall be

disregarded in determining whether or

not a business is a small concern under

the SBA’s size standards. The types of

venture capital and pension plans

covered by this amendment are listed in

§ 121.103(b)(5), and include venture

capital firms, investment companies,

small business investment companies,

employee welfare benefit plans or

pension plans, and trusts, foundations,

or endowments exempt from Federal

income taxation.

The SBA had recently revised its

Small Business Size Regulation (Federal

Register, Wednesday, January 31, 1996,

Vol. 61. No. 21 FR 3280) to extend its

exclusion from affiliation for SBICs that

invests in small businesses to include

venture capital firms, pension funds,

and certain charitable entities exempt

from Federal taxation, as long as the

investors do not control the concern.

For purposes of that provision, control

was defined in § 107.865 of this part.

This rule eliminates the condition that

affiliation between certain investors and

small business would be found present

if control by an investor existed over the

small business. However, SBICs

continue to be restricted in the exercise

of control over a small business they

invest in as stated in § 107.865 of this

part.

Also, under that regulation and prior

to this legislation, the exclusion from

affiliation had been limited to

applicants for assistance under the

Small Business Investment Company

(SBIC) Program, and only, as stated

above, where the investor(s) did not

control the concern. In addition to the

SBIC Program, the SBIAct has

established a number of other SBA

financial and management assistance

programs, namely: the Surety Bond

Guarantee Program, the Certified State

and Local Development Company

Program the Lease Guarantees and the

Pollution Control Guarantee Program.

While the SBIAct may authorize all of

these programs, assistance under the

Lease Guarantee and the Pollution

Control Guarantee Programs has not

been available for several years. Nor