[Federal Register: December 14, 2004 (Volume 69, Number 239)]
[Rules and Regulations]               
[Page 74416-74418]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14de04-9]                         

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DEPARTMENT OF COMMERCE

Office of the Secretary

15 CFR Part 6

[Docket No. 031205307-4336-02]
RIN 0690-AA34

 
Civil Monetary Penalties; Adjustment for Inflation

AGENCY: Office of the Secretary, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule is being issued to adjust each civil monetary 
penalty provided by law within the jurisdiction of the Department of 
Commerce (the Department). The Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996, required the head of each agency to adjust its civil 
monetary penalties (CMP) for inflation no later than October 23, 1996, 
and requires them to make adjustments at least once every four years 
thereafter. These inflation adjustments will apply only to violations 
that occur after the effective date of this rule.

DATES: This rule is effective December 14, 2004.

ADDRESSES: Office of General Counsel, Department of Commerce, 14th and 
Constitution Avenue, MS 5876, Washington, DC 20230.

[[Page 74417]]


FOR FURTHER INFORMATION CONTACT: Peter Robbins, 202-482-0846

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Public Law 101-410) provided for the regular 
evaluation of CMPs to ensure that they continued to maintain their 
deterrent value and that penalty amounts due to the Federal Government 
were properly accounted for and collected. On April 26, 1996, the 
Federal Civil Penalties Inflation Adjustment Act of 1990 was amended by 
the Debt Collection Improvement Act of 1996 (Public Law 104-134) to 
require each agency to issue regulations to adjust its CMPs for 
inflation at least every four years. The amendment further provided 
that any resulting increases in a CMP due to the inflation adjustment 
should apply only to the violations that occur subsequent to the date 
of the publication in the Federal Register of the increased amount of 
the CMP. The first inflation adjustment of any penalty shall not exceed 
ten percent of such penalty.
    On October 24, 1996, and again on November 1, 2000, the Department 
published in the Federal Register a schedule of CMP adjusted for 
inflation as required by law. By this publication CMPs are again being 
adjusted for inflation as prescribed by law.
    A civil monetary penalty is defined as any penalty, fine, or other 
sanction that:
    1. Is for a specific monetary amount as provided by Federal law, or 
has a maximum amount provided for by Federal law; and,
    2. Is assessed or enforced by an agency pursuant to Federal law; 
and,
    3. Is assessed or enforced pursuant to an administrative proceeding 
or a civil action in the Federal courts.
    This regulation adjusts the civil penalties that are established by 
law and assessed or enforced by the Department.
    The actual penalty assessed for a particular violation is dependent 
upon a variety of factors. For example, The National Oceanic and 
Atmospheric Administration (NOAA) Civil Administrative Penalty Schedule 
(the Schedule), a compilation of internal guidelines that are used when 
assessing penalties for violations for most of the statutes NOAA 
enforces, will be interpreted in a manner consistent with this 
regulation to maintain the deterrent effect of the penalties 
recommended therein. The penalty ranges in the Schedule are intended to 
aid enforcement attorneys in determining the appropriate penalty to 
assess for a particular violation. Pursuant to the notice published in 
the Federal Register (59 FR 19160, April 22, 1994), the Schedule is 
maintained and made available for inspection by the public at specific 
locations.
    The inflation adjustment was determined pursuant to the methodology 
prescribed by Public Law 101-410, which requires the maximum CMP, or 
the minimum and maximum CMP, as applicable, to be increased by the 
cost-of-living adjustment. The term ``cost-of-living adjustment'' was 
defined in Public Law 104-34 to mean the percentage for each CMP by 
which the Consumer Price Index (CPI) for June of the calendar year 
preceding the adjustment exceeds the CPI for the month of June of the 
calendar year in which the amount of such CMP was last set or adjusted 
pursuant to law. For the purpose of computing the inflation 
adjustments, the CPI for June of the calendar year preceding the 
adjustment means the CPI for June of 2003.
    Public Law 101-410 requires each rounded increase to be added to 
the minimum or maximum penalty amount being adjusted, and the total is 
the amount of such penalty, as adjusted, subject to the ten percent 
limitation provided by Public Law 104-134 for the first adjustments.

Rulemaking Requirements

    It has been determined that this rule is not significant for 
purposes of Executive Order 12866.
    The Department for good cause finds that notice and opportunity for 
comment is unnecessary for this rulemaking pursuant to 5 U.S.C. 
553(b)(B). It is unnecessary to ask for notice and comment because the 
Debt Collection Improvement Act of 1996 (the Act) required the head of 
each agency to adjust its civil monetary penalties no later than 
October 23, 1996, and at least every four years thereafter, and the 
Federal Civil Monetary Penalty Inflation Adjustment Act of 1990, as 
amended by the Act, states how to calculate the inflation adjustment, 
making such adjustments wholly non-discretionary. This rule merely 
adjusts the Department's CMP according to the statutory requirements. 
For the same reasons, there exists good cause to waive the thirty day 
delay in effectiveness of the rule, pursuant to 5 U.S.C. 553(d)(3).
    Because notice and opportunity for comment are not required by 5 
U.S.C. 553, or any other law, a Regulatory Flexibility Analysis is not 
required and none was prepared. This rule does not contain information 
collection requirements for purposes of the Paperwork Reduction Act.

List of Subjects in 15 CFR Part 6

    Law enforcement, Penalties.

James L. Taylor,
Deputy Chief Financial Officer and Director for Financial Management.

0
For the reasons set forth in the preamble, subtitle A of Title 15 of 
the Code of Federal Regulations is amended as follows:

PART 6--CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS

0
1. The authority citation for part 6 continues to read as follows:

    Authority: Sec. 4, as amended, and sec. 5, Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-134, 110 Stat. 1321, 28 
U.S.C. 2461 note.

0
2. Section 6.4 is revised to read as follows:


Sec.  6.4  Adjustments to penalties.

    The civil monetary penalties provided by law within the 
jurisdiction of the respective agencies or bureaus of the Department, 
as set forth below in this section, are hereby adjusted in accordance 
with the inflation adjustment procedures prescribed in Section Five, 
from the amounts of such penalties in effect prior to December 14, 
2004, to the amounts of such penalties, as thus adjusted.
    (a) Bureau of Industry and Security. (1) 15 U.S.C. 5408(b)(1), 
Fastener Quality Act, violation; from $27,500 to $27,500.
    (2) 22 U.S.C. 6761(a)(1)(A), Chemical Weapons Convention 
Implementation Act--Inspection Violation, from $25,000 to $25,000.
    (3) 22 U.S.C. 6761(a)(1)(B), Chemical Weapons Convention 
Implementation Act--Record Keeping Violation, from $5,000 to $5,000.
    (4) 50 U.S.C. 1705(a), International Emergency Economic Powers 
Act--Export Administration Regulation Violation, from $11,000 to 
$11,000.
    (5) 50 U.S.C. 1705(a), International Emergency Economic Powers 
Act--Chemical Weapons Convention Implementation Act, Import Restriction 
Violation, from $11,000 to $11,000.
    (6) 50 U.S.C. App. 2410(c), Export Administration Act--Other 
Violation, from $11,000 to $11,000.
    (7) 50 U.S.C. App. 2410(c), Export Administration Act and Section 
38 of the Arms Export Control Act--National Security Violation, from 
$110,000 to $120,000.
    (b) Economic Development Administration. 19 U.S.C. 2349, Trade Act 
of 1974--False Statements or Submissions with Applications for 
Assistance, from $5,500 to $5,500.

[[Page 74418]]

    (c) Bureau of the Census. (1) 13 U.S.C. 304, Delinquency on Delayed 
filing of Export Documentation, from $1,100 to $10,000.
    (2) 13 U.S.C. 305, Collection of Foreign Trade Statistics--
Violations, from $1,100 to $10,000.
    (d) Economics and Statistics Administration. 22 U.S.C. 3105(a), 
International Investment and Trade in Services Act--Failure to Furnish 
Information, from $27,500 to $27,500.
    (e) International Trade Administration. (1) 19 U.S.C. 81s, Foreign 
Trade Zone--Violation, from $1,100 to $1,100.
    (2) 16 U.S.C. 1677(f)(4), U.S.-Canada FTA Protective Order--
Violation, from $110,000 to $120,000.
    (f) National Oceanic and Atmospheric Administration. (1) 15 U.S.C. 
5623(a)(3), Land Remote Sensing Policy Act of 1992, from $11,000 to 
$11,000.
    (2) 15 U.S.C. 5658(c), Land Remote Sensing Policy Act of 1992, from 
$11,000 to $11,000.
    (3) 16 U.S.C. 773f(a), Northern Pacific Halibut Act of 1982, from 
$27,500 to $27,500.
    (4) 16 U.S.C. 783, Sponge Act (1914), from $550 to $550.
    (5) 16 U.S.C. 957, Tuna Conventions Act of 1950 (1962);
    (i) Violation/Subsection a, from $27,500 to $27,500.
    (ii) Subsequent Violation/Subsection a, from $60,000 to $65,000.
    (iii) Violation/Subsection b, from $1,100 to $1,100.
    (iv) Subsequent Violation/Subsection b, from $5,500 to $5,500.
    (v) Violation/Subsection c, from $120,000 to $130,000.
    (6) 16 U.S.C. 971e(e), Atlantic Tuna Convention Act of 1975 (1995), 
from $120,000 to $130,000.
    (7) 16 U.S.C. 972f(b), Eastern Pacific Tuna Licensing Act of 1984;
    (i) Violation/Subsections (a)(1)-(3), from $27,500 to $27,500.
    (ii) Subsequent Violation/Subsections (a)(1)-(3), from $60,000 to 
$60,000.
    (iii) Violation/Subsections (a)(4)-(5), from $5,500 to $5,500.
    (iv) Subsequent Violation/Subsections (a)(4)-(5), from $5,500 to 
$5,500.
    (v) Violation/Subsection (a)(6), from $120,000 to $130,000.
    (8) 16 U.S.C. 973f(a), South Pacific Tuna Act of 1988, from 
$300,000 to $325,000.
    (9) 16 U.S.C. 1174(b), Fur Seal Act Amendments of 1983, from 
$11,000 to $11,000.
    (10) 16 U.S.C. 1375(a)(1), Marine Mammal Protection Act of 1972 
(1981), from $11,000 to $11,000.
    (11) 16 U.S.C. 1385(e), Dolphin Protection Consumer Information Act 
(1990), from $110,000 to $120,000.
    (12) 16 U.S.C. 1437(d)(1), National Marine Sanctuaries Act (1992), 
from $120,000 to $130,000.
    (13) 16 U.S.C. 1540(a)(1), Endangered Species Act of 1973;
    (i) Knowing Violations of Section 1538 (1988), from $27,500 to 
$27,500.
    (ii) Other Knowing Violations (1988), from $13,200 to $13,200.
    (iii) Otherwise Violations (1978), from $550 to $550.
    (14) 16 U.S.C. 1858(a), Magnuson-Stevens Fishery Conservation and 
Management Act (1990), from $120,000 to $130,000.
    (15) 16 U.S.C. 2437(a)(1), Antarctic Marine Living Resources 
Convention Act of 1984;
    (i) Knowing Violation, from $11,000 to $11,000.
    (ii) Violation, from $5,500 to $5,500.
    (16) 16 U.S.C. 2465(a), Antarctic Protection Act of 1990;
    (i) Knowing Violation, from $11,000 to $11,000.
    (ii) Violation, from $5,500 to $5,500.
    (17) 16 U.S.C. 3373(a), Lacey Act Amendments of 1981;
    (i) Sale and Purchase Violation, from $11,000 to $11,000.
    (ii) Marking Violation, from $275 to $275.
    (iii) False Labeling Violation, from $11,000 to $11,000.
    (iv) Other than Marking Violation, from $11,000 to $11,000.
    (18) 16 U.S.C. 3606(b)(1), Atlantic Salmon Convention Act of 1982 
(1990), from $120,000 to $130,000.
    (19) 16 U.S.C. 3637(b), Pacific Salmon Treaty Act of 1985 (1990), 
from $120,000 to $130,000.
    (20) 16 U.S.C. 4016(b)(1)(B), Fish and Seafood Promotion Act of 
1986, from $5,500 to $5,500.
    (21) 16 U.S.C. 5010(a)(1), North Pacific Anadromous Stocks Act of 
1992, from $110,000 to $120,000.
    (22) 16 U.S.C. 5103(b)(2), Atlantic Coastal Fisheries Cooperative 
Management Act (1993), from $120,000 to $130,000.
    (23) 16 U.S.C. 5154(c)(1), Atlantic Striped Bass Conservation Act 
(1990), from $120,000 to $130,000.
    (24) 16 U.S.C. 5507(a)(1), High Seas Fishing Compliance Act of 
1995, from $110,000 to $120,000.
    (25) 16 U.S.C. 5606(b), Northwest Atlantic Fisheries Convention Act 
of 1995, from $120,000 to $130,000.
    (26) 22 U.S.C. 1978(e), Fishermen's Protective Act of 1967 (1971);
    (i) Violation, from $11,000 to $11,000.
    (ii) Subsequent Violation, from $27,500 to $27,500.
    (27) 30 U.S.C. 1462(a), Deep Seabed Hard Mineral Resources Act 
(1980), from $27,500 to $27,500.
    (28) 42 U.S.C. 9152(c)(1), Ocean Thermal Energy Conversion Act of 
1980, from $27,500 to $27,500.

0
3. Section 6.5 is revised to read as follows:


Sec.  6.5  Effective date of adjustments.

    The adjustments made by Sec.  6.4 of this part, of the penalties 
there specified, are effective on December 14, 2004, and said 
penalties, as thus adjusted by the adjustments made by Sec.  6.4 of 
this part, shall apply only to violations occurring after December 14, 
2004, and before the effective date of any future inflation adjustment 
thereto made subsequent to December 14, 2004 as provided in Sec.  6.6 
of this part.

[FR Doc. 04-27314 Filed 12-13-04; 8:45 am]

BILLING CODE 3510-33-P