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                         Before the
              Federal Communications Commission
                   Washington, D.C. 20554


In the Matter of                  )
                                 )
Amendment of  Section 1.80(b)     )
of the Commission's Rules         )
                                 )
Adjustment of Forfeiture Maxima   )
to Reflect Inflation              )
                                 )
                                 )


                            ORDER

Adopted:  June 14, 2004                      Released:  June 
18, 2004

By the Commission:

1.        This Order amends Section 1.80(b) of the 
   Commission's Rules (``Rules''), 47 C.F.R.         
   1.80(b), to increase the maximum penalties established in 
   that section to account for inflation since the last 
   adjustment to these penalties.  The adjustment procedure 
   is set forth in detail in Section 1.80(b)(5) of the 
   Rules.  That section implements the Debt Collection 
   Improvement Act of 1996, 28 U.S.C.  2461, which requires 
   federal agencies to adjust maximum statutory civil 
   monetary penalties at least once every four years.  
2.        This Order adjusts the maximum penalties to 
   account for the increase in the Consumer Price Index 
   (CPI) between June of the year the forfeiture amount was 
   last set or adjusted,1 and June 2003. The increases were 
   then rounded using the statutorily prescribed rules to 
   produce the adjusted penalties.  The Order also makes 
   editorial amendments and corrections to Section 1.80(b).   
3.        The amendment of Section 1.80(b) simply implements 
   the requirements of the Debt Collection Improvement Act 
   of 1986, 28 U.S.C.  2461, as incorporated in Section 
   1.80(b)(5) of our rules, as well as updates and clarifies 
   the rule to reflect the statute more precisely without 
   substantively changing it.  Moreover, since Congress has 
   mandated these periodic rule changes and the Commission 
   has no discretion but to make them, we find that, for 
   good cause, compliance with the notice and comment 
   provisions of the Administrative Procedure Act is 
   unnecessary.  See 5 U.S.C.  553(b)(B).
4.        Since a notice of proposed rulemaking is not 
   required, the Regulatory Flexibility Act, 5 U.S.C.   601 
   et. seq., does not apply. 
5.        The actions taken herein have been analyzed with 
   respect to the Paperwork Reduction Act of 1995 and found 
   to impose no new or modified reporting and record keeping 
   requirements or burdens on the public.
6.        Accordingly, pursuant to Sections 4(i) and 303(r) 
   of the Communications Act of 1934, as amended, 47 U.S.C. 
    154(i) and 303(r), and the Debt Collection and 
   Improvement Act of 1996, 28  U.S.C.  2461, IT IS ORDERED 
   that 47 C.F.R.  1.80(b) is AMENDED as set forth in the 
   Appendix, EFFECTIVE 30 days after publication in the 
   Federal Register.


                                                            
     FEDERAL COMMUNICATIONS COMMISSION


     
                                                              
     Marlene H. Dortch
                                                            
     Secretary
                                                                                               APPENDIX
 
Part 1 of Chapter 1 of Title 47 of the Code of Federal 
Regulations is amended as follows:

Part 1---PRACTICE AND PROCEDURE

Subpart A---General Rules of Practice and Procedure

Miscellaneous Proceedings

1.   The authority citation for Part 1 continues to read as 
   follows:  
           
 Authority: 47 U.S.C. 151, 154(i) and (j), 155, 225, 303(r), 
and 309.

2.   Section. 1.80 is amended by revising paragraph (b) to 
   read as follows:

    1.80 Forfeiture proceedings.

* * * * *
   (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 
$32,500 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 
$325,000 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 $130,000 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 $1,325,000 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 $97,500 for any single 
act or 
failure to act described in paragraph (a) of this section.
    (4) Factors considered in determining the amount of the 
forfeiture penalty. 
In determining the amount of the forfeiture penalty, the 
Commission or its designee will take into account the 
nature, 
circumstances, extent and gravity of the violations and, 
with respect to 
the violator, the degree of culpability, any history of 
prior offenses, 
ability to pay, and such other matters as justice may 
require.

   Note to paragraph (b)(4):

                    GUIDELINES FOR ASSESSING FORFEITURES

    The Commission and its staff may use these guidelines in 
particular 
cases. The Commission and its staff retain the discretion to 
issue a 
higher or lower forfeiture than provided in the guidelines, 
to issue no 
forfeiture at all, or to apply alternative or additional 
sanctions as 
permitted by the statute. The forfeiture ceiling per 
violation or per 
day for a continuing violation stated in Section 503 of the 
Communications
Act and the Commission's Rules are described in Section 
1.80(b)(5)(iii). 
These statutory maxima became effective 30 days from 
publication in 
the Federal Register.  Forfeitures issued under other 
sections of the Act 
are dealt with separately in Section III of this note.

* * * * *           

   Section III. Non-Section 503 Forfeitures That are 
Affected by the  
                       Downward Adjustment Factors

    Unlike Section 503 of the Act, which establishes maximum 
forfeiture 
amounts, other sections of the Act, with one exception, 
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.  For convenience, the Commission will treat 
this amount as if it were a prescribed base amount, subject 
to downward
adjustments. The following amounts 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 Section II of this note.

???????????????????????????????????????????????????????????-
?????????????--
                                                             
Statutory
                         Violation                          
amount ($)
???????????????????????????????????????????????????????????-
?????-----------
Sec. 202(c) Common Carrier Discrimination ......  8,600 
430/day.
Sec. 203(e) Common Carrier Tariffs ...................  
8,600 430/day.
Sec. 205(b) Common Carrier Prescriptions .........    
18,200.
Sec. 214(d) Common Carrier Line Extensions ....    
1,320/day.
Sec. 219(b) Common Carrier Reports .................    
1,320.
Sec. 220(d) Common Carrier Records & Accounts      
8,600/day.
Sec. 364(a) Forfeitures (Ships) ...................          
6,500 (owner).
Sec. 364(b) Forfeitures (Ships) ..................           
1,100 (vessel master).
Sec. 386(a) Forfeitures (Ships) ...........................  
6,500/day (owner).
Sec. 386(b) Forfeitures (Ships) 
.............................  1,100 (vessel master).
Sec. 634 Cable EEO 
............................................     550/day.
???????????????????????????????????????????????????????????-
?????????------------------

    (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 method specified in 
the statute. 
This is to be done by determining the `cost-of-living 
adjustment', which 
is the percentage (if any) by which the CPI for June of the 
preceding 
year exceeds the CPI for June of the year the forfeiture 
amount was 
last set or adjusted.  The inflation adjustment is 
determined by multiplying 
the cost-of-living adjustment 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)***

   (iii) The application of the inflation adjustments 
required by the
DCIA, 28 U.S.C.  2461, results in the following adjusted 
statutory 
maximum forfeitures authorized by the Communications Act:

???????????????????????????????????????????????????????????-
???-----------??
                                                        Max-
imum penalty after
             U.S. Code citation              DCIA adjustment
???????????????????????????????????????????????????????????-
??-----------???
47 USC 202(c)....................................      
$8,600
                                                                      
430
47 USC 203(e)....................................       
8,600
                                                                      
430
47 USC 205(b)....................................     18,200
47 USC 214(d)....................................        
1,320
47 USC 219(b)....................................       
1,320
47 USC 220(d)....................................        
8,600
47 USC 362(a)....................................       
6,500
47 USC 362(b)....................................       
1,100
47 USC 386(a)....................................       
6,500
47 USC 386(b)....................................       
1,100
47 USC 503(b)(2)(A)...........................    32,500
                                                                
325,000
47 USC 503(b)(2)(B)...........................  130,000
                                                             
1,325,000
47 USC 503(b)(2)(C)...........................    11,000
                                                                 
97,500
47 USC 507(a)....................................          
650
47 USC 507(b)....................................          
110
47 USC 554.........................................          
550
???????????????????????????????????????????????????????????-
?????

* * * * *  




_________________________

1 Under the rounding rules set forth in Section 
1.80(b)(5)(ii), the inflation adjustment for a statutory 
forfeiture amount must reach a specific threshold before the 
forfeiture amount may be increased.  Thus, different CPIs 
may be used to calculate the inflation factors for different 
statutory forfeitures, depending on when a particular 
forfeiture was last increased.  The June 1999 CPI is used to 
calculate the inflation factors for the statutory forfeiture 
amounts in Sections 202(c) (the amount for each violation, 
not the per day amount for continuing violations), 203(e) 
(the amount for each violation, not the per day amount for 
continuing violations), 220(d), 503(b)(2)(A) (the maximum 
amount for continuing violations, not the amount for a 
single violation or single day of a violation), 
503(b)(2)(B), and 503(b)(2)(C) (the maximum amount for 
continuing violations, not the amount for a single violation 
or single day of a violation).  The June 1995 CPI is used to 
calculate the inflation factors for the statutory forfeiture 
amounts in Sections 202(d) (the per day amount for 
continuing violations), 203(e) (the per day amount for 
continuing violations), 205(b), 364(a), 364(b), 386(a), 
386(b), 503(b)(2)(A) (the amount for a single violation or 
single day of a violation), 503(b)(2)(C) (the amount for a 
single violation or single day of a violation), 507(a), and 
507(b).  The June 1992 CPI is used to calculate the 
inflation factor for the Section 634 forfeiture amount, and 
the June 1989 CPI is used to calculate the inflation factors 
for the statutory forfeiture amounts in Sections 214(d) and 
219(b).  Finally, the first inflation adjustment for each 
statutory forfeiture may not exceed 10 percent of the 
statutory maximum amount.  See 47 C.F.R.  1.80(b)(5), Note 
to Paragraph (b)(5).  This is the first inflation adjustment 
for the statutory forfeiture amounts in Sections 364(b), 
386(b) and 634 because this is the first time that the 
inflation adjustment for these forfeitures reached the 
specific threshold set forth in the rounding rules.  
Accordingly, the inflation adjustment for the forfeiture 
amounts in Sections 364(b), 386(b) and 634 is limited to 10 
percent.