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                                   Before the

                       Federal Communications Commission

                              Washington, DC 20554

   In the Matter of Amendment of Section 1.80(b) of the Commission's Rules
   Adjustment of Civil Monetary Penalties to Reflect Inflation ) ) ) ) ) ) )
   )




                                     ORDER

   Adopted: August 1, 2013 Released: August 1, 2013

   By the Acting Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. Pursuant to the Debt Collection Improvement Act of 1996 (DCIA),^ ^
       this procedural order amends Section 1.80(b) of the Commission's
       rules^ to increase the forfeiture penalties set forth in that section
       to account for inflation since the last adjustment of those
       penalties.^ The DCIA amended the Federal Civil Penalties Inflation
       Adjustment Act of 1990 (FCPIAA)^ to require federal agencies to adjust
       civil monetary penalties at least once every four years.^

    2. The adjustments for inflation that we adopt in this order will apply
       solely to violations occurring after the effective date of the
       amendments to Section 1.80(b).^ In addition to implementing the
       inflation adjustments required under the FCPIAA, as amended, we also
       correct certain typographical errors in the rule's existing version.

   II. DISCUSSION

   A. Inflation Adjustments

    3. Pursuant to the FCPIAA, we update the civil monetary penalties set
       forth in the Communications Act of 1934, as amended (Communications
       Act or Act),^ to reflect an "inflation adjustment"^ that derives from
       what the FCPIAA terms the "cost-of-living adjustment."^ The
       cost-of-living adjustment reflects the total inflation that has taken
       place in the years since the penalties were last set or adjusted.
       Specifically, the adjustment is "the percentage (if any)" by which the
       U.S. Department of Labor's Consumer Price Index (CPI) "for the month
       of 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
       [the relevant] civil monetary penalty was last set or adjusted
       pursuant to law."^

    4. Section 1.80 prescribes four steps in adjusting a given penalty for
       inflation. First, the Commission must determine when each penalty was
       most recently set or adjusted and, for each one, calculate the
       percentage increase that must be applied. Because all of the adjusted
       penalties addressed in this order will become effective in 2013, we
       use the June 2012 CPI as the CPI for "June of the calendar year
       preceding the adjustment" for each penalty.^ However, because these
       penalties were "last set or adjusted" at varying times,^ our
       calculations employ varying CPIs for "June of the calendar year in
       which the amount of [a given] civil monetary penalty was last set or
       adjusted pursuant to law."^ Second, we multiply the cost-of-living
       adjustment by the existing penalty.^ Third, the resulting "increase"
       from the second step is rounded using the rules set forth in Section
       5(a) of the FCPIAA.^ Fourth, we ultimately
       add the rounded result to the existing penalty to generate the
       inflation adjusted penalty.^ The rounding rules of the FCPIAA
       establish tiers of penalties that are subject to different adjustment
       and rounding. For example, penalties between $1,001 and $10,000 are
       rounded upward or downward to the nearest multiple of $1,000. After
       applying these rules to the penalties in Section 1.80, most of the
       maximum forfeiture penalties will remain unchanged.^ No penalties
       under $10,000 currently require adjustment, even those that have not
       been adjusted since 1997.

    5. To illustrate the different effects of the rounding procedure, the
       discussion below steps through the required adjustment process for a
       penalty that is changed by the inflation adjustment and then one that
       is not. First, we examine adjustment of the maximum forfeiture penalty
       for violations of Section 205 of the Act.^ As the calculation below
       shows, the maximum penalty for these violations will increase from
       $18,200 to $23,200 when adjusted for inflation.

   Step 1 -- Cost of Living Adjustment

   Because the penalty for a Section 205 violation was last adjusted for
   inflation in 2004,^ the applicable CPI are for June 2012 ("June of the
   calendar year preceding [this] adjustment") and June 2004 ("June of the
   calendar year in which the amount of . . . [the] penalty was last set or
   adjusted").^ The CPI for June 2012 was 229.478, and the CPI for June 2004
   was 189.7.^

   229.478/189.7*100 - 100 = 20.97%^ cost-of-living adjustment.

   Step 2 -- Monetary Increase

   The cost-of-living adjustment is multiplied by the existing maximum
   penalty amount. ^ ^

   .2097 * $18,200 = $3,817 increase

   Step 3 -- Rounding Increase per FCPIAA and Section 1.80(b)(9)(ii)

   Pursuant to the rounding rules, the "increase" from Step 2 is rounded to
   the nearest multiple of $5,000.^

   $3,817 rounded to nearest $5,000 = $5,000 rounded increase

   Step 4 -- Inflation Adjusted Maximum Penalty

   The "rounded increase" from Step 3 is then added to the existing penalty.
   ^ ^

   $5,000 + $18,200 = $23,200 inflation adjusted maximum penalty

   In contrast, an example of a maximum forfeiture penalty that does not
   require adjustment at this time is the penalty of $1,320 in Section 214(d)
   of the Act. Step 1 of the calculation for this penalty is identical to
   Step 1 of the above illustration because both maximum forfeiture penalties
   were last adjusted in 2004.^ Based on the calculations performed in Step 2
   for Section 214(d), however, the monetary increase would be only $277.^ In
   Step 3, this potential increase of $277 is rounded to the nearest multiple
   of $1,000, so it is rounded down to zero.^ Thus, the maximum forfeiture
   penalty for violations under Section 214(d) of the Act is not adjusted for
   inflation at this time.

   III. PROCEDURAL MATTERS

   6. The Enforcement Bureau is responsible for, among other things,
   rulemaking proceedings regarding general enforcement policies and
   procedures.^ Further, the Commission delegated to the Chief of the
   Enforcement Bureau authority to perform such rulemaking functions that do
   not involve "[n]otices of proposed rulemaking and of inquiry and final
   orders in such proceedings."^ Because Congress has mandated the periodic
   adjustment of the Commission's civil monetary penalties to reflect
   inflation and specifies the formula for calculating such adjustment,^ the
   Commission has no discretion to set alternative levels of adjusted civil
   monetary penalties. We thus for good cause find that prior notice and
   solicitation of public comments in this rulemaking are unnecessary and
   impracticable.^ Accordingly, action on delegated authority is properly
   taken in this rulemaking order amending the Commission's maximum civil
   monetary penalties, which are a part of the Commission's general
   enforcement policies and procedures.^

   7. Because a notice of proposed rulemaking is not required for these rule
   changes, the Regulatory Flexibility Act does not apply.^

   8. We have analyzed the actions taken here with respect to the Paperwork
   Reduction Act of 1995 (PRA),^ and we find them to impose no new or
   modified information collection(s) subject to the PRA. In addition,
   therefore, pursuant to the Small Business Paperwork Relief Act of 2002,^
   our actions do not impose any new or modified "information collection
   burden for small business concerns with fewer than 25 employees." ^

   IV. ORDERING CLAUSES

   9. Accordingly, pursuant to Sections 4(i) and 303(r) of the Communications
   Act of 1934, as amended, 47 U.S.C. SS 154(i), 303(r), and the Debt
   Collection and Improvement Act of 1996, 28 U.S.C. S 2461 note, IT IS
   ORDERED that Section 1.80(b) of the Commission's rules, 47 C.F.R. S
   1.80(b), is AMENDED as set forth in the Appendix, EFFECTIVE thirty (30)
   days after publication in the Federal Register. This action is properly
   taken pursuant to the functions of the Enforcement Bureau and the
   authority delegated to the Chief of the Enforcement Bureau found in
   Sections 0.111(a)(22) and 0.311 of the Commission rules, respectively, 47
   C.F.R. SS 0.111(a)(22) and 0.311.

   10. IT IS FURTHER ORDERED THAT, pursuant to the Congressional Review Act,
   Pub. L. No. 104-121, 110 Stat. 868 (codified at 5 U.S.C. SS 801-808), the
   Commission SHALL SEND a copy of this order in a report to Congress and the
   Government Accountability Office, see 5 U.S.C. S 801(a)(1)(A).

   FEDERAL COMMUNICATIONS COMMISSION

   Robert H. Ratcliffe

   Acting Chief, Enforcement Bureau

                                    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: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j), 155,157,
   225, 227, 303(r), and 309.

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

   S 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 $37,500 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

   $400,000 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. 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 $350,000 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 $3,300,000 for
   any single act or

   failure to act described in paragraph (a) of this section.

   (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 $160,000 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 $1,575,000 for any single act or

   failure to act described in paragraph (a) of this section.

   (3) If the violator is a manufacturer or service provider subject to the

   requirements of section 255, 716, or 718 of the Communications Act, 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 $105,000 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 $1,050,000 for any single act or failure to
   act.

   (4) 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 $10,000 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
   $1,025,000 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.

   * * * * *

   (7) In any case not covered in paragraphs (b)(1) through (b)(6) of this

   section, the amount of any forfeiture penalty determined under this

   section shall not exceed $16,000 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 $122,500 for any single act or

   failure to act described in paragraph (a) of this section.

   (8) Factors considered in determining the amount of the forfeiture
   penalty.

   * * *

   Note to paragraph (b)(8):

   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 ceilings 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)(9)(iii).

   These statutory maxima became effective thirty (30) days after 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

   * * *

   --------------------------------------------------------------------------

   Statutory

   Violation amount

   ($)

   ---------------------------------------------------------------------------

   Sec. 202(c) Common Carrier Discrimination ...... $9,600, 530/day.

   Sec. 203(e) Common Carrier Tariffs ................. 9,600, 530/day.

   Sec. 205(b) Common Carrier Prescriptions ........ 23,200.

   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 9,600/day.

   Sec. 223(b) Dial-a-Porn ............................... 80,000/day.

   Sec. 227(e) ..............................................
   10,000/violation. 30,000/day for each day of continuing violation, up to
   1,025,000 for any single act or failure to act.

   Sec. 364(a) Forfeitures (Ships) ....................... 7,500 (owner).

   Sec. 364(b) Forfeitures (Ships) ...................... 1,100 (vessel
   master).

   Sec. 386(a) Forfeitures (Ships) ..................... 7,500/day (owner).

   Sec. 386(b) Forfeitures (Ships) ..................... 1,100 (vessel
   master).

   Sec. 634 Cable EEO  ................................... 650/day.

   --------------------------------------------------------------------------------------

   (9) 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)(9)(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.

   * * * * *

   (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:

   ---------------------------------------------------------------------------

   Maximum penalty after

   U.S. Code citation DCIA adjustment ($)

   ---------------------------------------------------------------------------

   47 U.S.C. 202(c).................................. 9,600

   530

   47 U.S.C. 203(e)................................. 9,600

   530

   47 U.S.C. 205(b)................................. 23,200

   47 U.S.C. 214(d)................................. 1,320

   47 U.S.C. 219(b)................................. 1,320

   47 U.S.C. 220(d)................................. 9,600

   47 U.S.C. 223(b)......................... 80,000

   47 U.S.C. 227(e) ........................ 10,000 30,000

   1,025,000

   47 U.S.C. 362(a)................................. 7,500

   47 U.S.C. 362(b)................................. 1,100

   47 U.S.C. 386(a)................................. 7,500

   47 U.S.C. 386(b)................................. 1,100

   47 U.S.C. 503(b)(2)(A)....................... 37,500

   400,000

   47 U.S.C. 503(b)(2)(B)........................ 160,000

   1,575,000

   47 U.S.C. 503(b)(2)(C)....................... 350,000

   3,300,000

   47 U.S.C. 503(b)(2)(D)....................... 16,000

   122,500

   47 U.S.C. 503(b)(2)(F)......................... 105,000

   1,050,000

   47 U.S.C. 507(a).................................. 750

   47 U.S.C. 507(b).................................. 110

   47 U.S.C. 554....................................... 650

   --------------------------------------------------------------------------

   Note to paragraph (b)(9): Pursuant to Public Law 104-134, the first
   inflation adjustment cannot exceed 10 percent of the statutory maximum
   amount.

   * * * * *

         THE FOLLOWING ATTACHMENT WILL NOT APPEAR IN THE CFRATTACHMENT

   U.S. Code Citation Maximum Forfeiture Penalty*

   47 U.S.C. 202(c) $9,600 $530/day
   47 U.S.C. 203(e) $9,600 $530/day
   47 U.S.C. 205(b) $23,200 (previously $18,200)
   47 U.S.C. 214(d) $1,320
   47 U.S.C. 219(b) $1,320
   47 U.S.C. 220(d) $9,600/day
   47 U.S.C. 223(b) $80,000 (previously $75,000)
   47 U.S.C. 227(e) $10,000/violation $30,000/day for each day of continuing
   violation up to $1,025,000 for any single act or failure to act
   (previously $1,000,000)
   47 U.S.C. 362(a) $7,500
   47 U.S.C. 362(b) $1,100
   47 U.S.C. 386(a) $7,500
   47 U.S.C. 386(b) $1,100
   47 U.S.C. 503(b)(2)(A) $37,500/violation or each day of a continuing
   violation up to $400,000 for any single act or failure to act (previously
   $375,000)
   47 U.S.C. 503(b)(2)(B) $160,000/violation or each day of a continuing
   violation (previously $150,000) up to $1,575,000 for any single act or
   failure to act (previously $1,500,000)
   47 U.S.C. 503(b)(2)(C) $350,000/violation or each day of a continuing
   violation (previously $325,000) up to $3,300,000 for any single act or
   failure to act (previously $3,000,000)
   47 U.S.C. 503(b)(2)(D) $16,000/violation or each day of a continuing
   violation up to $122,500 for any single act or failure to act (previously
   $112,500)
   47 U.S.C. 503(b)(2)(F) $105,000/violation or each day of a continuing
   violation (previously $100,000) up to $1,050,000 for any single act or
   failure to act (previously $1,000,000)
   47 U.S.C. 507(a) $750
   47 U.S.C. 507(b) $110
   47 U.S.C. 554 $650/day



   * Maximum forfeiture penalty amounts that have been adjusted for inflation
   at this time are indicated in bold.

   ^ Pub. L. No. 104-134, 110 Stat. 1321 (codified as amended in scattered
   sections of 5, 26, 28, 31, and 42 U.S.C., including 28 U.S.C. S 2461
   note).

   ^ 47 C.F.R. S 1.80(b).

   ^ The Commission released its last forfeiture adjustment order in June
   2008. See Amendment of Section 1.80(b) of the Commission's Rules,
   Adjustment of Forfeiture Maxima to Reflect Inflation, Order, 23 FCC Rcd
   9845 (2008) (2008 Forfeiture Adjustment Order). The adjustments adopted in
   that order took effect on September 2, 2008. See Inflation Adjustment of
   Maximum Forfeiture Penalties, 73 Fed. Reg. 44,663, 44,664 (July 31, 2008).
   Not all of the penalties addressed in this order, however, were set or
   adjusted pursuant to the Commission's last forfeiture adjustment order.
   See infra note 12.

   ^ Pub. L. No. 101-410, 104 Stat. 890 (codified as amended at 28 U.S.C.
   S 2461 note). Section numbers of the amended FCPIAA are herein cited as 28
   U.S.C. S 2461 note (#).

   ^ See 28 U.S.C. S 2461 note (4). A "civil monetary penalty" in this
   context "means any penalty, fine, or other sanction that" (1) either "is
   for a specific monetary amount" or "has a maximum amount," "as provided by
   Federal law"; and (2) "is assessed or enforced by an agency pursuant to
   Federal law" or "pursuant to an administrative proceeding or a civil
   action in the Federal courts." Id. note (3)(2).

   ^ See 28 U.S.C. S 2461 note (6) ("Any increase under this Act in a civil
   monetary penalty shall apply only to violations which occur after the date
   the increase takes effect.").

   ^ 47 U.S.C. S 151 et seq.

   ^ 28 U.S.C. S 2461 note (4)(1).

   ^ E.g., id. S 2461 note (5)(b).

   ^ Id.; see also id. S 2461 note (3) ("`Consumer Price Index' means the
   Consumer Price Index for all-urban consumers published by the Department
   of Labor.").

   ^ Id. S 2461 note 5(b)(1).

   ^ Id. S 2461 note 5(b)(2). Because of the combined effect of relevant
   inflation rates and the rounding rules--discussed below--some of the
   penalties have not been adjusted for more than five years. The penalty set
   forth in Section 503(b)(2)(C) of the Act, 47 U.S.C. S 503(b)(2)(C), was
   set in 2007 and has not been adjusted since, see Increase of Forfeiture
   Maxima for Obscene, Indecent, and Profane Broadcasts to Implement the
   Broadcast Decency Enforcement Act of 2005, 72 Fed. Reg. 33,913, 33,913
   (June 20, 2007). Several other penalties--including those imposed pursuant
   to Sections 205(b), 214(d), and 219(b) of the Communications Act, 47
   U.S.C. SS 205(b), 214(d), 219(b)--have not been adjusted since 2004. See
   Inflation Adjustment of Maximum Forfeiture Penalties, 69 Fed. Reg. 47,788,
   47,789 (Aug. 6, 2004). The penalties imposed pursuant to Sections 364(b),
   386(b), and 506(b) of the Act, 47 U.S.C. SS 362(b), 386(b), 507(b), have
   not been adjusted since 1997, see Forfeiture Proceedings, 62 Fed. Reg.
   4,917, 4,918 (Feb. 3, 1997).

   Other penalties were initially set too recently to have yet been adjusted.
   With respect to Section 227(e) of the Act, 47 U.S.C. S 227(e), the
   penalties currently set forth in Section 1.80 were initially set in 2011,
   when the Commission implemented the Truth in Caller ID Act of 2009, Pub.
   L. No. 111-331, 124 Stat. 3572 (codified at 47 U.S.C. SS 609 note,
   227(e)), so we now adjust them for the first time; see Implementation of
   the Truth in Caller ID Act, 76 Fed. Reg. 43,196, 43,196 (July 20, 2011).
   Finally, with respect to Sections 6507(b)(4) and 6507(b)(5) of the Middle
   Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, 126
   Stat. 156 (2012) (Tax Relief Act), the associated penalties currently set
   forth in Sections 1.80(b)(5) and (b)(6) were only adopted in 2012, when
   the Commission implemented the Tax Relief Act; see Implementation of the
   Middle Class Tax Relief and Job Creation Act of 2012, 72 Fed. Reg. 71,131,
   71,134 (November 29, 2012). They became effective on March 13, 2013, when
   the Office of Management and Budget approved them. See Implementation of
   the Middle Class Tax Relief and Job Creation Act of 2012, 78 Fed. Reg.
   18,246, 18,247 (March 26, 2013). They are thus too recent to require any
   adjustment and a year-to-year comparison is not yet possible.

   ^ 28 U.S.C. S 2461 note 5(b)(2). Specifically, we calculate the difference
   between the CPI for June 2012 and: June 2011 (to adjust the penalties for
   Section 227(e) of the Act), June 2008 (to adjust the penalties for
   Sections 202(c), 203(e), 220(d), 223(b), 364(a), 386(a), 503(b)(2)(A),
   503(b)(2)(B), 503(b)(2)(D), 506(a), and 634), June 2007 (to adjust the
   penalties for Section 503(b)(2)(C)), June 2004 (to adjust the penalties
   for Sections 205(b), 214(d), and 219(b)), and June 1997 (to adjust the
   penalties for Sections 364(b), 386(b), and 506(b)). In addition, to adjust
   the penalties for Section 503(b)(2)(F)--which we now amend Section 1.80 to
   address for the first time--we calculate the difference between the CPI
   for June 2012 and for June 2010. Congress added the penalties to Section
   503 in 2010 as part of the Twenty-First Century Communications and Video
   Accessibility Act of 2010. Pub. L. No. 111-260, 124 Stat. 2751 (codified
   in scattered sections of 47 U.S.C.).

   ^ See 28 U.S.C. S 2461 note 5(a).

   ^ See id.

   ^ See id. Pursuant to the DCIA, see S 31001(s)(2), 110 Stat. at 1321-373,
   Section 1.80(b)(9) includes a note that specifies one further
   consideration: "[T]he first inflation adjustment [of a given penalty]
   cannot exceed 10 percent of the [existing] statutory maximum amount," 47
   C.F.R. S 1.80(b)(9) note. The Section 1.80(b)(9) note was inadvertently
   omitted from Section 1.80(b) of the Commission's rules when the penalties
   in that section were previously adjusted. This order corrects that
   omission by reinserting the Section 1.80(b)(9) note in the Section 1.80
   rules. Relevant to the Section 1.80(b)(9) note requirement, there are
   three sets of penalties addressed in this order that the Commission has
   not previously adjusted for inflation: the penalties set forth in Section
   503(b)(2)(C) of the Act, see supra note 12, those set forth in Section
   503(b)(2)(F) of the Act, see supra note 13, and those set forth in Section
   227(e) of the Act, see supra note 12. With respect to Section 227(e),
   Section 503(b)(2)(C), and Section 503(b)(2)(F) of the Act, our adjustments
   do not exceed 10 percent of the existing statutory maximum forfeiture
   amounts. See infra Appendix (raising the total possible penalty for a
   single continuing violation pursuant to Section 227(e) from $1,000,000 to
   $1,025,000; see infra id. (raising the penalty pursuant to Section
   503(b)(2)(C) for each single violation or day of a continuing violation
   from $325,000 to $350,000, and raising the total possible penalty for a
   single continuing violation from $3,000,000 to $3,300,000); see infra id.
   (raising the penalty pursuant to Section 503(b)(2)(F) for each single
   violation or day of a continuing violation from $100,000 to $105,000, and
   raising the total possible penalty for a single continuing violation from
   $1,000,000 to $1,050,000).

   ^ See Attachment (listing all of the maximum forfeiture penalties in
   Section 1.80 and indicating in bold which ones require adjustment for
   inflation at this time).

   ^ Section 205(b) establishes the civil monetary penalty that common
   carriers--or their officers, representatives, agents, receivers (or agents
   of receivers), trustees (or agents of trustees), lessees (or agents of
   lessees)--must pay for violations of orders the Commission issues under
   Section 205(a) with respect to just and reasonable charges,
   classifications, regulations, and practices. See 47 U.S.C. S 205.

   ^ See supra note 12.

   ^ 28 U.S.C. S 2461 note (5)(b); accord 47 C.F.R. S 1.80(b)(9)(i).

   ^ A CPI table for the years 1913 through the present is available online
   from the U.S. Department of Labor's Bureau of Labor Statistics at
   ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.

   ^ Between 1984 and 2006, the U.S. Department of Labor provided CPIs with
   four significant figures. Accordingly, for purposes of this order, when we
   calculate a cost-of-living adjustment using the June 2004 CPI, we round
   the percentage increase to four significant figures--here, 20.97 percent
   or .2097. From 2007 through the present, by contrast, the U.S. Department
   of Labor has provided CPIs with six significant figures. Accordingly, in
   calculations for penalties last adjusted in 2007 or later, we round the
   cost-of-living adjustment to six significant figures.

   ^ See 47 C.F.R. S 1.80(b)(8) note sec. III tbl.; (b)(9)(iii) tbl.
   (specifying the $18,200 forfeiture); see also 47 U.S.C. S 205(b)
   (specifying a $12,000 forfeiture for each offense, prior to the
   adjustments for inflation set forth in Section 1.80(b)).

   ^ Since the existing penalty for violations of Section 205 of the
   Act--$18,200--falls in the range between $10,000 and $100,000, we must
   round the previously determined monetary increase to the nearest multiple
   of $5,000. See 28 U.S.C. S 2461 note (5)(a)(4); 47 C.F.R.
   S 1.80(b)(9)(ii)(D). Based on our application of the rounding rules, there
   are a number of penalties currently set forth in Section 1.80(b) of the
   Commission's rules that do not require adjustments for inflation at this
   time, including the penalties imposed pursuant to Sections 202(c), 203(e),
   214(d), 219(b), 220(d), 227(e) (the amounts for a single violation or
   single day of a violation), 364(a) & (b), 386(a) & (b), 503(b)(2)(A) (the
   amount for a single violation or single day of a violation), 503(b)(2)(D)
   (the amount for a single violation or single day of a violation), 506(a) &
   (b), and 634 of the Act. We also do not alter the penalties imposed
   pursuant to Sections 6507(b)(4) and 6507(b)(5) of the Tax Relief Act
   because, as already noted, see supra note 12, the Commission only
   implemented the Tax Relief Act in 2012. Accordingly, the only penalties
   adjusted in this order are those set forth in Sections 205(b), 223(b),
   227(e) (for continuing violations), 503(b)(2)(A) (for continuing
   violations), 503(b)(2)(B), 503(b)(2)(C), 503(b)(2)(D) (for continuing
   violations) and 503(b)(2)(F).

   ^ See 28 U.S.C. S 2461 note (5)(a); 47 C.F.R. S 1.80(b)(9)(i).

   ^ See supra note 12.

   ^ In Step 2, the cost-of-living adjustment is multiplied by the existing
   maximum penalty amount:
   .2097 * $1,320 = $277.

   ^ Because the existing penalty for violations of Section 214(d) of the
   Act--$1,320--falls in the range between $1,001 and $10,000, we must round
   the potential monetary increase to the nearest multiple of $1,000. See 28
   U.S.C. S 2461 note (5)(a)(3); 47 C.F.R. S 1.80(b)(9)(ii)(C).

   ^ See 47 C.F.R. S 0.111(a)(22).

   ^ 47 C.F.R. S 0.311. Pursuant to Section 0.311, the Chief of the
   Enforcement Bureau is delegated authority to perform all functions of the
   Bureau, described in Section 0.111 of the Commission's rules, 47 C.F.R. S
   0.111, including performing rulemakings except for notices of proposed
   rulemakings and of inquiry and final orders in such proceedings. See id.
   at S 0.311(a)(1).

   ^ See supra note 5 and accompanying text.

   ^ Pub. L. No. 79-404, 60 Stat. 237 (1946) (codified as amended in
   scattered sections of 5 U.S.C.); see 5 U.S.C. S 553(b)(B) (providing that
   notice and comment are not required "when the agency for good cause
   finds...that notice and public procedure thereon are impracticable,
   unnecessary, or contrary to the public interest").

   ^ See supra notes 29 and 30.

   ^ Pub. L. No. 96-354, 94 Stat. 1164 (codified at 5 U.S.C. SS 601-612); see
   5 U.S.C. SS 603-604.

   ^ Pub. L. No. 104-13, 109 Stat. 163 (codified as amended at 13 U.S.C.
   S 91, 44 U.S.C. S 101 note, and 44 U.S.C. SS 3501-3520).

   ^ Pub. L. No. 107-198, 116 Stat. 729 (codified at 5 U.S.C. S 601 note, 44
   U.S.C. SS 101 note, 3504, 3506, 3520, 3521).

   ^ See 44 U.S.C. S 3506(c)(4).

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   Federal Communications Commission DA 13-1615