Department of Agriculture Civil Monetary Penalties Adjustment, 29573-29579 [05-10153]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE
• Food and Nutrition Service
• Office of the Secretary

[Federal Register Volume 70, Number 99 (Tuesday, May 24, 2005)]
[Rules and Regulations]
[Pages 29573-29579]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-10153]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

========================================================================


Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules 
and Regulations

[[Page 29573]]



DEPARTMENT OF AGRICULTURE

Office of the Secretary

7 CFR Part 3

Agricultural Marketing Service

7 CFR Parts 46, 110, 205, 1150, and 1160

Food and Nutrition Service

7 CFR Parts 246 and 278

[0510-AA01]


Department of Agriculture Civil Monetary Penalties Adjustment

AGENCY: Office of the Secretary, Agricultural Marketing Service, Food 
and Nutrition Service, USDA.

ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, this final rule adjusts civil 
monetary penalties imposed by agencies within USDA to incorporate an 
inflation adjustment.

DATES: Effective date: Effective June 23, 2005.

FOR FURTHER INFORMATION CONTACT: Adam J. Hermann, Esq., OGC, USDA, Room 
2011-S, 1400 Independence Avenue, SW., Washington, DC 20250-1400, (202) 
260-1615.

SUPPLEMENTARY INFORMATION:

I. The Federal Civil Penalties Inflation Adjustment Act of 1990

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. 
L. 101-410; 28 U.S.C. 2461 note) (Act), as amended, requires Federal 
agencies to periodically adjust certain civil monetary penalties (CMPs) 
for inflation. Under the Act, a CMP is defined as any penalty, fine, or 
other sanction for which a Federal statute specifies a monetary amount, 
including a range of minimum and maximum amounts. Each Executive agency 
is responsible for adjusting, pursuant to the Act, all CMPs within the 
agency's jurisdiction. The Act does not apply to any CMP under the 
Internal Revenue Code of 1986, Tariff Act of 1930, Occupational Safety 
and Health Act of 1970, or Social Security Act.
    The Act requires each Executive agency to make an initial inflation 
adjustment for all applicable CMPs not later than 180 days after the 
date of enactment of the Debt Collection Improvement Act of 1996 (Pub. 
L. 104-134) (i.e., April 26, 1996), and subsequent inflation 
adjustments at least once every 4 years thereafter. USDA published its 
initial round of inflation adjustments in the Federal Register on July 
31, 1997, and those adjustments became effective on September 2, 1997 
(62 FR 40924, July 31, 1997). The USDA initial CMP adjustments are 
codified in subpart E of part 3 of title 7 of the Code of Federal 
Regulations (7 CFR 3.91).
    This final rule amends 7 CFR 3.91(b) to reflect the second round of 
USDA inflation adjustments. In addition, this final rule amends 7 CFR 
3.91(a) by: (1) Emphasizing that any increases in CMP dollar amounts 
reflected in this rule apply only to violations occurring after the 
effective date of this rule; (2) emphasizing that the descriptions of 
the CMPs listed in 7 CFR 3.91(b) are for illustrative purposes only, 
that 7 CFR 3.91 does not amend, interpret, implement, or alter in any 
way the statutory provisions in which the listed CMPs are set, and that 
persons should consult the statutory text in which the CMPs are set and 
any implementing regulations to make applicability determinations; and 
(3) adding two definitions. This final rule also makes conforming 
amendments to other agency regulations that currently specify dollar 
amounts for CMPs that are being adjusted by this final rule.

Method of Calculation

    Under the Act, the required inflation adjustment is determined by 
adjusting each applicable CMP by the ``cost-of-living adjustment'' 
(COLA). The COLA is defined in the Act as the percentage (if any) by 
which the 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 such CMP was last 
set or adjusted pursuant to law. As required by the Act, USDA used the 
CPI for all urban consumers published by the U.S. Department of Labor. 
In calculating the COLA, USDA rounded to the nearest tenth.
    When USDA first adjusted its CMPs pursuant to the Act in 1997, USDA 
explained that ``[t]he rule contained in this notice reflects the 
initial adjustment to the listed civil monetary penalties required by 
the Act'' (62 FR 40924; July 31, 1997). USDA continues to interpret the 
Act such that all listed CMPs undergo the required adjustment whenever 
USDA adjusts those CMPs by regulation pursuant to the Act and publishes 
the regulation in the Federal Register. In other words, a CMP is 
considered to have been adjusted even though the dollar amount of the 
penalty does not increase (a situation that arises due to application 
of the rounding formulas in section 5(a) of the Act). Thus, all CMPs 
contained in this final rule are being adjusted pursuant to the Act. 
USDA believes that this interpretation most accurately reflects the 
plain language of the statutory text.
    For all CMP adjustments in this final rule, USDA used the CPI for 
the month of June 2004 (189.7) as the numerator CPI. However, USDA used 
different denominator CPI values depending on the penalty being 
adjusted:

    (1) For those CMPs that were last adjusted in 1997 via 
regulation (62 FR 40924, July 31, 1997), USDA used the CPI for the 
month of June 1997. Nearly all of the CMPs being adjusted in this 
final rule fall into this category.
    (2) For those CMPs specified in statutory provisions that became 
effective after the effective date of the initial round of USDA CMP 
adjustments (Sept. 2, 1997), USDA used the CPI for the month of June 
of the year in which those CMPs were last set in statute. The CMPs 
in this category are specified in the following 13 subparagraphs of 
7 CFR 3.91(b), as amended by this final rule: (1)(l), (l)(li), 
(1)(lii), (1)(liii), (2)(iii), (2)(v), (2)(vi), (2)(vii), (3)(v), 
(3)(vi), (7)(ii), (8)(ii), and (8)(iii).
    (3) For those CMPs specified in statutory provisions that were 
effective prior to Sept. 2, 1997, but were erroneously excluded from 
the initial round of USDA CMP adjustments, USDA used the CPI for the 
month of June of the year in which those CMPs were last set in 
statute. The CMPs in that category are specified in the following 2 
subparagraphs of

[[Page 29574]]

7 CFR 3.91(b), as amended by this final rule: (2)(xiii) and (8)(i).

Limitations on Adjustment--Rounding

    The adjustment of these CMPs is limited by six specific rounding 
formulas set forth in section 5(a) of the Act. Under the Act, raw 
inflationary increases are rounded to the nearest: (1) Multiple of $10 
in the case of penalties less than or equal to $100; (2) multiple of 
$100 in the case of penalties greater than $100 but less than or equal 
to $1,000; (3) multiple of $1,000 in the case of penalties greater than 
$1,000 but less than or equal to $10,000; (4) multiple of $5,000 in the 
case of penalties greater than $10,000 but less than or equal to 
$100,000; (5) multiple of $10,000 in the case of penalties greater than 
$100,000 but less than or equal to $200,000; and (6) multiple of 
$25,000 in the case of penalties greater than $200,000.
    Due to these restrictive rounding rules, not all CMP amounts are 
being increased in this final rule. For example, the CMP for knowingly 
labeling or selling a product as organic except in accordance with the 
Organic Foods Production Act was adjusted to $11,000 in the initial 
round of USDA CMP adjustments in 1997. The inflation rate from June 
1997 to June 2004 increased by a factor of 1.2, resulting in a raw 
adjustment of $2,200 for this second round of adjustments. The Act 
specifies that inflationary increases for penalties greater than 
$10,000 but less than or equal to $100,000 must be rounded to the 
nearest multiple of $5,000. $2,200, rounded to the nearest multiple of 
$5,000, is 0. Therefore, in this final rule, USDA did not increase the 
$11,000 amount for this CMP.
    Determining which rounding formula to apply depends on the current 
amount of the CMP at the time the calculation is performed, not on the 
size of the raw inflationary increase. Thus, in the example above, the 
$2,200 raw inflationary increase is subject to rounding formula 
4 because the amount of that CMP is $11,000.

Limitations on Adjustment--The ``10 Percent'' Cap on Initial 
Adjustments

    Adjustment of CMPs under the Act is limited in another important 
respect. The Act specifies that the first adjustment of a CMP may not 
exceed 10 percent of such penalty. Again, USDA interprets the Act such 
that the required adjustment takes place each time USDA adjusts its 
CMPs under the Act via regulation published in the Federal Register. 
Therefore, all CMPs that are currently in 7 CFR 3.91 underwent their 
initial adjustment and were subject to the ``10 percent'' cap when that 
regulation became effective on September 2, 1997.
    In this final rule, USDA applied the ``10 percent'' cap only to 
those CMPs specified in statutes (1) that became effective after the 
effective date of the initial round of USDA CMP adjustments (Sept. 2, 
1997); or (2) that became effective prior to Sept. 2, 1997, but were 
erroneously excluded from the initial round of USDA adjustments. The 
CMPs in these two categories are considered to have undergone their 
initial adjustment in this final rule, regardless of whether the CMP 
dollar amounts are being increased.

Special Considerations

    In adjusting the CMPs in this final rule, USDA determined that some 
CMPs currently set forth in 7 CFR 3.91 were not adjusted correctly when 
that regulation was published in 1997. For those penalties, USDA re-
calculated the COLA and applied the statutory rounding formulas to 
determine what the adjusted CMP amount(s) should have been when 7 CFR 
3.91 was promulgated in 1997. USDA then used the corrected dollar 
amount in determining the adjusted CMP figures in this final rule. 
However, USDA will not retroactively apply these corrected dollar 
amounts to violations occurring prior to the effective date of this 
regulation.

----------------------------------------------------------------------------------------------------------------
                                                         Old incorrect CMP  Old corrected CMP
          Old section                  New section           amount(s)          amount(s)      New CMP amount(s)
----------------------------------------------------------------------------------------------------------------
7 CFR 3.91(b)(1)(xxxviii)......  7 CFR                                $530                550                650
                                  3.91(b)(1)(xxxviii).               5,300              5,500              6,500
7 CFR 3.91(b)(1)(xxxix)........  7 CFR                               5,300              5,500              6,500
                                  3.91(b)(1)(xxxix).
7 CFR 3.91(b)(1)(xl)...........  7 CFR 3.91(b)(1)(xl)..              1,030              1,100              1,100
7 CFR 3.91(b)(1)(xli)..........  7 CFR 3.91(b)(1)(xli).                520                550                650
7 CFR 3.91(b)(2)(xv)...........  7 CFR 3.91(b)(2)(x)...             25,000             27,500             32,500
7 CFR 3.91(b)(2)(xvi)..........  7 CFR 3.91(b)(2)(xi)..             12,000             13,200             18,200
7 CFR 3.91(b)(2)(xvii).........  7 CFR 3.91(b)(2)(xii).                500                550                650
7 CFR 3.91(b)(3)(ii)...........  7 CFR 3.91(b)(3)(ii)..             20,000             22,000             27,000
                                                                    40,000             44,000             54,000
7 CFR 3.91(b)(3)(iii)..........  7 CFR 3.91(b)(3)(iii).             20,000             22,000             27,000
                                                                    40,000             44,000             54,000
7 CFR 3.91(b)(3)(iv)...........  7 CFR 3.91(b)(3)(iv)..        100,000,000        110,000,000        132,000,000
7 CFR 3.91(b)(7)...............  7 CFR 3.91(b)(7)(i)...             10,000             11,000             11,000
----------------------------------------------------------------------------------------------------------------

II. Civil Monetary Penalties Affected by This Rule

    Several USDA agencies administer laws that provide for the 
imposition of CMPs being adjusted by this final rule. Those agencies 
are: (1) Agricultural Marketing Service; (2) Animal and Plant Health 
Inspection Service; (3) Food and Nutrition Service; (4) Food Safety and 
Inspection Service; (5) Forest Service; (6) Grain Inspection, Packers 
and Stockyards Administration; (7) Federal Crop Insurance Corporation; 
and (8) Rural Housing Service. The CMPs in this final rule are listed 
according to the applicable administering agency.

III. Waiver of Proposed Rulemaking

    In developing this final rule, we are waiving the usual notice of 
proposed rulemaking and public comment procedures contained in 5 U.S.C. 
553. We have determined that, under 5 U.S.C. 553(b)(3)(B), good cause 
exists for dispensing with the notice of proposed rulemaking and public 
comment procedures for this rule. Specifically, this rulemaking 
comports and is consistent with the statutory authority required by the 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, 
with no issue of policy discretion. Accordingly, we have determined 
that opportunity for prior comment is unnecessary and contrary to the 
public interest, and are issuing this revised regulation as a final 
rule that will apply to all future cases.

[[Page 29575]]

IV. Procedural Requirements

Executive Order 12866

    The Office of Management and Budget (OMB) has reviewed this final 
rule in accordance with the provisions of Executive Order 12866, 
Regulatory Planning and Review, and has determined that it does not 
meet the criteria for a significant regulatory action. As indicated 
above, the provisions of this final rulemaking contain inflation 
adjustments in compliance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, for specific applicable civil 
monetary penalties. The great majority of individuals, organizations, 
and entities affected by this regulation do not engage in prohibited 
activities and practices, and as a result, we believe that any 
aggregate economic impact of this revised regulation will be minimal, 
affecting only those limited few who may engage in prohibited behavior 
in violation of the statutes.

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to an 
initial and final regulatory flexibility analysis (5 U.S.C. 603, 604) 
are not applicable to this final rule because USDA was not required to 
publish a notice of proposed rulemaking under 5 U.S.C. 553 or any other 
law. Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

    This final rule imposes no new reporting or recordkeeping 
requirements necessitating clearance by OMB.

List of Subjects in 7 CFR Parts 3, 46, 110, 205, 246, 278, 1150, 
and 1160

    Administrative practice and procedure, Claims, Debt management, 
Penalties.


0
For the reasons set forth in the preamble, amend 7 CFR parts 3, 46, 
110, 205, 246, 278, 1150, and 1160 as follows:

PART 3--DEBT MANAGEMENT

Subpart E--Adjusted Civil Monetary Penalties

0
1. The authority citation for subpart E continues to read as follows:

    Authority: 28 U.S.C. 2461 note.


0
2. Revise subpart E to read as follows:

Subpart E--Adjusted Civil Monetary Penalties


Sec.  3.91  Adjusted civil monetary penalties.

    (a) In general. (1) The Secretary will adjust the civil monetary 
penalties, listed in paragraph (b) of this section, to take account of 
inflation at least once every 4 years as required by the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410), as 
amended.
    (2) Any increase in the dollar amount of a civil monetary penalty 
listed in paragraph (b) of this section shall apply only to violations 
occurring after June 23, 2005.
    (3) The descriptions of the civil monetary penalties listed in 
paragraph (b) of this section are for illustrative purposes only. This 
section does not amend, interpret, implement, or alter in any way the 
statutory provisions in which the civil monetary penalties listed in 
paragraph (b) are set. Moreover, the descriptions of the civil monetary 
penalties listed in paragraph (b) do not necessarily contain a complete 
description of the circumstances (e.g., requirements regarding the 
``state of mind'' of the violator(s), requirements regarding the type 
of law or issuance violated, etc.) under which the penalties are 
assessed. Persons should consult the statutory text in which the civil 
monetary penalties are set and any implementing regulations to make 
applicability determinations.
    (4) As used in this section, the following terms have the following 
meanings:
    (i) Secretary means the Secretary of Agriculture; and
    (ii) Department means the United States Department of Agriculture.
    (b) Penalties--(1) Agricultural Marketing Service--(i) Civil 
penalty for improper pesticide recordkeeping, codified at 7 U.S.C. 
136i-1(d), has:
    (A) A maximum of $650 in the case of the first offense; and
    (B) A minimum of $1,100 in the case of subsequent offenses, except 
that the penalty shall be less than $1,100 if the Secretary determines 
that the person made a good faith effort to comply.
    (ii) Civil penalty for a violation of the unfair conduct rule under 
the Perishable Agricultural Commodities Act, in lieu of license 
revocation or suspension, codified at 7 U.S.C. 499b(5), has a maximum 
of $2,200.
    (iii) Civil penalty for a violation of the licensing requirements 
under the Perishable Agricultural Commodities Act, codified at 7 U.S.C. 
499c(a), has a maximum of $1,200 for each such offense and not more 
than $350 for each day it continues, or a maximum of $350 for each such 
offense if the Secretary determines the violation was not willful.
    (iv) Civil penalty in lieu of license suspension under the 
Perishable Agricultural Commodities Act, codified at 7 U.S.C. 499h(e), 
has a maximum of $2,000 for each violative transaction or each day the 
violation continues.
    (v) Civil penalty for a violation of the Export Apple Act, codified 
at 7 U.S.C. 586, has a minimum of $110 and a maximum of $11,000.
    (vi) Civil penalty for a violation of the Export Grape and Plum 
Act, codified at 7 U.S.C. 596, has a minimum of $110 and a maximum of 
$11,000.
    (vii) Civil penalty for a violation of an order issued by the 
Secretary under the Agricultural Adjustment Act, reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, 
codified at 7 U.S.C. 608c(14)(B), has a maximum of $1,100.
    (viii) Civil penalty for failure to file certain reports under the 
Agricultural Adjustment Act, reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, codified at 7 U.S.C. 
610(c), has a maximum of $110.
    (ix) Civil penalty for a violation of a seed program under the 
Federal Seed Act, codified at 7 U.S.C. 1596(b), has a minimum of $37.50 
and a maximum of $650.
    (x) Civil penalty for failure to collect any assessment or fee or 
for a violation of the Cotton Research and Promotion Act, codified at 7 
U.S.C. 2112(b), has a maximum of $1,100.
    (xi) Civil penalty for a violation of a cease and desist order, or 
for deceptive marketing, under the Plant Variety Protection Act, 
codified at 7 U.S.C. 2568(b), has a minimum of $650 and a maximum of 
$11,000.
    (xii) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Potato 
Research and Promotion Act, codified at 7 U.S.C. 2621(b)(1), has a 
minimum of $650 and a maximum of $6,500.
    (xiii) Civil penalty for failure to obey a cease and desist order 
under the Potato Research and Promotion Act, codified at 7 U.S.C. 
2621(b)(3), has a maximum of $650.
    (xiv) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Egg 
Research and Consumer Information Act, codified at 7 U.S.C. 2714(b)(1), 
has a minimum of $650 and a maximum of $6,500.
    (xv) Civil penalty for failure to obey a cease and desist order 
under the Egg Research and Consumer Information Act, codified at 7 
U.S.C. 2714(b)(3), has a maximum of $650.
    (xvi) Civil penalty for failure to remit any assessment or fee or 
for a violation of a program under the Beef Research and Information 
Act, codified at 7

[[Page 29576]]

U.S.C. 2908(a)(2), has a maximum of $6,500.
    (xvii) Civil penalty for failure to remit any assessment or for a 
violation of a program regarding wheat and wheat foods research, 
codified at 7 U.S.C. 3410(b), has a maximum of $1,100.
    (xviii) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Floral 
Research and Consumer Information Act, codified at 7 U.S.C. 4314(b)(1), 
has a minimum of $650 and a maximum of $6,500.
    (xix) Civil penalty for failure to obey a cease and desist order 
under the Floral Research and Consumer Information Act, codified at 7 
U.S.C. 4314(b)(3), has a maximum of $650.
    (xx) Civil penalty for a violation of an order under the Dairy 
Promotion Program, codified at 7 U.S.C. 4510(b), has a maximum of 
$1,100.
    (xxi) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of the Honey Research, Promotion, 
and Consumer Information Act, codified at 7 U.S.C. 4610(b)(1), has a 
minimum of $650 and a maximum of $6,500.
    (xxii) Civil penalty for failure to obey a cease and desist order 
under the Honey Research, Promotion, and Consumer Information Act, 
codified at 7 U.S.C. 4610(b)(3), has a maximum of $650.
    (xxiii) Civil penalty for a violation of a program under the Pork 
Promotion, Research, and Consumer Information Act of 1985, codified at 
7 U.S.C. 4815(b)(1)(A)(i), has a maximum of $1,100.
    (xxiv) Civil penalty for failure to obey a cease and desist order 
under the Pork Promotion, Research, and Consumer Information Act of 
1985, codified at 7 U.S.C. 4815(b)(3)(A), has a maximum of $650.
    (xxv) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Watermelon 
Research and Promotion Act, codified at 7 U.S.C. 4910(b)(1), has a 
minimum of $650 and a maximum of $6,500.
    (xxvi) Civil penalty for failure to obey a cease and desist order 
under the Watermelon Research and Promotion Act, codified at 7 U.S.C. 
4910(b)(3), has a maximum of $650.
    (xxvii) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Pecan 
Promotion and Research Act of 1990, codified at 7 U.S.C. 6009(c)(1), 
has a minimum of $1,100 and a maximum of $11,000.
    (xxviii) Civil penalty for failure to obey a cease and desist order 
under the Pecan Promotion and Research Act of 1990, codified at 7 
U.S.C. 6009(e), has a maximum of $1,100.
    (xxix) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Mushroom 
Promotion, Research, and Consumer Information Act of 1990, codified at 
7 U.S.C. 6107(c)(1), has a minimum of $650 and a maximum of $6,500.
    (xxx) Civil penalty for failure to obey a cease and desist order 
under the Mushroom Promotion, Research, and Consumer Information Act of 
1990, codified at 7 U.S.C. 6107(e), has a maximum of $650.
    (xxxi) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of the Lime Research, Promotion, 
and Consumer Information Act of 1990, codified at 7 U.S.C. 6207(c)(1), 
has a minimum of $650 and a maximum of $6,500.
    (xxxii) Civil penalty for failure to obey a cease and desist order 
under the Lime Research, Promotion, and Consumer Information Act of 
1990, codified at 7 U.S.C. 6207(e), has a maximum of $650.
    (xxxiii) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Soybean 
Promotion, Research, and Consumer Information Act, codified at 7 U.S.C. 
6307(c)(1)(A), has a maximum of $1,100.
    (xxxiv) Civil penalty for failure to obey a cease and desist order 
under the Soybean Promotion, Research, and Consumer Information Act, 
codified at 7 U.S.C. 6307(e), has a maximum of $6,500.
    (xxxv) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Fluid Milk 
Promotion Act of 1990, codified at 7 U.S.C. 6411(c)(1)(A), has a 
minimum of $650 and a maximum of $6,500, or in the case of a violation 
that is willful, codified at 7 U.S.C. 6411(c)(1)(B), has a minimum of 
$11,000 and a maximum of $130,000.
    (xxxvi) Civil penalty for failure to obey a cease and desist order 
under the Fluid Milk Promotion Act of 1990, codified at 7 U.S.C. 
6411(e), has a maximum of $6,500.
    (xxxvii) Civil penalty for knowingly labeling or selling a product 
as organic except in accordance with the Organic Foods Production Act 
of 1990, codified at 7 U.S.C. 6519(a), has a maximum of $11,000.
    (xxxviii) Civil penalty for failure to pay, collect, or remit any 
assessment or fee or for a violation of a program under the Fresh Cut 
Flowers and Fresh Cut Greens Promotion and Information Act of 1993, 
codified at 7 U.S.C. 6808(c)(1)(A)(i), has a minimum of $650 and a 
maximum of $6,500.
    (xxxix) Civil penalty for failure to obey a cease and desist order 
under the Fresh Cut Flowers and Fresh Cut Greens Promotion and 
Information Act of 1993, codified at 7 U.S.C. 6808(e)(1), has a maximum 
of $6,500.
    (xl) Civil penalty for a violation of a program under the Sheep 
Promotion, Research, and Information Act of 1994, codified at 7 U.S.C. 
7107(c)(1)(A), has a maximum of $1,100.
    (xli) Civil penalty for failure to obey a cease and desist order 
under the Sheep Promotion, Research, and Information Act of 1994, 
codified at 7 U.S.C. 7107(e), has a maximum of $650.
    (xlii) Civil penalty for a violation of an order or regulation 
issued under the Commodity Promotion, Research, and Information Act of 
1996, codified at 7 U.S.C. 7419(c)(1), has a minimum of $1,200 and a 
maximum of $12,000 for each violation.
    (xliii) Civil penalty for a violation of a cease and desist order 
under the Commodity Promotion, Research, and Information Act of 1996, 
codified at 7 U.S.C. 7419(e), has a minimum of $1,200 and a maximum of 
$12,000 for each day the violation occurs.
    (xliv) Civil penalty for a violation of an order or regulation 
issued under the Canola and Rapeseed Research, Promotion, and Consumer 
Information Act, codified at 7 U.S.C. 7448(c)(1)(A)(i), has a maximum 
of $1,200 for each violation.
    (xlv) Civil penalty for a violation of a cease and desist order 
under the Canola and Rapeseed Research, Promotion, and Consumer 
Information Act, codified at 7 U.S.C. 7448(e), has a maximum of $6,000 
for each day the violation occurs.
    (xlvi) Civil penalty for a violation of an order or regulation 
issued under the National Kiwifruit Research, Promotion, and Consumer 
Information Act, codified at 7 U.S.C. 7468(c)(1), has a minimum of $600 
and a maximum of $6,000 for each violation.
    (xlvii) Civil penalty for a violation of a cease and desist order 
under the National Kiwifruit Research, Promotion, and Consumer 
Information Act, codified at 7 U.S.C. 7468(e), has a maximum of $600 
for each day the violation occurs.
    (xlviii) Civil penalty for a violation of an order or regulation 
issued under the Popcorn Promotion, Research, and Consumer Information 
Act, codified at 7 U.S.C. 7487(a), has a maximum of $1,200 for each 
violation.
    (xlix) Civil penalty for certain violations under the Egg Products 
Inspection Act, codified at 21 U.S.C. 1041(c)(1)(A), has a maximum of 
$6,500 for each violation.

[[Page 29577]]

    (l) Civil penalty for a violation of an order or regulation issued 
under the Hass Avocado Promotion, Research, and Information Act of 
2000, codified at 7 U.S.C. 7807(c)(1)(A)(i), has a minimum of $1,100 
and a maximum of $11,000 for each violation.
    (li) Civil penalty for failure to obey a cease and desist order 
under the Hass Avocado Promotion, Research, and Information Act of 
2000, codified at 7 U.S.C. 7807(e)(1), has a maximum of $11,000 for 
each offense.
    (lii) Civil penalty for a violation of certain provisions of the 
Livestock Mandatory Reporting Act of 1999, codified at 7 U.S.C. 
1636b(a)(1), has a maximum of $11,000 for each violation.
    (liii) Civil penalty for failure to obey a cease and desist order 
under the Livestock Mandatory Reporting Act of 1999, codified at 7 
U.S.C. 1636b(g)(3), has a maximum of $11,000 for each violation.
    (2) Animal and Plant Health Inspection Service--(i) Civil penalty 
for a violation of the imported seed provisions of the Federal Seed 
Act, codified at 7 U.S.C. 1596(b), has a minimum of $37.50 and a 
maximum of $650.
    (ii) Civil penalty for a violation of the Animal Welfare Act, 
codified at 7 U.S.C. 2149(b), has a maximum of $3,750, and knowing 
failure to obey a cease and desist order has a civil penalty of $1,650.
    (iii) Civil penalty for any person that causes harm to, or 
interferes with, an animal used for the purposes of official 
inspections by the Department, codified at 7 U.S.C. 2279e(a), has a 
maximum of $11,000.
    (iv) Civil penalty for a violation of the Swine Health Protection 
Act, codified at 7 U.S.C. 3805(a), has a maximum of $11,000.
    (v) Civil penalty for any person that violates the Plant Protection 
Act (PPA), or that forges, counterfeits, or, without authority from the 
Secretary, uses, alters, defaces, or destroys any certificate, permit, 
or other document provided for in the PPA, codified at 7 U.S.C. 
7734(b)(1), has a maximum of the greater of: $55,000 in the case of any 
individual (except that the civil penalty may not exceed $1,100 in the 
case of an initial violation of the PPA by an individual moving 
regulated articles not for monetary gain), $275,000 in the case of any 
other person for each violation, and $550,000 for all violations 
adjudicated in a single proceeding; or twice the gross gain or gross 
loss for any violation, forgery, counterfeiting, unauthorized use, 
defacing, or destruction of a certificate, permit, or other document 
provided for in the PPA that results in the person deriving pecuniary 
gain or causing pecuniary loss to another.
    (vi) Civil penalty for any person [except as provided in 7 U.S.C. 
8309(d)] that violates the Animal Health Protection Act (AHPA), or that 
forges, counterfeits, or, without authority from the Secretary, uses, 
alters, defaces, or destroys any certificate, permit, or other document 
provided under the AHPA, codified at 7 U.S.C. 8313(b)(1), has a maximum 
of the greater of: $55,000 in the case of any individual, except that 
the civil penalty may not exceed $1,100 in the case of an initial 
violation of the AHPA by an individual moving regulated articles not 
for monetary gain, $275,000 in the case of any other person for each 
violation, and $550,000 for all violations adjudicated in a single 
proceeding; or twice the gross gain or gross loss for any violation or 
forgery, counterfeiting, or unauthorized use, alteration, defacing or 
destruction of a certificate, permit, or other document provided under 
the AHPA that results in the person's deriving pecuniary gain or 
causing pecuniary loss to another person.
    (vii) Civil penalty for any person that violates certain 
regulations under the Agricultural Bioterrorism Protection Act of 2002 
regarding transfers of listed agents and toxins or possession and use 
of listed agents and toxins, codified at 7 U.S.C. 8401(i)(1), has a 
maximum of $275,000 in the case of an individual and $550,000 in the 
case of any other person.
    (viii) Civil penalty for a violation of the Horse Protection Act, 
codified at 15 U.S.C. 1825(b)(1), has a maximum of $2,200.
    (ix) Civil penalty for failure to obey Horse Protection Act 
disqualification, codified at 15 U.S.C. 1825(c), has a maximum of 
$4,300.
    (x) Civil penalty for knowingly violating, or, if in the business 
as an importer or exporter, violating, with respect to terrestrial 
plants, any provision of the Endangered Species Act of 1973, any permit 
or certificate issued thereunder, or any regulation issued pursuant to 
section 9(a)(1)(A) through (F), (a)(2)(A) through (D), (c), (d) (other 
than regulations relating to recordkeeping or filing reports), (f), or 
(g) of the Endangered Species Act of 1973 (16 U.S.C. 1538(a)(1)(A) 
through (F), (a)(2)(A) through (D), (c), (d), (f), and (g)), as set 
forth at 16 U.S.C. 1540(a), has a maximum of $32,500.
    (xi) Civil penalty for knowingly violating, or, if in the business 
as an importer or exporter, violating, with respect to terrestrial 
plants, any other regulation issued under the Endangered Species Act of 
1973, as set forth at 16 U.S.C. 1540(a), has a maximum of $18,200.
    (xii) Civil penalty for any other violation, with respect to 
terrestrial plants, of the Endangered Species Act of 1973, or any 
regulation, permit, or certificate issued thereunder, as set forth at 
16 U.S.C. 1540(a), has a maximum of $650.
    (xiii) Civil penalty for knowingly and willfully violating 49 
U.S.C. 80502 with respect to the transportation of animals by any rail 
carrier, express carrier, or common carrier (except by air or water), a 
receiver, trustee, or lessee of one of those carriers, or an owner or 
master of a vessel, codified at 49 U.S.C. 80502(d), has a minimum of 
$110 and a maximum of $550.
    (3) Food and Nutrition Service--(i) Civil penalty for hardship fine 
in lieu of disqualification, codified at 7 U.S.C. 2021(a), has a 
maximum of $11,000 per violation.
    (ii) Civil penalty for trafficking in food coupons, codified at 7 
U.S.C. 2021(b)(3)(B), has a maximum of $27,000 for each violation, 
except that the maximum penalty for violations occurring during a 
single investigation is $54,000.
    (iii) Civil penalty for the sale of firearms, ammunition, 
explosives, or controlled substances for coupons, codified at 7 U.S.C. 
2021(b)(3)(C), has a maximum of $27,000 for each violation, except that 
the maximum penalty for violations occurring during a single 
investigation is $54,000.
    (iv) Civil penalty for any entity that submits a bid to supply 
infant formula to carry out the Special Supplemental Nutrition Program 
for Women, Infants and Children and discloses the amount of the bid, 
rebate or discount practices in advance of the bid opening or for any 
entity that makes a statement prior to the opening of the bids for the 
purpose of influencing a bid, codified at 42 U.S.C. 1786(h)(8)(H)(i), 
has a maximum of $132,000,000.
    (v) Civil penalty for a vendor convicted of trafficking in food 
instruments, codified at 42 U.S.C. 1786(o)(1)(A) and 42 U.S.C. 
1786(o)(4)(B), has a maximum of $11,000 for each violation, except that 
the maximum penalty for violations occurring during a single 
investigation is $44,000.
    (vi) Civil penalty for a vendor convicted of selling firearms, 
ammunition, explosives, or controlled substances in exchange for food 
instruments, codified at 42 U.S.C. 1786(o)(1)(B) and 42 U.S.C. 
1786(o)(4)(B), has a maximum of $11,000 for each violation, except that

[[Page 29578]]

the maximum penalty for violations occurring during a single 
investigation is $44,000.
    (4) Food Safety and Inspection Service--(i) Civil penalty for 
certain violations under the Egg Products Inspection Act, codified at 
21 U.S.C. 1041(c)(1)(A), has a maximum of $6,500 for each violation.
    (ii) Civil penalty for failure to timely file certain reports, 
codified at 21 U.S.C. 467d, has a maximum of $110 per day for each day 
the report is not filed.
    (iii) Civil penalty for failure to timely file certain reports, 
codified at 21 U.S.C. 677, has a maximum of $110 per day for each day 
the report is not filed.
    (iv) Civil penalty for failure to timely file certain reports, 
codified at 21 U.S.C. 1051, has a maximum of $110 per day for each day 
the report is not filed.
    (5) Forest Service--(i) Civil penalty for a willful disregard of 
the prohibition against the export of unprocessed timber originating 
from Federal lands, codified at 16 U.S.C. 620d(c)(1)(A), has a maximum 
of $650,000 per violation or three times the gross value of the 
unprocessed timber, whichever is greater.
    (ii) Civil penalty for a violation in disregard of the Forest 
Resources Conservation and Shortage Relief Act of 1990 or the 
regulations that implement such Act regardless of whether such 
violation caused the export of unprocessed timber originating from 
Federal lands, codified at 16 U.S.C. 620d(c)(2)(A)(i), has a maximum of 
$97,500 per violation.
    (iii) Civil penalty for a person that should have known that an 
action was a violation of the Forest Resources Conservation and 
Shortage Relief Act of 1990 or the regulations that implement such Act 
regardless of whether such violation caused the export of unprocessed 
timber originating from Federal lands, codified at 16 U.S.C. 
620d(c)(2)(A)(ii), has a maximum of $65,000 per violation.
    (iv) Civil penalty for a willful violation of the Forest Resources 
Conservation and Shortage Relief Act of 1990 or the regulations that 
implement such Act regardless of whether such violation caused the 
export of unprocessed timber originating from Federal lands, codified 
at 16 U.S.C. 620d(c)(2)(A)(iii), has a maximum of $650,000.
    (v) Civil penalty for a violation involving protections of caves, 
codified at 16 U.S.C. 4307(a)(2), has a maximum of $11,000.
    (6) Grain Inspection, Packers and Stockyards Administration--(i) 
Civil penalty for a packer or swine contractor violation, codified at 7 
U.S.C. 193(b), has a maximum of $11,000.
    (ii) Civil penalty for a livestock market agency or dealer failure 
to register, codified at 7 U.S.C. 203, has a maximum of $650 and not 
more than $37.50 for each day the violation continues.
    (iii) Civil penalty for operating without filing, or in violation 
of, a stockyard rate schedule, or of a regulation or order of the 
Secretary made thereunder, codified at 7 U.S.C. 207(g), has a maximum 
of $650 and not more than $37.50 for each day the violation continues.
    (iv) Civil penalty for a stockyard owner, livestock market agency 
and dealer violation, codified at 7 U.S.C. 213(b), has a maximum of 
$11,000.
    (v) Civil penalty for a stockyard owner, livestock market agency 
and dealer compliance order violation, codified at 7 U.S.C. 215(a), has 
a maximum of $650.
    (vi) Civil penalty for a failure to file required reports, codified 
at 15 U.S.C. 50, has a maximum of $110.
    (vii) Civil penalty for live poultry dealer violations, codified at 
7 U.S.C. 228b-2(b), has a maximum of $27,000.
    (viii) Civil penalty for a violation, codified at 7 U.S.C. 86(c), 
has a maximum of $97,500.
    (7) Federal Crop Insurance Corporation--(i) Civil penalty for any 
person who willfully and intentionally provides any false or inaccurate 
information to the Federal Crop Insurance Corporation or to an approved 
insurance provider with respect to an insurance plan or policy that is 
offered under the authority of the Federal Crop Insurance Act, codified 
at 7 U.S.C. 1506(n)(1)(A), has a maximum of $11,000.
    (ii) Civil penalty for any person who willfully and intentionally 
provides any false or inaccurate information to the Federal Crop 
Insurance Corporation or to an approved insurance provider with respect 
to an insurance plan or policy that is offered under the authority of 
the Federal Crop Insurance Act, or who fails to comply with a 
requirement of the Federal Crop Insurance Corporation, codified at 7 
U.S.C. 1515(h)(3)(A), has a maximum of the greater of: The amount of 
pecuniary gain obtained as a result of the false or inaccurate 
information or the noncompliance; or $11,000.
    (8) Rural Housing Service--(i) Civil penalty for a violation of 
section 536 of Title V of the Housing Act of 1949, codified at 42 
U.S.C. 1490p(e)(2), has a maximum of $110,000 in the case of an 
individual, and a maximum of $1,100,000 in the case of an applicant 
other than an individual.
    (ii) Civil penalty for equity skimming under section 543(a) of the 
Housing Act of 1949, codified at 42 U.S.C. 1490s(a)(2), has a maximum 
of $27,500.
    (iii) Civil penalty under section 543(b) of the Housing Act of 1949 
for a violation of regulations or agreements made in accordance with 
Title V of the Housing Act of 1949, by submitting false information, 
submitting false certifications, failing to timely submit information, 
failing to maintain real property security in good repair and 
condition, failing to provide acceptable management for a project, or 
failing to comply with applicable civil rights statutes and 
regulations, codified at 42 U.S.C. 1490s(b)(3)(A), has a maximum of the 
greater of: Twice the damages the Department, guaranteed lender, or 
project that is secured for a loan under Title V, suffered or would 
have suffered as a result of the violation; or $55,000 per violation.

PART 46--REGULATIONS (OTHER THAN RULES OF PRACTICE) UNDER THE 
PERISHABLE AGRICULTURAL COMMODITIES ACT, 1930.

0
3. The authority citation for part 46 continues to read as follows:

    Authority: Sec. 15, 46 Stat. 537; 7 U.S.C. 499o.

0
4. Revise Sec.  46.45(c)(1)(iii) to read as follows:


Sec.  46.45  Procedure in administering section 2(5) of the Act.

* * * * *
    (c) * * *
    (iii) (A) The schedule for informal disposition is as follows:

------------------------------------------------------------------------
                   Violation                                 Disposition
------------------------------------------------------------------------
1st...........................................  ...........        (\1\)
2d............................................  ...........        (\1\)
                                                      (\2\)        (\3\)
3d............................................         $200         $250
4th...........................................          350          500
5th...........................................          500        1,000
6th...........................................        1,000        2,200
7th...........................................        2,200       2,200
------------------------------------------------------------------------
\1\ Warning letter.
\2\ If serious violation.
\3\ Very serious violation.

    (B) Informal disposition of misrepresentation violations is not 
limited to seven occurrences and will be considered for further 
violations.
* * * * *

PART 110--RECORDKEEPING ON RESTRICTED USE PESTICIDES BY CERTIFIED 
APPLICATORS; SURVEYS AND REPORTS.

0
5. The authority citation for part 110 continues to read as follows:


[[Page 29579]]


    Authority: 7 U.S.C. 136a(d)(1)(C), 136i-1, and 450; 7 CFR 2.17, 
2.50.

0
6. Revise Sec.  110.7 to read as follows:


Sec.  110.7  Penalties.

    Any certified applicator who violates 7 U.S.C. 136i-1(a), (b), or 
(c) or this part shall be subject to a civil penalty of not more than 
the amount specified in section Sec.  3.91(b)(1)(i)(A) of this title in 
the case of the first offense, and in the case of subsequent offenses, 
be subject to a civil penalty of not less than the amount specified in 
Sec.  3.91(b)(1)(i)(B) of this title for each violation, except that 
the civil penalty shall be less than the amount specified in Sec.  
3.91(b)(1)(i)(B) of this title if the Administrator determines that the 
certified applicator made a good faith effort to comply with 7 U.S.C. 
136i-1(a), (b), and (c) and this part.

PART 205--NATIONAL ORGANIC PROGRAM

0
7. The authority citation for part 205 continues to read as follows:

    Authority: 7 U.S.C. 6501-6522.


Sec.  205.100  [Amended]

0
8. Amend Sec.  205.100(c)(1) by removing ``$10,000'' and adding in its 
place ``the amount specified in Sec.  3.91(b)(1)(xxxvii) of this 
title''.

PART 246--SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS 
AND CHILDREN

0
9. The authority citation for part 246 continues to read as follows:

    Authority: 42 U.S.C. 1786.


Sec.  246.12  [Amended]

0
10. Amend Sec.  246.12(l)(1)(x)(C) as follows:
0
a. Remove in the third sentence ``shall be $10,000.'' and add in its 
place ``shall be $10,000, except for those violations listed in 
paragraph (l)(1)(i) of this section, where the civil money penalty 
shall be the maximum amount per violation specified in Sec.  
3.91(b)(3)(v) of this title for trafficking violations, or Sec.  
3.91(b)(3)(vi) of this title for selling firearms, ammunition, 
explosives, or controlled substances in exchange for food 
instruments.''; and
0
b. Remove in the fifth sentence ``may not exceed $40,000.'' and add in 
its place ``may not exceed $40,000, except for those violations listed 
in paragraph (l)(1)(i) of this section, where the total amount of civil 
money penalties may not exceed the maximum amount for violations 
occurring during a single investigation specified in Sec.  
3.91(b)(3)(v) of this title for trafficking violations, or Sec.  
3.91(b)(3)(vi) of this title for selling firearms, ammunition, 
explosives, or controlled substances in exchange for food 
instruments.''.

PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD 
CONCERNS AND INSURED FINANCIAL INSTITUTIONS

0
11. The authority citation for part 278 continues to read as follows:

    Authority: 7 U.S.C. 2011-2036.


Sec.  278.6  [Amended]

0
12. Amend Sec.  278.6(j) as follows:
0
a. Remove ``$20,000'' and add in its place ``the amount specified in 
Sec.  3.91(b)(3)(ii) of this title;'' and
0
b. Remove ``$40,000'' and add in its place ``the amount specified in 
Sec.  3.91(b)(3)(ii) of this title''.

PART 1150--DAIRY PROMOTION PROGRAM

0
13. The authority citation for part 1150 continues to read as follows:

    Authority: 7 U.S.C. 4501-4513.


Sec.  1150.156  [Amended]

0
14. Amend Sec.  1150.156(b) by removing ``$1,000'' and adding in its 
place ``the amount specified in Sec.  3.91(b)(1)(xx) of this title''.

PART 1160--FLUID MILK PROMOTION PROGRAM

0
15. The authority citation for part 1160 continues to read as follows:

    Authority: 7 U.S.C. 6401-6417.


Sec.  1160.214  [Amended]

0
16. Amend Sec.  1160.214(b) as follows:
0
a. Remove in the first sentence ``not less than $500 nor more than 
$5,000 for each such violation'' and add in its place ``not less than 
nor more than the minimum and maximum amounts specified in Sec.  
3.91(b)(1)(xxxv) of this title for each such violation''; and
0
b. Remove in the second sentence ``not less than $10,000 nor more than 
$100,000 for each such violation'' and add in its place ``not less than 
nor more than the minimum and maximum amounts specified in Sec.  
3.91(b)(1)(xxxv) of this title for each such violation''.

    Done at Washington, DC, this 11th day of May, 2005.
Mike Johanns,
Secretary, U.S. Department of Agriculture.

(For amendments to 7 CFR Part 3)

Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.

(For amendments to 7 CFR Parts 46, 110, 205, 1150, and 1160)

Roberto Salazar,
Administrator, Food and Nutrition Service.

(For amendments to 7 CFR Parts 246 and 278)
[FR Doc. 05-10153 Filed 5-23-05; 8:45 am]
BILLING CODE 3410-01-P