Inflation Adjustments for Civil Monetary Penalties, 34633-34636 [05-11790]
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Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations
Public Participation
This action is being finalized without
prior notice or public comment under
authority of 5 U.S.C. 553(b)(3)(A) and
(B). This rule implements through
amendments to current program
regulations a nondiscretionary provision
mandated by the Child Nutrition and
WIC Reauthorization Act of 2004
(Public Law 108–265). Thus, the
Department has determined in
accordance with 5 U.S.C. 553(b) that
Notice of Proposed Rulemaking and
Opportunity for Public Comments is
unnecessary and contrary to the public
interest and, in accordance with 5
U.S.C. 553(d), finds that good cause
exists for making this action effective.
List of Subjects in 7 CFR Part 226
Accounting, Aged, Day care, Food
assistance programs, Grant programs,
Grant programs—health, Indians,
Individuals with disabilities, Infants
and children, Intergovernmental
relations, Loan programs, Reporting and
recordkeeping requirements, Surplus
agricultural commodities.
suspend or terminate the permanent
agreement in accordance with
§ 226.16(l). * * *
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Dated: May 25, 2005.
Roberto Salazar,
Administrator.
[FR Doc. 05–11806 Filed 6–14–05; 8:45 am]
BILLING CODE 3410–30–P
FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 2005 –16]
Inflation Adjustments for Civil
Monetary Penalties
Federal Election Commission.
Final rules.
AGENCY:
ACTION:
SUMMARY: The Federal Election
Commission (‘‘Commission’’) is
adopting final rules to apply inflation
adjustments to certain civil monetary
penalties under the Federal Election
Campaign Act of 1971, as amended
(‘‘FECA’’), the Presidential Election
I Accordingly, 7 CFR part 226 is
Campaign Fund Act and the
amended as follows:
Presidential Primary Matching Payment
Account Act. The civil penalties being
PART 226—CHILD AND ADULT CARE
adjusted are for (1) certain violations of
FOOD PROGRAM
these statutes that are not knowing and
I 1. The authority citation for part 226
willful, involving contributions and
continues to read as follows:
expenditures; (2) knowing and willful
violations of the prohibition against the
Authority: Secs. 9, 11, 14, 16, and 17,
Richard B. Russell National School Lunch
making of a contribution in the name of
Act, as amended (42 U.S.C. 1758, 1759a,
another; (3) knowing and willful
1762a, 1765, and 1766).
violations of the confidentiality
provisions of FECA; and (4) failure to
I 2. In § 226.6, amend paragraph (p) by
file timely 48-hour notices. No other
adding the words ‘‘written permanent’’
before the word ‘‘agreement’’ in the first civil penalties are being adjusted. These
adjustments are required by the Federal
sentence and by adding a new sentence
after the first sentence, to read as follows: Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Debt
§ 226.6 State agency administrative
Collection Improvement Act of 1996.
responsibilities.
Further information is provided in the
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supplementary information that follows.
(p) * * * Nothing in the preceding
DATES: These penalty adjustments are
sentence shall be construed to limit the
effective on June 15, 2005.
ability of the sponsoring organization to FOR FURTHER INFORMATION CONTACT: Ms.
suspend or terminate the permanent
Mai T. Dinh, Assistant General Counsel,
agreement in accordance with
or Mr. Albert J. Kiss, Attorney, 999 E
§ 226.16(l). * * *
Street, NW., Washington, DC 20463,
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(202) 694–1650 or (800) 424–9530.
I 3. In § 226.18, amend paragraph (b)
SUPPLEMENTARY INFORMATION: The
introductory text by adding the word
Federal Civil Penalties Inflation
‘‘permanent’’ before the word
Adjustment Act of 1990,1 as amended
‘‘agreement’’ in the second sentence and by the Debt Collection Improvement Act
by adding a new sentence after the
of 1996,2 (‘‘Inflation Adjustment Act’’)
second sentence, to read as follows:
requires Federal agencies to adopt
regulations at least once every four years
§ 226.18 Day care home provisions.
adjusting for inflation the civil monetary
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(b) * * * Nothing in the preceding
1 28 U.S.C. 2461 note (2005).
sentence shall be construed to limit the
2 Public Law 104–134, 110 Stat. 1321–358, 1321–
ability of the sponsoring organization to 373, section 31001(s) (1996).
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34633
penalties within the jurisdiction of the
agency.
A civil monetary penalty (‘‘civil
penalty’’) is defined in the Inflation
Adjustment Act as any penalty, fine, or
other sanction that is for a specific
amount, or has a maximum amount, as
provided by Federal law, and is
assessed or enforced by an agency in an
administrative proceeding or by a
Federal court pursuant to Federal law.3
This definition covers the civil penalties
provided for in the Federal Election
Campaign Act of 1971 (‘‘FECA’’), as
amended, 2 U.S.C. 431 et seq., for
respondents who violate FECA, or
violate the Presidential Election
Campaign Fund Act, 26 U.S.C. 9001 et
seq., or the Presidential Primary
Matching Payment Account Act, 26
U.S.C. 9031 et seq. (collectively
‘‘chapters 95 and 96 of Title 26’’). Under
the Inflation Adjustment Act, a civil
penalty is adjusted by a cost-of-living
adjustment (‘‘COLA’’), determined by
multiplying the amount of the civil
penalty by the percentage (if any) by
which the U.S. Department of Labor’s
Consumer Price Index for all urban
consumers (‘‘CPI’’) for the month of June
for the year preceding the year of
adjustment exceeds the CPI for the
month of June for the year in which the
amount of the civil penalty was last set
or adjusted.4 The amount of the
inflation adjustment is subject to
rounding rules.5
In March 1997, the Commission
promulgated new rules to adjust FECA’s
then-current civil penalties pursuant to
the Inflation Adjustment Act. Final
Rules and Explanation and Justification
for Adjustments to Civil Monetary
Penalty Amounts, 62 FR 11316 (Mar. 12,
1997) (‘‘1997 Civil Penalty Adjustment
E&J’’). In January 2002, the Commission
again examined its civil penalty rules
under the Inflation Adjustment Act, but
did not adjust any civil penalty rules
because the operation of the Inflation
Adjustment Act’s rounding rules did not
result in increases in any of the civil
penalties. Agenda Doc. 02–06 (Jan. 17,
2002). As explained in more detail
below, the Commission has determined
that certain civil penalties in 11 CFR
111.24 and 111.44 must be increased
again in 2005 due to the increases in the
CPI and the application of the Inflation
Adjustment Act’s rounding rules to
these civil penalties. However, other
civil penalties in 11 CFR 111.24 and
111.43 are not being changed because
the rounding rules negate any increases
3 28
U.S.C. 2461 note (3)(2).
U.S.C. 2461 note (3)(3) and (5)(b).
5 28 U.S.C. 2461 note (5)(a).
4 28
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Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations
in the civil penalties that would have
resulted from the increases in the CPI.
The Commission is required by
statute to adjust the civil penalties
under its jurisdiction by a COLA
formula. This application of the COLA
does not involve Commission discretion
or any policy judgments. Thus, the
Commission finds that the ‘‘good cause’’
exception to the notice and comment
requirement in section 553 of the
Administrative Procedure Act applies to
these rules because notice and comment
are unnecessary. 5 U.S.C. 553(b)(B) and
(d)(3). For the same reasons, these rules
do not need to be submitted to the
Speaker of the House of Representatives
or the President of the Senate under the
Congressional Review Act, 5 U.S.C. 801
et seq., and these rules are effective
upon publication. 5 U.S.C. 808(2).
Accordingly, these amendments are
effective on June 15, 2005. The new
civil penalty amounts are applicable
only to violations that occur after this
effective date.
Explanation and Justification
11 CFR 111.24—Civil Penalties (2 U.S.C.
437g(a)(5), (6), (12), 28 U.S.C. 2461 nt.)
FECA provides for civil penalties for
any person who violates any portion of
FECA or chapters 95 and 96 of Title 26.
FECA’s civil penalties, found at 2 U.S.C.
437g(a)(5), (6), and (12), are organized
into two tiers; one tier of civil penalties
for violations of FECA or chapters 95
and 96 of Title 26, and a higher tier of
civil penalties for ‘‘knowing and
willful’’ violations of FECA or chapters
95 and 96 of Title 26. Commission
regulations in section 111.24 set forth
each civil penalty established by section
437g(a)(5), (6) and (12), as adjusted
pursuant to the Inflation Adjustment
Act.
1. 11 CFR 111.24(a)(1) Violations That
Are Not Knowing and Willful
Under the core statutory provisions,
the Commission may negotiate a civil
penalty, or may institute an action for a
civil penalty, or a court may impose a
civil penalty, for a violation of FECA or
of chapters 95 or 96 of Title 26 that does
not exceed the greater of $5,000 or an
amount equal to any contribution or
expenditure involved in the violation. 2
U.S.C. 437g(a)(5)(A), (6)(A) and (6)(B).
The $5,000 civil penalty amount was
increased to $5,500 when section
111.24(a) was promulgated in 1997.6
6 The Inflation Adjustment Act provides that the
first adjustment to a civil penalty may not exceed
ten percent of the penalty. Thus, the 1997 increase
to the $5,000 civil penalty was limited to ten
percent of $5,000, or $500, and this penalty was
increased to $5,500.
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1997 Civil Penalty Adjustment E&J at
11316.
At this time, to determine the
appropriate COLA to apply to the
$5,500 amount, the Commission uses
the CPI for June of 2004, which is 189.7,
and the CPI for June of 1997, which is
160.3.7 The COLA is determined by
dividing the CPI for June of 2004 (189.7)
by the CPI for June of 1997 (160.3),
which equals 1.183 (189.7/160.3 =
1.183). To obtain the inflation-adjusted
civil penalty amount, the $5,500 amount
is multiplied by the COLA of 1.183,
which equals $6,507 ($5,500 × 1.183 =
$6,507). Thus, the increase is $1,007
($6,507¥$5,500 = $1,007). The amount
of the increase is subject to the Inflation
Adjustment Act rounding rules. Under
the rounding rules, where the existing
civil penalty is greater than $1,000 but
less than or equal to $10,000, the
increase is rounded to the nearest
multiple of $1,000. Therefore, the
amount of the civil penalty increase is
rounded to $1,000. Consequently,
section 111.24(a)(1) is amended by
adding $1,000 to the $5,500 civil
penalty to obtain the new inflationadjusted civil penalty of $6,500.
2. 11 CFR 111.24(a)(2)(i)—Knowing and
Willful Violations
The Commission may seek, or a court
may impose, a civil penalty for a
‘‘knowing and willful’’ violation of
FECA or of chapters 95 or 96 of Title 26
that does not exceed the greater of
$10,000 or an amount equal to 200% of
any contribution or expenditure
involved in the violation. 2 U.S.C.
437g(a)(5)(B) and (6)(C). The $10,000
civil penalty amount was increased to
$11,000 when section 111.24(a) was
promulgated in 1997.8 1997 Civil
Penalty Adjustment E&J at 11316.
At this time, to obtain the inflationadjusted civil penalty, $11,000 is
multiplied by the same COLA
calculated above, i.e., 1.183. The
resulting amount equals $13,013
($11,000 × 1.183 = $13,103). Thus, the
increase is $2,013 ($13,013 ¥ $11,000 =
$2,013). Under the rounding rules,
where the existing civil penalty is
greater than $10,000 but less than or
equal to $100,000, the increase is
rounded to the nearest multiple of
$5,000. Therefore, the amount of the
civil penalty increase is rounded to
7 The base period for the CPI figures is 1982 to
1984. Thus, the price of a basket of goods and
services that would have cost $100 in 1982–1984,
rose to $160.30 in June 1997, and to $189.70 in June
2004.
8 As discussed above, the first adjustment to a
civil penalty may not exceed ten percent of the
penalty. Thus, the 1997 increase to the $10,000 civil
penalty was limited to ten percent of $10,000, or
$1,000, and this penalty was increased to $11,000.
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zero, and the $11,000 civil penalty is
not changed. Because no changes are
being made at this time, the next
adjustment will reflect inflationary
changes since 1997 rather than 2005.
3. 11 CFR 111.24(a)(2)(ii)—Knowing and
Willful Contributions Made in the Name
of Another
The Bipartisan Campaign Reform Act
of 2002, Public Law 107–155, 116 Stat.
81,108, section 315 (2002) (‘‘BCRA’’),
increased minimum and maximum civil
penalties for knowing and willful
violations of the prohibition on
contributions made in the name of
another in 2 U.S.C. 441f. As revised by
BCRA, the civil penalty for such a
violation is not less than 300 percent of
the amount involved in the violation,
and is not more than the greater of
$50,000 or 1,000 percent of the amount
involved in the violation. 2 U.S.C.
437g(a)(5)(B) and (6)(C); 11 CFR
111.24(a)(2)(ii). To determine the
appropriate COLA to apply to the
$50,000 amount, the Commission uses
the CPI for June of 2004, which is 189.7,
and the CPI for June of 2002, which is
179.9. The COLA is determined by
dividing the CPI for June of 2004 (189.7)
by the CPI for June of 2002 (179.9),
which equals 1.054 (189.7/179.9 =
1.054). To obtain the inflation-adjusted
civil penalty, $50,000 is multiplied by
the COLA of 1.054, which equals
$52,700 ($50,000 × 1.054 = $52,700).
Thus, the increase is $2,700
($52,700¥$50,000 = $2,700). Under the
rounding rules described above, $2,700
is rounded to $5,000. Consequently,
section 111.24(a)(2)(ii) is amended by
adding $5,000 to the $50,000 civil
penalty to obtain the new inflationadjusted civil penalty of $55,000.
4. 11 CFR 111.24(b)—Violations of
Confidentiality
Any Commission member or
employee, or any other person, who
makes public any notification or
investigation under 2 U.S.C. 437g
without receiving the written consent of
the person receiving such notification,
or the person with respect to whom
such investigation is made, shall be
fined not more than $2,000, except that
any such member, employee, or other
person who knowingly and willfully
violates this provision shall be fined not
more than $5,000. 2 U.S.C.
437g(a)(12)(B). In 1997, the Commission
promulgated 11 CFR 111.24(b) to
increase the $2,000 civil penalty to
$2,200, and to increase the $5,000 civil
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penalty to $5,500.9 1997 Civil Penalty
Adjustment E&J at 11317.
For these civil penalties, the
appropriate COLA is 1.183. See COLA
calculation for civil penalties under 11
CFR 111.24(a)(1), above. To obtain the
inflation-adjusted civil penalty for the
$2,200 amount, $2,200 is multiplied by
the COLA of 1.183, which equals $2,603
($2,200 × 1.183 = $2,603). Thus, the
increase is $403 ($2,603¥$2,200 =
$403). Under the rounding rules
described above, $403 is rounded to
zero. Thus, the $2,200 civil penalty
remains unchanged. Because no changes
are being made at this time, the next
adjustment will reflect inflationary
changes since 1997 rather than 2005.
To obtain the inflation-adjusted civil
penalty for the $5,500 amount, $5,500 is
multiplied by the COLA of 1.183,
equaling $6,507 ($5,500 × 1.183 =
$6,507). Thus, the increase is $1,007
($6,507¥$5,500 = $1,007). Under the
rounding rules, the $1,007 amount is
rounded to $1,000. Consequently,
section 111.24(b) is amended by adding
$1,000 to the $5,500 amount to obtain
the new inflation-adjusted civil penalty
of $6,500 for knowing and willful
violations of confidentiality.
formulas in the schedules of penalties in
11 CFR 111.43 are not changed.
However, the Commission is
correcting a typographical error in the
schedule at section 111.43(a)(2)(iii).
Under the column entitled ‘‘[I]f the level
of activity in the report was,’’ the level
of activity of $450,000–$549,999.99 is
missing the first instance of the number
‘‘4.’’ Thus, this level of activity is
erroneously listed as ‘‘$50,000–
549,999.99.’’ The Commission is
correcting this to read ‘‘$450,000—
$549,999.99.’’
11 CFR 111.44—Schedule of Penalties
for 48-Hour Notices
Principal campaign committees are
required to report, within 48 hours of
receipt, any contributions of $1,000 or
more that are received after the 20th
day, but more than 48 hours before any
election. 2 U.S.C. 434(a)(6). FECA
permits the Commission to assess civil
penalties for violations of this reporting
requirement. 2 U.S.C. 437g(a)(4)(C). In
2000, the Commission adopted rules
setting forth the civil penalties for
failure to file timely notices of these
last-minute contributions. Final Rules
11 CFR 111.43—Schedules of Penalties
and Explanation and Justification for
FECA permits the Commission to
Administrative Fines, 65 FR 31787,
assess civil penalties for violations of
31793 (May 19, 2000). The amount of
the reporting requirements of 2 U.S.C.
the civil penalty for each notice not
434(a) in accordance with schedules of
filed timely is $100 plus ten percent of
penalties established and published by
the amount of the contribution(s) not
the Commission. 2 U.S.C. 437g(a)(4)(C).
timely reported, and is increased for
The schedules of penalties for political
prior violations. 11 CFR 111.44. To
committees that file their reports late or determine the appropriate COLA to
that fail to file reports are set out in 11
apply to the $100 amount, the
CFR 111.43, and were last amended in
Commission uses the CPI for June of
2003. Final Rules and Explanation and
2004, which is 189.7, and the CPI for
Justification for Administrative Fines, 68
June of 2000, which is 172.4. The COLA
FR 12572, 12573–12575 (Mar. 17, 2003).
is obtained by dividing the CPI for June
To determine the appropriate COLA to
of 2004 (189.7) by the CPI for June of
apply to the schedules of penalties for
2000 (172.4), which equals 1.100 (189.7/
violations of these reporting
172.4 = 1.100). To obtain the inflationrequirements, the Commission uses the
adjusted civil penalty amount, $100 is
CPI for June of 2004, which is 189.7,
multiplied by the COLA of 1.100, which
and the CPI for June of 2003, which is
equals $110 ($100 × 1.100 = $110).
183.7. Although applying the COLA of
Thus, the increase is $10 ($110¥$100 =
1.033 (189.7/183.7 = 1.033) to all
$10). The Inflation Adjustment Act
possible civil penalties under the
schedules of penalties would result in a rounding rules do not change the
amount of this increase.10
slight increase in the civil penalty
Consequently, section 111.44 is
amounts, the Inflation Adjustment Act
rounding rules would round down the
amended by adding $10 to the $100
increased civil penalty amounts to the
civil penalty to obtain the new inflationcurrent amounts. Consequently, the
adjusted civil penalty of $110.
9 As discussed above, the first adjustment to a
civil penalty may not exceed ten percent of the
penalty. Thus, the 1997 increase to the $2,000 civil
penalty was limited to ten percent of $2,000, or
$200, and this penalty was increased to $2,200.
Similarly, the 1997 increase to the $5,000 civil
penalty was limited to ten percent of $5,000, or
$500, and this penalty was increased to $5,500.
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10 Under the rounding rules, where the existing
penalty is less than or equal to $100, the increase
is rounded to the nearest multiple of $10. Therefore,
the amount of the penalty increase is rounded to
$10, the same amount as it was prior to application
of the rounding rules.
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34635
Certification of No Effect Pursuant to 5
U.S.C. 605(b) (Regulatory Flexibility
Act)
The provisions of the Regulatory
Flexibility Act are not applicable to this
final rule because the Commission was
not required to publish a notice of
proposed rulemaking or to seek public
comment under 5 U.S.C. 553 or any
other laws. 5 U.S.C. 603(a) and 604(a).
Therefore, no regulatory flexibility
analysis is required.
List of Subjects in 11 CFR Part 111
Administrative practice and
procedure, Elections, Law enforcement,
and Penalties.
I For the reasons set out in the preamble,
the Federal Election Commission
amends subchapter A of chapter I of title
11 of the Code of Federal Regulations as
follows:
PART 111—COMPLIANCE
PROCEDURE (2 U.S.C. 437g, 437d(a))
1. The authority citation for part 111
continues to read as follows:
I
Authority: 2 U.S.C. 437g, 437d(a),
438(a)(8); 28 U.S.C. 2461 nt.
2. In § 111.24, paragraphs (a)(1),
(a)(2)(ii) and (b) are revised to read as
follows:
I
§ 111.24 Civil Penalties (2 U.S.C.
437g(a)(5), (6), (12), 28 U.S.C. 2461 nt.).
(a) * * *
(1) Except as provided in paragraph
(a)(2) of this section, in the case of a
violation of the Act or chapters 95 or 96
of title 26 (26 U.S.C.), the civil penalty
shall not exceed the greater of $6,500 or
an amount equal to any contribution or
expenditure involved in the violation.
(2) * * *
(ii) Notwithstanding paragraph
(a)(2)(i) of this section, in the case of a
knowing and willful violation of 2
U.S.C. 441f, the civil penalty shall not
be less than 300% of the amount of any
contribution involved in the violation
and shall not exceed the greater of
$55,000 or 1,000% of the amount of any
contribution involved in the violation.
(b) Any Commission member or
employee, or any other person, who in
violation of 2 U.S.C. 437g(a)(12)(A)
makes public any notification or
investigation under 2 U.S.C. 437g
without receiving the written consent of
the person receiving such notification,
or the person with respect to whom
such investigation is made, shall be
fined not more than $2,200. Any such
member, employee, or other person who
knowingly and willfully violates this
provision shall be fined not more than
$6,500.
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§ 111.43
Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations
[Amended]
3. In § 111.43, paragraph (a)(2)(iii) is
amended by removing
‘‘$50,000¥$549,999.99’’ and adding in
its place ‘‘$450,000–549,999.99.’’
I 4. In § 111.44, paragraph (a)(1) is
revised to read as follows:
I
§ 111.44 What is the schedule of penalties
for 48-hour notices that are not filed or are
filed late?
(a) * * *
(1) Civil money penalty = $110 + (.10
× amount of the contribution(s) not
timely reported).
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Dated: June 9, 2005.
Scott E. Thomas,
Chairman, Federal Election Commission.
[FR Doc. 05–11790 Filed 6–14–05; 8:45 am]
BILLING CODE 6715–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2005–21433; Directorate
Identifier 2005–NM–079–AD; Amendment
39–14123; AD 2005–12–07]
RIN 2120–AA64
Airworthiness Directives; Airbus Model
A319, A320, and A321 Series Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule; request for
comments.
AGENCY:
SUMMARY: The FAA is adopting a new
airworthiness directive (AD) for certain
Airbus Model A319, A320, and A321
series airplanes. This AD requires a onetime ultrasonic inspection for certain
airplanes, and repetitive detailed
inspections for all airplanes, for
cracking in the forward lug of the
support rib 5 fitting of both main
landing gear (MLG), and repair if
necessary. This AD also provides for
optional terminating actions. This AD is
prompted by a report of a crack found
in the forward lug of the right-hand
MLG rib 5 fitting during greasing of both
MLG pintle bearings. We are issuing this
AD to find and fix cracking in the
forward lug of the MLG, which could
result in failure of the lug and
consequent collapse of the MLG during
landing.
DATES: Effective June 30, 2005.
The incorporation by reference of a
certain publication listed in the AD is
approved by the Director of the Federal
Register as of June 30, 2005.
VerDate jul<14>2003
16:54 Jun 14, 2005
Jkt 205001
We must receive comments on this
AD by August 15, 2005.
ADDRESSES: Use one of the following
addresses to submit comments on this
AD.
• DOT Docket Web site: Go to
https://dms.dot.gov and follow the
instructions for sending your comments
electronically.
• Government-wide rulemaking Web
site: Go to https://www.regulations.gov
and follow the instructions for sending
your comments electronically.
• Mail: Docket Management Facility;
U.S. Department of Transportation, 400
Seventh Street SW., Nassif Building,
room PL–401, Washington, DC 20590.
• Fax: (202) 493–2251.
• Hand Delivery: Room PL–401 on
the plaza level of the Nassif Building,
400 Seventh Street SW., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
For service information identified in
this AD, contact Airbus, 1 Rond Point
Maurice Bellonte, 31707 Blagnac Cedex,
France.
You can examine the contents of this
AD docket on the Internet at https://
dms.dot.gov, or in person at the Docket
Management Facility, U.S. Department
of Transportation, 400 Seventh Street
SW., room PL–401, on the plaza level of
the Nassif Building, Washington, DC.
This docket number is FAA–2005–
21433; the directorate identifier for this
docket is 2005-NM–079–AD.
Examining the Docket
You can examine the AD docket on
the Internet at https://dms.dot.gov, or in
person at the Docket Management
Facility office between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. The Docket
Management Facility office (telephone
(800) 647–5227) is located on the plaza
level of the Nassif Building at the DOT
street address stated in the ADDRESSES
section. Comments will be available in
the AD docket shortly after the Docket
Management System (DMS) receives
them.
Tim
Dulin, Aerospace Engineer,
International Branch, ANM–116, FAA,
Transport Airplane Directorate, 1601
Lind Avenue, SW., Renton, Washington
98055–4056; telephone (425) 227–2141;
fax (425) 227–1149.
SUPPLEMENTARY INFORMATION: The
´ ´
Direction Generale de l’Aviation Civile
(DGAC), which is the airworthiness
authority for France, notified the FAA
that an unsafe condition may exist on
certain Airbus Model A319, A320, and
A321 series airplanes. The DGAC
advises that, during greasing of the main
FOR FURTHER INFORMATION CONTACT:
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
landing gear (MLG) pintle bearings on a
Model A320 series airplane, a crack was
found in the forward lug of the righthand MLG rib 5 fitting. The airplane
had accumulated 12,634 total flight
cycles and 19,710 total flight hours at
the time of the findings. Laboratory
analysis of the damaged lug revealed
that it was fitted with a bushing that had
insufficient cadmium plating. Further
investigation revealed that certain
Airbus Model A319 and A320 series
airplanes may have been equipped with
bushings from a batch found to have
insufficient cadmium plating. The
forward lug of the left- and right-hand
MLG rib 5 fitting of Airbus Model A319,
A320, and A321 series airplanes that do
not have Airbus Modification 32025
incorporated could also be susceptible
to cracking. These conditions, if not
corrected, could result in failure of the
lug and consequent collapse of the MLG
during landing.
Relevant Service Information
Airbus has issued Service Bulletin
A320–57A1136, dated January 26, 2005
(for Model A319 and A320 series
airplanes). The service bulletin
describes procedures for a one-time
ultrasonic inspection for cracking in the
forward lug of the support rib 5 fitting
of both MLG. The service bulletin
recommends contacting the
manufacturer for repair instructions if
any cracking is found.
The DGAC mandated Service Bulletin
A320–57A1136, and a detailed visual
inspection as defined in the visual
procedures of Airbus A318/A319/A320/
A321 Nondestructive Testing Manual
(NTM), Chapter 51–90–00, revision
dated February 2003; and issued French
airworthiness directive F–2005–035,
dated March 2, 2005, to ensure the
continued airworthiness of these
airplanes in France.
Airbus has also issued Service
Bulletin A320–57–1118, dated
September 5, 2002, and Revision 01,
dated August 28, 2003 (for Model A319,
A320, and A321 series airplanes). The
service bulletins describe procedures for
modification of the lugs of the support
rib 5 fitting of the left- and right-hand
MLG and related investigative and
corrective actions if necessary. The
modification includes installing new
bushings on the lugs of the support rib
5 fitting of the MLG, and applying
protective sealant to the bores and
spotfaces of the lug. The related
investigative and corrective actions
include performing a visual inspection
for corrosion/damage of the bores and
spotfaces of the lug for the pintle pin
bushings, and repair if corrosion/
damage is found. Accomplishing this
E:\FR\FM\15JNR1.SGM
15JNR1
Agencies
[Federal Register Volume 70, Number 114 (Wednesday, June 15, 2005)]
[Rules and Regulations]
[Pages 34633-34636]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-11790]
=======================================================================
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FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 2005 -16]
Inflation Adjustments for Civil Monetary Penalties
AGENCY: Federal Election Commission.
ACTION: Final rules.
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SUMMARY: The Federal Election Commission (``Commission'') is adopting
final rules to apply inflation adjustments to certain civil monetary
penalties under the Federal Election Campaign Act of 1971, as amended
(``FECA''), the Presidential Election Campaign Fund Act and the
Presidential Primary Matching Payment Account Act. The civil penalties
being adjusted are for (1) certain violations of these statutes that
are not knowing and willful, involving contributions and expenditures;
(2) knowing and willful violations of the prohibition against the
making of a contribution in the name of another; (3) knowing and
willful violations of the confidentiality provisions of FECA; and (4)
failure to file timely 48-hour notices. No other civil penalties are
being adjusted. These adjustments are required by the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Debt
Collection Improvement Act of 1996. Further information is provided in
the supplementary information that follows.
DATES: These penalty adjustments are effective on June 15, 2005.
FOR FURTHER INFORMATION CONTACT: Ms. Mai T. Dinh, Assistant General
Counsel, or Mr. Albert J. Kiss, Attorney, 999 E Street, NW.,
Washington, DC 20463, (202) 694-1650 or (800) 424-9530.
SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation
Adjustment Act of 1990,\1\ as amended by the Debt Collection
Improvement Act of 1996,\2\ (``Inflation Adjustment Act'') requires
Federal agencies to adopt regulations at least once every four years
adjusting for inflation the civil monetary penalties within the
jurisdiction of the agency.
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\1\ 28 U.S.C. 2461 note (2005).
\2\ Public Law 104-134, 110 Stat. 1321-358, 1321-373, section
31001(s) (1996).
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A civil monetary penalty (``civil penalty'') is defined in the
Inflation Adjustment Act as any penalty, fine, or other sanction that
is for a specific amount, or has a maximum amount, as provided by
Federal law, and is assessed or enforced by an agency in an
administrative proceeding or by a Federal court pursuant to Federal
law.\3\ This definition covers the civil penalties provided for in the
Federal Election Campaign Act of 1971 (``FECA''), as amended, 2 U.S.C.
431 et seq., for respondents who violate FECA, or violate the
Presidential Election Campaign Fund Act, 26 U.S.C. 9001 et seq., or the
Presidential Primary Matching Payment Account Act, 26 U.S.C. 9031 et
seq. (collectively ``chapters 95 and 96 of Title 26''). Under the
Inflation Adjustment Act, a civil penalty is adjusted by a cost-of-
living adjustment (``COLA''), determined by multiplying the amount of
the civil penalty by the percentage (if any) by which the U.S.
Department of Labor's Consumer Price Index for all urban consumers
(``CPI'') for the month of June for the year preceding the year of
adjustment exceeds the CPI for the month of June for the year in which
the amount of the civil penalty was last set or adjusted.\4\ The amount
of the inflation adjustment is subject to rounding rules.\5\
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\3\ 28 U.S.C. 2461 note (3)(2).
\4\ 28 U.S.C. 2461 note (3)(3) and (5)(b).
\5\ 28 U.S.C. 2461 note (5)(a).
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In March 1997, the Commission promulgated new rules to adjust
FECA's then-current civil penalties pursuant to the Inflation
Adjustment Act. Final Rules and Explanation and Justification for
Adjustments to Civil Monetary Penalty Amounts, 62 FR 11316 (Mar. 12,
1997) (``1997 Civil Penalty Adjustment E&J''). In January 2002, the
Commission again examined its civil penalty rules under the Inflation
Adjustment Act, but did not adjust any civil penalty rules because the
operation of the Inflation Adjustment Act's rounding rules did not
result in increases in any of the civil penalties. Agenda Doc. 02-06
(Jan. 17, 2002). As explained in more detail below, the Commission has
determined that certain civil penalties in 11 CFR 111.24 and 111.44
must be increased again in 2005 due to the increases in the CPI and the
application of the Inflation Adjustment Act's rounding rules to these
civil penalties. However, other civil penalties in 11 CFR 111.24 and
111.43 are not being changed because the rounding rules negate any
increases
[[Page 34634]]
in the civil penalties that would have resulted from the increases in
the CPI.
The Commission is required by statute to adjust the civil penalties
under its jurisdiction by a COLA formula. This application of the COLA
does not involve Commission discretion or any policy judgments. Thus,
the Commission finds that the ``good cause'' exception to the notice
and comment requirement in section 553 of the Administrative Procedure
Act applies to these rules because notice and comment are unnecessary.
5 U.S.C. 553(b)(B) and (d)(3). For the same reasons, these rules do not
need to be submitted to the Speaker of the House of Representatives or
the President of the Senate under the Congressional Review Act, 5
U.S.C. 801 et seq., and these rules are effective upon publication. 5
U.S.C. 808(2). Accordingly, these amendments are effective on June 15,
2005. The new civil penalty amounts are applicable only to violations
that occur after this effective date.
Explanation and Justification
11 CFR 111.24--Civil Penalties (2 U.S.C. 437g(a)(5), (6), (12), 28
U.S.C. 2461 nt.)
FECA provides for civil penalties for any person who violates any
portion of FECA or chapters 95 and 96 of Title 26. FECA's civil
penalties, found at 2 U.S.C. 437g(a)(5), (6), and (12), are organized
into two tiers; one tier of civil penalties for violations of FECA or
chapters 95 and 96 of Title 26, and a higher tier of civil penalties
for ``knowing and willful'' violations of FECA or chapters 95 and 96 of
Title 26. Commission regulations in section 111.24 set forth each civil
penalty established by section 437g(a)(5), (6) and (12), as adjusted
pursuant to the Inflation Adjustment Act.
1. 11 CFR 111.24(a)(1) Violations That Are Not Knowing and Willful
Under the core statutory provisions, the Commission may negotiate a
civil penalty, or may institute an action for a civil penalty, or a
court may impose a civil penalty, for a violation of FECA or of
chapters 95 or 96 of Title 26 that does not exceed the greater of
$5,000 or an amount equal to any contribution or expenditure involved
in the violation. 2 U.S.C. 437g(a)(5)(A), (6)(A) and (6)(B). The $5,000
civil penalty amount was increased to $5,500 when section 111.24(a) was
promulgated in 1997.\6\ 1997 Civil Penalty Adjustment E&J at 11316.
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\6\ The Inflation Adjustment Act provides that the first
adjustment to a civil penalty may not exceed ten percent of the
penalty. Thus, the 1997 increase to the $5,000 civil penalty was
limited to ten percent of $5,000, or $500, and this penalty was
increased to $5,500.
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At this time, to determine the appropriate COLA to apply to the
$5,500 amount, the Commission uses the CPI for June of 2004, which is
189.7, and the CPI for June of 1997, which is 160.3.\7\ The COLA is
determined by dividing the CPI for June of 2004 (189.7) by the CPI for
June of 1997 (160.3), which equals 1.183 (189.7/160.3 = 1.183). To
obtain the inflation-adjusted civil penalty amount, the $5,500 amount
is multiplied by the COLA of 1.183, which equals $6,507 ($5,500 x 1.183
= $6,507). Thus, the increase is $1,007 ($6,507-$5,500 = $1,007). The
amount of the increase is subject to the Inflation Adjustment Act
rounding rules. Under the rounding rules, where the existing civil
penalty is greater than $1,000 but less than or equal to $10,000, the
increase is rounded to the nearest multiple of $1,000. Therefore, the
amount of the civil penalty increase is rounded to $1,000.
Consequently, section 111.24(a)(1) is amended by adding $1,000 to the
$5,500 civil penalty to obtain the new inflation-adjusted civil penalty
of $6,500.
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\7\ The base period for the CPI figures is 1982 to 1984. Thus,
the price of a basket of goods and services that would have cost
$100 in 1982-1984, rose to $160.30 in June 1997, and to $189.70 in
June 2004.
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2. 11 CFR 111.24(a)(2)(i)--Knowing and Willful Violations
The Commission may seek, or a court may impose, a civil penalty for
a ``knowing and willful'' violation of FECA or of chapters 95 or 96 of
Title 26 that does not exceed the greater of $10,000 or an amount equal
to 200% of any contribution or expenditure involved in the violation. 2
U.S.C. 437g(a)(5)(B) and (6)(C). The $10,000 civil penalty amount was
increased to $11,000 when section 111.24(a) was promulgated in 1997.\8\
1997 Civil Penalty Adjustment E&J at 11316.
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\8\ As discussed above, the first adjustment to a civil penalty
may not exceed ten percent of the penalty. Thus, the 1997 increase
to the $10,000 civil penalty was limited to ten percent of $10,000,
or $1,000, and this penalty was increased to $11,000.
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At this time, to obtain the inflation-adjusted civil penalty,
$11,000 is multiplied by the same COLA calculated above, i.e., 1.183.
The resulting amount equals $13,013 ($11,000 x 1.183 = $13,103). Thus,
the increase is $2,013 ($13,013 - $11,000 = $2,013). Under the rounding
rules, where the existing civil penalty is greater than $10,000 but
less than or equal to $100,000, the increase is rounded to the nearest
multiple of $5,000. Therefore, the amount of the civil penalty increase
is rounded to zero, and the $11,000 civil penalty is not changed.
Because no changes are being made at this time, the next adjustment
will reflect inflationary changes since 1997 rather than 2005.
3. 11 CFR 111.24(a)(2)(ii)--Knowing and Willful Contributions Made in
the Name of Another
The Bipartisan Campaign Reform Act of 2002, Public Law 107-155, 116
Stat. 81,108, section 315 (2002) (``BCRA''), increased minimum and
maximum civil penalties for knowing and willful violations of the
prohibition on contributions made in the name of another in 2 U.S.C.
441f. As revised by BCRA, the civil penalty for such a violation is not
less than 300 percent of the amount involved in the violation, and is
not more than the greater of $50,000 or 1,000 percent of the amount
involved in the violation. 2 U.S.C. 437g(a)(5)(B) and (6)(C); 11 CFR
111.24(a)(2)(ii). To determine the appropriate COLA to apply to the
$50,000 amount, the Commission uses the CPI for June of 2004, which is
189.7, and the CPI for June of 2002, which is 179.9. The COLA is
determined by dividing the CPI for June of 2004 (189.7) by the CPI for
June of 2002 (179.9), which equals 1.054 (189.7/179.9 = 1.054). To
obtain the inflation-adjusted civil penalty, $50,000 is multiplied by
the COLA of 1.054, which equals $52,700 ($50,000 x 1.054 = $52,700).
Thus, the increase is $2,700 ($52,700-$50,000 = $2,700). Under the
rounding rules described above, $2,700 is rounded to $5,000.
Consequently, section 111.24(a)(2)(ii) is amended by adding $5,000 to
the $50,000 civil penalty to obtain the new inflation-adjusted civil
penalty of $55,000.
4. 11 CFR 111.24(b)--Violations of Confidentiality
Any Commission member or employee, or any other person, who makes
public any notification or investigation under 2 U.S.C. 437g without
receiving the written consent of the person receiving such
notification, or the person with respect to whom such investigation is
made, shall be fined not more than $2,000, except that any such member,
employee, or other person who knowingly and willfully violates this
provision shall be fined not more than $5,000. 2 U.S.C. 437g(a)(12)(B).
In 1997, the Commission promulgated 11 CFR 111.24(b) to increase the
$2,000 civil penalty to $2,200, and to increase the $5,000 civil
[[Page 34635]]
penalty to $5,500.\9\ 1997 Civil Penalty Adjustment E&J at 11317.
---------------------------------------------------------------------------
\9\ As discussed above, the first adjustment to a civil penalty
may not exceed ten percent of the penalty. Thus, the 1997 increase
to the $2,000 civil penalty was limited to ten percent of $2,000, or
$200, and this penalty was increased to $2,200. Similarly, the 1997
increase to the $5,000 civil penalty was limited to ten percent of
$5,000, or $500, and this penalty was increased to $5,500.
---------------------------------------------------------------------------
For these civil penalties, the appropriate COLA is 1.183. See COLA
calculation for civil penalties under 11 CFR 111.24(a)(1), above. To
obtain the inflation-adjusted civil penalty for the $2,200 amount,
$2,200 is multiplied by the COLA of 1.183, which equals $2,603 ($2,200
x 1.183 = $2,603). Thus, the increase is $403 ($2,603-$2,200 = $403).
Under the rounding rules described above, $403 is rounded to zero.
Thus, the $2,200 civil penalty remains unchanged. Because no changes
are being made at this time, the next adjustment will reflect
inflationary changes since 1997 rather than 2005.
To obtain the inflation-adjusted civil penalty for the $5,500
amount, $5,500 is multiplied by the COLA of 1.183, equaling $6,507
($5,500 x 1.183 = $6,507). Thus, the increase is $1,007 ($6,507-$5,500
= $1,007). Under the rounding rules, the $1,007 amount is rounded to
$1,000. Consequently, section 111.24(b) is amended by adding $1,000 to
the $5,500 amount to obtain the new inflation-adjusted civil penalty of
$6,500 for knowing and willful violations of confidentiality.
11 CFR 111.43--Schedules of Penalties
FECA permits the Commission to assess civil penalties for
violations of the reporting requirements of 2 U.S.C. 434(a) in
accordance with schedules of penalties established and published by the
Commission. 2 U.S.C. 437g(a)(4)(C). The schedules of penalties for
political committees that file their reports late or that fail to file
reports are set out in 11 CFR 111.43, and were last amended in 2003.
Final Rules and Explanation and Justification for Administrative Fines,
68 FR 12572, 12573-12575 (Mar. 17, 2003). To determine the appropriate
COLA to apply to the schedules of penalties for violations of these
reporting requirements, the Commission uses the CPI for June of 2004,
which is 189.7, and the CPI for June of 2003, which is 183.7. Although
applying the COLA of 1.033 (189.7/183.7 = 1.033) to all possible civil
penalties under the schedules of penalties would result in a slight
increase in the civil penalty amounts, the Inflation Adjustment Act
rounding rules would round down the increased civil penalty amounts to
the current amounts. Consequently, the formulas in the schedules of
penalties in 11 CFR 111.43 are not changed.
However, the Commission is correcting a typographical error in the
schedule at section 111.43(a)(2)(iii). Under the column entitled ``[I]f
the level of activity in the report was,'' the level of activity of
$450,000-$549,999.99 is missing the first instance of the number ``4.''
Thus, this level of activity is erroneously listed as ``$50,000-
549,999.99.'' The Commission is correcting this to read ``$450,000--
$549,999.99.''
11 CFR 111.44--Schedule of Penalties for 48-Hour Notices
Principal campaign committees are required to report, within 48
hours of receipt, any contributions of $1,000 or more that are received
after the 20th day, but more than 48 hours before any election. 2
U.S.C. 434(a)(6). FECA permits the Commission to assess civil penalties
for violations of this reporting requirement. 2 U.S.C. 437g(a)(4)(C).
In 2000, the Commission adopted rules setting forth the civil penalties
for failure to file timely notices of these last-minute contributions.
Final Rules and Explanation and Justification for Administrative Fines,
65 FR 31787, 31793 (May 19, 2000). The amount of the civil penalty for
each notice not filed timely is $100 plus ten percent of the amount of
the contribution(s) not timely reported, and is increased for prior
violations. 11 CFR 111.44. To determine the appropriate COLA to apply
to the $100 amount, the Commission uses the CPI for June of 2004, which
is 189.7, and the CPI for June of 2000, which is 172.4. The COLA is
obtained by dividing the CPI for June of 2004 (189.7) by the CPI for
June of 2000 (172.4), which equals 1.100 (189.7/172.4 = 1.100). To
obtain the inflation-adjusted civil penalty amount, $100 is multiplied
by the COLA of 1.100, which equals $110 ($100 x 1.100 = $110). Thus,
the increase is $10 ($110-$100 = $10). The Inflation Adjustment Act
rounding rules do not change the amount of this increase.\10\
Consequently, section 111.44 is amended by adding $10 to the $100 civil
penalty to obtain the new inflation-adjusted civil penalty of $110.
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\10\ Under the rounding rules, where the existing penalty is
less than or equal to $100, the increase is rounded to the nearest
multiple of $10. Therefore, the amount of the penalty increase is
rounded to $10, the same amount as it was prior to application of
the rounding rules.
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Certification of No Effect Pursuant to 5 U.S.C. 605(b) (Regulatory
Flexibility Act)
The provisions of the Regulatory Flexibility Act are not applicable
to this final rule because the Commission was not required to publish a
notice of proposed rulemaking or to seek public comment under 5 U.S.C.
553 or any other laws. 5 U.S.C. 603(a) and 604(a). Therefore, no
regulatory flexibility analysis is required.
List of Subjects in 11 CFR Part 111
Administrative practice and procedure, Elections, Law enforcement,
and Penalties.
0
For the reasons set out in the preamble, the Federal Election
Commission amends subchapter A of chapter I of title 11 of the Code of
Federal Regulations as follows:
PART 111--COMPLIANCE PROCEDURE (2 U.S.C. 437g, 437d(a))
0
1. The authority citation for part 111 continues to read as follows:
Authority: 2 U.S.C. 437g, 437d(a), 438(a)(8); 28 U.S.C. 2461 nt.
0
2. In Sec. 111.24, paragraphs (a)(1), (a)(2)(ii) and (b) are revised
to read as follows:
Sec. 111.24 Civil Penalties (2 U.S.C. 437g(a)(5), (6), (12), 28
U.S.C. 2461 nt.).
(a) * * *
(1) Except as provided in paragraph (a)(2) of this section, in the
case of a violation of the Act or chapters 95 or 96 of title 26 (26
U.S.C.), the civil penalty shall not exceed the greater of $6,500 or an
amount equal to any contribution or expenditure involved in the
violation.
(2) * * *
(ii) Notwithstanding paragraph (a)(2)(i) of this section, in the
case of a knowing and willful violation of 2 U.S.C. 441f, the civil
penalty shall not be less than 300% of the amount of any contribution
involved in the violation and shall not exceed the greater of $55,000
or 1,000% of the amount of any contribution involved in the violation.
(b) Any Commission member or employee, or any other person, who in
violation of 2 U.S.C. 437g(a)(12)(A) makes public any notification or
investigation under 2 U.S.C. 437g without receiving the written consent
of the person receiving such notification, or the person with respect
to whom such investigation is made, shall be fined not more than
$2,200. Any such member, employee, or other person who knowingly and
willfully violates this provision shall be fined not more than $6,500.
[[Page 34636]]
Sec. 111.43 [Amended]
0
3. In Sec. 111.43, paragraph (a)(2)(iii) is amended by removing
``$50,000-$549,999.99'' and adding in its place ``$450,000-
549,999.99.''
0
4. In Sec. 111.44, paragraph (a)(1) is revised to read as follows:
Sec. 111.44 What is the schedule of penalties for 48-hour notices
that are not filed or are filed late?
(a) * * *
(1) Civil money penalty = $110 + (.10 x amount of the
contribution(s) not timely reported).
* * * * *
Dated: June 9, 2005.
Scott E. Thomas,
Chairman, Federal Election Commission.
[FR Doc. 05-11790 Filed 6-14-05; 8:45 am]
BILLING CODE 6715-01-P