Civil Monetary Penalties Inflation Adjustments, 44419-44422 [2013-17703]
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44419
Rules and Regulations
Federal Register
Vol. 78, No. 142
Wednesday, July 24, 2013
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 ELECTION COMMISSION
11 CFR Part 111
[Notice 2013–10]
Civil Monetary Penalties Inflation
Adjustments
Federal Election Commission.
Final rules.
AGENCY:
ACTION:
In accordance with the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended,
the Federal Election Commission is
adopting final rules to apply inflation
adjustments to certain civil monetary
penalties under the Federal Election
Campaign Act of 1971, as amended, the
Presidential Election Campaign Fund
Act, and the Presidential Primary
Matching Payment Account Act. The
civil penalties being adjusted are for a
knowing and willful violation of the
prohibition against making a
contribution in the name of another; and
certain late filed or non-filed reports
under the Commission’s administrative
fines program. The adjusted civil
monetary penalties are calculated
according to a statutory formula and
will be effective for violations occurring
after the effective date of these rules.
Further information is provided in the
supplementary information that follows.
DATES: These penalty adjustments are
effective on July 24, 2013.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert M. Knop, Assistant General
Counsel, or Ms. Cheryl A.F. Hemsley, or
Ms. Jessica Selinkoff, Attorneys, 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, as amended
(‘‘Inflation Adjustment Act’’),1 requires
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SUMMARY:
1 Pub. L. 101–410, 104 Stat. 890 (codified at 28
U.S.C. 2461 note), as amended by Debt Collection
Improvement Act of 1996, Pub. L. 104–134, sec.
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Federal agencies to adjust for inflation
the civil monetary penalties within their
jurisdiction at least once every four
years according to detailed formulas.
The Inflation Adjustment Act defines a
civil monetary penalty as any penalty,
fine, or other sanction that is for a
specific amount, or has a maximum
amount, as provided by Federal law,
and that a Federal agency assesses or
enforces in an administrative
proceeding or in a civil action in
Federal court.2 Under the Federal
Election Campaign Act of 1971, as
amended, 2 U.S.C. 431 et seq. (‘‘FECA’’),
the Federal Election Commission has
jurisdiction over several civil penalties
for violations of FECA, the Presidential
Election Campaign Fund Act, 26 U.S.C.
9001 et seq., and the Presidential
Primary Matching Payment Account
Act, 26 U.S.C. 9031 et seq. These rules
fulfill the Commission’s nondiscretionary obligation under the
Inflation Adjustment Act to adjust for
inflation, according to the prescribed
formulas, the civil penalties within its
jurisdiction.
Immediate Effectiveness of Final Rules
The Inflation Adjustment Act requires
the Commission to adjust the civil
penalties under its jurisdiction by using
a cost-of-living adjustment (‘‘COLA’’)
formula. The application of this COLA
does not involve any Commission
discretion or policy judgments. Thus,
the Commission finds that the ‘‘good
cause’’ exception to the notice and
comment requirement of the
Administrative Procedure Act applies to
these rules because notice and comment
are unnecessary. 5 U.S.C. 553(b)(B),
(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 July 24, 2013. The new civil
penalties are applicable only to
violations that occur after this effective
date.3
31001(s)(1), 110 Stat. 1321, 1373; Federal Reports
Elimination Act of 1998, Pub. L. 105–362, sec. 1301,
112 Stat. 3280.
2 Inflation Adjustment Act sec. 3(2).
3 Id. sec. 6.
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Explanation and Justification
Under the Inflation Adjustment Act,
the Commission must adjust civil
penalties by a COLA defined as the
percentage by which the U.S.
Department of Labor’s Consumer Price
Index for all urban consumers (‘‘CPI’’)
for June of the year preceding the
adjustment exceeds the CPI for June of
the year in which each civil penalty was
last set or adjusted.4 The amount of the
resulting increase is then subject to
rounding rules based on the size of the
civil penalty.5 The Inflation Adjustment
Act imposes a 10% cap on the first
adjustment under its rules, but no cap
on subsequent adjustments.6 That is, the
first adjustment of a civil penalty may
not exceed 10% of the starting civil
penalty.
The Commission has previously
applied the Inflation Adjustment Act
formulas to its civil penalties in 1997,
2002, 2005, and 2009.7 As explained
below, the Inflation Adjustment Act
now requires the Commission to adjust
one civil penalty in 11 CFR 111.24 and
some civil penalties in 11 CFR 111.43.
Because of the rounding rules, the other
civil penalties within the Commission’s
jurisdiction will not change.
1. 11 CFR 111.24—General Civil
Penalties
FECA establishes civil penalties for
violations of FECA or the other statutes
within the Commission’s jurisdiction.
4 Id.
sec. 5(b).
sec. 5(a). The rounding rules applicable to
the Commission’s civil penalties require that if the
existing penalty is less than or equal to $100, the
increase is rounded to the nearest $10; if the
existing penalty is greater than $100 but less than
or equal to $1,000, the increase is rounded to the
nearest $100; if the existing penalty is greater than
$1,000 but less than or equal to $10,000, the
increase is rounded to the nearest $1,000; and if the
existing penalty is greater than $10,000 but less
than or equal to $100,000, the increase is rounded
to the nearest $5,000.
6 Pub. L. 104–134, sec. 31001(s)(2), 110 Stat. 1321,
1373.
7 See Explanation and Justification for Final Rules
on Civil Monetary Penalties Inflation Adjustments,
74 FR 31345 (July 1, 2009), amended by
Explanation and Justification for Final Rules on
Civil Monetary Penalties Inflation Adjustments;
Correction, 74 FR 37161 (July 28, 2009)
(collectively, ‘‘2009 Adjustment’’), Explanation and
Justification for Final Rules on Inflation
Adjustments for Civil Monetary Penalties, 70 FR
34633 (June 15, 2005) (‘‘2005 Adjustment’’),
Explanation and Justification for Final Rules on
Adjustments to Civil Monetary Penalty Amounts,
62 FR 11316 (Mar. 12, 1997). In January 2002, the
rounding rules resulted in no adjustments. Agenda
Doc. 02–06 (Jan. 17, 2002).
5 Id.
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Those statutory civil penalties are found
at 2 U.S.C. 437g(a)(5), (6), and (12).
Commission regulations in 11 CFR
111.24 set forth each such civil penalty,
as adjusted pursuant to the Inflation
Adjustment Act.
These final rules adjust only one
statutory civil penalty: the $50,000 civil
penalty established by 2 U.S.C.
437g(a)(5)(B), which is currently at the
2009 level of $60,000. 11 CFR
111.24(a)(2)(ii).8 To determine the 2013
COLA, the CPI for June 2012 (229.478) 9
is divided by the CPI for June 2009
(215.693), the year the civil penalty was
last adjusted, for an increase of 6.4%.
Next, the raw inflation adjustment is
determined by multiplying the present
civil penalty ($60,000) by the COLA
(0.064) for a raw increase of $3,840,
Previous
civil penalty
Section
11
11
11
11
11
CFR
CFR
CFR
CFR
CFR
111.24(a)(1) ........................................................
111.24(a)(2)(i) ....................................................
111.24(a)(2)(ii) ....................................................
111.24(b) ............................................................
111.24(b) ............................................................
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2. 11 CFR 111.43, 111.44—
Administrative Fines
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)(i). The penalty schedule in
11 CFR 111.43(a) applies to reports that
are not election sensitive, and the
schedule in 11 CFR 111.43(b) applies to
reports that are election sensitive.10
Each schedule contains two columns of
penalties, one for late-filed reports and
one for non-filed reports, with penalties
based on the level of financial activity
in the report and its lateness (where
applicable).11 In addition, 11 CFR
111.43(c) establishes a civil penalty for
situations in which a committee fails to
file a report and the Commission cannot
calculate the relevant level of activity.
Finally, 11 CFR 111.44 establishes a
civil penalty for failure to file timely
reports of contributions received less
than 20 days, but more than 48 hours,
before an election. See 2 U.S.C.
434(a)(6).
The schedules in 11 CFR 111.43 were
set in 2003 when the Commission repromulgated its Administrative Fines
program, which implements 2 U.S.C.
437g(a)(4)(C). See Explanation and
Justification for Final Rules on
Administrative Fines, 68 FR 12572
(Mar. 17, 2003). In 2005, the
Commission applied the Inflation
Adjustment Act formulas to the civil
penalties in section 111.43 but did not
8 See
2009 Adjustment, 74 FR at 31347.
Dep’t of Labor, Bureau of Labor Statistics,
Consumer Price Index: All Urban Consumers (May
16, 2013), available at ftp://ftp.bls.gov/pub/
special.requests/cpi/cpiai.txt.
10 Election sensitive reports are certain reports
due shortly before an election. See 11 CFR
111.43(d)(1).
9 U.S.
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$7,500
16,000
60,000
3,200
7,500
Last
adjusted
which is rounded to $5,000. Finally, the
rounded increase is added to the civil
penalty, for a new section
111.24(a)(2)(ii) civil penalty of $65,000.
Using the same Inflation Adjustment
Act formulas, the Commission has also
reviewed the other civil penalties in 11
CFR 111.24. None of those other civil
penalties will change this year because
of the rounding rules.
Raw
increase
COLA
2009
2009
2009
2009
2009
0.064
0.064
0.064
0.064
0.064
$480.00
1,024.00
3,840.00
204.80
480.00
Rounded
increase
$0
0
5,000
0
0
New civil
penalty
unchanged.
unchanged.
65,000.
unchanged.
unchanged.
adjust any of the penalties because of
the rounding rules. See 2005
Adjustment, 70 FR at 34635. Under the
same procedures, the Commission
adjusted some, but not all, of these civil
penalties in 2009. See 2009 Adjustment,
74 FR at 31348–49 (renumbering
schedules and adjusting some penalties
for inflation).
For purposes of the current
adjustments, the Commission multiplies
each civil penalty that was raised in
2009 by a COLA of 0.064. For those civil
penalties set in 2003 and unchanged in
2009, the Commission multiplies each
civil penalty by a COLA of 0.249.12
Next, the Commission applies the
statutory rounding formula to each of
these raw increases. The resulting
rounded increase is then added to the
current civil penalty to determine the
new raw civil penalty. Finally, the
statutory 10% penalty cap is applied as
necessary, i.e., to penalties that the
Commission is adjusting this year for
the first time. The actual adjustment to
each civil penalty is shown in the
schedules in the rule text, below.
The $6,050 civil penalty in 11 CFR
111.43(c) was adjusted in 2009,13 so the
Commission multiplies it by a COLA of
0.064. Because of the rounding rules,
this civil penalty will not change this
year.
The penalty in 11 CFR 111.44 was last
adjusted in 2005,14 so the Commission
multiplies it by a COLA of 0.18.15
Because of the rounding rules, this civil
penalty will not change this year.
Certification of No Effect Pursuant to 5
U.S.C. 605(b) (Regulatory Flexibility
Act)
11 A report is considered to be ‘‘not filed’’ if it is
never filed or is filed more than a certain number
of days after its due date. See 11 CFR 111.43(e).
12 The CPI for June 2012 (229.478) divided by the
CPI for June 2003 (183.7) equals an increase of
24.9%.
13 See 2009 Adjustment, 74 FR at 37161
(correcting amount to $6,050).
14 See 2005 Adjustment, 70 FR at 34635;
Explanation and Justification for Final Rules on
Administrative Fines, 65 FR 31787, 31793 (May 19,
2000); see also 2009 Adjustment, 74 FR at 31347
(not adjusting this penalty due to rounding rules).
15 The CPI for June 2012 (229.478) divided by the
CPI for June 2005 (194.5) equals an increase of 18%.
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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), 604(a).
Therefore, no regulatory flexibility
analysis is required.
List of Subjects in 11 CFR Part 111
Administrative practice and
procedures, Elections, Law enforcement,
Penalties.
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:
■
Authority: 2 U.S.C. 432(i), 437g, 437d(a),
438(a)(8); 28 U.S.C. 2461 nt.
2. Section 111.24 is amended by
revising paragraph (a)(2)(ii) to read as
follows:
■
§ 111.24 Civil Penalties (2 U.S.C.
437g(a)(5), (6), (12), 28 U.S.C. 2461 nt.).
(a) * * *
(2) * * *
(ii) Notwithstanding paragraph
(a)(2)(i) of this section, in the case of a
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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
$65,000 or 1,000% of the amount of any
contribution involved in the violation.
*
*
*
*
*
3. Section 111.43 is amended by
revising paragraphs (a) and (b) to read
as follows:
■
44421
§ 111.43 What are the schedules of
penalties?
(a) The civil money penalty for all
reports that are filed late or not filed,
except election sensitive reports and
pre-election reports under 11 CFR 104.5,
shall be calculated in accordance with
the following schedule of penalties:
If the level of activity in the
report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money penalty is:
$1–4,999.99 a .......................
[$27.50 + ($5 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$55 + ($5 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$110 + ($5 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$200 + ($20 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$330 + ($92.50 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$440 + ($110 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$660 + ($125 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$980 + ($150 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$1100 + ($175 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$1500 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$2000 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$2750 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$3300 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$3850 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$4400 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$4950 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$5500 + ($200 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
$275 × [1 + (.25 × Number of previous violations)].
$5,000–9,999.99 ..................
$10,000–24,999.99 ..............
$25,000–49,999.99 ..............
$50,000–74,999.99 ..............
$75,000–99,999.99 ..............
$100,000–149,999.99 ..........
$150,000–199,999.99 ..........
$200,000–249,999.99 ..........
$250,000–349,999.99 ..........
$350,000–449,999.99 ..........
$450,000–549,999.99 ..........
$550,000–649,999.99 ..........
$650,000–749,999.99 ..........
$750,000–849,999.99 ..........
$850,000–949,999.99 ..........
$950,000 or over ..................
a The
$330 × [1 + (.25 × Number of previous violations)].
$550 × [1 + (.25 × Number of previous violations)].
$1090 × [1 + (.25 × Number of previous violations)].
$2970 × [1 + (.25 × Number of previous violations)].
$3850 × [1 + (.25 × Number of previous violations)].
$4950 × [1 + (.25 × Number of previous violations)].
$6050 × [1 + (.25 × Number of previous violations)].
$7150 × [1 + (.25 × Number of previous violations)].
$9800 × [1 + (.25 × Number of previous violations)].
$10,900 × [1 + (.25 × Number of previous violations)].
$10,450 × [1 + (.25 × Number of previous violations)].
$11,000 × [1 + (.25 × Number of previous violations)].
$11,550 × [1 + (.25 × Number of previous violations)].
$12,100 × [1 + (.25 × Number of previous violations)].
$12,650 × [1 + (.25 × Number of previous violations)].
$13,200 × [1 + (.25 × Number of previous violations)].
civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report.
(b) The civil money penalty for
election sensitive reports that are filed
late or not filed shall be calculated in
accordance with the following schedule
of penalties:
If the level of activity in the
report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money penalty is:
$1–$4,999.99 a .....................
[$55 + ($10 × Number of days late)] × [1 + (.25 × Number of previous violations)].
[$110 + ($10 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$150 + ($10 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$330 + ($27.50 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$495 + ($92.50 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$660 + ($110 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$1090 + ($125 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$1200 + ($150 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
[$1500 + ($175 × Number of days late)] × [1 + (.25 ×
Number of previous violations)].
$550 × [1 + (.25 × Number of previous violations)].
$5,000–$9,999.99 ................
$10,000–24,999.99 ..............
$25,000–49,999.99 ..............
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$50,000–74,999.99 ..............
$75,000–99,999.99 ..............
$100,000–149,999.99 ..........
$150,000–199,999.99 ..........
$200,000–249,999.99 ..........
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$660 × [1 + (.25 × Number of previous violations)].
$1090 × [1 + (.25 × Number of previous violations)].
$1,400 × [1 + (.25 × Number of previous violations)].
$3300 × [1 + (.25 × Number of previous violations)].
$4400 × [1 + (.25 × Number of previous violations)].
$5500 × [1 + (.25 × Number of previous violations)].
$6600 × [1 + (.25 × Number of previous violations)].
$9250 × [1 + (.25 × Number of previous violations)].
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If the level of activity in the
report was:
And the report was filed late, the civil money penalty is:
Or the report was not filed, the civil money penalty is:
$250,000–349,999.99 ..........
[$2475 + ($200 × Number of days
Number of previous violations)].
[$3300 + ($200 × Number of days
Number of previous violations)].
[$4125 + ($200 × Number of days
Number of previous violations)].
[$4950 + ($200 × Number of days
Number of previous violations)].
[$5775 + ($200 × Number of days
Number of previous violations)].
[$6600 + ($200 × Number of days
Number of previous violations)].
[$7425 + ($200 × Number of days
Number of previous violations)].
[$9250 + ($200 × Number of days
Number of previous violations)].
late)] × [1 + (.25 ×
$10,900 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$11,000 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$12,100 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$13,200 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$14,300 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$15,400 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$16,500 × [1 + (.25 × Number of previous violations)].
late)] × [1 + (.25 ×
$17,600 × [1 + (.25 × Number of previous violations)].
$350,000–449,999.99 ..........
$450,000–549,999.99 ..........
$550,000–649,999.99 ..........
$650,000–749,999.99 ..........
$750,000–849,999.99 ..........
$850,000–949,999.99 ..........
$950,000 or over ..................
a The
*
civil money penalty for a respondent who does not have any previous violations will not exceed the level of activity in the report.
*
*
*
*
On behalf of the Commission.
Dated: July 18, 2013.
Ellen L. Weintraub,
Chair, Federal Election Commission.
[FR Doc. 2013–17703 Filed 7–23–13; 8:45 am]
BILLING CODE 6715–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2013–0638; Directorate
Identifier 2013–SW–026–AD; Amendment
39–17519; AD 2013–15–03]
RIN 2120–AA64
Airworthiness Directives; Eurocopter
France (Eurocopter) Helicopters
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule; request for
comments.
AGENCY:
We are adopting a new
airworthiness directive (AD) for
Eurocopter Model AS350B, AS350BA,
AS350B1, AS350B2, AS350B3, AS350C,
AS350D, and AS350D1 helicopters with
a single hydraulic system and a certain
hydraulic pump drive installed. This
AD requires inspecting the hydraulic
pump drive pulley bearing (pulley
bearing) for leaks, rust, overheating, and
condition. This AD is prompted by six
reports of hydraulic pump drive belt
failure caused by seizure of the pulley
bearing. These actions are intended to
prevent hydraulic pump drive belt
failure, loss of hydraulic servo
assistance, and subsequent loss of
control of the helicopter.
ehiers on DSK2VPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
15:33 Jul 23, 2013
This AD becomes effective
August 8, 2013.
We must receive comments on this
AD by September 23, 2013.
ADDRESSES: You may send comments by
any of the following methods:
• Federal eRulemaking Docket: Go to
https://www.regulations.gov. Follow the
online instructions for sending your
comments electronically.
• Fax: 202–493–2251.
• Mail: Send comments to the U.S.
Department of Transportation, Docket
Operations, M–30, West Building
Ground Floor, Room W12–140, 1200
New Jersey Avenue SE., Washington,
DC 20590–0001.
• Hand Delivery: Deliver to the
‘‘Mail’’ address between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
DATES:
Jkt 229001
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov or in person at the
Docket Operations Office between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays. The AD
docket contains this AD, the foreign
authority’s AD, the economic
evaluation, any comments received, and
other information. The street address for
the Docket Operations Office (telephone
800–647–5527) is in the ADDRESSES
section. Comments will be available in
the AD docket shortly after receipt.
For service information identified in
this AD, contact American Eurocopter
Corporation, 2701 N. Forum Drive,
Grand Prairie, TX 75052; telephone
(972) 641–0000 or (800) 232–0323; fax
(972) 641–3775; or at https://
www.eurocopter.com/techpub. You may
review the referenced service
information at the FAA, Office of the
Regional Counsel, Southwest Region,
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
2601 Meacham Blvd., Room 663, Fort
Worth, Texas 76137.
FOR FURTHER INFORMATION CONTACT: Matt
Wilbanks, Aviation Safety Engineer,
Regulations and Policy Group,
Rotorcraft Directorate, FAA, 2601
Meacham Blvd., Fort Worth, Texas
76137; telephone (817) 222–5110; email
matt.wilbanks@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
This AD is a final rule that involves
requirements affecting flight safety, and
we did not provide you with notice and
an opportunity to provide your
comments prior to it becoming effective.
However, we invite you to participate in
this rulemaking by submitting written
comments, data, or views. We also
invite comments relating to the
economic, environmental, energy, or
federalism impacts that resulted from
adopting this AD. The most helpful
comments reference a specific portion of
the AD, explain the reason for any
recommended change, and include
supporting data. To ensure the docket
does not contain duplicate comments,
commenters should send only one copy
of written comments, or if comments are
filed electronically, commenters should
submit them only one time. We will file
in the docket all comments that we
receive, as well as a report summarizing
each substantive public contact with
FAA personnel concerning this
rulemaking during the comment period.
We will consider all the comments we
receive and may conduct additional
rulemaking based on those comments.
Discussion
The European Aviation Safety Agency
(EASA), which is the Technical Agent
for the Member States of the European
Union, has issued EASA Emergency AD
No. 2013–0044–E, dated February 27,
E:\FR\FM\24JYR1.SGM
24JYR1
Agencies
[Federal Register Volume 78, Number 142 (Wednesday, July 24, 2013)]
[Rules and Regulations]
[Pages 44419-44422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17703]
========================================================================
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. 78, No. 142 / Wednesday, July 24, 2013 /
Rules and Regulations
[[Page 44419]]
FEDERAL ELECTION COMMISSION
11 CFR Part 111
[Notice 2013-10]
Civil Monetary Penalties Inflation Adjustments
AGENCY: Federal Election Commission.
ACTION: Final rules.
-----------------------------------------------------------------------
SUMMARY: In accordance with the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended, the Federal Election Commission is
adopting final rules to apply inflation adjustments to certain civil
monetary penalties under the Federal Election Campaign Act of 1971, as
amended, the Presidential Election Campaign Fund Act, and the
Presidential Primary Matching Payment Account Act. The civil penalties
being adjusted are for a knowing and willful violation of the
prohibition against making a contribution in the name of another; and
certain late filed or non-filed reports under the Commission's
administrative fines program. The adjusted civil monetary penalties are
calculated according to a statutory formula and will be effective for
violations occurring after the effective date of these rules. Further
information is provided in the supplementary information that follows.
DATES: These penalty adjustments are effective on July 24, 2013.
FOR FURTHER INFORMATION CONTACT: Mr. Robert M. Knop, Assistant General
Counsel, or Ms. Cheryl A.F. Hemsley, or Ms. Jessica Selinkoff,
Attorneys, 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, as amended (``Inflation Adjustment Act''),\1\
requires Federal agencies to adjust for inflation the civil monetary
penalties within their jurisdiction at least once every four years
according to detailed formulas. The Inflation Adjustment Act defines a
civil monetary penalty as any penalty, fine, or other sanction that is
for a specific amount, or has a maximum amount, as provided by Federal
law, and that a Federal agency assesses or enforces in an
administrative proceeding or in a civil action in Federal court.\2\
Under the Federal Election Campaign Act of 1971, as amended, 2 U.S.C.
431 et seq. (``FECA''), the Federal Election Commission has
jurisdiction over several civil penalties for violations of FECA, the
Presidential Election Campaign Fund Act, 26 U.S.C. 9001 et seq., and
the Presidential Primary Matching Payment Account Act, 26 U.S.C. 9031
et seq. These rules fulfill the Commission's non-discretionary
obligation under the Inflation Adjustment Act to adjust for inflation,
according to the prescribed formulas, the civil penalties within its
jurisdiction.
---------------------------------------------------------------------------
\1\ Pub. L. 101-410, 104 Stat. 890 (codified at 28 U.S.C. 2461
note), as amended by Debt Collection Improvement Act of 1996, Pub.
L. 104-134, sec. 31001(s)(1), 110 Stat. 1321, 1373; Federal Reports
Elimination Act of 1998, Pub. L. 105-362, sec. 1301, 112 Stat. 3280.
\2\ Inflation Adjustment Act sec. 3(2).
---------------------------------------------------------------------------
Immediate Effectiveness of Final Rules
The Inflation Adjustment Act requires the Commission to adjust the
civil penalties under its jurisdiction by using a cost-of-living
adjustment (``COLA'') formula. The application of this COLA does not
involve any Commission discretion or policy judgments. Thus, the
Commission finds that the ``good cause'' exception to the notice and
comment requirement of the Administrative Procedure Act applies to
these rules because notice and comment are unnecessary. 5 U.S.C.
553(b)(B), (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 July 24, 2013. The new
civil penalties are applicable only to violations that occur after this
effective date.\3\
---------------------------------------------------------------------------
\3\ Id. sec. 6.
---------------------------------------------------------------------------
Explanation and Justification
Under the Inflation Adjustment Act, the Commission must adjust
civil penalties by a COLA defined as the percentage by which the U.S.
Department of Labor's Consumer Price Index for all urban consumers
(``CPI'') for June of the year preceding the adjustment exceeds the CPI
for June of the year in which each civil penalty was last set or
adjusted.\4\ The amount of the resulting increase is then subject to
rounding rules based on the size of the civil penalty.\5\ The Inflation
Adjustment Act imposes a 10% cap on the first adjustment under its
rules, but no cap on subsequent adjustments.\6\ That is, the first
adjustment of a civil penalty may not exceed 10% of the starting civil
penalty.
---------------------------------------------------------------------------
\4\ Id. sec. 5(b).
\5\ Id. sec. 5(a). The rounding rules applicable to the
Commission's civil penalties require that if the existing penalty is
less than or equal to $100, the increase is rounded to the nearest
$10; if the existing penalty is greater than $100 but less than or
equal to $1,000, the increase is rounded to the nearest $100; if the
existing penalty is greater than $1,000 but less than or equal to
$10,000, the increase is rounded to the nearest $1,000; and if the
existing penalty is greater than $10,000 but less than or equal to
$100,000, the increase is rounded to the nearest $5,000.
\6\ Pub. L. 104-134, sec. 31001(s)(2), 110 Stat. 1321, 1373.
---------------------------------------------------------------------------
The Commission has previously applied the Inflation Adjustment Act
formulas to its civil penalties in 1997, 2002, 2005, and 2009.\7\ As
explained below, the Inflation Adjustment Act now requires the
Commission to adjust one civil penalty in 11 CFR 111.24 and some civil
penalties in 11 CFR 111.43. Because of the rounding rules, the other
civil penalties within the Commission's jurisdiction will not change.
---------------------------------------------------------------------------
\7\ See Explanation and Justification for Final Rules on Civil
Monetary Penalties Inflation Adjustments, 74 FR 31345 (July 1,
2009), amended by Explanation and Justification for Final Rules on
Civil Monetary Penalties Inflation Adjustments; Correction, 74 FR
37161 (July 28, 2009) (collectively, ``2009 Adjustment''),
Explanation and Justification for Final Rules on Inflation
Adjustments for Civil Monetary Penalties, 70 FR 34633 (June 15,
2005) (``2005 Adjustment''), Explanation and Justification for Final
Rules on Adjustments to Civil Monetary Penalty Amounts, 62 FR 11316
(Mar. 12, 1997). In January 2002, the rounding rules resulted in no
adjustments. Agenda Doc. 02-06 (Jan. 17, 2002).
---------------------------------------------------------------------------
1. 11 CFR 111.24--General Civil Penalties
FECA establishes civil penalties for violations of FECA or the
other statutes within the Commission's jurisdiction.
[[Page 44420]]
Those statutory civil penalties are found at 2 U.S.C. 437g(a)(5), (6),
and (12). Commission regulations in 11 CFR 111.24 set forth each such
civil penalty, as adjusted pursuant to the Inflation Adjustment Act.
These final rules adjust only one statutory civil penalty: the
$50,000 civil penalty established by 2 U.S.C. 437g(a)(5)(B), which is
currently at the 2009 level of $60,000. 11 CFR 111.24(a)(2)(ii).\8\ To
determine the 2013 COLA, the CPI for June 2012 (229.478) \9\ is divided
by the CPI for June 2009 (215.693), the year the civil penalty was last
adjusted, for an increase of 6.4%. Next, the raw inflation adjustment
is determined by multiplying the present civil penalty ($60,000) by the
COLA (0.064) for a raw increase of $3,840, which is rounded to $5,000.
Finally, the rounded increase is added to the civil penalty, for a new
section 111.24(a)(2)(ii) civil penalty of $65,000.
---------------------------------------------------------------------------
\8\ See 2009 Adjustment, 74 FR at 31347.
\9\ U.S. Dep't of Labor, Bureau of Labor Statistics, Consumer
Price Index: All Urban Consumers (May 16, 2013), available at ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt.
---------------------------------------------------------------------------
Using the same Inflation Adjustment Act formulas, the Commission
has also reviewed the other civil penalties in 11 CFR 111.24. None of
those other civil penalties will change this year because of the
rounding rules.
----------------------------------------------------------------------------------------------------------------
Previous
Section civil Last COLA Raw Rounded New civil
penalty adjusted increase increase penalty
----------------------------------------------------------------------------------------------------------------
11 CFR 111.24(a)(1)............... $7,500 2009 0.064 $480.00 $0 unchanged.
11 CFR 111.24(a)(2)(i)............ 16,000 2009 0.064 1,024.00 0 unchanged.
11 CFR 111.24(a)(2)(ii)........... 60,000 2009 0.064 3,840.00 5,000 65,000.
11 CFR 111.24(b).................. 3,200 2009 0.064 204.80 0 unchanged.
11 CFR 111.24(b).................. 7,500 2009 0.064 480.00 0 unchanged.
----------------------------------------------------------------------------------------------------------------
2. 11 CFR 111.43, 111.44--Administrative Fines
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)(i). The penalty schedule in 11 CFR
111.43(a) applies to reports that are not election sensitive, and the
schedule in 11 CFR 111.43(b) applies to reports that are election
sensitive.\10\ Each schedule contains two columns of penalties, one for
late-filed reports and one for non-filed reports, with penalties based
on the level of financial activity in the report and its lateness
(where applicable).\11\ In addition, 11 CFR 111.43(c) establishes a
civil penalty for situations in which a committee fails to file a
report and the Commission cannot calculate the relevant level of
activity. Finally, 11 CFR 111.44 establishes a civil penalty for
failure to file timely reports of contributions received less than 20
days, but more than 48 hours, before an election. See 2 U.S.C.
434(a)(6).
---------------------------------------------------------------------------
\10\ Election sensitive reports are certain reports due shortly
before an election. See 11 CFR 111.43(d)(1).
\11\ A report is considered to be ``not filed'' if it is never
filed or is filed more than a certain number of days after its due
date. See 11 CFR 111.43(e).
---------------------------------------------------------------------------
The schedules in 11 CFR 111.43 were set in 2003 when the Commission
re-promulgated its Administrative Fines program, which implements 2
U.S.C. 437g(a)(4)(C). See Explanation and Justification for Final Rules
on Administrative Fines, 68 FR 12572 (Mar. 17, 2003). In 2005, the
Commission applied the Inflation Adjustment Act formulas to the civil
penalties in section 111.43 but did not adjust any of the penalties
because of the rounding rules. See 2005 Adjustment, 70 FR at 34635.
Under the same procedures, the Commission adjusted some, but not all,
of these civil penalties in 2009. See 2009 Adjustment, 74 FR at 31348-
49 (renumbering schedules and adjusting some penalties for inflation).
For purposes of the current adjustments, the Commission multiplies
each civil penalty that was raised in 2009 by a COLA of 0.064. For
those civil penalties set in 2003 and unchanged in 2009, the Commission
multiplies each civil penalty by a COLA of 0.249.\12\ Next, the
Commission applies the statutory rounding formula to each of these raw
increases. The resulting rounded increase is then added to the current
civil penalty to determine the new raw civil penalty. Finally, the
statutory 10% penalty cap is applied as necessary, i.e., to penalties
that the Commission is adjusting this year for the first time. The
actual adjustment to each civil penalty is shown in the schedules in
the rule text, below.
---------------------------------------------------------------------------
\12\ The CPI for June 2012 (229.478) divided by the CPI for June
2003 (183.7) equals an increase of 24.9%.
---------------------------------------------------------------------------
The $6,050 civil penalty in 11 CFR 111.43(c) was adjusted in
2009,\13\ so the Commission multiplies it by a COLA of 0.064. Because
of the rounding rules, this civil penalty will not change this year.
---------------------------------------------------------------------------
\13\ See 2009 Adjustment, 74 FR at 37161 (correcting amount to
$6,050).
---------------------------------------------------------------------------
The penalty in 11 CFR 111.44 was last adjusted in 2005,\14\ so the
Commission multiplies it by a COLA of 0.18.\15\ Because of the rounding
rules, this civil penalty will not change this year.
---------------------------------------------------------------------------
\14\ See 2005 Adjustment, 70 FR at 34635; Explanation and
Justification for Final Rules on Administrative Fines, 65 FR 31787,
31793 (May 19, 2000); see also 2009 Adjustment, 74 FR at 31347 (not
adjusting this penalty due to rounding rules).
\15\ The CPI for June 2012 (229.478) divided by the CPI for June
2005 (194.5) equals an increase of 18%.
---------------------------------------------------------------------------
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), 604(a). Therefore, no
regulatory flexibility analysis is required.
List of Subjects in 11 CFR Part 111
Administrative practice and procedures, Elections, Law enforcement,
Penalties.
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. 432(i), 437g, 437d(a), 438(a)(8); 28 U.S.C.
2461 nt.
0
2. Section 111.24 is amended by revising paragraph (a)(2)(ii) 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) * * *
(2) * * *
(ii) Notwithstanding paragraph (a)(2)(i) of this section, in the
case of a
[[Page 44421]]
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 $65,000 or 1,000% of the
amount of any contribution involved in the violation.
* * * * *
0
3. Section 111.43 is amended by revising paragraphs (a) and (b) to read
as follows:
Sec. 111.43 What are the schedules of penalties?
(a) The civil money penalty for all reports that are filed late or
not filed, except election sensitive reports and pre-election reports
under 11 CFR 104.5, shall be calculated in accordance with the
following schedule of penalties:
------------------------------------------------------------------------
And the report was
If the level of activity in filed late, the Or the report was
the report was: civil money penalty not filed, the civil
is: money penalty is:
------------------------------------------------------------------------
$1-4,999.99 \a\............. [$27.50 + ($5 x $275 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$5,000-9,999.99............. [$55 + ($5 x Number $330 x [1 + (.25 x
of days late)] x [1 Number of previous
+ (.25 x Number of violations)].
previous
violations)].
$10,000-24,999.99........... [$110 + ($5 x Number $550 x [1 + (.25 x
of days late)] x [1 Number of previous
+ (.25 x Number of violations)].
previous
violations)].
$25,000-49,999.99........... [$200 + ($20 x $1090 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$50,000-74,999.99........... [$330 + ($92.50 x $2970 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$75,000-99,999.99........... [$440 + ($110 x $3850 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$100,000-149,999.99......... [$660 + ($125 x $4950 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$150,000-199,999.99......... [$980 + ($150 x $6050 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$200,000-249,999.99......... [$1100 + ($175 x $7150 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$250,000-349,999.99......... [$1500 + ($200 x $9800 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$350,000-449,999.99......... [$2000 + ($200 x $10,900 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$450,000-549,999.99......... [$2750 + ($200 x $10,450 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$550,000-649,999.99......... [$3300 + ($200 x $11,000 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$650,000-749,999.99......... [$3850 + ($200 x $11,550 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$750,000-849,999.99......... [$4400 + ($200 x $12,100 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$850,000-949,999.99......... [$4950 + ($200 x $12,650 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$950,000 or over............ [$5500 + ($200 x $13,200 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
previous violations will not exceed the level of activity in the
report.
(b) The civil money penalty for election sensitive reports that are
filed late or not filed shall be calculated in accordance with the
following schedule of penalties:
------------------------------------------------------------------------
And the report was
If the level of activity in filed late, the Or the report was
the report was: civil money penalty not filed, the civil
is: money penalty is:
------------------------------------------------------------------------
$1-$4,999.99 \a\............ [$55 + ($10 x Number $550 x [1 + (.25 x
of days late)] x [1 Number of previous
+ (.25 x Number of violations)].
previous
violations)].
$5,000-$9,999.99............ [$110 + ($10 x $660 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$10,000-24,999.99........... [$150 + ($10 x $1090 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$25,000-49,999.99........... [$330 + ($27.50 x $1,400 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$50,000-74,999.99........... [$495 + ($92.50 x $3300 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$75,000-99,999.99........... [$660 + ($110 x $4400 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$100,000-149,999.99......... [$1090 + ($125 x $5500 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$150,000-199,999.99......... [$1200 + ($150 x $6600 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
$200,000-249,999.99......... [$1500 + ($175 x $9250 x [1 + (.25 x
Number of days Number of previous
late)] x [1 + (.25 violations)].
x Number of
previous
violations)].
[[Page 44422]]
$250,000-349,999.99......... [$2475 + ($200 x $10,900 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$350,000-449,999.99......... [$3300 + ($200 x $11,000 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$450,000-549,999.99......... [$4125 + ($200 x $12,100 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$550,000-649,999.99......... [$4950 + ($200 x $13,200 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$650,000-749,999.99......... [$5775 + ($200 x $14,300 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$750,000-849,999.99......... [$6600 + ($200 x $15,400 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$850,000-949,999.99......... [$7425 + ($200 x $16,500 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
$950,000 or over............ [$9250 + ($200 x $17,600 x [1 + (.25
Number of days x Number of
late)] x [1 + (.25 previous
x Number of violations)].
previous
violations)].
------------------------------------------------------------------------
\a\ The civil money penalty for a respondent who does not have any
previous violations will not exceed the level of activity in the
report.
* * * * *
On behalf of the Commission.
Dated: July 18, 2013.
Ellen L. Weintraub,
Chair, Federal Election Commission.
[FR Doc. 2013-17703 Filed 7-23-13; 8:45 am]
BILLING CODE 6715-01-P