Annual Adjustment of Civil Monetary Penalties To Reflect Inflation, 8170-8171 [2017-00365]
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Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations
provides creditor’s rights under
commercial law and the final
regulations reflect that decision’’.
2. On page 72906, second column, the
last paragraph, ‘‘The Treasury
Department and the IRS have
determined that the proposed
regulations already properly provided
for this result. As a result of an issuance
described in the subsidiary stock
issuance exception, the issuer (S2)
becomes a successor to the transferor
(S1) to the extent of the value of the
expanded group stock acquired from the
issuer, but only with respect to a debt
instrument of the issuer issued during
the per se period determined with
respect to the issuance. If the issuer (S2)
engages in another transaction described
in the subsidiary stock issuance
exception as a transferor, the acquisition
of the stock of the expanded group
member (the second issuer) would also
not constitute an acquisition of
expanded group stock by reason of the
exception. Therefore, under a second
application of the subsidiary stock
issuance exception, the acquisition of
the stock of S3 by the issuer (S2), a
successor to the transferor (S1), is not
treated as described in the second prong
of the funding rule and thus cannot be
treated as funded by a covered debt
instrument issued by the transferor (S1).
After the second issuance, the second
issuer (S3) is a successor to both the first
transferor (S1) and the first issuer (S2),
which remains a successor to the first
transferor (S1). The final and temporary
regulations change the terminology, but
do not change the result of the proposed
regulations in this regard.’’ is corrected
to read, ‘‘The Treasury Department and
the IRS have determined that the
proposed regulations already properly
provided for this result in the situation
where S2 controls S3 within the
meaning of § 1.385–3(c)(2)(i)(B).
However, the final regulations further
clarify the application of the subsidiary
stock acquisition exception in other
tiered transfer situations, for instance
where S2 subsequently engages in a
transaction with an expanded group
member controlled by S1, but not
controlled by S2. See § 1.385–
3(g)(24)(ii)(B).’’.
3. On page 72916, second column, the
second sentence of the first full
paragraph from the bottom, ‘‘The
comments cited leases treated as loans
under section 467; receivables and
payables resulting from correlative
adjustments under section 482;
production payments under section 636;
coupon stripping transactions under
section 1286; and debt (or instruments
treated as debt) described in section
856(m)(2), 860G(a)(1), or 1361(c)(5)’’ is
VerDate Sep<11>2014
17:47 Jan 23, 2017
Jkt 241001
corrected to read ‘‘The comments cited
leases treated as loans under section
467; receivables and payables resulting
from conforming adjustments under
section 482; production payments under
section 636; coupon stripping
transactions under section 1286; and
debt (or instruments treated as debt)
described in section 856(m)(2),
860G(a)(1), or 1361(c)(5)’’.
4. On page 72916, third column, the
first complete sentence of the
incomplete paragraph at the top, ‘‘The
final and temporary regulations also
provide an exception for debt
instruments deemed to arise as a result
of transfer pricing adjustments under
section 482’’ is corrected to read ‘‘The
final and temporary regulations also
provide an exception for debt
instruments that arise due to
conforming adjustments under § 1.482–
1(g)(3)’’.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, Procedure and Administration.
[FR Doc. 2017–00497 Filed 1–23–17; 8:45 am]
BILLING CODE 4830–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 1
[DA 16–1453]
Annual Adjustment of Civil Monetary
Penalties To Reflect Inflation
Federal Communications
Commission.
ACTION: Final rule.
AGENCY:
The Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Inflation
Adjustment Act) requires the Federal
Communications Commission to amend
its forfeiture penalty rules to reflect
annual adjustments for inflation in
order to improve their effectiveness and
maintain their deterrent effect. The 2015
Inflation Adjustment Act provides that
the new penalty levels shall apply to
penalties assessed after the effective
date of the increase, including when the
penalties whose associated violation
predate the increase.
DATES: Effective January 24, 2017.
FOR FURTHER INFORMATION CONTACT:
Celia Lewis, Enforcement Bureau, 202–
418–7456, or Gregory Haledjian,
Enforcement Bureau, 202–418–7440.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s Order,
DA 16–1453, adopted and released on
December 30, 2016. The document is
SUMMARY:
PO 00000
Frm 00040
Fmt 4700
Sfmt 4700
available for download at https://
transition.fcc.gov/Daily_Releases/
Daily_Business/2016/db1230/DA–16–
1453A1.pdf. The complete text of this
document is also available for
inspection and copying during normal
business hours in the FCC Reference
Information Center, Portals II, 445 12th
Street SW., Room CY–A257,
Washington, DC 20554.
On November 2, 2015, President
Obama signed into law the Bipartisan
Budget Act of 2015, which included, as
Section 701 thereto, the 2015 Inflation
Adjustment Act, which amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410), to improve the effectiveness of
civil monetary penalties and maintain
their deterrent effect. Under the act,
agencies are required to make annual
inflationary adjustments by January 15
each year, beginning in 2017. The
adjustments are calculated pursuant to
Office of Management and Budget
(OMB) guidance. OMB issued guidance
on December 16, 2016, and this Order
follows that guidance. We therefore
update the civil monetary penalties set
forth in the Commission’s rules, to
reflect an annual inflation adjustment
that derives from OMB’s cost-of-living
multiplier of 1.01636. The cost-of-living
adjustment is ‘‘the percentage (if any)’’
by which the ‘‘(A) Consumer Price
Index for the month of October
preceding the date of the adjustment,
exceeds (B) the Consumer Price Index
for the month of October 1 year before
the month of October referred to in
subparagraph (A).’’
This document does not contain new
or modified information collection
requirements subject to the Paperwork
Reduction Act of 1995 (PRA), Public
Law 104–13. It does not contain any
new or modified information collection
burden for small business concerns with
fewer than 25 employees, pursuant to
the Small Business Paperwork Relief
Act of 2002, Public Law 107–198, see 44
U.S.C. 3506(c)(4).
The Enforcement Bureau will
coordinate with the Commission’s
Consumer & Governmental Affairs
Bureau, Reference Information Center to
report this Order to Congress and the
Government Accountability Office
pursuant to the Congressional Review
Act, see 5 U.S.C. 801(a)(1)(A).
List of Subjects in 47 CFR Part 1
Administrative practice and
procedure, Penalties.
E:\FR\FM\24JAR1.SGM
24JAR1
8171
Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations
Federal Communications Commission.
Lisa S. Gelb,
Chief of Staff, Enforcement Bureau.
paragraph (b)(8) and revising paragraph
(b)(9) to read as follows:
PART 1—PRACTICE AND
PROCEDURE
1. The authority citation for part 1 is
revised to read as follows:
■
Final Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission amends 47 CFR part 1 as
follows:
Authority: 15 U.S.C. 79 et seq., 47 U.S.C.
151, 154(i) and (j), 155, 157, 160, 201, 225,
227, 303, 309, 301, 332, 1403, 1404, 1451,
1452, and 1455.
2. Section 1.80 is amended by revising
the table in Section III of the note to
■
§ 1.80
*
*
*
*
(b) * * *
(8) * * *
Note to paragraph (b)(8) * * *
Section III. Non-Section 503
Forfeitures That Are Affected by the
Downward Adjustment Factors
*
*
*
*
*
Statutory amount
($)
Violation
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
202(c) Common Carrier Discrimination ...........................................
203(e) Common Carrier Tariffs ........................................................
205(b) Common Carrier Prescriptions .............................................
214(d) Common Carrier Line Extensions ........................................
219(b) Common Carrier Reports .....................................................
220(d) Common Carrier Records & Accounts .................................
223(b) Dial-a-Porn ............................................................................
227(e) Caller Identification ...............................................................
Sec.
Sec.
Sec.
Sec.
Sec.
364(a) Forfeitures (Ships) ................................................................
364(b) Forfeitures (Ships) ................................................................
386(a) Forfeitures (Ships) ................................................................
386(b) Forfeitures (Ships) ................................................................
634 Cable EEO ................................................................................
sradovich on DSK3GMQ082PROD with RULES
(9) Inflation adjustments to the
maximum forfeiture amount. (i)
Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015, Public Law 114–74 (129
Stat. 599–600), which amends the
Federal Civil Monetary Penalty Inflation
Adjustment Act of 1990, Public Law
101–410 (104 Stat. 890; 28 U.S.C. 2461
note), the statutory maximum amount of
a forfeiture penalty assessed under this
section shall be adjusted annually for
inflation by order published no later
than January 15 each year. Annual
inflation adjustments will be based on
the percentage (if any) by which the
CPI–U for October preceding the date of
the adjustment exceeds the prior year’s
CPI–U for October. The Office of
Management and Budget (OMB) will
issue adjustment rate guidance no later
than December 15 each year to adjust for
inflation in the CPI–U as of the most
recent October.
VerDate Sep<11>2014
17:47 Jan 23, 2017
Jkt 241001
Forfeiture proceedings.
*
$11,548, $577/day.
$11,548, $577/day.
$23,095.
$2,309/day.
$2,309/day.
$11,548/day.
$119,668/day.
$11,052/violation. $33,156/day for each day of continuing violation, up
to $1,105,241 for any single act or failure to act.
$9,623/day (owner).
$1,925 (vessel master).
$9,623/day (owner).
$1,925 (vessel master).
$853/day.
(ii) The application of the annual
inflation adjustment required by the
foregoing Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015 results in the following
adjusted statutory maximum forfeitures
authorized by the Communications Act:
Maximum
penalty after
2017 inflation
adjustment
U.S. Code citation
47 U.S.C. 202(c) ...................
47 U.S.C. 203(e) ..................
47
47
47
47
47
47
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
205(b)
214(d)
219(b)
220(d)
223(b)
227(e)
..................
..................
..................
..................
..................
..................
47 U.S.C. 362(a) ..................
PO 00000
Frm 00041
Fmt 4700
Sfmt 9990
$11,548
577
11,548
577
23,095
2,309
2,309
11,548
119,668
11,052
33,156
1,105,241
9,623
Maximum
penalty after
2017 inflation
adjustment
U.S. Code citation
47
47
47
47
U.S.C.
U.S.C.
U.S.C.
U.S.C.
362(b) ..................
386(a) ..................
386(b) ..................
503(b)(2)(A) .........
47 U.S.C. 503(b)(2)(B) .........
47 U.S.C. 503(b)(2)(C) .........
47 U.S.C. 503(b)(2)(D) .........
47 U.S.C. 503(b)(2)(F) .........
47 U.S.C. 507(a) ..................
47 U.S.C. 507(b) ..................
47 U.S.C. 554 .......................
*
*
*
*
1,925
9,623
1,925
48,114
481,147
192,459
1,924,589
389,305
3,593,585
19,246
144,344
110,524
1,105,241
1,906
279
853
*
[FR Doc. 2017–00365 Filed 1–23–17; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\24JAR1.SGM
24JAR1
]]>Agencies
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8170-8171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00365]
=======================================================================
-----------------------------------------------------------------------
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[DA 16-1453]
Annual Adjustment of Civil Monetary Penalties To Reflect
Inflation
AGENCY: Federal Communications Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015 Inflation Adjustment Act) requires
the Federal Communications Commission to amend its forfeiture penalty
rules to reflect annual adjustments for inflation in order to improve
their effectiveness and maintain their deterrent effect. The 2015
Inflation Adjustment Act provides that the new penalty levels shall
apply to penalties assessed after the effective date of the increase,
including when the penalties whose associated violation predate the
increase.
DATES: Effective January 24, 2017.
FOR FURTHER INFORMATION CONTACT: Celia Lewis, Enforcement Bureau, 202-
418-7456, or Gregory Haledjian, Enforcement Bureau, 202-418-7440.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order,
DA 16-1453, adopted and released on December 30, 2016. The document is
available for download at https://transition.fcc.gov/Daily_Releases/Daily_Business/2016/db1230/DA-16-1453A1.pdf. The complete text of this
document is also available for inspection and copying during normal
business hours in the FCC Reference Information Center, Portals II, 445
12th Street SW., Room CY-A257, Washington, DC 20554.
On November 2, 2015, President Obama signed into law the Bipartisan
Budget Act of 2015, which included, as Section 701 thereto, the 2015
Inflation Adjustment Act, which amended the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410), to improve the
effectiveness of civil monetary penalties and maintain their deterrent
effect. Under the act, agencies are required to make annual
inflationary adjustments by January 15 each year, beginning in 2017.
The adjustments are calculated pursuant to Office of Management and
Budget (OMB) guidance. OMB issued guidance on December 16, 2016, and
this Order follows that guidance. We therefore update the civil
monetary penalties set forth in the Commission's rules, to reflect an
annual inflation adjustment that derives from OMB's cost-of-living
multiplier of 1.01636. The cost-of-living adjustment is ``the
percentage (if any)'' by which the ``(A) Consumer Price Index for the
month of October preceding the date of the adjustment, exceeds (B) the
Consumer Price Index for the month of October 1 year before the month
of October referred to in subparagraph (A).''
This document does not contain new or modified information
collection requirements subject to the Paperwork Reduction Act of 1995
(PRA), Public Law 104-13. It does not contain any new or modified
information collection burden for small business concerns with fewer
than 25 employees, pursuant to the Small Business Paperwork Relief Act
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
The Enforcement Bureau will coordinate with the Commission's
Consumer & Governmental Affairs Bureau, Reference Information Center to
report this Order to Congress and the Government Accountability Office
pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).
List of Subjects in 47 CFR Part 1
Administrative practice and procedure, Penalties.
[[Page 8171]]
Federal Communications Commission.
Lisa S. Gelb,
Chief of Staff, Enforcement Bureau.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 1 as follows:
PART 1--PRACTICE AND PROCEDURE
0
1. The authority citation for part 1 is revised to read as follows:
Authority: 15 U.S.C. 79 et seq., 47 U.S.C. 151, 154(i) and (j),
155, 157, 160, 201, 225, 227, 303, 309, 301, 332, 1403, 1404, 1451,
1452, and 1455.
0
2. Section 1.80 is amended by revising the table in Section III of the
note to paragraph (b)(8) and revising paragraph (b)(9) to read as
follows:
Sec. 1.80 Forfeiture proceedings.
* * * * *
(b) * * *
(8) * * *
Note to paragraph (b)(8) * * *
Section III. Non-Section 503 Forfeitures That Are Affected by the
Downward Adjustment Factors
* * * * *
------------------------------------------------------------------------
Violation Statutory amount ($)
------------------------------------------------------------------------
Sec. 202(c) Common Carrier $11,548, $577/day.
Discrimination.
Sec. 203(e) Common Carrier Tariffs..... $11,548, $577/day.
Sec. 205(b) Common Carrier $23,095.
Prescriptions.
Sec. 214(d) Common Carrier Line $2,309/day.
Extensions.
Sec. 219(b) Common Carrier Reports..... $2,309/day.
Sec. 220(d) Common Carrier Records & $11,548/day.
Accounts.
Sec. 223(b) Dial-a-Porn................ $119,668/day.
Sec. 227(e) Caller Identification...... $11,052/violation. $33,156/day
for each day of continuing
violation, up to $1,105,241
for any single act or failure
to act.
Sec. 364(a) Forfeitures (Ships)........ $9,623/day (owner).
Sec. 364(b) Forfeitures (Ships)........ $1,925 (vessel master).
Sec. 386(a) Forfeitures (Ships)........ $9,623/day (owner).
Sec. 386(b) Forfeitures (Ships)........ $1,925 (vessel master).
Sec. 634 Cable EEO..................... $853/day.
------------------------------------------------------------------------
(9) Inflation adjustments to the maximum forfeiture amount. (i)
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114-74 (129 Stat. 599-600), which
amends the Federal Civil Monetary Penalty Inflation Adjustment Act of
1990, Public Law 101-410 (104 Stat. 890; 28 U.S.C. 2461 note), the
statutory maximum amount of a forfeiture penalty assessed under this
section shall be adjusted annually for inflation by order published no
later than January 15 each year. Annual inflation adjustments will be
based on the percentage (if any) by which the CPI-U for October
preceding the date of the adjustment exceeds the prior year's CPI-U for
October. The Office of Management and Budget (OMB) will issue
adjustment rate guidance no later than December 15 each year to adjust
for inflation in the CPI-U as of the most recent October.
(ii) The application of the annual inflation adjustment required by
the foregoing Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 results in the following adjusted statutory
maximum forfeitures authorized by the Communications Act:
------------------------------------------------------------------------
Maximum
penalty after
U.S. Code citation 2017 inflation
adjustment
------------------------------------------------------------------------
47 U.S.C. 202(c)........................................ $11,548
577
47 U.S.C. 203(e)........................................ 11,548
577
47 U.S.C. 205(b)........................................ 23,095
47 U.S.C. 214(d)........................................ 2,309
47 U.S.C. 219(b)........................................ 2,309
47 U.S.C. 220(d)........................................ 11,548
47 U.S.C. 223(b)........................................ 119,668
47 U.S.C. 227(e)........................................ 11,052
33,156
1,105,241
47 U.S.C. 362(a)........................................ 9,623
47 U.S.C. 362(b)........................................ 1,925
47 U.S.C. 386(a)........................................ 9,623
47 U.S.C. 386(b)........................................ 1,925
47 U.S.C. 503(b)(2)(A).................................. 48,114
481,147
47 U.S.C. 503(b)(2)(B).................................. 192,459
1,924,589
47 U.S.C. 503(b)(2)(C).................................. 389,305
3,593,585
47 U.S.C. 503(b)(2)(D).................................. 19,246
144,344
47 U.S.C. 503(b)(2)(F).................................. 110,524
1,105,241
47 U.S.C. 507(a)........................................ 1,906
47 U.S.C. 507(b)........................................ 279
47 U.S.C. 554........................................... 853
------------------------------------------------------------------------
* * * * *
[FR Doc. 2017-00365 Filed 1-23-17; 8:45 am]
BILLING CODE 6712-01-P
