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Subpart H : Civil Monetary Penalty In.ation Adjustment
FAR 13.301 : Scope and purpose.
(a)
This subpart provides a mechanism for the regular adjustment for in.ation of civil monetary penalties in conformity with the Federal Civil Penalties In.ation Ad-justmentAct of1990,28U.S.C.2461(note), as amendedby theDebtCollection Improvement Act of 1996, Public Law 104-134, April 26, 1996, in order to main-tain thedeterrent e.ect of civil monetarypenalties andtopromote compliance with the law. This subpart also sets out the current adjusted maximum civil monetary penalties or range of minimum and maximum civil monetary penalties for each statutory civilpenalty subjecttotheFAA’sjurisdiction.
(b)
Each adjustmenttothe maximum civil monetarypenalty orthe range of minimum and maximum civil monetarypenalties, as applicable, madein accordance with this subpart appliesprospectivelyfrom thedateitbecomes e.ective to actionsinitiated under this part, notwithstanding references to a speci.c maximum civil monetary penalty or range of minimum and maximum civil monetary penalties contained elsewhere in this part.
FAR 13.303 : De.nitions.
(a)
Civil Monetary Penalty means any penalty, .ne, or other sanction that :
(1)
Isfor a speci.c monetaryamount asprovidedbyFederallaw orhas a maximum amount provided by Federal law;
(2)
Is assessed or enforced by the FAA pursuant to Federal law; and
(3)
Is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.
(b)
Consumer Price Index means the Consumer Price Index for all urban consumers published by the Department of Labor.
FAR 13.305 : Cost of living adjustments of civil monetary penalties.
(a)
Except for the limitation to the initial adjustment to statutory maximum civil mo-netary penalties or range of minimum and maximum civil monetary penalties set forthinparagraph(c) ofthis section,thein.ation adjustment underthis subpart is determined by increasing the maximum civil monetary penalty or range of mi-nimum and maximum civil monetary penalty for each civil monetary penalty by thecost-of-living adjustment.Anyincreasedetermined underparagraph(a) of this section is rounded to the nearest :
(1)
Multiple of $10 in the case of penalties less than or equal to $100;
(2)
Multiple of $100 in the case of penalties greater than $100 but less than or equal to $1,000;
(3)
Multiple of $1,000inthe caseofpenaltiesgreaterthan $1,000butlessthan or equal to $10,000;
(4)
Multiple of $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000;
(5)
Multiple of $10,000in the case ofpenaltiesgreater than $100,000butless than or equal to $200,000; and
(6)
Multiple of $25,000 in the case of penalties greater than $200,000.
(b)
Forpurposesofparagraph(a) ofthissection,theterm ”cost-of-living adjustment” meansthepercentage(if any)foreach civil monetarypenaltyby which theConsu-merPriceIndexforthe month ofJune ofthe calendaryearprecedingthe adjustment exceeds the Consumer Price Index for the month of June of the calendar year in which the amount of such civil monetarypenalty waslastset oradjustedpursuant to law.
(c)
Limitation on initial adjustment. The initial adjustment of maximum civil penalty or range of minimum and maximum civil monetary penalties made pursuant to this subpart does not exceed 10 percent of the statutory maximum civil penalty before an adjustment under this subpart is made. This limitation applies only to the initial adjustment, e.ective on January 21, 1997.
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