(a) The inflation adjustment under Sec. 506.3 shall be determined by increasing the maximum civil monetary penalty for each civil monetary penalty by the cost-of-living adjustment. Any increase determined under this subsection shall be rounded to the nearest:
(1) Multiple of $10 in the case of penalties less than or equal to $100;
(2) Multiple of $100 in the case of penalties greater than $100 but less than or equal to $1,000;
(3) Multiple of $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000;
(4) Multiple of $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000;
(5) Multiple of $10,000 in the case of penalties greater than $100,000 but less than or equal to $200,000; and
(6) Multiple of $25,000 in the case of penalties greater than $200,000.
(b) For purposes of paragraph (a) of this section, the term `cost-of-living adjustment' means the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment, exceeds the Consumer Price Index for the month of June of the calendar year in which the amount of such civil monetary penalty was last set or adjusted pursuant to law.
(c) Limitation on initial adjustment. The first adjustment of civil monetary penalty pursuant to Sec. 506.3 may not exceed 10 percent of such penalty.
(d) Inflation adjustment. Maximum Civil Monetary Penalties within the jurisdiction of the Federal Maritime Commission are adjusted for inflation as follows: ----------------------------------------------------------------------------------------------------------------
Current
maximum New adjusted
United States Code citation Civil Monetary Penalty description penalty maximum
amount penalty amount----------------------------------------------------------------------------------------------------------------46 U.S.C. 42304............................ Adverse impact on U.S. carriers by 1,500,000 1,600,000
foreign shipping practices.46 U.S.C. 41107(a)......................... Knowing and Willful violation/Shipping 40,000 45,000
Act of 1984, or Commission regulation
or order.46 U.S.C. 41107(b)......................... Violation of Shipping Act of 1984, 8,000 9,000
Commission regulation or order, not
knowing and willful.46 U.S.C. 41108(b)......................... Operating in foreign commerce after 75,000 80,000
tariff suspension.46 U.S.C. 42104............................ Failure to provide required reports, 8,000 $9,000
etc./Merchant Marine Act of 1920.46 U.S.C. 42106............................ Adverse shipping conditions/Merchant 1,500,000 1,600,000
Marine Act of 1920.46 U.S.C. 42108............................ Operating after tariff or service 75,000 80,000
contract suspension/Merchant Marine
Act of 1920.46 U.S.C. 44102............................ Failure to establish financial 8,000 9,000
responsibility for non-performance of 300 \3\ 300
transportation.46 U.S.C. 44103............................ Failure to establish financial 8,000 9,000
responsibility for death or injury. 300 \4\ 30031 U.S.C. 3802(a)(1)....................... Program Fraud Civil Remedies Act/makes 8,000 9,000
false claim.31 U.S.C. 3802(a)(2)....................... Program Fraud Civil Remedies Act/ 8,000 9,000
giving false statement.---------------------------------------------------------------------------------------------------------------- [61 FR 52705, Oct. 8, 1996, as amended at 64 FR 23550, May 3, 1999; 65 FR 49741, Aug. 15, 2000; 74 FR 38115, July 31, 2009; 76 FR 74720, Dec. 1, 2011; 79 FR 37663, July 2, 2014]