Commission adjusts civil penalties for 2017

The Commission has published its updated civil penalty amounts for 2017, pursuant to a federal law that requires federal agencies to adjust civil penalties for inflation each year, beginning in 2017. The updated amounts were published in the Federal Register on February 2.

Background

As required by the Federal Civil Penalties Inflation Adjustment Act of 1990, the Commission is adjusting the civil monetary penalties that are contained in the statutes it administers. Last year, the Commission imposed a one-time catch-up adjustment to its penalties. Beginning in 2017, however, every federal agency must adjust these penalties annually for inflation.

The federal campaign finance laws administered by the Commission include two types of civil monetary penalties to be adjusted for inflation each year:

• Penalties that are either negotiated by the Commission or imposed by a court for violations of the federal laws administered by the Commission. See 11 CFR 111.24.
  
• Penalties set under the Administrative Fine Program for late filing or non-filing of certain reports required by the Federal Election Campaign Act. See 11 CFR 111.43 and 111.44.
  

2017 adjustments

To calculate the adjustments for inflation, the Commission must apply the cost-of-living adjustment (COLA) as directed by the Office of Management and Budget. The COLA ratio for 2017 is 0.01636, or 1.636%; thus, to calculate the new penalties, the Commission must multiply the most recent amounts listed in its regulations by 1.01636.

As adjusted, the potential fine amounts listed under 11 CFR 111.24 for civil violations of federal campaign finance law have increased to range from $5,701 to $66,666 (from the previous range of $5,609 to $65,593). (Note that the amounts listed under this regulation are included in a formula used for negotiations and court rulings, and may not be the final amounts that may be negotiated or imposed.)

In regard to administrative fines imposed for late or non-filing of FEC reports, the table of penalty formulas listed in FEC regulations at 11 CFR 111.43 has been adjusted for the COLA, as has the base amount used in the calculation formula for late or non-filed 48-hour notices listed in 11 CFR 111.44(a)(1).

The adjustments were published at 82 Fed. Reg. 8936 on February 2, 2017, and take effect immediately. The increased penalty amounts will apply to penalties that are assessed after this date, even if the associated violation predated the increase.

Resources

• Federal Register notice (February 2, 2017) [PDF]
  
• Administrative fine program
  
• Enforcement matters