PART 506—CIVIL MONETARY PENALTY INFLATION ADJUSTMENT Authority: 28 U.S.C. 2461. Source: 61 FR 52705, Oct. 8, 1996, unless otherwise noted. § 506.1 Scope and purpose. The purpose of this part is to establish a mechanism for the regular adjustment for inflation of monetary penalties and to adjust such penalties in conformity with the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2641 note) as originally amended by the Debt Collection Improvement Act of 1996, Public Law 104-134, April 26, 1996, and currently amended by the Federal Civil Penalties Inflation Act Adjustment Improvements Act of 2015, Public Law 114-74, in order to maintain the deterrent effect of civil monetary penalties and to promote compliance with the law. [81 FR 42553, June 30, 2016] § 506.2 Definitions. (a) Commission (b) Civil Monetary Penalty (1)(i) Is for a specific monetary amount as provided by Federal law; or (ii) Has a maximum amount provided by Federal law; (2) Is assessed or enforced by the Commission pursuant to Federal law; and (3) Is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal Courts. (c) Consumer Price Index § 506.3 Civil monetary penalty inflation adjustment. The Commission shall, not later than August 1, 2016, and at least every year thereafter— (a) By regulation adjust each civil monetary penalty provided by law within the jurisdiction of the Commission by the inflation adjustment described in § 506.4; and (b) Publish each such regulation in the Federal Register. [61 FR 52705, Oct. 8, 1996, as amended at 81 FR 42553, June 30, 2016] § 506.4 Cost of living adjustments of civil monetary penalties. (a) The inflation adjustment under § 506.3 will initially be determined by increasing the maximum civil monetary penalty for each civil monetary penalty by the initial cost-of-living adjustment. The inflation adjustment will subsequently 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 section shall be rounded to the nearest multiple of $1. (b) Inflation adjustment. (c) Initial adjustment. (d) Inflation adjustment. Table 1 to Paragraph ( d United States Code citation Civil monetary penalty description Maximum Maximum 46 U.S.C. 42304 Adverse impact on U.S. carriers by foreign shipping practices $2,626,135 $2,626,135 46 U.S.C. 41107(a) Knowing and Willful violation/Shipping Act of 1984, or Commission regulation or order 74,943 74,943 46 U.S.C. 41107(a) Violation of Shipping Act of 1984, Commission regulation or order, not knowing and willful 14,988 14,988 46 U.S.C. 41108(b) Operating in foreign commerce after tariff suspension 149,887 149,887 46 U.S.C. 42104 Failure to provide required reports, etc./Merchant Marine Act of 1920 11,823 11,823 46 U.S.C. 42106 Adverse shipping conditions/Merchant Marine Act of 1920 2,364,503 2,364,503 46 U.S.C. 42108 Operating after tariff or service contract suspension/Merchant Marine Act of 1920 118,225 118,225 46 U.S.C. 44102, 44104 Failure to establish financial responsibility for non-performance of transportation 29,864 29,864 46 U.S.C. 44103, 44104 Failure to establish financial responsibility for death or injury 29,864 29,864 31 U.S.C. 3802(a)(1) Program Fraud Civil Remedies Act/making false claim 14,308 14,308 31 U.S.C. 3802(a)(2) Program Fraud Civil Remedies Act/giving false statement 14,308 14,308 [81 FR 42553, June 30, 2016, as amended at 82 FR 10720, Feb. 15, 2017; 83 FR 1305, Jan. 11, 2018; 84 FR 2460, Feb. 7, 2019; 85 FR 1761, Jan. 13, 2020; 86 FR 2561, Jan. 13, 2021; 87 FR 2351, Jan. 14, 2022; 88 FR 1518, Jan. 11, 2023; 89 FR 1465, Jan. 10, 2024; 90 FR 3040, Jan. 14, 2025; 91 FR 32889, June 2, 2026] § 506.5 Application of increase to violations. Any adjustment in a civil monetary penalty under this part shall apply only to civil monetary penalties, including those whose associated violation predated such increase, which are assessed after the date the adjustment takes effect. [81 FR 42554, June 30, 2016]