1. (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.
2. (b) Inflation adjustment. 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 October preceding the adjustment exceeds the Consumer Price Index for the month of October 1 year before the month of October preceding the adjustment.
3. (c) Initial adjustment. For purposes of paragraph (a) of this section, the term `initial cost-of-living-adjustment' means the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for the month of October, 2015 exceeds the Consumer Price Index for the month of October of the calendar year during which the amount of such civil monetary penalty was established or adjusted under a provision of law of civil monetary penalty. The initial cost-of-living adjustment may not exceed 150 percent of such penalty on November 2, 2015, the date of the enactment of the Federal Civil Penalties Inflation Act Adjustment Improvements Act of 2015.

4. (d) Inflation adjustment. Maximum Civil Monetary Penalties within the jurisdiction of the Federal Maritime Commission are adjusted for inflation as follows:

   United States code citation	Civil monetary penalty description	Maximum penalty amount prior to January 15, 2017	Maximum penalty as of January 15, 2017
   46 U.S.C. 42304	Adverse impact on U.S. carriers by foreign shipping practices	1,978,690	2,011,061
   46 U.S.C. 41107(a)	Knowing and Willful violation/Shipping Act of 1984, or Commission regulation or order	56,467	57,391
   46 U.S.C. 41107(b)	Violation of Shipping Act of 1984, Commission regulation or order, not knowing and willful	11,293	11,478
   46 U.S.C. 41108(b)	Operating in foreign commerce after tariff suspension	112,934	114,782
   46 U.S.C. 42104	Failure to provide required reports, etc./Merchant Marine Act of 1920	8,908	9,054
   46 U.S.C. 42106	Adverse shipping conditions/Merchant Marine Act of 1920	1,781,560	1,810,706
   46 U.S.C. 42108	Operating after tariff or service contract suspension/Merchant Marine Act of 1920	89,078	90,535
   46 U.S.C. 44102	Failure to establish financial responsibility for non-performance of transportation	22,500 750	22,868 762
   46 U.S.C. 44103	Failure to establish financial responsibility for death or injury	22,500 750	22,868 762
   31 U.S.C. 3802(a)(1)	Program Fraud Civil Remedies Act/makes false claim	10,781	10,957
   31 U.S.C. 3802(a)(2)	Program Fraud Civil Remedies Act/giving false statement	10,781	10,957

[81 FR 42553, June 30, 2016, as amended at 82 FR 10720, Feb. 15, 2017]