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:

   Table 1 to Paragraph (d)

   United States Code citation	Civil monetary penalty description	Maximum penalty as of January 15, 2023	Maximum penalty as of January 15, 2024
   46 U.S.C. 42304	Adverse impact on U.S. carriers by foreign shipping practices	$2,479,282	$2,559,636
   46 U.S.C. 41107(a)	Knowing and Willful violation/Shipping Act of 1984, or Commission regulation or order	70,752	73,045
   46 U.S.C. 41107(a)	Violation of Shipping Act of 1984, Commission regulation or order, not knowing and willful	14,149	14,608
   46 U.S.C. 41108(b)	Operating in foreign commerce after tariff suspension	141,506	146,092
   46 U.S.C. 42104	Failure to provide required reports, etc./Merchant Marine Act of 1920	11,162	11,524
   46 U.S.C. 42106	Adverse shipping conditions/Merchant Marine Act of 1920	2,232,281	2,304,629
   46 U.S.C. 42108	Operating after tariff or service contract suspension/Merchant Marine Act of 1920	111,614	115,231
   46 U.S.C. 44102, 44104	Failure to establish financial responsibility for non-performance of transportation	28,194 941	29,108 971
   46 U.S.C. 44103, 44104	Failure to establish financial responsibility for death or injury	28,194 941	29,108 971
   31 U.S.C. 3802(a)(1)	Program Fraud Civil Remedies Act/making false claim	13,508	13,946
   31 U.S.C. 3802(a)(2)	Program Fraud Civil Remedies Act/giving false statement	13,508	13,946

[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]