§ 1503.305 - Cost of living adjustments of civil monetary penalties.

(a) Adjustment determination. Except for the limitation to the initial adjustment to statutory maximum civil monetary penalties or range of minimum and maximum civil monetary penalties set forth in paragraph (c) of this section, the inflation adjustment under this subpart is determined by increasing the maximum civil monetary penalty or range of minimum and maximum civil monetary penalty for each civil monetary penalty by the cost-of-living adjustment. Any increase determined under this paragraph (a) is 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) Definition. 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 initial adjustment of maximum civil penalty or range of minimum and maximum civil monetary penalties made pursuant to this subpart does not exceed 10 percent of the statutory maximum civil penalty before an adjustment under this subpart is made. This limitation applies only to the initial adjustment, effective on January 21, 1997.

(d) Inflation adjustment. Minimum and maximum civil monetary penalties within the jurisdiction of the TSA are adjusted for inflation as follows:

Minimum and Maximum Civil Penalties—Adjusted for Inflation, Effective March 13, 2002United States Code citationCivil monetary penalty descriptionMinimum penaltyNew adjusted minimum penalty amountMaximum penalty amount when last set or adjusted pursuant to lawNew or adjusted maximum penalty amount49 U.S.C. 46301(a)(1)Violations of statutory provisions listed in 49 U.S.C. 46301(a)(1), regulations prescribed, or orders issued under those provisionsN/AN/A$1,100 per violation, adjusted 1/21/97$1,100 per violation, adjusted 1/21/97.49 U.S.C. 46301(a)(2)Violations of statutory provisions listed in 49 U.S.C. 46301(a)(2), regulations prescribed, or orders issued under those provisions by a person operating an aircraft for the transportation of passengers or property for compensationN/AN/A$11,000 per violation, adjusted 1/21/97$11,000 per violation, adjusted 1/21/97.