NEWS
   
   Report No. GN 97-2    GENERAL ACTION   January 7, 1997
        
   
   FCC AMENDS DEBT COLLECTION INFLATION ADJUSTMENT RULES
                                    
   
        The Commission amended its rules by adding a new
subsection to its
   monetary forfeiture provisions that incorporates the inflation
adjustment requirements
   contained in the Debt Collection Improvement Act.
   
        The Debt Collection Improvement Act of 1996 was enacted
on April 26,
   1996, and amended the Federal Civil Penalties Inflation
Adjustment Act of 1990.  It
   requires all federal agencies to adjust their civil monetary
penalties or statutory
   maxima for inflation no later than 180 days after the date of
enactment of the Debt
   Collection Improvement Act, and at least once every four years
thereafter.  The Act
   prescribes, however, that the adjustments due to inflation
apply only to the violations
   that occur after the effective date of the Act (October 23,
1996). The Act also
   prescribes that the inflation adjustment, calculated based on
the formula outlined in
   the amendment, cannot exceed 10 percent of the statutory
maximum amount.
   
        Action by the Commission January 3, 1997, by Order (FCC
97-2). Chairman
   Hundt, Commissioners Quello, Ness and Chong.
   
   
   -  FCC  -
                                     
   
        News Media Contact:  Meribeth McCarrick at (202)
418-0500.
        Compliance and Information Bureau Contact:  Douglas
Cooper at 
        (202) 418-1167.