§ 503. — Forfeitures.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 47USC503]
TITLE 47--TELEGRAPHS, TELEPHONES, AND RADIOTELEGRAPHS
CHAPTER 5--WIRE OR RADIO COMMUNICATION
SUBCHAPTER V--PENAL PROVISIONS; FORFEITURES
Sec. 503. Forfeitures
(a) Rebates and offsets
Any person who shall deliver messages for interstate or foreign
transmission to any carrier, or for whom as sender or receiver, any such
carrier shall transmit any interstate or foreign wire or radio
communication, who shall knowingly by employee, agent, officer, or
otherwise, directly or indirectly, by or through any means or device
whatsoever, receive or accept from such common carrier any sum of money
or any other valuable consideration as a rebate or offset against the
regular charges for transmission of such messages as fixed by the
schedules of charges provided for in this chapter, shall in addition to
any other penalty provided by this chapter forfeit to the United States
a sum of money three times the amount of money so received or accepted
and three times the value of any other consideration so received or
accepted, to be ascertained by the trial court; and in the trial of said
action all such rebates or other considerations so received or accepted
for a period of six years prior to the commencement of the action, may
be included therein, and the amount recovered shall be three times the
total amount of money, or three times the total value of such
consideration, so received or accepted, or both, as the case may be.
(b) Activities constituting violations authorizing imposition of
forfeiture penalty; amount of penalty; procedures applicable;
persons subject to penalty; liability exemption period
(1) Any person who is determined by the Commission, in accordance
with paragraph (3) or (4) of this subsection, to have--
(A) willfully or repeatedly failed to comply substantially with
the terms and conditions of any license, permit, certificate, or
other instrument or authorization issued by the Commission;
(B) willfully or repeatedly failed to comply with any of the
provisions of this chapter or of any rule, regulation, or order
issued by the Commission under this chapter or under any treaty,
convention, or other agreement to which the United States is a party
and which is binding upon the United States;
(C) violated any provision of section 317(c) or 509(a) of this
title; or
(D) violated any provision of section 1304, 1343, or 1464 of
title 18;
shall be liable to the United States for a forfeiture penalty. A
forfeiture penalty under this subsection shall be in addition to any
other penalty provided for by this chapter; except that this subsection
shall not apply to any conduct which is subject to forfeiture under
subchapter II of this chapter, part II or III of subchapter III of this
chapter, or section 507 of this title.
(2)(A) If the violator is (i) a broadcast station licensee or
permittee, (ii) a cable television operator, or (iii) an applicant for
any broadcast or cable television operator license, permit, certificate,
or other instrument or authorization issued by the Commission, the
amount of any forfeiture penalty determined under this section shall not
exceed $25,000 for each violation or each day of a continuing violation,
except that the amount assessed for any continuing violation shall not
exceed a total of $250,000 for any single act or failure to act
described in paragraph (1) of this subsection.
(B) If the violator is a common carrier subject to the provisions of
this chapter or an applicant for any common carrier license, permit,
certificate, or other instrument of authorization issued by the
Commission, the amount of any forfeiture penalty determined under this
subsection shall not exceed $100,000 for each violation or each day of a
continuing violation, except that the amount assessed for any continuing
violation shall not exceed a total of $1,000,000 for any single act or
failure to act described in paragraph (1) of this subsection.
(C) In any case not covered in subparagraph (A) or (B), the amount
of any forfeiture penalty determined under this subsection shall not
exceed $10,000 for each violation or each day of a continuing violation,
except that the amount assessed for any continuing violation shall not
exceed a total of $75,000 for any single act or failure to act described
in paragraph (1) of this subsection.
(D) The amount of such forfeiture penalty shall be assessed by the
Commission, or its designee, by written notice. In determining the
amount of such a forfeiture penalty, the Commission or its designee
shall take into account the nature, circumstances, extent, and gravity
of the violation and, with respect to the violator, the degree of
culpability, any history of prior offenses, ability to pay, and such
other matters as justice may require.
(3)(A) At the discretion of the Commission, a forfeiture penalty may
be determined against a person under this subsection after notice and an
opportunity for a hearing before the Commission or an administrative law
judge thereof in accordance with section 554 of title 5. Any person
against whom a forfeiture penalty is determined under this paragraph may
obtain review thereof pursuant to section 402(a) of this title.
(B) If any person fails to pay an assessment of a forfeiture penalty
determined under subparagraph (A) of this paragraph, after it has become
a final and unappealable order or after the appropriate court has
entered final judgment in favor of the Commission, the Commission shall
refer the matter to the Attorney General of the United States, who shall
recover the amount assessed in any appropriate district court of the
United States. In such action, the validity and appropriateness of the
final order imposing the forfeiture penalty shall not be subject to
review.
(4) Except as provided in paragraph (3) of this subsection, no
forfeiture penalty shall be imposed under this subsection against any
person unless and until--
(A) the Commission issues a notice of apparent liability, in
writing, with respect to such person;
(B) such notice has been received by such person, or until the
Commission has sent such notice to the last known address of such
person, by registered or certified mail; and
(C) such person is granted an opportunity to show, in writing,
within such reasonable period of time as the Commission prescribes
by rule or regulation, why no such forfeiture penalty should be
imposed.
Such a notice shall (i) identify each specific provision, term, and
condition of any Act, rule, regulation, order, treaty, convention, or
other agreement, license, permit, certificate, instrument, or
authorization which such person apparently violated or with which such
person apparently failed to comply; (ii) set forth the nature of the act
or omission charged against such person and the facts upon which such
charge is based; and (iii) state the date on which such conduct
occurred. Any forfeiture penalty determined under this paragraph shall
be recoverable pursuant to section 504(a) of this title.
(5) No forfeiture liability shall be determined under this
subsection against any person, if such person does not hold a license,
permit, certificate, or other authorization issued by the Commission,
and if such person is not an applicant for a license, permit,
certificate, or other authorization issued by the Commission, unless,
prior to the notice required by paragraph (3) of this subsection or the
notice of apparent liability required by paragraph (4) of this
subsection, such person (A) is sent a citation of the violation charged;
(B) is given a reasonable opportunity for a personal interview with an
official of the Commission, at the field office of the Commission which
is nearest to such person's place of residence; and (C) subsequently
engages in conduct of the type described in such citation. The
provisions of this paragraph shall not apply, however, if the person
involved is engaging in activities for which a license, permit,
certificate, or other authorization is required, or is a cable
television system operator, if the person involved is transmitting on
frequencies assigned for use in a service in which individual station
operation is authorized by rule pursuant to section 307(e) of this
title, or in the case of violations of section 303(q) of this title, if
the person involved is a nonlicensee tower owner who has previously
received notice of the obligations imposed by section 303(q) of this
title from the Commission or the permittee or licensee who uses that
tower. Whenever the requirements of this paragraph are satisfied with
respect to a particular person, such person shall not be entitled to
receive any additional citation of the violation charged, with respect
to any conduct of the type described in the citation sent under this
paragraph.
(6) No forfeiture penalty shall be determined or imposed against any
person under this subsection if--
(A) such person holds a broadcast station license issued under
subchapter III of this chapter and if the violation charged
occurred--
(i) more than 1 year prior to the date of issuance of the
required notice or notice of apparent liability; or
(ii) prior to the date of commencement of the current term
of such license,
whichever is earlier; or
(B) such person does not hold a broadcast station license issued
under subchapter III of this chapter and if the violation charged
occurred more than 1 year prior to the date of issuance of the
required notice or notice of apparent liability.
For purposes of this paragraph, ``date of commencement of the current
term of such license'' means the date of commencement of the last term
of license for which the licensee has been granted a license by the
Commission. A separate license term shall not be deemed to have
commenced as a result of continuing a license in effect under section
307(c) of this title pending decision on an application for renewal of
the license.
(June 19, 1934, ch. 652, title V, Sec. 503, 48 Stat. 1101; Pub. L. 86-
752, Sec. 7(a), Sept. 13, 1960, 74 Stat. 894; Pub. L. 95-234, Sec. 2,
Feb. 21, 1978, 92 Stat. 33; Pub. L. 96-507, Sec. 2(b), Dec. 8, 1980, 94
Stat. 2747; Pub. L. 97-259, title I, Sec. 124, Sept. 13, 1982, 96 Stat.
1098; Pub. L. 98-214, Sec. 4(b), Dec. 8, 1983, 97 Stat. 1468; Pub. L.
101-239, title III, Sec. 3002(i), Dec. 19, 1989, 103 Stat. 2131; Pub. L.
101-396, Sec. 10, Sept. 28, 1990, 104 Stat. 851; Pub. L. 102-538, title
II, Secs. 206, 210(b), Oct. 27, 1992, 106 Stat. 3543, 3544.)
References in Text
Parts II and III of subchapter III of this chapter, referred to in
subsec. (b)(1), are classified to sections 351 et seq. and 381 et seq.,
respectively, of this title.
Amendments
1992--Subsec. (b)(5). Pub. L. 102-538, Sec. 210(b), substituted
``system operator,'' for ``system operator or'' and inserted ``, or in
the case of violations of section 303(q) of this title, if the person
involved is a nonlicensee tower owner who has previously received notice
of the obligations imposed by section 303(q) of this title from the
Commission or the permittee or licensee who uses that tower'' after
``section 307(e) of this title''.
Subsec. (b)(6). Pub. L. 102-538, Sec. 206(2), inserted at end ``For
purposes of this paragraph, `date of commencement of the current term of
such license' means the date of commencement of the last term of license
for which the licensee has been granted a license by the Commission. A
separate license term shall not be deemed to have commenced as a result
of continuing a license in effect under section 307(c) of this title
pending decision on an application for renewal of the license.''
Subsec. (b)(6)(A). Pub. L. 102-538, Sec. 206(1), struck out ``so
long as such violation occurred within 3 years prior to the date of
issuance of such required notice'' after ``whichever is earlier''.
1990--Subsec. (b)(5). Pub. L. 101-396 inserted ``and if such person
is not an applicant for a license, permit, certificate, or other
authorization issued by the Commission,'' before ``unless, prior''.
1989--Subsec. (b)(1), (2). Pub. L. 101-239 inserted ``(1)'' before
``Any person who'' in first par., added par. (2), and struck out former
par. (2) thereby resulting in increasing penalty if violator is a common
carrier from $20,000 to $100,000 per day to a maximum of $1,000,000 per
act and penalty if violator is a broadcast station licensee or cable
television operator from $20,000 to $25,000 per day to a maximum of
$250,000 per act, making such penalty also applicable to television
operator applicants, and increasing penalty in all other cases from
$5,000 to $10,000 per day to a maximum of $75,000.
1983--Subsec. (b)(5). Pub. L. 98-214 inserted ``or if the person
involved is transmitting on frequencies assigned for use in a service in
which individual station operation is authorized by rule pursuant to
section 307(e) of this title''.
1982--Subsec. (b)(5). Pub. L. 97-259 inserted ``, or is a cable
television system operator'' after ``other authorization is required''.
1980--Subsec. (b). Pub. L. 96-507 conformed references in first
paragraph to sections 509(a) and 507 of this title to reflect
renumbering of those sections which required no change in text.
1978--Subsec. (b). Pub. L. 95-234 substituted provisions relating to
activities making persons liable for forfeiture penalties, amounts of
forfeiture penalties, procedures applicable for imposition of forfeiture
penalties, and exemptions from liability from imposition of forfeiture
penalties, for provisions relating to activities of licensees or
permittees constituting violations and authorizing forfeiture to the
United States of a sum not to exceed $1,000 for each separate offense,
procedures applicable for imposition of forfeiture liability, and
limitations on imposition of forfeiture liability.
1960--Pub. L. 86-752 amended section catchline substituting
``Forfeitures'' for ``Rebates and offsets, forfeitures,'', designated
existing provisions as subsec. (a), and added subsec. (b).
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-234 effective on thirtieth day after Feb.
21, 1978, except that the provisions of subsec. (b) of this section, as
in effect on Feb. 21, 1978, shall continue to constitute the applicable
law with respect to any act or omission which occurs prior to such
thirtieth day, see section 7 of Pub. L. 95-234, set out as a note under
section 152 of this title.
Section Referred to in Other Sections
This section is referred to in sections 339, 504, 554 of this title.
