[Federal Register Volume 61, Number 246 (Friday, December 20, 1996)]
[Rules and Regulations]
[Pages 67444-67446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32258]
[[Page 67443]]
_______________________________________________________________________
Part VI
Department of Transportation
_______________________________________________________________________
Federal Aviation Administration
_______________________________________________________________________
14 CFR Part 13
Inflation Adjustment of Civil Monetary Penalties; Final Rule
Federal Register / Vol. 61, No. 246 / Friday, December 20, 1996 /
Rules and Regulations
[[Page 67444]]
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 13
[Docket No. 28762; Amdt. No. 13-28]
RIN 2105-AC63
Inflation Adjustment of Civil Monetary Penalties
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Final rule.
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SUMMARY: This final rule implements the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Debt Collection
Improvement Act of 1996. The rule adjusts for inflation the amount of
each statutory civil penalty subject to the Federal Aviation
Administration's jurisdiction in accordance with the requirements of
the Act, as amended.
EFFECTIVE DATE: This final rule is effective January 21, 1997.
FOR FURTHER INFORMATION CONTACT:
Joyce Redos, Attorney, Policy and Evaluations Branch, AGC-320, Office
of Chief Counsel, Federal Aviation Administration, 800 Independence
Avenue, SW, Washington, DC 20591, (202) 267-7158.
SUPPLEMENTARY INFORMATION:
Background
The Federal Civil Penalties Inflation Adjustment Act of 1990
(``1990 Act''), Public Law (Pub. L.) 101-410, 194 Stat. 890, 28 U.S.C.
2461 note, as amended by the Debt Collection Improvement Act of 1996
(``Act''), Pub. L. 104-134, April 26, 1996, requires the adjustment of
civil monetary penalties (CMP) for inflation. This adjustment is
intended to ensure that CMPs maintain their deterrent value. The Act
requires that not later than 180 days after its enactment, which is
October 23, 1996, and at least once every 4 years thereafter, the head
of each agency shall, by regulation published in the Federal Register,
adjust each CMP within its jurisdiction by the inflation adjustment
described in the 1990 Act. The inflation adjustment under the Act is to
be determined by increasing the maximum CMP by the cost-of-living
adjustment (COLA), rounded off as set forth in section 5(a) of the 1990
Act. The COLA is the percentage (if any) for each CMP by which the
Consumer Price Index (``CPI'') \1\ for the month of June of the
calendar year preceding the adjustment (i.e., June 1995 for this
initial adjustment) exceeds the CPI for the month of June of the
calendar year in which the amount of such CMP was last set or adjusted
pursuant to law. The first adjustment to a CMP may not exceed 10
percent of such penalty.
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\1\ CPI is defined as the CPI for all urban consumers published
annually by the Department of Labor.
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Any increased penalties apply only to violations that occur after
the date on which the increase takes effect.
A typical example of an inflation adjustment of a CMP is as
follows:
Section 5123 of Title 49, United States Code (the Federal Hazardous
Materials Transportation Law), imposes a minimum $250 and a maximum
$25,000 penalty for a knowing violation of Chapter 51 or a regulation
prescribed or order issued thereunder. The penalty was set in 1990. The
CPI for June 1990 was 389.1. The CPI for June 1995 is 456.7. The
inflation factor, therefore, is 456.7/389.1, or 1.17. The minimum
penalty amount would not be changed after increase and statutory
rounding. However, the maximum penalty amount after increase and
statutory rounding would be $30,000 (1.17 x $25,000). The new maximum
penalty amount after applying the 10% limit on an initial increase is
$27,500.
A similar calculation was done with respect to each CMP subject to
the jurisdiction of the Federal Aviation Administration (FAA). In
compliance with the Act, the FAA is hereby amending its regulations by
creating a new subpart H in 14 CFR part 13, which will be entitled
Civil Monetary Penalty Inflation Adjustment.
Waiver of Notice of Proposed Rulemaking
The Administrative Procedure Act (APA), 5 U.S.C. 553, sets forth
procedures for notice and public comment rulemaking. The APA also
provides an exception from notice and document procedures when an
agency finds good cause for dispensing with those procedures on the
basis that they are impracticable, unnecessary or contrary to the
public interest. The FAA has determined that under 5 U.S.C. 553, good
cause exists for dispensing with the notice of proposed rulemaking and
public comment procedures for this rule. Specifically, this rulemaking
comports, and is consistent, with the statutory authority set forth in
the Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended by the Debt Collection Improvement Act of 1996, with no issues
of policy discretion. Notice and an opportunity for public comment are
not necessary prior to issuance of this final rule because it
implements a definitive statutory formula mandated by the Act.
Accordingly, opportunity for prior comment is unnecessary. The FAA,
therefore, is issuing these regulations as a final rule that will apply
to all future cases under this authority.
Economic Summary
This final rule is exempt from review under Executive Order 12866
because it is limited to the adoption of statutory language without
interpretation. As indicated above, the provisions contained in this
final rulemaking set forth the inflation adjustments in compliance with
the Federal Civil Penalties Inflation Adjustment Act of 1990 and the
Debt Collection Improvement Act of 1996 for specific applicable civil
monetary penalties under the authority of the FAA.
Regulatory Flexibility Determination
The Regulatory Flexibility Act of 1980 (RFA) was enacted by
Congress to ensure that small entities are not unnecessarily burdened
by government regulations. The RFA requires agencies to review rules
that may have a ``significant economic impact on a substantial number
of small entities.''
The aggregate economic impact of this rulemaking on small business
entities should be minimal, affecting only those few entities who
choose to engage in prohibited arrangements and schemes in violation of
the statutes and regulations the FAA administers. Therefore, the FAA
has concluded that this final rule will not have a significant economic
impact, positive or negative, on a substantial number of small business
entities, and that a regulatory flexibility analysis is not required
for this rulemaking.
International Trade Impact Assessment
The Office of Management and Budget directs agencies to assess the
effects of regulatory changes on international trade. This rule will
not have a competitive trade disadvantage on foreign or domestic
operators inasmuch as the maximum civil penalties or ranges of minimum
and maximum civil penalties adjusted under this regulation apply
equally to foreign and domestic operators who violate the statutes or
regulations within the FAA's jurisdiction.
Unfunded Mandate
Title II of the Unfunded Mandates Reform Act of 1995 (the Reform
Act), enacted as Pub. L. 104-4 on March 22, 1995, requires each Federal
agency, to the extent permitted by law, to prepare a written assessment
of the effects of any Federal mandate in a proposed or final agency
rule that may result in the
[[Page 67445]]
expenditure by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more (adjusted annually
for inflation) in any one year. Section 204(a) of the Reform Act, 2
U.S.C. 1534(a), requires the Federal agency to develop an effective
process to permit timely input by elected officers (or their designees)
of State, local and tribal governments on a proposed ``significant
intergovernmental mandate.'' A ``significant intergovernmental
mandate'' under the Reform Act is any provision in a Federal agency
regulation that would impose an enforceable duty upon State, local, and
tribal governments, in the aggregate, of $100 million (adjusted
annually for inflation) in any one year. Section 203 of the Reform Act,
2 U.S.C. 1533, which supplements section 204(a), provides that before
establishing any regulatory requirements that might significantly or
uniquely affect small governments, the agency shall have developed a
plan that among other things, provides for notice to potentially
affected small governments, if any, and for a meaningful and timely
opportunity to provide input in the development of regulatory
proposals.
This final rule does not contain any Federal intergovernmental or
private sector mandate. Therefore, the requirements of Title II of the
Reform Act do not apply.
Federalism Implications
The regulations adopted herein do not have a substantial direct
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among the various levels of government. Therefore, in
accordance with Executive Order 12612, it is determined that this final
rule does not have federalism implications warranting the preparation
of a Federalism Assessment.
International Civil Aviation Organization (ICAO) and Joint Aviation
Regulations
In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to comply with ICAO
Standards and Recommended Practices to the maximum extent practicable.
The FAA finds no corresponding International Civil Aviation
Organization regulations or Joint Aviation Regulations; therefore, no
differences exist.
Paperwork Reduction Act
The rule does not contain any collection of information
requirements, as defined by the Paperwork Reduction Act of 1995, as
amended. Therefore, Office of Management and Budget review is not
required.
Conclusion
The FAA has determined that this final rule is exempt from review
under Executive Order 12866 because it is limited to the adoption of
statutory language without interpretation. For the same reason, it is
not a significant rule under the Department of Transportation's
Regulatory Policies and Procedures (44 FR 11034, February 26, 1979).
Since any additional costs incurred under this regulation will apply
only to those few entities who engage in conduct prohibited under the
statutes and regulations that the FAA administers, the FAA certifies
under the criteria of the Regulatory Flexibility Act, that this
regulation will not have a significant economic impact, positive or
negative, on a substantial number of small entities and that a
regulatory flexibility analysis is unnecessary.
List of Subjects in 14 CFR Part 13
Administrative practice and procedure, Air transportation,
Investigations, Law enforcement, Penalties.
The Amendments
Accordingly, the Federal Aviation Administration amends 14 CFR part
13 by adding subpart H to read as follows:
PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES
1. The authority citation for part 13 is revised to read as
follows:
Authority: 18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C.
106(g), 5121-5124, 40113-40114, 44103-44106, 44702-44703, 44709-
44710, 44713, 46101-46110, 46301-46316, 46501-46502, 46504-46507,
47106, 47111, 47122, 47306, 47531-47532.
2. Subpart H is added to read as follows:
Subpart H--Civil Monetary Penalty Inflation Adjustment
Sec.
13.301 Scope and purpose.
13.303 Definitions.
13.305 Cost of Living Adjustments of Civil Monetary Penalties.
Subpart H--Civil Monetary Penalty Inflation Adjustment
Sec. 13.301 Scope and purpose.
(a) This subpart provides a mechanism for the regular adjustment
for inflation of civil monetary penalties in conformity with the
Federal Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C.
2461 (note), as amended by the Debt Collection Improvement Act of 1996,
Public Law 104-134, April 26, 1996, in order to maintain the deterrent
effect of civil monetary penalties and to promote compliance with the
law. This subpart also sets out the current adjusted maximum civil
monetary penalties or range of minimum and maximum civil monetary
penalties for each statutory civil penalty subject to the FAA's
jurisdiction.
(b) Each adjustment to the maximum civil monetary penalty or the
range of minimum and maximum civil monetary penalties, as applicable,
made in accordance with this subpart applies prospectively from the
date it becomes effective to actions initiated under this part,
notwithstanding references to a specific maximum civil monetary penalty
or range of minimum and maximum civil monetary penalties contained
elsewhere in this part.
Sec. 13.303 Definitions.
(a) Civil Monetary Penalty means any penalty, fine, or other
sanction that:
(1) Is for a specific monetary amount as provided by Federal law or
has a maximum amount provided by Federal law;
(2) Is assessed or enforced by the FAA pursuant to Federal law; and
(3) Is assessed or enforced pursuant to an administrative
proceeding or a civil action in the Federal courts.
(b) Consumer Price Index means the Consumer Price Index for all
urban consumers published by the Department of Labor.
Sec. 13.305 Cost of Living Adjustments of Civil Monetary Penalties.
(a) 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 paragraph (a)
of this section 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
[[Page 67446]]
(6) Multiple of $25,000 in the case of penalties greater than
$200,000.
(b) 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 FAA are adjusted for inflation
as follows:
Minimum and Maximum Civil Penalties Adjusted for Inflation, Effective January 21, 1997
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Civil monetary Minimum penalty New adjusted Maximum penalty
United States Code citation penalty amount as of 10/ minimum penalty amount as of 10/ New adjusted minimum penalty amount
description 23/96 amount 26/96
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49 U.S.C. 5123(a) (changed Violations of $250 per $250 per $25,000 per $27,000 per violation per day.
1990). hazardous violation per violation per violation per
materials day. day. day.
transportation
law or
regulations.
49 U.S.C. 46301(a)(1) (1958)... Violations of FAA N/A.............. N/A.............. $1,000 per $1,100 per violation per day.
statute or violation per
regulations by a day.
person.
49 U.S.C. 46301(a)(2) (changed Violations of FAA N/A.............. N/A.............. $10,000 per $11,000 per violation per day.
1987). statute or violation per
regulations by a day.
person operating
an aircraft for
the
transportation
of passengers or
property for
compensation.
49 U.S.C. 46301(a)(3)(A) (1974) Violations of FAA N/A.............. N/A.............. $10,000 per $11,000 per violation per day.
statute or violation per
regulations day.
involving the
transportation
of hazardous
materials by air.
49 U.S.C. 46301(a)(3)(B) (1988) Violations of FAA N/A.............. N/A.............. $10,000 per $11,000 per violation per day.
statute or violation per
regulations day.
involving the
registration or
recordation
under chapter
441 of aircraft
not used to
provide air
transportation.
49 U.S.C. 46301(b) (1987)...... Tampering with a N/A.............. N/A.............. $2,000 per $2,200 per violation.
smoke alarm violation.
device.
49 U.S.C. 46302 (1984)......... Knowingly N/A.............. N/A.............. $10,000 per $11,000 per violation.
providing false violation.
information
about alleged
violations
involving the
special aircraft
jurisdiction of
the United
States.
49 U.S.C. 46303 (1984)......... Carrying a N/A.............. N/A.............. $10,000 per $11,000 per violation.
concealed deadly violation.
or dangerous
weapon.
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Issued in Washington, DC on December 13, 1996.
Linda Hall Daschle,
Acting Administrator.
[FR Doc. 96-32258 Filed 12-19-96; 8:45 am]
BILLING CODE 4910-13-M
