98-5876. Civil Monetary Penalty Inflation Adjustment  

  • [Federal Register Volume 63, Number 46 (Tuesday, March 10, 1998)]
    [Rules and Regulations]
    [Pages 11618-11624]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-5876]
    
    
    =======================================================================
    -----------------------------------------------------------------------
    
    DEPARTMENT OF TRANSPORTATION
    
    Federal Railroad Administration
    
    49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 223, 
    225, 228, 229, 230, 231, 232, 233, 234, 235, 236, and 240
    
    [Docket No. RSEP-8, Notice 1]
    RIN 2105-AC63
    
    
    Civil Monetary Penalty Inflation Adjustment
    
    AGENCY: Federal Railroad Administration (FRA), Department of 
    Transportation (DOT).
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: FRA is implementing the requirements of the Federal Civil 
    Penalties Inflation Adjustment Act of 1990, as amended by the Debt 
    Collection Improvement Act of 1996 in this final rule. FRA is adjusting 
    the maximum civil monetary penalties it issues for violations of 
    railroad safety statutes and regulations under its authority.
    
    EFFECTIVE DATE: April 9, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Cynthia Walters, Trial Attorney, 
    Office of Chief Counsel, FRA, 400 Seventh Street S.W., Washington, D.C. 
    20590 (telephone 202-632-3188).
    
    SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
    Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890, 28 U.S.C. 
    2461, note (Act), as amended by Section 31001(s)(1) of the Debt 
    Collection Improvement Act of 1996 Public Law 104-134, 110 Stat. 1321-
    373, April 26, 1996, requires that agencies adjust by regulation each 
    maximum civil monetary penalty (CMP) within that agency's jurisdiction 
    by October 23, 1996 (180 days after enactment of the Debt Collection 
    Improvement Act) and adjust those penalty amounts once every four years 
    thereafter. Congress recognized the important role that CMPs play in 
    deterring violations of Federal law and regulations and realized that 
    inflation has diminished the impact of these penalties. In the Debt 
    Collection Improvement Act, Congress found a way to counter the effect 
    that inflation has had on the CMPs by having the agencies charged with 
    enforcement responsibility administratively adjust the CMP.
    
    Calculation of the Adjustment
    
        The inflation adjustment is to be calculated by increasing the 
    maximum civil monetary penalty or the range of minimum and maximum CMPs 
    by the percentage that the Consumer Price Index (CPI) for the month of 
    June 1995 (the calendar year preceding the adjustment) exceeds the CPI 
    for the month of June of the last calendar year in which the amount of 
    such penalty was last set or adjusted. These adjusted amounts are 
    subject to a rounding formula found in Section 5 of the Act and the 
    first adjustment may not exceed an increase of ten percent. FRA 
    utilized Bureau of Labor Statistics Data to calculate adjusted CMP 
    amounts.
        FRA currently has 21 regulations that contain provisions which 
    reference its ability to impose civil penalties if a person violates 
    any requirement in the pertinent portion of a statute or the Code of 
    Federal Regulations. In this final rule, FRA is amending each of those 
    separate regulatory provisions to reflect the increased maximum CMP and 
    the corresponding footnotes in each Schedule of Civil Penalties. In 
    some instances, FRA is amending the corresponding appendices to these 
    regulatory provisions, which outline FRA enforcement policy, as well. 
    With the exception of the provisions relating to the Hours of Service 
    Laws contained in Part 228, FRA's maximum penalty was established by 
    the Rail Safety Improvement Act of 1988, which set a $10,000 limit for 
    a penalty imposed for any single violation and a $20,000 limit for 
    willful violation where a grossly negligent violation or pattern of 
    repeat violations has created an imminent hazard of death or injury or 
    has actually caused death or injury. By applying the adjustment 
    calculation described above using the 1988 CPI, these maximum penalties 
    will rise to $11,000 and $22,000, respectively, in each of the 
    regulations being amended. The Rail Safety Enforcement and Review Act 
    of 1992 increased the maximum civil penalty from $1,000 to $10,000 and 
    $20,000, respectively, for violations of the Hours of Service Laws, 
    making these penalty amounts uniform with those of FRA's other 
    regulatory provisions. By applying the same adjustment calculation 
    using the 1992 CPI, the maximum penalties for violations of the Hours 
    of Service Laws are equivalent to those of the other regulations, 
    $11,000 and $22,000.
        FRA is also responsible for enforcement in instances where 
    violations of the hazardous materials regulations involve railroads and 
    those who ship by rail. The hazardous materials regulations are not 
    issued by FRA but are issued by the Research and Special Projects 
    Administration (RSPA), a component of DOT. The relevant portions of the 
    RSPA regulations have been revised (see 62 FR 2970) to reflect the 
    calculation that the new statutory maximum is $27,500. Since FRA has 
    previously issued a policy statement concerning its enforcement of 
    these regulations, FRA is modifying the language in the policy 
    statement which references the statutory maximum to reflect this new 
    maximum of $27,500 in this final rule, as well as the provisions in 49 
    CFR Part 209 addressing hazardous materials.
        Except for the hazardous materials regulations, these new FRA 
    maximum penalties will apply to violations that occur on or after April 
    1, 1998. RSPA has already determined that the new maximums for 
    hazardous materials violations apply to violations that occurred after 
    January 21, 1997.
    
    Public Participation
    
        FRA is proceeding to a final rule without providing a notice of 
    proposed rulemaking or an opportunity for public comment. The 
    adjustments required by the Act are ministerial acts over which FRA has 
    no discretion, making public comment unnecessary. FRA is issuing these 
    amendments as a final rule applicable to all future cases under its 
    authority.
    
    [[Page 11619]]
    
    Regulatory Impact
    
    A. Executive Order 12866 and DOT Regulatory Policies and Procedures
    
        This rule has been evaluated in accordance with existing policies 
    and procedures. It is not considered a significant regulatory action 
    under section 3(f) of Executive Order 12866 and therefore was not 
    reviewed by the Office of Management and Budget. This rule is not 
    significant under the Regulatory Policies and Procedures of the 
    Department of Transportation (44 FR 11034). The economic impact of the 
    final rule is minimal to the extent that preparation of a regulatory 
    evaluation is not warranted.
    
    Regulatory Flexibility Determination
    
        FRA certifies that this final rule will not have a significant 
    economic impact on a substantial number of small entities. Although 
    this rule will apply to railroads who are considered small entities 
    there is no economic impact on any person who complies with the Federal 
    railroad safety laws.
    
    Federalism
    
        This final rule will not have a substantial effect on the states, 
    on the relationship between the national government and the states, or 
    the distribution of power and responsibilities among the various levels 
    of government. Thus, in accordance with Executive Order 12612, 
    preparation of a Federalism assessment is not warranted.
    
    Paperwork Reduction Act
    
        There are no new information collection requirements in this final 
    rule.
    
    Compliance with the Unfunded Mandates Reform Act of 1995
    
        Pursuant to the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
    4) each federal agency ``shall, unless otherwise prohibited by law, 
    assess the effects of Federal Regulatory actions on State, local, and 
    tribal governments, and the private sector (other than to the extent 
    that such regulations incorporate requirements specifically set forth 
    in law).'' Section 201. Section 202 of the Act further requires that 
    ``before promulgating any general notice of proposed rulemaking that is 
    likely to result in promulgation of any rule that includes any Federal 
    mandate that may result in the expenditure by State, local, and tribal 
    governments, in the aggregate, or by the private sector, of $ 
    100,000,000 or more (adjusted annually for inflation) in any 1 year, 
    and before promulgating any final rule for which a general notice of 
    proposed rulemaking was published, the agency shall prepare a written 
    statement * * * '' detailing the effect on State, local and tribal 
    governments and the private sector. The final rule issued today will 
    not result in the expenditure, in the aggregate, of $100,000,000 or 
    more in any one year, and thus preparation of a statement is not 
    required.
    
    List of Subjects in 49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 
    219, 220, 221, 223, 225, 228, 229, 230, 231, 232, 233, 234, 235, 
    236, 240
    
        Railroad safety, Penalties.
        Therefore, in consideration of the foregoing, parts 209, 213, 214, 
    215, 216, 217, 218, 219, 220, 221, 223, 225, 228, 229, 230, 231, 232, 
    233, 234, 235, 236, 240 Title 49, Code of Federal Regulations are 
    amended as follows:
    
    PART 209--[AMENDED]
    
        1. The authority citation for part 209 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49
    
    
    Sec. 209.103  [Amended]
    
        2. Section 209.103 is amended by removing the numerical amount 
    ``$25,000'' and adding in its place the numerical amount ``$27,500''.
    
    
    Sec. 209.335  [Amended]
    
        3. Section 209.335(b) is amended by removing the numerical amount 
    ``$10,000'' and adding in its place the numerical amount ``$11,000''.
    
    
    Sec. 209.409  [Amended]
    
        4. Section 209.409 is amended by removing the numerical amount 
    ``$10,000'' and adding in its place the numerical amount ``$11,000'' 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 209--[Amended]
    
        5. In appendix A to part 209, the section entitled Penalty 
    Schedules; Assessment of Maximum Penalties is revised to read as 
    follows:
    * * * * *
        As recommended by the Department of Transportation in its 
    initial proposal for rail safety legislative revisions in 1987, the 
    RSIA raised the maximum civil penalties for violations of the safety 
    regulations. Under the Hours of Service Act, the penalty was changed 
    from a flat $500 to a penalty of ``up to $1,000, as the Secretary of 
    Transportation deems reasonable.'' Under all the other statutes, the 
    maximum penalty was raised from $2,500 to $10,000 per violation, 
    except that ``where a grossly negligent violation or pattern of 
    repeated violations has created an imminent hazard of death or 
    injury to persons, or has caused death or injury,'' a penalty of up 
    to $20,000 per violation may be assessed.
        The Rail Safety Enforcement and Review Act of 1992 (RSERA) 
    increased the maximum penalty from $1,000 to $10,000 and in some 
    cases, $20,000 for a violation of the Hours of Service Laws, making 
    these penalty amounts uniform with those of FRA's other regulatory 
    provisions. RSERA also increased the minimum civil monetary penalty 
    from $250 to $500 for all of FRA's regulatory provisions. The 
    Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 
    101-410, 104 Stat. 890, note, as amended by Section 31001(s)(1) of 
    the Debt Collection Improvement Act of 1996 Public Law 104-134, 110 
    Stat. 1321-373, April 26, 1996 required that agencies adjust by 
    regulation each maximum civil monetary penalty within the agency's 
    jurisdiction for inflation and make subsequent adjustments once 
    every four years after the initial adjustment. Accordingly, FRA's 
    maximum civil monetary penalties have been adjusted.
        FRA's traditional practice has been to issue penalty schedules 
    assigning to each particular regulation specific dollar amounts for 
    initial penalty assessments. The schedule (except where issued after 
    notice and an opportunity for comment) constitutes a statement of 
    agency policy, and is ordinarily issued as an appendix to the 
    relevant part of the Code of Federal Regulations. For each 
    regulation, the schedule shows two amounts within the $500 to 
    $11,000 range in separate columns, the first for ordinary 
    violations, the second for willful violations (whether committed by 
    railroads or individuals). In one instance--part 231--the schedule 
    refers to sections of the relevant FRA defect code rather than to 
    sections of the CFR text. Of course, the defect code, which is 
    simply a reorganized version of the CFR text used by FRA to 
    facilitate computerization of inspection data, is substantively 
    identical to the CFR text.
        The schedule amounts are meant to provide guidance as to FRA's 
    policy in predictable situations, not to bind FRA from using the 
    full range of penalty authority where extraordinary circumstances 
    warrant. The Senate report on the bill that became the RSIA stated:
        It is expected that the Secretary would act expeditiously to set 
    penalty levels commensurate with the severity of the violations, 
    with imposition of the maximum penalty reserved for violation of any 
    regulation where warranted by exceptional circumstances. S. Rep. No. 
    100-153, 10th Cong., 2d Sess. 8 (1987).
        Accordingly, under each of the schedules (ordinarily in a 
    footnote), and regardless of the fact that a lesser amount might be 
    shown in both columns of the schedule, FRA reserves the right to 
    assess the statutory maximum penalty of up to $22,000 per violation 
    where a grossly negligent violation has created an imminent hazard 
    of death or injury. This authority
    
    [[Page 11620]]
    
    to assess a penalty for a single violation above $11,000 and up to 
    $22,000 is used only in very exceptional cases to penalize egregious 
    behavior. Where FRA avails itself of this right to use the higher 
    penalties in place of the schedule amount it so indicates in its 
    penalty demand letter.
    * * * * *
    
    PART 213--[AMENDED]
    
        6. The authority citation for Part 213 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49
    
    
    Sec. 213.15  [Amended]
    
        7. Section 213.15 is amended by:
        a. Removing parenthetical text following the word ``person'' and 
    adding in its place: ``(an entity of any type covered under 1 U.S.C. 1, 
    including but not limited to the following: a railroad; a manager, 
    supervisor, official, or other employee or agent of a railroad; any 
    owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
    facilities; any independent contractor providing goods or services to a 
    railroad; and any employee of such owner, manufacturer, lessor, lessee, 
    or independent contractor)'.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500'', removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000'; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix B to Part 213--[Amended]
    
        8. Footnote 1 to appendix B of part 213 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 214--[AMENDED]
    
        9. The authority citation for part 214 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49
    
    
    Sec. 214.5  [Amended]
    
        10. Section 214.5 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 214--[Amended]
    
        11. Footnote 1 to appendix A of part 214 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 215--[AMENDED]
    
        12. The authority citation for Part 215 is revised to read as 
    follows:
    
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 215.7  [Amended]
    
        13. Section 215.7 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix B to Part 215--[Amended]
    
        14. Footnote 1 to appendix B of part 215 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 216--[AMENDED]
    
        15. The authority citation for part 216 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 216.7  [Amended]
    
        16. Section 216.7 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    PART 217--[AMENDED]
    
        17. The authority citation for part 217 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 217.5  [Amended]
    
        18. Section 217.5 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 217--[Amended]
    
        19. Footnote 1 to appendix A of part 217 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    [[Page 11621]]
    
    PART 218--[AMENDED]
    
        20. The authority citation for part 218 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 218.9  [Amended]
    
        21. Section 218.9 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 218--[Amended]
    
        22. Footnote 1 to appendix A of part 218 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 219--[AMENDED]
    
        23. The authority citation for part 219 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, 20140, and 49 CFR 1.49.
    
    
    Sec. 219.9(a)  [Amended]
    
        24. Section 219.9(a) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 219--[Amended]
    
        25. Footnote 1 to appendix A of part 219 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 220--[AMENDED]
    
        26. The authority citation for part 220 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 220.7  [Amended]
    
        27. Section 220.7 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix C to Part 220--[Amended]
    
        28. Footnote 1 to appendix C of part 220 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 221--[AMENDED]
    
        29. The authority citation for part 221 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 221.17  [Amended]
    
        30. Section 221.7 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 220--[Amended]
    
        31. Footnote 1 to appendix A of part 220 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 223--[AMENDED]
    
        32. The authority citation for part 223 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 223.7  [Amended]
    
        33. Section 223.7 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix B to Part 223--[Amended]
    
        34. Footnote 1 to appendix B of part 223 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 225--[AMENDED]
    
        35. The authority citation for part 225 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, 20901, 21301-21302, and 49 
    CFR 1.49.
    
    [[Page 11622]]
    
    Sec. 225.29  [Amended]
    
        36. Section 225.29 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 225--[Amended]
    
        37. Footnote 1 to appendix A of part 225 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 228--[AMENDED]
    
        38. The authority citation for part 228 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, 21101-21108, and 49 CFR 1.49.
    
    
    Sec. 228.21  [Amended]
    
        39. Section 228.21 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 228--[Amended]
    
        40. In appendix A to part 228, the section entitiled Penalty is 
    revised to read as follows:
    * * * * *
        As amended by the Rail Safety Improvement Act of 1988 and the 
    Rail Safety Enforcement and Review Act of 1992, the penalty 
    provisions of the law apply to any person (an entity of any type 
    covered under 1 U.S.C. 1, including but not limited to the 
    following: a railroad; a manager, supervisor, official, or other 
    employee or agent of a railroad; any owner, manufacturer, lessor, or 
    lessee of railroad equipment, track, or facilities; any independent 
    contractor providing goods or services to a railroad; and any 
    employee of such owner, manufacturer, lessor, lessee, or independent 
    contractor), except that a penalty may be assessed against an 
    individual only for a willful violation. See appendix A to 49 CFR 
    part 209. For violations that occurred on September 3, 1992, a 
    person who violates the Act is liable for a civil penalty, as the 
    Secretary of Transportation deems reasonable, in an amount not less 
    than $500 nor more than $11,000, except that where a grossly 
    negligent violation or a pattern of repeated violations has created 
    an imminent hazard of death or injury to persons, or has caused 
    death or injury, a penalty not to exceed $22,000 may be assessed. 
    The Federal Civil Penalties Inflation Adjustment Act of 1990 as 
    amended by the Debt Collection Improvement Act of 1996 required 
    agencies to increase the maximum civil monetary penalty for 
    inflation. The amounts increased from $10,000 to $11,000 and from 
    $20,000 to $22,000 respectively.
        Each employee who is required or permitted to be on duty for a 
    longer period than prescribed by law or who does not receive a 
    required period of rest represents a separate and distinct violation 
    and subjects the railroad to a separate civil penalty. In the case 
    of a violation of section 2(a)(3) or (a)(4) of the Act, each day a 
    facility is in noncompliance constitutes a separate offense and 
    subjects the railroad to a separate civil penalty.
        In compromising a civil penalty assessed under the Act, FRA 
    takes into account the nature, circumstances, extent, and gravity of 
    the violation committed, and, with respect to the person found to 
    have committed such violation, the degree of culpability, any 
    history of prior or subsequent offenses, ability to pay, effect on 
    ability to continue to do business and such other matters as justice 
    may require.
    * * * * *
    
    PART 229--[AMENDED]
    
        41. The authority citation for part 229 is revised to read as 
    follows:
    
        Authority: 49 U.S.C., 20103, 20107, 20701-20703, and 49 CFR 
    1.49.
    
    
    Sec. 229.7  [Amended]
    
        42. Section 229.7(b) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix B to Part 229--[Amended]
    
        43. Footnote 1 to appendix B of part 229 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 230--[AMENDED]
    
        44. The authority citation for part 230 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
        45. Section 230.0 is amended by:
    
    
    Sec. 230.0  [Amended]
    
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
    
    [[Page 11623]]
    
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    PART 231--[AMENDED]
    
        46. The authority citation for part 231 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, 20301-20306, and 49 CFR 1.49.
    
    
    Sec. 231.0  [Amended]
    
        47. Section 231.0(e) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 231--[Amended]
    
        48. Footnote 1 to appendix A of part 231 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 232--[AMENDED]
    
        49. The authority citation for part 232 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 232.0  [Amended]
    
        50. Section 232.0 (e) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 232--[Amended]
    
        51. Footnote 1 to appendix A of part 232 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 233--[AMENDED]
    
        52. The authority citation for Part 233 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
        53. Section 233.11 is revised to read as follows:
    
    Sec. 233.11  Civil penalties.
    
        Any person (an entity of any type covered under 1 U.S.C. 1, 
    including but not limited to the following: a railroad; a manager, 
    supervisor, official, or other employee or agent of a railroad; any 
    owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
    facilities; any independent contractor providing goods or services to a 
    railroad; and any employee of such owner, manufacturer, lessor, lessee, 
    or independent contractor) who violates any requirement of this part or 
    causes the violation of any such requirement is subject to a civil 
    penalty of at least $500 and not more than $11,000 per violation, 
    except that: Penalties may be assessed against individuals only for 
    willful violations, and, where a grossly negligent violation or a 
    pattern of repeated violations has created an imminent hazard of death 
    or injury to persons, or has caused death or injury, a penalty not to 
    exceed $22,000 per violation may be assessed. Each day a violation 
    continues shall constitute a separate offense. See appendix A to this 
    part for a statement of agency civil penalty policy.
    
    Appendix A to Part 233--[Amended]
    
        54. Footnote 1 to appendix A of part 233 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 234--[AMENDED]
    
        55. The authority citation for part 234 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, and 49 CFR 1.49.
    
    
    Sec. 234.6  [Amended]
    
        56. Section 234.6(a) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$10,000''; and adding in its 
    place the numerical amount ``$11,000''; and removing the numerical 
    amount ``$20,000'' and adding in its place the numerical amount 
    ``$22,000''.
    
    Appendix A to Part 234--[Amended]
    
        57. Footnote 1 to appendix A of part 234 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 235--[AMENDED]
    
        58. The authority citation for part 235 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107, and 49 CFR 1.49.
    
        59. Section 235.9 is revised to read as follows:
    
    
    Sec. 235.9  Civil penalty.
    
        Any person (an entity of any type covered under 1 U.S.C. 1, 
    including but not limited to the following: a railroad; a manager, 
    supervisor, official, or other employee or agent of a railroad; any 
    owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
    facilities; any independent contractor providing goods or services to a 
    railroad; and any employee of such owner, manufacturer, lessor, lessee, 
    or independent contractor) who violates any requirement of this part or 
    causes the violation of any such requirement is subject to a civil 
    penalty of at least $500 and not more than $11,000 per violation, 
    except that: Penalties may be assessed against individuals only for 
    willful violations, and, where a grossly negligent violation or a 
    pattern of repeated violations has created an imminent hazard of death 
    or injury to
    
    [[Page 11624]]
    
    persons, or has caused death or injury, a penalty not to exceed $22,000 
    per violation may be assessed. Each day a violation continues shall 
    constitute a separate offense. See appendix A to this part for a 
    statement of agency civil penalty policy.
    
    Appendix A to Part 234--[Amended]
    
        60. Footnote 1 to appendix A of part 234 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 236--[AMENDED]
    
        61. The authority citation for part 236 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 236.0  [Amended]
    
        62. Section 236.0(f) is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 236--[Amended]
    
        63. Footnote 1 to appendix A of part 236 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
    PART 240--[AMENDED]
    
        64. The authority citation for part 240 is revised to read as 
    follows:
    
        Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.
    
    
    Sec. 240.11  [Amended]
    
        65. Section 240.11 is amended by:
        a. Removing the parenthetical text following the word ``person'' 
    and adding in its place: ``(an entity of any type covered under 1 
    U.S.C. 1, including but not limited to the following: a railroad; a 
    manager, supervisor, official, or other employee or agent of a 
    railroad; any owner, manufacturer, lessor, or lessee of railroad 
    equipment, track, or facilities; any independent contractor providing 
    goods or services to a railroad; and any employee of such owner, 
    manufacturer, lessor, lessee, or independent contractor)''.
        b. Removing the numerical amount ``$250'' and adding in its place 
    the numerical amount ``$500''; removing the numerical amount 
    ``$10,000''; and adding in its place the numerical amount ``$11,000''; 
    and removing the numerical amount ``$20,000'' and adding in its place 
    the numerical amount ``$22,000''.
    
    Appendix A to Part 240--[Amended]
    
        66. Footnote 1 to appendix A of part 240 is amended by removing the 
    numerical amount ``$20,000'' and adding in its place the numerical 
    amount ``$22,000''.
    
        Issued in Washington, D.C. on February 27, 1998.
    Jolene M. Molitoris,
    Administrator, Federal Railroad Administration.
    [FR Doc. 98-5876 Filed 3-9-98; 8:45 am]
    BILLING CODE 4910-06-P
    
    
    

Document Information

Effective Date:
4/9/1998
Published:
03/10/1998
Department:
Federal Railroad Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
98-5876
Dates:
April 9, 1998.
Pages:
11618-11624 (7 pages)
Docket Numbers:
Docket No. RSEP-8, Notice 1
RINs:
2105-AC63: Civil Monetary Penalty Inflation Adjustment
RIN Links:
https://www.federalregister.gov/regulations/2105-AC63/civil-monetary-penalty-inflation-adjustment
PDF File:
98-5876.pdf
CFR: (24)
49 CFR 219.9(a)
49 CFR 209.103
49 CFR 209.335
49 CFR 209.409
49 CFR 213.15
More ...