[Federal Register Volume 61, Number 215 (Tuesday, November 5, 1996)]
[Rules and Regulations]
[Pages 56900-56901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28415]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 221
[Docket No. R-168]
RIN 2105-AC63
Regulated Transactions Involving Documented Vessels and Other
Maritime Interests; Inflation Adjustment of Civil Monetary Penalties
AGENCY: Maritime Administration, DOT.
ACTION: Final rule.
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[[Page 56901]]
SUMMARY: In accordance with the Federal Civil Monetary Penalty
Inflation Adjustment Act of 1996, as amended by the Debt Collection
Improvement Act of 1996, this final rule incorporates inflation
adjustments for the civil monetary penalties described in procedural
regulations of the Maritime Adminstration (MARAD) contained in Subpart
E of 46 CFR Part 221.
EFFECTIVE DATE: This rule is effective on November 7, 1996.
FOR FURTHER INFORMATION CONTACT: Edmund T. Sommer, Jr., Chief, Division
of General and International Law, Maritime Administration, Tel. (202)
366-5181, Fax. (202) 366-7485.
SUPPLEMENTARY INFORMATION:
The Debt Collection Improvement Act of 1996
In an effort to maintain the remedial impact of civil money
penalties (CMPs) and promote compliance with law, the Federal Civil
Monetary Penalty Inflation Adjustment Act of 1990 (P.L. 101-410) was
amended by the Debt Collection Improvement Act of 1996 (P.L. 104-134)
to require Federal agencies to regularly adjust certain CMPs for
inflation. As amended, the law requires each agency to make an initial
inflationary adjustment for all applicable CMPs, with specified
exemptions, and to make further adjustments at least once every four
years thereafter.
The Debt Collection Improvement Act of 1996 further stipulates that
any resulting increases in a CMP due to the calculated inflation
adjustments (i) should apply only to the violations that occur after
October 23, 1996, the Act's effective date, and (ii) should not exceed
10 percent of the penalty indicated.
Method of Calculation
Under the Act, the inflation adjustment for each applicable CMP is
determined by increasing the maximum CMP amount per violation by the
cost of living adjustment. The ``cost of living'' adjustment is defined
as the percentage of each CMP by which the Consumer Price Index (CPI)
for the month of June of the calendar year preceding the adjustment
exceeds the CPI for the month of June of the calendar year in which the
amount of the CMP last set or adjusted pursuant to law. Any calculated
increase under this adjustment is subject to a specific rounding
formula set in the Act.
Civil Penalties Under 46 U.S.C. 31309 and 31330; 46 App. U.S.C. 808
MARAD has provisions in its regulations at 46 CFR Part 221
prescribing procedures for three civil penalties that it may assess
under the following authorities:
1. 46 U.S.C. 31309--a general civil penalty of up to $10,000 for
violation of 46 U.S.C. Chapter 313--Commercial Instruments and Maritime
Liens.
2. 46 U.S.C. 31330--a penalty of up to $25,000 for violation of 46
U.S.C. 31328 or 31329, relating to requirements for trustees of
mortgaged vessels and vessel interests and purchasers of documented
vessels under order of a district court.
3. 46 App. U.S.C. 808--a penalty of up to $10,000 for the unlawful
transfer of a documented vessel or interests therein.
MARAD is amending its regulations at 46 CFR 221.61 to adjust the
maximum amount of each of these three civil monetary penalties. Each of
the $10,000 maximum penalties is being increased to $11,000. The
$25,000 maximum penalty is being increased to $27,500.
Rulemaking Analysis and Notices
Executive Order 12866 (Regulatory Planning and Review), and Department
of Transportation (DOT) Regulatory Policies; P.L. 104-121.
This final rule is exempt from review by OMB under E.O. 12866
because it is limited to the adoption of statutory language without
interpretation. It also is not considered a major rule for purposes of
Congressional review under P.L. 104-121.
Administrative Procedure Act
The Administrative Procedure Act (5 U.S.C. 553) provides an
exception to the notice and comment procedures because they are
unnecessary or contrary to the public interest. MARAD finds that under
5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with notice and
comment since this rule only implements statutory authority as mandated
in P.L. 104-134, with no issues of policy discretion. Accordingly,
opportunity for public comment is unnecessary.
Federalism
MARAD has analyzed this rulemaking in accordance with principles
and criteria contained in E.O. 12612 and has determined that these
regulations do not have sufficient federalism implications to warrant
the preparation of a Federalism Assessment.
Regulatory Flexibility
The Maritime Administrator certifies that this rulemaking will not
have a significant economic impact on a substantial number of small
entities. Any penalties that may be assessed by MARAD will be based on
the nature of the violation and not the size of the entity. The
aggregate impact of any enforcement action that might be taken by MARAD
on violations can be expected to have a negligible impact on small
business entities.
Environmental Assessment
MARAD has concluded that this final rule has no environmental
impact and that an environmental impact statement is not required.
Paperwork Reduction
This rulemaking contains no new or amended information collection
or recordkeeping requirements which have been or require approval by
the Office of Management and Budget. This rule does not impose any
unfunded mandates.
List of Subjects in 46 CFR Part 221
Maritime carriers, Mortgages, Reporting and recordkeeping
requirements, Trust and trustees.
Accordingly, 46 CFR Part 221 is amended as follows:
1. The authority citation continues to read as follows:
Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 114(b),
1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 1.66
2. Section 221.61 is revised to read as follows:
Sec. 221.61 Purpose.
This subpart describes procedures for the administration of civil
penalties that the Maritime Administration may assess under 46 U.S.C.
31309 and 31330, and section 9(d) of the Shipping Act, 1916, as emended
(46 App. U.S.C. 808(d), pursuant to 49 U.S.C. 336.
Note: Pursuant to 46 U.S.C. 31309, a general penalty of not more
than $11,000 may be assessed for each violation of chapter 313 or 46
U.S.C. subtitle III administered by the Maritime Administration, and
the regulations in this part that are promulgated thereunder, except
that a person violating 46 U.S.C. 31328 or 31329 and the regulations
promulgated thereunder is liable for a civil penalty of not more
than $27,500 for each violation. A person that charters, sells,
transfers or mortgages a vessel, or an interest therein, in
violation of 46 App. U.S.C. 808 is liable for a civil penalty of not
more than $11,000 for each violation. These penalty amounts are in
accordance with Public Law 101-410, as amended by Public Law 104-
134. Criminal penalties may also apply to violations of these
statutes.
By Order of the Maritime Administrator.
Dated: October 31, 1996.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 96-28415 Filed 11-4-96; 8:45 am]
BILLING CODE 4910-01-P
