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AGENCY:
Department of Homeland Security.
ACTION:
Interim final rule with request for comments.
SUMMARY:
This rule amends Department of Homeland Security (DHS or Department) regulations to adjust DHS and component civil monetary penalties for inflation. DHS calculated the adjusted penalties according to the statutory formula in the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which was signed into law on November 2, 2015. The adjusted penalties will be effective for civil penalties assessed after August 1, 2016 whose associated violations occurred after November 2, 2015.
DATES:
Effective Date. This rule is effective on August 1, 2016.
Comment Date: Comments must be received on or before August 1, 2016.
ADDRESSES:
You may submit comments, identified by docket number DHS-2016-0034, by one of the following methods:
- Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
- Mail: Megan Westmoreland, Office of the General Counsel, U.S. Department of Homeland Security, 245 Murray Lane SW., Mail Stop 0485, Washington, DC 20528-0485.
FOR FURTHER INFORMATION CONTACT:
Megan Westmoreland, Attorney-Advisor, Office of the General Counsel, U.S. Department of Homeland Security. Phone: 202-447-4384.
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Adjustments by Component
A. National Protection and Programs Directorate
B. U.S. Customs and Border Protection
C. Immigration and Customs Enforcement
D. U.S. Coast Guard
E. Transportation Security Administration
III. Administrative Procedure Act
IV. Regulatory Analyses
A. Executive Orders 12866 and 13563
B. Regulatory Flexibility Act
C. Unfunded Mandates Reform Act
D. Paperwork Reduction Act
I. Background
On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74 section 701 (Nov. 2, 2105)) (the 2015 Act),[1] which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) (the Inflation Adjustment Act), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment through issuance of an interim final rule (IFR) and (2) make subsequent annual adjustments for inflation.
The 2015 Act applies to all agency civil penalties except for any penalty (including any addition to tax and additional amount) under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) and the Tariff Act of 1930 (19 U.S.C. 1202 et seq.). See sec. 4(a)(1) of the 2015 Act. In the case of DHS, several civil penalties that are collected by U.S. Customs and Border Protection (CBP) and the U.S. Coast Guard fall under the Tariff Act of 1930, and thus DHS is not adjusting those civil penalties in this rulemaking.
The 2015 Act applies the new penalty amounts to all penalties that DHS assesses after August 1, 2016, the effective date of this rule. Additionally, pursuant to 28 U.S.C. 2461 note sec. 6, as amended by the 2015 Act, DHS will apply the adjusted penalty amounts for any violations that occurred after November 2, 2015 (i.e., the date the 2015 Act was signed into law) as long as the penalty is assessed after the effective date of this interim final rule.
The 2015 Act provides a new method for calculating inflation adjustments. The new method differs substantially from the methods that agencies used in the past when conducting inflation adjustments pursuant to the 1990 Inflation Adjustment Act. The new method is intended to more accurately reflect inflation. Previously, when agencies conducted adjustments to civil penalties, they did so under rules that required significant rounding of figures. For example, an agency would round a penalty increase that was greater than $1,000, but less than or equal to $10,000, to the nearest multiple of $1,000. While this allowed penalties to be kept at round numbers, it meant that agencies would often not increase penalties at all if the inflation factor was not large enough. Furthermore, increases to penalties were capped at 10 percent, which meant that longer periods without an inflation adjustment could cause a penalty to rapidly lose value in real terms. Over time, the formula used in the 1990 Inflation Adjustment Act calculations frequently caused penalties to lose value relative to actual inflation. The 2015 Act removed these rounding rules, and instead instructs agencies to round penalties to the nearest $1. While this creates penalty values that are no longer round numbers, it does ensure that agencies will increase penalties each year to a figure commensurate with the actual calculated inflation.
To better reflect the original impact of civil penalties, the 2015 Act “resets” the inflation calculations by excluding prior inflationary adjustments under the Inflation Adjustment Act. To do this, the 2015 Act requires agencies to identify, for each penalty, the year that Congress originally enacted the maximum penalty level/range of minimum and maximum penalty levels or the year that the agency last adjusted the penalty amount other than to pursuant to the Inflation Adjustment Act, and the corresponding penalty amount(s). The 2015 Act then requires agencies to perform an initial “catch-up” adjustment, using the original amounts of civil penalties as a baseline, so that the 2016 penalty levels are equal, in real terms, to the penalty amounts as they were originally established.
Pursuant to the 2015 Act, DHS undertook a review of the civil penalties that DHS and its components administer. This rule sets forth the initial “catch-up” adjustment for all civil penalties that DHS and its components administer. For each component, we have provided a table showing how DHS is increasing the penalties pursuant to the 2015 Act. The table contains the following information:
- In the first column (penalty name), we provide a description of the penalty.
- In the second column (citation), we provide the statutory cite from the United States Code (U.S.C.) and the regulatory cite from the Code of Federal Regulations (CFR).Start Printed Page 42988
- In the third column (current penalty), we list the existing penalty in effect on November 2, 2015.
- In the fourth column (baseline penalty (year)), we provide the amount and year of the penalty as enacted by Congress or as last changed through a mechanism other than pursuant to the Inflation Adjustment Act, whichever is later.
- In the fifth column (multiplier), we list the multiplier used to adjust the penalty. The multiplier is determined by the year of enactment or last adjustment of the penalty. The multiplier is based upon the Consumer Price Index (CPI-U) for the month of October 2015, not seasonally adjusted.[2]
- In the sixth column (preliminary new penalty), we list the amount obtained by multiplying the Baseline Penalty from column 4 with the Multiplier from column 5. This amount will be the final penalty, if, in accordance with the 2015 Act, this level does not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015.[3]
- In the seventh column, (adjusted new penalty), we provide the final number for the penalty. To derive this number, we compare the preliminary new penalty with the current penalty from column 3. The adjusted new penalty is the lesser of either the preliminary new penalty or an amount equal to 150 percent more than the current penalty.
Additionally, where applicable, we have also made conforming edits to regulatory text.
II. Adjustments by Component
In the following sections, we briefly describe the civil penalties that DHS and its components assess. We describe the nature of the penalties and discuss relevant authorities. We include tables at the end of each section, which list the individual adjustments for each penalty. We also include discussions where we believe further explanation is helpful.
A. National Protection and Programs Directorate
The National Protection and Programs Directorate (NPPD) administers only one civil penalty that the 2015 Act affects. This penalty assesses fines for violations of the Chemical Facility Anti-Terrorism Standards (CFATS), a program which regulates the security of chemical facilities that, in the discretion of the Secretary, present high levels of security risk. The CFATS program was originally established in 2007, pursuant to section 550 of the Department of Homeland Security Appropriations Act of 2007 (Pub. L. 109-295),[4] and is currently located in part 27 of Title 6 of the CFR.
One question that arose is how to calculate the baseline date of the CFATS penalty, which is $25,000 per day. The question arose because the 2007 legislation, which established CFATS, did not create a new penalty provision, but rather referenced an older one: [5] Section 70119(a) of Title 46. The Maritime Transportation Security Act (MTSA) (Pub. L. 107-295) was enacted in 2002 and established this penalty provision. For that reason, arguments could be made that we should index the $25,000 penalty by the 2002 CPI value (the date the MTSA penalty was established) or the 2007 CPI value (the date the CFATS program was enacted). The difference between these numbers is material—indexing the $25,000 penalty by the 2002 CPI value would yield a current penalty of $32,796 per day, while indexing the penalty by the 2007 CPI value would yield a current penalty of only $28,458 per day.
Because the CFATS legislation did not create a new civil penalty, but rather simply referenced the existing MTSA penalty, we believe the intent of Congress was that violators of either MTSA or CFATS would face identical penalties. For this reason, we have considered the “baseline” year for the CFATS penalty to be 2002 rather than 2007, and have increased the penalty by the multiplier appropriate for that year, as shown in Table 1 below.
Table 1—CFATS Civil Penalty Adjustment
Penalty name Citation Current penalty Baseline penalty * (year) Multiplier ** Preliminary new penalty [multiplier × baseline penalty] Adjusted new penalty [increase capped at 150% more than current penalty] Penalty for non-compliance with CFATS regulations 6 U.S.C. 624(b)(1); 6 CFR 27.300(b)(3) $25,000 per day $25,000 (2002) 1.31185 $32,796 $32,796 * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. B. U.S. Customs and Border Protection
U.S. Customs and Border Protection (CBP) assesses civil monetary penalties for certain violations of title 8 of the CFR regarding the Immigration and Nationality Act of 1952 (Pub. L. 82-414, as amended) (INA). The INA contains provisions that impose penalties on persons, including carriers and aliens, who violate specified provisions of the INA. For example, section 231(g) of the INA, codified at 8 U.S.C. 1221(g), requires that a carrier shall be fined $1,000 for each person for whom manifest information is not provided.
CBP's relevant penalty provisions are located in numerous sections of the INA (see list below), however CBP has Start Printed Page 42989enumerated these penalties in regulation in one location—in 8 CFR 280.53. Below is the list of penalty provisions in the INA:
- Section 231(g), Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States.
- Section 234, Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens.
- Section 240B(d), Penalties for failure to depart voluntarily.
- Section 243(c)(1)(A), Penalties for violations of removal orders relating to aliens transported on vessels or aircraft under section 241(d) or for costs associated with removal under section 241(e).
- Section 243(c)(1)(B), Penalties for failure to remove alien stowaways under section 241(d)(2).
- Section 251(d), Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 and penalties for use of alien crewmen for longshore work in violation of section 251(d).
- Section 254(a), Penalties for failure to control, detain, or remove alien crewmen.
- Section 255, Penalties for employment on passenger vessels of aliens afflicted with certain disabilities.
- Section 256, Penalties for discharge of alien crewmen.
- Section 257, Penalties for bringing into the United States alien crewmen with intent to evade immigration laws.
- Section 271(a), Penalties for failure to prevent the unauthorized landing of aliens.
- Section 272(a), Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground.
- Section 273(b), Penalties for bringing to the United States aliens without required documentation.
- Section 274D, Penalties for failure to depart.
- Section 275(b), Penalties for improper entry.
We note, for reference, that CBP also assesses certain civil monetary penalties for customs violations under title 19 of the CFR. CBP assesses those penalties under the Tariff Act of 1930, as amended, but as we discussed above, the 2015 Act specifically exempts Tariff Act penalties from the inflation adjustment requirements in the 2015 Act. For that reason, we have not listed those title 19 penalties in the below table of CBP penalty adjustments.
Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. In Table 2 below, we provide the penalties that we are adjusting in accordance with the 2015 Act, where the associated violations occurred after November 2, 2015.
Start Printed Page 42991Table 2—U.S. Customs and Border Protection Civil Penalties Adjustments
Penalty name Citation Current penalty Baseline penalty * (year) Multiplier ** Preliminary new penalty [multiplier × baseline penalty] Adjusted new penalty [increase capped at 150% more than current penalty] Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States 8 U.S.C. 1221(g) 8 CFR 280.53(c)(1) (INA section 231(g)) $1,100 $1,000 (2002) 1.31185 $1,312 $1,312 Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens 8 U.S.C. 1224 8 CFR 280.53(c)(2) (INA section 234) $3,200 $2,000 (1990) 1.78156 $3,563 $3,563 Penalties for failure to depart voluntarily 8 U.S.C. 1229c(d) 8 CFR 280.53(c)(3) (INA section 240B(d)) $1,100-$5,500 $1,000-$5,000 (1996) 1.50245 $1,502-$7,512 $1,502-$7,512 Penalties for violations of removal orders relating to aliens transported on vessels or aircraft under section 241(d) of the INA, or for costs associated with removal under section 241(e) of the INA 8 U.S.C. 1253(c)(1)(A) 8 CFR 280.53(c)(4) (INA section 243(c)(1)(A)) $2,200 $2,000 (1996) 1.50245 $3,005 $3,005 Start Printed Page 42990 Penalties for failure to remove alien stowaways under section 241(d)(2) of the INA 8 U.S.C. 1253(c)(1)(B) 8 CFR 280.53(c)(4) (INA section 243(c)(1)(B)) $5,500 $5,000 (1996) 1.50245 $7,512 $7,512 Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the INA 8 U.S.C. 1281(d) 8 CFR 280.53(c)(5) (INA section 251(d)) $320 for each alien $200 for each alien (1990) 1.78156 $356 for each alien $356 for each alien Penalties for use of alien crewmen for longshore work in violation of section 251(d) of the INA 8 U.S.C. 1281(d) 8 CFR 280.53(c)(5) (INA section 251(d)) $7,500 $5,000 (1990) 1.78156 $8,908 $8,908 Penalties for failure to control, detain, or remove alien crewmen 8 U.S.C. 1284(a) 8 CFR 280.53(c)(6) (INA section 254(a)) $750-$4,300 $500-$3000 (1990) 1.78156 $891-$5,345 $891-$5,345 Penalties for employment on passenger vessels of aliens afflicted with certain disabilities 8 U.S.C. 1285 8 CFR 280.53(c)(7) (INA section 255) $1,100 $1,000 (1990) 1.78156 $1,782 $1,782 Penalties for discharge of alien crewmen 8 U.S.C. 1286 8 CFR 280.53(c)(8) (INA section 256) $1,500-$4,300 $1,500-$3,000 (1990) 1.78156 $2,672-$5,345 $2,672-$5,345 Penalties for bringing into the United States alien crewmen with intent to evade immigration laws 8 U.S.C. 1287 8 CFR 280.53(c)(9) (INA section 257) $16,000 $10,000 (1990) 1.78156 $17,816 $17,816 Penalties for failure to prevent the unauthorized landing of aliens 8 U.S.C. § 1321(a) 8 CFR 280.53(c)(10) (INA section 271(a)) $4,300 $3,000 (1990) 1.78156 $5,345 $5,345 Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground 8 U.S.C. § 1322(a) 8 CFR 280.53(c)(11) (INA section 272(a)) $4,300 $3,000 (1990) 1.78156 $5,345 $5,345 Penalties for bringing to the United States aliens without required documentation 8 U.S.C. § 1323(b) 8 CFR 280.53(c)(12) (INA section 273(b)) $4,300 $3,000 (1990) 1.78156 $5,345 $5,345 Penalties for failure to depart 8 U.S.C. 1324d 8 CFR 280.53(c)(13) (INA section 274D) $550 $500 (1996) 1.50245 $751 $751 Penalties for improper entry 8 U.S.C. § 1325(b) 8 CFR 280.53(c)(14) (INA section 275(b)) $55-275 $50-$250 (1996) 1.50245 $75-$376 $75-$376 * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. C. Immigration and Customs Enforcement
Immigration and Customs Enforcement (ICE) assesses civil monetary penalties for certain employment-related violations arising from the INA. ICE's civil penalties are located in title 8 of the CFR.
There are three different sections in the INA that impose civil monetary penalties for violations of the laws that relate to employment actions (sections 274A, 274B, and 274C). ICE has primary enforcement responsibilities for two of these civil penalty provisions (sections 274A and 274C), and the Department of Justice (DOJ) has enforcement responsibilities for one of these civil penalty provisions (section 274B). The INA, in sections 274A and 274C, provides for imposition of civil penalties for various specified unlawful acts pertaining to the employment eligibility verification process (Form I-9, Employment Eligibility Verification) and the employment of unauthorized aliens. These penalties cover, among other things, the knowing employment of unauthorized aliens and the failure to comply with the employment verification requirements relating to completion of the Form I-9. ICE assesses and imposes civil monetary penalties with respect to employer sanctions under section 274A of the INA and 8 CFR part 274a. Similarly, ICE imposes civil penalties for specified actions relating to immigration-related document fraud under section 274C of the INA and 8 CFR part 270. We note that while ICE is updating the penalty amounts in 8 CFR part 270, ICE has not assessed these penalties in recent years.
Because both DHS and DOJ implement the three employment-related penalty sections in the INA, both Departments are codifying the civil penalty amounts in their implementing regulations. Pursuant to the authority of the Inflation Adjustment Act and before the creation of DHS, DOJ previously adjusted the civil monetary penalties for inflation, increasing the specific amounts stated in sections 274A, 274B, and 274C of the INA. See 64 FR 7066 (Feb. 12, 1999) and 64 FR 47099 (Aug. 30, 1999). Both agencies issued a joint rulemaking to update the penalties in 2008. See 73 FR 10130 (Feb. 26, 2008). Today, as in 2008, the division of responsibilities between the Secretary of Homeland Security and the Attorney General requires action by both Departments in order to effectuate a further adjustment of the civil penalties. The minimum and maximum civil penalty amounts for each violation will necessarily be the same whether DHS or DOJ imposes the penalty. See 8 CFR 274a.10 and 270.3; 28 CFR 68.52(c) and (e).
In this rule, DHS is amending 8 CFR parts 270 and 274a of the DHS regulations to incorporate the revised schedule of civil penalties, as adjusted for inflation according to the statutory formula described above. We note that DOJ is similarly revising regulations in 28 CFR part 68 (which correspond to the penalties in 8 CFR part 270) in a separate civil penalty adjustment rulemaking.
Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. Table 3 below lays out the changes to the penalties, where the associated violations occurred after November 2, 2015.
Start Printed Page 42992Table 3—Immigration and Customs Enforcement Civil Penalties Adjustments
Penalty name Citation Current penalty Baseline penalty * (year) Multiplier ** Preliminary new penalty [multiplier × baseline penalty] Adjusted new penalty [increase capped at 150% more than current penalty] Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(1)-(a)(4), penalty for first offense 8 CFR 270.3(b)(1)(ii)(A) $375-$3,200 $250-$2,000 (1990) 1.78156 $445-$3,563 $445-$3,563 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(5)-(a)(6), penalty for first offense 8 CFR 270.3(b)(1)(ii)(B) $275-$2,200 $250-$2,000 (1996) 1.50245 $376-$3,005 $376-$3,005 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(1)-(a)(4), penalty for subsequent offenses 8 CFR 270.3(b)(1)(ii)(C) $3,200-$6,500 $2,000-$5,000 (1990) 1.78156 $3,563-$8,908 $3,563-$8,908 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(5)-(a)(6), penalty for subsequent offenses 8 CFR 270.3(b)(1)(ii)(D) $2,200-$5,500 $2,000-$5,000 (1996) 1.50245 $3,005-$7,512 $3,005-$7,512 Violation/prohibition of indemnity bonds 8 CFR 274a.8(b) $1,100 $1,000 (1986) 2.15628 $2,156 $2,156 Civil penalties for knowingly hiring, recruiting, referral, or retention of unauthorized aliens—Penalty for first offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(A) $375-$3,200 $250-$2,000 (1986) 2.15628 $539-$4,313 $539-$4,313 Penalty for second offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(B) $3,200-$6,500 $2,000-$5,000 (1986) 2.15628 $4,313-$10,781 $4,313-$10,781 Penalty for third or subsequent offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(C) $4,300-$16,000 $3,000-$10,000 (1986) 2.15628 $6,469-$21,563 $6,469-$21,563 Civil penalties for I-9 paperwork violations 8 CFR 274a.10(b)(2) $110-$1,100 $100-$1,000 (1986) 2.15628 $216-$2,156 $216-$2,156 * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. D. U.S. Coast Guard
The Coast Guard is adjusting for inflation the penalties in the table in part 27 of title 33 of the CFR. That table identifies the statutes that provide the Coast Guard with civil monetary penalty authority and sets out the inflation-adjusted maximum penalty that the Coast Guard may impose pursuant to each statutory provision. The new table in this regulation provides the current maximum penalty for violations that occurred after November 2, 2015. The penalties in effect for violations on or prior to November 2, 2015 can be found in prior CFR versions that pertain to the date in which the violation occurred. Since the Coast Guard had adjusted the table in part 27 for inflation on several occasions, not just one table can be used for all violations on or before November 2, 2015.
The Coast Guard is authorized to assess close to 150 penalties involving maritime safety and security and environmental stewardship that are critical to the continued success of Coast Guard missions. Various statutes in Title 14, 16, 19, 33, 42, 46, and 49 of the U.S.C. authorize these penalties. Titles 33 and 46 authorize the vast majority of these penalties as these statutes deal with navigation, navigable waters, and shipping.
Under title 33 of the U.S.C., the Coast Guard assesses penalties with respect to bridges, marine events, pollution prevention, oil discharges, sanitation, international navigation, and other environmental stewardship responsibilities. Most notably, the Coast Guard has express joint authority with the Environmental Protection Agency (EPA) to assess penalties in order to enforce the Federal Water Pollution Control Act (Clean Water Act) (CWA), as amended by the Oil Pollution Act of 1990 (OPA 90) (33 U.S.C. 1321 et seq.), and MARPOL Protocol, Annex VI (33 U.S.C. 1908). Penalties under the CWA and OPA 90 relate to the discharge of oil or a hazardous substance from a vessel or facility into or upon the navigable waters of the United States, adjoining shoreline, or into or upon the waters of the contiguous zone. Both agencies may assess penalties for discharges of oil or hazardous substances in connection with activities under the Outer Continental Shelf Lands Act or the Deepwater Port Act. Further, both agencies may assess penalties if a person fails to take mitigation or removal action, or fails to comply with an order of the Federal On-Scene Coordinator. The Coast Guard and EPA delineate enforcement boundaries within each region. Under the Act to Prevent Pollution from Ships (APPS) (33 U.S.C. 1901 et seq.), both of these agencies may assess penalties for any violation of Annex VI, including but not limited to the carriage and use of low-sulfur fuel oil, and vessel engine and emission requirements. While the EPA focuses primarily on engine permit requirements and shoreside facility compliance, the Coast Guard may refer other matters to the EPA for enforcement in accordance with established protocol.
Under title 46 of the U.S.C., the Coast Guard assesses penalties with respect to vessel inspections, vessel operations, manning and training on vessels, marine casualty reporting, drug testing, pilotage, vessel identification, and other aspects of personnel and operations involved in the shipping industry. The majority of civil penalties under this title relate to vessel compliance, which includes general inspection requirements, crew requirements and limitations, and operational requirements of the vessel to engage in a commercial enterprise.
Beyond title 33 and title 46 of the U.S.C., the Coast Guard assesses penalties related to the organization and management of the Coast Guard, aquatic species conservation, obstruction of revenue, and hazardous substances and materials. Most notably, the Coast Guard has joint authority with EPA under title 42 of the U.S.C. to assess penalties for hazardous substances. Under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C. 9601 et seq.), the Coast Guard may assess penalties for the failure to meet the notification requirements, failure to provide evidence of financial responsibility, or failure to follow an administrative order, among other violations. The Coast Guard has the primary responsibility to enforce the laws on navigational waterways.
As evidenced by the table below, the current inflation adjustment imposes a substantial change in many of the civil penalties administered by the Coast Guard. Part of the reason for the changes are that the enactment dates for penalties assessed by the Coast Guard vary widely, spanning from 1935 to 2014. Furthermore, the penalty amounts vary widely, spanning up to $250,000. Under the 2015 Act, and as mentioned elsewhere in this preamble, Congress has created a straightforward method for calculating the amount of the inflation allowable for each penalty.
While the increases due to inflation are, for some penalties, substantial, not all penalties will be equivalent to their original value in real terms. Pursuant to the 2015 Act, the Coast Guard cannot increase any penalty by more than 150% of the previously adjusted penalty. As the Coast Guard last adjusted penalties for inflation on June 2, 2011 (76 FR 31831), it cannot adjust any penalty by more than 150% of the amount set by the final rule of June 2, 2011. After the Coast Guard used the new method and applied the 150% cap, they increased the penalties by an amount of 3% to 150% above the last adjustment. Of those penalties that the Coast Guard is increasing in this rulemaking, approximately 23 of the penalties are increasing more than 100% from their 2011 value, and the 2015 Act limits the amount that they can increase to 150% of the 2011 value. All of the penalties that Congress or the Coast Guard enacted prior to 1980 are increasing more than 100%. This is due to the great difference between the CPI-U level from the years enacted and the CPI-U from October 2015.
There were three penalties that decreased in value from their previous amounts. These penalties (codified in 46 U.S.C. App. 1505(a)(2), 46 U.S.C. App. 1805(c)(2), and 42 U.S.C. 12151(c)) showed significant decreases. These changes occurred because Congress recodified these penalties in 2006 after the Coast Guard adjusted them for inflation. Using the 2006 recodification as the new statutory baseline, the penalty amounts declined significantly in this rulemaking from their current values.
Finally, we are adding several penalties to the existing table in 33 CFR 27.3 that had been inadvertently omitted from regulatory text. These penalties include a penalty for intentional interference with a broadcast (codified at 14 U.S.C. 88(e)), a clean hulls penalty for recreational and commercial vessels (33 U.S.C. 3852(c)), vessel documentation relating to mobile offshore drilling units (46 U.S.C. 12151(a)(2), and hazardous material training penalties (49 U.S.C. 5123(a)(3)).Start Printed Page 42993
Table 4—U.S. Coast Guard Civil Penalties Adjustments
Penalty name Citation Current penalty Baseline penalty * (year) (statutory citation) Multiplier ** Preliminary new penalty [multiplier × baseline penalty] Adjusted new penalty [increase capped at 150% more than current penalty] Saving Life and Property 14 U.S.C. 88(c) $10,000 $10,000 (2014) (Pub. L. 113-281) 1.00171 $10,017 $10,017 Saving Life and Property; Intentional Interference with Broadcast 14 U.S.C. 88(e) 1,000 $1,000 (2012) (Pub. L. 112-213) 1.02819 1,028 1,028 Confidentiality of Medical Quality Assurance Records (first offense) 14 U.S.C. 645(i); 33 CFR 27.3 4,000 $3,000 (1992) (Pub. L. 102-587) 1.67728 5,032 5,032 Confidentiality of Medical Quality Assurance Records (subsequent offenses) 14 U.S.C. 645(i); 33 CFR 27.3 30,000 $20,000 (1992) (Pub. L. 102-587) 1.67728 33,546 33,546 Aquatic Nuisance Species in Waters of the United States 16 U.S.C. 4711(g)(1); 33 CFR 27.3 35,000 $25,000 (1996) (Pub. L. 104-332) 1.50245 37,561 37,561 Obstruction of Revenue Officers by Masters of Vessels 19 U.S.C. 70; 33 CFR 27.3 3,000 $2,000 (1935) 17.36044 34,721 7,500 Obstruction of Revenue Officers by Masters of Vessels—Minimum Penalty 19 U.S.C. 70; 33 CFR 27.3 700 $500 (1935) 17.36044 8,680 1,750 Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge 19 U.S.C. 1581(d) 5,000 $5,000 (1930) N/A N/A *** 5,000 Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge—Minimum Penalty 19 U.S.C. 1581(d) 1,000 $1,000 (1930) N/A N/A *** 1,000 Anchorage Ground/Harbor Regulations General 33 U.S.C. 471; 33 CFR 27.3 110 $10,000 (2010) (Pub. L. 111-281) 1.08745 10,875 10,875 Anchorage Ground/Harbor Regulations St. Mary's river 33 U.S.C. 474; 33 CFR 27.3 300 $200 (1946) (11 FR 7875) 11.43452 2,287 750 Bridges/Failure to Comply with Regulations 33 U.S.C. 495(b); 33 CFR 27.3 25,000 $25,000 (2008) (Pub. L. 108-293) 1.09819 27,455 27,455 Bridges/Drawbridges 33 U.S.C. 499(c); 33 CFR 27.3 25,000 $25,000 (2008) (Pub. L. 108-293) 1.09819 27,455 27,455 Bridges/Failure to Alter Bridge Obstructing Navigation 33 U.S.C. 502(c); 33 CFR 27.3 25,000 $25,000 (2008) (Pub. L. 108-293) 1.09819 27,455 27,455 Bridges/Maintenance and Operation 33 U.S.C. 533(b); 33 CFR 27.3 25,000 $25,000 (2008) (Pub. L. 108-293) 1.09819 27,455 27,455 Bridge to Bridge Communication; Master, Person in Charge or Pilot 33 U.S.C. 1208(a); 33 CFR 27.3 800 $500 (1971) (Pub. L. 92-63) 5.81511 2,908 2,000 Bridge to Bridge Communication; Vessel 33 U.S.C. 1208(b); 33 CFR 27.3 800 $500 (1971) (Pub. L. 92-63) 5.81511 2,908 2,000 PWSA Regulations 33 U.S.C. 1232(a); 33 CFR 27.3 40,000 $25,000 (1978) (Pub. L. 95-474) 3.54453 88,613 88,613 Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge 33 U.S.C. 1236(b); 33 CFR 27.3 8,000 $5,000 (1990) (Pub. L. 101-380) 1.78156 8,908 8,908 Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel 33 U.S.C. 1236(c); 33 CFR 27.3 8,000 $5,000 (1990) (Pub. L. 101-380) 1.78156 8,908 8,908 Vessel Navigation: Regattas or Marine Parades; Other Persons 33 U.S.C. 1236(d); 33 CFR 27.3 3,000 $2,500 (1990) (Pub. L. 101-380) 1.78156 4,454 4,454 Start Printed Page 42994 Oil/Hazardous Substances: Discharges (Class I per violation) 33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Oil/Hazardous Substances: Discharges (Class I total under paragraph) 33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3 40,000 $25,000 (1990) (Pub. L. 101-380) 1.78156 44,539 44,539 Oil/Hazardous Substances: Discharges (Class II per day of violation) 33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Oil/Hazardous Substances: Discharges (Class II total under paragraph) 33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3 190,000 $125,000 (1990) (Pub. L. 101-380) 1.78156 222,695 222,695 Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment 33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3 40,000 $25,000 (1990) (Pub. L. 101-380) 1.78156 44,539 44,539 Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment 33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3 1,100 $1,000 (1990) (Pub. L. 101-380) 1.78156 1,782 1,782 Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment) 33 U.S.C. 1321(b)(7)(B); 33 CFR 27.3 40,000 $25,000 (1990) (Pub. L. 101-380) 1.78156 44,539 44,539 Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment) 33 U.S.C. 1321(b)(7)(C); 33 CFR 27.3 40,000 $25,000 (1990) (Pub. L. 101-380) 1.78156 44,539 44,539 Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment 33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3 4,000 $3,000 (1990) (Pub. L. 101-380) 1.78156 5,345 5,345 Oil/Hazardous Substances: Discharges, Gross Negligence—Minimum Penalty (Judicial Assessment) 33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3 130,000 $100,000 (1990) (Pub. L. 101-380) 1.78156 178,156 178,156 Marine Sanitation Devices; Operating 33 U.S.C. 1322(j); 33 CFR 27.3 3,000 $2,000 (1972) (Pub. L. 92-500) 5.62265 11,245 7,500 Marine Sanitation Devices; Sale or Manufacture 33 U.S.C. 1322(j); 33 CFR 27.3 8,000 $5,000 (1972) (Pub. L. 92-500) 5.62265 28,113 20,000 International Navigation Rules; Operator 33 U.S.C. 1608(a); 33 CFR 27.3 8,000 $5,000 (1980) (Pub. L. 96-591) 2.80469 14,023 14,023 International Navigation Rules; Vessel 33 U.S.C. 1608(b); 33 CFR 27.3 8,000 $5,000 (1980) (Pub. L. 96-591) 2.80469 14,023 14,023 Pollution from Ships; General 33 U.S.C. 1908(b)(1); 33 CFR 27.3 40,000 $25,000 (1980) (Pub. L. 96-478) 2.80469 70,117 70,117 Pollution from Ships; False Statement 33 U.S.C. 1908(b)(1); 33 CFR 27.3 8,000 $5,000 (1980) (Pub. L. 96-478) 2.80469 14,023 14,023 Inland Navigation Rules; Operator 33 U.S.C. 2072(a); 33 CFR 27.3 8,000 $5,000 (1980) (Pub. L. 96-591) 2.80469 14,023 14,023 Inland Navigation Rules; Vessel 33 U.S.C. 2072(b); 33 CFR 27.3 8,000 $5,000 (1980) (Pub. L. 96-591) 2.80469 14,023 14,023 Shore Protection; General 33 U.S.C. 2609(a); 33 CFR 27.3 40,000 $25,000 (1988) (Pub. L. 100-688) 1.97869 49,467 49,467 Shore Protection; Operating Without Permit 33 U.S.C. 2609(b); 33 CFR 27.3 15,000 $10,000 (1988) (Pub. L. 100-688) 1.97869 19,787 19,787 Oil Pollution Liability and Compensation 33 U.S.C. 2716a(a); 33 CFR 27.3 40,000 $25,000 (1990) (Pub. L. 101-380) 1.78156 44,539 44,539 Start Printed Page 42995 Clean Hulls 33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3 37,500 $37,500 (2010) (Pub. L. 111-281) 1.08745 40,779 40,779 Clean Hulls—related to false statements 33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3 50,000 $50,000 (2010) (Pub. L. 111-281) 1.08745 54,373 54,373 Clean Hulls—Recreational Vessel 33 U.S.C. 3852(c); 33 CFR 27.3 5,000 $5,000 (2010) (Pub. L. 111-281) 1.08745 5,437 5,437 Hazardous Substances, Releases, Liability, Compensation (Class I) 42 U.S.C. 9609(a); 33 CFR 27.3 35,000 $25,000 (1986) (Pub. L. 99-499) 2.15628 53,907 53,907 Hazardous Substances, Releases, Liability, Compensation (Class II) 42 U.S.C. 9609(b); 33 CFR 27.3 35,000 $25,000 (1986) (Pub. L. 99-499) 2.15628 53,907 53,907 Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense) 42 U.S.C. 9609(b); 33 CFR 27.3 100,000 $75,000 (1986) (Pub. L. 99-499) 2.15628 161,721 161,721 Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment) 42 U.S.C. 9609(c); 33 CFR 27.3 35,000 $25,000 (1986) (Pub. L. 99-499) 2.15628 53,907 53,907 Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense) 42 U.S.C. 9609(c); 33 CFR 27.3 100,000 $75,000 (1986) (Pub. L. 99-499) 2.15628 161,721 161,721 Safe Containers for International Cargo 46 U.S.C. App 1505(a)(2) (codified as 46 USC 80509); 33 CFR 27.3 8,000 $5,000 (2006) (Pub. L. 109-304) 1.17858 5,893 5,893 Suspension of Passenger Service 46 U.S.C. App 1805(c)(2) (codified 46 USC 70305); 33 CFR 27.3 70,000 $50,000 (2006) (Pub. L. 109-304; 46 USC 70305) 1.17858 58,929 58,929 Vessel Inspection or Examination Fees 46 U.S.C. 2110(e); 33 CFR 27.3 8,000 $5,000 (1990) (Pub. L. 101-508) 1.78156 8,908 8,908 Alcohol and Dangerous Drug Testing 46 U.S.C. 2115; 33 CFR 27.3 7,000 $5,000 (1998) (Pub. L. 105-383) 1.45023 7,251 7,251 Negligent Operations: Recreational Vessels 46 U.S.C. 2302(a); 33 CFR 27.3 6,000 $5,000 (2002) (Pub. L. 107-295) 1.31185 6,559 6,559 Negligent Operations: Other Vessels 46 U.S.C. 2302(a); 33 CFR 27.3 30,000 $25,000 (2002) (Pub. L. 107-295) 1.31185 32,796 32,796 Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug 46 U.S.C. 2302(c)(1); 33 CFR 27.3 7,000 $5,000 (1998) (Pub. L. 105-383) 1.45023 7,251 7,251 Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent 46 U.S.C. 2306(a)(4); 33 CFR 27.3 8,000 $5,000 (1984) (Pub. L. 98-498) 2.25867 11,293 11,293 Vessel Reporting Requirements: Master 46 U.S.C. 2306(b)(2); 33 CFR 27.3 1,100 $1,000 (1984) (Pub. L. 98-498) 2.25867 2,259 2,259 Immersion Suits 46 U.S.C. 3102(c)(1); 33 CFR 27.3 8,000 $5,000 (1984) (Pub. L. 98-623) 2.25867 11,293 11,293 Inspection Permit 46 U.S.C. 3302(i)(5); 33 CFR 27.3 1,100 $1,000 (1983) (Pub. L. 98-89) 2.35483 2,355 2,355 Vessel Inspection; General 46 U.S.C. 3318(a); 33 CFR 27.3 8,000 $5,000 (1984) (Pub. L. 98-498) 2.25867 11,293 11,293 Vessel Inspection; Nautical School Vessel 46 U.S.C. 3318(g); 33 CFR 27.3 8,000 $5,000 (1984) (Pub. L. 98-498) 2.25867 11,293 11,293 Vessel Inspection; Failure to Give Notice IAW 3304(b) 46 U.S.C. 3318(h); 33 CFR 27.3 1,100 $1,000 (1984) (Pub. L. 98-498) 2.25867 2,259 2,259 Start Printed Page 42996 Vessel Inspection; Failure to Give Notice IAW 3309(c) 46 U.S.C. 3318(i); 33 CFR 27.3 1,100 $1,000 (1984) (Pub. L. 98-498) 2.25867 2,259 2,259 Vessel Inspection; Vessel ≥1600 Gross Tons 46 U.S.C. 3318(j)(1); 33 CFR 27.3 15,000 $10,000 (1984) (Pub. L. 98-498) 2.25867 22,587 22,587 Vessel Inspection; Vessel <1600 Gross Tons 46 U.S.C. 3318(j)(1); 33 CFR 27.3 3,000 $2,000 (1984) (Pub. L. 98-498) 2.25867 4,517 4,517 Vessel Inspection; Failure to Comply with 3311(b) 46 U.S.C. 3318(k); 33 CFR 27.3 15,000 $10,000 (1984) (Pub. L. 98-498) 2.25867 22,587 22,587 Vessel Inspection; Violation of 3318(b)-3318(f) 46 U.S.C. 3318(l); 33 CFR 27.3 8,000 $5,000 (1984) (Pub. L. 98-498) 2.25867 11,293 11,293 List/count of Passengers 46 U.S.C. 3502(e); 33 CFR 27.3 110 $100 (1983) (Pub. L. 98-89) 2.35483 235 235 Notification to Passengers 46 U.S.C. 3504(c); 33 CFR 27.3 15,000 $10,000 (1983) (Pub. L. 98-89) 2.35483 23,548 23,548 Notification to Passengers; Sale of Tickets 46 U.S.C. 3504(c); 33 CFR 27.3 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Copies of Laws on Passenger Vessels; Master 46 U.S.C. 3506; 33 CFR 27.3 300 $200 (1983) (Pub. L. 98-89) 2.35483 471 471 Liquid Bulk/Dangerous Cargo 46 U.S.C. 3718(a)(1); 33 CFR 27.3 40,000 $25,000 (1983) (Pub. L. 98-89) 2.35483 58,871 58,871 Uninspected Vessels 46 U.S.C. 4106; 33 CFR 27.3 8,000 $5,000 (1988) (Pub. L. 100-540) 1.97869 9,893 9,893 Recreational Vessels (maximum for related series of violations) 46 U.S.C. 4311(b)(1); 33 CFR 27.3 300,000 $250,000 (2004) (Pub. L. 108-293) 1.24588 311,470 311,470 Recreational Vessels; Violation of 4307(a) 46 U.S.C. 4311(b)(1); 33 CFR 27.3 6,000 $5,000 (2004) (Pub. L. 108-293) 1.24588 6,229 6,229 Recreational vessels 46 U.S.C. 4311(c); 33 CFR 27.3 1,100 $1,000 (1983) (Pub. L. 98-89) 2.35483 2,355 2,355 Uninspected Commercial Fishing Industry Vessels 46 U.S.C. 4507; 33 CFR 27.3 8,000 $5,000 (1988) (Pub. L. 100-424) 1.97869 9,893 9,893 Abandonment of Barges 46 U.S.C. 4703; 33 CFR 27.3 1,100 $1,000 (1992) (Pub. L. 102-587) 1.67728 1,677 1,677 Load Lines 46 U.S.C. 5116(a); 33 CFR 27.3 8,000 $5,000 (1986) (Pub. L. 99-509) 2.15628 10,781 10,781 Load Lines; Violation of 5112(a) 46 U.S.C. 5116(b); 33 CFR 27.3 15,000 $10,000 (1986) (Pub. L. 99-509) 2.15628 21,563 21,563 Load Lines; Violation of 5112(b) 46 U.S.C. 5116(c); 33 CFR 27.3 8,000 $5,000 (1986) (Pub. L. 99-509) 2.15628 10,781 10,781 Reporting Marine Casualties 46 U.S.C. 6103(a); 33 CFR 27.3 35,000 $25,000 (1996) (Pub. L. 104-324) 1.50245 37,561 37,561 Reporting Marine Casualties; Violation of 6104 46 U.S.C. 6103(b); 33 CFR 27.3 8,000 $5,000 (1988) (Pub. L. 100-424) 1.97869 9,893 9,893 Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement 46 U.S.C. 8101(e); 33 CFR 27.3 1,100 $1,000 (1990) (Pub. L. 101-380) 1.78156 1,782 1,782 Start Printed Page 42997 Manning of Inspected Vessels 46 U.S.C. 8101(f); 33 CFR 27.3 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by USCG 46 U.S.C. 8101(g); 33 CFR 27.3 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Manning of Inspected Vessels; Freight Vessel <100 GT, Small Passenger Vessel, or Sailing School Vessel 46 U.S.C. 8101(h); 33 CFR 27.3 1,100 $1,000 (1983) (Pub. L. 98-89) 2.35483 2,355 2,355 Watchmen on Passenger Vessels 46 U.S.C. 8102(a) 1,100 $1,000 (1983) (Pub. L. 98-89) 2.35483 2,355 2,355 Citizenship Requirements 46 U.S.C. 8103(f) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Watches on Vessels; Violation of 8104(a) or (b) 46 U.S.C. 8104(i) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Watches on Vessels; Violation of 8104(c), (d), (e), or (h) 46 U.S.C. 8104(j) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Staff Department on Vessels 46 U.S.C. 8302(e) 110 $100 (1983) (Pub. L. 98-89) 2.35483 235 235 Officer's Competency Certificates 46 U.S.C. 8304(d) 110 $100 (1983) (Pub. L. 98-89) 2.35483 235 235 Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 46 U.S.C. 8502(e) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Coastwise Pilotage; Individual 46 U.S.C. 8502(f) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Federal Pilots 46 U.S.C. 8503 40,000 $25,000 (1984) (Pub. L. 98-557) 2.25867 56,467 56,467 Merchant Mariners Documents 46 U.S.C. 8701(d) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Crew Requirements 46 U.S.C. 8702(e) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Small Vessel Manning 46 U.S.C. 8906 35,000 $25,000 (1996) (Pub. L. 104-324) 1.50245 37,561 37,561 Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 46 U.S.C. 9308(a) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Pilotage: Great Lakes; Individual 46 U.S.C. 9308(b) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Pilotage: Great Lakes; Violation of 9303 46 U.S.C. 9308(c) 15,000 $10,000 (1990) (Pub. L. 101-380) 1.78156 17,816 17,816 Failure to Report Sexual Offense 46 U.S.C. 10104(b) 8,000 $5,000 (1989) (Pub. L. 101-225) 1.89361 9,468 9,468 Pay Advances to Seamen 46 U.S.C. 10314(a)(2) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Pay Advances to Seamen; Remuneration for Employment 46 U.S.C. 10314(b) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Start Printed Page 42998 Allotment to Seamen 46 U.S.C. 10315(c) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Seamen Protection; General 46 U.S.C. 10321 7,000 $5,000 (1993) (Pub. L. 103-206) 1.63238 8,162 8,162 Coastwise Voyages: Advances 46 U.S.C. 10505(a)(2) 7,000 $5,000 (1993) (Pub. L. 103-206) 1.63238 8,162 8,162 Coastwise Voyages: Advances; Remuneration for Employment 46 U.S.C. 10505(b) 7,000 $5,000 (1993) (Pub. L. 103-206) 1.63238 8,162 8,162 Coastwise Voyages: Seamen Protection; General 46 U.S.C. 10508(b) 7,000 $5,000 (1993) (Pub. L. 103-206) 1.63238 8,162 8,162 Effects of Deceased Seamen 46 U.S.C. 10711 300 $200 (1983) (Pub. L. 98-89) 2.35483 471 471 Complaints of Unfitness 46 U.S.C. 10902(a)(2) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Proceedings on Examination of Vessel 46 U.S.C. 10903(d) 110 $100 (1983) (Pub. L. 98-89) 2.35483 235 235 Permission to Make Complaint 46 U.S.C. 10907(b) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Accommodations for Seamen 46 U.S.C. 11101(f) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Medicine Chests on Vessels 46 U.S.C. 11102(b) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Destitute Seamen 46 U.S.C. 11104(b) 110 $100 (1983) (Pub. L. 98-89) 2.35483 235 235 Wages on Discharge 46 U.S.C. 11105(c) 800 $500 (1983) (Pub. L. 98-89) 2.35483 1,177 1,177 Log Books; Master Failing to Maintain 46 U.S.C. 11303(a) 300 $200 (1983) (Pub. L. 98-89) 2.35483 471 471 Log Books; Master Failing to Make Entry 46 U.S.C. 11303(b) 300 $200 (1983) (Pub. L. 98-89) 2.35483 471 471 Log Books; Late Entry 46 U.S.C. 11303(c) 200 $150 (1983) (Pub. L. 98-89) 2.35483 353 353 Carrying of Sheath Knives 46 U.S.C. 11506 80 $50 (1983) (Pub. L. 98-89) 2.35483 118 118 Vessel Documentation 46 U.S.C. 12151(a)(1) 15,000 $15,000 (2012) (Pub. L. 112-213) 1.02819 15,423 15,423 Documentation of Vessels—Related to Activities involving mobile offshore drilling units 46 U.S.C. 12151(a)(2) 25,000 $25,000 (2012) (Pub. L. 112-213) 1.02819 25,705 25,705 Vessel Documentation; Fishery Endorsement 46 U.S.C. 12151(c) 130,000 $100,000 (2006) (Pub. L. 109-304) 1.17858 117,858 117,858 Numbering of Undocumented Vessels—Willful violation 46 U.S.C. 12309(a) 6,000 $5,000 (1983) (Pub. L. 98-89) 2.35483 11,774 11,774 Numbering of Undocumented Vessels 46 U.S.C. 12309(b) 1,100 $1,000 (1983) (Pub. L. 98-89) 2.35483 2,355 2,355 Vessel Identification System 46 U.S.C. 12507(b) 15,000 $10,000 (1988) (Pub. L. 100-710) 1.97869 19,787 19,787 Start Printed Page 42999 Measurement of Vessels 46 U.S.C. 14701 30,000 $20,000 (1986) (Pub. L. 99-509) 2.15628 43,126 43,126 Measurement; False Statements 46 U.S.C. 14702 30,000 $20,000 (1986) (Pub. L. 99-509) 2.15628 43,126 43,126 Commercial Instruments and Maritime Liens 46 U.S.C. 31309 15,000 $10,000 (1988) (Pub. L. 100-710) 1.97869 19,787 19,787 Commercial Instruments and Maritime Liens; Mortgagor 46 U.S.C. 31330(a)(2) 15,000 $10,000 (1988) (Pub. L. 100-710) 1.97869 19,787 19,787 Commercial Instruments and Maritime Liens; Violation of 31329 46 U.S.C. 31330(b)(2) 35,000 $25,000 (1988) (Pub. L. 100-710) 1.97869 49,467 49,467 Port Security 46 U.S.C. 70119(a) 30,000 $25,000 (2002) (Pub. L. 107-295) 1.31185 32,796 32,796 Port Security—Continuing Violations 46 U.S.C. 70119(b) 50,000 $50,000 (2006) (Pub. L. 109-241) 1.17858 58,929 58,929 Maritime Drug Law Enforcement 46 U.S.C. 70506(c) 5,000 $5,000 (2010) (Pub. L. 111-281) 1.08745 5,437 5,437 Hazardous Materials: Related to Vessels 49 U.S.C. 5123(a)(1) 75,000 $75,000 (2012) (Pub. L. 112-141) 1.02819 77,114 77,114 Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or substantial Damage to Property 49 U.S.C. 5123(a)(2) 175,000 $175,000 (2012) (Pub. L. 112-141) 1.02819 179,933 179,933 Hazardous Materials: Related to Vessels; Training 49 U.S.C. 5123(a)(3) 450 $450 (2012) (Pub. L. 112-141) 1.02819 463 463 * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. *** Exempt as under the Tariff Act. E. Transportation Security Administration
The Transportation Security Administration (TSA) is updating its civil penalties regulation in accordance with the 2015 Act. Pursuant to its statutory authority in 49 U.S.C. 114(v), TSA may impose penalties for violations of any statute that TSA administers, whether an implementing regulation or order imposes the penalty.[6] TSA assesses these penalties for a wide variety of aviation and surface security requirements, including violations of TSA's requirements applicable to Transportation Worker Identification Credentials (TWIC),[7] as well as violations of requirements described in chapter 449 of Title 49 of the U.S. Code. These penalties can apply to a wide variety of situations, as described in the statutory and regulatory provisions, as well as in guidance that TSA publishes.
TSA's maximum civil penalty amounts are located in 49 CFR 1503.401. Over the years, Congress has increased the amount of those penalties to reflect the importance of maintaining aviation security. In section 1602 of the Homeland Security Act of 2002 (Pub. L. 107-296 (Nov. 25, 2002)), Congress raised the maximum civil penalty amounts per violation for certain aviation security statutes. Additionally, in section 503(b) of the Vision 100—Century of Aviation Reauthorization Act (Vision 100) (Pub. L. 108-176 (Dec. 12, 2003)), Congress raised the total civil penalty amount per case that TSA may assess.
In this rulemaking, we are also making several minor adjustments to the regulatory text in section 1503.401 beyond simply updating the penalty numbers. First, we are eliminating the text in paragraph (d), “Inflation adjustment,” because it is no longer needed. Pursuant to the 2015 Act, TSA will carry out inflation adjustments annually in the future, so there is no need for this text. Each year, TSA will update the amounts with current figures per the latest adjustment.
Additionally, TSA is correcting a minor error that appeared in section 1503.401(c). Previously, subsection Start Printed Page 43000(c)(1), which prescribed penalties for certain aviation-related violations, stated that the penalty against an entity that is operating a non-aircraft operator business was limited to $50,000. However, that statement incorrectly applied the limiting provision in 49 U.S.C. 46301(d)(8)(C), which applies the $50,000 limitation (unadjusted for inflation) only to individuals and small businesses. TSA can assess the full amount of $400,000 (adjusted for inflation) against an entity that is not an individual or small business, and operating a non-aircraft operator business who is subject to this fine. We have made this correction by removing the inaccurate clause from paragraph (c)(1) and adding a new paragraph (c)(2) explicitly stating that an entity operating an on-aircraft operator business is subject to the full fine. We are redesignating existing paragraph (c)(2) as (c)(3).
Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. Table 5 below contains a full list of the penalties assessed by the Transportation Security Administration, where the associated violation occurred after November 2, 2015.
Table 5—Transportation Security Administration Civil Penalties Adjustments
Penalty name Citation Current penalty Baseline penalty * (year) Multiplier ** Preliminary new penalty [multiplier × baseline penalty] Adjusted new penalty [increase capped at 150% more than current penalty] Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by a person operating an aircraft for the transportation of passengers or property for compensation 49 U.S.C. 46301(a)(1), (4); 49 CFR 1503.401(c)(2) $27,500 (up to a total of $400,000 per civil penalty action) $25,000 (2003) (up to a total of $400,000 per civil penalty action) 1.28561 $32,140 (up to a total of $514,244 per civil penalty action) $32,140 (up to a total of $514,244 per civil penalty action). Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by an individual (except an airman serving as an airman), any person not operating an aircraft for the transportation of passengers or property for compensation, or a small business concern 49 U.S.C. 46301(a)(1), (4); 49 CFR 1503.401(c)(1) $11,000 (up to a total of $50,000 total for small businesses, $400,000 for others) $10,000 (2003) (up to a total of $50,000 total for small businesses, $400,000 for others) 1.28561 $12,856 (up to a total of $64,281 total for small businesses, $514,244 for others) $12,856 (up to a total of $64,281 total for small businesses, $514,244 for others). Violation of any other provision of title 49 U.S.C. or of 46 U.S.C. ch. 701, a regulation prescribed, or order issued thereunder 49 U.S.C. 114(v); 49 CFR 1503.401(b) $10,000 (up to a total of $50,000 total for small businesses, $400,000 for others) $10,000 (2009) (up to a total of $50,000 total for small businesses, $400,000 for others) 1.10020 $11,002 (up to a total of $55,010 total for small businesses, $440,080 for others) $11,002 (up to a total of $55,010 total for small businesses, $440,080 for others). * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. III. Administrative Procedure Act
The Administrative Procedure Act (APA) generally requires agencies to publish a notice of proposed rulemaking in the Federal Register (5 U.S.C. 553(b)) and to provide interested persons with the opportunity to submit comments (5 U.S.C. 553(c)). The APA, however, provides an exception to the notice and public comment requirements where the “agency for good cause finds . . . that notice and public procedure thereon are impracticable, unnecessary, or contrary to public interest.” 5 U.S.C. 553(b)(B).
DHS is promulgating this rule to ensure that the amount of civil penalties that DHS assesses or enforces reflects the statutorily mandated ranges as adjusted for inflation. Pursuant to 5 U.S.C. 553(b)(3)(B), there is good cause to issue this rule without prior public notice or opportunity for public comment, because it would be impracticable and unnecessary. The 2015 Act directed agencies to “adjust civil monetary penalties through an interim final rulemaking” and to make subsequent annual adjustments for inflation to civil monetary penalties notwithstanding section 553 of title 5 of the U.S. Code. In addition, the 2015 Act provides a clear formula for adjustment of the civil penalties, leaving DHS and its components with little room for discretion. DHS and its components have been charged only with performing ministerial computations to determine the amounts of adjustments for inflation to civil monetary penalties. Accordingly, prior public notice and comment are not required for this rule.
IV. Regulatory Analyses
A. Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866. Accordingly, the Office of Management Start Printed Page 43001and Budget (OMB) has not reviewed this rule.
This final rule makes nondiscretionary adjustments to existing civil monetary penalties in accordance with the 2015 Act and OMB guidance.[8] DHS therefore did not consider alternatives and does not have the flexibility to alter the adjustments of the civil monetary penalty amounts as provided in this rule. To the extent this rule increases civil monetary penalties, it would result in an increase in transfers from persons or entities assessed a civil monetary penalty to the government.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act applies only to rules for which an agency publishes a notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). See 5 U.S.C. 601-612. The Regulatory Flexibility Act does not apply to this interim final rule, because a notice of proposed rulemaking is not required for the reasons stated above.
C. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. This interim final rule will not result in such an expenditure.
D. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this final rule, because this interim final rule does not trigger any new or revised recordkeeping or reporting.
Start List of SubjectsList of Subjects
6 CFR Part 27
- Reporting and recordkeeping requirements
- Security measures
8 CFR Part 270
- Administrative practice and procedure
- Aliens
- Employment
- Fraud
- Penalties
8 CFR Part 274a
- Administrative practice and procedure
- Aliens
- Employment
- Penalties
- Reporting and recordkeeping requirements
8 CFR Part 280
- Administrative practice and procedure
- Immigration
- Penalties
33 CFR Part 27
- Administrative practice and procedure
- Penalties
49 CFR Part 1503
- Administrative practice and procedure
- Investigations
- Law enforcement
- Penalties
Amendments to the Regulations
For the reasons stated in the preamble, the Department of Homeland Security amends 6 CFR part 27, 8 CFR parts 270, 274a, and 280, 33 CFR part 27, and 49 CFR part 1503 as follows:
Title 6—Domestic Security
Start PartPART 27—CHEMICAL FACILITY ANTI-TERRORISM STANDARDS
End Part Start Amendment Part1. The authority citation for part 27 is revised to read as follows:
End Amendment Part Start Amendment Part2. In § 27.300, revise paragraph (b)(3) to read as follows:
End Amendment PartOrders.* * * * *(b) * * *
(3) Where the Assistant Secretary determines that a facility is in violation of an Order issued pursuant to paragraph (a) of this section and issues an Order Assessing Civil Penalty pursuant to paragraph (b)(1) of this section, a chemical facility is liable to the United States for a civil penalty of not more than $25,000 for each day during which the violation continues, if the violation of the Order occurred on or before November 2, 2015, or $32,796 for each day during which the violation of the Order continues, if the violation occurred after November 2, 2015.
* * * * *Title 8—Aliens and Nationality
Start PartPART 270—PENALTIES FOR DOCUMENT FRAUD
End Part Start Amendment Part3. The authority citation for part 270 is revised to read as follows:
End Amendment Part Start Amendment Part4. In § 270.3, revise paragraphs (b)(1)(ii)(A), (B), (C), and (D) to read as follows:
End Amendment PartPenalties.* * * * *(b) * * *
(1) * * *
(ii) * * *
(A) First offense under section 274C(a)(1) through (a)(4). Not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $375 and not exceeding $3,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act on or after March 27, 2008 and on or before November 2, 2015; and not less than $445 and not exceeding $3,563 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.
(B) First offense under section 274C(a)(5) or (a)(6). Not less than $250 and not exceeding $2,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act on or after March 27, 2008 and on or before November 2, 2015; and not less than $376 and not exceeding $3,005 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.
(C) Subsequent offenses under section 274C(a)(1) through (a)(4). Not less than $2,200 and not more than $5,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $3,200 and not exceeding $6,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $3,563 and not more than $8,908 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.
(D) Subsequent offenses under section 274C(a)(5) or (a)(6). Not less than $2,000 and not more than $5,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $2,200 and not exceeding $5,500 for each fraudulent Start Printed Page 43002document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $3,005 and not more than $7,512 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.
* * * * *PART 274a—CONTROL OF EMPLOYMENT OF ALIENS
End Part Start Amendment Part5. The authority citation for part 274a is revised to read as follows:
End Amendment Part Start Amendment Part6. In § 4a.8, revise (b) to read as follows:
End Amendment PartProhibition of indemnity bonds.* * * * *(b) Penalty. Any person or other entity who requires any individual to post a bond or security as stated in this section shall, after notice and opportunity for an administrative hearing in accordance with section 274A(e)(3)(B) of the Act, be subject to a civil monetary penalty of $1,000 for each violation before September 29, 1999, of $1,100 for each violation occurring on or after September 29, 1999 but on or before November 2, 2015, and of $2,156 for each violation occurring after November 2, 2015, and to an administrative order requiring the return to the individual of any amounts received in violation of this section or, if the individual cannot be located, to the general fund of the Treasury.
7. In § 274a.10, revise paragraphs (b)(1)(ii)(A),(B),(C), and (b)(1)(iii)(2) to read as follows:
End Amendment PartPenalties.* * * * *(b) * * *
(1) * * *
(ii) * * *
(A) First offense—not less than $275 and not more than $2,200 for each unauthorized alien with respect to whom the offense occurred before March 27, 2008; not less than $375 and not exceeding $3,200, for each unauthorized alien with respect to whom the offense occurred occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $539 and not more than $4,313 for each unauthorized alien with respect to whom the offense occurred occurring after November 2, 2015.
(B) Second offense—not less than $2,200 and not more than $5,500 for each unauthorized alien with respect to whom the second offense occurred before March 27, 2008; not less than $3,200 and not more than $6,500, for each unauthorized alien with respect to whom the second offense occurred on or after March 27, 2008 and on or before November 2, 2015; and not less than $4,313 and not more than $10,781 for each unauthorized alien with respect to whom the second offense occurred after November 2, 2015; or
(C) More than two offenses—not less than $3,300 and not more than $11,000 for each unauthorized alien with respect to whom the third or subsequent offense occurred before March 27, 2008; not less than $4,300 and not exceeding $16,000, for each unauthorized alien with respect to whom the third or subsequent offense occurred on or after March 27, 2008 and on or before November 2, 2015; and not less than $6,469 and not more than $21,563 for each unauthorized alien with respect to whom the third or subsequent offense occurred after November 2, 2015; and
(iii) * * *
(2) A respondent determined by the Service (if a respondent fails to request a hearing) or by an administrative law judge, to have failed to comply with the employment verification requirements as set forth in § 274a.2(b), shall be subject to a civil penalty in an amount of not less than $100 and not more than $1,000 for each individual with respect to whom such violation occurred before September 29, 1999; not less than $110 and not more than $1,100 for each individual with respect to whom such violation occurred on or after September 29, 1999 and on or before November 2, 2015; and not less than $216 and not more than $2,156 for each individual with respect to whom such violation occurred after November 2, 2015. In determining the amount of the penalty, consideration shall be given to:
(i) The size of the business of the employer being charged;
(ii) The good faith of the employer;
(iii) The seriousness of the violation;
(iv) Whether or not the individual was an unauthorized alien; and
(v) The history of previous violations of the employer.
* * * * *PART 280—IMPOSITION AND COLLECTION OF FINES
End Part Start Amendment Part8. The authority citation for part 280 is revised to read as follows:
End Amendment Part Start Amendment Part9. Revise § 280.53 to read as follows:
End Amendment PartCivil Monetary Penalties Inflation Adjustment.(a) Statutory authority. In accordance with the requirements of the Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, Sec. 701, 129 Stat. 599, the civil monetary penalties listed in paragraph (b) of this section are adjusted as provided in this paragraph (b).
(b) Adjustment of penalties. For violations occurring on or before November 2, 2015, the penalty amount prior to adjustment applies. For violations occurring after November 2, 2015, the listed penalties are adjusted as follows:
(1) Section 231(g) of the Act, Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States: From $1,100 to $1,312.
(2) Section 234 of the Act, Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens: From $3,200 to $3,563.
(3) Section 240B(d) of the Act, Penalties for failure to depart voluntarily: From $1,100 minimum/$5,500 maximum to $1,502 minimum/$7,512 maximum.
(4) Section 243(c)(1)(A) of the Act, Penalties for violations of removal orders relating to aliens transported on vessels or aircraft, under section 241(d) of the Act, or for costs associated with removal under section 241(e) of the Act: From $2,200 to $3,005;
(5) Penalties for failure to remove alien stowaways under section 241(d)(2): From $5,500 to $7,512.
(6) Section 251(d) of the Act, Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the Act: From $320 to $356; and penalties for use of alien crewmen for longshore work in violation of section 251(d) of the Act: From $7,500 to $8,908.
(7) Section 254(a) of the Act, Penalties for failure to control, detain, or remove alien crewmen: From $750 minimum/$4,300 maximum to $891 minimum/$5,345 maximum.
(8) Section 255 of the Act, Penalties for employment on passenger vessels of Start Printed Page 43003aliens afflicted with certain disabilities: From $1,100 to $1,782.
(9) Section 256 of the Act, Penalties for discharge of alien crewmen: From $1,500 minimum/$4,300 maximum to $2,672 minimum/$5,345 maximum.
(10) Section 257 of the Act, Penalties for bringing into the United States alien crewmen with intent to evade immigration laws: From $16,000 maximum to $17,816 maximum.
(11) Section 271(a) of the Act, Penalties for failure to prevent the unauthorized landing of aliens: From $4,300 to $5,345.
(12) Section 272(a) of the Act, Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground: From $4,300 to $5,345.
(13) Section 273(b) of the Act, Penalties for bringing to the United States aliens without required documentation: From $4,300 to $5,345.
(14) Section 274D of the Act, Penalties for failure to depart: From $550 to $751, for each day the alien is in violation.
(15) Section 275(b) of the Act, Penalties for improper entry: From $55 minimum/$275 maximum to $75 minimum/$376 maximum, for each entry or attempted entry.
Title 33—Navigation and Navigable Waters
PART 27—ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION
End Part Start Amendment Part10. The authority citation for part 27 continues to read as follows:
End Amendment Part Start Amendment Part11. Revise § 27.3 to read as follows:
End Amendment PartPenalty adjustment table.Table 1 identifies the statutes administered by the Coast Guard that authorize a civil monetary penalty. The “adjusted maximum penalty” is the maximum penalty authorized by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, as determined by the Coast Guard. The adjusted civil penalty amounts listed in Table 1 are applicable for penalty assessments issued after August 1, 2016, with respect to violations occurring after November 2, 2015. The applicable civil penalty amounts for violations occurring on or before November 2, 2015, are set forth in previously published regulations amending 33 CFR part 27.
Table 1—Civil Monetary Penalty Inflation Adjustments
U.S. Code citation Civil monetary penalty description 2016 adjusted maximum penalty amount ($) 14 U.S.C. 88(c) Saving Life and Property 10,017 14 U.S.C. 88(e) Saving Life and Property; Intentional Interference with Broadcast 1,028 14 U.S.C. 645(i) Confidentiality of Medical Quality Assurance Records (first offense) 5,032 14 U.S.C. 645(i) Confidentiality of Medical Quality Assurance Records (subsequent offenses) 33,546 16 U.S.C. 4711(g)(1) Aquatic Nuisance Species in Waters of the United States 37,561 19 U.S.C. 70 Obstruction of Revenue Officers by Masters of Vessels 7,500 19 U.S.C. 70 Obstruction of Revenue Officers by Masters of Vessels—Minimum Penalty 1,750 19 U.S.C. 1581(d) Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge 1 5,000 19 U.S.C. 1581(d) Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge—Minimum Penalty 1 1,000 33 U.S.C. 471 Anchorage Ground/Harbor Regulations General 10,875 33 U.S.C. 474 Anchorage Ground/Harbor Regulations St. Mary's River 750 33 U.S.C. 495(b) Bridges/Failure to Comply with Regulations 27,455 33 U.S.C. 499(c) Bridges/Drawbridges 27,455 33 U.S.C. 502(c) Bridges/Failure to Alter Bridge Obstructing Navigation 27,455 33 U.S.C. 533(b) Bridges/Maintenance and Operation 27,455 33 U.S.C. 1208(a) Bridge to Bridge Communication; Master, Person in Charge or Pilot 2,000 33 U.S.C. 1208(b) Bridge to Bridge Communication; Vessel 2,000 33 U.S.C. 1232(a) PWSA Regulations 88,613 33 U.S.C. 1236(b) Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge 8,908 33 U.S.C. 1236(c) Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel 8,908 33 U.S.C. 1236(d) Vessel Navigation: Regattas or Marine Parades; Other Persons 4,454 33 U.S.C. 1321(b)(6)(B)(i) Oil/Hazardous Substances: Discharges (Class I per violation) 17,816 33 U.S.C. 1321(b)(6)(B)(i) Oil/Hazardous Substances: Discharges (Class I total under paragraph) 44,539 33 U.S.C. 1321(b)(6)(B)(ii) Oil/Hazardous Substances: Discharges (Class II per day of violation) 17,816 33 U.S.C. 1321(b)(6)(B)(ii) Oil/Hazardous Substances: Discharges (Class II total under paragraph) 222,695 33 U.S.C. 1321(b)(7)(A) Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment 44,539 33 U.S.C. 1321(b)(7)(A) Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment 1,782 33 U.S.C. 1321(b)(7)(B) Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment) 44,539 33 U.S.C. 1321(b)(7)(C) Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment) 44,539 33 U.S.C. 1321(b)(7)(D) Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment 5,345 33 U.S.C. 1321(b)(7)(D) Oil/Hazardous Substances: Discharges, Gross Negligence—Minimum Penalty (Judicial Assessment) 178,156 33 U.S.C. 1322(j) Marine Sanitation Devices; Operating 7,500 33 U.S.C. 1322(j) Marine Sanitation Devices; Sale or Manufacture 20,000 33 U.S.C. 1608(a) International Navigation Rules; Operator 14,023 33 U.S.C. 1608(b) International Navigation Rules; Vessel 14,023 Start Printed Page 43004 33 U.S.C. 1908(b)(1) Pollution from Ships; General 70,117 33 U.S.C. 1908(b)(2) Pollution from Ships; False Statement 14,023 33 U.S.C. 2072(a) Inland Navigation Rules; Operator 14,023 33 U.S.C. 2072(b) Inland Navigation Rules; Vessel 14,023 33 U.S.C. 2609(a) Shore Protection; General 49,467 33 U.S.C. 2609(b) Shore Protection; Operating Without Permit 19,787 33 U.S.C. 2716a(a) Oil Pollution Liability and Compensation 44,539 33 U.S.C. 3852(a)(1)(A) Clean Hulls; Civil Enforcement 40,779 33 U.S.C. 3852(a)(1)(A) Clean Hulls; related to false statements 54,373 33 U.S.C. 3852(c) Clean Hulls; Recreational Vessels 5,437 42 U.S.C. 9609(a) Hazardous Substances, Releases, Liability, Compensation (Class I) 53,907 42 U.S.C. 9609(b) Hazardous Substances, Releases, Liability, Compensation (Class II) 53,907 42 U.S.C. 9609(b) Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense) 161,721 42 U.S.C. 9609(c) Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment) 53,907 42 U.S.C. 9609(c) Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense) 161,721 46 U.S.C. 80509(a) Safe Containers for International Cargo 5,893 46 U.S.C. 70305(c) Suspension of Passenger Service 58,929 46 U.S.C. 2110(e) Vessel Inspection or Examination Fees 8,908 46 U.S.C. 2115 Alcohol and Dangerous Drug Testing 7,251 46 U.S.C. 2302(a) Negligent Operations: Recreational Vessels 6,559 46 U.S.C. 2302(a) Negligent Operations: Other Vessels 32,796 46 U.S.C. 2302(c)(1) Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug 7,251 46 U.S.C. 2306(a)(4) Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent 11,293 46 U.S.C. 2306(b)(2) Vessel Reporting Requirements: Master 2,259 46 U.S.C. 3102(c)(1) Immersion Suits 11,293 46 U.S.C. 3302(i)(5) Inspection Permit 2,355 46 U.S.C. 3318(a) Vessel Inspection; General 11,293 46 U.S.C. 3318(g) Vessel Inspection; Nautical School Vessel 11,293 46 U.S.C. 3318(h) Vessel Inspection; Failure to Give Notice IAW 3304(b) 2,259 46 U.S.C. 3318(i) Vessel Inspection; Failure to Give Notice IAW 3309(c) 2,259 46 U.S.C. 3318(j)(1) Vessel Inspection; Vessel ≥1600 Gross Tons 22,587 46 U.S.C. 3318(j)(1) Vessel Inspection; Vessel <1600 Gross Tons 4,517 46 U.S.C. 3318(k) Vessel Inspection; Failure to Comply with 3311(b) 22,587 46 U.S.C. 3318(l) Vessel Inspection; Violation of 3318(b)-3318(f) 11,293 46 U.S.C. 3502(e) List/Count of Passengers 235 46 U.S.C. 3504(c) Notification to Passengers 23,548 46 U.S.C. 3504(c) Notification to Passengers; Sale of Tickets 1,177 46 U.S.C. 3506 Copies of Laws on Passenger Vessels; Master 471 46 U.S.C. 3718(a)(1) Liquid Bulk/Dangerous Cargo 58,871 46 U.S.C. 4106 Uninspected Vessels 9,893 46 U.S.C. 4311(b)(1) Recreational Vessels (maximum for related series of violations) 311,470 46 U.S.C. 4311(b)(1) Recreational Vessels; Violation of 4307(a) 6,229 46 U.S.C. 4311(c) Recreational Vessels 2,355 46 U.S.C. 4507 Uninspected Commercial Fishing Industry Vessels 9,893 46 U.S.C. 4703 Abandonment of Barges 1,677 46 U.S.C. 5116(a) Load Lines 10,781 46 U.S.C. 5116(b) Load Lines; Violation of 5112(a) 21,563 46 U.S.C. 5116(c) Load Lines; Violation of 5112(b) 10,781 46 U.S.C. 6103(a) Reporting Marine Casualties 37,561 46 U.S.C. 6103(b) Reporting Marine Casualties; Violation of 6104 9,893 46 U.S.C. 8101(e) Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement 1,782 46 U.S.C. 8101(f) Manning of Inspected Vessels 17,816 46 U.S.C. 8101(g) Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by USCG 17,816 46 U.S.C. 8101(h) Manning of Inspected Vessels; Freight Vessel <100 GT, Small Passenger Vessel, or Sailing School Vessel 2,355 46 U.S.C. 8102(a) Watchmen on Passenger Vessels 2,355 46 U.S.C. 8103(f) Citizenship Requirements 1,177 46 U.S.C. 8104(i) Watches on Vessels; Violation of 8104(a) or (b) 17,816 46 U.S.C. 8104(j) Watches on Vessels; Violation of 8104(c), (d), (e), or (h) 17,816 46 U.S.C. 8302(e) Staff Department on Vessels 235 46 U.S.C. 8304(d) Officer's Competency Certificates 235 46 U.S.C. 8502(e) Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 17,816 46 U.S.C. 8502(f) Coastwise Pilotage; Individual 17,816 46 U.S.C. 8503 Federal Pilots 56,467 46 U.S.C. 8701(d) Merchant Mariners Documents 1,177 46 U.S.C. 8702(e) Crew Requirements 17,816 Start Printed Page 43005 46 U.S.C. 8906 Small Vessel Manning 37,561 46 U.S.C. 9308(a) Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 17,816 46 U.S.C. 9308(b) Pilotage: Great Lakes; Individual 17,816 46 U.S.C. 9308(c) Pilotage: Great Lakes; Violation of 9303 17,816 46 U.S.C. 10104(b) Failure to Report Sexual Offense 9,468 46 U.S.C. 10314(a)(2) Pay Advances to Seamen 1,177 46 U.S.C. 10314(b) Pay Advances to Seamen; Remuneration for Employment 1,177 46 U.S.C. 10315(c) Allotment to Seamen 1,177 46 U.S.C. 10321 Seamen Protection; General 8,162 46 U.S.C. 10505(a)(2) Coastwise Voyages: Advances 8,162 46 U.S.C. 10505(b) Coastwise Voyages: Advances; Remuneration for Employment 8,162 46 U.S.C. 10508(b) Coastwise Voyages: Seamen Protection; General 8,162 46 U.S.C. 10711 Effects of Deceased Seamen 471 46 U.S.C. 10902(a)(2) Complaints of Unfitness 1,177 46 U.S.C. 10903(d) Proceedings on Examination of Vessel 235 46 U.S.C. 10907(b) Permission to Make Complaint 1,177 46 U.S.C. 11101(f) Accommodations for Seamen 1,177 46 U.S.C. 11102(b) Medicine Chests on Vessels 1,177 46 U.S.C. 11104(b) Destitute Seamen 235 46 U.S.C. 11105(c) Wages on Discharge 1,177 46 U.S.C. 11303(a) Log Books; Master Failing to Maintain 471 46 U.S.C. 11303(b) Log Books; Master Failing to Make Entry 471 46 U.S.C. 11303(c) Log Books; Late Entry 353 46 U.S.C. 11506 Carrying of Sheath Knives 118 46 U.S.C. 12151(a)(1) Vessel Documentation 15,423 46 U.S.C. 12151(a)(2) Documentation of Vessels—Related to activities involving mobile offshore drilling units 25,705 46 U.S.C. 12151(c) Vessel Documentation; Fishery Endorsement 117,858 46 U.S.C. 12309(a) Numbering of Undocumented Vessels—Willful violation 11,774 46 U.S.C. 12309(b) Numbering of Undocumented Vessels 2,355 46 U.S.C. 12507(b) Vessel Identification System 19,787 46 U.S.C. 14701 Measurement of Vessels 43,126 46 U.S.C. 14702 Measurement; False Statements 43,126 46 U.S.C. 31309 Commercial Instruments and Maritime Liens 19,787 46 U.S.C. 31330(a)(2) Commercial Instruments and Maritime Liens; Mortgagor 19,787 46 U.S.C. 31330(b)(2) Commercial Instruments and Maritime Liens; Violation of 31329 49,467 46 U.S.C. 70119(a) Port Security 32,796 46 U.S.C. 70119(b) Port Security—Continuing Violations 58,929 46 U.S.C. 70506 Maritime Drug Law Enforcement; Penalties 5,437 49 U.S.C. 5123(a)(1) Hazardous Materials: Related to Vessels—Maximum Penalty 77,114 49 U.S.C. 5123(a)(2) Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or Substantial Damage to Property 179,933 49 U.S.C. 5123(a)(3) Hazardous Materials: Related to Vessels—Training. 463 1 Enacted under the Tariff Act of 1930, exempt from inflation adjustments. Title 49—Transportation
Start PartPART 1503—INVESTIGATIVE AND ENFORCEMENT PROCEDURES
End Part Start Amendment Part12. The authority citation for part 1503 is revised to read as follows:
End Amendment Part Start Amendment Part13. Revise § 1503.401 to read as follows:
End Amendment PartMaximum penalty amounts.(a) General. TSA may assess civil penalties not exceeding the following amounts against a person for the violation of a TSA requirement.
(b) In general. Except as provided in paragraph (c) of this section, in the case of violation of title 49 U.S.C. or 46 U.S.C. chapter 701, or a regulation prescribed or order issued under any of those provisions, TSA may impose a civil penalty in the following amounts:
(1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern, as defined in section 3 of the Small Business Act (15 U.S.C. 632). For violations that occurred after November 2, 2015, $11,002 per violation, up to a total of $55,010 per civil penalty action, in the case of an individual or small business concern; and
(2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person. For violations that occurred after November 2, 2015, $11,002 per violation, up to a total of $440,080 per civil penalty action, in the case of any other person.
(c) Certain aviation related violations. In the case of a violation of 49 U.S.C. chapter 449 (except sections 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, or a regulation prescribed or order issued under any of those provisions, TSA may Start Printed Page 43006impose a civil penalty in the following amounts:
(1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern, as defined in section 3 of the Small Business Act (15 U.S.C. 632). For violations that occurred after November 2, 2015, $12,856 per violation, up to a total of 64,281 per civil penalty action, in the case of an individual (except an airman serving as an airman), or a small business concern.
(2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation. For violations that occurred after November 2, 2015, $12,856 per violation, up to a total of $514,244 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation.
(3) For violations that occurred on or before November 2, 2015, $25,000 per violation, up to a total of $400,000 per civil penalty action, in the case of a person operating an aircraft for the transportation of passengers or property for compensation (except an individual serving as an airman). For violations that occurred after November 2, 2015, $32,140 per violation, up to a total of $514,244 per civil penalty action, in the case of a person (except an individual serving as an airman) operating an aircraft for the transportation of passengers or property for compensation.
Jeh Charles Johnson,
Secretary.
Footnotes
1. The 2015 Act was enacted as part of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015).
Back to Citation2. OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A, 24 February 2016. https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
Back to Citation3. The 150 percent limitation is on the amount of the increase; therefore, the adjusted penalty levels are up to 250 percent of the levels in effect on November 2, 2015.
Back to Citation4. Section 550 has since been superseded by the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014 (Pub. L. 113-254). The new legislation codified the statutory authority for the CFATS program within Title XXI of the Homeland Security Act of 2002, as amended. See 6 U.S.C. 621 et seq.
Back to Citation5. Section 550(d) of the Department of Homeland Security Appropriations Act of 2007 set forth the CFATS penalty, providing that “[a]ny person who violates an order issued under this section shall be liable for a civil penalty under section 70119(a) of title 46, United States Code. After promulgation of the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014, the relevant U.S.C. citation is 6 U.S.C. 624(b)(1), which still refers to the civil penalty section in 46 U.S.C. 70119(a).
Back to Citation6. See 49 U.S.C. 114(v), as amended by sec. 1302 of the Implementing Recommendations of the 9/11 Commission Act of 2007 (Pub. L. 110-53, 121 Stat. 266 (Aug. 3, 2007)).
Back to Citation7. See, e.g., 46 U.S.C. 70105, 49 U.S.C. 46302 and 46303, and U.S.C. ch. 449.
Back to Citation8. OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 24 February 2016. https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
Back to Citation[FR Doc. 2016-15673 Filed 6-30-16; 8:45 am]
BILLING CODE 9110-09-P; 9111-14-P; 9111-28-P; 9110-04-P; 9110-05-P
Document Information
- Published:
- 07/01/2016
- Department:
- Transportation Security Administration
- Entry Type:
- Rule
- Action:
- Interim final rule with request for comments.
- Document Number:
- 2016-15673
- Dates:
- Effective Date. This rule is effective on August 1, 2016.
- Pages:
- 42987-43006 (20 pages)
- Docket Numbers:
- Docket No. DHS-2016-0034
- RINs:
- 1601-AA80: Civil Monetary Penalty Adjustments for Inflation
- RIN Links:
- https://www.federalregister.gov/regulations/1601-AA80/civil-monetary-penalty-adjustments-for-inflation
- Topics:
- Administrative practice and procedure, Aliens, Employment, Fraud, Investigations, Law enforcement, Penalties, Reporting and recordkeeping requirements, Security measures
- PDF File:
- 2016-15673.pdf
- Supporting Documents:
- » Request for Applications: Appointment to the Surface Transportation Security Advisory Committee
- CFR: (7)
- 49 CFR 27.3
- 49 CFR 27.300
- 49 CFR 270.3
- 49 CFR 274a.8
- 49 CFR 274a.10
- More ...