2024-00354. Inflation Adjustment of Civil Monetary Penalties  

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    AGENCY:

    Federal Maritime Commission.

    ACTION:

    Final rule.

    SUMMARY:

    The Federal Maritime Commission (Commission) is publishing this final rule to adjust for inflation the civil monetary penalties assessed or enforced by the Commission, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act). The 2015 Act requires that agencies adjust and publish their new civil penalties by January 15 each year.

    DATES:

    This rule is effective January 15, 2024.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    David Eng, Secretary; Phone: (202) 523–5725; Email: secretary@fmc.gov.

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    SUPPLEMENTARY INFORMATION:

    This rule adjusts the civil monetary penalties assessable by the Commission in accordance with the 2015 Act, which became effective on November 2, 2015. Public Law 114–74, section 701. The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), Public Law 101–410, 104 Stat. 890 (codified as amended at 28 U.S.C. 2461 note), in order to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect.

    The 2015 Act requires agencies to adjust civil monetary penalties under their jurisdiction by January 15 each year, based on changes in the consumer price index (CPI–U) for the month of October in the previous calendar year. On December 19, 2023, the Office of Management and Budget published guidance stating that the CPI–U multiplier for October 2023 is 1.03241.[1] In order to complete the annual adjustment, the Commission must multiply the most recent civil penalty amounts in 46 CFR part 506 by the multiplier, 1.03241.

    Rulemaking Analyses and Notices

    Notice and Effective Date

    Adjustments under the FCPIAA, as amended by the 2015 Act, are not subject to the procedural rulemaking requirements of the Administrative Procedure Act (APA) (5 U.S.C. 553), including the requirements for prior notice, an opportunity for comment, and a delay between the issuance of a final rule and its effective date.[2] The 2015 Act requires that the Commission adjust its civil monetary penalties no later than January 15 of each year.

    Congressional Review Act

    The rule is not a “major rule” as defined by the Congressional Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result in: (1) an annual effect on the economy of $100,000,000 or more; (2) a major increase in costs or prices; or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based companies to compete with foreign-based companies. 5 U.S.C. 804(2). Start Printed Page 1465

    Regulatory Flexibility Act

    The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 601–612) provides that whenever an agency promulgates a final rule after being required to publish a notice of proposed rulemaking under the APA (5 U.S.C. 553), the agency must prepare and make available a final regulatory flexibility analysis describing the impact of the rule on small entities or the head of the agency must certify that the rule will not have a significant economic impact on a substantial number of small entities. 5 U.S.C. 604–605. As indicated above, this final rule is not subject to the APA's notice and comment requirements, and the Commission is not required to either conduct a regulatory flexibility analysis or certify that the final rule would not have a significant economic impact on a substantial number of small entities.

    Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3521) requires an agency to seek and receive approval from the Office of Management and Budget (OMB) before collecting information from the public. 44 U.S.C. 3507. The agency must submit collections of information in rules to OMB in conjunction with the publication of the notice of proposed rulemaking. 5 CFR 1320.11. This final rule does not contain any collection of information, as defined by 44 U.S.C. 3502(3) and 5 CFR 1320.3(c).

    Regulation Identifier Number

    The Commission assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions (Unified Agenda). The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. The public may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda, available at http://www.reginfo.gov/​public/​do/​eAgendaMain.

    Start List of Subjects

    List of Subjects in 46 CFR Part 506

    • Administrative practice and procedure
    • Claims
    • Penalties
    End List of Subjects

    For the reasons stated in the preamble, 46 CFR part 506 is amended as follows:

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    PART 506—CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

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    1. The authority citation for part 506 continues to read as follows:

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    Authority: 28 U.S.C. 2461.

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    2. Amend § 506.4 by revising paragraph (d) to read as follows:

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    Cost of living adjustments of civil monetary penalties.
    * * * * *

    (d) Inflation adjustment. Maximum civil monetary penalties within the jurisdiction of the Federal Maritime Commission are adjusted for inflation as follows:

    Table 1 to Paragraph ( d )

    United States Code citationCivil monetary penalty descriptionMaximum penalty as of January 15, 2023Maximum penalty as of January 15, 2024
    46 U.S.C. 42304Adverse impact on U.S. carriers by foreign shipping practices$2,479,282$2,559,636
    46 U.S.C. 41107(a)Knowing and Willful violation/Shipping Act of 1984, or Commission regulation or order70,75273,045
    46 U.S.C. 41107(a)Violation of Shipping Act of 1984, Commission regulation or order, not knowing and willful14,14914,608
    46 U.S.C. 41108(b)Operating in foreign commerce after tariff suspension141,506146,092
    46 U.S.C. 42104Failure to provide required reports, etc./Merchant Marine Act of 192011,16211,524
    46 U.S.C. 42106Adverse shipping conditions/Merchant Marine Act of 19202,232,2812,304,629
    46 U.S.C. 42108Operating after tariff or service contract suspension/Merchant Marine Act of 1920111,614115,231
    46 U.S.C. 44102, 44104Failure to establish financial responsibility for non-performance of transportation28,194 94129,108 971
    46 U.S.C. 44103, 44104Failure to establish financial responsibility for death or injury28,194 94129,108 971
    31 U.S.C. 3802(a)(1)Program Fraud Civil Remedies Act/making false claim13,50813,946
    31 U.S.C. 3802(a)(2)Program Fraud Civil Remedies Act/giving false statement13,50813,946
    Start Signature

    By the Commission.

    David Eng,

    Secretary.

    End Signature End Supplemental Information

    Footnotes

    1.  Office of Management and Budget, M–24–07, Implementation of Penalty Inflation Adjustments for 2023, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 1 (Dec. 19, 2023) (M–23–05).

    Back to Citation

    2.   Id. at 3–4. Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101–410, section 4(b)(2), 104 Stat. 890 (codified at 28 U.S.C. 2461 note).

    Back to Citation

    [FR Doc. 2024–00354 Filed 1–9–24; 8:45 am]

    BILLING CODE 6730–02–P

Document Information

Effective Date:
1/15/2024
Published:
01/10/2024
Department:
Federal Maritime Commission
Entry Type:
Rule
Action:
Final rule.
Document Number:
2024-00354
Dates:
This rule is effective January 15, 2024.
Pages:
1464-1465 (2 pages)
Docket Numbers:
Docket No. FMC-2024-0002
RINs:
3072-AC98
Topics:
Administrative practice and procedure, Claims, Penalties
PDF File:
2024-00354.pdf
CFR: (1)
46 CFR 506.4