Civil Monetary Penalty Inflation Adjustment Rule, 64431-64434 [2012-25773]
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Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Rules and Regulations
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under Section 6(b) of
Executive Order 12866, Regulatory
Planning and Review, dated September
30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
D. Regulatory Flexibility Act
E. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the changes to the
FTR do not impose recordkeeping or
information collection requirements, or
the collection of information from
offerors, contractors, or members of the
public that require the approval of the
Office of Management and Budget
(OMB) under 44 U.S.C. 3501, et seq.
F. Small Business Regulatory
Enforcement Fairness Act
This final rule is also exempt from
Congressional review prescribed under
5 U.S.C. 801 since it relates solely to
agency management and personnel.
List of Subjects in 41 CFR Parts 300–3,
301–2, 301–10, 301–11, 301–52, 301–70
and 301–71
Government employees, Travel and
per diem expenses, Administrative
practices and procedures.
Dated: July 5, 2012.
Dan Tangherlini,
Acting Administrator of General Services.
wreier-aviles on DSK5TPTVN1PROD with
Interim Rule Adopted as Final Without
Changes
Accordingly, the interim rule
amending 41 CFR Parts 300–3, 301–2,
301–10, 301–11, 301–52, 301–70, and
301–71, which was published in the
Federal Register at 76 FR 55273 on
September 7, 2011, is adopted as a final
rule with no changes.
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Surface Transportation Board
49 CFR Part 1022
[Docket No. EP 716]
Civil Monetary Penalty Inflation
Adjustment Rule
Surface Transportation Board.
Final rule.
AGENCY:
This final rule will not have a
significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the revisions are not considered
substantive. This final rule is also
exempt from the Regulatory Flexibility
Act per 5 U.S.C. 553 (a)(2) because it
applies to agency management.
However, this final rule is being
published to provide transparency in
the promulgation of Federal policies.
[FR Doc. 2012–25945 Filed 10–19–12; 8:45 am]
DEPARTMENT OF TRANSPORTATION
ACTION:
The Surface Transportation
Board (Board) is issuing a final rule to
adjust the Board’s civil monetary
penalties for inflation on a periodic
basis pursuant to the Federal Civil
Penalties Inflation Act of 1990, as
amended by the Debt Collection
Improvement Act of 1996. Prior to the
issuance of this rule, the Board’s
penalties have not been adjusted for
inflation since they were prescribed in
the Interstate Commerce Commission
Termination Act of 1995 (ICCTA). As
mandated by the Debt Collection
Improvement Act, the Board’s initial
increase of its penalties cannot exceed
10%. The Board is required to review its
penalties again at least once every four
years thereafter and adjust them as
necessary for inflation according to a
specified formula.
DATES: This rule is effective on October
22, 2012.
ADDRESSES: Information or questions
regarding this final rule should
reference Docket No. EP 716 and be in
writing addressed to: Office of
Proceedings, Surface Transportation
Board, 395 E. Street SW., Washington,
DC 20423–0001.
FOR FURTHER INFORMATION CONTACT:
Marc Lerner, (202) 245–0390. Federal
Information Relay Service (FIRS) for the
hearing impaired: 1–800–877–8339.
SUPPLEMENTARY INFORMATION:
Background. The Debt Collection
Improvement Act of 1996 (DCIA), Public
Law 104–134, 110 Stat. 1321, amended
the Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law
101–410, 104 Stat. 890 (codified as
amended at 28 U.S.C. 2461 note), to
require each federal agency to adopt
regulations at least once every four years
that adjust for inflation the maximum
amount of civil monetary penalties
under the statutes administered by the
agency.1 As defined, a civil monetary
SUMMARY:
1 Agency means an Executive agency as defined
under 5 U.S.C. 105. ‘‘Executive agency’’ includes an
‘‘independent establishment,’’ which is defined at
5 U.S.C. 104 in relevant part as ‘‘an establishment
in the executive branch’’ that is not an ‘‘Executive
department.’’ For purposes of the requirements of
the DCIA, we determine that the Board is a covered
agency.
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64431
penalty is a statutorily prescribed
specific amount, or maximum amount,
provided by federal law that can be
assessed by a federal agency and that
can be enforced by the agency pursuant
to an administrative proceeding or a
civil action in a federal court. Congress
passed this legislation on the basis of its
findings that: (1) The power to impose
civil monetary penalties is important to
deterring violations of federal law and
furthering the policy goals of federal
laws and regulations; and (2) inflation
has diminished the impact of these
penalties.
Under the DCIA, the inflation
adjustment is calculated by increasing
the maximum civil monetary penalty
amount per violation by the Cost-ofLiving Adjustment, which is the
percentage (if any) by which the
Consumer Price Index for June of the
year preceding the adjustment exceeds
the Consumer Price Index for June of the
year the civil monetary penalty amount
was last set or adjusted, multiplied by
the statutory maximum amount,
rounded to the nearest specified amount
using the formula contained in the
statute. The DCIA requires agencies to
round off the increase of each civil
monetary penalty depending on its
dollar amount: if the penalty is greater
than $0 and less than or equal to $100,
the increase is to be rounded to the
nearest $10; if the penalty is greater than
$100, but less than or equal to $1,000,
the increase is rounded to the nearest
$100; if the penalty is greater than
$1,000 but less than or equal to $10,000,
the increase is to be rounded to the
nearest multiple of $1,000; if the penalty
is greater than $10,000 but less than or
equal to $100,000, the increase is to be
rounded to the nearest multiple of
$5,000; if the penalty is greater than
$100,000 but less than or equal to
$200,000, the increase is to be rounded
to the nearest multiple of $10,000; and
lastly, if the penalty is greater than
$200,000, the increase is to be rounded
to the nearest $25,000.
Discussion. The statutory definition of
civil monetary penalty covers the civil
penalty provisions under the Rail
Carrier (Part A), Motor and Water
Carriers (Part B), and Pipeline Carrier
(Part C) provisions of the Interstate
Commerce Act (ICA), as amended by
ICCTA. The Board’s civil (and criminal)
penalty authority related to rail
transportation appears at 49 U.S.C.
11901–11908. The Board’s penalty
authority related to motor carriers, water
carriers, brokers, and freight forwarders
appears at 49 U.S.C. 14901–14915. The
Board’s penalty authority related to
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pipeline carriers appears at 49 U.S.C.
16101–16106.2
Because the Board was created in
1996, the year 2000 would have been
the first time that the Board should have
amended its regulations to adjust its
civil monetary penalties for inflation.3
Subsequent amendments should have
been effected in 2004, 2008, and in
2012. The Board’s initial adjustment,
however, cannot exceed 10% of each
penalty, regardless of the rate of
inflation. As set forth in the rule, the
Board is adding 49 CFR 1022 to adjust
the penalty for each violation for which
a statutory minimum or maximum
amount is specified under the ICA as
amended by ICCTA. These adjusted
penalties will apply only to violations
which occur after the effective date of
this regulation.
Immediate Final Rule. The Board has
no discretion to set alternative levels of
adjusted civil monetary penalties, since
the amount of the inflation adjustment
must be calculated in accordance with
the statutory formula. Accordingly, the
Board is issuing this regulation as a final
rule, without opportunity for public
notice and comment. The
Administrative Procedure Act (APA), 5
U.S.C. 553(b)(B), does not require that
process ‘‘when the agency for good
cause finds’’ that public notice and
comment are ‘‘impracticable,
unnecessary, or contrary to the public
interest.’’ The Board finds that
solicitation of public comments in this
rulemaking is unnecessary and
impracticable because Congress has
prescribed that agencies adjust the civil
monetary penalties under their
jurisdiction and has provided no
discretion to the agencies regarding the
substance of the adjustments. The Board
is only required to determine the
amount of inflation adjustments by
performing technical, ministerial
computations. Thus, there is no need for
affected parties to have 30 days’ notice
or opportunity to comment prior to the
effectiveness of this regulation to adjust
their conduct because the regulation
concerns penalties for conduct that is
already illegal under existing law.
Accordingly, the Board has determined
that there is good cause to make this
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2 The
Board also has criminal penalty authority,
enforceable in a federal criminal court. Congress
has not, however, authorized federal agencies to
adjust statutorily-prescribed criminal penalty
provisions for inflation, and this rule does not
address those provisions.
3 See GAO Report, GAO–03–409, Civil Penalties:
Agencies Unable to Fully Adjust Penalties for
Inflation Under Current Law (March 2003), at 46
(STB not required to make initial adjustments until
Jan. 1, 2000; as of Jun. 30, 2002, STB had not made
the adjustments).
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regulation effective immediately upon
publication.
Regulatory Flexibility Statement. The
Regulatory Flexibility Act (RFA), as
amended by the Small Business
Regulatory Enforcement Fairness Act of
1996, 5 U.S.C. 801 et seq., generally
requires an agency to prepare a
regulatory flexibility analysis of any rule
subject to notice and comment
rulemaking requirements, unless the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.
Because the Board has determined that
notice and comment are not required
under the APA for this rulemaking, the
requirements of the RFA do not apply.
Paperwork Reduction Act. This final
rule does not contain a new or amended
information collection requirement
subject to the Paperwork Reduction Act
of 1995, 44 U.S.C. 3501 et seq.
Effective Date. For the same reasons
the Board has determined that public
notice and comment is unnecessary and
impracticable, the Board finds that it
has good cause to make this regulation
effective upon publication.
List of Subjects in 49 CFR Part 1022
Administrative practice and
procedures, Brokers, Civil penalties,
Freight forwarders, Motor carriers,
Pipeline carriers, Rail carriers, Water
carriers.
Decided: October 12, 2012.
By the Board, Chairman Elliott, Vice
Chairman Mulvey, and Commissioner
Begeman.
Jeffrey Herzig,
Clearance Clerk.
For the reasons set forth in the
preamble, the Surface Transportation
Board amends title 49, chapter X, of the
Code of Federal Regulations by adding
part 1022 to read as follows:
PART 1022—CIVIL MONETARY
PENALTY INFLATION ADJUSTMENT
Sec.
1022.1 Scope and purpose.
1022.2 Definitions.
1022.3 Civil monetary penalty inflation
adjustment.
1022.4 Cost-of-living adjustments of civil
monetary penalties.
Authority: 5 U.S.C. 551–557; 28 U.S.C.
2461 note; 49 U.S.C. 11901, 14901, 14903,
14904, 14905, 14906, 14907, 14908, 14910,
14915, 16101, 16103.
§ 1022.1
Scope and purpose.
The purpose of this part is to establish
a method to adjust for inflation the civil
monetary penalties provided by law
within the jurisdiction of the Board.
These penalties shall be subject to
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review and adjustment at least once
every four years using the method
specified in the Debt Collection
Improvement Act of 1996, Public Law
104–134, 110 Stat. 1321, as it amends
the Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law
101–410, 104 Stat. 890 (codified as
amended at 28 U.S.C. 2461 note). The
inflation adjustment is calculated by
increasing the maximum civil monetary
penalty amount per violation by the
Cost-of-Living Adjustment, which is the
percentage (if any) by which the
Consumer Price Index for June of the
year preceding the adjustment exceeds
the Consumer Price Index for June of the
year the civil monetary penalty amount
was last set or adjusted, multiplied by
the statutory maximum amount,
rounded to the nearest specified amount
using the formula contained in the
statute. The initial adjustment, however,
is capped at 10% of the penalty,
regardless of the applicable rate of
inflation.
§ 1022.2
Definitions.
As used in this part:
(a) Board means the Surface
Transportation Board.
(b) Civil monetary penalty means any
penalty, fine, or other sanction that:
(1)(i) Is for a specific monetary
amount as provided by federal law; or
(ii) Has a maximum amount provided
by federal law;
(2) Is assessed or enforced by the
Board pursuant to federal law; and
(3) Is assessed or enforced pursuant to
an administrative proceeding or a civil
action in the federal courts.
(c) Consumer Price Index means the
Consumer Price Index for all urban
consumers published by the Department
of Labor.
(d) Cost-of-Living Adjustment means
the percentage (if any) for each civil
monetary penalty by which the
Consumer Price Index for the month of
June of the calendar year preceding the
adjustment exceeds the Consumer Price
Index for the month of June of the
calendar year in which the amount of
such civil monetary penalty was last set
or adjusted pursuant to law.
§ 1022.3 Civil monetary penalty inflation
adjustment.
The Board shall, immediately, and at
least once every four years thereafter—
(a) By regulation adjust each civil
monetary penalty provided by law
within the jurisdiction of the Board by
the inflation adjustment described in
§ 1022.4; and
(b) Publish each such adjustment in
the Federal Register.
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Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Rules and Regulations
§ 1022.4 Cost-of-living adjustments of civil
monetary penalties.
(a) Pursuant to the Debt Collection
Improvement Act of 1996, as it amends
the Federal Civil Penalties Inflation
Adjustment Act of 1990, the increase of
a civil monetary penalty assessed under
this section shall be determined by
multiplying the Cost-of-Living
Adjustment by the existing maximum
civil monetary penalty, rounded to the
nearest specified amount using the
guidelines set forth in paragraph (b) of
this section.
(b) Any increase determined under
paragraph (a) of this section shall be
rounded to the nearest:
(1) Multiple of $10 in the case of
penalties less than or equal to $100;
(2) Multiple of $100 in the case of
penalties greater than $100 but less than
or equal to $1,000;
(3) Multiple of $1,000 in the case of
penalties greater than $1,000 but less
than or equal to $10,000;
(4) Multiple of $5,000 in the case of
penalties greater than $10,000 but less
than or equal to $100,000;
U.S. Code citation
64433
(5) Multiple of $10,000 in the case of
penalties greater than $100,000 but less
than or equal to $200,000; or
(6) Multiple of $25,000 in the case of
penalties greater than $200,000.
(c) The first adjustment of any civil
monetary penalty required by § 1022.3
may not exceed 10% of such penalty.
(d) The first application of the
inflation adjustment method required by
the statute results in the following
adjustments to the civil monetary
penalties within the jurisdiction of the
Board:
Maximum
penalty
amount
year 1996
Civil monetary penalty description
Adjusted
maximum
penalty
amount
year 2012
Rail Carrier Civil Penalties
49 U.S.C. 11901(a) ..........................
49 U.S.C. 11901(b) ..........................
49 U.S.C. 11901(b) ..........................
49 U.S.C. 11901(c) ..........................
49
49
49
49
49
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
11901(d) ..........................
11901(d) ..........................
11901(e)(1) .....................
11901(e)(2) .....................
11901(e)(3)–(4) ...............
Unless otherwise specified, maximum penalty for each knowing violation under this part, and for each day.
For each violation under sections 11124(a)(2) or (b) ...............................
For each day violation continues ..............................................................
Maximum penalty for each knowing violation under sections 10901–
10906.
For each violation under sections 11123 or 11124(a)(1) .........................
For each day violation continues ..............................................................
For each violation under sections 11141–11145 ......................................
For each violation under section 11144(b)(1) ...........................................
For each violation of reporting requirements, for each day ......................
$5,000
$5,500
500
25
5,000
550
27.50
5,500
100–500
50
500
100
100
110–550
55
550
110
110
500
550
2,000
2,200
20,000
22,000
1,000
1,100
10,000
11,000
25,000
27,500
2,000
5,000
100,000
2,200
5,500
110,000
200
250
500
220
275
550
2,000
500
2,000
10,000
2,200
550
2,200
11,000
200
250
5,000
2,000
500
10,000
220
275
5,500
2,200
550
11,000
5,000
500
100
5,500
550
110
Motor and Water Carrier Civil Penalties
49 U.S.C. 14901(a) ..........................
49 U.S.C. 14901(a) ..........................
49 U.S.C. 14901(b) ..........................
49 U.S.C. 14901(d)(1) .....................
49 U.S.C. 14901(d)(2) .....................
49 U.S.C. 14901(d)(3) .....................
49 U.S.C. 14901(e) ..........................
49 U.S.C. 14901(e)(2) .....................
49 U.S.C. 14903(a) ..........................
49 U.S.C. 14904(a) ..........................
49 U.S.C. 14904(a) ..........................
49 U.S.C. 14904(b)(1) .....................
U.S.C.
U.S.C.
U.S.C.
U.S.C.
14904(b)(1) .....................
14904(b)(2) .....................
14904(b)(2) .....................
14905(a) ..........................
49
49
49
49
49
49
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49
49
49
49
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
14906 ..............................
14906 ..............................
14907 ..............................
14908(a)(2) .....................
14910 ..............................
14915(a) ..........................
Minimum penalty for each violation under sections 13501–13508,
13531, 13901, 13902(c), and for each day.
Minimum penalty if not registered to provide passenger transportation,
for each violation under section 13901, and for each day.
Maximum penalty for each violation of the hazardous waste rules under
section 3001 of the Solid Waste Disposal Act.
Minimum penalty for each violation of household good regulations, and
for each day.
Minimum penalty for each instance of transportation of household
goods if broker provides estimate without carrier agreement.
Minimum penalty for each instance of transportation of household
goods without being registered.
Minimum penalty for each violation of a transportation rule .....................
Minimum penalty for each additional violation ..........................................
Maximum penalty for undercharge or overcharge of tariff rate, for each
violation.
For first violation, rebates at less than the rate in effect ..........................
For all subsequent violations ....................................................................
Maximum penalty for first violation for undercharges by freight forwarders.
Maximum penalty for subsequent violations .............................................
Maximum penalty for other first violations under section 13702 ..............
Maximum penalty for subsequent violations .............................................
Maximum penalty for each knowing violation of section 14103(a), and
any violation of section 14103(b).
For first attempt to evade regulation .........................................................
Minimum amount for each subsequent attempt to evade regulation .......
Maximum penalty for recordkeeping/reporting violations .........................
Maximum penalty for violation of section 14908(a)(1) ..............................
When another civil penalty is not specified under this part, for each day
Minimum penalty for holding a household goods shipment hostage, for
each day.
Pipeline Carrier Civil Penalties
49 U.S.C. 16101(a) ..........................
49 U.S.C. 16101(b)(1) .....................
49 U.S.C. 16101(b)(2) .....................
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Maximum penalty for violation of this part, for each day ..........................
For each recordkeeping violation under section 15722, each day ...........
For each inspection violation liable under section 15722, each day ........
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Maximum
penalty
amount
year 1996
U.S. Code citation
Civil monetary penalty description
49 U.S.C. 16101(b)(3) .....................
49 U.S.C. 16103(a) ..........................
For each reporting violation under section 15723, each day ...................
Maximum penalty for improper disclosure of information .........................
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100
1,000
Adjusted
maximum
penalty
amount
year 2012
110
1,100
]]>Agencies
[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Rules and Regulations]
[Pages 64431-64434]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25773]
=======================================================================
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
49 CFR Part 1022
[Docket No. EP 716]
Civil Monetary Penalty Inflation Adjustment Rule
AGENCY: Surface Transportation Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Surface Transportation Board (Board) is issuing a final
rule to adjust the Board's civil monetary penalties for inflation on a
periodic basis pursuant to the Federal Civil Penalties Inflation Act of
1990, as amended by the Debt Collection Improvement Act of 1996. Prior
to the issuance of this rule, the Board's penalties have not been
adjusted for inflation since they were prescribed in the Interstate
Commerce Commission Termination Act of 1995 (ICCTA). As mandated by the
Debt Collection Improvement Act, the Board's initial increase of its
penalties cannot exceed 10%. The Board is required to review its
penalties again at least once every four years thereafter and adjust
them as necessary for inflation according to a specified formula.
DATES: This rule is effective on October 22, 2012.
ADDRESSES: Information or questions regarding this final rule should
reference Docket No. EP 716 and be in writing addressed to: Office of
Proceedings, Surface Transportation Board, 395 E. Street SW.,
Washington, DC 20423-0001.
FOR FURTHER INFORMATION CONTACT: Marc Lerner, (202) 245-0390. Federal
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.
SUPPLEMENTARY INFORMATION:
Background. The Debt Collection Improvement Act of 1996 (DCIA),
Public Law 104-134, 110 Stat. 1321, amended the Federal Civil Penalties
Inflation Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890
(codified as amended at 28 U.S.C. 2461 note), to require each federal
agency to adopt regulations at least once every four years that adjust
for inflation the maximum amount of civil monetary penalties under the
statutes administered by the agency.\1\ As defined, a civil monetary
penalty is a statutorily prescribed specific amount, or maximum amount,
provided by federal law that can be assessed by a federal agency and
that can be enforced by the agency pursuant to an administrative
proceeding or a civil action in a federal court. Congress passed this
legislation on the basis of its findings that: (1) The power to impose
civil monetary penalties is important to deterring violations of
federal law and furthering the policy goals of federal laws and
regulations; and (2) inflation has diminished the impact of these
penalties.
---------------------------------------------------------------------------
\1\ Agency means an Executive agency as defined under 5 U.S.C.
105. ``Executive agency'' includes an ``independent establishment,''
which is defined at 5 U.S.C. 104 in relevant part as ``an
establishment in the executive branch'' that is not an ``Executive
department.'' For purposes of the requirements of the DCIA, we
determine that the Board is a covered agency.
---------------------------------------------------------------------------
Under the DCIA, the inflation adjustment is calculated by
increasing the maximum civil monetary penalty amount per violation by
the Cost-of-Living Adjustment, which is the percentage (if any) by
which the Consumer Price Index for June of the year preceding the
adjustment exceeds the Consumer Price Index for June of the year the
civil monetary penalty amount was last set or adjusted, multiplied by
the statutory maximum amount, rounded to the nearest specified amount
using the formula contained in the statute. The DCIA requires agencies
to round off the increase of each civil monetary penalty depending on
its dollar amount: if the penalty is greater than $0 and less than or
equal to $100, the increase is to be rounded to the nearest $10; if the
penalty is greater than $100, but less than or equal to $1,000, the
increase is rounded to the nearest $100; if the penalty is greater than
$1,000 but less than or equal to $10,000, the increase is to be rounded
to the nearest multiple of $1,000; if the penalty is greater than
$10,000 but less than or equal to $100,000, the increase is to be
rounded to the nearest multiple of $5,000; if the penalty is greater
than $100,000 but less than or equal to $200,000, the increase is to be
rounded to the nearest multiple of $10,000; and lastly, if the penalty
is greater than $200,000, the increase is to be rounded to the nearest
$25,000.
Discussion. The statutory definition of civil monetary penalty
covers the civil penalty provisions under the Rail Carrier (Part A),
Motor and Water Carriers (Part B), and Pipeline Carrier (Part C)
provisions of the Interstate Commerce Act (ICA), as amended by ICCTA.
The Board's civil (and criminal) penalty authority related to rail
transportation appears at 49 U.S.C. 11901-11908. The Board's penalty
authority related to motor carriers, water carriers, brokers, and
freight forwarders appears at 49 U.S.C. 14901-14915. The Board's
penalty authority related to
[[Page 64432]]
pipeline carriers appears at 49 U.S.C. 16101-16106.\2\
---------------------------------------------------------------------------
\2\ The Board also has criminal penalty authority, enforceable
in a federal criminal court. Congress has not, however, authorized
federal agencies to adjust statutorily-prescribed criminal penalty
provisions for inflation, and this rule does not address those
provisions.
---------------------------------------------------------------------------
Because the Board was created in 1996, the year 2000 would have
been the first time that the Board should have amended its regulations
to adjust its civil monetary penalties for inflation.\3\ Subsequent
amendments should have been effected in 2004, 2008, and in 2012. The
Board's initial adjustment, however, cannot exceed 10% of each penalty,
regardless of the rate of inflation. As set forth in the rule, the
Board is adding 49 CFR 1022 to adjust the penalty for each violation
for which a statutory minimum or maximum amount is specified under the
ICA as amended by ICCTA. These adjusted penalties will apply only to
violations which occur after the effective date of this regulation.
---------------------------------------------------------------------------
\3\ See GAO Report, GAO-03-409, Civil Penalties: Agencies Unable
to Fully Adjust Penalties for Inflation Under Current Law (March
2003), at 46 (STB not required to make initial adjustments until
Jan. 1, 2000; as of Jun. 30, 2002, STB had not made the
adjustments).
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Immediate Final Rule. The Board has no discretion to set
alternative levels of adjusted civil monetary penalties, since the
amount of the inflation adjustment must be calculated in accordance
with the statutory formula. Accordingly, the Board is issuing this
regulation as a final rule, without opportunity for public notice and
comment. The Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B),
does not require that process ``when the agency for good cause finds''
that public notice and comment are ``impracticable, unnecessary, or
contrary to the public interest.'' The Board finds that solicitation of
public comments in this rulemaking is unnecessary and impracticable
because Congress has prescribed that agencies adjust the civil monetary
penalties under their jurisdiction and has provided no discretion to
the agencies regarding the substance of the adjustments. The Board is
only required to determine the amount of inflation adjustments by
performing technical, ministerial computations. Thus, there is no need
for affected parties to have 30 days' notice or opportunity to comment
prior to the effectiveness of this regulation to adjust their conduct
because the regulation concerns penalties for conduct that is already
illegal under existing law. Accordingly, the Board has determined that
there is good cause to make this regulation effective immediately upon
publication.
Regulatory Flexibility Statement. The Regulatory Flexibility Act
(RFA), as amended by the Small Business Regulatory Enforcement Fairness
Act of 1996, 5 U.S.C. 801 et seq., generally requires an agency to
prepare a regulatory flexibility analysis of any rule subject to notice
and comment rulemaking requirements, unless the agency certifies that
the rule will not have a significant economic impact on a substantial
number of small entities. Because the Board has determined that notice
and comment are not required under the APA for this rulemaking, the
requirements of the RFA do not apply.
Paperwork Reduction Act. This final rule does not contain a new or
amended information collection requirement subject to the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501 et seq.
Effective Date. For the same reasons the Board has determined that
public notice and comment is unnecessary and impracticable, the Board
finds that it has good cause to make this regulation effective upon
publication.
List of Subjects in 49 CFR Part 1022
Administrative practice and procedures, Brokers, Civil penalties,
Freight forwarders, Motor carriers, Pipeline carriers, Rail carriers,
Water carriers.
Decided: October 12, 2012.
By the Board, Chairman Elliott, Vice Chairman Mulvey, and
Commissioner Begeman.
Jeffrey Herzig,
Clearance Clerk.
For the reasons set forth in the preamble, the Surface
Transportation Board amends title 49, chapter X, of the Code of Federal
Regulations by adding part 1022 to read as follows:
PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT
Sec.
1022.1 Scope and purpose.
1022.2 Definitions.
1022.3 Civil monetary penalty inflation adjustment.
1022.4 Cost-of-living adjustments of civil monetary penalties.
Authority: 5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C.
11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910,
14915, 16101, 16103.
Sec. 1022.1 Scope and purpose.
The purpose of this part is to establish a method to adjust for
inflation the civil monetary penalties provided by law within the
jurisdiction of the Board. These penalties shall be subject to review
and adjustment at least once every four years using the method
specified in the Debt Collection Improvement Act of 1996, Public Law
104-134, 110 Stat. 1321, as it amends the Federal Civil Penalties
Inflation Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890
(codified as amended at 28 U.S.C. 2461 note). The inflation adjustment
is calculated by increasing the maximum civil monetary penalty amount
per violation by the Cost-of-Living Adjustment, which is the percentage
(if any) by which the Consumer Price Index for June of the year
preceding the adjustment exceeds the Consumer Price Index for June of
the year the civil monetary penalty amount was last set or adjusted,
multiplied by the statutory maximum amount, rounded to the nearest
specified amount using the formula contained in the statute. The
initial adjustment, however, is capped at 10% of the penalty,
regardless of the applicable rate of inflation.
Sec. 1022.2 Definitions.
As used in this part:
(a) Board means the Surface Transportation Board.
(b) Civil monetary penalty means any penalty, fine, or other
sanction that:
(1)(i) Is for a specific monetary amount as provided by federal
law; or
(ii) Has a maximum amount provided by federal law;
(2) Is assessed or enforced by the Board pursuant to federal law;
and
(3) Is assessed or enforced pursuant to an administrative
proceeding or a civil action in the federal courts.
(c) Consumer Price Index means the Consumer Price Index for all
urban consumers published by the Department of Labor.
(d) Cost-of-Living Adjustment means the percentage (if any) for
each civil monetary penalty by which the Consumer Price Index for the
month of June of the calendar year preceding the adjustment exceeds the
Consumer Price Index for the month of June of the calendar year in
which the amount of such civil monetary penalty was last set or
adjusted pursuant to law.
Sec. 1022.3 Civil monetary penalty inflation adjustment.
The Board shall, immediately, and at least once every four years
thereafter--
(a) By regulation adjust each civil monetary penalty provided by
law within the jurisdiction of the Board by the inflation adjustment
described in Sec. 1022.4; and
(b) Publish each such adjustment in the Federal Register.
[[Page 64433]]
Sec. 1022.4 Cost-of-living adjustments of civil monetary penalties.
(a) Pursuant to the Debt Collection Improvement Act of 1996, as it
amends the Federal Civil Penalties Inflation Adjustment Act of 1990,
the increase of a civil monetary penalty assessed under this section
shall be determined by multiplying the Cost-of-Living Adjustment by the
existing maximum civil monetary penalty, rounded to the nearest
specified amount using the guidelines set forth in paragraph (b) of
this section.
(b) Any increase determined under paragraph (a) of this section
shall be rounded to the nearest:
(1) Multiple of $10 in the case of penalties less than or equal to
$100;
(2) Multiple of $100 in the case of penalties greater than $100 but
less than or equal to $1,000;
(3) Multiple of $1,000 in the case of penalties greater than $1,000
but less than or equal to $10,000;
(4) Multiple of $5,000 in the case of penalties greater than
$10,000 but less than or equal to $100,000;
(5) Multiple of $10,000 in the case of penalties greater than
$100,000 but less than or equal to $200,000; or
(6) Multiple of $25,000 in the case of penalties greater than
$200,000.
(c) The first adjustment of any civil monetary penalty required by
Sec. 1022.3 may not exceed 10% of such penalty.
(d) The first application of the inflation adjustment method
required by the statute results in the following adjustments to the
civil monetary penalties within the jurisdiction of the Board:
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Adjusted
Maximum maximum
U.S. Code citation Civil monetary penalty description penalty amount penalty amount
year 1996 year 2012
----------------------------------------------------------------------------------------------------------------
Rail Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 11901(a)......................... Unless otherwise specified, maximum $5,000 $5,500
penalty for each knowing violation
under this part, and for each day.
49 U.S.C. 11901(b)......................... For each violation under sections 500 550
11124(a)(2) or (b).
49 U.S.C. 11901(b)......................... For each day violation continues... 25 27.50
49 U.S.C. 11901(c)......................... Maximum penalty for each knowing 5,000 5,500
violation under sections 10901-
10906.
49 U.S.C. 11901(d)......................... For each violation under sections 100-500 110-550
11123 or 11124(a)(1).
49 U.S.C. 11901(d)......................... For each day violation continues... 50 55
49 U.S.C. 11901(e)(1)...................... For each violation under sections 500 550
11141-11145.
49 U.S.C. 11901(e)(2)...................... For each violation under section 100 110
11144(b)(1).
49 U.S.C. 11901(e)(3)-(4).................. For each violation of reporting 100 110
requirements, for each day.
----------------------------------------------------------------------------------------------------------------
Motor and Water Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 14901(a)......................... Minimum penalty for each violation 500 550
under sections 13501-13508, 13531,
13901, 13902(c), and for each day.
49 U.S.C. 14901(a)......................... Minimum penalty if not registered 2,000 2,200
to provide passenger
transportation, for each violation
under section 13901, and for each
day.
49 U.S.C. 14901(b)......................... Maximum penalty for each violation 20,000 22,000
of the hazardous waste rules under
section 3001 of the Solid Waste
Disposal Act.
49 U.S.C. 14901(d)(1)...................... Minimum penalty for each violation 1,000 1,100
of household good regulations, and
for each day.
49 U.S.C. 14901(d)(2)...................... Minimum penalty for each instance 10,000 11,000
of transportation of household
goods if broker provides estimate
without carrier agreement.
49 U.S.C. 14901(d)(3)...................... Minimum penalty for each instance 25,000 27,500
of transportation of household
goods without being registered.
49 U.S.C. 14901(e)......................... Minimum penalty for each violation 2,000 2,200
of a transportation rule.
49 U.S.C. 14901(e)(2)...................... Minimum penalty for each additional 5,000 5,500
violation.
49 U.S.C. 14903(a)......................... Maximum penalty for undercharge or 100,000 110,000
overcharge of tariff rate, for
each violation.
49 U.S.C. 14904(a)......................... For first violation, rebates at 200 220
less than the rate in effect.
49 U.S.C. 14904(a)......................... For all subsequent violations...... 250 275
49 U.S.C. 14904(b)(1)...................... Maximum penalty for first violation 500 550
for undercharges by freight
forwarders.
49 U.S.C. 14904(b)(1)...................... Maximum penalty for subsequent 2,000 2,200
violations.
49 U.S.C. 14904(b)(2)...................... Maximum penalty for other first 500 550
violations under section 13702.
49 U.S.C. 14904(b)(2)...................... Maximum penalty for subsequent 2,000 2,200
violations.
49 U.S.C. 14905(a)......................... Maximum penalty for each knowing 10,000 11,000
violation of section 14103(a), and
any violation of section 14103(b).
49 U.S.C. 14906............................ For first attempt to evade 200 220
regulation.
49 U.S.C. 14906............................ Minimum amount for each subsequent 250 275
attempt to evade regulation.
49 U.S.C. 14907............................ Maximum penalty for recordkeeping/ 5,000 5,500
reporting violations.
49 U.S.C. 14908(a)(2)...................... Maximum penalty for violation of 2,000 2,200
section 14908(a)(1).
49 U.S.C. 14910............................ When another civil penalty is not 500 550
specified under this part, for
each day.
49 U.S.C. 14915(a)......................... Minimum penalty for holding a 10,000 11,000
household goods shipment hostage,
for each day.
----------------------------------------------------------------------------------------------------------------
Pipeline Carrier Civil Penalties
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 16101(a)......................... Maximum penalty for violation of 5,000 5,500
this part, for each day.
49 U.S.C. 16101(b)(1)...................... For each recordkeeping violation 500 550
under section 15722, each day.
49 U.S.C. 16101(b)(2)...................... For each inspection violation 100 110
liable under section 15722, each
day.
[[Page 64434]]
49 U.S.C. 16101(b)(3)...................... For each reporting violation under 100 110
section 15723, each day.
49 U.S.C. 16103(a)......................... Maximum penalty for improper 1,000 1,100
disclosure of information.
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[FR Doc. 2012-25773 Filed 10-19-12; 8:45 am]
BILLING CODE 4915-01-P
