Civil Monetary Penalties-2023 Adjustment, 2268-2270 [2023-00630]
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Federal Register / Vol. 88, No. 9 / Friday, January 13, 2023 / Rules and Regulations
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(I) Whether any associated equipment
is required, whether any required
associated equipment is included in the
advertised cost, and the one-time fee or
rental cost for required associated
equipment;
(ii) The number of ACP households
subscribed;
(iii) The number of ACP households
that have reached a data cap during
month prior to the snapshot date;
(iv) The average amount by which
ACP households have exceeded the data
cap for the month prior to the snapshot
date;
(v) The average overage amount paid
by ACP households exceeding a data
cap for the month prior to the snapshot
date;
(vi) The number of ACP households
receiving the ACP Tribal enhanced
benefit;
(vii) The number of ACP households
receiving the ACP high-cost enhanced
benefit;
(viii) The number of ACP households
who are also enrolled in Lifeline for that
plan;
(2) Legacy plans. For each legacy plan
that a household enrolled in the
Affordable Connectivity Program is
subscribed to, all participating providers
are required to submit all of the
characteristics identified in paragraph
(b)(1) of this section except: speed
(actual and advertised), latency,
introductory monthly charge, the length
of the introductory period, and any onetime fees.
(c) Timing of collection. No later than
the compliance date to be established by
the Wireline Competition Bureau
pursuant to paragraph (g) of this section
and annually thereafter, participating
providers must submit to the
Commission the information in
paragraph (b) of this section for all plans
in which an Affordable Connectivity
Program household is subscribed. The
information must be current as of an
annual snapshot date established and
announced by the Bureau.
(d) Certifications. As part of the data
collection required by paragraph (b) of
the section, an officer of the
participating provider shall certify,
under penalty of perjury, that:
(1) The officer is authorized to submit
the data collection on behalf of the
participating provider; and
(2) The data and information provided
in the data collection is true, complete,
and accurate to the best of the officer’s
knowledge, information, and belief, and
is based on information known to the
officer or provided to the officer by
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employees responsible for the
information being submitted.
[FR Doc. 2022–28435 Filed 1–12–23; 8:45 am]
BILLING CODE P
SURFACE TRANSPORTATION BOARD
49 CFR Part 1022
[Docket No. EP 716 (Sub-No. 8)]
Civil Monetary Penalties—2023
Adjustment
Surface Transportation Board.
Final rule.
AGENCY:
ACTION:
The Surface Transportation
Board (Board) is issuing a final rule to
implement the annual inflationary
adjustment to its civil monetary
penalties, pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015.
DATES: This final rule is effective
January 13, 2023.
FOR FURTHER INFORMATION CONTACT:
Nathaniel Bawcombe at (202) 245–0376.
Assistance for the hearing impaired is
available through the Federal Relay
Service at (800) 877–8339.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (2015 Act), enacted as part of the
Bipartisan Budget Act of 2015, Public
Law 114–74, sec. 701, 129 Stat. 584,
599–601, requires agencies to adjust
their civil penalties for inflation
annually, beginning on July 1, 2016, and
no later than January 15 of every year
thereafter. In accordance with the 2015
Act, annual inflation adjustments are to
be based on the percent change between
the Consumer Price Index for all Urban
Consumers (CPI–U) for October of the
previous year and the October CPI–U of
the year before that. Penalty level
adjustments should be rounded to the
nearest dollar.
II. Discussion
The statutory definition of civil
monetary penalty covers various civil
penalty provisions under the Rail (Part
A); Motor Carriers, Water Carriers,
Brokers, and Freight Forwarders (Part
B); and Pipeline Carriers (Part C)
provisions of the Interstate Commerce
Act, as amended. 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. 14901–14916. The
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Board’s penalty authority related to
pipeline carriers appears at 49 U.S.C.
16101–16106.1 The Board has
regulations at 49 CFR part 1022 that
codify the method set forth in the 2015
Act for annually adjusting for inflation
the civil monetary penalties within the
Board’s jurisdiction.
As set forth in this final rule, the
Board is amending 49 CFR part 1022 to
make an annual inflation adjustment to
the civil monetary penalties in
conformance with the requirements of
the 2015 Act. The adjusted penalties set
forth in the rule will apply only to
violations that occur after the effective
date of this regulation.
In accordance with the 2015 Act, the
annual adjustment adopted here is
calculated by multiplying each current
penalty by the cost-of-living adjustment
factor of 1.07745, which reflects the
percentage change between the October
2022 CPI–U (298.012) and the October
2021 CPI–U (276.589). The table at the
end of this decision shows the statutory
citation for each civil penalty, a
description of the provision, the
adjusted statutory civil penalty level for
2022, and the adjusted statutory civil
penalty level for 2023.
III. Final Rule
The final rule set forth at the end of
this decision is being issued without
notice and comment pursuant to the
rulemaking provision of the
Administrative Procedure Act (APA), 5
U.S.C. 553(b)(B), which does not require
that process ‘‘when the agency for good
cause finds’’ that public notice and
comment are ‘‘unnecessary.’’ Here,
Congress has mandated that the agency
make an annual inflation adjustment to
its civil monetary penalties. The Board
has no discretion to set alternative
levels of adjusted civil monetary
penalties, because the amount of the
inflation adjustment must be calculated
in accordance with the statutory
formula. Given the absence of
discretion, the Board has determined
that there is good cause to promulgate
this rule without soliciting public
comment and to make this regulation
effective immediately upon publication.
IV. Regulatory Flexibility Statement
The Regulatory Flexibility Act (RFA),
as amended by the Small Business
Regulatory Enforcement Fairness Act of
1996, 5 U.S.C. 601–612, generally
requires an agency to prepare a
1 The Board also has various 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.
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Federal Register / Vol. 88, No. 9 / Friday, January 13, 2023 / Rules and Regulations
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.
V. Congressional Review Act
Pursuant to the Congressional Review
Act, 5 U.S.C. 801–808, the Office of
Information and Regulatory Affairs has
designated this rule as a non-major rule,
as defined by 5 U.S.C. 804(2).
VI. 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–
3521.
It is ordered:
1. The Board amends its rules as set
forth in this decision. Notice of the final
rule will be published in the Federal
Register.
2. This decision is effective on its date
of publication in the Federal Register.
Decided: January 9, 2023.
By the Board, Board Members, Fuchs,
Hedlund, Oberman, Primus, and
Schultz. Board Member Primus
concurred with a separate expression.
BOARD MEMBER PRIMUS, concurring:
Today’s decision faithfully carries out
the mandate of the 2015 Act by
adjusting the Board’s civil penalties for
inflation. I write separately, however, to
express concern about the adequacy of
the penalties afforded by statute. The
2015 Act amended the Federal Civil
Penalties Inflation Adjustment Act of
1990, Public Law 101–410, 104 Stat. 890
(1990 Act). The 1990 Act, in turn, relied
on congressional findings that:
lotter on DSK11XQN23PROD with RULES1
(1) the power of Federal agencies to impose
civil monetary penalties for violations of
Federal law and regulations plays an
important role in deterring violations and
furthering the policy goals embodied in such
laws and regulations;
(2) the impact of many civil monetary
penalties has been and is diminished due to
the effect of inflation;
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(3) by reducing the impact of civil
monetary penalties, inflation has weakened
the deterrent effect of such penalties . . .
104 Stat. at 890. Congress therefore
stated that its purposes in enacting the
1990 Act included ‘‘maintain[ing] the
deterrent effect of civil monetary
penalties and promot[ing] compliance
with the law.’’ Id.
I question whether the penalties that
the Board is permitted by statute to
impose are sufficient to provide the
deterrent effect that Congress intended,
as applied to Class I railroads. Consider,
as an example, the default penalty of
$5,000 per violation, set forth in 49
U.S.C. 11901(a). Inflation adjustments
since 2012 have increased this penalty
to the $9,413 per violation stated in the
Board’s decision today. See Civ.
Monetary Penalty Inflation Adjustment
Rule, EP 716, slip op. at 6 (STB served
Oct. 22, 2012) (making an initial
adjustment from $5,000 to $5,500). But
the $5,000 baseline from which the
Board began its inflation adjustments in
2012 was established in a different
century—not even the 20th century, but
the 19th. In fact, that $5,000 penalty per
violation was enacted in the Interstate
Commerce Act of 1887, which created
the Board’s predecessor, the Interstate
Commerce Commission, and established
the first federal regulation of the
nation’s railroads. Interstate Commerce
Act, § 10, 24 Stat. 379, 382–83 (1887).
Needless to say, the value of $5,000
has changed far more than these
adjustments suggest. According to an
online calculator offered by the Federal
Reserve Bank of Minneapolis (which
reaches back only to 1913, thus
understating inflation compared to an
1887 value), the 2022 equivalent would
have been almost $150,000.2 As a
concrete example, real estate listings in
1887 offered houses in the District of
Columbia for $1,700 to $7,800 (the latter
a 12-room mansion). See For Sale—
Houses, Wash. Post, May 22, 1887, at 3.
These penalties are not even a slap on
the wrist. Other independent federal
agencies, by contrast, have civil penalty
authority that is more commensurate
with the times. See, e.g., FTC Publishes
2 https://www.minneapolisfed.org/about-us/
monetary-policy/inflation-calculator, last visited
Jan. 9, 2023.
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2269
Inflation-Adjusted Civil Penalty
Amounts for 2023 (including penalties
as high as $1,426,319).3
Class I railroads, meanwhile, reported
between $388 million and $7 billion in
adjusted net railway operating income
for 2021, the most recent year available.
See R.R. Revenue Adequacy—2021
Determination, EP 552 (Sub-No. 26),
App. B (STB served Sept. 6, 2022). The
idea that $9,413 per violation will deter
entities of this size from ‘‘knowingly
violating this part or an order of the
Board under this part,’’ § 11901(a), is
farfetched to say the least. Congress
should act to restore the deterrent effect
of these civil monetary penalties and
promote compliance with the law.
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.
Jeffrey Herzig,
Clearance Clerk.
For the reasons set forth in the
preamble, part 1022 of title 49, chapter
X, of the Code of Federal Regulations is
amended as follows:
PART 1022—CIVIL MONETARY
PENALTY INFLATION ADJUSTMENT
1. The authority citation for part 1022
continues to read as follows:
■
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, 14916, 16101, 16103.
2. Revise § 1022.4(b) to read as
follows:
■
§ 1022.4 Cost-of-living adjustments of civil
monetary penalties.
*
*
*
*
*
(b) The cost-of-living adjustment
required by the statute results in the
following adjustments to the civil
monetary penalties within the
jurisdiction of the Board:
3 https://www.ftc.gov/news-events/news/pressreleases/2023/01/ftc-publishes-inflation-adjustedcivil-penalty-amounts-2023, last visited Jan. 9,
2023.
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TABLE 1 TO PARAGRAPH (b)
U.S. Code citation
2022—Penalty
amount
2023—Adjusted
penalty amount
EP 716_7
(2022)
EP 716_8
(2023)
Civil monetary penalty description
Rail Carrier
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), (4) ...
11901(e)(2), (4) ...
11901(e)(3)–(4) ...
Unless otherwise specified, maximum penalty for each knowing violation under this part, and for each day.
For each violation under section 11124(a)(2) or (b) .................................
For each day violation continues ..............................................................
Maximum penalty for each knowing violation under sections 10901–
10906.
For each violation under section 11123 or section 11124(a)(1) ...............
For each day violation continues ..............................................................
For each violation under sections 11141–11145, for each day ...............
For each violation under section 11144(b)(1), for each day ....................
For each violation of reporting requirements, for each day ......................
$8,736
$9,413
874
45
8,736
942
48
9,413
174–$874
87
874
174
174
187–$942
94
942
187
187
1,195
11,957
29,893
23,915–47,829
1,288
12,883
32,208
25,767–51,534
1,746
1,881
17,473
18,826
43,678
47,061
3,494
8,736
174,724
3,765
9,413
188,257
349
438
874
376
472
942
3,494
874
3,494
17,473
3,765
942
3,765
18,826
2,392
5,978
8,736
3,494
874
2,577
6,441
9,413
3,765
942
13,885
14,960
11,957
12,883
8,736
874
174
174
1,746
9,413
942
187
187
1,881
Motor and Water Carrier
49
49
49
49
U.S.C.
U.S.C.
U.S.C.
U.S.C.
14901(a)
14901(a)
14901(a)
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) ..............
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) .........
49
49
49
49
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
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
14906 ..................
14906 ..................
14907 ..................
14908(a)(2) .........
14910 ..................
49 U.S.C. 14915(a)(1)–(2) ...
49 U.S.C. 14916(c)(1) .........
Minimum penalty for each violation and for each day ..............................
For each violation under section 13901 or section 13902(c) ...................
For each violation related to transportation of passengers ......................
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
knowingly authorizing, consenting to, or permitting a violation of section 14103(a) or (b).
Minimum penalty 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 violation, for each day.
Minimum penalty for holding a household goods shipment hostage, for
each day.
Maximum penalty for each knowing violation under section 14916(a) for
unlawful brokerage activities.
Pipeline Carrier
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49
49
49
49
49
U.S.C.
U.S.C.
U.S.C.
U.S.C.
U.S.C.
16101(a) ..............
16101(b)(1), (4) ...
16101(b)(2), (4) ...
16101(b)(3)–(4) ...
16103(a) ..............
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 ........
For each reporting violation under section 15723, each day ...................
Maximum penalty for improper disclosure of information .........................
[FR Doc. 2023–00630 Filed 1–12–23; 8:45 am]
BILLING CODE 4915–01–P
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]]>Agencies
[Federal Register Volume 88, Number 9 (Friday, January 13, 2023)]
[Rules and Regulations]
[Pages 2268-2270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00630]
=======================================================================
-----------------------------------------------------------------------
SURFACE TRANSPORTATION BOARD
49 CFR Part 1022
[Docket No. EP 716 (Sub-No. 8)]
Civil Monetary Penalties--2023 Adjustment
AGENCY: Surface Transportation Board.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Surface Transportation Board (Board) is issuing a final
rule to implement the annual inflationary adjustment to its civil
monetary penalties, pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015.
DATES: This final rule is effective January 13, 2023.
FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe at (202) 245-0376.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of
2015, Public Law 114-74, sec. 701, 129 Stat. 584, 599-601, requires
agencies to adjust their civil penalties for inflation annually,
beginning on July 1, 2016, and no later than January 15 of every year
thereafter. In accordance with the 2015 Act, annual inflation
adjustments are to be based on the percent change between the Consumer
Price Index for all Urban Consumers (CPI-U) for October of the previous
year and the October CPI-U of the year before that. Penalty level
adjustments should be rounded to the nearest dollar.
II. Discussion
The statutory definition of civil monetary penalty covers various
civil penalty provisions under the Rail (Part A); Motor Carriers, Water
Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline
Carriers (Part C) provisions of the Interstate Commerce Act, as
amended. 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. 14901-14916. The Board's
penalty authority related to pipeline carriers appears at 49 U.S.C.
16101-16106.\1\ The Board has regulations at 49 CFR part 1022 that
codify the method set forth in the 2015 Act for annually adjusting for
inflation the civil monetary penalties within the Board's jurisdiction.
---------------------------------------------------------------------------
\1\ The Board also has various 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.
---------------------------------------------------------------------------
As set forth in this final rule, the Board is amending 49 CFR part
1022 to make an annual inflation adjustment to the civil monetary
penalties in conformance with the requirements of the 2015 Act. The
adjusted penalties set forth in the rule will apply only to violations
that occur after the effective date of this regulation.
In accordance with the 2015 Act, the annual adjustment adopted here
is calculated by multiplying each current penalty by the cost-of-living
adjustment factor of 1.07745, which reflects the percentage change
between the October 2022 CPI-U (298.012) and the October 2021 CPI-U
(276.589). The table at the end of this decision shows the statutory
citation for each civil penalty, a description of the provision, the
adjusted statutory civil penalty level for 2022, and the adjusted
statutory civil penalty level for 2023.
III. Final Rule
The final rule set forth at the end of this decision is being
issued without notice and comment pursuant to the rulemaking provision
of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which
does not require that process ``when the agency for good cause finds''
that public notice and comment are ``unnecessary.'' Here, Congress has
mandated that the agency make an annual inflation adjustment to its
civil monetary penalties. The Board has no discretion to set
alternative levels of adjusted civil monetary penalties, because the
amount of the inflation adjustment must be calculated in accordance
with the statutory formula. Given the absence of discretion, the Board
has determined that there is good cause to promulgate this rule without
soliciting public comment and to make this regulation effective
immediately upon publication.
IV. Regulatory Flexibility Statement
The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612,
generally requires an agency to prepare a
[[Page 2269]]
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.
V. Congressional Review Act
Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the
Office of Information and Regulatory Affairs has designated this rule
as a non-major rule, as defined by 5 U.S.C. 804(2).
VI. 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. 3501-3521.
It is ordered:
1. The Board amends its rules as set forth in this decision. Notice
of the final rule will be published in the Federal Register.
2. This decision is effective on its date of publication in the
Federal Register.
Decided: January 9, 2023.
By the Board, Board Members, Fuchs, Hedlund, Oberman, Primus, and
Schultz. Board Member Primus concurred with a separate expression.
BOARD MEMBER PRIMUS, concurring:
Today's decision faithfully carries out the mandate of the 2015 Act
by adjusting the Board's civil penalties for inflation. I write
separately, however, to express concern about the adequacy of the
penalties afforded by statute. The 2015 Act amended the Federal Civil
Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 104
Stat. 890 (1990 Act). The 1990 Act, in turn, relied on congressional
findings that:
(1) the power of Federal agencies to impose civil monetary
penalties for violations of Federal law and regulations plays an
important role in deterring violations and furthering the policy
goals embodied in such laws and regulations;
(2) the impact of many civil monetary penalties has been and is
diminished due to the effect of inflation;
(3) by reducing the impact of civil monetary penalties,
inflation has weakened the deterrent effect of such penalties . . .
104 Stat. at 890. Congress therefore stated that its purposes in
enacting the 1990 Act included ``maintain[ing] the deterrent effect of
civil monetary penalties and promot[ing] compliance with the law.'' Id.
I question whether the penalties that the Board is permitted by
statute to impose are sufficient to provide the deterrent effect that
Congress intended, as applied to Class I railroads. Consider, as an
example, the default penalty of $5,000 per violation, set forth in 49
U.S.C. 11901(a). Inflation adjustments since 2012 have increased this
penalty to the $9,413 per violation stated in the Board's decision
today. See Civ. Monetary Penalty Inflation Adjustment Rule, EP 716,
slip op. at 6 (STB served Oct. 22, 2012) (making an initial adjustment
from $5,000 to $5,500). But the $5,000 baseline from which the Board
began its inflation adjustments in 2012 was established in a different
century--not even the 20th century, but the 19th. In fact, that $5,000
penalty per violation was enacted in the Interstate Commerce Act of
1887, which created the Board's predecessor, the Interstate Commerce
Commission, and established the first federal regulation of the
nation's railroads. Interstate Commerce Act, Sec. 10, 24 Stat. 379,
382-83 (1887).
Needless to say, the value of $5,000 has changed far more than
these adjustments suggest. According to an online calculator offered by
the Federal Reserve Bank of Minneapolis (which reaches back only to
1913, thus understating inflation compared to an 1887 value), the 2022
equivalent would have been almost $150,000.\2\ As a concrete example,
real estate listings in 1887 offered houses in the District of Columbia
for $1,700 to $7,800 (the latter a 12-room mansion). See For Sale--
Houses, Wash. Post, May 22, 1887, at 3. These penalties are not even a
slap on the wrist. Other independent federal agencies, by contrast,
have civil penalty authority that is more commensurate with the times.
See, e.g., FTC Publishes Inflation-Adjusted Civil Penalty Amounts for
2023 (including penalties as high as $1,426,319).\3\
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\2\ https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator, last visited Jan. 9, 2023.
\3\ https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-publishes-inflation-adjusted-civil-penalty-amounts-2023, last
visited Jan. 9, 2023.
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Class I railroads, meanwhile, reported between $388 million and $7
billion in adjusted net railway operating income for 2021, the most
recent year available. See R.R. Revenue Adequacy--2021 Determination,
EP 552 (Sub-No. 26), App. B (STB served Sept. 6, 2022). The idea that
$9,413 per violation will deter entities of this size from ``knowingly
violating this part or an order of the Board under this part,'' Sec.
11901(a), is farfetched to say the least. Congress should act to
restore the deterrent effect of these civil monetary penalties and
promote compliance with the law.
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.
Jeffrey Herzig,
Clearance Clerk.
For the reasons set forth in the preamble, part 1022 of title 49,
chapter X, of the Code of Federal Regulations is amended as follows:
PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT
0
1. The authority citation for part 1022 continues to read as follows:
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, 14916, 16101, 16103.
0
2. Revise Sec. 1022.4(b) to read as follows:
Sec. 1022.4 Cost-of-living adjustments of civil monetary penalties.
* * * * *
(b) The cost-of-living adjustment required by the statute results
in the following adjustments to the civil monetary penalties within the
jurisdiction of the Board:
[[Page 2270]]
Table 1 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
2022--Penalty 2023--Adjusted
Civil monetary penalty amount penalty amount
U.S. Code citation description -------------------------------------
EP 716_7 (2022) EP 716_8 (2023)
----------------------------------------------------------------------------------------------------------------
Rail Carrier
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 11901(a)...................... Unless otherwise specified, $8,736 $9,413
maximum penalty for each
knowing violation under this
part, and for each day.
49 U.S.C. 11901(b)...................... For each violation under section 874 942
11124(a)(2) or (b).
49 U.S.C. 11901(b)...................... For each day violation continues 45 48
49 U.S.C. 11901(c)...................... Maximum penalty for each knowing 8,736 9,413
violation under sections 10901-
10906.
49 U.S.C. 11901(d)...................... For each violation under section 174-$874 187-$942
11123 or section 11124(a)(1).
49 U.S.C. 11901(d)...................... For each day violation continues 87 94
49 U.S.C. 11901(e)(1), (4).............. For each violation under 874 942
sections 11141-11145, for each
day.
49 U.S.C. 11901(e)(2), (4).............. For each violation under section 174 187
11144(b)(1), for each day.
49 U.S.C. 11901(e)(3)-(4)............... For each violation of reporting 174 187
requirements, for each day.
----------------------------------------------------------------------------------------------------------------
Motor and Water Carrier
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 14901(a)...................... Minimum penalty for each 1,195 1,288
violation and for each day.
49 U.S.C. 14901(a)...................... For each violation under section 11,957 12,883
13901 or section 13902(c).
49 U.S.C. 14901(a)...................... For each violation related to 29,893 32,208
transportation of passengers.
49 U.S.C. 14901(b)...................... For each violation of the 23,915-47,829 25,767-51,534
hazardous waste rules under
section 3001 of the Solid Waste
Disposal Act.
49 U.S.C. 14901(d)(1)................... Minimum penalty for each 1,746 1,881
violation of household good
regulations, and for each day.
49 U.S.C. 14901(d)(2)................... Minimum penalty for each 17,473 18,826
instance of transportation of
household goods if broker
provides estimate without
carrier agreement.
49 U.S.C. 14901(d)(3)................... Minimum penalty for each 43,678 47,061
instance of transportation of
household goods without being
registered.
49 U.S.C. 14901(e)...................... Minimum penalty for each 3,494 3,765
violation of a transportation
rule.
49 U.S.C. 14901(e)...................... Minimum penalty for each 8,736 9,413
additional violation.
49 U.S.C. 14903(a)...................... Maximum penalty for undercharge 174,724 188,257
or overcharge of tariff rate,
for each violation.
49 U.S.C. 14904(a)...................... For first violation, rebates at 349 376
less than the rate in effect.
49 U.S.C. 14904(a)...................... For all subsequent violations... 438 472
49 U.S.C. 14904(b)(1)................... Maximum penalty for first 874 942
violation for undercharges by
freight forwarders.
49 U.S.C. 14904(b)(1)................... Maximum penalty for subsequent 3,494 3,765
violations.
49 U.S.C. 14904(b)(2)................... Maximum penalty for other first 874 942
violations under section 13702.
49 U.S.C. 14904(b)(2)................... Maximum penalty for subsequent 3,494 3,765
violations.
49 U.S.C. 14905(a)...................... Maximum penalty for each knowing 17,473 18,826
violation of section 14103(a),
and knowingly authorizing,
consenting to, or permitting a
violation of section 14103(a)
or (b).
49 U.S.C. 14906......................... Minimum penalty for first 2,392 2,577
attempt to evade regulation.
49 U.S.C. 14906......................... Minimum amount for each 5,978 6,441
subsequent attempt to evade
regulation.
49 U.S.C. 14907......................... Maximum penalty for 8,736 9,413
recordkeeping/reporting
violations.
49 U.S.C. 14908(a)(2)................... Maximum penalty for violation of 3,494 3,765
section 14908(a)(1).
49 U.S.C. 14910......................... When another civil penalty is 874 942
not specified under this part,
for each violation, for each
day.
49 U.S.C. 14915(a)(1)-(2)............... Minimum penalty for holding a 13,885 14,960
household goods shipment
hostage, for each day.
49 U.S.C. 14916(c)(1)................... Maximum penalty for each knowing 11,957 12,883
violation under section
14916(a) for unlawful brokerage
activities.
----------------------------------------------------------------------------------------------------------------
Pipeline Carrier
----------------------------------------------------------------------------------------------------------------
49 U.S.C. 16101(a)...................... Maximum penalty for violation of 8,736 9,413
this part, for each day.
49 U.S.C. 16101(b)(1), (4).............. For each recordkeeping violation 874 942
under section 15722, each day.
49 U.S.C. 16101(b)(2), (4).............. For each inspection violation 174 187
liable under section 15722,
each day.
49 U.S.C. 16101(b)(3)-(4)............... For each reporting violation 174 187
under section 15723, each day.
49 U.S.C. 16103(a)...................... Maximum penalty for improper 1,746 1,881
disclosure of information.
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[FR Doc. 2023-00630 Filed 1-12-23; 8:45 am]
BILLING CODE 4915-01-P
