Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Rules and Regulations 5167

and Administrative Services Act of

1949, as amended, shall be used for

lease construction projects, including

projects with options to purchase the

real property leased. The design-build

selection procedures in section 303M

shall be used when the lease involves

the design and construction of a public

building, facility or work for lease to the

Government when the contracting

officer determines that this method is

appropriate, based on the following:

(1) Three or more offers are

anticipated;

(2) A substantial amount of design

work will be performed by offerors, that

may result in offerors incurring

substantial expenses in preparing offers;

and

(3) Criteria, such as the following,

have been considered:

(i) The extent to which the project

requirements have been adequately

defined;

(ii) The time constraints for delivery

of the project;

(iii) The capability and experience of

potential contractors;

(iv) The suitability of the project for

use of the two-phase selection

procedures;

(v) The capability of the agency to

manage the two-phase selection process;

and

(vi) Other criteria established by the

head of the contracting activity.

Dated: January 27, 1997.

Ida M. Ustad,

Deputy Associate Administrator, Office of

Acquisition Policy.

[FR Doc. 97–2626 Filed 2–3–97; 8:45 am]

BILLING CODE 6820–61–M

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety

Administration

49 CFR Part 578

[Docket No. 97–2; Notice 1]

RIN 2105–AC63

Civil Penalties

AGENCY: National Highway Traffic

Safety Administration (NHTSA), DOT.

ACTION: Final rule.

SUMMARY: This document specifies the

civil penalties for violating NHTSA

statutes and regulations, including

Federal Motor Vehicle Safety Standards,

as adjusted in accordance with the

Federal Civil Monetary Penalty Inflation

Adjustment Act of 1990, as amended by

the Debt Collection Improvement Act of

1996.

DATES: Effective Date: The amendments

made in this rule are effective March 6,

1997.

FOR FURTHER INFORMATION CONTACT:

Taylor Vinson, Office of Chief Counsel,

NHTSA, telephone (202) 366–5263,

facsimile (202) 366–3820, electronic

mail ‘‘TVinson@nhtsa.dot.gov’’, 400

Seventh Street, SW, Washington, DC

20590.

SUPPLEMENTARY INFORMATION:

I. The Debt Collection Improvement Act

of 1996

In order to preserve the remedial

impact of civil penalties and foster

compliance with the law, the Federal

Civil Monetary Penalty Inflation

Adjustment Act of 1990 (Pub. L. 101–

410), as amended by the Debt Collection

Improvement Act of 1996 (Pub. L. 104–

134), requires Federal agencies to

regularly adjust certain civil penalties

for inflation. As amended, the law

requires each agency to make an initial

inflationary adjustment for all

applicable civil penalties, and to make

further adjustments at least once every

four years of these penalty amounts.

The Debt Collection Improvement Act

of 1996 further stipulates that any

resulting increases in a civil penalty due

to the calculated inflation adjustments

(i) should apply only to violations that

occur after October 23, 1996—the Act’s

effective date—and (ii) should not

exceed 10 percent of the penalty

indicated.

Method of Calculation

Under the Federal Civil Monetary

Inflation Adjustment Act as amended,

the inflation adjustment for each

applicable civil penalty is determined

by increasing the maximum civil

penalty amount per violation by the

cost-of-living adjustment. The ‘‘cost-ofliving’’ adjustment is defined as the

amount by which the Consumer Price

Index (CPI) for the month of June of the

calendar year preceding the adjustment

exceeds the CPI for the month of June

of the year in which the amount of such

civil penalty was last set or adjusted

pursuant to law. Any calculated

increase under this adjustment is

subject to a specific rounding formula

set forth in the Debt Collection

Improvement Act of 1996.

For example, pursuant to section

30165(a) of Title 49 of the United States

Code, the National Highway Traffic

Safety Administration (NHTSA) may

impose a civil penalty of up to $1,000

per violation against individuals and

manufacturers that violate specified

provisions of 49 U.S.C. Chapter 301,

‘‘Motor Vehicle Safety.’’ This penalty

amount was originally set in 1966. The

consumer price index is 456.7 for June

1996 and 97.1 for June 1966. Therefore,

the inflation factor is 456.7/97.1 or 4.7.

The maximum penalty amount after the

increase and statutory rounding would

be $4,700. After applying the 10 percent

limit on an initial increase, however, the

new maximum penalty amount per

violation is $1,100.

II. NHTSA Civil Penalties Affected by

this Adjustment

Title 49 of the United States Code

includes several statutory provisions

administered by NHTSA under which

civil penalties are authorized. Today’s

final rule specifies these civil penalties,

as adjusted pursuant to the Debt

Collection Improvement Act of 1996.

A. Motor Vehicle Safety

Chapter 301 of Title 49 of the United

States Code imposes a variety of

requirements upon manufacturers of

motor vehicles and items of motor

vehicle equipment and other persons in

order to reduce traffic crashes and

deaths and injuries resulting from such

crashes. Prior to the effective date of

today’s final rule, violators of Chapter

301 or regulations issued thereunder

were subject to a civil penalty of not

more than $1,000 for each violation and

not more than $800,000 for a related

series of violations. 49 U.S.C. 30165.

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of Chapter 301 or a regulation

prescribed thereunder to $1,100 per

violation, with a maximum of $880,000

for a related series of violations.

B. National Automobile Title

Information System

Chapter 305 of Title 49 of the United

States Code and regulations issued

thereunder include a number of

provisions that facilitate the tracing and

recovery of parts from stolen vehicles.

Prior to the effective date of today’s final

rule, violators of Chapter 305 were

subject to a civil penalty of not more

than $1,000 for each violation. 49 U.S.C.

30505.

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of Chapter 305 to $1,100 per

violation.

C. Bumper Standards

Chapter 325 of Title 49 of the United

States Code was enacted to reduce the

economic loss resulting from damage to

passenger motor vehicles involved in
5168 Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Rules and Regulations

crashes by providing for the

maintenance and enforcement of

bumper standards. Pursuant to Chapter

325, NHTSA has adopted 49 CFR part

581, which requires passenger motor

vehicles to meet specified testing

criteria. Prior to the effective date of

today’s final rule, violators of Chapter

325 or regulations issued thereunder

were subject to a civil penalty of not

more than $1,000 for each violation and

not more than $800,000 for a related

series of violations. 49 U.S.C. 32507(a).

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of Chapter 325 to not more

than $1,100 per violation, with a

maximum of $880,000 for a related

series of violations.

D. Consumer Information Regarding

Crashworthiness and Damage

Susceptibility

To ensure that the public is provided

with the information it needs to

determine the crashworthiness and

damage susceptibility of motor vehicles,

various provisions of Chapter 323 of

Title 49 of the United States Code

require vehicle manufacturers and

others to provide certain information to

the Secretary of Transportation and to

prospective buyers. Prior to the effective

date of today’s final rule, violators of

these requirements were subject to a

civil penalty of not more than $1,000 for

each violation and not more than

$400,000 for a related series of

violations. 49 U.S.C. 32308(b).

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of these provisions of Chapter

323 to not more than $1,100 per

violation, with a maximum of $440,000

for a related series of violations.

E. Country of Origin Content Labeling

Section 32304 of Title 49 of the

United States Code requires

manufacturers, importers, and dealers to

attach and maintain labels containing

specific information on the country of

origin of a new passenger motor

vehicle’s content. Prior to the effective

date of today’s rule, violators of section

32304 were subject to a civil penalty of

not more than $1,000 per violation. 49

U.S.C. 32309(b).

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of section 32304 to not more

than $1,100 per violation.

F. Odometer Tampering and Disclosure

To ensure that motor vehicle

purchasers have reliable information to

help them ascertain the condition and

value of a motor vehicle, Chapter 327 of

Title 49 and regulations issued

thereunder prohibit tampering with a

motor vehicle’s odometer and prescribe

certain safeguards to protect buyers

from purchasing motor vehicles with

altered or reset odometers. Prior to the

effective date of today’s final rule,

violators of Chapter 327 were subject to

a civil penalty of not more than $2,000

for each violation and not more than

$100,000 for a related series of

violations. 49 U.S.C. 32709(a). In

addition, section 32710(a) subjected

violators of Chapter 327 or any

regulation prescribed or order issued

under the chapter, with intent to

defraud, to a penalty of three times the

actual damages or $1,500, whichever

was greater.

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of Chapter 327 to not more

than $2,200 per violation, with a

maximum of $110,000 for a related

series of violations. Further, any person

violating Chapter 327 or any regulation

prescribed or order issued thereunder,

with intent to defraud, is liable for three

times the actual damages or $1,650,

whichever is greater.

G. Vehicle Theft Prevention

Chapter 331 of Title 49 of the United

States Code includes a number of

provisions that facilitate the tracing and

recovery of parts from stolen vehicles.

Prior to the effective date of today’s final

rule, violators of section 33114(a)(1)–(4)

of Title 49 were subject to a civil

penalty of not more than $1,000 for each

violation and not more than $250,000

for a related series of violations. 49

U.S.C. § 33115(a). In addition, prior to

today’s rule, violators of section

33114(a)(5) of Title 49 (relating to ‘‘chop

shops’’) were subject to a civil penalty

of not more than $100,000 a day for

each violation. 49 U.S.C. 30115(b).

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of sections 33114(a)(1)–(4) to

not more than $1,100 per violation, with

a maximum of $275,000 for a related

series of violations. Today’s final rule

also increases the civil penalty for a

violation of section 33114(a)(5) to not

more than $110,000 a day for each

violation.

H. Automobile Fuel Economy

Chapter 329 of Title 49 of the United

States Code includes numerous

provisions designed to improve

automotive fuel economy in the United

States. Among other things, Chapter 329

directs NHTSA to issue and enforce

automobile fuel economy standards.

Prior to the effective date of today’s rule,

violators of specified provisions of

Chapter 329 set out in section 32911(a),

and regulations, standards, and orders

issued under those provisions, were

subject to a civil penalty of not more

than $10,000 for each violation. A

separate violation occurs for each day

the violation continues. 49 U.S.C.

32912(a). In addition, manufacturers

that violate a fuel economy standard

were subject to a civil penalty of $5.00

multiplied by each one-tenth of a mile

a gallon by which the applicable average

fuel economy standard exceeds the

average fuel economy of the

manufacturer’s vehicles subject to a

standard, multiplied by the number of

those automobiles, reduced by the

credits available to the manufacturer

under section 32903. 49 U.S.C.

32912(b).

Pursuant to the inflation adjustment

methodology included in the Debt

Collection Act, today’s final rule

increases the civil penalty for a

violation of section 32911(a) to not more

than $11,000 per violation. In addition,

the civil penalty for a violation of a fuel

economy standard will be assessed at a

rate of $5.50 multiplied by each onetenth of a mile a gallon by which the

applicable average fuel economy

standard exceeds the average fuel

economy of a manufacturer’s vehicles

subject to a standard, multiplied by the

number of those automobiles, reduced

by the credits available to the

manufacturer.

Effective Date

NHTSA finds good cause to make this

amendment effective 30 days after

publication of this document under the

Administrative Procedures Act. 5 U.S.C.

553(d). This document does not impose

any additional responsibilities on any

manufacturer. Instead, this document

simply adjusts the civil penalties as

directed by the Debt Collection

Improvement Act of 1996.

NHTSA also finds for good cause that

notice and an opportunity to comment

on this document are unnecessary under

the Administrative Procedure Act. 5

U.S.C. 553(b)(3)(B) This rulemaking

conforms with and is consistent with

the statutory authority set forth in the

Debt Collection Act of 1996, with no

issues of policy discretion.
Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Rules and Regulations 5169

Consequently, the agency believes that

opportunity for prior comment is

unnecessary and is issuing these

requirements as a final rule that will

apply to all future decisions under this

authority.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT

Regulatory Policies and Procedures

NHTSA has considered the impact of

this rulemaking action under E.O. 12866

and the Department of Transportation’s

regulatory policies and procedures. This

rulemaking document was not reviewed

under E.O. 12866, ‘‘Regulatory Planning

and Review.’’ This action is limited to

the adoption of statutory language,

without interpretation, and has been

determined to be not ‘‘significant’’

under the Department of

Transportation’s regulatory policies and

procedures.

Regulatory Flexibility Act

NHTSA has also considered the

impacts of this notice under the

Regulatory Flexibility Act. I hereby

certify that this final rule has no

significant economic impact on a

substantial number of small entities. As

explained above, this action is limited

to the adoption of statutory language,

without interpretation, and has been

determined to be not ‘‘significant’’

under the Department of

Transportation’s regulatory policies and

procedures.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1980 (Pub. L. 96–511),

there are no requirements for

information collection associated with

this final rule.

National Environmental Policy Act

NHTSA has also analyzed this final

rule under the National Environmental

Policy Act and determined that it has no

significant impact on the human

environment.

Executive Order 12612 (Federalism)

NHTSA has analyzed this proposal in

accordance with the principles and

criteria contained in E.O. 12612, and

has determined that this final rule has

no significant federalism implications to

warrant the preparation of a Federalism

Assessment.

Civil Justice Reform

This final rule does not have a

retroactive or preemptive effect. Judicial

review of this rule may be obtained

pursuant to 5 U.S.C. § 702. That section

does not require that a petition for

reconsideration be filed prior to seeking

judicial review.

List of Subjects in 49 CFR Part 578

Imports, Motor vehicle safety, Motor

vehicles, Penalties, Rubber and Rubber

Products, Tires.

For the reasons set forth in the

preamble, NHTSA is adding a new Part

578 to Title 49 of the Code of Federal

Regulations to read as follows:

PART 578—CIVIL PENALTIES

Sec.

578.1 Scope.

578.2 Purpose.

578.3 Applicability.

578.4 Definitions.

578.5 Inflationary adjustment of civil

penalties.

578.6 Penalties for violations of specified

provisions of Title 49 of the United

States Code.

Authority: Pub. L. 101–410, Pub. L. 104–

134, 49 U.S.C. 30165, 30505, 32308, 32309,

32507, 32709, 32710, 32912, and 33115;

delegation of authority at 49 CFR 1.50.

§ 578.1 Scope.

This part specifies the civil penalties

for violations of statutes administered

by the National Highway Traffic Safety

Administration, as adjusted for

inflation.

§ 578.2 Purpose.

The purpose of this part is to preserve

the remedial impact of civil penalties

and to foster compliance with the law

by specifying the civil penalties for

statutory violations, as adjusted for

inflation.

§ 578.3 Applicability.

This part applies to civil penalties for

violations of Chapters 301, 305, 323,

325, 327, 329, and 331 of Title 49 of the

United States Code.

§ 578.4 Definitions.

All terms used in this part that are

defined in sections 30102, 30501,

32101, 32702, 32901, and 33101 of Title

49 of the United States Code are used

as defined in the appropriate statute.

Administrator means the

Administrator of the National Highway

Traffic Safety Administration.

Civil penalty means any penalty, fine,

or other sanction that:

(1) Is for a specific monetary amount

as provided by Federal law, or has a

maximum amount provided for by

Federal law; and

(2) Is assessed, compromised,

collected, or enforced by NHTSA

pursuant to Federal law.

NHTSA means the National Highway

Traffic Safety Administration.

§ 578.5 Inflationary adjustment of civil

penalties.

The civil penalties set forth in this

part continue in effect until adjusted by

the Administrator. At least once every

four years, the Administrator shall

review the amount of these civil

penalties and will, if appropriate, adjust

them by rule.

§ 578.6 Civil penalties for violations of

specified provisions of Title 49 of the United

States Code.

(a) Motor Vehicle Safety. A person

that violates any of sections 30112,

30115, 30117–30122, 30123(d),

30125(c), 30127, 30141–30147, or 30166

of Title 49 of the United States Code or

a regulation prescribed under any of

those sections is liable to the United

States Government for a civil penalty of

not more than $1,100 for each violation.

A separate violation occurs for each

motor vehicle or item of motor vehicle

equipment and for each failure or

refusal to allow or perform an act

required by any of those sections. The

maximum civil penalty under this

paragraph for a related series of

violations is $880,000.

(b) National Automobile Title

Information System. An individual or

entity violating 49 U.S.C. Chapter 305 is

liable to the United States Government

for a civil penalty of not more than

$1,100 for each violation.

(c) Bumper standards. (1) A person

that violates 49 U.S.C. § 32506(a) is

liable to the United States Government

for a civil penalty of not more than

$1,100 for each violation. A separate

violation occurs for each passenger

motor vehicle or item of passenger

motor vehicle equipment involved in a

violation of 49 U.S.C. 32506(a)(1) or

(4)—

(i) That does not comply with a

standard prescribed under 49 U.S.C.

32502, or

(ii) For which a certificate is not

provided, or for which a false or

misleading certificate is provided, under

49 U.S.C. 32504.

(2) The maximum civil penalty under

this paragraph for a related series of

violations is $880,000.

(d) Consumer information regarding

crashworthiness and damage

susceptibility. A person that violates 49

U.S.C. 32308(a) is liable to the United

States Government for a civil penalty of

not more than $1,100 for each violation.

Each failure to provide information or

comply with a regulation in violation of

49 U.S.C. 32308(a) is a separate

violation. The maximum penalty under

this paragraph for a related series of

violations is $440,000.
5170 Federal Register / Vol. 62, No. 23 / Tuesday, February 4, 1997 / Rules and Regulations

(e) Country of origin content labeling.

A manufacturer of a passenger motor

vehicle distributed in commerce for sale

in the United States that willfully fails

to attach the label required under 49

U.S.C. 32304 to a new passenger motor

vehicle that the manufacturer

manufactures or imports, or a dealer

that fails to maintain that label as

required under 49 U.S.C. 32304, is liable

to the United States Government for a

civil penalty of not more than $1,100 for

each violation. Each failure to attach or

maintain that label for each vehicle is a

separate violation.

(f) Odometer tampering and

disclosure. (1) A person that violates 49

U.S.C. Chapter 327 or a regulation

prescribed or order issued thereunder is

liable to the United States Government

for a civil penalty of not more than

$2,200 for each violation. A separate

violation occurs for each motor vehicle

or device involved in the violation. The

maximum civil penalty under this

paragraph for a related series of

violations is $110,000.

(2) A person that violates 49 U.S.C.

Chapter 327 or a regulation prescribed

or order is issued thereunder, with

intent to defraud, is liable for three

times the actual damages or $1,650,

whichever is greater.

(g) Vehicle theft protection. (1) A

person that violates 49 U.S.C.

33114(a)(1)-(4) is liable to the United

States Government for a civil penalty of

not more than $1,100 for each violation.

The failure of more than one part of a

single motor vehicle to conform to an

applicable standard under 49 U.S.C.

33102 or 33103 is only a single

violation. The maximum penalty under

this paragraph on for a related series of

violations is $275,000.

(2) A person that violates 49 U.S.C.

33114(a)(5) is liable to the United States

Government for a civil penalty of not

more than $110,000 a day for each

violation.

(h) Automobile fuel economy. (1) A

person that violates 49 U.S.C. 32911(a)

is liable to the United States

Government for a civil penalty of not

more than $11,000 for each violation. A

separate violation occurs for each day

the violation continues.

(2) Except as provided in 49 U.S.C.

32912(c), a manufacturer that violates a

standard prescribed for a model year

under 49 U.S.C. 32902 is liable to the

United States Government for a civil

penalty of $5.50 multiplied by each .1

of a mile a gallon by which the

applicable average fuel economy

standard under that section exceeds the

average fuel economy—

(i) Calculated under 49 U.S.C.

32904(a)(1)(A) or (B) for automobiles to

which the standard applies

manufactured by the manufacturer

during the model year;

(ii) Multiplied by the number of those

automobiles; and

(iii) reduced by the credits available

to the manufacturer under 49 U.S.C.

32903 for the model year.

Issued on January 30, 1997.

Ricardo Martinez,

Administrator.

[FR Doc. 97–2745 Filed 2–3–97; 8:45 am]

BILLING CODE 4910–59–P

Surface Transportation Board

49 CFR Part 1142

[STB Ex Parte No. 621]

Removal of Obsolete Regulations

Concerning Expedited Complaint

Procedures Against Bus Carrier Rates

AGENCY: Surface Transportation Board,

Transportation.

ACTION: Final rule.

SUMMARY: The Surface Transportation

Board (Board) is removing from the

Code of Federal Regulations obsolete

regulations concerning expedited

complaint procedures against bus rates.

EFFECTIVE DATE: February 4, 1997.

FOR FURTHER INFORMATION CONTACT:

Beryl Gordon, (202) 927–5660. [TDD for

the hearing impaired: (202) 927–5721.]

SUPPLEMENTARY INFORMATION: Effective

January 1, 1996, the ICC Termination

Act of 1995, Public Law No. 104–88,

109 Stat. 803 (ICCTA), abolished the

Interstate Commerce Commission (ICC)

and established the Board within the

Department of Transportation. Section

204(a) of the ICCTA provides that ‘‘[t]he

Board shall promptly rescind all

regulations established by the [ICC] that

are based on provisions of law repealed

and not substantively reenacted by this

Act.’’

As here relevant, the Bus Regulatory

Reform Act of 1982 (Bus Act)

established a zone of rate freedom

(ZORF) within which bus carriers could

raise or lower their rates without being

subject to protest and investigation or

suspension. Former 49 U.S.C.

10708(d)(4). The ZORF expanded by

specified percentages over a 3-year

period (former section 10708(d)(5)).

After 3 years, the zone became

unlimited. As a result, the ICC could not

suspend or investigate a proposed rate

on unreasonableness grounds unless the

proposed rate was established

collectively under an agreement

approved by the ICC under former 49

U.S.C. 10706(b). Former 49 U.S.C.

10708(e). Parties, however, could file

complaints challenging the

reasonableness of rates established

within the ZORF, and, after 3 years, of

any effective rate or fare filed under

section 10708. Former 49 U.S.C.

10708(f). The resulting complaint

proceedings were to be resolved within

90 days. Id. Consequently, the ICC

established at 49 CFR part 1142

expedited procedures for filing and

handling such complaints against

effective bus rates or fares established

under the ZORF on grounds that they

were unreasonably high or low.

Procedures-Complaints Against Bus Car.

Rates & Fares, 133 M.C.C. 50 (1982),

modified on reopening, 133 M.C.C. 240

(1983).

Under the ICCTA, the Board has

jurisdiction to determine the

reasonableness of rates or fares of motor

carrier of passengers only if they are

made collectively under agreements

pursuant to new 49 U.S.C. 13703. New

49 U.S.C. 13703(a)(5). Moreover, the

ICCTA eliminated the provisions under

former section 10708(d) and (f)

concerning the ZORF and the expedited

procedures for filing complaints.

Because the statutory basis for the

regulations at 49 CFR part 1142 has

been eliminated, we will remove those

regulations. We note that parties still

may file complaints against bus carriers

under our regulations at 49 CFR part

1111.

Because this action merely reflects,

and is required by, the enactment of the

ICCTA and will not have an adverse

effect on the interests of any person, this

action will be made effective on the date

of publication in the Federal Register.

This action will not significantly

affect either the quality of the human

environment or the conservation of

energy resources.

List of Subjects in 49 CFR Part 1142

Administrative practice and

procedure, Buses.

Decided: January 24, 1997.

By the Board, Chairman Morgan and Vice

Chairman Owen.

Vernon A. Williams,

Secretary.

PART 1142—[REMOVED]

For the reasons set forth in the

preamble and under the authority of 49

U.S.C. 721(a), title 49, chapter X of the

Code of Federal Regulations is amended

by removing Part 1142.

[FR Doc. 97–2548 Filed 2–3–97; 8:45 am]

BILLING CODE 4915–00–P