Document ID: DOT-OST-2008-0333-0002
Agency: dot
Document Type: Rule
Title: Civil Penalties
Posted Date: 2008-11-21T05:00Z

[Federal Register: November 21, 2008 (Volume 73, Number 226)]
[Rules and Regulations]               
[Page 70592-70593]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21no08-5]                         

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 383

[Docket No. DOT-OST-2008-0333]
RIN 2105-AD77

 
Civil Penalties

AGENCY: Department of Transportation (DOT), Office of the Secretary 
(OST).

ACTION: Final rule.

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SUMMARY: This rule raises the maximum civil penalties that can be 
assessed as a result of DOT aviation enforcement actions for violations 
of certain economic provisions of U.S.C. Title 49. This inflation 
adjustment is required by the Federal Civil Penalties Inflation 
Adjustment Act of 1990 and the Debt Collection Improvement Act of 1996.

DATES: Effective Date: This rule is effective December 22, 2008.

FOR FURTHER INFORMATION CONTACT: Nicholas Lowry, Senior Attorney, 
Office of Aviation Enforcement and Proceedings (C-70), Department of 
Transportation, 1200 New Jersey Ave., SE., Washington, DC 20590, (202) 
366-9349.

SUPPLEMENTARY INFORMATION:
    The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. 
L. 101-410) provides a detailed formula on how federal monetary civil 
penalties should be adjusted for inflation. The Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134, sec. 31001) requires each 
agency to adjust monetary civil penalties within its jurisdiction at 
least once every four years. The adjustment is based on changes to the 
Consumer Price Index All Urban Consumers (CPI-U) of the prior year. The 
1996 Act further provides that if an inflation adjustment has never 
been applied to a civil monetary penalty amount, the first increase to 
the maximum penalty cannot be more than ten percent of the original 
amount.
    The civil penalty amounts at issue here, relating to certain 
violations of aviation economic regulations and statutes, were last set 
by Vision 100--Century of Aviation Reauthorization Act (Pub. L. 108-
176; 117 Stat. 2490, December 12, 2003). This final rule updates some 
(but not all) of the civil penalties based on the increase in the CPI-U 
from June 2003 to June 2007 (an inflation factor of 1.13) to the civil 
penalties of the Vision 100--Century of Aviation Reauthorization Act 
(Pub. L. 1088-176; 117 Stat. 2490, December 12, 2003). As a result, the 
current general penalty amount is raised from $25,000 to $27,500.
    The current $1,100 general civil penalty for small businesses and 
individuals is not changed, however, because the 1990 Act provides that 
if the current unadjusted penalty is greater than $1,000 and less than 
or equal to $10,000, the penalty increase should be rounded to the 
nearest multiple of $1,000.
    14 CFR Part 383 currently allows small businesses and individuals 
to be assessed higher penalties for particular specific aviation law 
provision. Because of the rounding provisions of the Federal Civil 
Penalties Inflation Adjustment Act of 1990, only two of those three 
maximum penalties applicable to small businesses and individuals are 
being changed by this

[[Page 70593]]

rule. First, this final rule increases the current $10,000 civil 
penalty amount to $11,000 for violations of most provisions of Chapter 
401, including the anti-discrimination provisions of section 401217 
(general provision) and 41705 (discrimination against the disabled), 
and rules and orders issued under those provisions. Second, this final 
rule raises the current $5,000 civil penalty amount to $5,500 for 
violations of section 41719 regarding essential air service and 
consumer protection rules or orders issued under that section. The 
current maximum civil penalty of $2,500 for violations of section 41712 
(unfair and deceptive practices and unfair methods of competition) is 
not being raised because of the rounding provision discussed above. 
Finally, the final rule makes a number of non-substantive editorial 
changes for clarity.

Regulatory Analyses and Notices

    The Administrative Procedure Act (APA) (5 U.S.C. 553) provides an 
exception to the notice and comment procedures when an agency finds 
there is good cause for dispensing with such procedures when they are 
impracticable, unnecessary or contrary to the public interest. We find 
that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with 
the usual requirements for notice and public comment. This rulemaking 
is a ministerial action required the Debt Collection Improvement Act of 
1996 and the Federal Civil Penalties Inflation Adjustment Act of 1990. 
It is based on a statutory formula. Accordingly, we find that 
opportunity for notice and comment is unnecessary and contrary to the 
public interest, and we are issuing these updates as a final rule.

Executive Order 12866

    This final rule has been evaluated in accordance with existing 
policies and procedures and is considered not significant under 
Executive Order 12866 or DOT's Regulatory Policies and Procedures. The 
rule has not been reviewed by the Office of Management and Budget (OMB) 
under Executive Order 12866. The provisions are required by current 
regulatory language, without interpretation.

Regulatory Flexibility Act

    In addition, we must prepare a regulatory flexibility analysis that 
is consistent with the Regulatory Flexibility Act (5 U.S.C. 601-602) 
unless we certify that a regulation will not have a significant 
economic impact on a substantial number of small entities. In this case 
the revision of the civil penalty amounts will raise potential 
penalties for all aviation businesses; however, there are special 
reduced penalties for individuals and small businesses with regard to 
specific kinds of violations. With respect to two categories of 
violations committed by small businesses and individuals, the inflation 
adjustment results in no change. Those two categories are the general 
civil penalty amount of $1,100 and civil penalty of $2,500 for 
violations of 49 U.S.C. 41712, prohibiting unfair and deceptive 
business practices and unfair methods of competition. A third category 
of penalty applicable to small businesses, for violations of 49 U.S.C. 
41719, does increase from $5,000 to $5,500 as a result of the inflation 
adjustment made by this rulemaking. Violations of this provision, 
having to do with essential air service requirements, are rare and 
should affect few, if any, small businesses. Violations of most 
provisions of Chapter 401 increase from $10,000 to $11,000. The 
aggregate economic impact of this rulemaking on small entities should 
be minimal. Therefore, we certify that this final rule will not have a 
significant economic impact on a substantial number of small entities, 
and that a regulatory flexibility analysis is not required for this 
rulemaking.

Paperwork Reduction Act

    This final rule imposes no new reporting or record keeping 
requirements necessitating paperwork clearance by OMB.

Unfunded Mandates Reform Act of 1995

    OST has determined that the requirements of Title II of the 
Unfunded Mandates Reform Act of 1995, as amended, do not apply to this 
rulemaking.

List of Subjects

14 CFR Part 383

    Administrative practice and procedures; Penalties.

0
Accordingly, the Department of Transportation revises 14 CFR part 383 
to read as follows:

PART 383--CIVIL PENALTIES

Sec.
383.1 Purpose and Periodic Adjustment.
383.2 Amount of Penalty.

    Authority: Sec. 503, Public Law 108-176, 117 Stat. 2490; Public 
Law 101-410, 104 Stat. 890; Public Law 104-134, Sec.  31001.

Sec.  383.1  Purpose and Periodic Adjustment.

    (a) Purpose. This part adjusts the civil penalty liability amounts 
prescribed in 49 U.S.C. 46301(a) for inflation in accordance with the 
Acts cited in paragraph (b) of this section.
    (b) Periodic Adjustment. DOT will periodically adjust the maximum 
civil penalties set forth in 49 U.S.C. 46301 and this part as required 
by the Federal Civil Penalties Inflation Adjustment Act of 1990 and the 
Debt Collection Improvement Act of 1996.

Sec.  383.2  Amount of penalty.

    Civil penalties payable to the U.S. Government for violations of 
Title 49, Chapters 401 through 421, pursuant to 49 U.S.C. 46301(a), are 
as follows:
    (a) A general civil penalty of not more than $27,500 (or $1,100 for 
individuals or small businesses) applies to violations of statutory 
provisions and rules or orders issued under those provisions, other 
than those listed in paragraph (b) of this section, (see 49 U.S.C. 
46301(a)(1));
    (b) With respect to small businesses and individuals, 
notwithstanding the general $1,100 civil penalty, the following civil 
penalty limits apply:
    (1) A maximum civil penalty of $11,000 applies for violations of 
most provisions of Chapter 401, including the anti-discrimination 
provisions of sections 40127 (general provision), and 41705 
(discrimination against the disabled) and rules and orders issued 
thereunder (see 49 U.S.C. 46301(a)(5) (A));
    (2) A maximum civil penalty of $5,500 applies for violations of 
section 41719 and rules and orders issued thereunder (see 49 U.S.C. 
46301(a)(5)(C)); and
    (3) A maximum civil penalty of $2,500 applies for violations of 
section 41712 or consumer protection rules or orders (see 49 U.S.C. 
46301(a)(5)(D)).

    Issued in Washington, DC on November 14, 2008.
Mary E. Peters,
Secretary.
[FR Doc. E8-27774 Filed 11-20-08; 8:45 am]

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