Document ID: FAA-2009-0237-0001
Agency: faa
Document Type: Rule
Title: Revisions to Civil Penalty Inflation Adjustment Tables
Posted Date: 2010-11-29T05:00Z

[Federal Register: November 29, 2010 (Volume 75, Number 228)]
[Rules and Regulations]               
[Page 72935-72939]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29no10-2]                         

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 13

[Docket No. FAA-2009-0237; Amendment No. 13-35]
RIN 2120-AJ50

 
Revisions to the Civil Penalty Inflation Adjustment Tables

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This final rule adjusts for inflation the minimum and maximum 
civil monetary penalty amounts the FAA may impose for violations of the 
statutes and regulations it enforces in order to continue the deterrent 
effect of these penalties. The adjustments are made following a formula 
provided by Congress.

DATES: This amendment becomes effective December 29, 2010.

FOR FURTHER INFORMATION CONTACT: Cole Milliard, Office of the Chief 
Counsel, Enforcement Division, AGC-300, Federal Aviation 
Administration, 800 Independence Avenue, SW., Washington, DC 20591. 
Telephone (202) 267-3452. Facsimile (202) 267-5106. E-mail 
cole.milliard@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules on aviation safety is found in 
Title 49 of the United States Code. Subtitle I, Section 106, describes 
the authority of the FAA Administrator. Subtitle VII, Aviation 
Programs, describes in more detail the scope of the agency's authority.
    This rulemaking is issued under the Federal Civil Penalties 
Inflation Adjustment Act of 1990, Public Law (Pub. L.) 101-410, as 
amended by the Debt Collection Improvement Act of 1996, Public Law 104-
134, codified at 28 U.S.C. 2461 note. These laws authorize the FAA to 
adjust the minimum and maximum amounts of civil monetary penalties for 
violations of the statues it enforces to preserve their deterrent 
effect.

Good Cause for Immediate Adoption of This Final Rule

    The FAA finds that good cause exists under 5 U.S.C. 553(b)(B) for 
adopting

[[Page 72936]]

this final rule without notice and comment. This rule effectuates the 
intent of the Federal Civil Penalties Inflation Adjustment Act to allow 
for regular adjustment, for inflation, of civil monetary penalties to 
preserve the deterrent effect of civil monetary penalties and promote 
compliance with the law. The inflation adjustments to penalties under 
this rule apply a formula mandated by Congress. Thus, it is unnecessary 
to delay these adjustments to receive public comment. Such comments 
would not allow the FAA to develop any basis to change the method or 
application of the mandatory inflation adjustments.

Discussion

Background

    Under the Debt Collection Improvement Act of 1996, the FAA must 
adjust all applicable civil monetary penalties at least once every 4 
years. In doing so, the FAA must also apply a formula Congress included 
in the Debt Collection Improvement Act of 1996 to determine the amount 
of increase to each of its civil monetary penalties. Both of these 
requirements are included in 28 U.S.C. 2461 note.

Prior FAA Rulemakings

    In 1996 (61 FR 67445; December 20, 1996), we added subpart H, Civil 
Monetary Penalty Inflation Adjustment, to 14 CFR part 13. Subpart H 
implements the terms of 28 U.S.C. 2461 note. We also made our initial 
adjustment to the civil monetary penalties applicable to the FAA's 
enforcement program in that rulemaking. The current rulemaking is the 
FAA's third adjustment of its civil monetary penalties since the 
regulation was adopted. Previous adjustments were made in 2002 
(Amendment No. 13-31; 67 FR 6364; February 11, 2002) and 2006 
(Amendment No. 13-33; 71 FR 47 28518; May 16, 2006). The 2006 
adjustment also incorporated in Subpart H several statutory changes to 
our authority to impose civil penalties.

This Rulemaking

    In this rulemaking, we adjust the civil penalty amounts listed in 
Tables 2 and 3 of 14 CFR part 13, subpart H, for inflation in 
accordance with the formula set forth in Subpart H. Under subpart H, we 
determine the inflation adjustment for each applicable civil penalty by 
increasing the maximum civil penalty or the range of minimum and 
maximum civil penalties by the ``cost-of-living adjustment'' (COLA). 
The COLA is ``the percentage (if any) for each civil monetary penalty 
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 calendar year in which the amount of such civil penalty was 
last set or adjusted pursuant to law.'' Each increase is rounded off as 
described in 14 CFR 13.305(a) and the rounded-off increase is added to 
the existing civil penalty amount. For the initial adjustment of a 
civil penalty under Subpart H, the increase is limited to ten percent 
of the civil penalty amount, as stated in 14 CFR 13.305(c).
    For this rulemaking, we looked at the increase of the CPI for June 
2009 over the CPIs for the years in which each civil penalty amount was 
last set, reset, or adjusted. The words ``set'' and ``reset'' in this 
context indicate that Congress has added to or changed the FAA's 
statutory authority to impose civil monetary penalties. The word 
``adjusted'' indicates a change we made under Subpart H.

Civil Penalty Inflation Adjustment

Relevant CPI's

    The CPI for June 2009 was 215.693. The CPI for the month of June of 
the calendar years in which civil monetary penalty amounts were last 
set, reset, or adjusted are:
    (1) 160.3 for June 1997;
    (2) 183.7 for June 2003;
    (3) 194.5 for June 2005; and
    (4) 202.9 for June 2006.

                                  COLAs
------------------------------------------------------------------------
              Year                 COLA calculation       COLA amount
------------------------------------------------------------------------
1997............................       215.693/160.3      1.346 (134.6%)
2003............................       215.693/183.7      1.174 (117.4%)
2005............................       215.693/194.5      1.109 (110.9%)
2006............................       215.693/202.9      1.063 (106.3%)
------------------------------------------------------------------------

Round-off Formula

    (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 $100,000;
    (5) Multiple of $10,000, in the case of penalties greater than 
$100,000 but less than or equal to $200,000;
    (6) Multiple of $25,000, in the case of penalties greater than 
$200,000.

Results of Calculations for Inflation Adjustment

    Using the methodology outlined in 28 U.S.C. 2461 note and 
implemented in 14 CFR part 13 subpart H, we have determined that 
several of our civil monetary penalties should be adjusted. The 
adjusted civil monetary penalty amounts are set forth in ``Table of 
Minimum and Maximum Civil Monetary Penalty Amounts for Certain 
Violations Occurring on or After December 29, 2010'', which will be 
located in 14 CFR 13.305(d).

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there is no new requirement for information collection associated with 
this final rule.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these regulations.

Regulatory Notices and Analyses

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 directs that each Federal agency 
must propose or adopt a regulation only upon a reasoned determination 
that the benefits of the intended regulation justify its costs. Second, 
the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires

[[Page 72937]]

agencies to analyze the economic impact of regulatory changes on small 
entities. Third, the Trade Agreements Act (Pub. L. 96-39) forbids 
agencies from setting standards that create unnecessary obstacles to 
the foreign commerce of the United States. In developing U.S. 
standards, this Trade Act requires agencies to consider international 
standards and, where appropriate, that they be the basis of U.S. 
standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 
104-4) requires agencies to prepare a written assessment of the costs, 
benefits, and other effects of proposed or final rules that include a 
Federal mandate likely to result in the expenditure by State, local, or 
Tribal governments, in the aggregate, or by the private sector, of $100 
million or more annually (adjusted for inflation with base year of 
1995). This portion of the preamble summarizes the FAA's analysis of 
the economic impacts of this final rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it is included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this final rule. The reasoning 
for this determination follows:
    This final rule simply identifies the civil monetary penalties for 
violations of the statutory and regulatory provisions we enforce. The 
penalty amounts are those specified by statute or called for under the 
inflation adjustment statutes, and the information in this rule is 
required by the Debt Collection Improvement Act of 1996. Its economic 
impact is minimal.
    Also, we determined that this final rule is not a ``significant 
regulatory action'' as defined in section 3(f) of Executive Order 
12866, and is not ``significant'' as defined in DOT's Regulatory 
Policies and Procedures.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation. To achieve this principle, agencies are required 
to solicit and consider flexible regulatory proposals and to explain 
the rationale for their actions to assure that such proposals are given 
serious consideration.'' The RFA covers a wide-range of small entities, 
including small businesses, not-for-profit organizations, and small 
governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    This final rule simply identifies the civil monetary penalties for 
violations of the statutory and regulatory provisions we enforce. The 
penalty amounts are those specified by statute or called for under the 
inflation adjustment statutes, and the information in this rule is 
required by the Debt Collection Improvement Act of 1996. Its economic 
impact is minimal.
    Therefore, as the FAA Administrator, I certify that this rule will 
not have a significant economic impact on a substantial number of small 
entities.

International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing any standards or engaging in related 
activities that create unnecessary obstacles to the foreign commerce of 
the United States. Pursuant to these Acts, the establishment of 
standards is not considered an unnecessary obstacle to the foreign 
commerce of the United States, so long as the standards have a 
legitimate domestic objective, such as the protection of safety, and do 
not operate in a manner that excludes imports that meet this objective. 
The statute also requires consideration of international standards and, 
where appropriate, that they be the basis for U.S. standards.
    This rule only summarizes civil monetary penalties, established by 
legislation, for violations of statutory and regulatory provisions that 
apply equally to domestic and foreign entities; therefore, we have 
determined that this rule will not result in an impact on international 
trade by companies doing business in or with the United States.

Unfunded Mandates Reform Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(adjusted annually for inflation with the base year 1995) in any one 
year by State, local, and Tribal governments, in the aggregate, or by 
the private sector; such a mandate is deemed to be a ``significant 
regulatory action.'' The level equivalent of $100 million in CY 1995, 
adjusted for inflation to CY 2007 levels by the Consumer Price Index 
for all Urban Consumers (CPI-U) as published by the Bureau of Labor 
Statistics, is $143.1 million.
    This final rule does not contain such a mandate since it only 
identifies the increase in penalties as required by the Debt Collection 
Improvement Act of 1996. Therefore, the requirements of Title II of the 
Act do not apply.

Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. We determined that this 
action will not have a substantial direct effect on the States, or the 
relationship between the national Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. Therefore, the FAA has determined that this final rule does 
not have federalism implications.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion and involves no extraordinary circumstances.

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The agency has determined that it 
is not a ``significant energy action'' under the executive order and it 
is not likely to

[[Page 72938]]

have a significant adverse effect on the supply, distribution, or use 
of energy.

Availability of Rulemaking Documents

    You can get an electronic copy using the Internet by:
    (1) Searching the Federal eRulemaking Portal at http://
www.regulations.gov;
    (2) Visiting the FAA's Regulations and Policies Web page at http://
www.faa.gov/regulations_policies/; or
    (3) Accessing the Government Printing Office's Web page at http://
www.gpoaccess.gov/fr/index.html.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue, SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the amendment number or docket number of this 
rulemaking.
    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://www.regulations.gov.

Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires FAA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within its 
jurisdiction. If you are a small entity and you have a question 
regarding this document, you may contact your local FAA official, or 
the person listed under the FOR FURTHER INFORMATION CONTACT heading at 
the beginning of the preamble. You can find out more about SBREFA on 
the Internet at http://www.faa.gov/regulations_policies/rulemaking/
sbre_act/.

List of Subjects in CFR 14 Part 13

    Administrative practice and procedure, Air transportation, 
Hazardous materials transportation, Investigations, Law enforcement, 
Penalties.

The Amendment

0
In consideration of the foregoing, the Federal Aviation Administration 
amends Chapter I of title 14, Code of Federal Regulations as follows:

PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES

0
1. The authority citation for part 13 continues to read as follows:

    Authority:  18 U.S.C. 6002, 28 U.S.C. 2461 (note); 49 U.S.C. 
106(g), 5121-5124, 40113-40114, 44103-44106, 44702-44703, 44709- 
44710, 44713, 44718, 44725, 46101-46110, 46301-46316, 46318, 46501-
46502, 46504-46507, 47106, 47111, 47122, 47306, 47531- 47532.

0
2. Amend Sec.  13.305(d) by removing Tables 1 through 3 and adding a 
new table in their place to read as follows:

Sec.  13.305  Cost of living adjustments of civil monetary penalties.

* * * * *
    (d) * * *

               Table of Minimum and Maximum Civil Monetary Penalty Amounts for Certain Violations Occurring On or After December 29, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Maximum penalty
                                      Civil monetary penalty       Minimum penalty        New or adjusted     amount when last set     New or adjusted
      United States Code cite               description                 amount            minimum penalty     or adjusted pursuant     maximum penalty
                                                                                              amount                 to law                amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
49 U.S.C. 5123(a), subparagraph     Violation of hazardous      $250 per violation,    No change...........  $50,000 per            $55,000 per
 (1).                                materials transportation    reset 8/10/2005.                             violation, reset 8/    violation.
                                     law.                                                                     10/2005.
49 U.S.C. 5123(a), subparagraph     Violation of hazardous      $250 per violation,    No change...........  $100,000 per           $110,000 per
 (2).                                materials transportation    reset 8/10/2005.                             violation, set 8/10/   violation.
                                     law resulting in death,                                                  2005.
                                     serious illness, severe
                                     injury, or substantial
                                     property destruction.
49 U.S.C. 5123(a), subparagraph     Violation of hazardous      $450 per violation,    No change...........  $50,000 per            $55,000 per
 (3).                                materials transportation    set 8/10/2005.                               violation, set 8/10/   violation.
                                     law relating to training.                                                2005.
49 U.S.C. 46301(a)(1).............  Violation by a person       N/A..................  N/A.................  $25,000 per            $27,500 per
                                     other than an individual                                                 violation, reset 12/   violation.
                                     or small business concern                                                12/2003.
                                     under 49 CFR
                                     46301(a)(1)(A) or (B).
49 U.S.C. 46301(a)(1).............  Violation by an airman      N/A..................  N/A.................  $1,100 per violation,  No change.
                                     serving as an airman                                                     reset 12/12/2003.
                                     under 49 U.S.C.
                                     46301(a)(1)(A) or (B)
                                     (but not covered by
                                     46301(a)(5)(A) or (B).
49 U.S.C. 46301(a)(1).............  Violation by an individual  N/A..................  N/A.................  $1,100 per violation,  No change.
                                     or small business concern                                                reset 12/12/2003.
                                     under 49 U.S.C.
                                     46301(a)(1)(A) or (B)
                                     (but not covered in 49
                                     U.S.C. 46301(a)(5)).
49 U.S.C. 46301(a)(3).............  Violation of 49 U.S.C.      N/A..................  N/A.................  Increase above         No change.
                                     47107(b) (or any                                                         otherwise applicable
                                     assurance made under such                                                maximum amount not
                                     section) or 49 U.S.C.                                                    to exceed 3 times
                                     47133.                                                                   the amount of
                                                                                                              revenues that are
                                                                                                              used in violation of
                                                                                                              such section.

[[Page 72939]]

49 U.S.C. 46301(a)(5)(A)..........  Violation by an individual  N/A..................  N/A.................  $11,000 per            No change.
                                     or small business concern                                                violation, adjusted
                                     (except an airman serving                                                6/15/2006.
                                     as an airman) under 49
                                     U.S.C. 46301(a)(5)(A)(i)
                                     or (ii).
49 U.S.C. 46301(a)(5)(B)(i).......  Violation by an individual  N/A..................  N/A.................  $11,000 per            No change.
                                     or small business concern                                                violation, adjusted
                                     related to the                                                           6/15/2006.
                                     transportation of
                                     hazardous materials.
49 U.S.C. 46301(a)(5)(B)(ii)......  Violation by an individual  N/A..................  N/A.................  $11,000 per            No change.
                                     or small business concern                                                violation, adjusted
                                     related to the                                                           6/16/2006.
                                     registration or
                                     recordation under 49
                                     U.S.C. chapter 441, of an
                                     aircraft not used to
                                     provide air
                                     transportation.
49 U.S.C. 46301(a)(5)(B)(iii).....  Violation by an individual  N/A..................  N/A.................  $11,000 per            No change.
                                     or small business concern                                                violation, adjusted
                                     of 49 U.S.C. 44718(d),                                                   6/15/2006.
                                     relating to limitation on
                                     construction or
                                     establishment of
                                     landfills.
49 U.S.C. 46301(a)(5)(B)(iv)......  Violation by an individual  N/A..................  N/A.................  $11,000 per            No change.
                                     or small business concern                                                violation, adjusted
                                     of 49 U.S.C. 44725,                                                      6/15/2006.
                                     relating to the safe
                                     disposal of life-limited
                                     aircraft parts.
49 U.S.C. 46301(b)................  Tampering with a smoke      N/A..................  N/A.................  $2,200 per violation,  $3,200 per
                                     alarm device.                                                            adjusted 1/21/1997.    violation.
49 U.S.C. 46302...................  Knowingly providing false   N/A..................  N/A.................  $11,000 per            $16,000 per
                                     information about alleged                                                violation, adjusted    violation.
                                     violation involving the                                                  1/21/1997.
                                     special aircraft
                                     jurisdiction of the
                                     United States.
49 U.S.C. 46318...................  Interference with cabin or  N/A..................  N/A.................  $27,500, adjusted 6/   No change.
                                     flight crew.                                                             15/2006.
49 U.S.C. 46319...................  Permanent closure of an     N/A..................  N/A.................  $11,000 per day,       No change.
                                     airport without providing                                                adjusted 6/15/2006.
                                     sufficient notice.
49 U.S.C. 47531...................  Violation of 49 U.S.C.      N/A..................  N/A.................  See 49 U.S.C.          No change.
                                     47528-47530, relating to                                                 46301(a)(1)(A) and
                                     the prohibition of                                                       (a)(5), above.
                                     operating certain
                                     aircraft not complying
                                     with stage 3 noise levels.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Issued in Washington, DC on November 22, 2010.
J. Randolph Babbitt,
Administrator.
[FR Doc. 2010-29920 Filed 11-26-10; 8:45 am]
BILLING CODE 4910-13-P