Source: https://www.federalregister.gov/documents/2003/02/10/03-3160/criteria-and-procedures-for-proposed-assessment-of-civil-penalties
Timestamp: 2017-11-19 02:21:10
Document Index: 179223235

Matched Legal Cases: ['§\u2009104', '§\u2009104', '§\u20095', '§\u2009110', '§\u20095', '§\u2009100', '§\u2009100', 'art 100', '§\u20093', '§\u2009605', '§\u2009202', '§\u2009203', '§\u2009100', '§\u2009100', '§\u2009100']

A Rule by the Mine Safety and Health Administration on 02/10/2003
This direct final rule is effective April 11, 2003 without further notice, unless we (MSHA) receive significant adverse comment by March 12, 2003.
1219-AB32
Section 100.4 Determination of Penalty; Single Penalty Assessment
Section 100.5 Determination of Penalty; Special Assessment
https://www.federalregister.gov/d/03-3160 https://www.federalregister.gov/d/03-3160
The Mine Safety and Health Administration (MSHA) is revising its civil penalty assessment amounts to adjust for inflation. The Debt Collection Improvement Act of 1996 (DCIA) requires MSHA to adjust all civil penalties for inflation at least once every four years according to the formula specified in the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act). MSHA intends that this action will maintain the deterrent effect of its civil penalties and encourage compliance with the Federal Mine Safety and Health Act of 1977 (Mine Act) and its regulations. The revised penalties apply to citations and orders issued on or after the effective date, and not to citations or orders pending assessment on the effective date.
Clearly identify comments as such and submit them either electronically to comments@msha.gov; by facsimile to (202) 693-9441; or by regular mail or hand delivery to MSHA, Office of Standards, Regulations, and Variances, 1100 Wilson Blvd., Room 2313, Arlington, Virginia 22209-3939. Comments are posted for public viewing at http://www.msha.gov/​currentcomments.htm.
The Debt Collection Improvement Act of 1996 requires MSHA to adjust our Start Printed Page 6610civil penalties for inflation at least once every four years. MSHA has determined that this rulemaking is suitable for a direct final rule because we do not expect to receive any significant adverse comments. A significant adverse comment is one that explains why the rule is inappropriate, including challenges to the rule's underlying premise or approach, or why it will be ineffective or unacceptable without a change. In determining whether a comment necessitates withdrawal of this direct final rule, we will consider whether it warrants a substantive response in a notice and comment process. If we receive such comment, we will publish a timely withdrawal of this direct final rule in the Federal Register.
Sections 105(a) and 110 of Mine Act require us (MSHA) to propose a civil penalty assessment for each violation of the Mine Act or a mandatory safety and health standard promulgated under the Mine Act. The Mine Act originally provided that—
(2) The maximum penalty for failure to correct a violation cited under § 104(a) within the period permitted for its correction would not exceed $1,000 for each day that the violation continued to exist; and
On May 21, 1982 (47 FR 22286), MSHA promulgated a rule that—
In 1990, the Omnibus Budget Reconciliation Act of 1990 (Budget Act), Pub. L. 101-508, amended the Mine Act. Section 3102 of the Budget Act raised the maximum MSHA civil penalty per violation from $10,000 to $50,000; and raised the civil penalty for failure to correct a violation under § 104(a) of the Mine Act from $1,000 to $5,000 per day. The miner smoking penalty remained at $250. Also in 1990, Congress passed the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act), Pub. L. 101-410, amending the Budget Act.
In 1996, Congress passed the Omnibus Consolidated Rescissions and Appropriations Act of 1996 (OCRAA), Pub. L. 104-134. Chapter 10 of the OCRAA, titled the “Debt Collection Improvement Act of 1996” (DCIA), modified the Inflation Adjustment Act. The DCIA requires each agency to adjust for inflation each civil monetary penalty provided for by law within its jurisdiction at least once every four years. Agencies must make this cost-of-living adjustment using the inflation adjustment formula described under § 5 of the Inflation Adjustment Act. Although the first adjustment was not allowed to exceed 10% of the existing penalty, subsequent adjustments are not subject to this limitation.
On April 22, 1998 (63 FR 20032), MSHA published a final rule increasing civil penalties to comply with the DCIA. To account for inflation since 1992, this rule raised the maximum proposed civil penalty assessment from $50,000 to $55,000, raised the single penalty assessment from $50 to $55, and revised the Penalty Conversion Table. This rule also codified the penalties assessed under §§ 110(b) and 110(g) of the Mine Act into 30 CFR 100, raising the daily penalty for failing to abate violations from $5,000 to $5,500 and raising the penalty for smoking or carrying smoking materials from $250 to $275.
In passing the Inflation Adjustment Act, Congress stated its concern that the punitive and deterrent effects of civil penalties erode over time when the penalties fail to keep pace with inflation. This direct final rule makes a cost-of-living adjustment to MSHA's proposed civil penalty assessment amounts in compliance with the Inflation Adjustment Act. Under § 5 of the Inflation Adjustment Act, civil monetary penalties are to be increased by a “cost-of-living” adjustment. The statute defines “cost-of-living” adjustment as—
* * * The percentage * * * by which—
The term Consumer Price Index (CPI) means “the Consumer Price Index for all-urban consumers published by the Department of Labor.”
The Inflation Adjustment Act only requires us to use the cost-of-living adjustment and rounding formula for penalties that were statutorily established by Congress. The Mine Act contains only three such penalties: the civil maximum penalty, the daily maximum penalty, and the miner smoking penalty. Consequently, this direct final rule adjusts our regulatory penalties, those not established by the Mine Act, by 10.4% truncated to the whole dollar. Start Printed Page 6611
This section pertains to violations, which are of such a nature or seriousness that we cannot determine an appropriate penalty using the regular assessment formula (§ 100.3) or the single penalty assessment (§ 100.4). MSHA field personnel review certain categories of violations for special assessment. If the violation qualifies, experienced MSHA mine safety and health specialists determine the special assessment penalty based on the facts and circumstances of each case.
In accordance with Executive Order (E.O.) 12866, we have analyzed the estimated costs and benefits associated with the revisions of Part 100—Criteria and Procedures for Proposed Assessment of Civil Penalties. We estimate that the direct final rule will result in increased costs to the mining industry of about $2.5 million annually, which is not an economically significant regulatory action under § 3(f)(1) of E.O. 12866.
In accordance with § 605 of the Regulatory Flexibility Act (RFA), we certify that this direct final rule does not have a significant economic impact on a substantial number of small entities. Under the Small Business Regulatory Enforcement Fairness Act (SBREFA) amendments to the RFA, we must include the factual basis for this certification in the direct final rule. Accordingly, we are publishing a summary of the factual basis for our regulatory flexibility certification statement in the Federal Register, as part of this preamble, and are providing a copy to the Small Business Administration (SBA), Office of Advocacy. We also will mail a copy of the direct final rule, including the preamble and certification statement, to mine operators and miners' representatives and post it on our Internet Home Page at www.msha.gov.
The following table summarizes the results of our analysis.Start Printed Page 6612
Mine size (employment)
Estimated cost/mine
Small <20 1,078 $720,498 $586 $668 0.123%
Small <=500 1,901 1,270,563 15,093 668 0.008%
Small <20 9,928 1,002,761 8,377 101 0.012%
Small <=500 11,620 1,173,659 36,802 101 0.003%
The full economic analysis, including the factual basis for our regulatory flexibility certification statement, is provided in the Regulatory Economic Analysis (REA) supporting this direct final rule. The REA is available from MSHA, Office of Standards, Regulations, and Variances, 1100 Wilson Blvd., Room 2313, Arlington, Virginia 22209-3939. You can also view and obtain a copy from our Internet Home Page at www.msha.gov.
This direct final rule affects about 220 small mines operated by governmental jurisdictions to provide aggregates for the construction and repair of highways and roads. We have determined, for purposes of § 202 of the Unfunded Mandates Reform Act of 1995, that this direct final rule does not include any Federal mandate that may result in increased expenditures by State, local, or tribal governments in the aggregate of more than $100 million, or increased expenditures by the private sector of more than $100 million. We also determined, for purposes of § 203, that this direct final rule does not significantly or uniquely affect these entities.
End Amendment Part Start Part Start Printed Page 6613
20 or fewer 72
66 5,099
69 5,828
72 6,678
76 7,892
79 9,713
80 10,321
81 11,535
84 15,177
85 16,392
86 18,213
87 20,642
89 25,498
90 27,927
91 30,355
92 33,391
93 36,427
94 39,462
95 42,498
96 45,533
97 48,569
98 51,605
99 54,640
Determination of penalty; single penalty assessment.
(1) If the violation is not abated within the time set by the inspector, the violation will not be eligible for the $60 single penalty and will be processed through either the regular assessment provision (§ 100.3) or special assessment provision (§ 100.5).
(2) If the violation meets the criteria for excessive history under paragraph (b) of this section, the violation will not be eligible for the $60 single penalty and will be processed through the regular assessment provision (§ 100.3).