[Federal Register Volume 61, Number 215 (Tuesday, November 5, 1996)]
[Rules and Regulations]
[Pages 56900-56901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28415]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 221

[Docket No. R-168]
RIN 2105-AC63


Regulated Transactions Involving Documented Vessels and Other 
Maritime Interests; Inflation Adjustment of Civil Monetary Penalties

AGENCY: Maritime Administration, DOT.

ACTION: Final rule.

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[[Page 56901]]

SUMMARY: In accordance with the Federal Civil Monetary Penalty 
Inflation Adjustment Act of 1996, as amended by the Debt Collection 
Improvement Act of 1996, this final rule incorporates inflation 
adjustments for the civil monetary penalties described in procedural 
regulations of the Maritime Adminstration (MARAD) contained in Subpart 
E of 46 CFR Part 221.

EFFECTIVE DATE: This rule is effective on November 7, 1996.

FOR FURTHER INFORMATION CONTACT: Edmund T. Sommer, Jr., Chief, Division 
of General and International Law, Maritime Administration, Tel. (202) 
366-5181, Fax. (202) 366-7485.

SUPPLEMENTARY INFORMATION:

The Debt Collection Improvement Act of 1996

    In an effort to maintain the remedial impact of civil money 
penalties (CMPs) and promote compliance with law, the Federal Civil 
Monetary Penalty Inflation Adjustment Act of 1990 (P.L. 101-410) was 
amended by the Debt Collection Improvement Act of 1996 (P.L. 104-134) 
to require Federal agencies to regularly adjust certain CMPs for 
inflation. As amended, the law requires each agency to make an initial 
inflationary adjustment for all applicable CMPs, with specified 
exemptions, and to make further adjustments at least once every four 
years thereafter.
    The Debt Collection Improvement Act of 1996 further stipulates that 
any resulting increases in a CMP due to the calculated inflation 
adjustments (i) should apply only to the 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 Act, the inflation adjustment for each applicable CMP is 
determined by increasing the maximum CMP amount per violation by the 
cost of living adjustment. The ``cost of living'' adjustment is defined 
as the percentage of each CMP 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 the CMP last set or adjusted pursuant to law. Any calculated 
increase under this adjustment is subject to a specific rounding 
formula set in the Act.

Civil Penalties Under 46 U.S.C. 31309 and 31330; 46 App. U.S.C. 808

    MARAD has provisions in its regulations at 46 CFR Part 221 
prescribing procedures for three civil penalties that it may assess 
under the following authorities:
    1. 46 U.S.C. 31309--a general civil penalty of up to $10,000 for 
violation of 46 U.S.C. Chapter 313--Commercial Instruments and Maritime 
Liens.
    2. 46 U.S.C. 31330--a penalty of up to $25,000 for violation of 46 
U.S.C. 31328 or 31329, relating to requirements for trustees of 
mortgaged vessels and vessel interests and purchasers of documented 
vessels under order of a district court.
    3. 46 App. U.S.C. 808--a penalty of up to $10,000 for the unlawful 
transfer of a documented vessel or interests therein.
    MARAD is amending its regulations at 46 CFR 221.61 to adjust the 
maximum amount of each of these three civil monetary penalties. Each of 
the $10,000 maximum penalties is being increased to $11,000. The 
$25,000 maximum penalty is being increased to $27,500.

Rulemaking Analysis and Notices

Executive Order 12866 (Regulatory Planning and Review), and Department 
of Transportation (DOT) Regulatory Policies; P.L. 104-121.

    This final rule is exempt from review by OMB under E.O. 12866 
because it is limited to the adoption of statutory language without 
interpretation. It also is not considered a major rule for purposes of 
Congressional review under P.L. 104-121.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to the notice and comment procedures because they are 
unnecessary or contrary to the public interest. MARAD finds that under 
5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with notice and 
comment since this rule only implements statutory authority as mandated 
in P.L. 104-134, with no issues of policy discretion. Accordingly, 
opportunity for public comment is unnecessary.

Federalism

    MARAD has analyzed this rulemaking in accordance with principles 
and criteria contained in E.O. 12612 and has determined that these 
regulations do not have sufficient federalism implications to warrant 
the preparation of a Federalism Assessment.

Regulatory Flexibility

    The Maritime Administrator certifies that this rulemaking will not 
have a significant economic impact on a substantial number of small 
entities. Any penalties that may be assessed by MARAD will be based on 
the nature of the violation and not the size of the entity. The 
aggregate impact of any enforcement action that might be taken by MARAD 
on violations can be expected to have a negligible impact on small 
business entities.

Environmental Assessment

    MARAD has concluded that this final rule has no environmental 
impact and that an environmental impact statement is not required.

Paperwork Reduction

    This rulemaking contains no new or amended information collection 
or recordkeeping requirements which have been or require approval by 
the Office of Management and Budget. This rule does not impose any 
unfunded mandates.

List of Subjects in 46 CFR Part 221

    Maritime carriers, Mortgages, Reporting and recordkeeping 
requirements, Trust and trustees.

    Accordingly, 46 CFR Part 221 is amended as follows:
    1. The authority citation continues to read as follows:

    Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 114(b), 
1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 1.66

    2. Section 221.61 is revised to read as follows:


Sec. 221.61  Purpose.

    This subpart describes procedures for the administration of civil 
penalties that the Maritime Administration may assess under 46 U.S.C. 
31309 and 31330, and section 9(d) of the Shipping Act, 1916, as emended 
(46 App. U.S.C. 808(d), pursuant to 49 U.S.C. 336.

    Note: Pursuant to 46 U.S.C. 31309, a general penalty of not more 
than $11,000 may be assessed for each violation of chapter 313 or 46 
U.S.C. subtitle III administered by the Maritime Administration, and 
the regulations in this part that are promulgated thereunder, except 
that a person violating 46 U.S.C. 31328 or 31329 and the regulations 
promulgated thereunder is liable for a civil penalty of not more 
than $27,500 for each violation. A person that charters, sells, 
transfers or mortgages a vessel, or an interest therein, in 
violation of 46 App. U.S.C. 808 is liable for a civil penalty of not 
more than $11,000 for each violation. These penalty amounts are in 
accordance with Public Law 101-410, as amended by Public Law 104-
134. Criminal penalties may also apply to violations of these 
statutes.

    By Order of the Maritime Administrator.

    Dated: October 31, 1996.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 96-28415 Filed 11-4-96; 8:45 am]
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