[Federal Register Volume 62, Number 23 (Tuesday, February 4, 1997)]
[Rules and Regulations]
[Pages 5167-5170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2745]


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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.

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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 ``TV[email protected]'', 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-of-living'' 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

[[Page 5168]]

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. 
Sec. 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 one-
tenth 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.

[[Page 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. 
Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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.


Sec. 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. 
Sec. 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.

[[Page 5170]]

    (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