[Federal Register Volume 63, Number 46 (Tuesday, March 10, 1998)]
[Rules and Regulations]
[Pages 11618-11624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5876]


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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 223, 
225, 228, 229, 230, 231, 232, 233, 234, 235, 236, and 240

[Docket No. RSEP-8, Notice 1]
RIN 2105-AC63


Civil Monetary Penalty Inflation Adjustment

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Final rule.

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SUMMARY: FRA is implementing the requirements of the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended by the Debt 
Collection Improvement Act of 1996 in this final rule. FRA is adjusting 
the maximum civil monetary penalties it issues for violations of 
railroad safety statutes and regulations under its authority.

EFFECTIVE DATE: April 9, 1998.

FOR FURTHER INFORMATION CONTACT: Cynthia Walters, Trial Attorney, 
Office of Chief Counsel, FRA, 400 Seventh Street S.W., Washington, D.C. 
20590 (telephone 202-632-3188).

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890, 28 U.S.C. 
2461, note (Act), as amended by Section 31001(s)(1) of the Debt 
Collection Improvement Act of 1996 Public Law 104-134, 110 Stat. 1321-
373, April 26, 1996, requires that agencies adjust by regulation each 
maximum civil monetary penalty (CMP) within that agency's jurisdiction 
by October 23, 1996 (180 days after enactment of the Debt Collection 
Improvement Act) and adjust those penalty amounts once every four years 
thereafter. Congress recognized the important role that CMPs play in 
deterring violations of Federal law and regulations and realized that 
inflation has diminished the impact of these penalties. In the Debt 
Collection Improvement Act, Congress found a way to counter the effect 
that inflation has had on the CMPs by having the agencies charged with 
enforcement responsibility administratively adjust the CMP.

Calculation of the Adjustment

    The inflation adjustment is to be calculated by increasing the 
maximum civil monetary penalty or the range of minimum and maximum CMPs 
by the percentage that the Consumer Price Index (CPI) for the month of 
June 1995 (the calendar year preceding the adjustment) exceeds the CPI 
for the month of June of the last calendar year in which the amount of 
such penalty was last set or adjusted. These adjusted amounts are 
subject to a rounding formula found in Section 5 of the Act and the 
first adjustment may not exceed an increase of ten percent. FRA 
utilized Bureau of Labor Statistics Data to calculate adjusted CMP 
amounts.
    FRA currently has 21 regulations that contain provisions which 
reference its ability to impose civil penalties if a person violates 
any requirement in the pertinent portion of a statute or the Code of 
Federal Regulations. In this final rule, FRA is amending each of those 
separate regulatory provisions to reflect the increased maximum CMP and 
the corresponding footnotes in each Schedule of Civil Penalties. In 
some instances, FRA is amending the corresponding appendices to these 
regulatory provisions, which outline FRA enforcement policy, as well. 
With the exception of the provisions relating to the Hours of Service 
Laws contained in Part 228, FRA's maximum penalty was established by 
the Rail Safety Improvement Act of 1988, which set a $10,000 limit for 
a penalty imposed for any single violation and a $20,000 limit for 
willful violation where a grossly negligent violation or pattern of 
repeat violations has created an imminent hazard of death or injury or 
has actually caused death or injury. By applying the adjustment 
calculation described above using the 1988 CPI, these maximum penalties 
will rise to $11,000 and $22,000, respectively, in each of the 
regulations being amended. The Rail Safety Enforcement and Review Act 
of 1992 increased the maximum civil penalty from $1,000 to $10,000 and 
$20,000, respectively, for violations of the Hours of Service Laws, 
making these penalty amounts uniform with those of FRA's other 
regulatory provisions. By applying the same adjustment calculation 
using the 1992 CPI, the maximum penalties for violations of the Hours 
of Service Laws are equivalent to those of the other regulations, 
$11,000 and $22,000.
    FRA is also responsible for enforcement in instances where 
violations of the hazardous materials regulations involve railroads and 
those who ship by rail. The hazardous materials regulations are not 
issued by FRA but are issued by the Research and Special Projects 
Administration (RSPA), a component of DOT. The relevant portions of the 
RSPA regulations have been revised (see 62 FR 2970) to reflect the 
calculation that the new statutory maximum is $27,500. Since FRA has 
previously issued a policy statement concerning its enforcement of 
these regulations, FRA is modifying the language in the policy 
statement which references the statutory maximum to reflect this new 
maximum of $27,500 in this final rule, as well as the provisions in 49 
CFR Part 209 addressing hazardous materials.
    Except for the hazardous materials regulations, these new FRA 
maximum penalties will apply to violations that occur on or after April 
1, 1998. RSPA has already determined that the new maximums for 
hazardous materials violations apply to violations that occurred after 
January 21, 1997.

Public Participation

    FRA is proceeding to a final rule without providing a notice of 
proposed rulemaking or an opportunity for public comment. The 
adjustments required by the Act are ministerial acts over which FRA has 
no discretion, making public comment unnecessary. FRA is issuing these 
amendments as a final rule applicable to all future cases under its 
authority.

[[Page 11619]]

Regulatory Impact

A. Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rule has been evaluated in accordance with existing policies 
and procedures. It is not considered a significant regulatory action 
under section 3(f) of Executive Order 12866 and therefore was not 
reviewed by the Office of Management and Budget. This rule is not 
significant under the Regulatory Policies and Procedures of the 
Department of Transportation (44 FR 11034). The economic impact of the 
final rule is minimal to the extent that preparation of a regulatory 
evaluation is not warranted.

Regulatory Flexibility Determination

    FRA certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities. Although 
this rule will apply to railroads who are considered small entities 
there is no economic impact on any person who complies with the Federal 
railroad safety laws.

Federalism

    This final rule will not have a substantial effect on the states, 
on the relationship between the national government and the states, or 
the distribution of power and responsibilities among the various levels 
of government. Thus, in accordance with Executive Order 12612, 
preparation of a Federalism assessment is not warranted.

Paperwork Reduction Act

    There are no new information collection requirements in this final 
rule.

Compliance with the Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) each federal agency ``shall, unless otherwise prohibited by law, 
assess the effects of Federal Regulatory actions on State, local, and 
tribal governments, and the private sector (other than to the extent 
that such regulations incorporate requirements specifically set forth 
in law).'' Section 201. Section 202 of the Act further requires that 
``before promulgating any general notice of proposed rulemaking that is 
likely to result in promulgation of any rule that includes any Federal 
mandate that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $ 
100,000,000 or more (adjusted annually for inflation) in any 1 year, 
and before promulgating any final rule for which a general notice of 
proposed rulemaking was published, the agency shall prepare a written 
statement * * * '' detailing the effect on State, local and tribal 
governments and the private sector. The final rule issued today will 
not result in the expenditure, in the aggregate, of $100,000,000 or 
more in any one year, and thus preparation of a statement is not 
required.

List of Subjects in 49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 
219, 220, 221, 223, 225, 228, 229, 230, 231, 232, 233, 234, 235, 
236, 240

    Railroad safety, Penalties.
    Therefore, in consideration of the foregoing, parts 209, 213, 214, 
215, 216, 217, 218, 219, 220, 221, 223, 225, 228, 229, 230, 231, 232, 
233, 234, 235, 236, 240 Title 49, Code of Federal Regulations are 
amended as follows:

PART 209--[AMENDED]

    1. The authority citation for part 209 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49


Sec. 209.103  [Amended]

    2. Section 209.103 is amended by removing the numerical amount 
``$25,000'' and adding in its place the numerical amount ``$27,500''.


Sec. 209.335  [Amended]

    3. Section 209.335(b) is amended by removing the numerical amount 
``$10,000'' and adding in its place the numerical amount ``$11,000''.


Sec. 209.409  [Amended]

    4. Section 209.409 is amended by removing the numerical amount 
``$10,000'' and adding in its place the numerical amount ``$11,000'' 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 209--[Amended]

    5. In appendix A to part 209, the section entitled Penalty 
Schedules; Assessment of Maximum Penalties is revised to read as 
follows:
* * * * *
    As recommended by the Department of Transportation in its 
initial proposal for rail safety legislative revisions in 1987, the 
RSIA raised the maximum civil penalties for violations of the safety 
regulations. Under the Hours of Service Act, the penalty was changed 
from a flat $500 to a penalty of ``up to $1,000, as the Secretary of 
Transportation deems reasonable.'' Under all the other statutes, the 
maximum penalty was raised from $2,500 to $10,000 per violation, 
except that ``where a grossly negligent violation or pattern of 
repeated violations has created an imminent hazard of death or 
injury to persons, or has caused death or injury,'' a penalty of up 
to $20,000 per violation may be assessed.
    The Rail Safety Enforcement and Review Act of 1992 (RSERA) 
increased the maximum penalty from $1,000 to $10,000 and in some 
cases, $20,000 for a violation of the Hours of Service Laws, making 
these penalty amounts uniform with those of FRA's other regulatory 
provisions. RSERA also increased the minimum civil monetary penalty 
from $250 to $500 for all of FRA's regulatory provisions. The 
Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 
101-410, 104 Stat. 890, note, as amended by Section 31001(s)(1) of 
the Debt Collection Improvement Act of 1996 Public Law 104-134, 110 
Stat. 1321-373, April 26, 1996 required that agencies adjust by 
regulation each maximum civil monetary penalty within the agency's 
jurisdiction for inflation and make subsequent adjustments once 
every four years after the initial adjustment. Accordingly, FRA's 
maximum civil monetary penalties have been adjusted.
    FRA's traditional practice has been to issue penalty schedules 
assigning to each particular regulation specific dollar amounts for 
initial penalty assessments. The schedule (except where issued after 
notice and an opportunity for comment) constitutes a statement of 
agency policy, and is ordinarily issued as an appendix to the 
relevant part of the Code of Federal Regulations. For each 
regulation, the schedule shows two amounts within the $500 to 
$11,000 range in separate columns, the first for ordinary 
violations, the second for willful violations (whether committed by 
railroads or individuals). In one instance--part 231--the schedule 
refers to sections of the relevant FRA defect code rather than to 
sections of the CFR text. Of course, the defect code, which is 
simply a reorganized version of the CFR text used by FRA to 
facilitate computerization of inspection data, is substantively 
identical to the CFR text.
    The schedule amounts are meant to provide guidance as to FRA's 
policy in predictable situations, not to bind FRA from using the 
full range of penalty authority where extraordinary circumstances 
warrant. The Senate report on the bill that became the RSIA stated:
    It is expected that the Secretary would act expeditiously to set 
penalty levels commensurate with the severity of the violations, 
with imposition of the maximum penalty reserved for violation of any 
regulation where warranted by exceptional circumstances. S. Rep. No. 
100-153, 10th Cong., 2d Sess. 8 (1987).
    Accordingly, under each of the schedules (ordinarily in a 
footnote), and regardless of the fact that a lesser amount might be 
shown in both columns of the schedule, FRA reserves the right to 
assess the statutory maximum penalty of up to $22,000 per violation 
where a grossly negligent violation has created an imminent hazard 
of death or injury. This authority

[[Page 11620]]

to assess a penalty for a single violation above $11,000 and up to 
$22,000 is used only in very exceptional cases to penalize egregious 
behavior. Where FRA avails itself of this right to use the higher 
penalties in place of the schedule amount it so indicates in its 
penalty demand letter.
* * * * *

PART 213--[AMENDED]

    6. The authority citation for Part 213 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49


Sec. 213.15  [Amended]

    7. Section 213.15 is amended by:
    a. Removing parenthetical text following the word ``person'' and 
adding in its place: ``(an entity of any type covered under 1 U.S.C. 1, 
including but not limited to the following: a railroad; a manager, 
supervisor, official, or other employee or agent of a railroad; any 
owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
facilities; any independent contractor providing goods or services to a 
railroad; and any employee of such owner, manufacturer, lessor, lessee, 
or independent contractor)'.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500'', removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000'; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix B to Part 213--[Amended]

    8. Footnote 1 to appendix B of part 213 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 214--[AMENDED]

    9. The authority citation for part 214 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49


Sec. 214.5  [Amended]

    10. Section 214.5 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 214--[Amended]

    11. Footnote 1 to appendix A of part 214 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 215--[AMENDED]

    12. The authority citation for Part 215 is revised to read as 
follows:


    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 215.7  [Amended]

    13. Section 215.7 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix B to Part 215--[Amended]

    14. Footnote 1 to appendix B of part 215 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 216--[AMENDED]

    15. The authority citation for part 216 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 216.7  [Amended]

    16. Section 216.7 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

PART 217--[AMENDED]

    17. The authority citation for part 217 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 217.5  [Amended]

    18. Section 217.5 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 217--[Amended]

    19. Footnote 1 to appendix A of part 217 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

[[Page 11621]]

PART 218--[AMENDED]

    20. The authority citation for part 218 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 218.9  [Amended]

    21. Section 218.9 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 218--[Amended]

    22. Footnote 1 to appendix A of part 218 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 219--[AMENDED]

    23. The authority citation for part 219 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, 20140, and 49 CFR 1.49.


Sec. 219.9(a)  [Amended]

    24. Section 219.9(a) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 219--[Amended]

    25. Footnote 1 to appendix A of part 219 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 220--[AMENDED]

    26. The authority citation for part 220 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 220.7  [Amended]

    27. Section 220.7 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix C to Part 220--[Amended]

    28. Footnote 1 to appendix C of part 220 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 221--[AMENDED]

    29. The authority citation for part 221 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 221.17  [Amended]

    30. Section 221.7 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 220--[Amended]

    31. Footnote 1 to appendix A of part 220 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 223--[AMENDED]

    32. The authority citation for part 223 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 223.7  [Amended]

    33. Section 223.7 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix B to Part 223--[Amended]

    34. Footnote 1 to appendix B of part 223 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 225--[AMENDED]

    35. The authority citation for part 225 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, 20901, 21301-21302, and 49 
CFR 1.49.

[[Page 11622]]

Sec. 225.29  [Amended]

    36. Section 225.29 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 225--[Amended]

    37. Footnote 1 to appendix A of part 225 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 228--[AMENDED]

    38. The authority citation for part 228 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, 21101-21108, and 49 CFR 1.49.


Sec. 228.21  [Amended]

    39. Section 228.21 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 228--[Amended]

    40. In appendix A to part 228, the section entitiled Penalty is 
revised to read as follows:
* * * * *
    As amended by the Rail Safety Improvement Act of 1988 and the 
Rail Safety Enforcement and Review Act of 1992, the penalty 
provisions of the law apply to any person (an entity of any type 
covered under 1 U.S.C. 1, including but not limited to the 
following: a railroad; a manager, supervisor, official, or other 
employee or agent of a railroad; any owner, manufacturer, lessor, or 
lessee of railroad equipment, track, or facilities; any independent 
contractor providing goods or services to a railroad; and any 
employee of such owner, manufacturer, lessor, lessee, or independent 
contractor), except that a penalty may be assessed against an 
individual only for a willful violation. See appendix A to 49 CFR 
part 209. For violations that occurred on September 3, 1992, a 
person who violates the Act is liable for a civil penalty, as the 
Secretary of Transportation deems reasonable, in an amount not less 
than $500 nor more than $11,000, except that where a grossly 
negligent violation or a pattern of repeated violations has created 
an imminent hazard of death or injury to persons, or has caused 
death or injury, a penalty not to exceed $22,000 may be assessed. 
The Federal Civil Penalties Inflation Adjustment Act of 1990 as 
amended by the Debt Collection Improvement Act of 1996 required 
agencies to increase the maximum civil monetary penalty for 
inflation. The amounts increased from $10,000 to $11,000 and from 
$20,000 to $22,000 respectively.
    Each employee who is required or permitted to be on duty for a 
longer period than prescribed by law or who does not receive a 
required period of rest represents a separate and distinct violation 
and subjects the railroad to a separate civil penalty. In the case 
of a violation of section 2(a)(3) or (a)(4) of the Act, each day a 
facility is in noncompliance constitutes a separate offense and 
subjects the railroad to a separate civil penalty.
    In compromising a civil penalty assessed under the Act, FRA 
takes into account the nature, circumstances, extent, and gravity of 
the violation committed, and, with respect to the person found to 
have committed such violation, the degree of culpability, any 
history of prior or subsequent offenses, ability to pay, effect on 
ability to continue to do business and such other matters as justice 
may require.
* * * * *

PART 229--[AMENDED]

    41. The authority citation for part 229 is revised to read as 
follows:

    Authority: 49 U.S.C., 20103, 20107, 20701-20703, and 49 CFR 
1.49.


Sec. 229.7  [Amended]

    42. Section 229.7(b) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix B to Part 229--[Amended]

    43. Footnote 1 to appendix B of part 229 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 230--[AMENDED]

    44. The authority citation for part 230 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.

    45. Section 230.0 is amended by:


Sec. 230.0  [Amended]

    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.

[[Page 11623]]

    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

PART 231--[AMENDED]

    46. The authority citation for part 231 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, 20301-20306, and 49 CFR 1.49.


Sec. 231.0  [Amended]

    47. Section 231.0(e) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 231--[Amended]

    48. Footnote 1 to appendix A of part 231 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 232--[AMENDED]

    49. The authority citation for part 232 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 232.0  [Amended]

    50. Section 232.0 (e) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 232--[Amended]

    51. Footnote 1 to appendix A of part 232 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 233--[AMENDED]

    52. The authority citation for Part 233 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.

    53. Section 233.11 is revised to read as follows:

Sec. 233.11  Civil penalties.

    Any person (an entity of any type covered under 1 U.S.C. 1, 
including but not limited to the following: a railroad; a manager, 
supervisor, official, or other employee or agent of a railroad; any 
owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
facilities; any independent contractor providing goods or services to a 
railroad; and any employee of such owner, manufacturer, lessor, lessee, 
or independent contractor) who violates any requirement of this part or 
causes the violation of any such requirement is subject to a civil 
penalty of at least $500 and not more than $11,000 per violation, 
except that: Penalties may be assessed against individuals only for 
willful violations, and, where a grossly negligent violation or a 
pattern of repeated violations has created an imminent hazard of death 
or injury to persons, or has caused death or injury, a penalty not to 
exceed $22,000 per violation may be assessed. Each day a violation 
continues shall constitute a separate offense. See appendix A to this 
part for a statement of agency civil penalty policy.

Appendix A to Part 233--[Amended]

    54. Footnote 1 to appendix A of part 233 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 234--[AMENDED]

    55. The authority citation for part 234 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, and 49 CFR 1.49.


Sec. 234.6  [Amended]

    56. Section 234.6(a) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$10,000''; and adding in its 
place the numerical amount ``$11,000''; and removing the numerical 
amount ``$20,000'' and adding in its place the numerical amount 
``$22,000''.

Appendix A to Part 234--[Amended]

    57. Footnote 1 to appendix A of part 234 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 235--[AMENDED]

    58. The authority citation for part 235 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107, and 49 CFR 1.49.

    59. Section 235.9 is revised to read as follows:


Sec. 235.9  Civil penalty.

    Any person (an entity of any type covered under 1 U.S.C. 1, 
including but not limited to the following: a railroad; a manager, 
supervisor, official, or other employee or agent of a railroad; any 
owner, manufacturer, lessor, or lessee of railroad equipment, track, or 
facilities; any independent contractor providing goods or services to a 
railroad; and any employee of such owner, manufacturer, lessor, lessee, 
or independent contractor) who violates any requirement of this part or 
causes the violation of any such requirement is subject to a civil 
penalty of at least $500 and not more than $11,000 per violation, 
except that: Penalties may be assessed against individuals only for 
willful violations, and, where a grossly negligent violation or a 
pattern of repeated violations has created an imminent hazard of death 
or injury to

[[Page 11624]]

persons, or has caused death or injury, a penalty not to exceed $22,000 
per violation may be assessed. Each day a violation continues shall 
constitute a separate offense. See appendix A to this part for a 
statement of agency civil penalty policy.

Appendix A to Part 234--[Amended]

    60. Footnote 1 to appendix A of part 234 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 236--[AMENDED]

    61. The authority citation for part 236 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 236.0  [Amended]

    62. Section 236.0(f) is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 236--[Amended]

    63. Footnote 1 to appendix A of part 236 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

PART 240--[AMENDED]

    64. The authority citation for part 240 is revised to read as 
follows:

    Authority: 49 U.S.C. 20103, 20107 and 49 CFR 1.49.


Sec. 240.11  [Amended]

    65. Section 240.11 is amended by:
    a. Removing the parenthetical text following the word ``person'' 
and adding in its place: ``(an entity of any type covered under 1 
U.S.C. 1, including but not limited to the following: a railroad; a 
manager, supervisor, official, or other employee or agent of a 
railroad; any owner, manufacturer, lessor, or lessee of railroad 
equipment, track, or facilities; any independent contractor providing 
goods or services to a railroad; and any employee of such owner, 
manufacturer, lessor, lessee, or independent contractor)''.
    b. Removing the numerical amount ``$250'' and adding in its place 
the numerical amount ``$500''; removing the numerical amount 
``$10,000''; and adding in its place the numerical amount ``$11,000''; 
and removing the numerical amount ``$20,000'' and adding in its place 
the numerical amount ``$22,000''.

Appendix A to Part 240--[Amended]

    66. Footnote 1 to appendix A of part 240 is amended by removing the 
numerical amount ``$20,000'' and adding in its place the numerical 
amount ``$22,000''.

    Issued in Washington, D.C. on February 27, 1998.
Jolene M. Molitoris,
Administrator, Federal Railroad Administration.
[FR Doc. 98-5876 Filed 3-9-98; 8:45 am]
BILLING CODE 4910-06-P