[Federal Register Volume 65, Number 158 (Tuesday, August 15, 2000)]
[Rules and Regulations]
[Pages 49741-49742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20681]


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FEDERAL MARITIME COMMISSION

46 CFR Part 506

[Docket No. 00-09]


Inflation Adjustment of Civil Monetary Penalties

AGENCY: Federal Maritime Commission.

ACTION: Final rule.

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SUMMARY: This final rule implements the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended by the Debt Collection 
Improvement Act of 1996. The rule adjusts the amount of each statutory 
civil penalty subject to Federal Maritime Commission jurisdiction in 
accordance with the requirements of that Act.

EFFECTIVE DATE: August 15, 2000.

FOR FURTHER INFORMATION CONTACT: Vern W. Hill, Director, Bureau of 
Enforcement, Federal Maritime Commission, 800 North Capitol Street, 
NW., Room 900, Washington, DC 20573, (202) 523-5783.

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990 (``1990 Act''), Public Law 101-410, 104 Stat. 
890, 28 U.S.C. 2461 note, as amended by the Debt Collection Improvement 
Act of 1996 (``1996 Act''), Public Law 104-134, Title III, 31001(s)(1), 
April 26, 1996, 110 Stat. 1321-373, requires the inflation adjustment 
of Civil Monetary Penalties (``CMP'') to ensure that they continue to 
maintain their deterrent value. The 1996 Act requires that not later 
than 180 days after its enactment, October 23, 1996, and at least once 
every 4 years thereafter, the head of each agency shall, by regulation 
published in the Federal Register, adjust each CMP within its 
jurisdiction by the inflation adjustment described in the 1990 Act. The 
Federal Maritime Commission (``Commission'') last adjusted each CMP 
subject to its jurisdiction effective November 7, 1996. (61 FR 52704).
    The inflation adjustment under the 1990 Act is to be determined by 
increasing the maximum CMP by the cost-of-living adjustment, rounded 
off as set forth in section 5(a) of that Act. The cost-of-living 
adjustment is the percentage (if any) for each CMP by which the 
Consumer Price Index (``CPI'') \1\ 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 CMP was last 
set or adjusted pursuant to law. Any increased penalties shall apply 
only to violations which occur after the date on which the increase 
takes effect.
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    \1\ CPI is defined as the CPI for all urban consumers published 
annually by the Department of Labor.
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    One example of an inflation adjustment of a CMP is as follows. The 
CPI for June 1999 (the year preceding this adjustment) was 166.2 and 
the CPI for June 1996 was 156.7.\2\ The inflation factor, therefore, is 
1.06 (166.2 divided by 156.7). Section 13 of the Shipping Act of 1984 
(``1984 Act''), 46 U.S.C. app. 1712, imposes a maximum $25,000 penalty 
for a knowing and willful violation of the 1984 Act which was inflation 
adjusted in 1996 to $27,500. The maximum penalty amount after 
calculating the increase and applying the statutory rounding would be 
$30,000.
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    \2\ The above CPI figures are taken from the Department of 
Labor, Bureau of Labor Statistics ``All Items'' index which uses 
1982-84 as the reference base period. The 1982-84 base period was 
adopted pursuant to changes to the CPI in 1998.
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    A similar calculation was done with respect to each CMP subject to 
the jurisdiction of the Commission. In compliance with the 1990 Act, as 
amended, the Commission is hereby amending 46 CFR 506.4(d) of its 
regulations which sets forth the newly adjusted maximum penalty 
amounts.
    This final rule has been issued without prior public notice or 
opportunity for public comment. The Administrative Procedure Act (5 
U.S.C. 553(b)(B)) does not require that process ``when the agency for 
good cause finds (and incorporates the finding and a brief statement of 
reasons therefor in the rules issued) that notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' In this instance, the Commission finds, for good cause, 
that solicitation of public comment on this final rule is unnecessary 
and impractical. The Congress has required that the agency periodically 
make the inflation adjustments contained in the rule, and provided no 
discretion regarding the substance of the adjustments. All that is 
required of the Commission for determination of the amount of the 
inflation adjustment are ministerial computations.
    The Commission certifies pursuant to the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), that this rule will not have a significant 
economic impact on a substantial number of small entities, including 
small businesses, small organizational units, and small governmental 
jurisdictions because it merely increases the maximum statutory civil 
monetary penalty by 6 percent for those entities that commit violations 
after the effective date of this rule. The Commission rarely has 
imposed the statutory maximum civil monetary penalty and, moreover, 
considers ability of a respondent to pay a civil monetary penalty in 
determining its amount. The size of a company necessarily enters into a 
determination of its ability to pay.
    The rule does not contain any collection of information 
requirements as defined by the Paperwork Reduction Act of 1995, as 
amended. Therefore, Office of Management and Budget review is not 
required.

List of Subjects in 46 CFR Part 506

    Administrative practice and procedure, Claims.

    For the reasons set out in the preamble, the Commission amends 46 
CFR Part 506 as follows:

PART 506--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

    1. The authority citation for part 506 continues to read as 
follows:

    Authority: 28 U.S.C. 2461.

    2. Revise Sec. 506.4(d) to read as follows:


Sec. 506.4  Cost of living adjustments of civil monetary penalties.

* * * * *
    (d) Inflation adjustment. Maximum civil monetary penalties within 
the jurisdiction of the Federal Maritime Commission are adjusted for 
inflation as follows:

[[Page 49742]]



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                                                                                                         New
                                                                                          Current      adjusted
          United States Code Citation             Civil Monetary Penalty description      maximum      maximum
                                                                                          penalty      penalty
                                                                                           amount       amount
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46 U.S.C. app. sec. 817d......................  Failure to establish financial                5,500        6,000
                                                 responsibility for death or injury.            220      \1\ 220
46 U.S.C. app. sec. 817e......................  Failure to establish financial                5,500        6,000
                                                 responsibility for non-performance of          220      \1\ 220
                                                 transportation.
46 U.S.C. app. sec. 876.......................  Failure to provide required reports,          5,500        6,000
                                                 etc.--Merchant Marine Act of 1920.
46 U.S.C. app. sec. 876.......................  Adverse shipping conditions/Merchant      1,100,000    1,175,000
                                                 Marine Act of 1920.
46 U.S.C. app. sec. 876.......................  Operating after tariff or service            55,000       60,000
                                                 contract suspension/Merchant Marine
                                                 Act of 1920.
46 U.S.C. app. sec. 1710a.....................  Adverse impact on U.S. carriers by        1,100,000    1,175,000
                                                 foreign shipping practices.
46 U.S.C. app. sec. 1712......................  Operating in foreign commerce after          55,000       60,000
                                                 tariff suspension.
46 U.S.C. app. sec. 1712......................  Knowing and willful violation/Shipping       27,500       30,000
                                                 Act of 1984 or Commission regulation
                                                 or order.
46 U.S.C. app. sec. 1712......................  Violation of Shipping Act of 1984,            5,500        6,000
                                                 Commission regulation or order, not
                                                 knowing or willful.
31 U.S.C. sec. 3802(a)(1).....................  Program Fraud Civil Remedies Act/             5,500        6,000
                                                 giving false statement.
31 U.S.C. sec. 3802(a)(2).....................  Program Fraud Civil Remedies Act/             5,500       6,000
                                                 giving false statement.
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\1\ Application of the statutory rounding resulted in no increase to these penalties.


    By the Commission.
Bryant L. VanBrakle,
Secretary.
[FR Doc. 00-20681 Filed 8-14-00; 8:45 am]
BILLING CODE 6730-01-P