[Federal Register Volume 65, Number 200 (Monday, October 16, 2000)]
[Rules and Regulations]
[Pages 61089-61090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26197]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 383

[Docket No. OST 2000-8058]
RIN 2105-AC92


Civil Penalties

AGENCY: Office of the Secretary, DOT.

ACTION: Final rule.

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SUMMARY: The Wendell H. Ford Aviation Investment and Reform Act for the 
21st Century (AIR 21) revised several civil penalty provisions 
applicable to violations of the aviation economic requirements of Title 
49. By this rule, the Department of Transportation (Department) is 
modifying its regulations to reflect these revised civil penalties. 
This rule also reviews those civil penalties unaffected by the recent 
statutory amendments to determine whether they should be adjusted to 
recognize inflation that has occurred since the adoption of part 383 in 
1997. This review is required under the Federal Civil Penalties 
Inflation Adjustment Act of 1990 and the Debt Collection Improvement 
Act of 1996.

EFFECTIVE DATE: This rule is effective on November 15, 2000. However, 
the statutory amendments it reflects became effective on April 5, 2000, 
by their own terms.

FOR FURTHER INFORMATION CONTACT: Nicholas Lowry, Attorney, Office of 
Aviation Enforcement and Proceedings (C-70), Department of 
Transportation, 400 Seventh Street, SW., Washington, DC 20590, (202) 
366-9349.

SUPPLEMENTARY INFORMATION:

I. Civil Penalty Adjustments Required by AIR 21.

    The Wendell H. Ford Aviation Investment and Reform Act for the 21st 
Century (AIR 21) among other things amended the statutory provisions 
proscribing discriminatory practices in air transportation and the 
civil penalties for violations of those provisions. Section 706 of AIR 
21 creates a new section 40127 of Title 49 which specifically prohibits 
discrimination by air carriers or foreign air carriers on the basis of 
race, color, national origin, religion, sex or ancestry. In addition, 
section 707(a) of AIR 21 extended the anti-discrimination provisions of 
49 U.S.C. 41705, the Air Carrier Access Act, which formerly applied 
only to air carriers, to foreign air carriers, as well.
    With respect to the civil penalties the Department may impose, 
section 707(b) of AIR 21 amended the provisions of 49 U.S.C. 
46301(a)(3) to apply a $10,000 maximum civil penalty to each violation 
of section 41705. In addition, section 222 of AIR 21 established $2,500 
as the maximum civil penalty amount for each violation of section 40127 
or 41712 (the latter of which prohibits unfair and deceptive trade 
practices and unfair methods of competition).
    The recent legislation does not affect the civil penalty provisions 
applicable to violations of all other aviation economic requirements, 
or Department rules or orders not proscribed or issued under section 
40127, 41705 or 41712. For example, penalties for violations of 
reporting requirements, cases involving certain unauthorized 
operations, or cases involving violations of other Department orders or 
rules not issued pursuant to the authority of 49 U.S.C. 40127, 41705, 
or 41712, remain at the current level of $1,100 per violation under AIR 
21.

II. Inflation Adjustment of Other Civil Penalty Provisions

    The Debt Collection Improvement Act of 1996 (Pub. L. 104-134, sec. 
31001) requires each agency to adjust each civil monetary penalty 
within its jurisdiction by the inflation adjustment described in 
section 5 of the Federal Civil Penalties Inflation Adjustment Act of 
1990 (Pub. L. 101-410). Section 5 requires the adjustment to be rounded 
to the nearest multiple of $1,000 for penalties greater than $1,000 and 
less than or equal to $10,000. The adjustment is to be the percentage 
increase in the Consumer Price Index (CPI) from June of the calendar 
year in which the penalty was last adjusted to June of the year 
preceding the year in which the revision is proposed. Under the 1996 
act, agencies are to review civil penalties which they administer at 
least once every four years. The civil penalties to which the 
adjustment would apply here are those civil penalty provisions not 
affected by AIR 21, that is, penalties for all violations other than 
cases involving 49 U.S.C. 40127, 41705, or 41712 or regulations or 
orders issued thereunder.
    Since the total inflation as measured by the CPI between June 1997 
and June 2000 was approximately 7 percent, an appropriate increase in 
the civil penalty amount would be $77. In view of the rounding 
provision of the statute, therefore, no adjustment of the civil penalty 
amount is warranted at this time.

III. Waiver of Notice of Proposed Rulemaking

    In developing this final rule, we are waiving the usual notice of 
proposed rulemaking and public comment procedures set forth in the 
Administrative Procedure Act (APA) (5 U.S.C. 553). The APA provides an 
exception to the notice and comment procedures when an agency finds 
there is good cause for dispensing with such procedures on the basis 
that they are impracticable, unnecessary or contrary to the public 
interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good 
cause exists for dispensing with the notice of proposed rulemaking and 
public comment procedures for this rule. Specifically, this rulemaking 
is required by the Wendell H. Ford Aviation Investment and Reform Act 
for the 21st Century, the Federal Civil Penalties Inflation Adjustment 
Act of 1990, and the Debt Collection Improvement Act of 1996, with no 
issues of policy discretion. Accordingly, we believe that opportunity 
for prior comment is unnecessary and contrary to the public interest, 
and are issuing these revised regulations as a final rule.

IV. Regulatory Impact Statement

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule has been evaluated in accordance with the existing 
policies and procedures and is considered to be not significant under 
both Executive Order 12866 and DOT Regulatory Policies and Procedures. 
The final rule is exempt from review by the Office of Management and 
Budget (OMB) in accordance with the provisions of Executive Order 
12866, because it is limited to the adoption of statutory language, 
without interpretation. This final rule amends the regulations 
implementing the civil penalty provisions to comply with AIR-21 and 
reviews the civil penalties unaffected by the recent statutory 
amendments to determine if inflation adjustments are necessary in 
accordance with Federal Civil Penalties Inflation Adjustment Act and 
the Debt Collection Improvement Act. This rule simply adjusts or sets 
penalties for those who violate the regulations. As a result, we have 
determined that there are no economic consequences flowing from this 
rule.

[[Page 61090]]

Indeed, to avoid any costs, regulated entities need only comply with 
the law.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 requires an assessment of 
the impacts of proposed and final rule on small entities. An agency 
must prepare a regulatory flexibility analysis that is consistent with 
the Regulatory Flexibility Act (5 U.S.C. 601-612), unless the agency 
can certify that a regulation will not have a significant economic 
impact on a substantial number of small entities. This rule imposes no 
substantive burden and merely amends the existing penalties for those 
who engage in prohibited conduct to reflect statutory changes. The 
civil penalties will affect only those who engage in conduct prohibited 
by statute or related regulations. Those who comply with the law will 
not be affected by the civil penalties. Accordingly, the Office of the 
Secretary certifies that this action will not have a significant 
economic impact on a substantial number of small entities.

Paperwork Reduction Act

    This final rule imposes no new reporting or record keeping 
requirements necessitating clearance by OMB.

List of Subjects in 14 CFR Part 383

    Administrative practice and procedure, Penalties.

    Accordingly, the Department of Transportation revises Part 383 of 
Title 14, as set forth below:

PART 383--CIVIL PENALTIES

Sec.
Sec. 383.1  Basis and purpose.
Sec. 383.2  Amount of penalty.

    Authority: Secs. 222, 706, 707(b), Pub. L. 106-181, 114 Stat. 
61; Pub. L. 101-410, 104 Stat. 890, as amended by sec. 31001, Pub. 
L. 104-134, 110 Stat. 1321.


Sec. 383.1  Basis and purpose.

    (a) Basis. This part implements the civil penalty provisions of the 
Wendell H. Ford Aviation Investment and Reform Act for the 21st Century 
(AIR 21, Pub. L. 106-181; 114 Stat. 61; April 5, 2000, sections 222, 
706, 707(b)), and the Federal Civil Penalties Inflation Adjustment Act 
of 1990 (Pub. L. 101-410), as amended by the Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134, section 31001). The Debt 
Collection Improvement Act requires each agency head to adjust by 
regulation each civil monetary penalty provided by law by the inflation 
adjustment described under section 5 of the Federal Civil Penalties 
Inflation Adjustment Act. We have applied these guidelines to the civil 
penalty amounts that were not affected by AIR 21 and, taking into 
account the inflation that has occurred since the most recent 
adjustment, have found that no further adjustment is warranted as of 
June 2000.
    (b) Purpose. This part states the civil penalty amounts with 
respect to violations of 49 U.S.C. 40127, 41705 and 41712 and other 
civil penalties provided in 49 U.S.C. 46301 (a)(1) for violations 
covered by this chapter.


Sec. 383.2  Amount of penalty.

    A person is liable to the United States Government for a civil 
penalty of not more than $10,000 for each violation of 49 U.S.C. 41705 
and a civil penalty of not more than $2,500 for each violation of 49 
U.S.C. 40127 or 41712. For other violations of this chapter within the 
scope of 49 U.S.C. 46301, the civil penalty amount is $1,100.
* * * * *

    Issued this 20th day of September, 2000, at Washington, D.C.
Rodney E. Slater,
Secretary of Transportation.
[FR Doc. 00-26197 Filed 10-13-00; 8:45 am]
BILLING CODE 4910-62-P