[Federal Register Volume 83, Number 8 (Thursday, January 11, 2018)]
[Rules and Regulations]
[Pages 1304-1305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00319]



46 CFR Part 506

[Docket No. 18-01]
RIN 3072-AC70

Inflation Adjustment of Civil Monetary Penalties

AGENCY: Federal Maritime Commission.

ACTION: Final rule.


SUMMARY: The Commission is publishing its adjustments to inflation 
annually, pursuant to the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015 (2015 Act). The 2015 Act requires that 
agencies adjust and publish their civil penalties by January 15 each 

DATES: This rule is effective on January 15, 2018.

FOR FURTHER INFORMATION CONTACT: Tyler Wood, General Counsel, Federal 
Maritime Commission, 800 North Capitol Street NW, Room 1018, 
Washington, DC 20573, (202) 523-5740.

SUPPLEMENTARY INFORMATION: This rule adjusts the civil monetary 
penalties assessable by the Commission in accordance with the 2015 Act, 
which became effective on November 2, 2015, Sec. 701 of Public Law 11-
74. The 2015 Act further amended the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (FCPIAA), Public Law 101-410, 104 Stat. 890 
(codified as amended at 28 U.S.C. 2461 note), in order to improve the 
effectiveness of civil monetary penalties and to maintain their 
deterrent effect.
    The 2015 Act requires agencies to adjust civil monetary penalties 
under their jurisdiction by January 15 each year, based on changes in 
the consumer price index (CPI-U) using data from October in the 
previous calendar year. On December 15, 2017, the Office of Management 
and Budget published guidance stating that the CPI-U multiplier for 
October 2017 is 1.02041.\1\ In order to complete the adjustment for 
January 2018, agencies must multiply the most recent civil penalty 
amounts in 46 CFR part 506.

    \1\ Office of Management and Budget, M-18-03, Implementation of 
Penalty Inflation Adjustments for 2018, Pursuant to the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 
at 1 (Dec. 15, 2017) (M-18-03).

Rulemaking Analyses and Notices

Notice and Effective Date

    Adjustments under the FCPIAA, as amended by the 2015 Act, are not 
subject to the procedural rulemaking requirements of the Administrative 
Procedure Act (APA) (5 U.S.C. 553), including the requirements for 
prior notice, an opportunity for comment, and a delay between the 
issuance of a final rule and its effective date.\2\ As noted above, the 
2015 Act requires that the Commission adjust its civil monetary 
penalties no later than January 15 of each year.

    \2\ FCPIAA section 4(b)(2); M-17-11 at 2.

Congressional Review Act

    The rule is not a ``major rule'' as defined by the Congressional 
Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result 
in: (1) An annual effect on the economy of $100,000,000 or more; (2) a 
major increase in costs or prices; or (3) significant adverse effects 
on competition, employment, investment, productivity, innovation, or 
the ability of United States-based companies to compete with foreign-
based companies. 5 U.S.C. 804(2).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 
601-612) provides that whenever an agency promulgates a final rule 
after being required to publish a notice of proposed rulemaking under 
the APA (5 U.S.C. 553), the agency must prepare and make available a 
final regulatory flexibility analysis (FRFA) describing the impact of 
the rule on small entities. 5 U.S.C. 604. As indicated above, this 
final rule is not subject to the APA's notice and comment requirements, 
and the Commission is not required to prepare an FRFA in conjunction 
with this final rule.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires 
an agency to seek and receive approval from the Office of Management 
and Budget (OMB) before collecting information from the public. 44 
U.S.C. 3507. The agency must submit collections of information in rules 
to OMB in conjunction with the publication of the notice of proposed 
rulemaking. 5 CFR 1320.11. This final rule does not contain any 
collections of information, as defined by 44 U.S.C. 3502(3) and 5 CFR 

Regulation Identifier Number

    The Commission assigns a regulation identifier number (RIN) to each 
regulatory action listed in the Unified Agenda of Federal Regulatory 
and Deregulatory Actions (Unified Agenda). The Regulatory Information 
Service Center publishes the Unified Agenda in April and October of 
each year. You

[[Page 1305]]

may use the RIN contained in the heading at the beginning of this 
document to find this action in the Unified Agenda, available at http://www.reginfo.gov/public/do/eAgendaMain.

List of Subjects in 46 CFR Part 506

    Administrative practice and procedure, Penalties.

    For the reasons stated in the preamble, part 506 of title 46 of the 
Code of Federal Regulations is amended as follows:


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

    Authority: 28 U.S.C. 2461.

2. Amend Sec.  506.4 by revising paragraph (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:

                                                                                      Maximum         Maximum
                                                                                  penalty amount   penalty as of
      United States Code citation          Civil monetary penalty description      as of January    January 15,
                                                                                     15, 2017          2018
46 U.S.C. 42304.......................  Adverse impact on U.S. carriers by             2,011,061       2,052,107
                                         foreign shipping practices.
46 U.S.C. 41107(a)....................  Knowing and Willful violation/Shipping            57,391          58,562
                                         Act of 1984, or Commission regulation
                                         or order.
46 U.S.C. 41107(b)....................  Violation of Shipping Act of 1984,                11,478          11,712
                                         Commission regulation or order, not
                                         knowing and willful.
46 U.S.C. 41108(b)....................  Operating in foreign commerce after              114,782         117,125
                                         tariff suspension.
46 U.S.C. 42104.......................  Failure to provide required reports,               9,054           9,239
                                         etc./Merchant Marine Act of 1920.
46 U.S.C. 42106.......................  Adverse shipping conditions/Merchant           1,810,706       1,847,663
                                         Marine Act of 1920.
46 U.S.C. 42108.......................  Operating after tariff or service                 90,535          92,383
                                         contract suspension/Merchant Marine Act
                                         of 1920.
46 U.S.C. 44102.......................  Failure to establish financial                    22,868          23,335
                                         responsibility for non-performance of               762             778
46 U.S.C. 44103.......................  Failure to establish financial                    22,868          23,335
                                         responsibility for death or injury.                 762             778
31 U.S.C. 3802(a)(1)..................  Program Fraud Civil Remedies Act/makes            10,957          11,181
                                         false claim.
31 U.S.C. 3802(a)(2)..................  Program Fraud Civil Remedies Act/giving           10,957          11,181
                                         false statement.

    By the Commission.

Rachel E. Dickon,
Assistant Secretary.
[FR Doc. 2018-00319 Filed 1-10-18; 8:45 am]