[Federal Register Volume 85, Number 5 (Wednesday, January 8, 2020)]
[Rules and Regulations]
[Pages 838-840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00089]


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SURFACE TRANSPORTATION BOARD

49 CFR Part 1022

[Docket No. EP 716 (Sub-No. 5)]


Civil Monetary Penalties--2020 Adjustment

AGENCY: Surface Transportation Board.

ACTION: Final rule.

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SUMMARY: The Surface Transportation Board (Board) is issuing a final 
rule to implement the annual inflationary adjustment to its civil 
monetary penalties, pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.

DATES: This final rule is effective January 8, 2020.

FOR FURTHER INFORMATION CONTACT: Nathaniel Bawcombe at (202) 245-0376. 
Assistance for the hearing impaired is available through the Federal 
Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: 

[[Page 839]]

I. Background

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of 
2015, Public Law 114-74, section 701, 129 Stat. 584, 599-601, requires 
agencies to adjust their civil penalties for inflation annually, 
beginning on July 1, 2016, and no later than January 15 of every year 
thereafter. In accordance with the 2015 Act, annual inflation 
adjustments are to be based on the percent change between the Consumer 
Price Index for all Urban Consumers (CPI-U) for October of the previous 
year and the October CPI-U of the year before that. Penalty level 
adjustments should be rounded to the nearest dollar.

II. Discussion

    The statutory definition of civil monetary penalty covers various 
civil penalty provisions under the Rail (Part A); Motor Carriers, Water 
Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline 
Carriers (Part C) provisions of the Interstate Commerce Act, as 
amended. The Board's civil (and criminal) penalty authority related to 
rail transportation appears at 49 U.S.C. 11901-11908. The Board's 
penalty authority related to motor carriers, water carriers, brokers, 
and freight forwarders appears at 49 U.S.C. 14901-14916. The Board's 
penalty authority related to pipeline carriers appears at 49 U.S.C. 
16101-16106.\1\ The Board has regulations at 49 CFR part 1022 that 
codify the method set forth in the 2015 Act for annually adjusting for 
inflation the civil monetary penalties within the Board's jurisdiction.
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    \1\ The Board also has various criminal penalty authority, 
enforceable in a federal criminal court. Congress has not, however, 
authorized federal agencies to adjust statutorily prescribed 
criminal penalty provisions for inflation, and this rule does not 
address those provisions.
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    As set forth in this final rule, the Board is amending 49 CFR part 
1022 to make an annual inflation adjustment to the civil monetary 
penalties in conformance with the requirements of the 2015 Act. The 
adjusted penalties set forth in the rule will apply only to violations 
that occur after the effective date of this regulation.
    In accordance with the 2015 Act, the annual adjustment adopted here 
is calculated by multiplying each current penalty by the cost-of-living 
adjustment factor of 1.01764, which reflects the percentage change 
between the October 2019 CPI-U (257.346) and the October 2018 CPI-U 
(252.885). The table at the end of this decision shows the statutory 
citation for each civil penalty, a description of the provision, the 
adjusted statutory civil penalty level for 2019, and the adjusted 
statutory civil penalty level for 2020.

III. Final Rule

    The final rule set forth at the end of this decision is being 
issued without notice and comment pursuant to the rulemaking provision 
of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which 
does not require that process ``when the agency for good cause finds'' 
that public notice and comment are ``unnecessary.'' Here, Congress has 
mandated that the agency make an annual inflation adjustment to its 
civil monetary penalties. The Board has no discretion to set 
alternative levels of adjusted civil monetary penalties, because the 
amount of the inflation adjustment must be calculated in accordance 
with the statutory formula. Given the absence of discretion, the Board 
has determined that there is good cause to promulgate this rule without 
soliciting public comment and to make this regulation effective 
immediately upon publication.

IV. Regulatory Flexibility Statement

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612, 
generally requires an agency to prepare a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because the Board has determined that notice and comment are not 
required under the APA for this rulemaking, the requirements of the RFA 
do not apply.

V. Congressional Review Act

    Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the 
Office of Information and Regulatory Affairs has designated this rule 
as a non-major rule, as defined by 5 U.S.C. 804(2).

VI. Paperwork Reduction Act

    This final rule does not contain a new or amended information 
collection requirement subject to the Paperwork Reduction Act of 1995, 
44 U.S.C. 3501-3521.

List of Subjects in 49 CFR Part 1022

    Administrative practice and procedures, Brokers, Civil penalties, 
Freight forwarders, Motor carriers, Pipeline carriers, Rail carriers, 
Water carriers.

    It is ordered:
    1. The Board amends its rules as set forth in this decision. Notice 
of the final rule will be published in the Federal Register.
    2. This decision is effective on its date of publication in the 
Federal Register.

    Decided: January 2, 2020.

    By the Board, Board Members Begeman, Fuchs, and Oberman.
Kenyatta Clay,
Clearance Clerk.
    For the reasons set forth in the preamble, part 1022 of title 49, 
chapter X, of the Code of Federal Regulations is amended as follows:

PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

0
1. The authority citation for part 1022 continues to read as follows:

    Authority: 5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C. 
11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910, 
14915, 14916, 16101, 16103.


0
2. Revise Sec.  1022.4(b) to read as follows:


Sec.  1022.4   Cost-of-living adjustments of civil monetary penalties.

* * * * *
    (b) The cost-of-living adjustment required by the statute results 
in the following adjustments to the civil monetary penalties within the 
jurisdiction of the Board:

                                            Table 1 to Paragraph (b)
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                                                                                     Adjusted        Adjusted
             U.S. code citation               Civil monetary penalty description  penalty amount  penalty amount
                                                                                       2019            2020
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                                          Rail Carrier Civil Penalties
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49 U.S.C. 11901(a).........................  Unless otherwise specified, maximum          $7,987          $8,128
                                              penalty for each knowing violation
                                              under this part, and for each day.

[[Page 840]]

 
49 U.S.C. 11901(b).........................  For each violation under Section                799             813
                                              11124(a)(2) or (b).
49 U.S.C. 11901(b).........................  For each day violation continues...              41              42
49 U.S.C. 11901(c).........................  Maximum penalty for each knowing              7,987           8,128
                                              violation under Sections 10901-
                                              10906.
49 U.S.C. 11901(d).........................  For each violation under Section            159-799         162-813
                                              11123 or 11124(a)(1).
49 U.S.C. 11901(d).........................  For each day violation continues...              80              81
49 U.S.C. 11901(e)(1), (4).................  For each violation under Sections               799             813
                                              11141-11145, for each day.
49 U.S.C. 11901(e)(2), (4).................  For each violation under Section                159             162
                                              11144(b)(1), for each day.
49 U.S.C. 11901(e)(3)-(4)..................  For each violation of reporting                 159             162
                                              requirements, for each day.
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                                     Motor and Water Carrier Civil Penalties
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49 U.S.C. 14901(a).........................  Minimum penalty for each violation            1,093           1,112
                                              and for each day.
49 U.S.C. 14901(a).........................  For each violation under Section             10,932          11,125
                                              13901 or 13902(c).
49 U.S.C. 14901(a).........................  For each violation related to                27,331          27,813
                                              transportation of passengers.
49 U.S.C. 14901(b).........................  For each violation of the hazardous   21,865-43,730   22,251-44,501
                                              waste rules under Section 3001 of
                                              the Solid Waste Disposal Act.
49 U.S.C. 14901(d)(1)......................  Minimum penalty for each violation            1,597           1,625
                                              of household good regulations, and
                                              for each day.
49 U.S.C. 14901(d)(2)......................  Minimum penalty for each instance            15,976          16,258
                                              of transportation of household
                                              goods if broker provides estimate
                                              without carrier agreement.
49 U.S.C. 14901(d)(3)......................  Minimum penalty for each instance            39,936          40,640
                                              of transportation of household
                                              goods without being registered.
49 U.S.C. 14901(e).........................  Minimum penalty for each violation            3,195           3,251
                                              of a transportation rule.
49 U.S.C. 14901(e).........................  Minimum penalty for each additional           7,987           8,128
                                              violation.
49 U.S.C. 14903(a).........................  Maximum penalty for undercharge or          159,750         162,568
                                              overcharge of tariff rate, for
                                              each violation.
49 U.S.C. 14904(a).........................  For first violation, rebates at                 319             325
                                              less than the rate in effect.
49 U.S.C. 14904(a).........................  For all subsequent violations......             400             407
49 U.S.C. 14904(b)(1)......................  Maximum penalty for first violation             799             813
                                              for undercharges by freight
                                              forwarders.
49 U.S.C. 14904(b)(1)......................  Maximum penalty for subsequent                3,195           3,251
                                              violations.
49 U.S.C. 14904(b)(2)......................  Maximum penalty for other first                 799             813
                                              violations under Section 13702.
49 U.S.C. 14904(b)(2)......................  Maximum penalty for subsequent                3,195           3,251
                                              violations.
49 U.S.C. 14905(a).........................  Maximum penalty for each knowing             15,976          16,258
                                              violation of Section 14103(a), and
                                              knowingly authorizing, consenting
                                              to, or permitting a violation of
                                              Section 14103(a) or (b).
49 U.S.C. 14906............................  Minimum penalty for first attempt             2,187           2,226
                                              to evade regulation.
49 U.S.C. 14906............................  Minimum amount for each subsequent            5,466           5,562
                                              attempt to evade regulation.
49 U.S.C. 14907............................  Maximum penalty for recordkeeping/            7,987           8,128
                                              reporting violations.
49 U.S.C. 14908(a)(2)......................  Maximum penalty for violation of              3,195           3,251
                                              Section 14908(a)(1)..
49 U.S.C. 14910............................  When another civil penalty is not               799             813
                                              specified under this part, for
                                              each violation, for each day.
49 U.S.C. 14915(a)(1)-(2)..................  Minimum penalty for holding a                12,695          12,919
                                              household goods shipment hostage,
                                              for each day.
49 U.S.C. 14916(c)(1)......................  Maximum penalty for each violation           10,932          11,125
                                              under Section 14916(a) by
                                              knowingly authorizing, consenting
                                              to, or permitting unlawful
                                              brokerage activities.
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                                        Pipeline Carrier Civil Penalties
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49 U.S.C. 16101(a).........................  Maximum penalty for violation of              7,987           8,128
                                              this part, for each day.
49 U.S.C. 16101(b)(1), (4).................  For each recordkeeping violation                799             813
                                              under Section 15722, each day.
49 U.S.C. 16101(b)(2), (4).................  For each inspection violation                   159             162
                                              liable under Section 15722, each
                                              day.
49 U.S.C. 16101(b)(3)-(4)..................  For each reporting violation under              159             162
                                              Section 15723, each day.
49 U.S.C. 16103(a).........................  Maximum penalty for improper                  1,597           1,625
                                              disclosure of information.
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[FR Doc. 2020-00089 Filed 1-7-20; 8:45 am]
 BILLING CODE 4915-01-P