[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Rules and Regulations]
[Pages 1464-1465]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00354]


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FEDERAL MARITIME COMMISSION

46 CFR Part 506

[Docket No. FMC-2024-0002]
RIN 3072-AC98


Inflation Adjustment of Civil Monetary Penalties

AGENCY: Federal Maritime Commission.

ACTION: Final rule.

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SUMMARY: The Federal Maritime Commission (Commission) is publishing 
this final rule to adjust for inflation the civil monetary penalties 
assessed or enforced by the Commission, 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 new civil 
penalties by January 15 each year.

DATES: This rule is effective January 15, 2024.

FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202) 
523-5725; Email: [email protected].

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. Public Law 114-74, section 
701. 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) for the month of October in the 
previous calendar year. On December 19, 2023, the Office of Management 
and Budget published guidance stating that the CPI-U multiplier for 
October 2023 is 1.03241.\1\ In order to complete the annual adjustment, 
the Commission must multiply the most recent civil penalty amounts in 
46 CFR part 506 by the multiplier, 1.03241.
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    \1\ Office of Management and Budget, M-24-07, Implementation of 
Penalty Inflation Adjustments for 2023, Pursuant to the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 
at 1 (Dec. 19, 2023) (M-23-05).
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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\ The 2015 Act 
requires that the Commission adjust its civil monetary penalties no 
later than January 15 of each year.
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    \2\ Id. at 3-4. Federal Civil Penalties Inflation Adjustment Act 
of 1990, Public Law 101-410, section 4(b)(2), 104 Stat. 890 
(codified at 28 U.S.C. 2461 note).
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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).

[[Page 1465]]

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 describing the impact of the rule 
on small entities or the head of the agency must certify that the rule 
will not have a significant economic impact on a substantial number of 
small entities. 5 U.S.C. 604-605. As indicated above, this final rule 
is not subject to the APA's notice and comment requirements, and the 
Commission is not required to either conduct a regulatory flexibility 
analysis or certify that the final rule would not have a significant 
economic impact on a substantial number of small entities.

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 
collection of information, as defined by 44 U.S.C. 3502(3) and 5 CFR 
1320.3(c).

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. The public 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, Claims, Penalties.

    For the reasons stated in the preamble, 46 CFR part 506 is amended 
as follows:

PART 506--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

0
1. The authority citation for part 506 continues to read as follows:

    Authority: 28 U.S.C. 2461.

0
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:

                                            Table 1 to Paragraph (d)
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                                                                           Maximum  penalty    Maximum  penalty
      United States Code citation             Civil monetary penalty        as  of  January     as  of  January
                                                   description                 15, 2023            15, 2024
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46 U.S.C. 42304........................  Adverse impact on U.S. carriers          $2,479,282          $2,559,636
                                          by foreign shipping practices.
46 U.S.C. 41107(a).....................  Knowing and Willful violation/               70,752              73,045
                                          Shipping Act of 1984, or
                                          Commission regulation or order.
46 U.S.C. 41107(a).....................  Violation of Shipping Act of                 14,149              14,608
                                          1984, Commission regulation or
                                          order, not knowing and willful.
46 U.S.C. 41108(b).....................  Operating in foreign commerce               141,506             146,092
                                          after tariff suspension.
46 U.S.C. 42104........................  Failure to provide required                  11,162              11,524
                                          reports, etc./Merchant Marine
                                          Act of 1920.
46 U.S.C. 42106........................  Adverse shipping conditions/              2,232,281           2,304,629
                                          Merchant Marine Act of 1920.
46 U.S.C. 42108........................  Operating after tariff or                   111,614             115,231
                                          service contract suspension/
                                          Merchant Marine Act of 1920.
46 U.S.C. 44102, 44104.................  Failure to establish financial               28,194              29,108
                                          responsibility for non-                        941                 971
                                          performance of transportation.
46 U.S.C. 44103, 44104.................  Failure to establish financial               28,194              29,108
                                          responsibility for death or                    941                 971
                                          injury.
31 U.S.C. 3802(a)(1)...................  Program Fraud Civil Remedies                 13,508              13,946
                                          Act/making false claim.
31 U.S.C. 3802(a)(2)...................  Program Fraud Civil Remedies                 13,508              13,946
                                          Act/giving false statement.
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    By the Commission.
David Eng,
Secretary.
[FR Doc. 2024-00354 Filed 1-9-24; 8:45 am]
BILLING CODE 6730-02-P