80 FR 30144 - Revisions to Denied Boarding Compensation, Domestic Baggage Liability Limits, and Civil Penalty Amounts
DEPARTMENT OF TRANSPORTATION
Office of the Secretary Federal Register Volume 80, Issue 101 (May 27, 2015)
Office of the Secretary
Federal Register Volume 80, Issue 101 (May 27, 2015)
| Page Range | 30144-30147 | |
| FR Document | 2015-12789 |
[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)] [Rules and Regulations] [Pages 30144-30147] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12789] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Office of the Secretary 14 CFR Parts 250, 254 and 383 [Docket DOT-OST-2015-0104] RIN 2105-AE39 Revisions to Denied Boarding Compensation, Domestic Baggage Liability Limits, and Civil Penalty Amounts AGENCY: Office of the Secretary (OST), Department of Transportation (DOT). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In accordance with existing regulations, this final rule raises the maximum denied boarding compensation (DBC) amounts that have been in effect since August 2011, raising the maximum DBC amounts from the current figures of $650/$1,300 to $675/$1,350. Also, in accordance with existing regulations, this final rule raises the minimum liability limit air carriers may impose for mishandled baggage in domestic air transportation, adjusting the minimum limit of liability from the current amount of $3,400 to $3,500. To account for inflation, this rule also raises the maximum civil penalties that can be assessed as a result of DOT aviation enforcement actions for violations of certain economic provisions of Title 49 of the U.S. Code from $2,500 to $2,750. DATES: This rule is effective on August 25, 2015. FOR FURTHER INFORMATION CONTACT: Clereece Kroha, Senior Attorney, Office of the General Counsel, Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590; 202-366-9041, clereece.kroha@dot.gov. SUPPLEMENTARY INFORMATION: I. Revision of Maximum Denied Boarding Compensation Amounts In its rule ``Enhancing Airline Passenger Protections'' (76 FR 23110, Apr. 25, 2011), the Department raised the limits on denied boarding compensation (DBC) due to passengers from the previous amounts of $400/$800 to the current amounts of $650/$1,300. The rule also requires that these maximum DBC amounts be adjusted to reflect changes in the Consumer Price Index for All Urban Consumers (CPI-U). Under 14 CFR 250.5(e), the review of denied boarding compensation was to take place every 2 years, with the first such review occurring in July 2012, to coincide with our review of the baggage liability amount. Section 250.5(e) prescribes the use of a specific formula to calculate the revised maximum DBC amounts when making these periodic adjustments. The formula is below. Current DBC limit in section 250.5(a)(2) multiplied by (a/b) rounded to the nearest $25 where: a = July CPI-U of year of current adjustment b = the CPI-U figure in August 2011 when the inflation adjustment provision was added to Part 250 Section 250.5(e) specifies that the DBC limit in section 250.5(a)(3) shall be twice the revised limit for section 250.5(a)(2). We reviewed the compensation amounts in 2012 and found that according to the formula set out in section 250.5(e), no change in the DBC amounts was called for. However, the 2014-2015 review indicated that an inflation adjustment is required. Applying the formula to consumer price index changes occurring between August 2011 (the basis month required by the formula) and July 2014,\1\ the appropriate inflation adjustment is $650 x 238.250/226.545 [$650 x 1.0517], which yields $683.60. (The base amount of $650 in the formula was the maximum denied boarding compensation in section 250.5(a)(2) \2\ at the time that this biennial indexing provision was added to the rule, 238.250 was the CPI-U for July 2014, and 226.545 was the CPI-U for August 2011.) Section 250.5(e) requires us to round the adjustment to the nearest $25, or to $675 in this case. Section 250.5(a)(3) provides that for passengers who are not rerouted to reach their destination within two hours the maximum DBC amount is twice the [[Page 30145]] amount provided by section 250.5(a)(2); therefore, under the formula adjustment, this amount is twice $675, or $1,350. --------------------------------------------------------------------------- \1\ The next review of the denied boarding compensation amounts will occur after the CPI-U for July 2016 is released. \2\ 14 CFR 250.5(a)(2) provides that the maximum amount of DBC is $650 for passengers who are denied boarding involuntarily on a domestic flight by a carrier who offers alternate transportation that is planned to arrive at the passenger's first stopover or final destination more than one hour but less than two hours after the planned arrival time of the passenger's original flight. 14 CFR 250.5(a)(3) provides that the maximum amount of DBC is $1,300 for passengers who are denied boarding involuntarily on a domestic flight by a carrier who offers alternate transportation that is planned to arrive at the passenger's first stopover or final destination more than two hours after the planned arrival time of the passenger's original flight. --------------------------------------------------------------------------- In this final rule, we are also correcting an editorial error in section 250.5(e). When issuing the 2011 final rule prescribing the formula for inflation adjustment for DBC limits, we inadvertently referred only to section 250.5(a) for involuntary denied boarding on domestic flights and omitted section 250.5(b) \3\ for involuntary denied boarding on international flights outbound from U.S. airports. We intend to apply the periodic inflation adjustment to both sections because the inflation adjustment is applicable to ``DBC limits'' without distinguishing domestic and international flights as noted by the Department in the preamble to the 2011 final rule. We are correcting this error by adding another paragraph to this rule, section 250.5(e)(3), to provide that the DBC inflation adjustment also applies to section 250.5(b) regarding passengers involuntarily denied boarding on an international flight outbound from a U.S. airport. --------------------------------------------------------------------------- \3\ 14 CFR 250.5(b)(2) addresses DBC on outbound international flights. The provision is identical to section 250.5(a)(2) [see footnote 2] except that the threshold for alternate transportation at which the DBC limit doubles from $650 to $1,300 is four hours rather than two hours. --------------------------------------------------------------------------- II. Revision of Minimum Domestic Baggage Liability Limit Part 254 of the Department's rules (14 CFR part 254) establishes minimum baggage liability limits that air carriers may apply to domestic air service. Section 254.6 of this domestic baggage liability limit rule requires the Department to review every two years the minimum limit of liability prescribed in Part 254 in light of changes in the CPI-U and to revise the limit of liability to reflect changes in that index as of July of each review year. Section 254.6 prescribes the use of a specific formula to calculate the revised minimum liability amount when making these periodic adjustments. The formula is below. $2500 x (a/b) rounded to the nearest $100 where: a = July CPI-U of year of current adjustment b = the CPI-U figure in December 1999 when the inflation adjustment provision was added to Part 254. The application of the formula during the 2012 review of the minimum domestic baggage liability limit raised the amount from $3,300 to the current amount of $3,400. The 2014-2015 review indicates that another inflation adjustment is required. Applying the formula using the consumer price index changes occurring between December 1999 (the basis month required by the formula) and July 2014,\4\ the appropriate inflation adjustment is $2,500 x 238.250/168.30 [$2,500 x 1.4156], which yields $3,539.07. (The base amount of $2,500 in the formula was the minimum liability limit in Part 254 at the time that this biennial indexing provision was added to the rule, 238.250 was the CPI-U for July 2014, and 168.30 was the CPI-U for December 1999.). Section 254.6 requires us to round the adjustment to the nearest $100, or to $3,500 in this case. --------------------------------------------------------------------------- \4\ Similar to the DBC adjustment, the next review of the domestic baggage liability limit will occur after the CPI-U for July 2016 is released. --------------------------------------------------------------------------- III. Revision of Maximum Civil Penalties The maximum civil penalty amounts for violations of aviation economic and consumer rules and statutes administered by the Department appear in 14 CFR part 383. The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410) provides a detailed formula on how Federal monetary civil penalties should be adjusted for inflation. The Debt Collection Improvement Act of 1996 (Pub. L. 104-134, sec. 31001) requires each agency to adjust monetary civil penalties within its jurisdiction at least once every four years. It also limits the initial adjustment to a civil penalty pursuant to the 1996 Act to no more than 10 percent of such penalty. The adjustment is based on changes to the CPI-U from June of the year when these civil penalties were last adjusted to June of the year prior to the current adjustment. Notwithstanding the formula provided by the 1990 Act, the civil penalty amounts in Part 383 were set by Vision 100--Century of Aviation Reauthorization Act (Pub. L. 108-176; 117 Stat. 2490, December 12, 2003). Subsequently, these civil penalty amounts were reviewed by the Department in 2008. In a final rule issued on November 21, 2008, the Department adjusted three of the five civil penalties under Part 383: Raising the general civil penalty from $25,000 to $27,500; raising the general civil penalty for small businesses or individuals from $10,000 to $11,000; and raising the civil penalty for violations of section 41719 and rules and orders issued under that section from $5,000 to $5,500. According to the formula provided by the 1990 Act, the comparison between the CPI-U index for June 2008 and June 2014 results in an inflation factor of 1.089. This current review determines that none of the three civil penalties that were raised in 2008 are due for another increase. The current review also determines that only one of the two civil penalties that were set by Vision-100 in 2003, and were not raised in 2008, is due for an increase. The comparison between the CPI-U index for June 2003 (the year when these two civil penalties were last set by Vision-100) and June 2014 results in an inflation factor of 1.297. As such, the current $2,500 maximum civil penalty amount is raised to $2,750 for violations of section 41712 or consumer protection rules or orders by small businesses and individuals ($2,500 multiplied by the inflation factor of 1.297 which results in a raw increase of $742.50, rounded to the nearest $1,000 then capped by the 10 percent increase limitation for the initial adjustment under the 1990 Act.) IV. Regulatory Analyses and Notices The Administrative Procedure Act (APA) (5 U.S.C. 553) contains a ``good cause'' exemption which allows agencies to dispense with notice and comment if those procedures 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 a notice of proposed rulemaking and public comment for the inflation adjustments herein as the application of this rule does not involve any agency discretion. Those adjustments are simply a ministerial inflation update based on the terms and formulas set by 14 CFR 250.5, as most recently amended in 76 FR 23110 (April 25, 2011), and by 14 CFR 254.6, as most recently amended in 73 FR 70591 (November 21, 2008). Those formulas were subject to notice and comment in the rulemaking proceedings during which they were added to these baggage liability and oversales rules. Similarly, the clarification of the applicability of the inflation adjustment provision in section 250.5(e) to international transportation simply corrects an incomplete internal citation in the rule text where the Department's intent as expressed in the preamble to the 2011 rule was clear. The adjustment to a certain civil penalty is also a ministerial action required by the Federal Civil Penalties Inflation Adjustment Act of 1990 as amended by the Debt Collection Improvement Act of 1996, and it is based on a statutory formula. Accordingly, we find that prior notice and comment are unnecessary, and we are issuing these revisions to Parts 250, 254, and 383 as a final rule. [[Page 30146]] This final rule will become effective with respect to transportation taking place on August 25, 2015. This means that any compensation due to passengers in instances of involuntary denied boarding, or any compensation due to domestic passengers because of loss, delay or damage to baggage, with respect to transportation taking place on or after the effective date (as opposed to tickets sold on or after the effective date) will be covered by this final rule. All notices to passengers required by the rules (Part 250 and Part 254) as they pertain to the new maximum DBC amounts and domestic baggage liability limit must be updated by the effective date of this final rule. The increased maximum civil penalty amount will become applicable to all violations that occur on or after the effective date of this final rule. V. Executive Order 12866 This final rule has been evaluated in accordance with existing policies and procedures and is considered not significant under both Executive Order 12866 and DOT's Regulatory Policies and Procedures; therefore, the rule has not been reviewed by the Office of Management and Budget (OMB) under Executive Order 12866. Denied Boarding Compensation The revision of 14 CFR part 250 provides for an inflation adjustment to the maximum DBC amounts that air carriers and foreign air carriers are required by 14 CFR 250.8 to tender to passengers who are involuntarily denied boarding. The provisions are required by current regulatory language, and require no exercise of discretion or interpretation. This rule will pose minor additional costs to airlines only in those instances in which carriers oversold a flight, there was not a sufficient number of passengers who volunteered to give up their seats, and the carriers failed to arrange alternative transportation for passengers denied boarding that is scheduled to transport them to the next destination within a certain number of hours. The maximum potential impact in those instances is $25-$50 per affected passenger, depending on the delay in getting the passenger to the next destination and whether the flight is a domestic flight or outbound international flight. Reports filed each quarter with the Department by U.S. airlines that each account for at least one percent of total domestic scheduled- service passenger revenues show that, in 2013, approximately 0.0092 percent (.000092) of passengers transported on their scheduled domestic and outbound international flights were involuntarily denied boarding. The total number of domestic and international outbound scheduled passenger enplanements for those carriers in 2013 was 620.5 million. This means that approximately 57,000 passengers experienced involuntarily denied boarding last year on domestic or international outbound scheduled flights operated by these U.S. carriers (.000092 multiplied by 620.5 million). As the Department does not have a rule requiring foreign air carriers to report the number of passengers on their U.S.-outbound international flights who were involuntarily denied boarding, we do not have statistics on that number. However, the total 2013 annual enplanements for international outbound flights operated by foreign carriers is 41.7 million. Using the same rate of involuntarily denied boarding for U.S. carriers (0.0092 percent), the estimated number of passengers who were involuntarily denied boarding from foreign carrier-operated outbound international flights for 2013 is approximately 3,800. Therefore, we expect that the increase in the maximum DBC amounts will cost the affected carriers (both U.S. and foreign air carriers) no more than $3.04 million a year based on 60,800 total affected passengers (57,000 plus 3,800) multiplied by the maximum increase of $50 per passenger. The actual cost will be significantly less than that, since many passengers who are involuntarily denied boarding qualify for less than the maximum amount of DBC and their compensation will not be affected by this increase in the limits. There would be a benefit to passengers for the same amount. Domestic Baggage Liability The revision of 14 CFR 254.4 provides for an inflation adjustment to the amount of the minimum limit on baggage liability that air carriers may assert in cases of mishandled baggage, as required by section 254.6. The provisions are also required by current regulatory language, without interpretation. This rule will pose minor additional costs to airlines only in those instances in which carriers lose, damage or delay baggage and where the amount of the passenger's claim in those instances exceeds the prior minimum liability limit of $3,400. The maximum potential impact in those instances is $100 on each such claim. Reports filed each month with the Department by U.S. airlines that each account for at least one percent of total domestic scheduled-service passenger revenues show that, in 2013, approximately 0.3 percent (.003) of domestic passengers of these carriers experienced a mishandled bag. The total number of domestic scheduled passenger enplanements for these carriers in 2013 was 590.8 million. This means that approximately 1.77 million domestic scheduled passengers experienced a mishandled bag last year (.003 multiplied by 590.8). However, the vast majority of the instances of mishandled baggage do not result in a claim in an amount that is affected by the liability limit in this rule. Based on the information provided to us in 2013 by several carriers, we believe a little more than one half percent (0.0058) of the domestic passengers who experience a mishandled bag would benefit from an increase in the minimum limit on baggage liability, i.e., about 10,266 passengers per year. Therefore, we expect that there would be a cost to the airline industry of a little over $1 million each year--the number of domestic passengers who have a baggage claim that exceeds the prior minimum liability limit of $3,400 (10,266 passengers) multiplied by the maximum potential impact in those instances ($100). There would also be a benefit to passengers for the same amount. Since the rule is limited to domestic transportation, it does not affect foreign air carriers. Civil Penalties The increase of the maximum civil penalty will impact entities and individuals that are found to be in violation of section 41712 and consumer protection rules and orders. There is no direct cost to any regulated entity or individual unless the entity or individual is found to have committed a violation. VI. Regulatory Flexibility Act The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires an assessment of the impact of proposed and final rules on small entities unless the agency certifies that the proposed regulation will not have a significant economic impact on a substantial number of small entities. An air carrier or a foreign air carrier is a small business if it provides air transportation only with small aircraft (i.e., aircraft with up to 60 seats/18,000 pound payload capacity). See 14 CFR 399.73. The revisions of the DBC and baggage liability amounts principally affect flight segments operated with large aircraft. As a result, many operations of small entities, such as air taxis and many commuter air carriers, are not covered by the rule. Moreover, any additional costs for small entities associated with the rule would be [[Page 30147]] minimal and, in the case of baggage liability, may be covered by insurance. The revision of the civil penalty amount will raise potential penalties for individuals and small businesses with regard to violations of section 41712 or consumer protection rules and orders. Because the maximum civil penalty amount is only increased by $250 from the current amount, the aggregate economic impact of this rulemaking on small entities should be minimal and would only be borne by those entities found in violation of the regulations. Accordingly, I hereby certify that this action will not have a significant economic impact on a substantial number of small entities. VII. Paperwork Reduction Act This final rule imposes no new reporting or record keeping requirements necessitating clearance by OMB. List of Subjects 14 CFR Part 250 Air carriers, Consumer protection, Reporting and recordkeeping requirements. 14 CFR Part 254 Air carriers, Administrative practice and procedure, Consumer protection, Transportation. 14 CFR Part 383 Administrative practice and procedure, Penalties. Accordingly, the Department of Transportation amends 14 CFR parts 250, 254, and 383 as follows: PART 250--OVERSALES 0 1. The authority citation for part 250 continues to read as follows: Authority: 49 U.S.C. 329 and chapters 41102, 41301, 41708, and 41712. 0 2. Section 250.5 is amended by: 0 a. Removing ``$650'' wherever it appears and adding ``$675'' in its place. 0 b. Removing ``$1,300'' wherever it appears and adding ``$1,350'' in its place. 0 c. Adding a new paragraph (e)(3) to read as follows: Sec. 250.5 Amount of denied boarding compensation for passengers denied boarding involuntarily. * * * * * (e) * * * (3) The Denied Boarding Compensation limit in paragraph (b)(2) shall be the same as the revised limit for paragraph (a)(2) of this section, and the Denied Boarding Compensation limit in paragraph (b)(3) shall be twice the revised limit for paragraph (a)(2) of this section. * * * * * Sec. 250.9 [Amended] 0 3. Section 250.9 is amended by removing ``$650'' wherever it appears and adding ``$675'' in its place and by removing ``$1,300'' wherever it appears and adding ``$1,350'' in its place. PART 254--DOMESTIC BAGGAGE LIABILITY 0 4. The authority citation for part 254 continues to read as follows: Authority: 49 U.S.C. 40113, 41501, 41504, 41510, 41702 and 41707. Sec. 254.4 [Amended] 0 5. Section 254.4 is amended by removing ``$3,400'' and adding ``$3,500'' in its place. Sec. 254.5 [Amended] 0 6. Section 254.5(b) is amended by removing ``$3,400'' and adding ``$3,500'' in its place. PART 383--CIVIL PENALTIES 0 8. The authority citation for part 383 continues to read as follows: Authority: Sec. 503, Pub. L. 108-176, 117 Stat. 2490; Pub. L. 101-410, 104 Stat. 890; Pub. L. 104-134 Sec. 31001. Sec. 383.2 [Amended] 0 9. Section 383.2(b)(3) is amended by removing ``$2,500'' and adding ``$2,750'' in its place. Issued in Washington, DC, on May 18, 2015 pursuant to authority delegated in 49 CFR 1.27(c) and (n). Kathryn B. Thomson, General Counsel. [FR Doc. 2015-12789 Filed 5-26-15; 8:45 am] BILLING CODE 4910-9X-P
![30144 Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Rules and Regulations
(m) Alternative Methods of Compliance Issued in Burlington, Massachusetts, on maximum DBC amounts be adjusted to
(AMOCs) April 30, 2015. reflect changes in the Consumer Price
The Manager, Engine Certification Office, Colleen M. D’Alessandro, Index for All Urban Consumers (CPI–U).
FAA, may approve AMOCs for this AD. Use Assistant Directorate Manager, Engine & Under 14 CFR 250.5(e), the review of
the procedures found in 14 CFR 39.19 to Propeller Directorate, Aircraft Certification denied boarding compensation was to
make your request. You may email your Service. take place every 2 years, with the first
request to: ANE-AD-AMOC@faa.gov. [FR Doc. 2015–12068 Filed 5–26–15; 8:45 am] such review occurring in July 2012, to
BILLING CODE 4910–13–P coincide with our review of the baggage
(n) Related Information liability amount. Section 250.5(e)
(1) For more information about this AD, prescribes the use of a specific formula
contact Martin Adler, Aerospace Engineer, DEPARTMENT OF TRANSPORTATION to calculate the revised maximum DBC
Engine Certification Office, FAA, Engine & amounts when making these periodic
Propeller Directorate, 12 New England Office of the Secretary adjustments. The formula is below.
Executive Park, Burlington, MA 01803; Current DBC limit in section 250.5(a)(2)
phone: 781–238–7157; fax: 781–238–7199; 14 CFR Parts 250, 254 and 383 multiplied by (a/b) rounded to the
email: martin.adler@faa.gov. [Docket DOT–OST–2015–0104] nearest $25
(2) IAE NMSB No. V2500–ENG–72–0638, where:
dated April 11, 2013; IAE NMSB No. V2500– RIN 2105–AE39
a = July CPI–U of year of current adjustment
ENG–72–0637, dated May 2, 2013; IAE b = the CPI–U figure in August 2011 when
NMSB No. V2500–ENG–72–0625, dated Revisions to Denied Boarding the inflation adjustment provision was
October 8, 2014; IAE EM Task 72–41–11– Compensation, Domestic Baggage added to Part 250
200–001; and IAE EM Task 72–41–11–110– Liability Limits, and Civil Penalty
Amounts Section 250.5(e) specifies that the DBC
001, which are not incorporated by reference limit in section 250.5(a)(3) shall be
in this AD, can be obtained from IAE, using AGENCY: Office of the Secretary (OST), twice the revised limit for section
the contact information in paragraph (o)(3) of Department of Transportation (DOT). 250.5(a)(2).
this AD. IAE NMSB No. V2500–ENG–72– We reviewed the compensation
ACTION: Final rule.
0638, dated April 11, 2013 provides guidance amounts in 2012 and found that
on performing the USI. IAE NMSB No. SUMMARY: In accordance with existing according to the formula set out in
V2500–ENG–72–0637 and IAE EM Task 72– regulations, this final rule raises the section 250.5(e), no change in the DBC
41–11–200–001 provide guidance on maximum denied boarding amounts was called for. However, the
performing the FPI. Guidance on performing compensation (DBC) amounts that have 2014–2015 review indicated that an
the ECI can be found in IAE NMSB No. inflation adjustment is required.
been in effect since August 2011, raising
V2500–ENG–72–0625. IAE Engine Manual Applying the formula to consumer price
the maximum DBC amounts from the
Task 72–41–11–110–001 provides guidance index changes occurring between
current figures of $650/$1,300 to $675/
on cleaning the HPC stage 3 to 8 drum. August 2011 (the basis month required
$1,350. Also, in accordance with
(o) Material Incorporated by Reference existing regulations, this final rule raises by the formula) and July 2014,1 the
(1) The Director of the Federal Register the minimum liability limit air carriers appropriate inflation adjustment is $650
approved the incorporation by reference may impose for mishandled baggage in × 238.250/226.545 [$650 × 1.0517],
(IBR) of the service information listed in this domestic air transportation, adjusting which yields $683.60. (The base amount
paragraph under 5 U.S.C. 552(a) and 1 CFR the minimum limit of liability from the of $650 in the formula was the
part 51. current amount of $3,400 to $3,500. To maximum denied boarding
(2) You must use this service information account for inflation, this rule also compensation in section 250.5(a)(2) 2 at
as applicable to do the actions required by raises the maximum civil penalties that the time that this biennial indexing
this AD, unless the AD specifies otherwise. can be assessed as a result of DOT provision was added to the rule,
(i) International Aero Engines Alert Non- aviation enforcement actions for 238.250 was the CPI–U for July 2014,
Modification Service Bulletin No. V2500– violations of certain economic and 226.545 was the CPI–U for August
ENG–72–A0615, Revision 6, dated September provisions of Title 49 of the U.S. Code 2011.) Section 250.5(e) requires us to
4, 2014. from $2,500 to $2,750. round the adjustment to the nearest $25,
(ii) Reserved. DATES: This rule is effective on August
or to $675 in this case. Section
(3) For IAE service information identified 25, 2015. 250.5(a)(3) provides that for passengers
in this AD, contact International Aero who are not rerouted to reach their
FOR FURTHER INFORMATION CONTACT:
Engines AG, 400 Main Street, East Hartford, destination within two hours the
Clereece Kroha, Senior Attorney, Office maximum DBC amount is twice the
CT 06118; phone: 860–368–3700; fax: 860– of the General Counsel, Department of
368–4600; email: iaeinfo@iaev2500.com;
Transportation, 1200 New Jersey Ave. 1 The next review of the denied boarding
Internet: https://www.iaeworld.com.
SE., Washington, DC 20590; 202–366– compensation amounts will occur after the CPI–U
(4) You may view this service information
9041, clereece.kroha@dot.gov. for July 2016 is released.
at the FAA, Engine & Propeller Directorate, 2 14 CFR 250.5(a)(2) provides that the maximum
12 New England Executive Park, Burlington, SUPPLEMENTARY INFORMATION:
amount of DBC is $650 for passengers who are
MA. For information on the availability of I. Revision of Maximum Denied denied boarding involuntarily on a domestic flight
this material at the FAA, call 781–238–7125. by a carrier who offers alternate transportation that
Boarding Compensation Amounts is planned to arrive at the passenger’s first stopover
(5) You may view this service information
In its rule ‘‘Enhancing Airline or final destination more than one hour but less
at the National Archives and Records
mstockstill on DSK4VPTVN1PROD with RULES
than two hours after the planned arrival time of the
Administration (NARA). For information on Passenger Protections’’ (76 FR 23110, passenger’s original flight. 14 CFR 250.5(a)(3)
the availability of this material at NARA, call Apr. 25, 2011), the Department raised provides that the maximum amount of DBC is
202–741–6030, or go to: http:// the limits on denied boarding $1,300 for passengers who are denied boarding
compensation (DBC) due to passengers involuntarily on a domestic flight by a carrier who
www.archives.gov/federal-register/cfr/ibr- offers alternate transportation that is planned to
locations.html. from the previous amounts of $400/$800 arrive at the passenger’s first stopover or final
to the current amounts of $650/$1,300. destination more than two hours after the planned
The rule also requires that these arrival time of the passenger’s original flight.
VerDate Sep<11>2014 17:50 May 26, 2015 Jkt 235001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\27MYR1.SGM 27MYR1](https://thefederalregister.org/doc/80_FR_30245/page/1.svg)
![Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Rules and Regulations 30145
amount provided by section 250.5(a)(2); formula using the consumer price index 1.089. This current review determines
therefore, under the formula adjustment, changes occurring between December that none of the three civil penalties that
this amount is twice $675, or $1,350. 1999 (the basis month required by the were raised in 2008 are due for another
In this final rule, we are also formula) and July 2014,4 the appropriate increase.
correcting an editorial error in section inflation adjustment is $2,500 × The current review also determines
250.5(e). When issuing the 2011 final 238.250/168.30 [$2,500 × 1.4156], which that only one of the two civil penalties
rule prescribing the formula for inflation yields $3,539.07. (The base amount of that were set by Vision-100 in 2003, and
adjustment for DBC limits, we $2,500 in the formula was the minimum were not raised in 2008, is due for an
inadvertently referred only to section liability limit in Part 254 at the time that increase. The comparison between the
250.5(a) for involuntary denied boarding this biennial indexing provision was CPI–U index for June 2003 (the year
on domestic flights and omitted section added to the rule, 238.250 was the CPI– when these two civil penalties were last
250.5(b) 3 for involuntary denied U for July 2014, and 168.30 was the set by Vision-100) and June 2014 results
boarding on international flights CPI–U for December 1999.). Section in an inflation factor of 1.297. As such,
outbound from U.S. airports. We intend 254.6 requires us to round the the current $2,500 maximum civil
to apply the periodic inflation adjustment to the nearest $100, or to penalty amount is raised to $2,750 for
adjustment to both sections because the $3,500 in this case. violations of section 41712 or consumer
inflation adjustment is applicable to protection rules or orders by small
‘‘DBC limits’’ without distinguishing III. Revision of Maximum Civil businesses and individuals ($2,500
domestic and international flights as Penalties multiplied by the inflation factor of
noted by the Department in the The maximum civil penalty amounts 1.297 which results in a raw increase of
preamble to the 2011 final rule. We are for violations of aviation economic and $742.50, rounded to the nearest $1,000
correcting this error by adding another consumer rules and statutes then capped by the 10 percent increase
paragraph to this rule, section administered by the Department appear limitation for the initial adjustment
250.5(e)(3), to provide that the DBC in 14 CFR part 383. The Federal Civil under the 1990 Act.)
inflation adjustment also applies to Penalties Inflation Adjustment Act of IV. Regulatory Analyses and Notices
section 250.5(b) regarding passengers 1990 (Pub. L. 101–410) provides a
involuntarily denied boarding on an detailed formula on how Federal The Administrative Procedure Act
international flight outbound from a monetary civil penalties should be (APA) (5 U.S.C. 553) contains a ‘‘good
U.S. airport. adjusted for inflation. The Debt cause’’ exemption which allows
Collection Improvement Act of 1996 agencies to dispense with notice and
II. Revision of Minimum Domestic comment if those procedures are
Baggage Liability Limit (Pub. L. 104–134, sec. 31001) requires
each agency to adjust monetary civil impracticable, unnecessary or contrary
Part 254 of the Department’s rules (14 penalties within its jurisdiction at least to the public interest. We have
CFR part 254) establishes minimum once every four years. It also limits the determined that under 5 U.S.C. 553
baggage liability limits that air carriers initial adjustment to a civil penalty (b)(3)(B) good cause exists for
may apply to domestic air service. pursuant to the 1996 Act to no more dispensing with a notice of proposed
Section 254.6 of this domestic baggage than 10 percent of such penalty. The rulemaking and public comment for the
liability limit rule requires the adjustment is based on changes to the inflation adjustments herein as the
Department to review every two years CPI–U from June of the year when these application of this rule does not involve
the minimum limit of liability civil penalties were last adjusted to June any agency discretion. Those
prescribed in Part 254 in light of of the year prior to the current adjustments are simply a ministerial
changes in the CPI–U and to revise the adjustment. inflation update based on the terms and
limit of liability to reflect changes in Notwithstanding the formula formulas set by 14 CFR 250.5, as most
that index as of July of each review year. provided by the 1990 Act, the civil recently amended in 76 FR 23110 (April
Section 254.6 prescribes the use of a penalty amounts in Part 383 were set by 25, 2011), and by 14 CFR 254.6, as most
specific formula to calculate the revised Vision 100—Century of Aviation recently amended in 73 FR 70591
minimum liability amount when Reauthorization Act (Pub. L. 108–176; (November 21, 2008). Those formulas
making these periodic adjustments. The 117 Stat. 2490, December 12, 2003). were subject to notice and comment in
formula is below. Subsequently, these civil penalty the rulemaking proceedings during
$2500 × (a/b) rounded to the nearest amounts were reviewed by the which they were added to these baggage
$100 Department in 2008. In a final rule liability and oversales rules. Similarly,
where: issued on November 21, 2008, the the clarification of the applicability of
a = July CPI–U of year of current adjustment Department adjusted three of the five the inflation adjustment provision in
b = the CPI–U figure in December 1999 when
civil penalties under Part 383: Raising section 250.5(e) to international
the inflation adjustment provision was transportation simply corrects an
added to Part 254. the general civil penalty from $25,000 to
$27,500; raising the general civil penalty incomplete internal citation in the rule
The application of the formula during text where the Department’s intent as
for small businesses or individuals from
the 2012 review of the minimum expressed in the preamble to the 2011
$10,000 to $11,000; and raising the civil
domestic baggage liability limit raised rule was clear. The adjustment to a
penalty for violations of section 41719
the amount from $3,300 to the current certain civil penalty is also a ministerial
and rules and orders issued under that
amount of $3,400. The 2014–2015 action required by the Federal Civil
section from $5,000 to $5,500.
review indicates that another inflation Penalties Inflation Adjustment Act of
According to the formula provided by
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adjustment is required. Applying the 1990 as amended by the Debt Collection
the 1990 Act, the comparison between
Improvement Act of 1996, and it is
the CPI–U index for June 2008 and June
3 14 CFR 250.5(b)(2) addresses DBC on outbound based on a statutory formula.
international flights. The provision is identical to 2014 results in an inflation factor of
Accordingly, we find that prior notice
section 250.5(a)(2) [see footnote 2] except that the
threshold for alternate transportation at which the 4 Similar to the DBC adjustment, the next review and comment are unnecessary, and we
DBC limit doubles from $650 to $1,300 is four hours of the domestic baggage liability limit will occur are issuing these revisions to Parts 250,
rather than two hours. after the CPI–U for July 2016 is released. 254, and 383 as a final rule.
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![Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Rules and Regulations 30147
minimal and, in the case of baggage paragraph (b)(3) shall be twice the SUMMARY: Currently, an application for
liability, may be covered by insurance. revised limit for paragraph (a)(2) of this a license or experimental permit, or for
The revision of the civil penalty section. a safety approval must be submitted to
amount will raise potential penalties for * * * * * the FAA in paper form. This rule will
individuals and small businesses with make the application process more
regard to violations of section 41712 or § 250.9 [Amended] flexible and efficient by providing
consumer protection rules and orders. ■ 3. Section 250.9 is amended by applicants with an option to submit
Because the maximum civil penalty removing ‘‘$650’’ wherever it appears these applications to the FAA
amount is only increased by $250 from and adding ‘‘$675’’ in its place and by electronically (either via email or on an
the current amount, the aggregate removing ‘‘$1,300’’ wherever it appears electronic storage device) rather than
economic impact of this rulemaking on and adding ‘‘$1,350’’ in its place. submitting a paper application.
small entities should be minimal and DATES: Effective July 27, 2015.
would only be borne by those entities PART 254—DOMESTIC BAGGAGE Submit comments on or before June
found in violation of the regulations. LIABILITY 26, 2015. If we receive an adverse
Accordingly, I hereby certify that this comment or notice of intent to file an
action will not have a significant ■ 4. The authority citation for part 254 adverse comment, we will advise the
economic impact on a substantial continues to read as follows: public by publishing a document in the
number of small entities. Authority: 49 U.S.C. 40113, 41501, 41504, Federal Register before the effective
41510, 41702 and 41707. date of the final rule. This document
VII. Paperwork Reduction Act
may withdraw the direct final rule in
This final rule imposes no new § 254.4 [Amended]
whole or in part.
reporting or record keeping ■ 5. Section 254.4 is amended by ADDRESSES: You may send comments
requirements necessitating clearance by removing ‘‘$3,400’’ and adding ‘‘$3,500’’ identified by docket number FAA–
OMB. in its place. 2015–1745 using any of the following
List of Subjects § 254.5 [Amended] methods:
• Federal eRulemaking Portal: Go to
14 CFR Part 250 ■ 6. Section 254.5(b) is amended by http://www.regulations.gov and follow
Air carriers, Consumer protection, removing ‘‘$3,400’’ and adding ‘‘$3,500’’ the online instructions for sending your
Reporting and recordkeeping in its place. comments electronically.
requirements. • Mail: Send comments to Docket
PART 383—CIVIL PENALTIES Operations, M–30; U.S. Department of
14 CFR Part 254 Transportation (DOT), 1200 New Jersey
■ 8. The authority citation for part 383
Air carriers, Administrative practice Avenue SE., Room W12–140, West
continues to read as follows:
and procedure, Consumer protection, Building Ground Floor, Washington, DC
Transportation. Authority: Sec. 503, Pub. L. 108–176, 117 20590–0001.
Stat. 2490; Pub. L. 101–410, 104 Stat. 890; • Hand Delivery or Courier: Take
14 CFR Part 383 Pub. L. 104–134 § 31001.
comments to Docket Operations in
Administrative practice and § 383.2 [Amended] Room W12–140 of the West Building
procedure, Penalties. Ground Floor at 1200 New Jersey
■ 9. Section 383.2(b)(3) is amended by
Accordingly, the Department of Avenue SE., Washington, DC, between 9
removing ‘‘$2,500’’ and adding ‘‘$2,750’’
Transportation amends 14 CFR parts a.m. and 5 p.m., Monday through
in its place.
250, 254, and 383 as follows: Friday, except Federal holidays.
Issued in Washington, DC, on May 18, • Fax: Fax comments to Docket
PART 250—OVERSALES 2015 pursuant to authority delegated in 49 Operations at 202–493–2251.
CFR 1.27(c) and (n). Privacy: In accordance with 5 U.S.C.
■ 1. The authority citation for part 250 Kathryn B. Thomson, 553(c), DOT solicits comments from the
continues to read as follows: General Counsel. public to better inform its rulemaking
Authority: 49 U.S.C. 329 and chapters [FR Doc. 2015–12789 Filed 5–26–15; 8:45 am] process. DOT posts these comments,
41102, 41301, 41708, and 41712. BILLING CODE 4910–9X–P without edit, including any personal
information the commenter provides, to
■ 2. Section 250.5 is amended by:
www.regulations.gov, as described in
■ a. Removing ‘‘$650’’ wherever it DEPARTMENT OF TRANSPORTATION the system of records notice (DOT/ALL–
appears and adding ‘‘$675’’ in its place.
14 FDMS), which can be reviewed at
■ b. Removing ‘‘$1,300’’ wherever it Federal Aviation Administration www.dot.gov/privacy.
appears and adding ‘‘$1,350’’ in its Docket: Background documents or
place. 14 CFR Parts 401, 413 and 414 comments received may be read at
■ c. Adding a new paragraph (e)(3) to
http://www.regulations.gov at any time.
read as follows: [Docket No.: FAA–2015–1745; Amdt. No(s).
413–11 and 414–3] Follow the online instructions for
§ 250.5 Amount of denied boarding accessing the docket or Docket
compensation for passengers denied RIN 2120–AK58 Operations in Room W12–140 of the
boarding involuntarily. West Building Ground Floor at 1200
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* * * * * Electronic Applications for Licenses, New Jersey Avenue SE., Washington,
(e) * * * Permits, and Safety Approvals DC, between 9 a.m. and 5 p.m., Monday
(3) The Denied Boarding AGENCY: Federal Aviation through Friday, except Federal holidays.
Compensation limit in paragraph (b)(2) Administration (FAA), DOT. FOR FURTHER INFORMATION CONTACT: For
shall be the same as the revised limit for technical questions concerning this
ACTION: Direct final rule; request for
paragraph (a)(2) of this section, and the action, contact Shirley McBride, Office
comments.
Denied Boarding Compensation limit in of Commercial Space Transportation,
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Document Created: 2015-12-15 15:36:17
Document Modified: 2015-12-15 15:36:17
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective on August 25, 2015. | |
| Contact | Clereece Kroha, Senior Attorney, Office of the General Counsel, Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590; 202-366-9041, [email protected] | |
| FR Citation | 80 FR 30144 | |
| RIN Number | 2105-AE39 | |
| CFR Citation | 14
CFR
250 14 CFR 254 14 CFR 383 | |
| CFR Associated | Air Carriers; Consumer Protection; Reporting and Recordkeeping Requirements; Administrative Practice and Procedure; Transportation and Penalties |
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