81 FR 42548 - Civil Penalties
DEPARTMENT OF TRANSPORTATION
Maritime Administration Federal Register Volume 81, Issue 126 (June 30, 2016)
Maritime Administration
Federal Register Volume 81, Issue 126 (June 30, 2016)
| Page Range | 42548-42552 | |
| FR Document | 2016-15566 |
[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)] [Rules and Regulations] [Pages 42548-42552] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-15566] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Maritime Administration 46 CFR Parts 221, 307, 340, and 356 RIN 2133-AB89 Civil Penalties AGENCY: Maritime Administration (MARAD), Department of Transportation (DOT). ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: This interim final rule updates the maximum civil penalty amounts for violations of statutes and regulations administered by MARAD pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015. This interim final rule amends our regulations to reflect the new, adjusted civil penalty amounts MARAD may assess pursuant for violations of procedures related to the American Fisheries Act, certain regulated transactions involving documented vessels, the Automated Mutual Assistance Vessel Rescue [[Page 42549]] program (AMVER), and the Defense Production Act. DATES: This rule is effective August 1, 2016. ADDRESSES: Office of Chief Counsel, MAR 225, Maritime Administration, 1200 New Jersey Avenue SE., West Building, Second Floor, Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: T. Mitchell Hudson, Jr., Office of Chief Counsel, MARAD, telephone (202) 366-9373, email to: [email protected], 1200 New Jersey Ave. SE., Washington, DC 20590. SUPPLEMENTARY INFORMATION: I. Background On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act Improvement Act (the 2015 Act), Public Law 114-74, Section 701, was signed into law. The purpose of the 2015 Act is to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to make an initial catch up adjustment to the civil monetary penalties they administer through an interim final rule and then to make subsequent annual adjustments for inflation. The amount of increase of any adjustment to a civil penalty pursuant to the 2015 Act is limited to 150 percent of the current penalty. Agencies are required to issue the interim final rule with the initial catch up adjustment by July 1, 2016. The method of calculating inflationary adjustments in the 2015 Act differs substantially from the methods used in past inflationary adjustment rulemakings conducted pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), Public Law 101-410. Previously, adjustments to civil penalties were conducted under rules that required significant rounding of figures. For example, a penalty increase that was greater than $1,000, but less than or equal to $10,000, would be rounded to the nearest multiple of $1,000. While this allowed penalties to be kept at round numbers, it meant that penalties would often not be increased at all if the inflation factor was not large enough. Furthermore, increases to penalties were capped at 10 percent. Over time, this formula caused penalties to lose value relative to total inflation. The 2015 Act has removed these rounding rules; now, penalties are simply rounded to the nearest $1. While this creates penalty values that are no longer round numbers, it does ensure that penalties will be increased each year to a figure commensurate with the actual calculated inflation. Furthermore, the 2015 Act ``resets'' the inflation calculations by excluding prior inflationary adjustments under the Inflation Adjustment Act, which contributed to a decline in the real value of penalty levels. To do this, the 2015 Act requires agencies to identify, for each penalty, the year and corresponding amount(s) for which the maximum penalty level or range of minimum and maximum penalties was established (i.e., originally enacted by Congress) or last adjusted by statute or regulation other than pursuant to the Inflation Adjustment Act. The Director of the Office of Management and Budget (OMB) provided guidance to agencies in a February 24, 2016 memorandum on how to calculate the initial adjustment required by the 2015 Act.\1\ The initial catch up adjustment is based on the change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October in the year the penalty amount was established or last adjusted by Congress and the October 2015 CPI-U. The February 24, 2016 memorandum contains a table with a multiplier for the change in CPI-U from the year the penalty was established or last adjusted to 2015. To arrive at the adjusted penalty, the agency must multiply the penalty amount when it was established or last adjusted by Congress, excluding adjustments under the Inflation Adjustment Act, by the multiplier for the increase in CPI-U from the year the penalty was established or adjusted provided in the February 24, 2016 memorandum. The 2015 Act limits the initial inflationary adjustment to 150 percent of the current penalty. To determine whether the increase in the adjusted penalty is less than 150 percent, the agency must multiply the current penalty by 250 percent. The adjusted penalty is the lesser of either the adjusted penalty based on the multiplier for CPI-U in Table A of the February 24, 2016 memorandum or an amount equal to 250 percent of the current penalty. This interim final rule adjusts the civil penalties for violations of statutes and regulations that MARAD administers consistent with the February 24, 2016 memorandum. --------------------------------------------------------------------------- \1\ Memorandum from the Director of OMB to Heads of Executive Departments and Agencies, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Feb. 24, 2016), available at www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. --------------------------------------------------------------------------- II. Inflationary Adjustments to Penalty Amounts in 46 CFR Part 221 Changes to Civil Penalties for Regulated Transactions Involving Vessel Ownership Transfers and Other Maritime Interests (46 CFR 221.61) The maximum civil penalties arising under 46 CFR 221.61 have not been updated since they were established, except for inflationary adjustments pursuant to the Inflation Adjustment Act of 1990. The maximum civil penalty for a single violation of any provision under 46 U.S.C. Chapter 313 and all of Subtitle III related MARAD regulations, except section 31329, specified in 31309 of Title 46 of the United States Code was set at $10,000 when the penalty was established by Public Law 100-710, 102 Stat. 4747, enacted in 1988. Likewise, the maximum civil penalty for a single violation of 31329 of Title 46 of the United States Code as it relates to the court sales of documented vessels, specified in 31330 of Title 46 of the United States Code was set at $25,000 when the penalty was established by the same statute, Public Law 100-710, 102 Stat. 4747, enacted in 1988. Lastly, for penalties arising under 46 CFR 221.61, the maximum civil penalty for a single violation of 56101 of Title 46 of the United States Code as it relates to approvals required to transfer a vessel to a noncitizen, specified in 56101(e) of Title 46 United States Code was set at not more than $10,000 when the penalty was established by Public Law 101- 225, 103 Stat. 1908, enacted in 1989. Applying the multiplier for the increase in CPI-U for 1988 in Table A of the February 24, 2016 memorandum (1.97869) results in an adjusted civil penalty of $19,787 pursuant to 46 U.S.C. 31309; $49,467 pursuant to 46 U.S.C. 31330. Applying the multiplier for the increase in CPI-U for 1989 (1.89361) results in an adjusted civil penalty of $18,936 pursuant to section 56101(e). Inflationary Adjustments to Penalty Amounts in 46 CFR Part 307 Changes to Civil Penalties for Failure To File an AMVER Report (46 CFR 307.19) The maximum civil penalty for a single violation of 50113 of Title 46 of the United States Code related to use and performance reports by operators of vessels as specified in 50113(b) of Title 46 of the United States Code was set at $50.00 per day when the penalty was established by Public Law 84-612, 70 Stat. 332, enacted in 1956. This civil penalty has not been updated since it was established. Applying the multiplier for the increase in CPI-U for 1956 in Table A of the February 24, [[Page 42550]] 2016 memorandum (8.64865) would result in an adjusted civil penalty of $432.433, which is more than the limitation on inflationary adjustments of 150 percent, accordingly the adjusted civil penalty is $125.00, which is 150 percent of the previously penalty amount not counting updates made under the Inflation Adjustment Act. Inflationary Adjustments to Penalty Amounts in 46 CFR Part 340 Changes to Civil Penalties for Violating Procedures for the Use and Allocation of Shipping Services, Port Facilities and Services for National Security and National Defense Operations (46 CFR 340.9) The maximum civil penalty for a single violation of 4501 of Title 50 of the United States Code, specified in 4513 of Title 50 of the United States Code, at 46 CFR 340.9, was set at not more than $10,000 when the penalty was established by the Defense Production Act, 64 Stat. 799, enacted in 1950. This civil penalty has not been updated since it was established. Applying the multiplier for the increase in CPI-U for 1950 in Table A of the February 24, 2016 memorandum (9.66821) would result in an adjusted civil penalty of $96682.1, which is above the 150 percent limit for inflationary adjustments, so the adjusted civil penalty is $25,000, which is 150 percent of the previous penalty amount not counting updates under the Inflation Adjustment Act. Inflationary Adjustments to Penalty Amounts in 46 CFR Part 356 Changes to Civil Penalties for Violations in Applying For or Renewing a Vessel's Fishery Endorsement (46 CFR 356.49) The maximum civil penalty for a single violation of 12151 of Title 46 of the United States Code for engaging in fishing operations as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act, within the Exclusive Economic Zone, specified in 12151(c) of Title 46 of the United States Code, and at 46 CFR 356.49, was set at $100,000.00 for each day such vessel engaged in fishing when the penalty was established by Public Law 105-277, 112 Stat. 2681-620, enacted in 1998. This civil penalty has not been updated since it was established. Applying the multiplier for the increase in CPI-U for 1998 in Table A of the February 24, 2016 memorandum (1.45023) results in an adjusted civil penalty of $145,023. III. Dispensing With Notice and Public Comment MARAD is promulgating this interim final rule to ensure that the amount of civil penalties contained in 46 CFR 221.61, 307.19, 340.9 and 356.49--reflect the statutorily mandated ranges as adjusted for inflation. Pursuant to the 2015 Act, MARAD is required to promulgate a ``catch-up adjustment'' through an interim final rule. Pursuant to the 2015 Act and 5 U.S.C. 553(b)(3)(B), MARAD finds that good cause exists for immediate implementation of this interim final rule without prior notice and comment because it would be impracticable to delay publication of this rule for notice and comment and because public comment is unnecessary. By operation of the Act, MARAD must publish the catch-up adjustment by interim final rule by July 1, 2016. Additionally, the 2015 Act provides a clear formula for adjustment of the civil penalties, leaving the agency little room for discretion. Furthermore, the increases in MARAD's civil penalty authority authorized by 46 U.S.C. 12151(c), 31309, 31330, 50113(b), 56101(e) and 50 U.S.C. 4513 are already in effect and the amendments merely update the relevant regulations to reflect the new statutory civil penalty. For these reasons, MARAD finds that notice and comment would be impracticable and is unnecessary in this situation. IV. Rulemaking Analyses and Notices Executive Order 12866, Executive Order 13563, and DOT Regulatory Policies and Procedures MARAD has considered the impact of this rulemaking action under Executive Order 12866, Executive Order 13563, and the Department of Transportation's regulatory policies and procedures. This rulemaking document was not reviewed under Executive Order 12866 or Executive Order 13563. This action is limited to the adoption of adjustments of civil penalties under statutes that the agency enforces, and has been determined to be not ``significant'' under the Department of Transportation's regulatory policies and procedures and the policies of the Office of Management and Budget. Because this rulemaking does not change the number of entities that are subject to civil penalties, the impacts are limited. Furthermore, excluding the penalties in 46 CFR 221.61, 307.19, 340.9 and 356.49 for violating certain long standing procedures, this final rule does not establish civil penalty amounts that MARAD is required to seek. We also do not expect the increase in the civil penalty amount in any of these regulations to be economically significant. Over the last five years, MARAD has not collected any civil penalties under these regulations. Increasing the current civil penalty amount by 150 percent would not result in an annual effect on the economy of $100 million or more. Regulatory Flexibility Act We have also considered the impacts of this notice under the Regulatory Flexibility Act. I certify that this rule will not have a significant economic impact on a substantial number of small entities. Since this regulation does not establish a penalty amount that MARAD is required to seek, except for the long standing civil penalties set forth in 46 CFR 221.61, 307.19, 340.9 and 356.49, this rule will not have a significant economic impact on small businesses. Additionally, over the last five years, MARAD has not collected any civil penalties under these regulations. Accordingly, increasingly the civil penalty amount is unlikely to have any economic impact on any small businesses. In addition, MARAD has determined the RFA does not apply to this rulemaking. The 2015 Inflation Act requires MARAD to publish an interim final rule and does not require MARAD to complete notice and comment procedures under the APA. The Small Business Administration's A Guide for Government Agencies: How to Comply with the Regulatory Flexibility Act (2012), provides that: If, under the APA or any rule of general applicability governing federal grants to state and local governments, the agency is required to publish a general notice of proposed rulemaking (NPRM), the RFA must be considered [citing 5 U.S.C. 604(a)]. . . . If an NPRM is not required, the RFA does not apply. Therefore, because the 2015 Inflation Act does not require an NPRM for this rulemaking, the RFA does not apply. Executive Order 13132 (Federalism) Executive Order 13132 requires MARAD to develop an accountable process to ensure ``meaningful and timely input by State and local officials in the development of regulatory policies that have federalism implications.'' ``Policies that have federalism implications'' is defined in the Executive Order to include regulations that have ``substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.'' Under Executive Order 13132, the agency may [[Page 42551]] not issue a regulation with Federalism implications, that imposes substantial direct compliance costs, and that is not required by statute, unless the Federal government provides the funds necessary to pay the direct compliance costs incurred by State and local governments, the agency consults with State and local governments, or the agency consults with State and local officials early in the process of developing the proposed regulation. This rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. This rule only updates existing penalties, pursuant to statute. MARAD has not collected any civil penalties under these regulations within the last five years and if it were to assess penalties, due to the amounts involved, it would not have a substantial direct effect on a State. Thus, the requirements of Section 6 of the Executive Order do not apply. Unfunded Mandates Reform Act of 1995 The Unfunded Mandates Reform Act of 1995, Public Law 104-4, requires agencies to prepare a written assessment of the cost, benefits and other effects of proposed or final rules that include a Federal mandate likely to result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of more than $100 million annually. Because this rule will not have a $100 million effect, no Unfunded Mandates assessment will be prepared. Executive Order 12778 (Civil Justice Reform) This rule does not have a retroactive or preemptive effect. Judicial review of a rule based on this proposal may be obtained pursuant to 5 U.S.C. 702. That section does not require that a petition for reconsideration be filed prior to seeking judicial review. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1980, we state that there are no requirements for information collection associated with this rulemaking action. Privacy Act Please note that anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the Federal Register published on April 11, 2000 (Volume 65, Number 70; Pages 19477-78), or you may visit http://dms.dot.gov. List of Subjects 46 CFR Part 221 Regulated Transactions Involving Documented Vessels and Other Maritime Interests. 46 CFR Part 307 Establishment of Mandatory Position Reporting System for Vessels. 46 CFR Part 340 Priority Use and Allocation of Shipping Services, Containers and Chassis, and Port Facilities and Services for National Security and National Defense Related Operations. 46 CFR Part 356 Requirements for Vessels of 100 Feet or Greater in Registered Length to Obtain a Fishery Endorsement to the Vessel's Documentation. In consideration of the foregoing, 46 CFR parts 221, 307, 340, and 356 are amended as set forth below. PART 221--REGULATED TRANSACTIONS INVOLVING DOCUMENTED VESSELS AND OTHER MARITIME INTERESTS 0 1. The authority citation for 46 CFR part 221 is revised to read as follows: Authority: 46 U.S.C. chs. 301, 313, and 561; Pub. L. 114-74; 49 CFR 1.93. 0 2. Section 221.61 is revised to read as follows: Sec. 221.61 Compliance. (a) This subpart describes procedures for the administration of civil penalties that the Maritime Administration may assess under 46 U.S.C. 31309, 31330 and 56101, pursuant to 49 U.S.C. 336. (b) Pursuant to 46 U.S.C. 31309, a general penalty of not more than $19,787 may be assessed for each violation of chapter 313 or 46 U.S.C. subtitle III administered by the Maritime Administration, and the regulations in this part that are promulgated thereunder, except that a person violating 46 U.S.C. 31329 and the regulations promulgated thereunder is liable for a civil penalty of not more than $49,467 for each violation. A person that charters, sells, transfers or mortgages a vessel, or an interest therein, in violation of 46 U.S.C. 56101(e) is liable for a civil penalty of not more than $18,936 for each violation. PART 307--ESTABLISHMENT OF MANDATORY POSITION REPORTING SYSTEM FOR VESSELS 0 3. The authority citation for 46 CFR part 307 is revised to read as follows: Authority: Pub. L. 109-304; 46 U.S.C. 50113; Pub. L. 114-74; 49 CFR 1.93. 0 4. Section 307.19 is revised to read as follows: Sec. 307.19 Penalties. The owner or operator of a vessel in the waterborne foreign commerce of the United States is subject to a penalty of $125.00 for each day of failure to file an AMVER report required by this part. Such penalty shall constitute a lien upon the vessel, and such vessel may be libeled in the district court of the United States in which the vessel may be found. PART 340--PRIORITY USE AND ALLOCATION OF SHIPPING SERVICES, CONTAINERS AND CHASSIS, AND PORT FACILITIES AND SERVICES FOR NATIONAL SECURITY AND NATIONAL DEFENSE RELATED OPERATIONS 0 5. The authority citation for 46 CFR part 340 is revised to read as follows: Authority: 50 U.S.C. 4501 et seq. (``The Defense Production Act''); Executive Order 13603 (77 FR 16651); Executive Order 12656 (53 FR 47491); Pub. L. 114-74; 49 CFR 1.45; 49 CFR 1.93(l). 0 6. Section 340.9 is revised to read as follows: Sec. 340.9 Compliance. Pursuant 50 U.S.C. 4513 any person who willfully performs any act prohibited, or willfully fails to perform any act required, by the provisions of this regulation shall, upon conviction, be fined not more than $25,000 or imprisoned for not more than one year, or both. PART 356--REQUIREMENTS FOR VESSELS OF 100 FEET OR GREATER IN REGISTERED LENGTH TO OBTAIN A FISHERY ENDORSEMENT TO THE VESSEL'S DOCUMENTATION 0 6. The authority citation for 46 CFR part 356 is revised to read as follows: Authority: 46 U.S.C. 12102; 46 U.S.C. 12151; 46 U.S.C. 31322; Pub. L. 105-277, division C, title II, subtitle I, section 203 (46 U.S.C. 12102 note), section 210(e), and section 213(g), 112 Stat. 2681; Pub. L. 107-20, section 2202, 115 Stat. 168-170; Pub. L. 114- 74; 49 CFR 1.93. 0 7. In Sec. 356.49, revise paragraph (b) to read as follows: [[Page 42552]] Sec. Penalties. * * * * * (b) A fine of up to $145,023 may be assessed against the vessel owner for each day in which such vessel has engaged in fishing (as such term is defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802) within the exclusive economic zone of the United States; and * * * * * Dated: June 27, 2016. By Order of the Maritime Administrator. Gabriel Chavez, Secretary, Maritime Administration. [FR Doc. 2016-15566 Filed 6-29-16; 8:45 am] BILLING CODE 4910-81-P
![42548 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations
Inert ingredients Limits Uses
* * * * * * *
Pentaerythritol tetrakis (3-(3,5-di-tert-butyl-4- Not to exceed 3% by weight of the pesticide formula- Antioxidant, stabilizer.
hydroxyphenyl)propionate) (CAS Reg. No. 6683–19–8). tion.
* * * * * * *
[FR Doc. 2016–15613 Filed 6–29–16; 8:45 am] are correcting this error by adding a § 416.44 [Corrected]
BILLING CODE 6560–50–P sentence to clarify that outpatient ■ 1. On page 26897, in the first column,
surgical departments must meet the line 1 (§ 416.44(b)(1)), after the word
provisions applicable to Ambulatory ‘‘Occupancies’’ insert ‘‘, regardless of
DEPARTMENT OF HEALTH AND Health Care Occupancies, regardless of the number of patients served,’’.
HUMAN SERVICES the number of patients served.
§ 482.41 [Corrected]
On page 26900, at § 483.70(a)(8), we
Centers for Medicare & Medicaid inadvertently specified an incorrect ■ 2. On page 26899, in the first column;
Services facility type. We are correcting this error in § 482.41(b)(1)(i), add a new sentence
to specify the requirements an LTC at the end of the paragraph to read,
42 CFR Parts 416, 482, and 483 facility must meet when a sprinkler ‘‘Outpatient surgical departments must
[CMS–3277–CN] system is shut down for more than 10 meet the provisions applicable to
hours. Ambulatory Health Care Occupancies,
RIN 0938–AR72 regardless of the number of patients
III. Waiver of Proposed Rulemaking served.’’
Medicare and Medicaid Programs; Fire and the 30-Day Delay in Effective Date
Safety Requirements for Certain Health § 483.70 [Corrected]
Care Facilities; Correction We ordinarily publish a notice of
■ 3. On page 26900, in the first column;
proposed rulemaking in the Federal
AGENCY: Centers for Medicare & in § 483.70(a)(8) introductory text, in
Register to provide a period for public
Medicaid Services (CMS), HHS. line 2, the word ‘‘ASC’’ is corrected to
comment before the provisions of a rule
ACTION: Final rule; correction. read ‘‘LTC facility’’.
take effect in accordance with section
553(b) of the Administrative Procedure Dated: June 22, 2016.
SUMMARY: This document corrects
Act (APA) (5 U.S.C. 553(b)). However, Madhura Valverde,
technical errors that appeared in the
final rule published in the Federal we can waive this notice and comment Executive Secretary to the Department,
procedure if the Secretary finds, for Department of Health and Human Services.
Register on May 4, 2016, entitled
‘‘Medicare and Medicaid Programs; Fire good cause, that the notice and [FR Doc. 2016–15460 Filed 6–29–16; 8:45 am]
Safety Requirements for Certain Health comment process is impracticable, BILLING CODE 4120–01–P
Care Facilities.’’ unnecessary, or contrary to the public
interest, and incorporates a statement of
DATES: This correction is effective July
the finding and the reasons therefore in DEPARTMENT OF TRANSPORTATION
5, 2016.
the notice.
FOR FURTHER INFORMATION CONTACT: Maritime Administration
Kristin Shifflett, (410) 786–4133. Section 553(d) of the APA ordinarily
requires a 30-day delay in effective date
SUPPLEMENTARY INFORMATION: 46 CFR Parts 221, 307, 340, and 356
of final rules after the date of their
I. Background publication in the Federal Register. RIN 2133–AB89
In FR Doc. 2016–10043 of May 4, This 30-day delay in effective date can
be waived; however, if an agency finds Civil Penalties
2016 (81 FR 26871), there were
technical errors that are identified and for good cause that the delay is AGENCY: Maritime Administration
corrected in the Correction of Errors impracticable, unnecessary, or contrary (MARAD), Department of
section below. The provisions in this to the public interest, and the agency Transportation (DOT).
correction document are effective as if incorporates a statement of the findings
ACTION: Interim final rule.
they had been included in the document and its reasons in the rule issued. In this
published May 4, 2016. Accordingly, case, we find that a period for comment SUMMARY: This interim final rule
the corrections are effective July 5, 2016. and a delay in the effective date of updates the maximum civil penalty
publication are both unnecessary, amounts for violations of statutes and
II. Summary of Errors in Regulations because this correction notice merely regulations administered by MARAD
Text corrects technical and typographical pursuant to the Federal Civil Penalties
On page 26897, at § 416.44(b)(1), we errors in the regulations text and makes Inflation Adjustment Act Improvement
inadvertently omitted a portion of the no changes in CMS policy. For this Act of 2015. This interim final rule
sentence. We are correcting this reason, we believe we have good cause amends our regulations to reflect the
srobinson on DSK5SPTVN1PROD with RULES
sentence to read, ‘‘. . . the ASC must to waive the APA notice and comment new, adjusted civil penalty amounts
meet the provisions applicable to period and delayed effective date. MARAD may assess pursuant for
Ambulatory Health Care Occupancies, IV. Correction of Errors violations of procedures related to the
regardless of the number of patients American Fisheries Act, certain
served[.]’’. In FR Doc. 2016–10043 of May 4, regulated transactions involving
On page 26899, at § 482.41(b)(1)(i), we 2016 (81 FR 26871), make the following documented vessels, the Automated
inadvertently omitted a sentence. We corrections: Mutual Assistance Vessel Rescue
VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00096 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1](https://thefederalregister.org/doc/81_FR_42674/page/1.svg)
![42550 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations
2016 memorandum (8.64865) would III. Dispensing With Notice and Public regulations to be economically
result in an adjusted civil penalty of Comment significant. Over the last five years,
$432.433, which is more than the MARAD is promulgating this interim MARAD has not collected any civil
limitation on inflationary adjustments of final rule to ensure that the amount of penalties under these regulations.
150 percent, accordingly the adjusted civil penalties contained in 46 CFR Increasing the current civil penalty
civil penalty is $125.00, which is 150 221.61, 307.19, 340.9 and 356.49— amount by 150 percent would not result
percent of the previously penalty reflect the statutorily mandated ranges in an annual effect on the economy of
amount not counting updates made as adjusted for inflation. Pursuant to the $100 million or more.
under the Inflation Adjustment Act. 2015 Act, MARAD is required to Regulatory Flexibility Act
promulgate a ‘‘catch-up adjustment’’
Inflationary Adjustments to Penalty We have also considered the impacts
through an interim final rule. Pursuant
Amounts in 46 CFR Part 340 of this notice under the Regulatory
to the 2015 Act and 5 U.S.C.
Flexibility Act. I certify that this rule
Changes to Civil Penalties for Violating 553(b)(3)(B), MARAD finds that good
will not have a significant economic
Procedures for the Use and Allocation of cause exists for immediate
impact on a substantial number of small
Shipping Services, Port Facilities and implementation of this interim final rule
entities. Since this regulation does not
Services for National Security and without prior notice and comment
establish a penalty amount that MARAD
National Defense Operations (46 CFR because it would be impracticable to
delay publication of this rule for notice is required to seek, except for the long
340.9) standing civil penalties set forth in 46
and comment and because public
comment is unnecessary. By operation CFR 221.61, 307.19, 340.9 and 356.49,
The maximum civil penalty for a this rule will not have a significant
single violation of 4501 of Title 50 of the of the Act, MARAD must publish the
catch-up adjustment by interim final economic impact on small businesses.
United States Code, specified in 4513 of Additionally, over the last five years,
Title 50 of the United States Code, at 46 rule by July 1, 2016. Additionally, the
2015 Act provides a clear formula for MARAD has not collected any civil
CFR 340.9, was set at not more than penalties under these regulations.
$10,000 when the penalty was adjustment of the civil penalties, leaving
the agency little room for discretion. Accordingly, increasingly the civil
established by the Defense Production penalty amount is unlikely to have any
Furthermore, the increases in MARAD’s
Act, 64 Stat. 799, enacted in 1950. This economic impact on any small
civil penalty authority authorized by 46
civil penalty has not been updated since businesses.
U.S.C. 12151(c), 31309, 31330, 50113(b),
it was established. Applying the In addition, MARAD has determined
56101(e) and 50 U.S.C. 4513 are already
multiplier for the increase in CPI–U for in effect and the amendments merely the RFA does not apply to this
1950 in Table A of the February 24, update the relevant regulations to reflect rulemaking. The 2015 Inflation Act
2016 memorandum (9.66821) would the new statutory civil penalty. For requires MARAD to publish an interim
result in an adjusted civil penalty of these reasons, MARAD finds that notice final rule and does not require MARAD
$96682.1, which is above the 150 and comment would be impracticable to complete notice and comment
percent limit for inflationary and is unnecessary in this situation. procedures under the APA. The Small
adjustments, so the adjusted civil Business Administration’s A Guide for
penalty is $25,000, which is 150 percent IV. Rulemaking Analyses and Notices Government Agencies: How to Comply
of the previous penalty amount not Executive Order 12866, Executive Order with the Regulatory Flexibility Act
counting updates under the Inflation 13563, and DOT Regulatory Policies and (2012), provides that:
Adjustment Act. Procedures If, under the APA or any rule of general
applicability governing federal grants to state
Inflationary Adjustments to Penalty MARAD has considered the impact of and local governments, the agency is
Amounts in 46 CFR Part 356 this rulemaking action under Executive required to publish a general notice of
Order 12866, Executive Order 13563, proposed rulemaking (NPRM), the RFA must
Changes to Civil Penalties for Violations and the Department of Transportation’s be considered [citing 5 U.S.C. 604(a)]. . . . If
in Applying For or Renewing a Vessel’s regulatory policies and procedures. This an NPRM is not required, the RFA does not
Fishery Endorsement (46 CFR 356.49) rulemaking document was not reviewed apply.
under Executive Order 12866 or Therefore, because the 2015 Inflation
The maximum civil penalty for a
Executive Order 13563. This action is Act does not require an NPRM for this
single violation of 12151 of Title 46 of limited to the adoption of adjustments
the United States Code for engaging in rulemaking, the RFA does not apply.
of civil penalties under statutes that the
fishing operations as defined in section agency enforces, and has been Executive Order 13132 (Federalism)
3 of the Magnuson-Stevens Fishery determined to be not ‘‘significant’’ Executive Order 13132 requires
Conservation and Management Act, under the Department of MARAD to develop an accountable
within the Exclusive Economic Zone, Transportation’s regulatory policies and process to ensure ‘‘meaningful and
specified in 12151(c) of Title 46 of the procedures and the policies of the Office timely input by State and local officials
United States Code, and at 46 CFR of Management and Budget. Because in the development of regulatory
356.49, was set at $100,000.00 for each this rulemaking does not change the policies that have federalism
day such vessel engaged in fishing when number of entities that are subject to implications.’’ ‘‘Policies that have
the penalty was established by Public civil penalties, the impacts are limited. federalism implications’’ is defined in
Law 105–277, 112 Stat. 2681–620, Furthermore, excluding the penalties in the Executive Order to include
srobinson on DSK5SPTVN1PROD with RULES
enacted in 1998. This civil penalty has 46 CFR 221.61, 307.19, 340.9 and 356.49 regulations that have ‘‘substantial direct
not been updated since it was for violating certain long standing effects on the States, on the relationship
established. Applying the multiplier for procedures, this final rule does not between the national government and
the increase in CPI–U for 1998 in Table establish civil penalty amounts that the States, or on the distribution of
A of the February 24, 2016 MARAD is required to seek. power and responsibilities among the
memorandum (1.45023) results in an We also do not expect the increase in various levels of government.’’ Under
adjusted civil penalty of $145,023. the civil penalty amount in any of these Executive Order 13132, the agency may
VerDate Sep<11>2014 20:00 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00098 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1](https://thefederalregister.org/doc/81_FR_42674/page/3.svg)
![42552 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations
§ Penalties. Capitol Street NW., Room 1018, CPI–U. In accordance with the 2015 Act,
* * * * * Washington, DC 20573, (202) 523–5740. the Office of Management and Budget
(b) A fine of up to $145,023 may be SUPPLEMENTARY INFORMATION: This rule (OMB) has issued guidance to agencies
assessed against the vessel owner for implements the 2015 Act, which on implementing the catch-up
each day in which such vessel has became effective on November 2, 2015. adjustments and provided multipliers
engaged in fishing (as such term is The 2015 Act further amends the for agencies to use depending on the
defined in section 3 of the Magnuson- Federal Civil Penalties Inflation year a civil penalty was established or
Stevens Fishery Conservation and Adjustment Act of 1990 (FCPIAA), adjusted (other than inflation
Management Act (16 U.S.C. 1802) Public Law 101–410, 104 Stat. 890 adjustments). Agencies look at the
within the exclusive economic zone of (codified as amended at 28 U.S.C. 2461 multiplier corresponding to that year in
the United States; and note), in order to improve the a table provided by OMB.6 Next,
* * * * * effectiveness of civil monetary penalties agencies multiply the amount of the
and to maintain their deterrent effect. penalty (not adjusted for inflation) by
Dated: June 27, 2016.
The Debt Collection Improvement Act of the amount in the table.7 Under the
By Order of the Maritime Administrator. 1996 (DCIA), Public Law 104–134, Title 2015 Act, however, the catch-up
Gabriel Chavez, III, 31001(s)(1), 110 Stat. 1321–373, increase cannot exceed 150% of the
Secretary, Maritime Administration. originally amended the FCPIAA and amount that was effective on November
[FR Doc. 2016–15566 Filed 6–29–16; 8:45 am] required the head of each executive 2, 2015.8
BILLING CODE 4910–81–P agency to adopt regulations that adjust
For example, Section 13 of the
the maximum civil monetary penalties
Shipping Act of 1984 (1984 Act), 46
(CMPs) assessable under its agency’s
U.S.C. 41107, imposes a maximum
FEDERAL MARITIME COMMISSION jurisdiction at least every four years to
$45,000 penalty for a knowing and
ensure that they continued to maintain
willful violation of the 1984 Act.9 The
46 CFR Part 506 their deterrent value.1 In accordance
penalty was established in 1984 for an
with the DCIA, the Commission
[Docket No. 16–13] amount of $25,000 and has only been
established Part 506 in 1996 and
adjusted pursuant to the FCPIAA since
RIN 3072–AC63 adjusted its penalties.2 The Commission
then. As a result, the Commission
further adjusted its civil penalty
Inflation Adjustment of Civil Monetary multiplied $25,000 by 2.25867 (the
amounts in 2000, 2009, and 2014.3
Penalties The 2015 Act requires that agencies multiplier provided by OMB for 1984)
publish a catch-up adjustment in the to obtain an adjusted CMP of $55,467.
AGENCY: Federal Maritime Commission. penalties in an interim rule by July 1, The last time the Commission
ACTION: Interim final rule. 2016, to become effective no later than adjusted its CMP not pursuant to
August 1, 2016. Following the catch-up FCPIAA varies depending on the
SUMMARY: This rule implements the penalty.10 Accordingly, the Commission
adjustment, the 2015 Act requires
Federal Civil Penalties Inflation has looked at the multiplier in the table
agencies to adjust CMPs under their
Adjustment Act Improvements Act of OMB provided to determine the
jurisdiction annually beginning in 2017
2015 (2015 Act) (Sec. 701 of Pub. L. 11– appropriate adjustment for its civil
based on changes in the consumer price
74). The rule adjusts the maximum penalties. In order to provide some
index using data from October in the
amount of each statutory civil penalty clarity, the table below shows the non-
previous calendar year.
subject to Federal Maritime Commission In order to catch-up CMPs, the 2015 inflation-adjusted penalty, the year it
(Commission) jurisdiction for inflation, Act requires agencies to identify the was established or adjusted (other than
in accordance with the requirements of year the civil penalty was established or under the FCPIAA), the multiplier
that Act. The 2015 Act requires that last adjusted by statute or regulation provided by OMB, and the result of
agencies publish a catch-up adjustment other than pursuant to the FCPIAA.4 applying the multiplier (rounded to the
in the penalties in an interim rule by Catch-up adjustments are based on the nearest dollar per the statute). The table
July 1, 2016, and that agencies adjust percent change between the Consumer also shows 250% of the amount of the
penalties yearly thereafter. Price Index for all Urban Consumers penalty in November 2015 (2015 Act
DATES: This rule is effective on August (CPI–U) 5 for the month of October of Cap). The new adjusted maximum
1, 2016. the year in which the CMP was penalty is the lesser of (1) the amount
FOR FURTHER INFORMATION CONTACT: established or adjusted (other than using the multiplier and (2) 250% of the
Tyler Wood, General Counsel, Federal through Inflation Adjustment Act amount of the penalty in November
Maritime Commission, 800 North adjustments), and the October 2015 2015.
New adjusted
Non-inflation- 2015 Act cap
Multiplier maximum
U.S.C. Section adjusted Year Multiplier (250% of 11/2/
result penalty
penalty 15 Amount) amount
46 U.S.C. 42304 ...................................... 1,000,000 1988 1.97869 1,978,690 4,000,000 1,978,690
1 Increased CMPs are applicable only to violations 5 3(3). of the levels in effect on November 2, 2015. M–16–
occurring after the increase takes effect. 06, OMB guidance memo, at 3; also at 5(b)(2)(C).
srobinson on DSK5SPTVN1PROD with RULES
6 Id.
2 61 FR 52704 (Oct. 8, 1996). 9 The Commission last adjusted its civil penalties
7 Id. The amount of the catch-up penalty cannot
3 65 FR 49741 (Aug. 15, 2000); 74 FR 38114 (July
exceed 250% of the amount that was effective on pursuant to FCPIAA in 2014.
28, 2009); 79 FR 37662 (July 2, 2014).
4 5(b)(2); Memorandum for the Heads of Executive
November 2, 2015 which would be $112,500 for a 10 Current CMPs at the Commission have been
violation of Section 13. effective since July 11, 2014. 79 FR 37662 (July 2,
Departments and Agencies for the Implementation
of the Federal Civil Penalties Inflation Adjustment
8 The 150 percent limitation in the 2015 Act is on 2014).
Act, M–16–06, at 4, February 24, 2016 (OMB the amount of the increase. The actual adjusted
Guidance Memo). penalty levels, however are capped at 250 percent
VerDate Sep<11>2014 20:57 Jun 29, 2016 Jkt 238001 PO 00000 Frm 00100 Fmt 4700 Sfmt 4700 E:\FR\FM\30JNR1.SGM 30JNR1](https://thefederalregister.org/doc/81_FR_42674/page/5.svg)
Document Created: 2018-02-08 07:45:07
Document Modified: 2018-02-08 07:45:07
| 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 | Interim final rule. | |
| Dates | This rule is effective August 1, 2016. | |
| Contact | T. Mitchell Hudson, Jr., Office of Chief Counsel, MARAD, telephone (202) 366-9373, email to: [email protected], 1200 New Jersey Ave. SE., Washington, DC 20590. | |
| FR Citation | 81 FR 42548 | |
| RIN Number | 2133-AB89 | |
| CFR Citation | 46
CFR
221 46 CFR 307 46 CFR 340 46 CFR 356 | |
| CFR Associated | Regulated Transactions Involving Documented Vessels and Other Maritime Interests; Establishment of Mandatory Position Reporting System for Vessels; Priority Use and Allocation of Shipping Services; Containers and Chassis; Port Facilities and Services for National Security and National Defense Related Operations and Requirements for Vessels of 100 Feet Or Greater in Registered Length to Obtain A Fishery Endorsement to the Vessel's Documentation |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR