81 FR 51079 - Revisions to the Civil Penalty Inflation Adjustment Tables; Correction

DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration

Federal Register Volume 81, Issue 149 (August 3, 2016)

The FAA is correcting an interim final rule titled ``Revisions to the Civil Penalty Inflation Adjustment Tables'' that it published in the Federal Register on July 5, 2016. That interim final rule was the catch-up inflation adjustment to civil penalty amounts that may be imposed for violations of Federal Aviation Administration (FAA) regulations, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. In that document, there were several errors that need to be corrected before the rule becomes effective. This document addresses those errors.

[Federal Register Volume 81, Number 149 (Wednesday, August 3, 2016)]
[Rules and Regulations]
[Pages 51079-51081]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18514]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 13 and 406

[Docket No. FAA-2016-7004 Amdt. Nos. 13-38, 406-10]
RIN 2120-AK90


Revisions to the Civil Penalty Inflation Adjustment Tables; 
Correction

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Interim final rule; correction.

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SUMMARY: The FAA is correcting an interim final rule titled ``Revisions 
to the Civil Penalty Inflation Adjustment Tables'' that it published in 
the Federal Register on July 5, 2016. That interim final rule was the 
catch-up inflation adjustment to civil penalty amounts that may be 
imposed for violations of Federal Aviation Administration (FAA) 
regulations, as required by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. In that document, there were 
several errors that need to be corrected before the rule becomes 
effective. This document addresses those errors.

DATES: This correction is effective on August 5, 2016.

FOR FURTHER INFORMATION CONTACT: Cole R. Milliard, Attorney, Office of 
the Chief Counsel, Enforcement Division, AGC-300, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 267-3452; email [email protected].

SUPPLEMENTARY INFORMATION: Prior to the July 5 final rule's 
publication, the Pipeline and Hazardous Materials Safety Administration 
(PHMSA), the Department of Transportation (DOT) agency primarily 
responsible for developing and enforcing hazardous materials 
regulations, published its catch-up adjustments for civil penalties, 
including those for violations of 49 U.S.C. 5123(a)(3). The FAA is 
amending its catch-up adjustment for 49 U.S.C. 5123(a)(3) to harmonize 
it with PHMSA's.

Background

    On July 5, 2016, the FAA published an interim final rule titled 
``Revisions to the Civil Penalty Inflation Adjustment Tables'' (81 FR 
43463). The intent of that rule is to implement the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (FCPIAA), Public Law (Pub. 
L.) 101-410, as amended by the Debt Collection Improvement Act (DCIA) 
of 1996, Pub. L. 104-134, and the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (2015 Act), Pub. L. 114-74, 
codified at 28 U.S.C. 2461 note.
    The FCPIAA, DCIA, and the 2015 Act require Federal agencies to 
adjust minimum and maximum civil penalty amounts for inflation to 
preserve their deterrent impact. The 2015 Act amended the formula and 
frequency of inflation adjustments. It required an initial catch-up 
adjustment in the form of an interim final rule, followed by annual 
adjustments of penalty amounts. The amount of the adjustment must be 
made using a strict statutory formula that was discussed in the final 
rule and is corrected as indicated below.
    As mentioned above, the FAA's interim final rule was published on 
July 5, 2016, and included an inflation adjustment for civil penalties 
associated with hazardous materials training violations under 49 U.S.C. 
5123(a)(3). On June 29, 2016, prior to the FAA's civil penalty 
inflation adjustment publication, the Pipeline and Hazardous Materials 
Safety Administration (PHMSA), the DOT agency primarily responsible for 
developing and enforcing hazardous materials regulations, also 
published its catch-up adjustments for civil penalties, including those 
for violations of 49 U.S.C. 5123(a)(3). PHMSA, however, came up with a 
different adjustment to the minimum penalty for training than the FAA. 
PHMSA read technical amendments made to section 5123(a)(3) in 2012 to 
be adjusting the minimum penalty back down from a 2009 PHMSA inflation 
adjustment. See Moving Ahead for Progress in the 21st Century Act (MAP-
21), Pub. L. 112-141, 33010, 126 Stat. 405, 837, (2012); 74 FR 68701 
(Dec. 29, 2009). It therefore concluded that 2012 was the year the 
minimum penalty was established or adjusted. FAA concluded that 2005 
was the correct year upon which to base adjustments because Congress 
established the $450 minimum that year and did not change it in its 
2012 amendments. Compare Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Pub. L. 
109-59, 7120, 119 Stat. 1144, 1905 (2005) with MAP-21, 126 Stat. at 
837. Because PHMSA is the primary DOT agency in the area of hazardous 
materials safety, and because its calculation is reasonable, the FAA is 
correcting its catch-up adjustment to harmonize it with PHMSA's.
    The FAA is also making technical corrections to its interim final 
rule. First, it is correcting the effective date noted in the table 
included in 14 CFR 13.301(c), to reflect the correct effective date of 
August 5, 2016 (not August 1, 2016). Second, the word ``established'' 
is replacing the word ``set'' when used in reference to the ``catch-up 
adjustment'' formula provided by the 2015 Act to make the text of the 
interim final rule consistent with the statutory text of the 2015 Act. 
Finally, the FAA is correcting the reference to ``section 5123'' in the 
hazmat adjustment example for 49 U.S.C. 5123(a)(1), provided in the 
background section of the interim final rule, to specifically reference 
section 5123(a)(1).

Correction

    In FR Doc. 2016-7004, beginning on page 43463 in the Federal 
Register of July 5, 2016, make the following corrections:
    1. On page 43464, in the second column, under the heading 
``Background'', in the second paragraph,

[[Page 51080]]

correct the seventh line by replacing the word ``set'' with 
``established''.
    2. On page 43464, in the third column, correct the ninth line from 
the top by replacing the word ``set'' with ``established''.
    3. On page 43464, in the third column, correct subparagraph (1) by 
replacing the word ``set'' with ``established'' in both places it is 
used, replacing the word ``reset'' with ``adjusted'' and replacing the 
words ``Section 5123'' with ``Section 5123(a)(1)''.
    4. On page 43464, correct the heading of the second column of the 
table by replacing the word ``set'' with ``established''.
    5. On page 43464, correct the heading of the third column of the 
table by replacing the word ``set'' with ``established''.
    6. On page 43464, correct the second column of the table by 
replacing ``2005'' with ``2012'' in the third line (referencing 49 
U.S.C. Statute 5123(a)(3)).
    7. On page 43464, correct the fourth column of the table by 
replacing ``1.19397'' with ``1.02819'' in the third line (referencing 
49 U.S.C. Statute 5123(a)(3)).
    8. On page 43464, correct the fifth column of the table by 
replacing ``537'' with ``463'' in the third line (referencing 49 U.S.C. 
Statute 5123(a)(3)).


Sec.  13.301  [Corrected]

0
9. On page 43467, correct Sec.  13.301 by revising paragraph (c) to 
read as follows:
    (c) Minimum and maximum civil monetary penalties within the 
jurisdiction of the FAA are as follows:

                 Table of Minimum and Maximum Civil Monetary Penalty Amounts for Certain Violations Occurring on or After August 5, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  Maximum penalty
                                     Civil monetary penalty      Minimum penalty     New or adjusted minimum     amount when last      New or adjusted
   United States Code citation            description                amount               penalty amount          established or       maximum penalty
                                                                                                               adjusted by Congress         amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
49 U.S.C. 5123(a), subparagraph    Violation of hazardous     Deleted 7/6/2012....  N/A......................  $75,000 per           $77,114.
 (1).                               materials transportation                                                    violation, adjusted
                                    law.                                                                        7/6/2012.
49 U.S.C. 5123(a), subparagraph    Violation of hazardous     Deleted 7/6/2012....  N/A......................  $175,000 per          $179,933.
 (2).                               materials transportation                                                    violation, adjusted
                                    law resulting in death,                                                     7/6/2012.
                                    serious illness, severe
                                    injury, or substantial
                                    property destruction.
49 U.S.C. 5123(a), subparagraph    Violation of hazardous     $450 per violation,   $463.....................  $75,000 per           $77,114.
 (3).                               materials transportation   adjusted.                                        violation, adjusted
                                    law relating to training. 7/6/2012............                              7/6/2012.
49 U.S.C. 46301(a)(1)............  Violation by a person      N/A.................  N/A......................  $25,000 per           $32,140.
                                    other than an individual                                                    violation,
                                    or small business                                                           established 12/12/
                                    concern under 49 U.S.C.                                                     2003.
                                    46301(a)(1)(A) or (B).
49 U.S.C. 46301(a)(1)............  Violation by an airman     N/A.................  N/A......................  $1,100 per            $1,414.
                                    serving as an airman                                                        violation, adjusted
                                    under 49 U.S.C.                                                             12/12/2003.
                                    46301(a)(1)(A) or (B)
                                    (but not covered by
                                    46301(a)(5)(A) or (B).
49 U.S.C. 46301(a)(1)............  Violation by an            N/A.................  N/A......................  $1,100 per            $1,414.
                                    individual or small                                                         violation, adjusted
                                    business concern under                                                      12/12/2003.
                                    49 U.S.C. 46301(a)(1)(A)
                                    or (B) (but not covered
                                    in 49 U.S.C.
                                    46301(a)(5)).
49 U.S.C. 46301(a)(3)............  Violation of 49 U.S.C.     N/A.................  N/A......................  Increase above        No change.
                                    47107(b) (or any                                                            otherwise
                                    assurance made under                                                        applicable maximum
                                    such section) or 49                                                         amount not to
                                    U.S.C. 47133.                                                               exceed 3 times the
                                                                                                                amount of revenues
                                                                                                                that are used in
                                                                                                                violation of such
                                                                                                                section.
49 U.S.C. 46301(a)(5)(A).........  Violation by an            N/A.................  N/A......................  $10,000 per           $12,856.
                                    individual or small                                                         violation,
                                    business concern (except                                                    established 12/12/
                                    an airman serving as an                                                     2003.
                                    airman) under 49 U.S.C.
                                    46301(a)(5)(A)(i) or
                                    (ii).
49 U.S.C. 46301(a)(5)(B)(i)......  Violation by an            N/A.................  N/A......................  $10,000 per           $12,856.
                                    individual or small                                                         violation,
                                    business concern related                                                    established 12/12/
                                    to the transportation of                                                    2003.
                                    hazardous materials.
49 U.S.C. 46301(a)(5)(B)(ii).....  Violation by an            N/A.................  N/A......................  $10,000 per           $12,856.
                                    individual or small                                                         violation,
                                    business concern related                                                    established 12/12/
                                    to the registration or                                                      2003.
                                    recordation under 49
                                    U.S.C. chapter 441, of
                                    an aircraft not used to
                                    provide air
                                    transportation.

[[Page 51081]]

 
49 U.S.C. 46301(a)(5)(B)(iii)....  Violation by an            N/A.................  N/A......................  $10,000 per           $12,856.
                                    individual or small                                                         violation,
                                    business concern of 49                                                      established 12/12/
                                    U.S.C. 44718(d),                                                            2003.
                                    relating to limitation
                                    on construction or
                                    establishment of
                                    landfills.
49 U.S.C. 46301(a)(5)(B)(iv).....  Violation by an            N/A.................  N/A......................  $10,000 per           $12,856.
                                    individual or small                                                         violation,
                                    business concern of 49                                                      established 12/12/
                                    U.S.C. 44725, relating                                                      2003.
                                    to the safe disposal of
                                    life-limited aircraft
                                    parts.
49 U.S.C. 46301(b)...............  Tampering with a smoke     N/A.................  N/A......................  $2,000 per            $4,126.
                                    alarm device.                                                               violation,
                                                                                                                established 12/22/
                                                                                                                1987.
49 U.S.C. 46302..................  Knowingly providing false  N/A.................  N/A......................  $10,000 per           $22,587.
                                    information about                                                           violation,
                                    alleged violation                                                           established 10/12/
                                    involving the special                                                       1984.
                                    aircraft jurisdiction of
                                    the United States.
49 U.S.C. 46318..................  Interference with cabin    N/A.................  N/A......................  $25,000, established  $34,172.
                                    or flight crew.                                                             4/5/2000.
49 U.S.C. 46319..................  Permanent closure of an    N/A.................  N/A......................  $10,000 per day,      $12,856.
                                    airport without                                                             established 12/12/
                                    providing sufficient                                                        2003.
                                    notice.
49 U.S.C. 47531..................  Violation of 49 U.S.C.     N/A.................  N/A......................  See 49 U.S.C.         No change.
                                    47528-47530, relating to                                                    46301(a)(1)(A) and
                                    the prohibition of                                                          (a)(5), above.
                                    operating certain
                                    aircraft not complying
                                    with stage 3 noise
                                    levels.
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Issued under authority provided by 28 U.S.C. 2461 and 49 U.S.C. 
106(f), 44701(a), and 46301 in Washington, DC, on July 26, 2016.
Lirio Liu,
Director, Office of Rulemaking.
[FR Doc. 2016-18514 Filed 8-2-16; 8:45 am]
 BILLING CODE 4910-13-P