81 FR 52763 - Revisions to Civil Penalty Amounts
DEPARTMENT OF TRANSPORTATION
Office of the Secretary Federal Register Volume 81, Issue 154 (August 10, 2016)
Office of the Secretary
Federal Register Volume 81, Issue 154 (August 10, 2016)
| Page Range | 52763-52766 | |
| FR Document | 2016-19003 |
[Federal Register Volume 81, Number 154 (Wednesday, August 10, 2016)] [Rules and Regulations] [Pages 52763-52766] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-19003] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION Office of the Secretary 14 CFR Part 383 RIN 2105-AE51 Revisions to Civil Penalty Amounts AGENCY: Office of the Secretary (OST), Department of Transportation (DOT). ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Department of Transportation is issuing an interim final rule to adjust for inflation the maximum civil penalty amounts for violations of certain aviation economic statutes and the rules and orders issued pursuant to these statutes. DATES: The rule is effective August 10, 2016. FOR FURTHER INFORMATION CONTACT: Stuart A. Hindman, Trial Attorney, Office of Aviation Enforcement and Proceedings, U.S. Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590, 202- 366-9342, 202-366-7152 (fax), [email protected] (email). SUPPLEMENTARY INFORMATION: I. Regulatory Information DOT is promulgating this interim final rule to ensure that the maximum civil penalty liability amounts set forth in 14 CFR part 383 that may be assessed by the Department as a result of violations of certain economic provisions of Title 49 of the United States Code reflect the statutorily mandated maximums as adjusted for inflation. Pursuant to section 701 of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act), DOT is required to promulgate a ``catch-up adjustment'' through an interim final rule. Public Law 114-74. The 2015 Act requires the Department to adjust certain civil penalty amounts and provides clear direction for how to adjust the civil penalties, which leaves the agency little room for discretion. By operation of the 2015 Act, DOT must publish the catch-up adjustment by July 1, 2016, and the new levels must take effect no later than August 1, 2016. For these reasons, pursuant to the 2015 Act and 5 U.S.C. 553(b)(3)(B), 553(d)(3), DOT finds that good cause exists for immediate implementation of this interim final rule without prior notice and comment and with an immediate effective date. II. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) Adjust the level of civil monetary penalties with an initial ``catch-up'' adjustment through an interim final rule (IFR); and (2) make subsequent annual adjustments for inflation. The method of calculating inflation adjustments in the 2015 Act differs substantially from the methods used in past inflation adjustment rulemakings conducted pursuant to the Inflation Adjustment Act. Previously, adjustments to civil penalty amounts were conducted under requirements that mandated significant rounding of figures. For example, a penalty increase [[Page 52764]] 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 inflation had increased but not by a large enough factor. 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 requirements; now, penalty amounts are simply rounded to the nearest $1. While this results in penalty amounts that are no longer round numbers, it does ensure that penalty amounts 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 made 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 originally enacted by Congress or last adjusted by statute or regulation, other than pursuant to the Inflation Adjustment Act. DOT has determined that the maximum levels for the civil penalties that may be assessed for violations of aviation economic statutes and regulations pursuant to 14 CFR part 383 were established by Vision 100--Century of Aviation Reauthorization Act of 2003 (``Vision 100'') (Section 503, Pub. L. 108-176; 117 Stat. 2490, December 12, 2003), and have not been adjusted since, excluding Inflation Adjustment Act revisions. III. Completing the Catch-Up Adjustment The table below shows the penalties that we are increasing pursuant to the 2015 Act. These calculations follow guidance by the Office of Management and Budget (OMB), M-16-06, ``Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,'' dated Feb. 24, 2016. In the first column, we have provided a description of the penalty. In the second column (``Citation,'') we have provided the United States Code (U.S.C.) statutory citation for the provision that authorizes that penalty. In the third column (``Current Penalty''), we have listed the existing penalty, and in the fourth column (``Baseline Penalty''), we have provided the amount of the penalty as enacted by Congress or changed through a mechanism other than pursuant to the Inflation Adjustment Act, which in the case of all five of these adjustments is by Vision 100. The multiplier that we have used to adjust from the CPI- U of the year of this last adjustment (2003) to the CPI-U for the current year was provided by the Office of Management and Budget; it is 1.28561. Multiplying the baseline penalty by the multiplier provides the ``New Penalty'' listed in the final column, rounded to the nearest dollar. In accordance with the 2015 Act and OMB memorandum M-16-06, however, DOT did not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015. The adjusted penalty is to be the lesser of either the preliminary new penalty arrived at via the multiplier or an amount equal to 250% of the current penalty. In the case of these five penalties, the lesser number was the figure that resulted from applying the multiplier. Where applicable, DOT has also made conforming edits to regulatory text. In addition, we are deleting a reference to the Debt Collection Improvement Act of 1996 in section 383.1(b) of the regulatory text. The Debt Collection Improvement Act of 1996 amended the Federal Civil Penalties Inflation Adjustment Act of 1990. Additionally, in the regulatory text for section 383.1(b) we are deleting the reference to the Inflation Adjustment Act because it has been amended by the 2015 Act. Pursuant to the 2015 Act, in the event a violation took place prior to the effective date of the new penalty level, and the DOT assessed a penalty after the effective date, the new penalty level shall be assessed in a manner consistent with applicable law. The 2015 Act does not alter DOT's statutory authority, to the extent it exists, to assess penalties below the maximum level. As the 2015 Act applies to penalties assessed after the effective date of the applicable adjustment, the 2015 Act adjusts penalties prospectively. The 2015 Act does not retrospectively change previously assessed or enforced penalties that DOT is actively collecting or has collected. ---------------------------------------------------------------------------------------------------------------- Current Base line Description Citation penalty penalty New penalty ---------------------------------------------------------------------------------------------------------------- General civil penalty for 49 U.S.C. 46301(a)(1)............ $27,500 $25,000 $32,140 violations of certain aviation economic regulations and statutes. General civil penalty for 49 U.S.C. 46301(a)(1)............ 1,100 1,100 1,414 violations of certain aviation economic regulations and statutes involving an individual or small business concern. Civil penalties for 49 U.S.C. 46301(a)(5)(A)......... 11,000 10,000 12,856 individuals or small businesses for violations of most provisions of Chapter 401 of Title 49, including the anti-discrimination provisions of sections 40127 and 41705 and rules and orders issued pursuant to these provisions. Civil penalties for 49 U.S.C. 46301(a)(5)(C)......... 5,500 5,000 6,428 individuals or small businesses for violations of 49 U.S.C. 41719 and rules and orders issued pursuant to that provision. Civil penalties for 49 U.S.C. 46301(a)(5)(D)......... 2,750 2,500 3,214 individuals or small businesses for violations of 49 U.S.C. 41712 or consumer protection rules and orders issued pursuant to that provision. ---------------------------------------------------------------------------------------------------------------- [[Page 52765]] Regulatory Analysis and Notices A. Executive Orders 12866 and 13563 and DOT Regulatory Policies and Procedures This interim final rule has been evaluated in accordance with existing policies and procedures and is considered not significant under Executive Orders 12866 and 13563 or 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. The increase of the maximum civil penalty will impact entities and individuals that are found to be in violation of certain aviation economic and consumer protection statutes, 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. Furthermore, the economic impact of the interim final rule is expected to be minimal to the extent that preparation of a regulatory evaluation is not warranted. B. Regulatory Flexibility Analysis The Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.) 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 revision of the civil penalty amount will raise potential penalties for individuals and small businesses with regard to violations of certain aviation economic regulations and statutes or consumer protection rules and orders. Because the largest increase to the maximum civil penalty affecting small entities is only $2,856, 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. In addition, DOT has determined the RFA does not apply to this rulemaking. The 2015 Inflation Act requires DOT to publish an interim final rule and does not require DOT 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. C. Executive Order 13132 (Federalism) This interim final rule has been analyzed in accordance with the principles and criteria contained in Executive Order 13132 (``Federalism''). This regulation has no substantial direct effects on the States, the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. It does not contain any provision that imposes substantial direct compliance costs on State and local governments. It does not contain any new provision that preempts state law, because states are already preempted from regulating in this area under the Airline Deregulation Act, 49 U.S.C. 41713. Therefore, the consultation and funding requirements of Executive Order 13132 do not apply. D. Executive Order 13084 This rule has been analyzed in accordance with the principles and criteria contained in Executive Order 13084 (``Consultation and Coordination with Indian Tribal Governments''). Because none of the measures in the rule will significantly or uniquely affect the communities of the Indian tribal governments or impose substantial direct compliance costs on them, the funding and consultation requirements of Executive Order 13084 do not apply. E. Paperwork Reduction Act Under the Paperwork Reduction Act, before an agency submits a proposed collection of information to OMB for approval, it must publish a document in the Federal Register providing notice of and a 60-day comment period on, and otherwise consult with members of the public and affected agencies concerning, each proposed collection of information. This rule imposes no new information reporting or record keeping necessitating clearance by the Office of Management and Budget. F. National Environmental Policy Act The Department has analyzed the environmental impacts of this interim final rule pursuant to the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and has determined that it is categorically excluded pursuant to DOT Order 5610.1C, Procedures for Considering Environmental Impacts (44 FR 56420, Oct. 1, 1979). Categorical exclusions are actions identified in an agency's NEPA implementing procedures that do not normally have a significant impact on the environment and therefore do not require either an environmental assessment (EA) or environmental impact statement (EIS). See 40 CFR 1508.4. In analyzing the applicability of a categorical exclusion, the agency must also consider whether extraordinary circumstances are present that would warrant the preparation of an EA or EIS. Id. Paragraph 3.c.6.i of DOT Order 5610.1C categorically excludes ``[a]ctions relating to consumer protection, including regulations.'' The purpose of this rulemaking is to adjust the maximum civil penalties for violations of certain aviation consumer protection statutes, regulations, and orders. The Department does not anticipate any environmental impacts, and there are no extraordinary circumstances present in connection with this rulemaking. G. Unfunded Mandates Reform Act The Department analyzed the interim final rule under the factors in the Unfunded Mandates Reform Act of 1995. The Department considered whether the rule includes a federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100,000,000 or more (adjusted annually for inflation) in any one year. The Department has determined that this interim final rule will not result in such expenditures. Accordingly, this interim final rule is not subject to the Unfunded Mandates Reform Act. List of Subjects in 14 CFR Part 383 Administrative practice and procedure, Penalties. For the reasons stated in the preamble, the Office of the Secretary of Transportation amends 14 CFR part 383 as set forth below: PART 383--CIVIL PENALTIES 0 1. The authority citation for 14 CFR Part 383 is revised to read as follows: Authority: Sec. 701, Pub. L. 114-74, 129 Stat. 584; Sec. 503, Pub. L. 108-176, 117 Stat. 2490; Pub. L. 101-410, 104 Stat. 890; Sec. 31001, Pub. L. 104-134. 0 2. Section 383.1 is revised to read as follows: [[Page 52766]] Sec. 383.1 Purpose and periodic adjustment. (a) Purpose. This part adjusts the civil penalty liability amounts prescribed in 49 U.S.C. 46301(a) for inflation in accordance with the Act cited in paragraph (b) of this section. (b) Periodic Adjustment. DOT will periodically adjust the maximum civil penalties set forth in 49 U.S.C. 46301 and this part as required by the Federal Civil Penalties Inflation Adjustment Act of 1990 as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. 0 3. Section 383.2 is revised to read as follows: Sec. 383.2 Amount of penalty. Civil penalties payable to the U.S. Government for violations of Title 49, Chapters 401 through 421, pursuant to 49 U.S.C. 46301(a), are as follows: (a) A general civil penalty of not more than $32,140 (or $1,414 for individuals or small businesses) applies to violations of statutory provisions and rules or orders issued under those provisions, other than those listed in paragraph (b) of this section, (see 49 U.S.C. 46301(a)(1)); (b) With respect to small businesses and individuals, notwithstanding the general $1,414 civil penalty, the following civil penalty limits apply: (1) A maximum civil penalty of $12,856 applies for violations of most provisions of Chapter 401, including the anti-discrimination provisions of sections 40127 (general provision), and 41705 (discrimination against the disabled) and rules and orders issued pursuant to those provisions (see 49 U.S.C. 46301(a)(5)(A)); (2) A maximum civil penalty of $6,428 applies for violations of section 41719 and rules and orders issued pursuant to that provision (see 49 U.S.C. 46301(a)(5)(C)); and (3) A maximum civil penalty of $3,214 applies for violations of section 41712 or consumer protection rules or orders (see 49 U.S.C. 46301(a)(5)(D)). Issued in Washington, DC, under authority delegated at 49 CFR 1.27(n), on: August 5, 2016. Molly J. Moran, Acting General Counsel. [FR Doc. 2016-19003 Filed 8-9-16; 8:45 am] BILLING CODE 4910-9X-P
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is incorporated by reference in 14 CFR Lists of Subjects in 14 CFR Part 71 FOR FURTHER INFORMATION CONTACT:
part 71.1. The Class E airspace Airspace, Incorporation by reference, Stuart A. Hindman, Trial Attorney,
designation listed in this document will Navigation (air). Office of Aviation Enforcement and
be published subsequently in the Order. Proceedings, U.S. Department of
Adoption of the Amendment Transportation, 1200 New Jersey Ave.
Availability and Summary of
In consideration of the foregoing, the SE., Washington, DC 20590, 202–366–
Documents for Incorporation by
Federal Aviation Administration 9342, 202–366–7152 (fax),
Reference
amends 14 CFR part 71 as follows: stuart.hindman@dot.gov (email).
This document amends FAA Order SUPPLEMENTARY INFORMATION:
7400.9Z, Airspace Designations and PART 71—DESIGNATION OF CLASS A,
Reporting Points, dated August 6, 2015, I. Regulatory Information
B, C, D, AND E AIRSPACE AREAS; AIR
and effective September 15, 2015. FAA TRAFFIC SERVICE ROUTES; AND DOT is promulgating this interim
Order 7400.9Z is publicly available as REPORTING POINTS final rule to ensure that the maximum
listed in the ADDRESSES section of this civil penalty liability amounts set forth
document. FAA Order 7400.9Z lists ■ 1. The authority citation for Part 71 in 14 CFR part 383 that may be assessed
Class A, B, C, D, and E airspace areas, continues to read as follows: by the Department as a result of
air traffic service routes, and reporting Authority: 49 U.S.C. 106(f), 106(g); 40103, violations of certain economic
points. 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, provisions of Title 49 of the United
1959–1963 Comp., p. 389. States Code reflect the statutorily
The Rule
mandated maximums as adjusted for
This amendment to Title 14, Code of § 71.1 [Amended] inflation. Pursuant to section 701 of the
Federal Regulations (14 CFR) part 71 ■ 2. The incorporation by reference in Federal Civil Penalties Inflation
removes the Class E airspace area 14 CFR 71.1 of FAA Order 7400.9Z, Adjustment Act Improvements Act of
extending upward from 700 feet above Airspace Designations and Reporting 2015 (the 2015 Act), DOT is required to
the surface within a 6.3-mile radius of Points, dated August 6, 2015, and promulgate a ‘‘catch-up adjustment’’
Byerley Airport, Lake Providence, LA. effective September 15, 2015, is through an interim final rule. Public
The controlled airspace is no longer amended as follows: Law 114–74. The 2015 Act requires the
necessary due to the decommissioning Department to adjust certain civil
of the NDB and cancellation of the NDB Paragraph 6005 Class E Airspace Areas penalty amounts and provides clear
approach at the airport. Extending Upward From 700 Feet or More
direction for how to adjust the civil
Above the Surface of the Earth.
Regulatory Notices and Analyses penalties, which leaves the agency little
* * * * * room for discretion. By operation of the
The FAA has determined that this ASW LA E5 Lake Providence, LA 2015 Act, DOT must publish the catch-
regulation only involves an established (Removed) up adjustment by July 1, 2016, and the
body of technical regulations for which new levels must take effect no later than
frequent and routine amendments are Issued in Fort Worth, Texas, on July 28, August 1, 2016. For these reasons,
necessary to keep them operationally 2016.
pursuant to the 2015 Act and 5 U.S.C.
current, is non-controversial and Walter Tweedy, 553(b)(3)(B), 553(d)(3), DOT finds that
unlikely to result in adverse or negative Acting Manager, Operations Support Group, good cause exists for immediate
comments. It, therefore: (1) Is not a ATO Central Service Center. implementation of this interim final rule
‘‘significant regulatory action’’ under [FR Doc. 2016–18771 Filed 8–9–16; 8:45 am] without prior notice and comment and
Executive Order 12866; (2) is not a BILLING CODE 4910–13–P with an immediate effective date.
‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44 II. Background
FR 11034; February 26, 1979); and (3) DEPARTMENT OF TRANSPORTATION On November 2, 2015, the President
does not warrant preparation of a signed into law the Federal Civil
Regulatory Evaluation as the anticipated Office of the Secretary Penalties Inflation Adjustment Act
impact is so minimal. Since this is a Improvements Act of 2015, which
routine matter that only affects air traffic 14 CFR Part 383 amended the Federal Civil Penalties
procedures and air navigation, it is RIN 2105–AE51 Inflation Adjustment Act of 1990 (the
certified that this rule, when Inflation Adjustment Act), to improve
promulgated, does not have a significant Revisions to Civil Penalty Amounts the effectiveness of civil monetary
economic impact on a substantial penalties and to maintain their deterrent
AGENCY: Office of the Secretary (OST), effect. The 2015 Act requires agencies
number of small entities under the
Department of Transportation (DOT). to: (1) Adjust the level of civil monetary
criteria of the Regulatory Flexibility Act.
ACTION: Interim final rule. penalties with an initial ‘‘catch-up’’
Environmental Review adjustment through an interim final rule
The FAA has determined that this SUMMARY: In accordance with the
(IFR); and (2) make subsequent annual
action qualifies for categorical exclusion Federal Civil Penalties Inflation
adjustments for inflation.
under the National Environmental Adjustment Act Improvements Act of The method of calculating inflation
Policy Act in accordance with FAA 2015, the Department of Transportation adjustments in the 2015 Act differs
Order 1050.1F, ‘‘Environmental is issuing an interim final rule to adjust substantially from the methods used in
Impacts: Policies and Procedures,’’ for inflation the maximum civil penalty past inflation adjustment rulemakings
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paragraph 5–6.5.a. This airspace action amounts for violations of certain conducted pursuant to the Inflation
is not expected to cause any potentially aviation economic statutes and the rules Adjustment Act. Previously,
significant environmental impacts, and and orders issued pursuant to these adjustments to civil penalty amounts
no extraordinary circumstances exist statutes. were conducted under requirements
that warrant preparation of an DATES: The rule is effective August 10, that mandated significant rounding of
environmental assessment. 2016. figures. For example, a penalty increase
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Regulatory Analysis and Notices Comply with the Regulatory Flexibility Environmental Policy Act of 1969
Act (2012), provides that: (NEPA) (42 U.S.C. 4321 et seq.) and has
A. Executive Orders 12866 and 13563
If, under the APA or any rule of general determined that it is categorically
and DOT Regulatory Policies and
applicability governing federal grants to state excluded pursuant to DOT Order
Procedures
and local governments, the agency is 5610.1C, Procedures for Considering
This interim final rule has been required to publish a general notice of Environmental Impacts (44 FR 56420,
evaluated in accordance with existing proposed rulemaking (NPRM), the RFA must Oct. 1, 1979). Categorical exclusions are
policies and procedures and is be considered [citing 5 U.S.C. 604(a)]. . . . If actions identified in an agency’s NEPA
considered not significant under an NPRM is not required, the RFA does not implementing procedures that do not
Executive Orders 12866 and 13563 or apply. normally have a significant impact on
DOT’s Regulatory Policies and Therefore, because the 2015 Inflation the environment and therefore do not
Procedures; therefore, the rule has not Act does not require an NPRM for this require either an environmental
been reviewed by the Office of rulemaking, the RFA does not apply. assessment (EA) or environmental
Management and Budget (OMB) under impact statement (EIS). See 40 CFR
Executive Order 12866. C. Executive Order 13132 (Federalism) 1508.4. In analyzing the applicability of
The increase of the maximum civil This interim final rule has been a categorical exclusion, the agency must
penalty will impact entities and analyzed in accordance with the also consider whether extraordinary
individuals that are found to be in principles and criteria contained in circumstances are present that would
violation of certain aviation economic Executive Order 13132 (‘‘Federalism’’). warrant the preparation of an EA or EIS.
and consumer protection statutes, rules, This regulation has no substantial direct Id. Paragraph 3.c.6.i of DOT Order
and orders. There is no direct cost to effects on the States, the relationship 5610.1C categorically excludes
any regulated entity or individual between the national government and ‘‘[a]ctions relating to consumer
unless the entity or individual is found the States, or the distribution of power protection, including regulations.’’ The
to have committed a violation. and responsibilities among the various purpose of this rulemaking is to adjust
Furthermore, the economic impact of levels of government. It does not contain the maximum civil penalties for
the interim final rule is expected to be any provision that imposes substantial violations of certain aviation consumer
minimal to the extent that preparation direct compliance costs on State and protection statutes, regulations, and
of a regulatory evaluation is not local governments. It does not contain orders. The Department does not
warranted. any new provision that preempts state anticipate any environmental impacts,
B. Regulatory Flexibility Analysis law, because states are already and there are no extraordinary
preempted from regulating in this area circumstances present in connection
The Regulatory Flexibility Act of 1980 under the Airline Deregulation Act, 49 with this rulemaking.
(5 U.S.C. 601, et seq.) requires an U.S.C. 41713. Therefore, the
assessment of the impact of proposed G. Unfunded Mandates Reform Act
consultation and funding requirements
and final rules on small entities unless of Executive Order 13132 do not apply. The Department analyzed the interim
the agency certifies that the proposed final rule under the factors in the
regulation will not have a significant D. Executive Order 13084 Unfunded Mandates Reform Act of
economic impact on a substantial This rule has been analyzed in 1995. The Department considered
number of small entities. An air carrier accordance with the principles and whether the rule includes a federal
or a foreign air carrier is a small criteria contained in Executive Order mandate that may result in the
business if it provides air transportation 13084 (‘‘Consultation and Coordination expenditure by State, local, and tribal
only with small aircraft (i.e., aircraft with Indian Tribal Governments’’). governments, in the aggregate, or by the
with up to 60 seats/18,000 pound Because none of the measures in the private sector, of $100,000,000 or more
payload capacity). See 14 CFR 399.73. rule will significantly or uniquely affect (adjusted annually for inflation) in any
The revision of the civil penalty the communities of the Indian tribal one year. The Department has
amount will raise potential penalties for governments or impose substantial determined that this interim final rule
individuals and small businesses with direct compliance costs on them, the will not result in such expenditures.
regard to violations of certain aviation funding and consultation requirements Accordingly, this interim final rule is
economic regulations and statutes or of Executive Order 13084 do not apply. not subject to the Unfunded Mandates
consumer protection rules and orders. Reform Act.
Because the largest increase to the E. Paperwork Reduction Act
maximum civil penalty affecting small Under the Paperwork Reduction Act, List of Subjects in 14 CFR Part 383
entities is only $2,856, the aggregate before an agency submits a proposed Administrative practice and
economic impact of this rulemaking on collection of information to OMB for procedure, Penalties.
small entities should be minimal and approval, it must publish a document in For the reasons stated in the
would only be borne by those entities the Federal Register providing notice of preamble, the Office of the Secretary of
found in violation of the regulations. and a 60-day comment period on, and Transportation amends 14 CFR part 383
Accordingly, I hereby certify that this otherwise consult with members of the as set forth below:
action will not have a significant public and affected agencies concerning,
economic impact on a substantial each proposed collection of information. PART 383—CIVIL PENALTIES
number of small entities. This rule imposes no new information
In addition, DOT has determined the reporting or record keeping ■ 1. The authority citation for 14 CFR
RFA does not apply to this rulemaking. necessitating clearance by the Office of Part 383 is revised to read as follows:
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The 2015 Inflation Act requires DOT to Management and Budget. Authority: Sec. 701, Pub. L. 114–74, 129
publish an interim final rule and does Stat. 584; Sec. 503, Pub. L. 108–176, 117 Stat.
not require DOT to complete notice and F. National Environmental Policy Act 2490; Pub. L. 101–410, 104 Stat. 890; Sec.
comment procedures under the APA. The Department has analyzed the 31001, Pub. L. 104–134.
The Small Business Administration’s A environmental impacts of this interim ■ 2. Section 383.1 is revised to read as
Guide for Government Agencies: How to final rule pursuant to the National follows:
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§ 383.1 Purpose and periodic adjustment. DEPARTMENT OF THE TREASURY the special benefit. An agency that seeks
(a) Purpose. This part adjusts the civil to impose a user fee for government-
Internal Revenue Service provided services must calculate the full
penalty liability amounts prescribed in
cost of providing those services, review
49 U.S.C. 46301(a) for inflation in 26 CFR Part 300 user fees biennially, and update them as
accordance with the Act cited in necessary.
paragraph (b) of this section. [TD 9781]
Section 6109(a)(4) of the Internal
(b) Periodic Adjustment. DOT will RIN 1545–BN02 Revenue Code (Code) authorizes the
periodically adjust the maximum civil Secretary to prescribe regulations for the
penalties set forth in 49 U.S.C. 46301 Preparer Tax Identification Number inclusion of a tax return preparer’s
and this part as required by the Federal (PTIN) User Fee Update identifying number on a return,
Civil Penalties Inflation Adjustment Act AGENCY: Internal Revenue Service (IRS), statement, or other document required
of 1990 as amended by the Federal Civil Treasury. to be filed with the IRS. On September
Penalties Inflation Adjustment Act 30, 2010, the Treasury Department and
ACTION: Final regulations and removal of
Improvements Act of 2015. the IRS published final regulations
temporary regulations.
under section 6109 (REG–134235–08) in
■ 3. Section 383.2 is revised to read as SUMMARY: This document contains final the Federal Register (TD 9501) (75 FR
follows: regulations relating to the imposition of 60315) (PTIN regulations) to provide
certain user fees on tax return preparers. that, for returns or claims for refund
§ 383.2 Amount of penalty. filed after December 31, 2010, the
The final regulations supersede and
Civil penalties payable to the U.S. adopt the text of temporary regulations identifying number of a tax return
Government for violations of Title 49, that reduced the user fee to apply for or preparer is the individual’s PTIN or
Chapters 401 through 421, pursuant to renew a preparer tax identification such other number prescribed by the
49 U.S.C. 46301(a), are as follows: number (PTIN) from $50 to $33. The IRS in forms, instructions, or other
final regulations affect individuals who appropriate guidance. The PTIN
(a) A general civil penalty of not more regulations require a tax return preparer
apply for or renew a PTIN. The
than $32,140 (or $1,414 for individuals who prepares or who assists in
Independent Offices Appropriations Act
or small businesses) applies to preparing all or substantially all of a tax
of 1952 authorizes the charging of user
violations of statutory provisions and fees. return or claim for refund after
rules or orders issued under those December 31, 2010 to have a PTIN.
DATES: Effective Date: These regulations
provisions, other than those listed in Final regulations (REG–139343–08)
are effective on September 9, 2016.
paragraph (b) of this section, (see 49 published in the Federal Register (TD
Applicability Date: For date of
U.S.C. 46301(a)(1)); 9503) (75 FR 60316) on September 30,
applicability, see § 300.13(d).
(b) With respect to small businesses 2010, established a $50 user fee to apply
FOR FURTHER INFORMATION CONTACT: for or renew a PTIN. The ability to
and individuals, notwithstanding the Concerning the final regulations, Hollie prepare tax returns and claims for
general $1,414 civil penalty, the M. Marx at (202) 317–6844; concerning refund for compensation is a special
following civil penalty limits apply: cost methodology, Eva J. Williams at benefit, for which the IRS may charge a
(1) A maximum civil penalty of (202) 803–9728 (not toll-free numbers). user fee to recover the full costs of
$12,856 applies for violations of most SUPPLEMENTARY INFORMATION: providing the special benefit.
provisions of Chapter 401, including the Background and Summary of Pursuant to the guidelines in OMB
anti-discrimination provisions of Circular A–25, the IRS recalculated its
Comments
sections 40127 (general provision), and cost of providing services under the
41705 (discrimination against the This document contains final PTIN application and renewal process
disabled) and rules and orders issued regulations relating to the imposition of and determined that the full cost of
a user fee to apply for or renew a PTIN. administering the PTIN program going
pursuant to those provisions (see 49
The Independent Offices forward is reduced from $50 to $33 per
U.S.C. 46301(a)(5)(A));
Appropriations Act of 1952 (IOAA), application or renewal. On October 30,
(2) A maximum civil penalty of which is codified at 31 U.S.C. 9701, 2015, the Treasury Department and the
$6,428 applies for violations of section authorizes agencies to prescribe IRS published in the Federal Register
41719 and rules and orders issued regulations that establish user fees for (80 FR 66851–01) a notice of proposed
pursuant to that provision (see 49 U.S.C. services provided by the agency. The rulemaking by cross-reference to
46301(a)(5)(C)); and charges must be fair and must be based temporary regulations (REG–121496–15)
(3) A maximum civil penalty of on the costs to the government, the proposing amendments to regulations
$3,214 applies for violations of section value of the service to the recipient, the under 26 CFR part 300. On the same
41712 or consumer protection rules or public policy or interest served, and date, the Treasury Department and the
orders (see 49 U.S.C. 46301(a)(5)(D)). other relevant facts. The IOAA provides IRS published in the Federal Register
that regulations implementing user fees (80 FR 66792–01) temporary regulations
Issued in Washington, DC, under authority are subject to policies prescribed by the (TD 9742) that reduced the amount of
delegated at 49 CFR 1.27(n), on: August 5, President; these policies are set forth in the user fee to obtain or renew a PTIN
2016. the Office of Management and Budget from $50 to $33 per original or renewal
Molly J. Moran, Circular A–25, 58 FR 38142 (July 15, application. Five electronic public
Acting General Counsel. 1993) (OMB Circular A–25). comments were submitted under the
Lhorne on DSK30JT082PROD with RULES
[FR Doc. 2016–19003 Filed 8–9–16; 8:45 am] Under OMB Circular A–25, federal regulation number for the proposed
BILLING CODE 4910–9X–P
agencies that provide services that regulations, but their contents related to
confer special benefits on identifiable issues other than a user fee for applying
recipients beyond those accruing to the for or renewing a PTIN and are not
general public are to establish user fees relevant to these regulations. The
that recover the full cost of providing comments are available for public
VerDate Sep<11>2014 13:57 Aug 09, 2016 Jkt 238001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\10AUR1.SGM 10AUR1](https://thefederalregister.org/doc/81_FR_52917/page/4.svg)
Document Created: 2016-08-10 01:59:28
Document Modified: 2016-08-10 01:59:28
| 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 | The rule is effective August 10, 2016. | |
| Contact | Stuart A. Hindman, Trial Attorney, Office of Aviation Enforcement and Proceedings, U.S. Department of Transportation, 1200 New Jersey Ave. SE., Washington, DC 20590, 202- 366-9342, 202-366-7152 (fax), [email protected] (email). | |
| FR Citation | 81 FR 52763 | |
| RIN Number | 2105-AE51 | |
| CFR Associated | Administrative Practice and Procedure and Penalties |
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