82_FR_18948 82 FR 18871 - Annual Civil Monetary Penalties Adjustment

82 FR 18871 - Annual Civil Monetary Penalties Adjustment

DEPARTMENT OF TRANSPORTATION
Maritime Administration

Federal Register Volume 82, Issue 77 (April 24, 2017)

Page Range18871-18873
FR Document2017-08198

The Maritime Administration (MARAD) is updating its regulations to reflect required annual inflation-related increases to the civil monetary penalties in its regulations, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015. This final rule adjusts civil penalty amounts for violations of procedures related to the American Fisheries Act, certain regulated transactions involving documented vessels, the Automated Mutual Assistance Vessel Rescue program (AMVER) and the Defense Production Act. MARAD finds that good cause exists for immediate implementation of this final rule because prior notice and comment are unnecessary, per the specific provisions of the 2015 Act.

Federal Register, Volume 82 Issue 77 (Monday, April 24, 2017)
[Federal Register Volume 82, Number 77 (Monday, April 24, 2017)]
[Rules and Regulations]
[Pages 18871-18873]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08198]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Parts 221, 307, 340, and 356

RIN 2133-AB89


Annual Civil Monetary Penalties Adjustment

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Maritime Administration (MARAD) is updating its 
regulations to reflect required annual inflation-related increases to 
the civil monetary penalties in its regulations, pursuant to the 
Federal Civil Penalties Inflation Adjustment Act Improvement Act of 
2015. This final rule adjusts civil penalty amounts for violations of 
procedures related to the American Fisheries Act, certain regulated 
transactions involving documented vessels, the Automated Mutual 
Assistance Vessel Rescue program (AMVER) and the Defense Production 
Act.
    MARAD finds that good cause exists for immediate implementation of 
this final rule because prior notice and comment are unnecessary, per 
the specific provisions of the 2015 Act.

DATES: This rule is effective May 4, 2017.

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

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Sec. 701 of Pub. L. 114-74) (the ``2015 Act''), which is 
intended to improve the effectiveness of civil monetary penalties and 
to maintain the deterrent effect of such penalties, requires agencies 
to adjust the civil monetary penalties for inflation annually.

II. Administrative Procedures Act

    Generally, agencies may promulgate final rules only after issuing a 
notice of proposed rulemaking and providing an opportunity for public 
comment under procedures required by the APA, as provided in 5 U.S.C. 
553(b) and (c). The APA, in 5 U.S.C. 553(b)(3)(B), provides an 
exception from these requirements when notice and public comment 
procedures are ``impracticable, unnecessary, or contrary to the public 
interest.'' MARAD finds that prior notice and comment to this civil 
penalty adjustment is unnecessary because section 4 of the 2015 Act 
specifically requires the annual adjustments to be accomplished through 
final rule without notice and comment.
    Also pursuant to the APA (5 U.S.C. 553(d)(3)), the rule will be 
effective 10 days after publication in the Federal Register. Delaying 
the effective date for 30 days after publication would be contrary to 
the direction provided in the 2015 Act, which states that annual 
adjustments be made by January 15th of each year. As this final rule is 
already past that deadline, further delay would be contrary to the 
public interest.

III. Regulatory History

    On June 30, 2016, MARAD published an interim final rule using an 
initial ``catch up'' adjustment, as required by section 4 of the 2015 
Act (81 FR 41453). Just like this final rule, the interim final rule 
made adjustments to civil penalty amounts for violations of procedures 
related to the American Fisheries Act, certain regulated transactions 
involving documented vessels, the Automated Mutual Assistance Vessel 
Rescue program (AMVER) and the Defense Production Act.

III. Calculation of Adjustment

    The annual inflation adjustment for each applicable civil monetary 
penalty is determined using the percent increase in the Consumer Price 
Index for all Urban Consumers (CPI-U) for the month of October of the 
year in which the amount of each civil penalty was most recently 
established or modified. In the December 16, 2016, OMB Memorandum for 
the Heads of Executive Agencies and Departments, M-17-11, 
Implementation of the 2017 annual adjustment pursuant to the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, OMB 
published the multiplier for the required annual adjustment. The cost-
of-living adjustment multiplier for 2017, based on the CPI-U for the 
month of October 2016, not seasonally adjusted, is 1.01636.
    Using the 2017 multiplier, MARAD adjusts all its applicable 
monetary penalties.

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. Applying 
the multiplier for the increase in CPI-U for 2017, 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 is 
adjusted to $20,111. 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

[[Page 18872]]

United States Code, is adjusted to $50,276. 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 is adjusted to $19,246.

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)
    Applying the multiplier for the increase in CPI-U for 2017, 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 is adjusted to $127.00.

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)
    Applying the multiplier for the increase in CPI-U for 2017, 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, is adjusted to $25,409.

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)
    Applying the multiplier for the increase in CPI-U for 2017, 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, is adjusted to 
$147,396 for each day such vessel engaged in fishing.

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 regulation 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.

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 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 
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 this rule 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.

List of Subjects

46 CFR Part 221

    Administrative practice and procedure, Maritime carriers, 
Mortgages, Penalties, Reporting and recordkeeping requirements, Trusts 
and trustees.

[[Page 18873]]

46 CFR Part 307

    Marine safety, Maritime carriers, Penalties, Reporting and 
recordkeeping requirements.

46 CFR Part 340

    Harbors, Maritime carriers, National defense, Packaging and 
containers.

46 CFR Part 356

    Citizenship and naturalization, Fishing vessels, Mortgages, 
Penalties, Reporting and recordkeeping requirements, Vessels.

    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 continues 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 
$20,111 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 $50,276 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 $19,246 for each violation.

PART 307--ESTABLISHMENT OF MANDATORY POSITION REPORTING SYSTEM FOR 
VESSELS

0
3. The authority citation for 46 CFR part 307 continues 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 $127.00 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 continues 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 $25,409 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
7. The authority citation for 46 CFR part 356 continues 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
8. Revise Sec.  356.49(b) to read as follows:


Sec.  356.49  Penalties.

* * * * *
    (b) A fine of up to $147,396 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: April 19, 2017.

    By Order of the Maritime Administrator.
T. Mitchell Hudson, Jr.,
Secretary, Maritime Administration.
[FR Doc. 2017-08198 Filed 4-21-17; 8:45 am]
BILLING CODE 4910-81-P



                                                                    Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Rules and Regulations                                           18871

                                                § 52.370   Identification of plan.                      penalty amounts for violations of                     past that deadline, further delay would
                                                *       *    *     *     *                              procedures related to the American                    be contrary to the public interest.
                                                   (c) * * *                                            Fisheries Act, certain regulated
                                                                                                                                                              III. Regulatory History
                                                   (114) Revisions to the State                         transactions involving documented
                                                Implementation Plan submitted by the                    vessels, the Automated Mutual                            On June 30, 2016, MARAD published
                                                Connecticut Department of Energy and                    Assistance Vessel Rescue program                      an interim final rule using an initial
                                                Environmental Protection on June 27,                    (AMVER) and the Defense Production                    ‘‘catch up’’ adjustment, as required by
                                                2016 and August 18, 2016.                               Act.                                                  section 4 of the 2015 Act (81 FR 41453).
                                                   (i) Incorporation by reference.                         MARAD finds that good cause exists                 Just like this final rule, the interim final
                                                   (A) General Permit to Limit Potential                for immediate implementation of this                  rule made adjustments to civil penalty
                                                to Emit from Major Stationary Sources,                  final rule because prior notice and                   amounts for violations of procedures
                                                issuance date November 9, 2015, except                  comment are unnecessary, per the                      related to the American Fisheries Act,
                                                for the provisions listed below, related                specific provisions of the 2015 Act.                  certain regulated transactions involving
                                                to greenhouse gases which Connecticut                   DATES: This rule is effective May 4,                  documented vessels, the Automated
                                                withdrew from consideration as part of                  2017.                                                 Mutual Assistance Vessel Rescue
                                                the SIP.                                                                                                      program (AMVER) and the Defense
                                                                                                        ADDRESSES: Office of Chief Counsel,
                                                   (1) In Section 2, the definitions for                                                                      Production Act.
                                                                                                        MAR 225, Maritime Administration,
                                                ‘‘Carbon Dioxide Equivalent Emissions’’                 1200 New Jersey Avenue SE., West                      III. Calculation of Adjustment
                                                or ‘‘CO2’’, ‘‘Greenhouse Gases’’ or                     Building, Second Floor, Washington, DC
                                                ‘‘GHG’’, ‘‘Hydroflourocarbon’’ or                                                                                The annual inflation adjustment for
                                                                                                        20590.                                                each applicable civil monetary penalty
                                                ‘‘HFC’’, and ‘‘Perfluorocarbon’’ or                     FOR FURTHER INFORMATION CONTACT: T.
                                                ‘‘PFCs’’ in paragraph (a);                                                                                    is determined using the percent increase
                                                                                                        Mitchell Hudson, Jr., Office of Chief                 in the Consumer Price Index for all
                                                   (2) In Sections 4 and 5, the words                   Counsel, MARAD, telephone (202) 366–
                                                ‘‘excluding GHG which are limited to                                                                          Urban Consumers (CPI–U) for the month
                                                                                                        9373, email to: rulemakings.marad@                    of October of the year in which the
                                                less than 100% of Title V source                        dot.gov, 1200 New Jersey Ave. SE.,
                                                threshold as defined in section 22a–                                                                          amount of each civil penalty was most
                                                                                                        Washington, DC 20590.                                 recently established or modified. In the
                                                174–33(a)(10)(F)(iv) of the Regulations
                                                                                                        SUPPLEMENTARY INFORMATION:                            December 16, 2016, OMB Memorandum
                                                of Connecticut State Agencies’’ in
                                                paragraphs (4)(c)(2)(E)(i) and (ii),                    I. Background                                         for the Heads of Executive Agencies and
                                                4(c)(2)(J), 4(d)(1), and 4(g)(5)(A) and (B);                                                                  Departments, M–17–11, Implementation
                                                                                                           The Federal Civil Penalties Inflation              of the 2017 annual adjustment pursuant
                                                and 5(a)(1) and (2);                                    Adjustment Act Improvements Act of
                                                   (3) In Section 5, the words ‘‘excluding                                                                    to the Federal Civil Penalties Inflation
                                                                                                        2015 (Sec. 701 of Pub. L. 114–74) (the                Adjustment Act Improvements Act of
                                                GHG which are limited to less than                      ‘‘2015 Act’’), which is intended to
                                                100% of Title V source threshold’’ in                                                                         2015, OMB published the multiplier for
                                                                                                        improve the effectiveness of civil                    the required annual adjustment. The
                                                the introductory paragraph;                             monetary penalties and to maintain the
                                                   (4) In Section 5, paragraphs                                                                               cost-of-living adjustment multiplier for
                                                                                                        deterrent effect of such penalties,                   2017, based on the CPI–U for the month
                                                5(b)(2)(A)(vi) and 5(b)(2)(B)(i);                       requires agencies to adjust the civil
                                                   (5) In Section 5, the words ‘‘and (vi)’’                                                                   of October 2016, not seasonally
                                                                                                        monetary penalties for inflation                      adjusted, is 1.01636.
                                                in paragraph 5(b)(2)(A)(vii); and                       annually.
                                                   (6) In Section 5, the words ‘‘other than                                                                      Using the 2017 multiplier, MARAD
                                                GHG’’ in paragraphs 5(b)(2)(B)(ii) and                  II. Administrative Procedures Act                     adjusts all its applicable monetary
                                                (iii).                                                                                                        penalties.
                                                                                                           Generally, agencies may promulgate
                                                [FR Doc. 2017–08109 Filed 4–21–17; 8:45 am]             final rules only after issuing a notice of            Inflationary Adjustments to Penalty
                                                BILLING CODE 6560–50–P                                  proposed rulemaking and providing an                  Amounts in 46 CFR Part 221
                                                                                                        opportunity for public comment under
                                                                                                                                                              Changes to Civil Penalties for Regulated
                                                                                                        procedures required by the APA, as
                                                                                                                                                              Transactions Involving Vessel
                                                DEPARTMENT OF TRANSPORTATION                            provided in 5 U.S.C. 553(b) and (c). The
                                                                                                                                                              Ownership Transfers and Other
                                                                                                        APA, in 5 U.S.C. 553(b)(3)(B), provides
                                                                                                                                                              Maritime Interests (46 CFR 221.61)
                                                Maritime Administration                                 an exception from these requirements
                                                                                                        when notice and public comment                          The maximum civil penalties arising
                                                46 CFR Parts 221, 307, 340, and 356                     procedures are ‘‘impracticable,                       under 46 CFR 221.61 have not been
                                                                                                        unnecessary, or contrary to the public                updated since they were established,
                                                RIN 2133–AB89                                           interest.’’ MARAD finds that prior                    except for inflationary adjustments
                                                                                                        notice and comment to this civil penalty              pursuant to the Inflation Adjustment
                                                Annual Civil Monetary Penalties
                                                                                                        adjustment is unnecessary because                     Act of 1990. Applying the multiplier for
                                                Adjustment
                                                                                                        section 4 of the 2015 Act specifically                the increase in CPI–U for 2017, the
                                                AGENCY:  Maritime Administration,                       requires the annual adjustments to be                 maximum civil penalty for a single
                                                Department of Transportation.                           accomplished through final rule without               violation of any provision under 46
                                                ACTION: Final rule.                                     notice and comment.                                   U.S.C. Chapter 313 and all of Subtitle III
                                                                                                           Also pursuant to the APA (5 U.S.C.                 related MARAD regulations, except
                                                SUMMARY:   The Maritime Administration                  553(d)(3)), the rule will be effective 10             section 31329, specified in 31309 of
jstallworth on DSK7TPTVN1PROD with RULES




                                                (MARAD) is updating its regulations to                  days after publication in the Federal                 Title 46 of the United States Code is
                                                reflect required annual inflation-related               Register. Delaying the effective date for             adjusted to $20,111. Likewise, the
                                                increases to the civil monetary penalties               30 days after publication would be                    maximum civil penalty for a single
                                                in its regulations, pursuant to the                     contrary to the direction provided in the             violation of 31329 of Title 46 of the
                                                Federal Civil Penalties Inflation                       2015 Act, which states that annual                    United States Code as it relates to the
                                                Adjustment Act Improvement Act of                       adjustments be made by January 15th of                court sales of documented vessels,
                                                2015. This final rule adjusts civil                     each year. As this final rule is already              specified in 31330 of Title 46 of the


                                           VerDate Sep<11>2014   13:01 Apr 21, 2017   Jkt 241001   PO 00000   Frm 00031   Fmt 4700   Sfmt 4700   E:\FR\FM\24APR1.SGM   24APR1


                                                18872               Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Rules and Regulations

                                                United States Code, is adjusted to                      regulatory policies and procedures. This              Executive Order 13132, the agency may
                                                $50,276. Lastly, for penalties arising                  rulemaking document was not reviewed                  not issue a regulation with Federalism
                                                under 46 CFR 221.61, the maximum                        under Executive Order 12866 or                        implications, that imposes substantial
                                                civil penalty for a single violation of                 Executive Order 13563. This action is                 direct compliance costs, and that is not
                                                56101 of Title 46 of the United States                  limited to the adoption of adjustments                required by statute, unless the Federal
                                                Code as it relates to approvals required                of civil penalties under statutes that the            government provides the funds
                                                to transfer a vessel to a noncitizen,                   agency enforces, and has been                         necessary to pay the direct compliance
                                                specified in 56101(e) of Title 46 United                determined to be not ‘‘significant’’                  costs incurred by State and local
                                                States Code is adjusted to $19,246.                     under the Department of                               governments, the agency consults with
                                                                                                        Transportation’s regulatory policies and              State and local governments, or the
                                                Inflationary Adjustments to Penalty                     procedures and the policies of the Office             agency consults with State and local
                                                Amounts in 46 CFR Part 307                              of Management and Budget. Because                     officials early in the process of
                                                Changes to Civil Penalties for Failure To               this rulemaking does not change the                   developing the regulation.
                                                File an AMVER Report (46 CFR 307.19)                    number of entities that are subject to                  This rule will not have substantial
                                                                                                        civil penalties, the impacts are limited.             direct effects on the States, on the
                                                  Applying the multiplier for the
                                                                                                        Furthermore, excluding the penalties in               relationship between the national
                                                increase in CPI–U for 2017, the
                                                                                                        46 CFR 221.61, 307.19, 340.9 and 356.49               government and the States, or on the
                                                maximum civil penalty for a single
                                                                                                        for violating certain long standing                   distribution of power and
                                                violation of 50113 of Title 46 of the                                                                         responsibilities among the various
                                                                                                        procedures, this final rule does not
                                                United States Code related to use and                                                                         levels of government, as specified in
                                                                                                        establish civil penalty amounts that
                                                performance reports by operators of                                                                           Executive Order 13132. This rule only
                                                                                                        MARAD is required to seek.
                                                vessels as specified in 50113(b) of Title                 We also do not expect the increase in               updates existing penalties, pursuant to
                                                46 of the United States Code is adjusted                the civil penalty amount in any of these              statute. MARAD has not collected any
                                                to $127.00.                                             regulations to be economically                        civil penalties under these regulations
                                                Inflationary Adjustments to Penalty                     significant. Over the last five years,                within the last five years and if it were
                                                Amounts in 46 CFR Part 340                              MARAD has not collected any civil                     to assess penalties, due to the amounts
                                                                                                        penalties under these regulations.                    involved, it would not have a
                                                Changes to Civil Penalties for Violating                Increasing the current civil penalty                  substantial direct effect on a State. Thus,
                                                Procedures for the Use and Allocation of                amount by 150 percent would not result                the requirements of Section 6 of the
                                                Shipping Services, Port Facilities and                  in an annual effect on the economy of                 Executive Order do not apply.
                                                Services for National Security and                      $100 million or more.
                                                National Defense Operations (46 CFR                                                                           Unfunded Mandates Reform Act of 1995
                                                340.9)                                                  Regulatory Flexibility Act                              The Unfunded Mandates Reform Act
                                                  Applying the multiplier for the                          We have also considered the impacts                of 1995, Public Law 104–4, requires
                                                increase in CPI–U for 2017, the                         of this regulation under the Regulatory               agencies to prepare a written assessment
                                                maximum civil penalty for a single                      Flexibility Act. I certify that this rule             of the cost, benefits and other effects of
                                                violation of 4501 of Title 50 of the                    will not have a significant economic                  proposed or final rules that include a
                                                United States Code, specified in 4513 of                impact on a substantial number of small               Federal mandate likely to result in the
                                                Title 50 of the United States Code, at 46               entities. Since this regulation does not              expenditure by State, local, or tribal
                                                CFR 340.9, is adjusted to $25,409.                      establish a penalty amount that MARAD                 governments, in the aggregate, or by the
                                                                                                        is required to seek, except for the long              private sector, of more than $100
                                                Inflationary Adjustments to Penalty                     standing civil penalties set forth in 46              million annually. Because this rule will
                                                Amounts in 46 CFR Part 356                              CFR 221.61, 307.19, 340.9 and 356.49,                 not have a $100 million effect, no
                                                Changes to Civil Penalties for Violations               this rule will not have a significant                 Unfunded Mandates assessment will be
                                                in Applying for or Renewing a Vessel’s                  economic impact on small businesses.                  prepared.
                                                Fishery Endorsement (46 CFR 356.49)                     Additionally, over the last five years,               Executive Order 12778 (Civil Justice
                                                                                                        MARAD has not collected any civil                     Reform)
                                                   Applying the multiplier for the
                                                                                                        penalties under these regulations.
                                                increase in CPI–U for 2017, the                                                                                 This rule does not have a retroactive
                                                                                                        Accordingly, increasingly the civil
                                                maximum civil penalty for a single                                                                            or preemptive effect. Judicial review of
                                                                                                        penalty amount is unlikely to have any
                                                violation of 12151 of Title 46 of the                                                                         this rule may be obtained pursuant to 5
                                                                                                        economic impact on any small
                                                United States Code for engaging in                                                                            U.S.C. 702. That section does not
                                                                                                        businesses.
                                                fishing operations as defined in section                                                                      require that a petition for
                                                3 of the Magnuson-Stevens Fishery                       Executive Order 13132 (Federalism)                    reconsideration be filed prior to seeking
                                                Conservation and Management Act,                           Executive Order 13132 requires                     judicial review.
                                                within the Exclusive Economic Zone,                     MARAD to develop an accountable
                                                specified in 12151(c) of Title 46 of the                                                                      Paperwork Reduction Act
                                                                                                        process to ensure ‘‘meaningful and
                                                United States Code, and at 46 CFR                       timely input by State and local officials               In accordance with the Paperwork
                                                356.49, is adjusted to $147,396 for each                in the development of regulatory                      Reduction Act of 1980, we state that
                                                day such vessel engaged in fishing.                     policies that have federalism                         there are no requirements for
                                                                                                        implications.’’ ‘‘Policies that have                  information collection associated with
                                                IV. Rulemaking Analyses and Notices
                                                                                                        federalism implications’’ is defined in               this rulemaking action.
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                                                Executive Order 12866, Executive Order                  the Executive Order to include                        List of Subjects
                                                13563, and DOT Regulatory Policies and                  regulations that have ‘‘substantial direct
                                                Procedures                                              effects on the States, on the relationship            46 CFR Part 221
                                                  MARAD has considered the impact of                    between the national government and                     Administrative practice and
                                                this rulemaking action under Executive                  the States, or on the distribution of                 procedure, Maritime carriers, Mortgages,
                                                Order 12866, Executive Order 13563,                     power and responsibilities among the                  Penalties, Reporting and recordkeeping
                                                and the Department of Transportation’s                  various levels of government.’’ Under                 requirements, Trusts and trustees.


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                                                                    Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Rules and Regulations                                                18873

                                                46 CFR Part 307                                         person that charters, sells, transfers or             § 340.9    Compliance.
                                                  Marine safety, Maritime carriers,                     mortgages a vessel, or an interest                      Pursuant 50 U.S.C. 4513 any person
                                                Penalties, Reporting and recordkeeping                  therein, in violation of 46 U.S.C.                    who willfully performs any act
                                                requirements.                                           56101(e) is liable for a civil penalty of             prohibited, or willfully fails to perform
                                                                                                        not more than $19,246 for each                        any act required, by the provisions of
                                                46 CFR Part 340                                         violation.                                            this regulation shall, upon conviction,
                                                  Harbors, Maritime carriers, National                                                                        be fined not more than $25,409 or
                                                defense, Packaging and containers.                      PART 307—ESTABLISHMENT OF
                                                                                                                                                              imprisoned for not more than one year,
                                                                                                        MANDATORY POSITION REPORTING
                                                46 CFR Part 356                                                                                               or both.
                                                                                                        SYSTEM FOR VESSELS
                                                  Citizenship and naturalization,                                                                             PART 356—REQUIREMENTS FOR
                                                Fishing vessels, Mortgages, Penalties,                  ■ 3. The authority citation for 46 CFR                VESSELS OF 100 FEET OR GREATER
                                                Reporting and recordkeeping                             part 307 continues to read as follows:                IN REGISTERED LENGTH TO OBTAIN
                                                requirements, Vessels.                                    Authority: Pub. L. 109–304; 46 U.S.C.               A FISHERY ENDORSEMENT TO THE
                                                  In consideration of the foregoing, 46                 50113; Pub. L. 114–74; 49 CFR 1.93.                   VESSEL’S DOCUMENTATION
                                                CFR parts 221, 307, 340, and 356 are
                                                                                                        ■ 4. Section 307.19 is revised to read as
                                                amended as set forth below.                                                                                   ■ 7. The authority citation for 46 CFR
                                                                                                        follows:
                                                                                                                                                              part 356 continues to read as follows:
                                                PART 221—REGULATED                                      § 307.19    Penalties.
                                                TRANSACTIONS INVOLVING                                                                                          Authority: 46 U.S.C. 12102; 46 U.S.C.
                                                DOCUMENTED VESSELS AND OTHER                               The owner or operator of a vessel in               12151; 46 U.S.C. 31322; Pub. L. 105–277,
                                                                                                        the waterborne foreign commerce of the                division C, title II, subtitle I, section 203 (46
                                                MARITIME INTERESTS
                                                                                                        United States is subject to a penalty of              U.S.C. 12102 note), section 210(e), and
                                                ■ 1. The authority citation for 46 CFR                  $127.00 for each day of failure to file an            section 213(g), 112 Stat. 2681; Pub. L. 107–
                                                                                                                                                              20, section 2202, 115 Stat. 168–170; Pub. L.
                                                part 221 continues to read as follows:                  AMVER report required by this part.
                                                                                                                                                              114–74; 49 CFR 1.93.
                                                  Authority: 46 U.S.C. chs. 301, 313, and               Such penalty shall constitute a lien
                                                561; Pub. L. 114–74; 49 CFR 1.93.                       upon the vessel, and such vessel may be               ■ 8. Revise § 356.49(b) to read as
                                                                                                        libeled in the district court of the United           follows:
                                                ■ 2. Section 221.61 is revised to read as
                                                                                                        States in which the vessel may be
                                                follows:                                                                                                      § 356.49    Penalties.
                                                                                                        found.
                                                § 221.61   Compliance.                                                                                        *     *    *     *     *
                                                   (a) This subpart describes procedures                PART 340—PRIORITY USE AND                               (b) A fine of up to $147,396 may be
                                                for the administration of civil penalties               ALLOCATION OF SHIPPING                                assessed against the vessel owner for
                                                that the Maritime Administration may                    SERVICES, CONTAINERS AND                              each day in which such vessel has
                                                assess under 46 U.S.C. 31309, 31330                     CHASSIS, AND PORT FACILITIES AND                      engaged in fishing (as such term is
                                                and 56101, pursuant to 49 U.S.C. 336.                   SERVICES FOR NATIONAL SECURITY                        defined in section 3 of the Magnuson-
                                                   (b) Pursuant to 46 U.S.C. 31309, a                   AND NATIONAL DEFENSE RELATED                          Stevens Fishery Conservation and
                                                general penalty of not more than                        OPERATIONS                                            Management Act (16 U.S.C. 1802)
                                                $20,111 may be assessed for each                                                                              within the exclusive economic zone of
                                                violation of chapter 313 or 46 U.S.C.                   ■ 5. The authority citation for 46 CFR                the United States; and
                                                subtitle III administered by the Maritime               part 340 continues to read as follows:
                                                                                                                                                              *     *    *     *     *
                                                Administration, and the regulations in                    Authority: 50 U.S.C. 4501 et seq. (‘‘The
                                                                                                        Defense Production Act’’); Executive Order              Dated: April 19, 2017.
                                                this part that are promulgated
                                                thereunder, except that a person                        13603 (77 FR 16651); Executive Order 12656              By Order of the Maritime Administrator.
                                                                                                        (53 FR 47491); Pub. L. 114–74; 49 CFR 1.45;           T. Mitchell Hudson, Jr.,
                                                violating 46 U.S.C. 31329 and the
                                                                                                        49 CFR 1.93(l).                                       Secretary, Maritime Administration.
                                                regulations promulgated thereunder is
                                                liable for a civil penalty of not more                  ■ 6. Section 340.9 is revised to read as              [FR Doc. 2017–08198 Filed 4–21–17; 8:45 am]
                                                than $50,276 for each violation. A                      follows:                                              BILLING CODE 4910–81–P
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Document Created: 2017-04-22 00:11:06
Document Modified: 2017-04-22 00:11:06
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective May 4, 2017.
ContactT. 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 Citation82 FR 18871 
RIN Number2133-AB89
CFR Citation46 CFR 221
46 CFR 307
46 CFR 340
46 CFR 356
CFR AssociatedAdministrative Practice and Procedure; Maritime Carriers; Mortgages; Penalties; Reporting and Recordkeeping Requirements; Trusts and Trustees; Marine Safety; Harbors; National Defense; Packaging and Containers; Citizenship and Naturalization; Fishing Vessels and Vessels

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