Inflation Adjustment of Civil Monetary Penalties

CourtFederal Maritime Commission
Citation87 FR 2350
Published date14 January 2022
Record Number2022-00712
2350
Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
1
Office of Management and Budget, M–22–07,
Implementation of Penalty Inflation Adjustments
for 2022, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of
2015, at 1 (Dec. 15, 2021) (M–22–07).
procedures set forth in the
Administrative Procedure Act, 5 U.S.C.
553 (APA). The APA provides an
exception to the notice and comment
procedures when an agency finds there
is good cause for dispensing with such
procedures on the basis that they are
impracticable, unnecessary, or contrary
to the public interest. We have
determined that under 5 U.S.C.
553(b)(3)(B) good cause exists for
dispensing with the notice of proposed
rulemaking and public comment
procedures for this rule. Specifically,
this rulemaking comports and is
consistent with the statutory authority
set forth in the Debt Collection
Improvement Act of 1996, with no
issues of policy discretion. Accordingly,
we believe that opportunity for prior
comment is unnecessary and contrary to
the public interest, and we are issuing
these revised regulations as a final rule
that will apply to all future cases under
this authority.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is a not significant
regulatory action and, therefore, was not
subject to review under Section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993.
The Office of Management and Budget
(OMB) has reviewed this final rule in
accordance with the provisions of E.O.
12866 and has determined that it does
not meet the criteria for a significant
regulatory action. As indicated above,
the provisions contained in this final
rulemaking set forth the inflation
adjustments in compliance with the
Debt Collection Improvement Act of
1996 for specific applicable CMPs. The
great majority of individuals,
organizations and entities addressed
through these regulations do not engage
in such prohibited conduct, and as a
result, we believe that any aggregate
economic impact of these revised
regulations will be minimal, affecting
only those limited few who may engage
in prohibited conduct in violation of the
statute. As such, this final rule and the
inflation adjustment contained therein
should have no effect on Federal or state
expenditures.
V. Congressional Review Act
This rule is not a major rule under 5
U.S.C. 804(2). Subtitle E of the Small
Business Regulatory Enforcement
Fairness Act of 1996 (codified at 5
U.S.C. 801–808), also known as the
Congressional Review Act or CRA,
generally provides that before a rule
may take effect, the agency
promulgating the rule must submit a
rule report, which includes a copy of
the rule, to each House of the Congress
and to the Comptroller General of the
United States. GSA will submit a report
containing this rule and other required
information to the U.S. Senate, the U.S.
House of Representatives, and the
Comptroller General of the United
States. A major rule under the CRA
cannot take effect until 60 days after it
is published in the Federal Register.
OIRA has determined that this is not a
‘‘major rule’’ as defined by 5 U.S.C.
804(2).
VI. Regulatory Flexibility Act
The Administrator of General Services
certifies that this final rule will not have
a significant economic impact on a
substantial number of small business
entities. While some penalties may have
an impact on small business entities, it
is the nature of the violation and not the
size of the entity that will result in an
action by the agency, and the aggregate
economic impact of this rulemaking on
small business entities should be
minimal, affecting only those few who
have engaged in prohibited conduct in
violation of statutory intent.
VII. Paperwork Reduction Act
This final rule imposes no new
reporting or recordkeeping requirements
necessitating clearance by OMB.
List of Subject in 41 CFR Part 105–70
Administrative hearing, Claims,
Program fraud.
Robin Carnahan,
Administrator.
Accordingly, 41 CFR part 105–70 is
amended as set forth below:
PART 105–70—IMPLEMENTATION OF
THE PROGRAM FRAUD CIVIL
REMEDIES ACT OF 1986
1. The authority citation for part 105–
70 is revised to read as follows:
Authority: 40 U.S.C. 121(c); 31 U.S.C.
3809.
* * * * *
§ 105–70.003 [Amended]
2. Amend § 105–70.003 by—
a. Removing from paragraph (a)(1)(iv)
the amount ‘‘11,400’’ and adding
‘‘12,100’’ in its place; and
b. Removing from paragraph (b)(1)(ii)
the amount ‘‘11,400’’ and adding
‘‘12,100’’ in its place.
[FR Doc. 2022–00732 Filed 1–13–22; 8:45 am]
BILLING CODE 6820–81–P
FEDERAL MARITIME COMMISSION
46 CFR Part 506
[Docket No. 22–02]
RIN 3072–AC89
Inflation Adjustment of Civil Monetary
Penalties
AGENCY
: Federal Maritime Commission.
ACTION
: Final rule.
SUMMARY
: The Federal Maritime
Commission (Commission) is publishing
this final rule to adjust for inflation the
civil monetary penalties assessed or
enforced by the Commission, pursuant
to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (2015 Act). The 2015 Act requires
that agencies adjust and publish their
new civil penalties by January 15 each
year.
DATES
: This rule is effective January 15,
2022.
FOR FURTHER INFORMATION CONTACT
:
William Cody, Secretary; Phone: (202)
523–5725; Email: secretary@fmc.gov.
SUPPLEMENTARY INFORMATION
: This rule
adjusts the civil monetary penalties
assessable by the Commission in
accordance with the 2015 Act, which
became effective on November 2, 2015.
Public Law 114–74, section 701. The
2015 Act further amended the Federal
Civil Penalties Inflation Adjustment Act
of 1990 (FCPIAA), Public Law 101–410,
104 Stat. 890 (codified as amended at 28
U.S.C. 2461 note), in order to improve
the effectiveness of civil monetary
penalties and to maintain their deterrent
effect.
The 2015 Act requires agencies to
adjust civil monetary penalties under
their jurisdiction by January 15 each
year, based on changes in the consumer
price index (CPI–U) for the month of
October in the previous calendar year.
On December 15, 2021, the Office of
Management and Budget published
guidance stating that the CPI–U
multiplier for October 2021 is 1.06222.
1
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Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
2
FCPIAA section 4(b)(2); M–22–07 at 3–4.
In order to complete the annual
adjustment, the Commission must
multiply the most recent civil penalty
amounts in 46 CFR part 506 by the
multiplier, 1.06222.
Rulemaking Analyses and Notices
Notice and Effective Date
Adjustments under the FCPIAA, as
amended by the 2015 Act, are not
subject to the procedural rulemaking
requirements of the Administrative
Procedure Act (APA) (5 U.S.C. 553),
including the requirements for prior
notice, an opportunity for comment, and
a delay between the issuance of a final
rule and its effective date.
2
As noted
above, the 2015 Act requires that the
Commission adjust its civil monetary
penalties no later than January 15 of
each year.
Congressional Review Act
The rule is not a ‘‘major rule’’ as
defined by the Congressional Review
Act, codified at 5 U.S.C. 801 et seq. The
rule will not result in: (1) An annual
effect on the economy of $100,000,000
or more; (2) a major increase in costs or
prices; or (3) significant adverse effects
on competition, employment,
investment, productivity, innovation, or
the ability of United States-based
companies to compete with foreign-
based companies. 5 U.S.C. 804(2).
Regulatory Flexibility Act
The Regulatory Flexibility Act
(codified as amended at 5 U.S.C. 601–
612) provides that whenever an agency
promulgates a final rule after being
required to publish a notice of proposed
rulemaking under the APA (5 U.S.C.
553), the agency must prepare and make
available a final regulatory flexibility
analysis describing the impact of the
rule on small entities or the head of the
agency must certify that the rule will
not have a significant economic impact
on a substantial number of small
entities. 5 U.S.C. 604–605. As indicated
above, this final rule is not subject to the
APA’s notice and comment
requirements, and the Commission is
not required to either conduct a
regulatory flexibility analysis or certify
that the final rule would not have a
significant economic impact on a
substantial number of small entities.
Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3521) requires an
agency to seek and receive approval
from the Office of Management and
Budget (OMB) before collecting
information from the public. 44 U.S.C.
3507. The agency must submit
collections of information in rules to
OMB in conjunction with the
publication of the notice of proposed
rulemaking. 5 CFR 1320.11. This final
rule does not contain any collection of
information, as defined by 44 U.S.C.
3502(3) and 5 CFR 1320.3(c).
Regulation Identifier Number
The Commission assigns a regulation
identifier number (RIN) to each
regulatory action listed in the Unified
Agenda of Federal Regulatory and
Deregulatory Actions (Unified Agenda).
The Regulatory Information Service
Center publishes the Unified Agenda in
April and October of each year. The
public may use the RIN contained in the
heading at the beginning of this
document to find this action in the
Unified Agenda, available at http://
www.reginfo.gov/public/do/
eAgendaMain.
List of Subjects in 46 CFR Part 506
Administrative practice and
procedure, Claims, Penalties.
For the reasons stated in the
preamble, 46 CFR part 506 is amended
as follows:
PART 506—CIVIL MONETARY
PENALTY INFLATION ADJUSTMENT
1. The authority citation for part 506
continues to read as follows:
Authority: 28 U.S.C. 2461.
2. Amend § 506.4 by revising
paragraph (d) to read as follows:
§ 506.4 Cost of living adjustments of civil
monetary penalties.
* * * * *
(d) Inflation adjustment. Maximum
civil monetary penalties within the
jurisdiction of the Federal Maritime
Commission are adjusted for inflation as
follows:
T
ABLE
1
TO
P
ARAGRAPH
(d)
United States code citation Civil monetary penalty description Maximum
penalty as of
January 15, 2021
Maximum
penalty as of
January 15, 2022
46 U.S.C. 42304 .......................... Adverse impact on U.S. carriers by foreign shipping practices ....... $2,166,279 $2,301,065
46 U.S.C. 41107(a) ...................... Knowing and Willful violation/Shipping Act of 1984, or Commission
regulation or order. 61,820 65,666
46 U.S.C. 41107(a) ...................... Violation of Shipping Act of 1984, Commission regulation or order,
not knowing and willful. 12,363 13,132
46 U.S.C. 41108(b) ...................... Operating in foreign commerce after tariff suspension .................... 123,641 131,334
46 U.S.C. 42104 .......................... Failure to provide required reports, etc./Merchant Marine Act of
1920. 9,753 10,360
46 U.S.C. 42106 .......................... Adverse shipping conditions/Merchant Marine Act of 1920 ............. 1,950,461 2,071,819
46 U.S.C. 42108 .......................... Operating after tariff or service contract suspension/Merchant Ma-
rine Act of 1920. 97,523 103,591
46 U.S.C. 44102, 44104 .............. Failure to establish financial responsibility for non-performance of
transportation. 24,634
822 26,167
873
46 U.S.C. 44103, 44104 .............. Failure to establish financial responsibility for death or injury .......... 24,634
822 26,167
873
31 U.S.C. 3802(a)(1) ................... Program Fraud Civil Remedies Act/making false claim ................... 11,803 12,537
31 U.S.C. 3802(a)(2) ................... Program Fraud Civil Remedies Act/giving false statement .............. 11,803 12,537
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Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations
By the Commission.
William Cody,
Secretary.
[FR Doc. 2022–00712 Filed 1–13–22; 8:45 am]
BILLING CODE 6730–02–P
NATIONAL TRANSPORTATION
SAFETY BOARD
49 CFR Part 831
[Docket No.: NTSB–2022–0001]
RIN 3147–AA24
Civil Monetary Penalty Annual Inflation
Adjustment
AGENCY
: National Transportation Safety
Board (NTSB).
ACTION
: Final rule.
SUMMARY
: Pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015, this final
rule provides the 2022 adjustment to the
civil penalties that the agency may
assess against a person for violating
certain NTSB statutes and regulations.
DATES
: This final rule is effective on
January 14, 2022.
ADDRESSES
: A copy of this final rule,
published in the Federal Register (FR),
is available at https://
www.regulations.gov (Docket ID Number
NTSB–2022–0001).
FOR FURTHER INFORMATION CONTACT
:
Kathleen Silbaugh, General Counsel,
(202) 314–6080 or rulemaking@ntsb.gov.
SUPPLEMENTARY INFORMATION
:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Act) requires, in
pertinent part, agencies to make an
annual adjustment for inflation by
January 15th every year. OMB, M–16–
06, Implementation of the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Feb. 24,
2016). The Office of Management and
Budget (OMB) annually publishes
guidance on the adjustment multiplier
to assist agencies in calculating the
mandatory annual adjustments for
inflation.
The NTSB’s most recent adjustment
was for fiscal year (FY) 2021, allowing
the agency to impose a civil penalty up
to $1,742, effective January 15, 2021, on
a person who violates 49 U.S.C. 1132
(Civil aircraft accident investigations),
1134(b) (Inspection, testing,
preservation, and moving of aircraft and
parts), 1134(f)(1) (Autopsies), or 1136(g)
(Prohibited actions when providing
assistance to families of passengers
involved in aircraft accidents). Civil
Monetary Penalty Annual Inflation
Adjustment, 86 FR 1809 (Jan. 11, 2021).
OMB has since published updated
guidance for FY 2022. OMB, M–22–07,
Implementation of Penalty Inflation
Adjustments for 2022, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Dec. 15, 2021). Accordingly, this
final rule reflects the NTSB’s 2022
annual inflation adjustment and updates
the maximum civil penalty from $1,742
to $1,850.
II. The 2022 Annual Adjustment
The 2022 annual adjustment is
calculated by multiplying the applicable
maximum civil penalty amount by the
cost-of-living adjustment multiplier,
which is based on the Consumer Price
Index and rounding to the nearest
dollar. OMB, M–22–07, Implementation
of Penalty Inflation Adjustments for
2022, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 15,
2021). For FY 2022, OMB’s guidance
states that the cost-of-living adjustment
multiplier is 1.06222.
Accordingly, multiplying the current
penalty of $1,742 by 1.06222 equals
$1,850.38724, which rounded to the
nearest dollar equals $1,850. This
updated maximum penalty for the
upcoming fiscal year applies only to
civil penalties assessed after the
effective date of this final rule. The next
civil penalty adjustment for inflation
will be calculated by January 15, 2023.
III. Regulatory Analysis
The Office of Information and
Regulatory Affairs Administrator has
determined agency regulations that
exclusively implement the annual
adjustment are consistent with OMB’s
annual guidance, and have an annual
impact of less than $100 million are
generally not significant regulatory
actions under Executive Order (E.O.)
12866. OMB, M–22–07, Implementation
of Penalty Inflation Adjustments for
2022, Pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 15,
2021). An assessment of its potential
costs and benefits under E.O. 12866,
Regulatory Planning and Review and
E.O. 13563, Improving Regulation and
Regulatory Review is not required
because this final rule is not a
‘‘significant regulatory action.’’
Likewise, this rule does not require
analyses under the Unfunded Mandates
Reform Act of 1995 because this final
rule is not significant.
The Regulatory Flexibility Act (5
U.S.C. 801 et seq.) requires each agency
to review its rulemaking to assess the
potential impact on small entities,
unless the agency determines a rule is
not expected to have a significant
economic impact on a substantial
number of small entities. In accordance
with 5 U.S.C. 605(b), the NTSB certifies
that the final rule will not have a
significant economic impact on a
substantial number of small entities;
only those entities that are determined
to have violated Federal law and
regulations would be affected by the
increase in penalties made by this rule.
This final rule complies with all
applicable standards in sections 3(a)
and 3(b)(2) of E.O. 12988 ‘‘Civil Justice
Reform,’’ to minimize litigation,
eliminate ambiguity, and reduce
burden. In addition, the NTSB has
evaluated this rule under E.O. 12630,
‘‘Governmental Actions and Interference
with Constitutionally Protected Property
Rights’’; and E.O. 13045, ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks.’’
The NTSB does not anticipate this
rule will have a substantial direct effect
on state government or will preempt
state law. Accordingly, this rule does
not have implications for federalism
under E.O. 13132, Federalism.
The NTSB also evaluated this rule
under E.O. 13175, Consultation and
Coordination with Indian Tribal
Governments. The agency has
concluded that this final rule will not
have a substantial direct effect on one or
more Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.
The Paperwork Reduction Act of 1995
is inapplicable because the final rule
imposes no new information reporting
or recordkeeping necessitating clearance
by OMB.
The Regulatory Flexibility Act of 1980
does not apply because, as a final rule,
this action is not subject to prior notice
and comment. See 5 U.S.C. 604(a).
The NTSB has concluded that this
final rule neither violates nor requires
further consideration under the
aforementioned Executive orders and
acts.
List of Subjects in 49 CFR Part 831
Aircraft accidents, Aircraft incidents,
Aviation safety, Hazardous materials
transportation, Highway safety,
Investigations, Marine safety, Pipeline
safety, Railroad safety.
Accordingly, for the reasons stated in
the Preamble, the NTSB amends 49 CFR
part 831 as follows:
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