2024-00592: Civil Monetary Penalties-2024 Adjustment
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The Surface Transportation Board (Board) is issuing a final rule to implement the annual inflationary adjustment to its civil monetary penalties, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
The agency’s own summary, as published.
The rule, in full
1,779 words as published, January 12, 2024. View the original →
Federal Register, Volume 89 Issue 9 (Friday, January 12, 2024) [Federal Register Volume 89, Number 9 (Friday, January 12, 2024)] [Rules and Regulations] [Pages 2174-2176] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 2024-00592] ======================================================================= ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD 49 CFR Part 1022 [Docket No. EP 716 (Sub-No. 9)] Civil Monetary Penalties--2024 Adjustment
Agency
Surface Transportation Board.
Action
Final rule. -----------------------------------------------------------------------
Summary
The Surface Transportation Board (Board) is issuing a final rule to implement the annual inflationary adjustment to its civil monetary penalties, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
Dates
This final rule is effective January 12, 2024.
For Further Information Contact
Amy Ziehm at (202) 245-0391. If you require an accommodation under the Americans with Disabilities Act, please call (202) 245-0245.
Supplementary Information
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), enacted as part of the Bipartisan Budget Act of 2015, Public Law 114-74, 701, 129 Stat. 584, 599-601, requires agencies to adjust their civil penalties for inflation annually, beginning on July 1, 2016, and no later than January 15 of every year thereafter. In accordance with the 2015 Act, annual inflation adjustments are to be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for October of the previous year and the October CPI-U of the year before that. Penalty level adjustments should be rounded to the nearest dollar.
II. Discussion
The statutory definition of civil monetary penalty covers various civil penalty provisions under the Rail (Part A); Motor Carriers, Water Carriers, Brokers, and Freight Forwarders (Part B); and Pipeline Carriers (Part C) provisions of the Interstate Commerce Act, as amended. The Board's civil (and criminal) penalty authority related to rail transportation appears at 49 U.S.C. 11901-11908. The Board's penalty authority related to motor carriers, water carriers, brokers, and freight forwarders appears at 49 U.S.C. 14901-14916. The Board's penalty authority related to pipeline carriers appears at 49 U.S.C. 16101-16106.\1\ The Board has regulations at 49 CFR pt. 1022 that codify the method set forth in the 2015 Act for annually adjusting for inflation the civil monetary penalties within the Board's jurisdiction. --------------------------------------------------------------------------- \1\ The Board also has various criminal penalty authority, enforceable in a federal criminal court. Congress has not, however, authorized federal agencies to adjust statutorily prescribed criminal penalty provisions for inflation, and this rule does not address those provisions. --------------------------------------------------------------------------- As set forth in this final rule, the Board is amending 49 CFR part 1022 to make an annual inflation adjustment to the civil monetary penalties in conformance with the requirements of the 2015 Act. The adjusted penalties set forth in the rule will apply only to violations that occur after the effective date of this regulation. In accordance with the 2015 Act, the annual adjustment adopted here is calculated by multiplying each current penalty by the cost-of-living adjustment factor of 1.03241, which reflects the percentage change between the October 2023 CPI-U (307.671) and the October 2022 CPI-U (298.012). The table at the end of this decision shows the statutory citation for each civil penalty, a description of the provision, the adjusted statutory civil penalty level for 2023, and the adjusted statutory civil penalty level for 2024. [[Page 2175]]
III. Final Rule
The final rule set forth at the end of this decision is being issued without notice and comment pursuant to the rulemaking provision of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), which does not require that process ``when the agency for good cause finds'' that public notice and comment are ``unnecessary.'' Here, Congress has mandated that the agency make an annual inflation adjustment to its civil monetary penalties. The Board has no discretion to set alternative levels of adjusted civil monetary penalties, because the amount of the inflation adjustment must be calculated in accordance with the statutory formula. Given the absence of discretion, the Board has determined that there is good cause to promulgate this rule without soliciting public comment and to make this regulation effective immediately upon publication.
IV. Regulatory Flexibility Statement
The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 601-612, generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because the Board has determined that notice and comment are not required under the APA for this rulemaking, the requirements of the RFA do not apply.
V. Congressional Review Act
Pursuant to the Congressional Review Act, 5 U.S.C. 801-808, the Office of Information and Regulatory Affairs has designated this rule as a non-major rule, as defined by 5 U.S.C. 804(2).
VI. Paperwork Reduction Act
This final rule does not contain a new or amended information collection requirement subject to the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3521. List of Subjects in 49 CFR Part 1022 Administrative practice and procedures, Brokers, Civil penalties, Freight forwarders, Motor carriers, Pipeline carriers, Rail carriers, Water carriers. It is ordered:
1. The Board amends its rules as set forth in this decision. Notice
of the final rule will be published in the Federal Register.
2. This decision is effective on its date of publication in the
Federal Register. Decided: January 9, 2024. By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and Schultz. Board Member Primus concurred with a separate expression. BOARD MEMBER PRIMUS, concurring: When the Board adjusted its civil monetary penalties last year, I wrote separately to express concern about the adequacy of the penalties afforded by statute. Civ. Monetary Penalties--2023 Adjustment, EP 716 (Sub-No. 8) (STB served Jan. 13, 2023), slip op. at 3-4 (Member Primus concurring). That concern remains today. The Board's decision, consistent with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, makes minor adjustments to its civil penalties--for example, increasing the penalty in 49 U.S.C. 11901(a) from $9,413 to $9,718. For the reasons I stated last year, those penalties are unlikely to provide the deterrent effect intended by Congress, and Congress should address this inadequacy. Kenyatta Clay, Clearance Clerk. For the reasons set forth in the preamble, part 1022 of title 49, chapter X, of the Code of Federal Regulations is amended as follows: PART 1022--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT 0
1. The authority citation for part 1022 continues to read as follows:
Authority: 5 U.S.C. 551-557; 28 U.S.C. 2461 note; 49 U.S.C. 11901, 14901, 14903, 14904, 14905, 14906, 14907, 14908, 14910, 14915, 14916, 16101, 16103. 0
2. Revise Sec. 1022.4(b) to read as follows:
Sec. 1022.4 Cost-of-living adjustments of civil monetary penalties. * * * * * (b) The cost-of-living adjustment required by the statute results in the following adjustments to the civil monetary penalties within the jurisdiction of the Board: Table 1 to Paragraph (b) ---------------------------------------------------------------------------------------------------------------- 2023-- Penalty 2024-- Adjusted Civil monetary penalty amount penalty amount U.S. Code citation description ----------------------------------- EP 716_8 (2023) EP 716_9 (2024) ---------------------------------------------------------------------------------------------------------------- Rail Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 11901(a)............................... Unless otherwise $9,413 $9,718 specified, maximum penalty for each knowing violation under this part, and for each day. 49 U.S.C. 11901(b)............................... For each violation under 942 973 Sec. 11124(a)(2) or (b). 49 U.S.C. 11901(b)............................... For each day violation 48 50 continues. 49 U.S.C. 11901(c)............................... Maximum penalty for each 9,413 9,718 knowing violation under Sec. Sec. 10901-10906. 49 U.S.C. 11901(d)............................... For each violation under 187-942 193-973 Sec. Sec. 11123 or 11124(a)(1). 49 U.S.C. 11901(d)............................... For each day violation 94 97 continues. 49 U.S.C. 11901(e)(1), (4)....................... For each violation under 942 973 Sec. Sec. 11141- 11145, for each day. 49 U.S.C. 11901(e)(2), (4)....................... For each violation under 187 193 Sec. 11144(b)(1), for each day. 49 U.S.C. 11901(e)(3)-(4)........................ For each violation of 187 193 reporting requirements, for each day. ---------------------------------------------------------------------------------------------------------------- Motor and Water Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 14901(a)............................... Minimum penalty for each 1,288 1,330 violation and for each day. 49 U.S.C. 14901(a)............................... For each violation under 12,883 13,301 Sec. Sec. 13901 or 13902(c). 49 U.S.C. 14901(a)............................... For each violation 32,208 33,252 related to transportation of passengers. 49 U.S.C. 14901(b)............................... For each violation of the 25,767-51,534 26,602-53,204 hazardous waste rules under Sec. 3001 of the Solid Waste Disposal Act. [[Page 2176]] 49 U.S.C. 14901(d)(1)............................ Minimum penalty for each 1,881 1,942 violation of household good regulations, and for each day. 49 U.S.C. 14901(d)(2)............................ Minimum penalty for each 18,826 19,436 instance of transportation of household goods if broker provides estimate without carrier agreement. 49 U.S.C. 14901(d)(3)............................ Minimum penalty for each 47,061 48,586 instance of transportation of household goods without being registered. 49 U.S.C. 14901(e)............................... Minimum penalty for each 3,765 3,887 violation of a transportation rule. 49 U.S.C. 14901(e)............................... Minimum penalty for each 9,413 9,718 additional violation. 49 U.S.C. 14903(a)............................... Maximum penalty for 188,257 194,359 undercharge or overcharge of tariff rate, for each violation. 49 U.S.C. 14904(a)............................... For first violation, 376 388 rebates at less than the rate in effect. 49 U.S.C. 14904(a)............................... For all subsequent 472 487 violations. 49 U.S.C. 14904(b)(1)............................ Maximum penalty for first 942 973 violation for undercharges by freight forwarders. 49 U.S.C. 14904(b)(1)............................ Maximum penalty for 3,765 3,887 subsequent violations. 49 U.S.C. 14904(b)(2)............................ Maximum penalty for other 942 973 first violations under Sec. 13702. 49 U.S.C. 14904(b)(2)............................ Maximum penalty for 3,765 3,887 subsequent violations. 49 U.S.C. 14905(a)............................... Maximum penalty for each 18,826 19,436 knowing violation of Sec. 14103(a), and knowingly authorizing, consenting to, or permitting a violation of Sec. 14103(a) or (b). 49 U.S.C. 14906.................................. Minimum penalty for first 2,577 2,661 attempt to evade regulation. 49 U.S.C. 14906.................................. Minimum amount for each 6,441 6,650 subsequent attempt to evade regulation. 49 U.S.C. 14907.................................. Maximum penalty for 9,413 9,718 recordkeeping/reporting violations. 49 U.S.C. 14908(a)(2)............................ Maximum penalty for 3,765 3,887 violation of Sec. 14908(a)(1). 49 U.S.C. 14910.................................. When another civil 942 973 penalty is not specified under this part, for each violation, for each day. 49 U.S.C. 14915(a)(1)-(2)........................ Minimum penalty for 14,960 15,445 holding a household goods shipment hostage, for each day. 49 U.S.C. 14916(c)(1)............................ Maximum penalty for each 12,883 13,301 knowing violation under Sec. 14916(a) for unlawful brokerage activities. ---------------------------------------------------------------------------------------------------------------- Pipeline Carrier ---------------------------------------------------------------------------------------------------------------- 49 U.S.C. 16101(a)............................... Maximum penalty for 9,413 9,718 violation of this part, for each day. 49 U.S.C. 16101(b)(1), (4)....................... For each recordkeeping 942 973 violation under Sec. 15722, each day. 49 U.S.C. 16101(b)(2), (4)....................... For each inspection 187 193 violation liable under Sec. 15722, each day. 49 U.S.C. 16101(b)(3)-(4)........................ For each reporting 187 193 violation under Sec. 15723, each day. 49 U.S.C. 16103(a)............................... Maximum penalty for 1,881 1,942 improper disclosure of information. ---------------------------------------------------------------------------------------------------------------- [FR Doc. 2024-00592 Filed 1-11-24; 8:45 am] BILLING CODE 4915-01-P
What this changes
Amends 1 part of the Code of Federal Regulations — the standing rules this notice rewrites.
Documents
- Full text (Federal Register) · January 12, 2024
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