Rule2024-00592
Civil Monetary Penalties-2024 Adjustment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 12, 2024
Effective
January 12, 2024
Issuing agencies
Surface Transportation Board
Abstract
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.
Full Text
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<title>Federal Register, Volume 89 Issue 9 (Friday, January 12, 2024)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-00592]
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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.
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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.
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\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.
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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)
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2023-- Penalty 2024-- Adjusted
Civil monetary penalty amount penalty amount
U.S. Code citation description -----------------------------------
EP 716_8 (2023) EP 716_9 (2024)
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Rail Carrier
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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.
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Motor and Water Carrier
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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.
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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.
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Pipeline Carrier
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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.
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[FR Doc. 2024-00592 Filed 1-11-24; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on January 12, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.