Inflation Adjustment of Civil Monetary Penalties
Primary source
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Issuing agencies
Abstract
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.
Full Text
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<title>Federal Register, Volume 90 Issue 8 (Tuesday, January 14, 2025)</title>
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[Federal Register Volume 90, Number 8 (Tuesday, January 14, 2025)]
[Rules and Regulations]
[Pages 3039-3041]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00630]
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FEDERAL MARITIME COMMISSION
46 CFR Part 506
[Docket No. FMC-2024-0024]
RIN 3072-AD03
Inflation Adjustment of Civil Monetary Penalties
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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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, 2025.
FOR FURTHER INFORMATION CONTACT: David Eng, Secretary; Phone: (202)
523-5725; Email: <a href="/cdn-cgi/l/email-protection#87d4e2e4f5e2f3e6f5fec7e1eae4a9e0e8f1"><span class="__cf_email__" data-cfemail="1546707667706174676c557378763b727a63">[email protected]</span></a>.
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
[[Page 3040]]
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 17, 2024, the Office of Management
and Budget published guidance stating that based on the CPI-U for
October 2024, not seasonally adjusted, the cost-of-living adjustment
multiplier for 2025 is 1.02598.\1\ 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, 1.02598.
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\1\ Office of Management and Budget, M-25-02, Implementation of
Penalty Inflation Adjustments for 2025, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015,
at 2 (Dec. 17, 2024) (M-25-02).
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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\ The 2015 Act
requires that the Commission adjust its civil monetary penalties no
later than January 15 of each year.
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\2\ Federal Civil Penalties Inflation Adjustment Act of 1990,
Public Law 101-410, section 4(b)(2), 104 Stat. 890 (codified at 28
U.S.C. 2461 note).
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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).
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
0
1. The authority citation for part 506 continues to read as follows:
Authority: 28 U.S.C. 2461.
0
2. Amend Sec. 506.4 by revising paragraph (d) to read as follows:
Sec. 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:
Table 1 to Paragraph (d)
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Maximum penalty Maximum penalty
United States Code citation Civil monetary penalty as of January as of January 15,
description 15, 2024 2025
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46 U.S.C. 42304.................................. Adverse impact on U.S. $2,559,636 $2,626,135
carriers by foreign
shipping practices.
46 U.S.C. 41107(a)............................... Knowing and Willful 73,045 74,943
violation/Shipping Act
of 1984, or Commission
regulation or order.
46 U.S.C. 41107(a)............................... Violation of Shipping Act 14,608 14,988
of 1984, Commission
regulation or order, not
knowing and willful.
46 U.S.C. 41108(b)............................... Operating in foreign 146,092 149,887
commerce after tariff
suspension.
46 U.S.C. 42104.................................. Failure to provide 11,524 11,823
required reports, etc./
Merchant Marine Act of
1920.
46 U.S.C. 42106.................................. Adverse shipping 2,304,629 2,364,503
conditions/Merchant
Marine Act of 1920.
46 U.S.C. 42108.................................. Operating after tariff or 115,231 118,225
service contract
suspension/Merchant
Marine Act of 1920.
46 U.S.C. 44102, 44104........................... Failure to establish 29,108 29,864
financial responsibility 971 996
for non-performance of
transportation.
46 U.S.C. 44103, 44104........................... Failure to establish 29,108 29,864
financial responsibility 971 996
for death or injury.
31 U.S.C. 3802(a)(1)............................. Program Fraud Civil 13,946 14,308
Remedies Act/making
false claim.
31 U.S.C. 3802(a)(2)............................. Program Fraud Civil 13,946 14,308
Remedies Act/giving
false statement.
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[[Page 3041]]
By the Commission.
David Eng,
Secretary.
[FR Doc. 2025-00630 Filed 1-13-25; 8:45 am]
BILLING CODE 6730-02-P
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