Jump to main content.

Regulated Transaction Involving Documented Vessels and Other Maritime Interests; Inflation Adjustment of Civil Monetary Penalties

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

 [Federal Register: June 4, 2003 (Volume 68, Number 107)]
[Rules and Regulations]
[Page 33405-33407]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04jn03-30]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 221
[Docket No. MARAD 2003-15288]
RIN 2133-AB48
 
Regulated Transaction Involving Documented Vessels and Other 
Maritime Interests; Inflation Adjustment of Civil Monetary Penalties

AGENCY: Maritime Administration, DOT.
ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Monetary Penalty 
Inflation Adjustment Act of 1996, as amended by the Debt Collection 
Improvement Act of 1996, this final rule incorporates inflation 
adjustments for the civil monetary penalties described in procedural 
regulations of the Maritime Administration (MARAD, we, us, our) 
contained in Subpart E of 46 CFR part 221.

EFFECTIVE DATE: This final rule is effective on June 4, 2003.

FOR FURTHER INFORMATION CONTACT: Joe Macey, Attorney-Advisor, Office of 
Chief Counsel, Division of Maritime Programs, Maritime Administration, 
at (202) 366-5182, fax (202) 366-7485.

SUPPLEMENTARY INFORMATION: 

The Debt Collection Improvement Act of 1996

    In an effort to maintain the remedial impact of civil monetary 
penalties (CMPs) and promote compliance with law, the Federal Civil 
Monetary Penalty Inflation Adjustment Act of 1990 (Pub. L. 101-410) was 
amended by the Debt Collection Improvement Act of 1996

[[Page 33406]]

(Pub. L. 104-134) to require Federal agencies to regularly adjust CMPs 
for inflation. As amended, the law requires each agency to make an 
initial inflationary adjustment for all applicable CMPs, with specified 
exemptions, and to make further adjustments at lease once every four 
years thereafter. The Debt Collection Improvement Act of 1996 further 
stipulates that any resulting increases in a CMP due to the calculated 
inflation adjustments (i) should apply only to the violations that 
occur after October 23, 1996, the Act's effective date, and (ii) should 
not exceed 10 percent of the penalty indicated.

Method of Calculation

    Under the Act, the inflation adjustment for each applicable CMP is 
determined by increasing the maximum CMP amount per violation by the 
cost of living adjustment. The ``cost of living'' adjustment is defined 
as the percentage of each CMP by which the Consumer Price Index (CPI) 
for the month of June of the calendar year preceding the adjustment 
exceeds the CPI for the month of June of the calendar year in which the 
amount of the CMP was last set or adjusted pursuant to law. Any 
calculated increase under this adjustment is subject to a specific 
rounding formula set in the Act.

Civil Penalties Under 46 U.S.C. 31309 and 31330; 46 App. U.S.C. 808

    MARAD has provisions in its regulations at 46 CFR part 221 
prescribing procedures for three civil penalties that it may assess 
under the following authorities:
    1. 46 U.S.C. 31309-a general civil penalty of up to $11,000 for 
violation of 46 U.S.C. Chapter 313-Commercial Instruments and Maritime 
Liens.
    2. 46 U.S.C. 31330-a penalty of up to $27,500 for violation of 46 
U.S.C. 31328 or 31329, relating to requirements for trustees of 
mortgaged vessels and vessel interests and purchasers of documented 
vessels under order of a district court.
    3. 46 App. U.S.C. 808-a penalty of up to $11,000 for the unlawful 
transfer of a documented vessel or interests therein.
    MARAD is amending its regulations at 46 CFR 221.61 to adjust the 
maximum amount of each of these three civil monetary penalties. Each of 
the $11,000 maximum penalties in being increased to $12,000. The 
$27,500 maximum penalty is being increased to $30,000.

Rulemaking Analysis and Notices

Executive Order 12866 (Regulatory Planning and Review), and Department 
of Transportation (DOT) Regulatory Policies; Pub. L. 104-121

    This final rule is exempt from review of OMB under E.O. 12866 
because it is limited to the adoption of statutory language without 
interpretation. Additionally, this final rule is not likely to result 
in an annual effect on the economy of $100 million or more. It also is 
not considered a major rule for purposes of Congressional review under 
Pub. L. 104-121.
    This final rule is also not significant under the Regulatory 
Policies and Procedures of the Department of Transportation (44 FR 
11034, February 26, 1979). The costs and benefits associated with this 
rulemaking are so minimal that no further analysis is necessary. 
Because the economic impact should be minimal, further regulatory 
evaluation is not necessary.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to the notice and comment procedures because they are 
unnecessary or contrary to the public interest. MARAD finds that under 
5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with notice and 
comment since this rule only implemented statutory authority as 
mandated in Pub. L. 104-134, with no issues of policy discretion. 
Accordingly, opportunity for public comment is unnecessary.

Federalism

    We analyzed this final rule in accordance with the principles and 
criteria contained in E.O. 13132 (``Federalism'') and have determined 
that it does not have sufficient federalism implications to warrant the 
preparation of a federalism summary impact statement. The regulations 
have no substantial effects on the States, or on the current Federal-
State relationship, or on the current distribution of power and 
responsibilities among the various local officials. Therefore, 
consultation with State and local officials was not necessary.

Regulatory Flexibility

    The Maritime Administrator certifies that this final rule will not 
have a significant economic impact on a substantial number of small 
entities. Any penalties that may be assessed by MARAD will take into 
account the party's ability to pay and the nature, circumstances, 
extent and gravity of the violation committed and, with respect to the 
Party, the degree of culpability, and history of prior offenses, and 
other factors that justice may require. The aggregate impact of any 
enforcement action that might be taken by MARAD on violations will not 
have a significant economic impact on small businesses entities.

Environmental Assessment

    We have analyzed this Final rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
and have concluded that under the categorical exclusions provision in 
section 4.05 of Maritime Administrative Order (``MAO'') 600-1, 
``Procedures for Considering Environmental Impacts,'' 50 FR 11606 
(March 22, 1985), the preparation of an Environmental Assessment, and 
an Environmental Impact Statement, or a Finding of No Significant 
Impact for this rulemaking is not required. This rulemaking involves 
civil penalties and has no environmental impact.

Paperwork Reduction

    This rulemaking contains no new or amended information collection 
or recordkeeping requirements which have been or require approval by 
the Office of Management and Budget.

Unfunded Mandates Reform Act of 1995

    This final rule would not impose an unfunded mandate under the 
Unfunded Mandates Reform Act of 1995. It would not result in costs of 
$100 million or more, in the aggregate, to any of the following: State, 
local, or Native American tribal governments, or the private sector. 
This final rule is the least burdensome alternative that achieves the 
objective of the Federal Civil Monetary Penalty Inflation Adjustment 
Act of 1996, as amended by the Debt Collection Improvement Act of 1996.

List of Subjects in 46 CFR Part 221

    Maritime carriers, Mortgages, Reporting and recordkeeping 
requirements, Trust and trustees.

? Accordingly, 46 CFR part 221 is amended as follows:
? 1. The authority citation continues to read as follows:

    Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 114(b), 
1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 1.66 2.

? 2. Section 221.61 is revised to read as follows:

[[Page 33407]]

Sec.  221.61  Purpose.

    This subpart describes procedures for the administration of civil 
penalties that the Maritime Administration may assess under 46 U.S.C. 
31309 and 31330, and section 9(d) of the Shipping Act, 1916, as amended 
(46 App. U.S.C. 808(d)), pursuant to 49 U.S.C. 336.

    Note: Pursuant to 46 U.S.C. 31309, a general penalty of not more 
than $12,000 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. 31328 or 31329 and the regulations 
promulgated thereunder is liable for a civil penalty of not more 
than $30,000 for each violation. A person that charters, sells, 
transfers or mortgages a vessel, or an interest therein, in 
violation of 46 App. U.S.C. 808 is liable for a civil penalty of not 
more than $12,000 for each violation. These penalty amounts are in 
accordance with Pub. L. 101-410, amended by Pub. L. 104-134. 
Criminal penalties may also apply to violations of these statutes.

    Dated: May 29, 2003.

    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 03-13954 Filed 6-3-03; 8:45 am]
BILLING CODE 4910-81-M

 
 

Local Navigation

Jump to main content.