[Federal Register: December 23, 2003 (Volume 68, Number 246)]
[Rules and Regulations]               
[Page 74189-74196]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23de03-14]                         

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR PART 27

[USCG-2003-15486]
RIN 1625-AA73

 
Civil Monetary Penalties--Adjustments for Inflation

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard is adjusting fines and other civil monetary 
penalties to reflect the impact of inflation. These adjustments are 
made in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996.

DATES: This final rule is effective January 22, 2004.

ADDRESSES: Material received from the public, as well as documents 
mentioned in this preamble as being available in the docket, are part 
of docket USCG-2003-15486 and are available for

[[Page 74190]]

inspection or copying at the Docket Management Facility, U.S. 
Department of Transportation, room PL-401, 400 Seventh Street, SW., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. You may also find this docket on the Internet 
at http://dms.dot.gov.


FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call Mr. Robert Spears of the Office of Standards Evaluation and 
Development, Coast Guard, telephone 202-267-1099 or 202-267-6826. If 
you have questions on viewing the docket, call Andrea M. Jenkins, 
Program Manager, Docket Operations, Department of Transportation, 
telephone 202-366-0271.

SUPPLEMENTARY INFORMATION:

Background and Purpose

    Many fines or other civil monetary penalties (CMPs) for violating 
Federal laws and regulations were set by Congress long ago, and their 
deterrent value has weakened with time due to inflation. Congress 
recognizes this problem and has devised a mechanism to address it. It 
provides mandatory inflation adjustment formulas and requires Federal 
agencies to adjust their CMPs using those formulas at least once every 
four years, making further direct involvement by Congress unnecessary. 
This mechanism derives from the Federal Civil Penalties Inflation 
Adjustment Act of 1990, Pub. L. 101-410, 104 Stat. 890, Sec. Sec.  1-6, 
as amended by the Debt Collection Improvement Act of 1996, Pub. L. 104-
134, 110 Stat. 1321, Sec.  31001(s)(1); see 28 U.S.C. 2461 note 
(collectively, ``the statute'').
    The Coast Guard is amending 33 CFR 27.3 to update CMP adjustments 
first made in 1997. We expect to repeat the adjustment process in 2007 
and quadrennially thereafter. We are also making two non-substantive 
changes, amending 33 CFR 27.1 to make the legislative authority for CMP 
adjustments clearer, and removing 33 CFR 27.2 which applied 
specifically to the 1997 adjustments and is no longer necessary.

Regulatory Procedure

    This final rule is published without prior notice of proposed 
rulemaking or public comment. Pursuant to the Administrative Procedure 
Act, 5 U.S.C. 553(b)(3)(B), the Coast Guard finds that good cause 
exists for dispensing with notice and comment in this rulemaking. This 
rulemaking implements the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended by the Debt Collection Improvement Act of 1996, 
and with the exception of the non-substantive changes described above, 
that legislation mandates all our actions and allows us no discretion 
in implementation, so that prior notice and comment is unnecessary and 
contrary to the public interest.

Method of Calculation

    The statute (see ``Background and Purpose'') requires inflation 
adjustments to be based on changes in the Consumer Price Index (CPI) 
from June of the calendar year in which the penalties were last set or 
adjusted, through June of the year prior to the adjustment. The statute 
also includes precise rules for rounding penalty increases. It limits 
the first adjustments of an agency's penalties to 10 percent of the 
penalty amounts. Our method of calculation takes into account the 
General Accounting Office (GAO) report ``United States Coast Guard 
Implementation of the Inflation Adjustment Act,'' (GAO-03-221R, Nov. 1, 
2002) and subsequent discussions with the GAO. Table A below sets forth 
each CMP provision which is being increased in 2003 and shows the 
intermediate calculations performed to arrive at the adjusted final 
maximum penalty contained in the last column.
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Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section 
3(f) of Executive Order 12866, Regulatory Planning and Review, and does 
not require an assessment of potential costs and benefits under section 
6(a)(3) of that Order. The Office of Management and Budget has not 
reviewed it under that Order. It is not ``significant'' under the 
regulatory policies and procedures of the Department of Homeland 
Security (DHS).
    We expect the economic impact of this rule to be so minimal that a 
full Regulatory Evaluation under the regulatory policies and procedures 
of DHS is unnecessary. This rule concerns civil monetary penalties 
imposed for violating Federal law and regulations. It has no impact on 
law-abiding persons.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this rule would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000. 
This rule concerns civil monetary penalties imposed for violating 
Federal law and regulations. It has no impact on law-abiding persons.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this final rule will not have a significant economic impact on a 
substantial number of small entities.

Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-121), we will assist 
small entities in understanding this rule. If you are a small entity 
and the Coast Guard has assessed a civil monetary penalty against you, 
let your hearing officer know if you need help understanding the 
provisions of this rule or how it applies to you.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them. We have analyzed this rule under 
that Order and have determined that it does not have implications for 
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 or more in any 
one year. This rule affects only those persons who violate Federal law 
or regulations, and involves no discretion on the part of the Coast 
Guard.

Taking of Private Property

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and

[[Page 74194]]

Interference with Constitutionally Protected Property Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. This rule 
is not an economically significant rule and does not create an 
environmental risk to health or risk to safety that may 
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
because it does 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.

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Environment

    We have analyzed this rule under Commandant Instruction M16475.lD, 
which guides the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have 
concluded that there are no factors in this case that would limit the 
use of a categorical exclusion under section 2.B.2 of the Instruction. 
Therefore, figure 2-1, paragraph (34)(a) of the Instruction 
categorically excludes this rule from further environmental 
documentation. An ``Environmental Analysis Check List'' and a 
``Categorical Exclusion Determination'' are available in the docket 
where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 27

    Marine safety, Oil pollution, Penalties, Vessels, Waterways.

0
For the reasons discussed in the preamble, the Coast Guard amends 33 
CFR part 27 as follows:

PART 27--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION

0
1. Revise the authority citation for part 27 to read as follows:

    Authority: Secs. 1-6, Pub. L. 101-410, 104 Stat. 890, as amended 
by Sec. 31001(s)(1), Pub. L. 104-134, 110 Stat. 1321 (28 U.S.C. 2461 
note); Department of Homeland Security Delegation No. 0170.1, sec. 2 
(106).


0
2. Revise Sec.  27.1 to read as follows:


Sec.  27.1  Applicability.

    This part implements the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, by periodically adjusting the 
maximum civil monetary penalty provided by statute for laws 
administered by the Coast Guard and assessable in either civil judicial 
or administrative proceedings.


Sec.  27.2  [Removed]

0
3. Remove Sec.  27.2.

0
4. Revise Sec.  27.3 to read as follows:


Sec.  27.3  Penalty Adjustment Table.

    Table 1 identifies statutes administered by the Coast Guard that 
authorize a civil monetary penalty. The ``adjusted maximum penalty'' is 
the maximum penalty authorized by the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, as determined by the Coast Guard.

         Table 1.--Civil Monetary Penalty Inflation Adjustments
------------------------------------------------------------------------
                                                             Adjusted
                                  Civil monetary penalty      maximum
       U.S. Code citation              description        penalty amount
                                                               ($)*
------------------------------------------------------------------------
14 U.S.C. 88(c)................  Saving Life and                   6,500
                                  Property.
14 U.S.C. 645(i)...............  Confidentiality of                3,300
                                  Medical Quality
                                  Assurance Records
                                  (first offense).
14 U.S.C. 645(i)...............  Confidentiality of               27,000
                                  Medical Quality
                                  Assurance Records
                                  (subsequent offenses).
33 U.S.C. 471..................  Anchorage Ground/Harbor             110
                                  Regulations General.
33 U.S.C. 474..................  Anchorage Ground/Harbor             220
                                  Regulations St. Mary's
                                  river.
33 U.S.C. 495..................  Bridges/Failure to                1,100
                                  Comply with
                                  Regulations.
33 U.S.C. 499..................  Bridges/Drawbridges....           1,100
33 U.S.C. 502..................  Bridges/Failure to                1,100
                                  Alter Bridge
                                  Obstructing Navigation.
33 U.S.C. 533..................  Bridges/Maintenance and           1,100
                                  Operation.
33 U.S.C. 1208(a)..............  Bridge to Bridge                    650
                                  Communication.
33 U.S.C. 1208(b)..............  Bridge to Bridge                    650
                                  Communication.
33 U.S.C. 1232.................  PWSA Regulations.......          32,500
33 U.S.C. 1236(b)..............  Vessel Navigation:                6,500
                                  Regattas or Marine
                                  Parades.
33 U.S.C. 1236(c)..............  Vessel Navigation:                6,500
                                  Regattas or Marine
                                  Parades.
33 U.S.C. 1236(d)..............  Vessel Navigation:                2,750
                                  Regattas or Marine
                                  Parades.
33 U.S.C. 1319(d)..............  Pollution Prevention...          32,500
33 U.S.C. 1319(g)(2)(A)........  Pollution Prevention             11,000
                                  (per violation).
33 U.S.C. 1319(g)(2)(A)........  Pollution Prevention             32,500
                                  (total under
                                  subparagraph).
33 U.S.C. 1319(g)(2)(B)........  Pollution Prevention             11,000
                                  (per day of violation).
33 U.S.C. 1319(g)(2)(B)........  Pollution Prevention            157,500
                                  (total under
                                  subparagraph).
33 U.S.C. 1321(b)(6)(B)(i).....  Oil/Hazardous                    11,000
                                  Substances: Discharges
                                  (per violation).
33 U.S.C. 1321(b)(6)(B)(i).....  Oil/Hazardous                    32,500
                                  Substances: Discharges
                                  (total under
                                  paragraph).
33 U.S.C. 1321(b)(6)(B)(ii)....  Oil/Hazardous                    11,000
                                  Substances: Discharges
                                  (per day of violation).
33 U.S.C. 1321(b)(6)(B)(ii)....  Oil/Hazardous                   157,500
                                  Substances: Discharges
                                  (total under
                                  paragraph).
33 U.S.C. 1321(b)(7)(A)........  Oil/Hazardous                    32,500
                                  Substances: Discharges
                                  (per day of violation).

[[Page 74195]]


33 U.S.C. 1321(b)(7)(A)........  Oil/Hazardous                     1,100
                                  Substances: Discharges
                                  (per barrel of oil or
                                  unit of hazsub
                                  discharged).
33 U.S.C. 1321(b)(7)(B)........  Oil/Hazardous                    32,500
                                  Substances: Discharges.
33 U.S.C. 1321(b)(7)(C)........  Oil/Hazardous                    32,500
                                  Substances: Discharges.
33 U.S.C. 1321(b)(7)(D)........  Oil/Hazardous                     3,300
                                  Substances: Discharges
                                  (per barrel of oil or
                                  unit of hazsub
                                  discharged)..
33 U.S.C. 1321(j)..............  Oil/Hazardous                    32,500
                                  Substances: Prevention
                                  Regulations.
33 U.S.C. 1322(j)..............  Marine Sanitation                 2,200
                                  Devices.
33 U.S.C. 1322(j)..............  Marine Sanitation                 6,500
                                  Devices.
33 U.S.C. 1517(a)..............  Deepwater Ports                  11,000
                                  Regulations.
33 U.S.C. 1608(a)..............  International                     6,500
                                  Regulations.
33 U.S.C. 1608(b)..............  International                     6,500
                                  Regulations.
33 U.S.C. 1908(b)(1)...........  Pollution from Ships...          32,500
33 U.S.C. 1908(b)(2)...........  Pollution from Ships...           6,500
33 U.S.C. 2072(a)..............  Inland Navigation Rules           6,500
33 U.S.C. 2072(b)..............  Inland Navigation Rules           6,500
33 U.S.C. 2609(a)..............  Shore Protection.......          32,500
33 U.S.C. 2609(b)..............  Shore Protection.......          11,000
33 U.S.C. 2716a(a).............  Oil Pollution Liability          32,500
                                  and Compensation.
46 U.S.C. 1505(a)..............  Safe Containers for               6,500
                                  International Cargo.
46 U.S.C. App 1805(c)(2).......  Suspension of passenger          60,000
                                  service.
46 U.S.C. 2110(e)..............  Vessel inspection or              6,500
                                  examination fees.
46 U.S.C. 2115.................  Alcohol and dangerous             5,500
                                  drug testing.
46 U.S.C. 2302(a)..............  Negligent operations:             5,000
                                  recreational vessels.
46 U.S.C. 2302(a)..............  Negligent operations:            25,000
                                  other vessels.
46 U.S.C. 2302(c)(1)...........  Negligent operations...           5,500
46 U.S.C. 2306(a)(2)(B)(4).....  Vessel Reporting                  6,500
                                  Requirements: Owner.
46 U.S.C. 2306(b)(2)...........  Vessel Reporting                  1,100
                                  Requirements: Master.
46 U.S.C. 3102(c)(1)...........  Immersion suits........           6,500
46 U.S.C. 3302(i)(5)...........  Inspection Permit......           1,100
46 U.S.C. 3318(a)..............  Vessel inspection......           6,500
46 U.S.C. 3318(g)..............  Vessel inspection......           6,500
46 U.S.C. 3318(h)..............  Vessel inspection......           1,100
46 U.S.C. 3318(i)..............  Vessel inspection......           1,100
46 U.S.C. 3318(j)(1)...........  Vessel inspection......          11,000
46 U.S.C. 3318(j)(1)...........  Vessel inspection......           2,200
46 U.S.C. 3318(k)..............  Vessel inspection......          11,000
46 U.S.C. 3318(l)..............  Vessel inspection......           6,500
46 U.S.C. 3502(e)..............  List/count of                       110
                                  passengers.
46 U.S.C. 3504(c)..............  Notification to                  11,000
                                  passengers.
46 U.S.C. 3504(c)..............  Notification to                     650
                                  passengers.
46 U.S.C. 3506.................  Copies of laws on                   220
                                  passenger vessels.
46 U.S.C. 3718(a)(1)...........  Dangerous cargo                  32,500
                                  carriage.
46 U.S.C. 4106.................  Uninspected vessels....           6,500
46 U.S.C. 4311(b)..............  Recreational vessels            120,000
                                  (maximum for related
                                  series of violations).
46 U.S.C. 4311(b)..............  Recreational vessels...           2,200
46 U.S.C. 4311(c)..............  Recreational vessels...           1,100
46 U.S.C. 4507.................  Vessel inspection......           6,500
46 U.S.C. 4703.................  Abandonment of barges..           1,100
46 U.S.C. 5116(a)..............  Load lines.............           6,500
46 U.S.C. 5116(b)..............  Load lines.............          11,000
46 U.S.C. 5116(c)..............  Load lines.............           6,500
46 U.S.C. 6103(a)..............  Reporting marine                 27,500
                                  casualties.
46 U.S.C. 6103(b)..............  Reporting marine                  6,500
                                  casualties.
46 U.S.C. 8101(e)..............  Manning of inspected              1,100
                                  vessels.
46 U.S.C. 8101(f)..............  Manning of inspected             11,000
                                  vessels.
46 U.S.C. 8101(g)..............  Manning of inspected             11,000
                                  vessels.
46 U.S.C. 8101(h)..............  Manning of inspected              1,100
                                  vessels.
46 U.S.C. 8102(a)..............  Watchmen on passenger             1,100
                                  vessels.
46 U.S.C. 8103(f)..............  Citizenship                         650
                                  requirements.
46 U.S.C. 8104(i)..............  Watches on vessels.....          11,000
46 U.S.C. 8104(j)..............  Watches on vessels.....          11,000
46 U.S.C. 8302(e)..............  Staff department on                 110
                                  vessels.
46 U.S.C. 8304(d)..............  Officer's competency                110
                                  certificates.
46 U.S.C. 8502(e)..............  Coastwise Pilotage.....          11,000
46 U.S.C. 8502(f)..............  Coastwise Pilotage.....          11,000
46 U.S.C. 8503.................  Federal Pilots.........          32,500
46 U.S.C. 8701(d)..............  Merchant mariners                   650
                                  documents.
46 U.S.C. 8702(e)..............  Crew requirements......          11,000
46 U.S.C. 8906.................  Small vessel manning...          27,500

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46 U.S.C. 9308(a)..............  Pilotage: Great Lakes..          11,000
46 U.S.C. 9308(b)..............  Pilotage: Great Lakes..          11,000
46 U.S.C. 9308(c)..............  Pilotage: Great Lakes..          11,000
46 U.S.C. 10104(b).............  Failure to report                 6,500
                                  sexual offense.
46 U.S.C. 10307................  Posting of agreements..             110
46 U.S.C. 10308(b).............  Foreign engagements by              110
                                  seamen.
46 U.S.C. 10309(b).............  Replacement of lost/                220
                                  deserted seamen.
46 U.S.C. 10310................  Discharge of seamen....              65
46 U.S.C. 10312(c).............  Foreign/intercoastal                110
                                  voyages.
46 U.S.C. 10314(a)(2)..........  Pay advances to seamen.             650
46 U.S.C. 10314(b).............  Pay advances to seamen.             650
46 U.S.C. 10315(c).............  Allotment to seamen....             650
46 U.S.C. 10321................  Seamen protection:                  220
                                  general.
46 U.S.C. 10505(b).............  Advances...............             650
46 U.S.C. 10508(b).............  Seamen protection:                   22
                                  general.
46 U.S.C. 10711................  Effects of deceased                 220
                                  seamen.
46 U.S.C. 10902(a)(2)..........  Complaints of unfitness             650
46 U.S.C. 10903(d).............  Proceedings on                      110
                                  examination of vessel.
46 U.S.C. 10907(b).............  Permission to make                  650
                                  complaint.
46 U.S.C. 11101(f).............  Accommodations for                  650
                                  seamen.
46 U.S.C. 11102(b).............  Medicine chests on                  650
                                  vessels.
46 U.S.C. 11104(b).............  Destitute seamen.......             110
46 U.S.C. 11105(c).............  Wages on discharge.....             650
46 U.S.C. 11303(a).............  Log books..............             220
46 U.S.C. 11303(b).............  Log books..............             220
46 U.S.C. 11303(c).............  Log books..............             165
46 U.S.C. 11506................  Carrying of sheath                   65
                                  knives.
46 U.S.C. 12122(a).............  Identification of                11,000
                                  vessels.
46 U.S.C. 12122(c).............  Vessel Documentation...         110,000
46 U.S.C. 12309(b).............  Numbering of                      1,100
                                  undocumented vessels.
46 U.S.C. 12507(b).............  Vessel identification            11,000
                                  system.
46 U.S.C. 14701................  Measurement of vessels.          27,000
46 U.S.C. 14701................  Registry/recording:              27,000
                                  tonnage.
46 U.S.C. 14702................  Measurement/false                27,000
                                  statements.
46 U.S.C. 31309................  Instruments and liens..          11,000
49 U.S.C. 5123(a)(1)**.........  Hazardous materials--           32,500
                                  related to vessels.
------------------------------------------------------------------------
* The penalty amounts listed in this column include penalties that were
  adjusted in 1997 and 2003; some penalties that were adjusted in 1997
  did not qualify for an adjustment this year according to the rounding
  rules. However, we decided to include the adjusted 1997 penalties that
  were not adjusted in 2003 to show the comprehensive list of civil
  penalties.
** 49 U.S.C. 5123(a)(1) was formerly 49 U.S.C. 1809(a)(1).


    Dated: December 5, 2003.
L.L. Hereth,
Rear Admiral, Coast Guard, Acting Assistant Commandant for Marine 
Safety, Security and Environmental Protection.
[FR Doc. 03-31491 Filed 12-22-03; 8:45 am]

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