[Code of Federal Regulations]
[Title 14, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR13.16]

[Page 34-37]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES--Table of Contents
 
                  Subpart C--Legal Enforcement Actions
 
Sec. 13.16  Civil penalties: Federal Aviation Act of 1958, involving an amount in controversy not exceeding $50,000; Hazardous Materials Transportation Act.

    (a) General. The following penalties apply to persons who violate 
the Federal Aviation Act of 1958, as amended, and the Hazardous 
Materials Transportation Act:
    (1) Any person who violates any provision of title III, V, VI, or 
XII of the Federal Aviation Act of 1958, as amended, or any rule, 
regulation, or order issued thereunder, is subject to a civil penalty of 
not more than the amount specified in the Act for each violation in 
accordance with section 901 of the Federal Aviation Act, of 1958, as 
amended (49 U.S.C. 1471, et seq.).
    (2) Any person who violates section 404(d) of the Federal Aviation 
Act of 1958, as amended, or any rule, regulation, or order issued 
thereunder, is subject to a civil penalty of not more than the amount 
specified in the Act for each violation in accordance with section 
404(d) or section 901 of the Federal Aviation Act of 1958, as amended 
(49 U.S.C. 1374, 1471, et seq.).
    (3) Any person who operates aircraft for the carriage of persons or 
property for compensation or hire (other than an airman serving in the 
capacity of an airman) is subject to a civil penalty of not more than 
$10,000 for each violation of title III, VI, or XII of the Federal 
Aviation Act of 1958, as amended, or any rule, regulation, or order 
issued thereunder, occurring after December 30, 1987, in accordance with 
section 901 of the Federal Aviation Act of 1958, as amended (49 U.S.C. 
1471, et seq.).
    (4) Any person who knowingly commits an act in violation of the 
Hazardous Materials Transportation Act, or any rule, regulation, or 
order issued thereunder, is subject to a civil penalty of not more than 
$10,000 for each violation in accordance with section 901 of the Federal 
Aviation Act of 1958, as amended, and section 110 of the Hazardous 
Materials Transportation Act (49 U.S.C. 1471 and 1809, et seq.). An 
order assessing civil penalty for a violation under the Hazardous 
Materials Transportation Act, or a rule, regulation, or order issued 
thereunder, will be issued only after consideration of--
    (i) The nature and circumstances of the violation;
    (ii) The extent and gravity of the violation;
    (iii) The person's degree of culpability;
    (iv) The person's history of prior violations;
    (v) The person's ability to pay the civil penalty;
    (vi) The effect on the person's ability to continue in business; and
    (vii) Such other matters as justice may require.
    (b) Order assessing civil penalty. An order assessing civil penalty 
may be issued for a violation described in paragraph (a) of this 
section, or as otherwise provided by statute, after notice and 
opportunity for a hearing. A person charged with a violation may be 
subject to an order assessing civil penalty in the following 
circumstances:
    (1) An order assessing civil penalty may be issued if a person 
charged with a violation submits or agrees to submit a civil penalty for 
a violation.
    (2) An order assessing civil penalty may be issued if a person 
charged with a violation does not request a hearing under paragraph 
(e)(2)(ii) of this section within 15 days after receipt of a final 
notice of proposed civil penalty.
    (3) Unless an appeal is filed with the FAA decisionmaker in a timely 
manner, an initial decision or order of an administrative law judge 
shall be considered an order assessing civil penalty if an 
administrative law judge finds that an alleged violation occurred and 
determines that a civil penalty, in an amount found appropriate by the 
administrative law judge, is warranted.

[[Page 35]]

    (4) Unless a petition for review is filed with a U.S. Court of 
Appeals in a timely manner, a final decision and order of the 
Administrator shall be considered an order assessing civil penalty if 
the FAA decisionmaker finds that an alleged violation occurred and a 
civil penalty is warranted.
    (c) Delegation of authority. The authority of the Administrator, 
under section 901 and section 905 of the Federal Aviation Act of 1958, 
as amended, and section 110 of the Hazardous Materials Transportation 
Act, to initiate and assess civil penalties for a violation of those 
Acts, or a rule, regulation, or order issued thereunder, is delegated to 
the Deputy Chief Counsel, the Assistant Chief Counsel, Enforcement, the 
Assistant Chief Counsel, Regulations, the Assistant Chief Counsel, 
Europe, Africa, and Middle East Area Office, each Regional Counsel, the 
Aeronautical Center Counsel, and the Technical Center Counsel. The 
authority of the Administrator to refer cases to the Attorney General of 
the United States, or the delegate of the Attorney General, for the 
collection of civil penalties, is delegated to the Chief Counsel, the 
Deputy Chief Counsel, the Assistant Chief Counsel, Enforcement, the 
Assistant Chief Counsel, Regulations, the Assistant Chief Counsel, 
Europe, Africa, and Middle East Area Office, each Regional Counsel, the 
Aeronautical Center Counsel, and the Technical Center Counsel.
    (d) Notice of proposed civil penalty. A civil penalty action is 
initiated by sending a notice of proposed civil penalty to the person 
charged with a violation of the Federal Aviation Act of 1958, as 
amended, the Hazardous Materials Transportation Act, or a rule, 
regulation, or order issued thereunder. A notice of proposed civil 
penalty will be sent to the individual charged with a violation or to 
the president of the corporation or company charged with a violation. In 
response to a notice of proposed civil penalty, a corporation or company 
may designate in writing another person to receive documents in that 
civil penalty action. The notice of proposed civil penalty contains a 
statement of the charges and the amount of the proposed civil penalty. 
Not later than 30 days after receipt of the notice of proposed civil 
penalty, the person charged with a violation shall--
    (1) Submit the amount of the proposed civil penalty or an agreed-
upon amount, in which case either an order assessing civil penalty or 
compromise order shall be issued in that amount;
    (2) Submit to the agency attorney one of the following:
    (i) Written information, including documents and witness statements, 
demonstrating that a violation of the regulations did not occur or that 
a penalty or the amount of the penalty is not warranted by the 
circumstances.
    (ii) A written request to reduce the proposed civil penalty, the 
amount of reduction, and the reasons and any documents supporting a 
reduction of the proposed civil penalty, including records indicating a 
financial inability to pay or records showing that payment of the 
proposed civil penalty would prevent the person from continuing in 
business.
    (iii) A written request for an informal conference to discuss the 
matter with the agency attorney and to submit relevant information or 
documents; or
    (3) Request a hearing in which case a complaint shall be filed with 
the hearing docket clerk.
    (e) Final notice of proposed civil penalty. A final notice of 
proposed civil penalty may be issued after participation in informal 
procedures provided in paragraph (d)(2) of this section or failure to 
respond in a time1y manner to a notice of proposed civil penalty. A 
final notice of proposed civil penalty will be sent to the individual 
charged with a violation, to the president of the corporation or company 
charged with a violation, or a person previously designated in writing 
by the individual, corporation, or company to receive documents in that 
civil penalty action. If not previously done in response to a notice of 
proposed civil penalty, a corporation or company may designate in 
writing another person to receive documents in that civil penalty 
action. The final notice of proposed civil penalty contains a statement 
of the charges and the amount of the proposed civil penalty and, as a 
result of information submitted to the agency attorney during informal 
procedures, may modify

[[Page 36]]

an allegation or a proposed civil penalty contained in a notice of 
proposed civil penalty.
    (1) A final notice of proposed civil penalty may be issued--
    (i) If the person charged with a violation fails to respond to the 
notice of proposed civil penalty within 30 days after receipt of that 
notice; or
    (ii) If the parties participated in any informal procedures under 
paragraph (d)(2) of this section and the parties have not agreed to 
compromise the action or the agency attorney has not agreed to withdraw 
the notice of proposed civil penalty.
    (2) Not later than 15 days after receipt of the final notice of 
proposed civil penalty, the person charged with a violation shall do one 
of the following--
    (i) Submit the amount of the proposed civil penalty or an agreed-
upon amount, in which case either an order assessing civil penalty or a 
compromise order shall be issued in that amount; or
    (ii) Request a hearing in which case a complaint shall be filed with 
the hearing docket clerk.
    (f) Request for a hearing. Any person charged with a violation may 
request a hearing, pursuant to paragraph (d)(3) or paragraph (e)(2)(ii) 
of this section, to be conducted in accordance with the procedures in 
subpart G of this part. A person requesting a hearing shall file a 
written request for a hearing with the hearing docket clerk (Hearing 
Docket, Federal Aviation Administration, 800 Independence Avenue, SW., 
Room 924A, Washington, DC 20591, Attention: Hearing Docket Clerk) and 
shall mail a copy of the request to the agency attorney. The request for 
a hearing may be in the form of a letter but must be dated and signed by 
the person requesting a hearing. The request for a hearing may be 
typewritten or may be legibly handwritten.
    (g) Hearing. If the person charged with a violation requests a 
hearing pursuant to paragraph (d)(3) or paragraph (e)(2)(ii) of this 
section, the original complaint shall be filed with the hearing docket 
clerk and a copy shall be sent to the person requesting the hearing. The 
procedural rules in subpart G of this part apply to the hearing and any 
appeal. At the close of the hearing, the administrative law judge shall 
issue, either orally on the record or in writing, an initial decision, 
including the reasons for the decision, that contains findings or 
conclusions on the allegations contained, and the civil penalty sought, 
in the complaint.
    (h) Appeal. Either party may appeal the administrative law judge's 
initial decision to the FAA decisionmaker pursuant to the procedures in 
subpart G of this part. If a party files a notice of appeal pursuant to 
Sec. 13.233 of subpart G, the effectiveness of the initial decision is 
stayed until a final decision and order of the Administrator have been 
entered on the record. The FAA decisionmaker shall review the record and 
issue a final decision and order of the Administrator that affirm, 
modify, or reverse the initial decision. The FAA decisionmaker may 
assess a civil penalty but shall not assess a civil penalty in an amount 
greater than that sought in the complaint.
    (i) Payment. A person shall pay a civil penalty by sending a 
certified check or money order, payable to the Federal Aviation 
Administration, to the agency attorney.
    (j) Collection of civil penalties. If a person does not pay a civil 
penalty imposed by an order assessing civil penalty or a compromise 
order within 60 days after service of the order, the Administrator may 
refer the order to the United States Attorney General, or the delegate 
of the Attorney General, to begin proceedings to collect the civil 
penalty. The action shall be brought in a United States District Court, 
pursuant to the authority in section 903 of the Federal Aviation Act of 
1958, as amended (49 U.S.C. 1473), or section 110 of the Hazardous 
Materials Transportation Act (49 U.S.C. 1809).
    (k) Exhaustion of administrative remedies. A party may only petition 
for review of a final decision and order of the Administrator to the 
courts of appeals of the United States or the United States Court of 
Appeals for the District of Columbia pursuant to section 1006 of the 
Federal Aviation Act of 1958, as amended. Neither an initial decision or 
order issued by an administrative law judge, that has not been appealed 
to

[[Page 37]]

the FAA decisionmaker, nor an order compromising a civil penalty action 
constitutes a final order of the Administrator for the purposes of 
judicial appellate review under section 1006 of the Federal Aviation Act 
of 1958, as amended.
    (l) Compromise. The FAA may compromise any civil penalty action 
initiated in accordance with section 901 and section 905 of the Federal 
Aviation Act of 1958, as amended, involving an amount in controversy not 
exceeding $50,000, or any civil penalty action initiated in accordance 
with section 901 of the Federal Aviation Act of 1958, as amended, and 
section 110 of the Hazardous Materials Transportation Act, at any time 
before referring the action to the United States Attorney for 
collection.
    (1) An agency attorney may compromise any civil penalty action where 
a person charged with a violation agrees to pay a civil penalty and the 
FAA agrees to make no finding of violation. Pursuant to such agreement, 
a compromise order shall be issued, stating:
    (i) The person agrees to pay a civil penalty.
    (ii) The FAA makes no finding of a violation.
    (iii) The compromise order shall not be used as evidence of a prior 
violation in any subsequent civil penalty proceeding or certificate 
action proceeding.
    (2) An agency attorney may compromise the amount of any civil 
penalty proposed in a notice, assessed in an order, or imposed in a 
compromise order.

[Amdt. 13-21, 55 FR 27574, July 3, 1990; 55 FR 29293, July 18, 1990; 55 
FR 31027, July 30, 1990; Amdt. 13-29, 62 FR 46865, Sept. 4, 1997]