[Federal Register: July 9, 2004 (Volume 69, Number 131)]
[Rules and Regulations]               
[Page 41423-41424]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09jy04-23]                         

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary

14 CFR Part 383

[Docket No. OST-2004-18560]
RIN 2105-AD40

 
Civil Penalties

AGENCY: Office of the Secretary (OST), DOT.

ACTION: Final rule.

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SUMMARY: The recently enacted Vision 100--Century of Aviation 
Reauthorization Act revised the civil penalty provisions applicable to 
violations of the aviation economic requirements of Title 49. By this 
rule, the Department is revising 14 CFR Part 383 to reflect these 
revised civil penalties.

DATES: Effective Date: This rule is effective on August 9, 2004. 
However, the statutory amendments it reflects became effective on 
December 12, 2003, by their own terms.

FOR FURTHER INFORMATION CONTACT: Nicholas Lowry, Attorney, Office of 
Aviation Enforcement and Proceedings (C-70), Office of the General 
Counsel, Department of Transportation, 400 7th St., SW., Washington, DC 
20590, (202) 366-9349.

SUPPLEMENTARY INFORMATION: Vision 100 revised the civil penalty 
provisions applicable to violations of Title 49. With respect to 
violations of economic requirements contained in Title 49, chapters 401 
through 421, and rules and orders issued thereunder, the new civil 
penalty provisions are as follows:

    (1) A general civil penalty of not more than $25,000 (or $1,100 
for individuals or small businesses) instead of the prior general 
penalty of $1,000 (adjusted by regulation to $1,100 to reflect 
inflation), applies to violations of statutory provisions and rules 
or orders issued under those provisions, other than those listed 
below. (see 49 U.S.C. 46301(a)(1));
    (2) With respect to small businesses and individuals, 
notwithstanding the general $1,100 civil penalty, the statute 
provides for:
    (a) A maximum civil penalty of $10,000 for violations of most 
provisions of Chapter 401, including the anti-discrimination 
provisions of sections 40127 (general provision), and 41705 
(discrimination against the disabled) or rules or orders issued 
thereunder (see 49 U.S.C. 46301 (a)(5) (A));
    (b) A maximum civil penalty of $5,000 for violations of section 
41719 or rules or orders issued thereunder (49 U.S.C. 46301 
(a)(5)(C); and
    (c) A maximum civil penalty of $2,500 for violations of section 
41712 or consumer protection rules or orders (49 U.S.C. 46301 
(a)(5)(D)).

    This amendment incorporates these Vision 100 penalty revisions into 
14 CFR Part 383, the regulatory codification of the related civil 
penalty provisions.

Regulatory Analyses and Notices

    In developing this final rule, we are waiving the usual notice of 
proposed rulemaking and public comment procedures set forth in the 
Administrative Procedure Act (APA) (5 U.S.C. 553). The APA provides an 
exception to the notice and comment procedures when an agency finds 
there is good cause for dispensing with such procedures when they are 
impracticable, unnecessary or contrary to the public interest. We have 
determined that under 5 U.S.C. 553(b)(3)(B) good cause exists for 
dispensing with the notice of proposed rulemaking and public comment 
procedures for this rule. Specifically, this rulemaking is consistent 
with the statutory authority set forth in Vision 100, and raises no 
issues of policy discretion. Accordingly, we believe that opportunity 
for prior comment is unnecessary and contrary to the public interest, 
and we are issuing these revised regulations as a final rule.
    This final rule is exempt from review by the Office of Management 
and Budget (OMB) in accordance with provisions of Executive Order 
12866, because it is limited to the adoption of statutory language, 
without interpretation. The great majority of persons covered by these 
regulations do not engage in the prohibited conduct subject to the 
revised civil penalty provisions, and as a result, we believe that any 
aggregate economic impact of these revised regulations will be minimal, 
affecting only those who do not comply with the pertinent statutes or 
regulations. As a result, this final rule should have no effect on 
Federal or State expenditures.
    In addition, we must prepare a regulatory flexibility analysis that 
is consistent with the Regulatory Flexibility Act (5 U.S.C. 601-602) 
unless we certify that a regulation will not have a significant 
economic impact on a substantial number of small entities. In this case 
the revision of the civil penalty amounts will raise potential 
penalties for all aviation businesses; however, there are special 
reduced penalties for individuals and small businesses with regard to 
specific kinds of violations. It is primarily the nature of the 
violations that has determined OST enforcement action in the past, 
although the size of an entity has been taken into account in 
determining what, if any, civil penalty is appropriate. The aggregate 
economic impact of this rulemaking on small entities should, therefore, 
be minimal, affecting only those who engage in conduct prohibited by 
statute or the related regulations.
    Therefore, we have concluded and certify that this final rule will 
not have a significant economic impact on a substantial number of small 
entities, and that a regulatory flexibility analysis is not required 
for this rulemaking.

Paperwork Reduction Act

    This final rule imposes no new reporting or record keeping 
requirements necessitating paperwork clearance by OMB.

Unfunded Mandates Reform Act of 1995

    OST has determined that the requirements of Title II of the 
Unfunded Mandates Reform Act of 1995 do not apply to this rulemaking.

List of Subjects in 14 CFR Part 383

    Administrative practice and procedures, Penalties.


0
Accordingly, the Department of Transportation revises Part 383 of Title 
14, as set forth below:

[[Page 41424]]

PART 383--CIVIL PENALTIES

Sec.
383.1 Basis and purpose.
383.2 Amount of penalty.

    Authority: Sec. 503, Pub. L. 108-176, 117 Stat. 2490.


Sec.  383.1  Basis and purpose.

    (a) Basis. This part implements the civil penalty provisions of 
Vision 100--Century of Aviation Reauthorization Act (Pub. L. 108-176; 
117 Stat. 2490, December 12, 2003, section 503) (Vision 100). Because 
this statute revises or reaffirms all civil penalty provisions under 49 
U.S.C. 46301, no further adjustments to account for inflation are 
required under the terms of Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Pub. L. 101-410, 104 Stat. 890) and the Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134, section 31001). 
The latter requires that federal agencies adjust civil penalties at 
least every four years to reflect any inflation which may have 
occurred.
    (b) Purpose. This part incorporates the civil penalty liability 
amounts prescribed in 49 U.S.C. 46301(a), as modified by Vision 100.


Sec.  383.2  Amount of penalty.

    Civil penalties payable to the U.S. Government for violations of 
Title 49, Chapters 401 through 421, pursuant to 49 U.S.C. 46301(a) as 
revised by Vision 100, are as follows:
    (a) A general civil penalty of not more than $25,000 (or $1,100 for 
individuals or small businesses) applies to violations of statutory 
provisions and rules or orders issued under those provisions, other 
than those listed in paragraph (b) of this section, (see 49 U.S.C. 
46301(a)(1));
    (b) With respect to small businesses and individuals, 
notwithstanding the general $1,100 civil penalty, the following civil 
penalty limits apply:
    (1) A maximum civil penalty of $10,000 applies for violations of 
most provisions of Chapter 401, including the anti-discrimination 
provisions of sections 40127 (general provision), and 41705 
(discrimination against the disabled) and rules and orders issued 
thereunder (see 49 U.S.C. 46301 (a)(5) (A));
    (2) A maximum civil penalty of $5,000 applies for violations of 
section 41719 and rules and orders issued thereunder (see 49 U.S.C. 
46301 (a)(5)(C)); and
    (3) A maximum civil penalty of $2,500 applies for violations of 
section 41712 or consumer protection rules or orders (see 49 U.S.C. 
46301 (a)(5)(D)).

    Issued this 26th day of June, 2004, in Washington, DC.
Norman Y. Mineta,
Secretary.
[FR Doc. 04-15549 Filed 7-8-04; 8:45 am]

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