
[Federal Register Volume 81, Number 128 (Tuesday, July 5, 2016)]
[Rules and Regulations]
[Pages 43463-43469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15744]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 13 and 406

[Docket No. FAA-2016-7004; Amdt. Nos. 13-38, 406-10]
RIN 2120-AK90


Revisions to the Civil Penalty Inflation Adjustment Tables

AGENCY: Federal Aviation Administration, DOT.

ACTION: Interim final rule.

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SUMMARY: This interim final rule is the catch-up inflation adjustment 
to civil penalty amounts that may be imposed

[[Page 43464]]

for violations of Federal Aviation Administration regulations, as 
required by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015.

DATES: These amendments become effective August 5, 2016.

FOR FURTHER INFORMATION CONTACT: Cole R. Milliard, Attorney, Office of 
the Chief Counsel, Enforcement Division, AGC-300, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 267-3452; email Cole.Milliard@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking and Applicable Statutes

    The Federal Aviation Administration (FAA's) authority to issue 
rules on aviation safety is found in title 49 of the United States 
Code. Subtitle I, Section 106, describes the authority of the FAA 
Administrator. Subtitle VII, Aviation Programs, describes in more 
detail the scope of the agency's authority. The Secretary of 
Transportation's authority to regulate the transportation of hazardous 
materials (``hazmat'') by air is in chapter 51 of title 49; civil 
penalty authority is in section 5123. The Secretary's authority to 
regulate commercial space transportation may be found at 51 U.S.C. 
subtitle V, sections 50901-50923 (chapter 509), which provides for the 
Department of Transportation (DOT), and, through delegation, the FAA to 
impose civil penalties on persons who violate chapter 509, a regulation 
issued under chapter 509, or any term or condition of a license or 
permit issued or transferred under chapter 509. 51 U.S.C. 50906(h)-(i), 
50917.
    This rule implements the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (FCPIAA), Public Law (Pub. L.) 101-410, as 
amended by the Debt Collection Improvement Act (DCIA) of 1996, Public 
Law 104-134, and the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Act), Public Law 114-74, codified at 28 
U.S.C. 2461 note.
    The FCPIAA, DCIA, and the 2015 Act require Federal agencies to 
adjust minimum and maximum civil penalty amounts for inflation to 
preserve their deterrent impact. The 2015 Act amended the formula and 
frequency of inflation adjustments. It requires an initial catch-up 
adjustment in the form of an interim final rule, followed by annual 
adjustments of penalty amounts. The amount of the adjustment must be 
made using a strict statutory formula discussed in more detail below.

Background

    The FCPIAA determines inflationary adjustments by increasing civil 
penalties by a cost-of-living adjustment (COLA). Under the FCPIAA, as 
amended by the 2015 Act, the COLA for each civil penalty is normally 
the percent change between the U.S. Department of Labor's Consumer 
Price Index for all-urban consumers (CPI-U) for the month of October of 
the calendar year preceding the adjustment and the CPI-U for the month 
of October of the previous calendar year.
    However, under the 2015 Act, the FAA must first use a different 
``catch-up adjustment'' formula. To determine the amount of the catch-
up, it must use the percent change between the CPI-U from the October 
of the calendar year in which the penalty was last set or adjusted by 
statute or regulation other than by inflation adjustments under the 
FCPIAA and the CPI-U from the October preceding the adjustment. The 
increase must be rounded to the nearest $1, and can be no greater than 
150% of the penalty levels in effect on the date of the 2015 Act's 
enactment, which was November 2, 2015.

Method of Calculation

    The 2015 Act directed the Office of Management and Budget (OMB) to 
issue guidance on implementing the inflation adjustments required by 
the 2015 Act no later than February 29, 2016.\1\ On February 24, 2016, 
the OMB released this required guidance, which contains complete 
instructions on how to calculate the catch-up adjustment.\2\ An agency 
calculates the catch-up adjustment by multiplying the maximum or 
minimum penalty amount by a multiplier calculated based on the year the 
penalty was last set or adjusted by Congress or rulemaking (other than 
inflation adjustments under the FCPIAA). As examples, here are how the 
adjustments for 49 U.S.C. 5123(a)(1) (hazmat) and 51 U.S.C. 50917 
(commercial space) were calculated:
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    \1\ 28 U.S.C. 2461 note.
    \2\ OMB Memorandum M-16-06.
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    (1) Find the multiplier listed in the OMB guidance for the year the 
penalty was last set or reset.
    Section 5123 was last adjusted in 2012, so the multiplier is 
1.02819.
    Section 50917 was last set in 1984, so the multiplier is 2.25867.
    (2) Multiply the penalty amount by the multiplier, and round to the 
nearest dollar.

$75,000 * 1.02819 = $77,114
$100,000 * 2.25867 = $225,867

    (3) Multiply the 2015 penalty amount (including any prior 
adjustments under the Inflation Adjustment Act) by 2.5,\3\ and round to 
the nearest dollar to find the 150% cap for the catch-up adjustment.

$75,000 * 2.5 = $187,500
$120,000 * 2.5 = $300,000

    \3\ It is 2.5 rather than 1.5 because the cap is described in 
terms of the amount of the increase; that is, the amount added to 
the penalty as a catch-up cannot be greater than 150% of the 
penalty, rather than being limited to 150% of the penalty itself. 28 
U.S.C. 2461 note (``The amount of the increase in a civil monetary 
penalty . . . shall not exceed 150 percent of the amount of that 
civil monetary penalty on the date of enactment''). Thus, the cap is 
x + 1.5x = 2.5x, where x is the penalty amount.
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    (4) Compare the dollar amount from (3) to the dollar amount in (2). 
If (2) < (3), (2) is below the 150% cap and is the adjusted penalty. If 
(2) > (3), the 150% cap is applied and becomes the adjusted penalty.
    $77,114 < $187,500. Therefore, $77,114 is the adjusted penalty.
    $225,867 < $300,000. Therefore, $225,867 is the adjusted penalty.
    The following chart shows the values used in the calculations and 
the rounded catch-up adjustment. All of the penalty adjustments fell 
below the 150% cap on the catch-up adjustment:

----------------------------------------------------------------------------------------------------------------
                                                                   Penalty when
                49 U.S.C. Statute                 Year last set/     last set/      Multiplier       Catch-up
                                                     adjusted        adjusted        from OMB       adjustment
----------------------------------------------------------------------------------------------------------------
5123(a)(1)......................................            2012         $75,000         1.02819         $77,114
5123(a)(2)......................................            2012         175,000         1.02819         179,933
5123(a)(3)......................................            2005           * 450         1.19397             537
5123(a)(3)......................................            2012       ** 75,000         1.02819          77,114
46301(a)(1).....................................            2003          25,000         1.28561          32,140
46301(a)(1).....................................            2003           1,100         1.28561           1,414
46301(a)(3) \4\.................................             N/A             N/A             N/A             N/A

[[Page 43465]]

 
46301(a)(5).....................................            2003          10,000         1.28561          12,856
46301(b)........................................            1987           2,000         2.06278           4,126
46302...........................................            1984          10,000         2.25867          22,587
46318...........................................            2000          25,000         1.36689          34,172
46319...........................................            2003          10,000         1.28561          12,856
47531 \5\.......................................             N/A             N/A             N/A             N/A
51 U.S.C. 50917 \6\.............................            1984         100,000         2.25867         225,867
----------------------------------------------------------------------------------------------------------------
* Minimum.
** Maximum.

Provision for Reduced Catch-Up Adjustment

    The 2015 Act allows an agency to request that a catch-up adjustment 
be lower than what is calculated using the 2015 Act's formula. This 
requires a determination by the head of the agency, following a notice 
of proposed rulemaking, opportunity for comment, and a final rule, that 
the catch-up adjustment will have a negative economic impact or has 
social costs that outweigh the benefits. In addition, the director of 
OMB must concur with the agency head's determination as the adjustment 
is an economic transfer. The Administrator of the FAA does not believe 
that any of the catch-up adjustments in this rule will have a negative 
economic impact or have social costs that outweigh their benefits.
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    \4\ The penalty for 46301(a)(3) is an ``increase[ ] above the 
otherwise applicable maximum amount under this section to an amount 
not to exceed 3 times the amount of revenues that are used in 
violation of such section.'' As it depends on the other maximum 
penalties in 46301, there is no separate calculation needed for 
46301(a)(3).
    \5\ Section 47531 explicitly states that the applicable civil 
penalties are ``the same . . . as a person violating section 
44701(a) or (b) or any of sections 44702-44716 of this title.'' 
Sections 46301(a)(1)(A) and (a)(5) provide the civil penalty amounts 
for those violations, and no separate calculation is needed.
    \6\ Section 50917 was added by the Commercial Space Launch Act, 
Public Law 98-575, section 19, 98 Stat. 3055, 3062 (1984), and was 
codified as section 70115 of title 49 before being recodified in 
title 51.
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Amendments to Subpart H of 14 CFR Part 13

    The FAA codified the statutory formula for inflation adjustments 
under the FCPIAA and DCIA in subpart H of 14 CFR part 13. Rather than 
amending the subpart to match the 2015 Act, paragraphs (a)-(c) of Sec.  
13.305 containing the formula are being deleted as unnecessarily 
duplicative of the statute. Section 13.303 is also being deleted 
because it duplicates definitions of terms given in the statute. 
Section 13.301(a) is being amended to include a reference to the 2015 
Act.

Amendment to Section 406.9(a)

    The current version of 14 CFR 406.9(a) states the maximum civil 
penalty that can be imposed under its authority ``as adjusted for 
inflation.'' This clause is being deleted as redundant and unnecessary. 
The maximum penalty amount as amended by this rule will already be 
adjusted for inflation, as will the future annual adjustments required 
by the 2015 Act. Retaining this clause could also create a false 
impression that the penalty amount is adjusted for inflation other than 
by the 2015 Act. Therefore, the ``as adjusted for inflation'' clause is 
being removed.

Good Cause for Not Having Notice and Comment

    Under the Administrative Procedure Act, 5 U.S.C. 553(b)(B), a final 
rule may be issued without public notice and comment if the agency 
finds good cause that notice and comment are impracticable, 
unnecessary, or contrary to public interest. Good cause exists in this 
case to dispense with public notice and comment because adjustments to 
civil penalties for inflation are required by Congress, as set forth in 
Section 5 of the FCPIAA, as amended, in order to maintain the deterrent 
effect of civil penalties and promote compliance with the law. As the 
Administrator of the FAA has determined that none of the catch-up 
adjustments should be lowered due to negative economic impact or social 
costs that outweigh benefits, there is no place where the FAA might 
apply discretion or policy judgments in calculating the adjustments. 
The formula for determining the adjustments is laid out by statute and 
cannot be amended by the FAA, even in response to public comment. 
Accordingly, public comment is unnecessary in this case.

Regulatory Evaluation

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
that each Federal agency shall propose or adopt a regulation only upon 
a reasoned determination that the benefits of the intended regulation 
justify its costs. Second, the Regulatory Flexibility Act of 1980 (Pub. 
L. 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Pub. L. 96-39) prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign commerce of the United States. In 
developing U.S. standards, the Trade Act requires agencies to consider 
international standards and, where appropriate, that they be the basis 
of U.S. standards. Fourth, the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4) requires agencies to prepare a written assessment of 
the costs, benefits, and other effects of proposed or final rules that 
include a Federal mandate likely to result in the expenditure by State, 
local, or tribal governments, in the aggregate, or by the private 
sector, of $100 million or more annually (adjusted for inflation with 
base year of 1995). This portion of the preamble summarizes the FAA's 
analysis of the economic impacts of this final rule.
    Department of Transportation Order DOT 2100.5 prescribes policies 
and procedures for simplification, analysis, and review of regulations. 
If the expected cost impact is so minimal that a proposed or final rule 
does not warrant a full evaluation, this order permits that a statement 
to that effect and the basis for it to be included in the preamble if a 
full regulatory evaluation of the cost and benefits is not prepared. 
Such a determination has been made for this final rule. The reasoning 
for this determination follows.
    This rule adjusts for inflation to civil penalties for violations 
of aviation safety, hazmat, and commercial space provisions in accord 
with the Federal Civil Penalties Inflation Adjustment Act Improvement 
Act (the 2015 Act), Public Law 114-74, Section 701 (November 2, 2015). 
The Director of OMB provided guidance to agencies in a February 24, 
2016 memorandum on how to calculate

[[Page 43466]]

the initial adjustment required by the 2015 Act. The FAA must follow 
the direction of Congress and is using statutorily-mandated guidance 
provided by OMB in calculating the catch-up inflation adjustment. 
Applying Congress's directions and OMB's guidance, the FAA has 
determined that this rule imposes no additional social cost. Civil 
penalties are, like taxes, an economic transfer. OMB guidance A-4 
states that transfers are monetary payments from one group to another 
and thus not a social cost. OMB further dictates that transfers should 
not be included in estimates of the benefits and costs due to 
regulation. As transfers do not add social cost, this is a minimal cost 
rule. OMB also directs that distributional effects of transfers should 
be considered. The term ``distributional effect'' refers to the impact 
of a regulatory action across the population and economy, divided up in 
various ways (e.g. income groups, race, sex, industrial sector, 
geography). Distributional effects may arise through transfer payments 
like civil penalties that stem from regulatory enforcement action. 
While persons paying civil penalties may experience distributional 
effects, these discrete effects are far outweighed by the positive 
effects of civil penalties. Compliance with FAA statutes and 
regulations is essential to safety. Civil penalties are a punishment 
for those who violate FAA statutes and regulations. They also deter 
future violations. As a result, they support the FAA's mission of 
aviation, hazmat, and commercial space safety, which benefits the 
public at large. Thus, the cost impact of this rulemaking is minimal, 
and a full regulatory evaluation is not required in accordance with DOT 
Order 2100.5.
    The FAA has determined that this final rule is not a ``significant 
regulatory action'' as defined in section 3(f) of Executive Order 12866 
because it does not have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities for the following reasons:
    (i) Based on the FAA's review of civil penalties assessed in fiscal 
year 2015, the total amount assessed was about $18 million. Even if 
this total itself were increased to the catch-up adjustment cap of a 
150% increase (which is not being done here), it would only result in 
an increase of $27 million, bringing the total amount assessed to $45 
million, which is substantially less than $100 million. Thus, the 
amount of the statutorily mandated inflation adjustment in this 
rulemaking will not have an annual effect on the economy of $100 
million or more; and
    (ii) The process of determining whether or not a civil penalty is 
imposed is not affected by this change as this rulemaking only impacts 
the minimum and maximum possible amount of the penalty.
    The FAA has further determined that this final rule is not a 
``significant regulatory action'' because it does not (a) create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency, (b) materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs or the rights and 
obligations of recipients thereof; or (c) raise novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in Executive Order 12866. Finally, the FAA has 
determined that this final rule is not ``significant'' as defined in 
DOT's Regulatory Policies and Procedures.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation.'' To achieve this principle, agencies are 
required to solicit and consider flexible regulatory proposals and to 
explain the rationale for their actions to assure that such proposals 
are given serious consideration.'' The RFA covers a wide-range of small 
entities, including small businesses, not-for-profit organizations, and 
small governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    The FAA believes that this final rule does not have a significant 
economic impact on a substantial number of small entities for the 
following reasons. While this final rule is likely to impact a 
substantial number of small entities, it will impose only minimal 
costs. This final rule simply identifies the amount of the inflation 
adjustment to existing civil monetary penalty maximums and minimums for 
violations of the statutory and regulatory provisions the FAA enforces. 
The penalty amounts are those specified by statute or called for under 
the inflation adjustment statutes, and the information in this rule is 
required by the Debt Collection Improvement Act of 1996.\7\ As civil 
penalties are economic transfers, by OMB direction these are not 
included in the calculation of social costs.
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    \7\ The 2015 Act, Public Law 114-74, codified at 28 U.S.C. 2461 
note, specifies the method of calculating the inflation adjustment, 
and OMB Memorandum M-16-06 provides the guidance required by the 
2015 Act for agencies in calculating the inflation adjustment.
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    In addition, FAA has determined the RFA does not apply to this 
rulemaking. The 2015 Act requires FAA to publish an interim final rule 
and there is good cause for issuing this rule without notice and 
comment under 5 U.S.C. 553(b)(B). The Small Business Administration's A 
Guide for Government Agencies: How to Comply with the Regulatory 
Flexibility Act (2003), provides that:

    If, under the APA or any rule of general applicability governing 
federal grants to state and local governments, the agency is 
required to publish a general notice of proposed rulemaking (NPRM), 
the RFA must be considered [citing 5 U.S.C. 604(a)]. . . . If an 
NPRM is not required, the RFA does not apply.

Because there is good cause for issuing this final rule without notice 
and comment (i.e., without an NPRM), the RFA does not apply. Therefore, 
as provided in section 605(b), the head of the FAA certifies that this 
rule will not result in a significant economic impact on a substantial 
number of small entities.

International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as

[[Page 43467]]

the protection of safety, and does not operate in a manner that 
excludes imports that meet this objective. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards.
    The FAA has assessed the potential effect of this final rule and 
determined that it would impose identical inflation adjusted civil 
penalties on domestic and international entities that violate aviation 
safety, hazmat, and commercial space provisions in titles 49 and 51 of 
the U.S. Code and regulations issued under those provisions, and thus 
would have a neutral trade impact. Furthermore, the inflation 
adjustment is a legitimate domestic objective preserving the existing 
deterrent impact of aviation, hazmat, and commercial space safety 
statutes and regulations. Therefore, we have determined that this rule 
will result in a neutral impact on international trade.

Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) requires each Federal agency to prepare a written statement 
assessing the effects of any Federal mandate in a proposed or final 
agency rule that may result in an expenditure of $100 million or more 
(in 1995 dollars) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $155 million in lieu of $100 
million. This final rule does not contain such a mandate; therefore, 
the requirements of Title II of the Act do not apply.

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there are no current or new requirements for information collection 
associated with this rule.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these regulations.

Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined that this action qualifies for categorical exclusion under 
the National Environmental Policy Act in accordance with FAA Order 
1050.1F, ``Environmental Impacts: Policies and Procedures,'' paragraph 
5-6.6.f, which covers regulations not expected to cause any potentially 
significant environmental impacts. The FAA has also determined that 
there are no extraordinary circumstances requiring an environmental 
assessment or environmental impact statement.

Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. The agency determined 
that this action will not have a substantial direct effect on the 
States, or the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, and, therefore, does not have federalism 
implications.

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA has analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The agency has determined that it 
is not a ``significant energy action'' under the executive order and it 
is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

Availability of Rulemaking Documents

    You can get an electronic copy of rulemaking documents using the 
Internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies; or
    3. Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the amendment number or docket number of this 
rulemaking.

List of Subjects

14 CFR Part 13

    Administrative practice and procedure, Air transportation, 
Hazardous materials transportation, Investigations, Law enforcement, 
Penalties.

14 CFR Part 406

    Administrative procedure and review, Commercial space 
transportation, Enforcement, Investigations, Penalties, Rules of 
adjudication.

The Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapters I and III of title 14, Code of Federal 
Regulations as follows:

CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF 
TRANSPORTATION

PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES

0
1. The authority citation for part 13 continues to read as follows:

    Authority:  18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C. 
106(g), 5121-5128, 40113-40114, 44103-44106, 44701-44703, 44709-
44710, 44713, 46101-46111, 46301, 46302 (for a violation of 49 
U.S.C. 46504), 46304-46316, 46318, 46501-46502, 46504-46507, 47106, 
47107, 47111, 47122, 47306, 47531-47532; 49 CFR 1.47.

0
2. Amend Sec.  13.301 by revising paragraph (a) and adding paragraph 
(c) to read as follows:


Sec.  13.301  Scope and purpose.

    (a) This subpart sets out the current adjusted maximum civil 
monetary penalties or range of minimum and maximum civil monetary 
penalties for each statutory civil penalty subject to the FAA's 
jurisdiction under title 49 of the U.S. Code. These penalties have been 
adjusted for inflation in conformity with the Federal Civil Penalties 
Inflation Adjustment Act of 1990, 28 U.S.C. 2461 (note), as amended by 
the Debt Collection Improvement Act of 1996, Public Law 104-134, April 
26, 1996, and the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, Public Law 114-74, November 2, 2015, in order 
to maintain the deterrent effect of civil monetary penalties and to 
promote compliance with the law.
* * * * *
    (c) Minimum and maximum civil monetary penalties within the 
jurisdiction of the FAA are as follows:

[[Page 43468]]



                 Table of Minimum and Maximum Civil Monetary Penalty Amounts for Certain Violations Occurring on or After August 1, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               New or
                                                                                              adjusted   Maximum penalty amount      New or  adjusted
     United States Code citation         Civil monetary penalty        Minimum  penalty       minimum        when last set or        maximum  penalty
                                              description                   amount            penalty     adjusted by Congress            amount
                                                                                               amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
49 U.S.C. 5123(a), subparagraph (1).  Violation of hazardous       Deleted 7/6/2012.......          N/A  $75,000 per violation,  $77,114.
                                       materials transportation                                           adjusted 7/6/2012.
                                       law.
49 U.S.C. 5123(a), subparagraph (2).  Violation of hazardous       Deleted 7/6/2012.......          N/A  $175,000 per            $179,933.
                                       materials transportation                                           violation, adjusted 7/
                                       law resulting in death,                                            6/2012.
                                       serious illness, severe
                                       injury, or substantial
                                       property destruction.
49 U.S.C. 5123(a), subparagraph (3).  Violation of hazardous       $450 per violation, set         $537  $75,000 per violation,  $77,114.
                                       materials transportation     8/10/2005.                            adjusted 7/6/2012.
                                       law relating to training.
49 U.S.C. 46301(a)(1)...............  Violation by a person other  N/A....................          N/A  $25,000 per violation,  $32,140.
                                       than an individual or                                              set 12/12/2003.
                                       small business concern
                                       under 49 U.S.C.
                                       46301(a)(1)(A) or (B).
49 U.S.C. 46301(a)(1)...............  Violation by an airman       N/A....................          N/A  $1,100 per violation,   $1,414.
                                       serving as an airman under                                         adjusted 12/12/2003.
                                       49 U.S.C. 46301(a)(1)(A)
                                       or (B) (but not covered by
                                       46301(a)(5)(A) or (B).
49 U.S.C. 46301(a)(1)...............  Violation by an individual   N/A....................          N/A  $1,100 per violation,   $1,414.
                                       or small business concern                                          adjusted 12/12/2003.
                                       under 49 U.S.C.
                                       46301(a)(1)(A) or (B) (but
                                       not covered in 49 U.S.C.
                                       46301(a)(5)).
49 U.S.C. 46301(a)(3)...............  Violation of 49 U.S.C.       N/A....................          N/A  Increase above          No change.
                                       47107(b) (or any assurance                                         otherwise applicable
                                       made under such section)                                           maximum amount not to
                                       or 49 U.S.C. 47133.                                                exceed 3 times the
                                                                                                          amount of revenues
                                                                                                          that are used in
                                                                                                          violation of such
                                                                                                          section.
49 U.S.C. 46301(a)(5)(A)............  Violation by an individual   N/A....................          N/A  $10,000 per violation,  $12,856.
                                       or small business concern                                          set 12/12/2003.
                                       (except an airman serving
                                       as an airman) under 49
                                       U.S.C. 46301(a)(5)(A)(i)
                                       or (ii).
49 U.S.C. 46301(a)(5)(B)(i).........  Violation by an individual   N/A....................          N/A  $10,000 per violation,  $12,856.
                                       or small business concern                                          set 12/12/2003.
                                       related to the
                                       transportation of
                                       hazardous materials.
49 U.S.C. 46301(a)(5)(B)(ii)........  Violation by an individual   N/A....................          N/A  $10,000 per violation,  $12,856.
                                       or small business concern                                          set 12/12/2003.
                                       related to the
                                       registration or
                                       recordation under 49
                                       U.S.C. chapter 441, of an
                                       aircraft not used to
                                       provide air transportation.
49 U.S.C. 46301(a)(5)(B)(iii).......  Violation by an individual   N/A....................          N/A  $10,000 per violation,  $12,856.
                                       or small business concern                                          set 12/12/2003.
                                       of 49 U.S.C. 44718(d),
                                       relating to limitation on
                                       construction or
                                       establishment of landfills.
49 U.S.C. 46301(a)(5)(B)(iv)........  Violation by an individual   N/A....................          N/A  $10,000 per violation,  $12,856.
                                       or small business concern                                          set 12/12/2003.
                                       of 49 U.S.C. 44725,
                                       relating to the safe
                                       disposal of life-limited
                                       aircraft parts.
49 U.S.C. 46301(b)..................  Tampering with a smoke       N/A....................          N/A  $2,000 per violation,   $4,126.
                                       alarm device.                                                      set 12/22/1987.
49 U.S.C. 46302.....................  Knowingly providing false    N/A....................          N/A  $10,000 per violation,  $22,587.
                                       information about alleged                                          set 10/12/1984.
                                       violation involving the
                                       special aircraft
                                       jurisdiction of the United
                                       States.
49 U.S.C. 46318.....................  Interference with cabin or   N/A....................          N/A  $25,000, set 4/5/2000.  $34,172.
                                       flight crew.
49 U.S.C. 46319.....................  Permanent closure of an      N/A....................          N/A  $10,000 per day, set    $12,856.
                                       airport without providing                                          12/12/2003.
                                       sufficient notice.
49 U.S.C. 47531.....................  Violation of 49 U.S.C.       N/A....................          N/A  See 49 U.S.C.           No change.
                                       47528-47530, relating to                                           46301(a)(1)(A) and
                                       the prohibition of                                                 (a)(5), above.
                                       operating certain aircraft
                                       not complying with stage 3
                                       noise levels.
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 43469]]

Sec. Sec.  13.303 and 13.305  [Removed]

0
3. Remove Sec. Sec.  13.303 and 13.305.

CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
ADMINISTRATION, DEPARTMENT OF TRANSPORTATION

PART 406--INVESTIGATIONS, ENFORCEMENT, AND ADMINISTRATIVE REVIEW

0
4. The authority citation for part 406 continues to read as follows:

    Authority: 51 U.S.C. 50901-50923.


0
5. Revise Sec.  406.9(a) to read as follows:


Sec.  406.9  Civil penalties.

    (a) Civil penalty liability. Under 51 U.S.C. 50917(c), a person 
found by the FAA to have violated a requirement of the Act, a 
regulation issued under the Act, or any term or condition of a license 
or permit issued or transferred under the Act, is liable to the United 
States for a civil penalty of not more than $225,867 for each 
violation. A separate violation occurs for each day the violation 
continues.
* * * * *

    Issued under authority provided by 28 U.S.C. 2461 and 49 U.S.C. 
106(f), 44701(a), and 46301 in Washington, DC, on June 23, 2016.
Michael P. Huerta,
Administrator.
[FR Doc. 2016-15744 Filed 7-1-16; 8:45 am]
 BILLING CODE 4910-13-P


