
[Federal Register: June 15, 2009 (Volume 74, Number 113)]
[Proposed Rules]               
[Page 28204-28209]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15jn09-22]                         

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

DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 578

[Docket No. NHTSA-2009-0066; Notice 1]
RIN 2127-AK40

 
Civil Penalties

AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: This document proposes to increase the maximum civil penalty 
amounts for violations of motor vehicle safety requirements involving 
school buses, bumper standards, consumer information requirements, 
odometer tampering and disclosure requirements, and vehicle theft 
protection requirements. This action would be taken pursuant to the 
Federal Civil Monetary Penalty Inflation Adjustment Act of 1990, as 
amended by the Debt Collection Improvement Act of 1996, which requires 
us to review and, as warranted, adjust penalties based on inflation at 
least every four years.

DATES: Comments on the proposal are due July 15, 2009.

ADDRESSES: You may submit comments electronically [identified by DOT 
Docket ID Number NHTSA-2009-0066] by visiting the following Web site:
     Federal eRulemaking Portal: Go to http://
www.regulations.gov. Follow the online instructions for submitting 
comments.
    Alternatively, you can file comments using the following methods:
     Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200

[[Page 28205]]

New Jersey Avenue, SE., West Building Ground Floor, Room W12-140, 
Washington, DC 20590-0001.
     Hand Delivery or Courier: West Building Ground Floor, Room 
W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. and 5 p.m. ET, 
Monday through Friday, except Federal holidays.
     Fax: (202) 493-2251.

    Instructions: For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the Public 
Participation heading of the SUPPLEMENTARY INFORMATION section of this 
document. Note that all comments received will be posted without change 
to http://www.dms.dot.gov or http://www.regulations.gov, including any 
personal information provided. Please see the Privacy Act heading 
below.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78).
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Follow the online 
instructions for accessing the dockets.

FOR FURTHER INFORMATION CONTACT: Jessica Lang, Office of Chief Counsel, 
NHTSA, telephone (202) 366-5902, facsimile (202) 366-3820, 1200 New 
Jersey Avenue, SE., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Background

    In order to preserve the remedial impact of civil penalties and to 
foster compliance with the law, the Federal Civil Monetary Penalty 
Inflation Adjustment Act of 1990 (28 U.S.C. 2461, Notes, Pub. L. 101-
410), as amended by the Debt Collection Improvement Act of 1996 (Pub. 
L. 104-134) (referred to collectively as the ``Adjustment Act'' or, in 
context, the ``Act''), requires us and other Federal agencies to adjust 
civil penalties for inflation. Under the Adjustment Act, following an 
initial adjustment that was capped by the Act, these agencies must make 
further adjustments, as warranted, to the amounts of penalties in 
statutes they administer at least once every four years.
    NHTSA's initial adjustment of civil penalties under the Adjustment 
Act was published on February 4, 1997. 62 FR 5167. At that time, we 
codified the penalties under statutes administered by NHTSA, as 
adjusted, in 49 CFR Part 578, Civil Penalties. On July 14, 1999, we 
further adjusted certain penalties. 64 FR 37876. In 2000, the 
Transportation Recall Enhancement, Accountability and Documentation 
(``TREAD'') Act increased the maximum penalties under the National 
Traffic and Motor Vehicle Safety Act as amended (sometimes referred to 
as the ``Motor Vehicle Safety Act''). We codified those amendments in 
Part 578 on November 14, 2000. 65 FR 68108. On August 7, 2001, we also 
adjusted certain penalty amounts pertaining to odometer tampering and 
disclosure requirements and vehicle theft prevention. 66 FR 41149. On 
September 28, 2004, we adjusted the maximum penalty amounts for a 
related series of violations involving the agency's provisions 
governing vehicle safety, bumper standards, and consumer information. 
69 FR 57864. On September 8, 2005, the agency adjusted its penalty 
amounts for violations of its vehicle theft protection standards and 
those involving a related series of odometer-related violations. 70 FR 
53308. On May 16, 2006, the agency adjusted its penalty amounts for 
violations of the Motor Vehicle Safety Act, as amended, and codified 
amendments made to the Motor Vehicle Safety Act by the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act--A Legacy 
for Users (SAFETEA-LU), 119 Stat. 1144, 1942-43 (Aug. 10, 2005). 71 FR 
28279. Most recently, on February 25, 2008, the agency made adjustments 
to odometer-related violations and violations of certain administrative 
provisions of the Energy Policy and Conservation Act. 73 FR 9955.
    The Energy Independence and Security Act of 2007 (EISA), Public Law 
10-140, 121 Stat. 1492, 1506-07 (Dec. 19, 2007) (codified at 49 U.S.C. 
32304A) established a separate penalty provision for a new consumer 
tire information provision. As a matter of organization, we intend to 
include this penalty provision in 49 CFR 578.6(d). In order to avoid 
confusion with the consumer information penalty regarding 
crashworthiness and damage susceptibility currently in this section, we 
would bifurcate to 49 CFR 578.6(d) into two parts. The first would 
address crashworthiness and damage susceptibility; the second would 
codify consumer tire information under EISA.
    We have reviewed the civil penalty amounts in 49 CFR Part 578 and, 
in this notice, propose to adjust certain penalties under the 
Adjustment Act. The civil penalties that we propose to adjust are 
available for violations of the (1) Motor Vehicle Safety Act involving 
school buses (single violations and a related series of violations), 
(2) bumper requirements (a related series of violations), (3) consumer 
information requirements regarding crashworthiness and damage 
susceptibility (a related series of violations), (4) odometer 
requirements including tampering and disclosure (a related series of 
violations), and (5) the vehicle theft protection requirements (daily 
violations and a series of related violations).

Method of Calculation--Proposed Adjustments

    Under the Adjustment Act, we first calculate the inflation 
adjustment for each applicable civil penalty by arithmetically 
increasing the maximum civil penalty amount per violation by a cost-of-
living adjustment. Section 5(b) of the Adjustment Act defines the 
``cost-of-living'' adjustment as:
    The percentage (if any) for each civil monetary penalty by which--
    (1) The Consumer Price Index for the month of June of the calendar 
year preceding the adjustment exceeds
    (2) The Consumer Price Index for the month of June of the calendar 
year in which the amount of such civil monetary penalty was last set or 
adjusted pursuant to law.
    Because the proposed adjustment is intended to be effective before 
December 31, 2009, the ``Consumer Price Index [CPI] for the month of 
June of the calendar year preceding the adjustment'' is the CPI for 
June 2008. This figure, based on the Adjustment Act's requirement of 
using the CPI ``for all-urban consumers published by the Department of 
Labor,'' is 655.5.\1\
---------------------------------------------------------------------------

    \1\ Individuals interested in deriving the CPI figures used by 
the agency may visit the Department of Labor's Consumer Price Index 
Home Page at http://www.bls.gov/cpi/home.htm. Scroll down to ``Most 
Requested Statistics'' and select the ``All Urban Consumers (Current 
Series)'' option, select the ``U.S. ALL ITEMS 1967=100--
CUUR0000AA0'' box, and click on the ``Retrieve Data'' button.
---------------------------------------------------------------------------

    Two of the penalty amounts that NHTSA proposes to adjust involve a 
related series of violations of bumper standards and of consumer 
information requirements regarding crashworthiness and damage 
susceptibility. These amounts were both last adjusted in 2004 (CPI = 
568.2). Accordingly, the factor that we use to calculate the proposed 
increases is 1.15 (655.5/568.2) for these penalties.
    The other penalty amounts that NHTSA proposes to adjust are for 
single violations and a related series of violations pertaining to 
school bus

[[Page 28206]]

safety, a related series of violations involving odometer tampering and 
disclosure, as well as single violations and a related series of 
violations involving vehicle theft protection. These amounts were last 
adjusted in 2005 (CPI = 582.6). Accordingly, the factor that we use to 
calculate the proposed increases is 1.13 (655.5/582.6).
    Next, using these inflation factors, increases above the current 
maximum penalty levels are calculated and are then subject to a 
specific rounding formula set forth in section 5(a) of the Adjustment 
Act. 28 U.S.C. 2461, Notes. Under that formula:
    Any increase shall be rounded to the nearest:
    (1) Multiple of $10 in the case of penalties less than or equal to 
$100;
    (2) Multiple of $100 in the case of penalties greater than $100 but 
less than or equal to $1,000;
    (3) Multiple of $1,000 in the case of penalties greater than $1,000 
but less than or equal to $10,000;
    (4) Multiple of $5,000 in the case of penalties greater than 
$10,000 but less than or equal to $100,000;
    (5) Multiple of $10,000 in the case of penalties greater than 
$100,000 but less than or equal to $200,000; and
    (6) Multiple of $25,000 in the case of penalties greater than 
$200,000.

Proposed Amendments to Maximum Penalties

Change to Maximum Penalty (Single Violations and a Related Series of 
Violations) Under the School Bus Safety Provisions, 49 U.S.C. Chapter 
301, (49 CFR 578.6(a)(2))

    The maximum civil penalty for a single violation under the school 
bus safety provisions is $10,000, as specified in 49 CFR 
578.6(a)(2)(ii). The underlying statutory provision is 49 U.S.C. 
30165(a)(2), as amended in 2005. Applying the appropriate inflation 
factor (1.13) raises the $10,000 to $11,300, an increase of $1,300. 
Under the rounding formula, any increase in a penalty's amount shall be 
rounded to the nearest $1,000 in the case of penalties greater than 
$1,000 but less than or equal to $10,000. Accordingly, we propose that 
Sec.  578.6(a)(2)(ii) be amended to increase the maximum civil penalty 
for a single violation from $10,000 to $11,000.
    The maximum civil penalty for a related series of violations under 
the school bus safety provisions is $15,000,000, as specified in 49 CFR 
578.6(a)(2)(ii). The underlying statutory provision is 49 U.S.C. 
30165(a)(2), as amended in 2005. Applying the appropriate inflation 
factor (1.13) raises the $15,000,000 to $16,950,000, an increase of 
$1,950,000. Under the rounding formula, any increase in a penalty's 
amount shall be rounded to the nearest multiple of $25,000 in the case 
of penalties greater than $200,000. Accordingly, we propose that Sec.  
578.6(a)(2)(ii) be amended to increase the maximum civil penalty from 
$15,000,000 to $16,950,000 for a series of related violations.

Change to Maximum Penalty (Related Series of Violations) Under the 
Bumper Standards Provision, 49 U.S.C. Chapter 325 (49 CFR 578.6(c))

    The maximum civil penalty for a related series of violations of the 
bumper standards provision or a regulation prescribed thereunder is 
$1,025,000 as specified in 49 CFR 578.6(c)(2). The underlying statutory 
civil penalty provision is contained in 49 U.S.C. 32506. Applying the 
appropriate inflation factor (1.15) raises the $1,025,000 figure to 
$1,178,750, an increase of $153,750. Under the rounding formula, any 
increase in a penalty's amount shall be rounded to the nearest multiple 
of $25,000 in the case of penalties greater than $200,000. In this 
case, the increase would be $150,000. Accordingly, we propose that 
Sec.  578.6(c) be amended to increase the maximum civil penalty from 
$1,025,000 to $1,175,000 for a related series of violations.

Change to Maximum Penalty (Related Series of Violations) Under the 
Consumer Information Regarding Crashworthiness and Damage 
Susceptibility Requirements, 49 U.S.C. Chapter 323 (49 CFR 578.6(d))

    The maximum civil penalty for a related series of violations of the 
consumer information regarding crashworthiness and damage 
susceptibility requirements is $500,000, as specified in 49 CFR 
578.6(d). The underlying statutory civil penalty provision is 49 U.S.C. 
32308(b). Applying the appropriate inflation factor (1.15) raises the 
$500,000 figure to $575,000, an increase of $75,000. Under the rounding 
formula, any increase in a penalty's amount shall be rounded to the 
nearest multiple of $25,000 in the case of penalties greater than 
$200,000. In this case, the increase would be $75,000. Accordingly, we 
propose that Sec.  578.6(d) be amended to increase the maximum civil 
penalty from $500,000 to $575,000 for a series of related violations.

Change to Maximum Penalty (Related Series of Violations) Under the 
Odometer Tampering and Disclosure Requirements, 49 U.S.C. Chapter 327 
(49 CFR 578.6(f))

    The maximum civil penalty for a related series of violations of the 
odometer requirements is $130,000, as specified in 49 CFR 578.6(f)(1). 
The underlying statutory penalty provision is 49 U.S.C. 32709. Applying 
the appropriate inflation factor (1.13) raises the $130,000 to 
$146,900, an increase of $16,900. Under the rounding formula, any 
increase in a penalty's amount shall be rounded to the nearest multiple 
of $10,000 in the case of penalties greater than $100,000 but less than 
or equal to $200,000. Accordingly, we propose that Sec.  578.6(f)(1) be 
amended to increase the maximum civil penalty from $130,000 to $150,000 
for a series of related violations.

Change to Maximum Penalty (Daily Violation and a Related Series of 
Violations) Under the Vehicle Theft Protection Provisions, 49 U.S.C. 
Chapter 331 (49 CFR 578.6(g)(1), (2))

    The maximum civil penalty for a daily violation of vehicle theft 
protection provisions is $130,000, as specified in 49 CFR 578.6(g)(2). 
The underlying statutory penalty provision is 49 U.S.C. 33114(a)(5). 
Applying the appropriate inflation factor (1.13) raises the $130,000 
figure to $146,900, an increase of $16,900. Under the rounding formula, 
any increase in a penalty's amount shall be rounded to the nearest 
multiple of $10,000 in the case of penalties greater than $100,000 but 
less than or equal to $200,000. Accordingly, we propose that Sec.  
578.6(g)(2) be amended to increase the maximum civil penalty from 
$130,000 to $150,00 for a daily violation.
    The maximum civil penalty for a related series of violations of the 
vehicle theft protection provisions is $325,000, as specified in 49 CFR 
578.6(g)(1). The underlying statutory penalty provisions are 49 U.S.C. 
33114(a)(1)-(4). Applying the appropriate inflation factor (1.13) 
raises the $325,000 to $367,250, an increase of $42,250. Under the 
rounding formula, any increase in a penalty's amount shall be rounded 
to the nearest multiple of $25,000 in the case of penalties greater 
than $200,000. Accordingly, we propose that Sec.  578.5(g)(1) be 
amended to increase the maximum penalty from $325,000 to $375,000 for a 
series of related violations.

[[Page 28207]]

Effective Date of Final Rule

    The amendments would be effective 30 days after publication of the 
final rule in the Federal Register. The adjusted penalties would apply 
to violations occurring on and after the effective date.

Request for Comments

How Do I Prepare and Submit Comments?

    Your comments must be written and in English. To ensure that your 
comments are correctly filed in the Docket, please include the docket 
number of this document in your comments.
    Your comments must not be more than 15 pages long (49 CFR 553.21). 
We established this limit to encourage you to write your primary 
comments in a concise fashion. However, you may attach necessary 
additional documents to your comments. There is no limit on the length 
of the attachments.
    Please submit two copies of your comments, including the 
attachments, to Docket Management at the beginning of this document 
under ADDRESSES. You may also submit your comments electronically to 
the docket following the steps outlined under ADDRESSES.

How Can I Be Sure That My Comments Were Received?

    If you wish Docket Management to notify you upon its receipt of 
your comments, enclose a self-addressed, stamped postcard in the 
envelope containing your comments. Upon receiving your comments, Docket 
Management will return the postcard by mail.

How Do I Submit Confidential Business Information?

    If you wish to submit any information under a claim of 
confidentiality, you should submit the following to the Chief Counsel 
(NCC-110) at the address given at the beginning of this document under 
the heading FOR FURTHER INFORMATION CONTACT: (1) A complete copy of the 
submission; (2) a redacted copy of the submission with the confidential 
information removed; and (3) either a second complete copy or those 
portions of the submission containing the material for which 
confidential treatment is claimed and any additional information that 
you deem important to the Chief Counsel's consideration of your 
confidentiality claim. A request for confidential treatment that 
complies with 49 CFR part 512 must accompany the complete submission 
provided to the Chief Counsel. For further information, submitters who 
plan to request confidential treatment for any portion of their 
submissions are advised to review 49 CFR part 512, particularly those 
sections relating to document submission requirements. Failure to 
adhere to the requirements of Part 512 may result in the release of 
confidential information to the public docket. In addition, you should 
submit two copies from which you have deleted the claimed confidential 
business information, to Docket Management at the address given at the 
beginning of this document under ADDRESSES.

Will the Agency Consider Late Comments?

    We will consider all comments that Docket Management receives 
before the close of business on the comment closing date indicated at 
the beginning of this notice under DATES. In accordance with our 
policies, to the extent possible, we will also consider comments that 
Docket Management receives after the specified comment closing date. If 
Docket Management receives a comment too late for us to consider in 
developing the proposed rule, we will consider that comment as an 
informal suggestion for future rulemaking action.

How Can I Read the Comments Submitted by Other People?

    You may read the comments received by Docket Management at the 
address and times given near the beginning of this document under 
ADDRESSES.
    You may also see the comments on the Internet. To read the comments 
on the Internet, go to http://www.regulations.gov and follow the on-
line instructions provided.
    You may download the comments. The comments are imaged documents, 
in either TIFF or PDF format. Please note that even after the comment 
closing date, we will continue to file relevant information in the 
Docket as it becomes available. Further, some people may submit late 
comments. Accordingly, we recommend that you periodically search the 
Docket for new material.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    We have considered the impact of this rulemaking action under 
Executive Order 12866 and the Department of Transportation's regulatory 
policies and procedures. This rulemaking document was not reviewed 
under Executive Order 12866, ``Regulatory Planning and Review.'' This 
action is limited to the proposed adoption of adjustments of civil 
penalties under statutes that the agency enforces, and has been 
determined to be not ``significant'' under the Department of 
Transportation's regulatory policies and procedures.

Regulatory Flexibility Act

    We have also considered the impacts of this notice under the 
Regulatory Flexibility Act. I certify that a final rule based on this 
proposal will not have a significant economic impact on a substantial 
number of small entities. The following provides the factual basis for 
this certification under 5 U.S.C. 605(b).
    The Small Business Administration (SBA) regulations define a small 
business in part as a business entity ``which operates primarily within 
the United States.'' 13 CFR 121.105(a). SBA's size standards were 
previously organized according to Standard Industrial Classification 
(SIC) Codes. SIC Code 336211 ``Motor Vehicle Body Manufacturing'' 
applied a small business size standard of 1,000 employees or fewer. SBA 
now uses size standards based on the North American Industry 
Classification System (NAICS), Subsector 336--Transportation Equipment 
Manufacturing, which provides a small business size standard of 1,000 
employees or fewer for automobile manufacturing businesses. Other motor 
vehicle-related industries have lower size requirements that range 
between 500 and 750 employees.
    Many small businesses are subject to the penalty provisions of 
Title 49 U.S.C. Chapters 301 (motor vehicles--school bus safety), 325 
(bumper standards), 323 (consumer information requirements), 327 
(odometer requirements) and 331 (vehicle theft protection 
requirements); therefore, small businesses may be affected by the 
proposed adjustments in this NPRM. By the proposed amendments, entities 
that are potentially affected vary by statute and may include 
manufacturers of motor vehicles and motor vehicle equipment, sellers of 
vehicles and equipment, repair shops and others.
    The proposed adjustment to penalty amounts in 49 U.S.C. 30165(a)(2) 
and relating to school bus safety potentially impacts numerous entities 
including school bus manufacturers, school bus equipment manufacturers, 
school bus and equipment sellers, and schools and school systems. We do 
not have data on how many other entities within the ambit of 49 U.S.C. 
30165(a)(2) are small businesses, but the number is considerable.
    The proposed adjustment to penalty amounts in Chapter 325 relating 
to bumper standards and to penalty

[[Page 28208]]

amounts in Chapter 323 involving crashworthiness, damage susceptibility 
and country of origin labeling potentially impacts manufacturers of 
passenger motor vehicles and, in some instances, equipment 
manufacturers as variously included and defined in the statutes and 
regulations. We estimate that of the 26 light vehicle manufacturers 
reporting under the early warning program (EWR), 49 CFR part 579, six 
are small businesses. We recognize that there are other, relatively low 
production light vehicle manufacturers that are not subject to 
comprehensive EWR reporting. In addition, these statutes cover other 
entities, but we do not have information on the number of small 
businesses.
    The proposed adjustment to penalty amounts in Chapter 327 relating 
to odometer requirements potentially impacts a number of small 
businesses including repair businesses, used car dealers, businesses 
that are lessors of vehicles, auction houses, and entities making 
devices that could change an odometer's mileage. Although we do not 
have information on how many of these entities are small businesses, we 
believe a large percentage are small businesses.
    The proposed adjustment to penalty amounts in Chapter 331 relating 
to theft prevention potentially impacts manufacturers of regulated 
passenger motor vehicle parts in passenger motor vehicles, some multi-
purpose vehicles, and some light trucks in high theft lines. It also 
impacts other entities including salvaging, repair and chop shops. As 
previously stated, of the twenty six manufacturers of passenger 
vehicles, six are small businesses. Although we do not have data on the 
numbers of salvaging, repair or chop shops, we believe many are small 
businesses.
    Finally, we note that the new tire fuel efficiency information 
program under 49 U.S.C. 32304A may affect a number of entities. That 
program has not yet been adopted and therefore this notice does not 
identify regulated entities. In any event, we note that there are 28 
tire manufacturers, none of which is a small business. There are 
estimated to be over 50,000 tire dealers and retailers; though we do 
not have information on how many of these dealers and retailers are 
small businesses, we believe a large percentage is small businesses.
    As noted throughout this preamble, this proposed rule on civil 
penalties would only increase the maximum penalty amounts that the 
agency could obtain for certain violations of provisions related to 
school bus safety, bumper standards, certain consumer information, 
odometer tampering and disclosure, and vehicle theft prevention. This 
proposed rule does not set the amount of penalties for any particular 
violation or series of violations. Under the statutes for motor vehicle 
safety/school buses, consumer information, and vehicle theft 
prevention, the penalty provisions require the agency to take into 
account the size of a business when determining the appropriate penalty 
in an individual case. See 49 U.S.C. 30165(c) (school bus safety); 49 
U.S.C. 32308(b)(3) (consumer information); 49 U.S.C. 33115(a)(3) 
(vehicle theft prevention). The statute for odometers does not directly 
address small business size as a consideration, but does require 
consideration of ``any effect on the ability to continue doing 
business''. 49 U.S.C. 32709(a)(3)(B). The agency would consider the 
size of the business in such a calculation. While the bumper standards 
penalty provision does not specifically require the agency to consider 
the size of the business, the agency would consider business size under 
its civil penalty policy when determining the appropriate civil penalty 
amount. See 62 FR 37115 (July 10, 1997) (NHTSA's civil penalty policy 
under the Small Business Regulatory Enforcement Fairness Act (SBREFA)).
    The penalty adjustments that are being proposed would not affect 
our civil penalty policy under SBREFA. As a matter of policy, we intend 
to continue to consider the appropriateness of the penalty amount to 
the size of the business charged.
    Since this proposed regulation would not establish penalty amounts, 
this proposal will not have a significant economic impact on small 
businesses.
    Small organizations and governmental jurisdictions would not be 
significantly affected as the price of motor vehicles and equipment 
ought not to change as the result of this proposed rule. As explained 
above, this action is limited to the proposed adoption of a statutory 
directive, and has been determined to be not ``significant'' under the 
Department of Transportation's regulatory policies and procedures.

Executive Order 13132 (Federalism)

    Executive Order 13132 requires NHTSA to develop an accountable 
process to ensure ``meaningful and timely input by State and local 
officials in the development of regulatory policies that have 
federalism implications.'' ``Policies that have federalism 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.'' Under Executive Order 13132, the agency may not issue a 
regulation with Federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, the agency 
consults with State and local governments, or the agency consults with 
State and local officials early in the process of developing the 
proposed regulation.
    This proposed rule will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132. 
Thus, the requirements of Section 6 of the Executive Order do not 
apply.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995, Public Law 104-4, 
requires agencies to prepare a written assessment of the cost, 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 more than 
$100 million annually. Because this proposed rule will not have a $100 
million effect, no Unfunded Mandates assessment will be prepared.

Executive Order 12778 (Civil Justice Reform)

    This proposed rule does not have a retroactive or preemptive 
effect. Judicial review of a rule based on this proposal may be 
obtained pursuant to 5 U.S.C. 702. That section does not require that a 
petition for reconsideration be filed prior to seeking judicial review.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1980, we state 
that there are no requirements for information collection associated 
with this rulemaking action.

List of Subjects in 49 CFR Part 578

    Imports, Motor vehicle safety, Motor vehicles, Rubber and rubber 
products, Tires, Penalties.

    In consideration of the foregoing, we propose to amend 49 CFR part 
578 as set forth below.

PART 578--CIVIL AND CRIMINAL PENALTIES

    1. The authority citation for 49 CFR part 578 is amended to read as 
follows:


[[Page 28209]]


    Authority: Pub. L. No. 101-410, Pub. L. No. 104-134, 49 U.S.C. 
30165, 30170, 30505, 32308, 32309, 32507, 32709, 32710, 32912, and 
33115 as amended; delegation of authority at 49 CFR 1.50.

    2. Section 578.6, paragraphs (a)(2)(ii), (c)(2), (d), (f)(1), and 
(g), are revised to read as follows:


Sec.  578.6  Civil penalties for violations of specified provisions of 
Title 49 of the United States Code.

    (a) * * *
    (2) * * *
    (ii) Violates section 30112(a)(2) of Title 49 United States Code, 
shall be subject to a civil penalty of not more than $11,000 for each 
violation. A separate violation occurs for each motor vehicle or item 
of motor vehicle equipment and for each failure or refusal to allow or 
perform an act required by this section. The maximum penalty under this 
paragraph for a related series of violations is $16,950,000.
* * * * *
    (c) * * *
    (2) The maximum civil penalty under this paragraph (c) for a 
related series of violations is $1,175,000.
    (d) Consumer Information--(1) Crashworthiness and Damage 
Susceptibility. A person that violates 49 U.S.C. 32308(a), regarding 
crashworthiness and damage susceptibility, is liable to the United 
States Government for a civil penalty of not more than $1,100 for each 
violation. Each failure to provide information or comply with a 
regulation in violation of 49 U.S.C. 32308(a) is a separate violation. 
The maximum penalty under this paragraph for a related series of 
violations is $575,000
    (2) Consumer Tire Information. A person that violates 49 U.S.C. 
32308(c), regarding consumer tire information established under 49 
U.S.C. 32304A, is liable to the United States Government for a civil 
penalty of not more than $50,000 for each violation.
* * * * *
    (f) * * *
    (1) A person that violates 49 U.S.C. Chapter 327 or a regulation 
prescribed or order issued thereunder is liable to the United States 
Government for a civil penalty of not more than $2,200 for each 
violation. The maximum civil penalty under this paragraph for a related 
series of violations is $150,000.
* * * * *
    (g) Vehicle theft protection. (1) A person that violates 49 U.S.C. 
33114(a)(1)-(4) is liable to the United States Government for a civil 
penalty of not more than $1,100 for each violation. The failure of more 
than one part of a single motor vehicle to conform to an applicable 
standard under 49 U.S.C. 33102 and 33103 is only a single violation. 
The maximum penalty under this paragraph for a related series of 
violations is $375,000.
    (2) A person that violates 49 U.S.C. 33114(a)(5) is liable to the 
United States Government for a civil penalty of not more than $150,000 
a day for each violation.
* * * * *

    Issued on: June 9, 2009.
Stephen P. Wood,
Acting Chief Counsel.
[FR Doc. E9-13933 Filed 6-12-09; 8:45 am]

BILLING CODE 4910-59-P
