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Civil Penalties Inflation Adjustments

American Government Special Collections Reference Desk

American Government

Civil Penalties Inflation Adjustments

T.F. Scott Darling, III
Federal Motor Carrier Safety Administration
April 3, 2015


[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Rules and Regulations]
[Pages 18146-18158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07701]


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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 383, 385, 386 and 387

[Docket Number: FMCSA-2014-0261]
RIN 2126-AB75


Civil Penalties Inflation Adjustments

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

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

SUMMARY: The FMCSA specifies inflation adjustments to civil penalty 
amounts assessed to those who violate the Federal Motor Carrier Safety 
Regulations (FMCSRs) and Hazardous Materials Regulations (HMRs). Some 
of these adjustments are required by the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Adjustment Act), as amended by the 
Debt Collection Improvement Act of 1996 (DCIA). Most of the civil 
penalties were last adjusted for inflation in 2007, and some have not 
been changed since 2003. Other changes to the civil penalties were 
mandated by Congress in the Moving Ahead for Progress in the 21st 
Century Act (MAP-21). This final rule ensures that FMCSA's civil 
penalties are consistent with the applicable statutes.

DATES: Effective June 2, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Nikki McDavid, Enforcement 
Division, by email at nikki.mcdavid@dot.gov or phone at 202-366-0831. 
Office hours are from 8:00 a.m. to 4:30 p.m. Monday through Friday, 
except Federal holidays.

SUPPLEMENTARY INFORMATION: 
    The Supplementary Information section of this rule is organized as 
follows.

Table of Contents

I. Executive Summary
    A. Purpose and Summary of Major Provisions
    B. Benefits and Costs
II. Legal Basis for the Rulemaking
    A. MAP-21
    B. The Debt Collection Improvement Act of 1996
    C. SAFETEA-LU
    D. Other Authorities
III. Background
    A. Method of Calculation
IV. Section-by-Section Analysis
V. Rulemaking Analyses and Notices

I. Executive Summary

A. Purpose and Summary of the Major Provisions

    This final rule adjusts the amount of FMCSA's civil penalties to 
account for inflation as directed by the Adjustment Act, as amended by 
the DCIA. The specific inflation adjustment methodology is described 
below. This final rule also eliminates existing inconsistencies between 
regulatory language in Appendices A and B of 49 U.S.C. part 386 and 
other parts of the FMCSRs by removing the penalty amounts from the 
regulatory language and listing all penalty amounts in these appendices 
only. Finally, this rulemaking addresses changes to the hazardous 
material civil penalties violations which were mandated by MAP-21.

B. Benefits and Costs

    The changes imposed by this final rule upon the civil penalty 
amounts alter only the magnitude of transfer payments; transfer 
payments by definition are not considered in the monetization of 
societal costs and benefits of rulemakings. Congress has stated in the 
Adjustment Act, section 2, that increasing penalties over time will 
deter violations. Therefore, with this deterrence, FMCSA infers that 
there may be some safety benefits that occur due to this final rule. 
The deterrence effect of increasing penalties, which Congress has 
recognized, cannot be

[[Page 18147]]

reliably quantified into safety benefits, however.

II. Legal Basis for the Rulemaking

    This rulemaking is based primarily on three statutes.

A. The Debt Collection Improvement Act of 1996

    To preserve the remedial effect of civil penalties and foster 
compliance with applicable regulations, the Adjustment Act (Pub. L. 
101-410, 104 Stat. 890, October 5, 1990), as amended by the DCIA, (Pub. 
L. 104-134, April 26, 1996, 110 Stat. 1321-1373; 28 U.S.C. 2461), 
requires Federal agencies to regularly adjust certain civil penalties 
for inflation. The statute requires each agency to make an initial 
inflationary adjustment for all applicable civil penalties and to make 
further adjustments to these penalty amounts. The detailed methodology 
required by statute is discussed in the Background section below.

B. MAP-21

    This rule's authority is partly based on MAP-21 (Pub. L. 112-141, 
126 Stat. 405, July 6, 2012). Specifically, the authority comes from 
Title III of MAP-21, the Hazardous Materials Transportation Safety 
Improvement Act of 2012, including section 33010, which amended 49 
U.S.C. 5123, a civil penalty provision, effective on October 1, 2012.
    Previously, 49 U.S.C. 5123 provided for penalties of not less than 
$250 and not more than $50,000 for violations of regulations related to 
the transportation of hazardous materials, and not less than $450 and 
not more than $50,000 for violations of regulations related to 
hazardous materials training. For violations that resulted in death, 
serious illness, or severe injury to any person or substantial 
destruction of property, section 5123 provided for penalties up to 
$100,000. MAP-21 amended section 5123 to remove the minimum penalty for 
violations related to the transportation of hazardous materials, 
provide for penalties up to $75,000 for violations related to the 
transportation of hazardous materials or training, and $175,000 in the 
event of death, serious illness, severe injury or substantial 
destruction of property. To implement these changes, this final rule 
amends 49 CFR part 386, Appendix B (e)(1-5).
    Other MAP-21 provisions that are the basis for changes to 
additional civil penalties in this final rule include: Section 32108, 
Reporting and recordkeeping related to operating authority registration 
(49 U.S.C. 14901(a)); section 32108, Passenger carrier operating 
without registration (49 U.S.C. 14901(a)); section 32108, Property 
carrier operating without registration (49 U.S.C. 14901(a)); section 
32108, a motor carrier or broker transporting hazardous waste without 
registration (49 U.S.C. 14901(b)); section 32110, Disobedience to a 
subpoena (49 U.S.C. 525); section 32503, Operating in violation of an 
unsatisfactory/unfit out of service order (49 U.S.C. 521(b)(2)(F)); 
section 32503, Operating in violation of an imminent hazard order (49 
U.S.C. 521(b)(2)(F)); section 32505, Strikes ``knowingly and 
willfully'' from 49 U.S.C. 524 (evasion of safety-related regulations); 
section 32505, Evasion of commercial regulations (49 U.S.C. 14906);); 
and section 32919, Unlawful brokering (49 U.S.C. 14916).

C. SAFETEA-LU

    Two provisions under the Safe Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (Pub. L. 109-59, 119 
Stat. 1144, Aug. 10, 2005), (SAFETEA-LU) provides authority to increase 
civil penalties. First, section 4102 (b), codified at 49 U.S.C. 31310 
(i)(2)(C), addresses an employer of a CDL-holder who knowingly allows, 
requires, permits, or authorizes an employee to operate a CMV when the 
CDL-holder is subject to an out-of-service order. Second, section 4209 
(d)(3), codified at 49 U.S.C. 14901 (d)(3), addresses providing 
household good transportation without a registration.

D. Other Authorities

    Generally, agencies may promulgate final rules only after issuing a 
notice of proposed rulemaking and providing an opportunity for public 
comment under procedures required by the Administrative Procedure Act 
(5 U.S.C. 551-706) (APA), as provided in 5 U.S.C. 553(b) and (c). The 
APA provides a good cause exception from these requirements when notice 
and public comment procedures are ``impracticable, unnecessary, or 
contrary to the public interest'' (5 U.S.C. 553(b)(3)(B)). However, the 
good cause exception requires an agency finding that includes a brief 
statement of reasons in the rules issued to dispense with notice and 
comment procedures.
    In this instance, FMCSA finds that notice and comment is 
unnecessary prior to adoption of this final rule because adjustments to 
civil penalties are statutorily mandated by Congress and the Agency's 
final rule is a nondiscretionary, ministerial act to implement these 
statutory obligations. The amendments made in this final rule merely 
adjust penalty provisions for inflation and do not impose new 
discretionary requirements on the public. For these reasons, the FMCSA 
finds good cause that notice and public comment in accordance with the 
APA on this final rule is unnecessary. For the same reasons the agency 
finds notice and comment procedures unnecessary under 49 U.S.C. 
553(b)(3)(B), the agency also finds good cause under 49 U.S.C. 553(d) 
that this rule be effective on the date of publication in the Federal 
Register.
    Finally, 49 U.S.C. 31138 (c)(4) and 49 U.S.C. 31139 (c) are 
authorities relied upon to address technical amendments to part 387 
regarding factors FMCSA must take into account in assessing penalties, 
which includes the ability of parties to pay violations. These changes 
to part 387 capture the precise statutory language of those 
authorities.

III. Background

    This final rule eliminates existing inconsistencies between 
regulatory language in Appendices A and B of part 386 and other parts 
of the FMCSRs by removing the penalty amounts from the regulatory 
language and listing all penalty amounts in these appendices only. 
Specifically, for ease of reference, the penalty amounts contained in 
sections 383.53 (b) and (c), section 385.111(h), section 387.17, and 
section 387.41 are removed and now referenced only in Appendix B.

A. Method of Calculation

    Under the DCIA, the inflation adjustment for each civil penalty is 
determined by increasing the maximum civil penalty amount per violation 
by applying a cost-of-living adjustment. The DCIA specifies the cost-
of-living adjustment as the percentage by which the Consumer Price 
Index (CPI) ``for the month of June of the calendar year preceding the 
adjustment exceeds the CPI for the month of June of the year in which 
the amount of such civil penalty was last set or adjusted pursuant to 
law'' ((section 5(b))). Any calculated increase under this adjustment 
is subject to a specific rounding formula set forth in the DCIA as 
follows:
    (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

[[Page 18148]]

    (6) multiple of $25,000 in the case of penalties greater than 
$200,000.
    For example, under Appendix A of 49 CFR part 386, part IV, 
paragraph (e), failure to return a written certification of correction 
as required by an out-of-service order, is subject to a civil penalty. 
The penalty was adjusted for inflation on September 28, 2007 (72 FR 
55100), resulting in a maximum penalty of $750 per violation. The CPI 
was approximately 238 in June 2014, and 208 in June 7, 2007 (see U.S. 
Bureau of Labor Statistics at http://www.bls.gov/cpi/). Thus, the 
inflation factor is 238/208 or 1.14.\1\ The new penalty amount after 
the increase is the result of multiplying $750 x 1.14 = $855. Under the 
statute, however, the inflation adjustment increase is to be rounded to 
the nearest multiple of $100 in the case of penalties greater than $100 
but less than or equal to $1,000. In this example, the amount of the 
increase in the daily maximum penalty was $105, and when rounded to the 
nearest multiple of $100 equals $100, so the new daily maximum penalty 
is $850. Therefore, Appendix A, 49 CFR part 386, part IV, paragraph (e) 
is revised to provide an adjusted maximum penalty of $850 ($750 + $100) 
per violation.
---------------------------------------------------------------------------

    \1\ For this calculation, FMCSA utilized the unrounded CPI 
values and rounded the inflation factor to the nearest tenth. The 
exact calculation is (238.343/208.352) = 1.14.
---------------------------------------------------------------------------

    The 1.14 inflation factor is used to adjust penalties that were 
adjusted in 2007, which included penalties: Under the Transportation 
Equity Act for the 21st Century (Pub. L. 105-178, 112 Stat. 107); 
established in the ICC Termination Act of 1995 (Pub. L. 104-88, 109 
Stat. 809); and enacted in the Motor Carrier Safety Improvement Act of 
1999 (Pub. L. 106-159, 113 Stat. 1748 (Dec. 9, 1999)).
    Some penalties were adjusted in 2003 but not adjusted in 2007. The 
adjustment factor used to update those amounts in this final rule uses 
the June 2003 CPI value of 184: 238/184 = 1.30. For example, the 
penalty for operating a CMV when the driver was placed out of service 
(49 CFR part 386, Appendix B, paragraph (b)) was $3,750 per violation. 
This penalty has not been adjusted since 2003, so it will be increased 
to $4,750, applying the following calculation: The increment of $1,125 
($3,750 x 1.30 = $4,875, less the original penalty of $3,750) will be 
rounded to the nearest thousand and added to the original value of the 
penalty. If the penalty is less than half the rounding amount, no 
inflation factor will be added. See the table, Inflation Adjustments 
for part 386, in the Section-by-Section discussion, directly below.
    However, the statute requires that any penalty being adjusted for 
the first time not exceed 10% of such penalty. Each of these are marked 
with an asterisk in the following table. For example, the penalty for 
an employer of a CDL-holder who knowingly allows, requires, permits or 
authorizes that CDL-holder to operate a CMV in violation of a Federal, 
State, or local law or regulation (part 386, Appendix B (b)(3)) is 
$10,000 for each offense. The adjustment would be $3,000 based on the 
following calculation: $10,000 x 1.30= $13,000, or an increase of 
$3,000. But since its first adjustment would be greater than 10%, the 
actual adjustment is capped at $1,000, which means the inflated penalty 
amount is now $11,000 ($10,000 + $1,000).
    MAP-21 revised several civil penalties under the Federal Hazardous 
Materials Regulations (49 CFR parts 171-180), which have been 
promulgated by final rule in 78 FR 60226, (October 1, 2013). The FMCSA 
is not adjusting these penalties for inflation or any penalties 
established in 2011 and 2012, because, given their comparatively recent 
establishment, the inflationary adjustments would have, at most, a 
minimal impact on these penalties. However, the agency will increase 
such penalties in future rulemakings as appropriate.

IV. Section-by-Section Analysis

Summary of Penalty Adjustments

    As noted in the regulatory text (part 386 appendices A and B) in 
today's rule, the adjusted civil penalties identified in the appendices 
supersede, where a discrepancy exists, the corresponding civil penalty 
amounts identified in title 49, United States Code.

Part 383

    The penalty amounts contained in Sections 383.53 (b) and (c) are 
removed and now referenced in Appendix B (b)(1), (b)(2), and (b)(3).

Part 385

    The penalty amount contained in Section 385.111(h) is removed and 
now referenced in Appendix B (f)(1).

Part 386

    Part 386 Appendix A has a new introduction to mirror the language 
at the beginning of Appendix B. Below is the table with the current 
civil penalty amounts in the appendices of part 386 and increases 
applied:

                                                       Table 1--Inflation Adjustments for Part 386
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Current        Inflation       Increment    Final adjusted
       Civil penalty location in Part 386        penalty amount       rate           applied         value:                  Legal authority
--------------------------------------------------------------------------------------------------------------------------------------------------------
Appendix A II Subpoena.........................          $1,000            0.00              $0          $1,000  MAP-21 Pub. L. 112-141, sec. 32110, 126
                                                                                                                  Stat. 405, 782, (2012) (49 U.S.C.
                                                                                                                  525).
Appendix A II Subpoena.........................          10,000            0.00               0          10,000  MAP-21 Pub. L. 112-141, sec. 32110, 126
                                                                                                                  Stat. 405, 782 (2012) (49 U.S.C. 525).
Appendix A IV (a) Out-of-service order                    2,100            1.30           1,000           3,100  Pub. L. 98-554, sec. 213(b), 98 Stat.
 (operation of CMV by driver).                                                                                    2829, 2841-2843 (1984) (49 U.S.C.
                                                                                                                  521(b)(7)), 55 FR 11224 (March 27,
                                                                                                                  1990).
Appendix A IV (b) Out-of-service order                   16,000            1.30           5,000          21,000  Pub. L. 98-554, sec. 213(a), 98 Stat,
 (requiring or permitting operation of CMV by                                                                     2829 (1984) (49 U.S.C. 521(b)(7)), 55
 driver).                                                                                                         FR 11224 (March 27, 1990).

[[Page 18149]]

 
Appendix A IV (c) Out-of-service order                    2,100            1.30           1,000           3,100  Pub. L. 98-554, sec. 213(a), 98 Stat
 (operation by driver of CMV or intermodal                                                                        2829 (1984) (49 U.S.C. 521(b)(7)), 55
 equipment that was placed out of service).                                                                       FR 11224 (March 27, 1990).
Appendix A IV (d) Out-of-service order                   16,000            1.30           5,000          21,000  Pub. L. 98-554, sec. 213(a), 98 Stat
 (requiring or permitting operation of CMV or                                                                     2829 (1984) (49 U.S.C. 521(b)(7)), 55
 intermodal equipment that was placed out of                                                                      FR 11224 (March 27, 1990).
 service).
Appendix A IV (e) Out-of-service order (failure             750            1.14             100             850  49 U.S.C. sec. 521 (b)(2)(B), 49 CFR
 to return written certification of correction).                                                                  396.9 (d)(3).
Appendix A IV (g) Out-of-service order (failure          25,000            0.00               0          25,000  MAP-21, Pub. L. 112-141, sec. 32503,
 to cease operations as ordered).                                                                                 126 Stat. 405, 803 (2012) (49 U.S.C.
                                                                                                                  521(b)(2)(F)).
Appendix A IV (h) Out-of-service order                   16,000            0.00               0          16,000  Pub. L. 98-554, sec. 213(a), 98 Stat,
 (operating in violation of order.).                                                                              2829, 2841-2843 (1984) (49 U.S.C.
                                                                                                                  521(b)(7)).
Appendix A IV (i) Out-of-service order                   11,000            1.30           5,000          16,000  TEA-21, Pub. L. 105-178, sec. 4015(b),
 (conducting operations during suspension or                                                                      112 Stat. 411-12 (1998) (49 U.S.C.
 revocation for failure to pay penalties).                                                                        521(b)(2)(A)), 521 (b)(7)), 65 FR
                                                                                                                  56521, 56530 (September 19, 2000).
Appendix A IV (j) (conducting operations during          11,000            0.00               0          11,000  Pub. L. 98-554, sec. 213(a), 98 Stat,
 suspension or revocation).                                                                                       2829, 2841-2843 (1984) (49 U.S.C.
                                                                                                                  521(b)(7)).
Appendix B (a)(1)* Recordkeeping--maximum                 1,000            1.10             100           1,100  SAFETEA-LU, Pub. L. 109-59, sec. 4102
 penalty per day.                                                                                                 (a), 119 Stat. 1144, 1715 (2005) (49
                                                                                                                  U.S.C. 521(b)(2)(B)(i)).
Appendix B (a)(1)* Recordkeeping--maximum total          10,000            1.10           1,000          11,000  SAFETEA-LU, Pub. L. 109-59, sec. 4102
 penalty.                                                                                                         (a), 119 Stat. 1144, 1715 (2005) (49
                                                                                                                  U.S.C. 521(b)(2)(B)(i)).
Appendix B (a)(2)* Knowing falsification of              10,000            1.10           1,000          11,000  SAFETEA-LU, Pub. L. 109-59, sec. 4102
 records.                                                                                                         (a), 119 Stat. 1144, 1715 (2005) (49
                                                                                                                  U.S.C. 521(b)(2)(B)(ii)).
Appendix B (a)(3) Non-recordkeeping violations.          11,000            1.30           5,000          16,000  TEA-21, Pub. L. 105-178, sec. 4015(b),
                                                                                                                  112 Stat. 107, 411-12 (1998) (49
                                                                                                                  U.S.C. 521(b)(2)(A)).
Appendix B (a)(4) Non-recordkeeping violations            2,750            1.30           1,000           3,750  TEA-21, Pub. L. 105-178, sec. 4015(b),
 by drivers.                                                                                                      112 Stat. 107, 411-12 (1998) (49
                                                                                                                  U.S.C. 521(b)(2)(A)).
Appendix B (a)(5)* Violation of 49 CFR 392.5...           3,750            1.10             375           4,125  SAFETEA-LU, Pub. L. 109-59, 119 Stat.
                                                                                                                  1144, 1715; sec. 4102 (b), 119 Stat.
                                                                                                                  1715-16 (2005) (49 U.S.C. 31310
                                                                                                                  (i)(2)(A)).
Appendix B (b) Commercial driver's license                3,750            1.30           1,000           4,750  Pub. L. 99-570,
 (CDL) violations.                                                                                               sec. 12012(b), 100 Stat. 3207-184-85
                                                                                                                  (1986) (49 U.S.C. 521(b)(2)(C)).
Appendix B (b)(1)*\M\ Special penalties                   2,500            1.10             250           2,750  SAFETEA-LU, Pub. L. 109-59, sec.
 pertaining to violation of out-of-service                                                                        4102(b), 119 Stat. 1144, 1715 (2005)
 orders (first conviction).                                                                                       (49 U.S.C. 31310 (i)(2)(A)).
Appendix B (b)(1)*\M\ Special penalties                   5,000            1.10             500           5,500  SAFETEA-LU, Pub. L. 109-59, 119, sec.
 pertaining to violation of out-of-service                                                                        4102 (b), Stat. 1144, 1715 (2005) (49
 orders (second or subsequent conviction).                                                                        U.S.C. 31310 (i)(2)(A)).
Appendix B (b)(2)\M\ Employer violations                  3,750            1.30           1,000           4,750  Pub. L. 99-570, sec. 12012(b), 100
 pertaining to knowingly allowing, authorizing                                                                    Stat. 3207,184-85 (1986) (49 U.S.C.
 employee violations of out-of-service order                                                                      521(b)(2)(C)).
 (minimum penalty).
Appendix B (b)(2)*\M\ Employer violations                25,000            1.10           2,500          27,500  SAFETEA-LU, Pub. L. 109-59, sec. 4102
 pertaining to knowingly allowing, authorizing                                                                    (b), 119 Stat. 1144, 1715 (2005) (49
 employee violations of out-of-service order                                                                      U.S.C. 31310 (i)(2)(C)).
 (maximum penalty).

[[Page 18150]]

 
Appendix B (b)(3)\M\* Special penalties                  10,000            1.10           1,000          11,000  ICC Termination Act of 1995, Pub. L.
 pertaining to railroad-highway grade crossing                                                                    104-88, sec. 403(a), 109 Stat. 956
 violations.                                                                                                      (1995) (49 U.S.C. 31310(j)(2)(B)).
Appendix B (d) Financial responsibility                  16,000            1.30           5,000          21,000  Pub. L. 103-272, sec. 31139(f), 108
 violations.                                                                                                      Stat. 745, 1006-1008 (1994) (49 U.S.C.
                                                                                                                  31139(g)(1)).
Appendix B (e)(1) Violations of Hazardous                75,000            0.00               0          75,000  MAP-21 Pub. L. 112-141, sec. 33010, 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837-838 (2012) (49 U.S.C.
 Permitting Regulations (transportation or                                                                        5123(a)(1)).
 shipment of hazardous materials).
Appendix B (e)(2) Violations of Hazardous                   450            0.00               0             450  MAP-21 Pub. L. 112-141, sec. 33010, 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837 (2012) (49 U.S.C.
 Permitting Regulations (training)--minimum                                                                       5123(a)(3)).
 penalty.
Appendix B (e)(2) Violations of Hazardous                75,000            0.00               0          75,000  MAP-21 Pub. L. 112-141, sec. 33010 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837 (2012) (49 U.S.C.
 Permitting Regulations (training)--maximum                                                                       5123(a)(1)).
 penalty.
Appendix B (e)(3) Violations of Hazardous                75,000            0.00               0          75,000  MAP-21 Pub. L. 112-141, sec. 33010, 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837, (2012) 49 U.S.C.
 Permitting Regulations (packaging or                                                                             5123(a)(1)).
 container).
Appendix B (e)(4) Violations of Hazardous                75,000            0.00               0          75,000  MAP-21 Pub. L. 112-141, sec. 33010, 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837 (2012) (49 U.S.C.
 Permitting Regulations (compliance with                                                                          5123(a)(1)).
 FMCSRs).
Appendix B (e)(5) Violations of Hazardous               175,000            0.00               0         175,000  MAP-21 Pub. L. 112-141, sec. 33010, 126
 Materials Regulations (HMRs) and Safety                                                                          Stat. 405, 837 (2012) (49 U.S.C.
 Permitting Regulations (death, serious                                                                           5123(a)(2)).
 illness, severe injury to persons; destruction
 of property).
Appendix B (f)(1) Operating after being                  25,000            0.00               0          25,000  MAP-21, Pub. L. 112-141, sec. 32503,
 declared unfit by assignment of a final                                                                          126 Stat. 405, 803 (2012) (49 U.S.C.
 ``unsatisfactory'' safety rating (generally).                                                                    521(b)(2)(F)).
Appendix B (f)(2) Operating after being                  75,000            0.00               0          75,000  MAP-21, Pub. L. 112-141, sec. 33010,
 declared unfit by assignment of a final                                                                          126 Stat. 405, 837 (49 U.S.C.
 ``unsatisfactory'' safety rating (hazardous                                                                      5123(a)(1)).
 materials)--maximum penalty.
Appendix B (f)(2) Operating after being                 175,000            0.00               0         175,000  MAP-21, Pub. L. 112-141, sec. 33010,
 declared unfit by assignment of a final                                                                          126 Stat. 405, 837 (2012) (49 U.S.C.
 ``unsatisfactory'' safety rating (hazardous                                                                      5123(a)(2)).
 materials)--maximum penalty if death, serious
 illness, severe injury to persons; destruction
 of property.
Appendix B (g)(1)\M\ Violations of the                   10,000            0.00               0          10,000  MAP-21, Pub. L. 112-141, sec. 32108(a),
 commercial regulations (CR) (property                                                                            126 Stat. 405, 782 (2012) (49 U.S.C.
 carriers).                                                                                                       14901(a)).
Appendix B (g)(2) Violations of the CRs                  10,000            0.00               0          10,000  MAP-21 Pub. L. 112-141, sec. 32919(a),
 (brokers).                                                                                                       126 Stat. 405, 827 (2012) (49 U.S.C.
                                                                                                                  Sec.   14916(c)).
Appendix B (g)(3) Violations of the CRs                  25,000            0.00               0          25,000  MAP-21, Pub. L. 112-141, sec. 32108(a),
 (passenger carriers).                                                                                            126 Stat. 405, 782 (2012) (49 U.S.C.
                                                                                                                  Sec.   14901(a)).
Appendix B (g)(4) Violations of the CRs                  10,000            0.00               0          10,000  MAP-21, Pub. L. 112-141, sec. 32108(a),
 (foreign motor carriers, foreign motor private                                                                   126 Stat. 405, 782 (2012) (49 U.S.C.
 carriers).                                                                                                       14901(a)).

[[Page 18151]]

 
Appendix B (g)(5) Violations of the CRs                  11,000            1.30           5,000          16,000  MCSIA of 1999, Pub. L. 106-59, sec.
 (foreign motor carriers, foreign motor private                                                                   219(b), 113 Stat. 1748, 1768 (1999)
 carriers before implementation of North                                                                          (49 U.S.C. 14901 note).
 American Free Trade Agreement land
 transportation provisions)--maximum penalty
 for intentional violation.
Appendix B (g)(5) Violations of the CRs                  32,500            1.14           5,000          37,500  MCSIA of 1999, Pub. L. 106-59, sec.
 (foreign motor carriers, foreign motor private                                                                   219(c), 113 Stat. 1748, 1768 (1999)
 carriers before implementation of North                                                                          (49 U.S.C. 14901 note).
 American Free Trade Agreement land
 transportation provisions)--maximum penalty
 for a pattern of intentional violations.
Appendix B (g)(6) Violations of the CRs (motor           20,000            0.00               0          20,000  MAP-21, Pub. L. 112-141, sec. 32108,
 carrier or broker for transportation of                                                                          126 Stat. 405, 782 (2012) (49 U.S.C.
 hazardous wastes)--minimum penalty.                                                                              14901(b)).
Appendix B (g)(6) Violations of the CRs (motor           40,000            0.00               0          40,000  MAP-21 Pub. L. 112-141, sec. 32108, 126
 carrier or broker for transportation of                                                                          Stat. 405,782 (2012) (49 U.S.C.
 hazardous wastes)--maximum penalty.                                                                              14901(b)).
Appendix B (g)(7) Violations of the CRs (HHG              1,100            1.30               0           1,100  ICC Termination Act of 1995, Pub. L.
 carrier or freight forwarder, or their                                                                           104-88, sec. 103, 100 Stat. 803, 914
 receiver or trustee).                                                                                            (1995) (49 U.S.C. Sec.   14901(d)(1)).
Appendix B (g)(8) Violation of the CRs (weight            2,200            1.30           1,000           3,200  ICC Termination Act of 1995, Pub. L.
 of HHG shipment, charging for services)--                                                                        104-88, sec. 103, 100 Stat. 803, 914
 minimum penalty for first violation.                                                                             (1995) (49 U.S.C. Sec.   14901(e)).
Appendix B (g)(8) Violation of the CRs (weight            6,500            1.14           1,000           7,500  ICC Termination Act of 1995, Pub. L.
 of HHG shipment, charging for services)--                                                                        104-88, sec. 103, 100 Stat. 803, 914
 subsequent violations.                                                                                           (1995) (49 U.S.C. 14901(e)).
Appendix B (g)(10) Tariff violations...........         120,000            1.14          20,000         140,000  ICC Termination Act of 1995, Pub. L.
                                                                                                                  104-88, sec. 103, 100 Stat. 803, 868-
                                                                                                                  869, 915 (1995) (49 U.S.C. 13702,
                                                                                                                  14903).
Appendix B (g)(11) Additional tariff violations             220            1.30             100             320  ICC Termination Act of 1995, Pub. L.
 (rebates or concessions)--first violation.                                                                       104-88, sec. 103, 100 Stat. 803, 915-
                                                                                                                  916 (1995) (49 U.S.C. 14904(a)).
Appendix B (g)(11) Additional tariff violations             275            1.30             100             375  ICC Termination Act of 1995, Pub. L.
 (rebates or concessions)--subsequent                                                                             104-88, sec. 103, 100 Stat. 803, 915-
 violations.                                                                                                      916 (1995) (49 U.S.C. 14904(a)).
Appendix B (g)(12) Tariff violations (freight               650            1.14             100             750  ICC Termination Act of 1995, Pub. L.
 forwarders)--maximum penalty for first                                                                           104-88, sec. 103, 100 Stat. 803, 916
 violation.                                                                                                       (49 U.S.C. 14904(b)(1)).
Appendix B (g)(12) Tariff violations (freight             2,200            1.30           1,000           3,200  ICC Termination Act of 1995, Pub. L.
 forwarders)--maximum penalty for subsequent                                                                      104-88, sec. 103, 100 Stat. 803, 916
 violations.                                                                                                      (1995) (49 U.S.C. Sec.   14904(b)(1)).
Appendix B (g)(13) service from freight                     650            1.14             100             750  ICC Termination Act of 1995, Pub. L.
 forwarder at less than rate in effect--maximum                                                                   104-88, sec. 103, 100 Stat. 803, 916
 penalty for first violation.                                                                                     (1995) (49 U.S.C. 14904(b)(2)).
Appendix B (g)(13) service from freight                   2,200            1.30           1,000           3,200  ICC Termination Act of 1995, Pub. L.
 forwarder at less than rate in effect--maximum                                                                   104-88, sec. 103, 100 Stat. 803, 916
 penalty for subsequent violation(s).                                                                             (1995) (49 U.S.C. 14904(b)(2)).
Appendix B (g)(14) Violations related to                 11,000            1.30           5,000          16,000  ICC Termination Act of 1995, Pub. L.
 loading and unloading motor vehicles.                                                                            104-88, sec. 103, 100 Stat. 803, 916
                                                                                                                  (1995) (49 U.S.C. 14905).
Appendix B (g)(16) Reporting and recordkeeping            1,000            0.00               0           1,000  MAP-21, Pub. L. 112-141, sec. 32108,
 under 49 U.S.C. subtitle IV, part B (except                                                                      126 Stat. 405, 782 (2012) (49 U.S.C.
 13901 and 13902(c)--minimum penalty.                                                                             14901).

[[Page 18152]]

 
Appendix B (g)(16) Reporting and recordkeeping            6,500            1.14           1,000           7,500  ICC Termination Act of 1995, Pub. L.
 under 49 U.S.C. subtitle IV, part B--maximum                                                                     104-88, sec. 103, 100 Stat. 803, 916-
 penalty.                                                                                                         917 (1995) (49 U.S.C. 14907).
Appendix B (g)(17) Unauthorized disclosure of             2,200            1.30           1,000           3,200  ICC Termination Act of 1995, Pub. L.
 information.                                                                                                     104-88, sec. 103, 100 Stat. 803, 917
                                                                                                                  (1995) (49 U.S.C. 14908).
Appendix B (g)(18) Violation of 49 U.S.C.                   650            1.14             100             750  ICC Termination Act of 1995, Pub. L.
 subtitle IV, part B, or condition of                                                                             104-88, sec. 103, 100 Stat. 803, 917
 registration.                                                                                                    (1995) (49 U.S.C. 14910).
Appendix B (g)(21)(i)*\M\: Knowingly and                 10,000            1.10           1,000          11,000  ICC Termination Act of 1995, Pub. L.
 willfully fails to deliver or unload HHG at                                                                      104-88, sec. 103, 100 Stat. 803, 916
 destination.                                                                                                     (1995) (49 U.S.C. 14905).
Appendix B (g)(22)* HHG broker estimate before           10,000            1.09             900          10,900  SAFETEA-LU, Pub. L. 109-59, sec.
 entering into an agreement with a motor                                                                          4209(2), 119 Stat. 1144, 1758, (2005)
 carrier.                                                                                                         (49 U.S.C. 14901(d)(2)).
Appendix B (g)(23)* HHG transportation or                25,000            1.09           2,250          27,250  SAFETEA-LU, Pub. L. 109-59, sec.
 broker services--registration requirement.                                                                       4209(d)(3), 119 Stat. 1144, 1758
                                                                                                                  (2005) (49 U.S.C. 14901 (d)(3)).
Appendix B (h)* Copying of records and access             1,000            1.10             100           1,100  SAFETEA-LU, Pub. L. 109-59, sec.
 to equipment, lands, and buildings--maximum                                                                      4103(2), 119 Stat. 1144, 1716 (2005)
 penalty per day.                                                                                                 (49 U.S.C. 521(b)(2)(E)).
Appendix B (h)* Copying of records and access            10,000            1.10           1,000          11,000  SAFETEA-LU, Pub. L. 109-59, sec.
 to equipment, lands, and buildings--maximum                                                                      4103(2), 119 Stat. 1716 (2005) (49
 total penalty.                                                                                                   U.S.C. 521(b)(2)(E)).
Appendix B (i)(1)\M\ Evasion of regulations               2,000            0.00               0           2,000  MAP-21 Pub. L. 112-141, sec. 32505, 126
 under 49 U.S.C. ch. 5, 51, subchapter III of                                                                     Stat. 405, 804 (2012) (49 U.S.C. 524).
 311 (except 31138 and 31139), 31302-31304,
 31305(b), 31310(g)(1)(A), 31502--minimum
 penalty for first violation.
Appendix B (i)(1)\M\ Evasion of regulations               5,000            0.00               0           5,000  MAP-21 Pub. L. 112-141, Sec.   sec.
 under 49 U.S.C. ch. 5, 51, subchapter III of                                                                     32505, 126 Stat. 405, 804 (2012) (49
 311 (except 31138 and 31139), 31302-31304,                                                                       U.S.C. 524).
 31305(b), 31310(g)(1)(A), 31502--maximum
 penalty for first violation.
Appendix B (i)(1)\M\ Evasion of regulations               2,500            0.00               0           2,500  MAP-21 Pub. L. 112-141, sec. 32505, 126
 under 49 U.S.C. ch. 5, 51, subchapter III of                                                                     Stat. 405, 804 (2012) (49 U.S.C. 524).
 311 (except 31138 and 31139), 31302-31304,                                                                      MAP-21 Pub. L. 112-141, Sec.   32505,
 31305(b), 31310(g)(1)(A), 31502--minimum                                                                         126 Stat. 405, 804 (2012) (49 U.S.C.
 penalty for subsequent violation(s).                                                                             524).
Appendix B (i)(1)\M\ Evasion of regulations               7,500            0.00               0           7,500  MAP-21 Pub. L. 112-141, sec. 32505, 126
 under 49 U.S.C. ch. 5, 51, subchapter III of                                                                     Stat. 405, 804 (2012) (49 U.S.C. 524).
 311 (except 31138 and 31139), 31302-31304,
 31305(b), 31310(g)(1)(A), 31502--maximum
 penalty for subsequent violation(s).
Appendix B (i)(2)\M\ Evasion of regulations               2,000            0.00               0           2,000  MAP-21 Pub. L. 112-141, sec. 32505, 126
 under 49 U.S.C. subtitle IV, part B--minimum                                                                     Stat. 405, 804 (2012) (49 U.S.C.
 penalty for first violation.                                                                                     14906).
Appendix B (i)(2)\M\ Evasion of regulations               5,000            0.00               0           5,000  MAP-21 Pub. L. 112-141, sec. 32505, 126
 under 49 U.S.C. subtitle IV, part B--minimum                                                                     Stat. 405, 804 (2012) (49 U.S.C.
 penalty for subsequent violation(s).                                                                             14906).
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 18153]]

    The provisions that are being updated for the first time here are 
marked with an asterisk. Their adjustment is capped at 10%. There are 
two penalties from 2010 that will be updated for the first time in this 
rule and will have an inflation rate of 1.09 (238/218). Penalties that 
were established recently will not be adjusted and are marked with an 
n/a for not applicable. Penalties marked with an ``\M\'' were moved 
from other locations in Appendix B or other regulatory provisions, as 
noted in this section. Of these moved provisions, two contain no 
penalty amounts because they were reserved for future use. Penalties 
that were last adjusted in 2003 have an inflation rate of 1.30, and 
those that were adjusted for inflation in 2007 have an inflation rate 
of 1.14.
    In Appendix B subsection (c), Special penalties pertaining to 
violations of out-of-service orders by CDL holders, was reserved, and 
its former provisions were placed into two subsections Appendix B 
(b)(1) and (2) in the same order they appeared in subsection (c). The 
first provision relates to a CDL holder, while the second relates to an 
employer of a CDL holder. This change clarifies Appendix B by placing 
all penalties related to commercial driver license programs into one 
section for ease of use. To implement this change, the reserved 
subsection (c) title, ``Special penalties pertaining to violations of 
out-of-service orders by CDL holders,'' was deleted. Second, the phrase 
``except: (1)'' Was inserted before the new provision beginning with 
the phrase ``A CDL holder.'' Third, the word ``and'' was added between 
new subsections (b)(1) and (b)(2) to properly mark them as separate 
provisions.
    Appendix B subsection (g)(1) is deleted and moved to current 
subsection (g)(16) in order that both the minimum and maximum penalties 
appear in one consolidated provision.
    Former Appendix B subsection (g)(2) is now divided into two 
separate subsections, the first regarding motor carriers and the second 
addressing brokers. Specifically, former subsection (g)(2) is renamed 
subsection (g)(1) and the term ``broker'' is deleted and the term 
``motor'' added before the term ``carrier'' to clarify its application 
to motor carriers only. In addition, a new subsection (g)(2) is amended 
based on a statutory provision in MAP-21, sec. 32919(a), 49 U.S.C. 
14916, which contains penalties associated with knowingly violating 
registration (49 U.S.C. 13904) and financial security requirements (49 
U.S.C. 13906) for brokers.
    Subsection (g)(15), regarding evasion of commercial regulations was 
reserved. And its provisions were moved to section (i) in a new 
paragraph (2). Existing paragraph (1) regarding evasion of safety 
regulations remains in place.

Part 387

    The penalty amounts contained in Sections 387.17 and 387.41 are 
removed and now referenced in Appendix B (d) only. This also corrects a 
discrepancy between the Appendix B penalty amount, that had been 
properly inflated, and the amount in the regulatory text, which had not 
been properly inflated. In addition, the phrase ``ability to pay and 
any'' was added before the phrase ``effect on ability'' in both 
sections 387.17 and 387.41 to capture the precise statutory language in 
49 U.S.C. 31138 (c)(4) and 49 U.S.C. 31139 (c) regarding factors FMCSA 
must consider before assessing penalties.

V. Rulemaking Analyses and Notices

Regulatory Planning and Review (Executive Order (E.O.) 12866) and DOT 
Regulatory Policies and Procedures

    The FMCSA has determined that this action is not a significant 
regulatory action within the meaning of Executive Order 12866, as 
supplemented by E.O. 13563 (76 FR 3821, January 21, 2011) or within the 
meaning of Department of Transportation Regulatory Policies and 
Procedures. The Office of Management and Budget (OMB) did not review 
this document. The changes imposed by this final rule upon the civil 
penalty amounts alter only the magnitude of transfer payments, which by 
definition are not considered in the monetization of societal costs and 
benefits of rulemakings. Congress has stated in the Adjustment Act, 
section 2, that increasing penalties over time will deter violations. 
Therefore, FMCSA infers that there may be some safety benefits that 
occur due to this final rule. The deterrence effect of increasing 
penalties that Congress has recognized, however, cannot be quantified 
into safety benefits. The Agency expects the final rule, which is 
statutorily mandated to preserve the remedial effect of civil 
penalties, will have minimal costs. Therefore, a full regulatory 
evaluation is unnecessary.

Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities 
in understanding this final rule so that they can better evaluate its 
effects on themselves and participate in the rulemaking initiative. If 
the final rule would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please consult the FMCSA point of 
contact, Ms. Nikki McDavid, listed in the FOR FURTHER INFORMATION 
CONTACT section of this final rule.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business Administration's Small Business and 
Agriculture Regulatory Enforcement Ombudsman and the Regional Small 
Business Regulatory Fairness Boards. The Ombudsman evaluates these 
actions annually and rates each agency's responsiveness to small 
business. If you wish to comment on actions by employees of FMCSA, call 
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights 
of small entities to regulatory enforcement fairness and an explicit 
policy against retaliation for exercising these rights.

Unfunded Mandates Reform Act of 1995

    The final rule will not impose an unfunded Federal mandate, as 
defined by the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532, et 
seq.), that will result in the expenditure by State, local and tribal 
governments, in the aggregate, or by the private sector, of $151 
million (which is the value equivalent of $100,000,000 in 1995, 
adjusted for inflation to 2012 levels) or more in any 1 year.

Federalism (E.O. 13132)

    A rule has implications for Federalism under Section 1(a) of 
Executive Order 13132 if it has ``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.'' FMCSA has determined that this rule 
would not have substantial direct costs on or for States, nor would it 
limit the policymaking discretion of States. Nothing in this document 
preempts any State law or regulation. Therefore, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism assessment.

Civil Justice Reform (E.O. 12988)

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, 
eliminates ambiguity, and reduce burden.

[[Page 18154]]

Protection of Children (E.O. 13045)

    E.O. 13045, Protection of Children from Environmental Health Risks 
and Safety Risks (62 FR 19885, Apr. 23, 1997), requires agencies 
issuing ``economically significant'' rules, if the regulation also 
concerns an environmental health or safety risk that an agency has 
reason to believe may disproportionately affect children, to include an 
evaluation of the regulation's environmental health and safety effects 
on children. The Agency determined that this final rule is not 
economically significant. Therefore, no analysis of the impacts on 
children is required. In any event, the Agency does not anticipate that 
this regulatory action could in any respect present an environmental or 
safety risk that could disproportionately affect children.

Taking of Private Property (E.O. 12630)

    FMCSA reviewed this final rule in accordance with E.O. 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights, and has determined it will not effect a taking of 
private property or otherwise have taking implications.

Privacy Impact Assessment

    Section 522 of title I of division H of the Consolidated 
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447, 
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to 
conduct a privacy impact assessment (PIA) of a regulation that will 
affect the privacy of individuals. This rule does not require the 
collection of personally identifiable information (PII).

Intergovernmental Review (E.O. 12372)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this program.

Paperwork Reduction Act

    This action does not contain information collection requirements 
for purposes of the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 
3501 et seq.).

National Environmental Policy Act and Clean Air Act

    FMCSA analyzed this rule for the purpose of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
determined this action is categorically excluded from further analysis 
and documentation in an environmental assessment or environmental 
impact statement under FMCSA Order 5610.1(69 FR 9680, March 1, 2004), 
Appendix 2, paragraph (6)(b). The Categorical Exclusion (CE) in 
paragraph 6(b) covers technical or minor amendments to existing FMCSRs. 
The content in this rule is covered by this CE. The CE determination is 
available for inspection or copying in the Regulations.gov Web site 
listed under ADDRESSES.
    FMCSA also analyzed this rule under the Clean Air Act, as amended 
(CAA), section 176(c) (42 U.S.C. 7401 et seq.), and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this action is exempt from the CAA's general conformity 
requirement since it does not affect direct or indirect emissions of 
criteria pollutants.

Environmental Justice (E.O. 12898)

    Under E.O. 12898, each Federal agency must identify and address, as 
appropriate, ``disproportionately high and adverse human health or 
environmental effects of its programs, policies, and activities on 
minority populations and low-income populations'' in the United States, 
its possessions, and territories. FMCSA evaluated the environmental 
justice effects of this rule in accordance with the E.O., and has 
determined that no environmental justice issue is associated with this 
rule, nor is there any collective environmental impact that would 
result from its promulgation.

Energy Supply, Distribution, or Use (E.O. 13211)

    FMCSA has analyzed this rule under E.O. 13211, Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use. The Agency has determined that it is not a ``significant energy 
action'' under that order because it is not a ``significant regulatory 
action'' likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Therefore, it does not require a 
Statement of Energy Effects under E.O. 13211.

Indian Tribal Governments (E.O. 13175)

    This rule does not have tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it does not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes.

National Technology Transfer and Advancement Act (Technical Standards)

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through OMB, with an explanation of why using these standards would be 
inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards (e.g., specifications of materials, performance, 
design, or operation; test methods; sampling procedures; and related 
management systems practices) are standards that are developed or 
adopted by voluntary consensus standards bodies. This rule does not use 
technical standards. Therefore, we did not consider the use of 
voluntary consensus standards.

List of Subjects

49 CFR Part 383

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Highway safety, Motor carriers.

49 CFR Part 385

    Administrative practice and procedure, Highway safety, Mexico, 
Motor carriers, Motor vehicle safety, Reporting and recordkeeping 
requirements.

49 CFR Part 386

    Administrative procedures, Commercial motor vehicle safety, 
Highways and roads, Motor carriers, Penalties.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials 
transportation, Highway safety, Insurance, Intergovernmental relations, 
Motor carriers, Motor vehicle safety, Moving of household goods, 
Penalties, Reporting and recordkeeping requirements, Surety bonds.

    For the reasons stated in the preamble, FMCSA is amending title 49 
CFR parts 383, 385, 386, and 387 to read as follows:

PART 383--COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND 
PENALTIES

0
1. The authority citation for part 383 continues to read as follows:

    Authority:  49 U.S.C. 521, 31136, 31301 et seq., and 31502; 
secs. 214 and 215 of Pub. L. 106-159, 113 Stat. 1748, 1766, 1767; 
sec. 1012(b) of Pub. L. 107-56, 115 Stat. 272, 297, sec. 4140 of 
Pub. L. 109-59, 119 Stat. 1144, 1746; and 49 CFR 1.87.

[[Page 18155]]


0
2. Revise Sec.  383.53 to read as follows:


Sec.  383.53  Penalties.

    (a) General rule. Any person who violates the rules set forth in 
subparts B and C of this part may be subject to civil or criminal 
penalties under 49 U.S.C. 521(b), as provided in part 386, Appendix B, 
of this chapter.
    (b) Special penalties pertaining to violation of out-of-service 
orders--(1) Driver violations. A driver who is convicted of violating 
an out-of-service order shall be subject to a civil penalty as stated 
in part 386 Appendix B, in addition to disqualification under Sec.  
383.51(e).
    (2) Employer violations. An employer who is convicted of a 
violation of Sec.  383.37(d) shall be subject to a civil penalty as 
stated in part 386, appendix B, of this chapter.
    (c) Special penalties pertaining to railroad-highway grade crossing 
violations. An employer who is convicted of a violation of Sec.  
383.37(e) shall be subject to a civil penalty stated in part 386, 
appendix B, of this chapter.

PART 385--SAFETY FITNESS PROCEDURES

0
3. The authority citation for part 385 is revised to read as follows:

    Authority:  49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 5123, 
13901-13905, 31133, 31135, 31136, 31137(a), 31144, 31148, and 31502; 
Sec. 113(a), Pub. L. 103-311; Sec. 408, Pub. L. 104-88; Sec. 350 of 
Pub. L. 107-87; and 49 CFR 1.87.


0
4. Amend Sec.  385.111 by revising paragraph (h) to read as follows:


Sec.  385.111  Suspension and revocation of Mexico-domiciled carrier 
registration.

* * * * *
    (h) If a Mexico-domiciled motor carrier operates a commercial motor 
vehicle in violation of a suspension or out-of-service order, it shall 
be subject to the penalty provisions in 49 U.S.C. 521(b) and the amount 
as stated in part 386, appendix B, of this chapter.
* * * * *

PART 386--RULES OF PRACTICE FOR MOTOR CARRIER, INTERMODAL EQUIPMENT 
PROVIDER, BROKER, FREIGHT FORWARDER, AND HAZARDOUS MATERIALS 
PROCEEDINGS

0
5. The authority citation for part 386 is revised to read as follows:

    Authority:  49 U.S.C. 113, chapters 5, 51, 59, 131-141, 145-149, 
311, 313, and 315; 49 U.S.C. 5123; Sec. 204, Pub. L. 104-88, 109 
Stat. 803, 941 (49 U.S.C. 701 note); Sec. 217, Pub. L. 105-159, 113 
Stat. 1748, 1767; Sec. 206, Pub. L. 106-159, 113 Stat. 1763; 
subtitle B, title IV of Pub. L. 109-59; and 49 CFR 1.81 and 1.87.

0
6. Revise Appendix A to part 386 to read as follows:

Appendix A to Part 386--Penalty Schedule: Violations of Notices and 
Orders

    The Debt Collection Improvement Act of 1996 [Pub. L. 104-134, 
title III, chapter 10, sec. 31001, par. (s), 110 Stat. 1321-1373] 
amended the Federal Civil Penalties Inflation Adjustment Act of 1990 
to require agencies to adjust for inflation ``each civil monetary 
penalty provided by law within the jurisdiction of the Federal 
agency . . .'' and to publish that regulation in the Federal 
Register. Pursuant to that authority, the inflation adjusted civil 
penalties identified in this appendix supersede the corresponding 
civil penalty amounts identified in title 49, United States Code.

I. Notice to Abate

    Violation--Failure to cease violations of the regulations in the 
time prescribed in the notice. (The time within which to comply with a 
notice to abate shall not begin to run with respect to contested 
violations, i.e., where there are material issues in dispute under 
Sec.  386.14, until such time as the violation has been established.)
    Penalty--Reinstatement of any deferred assessment or payment of a 
penalty or portion thereof.

II. Subpoena

    Violation--Failure to respond to Agency subpoena to appear and 
testify or produce records.
    Penalty--minimum of $1,000 but not more than $10,000 per violation.

III. Final Order

    Violation--Failure to comply with Final Agency Order.
    Penalty--Automatic reinstatement of any penalty previously reduced 
or held in abeyance and restoration of the full amount assessed in the 
Notice of Claim less any payments previously made.

IV. Out-of-Service Order

    a. Violation--Operation of a commercial vehicle by a driver during 
the period the driver was placed out of service.
    Penalty--Up to $3,100 per violation.
    (For purposes of this violation, the term ``driver'' means an 
operator of a commercial motor vehicle, including an independent 
contractor who, while in the course of operating a commercial motor 
vehicle, is employed or used by another person.)
    b. Violation--Requiring or permitting a driver to operate a 
commercial vehicle during the period the driver was placed out of 
service.
    Penalty--Up to $21,000 per violation. (This violation applies to 
motor carriers including an independent contractor who is not a 
``driver,'' as defined under paragraph IV(a) of this appendix.)
    c. Violation--Operation of a commercial motor vehicle or intermodal 
equipment by a driver after the vehicle or intermodal equipment was 
placed out-of-service and before the required repairs are made.
    Penalty--$3,100 each time the vehicle or intermodal equipment is so 
operated. (This violation applies to drivers as defined in paragraph 
IV(a) of this appendix.)
    d. Violation--Requiring or permitting the operation of a commercial 
motor vehicle or intermodal equipment placed out-of-service before the 
required repairs are made.
    Penalty--Up to $21,000 each time the vehicle or intermodal 
equipment is so operated after notice of the defect is received. (This 
violation applies to intermodal equipment providers and motor carriers, 
including an independent owner operator who is not a ``driver,'' as 
defined in paragraph IV(a) of this appendix.)
    e. Violation--Failure to return written certification of correction 
as required by the out-of-service order.
    Penalty--Up to $850 per violation.
    f. Violation--Knowingly falsifies written certification of 
correction required by the out of service order.
    Penalty--Considered the same as the violations described in 
paragraphs IV(c) and IV(d) of this appendix, and subject to the same 
penalties.

    Note: Falsification of certification may also result in criminal 
prosecution under 18 U.S.C.1001.

    g. Violation--Operating in violation of an order issued under Sec.  
386.72(b) to cease all or part of the employer's commercial motor 
vehicle operations or to cease part of an intermodal equipment 
provider's operations, i.e. failure to cease operations as ordered.
    Penalty--Up to $25,000 per day the operation continues after the 
effective date and time of the order to cease.
    h. Violation--Operating in violation of an order issued under Sec.  
386.73.
    Penalty--Up to $16,000 per day the operation continues after the 
effective date and time of the out-of-service order.
    i. Violation--Conducting operations during a period of suspension 
under Sec.  386.83 or Sec.  386.84 for failure to pay penalties.
    Penalty--Up to $16,000 for each day that operations are conducted 
during the suspension or revocation period.
    j. Violation--Conducting operations during a period of suspension 
or

[[Page 18156]]

revocation under Sec. Sec.  385.911, 385.913, 385.1009 or 385.1011.
    Penalty--Up to $11,000 for each day that operations are conducted 
during the suspension or revocation period.

0
7. Revise Appendix B to part 386 to read as follows:

Appendix B to Part 386--Penalty Schedule: Violations and Monetary 
Penalties

    The Debt Collection Improvement Act of 1996 [Pub. L. 104-134, 
title III, chapter 10, sec. 31001, par. (s), 110 Stat. 1321-1373] 
amended the Federal Civil Penalties Inflation Adjustment Act of 1990 
to require agencies to adjust for inflation ``each civil monetary 
penalty provided by law within the jurisdiction of the Federal 
agency . . .'' and to publish that regulation in the Federal 
Register. Pursuant to that authority, the inflation-adjusted civil 
penalties listed in this appendix supersede the corresponding civil 
penalty amounts listed in title 49, United States Code.
    What are the types of violations and maximum monetary penalties?
    (a) Violations of the Federal Motor Carrier Safety Regulations 
(FMCSRs):
    (1) Recordkeeping. A person or entity that fails to prepare or 
maintain a record required by parts 40, 382, 385, and 390-99 of this 
subchapter, or prepares or maintains a required record that is 
incomplete, inaccurate, or false, is subject to a maximum civil penalty 
of $1,100 for each day the violation continues, up to $11,000.
    (2) Knowing falsification of records. A person or entity that 
knowingly falsifies, destroys, mutilates, or changes a report or record 
required by parts 382, 385, and 390-99 of this subchapter, knowingly 
makes or causes to be made a false or incomplete record about an 
operation or business fact or transaction, or knowingly makes, 
prepares, or preserves a record in violation of a regulation order of 
the Secretary is subject to a maximum civil penalty of $11,000 if such 
action misrepresents a fact that constitutes a violation other than a 
reporting or recordkeeping violation.
    (3) Non-recordkeeping violations. A person or entity that violates 
parts 382, 385, or 390-99 of this subchapter, except a recordkeeping 
requirement, is subject to a civil penalty not to exceed $16,000 for 
each violation.
    (4) Non-recordkeeping violations by drivers. A driver who violates 
parts 382, 385, and 390-99 of this subchapter, except a recordkeeping 
violation, is subject to a civil penalty not to exceed $3,750.
    (5) Violation of 49 CFR 392.5. A driver placed out of service for 
24 hours for violating the alcohol prohibitions of 49 CFR 392.5(a) or 
(b) who drives during that period is subject to a civil penalty not to 
exceed $4,125 for each violation.
    (6) Egregious violations of driving-time limits in 49 CFR part 395. 
A driver who exceeds, and a motor carrier that requires or permits a 
driver to exceed, by more than 3 hours the driving-time limit in 49 CFR 
395.3(a) or 395.5(a), as applicable, shall be deemed to have committed 
an egregious driving-time limit violation. In instances of an egregious 
driving-time violation, the Agency will consider the ``gravity of the 
violation,'' for purposes of 49 U.S.C. 521(b)(2)(D), sufficient to 
warrant imposition of penalties up to the maximum permitted by law.
    (b) Commercial driver's license (CDL) violations. Any person who 
violates 49 CFR part 383, subparts B, C, E, F, G, or H is subject to a 
civil penalty not to exceed $4,750; except:
    (1) A CDL-holder who is convicted of violating an out-of-service 
order shall be subject to a civil penalty of not less than $2,750 for a 
first conviction and not less than $5,500 for a second or subsequent 
conviction;
    (2) An employer of a CDL-holder who knowingly allows, requires, 
permits, or authorizes an employee to operate a CMV during any period 
in which the CDL-holder is subject to an out-of-service order, is 
subject to a civil penalty of not less than $4,750 or more than 
$27,500; and
    (3) An employer of a CDL-holder who knowingly allows, requires, 
permits, or authorizes that CDL-holder to operate a CMV in violation of 
a Federal, State, or local law or regulation pertaining to railroad-
highway grade crossings is subject to a civil penalty of not more than 
$11,000.
    (c) [Reserved]
    (d) Financial responsibility violations. A motor carrier that fails 
to maintain the levels of financial responsibility prescribed by part 
387 of this subchapter or any person (except an employee who acts 
without knowledge) who knowingly violates the rules of part 387 
subparts A and B is subject to a maximum penalty of $21,000. Each day 
of a continuing violation constitutes a separate offense.
    (e) Violations of the Hazardous Materials Regulations (HMRs) and 
Safety Permitting Regulations found in Subpart E of Part 385. This 
paragraph applies to violations by motor carriers, drivers, shippers 
and other person who transport hazardous materials on the highway in 
commercial motor vehicles or cause hazardous materials to be so 
transported.
    (1) All knowing violations of 49 U.S.C. chapter 51 or orders or 
regulations issued under the authority of that chapter applicable to 
the transportation or shipment of hazardous materials by commercial 
motor vehicle on the highways are subject to a civil penalty of not 
more than $75,000 for each violation. Each day of continuing violation 
constitutes a separate offense.
    (2) All knowing violations of 49 U.S.C. chapter 51 or orders or 
regulations issued under the authority of that chapter applicable to 
training related to the transportation or shipment of hazardous 
materials by commercial motor vehicle on highways are subject to a 
civil penalty of not less than $450 and not more than $75,000 for each 
violation.
    (3) All knowing violations of 49 U.S.C. chapter 51 or orders, 
regulations or exemptions under the authority of that chapter 
applicable to the manufacture, fabrication, marking, maintenance, 
reconditioning, repair, or testing of a packaging or container that is 
represented, marked, certified, or sold as being qualified for use in 
the transportation or shipment of hazardous materials by commercial 
motor vehicle on highways are subject to a civil penalty of not more 
than $75,000 for each violation.
    (4) Whenever regulations issued under the authority of 49 U.S.C. 
chapter 51 require compliance with the FMCSRs while transporting 
hazardous materials, any violations of the FMCSRs will be considered a 
violation of the HMRs and subject to a civil penalty of not more than 
$75,000.
    (5) If any violation subject to the civil penalties set out in 
paragraphs (e)(1) through (4) of this appendix results in death, 
serious illness, or severe injury to any person or in substantial 
destruction of property, the civil penalty may be increased to not more 
than $175,000 for each offense.
    (f) Operating after being declared unfit by assignment of a final 
``unsatisfactory'' safety rating. (1) A motor carrier operating a 
commercial motor vehicle in interstate commerce (except owners or 
operators of commercial motor vehicles designed or used to transport 
hazardous materials for which placarding of a motor vehicle is required 
under regulations prescribed under 49 U.S.C. chapter 51) is subject, 
after being placed out of service because of receiving a final 
``unsatisfactory'' safety rating, to a civil penalty of not more than 
$25,000 (49 CFR 385.13). Each day the transportation continues in 
violation of a final ``unsatisfactory'' safety rating constitutes a 
separate offense.
    (2) A motor carrier operating a commercial motor vehicle designed 
or

[[Page 18157]]

used to transport hazardous materials for which placarding of a motor 
vehicle is required under regulations prescribed under 49 U.S.C. 
chapter 51 is subject, after being placed out of service because of 
receiving a final ``unsatisfactory'' safety rating, to a civil penalty 
of not more than $75,000 for each offense. If the violation results in 
death, serious illness, or severe injury to any person or in 
substantial destruction of property, the civil penalty may be increased 
to not more than $175,000 for each offense. Each day the transportation 
continues in violation of a final ``unsatisfactory'' safety rating 
constitutes a separate offense.
    (g) Violations of the commercial regulations (CRs). Penalties for 
violations of the CRs are specified in 49 U.S.C. Chapter 149. These 
penalties relate to transportation subject to the Secretary's 
jurisdiction under 49 U.S.C. Chapter 135. Unless otherwise noted, a 
separate violation occurs for each day the violation continues.
    (1) A person who operates as a motor carrier for the transportation 
of property in violation of the registration requirements of 49 U.S.C. 
13901 is liable for a minimum penalty of $10,000 per violation.
    (2) A person who knowingly operates as a broker in violation of 
registration requirements of 49 U.S.C. 13904 or financial security 
requirements of 49 U.S.C. 13906 is liable for a penalty not to exceed 
$10,000 for each violation.
    (3) A person who operates as a motor carrier of passengers in 
violation of the registration requirements of 49 U.S.C. 13901 is liable 
for a minimum penalty of $25,000 per violation.
    (4) A person who operates as a foreign motor carrier or foreign 
motor private carrier of property in violation of the provisions of 49 
U.S.C. 13902(c) is liable for a minimum penalty of $10,000 per 
violation.
    (5) A person who operates as a foreign motor carrier or foreign 
motor private carrier without authority, before the implementation of 
the land transportation provisions of the North American Free Trade 
Agreement, outside the boundaries of a commercial zone along the United 
States-Mexico border is liable for a maximum penalty of $16,000 for an 
intentional violation and a maximum penalty of $37,500 for a pattern of 
intentional violations.
    (6) A person who operates as a motor carrier or broker for the 
transportation of hazardous wastes in violation of the registration 
provisions of 49 U.S.C. 13901 is liable for a minimum penalty of 
$20,000 and a maximum penalty of $40,000 per violation.
    (7) A motor carrier or freight forwarder of household goods, or 
their receiver or trustee, that does not comply with any regulation 
relating to the protection of individual shippers, is liable for a 
minimum penalty of $1,100 per violation.
    (8) A person--
    (i) Who falsifies, or authorizes an agent or other person to 
falsify, documents used in the transportation of household goods by 
motor carrier or freight forwarder to evidence the weight of a shipment 
or
    (ii) Who charges for services which are not performed or are not 
reasonably necessary in the safe and adequate movement of the shipment 
is liable for a minimum penalty of $3,200 for the first violation and 
$7,500 for each subsequent violation.
    (9) A person who knowingly accepts or receives from a carrier a 
rebate or offset against the rate specified in a tariff required under 
49 U.S.C. 13702 for the transportation of property delivered to the 
carrier commits a violation for which the penalty is equal to three 
times the amount accepted as a rebate or offset and three times the 
value of other consideration accepted or received as a rebate or offset 
for the six-year period before the action is begun.
    (10) A person who offers, gives, solicits, or receives 
transportation of property by a carrier at a different rate than the 
rate in effect under 49 U.S.C. 13702 is liable for a maximum penalty of 
$140,000 per violation. When acting in the scope of his/her employment, 
the acts or omissions of a person acting for or employed by a carrier 
or shipper are considered to be the acts and omissions of that carrier 
or shipper, as well as that person.
    (11) Any person who offers, gives, solicits, or receives a rebate 
or concession related to motor carrier transportation subject to 
jurisdiction under subchapter I of 49 U.S.C. Chapter 135, or who 
assists or permits another person to get that transportation at less 
than the rate in effect under 49 U.S.C. 13702, commits a violation for 
which the penalty is $320 for the first violation and $375 for each 
subsequent violation.
    (12) A freight forwarder, its officer, agent, or employee, that 
assists or willingly permits a person to get service under 49 U.S.C. 
13531 at less than the rate in effect under 49 U.S.C. 13702 commits a 
violation for which the penalty is up to $750 for the first violation 
and up to $3,200 for each subsequent violation.
    (13) A person who gets or attempts to get service from a freight 
forwarder under 49 U.S.C. 13531 at less than the rate in effect under 
49 U.S.C. 13702 commits a violation for which the penalty is up to $750 
for the first violation and up to $3,200 for each subsequent violation.
    (14) A person who knowingly authorizes, consents to, or permits a 
violation of 49 U.S.C. 14103 relating to loading and unloading motor 
vehicles or who knowingly violates subsection (a) of 49 U.S.C. 14103 is 
liable for a penalty of not more than $16,000 per violation.
    (15) [Reserved]
    (16) A person required to make a report to the Secretary, answer a 
question, or make, prepare, or preserve a record under Part B of 
Subtitle IV, Title 49, U.S.C., or an officer, agent, or employee of 
that person, is liable for a minimum penalty of $1,000 and for a 
maximum penalty of $7,500 per violation if it does not make the report, 
does not completely and truthfully answer the question within 30 days 
from the date the Secretary requires the answer, does not make or 
preserve the record in the form and manner prescribed, falsifies, 
destroys, or changes the report or record, files a false report or 
record, makes a false or incomplete entry in the record about a 
business related fact, or prepares or preserves a record in violation 
of a regulation or order of the Secretary.
    (17) A motor carrier, water carrier, freight forwarder, or broker, 
or their officer, receiver, trustee, lessee, employee, or other person 
authorized to receive information from them, who discloses information 
identified in 49 U.S.C. 14908 without the permission of the shipper or 
consignee is liable for a maximum penalty of $3,200.
    (18) A person who violates a provision of Part B, Subtitle IV, 
Title 49, U.S.C., or a regulation or order under Part B, or who 
violates a condition of registration related to transportation that is 
subject to jurisdiction under subchapter I or III or Chapter 135, or 
who violates a condition of registration of a foreign motor carrier or 
foreign motor private carrier under section 13902, is liable for a 
penalty of $750 for each violation if another penalty is not provided 
in 49 U.S.C. Chapter 149.
    (19) A violation of Part B, Subtitle IV, Title 49, U.S.C., 
committed by a director, officer, receiver, trustee, lessee, agent, or 
employee of a carrier that is a corporation is also a violation by the 
corporation to which the penalties of Chapter 149 apply. Acts and 
omissions of individuals acting in the scope of their employment with a 
carrier are considered to be the actions and omissions of the carrier 
as well as the individual.
    (20) In a proceeding begun under 49 U.S.C. 14902 or 14903, the rate 
that a

[[Page 18158]]

carrier publishes, files, or participates in under section 13702 is 
conclusive proof against the carrier, its officers, and agents that it 
is the legal rate for the transportation or service. Departing, or 
offering to depart, from that published or filed rate is a violation of 
49 U.S.C. 14902 and 14903.
    (21) A person--
    (i) Who knowingly and willfully fails, in violation of a contract, 
to deliver to, or unload at, the destination of a shipment of household 
goods in interstate commerce for which charges have been estimated by 
the motor carrier transporting such goods, and for which the shipper 
has tendered a payment in accordance with part 375, subpart G of this 
chapter, is liable for a civil penalty of not less than $11,000 for 
each violation. Each day of a continuing violation constitutes a 
separate offense.
    (ii) Who is a carrier or broker and is found to be subject to the 
civil penalties in paragraph (i) of this appendix may also have his or 
her carrier and/or broker registration suspended for not less than 12 
months and not more than 36 months under 49 U.S.C. chapter 139. Such 
suspension of a carrier or broker shall extend to and include any 
carrier or broker having the same ownership or operational control as 
the suspended carrier or broker.
    (22) A broker for transportation of household goods who makes an 
estimate of the cost of transporting any such goods before entering 
into an agreement with a motor carrier to provide transportation of 
household goods subject to FMCSA jurisdiction is liable to the United 
States for a civil penalty of not less than $10,900 for each violation.
    (23) A person who provides transportation of household goods 
subject to jurisdiction under 49 U.S.C. chapter 135, subchapter I, or 
provides broker services for such transportation, without being 
registered under 49 U.S.C. chapter 139 to provide such transportation 
or services as a motor carrier or broker, as the case may be, is liable 
to the United States for a civil penalty of not less than $27,250 for 
each violation.
    (h) Copying of records and access to equipment, lands, and 
buildings. A person subject to 49 U.S.C. chapter 51 or a motor carrier, 
broker, freight forwarder, or owner or operator of a commercial motor 
vehicle subject to part B of subtitle VI of title 49 U.S.C. who fails 
to allow promptly, upon demand in person or in writing, the Federal 
Motor Carrier Safety Administration, an employee designated by the 
Federal Motor Carrier Safety Administration, or an employee of a MCSAP 
grant recipient to inspect and copy any record or inspect and examine 
equipment, lands, buildings, and other property, in accordance with 49 
U.S.C. 504(c), 5121(c), and 14122(b), is subject to a civil penalty of 
not more than $1,100 for each offense. Each day of a continuing 
violation constitutes a separate offense, except that the total of all 
civil penalties against any violator for all offenses related to a 
single violation shall not exceed $11,000.
    (i) Evasion. A person, or an officer, employee, or agent of that 
person:
    (1) Who by any means tries to evade regulation of motor carriers 
under Title 49, United States Code chapter 5, chapter 51, subchapter 
III of chapter 311 (except sections 31138 and 31139) or section 31302, 
31303, 31304, 31305(b), 31310(g)(1)(A), or 31502, or a regulation 
issued under any of those provisions, shall be fined at least $2,000 
but not more than $5,000 for the first violation and at least $2,500 
but not more than $7,500 for a subsequent violation.
    (2) Who tries to evade regulation under Part B of Subtitle IV, 
Title 49, U.S.C., for carriers or brokers is liable for a penalty of at 
least $2,000 for the first violation of at least $5,000 for a 
subsequent violation.

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS

0
8. The authority citation for part 387 continues to read as follows:

    Authority:  49 U.S.C. 13101, 13301, 13906, 14701, 31138, 31139, 
and 31144; and 49 CFR 1.87.


0
9. Revise Sec.  387.17 to read as follows:


Sec.  387.17  Violation and penalty.

    Any person (except an employee who acts without knowledge) who 
knowingly violates the rules of this subpart shall be liable to the 
United States for a civil penalty as stated in part 386, appendix B, of 
this chapter, and if any such violation is a continuing one, each day 
of violation will constitute a separate offense. The amount of any such 
penalty shall be assessed by FMCSA's Administrator, by written notice. 
In determining the amount of such penalty, the Administrator, or his/
her authorized delegate shall take into account the nature, 
circumstances, extent, the gravity of the violation committed and, with 
respect to the person found to have committed such violation, the 
degree of culpability, any history of prior violations, ability to pay, 
and any effect on ability to continue to do business, and such other 
matters as justice may require.

0
10. Revise Sec.  387.41 to read as follows:


Sec.  387.41  Violation and penalty.

    (a) Any person (except an employee who acts without knowledge) who 
knowingly violates the rules of this subpart shall be liable to the 
United States for a civil penalty as stated in part 386, appendix B, of 
this chapter, and if any such violation is a continuing one, each day 
of violation will constitute a separate offense. The amount of any such 
penalty shall be assessed by the Administrator or his/her designee, by 
written notice.
    (b) In determining the amount of such penalty, the Administrator or 
his/her designee shall take into account the nature, circumstances, 
extent, the gravity of the violation committed and, with respect to the 
person found to have committed such violation, the degree of 
culpability, any history of prior violations, the ability to pay, and 
any effect on ability to continue to do business, and such other 
matters as justice may require.

    Issued under the authority of delegation in 49 CFR 1.87 on March 
26, 2015.
T.F. Scott Darling, III,
Chief Counsel.
[FR Doc. 2015-07701 Filed 4-2-15; 8:45 am]
 BILLING CODE 4910-EX-P

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