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Federal Civil Penalties Inflation Adjustment of 2015

American Government Special Collections Reference Desk

American Government

Federal Civil Penalties Inflation Adjustment of 2015

Daphne Y. Jefferson
Federal Motor Carrier Safety Administration
12 April 2017


[Federal Register Volume 82, Number 69 (Wednesday, April 12, 2017)]
[Rules and Regulations]
[Pages 17584-17593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07316]


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

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 386

[Docket Number: FMCSA-2016-0128]
RIN 2126-AB93


Federal Civil Penalties Inflation Adjustment of 2015

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

ACTION: Final rule.

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

SUMMARY: FMCSA amends the civil penalties listed in its regulations to 
ensure that the civil penalties assessed or enforced by the Agency 
reflect the statutorily mandated ranges as adjusted for inflation. 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (2015 Act), FMCSA is required to promulgate 
annual adjustments each year by January 15th. Pursuant to the 
Administrative Procedure Act, FMCSA finds that good cause exists for 
immediate implementation of this final rule because prior notice and 
comment are unnecessary, per the specific provisions of the 2015 Act.

DATES: This rule is effective April 24, 2017.

FOR FURTHER INFORMATION CONTACT: Ms. LaTonya Mimms, Enforcement 
Division, by email at civilpenalty@dot.gov or phone at 202-366-0991. 
Office hours are from 8:00 a.m. to 4:30 p.m. Monday through Friday, 
except Federal holidays. If you have questions on viewing or submitting 
material to the docket, contact Docket Services, telephone (202) 366-
9826.

SUPPLEMENTARY INFORMATION: 

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 2015 Act. The final rule 
implements the 2017 annual adjustments, which will update the 
adjustments made by interim final rule on June 27, 2016 (81 FR 41453). 
The specific inflation adjustment methodology is described later in 
this document.

B. Benefits and Costs

    The changes imposed by this final rule affect civil penalty 
amounts, which are considered by the Office of Management and Budget 
(OMB) Circular A-4, Regulatory Analysis,\1\ as transfer payments, not 
costs. Transfer payments are payments from one group to another that do 
not affect total resources available to society. By definition they are 
not considered in the monetization of societal costs and benefits of 
rulemakings.
---------------------------------------------------------------------------

    \1\ Office of Management and Budget (OMB). Circular A-4. 
Regulatory Analysis. September 17, 2003. Available at: https://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a004/a-4.pdf (accessed January 5, 2017).
---------------------------------------------------------------------------

    Congress stated in the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (1990 Act) that increasing penalties over time will 
``maintain the deterrent effect of civil monetary penalties and promote 
compliance with the law.'' \2\ Therefore, with this continued 
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 reliably quantified 
into safety benefits.
---------------------------------------------------------------------------

    \2\ 28 U.S.C. 2461 note (Pub. L. 101-410, Oct. 5, 1990, 104 
Stat. 890.).
---------------------------------------------------------------------------

II. Legal Basis for the Rulemaking

A. Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015

    This rulemaking is based primarily on the 2015 Act, Public Law 114-
74, title VII, sec. 701, 129 Stat. 599, 28 U.S.C. 2461 note (Nov. 2, 
2015). The 2015 Act amended the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (1990 Act) (28 U.S.C. 2461 note). The basic 
findings and purpose of the amended 1990 Act remain unchanged and 
include supporting the role civil penalties play in Federal law and 
regulations in deterring violations by allowing for regulatory 
adjustments to account for inflation.
    OMB must provide annual guidance by December of each year on 
implementing the 2015 Act. In response to this provision, OMB has 
provided guidance to agencies regarding the methodology to implement 
the 2017 annual adjustment required under the 2015 Act,\3\ as further 
discussed in the Background section, below.
---------------------------------------------------------------------------

    \3\ OMB Memorandum for the Heads of Executive Departments and 
Agencies; Implementation of the 2017 annual adjustment pursuant to 
the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf.
---------------------------------------------------------------------------

B. Administrative Procedure Act (APA)

    Generally, agencies may promulgate final rules only after issuing a 
notice of proposed rulemaking and providing an opportunity for public 
comment under

[[Page 17585]]

procedures required by the APA, as provided in 5 U.S.C. 553(b) and (c). 
The APA, in 5 U.S.C. 553(b)(3)(B), provides an exception from these 
requirements when notice and public comment procedures are 
``impracticable, unnecessary, or contrary to the public interest.'' 
FMCSA finds that prior notice and comment is unnecessary because 
section 4 of the 2015 Act specifically requires the annual adjustments 
to be accomplished through final rule without notice and comment.
    Also pursuant to the APA (5 U.S.C. 553 (d)(3)), the rule will be 
effective April 24, 2017. Delaying the effective date for 30 days after 
publication would be contrary to the direction provided in the 2015 
Act, which states that annual adjustments be made by January 15th of 
each year. As this final rule is already past that deadline, further 
delay would be contrary to the public interest.

III. Background

A. Regulatory History

    On June 27, 2016, FMCSA published an interim final rule using an 
initial ``catch up'' adjustment, as required by section 4 of the 2015 
Act (81 FR 41453). That interim final rule included an explanation of 
how FMCSA would apply adjusted civil penalty amounts to ongoing 
enforcement cases. As stated in that rule:

    FMCSA has concluded that, for those open enforcement matters in 
which a penalty was proposed before the date of the ``catch-up'' 
adjustment or an annual adjustment but in which a Final Agency 
Action has not been issued, recalculating the amount of the proposed 
penalty would not induce further compliance, and would thus be 
contrary to the goal of 49 U.S.C. 521(b)(2)(D). Moreover, the length 
of time between the date that a person is notified of the amount of 
the proposed penalty and the issuance of the Final Agency Action can 
vary, but is sometimes several years, depending on litigation 
schedules and other factors. Applying an inflation adjustment to 
proposed penalties in cases long awaiting administrative review 
could raise questions of equity. FMCSA therefore will not 
retroactively adjust the proposed penalty amounts in notices of 
claim issued prior to the effective date. Otherwise, the 2015 Act 
applies prospectively, and does not retroactively change previously 
assessed or enforced penalties an agency is actively collecting or 
has collected.\4\
---------------------------------------------------------------------------

    \4\ 81 FR 41453, 41454, June 27, 2016.
---------------------------------------------------------------------------

B. Method of Calculation

    OMB published a memorandum on December 16, 2016 (see footnote 3), 
providing guidance to the Agencies for implementation of the 2017 
annual adjustment under the 2015 Act (OMB implementation guidance). The 
OMB implementation guidance detailed a cost-of-living adjustment 
multiplier of 1.01636 for 2017. This adjustment applies to all civil 
monetary penalties covered by the Inflation Adjustment Act. OMB 
guidance requires the multiplier to be applied to the most recent 
penalty amount, i.e., the catch-up adjustment that the 2015 Act 
required agencies to issue not later than July 1, 2016. FMCSA, 
therefore, bases these adjustments on the changes contained in the 
interim final rule published June 27, 2016 (81 FR 41453).

IV. Discussion of Comments and Responses

    On June 27, 2016, FMCSA published an interim final rule using an 
initial ``catch up'' adjustment. While that interim final rule was 
issued without notice and comment, FMCSA did request comments on any 
errors or discrepancies that the public might find. No comments were 
received on the interim final rule.

V. International Impacts

    The FMCSRs, and any exceptions to the FMCSRs, apply to foreign 
entities operating within the United States (and, in some cases, United 
States territories). Motor carriers and drivers are subject to the laws 
and regulations of the countries in which they operate, unless an 
international agreement states otherwise. Drivers and carriers should 
be aware of the regulatory differences among nations.

VI. Section-by-Section Analysis

    Today's amendments to part 386 finalize the changes made to the 
introductory text of the Appendices A and B to Part 386 in the interim 
final rule published on June 27, 2016 (81 FR 41453). The amendments 
also revise the penalty amounts found within Appendices A and B. Below 
are two tables describing the changes to the civil penalty amounts in 
Appendices A and B. The first and second columns show the location of 
the change in the appendices and the legal authority. Column three 
shows the current penalty as adjusted by the interim final rule. The 
fourth column presents the ``Annually Adjusted Penalty,'' which is the 
current penalty adjusted using the OMB-prescribed multiplier of 
1.01636. 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.

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

    The introduction to Appendix A is republished, but is unchanged 
from the interim final rule. Table 1, below, describes the changes in 
the penalties in Appendix A made by today's final rule.

                            Table 1--Inflation Adjustments for Appendix A to Part 386
----------------------------------------------------------------------------------------------------------------
                                                                                                     Annually
                                                                                                     adjusted
                                                                                      Current         penalty
            Civil penalty location                       Legal authority              penalty        (current
                                                                                                     penalty x
                                                                                                     1.01636)
(1)                                             (2).............................             (3)             (4)
----------------------------------------------------------------------------------------------------------------
Appendix A II Subpoena........................  MAP-21 Public Law 112-141, 32110          $1,028          $1,045
                                                 126 Stat. 405, 782, (2012) (49
                                                 U.S.C. 525).
Appendix A II Subpoena........................  MAP-21 Public Law 112-141,                10,282          10,450
                                                 32110, 126 Stat. 405, 782
                                                 (2012) (49 U.S.C. 525).
Appendix A IV (a) Out-of-service order          Public Law 98-554, 213(b), 98              1,782           1,811
 (operation of CMV by driver).                   Stat. 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          Public Law 98-554, 213(a), 98             17,816          18,107
 (requiring or permitting operation of CMV by    Stat. 2829 (1984) (49 U.S.C.
 driver).                                        521(b)(7)), 55 FR 11224 (March
                                                 27, 1990).

[[Page 17586]]

 
Appendix A IV (c) Out-of-service order          Public Law 98-554, 213(a), 98              1,782           1,811
 (operation by driver of CMV or intermodal       Stat 2829 (1984) (49 U.S.C.
 equipment that was placed out of service).      521(b)(7)), FR 11224 (March 27,
                                                 1990).
Appendix A IV (d) Out-of-service order          Public Law 98-554, 213(a), 98             17,816          18,107
 (requiring or permitting operation of CMV or    Stat 2829 (1984) (49 U.S.C.
 intermodal equipment that was placed out of     521(b)(7)); 55 FR 11224 (March
 service).                                       27, 1990).
Appendix A IV (e) Out-of-service order          49 U.S.C. 521(b)(2)(B), 49 CFR               891             906
 (failure to return written certification of     396.9(d)(3).
 correction).
Appendix A IV (g) Out-of-service order          MAP-21, Public Law 112-141,               25,705          26,126
 (failure to cease operations as ordered).       32503, 126 Stat. 405, 803
                                                 (2012) (49 U.S.C. 521(b)(2)(F)).
Appendix A IV (h) Out-of-service order          Public Law 98-554, 213(a), 98             22,587          22,957
 (operating in violation of order).              Stat, 2829, 2841-2843 (1984)
                                                 (49 U.S.C. 521(b)(7)).
Appendix A IV (i) Out-of-service order          TEA-21, Public Law 105-178,               14,502          14,739
 (conducting operations during suspension or     4015(b), 112 Stat. 411-12
 revocation for failure to pay penalties).       (1998) (49 U.S.C. Sec.
                                                 521(b)(2)(A)), 521(b)(7)); 65
                                                 FR 56521, 56530 (September 19,
                                                 2000).
Appendix A IV (j) (conducting operations        Public Law 98-554, 213(a), 98             22,587          22,957
 during suspension or revocation).               Stat, 2829, 2841-2843 (1984)
                                                 (49 U.S.C. 521(b)(7)).
----------------------------------------------------------------------------------------------------------------

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

    The introduction to Appendix B is republished, but is unchanged 
from the interim final rule. Table 2, below, describes the changes in 
the penalties in Appendix B made by today's final rule.

                            Table 2--Inflation Adjustments for Appendix B to Part 386
----------------------------------------------------------------------------------------------------------------
                                                                                                     Annually
                                                                                                     adjusted
                                                                                      Current         penalty
            Civil penalty location                       Legal authority              penalty        (current
                                                                                                     penalty x
                                                                                                     1.01636)
(1)                                             (2).............................             (3)             (4)
----------------------------------------------------------------------------------------------------------------
Appendix B (a)(1) Recordkeeping--maximum        SAFETEA-LU, Public Law 109-59,            $1,194          $1,214
 penalty per day.                                4102(a), 119 Stat. 1144, 1715
                                                 (2005) (49 U.S.C.
                                                 521(b)(2)(B)(i)).
Appendix B (a)(1) Recordkeeping--maximum total  SAFETEA-LU, Public Law 109-59,            11,940          12,135
 penalty.                                        4102(a), 119 Stat. 1144, 1715
                                                 (2005) (49 U.S.C.
                                                 521(b)(2)(B)(i)).
Appendix B (a)(2) Knowing falsification of      SAFETEA-LU, Public Law 109-59,            11,940          12,135
 records.                                        4102(a), 119 Stat. 1144, 1715
                                                 (2005) (49 U.S.C.
                                                 521(b)(2)(B)(ii)).
Appendix B (a)(3) Non-recordkeeping violations  TEA-21, Public Law 105-178,               14,502          14,739
                                                 4015(b), 112 Stat. 107, 411-12
                                                 (1998) (49 U.S.C. 521(b)(2)(A)).
Appendix B (a)(4) Non-recordkeeping violations  TEA-21, Public Law 105-178,                3,626           3,685
 by drivers.                                     4015(b), 112 Stat. 107, 411-12
                                                 (1998) (49 U.S.C. 521(b)(2)(A)).
Appendix B (a)(5) Violation of 49 CFR 392.5     SAFETEA-LU, Public Law 109-59,             2,985           3,034
 (first offense).                                119 Stat. 1144, 1715; 4102(b),
                                                 119 Stat. 1715-16 (2005) (49
                                                 U.S.C. 31310(i)(2)(A)).
Appendix B (a)(5) Violation of 49 CFR 392.5     SAFETEA-LU, Public Law 109-59,             5,970           6,068
 (second or subsequent conviction).              119 Stat. 1144, 1715; 4102(b),
                                                 119 Stat. 1715-16 (2005) (49
                                                 U.S.C. 31310(i)(2)(A)).
Appendix B (b) Commercial driver's license      Public Law 99-570, 12012(b), 100           5,391           5,479
 (CDL) violations.                               Stat. 3207-184-85 (1986) (49
                                                 U.S.C. 521(b)(2)(C)).
Appendix B (b)(1): Special penalties            SAFETEA-LU, Public Law 109-59,             2,985           3,034
 pertaining to violation of out-of-service       4102(b), 119 Stat. 1144, 1715
 orders (first conviction).                      (2005) (49 U.S.C.
                                                 31310(i)(2)(A)).
Appendix B (b)(1) Special penalties pertaining  SAFETEA-LU, Public Law 109-59,             5,970           6,068
 to violation of out-of-service orders (second   119, 4102(b), Stat. 1144, 1715
 or subsequent conviction).                      (2005) (49 U.S.C.
                                                 31310(i)(2)(A)).
Appendix B (b)(2) Employer violations           Public Law 99-570, 12012(b), 100           5,391           5,479
 pertaining to knowingly allowing, authorizing   Stat. 3207-184-85 (1986) (49
 employee violations of out-of-service order     U.S.C. 521(b)(2)(C)).
 (minimum penalty).

[[Page 17587]]

 
Appendix B (b)(2) Employer violations           SAFETEA-LU, Public Law 109-59,            29,849          30,337
 pertaining to knowingly allowing, authorizing   4102(b), 119 Stat. 1144, 1715
 employee violations of out-of-service order     (2005) (49 U.S.C. 31310
 (maximum penalty).                              (i)(2)(C)).
Appendix B (b)(3) Special penalties pertaining  ICC Termination Act of 1995,              15,474          15,727
 to railroad-highway grade crossing violations.  Public Law 104-88, 403(a), 109
                                                 Stat. 956 (1995) (49 U.S.C.
                                                 31310(j)(2)(B)).
Appendix B (d) Financial responsibility         Public Law 103-272, 31139(f),             15,909          16,169
 violations.                                     108 Stat. 745, 1006-1008 (1994)
                                                 (49 U.S.C. 31139(g)(1)).
Appendix B (e)(1) Violations of Hazardous       MAP-21 Public Law 112-141,                77,114          78,376
 Materials Regulations (HMRs) and Safety         33010, 126 Stat. 405, 837-838
 Permitting Regulations (transportation or       (2012) (49 U.S.C. 5123(a)(1)).
 shipment of hazardous materials).
Appendix B (e)(2) Violations of Hazardous       MAP-21 Public Law 112-141,                   463             471
 Materials Regulations (HMRs) and Safety         33010, 126 Stat. 405, 837
 Permitting Regulations (training)--minimum      (2012) (49 U.S.C. 5123(a)(3)).
 penalty.
Appendix B (e)(2): Violations of Hazardous      MAP-21 Public Law 112-141, 33010          77,114          78,376
 Materials Regulations (HMRs) and Safety         126 Stat. 405, 837 (2012) (49
 Permitting Regulations (training)--maximum      U.S.C. 5123(a)(1)).
 penalty.
Appendix B (e)(3) Violations of Hazardous       MAP-21 Public Law 112-141,                77,114          78,376
 Materials Regulations (HMRs) and Safety         33010, 126 Stat. 405, 837,
 Permitting Regulations (packaging or            (2012) 49 U.S.C. 5123(a)(1)).
 container).
Appendix B (e)(4): Violations of Hazardous      MAP-21 Public Law 112-141,                77,114          78,376
 Materials Regulations (HMRs) and Safety         33010, 126 Stat. 405, 837
 Permitting Regulations (compliance with         (2012) (49 U.S.C. 5123(a)(1)).
 FMCSRs).
Appendix B (e)(5) Violations of Hazardous       MAP-21 Public Law 112-141,               179,933         182,877
 Materials Regulations (HMRs) and Safety         33010, 126 Stat. 405, 837
 Permitting Regulations (death, serious          (2012) (49 U.S.C. 5123(a)(2)).
 illness, severe injury to persons;
 destruction of property).
Appendix B (f)(1) Operating after being         MAP-21, Public Law 112-141,               25,705          26,126
 declared unfit by assignment of a final         32503, 126 Stat. 405, 803
 ``unsatisfactory'' safety rating (generally).   (2012) (49 U.S.C. 521(b)(2)(F)).
Appendix B (f)(2) Operating after being         MAP-21, Public Law 112-141,               77,114          78,376
 declared unfit by assignment of a final         33010, 126 Stat. 405, 837 (49
 ``unsatisfactory'' safety rating (hazardous     U.S.C. 5123(a)(1)).
 materials)--maximum penalty.
Appendix B (f)(2): Operating after being        MAP-21, Public Law 112-141,              179,933         182,877
 declared unfit by assignment of a final         33010, 126 Stat. 405, 837
 ``unsatisfactory'' safety rating (hazardous     (2012) (49 U.S.C. 5123(a)(2)).
 materials)--maximum penalty if death, serious
 illness, severe injury to persons;
 destruction of property.
Appendix B (g)(1) New Appendix B (g)(1):        MAP-21, Public Law 112-141,               10,282          10,450
 Violations of the commercial regulations (CR)   32108(a), 126 Stat. 405, 782
 (property carriers).                            (2012) (49 U.S.C. 14901(a)).
Appendix B (g)(2) Violations of the CRs         MAP-21 Public Law 112-141,                10,282          10,450
 (brokers).                                      32919(a), 126 Stat. 405, 827
                                                 (2012) (49 U.S.C. 14916(c)).
Appendix B (g)(3) Violations of the CRs         MAP-21, Public Law 112-141,               25,705          26,126
 (passenger carriers).                           32108(a), 126 Stat. 405, 782
                                                 (2012) (49 U.S.C. 14901(a)).
Appendix B (g)(4) Violations of the CRs         MAP-21, Public Law 112-141,               10,282          10,450
 (foreign motor carriers, foreign motor          32108(a), 126 Stat. 405, 782
 private carriers).                              (2012) (49 U.S.C. 14901(a)).
Appendix B (g)(5) Violations of the CRs         MCSIA of 1999, Public Law 106-            14,140          14,371
 (foreign motor carriers, foreign motor          59, 219(b), 113 Stat. 1748,
 private carriers before implementation of       1768 (1999) (49 U.S.C. 14901
 North American Free Trade Agreement land        note).
 transportation provisions)--maximum penalty
 for intentional violation.
Appendix B (g)(5) Violations of the CRs         MCSIA of 1999, Public Law 106-            35,351          35,929
 (foreign motor carriers, foreign motor          59, 219(c), 113 Stat. 1748,
 private carriers before implementation of       1768 (1999) (49 U.S.C. 14901
 North American Free Trade Agreement land        note).
 transportation provisions)--maximum penalty
 for a pattern of intentional violations.
Appendix B (g)(6) Violations of the CRs (motor  MAP-21, Public Law 112-141,               20,564          20,900
 carrier or broker for transportation of         32108, 126 Stat. 405, 782
 hazardous wastes)--minimum penalty.             (2012) (49 U.S.C. 14901(b)).
Appendix B (g)(6) Violations of the CRs (motor  MAP-21 Public Law 112-141,                41,128          41,801
 carrier or broker for transportation of         32108, 126 Stat. 405,782 (2012)
 hazardous wastes)--maximum penalty.             (49 U.S.C. 14901(b)).

[[Page 17588]]

 
Appendix B (g)(7): Violations of the CRs (HHG   ICC Termination Act of 1995,               1,547           1,572
 carrier or freight forwarder, or their          Public Law 104-88, 103, 100
 receiver or trustee).                           Stat. 803, 914 (1995) (49
                                                 U.S.C. 14901(d)(1)).
Appendix B (g)(8) Violation of the CRs (weight  ICC Termination Act of 1995,               3,095           3,146
 of HHG shipment, charging for services)--       Public Law 104-88, 103, 100
 minimum penalty for first violation.            Stat. 803, 914 (1995) (49
                                                 U.S.C. 14901(e)).
Appendix B (g)(8) Violation of the CRs (weight  ICC Termination Act of 1995,               7,737           7,864
 of HHG shipment, charging for services)         Public Law 104-88, 103, 100
 subsequent violation.                           Stat. 803, 914 (1995) (49
                                                 U.S.C. 14901(e)).
Appendix B (g)(10) Tariff violations..........  ICC Termination Act of 1995,             154,742         157,274
                                                 Public Law 104-88, 103, 100
                                                 Stat. 803, 868-869, 915 (1995)
                                                 (49 U.S.C. Sec.  13702, 14903).
Appendix B (g)(11) Additional tariff            ICC Termination Act of 1995,                 309             314
 violations (rebates or concessions)--first      Public Law 104-88, 103, 100
 violation.                                      Stat. 803, 915-916 (1995) (49
                                                 U.S.C. 14904(a)).
Appendix B (g)(11) Additional tariff            ICC Termination Act of 1995,                 387             393
 violations (rebates or concessions)--           Public Law 104-88, 103, 100
 subsequent violations.                          Stat. 803, 915-916 (1995) (49
                                                 U.S.C. 14904(a)).
Appendix B (g)(12): Tariff violations (freight  ICC Termination Act of 1995,                 774             787
 forwarders)--maximum penalty for first          Public Law 104-88, 103, 100
 violation.                                      Stat. 803, 916 (49 U.S.C.
                                                 14904(b)(1)).
Appendix B (g)(12): Tariff violations (freight  ICC Termination Act of 1995,               3,095           3,146
 forwarders)--maximum penalty for subsequent     Public Law 104-88, 103, 100
 violations.                                     Stat. 803, 916 (1995) (49
                                                 U.S.C. 14904(b)(1)).
Appendix B (g)(13): Service from freight        ICC Termination Act of 1995,                 774             787
 forwarder at less than rate in effect--         Public Law 104-88, 103, 100
 maximum penalty for first violation.            Stat. 803, 916 (1995) (49
                                                 U.S.C. 14904(b)(2)).
Appendix B (g)(13): Service from freight        ICC Termination Act of 1995,               3,095           3,146
 forwarder at less than rate in effect--         Public Law 104-88, 103, 100
 maximum penalty for subsequent violation(s).    Stat. 803, 916 (1995) (49
                                                 U.S.C. 14904(b)(2)).
Appendix B (g)(14): Violations related to       ICC Termination Act of 1995,              15,474          15,727
 loading and unloading motor vehicles.           Public Law 104-88, 103, 100
                                                 Stat. 803, 916 (1995) (49
                                                 U.S.C. 14905).
Appendix B (g)(16): Reporting and               MAP-21, Public Law 112-141,                1,028           1,045
 recordkeeping under 49 U.S.C. subtitle IV,      32108, 126 Stat. 405, 782
 part B (except 13901 and 13902(c)--minimum      (2012) (49 U.S.C. 14901).
 penalty.
Appendix B (g)(16): Reporting and               ICC Termination Act of 1995,               7,737           7,864
 recordkeeping under 49 U.S.C. subtitle IV,      Public Law 104-88, 103, 100
 part B--maximum penalty.                        Stat. 803, 916-917 (1995) (49
                                                 U.S.C. 14907).
Appendix B (g)(17): Unauthorized disclosure of  ICC Termination Act of 1995,               3,095           3,146
 information.                                    Public Law 104-88, 103, 100
                                                 Stat. 803, 917 (1995) (49
                                                 U.S.C. 14908).
Appendix B (g)(18): Violation of 49 U.S.C.      ICC Termination Act of 1995,                 774             787
 subtitle IV, part B, or condition of            Public Law 104-88, 103, 100
 registration.                                   Stat. 803, 917 (1995) (49
                                                 U.S.C. 14910).
Appendix B (g)(21)(i): Knowingly and willfully  ICC Termination Act of 1995,              15,474          15,727
 fails to deliver or unload HHG at destination.  Public Law 104-88, 103, 100
                                                 Stat. 803, 916 (1995) (49
                                                 U.S.C. 14905).
Appendix B (g)(22): HHG broker estimate before  SAFETEA-LU, Public Law 109-59,            11,940          12,135
 entering into an agreement with a motor         4209(2), 119 Stat. 1144, 1758,
 carrier.                                        (2005) (49 U.S.C. 14901(d)(2)).
Appendix B (g)(23): HHG transportation or       SAFETEA-LU, Public Law 109-59,            29,849          30,337
 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   SAFETEA-LU, Public Law 109-59,             1,194           1,214
 to equipment, lands, and buildings--maximum     4103(2), 119 Stat. 1144, 1716
 penalty per day.                                (2005) (49 U.S.C. 521(b)(2)(E)).
Appendix B (h): Copying of records and access   SAFETEA-LU, Public Law 109-59,            11,940          12,135
 to equipment, lands, and buildings--maximum     4103(2), 119 Stat. 1716 (2005)
 total penalty.                                  (49 U.S.C. 521(b)(2)(E)).
Appendix B (i)(1): Evasion of regulations       MAP-21 Public Law 112-141,                 2,056           2,090
 under 49 U.S.C. ch. 5, 51, subchapter III of    32505, 126 Stat. 405, 804
 311 (except 31138 and 31139), 31302-31304,      (2012) (49 U.S.C. 524).
 31305(b), 31310(g)(1)(A), 31502--minimum
 penalty for first violation.
Appendix B (i)(1): Evasion of regulations       MAP-21 Public Law 112-141,                 5,141           5,225
 under 49 U.S.C. ch. 5, 51, subchapter III of    32505, 126 Stat. 405, 804
 311 (except 31138 and 31139), 31302-31304,      (2012) (49 U.S.C. 524).
 31305(b), 31310(g)(1)(A), 31502--maximum
 penalty for first violation.

[[Page 17589]]

 
Appendix B (i)(1): Evasion of regulations       MAP-21 Public Law 112-141,                 2,570           2,612
 under 49 U.S.C. ch. 5, 51, subchapter III of    32505, 126 Stat. 405, 804
 311 (except 31138 and 31139), 31302-31304,      (2012) (49 U.S.C. 524). MAP-21
 31305(b), 31310(g)(1)(A), 31502--minimum        Public Law 112-141, 32505, 126
 penalty for subsequent violation(s).            Stat. 405, 804 (2012) (49
                                                 U.S.C. 524).
Appendix B (i)(1): Evasion of regulations       MAP-21 Public Law 112-141,                 7,711           7,837
 under 49 U.S.C. ch. 5, 51, subchapter III of    32505, 126 Stat. 405, 804
 311 (except 31138 and 31139), 31302-31304,      (2012) (49 U.S.C. 524).
 31305(b), 31310(g)(1)(A), 31502--maximum
 penalty for subsequent violation(s).
Appendix B (i)(2): Evasion of regulations       MAP-21 Public Law 112-141,                 2,056           2,090
 under 49 U.S.C. subtitle IV, part B--minimum    32505, 126 Stat. 405, 804
 penalty for first violation.                    (2012) (49 U.S.C. 14906).
Appendix B (i)(2): Evasion of regulations       MAP-21 Public Law 112-141,                 5,141           5,225
 under 49 U.S.C. subtitle IV, part B--minimum    32505, 126 Stat. 405, 804
 penalty for subsequent violation(s).            (2012) (49 U.S.C. 14906).
----------------------------------------------------------------------------------------------------------------

VII. Regulatory Analyses

A. Executive Order (E.O.) 12866 (Regulatory Planning and Review and DOT 
Regulatory Policies and Procedures as Supplemented by E.O. 13563)

    This final rule is not a significant regulatory action under 
section 3(f) of Executive Order (E.O.) 12866, Regulatory Planning and 
Review, as supplemented by E.O. 13563 (76 FR 3821, January 21, 2011), 
and is also not significant within the meaning of DOT regulatory 
policies and procedures (DOT Order 2100.5 dated May 22, 1980; 44 FR 
11034, February 26, 1979) and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that Order. The 
Office of Management and Budget has not reviewed it under that Order. 
This final rule would not have an annual effect on the economy of $100 
million or more because transfer payments, by definition, do not affect 
total resources available to society. Historically, the Agency has 
never assessed civil penalties that approach $100 million in any given 
year.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612), 
FMCSA is not required to complete a regulatory flexibility analysis, 
because, as discussed earlier in the legal basis section, this action 
is not subject to prior notice and comment under section 553(b) of the 
Administrative Procedure Act.

C. 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. LaTonya Mimms, 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.

D. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $156 million (which is the 
value equivalent of $100,000,000 in 1995, adjusted for inflation to 
2015 levels) or more in any 1 year. This final rule will not result in 
such an expenditure.

E. Paperwork Reduction Act

    This final rule calls for no new collection of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

F. 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 rule 
preempts any State law or regulation. Therefore, this rule does not 
have sufficient Federalism implications to warrant the preparation of a 
Federalism Impact Statement.

G. 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

[[Page 17590]]

minimize litigation, eliminate ambiguity, and reduce burden.

H. 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 to include an evaluation of 
the regulation's environmental health and safety effects on children if 
an agency has reason to believe the rule may disproportionately affect 
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.

I. 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.

J. 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).
    The E-Government Act of 2002, Public Law 107-347, 208, 116 Stat. 
2899, 2921 (Dec. 17, 2002), requires Federal agencies to conduct a 
privacy impact assessment for new or substantially changed technology 
that collects, maintains, or disseminates information in an 
identifiable form. No new or substantially changed technology would 
collect, maintain, or disseminate information as a result of this rule. 
Accordingly, FMCSA has not conducted a privacy impact assessment.

K. Intergovernmental Review (E.O. 12372)

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

L. 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.

M. 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.

N. 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.

O. Environmental Review (National Environmental Policy Act, Clean Air 
Act, Environmental Justice)

    FMCSA analyzed this rule in accordance with the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.) and 
FMCSA's NEPA Implementing Procedures and Policy for Considering 
Environmental Impacts, Order 5610.1 (FMCSA Order), March 1, 2004 (69 FR 
9680). FMCSA's Order states that ``[w]here FMCSA has no discretion to 
withhold or condition an action if the action is taken in accordance 
with specific statutory criteria and FMCSA lacks control and 
responsibility over the effects of an action, that action is not 
subject to this Order.'' Id. at chapter 1.D. Because Congress specifies 
the Agency's precise action here, thus leaving the Agency no discretion 
over such action, and since the Agency lacks control and responsibility 
over the effects of this action, this rulemaking falls under chapter 
1.D. Therefore, no further analysis is considered.
    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.
    Under E.O. 12898 (Actions to Address Environmental Justice in 
Minority Populations and Low-Income Populations), 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 has determined that this final rule would have no environmental 
justice effects, nor would its promulgation have any collective 
environmental impact.

List of Subjects in 49 CFR Part 386

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

    For the reasons stated in the preamble, FMCSA is amending title 49 
CFR part 386 to read as follows:

PART 386--RULES OF PRACTICE FOR FMCSA PROCEEDINGS

0
1. The authority citation for part 386 continues 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; Sec. 701 of Pub. L. 114-74, 
129 Stat. 584, 599; and 49 CFR 1.81 and 1.87.


0
2. Amend Appendix A to part 386 by revising the introductory text and 
sections II, IV. a. through e., and IV. g. through j. to read as 
follows:

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

    The Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 [Pub. L. 114-74, sec. 701, 129 Stat. 584, 599] amended the 
Federal Civil Penalties Inflation Adjustment

[[Page 17591]]

Act of 1990 to require agencies to adjust civil penalties for 
inflation. 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.
* * * * *

II. Subpoena

    Violation--Failure to respond to Agency subpoena to appear and 
testify or produce records.
    Penalty--minimum of $1,045 but not more than $10,450 per 
violation.
* * * * *

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 $1,811 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 $18,107 per violation.
    (This violation applies to motor carriers including an 
independent contractor who is not a ``driver,'' as defined under 
paragraph IV(a) above.)
    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--$1,811 each time the vehicle or intermodal equipment is 
so operated.
    (This violation applies to drivers as defined in IV(a) above.)
    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 $18,107 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 IV(a) above.)
    e. Violation--Failure to return written certification of 
correction as required by the out-of-service order.
    Penalty--Up to $906 per violation.
* * * * *
    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 $26,126 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 $22,957 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 $14,739 for each day that operations are 
conducted during the suspension or revocation period.
    j. Violation--Conducting operations during a period of 
suspension or revocation under Sec. Sec.  385.911, 385.913, 385.1009 
or 385.1011.
    Penalty--Up to $22,957 for each day that operations are 
conducted during the suspension or revocation period.

0
3. Amend Appendix B to part 386 by revising the introductory text and 
paragraphs (a)(1) through (5), (b), (c), (d), (e), (f), (g) 
introductory text, (g)(1) through (8), (g)(10) through (18), 
(g)(21)(i), (g)(22) and (23), (h), and (i) to read as follows:

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

    The Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 [Public Law 114-74, sec. 701, 129 Stat. 584, 599] amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990 to require 
agencies to adjust civil penalties for inflation. 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.
    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 $1,214 for each day the violation continues, up to 
$12,135.
    (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 
$12,135 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 $14,739 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 
$3,685.
    (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 $3,034 for a first conviction and not less 
than $6,068 for a second or subsequent conviction.
* * * * *
    (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 $5,479; 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 $3,034 for a first 
conviction and not less than $6,068 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 $5,479 or more 
than $30,337; 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 $15,727.
    (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 $16,169. 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 persons 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 $78,376 for each violation. Each day of a 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 the highways are subject to 
a civil penalty of not less than $471 and not more than $78,376 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

[[Page 17592]]

hazardous materials by commercial motor vehicle on the highways are 
subject to a civil penalty of not more than $78,376 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 $78,376.
    (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 $182,877 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 $26,126 (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 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 $78,376 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 
$182,877 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 
$10,450 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 
$10,450 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 $26,126 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 $10,450 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 
$14,371 for an intentional violation and a maximum penalty of 
$35,929 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 
$20,900 and a maximum penalty of $41,801 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 $1,572 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 $3,146 for the first 
violation and $7,864 for each subsequent violation.
* * * * *
    (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 $157,274 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 or 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 $314 for the first violation and $393 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 $787 for the first 
violation and up to $3,146 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 $787 for the first violation and up to $3,146 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 $15,727 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 $1,045 and for a 
maximum penalty of $7,864 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 $3,146.
    (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 of 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 $787 for each violation if another penalty 
is not provided in 49 U.S.C. chapter 149.
* * * * *
    (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 $15,727 for each violation. Each day of a continuing 
violation constitutes a separate offense.
* * * * *
    (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 $12,135 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

[[Page 17593]]

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 $30,337 
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 $1,214 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 $12,135.
    (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 
sections 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 $2,090 but not more than $5,225 for the first violation and at 
least $2,612 but not more than $7,837 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 $2,090 for the first violation or at least $5,225 for a 
subsequent violation.

    Issued under the authority of delegation in 49 CFR 1.87 on: 
April 5, 2017.
Daphne Y. Jefferson,
Deputy Administrator.
[FR Doc. 2017-07316 Filed 4-11-17; 8:45 am]
 BILLING CODE 4910-EX-P

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