Skip to Content


Inflation Adjustment of Civil Monetary Penalties

Document Details

Information about this document as published in the Federal Register.

Document Statistics
Document page views are updated periodically throughout the day and are cumulative counts for this document including its time on Public Inspection. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day.
Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble


Federal Maritime Commission.


Final rule.


The Commission is publishing its adjustments to inflation annually, pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act). The 2015 Act requires that agencies adjust and publish their civil penalties by January 15th each year.


This rule is effective on February 15, 2017, and is applicable beginning January 15, 2017.

Start Further Info


Tyler Wood, General Counsel, Federal Maritime Commission, 800 North Capitol Street NW., Room 1018, Washington, DC 20573, (202) 523-5740.

End Further Info End Preamble Start Supplemental Information


This rule adjusts the civil monetary penalties assessable by the Commission in accordance with the 2015 Act, which became effective on November 2, 2015. The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), Public Law 101-410, 104 Stat. 890 (codified as amended at 28 U.S.C. 2461 note), in order to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect.

The 2015 Act requires agencies to adjust CMPs under their jurisdiction by January 15, 2017, based on changes in the consumer price index (CPI-U) using data from October in the previous calendar year. On December 16, 2016, Office of Management and Budget published guidance stating that the CPI-U multiplier for October 2016 is 1.01636.[1] In order to complete the adjustment for January 2017, agencies must multiply the most recent civil penalty amounts in 46 CFR part 506, i.e., those that include the catch-up adjustment required by the 2015 Act by 1.01636.[2] For the Commission, this means applying the multiplier to the penalty amounts set forth in the Commission's June 30, 2016 interim final rule, which went into effect on August 1, 2016.[3]

Rulemaking Analyses and Notices

Notice and Effective Date

Adjustments under the FCPIAA, as amended by the 2015 Act, are not subject to the procedural rulemaking requirements of the Administrative Procedure Act (APA) (5 U.S.C. 553), including the requirements for prior notice, an opportunity for comment, and a delay between the issuance of a final rule and its effective date.[4] As noted above, the 2015 Act requires that the Commission adjust its CMPs no later than January 15 of each year.

Congressional Review Act

The rule is not a “major rule” as defined by the Congressional Review Act, codified at 5 U.S.C. 801 et seq. The rule will not result in: (1) An annual effect on the economy of $100,000,000 or more; (2) a major increase in costs or prices; or (3) significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based companies to compete with foreign-based companies. 5 U.S.C. 804(2).

Regulatory Flexibility Act

The Regulatory Flexibility Act (codified as amended at 5 U.S.C. 601-612) provides that whenever an agency promulgates a final rule after being required to publish a notice of proposed rulemaking under the APA (5 U.S.C. 553), the agency must prepare and make available a final regulatory flexibility analysis (FRFA) describing the impact of the rule on small entities. 5 U.S.C. 604. As indicated above, this final rule is not subject to the APA's notice and comment requirements, and the Commission is not required to prepare an FRFA in conjunction with this final rule.

Paperwork Reduction Act

The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) requires an agency to seek and receive approval from the Office of Management and Budget (OMB) before collecting information from the public. 44 U.S.C. 3507. The agency must submit collections of information in rules to OMB in conjunction with the publication of the notice of proposed rulemaking. 5 CFR 1320.11. This final rule does not contain any collections of information, as defined by 44 U.S.C. 3502(3) and 5 CFR 1320.3(c).

Regulation Identifier Number

The Commission assigns a regulation identifier number (RIN) to each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions (Unified Agenda). The Regulatory Information Service Center publishes the Unified Agenda in April and October of each year. You may use the RIN contained in the heading at the beginning of this document to find this action in the Unified Agenda, available at​public/​do/​eAgendaMain.

Start List of Subjects

List of Subjects in 46 CFR Part 506

  • Administrative practice and procedure
  • Penalties
End List of Subjects

For the reasons stated in the preamble, Part 506 of title 46 of the Code of Federal Regulations is amended as follows:

Start Part Start Printed Page 10720


End Part Start Amendment Part

1. The authority citation for part 506 continues to read as follows:

End Amendment Part Start Authority

Authority: 28 U.S.C. 2461.

End Authority Start Amendment Part

2. Amend § 506.4 by revising paragraph (d) to read as follows:

End Amendment Part
Cost of living adjustments of civil monetary penalties.
* * * * *

(d) Inflation adjustment. Maximum Civil Monetary Penalties within the jurisdiction of the Federal Maritime Commission are adjusted for inflation as follows:

United States code citationCivil monetary penalty descriptionMaximum penalty amount prior to January 15, 2017Maximum penalty as of January 15, 2017
46 U.S.C. 42304Adverse impact on U.S. carriers by foreign shipping practices1,978,6902,011,061
46 U.S.C. 41107(a)Knowing and Willful violation/Shipping Act of 1984, or Commission regulation or order56,46757,391
46 U.S.C. 41107(b)Violation of Shipping Act of 1984, Commission regulation or order, not knowing and willful11,29311,478
46 U.S.C. 41108(b)Operating in foreign commerce after tariff suspension112,934114,782
46 U.S.C. 42104Failure to provide required reports, etc./Merchant Marine Act of 19208,9089,054
46 U.S.C. 42106Adverse shipping conditions/Merchant Marine Act of 19201,781,5601,810,706
46 U.S.C. 42108Operating after tariff or service contract suspension/Merchant Marine Act of 192089,07890,535
46 U.S.C. 44102Failure to establish financial responsibility for non-performance of transportation22,500 75022,868 762
46 U.S.C. 44103Failure to establish financial responsibility for death or injury22,500 75022,868 762
31 U.S.C. 3802(a)(1)Program Fraud Civil Remedies Act/makes false claim10,78110,957
31 U.S.C. 3802(a)(2)Program Fraud Civil Remedies Act/giving false statement10,78110,957
Start Signature

By the Commission.

Rachel E. Dickon,

Assistant Secretary.

End Signature End Supplemental Information


1.  Office of Management and Budget, M-17-11, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, at 1 (Dec. 16, 2016) (M-17-11).

Back to Citation

2.  Id. at 2-3.

Back to Citation

4.  FCPIAA § 4(b)(2); M-17-11 at 2.

Back to Citation

[FR Doc. 2017-00271 Filed 2-14-17; 8:45 am]