Civil Penalties: an official-source record from 2007

Historical context and authority

101- 410), as amended by the Debt Collection Improvement Act of 1996 (Pub. Source

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

As explained above, this action is limited to the proposed adoption of a statutory directive, and has been determined to be not ``significant'' under the Department of Transportation's regulatory policies and procedures. Source

Unfunded Mandates Reform Act of 1995 The Unfunded Mandates Reform Act of 1995, Pub. Source

Scope of the federal rule

Federal Register, Volume 72 Issue 186 (Wednesday, September 26, 2007) [Federal Register Volume 72, Number 186 (Wednesday, September 26, 2007)] [Proposed Rules] [Pages 54635-54638] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: E7-19019] ----------------------------------------------------------------------- DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration 49 CFR Part 578 [Docket No. Source

Proposed effective date: 30 days after date of publication of the final rule in the Federal Register. Source

Instructions: For detailed instructions on submitting comments and additional information on the rulemaking process, see the Public Participation heading of the Supplementary Information section of this document. Source

Effective Date The amendments would be effective 30 days after publication of the final rule in the Federal Register. Source

If Docket Management receives a comment too late for us to consider in developing the proposed rule, we will consider that comment as an informal suggestion for future rulemaking action. Source

I certify that a final rule based on this proposal will not have a significant economic impact on a substantial number of small entities. Source

The proposed amendments almost entirely potentially affect manufacturers of motor vehicles and motor vehicle equipment. Source

The Small Business Administration's regulations define a small business in part as a business entity ``which operates primarily within the United States.'' 13 CFR 121.105(a). Source

Small organizations and governmental jurisdictions would not be significantly affected as the price of motor vehicles and equipment ought not change as the result of this proposed rule. Source

This proposed rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132. Source

The reason is that this proposed rule would apply to motor vehicle manufacturers, and not to the States or local governments. Source

Because this proposed rule will not have a $100 million effect, no Unfunded Mandates assessment will be prepared. Source

National Environmental Policy Act We have also analyzed this proposed rulemaking action under the National Environmental Policy Act and determined that it would have no significant impact on the human environment. Source

Executive Order 12778 (Civil Justice Reform) This proposed rule does not have a retroactive or preemptive effect. Source

Treasury offset procedures

Notice and collection administration

You may review DOT's complete Privacy Act Statement in the Federal Register published on April 11, 2000 (65 FR 19477-78). Source

For further information, submitters who plan to request confidential treatment for any portion of their submissions are advised to review 49 CFR Part 512, particularly those sections relating to document submission requirements. Source

We will consider all comments that Docket Management receives before the close of business on the comment closing date indicated at the beginning of this notice under DATES. Source

Rulemaking Analyses and Notices Executive Order 12866 and DOT Regulatory Policies and Procedures We have considered the impact of this rulemaking action under Executive Order 12866 and the Department of Transportation's regulatory policies and procedures. Source

Regulatory Flexibility Act We have also considered the impacts of this notice under the Regulatory Flexibility Act. Source

That section does not require that a petition for reconsideration be filed prior to seeking judicial review. Source

Interest, penalties, and charges

----------------------------------------------------------------------- SUMMARY: This document proposes to increase the maximum aggregate civil penalties for violations of the odometer tampering and disclosure requirements and certain administrative provisions of the Energy Policy and Conservation Act. Source

This action would be taken pursuant to the Federal Civil Monetary Penalty Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996, which requires us to review and, as warranted, adjust penalties based on inflation at least every four years. Source

Those civil penalties that we are proposing to adjust address penalty amounts pertaining to single violations involving (1) odometer tampering and disclosure and (2) administrative provisions of the automobile fuel economy law. Source

Chapter 329 (49 CFR 578.6(h)(1)) The maximum civil penalty for a single violation of certain administrative provisions of EPCA is $11,000, as specified in 49 CFR 578.6(h)(1). Source

As noted throughout this preamble, this proposed rule would increase only the maximum penalty amounts that the agency could obtain for a single violation of the odometer tampering and disclosure provisions and administrative provisions of EPCA. Source

abstract: This document proposes to increase the maximum aggregate civil penalties for violations of the odometer tampering and disclosure requirements and certain administrative provisions of the Energy Policy and Conservation Act. Source

NHTSA-2007-28445; Notice 1] RIN 2127-AK07 Civil Penalties AGENCY: National Highway Traffic Safety Administration (NHTSA), DOT. Source

Under the Adjustment Act, following an initial adjustment that was capped by the Act, these agencies must make further adjustments, as warranted, to the amounts of penalties in statutes they administer at least once every four years. Source

NHTSA's initial adjustment of civil penalties under the Adjustment Act was published on February 4, 1997. Source

At that time, we codified the penalties under statutes administered by NHTSA, as adjusted, in 49 CFR Part 578, Civil Penalties. Source

In 2000, the Transportation Recall Enhancement, Accountability, and Documentation (``TREAD'') Act increased the maximum penalties under the National Traffic and Motor Vehicle Safety Act as amended (sometimes referred to as the ``Motor Vehicle Safety Act''). Source

On August 7, 2001, we also adjusted certain penalty amounts pertaining to odometer tampering and disclosure requirements and vehicle theft prevention. Source

On September 28, 2004, we adjusted the maximum penalty amounts for a related series of violations involving the agency's provisions governing vehicle safety, bumper standards, and consumer information. Source

Most recently, on May 16, 2006, the agency adjusted its penalty amounts for violations of the Motor Vehicle Safety Act, as amended, and codified amendments made to the Motor Vehicle Safety Act by the Safe, Accountable, Flexible, Efficient Transportation Equity Act--A Legacy for Users (SAFETEA-LU). Source

We have reviewed the civil penalty amounts in 49 CFR Part 578 and propose in this notice to adjust certain penalties under the Adjustment Act. Source

Method of Calculation--Proposed Adjustments Under the Adjustment Act, we first calculate the inflation adjustment for each applicable civil penalty by arithmetically increasing the maximum civil penalty amount per violation by a cost-of- living adjustment. Source

Section 5(b) of the Adjustment Act defines the ``cost-of-living'' adjustment as: The percentage (if any) for each civil monetary penalty by which -- (1) The Consumer Price Index for the month of June of the calendar year preceding the adjustment exceeds. Source

Accordingly, the factor that we are using in calculating the proposed increases is 1.27 (607.8/480.2) for both penalty amounts. Source

Under that formula: Any increase shall be rounded to the nearest (1) Multiple of $10 in the case of penalties less than or equal to $100; (2) Multiple of $100 in the case of penalties greater than $100 but less than or equal to $1,000; (3) Multiple of $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000; (4) Multiple of $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000; (5) Multiple of $10,000 in the case of penalties greater than $100,000 but less than or equal to $200,000; and (6) Multiple of $25,000 in the case of penalties greater than $200,000. Source

Chapter 327 (49 CFR 578.6(f)(1)) The maximum civil penalty for a single violation of the odometer tampering and disclosure statutory provisions or a regulation prescribed thereunder is $2,200, as specified in 49 CFR 578.6(f)(1). Source

Under the rounding formula, any increase in a penalty's amount shall be rounded to the nearest multiple of $1,000 in the case of penalties greater than $1,000 but less than or equal to $10,000. Source

Accordingly, we propose that Section 578.6(f)(1) be amended to increase the maximum civil penalty from $2,200 to $3,200 for a single violation. Source

Under the rounding formula, any increase in a penalty's amount shall be rounded to the nearest multiple of $5,000 in the case of penalties greater than $10,000 but less than or equal to $100,000. Source

The adjusted penalties would apply to violations occurring on and after the effective date. Source

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

The proposed rule does not set the amount of penalties for any particular violation or series of violations. Source

Under the odometer laws, the applicable penalty provision requires the agency to take into account the ability to pay and any effect on the ability to continue doing business when determining the appropriate civil penalty in an individual case. Source

See 62 FR 37115 (July 10, 1997) (NHTSA's civil penalty policy under the Small Business Regulatory Enforcement Fairness Act (SBREFA)). Source

The penalty adjustments that are being proposed would not affect our civil penalty policy under SBREFA. Source

Page 54638]] Since this proposed regulation would not establish penalty amounts, this proposal will not have a significant economic impact on small businesses. Source

List of Subjects in 49 CFR Part 578 Imports, Motor vehicle safety, Motor vehicles, Rubber and Rubber Products, Tires, Penalties. Source

Government obligations and implementation

Follow the instructions for submitting comments on the Department of Transportation Docket Management System electronic docket site. Source

No electronic submissions will be accepted between September 28, 2007, and October 1, 2007. Source

Alternatively, you can file comments using the following methods: Mail: Docket Management Facility: U.S. Source

Department of Transportation, 1200 New Jersey Avenue, SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-0001 Hand Delivery or Courier: West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue, SE., between 9 a.m. Source

Privacy Act: Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). Source

The DOT docket may be offline at times between September 28 through September 30 to migrate to the Federal Docket Management System (FDMS). Source

FOR FURTHER INFORMATION CONTACT: Michael Kido, Office of Chief Counsel, NHTSA, telephone (202) 366-5263, facsimile (202) 366-3820, 1200 New Jersey Avenue, SE., Washington, DC 20590. Source

Scroll down to ``Most Requested Statistics'' and select the ``All Urban Consumers (Current Series)'' option, select the ``U.S. Source

ALL ITEMS 1967=100-- CUUR0000AA0'' box, and click on the ``Retrieve Data'' button. Source

Applying the appropriate inflation factor (1.27) raises the $2,200 figure to $2,794, an increase of $594. Source

Applying the appropriate inflation factor (1.27) raises the $11,000 figure to $13,970, an increase of $2,970. Source

To ensure that your comments are correctly filed in the Docket, please include the docket number of this document in your comments. Source

We established this limit to encourage you to write your primary comments in a concise fashion. Source

However, you may attach necessary additional documents to your comments. Source

You may also submit your comments electronically to the docket following the steps outlined under ADDRESSES. Source

If you wish Docket Management to notify you upon its receipt of your comments, enclose a self-addressed, stamped postcard in the envelope containing your comments. Source

Upon receiving your comments, Docket Management will return the postcard by mail. Source

If you wish to submit any information under a claim of confidentiality, you should submit the following to the Chief Counsel (NCC-110) at the address given at the beginning of this document under the heading FOR FURTHER INFORMATION CONTACT: (1) A complete copy of the submission; (2) a redacted copy of the submission with the confidential information removed; and (3) either a second complete copy or those portions of the submission containing the material for which confidential treatment is claimed and any additional information that you deem important to the Chief Counsel's consideration of your confidentiality claim. Source

A request for confidential treatment that complies with 49 CFR Part 512 must accompany the complete submission provided to the Chief Counsel. Source

Failure to adhere to the requirements of Part 512 may result in the release of confidential information to the public docket. Source

In addition, you should submit two copies from which you have deleted the claimed confidential business information, to Docket Management at the address given at the beginning of this document under ADDRESSES. Source

In accordance with our policies, to the extent possible, we will also consider comments that Docket Management receives after the specified comment closing date. Source

You may read the comments received by Docket Management at the address and times given near the beginning of this document under ADDRESSES. Source

Example: if the docket number were ``NHTSA-2006-1234,'' you would type ``1234.'' (4) After typing the docket number, click on ``search.'' (5) The next page contains docket summary information for the docket you selected. Source

Please note that even after the comment closing date, we will continue to file relevant information in the Docket as it becomes available. Source

Accordingly, we recommend that you periodically search the Docket for new material. Source

SBA's size standards were previously organized according to Standard Industrial Classification (SIC) Codes. Source

SIC Code 336211 ``Motor Vehicle Body Manufacturing'' applied a small business size standard of 1,000 employees or fewer. Source

SBA now uses size standards based on the North American Industry Classification System (NAICS), Subsector 336--Transportation Equipment Manufacturing, which provides a small business size standard of 1,000 employees or fewer for automobile manufacturing businesses. Source

Other motor vehicle-related industries have lower size requirements that range between 500 and 750 employees. Source

Chapter 329 and therefore may be affected by the adjustments that this NPRM proposes to make. Source

Thus, the requirements of Section 6 of the Executive Order do not apply. Source

Definitions and regulatory provisions