Penalty Inflation Adjustment

A matrix in the ERP supplies the gravity based penalties for each combination of nature, circumstances, and extent. However, the penalties applicable to violations that occurred in 2006,2007, and 2008 must be increased by a factor of 1.3, and the penalties applicable to 2009 violations that occurred after January 12,2009 must be increased by a factor of 1.5. These increased penalties are required by the Civil Penalties Inflation Adjustment Act of 1990, 28 U.S.C. 2461, as amended by the Debt Collection Improvement Act of 1996, 31 U.S.C. 3701, which required each federal agency to adjust its maximum penalties to maintain a deterrent effect in the face of inflation. As required by that legislation, EPA increased the daily maximum penalties to 27,500 effective after January 30,1997 and again to 32,500 effective March 15,2004, and again to 37,500 effective January 12,2009. The Debt Collection Improvement Act requires penalty adjustments every four years and so another increase should be forthcoming in 2013. 

Fed. Reg. 69360 (Dec. 31, 1996) Civil Monetary Penalty Inflation Adjustment Rule 61 FR 69360 Penalty Adjust 12-31-96... 

Fed. Reg. 7121 (Feb. 13, 2004) Civil Monetary Penalty Inflation Adjustment Rule 69 FR 7121 Penalty Adjust 2-13-04... 

Fed. Reg. 75340 (Dec. 11, 2008) Civil Monetary Penalty Inflation Adjustment Rule 73 FR 75340 Penalty Adjust 12-11-08... 

Fed. Reg. 626 (Jan. 7, 2009) Civil Monetary Penalty Inflation Adjustment Rule 74 FR 626 Penalty Adjust 1 -7-09... 

The following tables of fines and penalties list the violations of the Federal Motor Carrier Safety Regulations (FMCSRs), which are revised periodically to reflect adjustments for inflation in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996. The present flne and penalty amounts can be found in Appenix A and B to 386. 

I The Debt Collection Improvement Act of 1996 [Public Law 104-134, title III, chapter 10, Sec. 31001, par. (s). 110 Stat. 1321-373] 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 paragraphs (a) through (h) of this appendix supersede the corresponding civil penalty amounts listed in title 49, United States Code. 

The EPA can seek multiple violations for the same event. For example, it can penalize both the LEA and a contractor for the same violation. However, if there are multiple violations at one school, penalties against the LEA are capped at 5,000 per day ° plus an inflation adjustment. 

PAWA also currently possesses a provision to adjust the monetary penalties every 4 years for inflation and expands the current scope of employer and enhances the current OSHA antiretaliation provisions. As of this writing, PAWA currently has fifty-one cosponsors in the House and Senate and is currently in the Subcommittee on Health, Education, Labor, and Pensions. 

Renalties are current for violations after January 12, 2009, the Debt Collection Improvement Act of 1996 requires ERA to review the civil monetary penalties under the statutes it administers at least once every four years and to adjust such penalties as necessary for inflation. 

Unless the mine is determined by the Assessment Office to have an excessive history of violations (more than 2.1 violations per inspection day), non-S S citations are eUgible for nominal penalties (originally 50, but adjusted for inflation over time). 

Special Assessments By regulation, MSHA may elect to waive the normal computer formula for assessing penalties if conditions surroimding the violation warrant special assessment. MSHA regulations state in essence that some types of violations may be of such a nature or seriousness that the computer formula wiU not be appropriate. In other words, the MSHA Assessment Office must make a specific determination with respect to the penalty. Invariably, special assessments are much higher than regular assessments. The maximum penalty of 50,000 per violation is periodically adjusted upward for inflation. 

---