How Simple Mistakes Become Costly
49 CFR 1022. What is it? What should I expect?
In case you didn’t know, 49 CFR 1022 refers to the Civil Monetary Penalty Inflation Adjustment. The Surface Transportation Board (board) has issued its final rule adjusting the annual inflation for 2018-2019 pursuant to the Federal Civil Penalties Adjustment Act Improvements Act of 2015.
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Anyways back to the Final Rule. In accordance with the 2015 Act, the annual adjustment is calculated by multiplying each current penalty by the cost-of-living adjustment factor of 1.02522, which reflects the October 2017-2018 Consumer Price Index for all Urban Consumers (CPI-U). Listed below are some highlights of the penalty adjustments:
Rail Carrier Civil Penalties
49 U.S.C 11901(a) Unless otherwise specified, maximum penalty for each knowing violation under this part and each day increased from $7,791 to $7,987 (an increase of $196).
Motor and Water Carrier Civil Penalties
49 U.S.C 14901(a) minimum penalty for each violation and for each day increased from $1,066 to $1,093 (an increase of $30)
Pipeline Carrier Civil Penalties
49 U.S.C 16101(a) minimum penalty for violation of this part, for each day increased from$7,791 to $7,987 (an increase of $196).
Keep in mind this Final Rule went into effect December 31, 2018 and will only effect penalties levied after the December 31, 2018. For a full review of the Final Rule click HERE.