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GAO-03-288R 1 (2002-11-27)

handle is hein.gao/gaocrptapfi0001 and id is 1 raw text is: 



  S=GAO

       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548


         November 27, 2002

         The Honorable Elaine L. Chao
         The Secretary of Labor
         Subject: Mine Safety and Health Administration: Implementation of the

                 Inflation Adjustment Act

         Dear Madam Secretary:

         Earlier this year, we initiated a governmentwide review of the implementation of the
         Federal Civil Penalties Inflation Adjustment Act of 1990, as amended (Inflation
         Adjustment Act).' The Inflation Adjustment Act required each federal agency to issue
         a regulation adjusting its covered maximum and minimum civil monetary penalties
         for inflation by October 23, 1996, and requires them to make necessary adjustments at
         least once every 4 years thereafter. During our review, we determined that the Mine
         Safety and Health Administration (MSHA) within the Department of Labor published
         its first round of penalty adjustments in April 1998, but has not published a second
         round of adjustments for at least two eligible penalties. This report is intended to
         bring this matter to your attention and to recommend corrective action.

         MSHA Has Not Published a Second Round
         of Adjustments for Eligible Penalties

         Under the Inflation Adjustment Act, MSHA (like other covered federal agencies) was
         required to publish a regulation by October 23, 1996, adjusting its maximum civil
         penalties for inflation. The act requires those inflation adjustments to be based on
         changes in the Consumer Price Index (CPI) from June of the calendar year in which
         the penalties were last set or adjusted through June of the year prior to the
         adjustment. The statute also includes precise rules for rounding penalty increases.
         For example, the statute provides that penalty increases must 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. The statute limited the first adjustments of an agency's penalties to
         10 percent of the penalty amounts. It also requires agencies to examine their
         penalties at least once every 4 years and, if necessary, make additional inflation
         adjustments.



         1The Inflation Adjustment Act is codified at 28 U.S.C. 2461 note. The 1990 act was amended in 1996 by
         the Debt Collection Improvement Act, which added the requirement for agencies to adjust their civil
         penalties by regulation (Pub. L. 104-134, Sec. 31001, 110 Stat. 1321-373).


GAO-03-288R MSHA Penalty Adjustments

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