of one another or of provisions of the statute. For example, Section 610(a)(2) of the Act, 49 U.S.C. §1430(a)(2), prohibits a person from acting as pilot-in-command of an aircraft without an appropriate pilot certificate. 14 C.F.R. $61.3 also prohibits a person from acting as pilot-in-command of an aircraft unless he has a current pilot certificate. Further, in connection with almost all violations involving operation of an aircraft, the FAA will also append a charge that careless or wreckless operation was involved and a violation of 14 C.F.R. $91.9 occurred. In summary, one need only look at the recent $500,000 civil penalty action brought by the FAA against American Airlines in connection with the DC-10 problem in order to see that penalties proposed by the FAA under the existing statute go far beyond what an operator would accept as a cost of doing business. Consequently, the proposi tion that the current civil penalty amount is inadequate is not supported by the facts. On the contrary, the present provisions of the Act, especially as applied, are adequate. When one considers the FAA's claim that the current civil penalty amount is inadequate to deter future violations, it should be kept in mind that civil penalties are not the only enforcement tool presently available to the FAA. In addition to injunctions, aircraft seizures, cease and desist orders and criminal violations, the FAA has a powerful tool available to it in its authority to suspend, modify, or revoke certificates held by individuals and business entities. This authority, contained in Section 609 of the Act, 49 U.S.C. §1429, is frequently used by the FAA. When used against the commercial operator, the revocation or suspension of a ċertificate and the accompanying inability to continue its business would certainly not be accepted as merely a cost of doing business. In addition to all of the presently existing enforcement The tools set out in the Act, there are also tools available to the FAA which are not set out in the Act. Reputable businesses which engage in aviation exercise their best efforts to adhere to the regulations and operate in a safe manner. When charges are brought by the FAA against such a business, the size of the potential penalty may not disturb the business as much as mere existence of the charges. opprobrium which results from such charges being made has an adverse effect or the business' public image. In this connection, the FAA has recently shown itself to be increasingly prone to releasing details of proposed enforcement actions to the media even before the alleged violator has been given a chance to be heard. Moreover, the present Administrator of the FAA has stated publicly that he considers publicity to be one of the enforcement tools at his disposal. In addition to the opprobrium which attaches to charges being made by the FAA, there are other unwritten ramifications to the business involved. If the business is a corporation, the charges and any compromise which may be paid to the FAA would necessarily be subject to shareholder scrutiny. In the case of any business, the FAA's charges may affect the size of insurance premiums charged to the business and thus increase the cost of doing business. The lack of any necessity for the proposed increase in penalties from $1,000 to $25,000 for each violation is not the most compelling reason for disallowing the change. An increase of such tremendous size would create a threat to the economy and have a chilling effect on the individual's privilege to operate an aircraft. Although no imputation of malice on the part of the FAA is appropriate, it is evident that an agency charged with the responsibility of enforcing safety regulations and preventing future violations will exercise its discretion to assess civil penalties in amounts in the upper ranges of whatever authority Congress gives to the agency. The importance of aviation to the business economy is exemplified by the fact that the membership of NBAA includes approximately 2,200 individuals, corporations, and other business entities who operate approximately 4,000 aircraft in connection with their businesses. It is well known that business aviation plays a major role in this nation's economy. The increased burden which the FAA seeks to impose on aviation activities cannot help but impact adversely on the economy either through increased costs or by deterring the use of aviation as an aid in the conduct of business and promoting the use of less efficient substitutes. Although the FAA's analysis of the bill indicates that the primary target of the increased civil penalties is the commercial operator, the analysis correctly notes that the increased penalties would certainly have a wider application. The penalties proposed would apply to anyone who violates any of the provisions of the statute or any regulation or order issued thereunder. Consequently, all those of this class will be faced with either accepting a penalty of up to $25,000, for each violation, or engaging in a costly legal battle with the FAA. There is an additional point which bears mention since it serves as further evidence of the ill-conceived nature of the FAA's proposal to increase the civil penalty limit. In its present form, Section 901(a)(1) of the Act provides for a civil penalty not to exceed $1,000 for each violation of provisions of specified titles of the act and any rule, regulation, or order issued under those titles. At the same time, Section 901(a)(1) presently provides for a civil penalty not to exceed $10,000 for each violation which relates to the transportation of hazardous materials. As a result of the proposed bill, the maximum civil penalty for each violation relating to the transportation of hazardous material would remain at $10,000 while the maximum civil penalty for each other violation would be increased to $25,000. If hazardous material violations were previously considered to warrant ten times the penalty assessed for other violations, why are hazardous material violations now to be treated as less serious than other violations? The FAA provides no explanation Presumably, hazardous material for this discrepancy in its analysis of the bill and it is submitted that no reasonable explanation exists. violations are presently considered to be more serious than other violations since hazardous material violations tend to endanger large segments of the traveling public. If this rationale or another rationale for the disparate treatment was valid at one point, there is no reason why the same rationale is not still operative. 69-632 0-80--12 As can be seen from the foregoing discussion, the proposal to increase the civil penalties provided for in the Act is ill-conceived inasmuch as it would not be of public benefit, and would have an adverse effect on the economy. III. SECTION 1(a)--INCLUSION OF VIOLATIONS OF SECTION 1101 OF THE ACT Section 1(a) of the proposed bill would also amend Section 901(a)(1) of the Act, 49 U.S.C. §1471(a)(1), to provide for the imposition of ċivil penalties for violations of Section 1101 of the Act, 49 U.S.C. $1501, or any rule, regulation or order issued thereunder. Section 1101 relates to required notices concerning the construction or alteration, or concerning the proposed construction or alteration, of any structure which would constitute a hazard to air navigation. Presently, violations of Section 1101 are not a basis for imposing ċivil penalties. Such violations do, however, presently give rise to the potential for a criminal liability. Section 3 of the proposed bill which will be discussed below would remove the potential for criminal liability as a result of violations of Section 1101. The FAA's analysis of the bill provides no rationale for the proposed change in the penalty for a violation of Section 1101. Perhaps the FAA's rationale will be brought out in the course of these hearings. Be that as it may, the underlying purpose of Section 1101 is supported by the NBAA. It is only logical that safeguards be established to prevent structural hazards to the conduct of air navigation. The most common example of the application of this |