40.17.400 Effect of Economic Benefit of Noncompliance

This Policy encourages the recapture of any significant economic benefit of non-compliance that accrues to a violator from non-compliance with the SHWMC. Enforcement personnel shall evaluate the economic benefit of noncompliance when penalties are calculated. The fundamental premise of this Policy is that economic incentives for noncompliance are to be eliminated. If, after the penalty is paid, violators still profit by violating the law, there is little incentive to comply. Therefore, it is incumbent on all enforcement personnel to calculate economic benefit. An "economic benefit" component should be calculated and added to the gravity-based penalty component when a violation results in "significant" economic benefit to the violator. Economic benefit can result from a violator delaying or avoiding compliance costs, or when the violator achieves an illegal competitive advantage through its non- compliance.

The total economic benefit amount (all violations added together) should be compared to the chart to determine whether an economic benefit component should be included in the proposed penalty. Any decision not to seek an economic benefit penalty and the rationale for such a decision should be documented on the Penalty Computation Worksheet.