[Federal Register Volume 62, Number 76 (Monday, April 21, 1997)]
[Rules and Regulations]
[Pages 19229-19233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10231]
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DEPARTMENT OF TRANSPORTATION
Coast Guard
46 CFR Part 2
[CGD 96-067]
RIN 2115-AF40
Vessel Inspection User Fees
AGENCY: Coast Guard, DOT.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule reduces annual vessel inspection user fees for small
passenger vessels and exempts publicly owned ferries from payment of
vessel inspection user fees. These changes are required by the Coast
Guard Authorization Act of 1996. The rule also revises the existing
discretionary exemption criteria to allow additional vessels to qualify
for exemption from payment of the annual vessel inspection fee. The
Coast Guard requests comments on this interim rule.
DATES: This rule is effective April 21, 1997. Comments must be received
on or before August 19, 1997.
ADDRESSES: Comments should be mailed to the Executive Secretary, Marine
Safety Council (G-LRA/3406) [CGD 96-067], U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may
be delivered to room 3406 at the same address between 9:30 a.m. and 2
p.m., Monday through Friday, except Federal holidays.
The Executive Secretary maintains the public docket for this
rulemaking. Comments will becomes part of this docket and will be
available for inspection or copying at room 3406, U.S. Coast Guard
Headquarters between 9:30 a.m. and 2 p.m., Monday through Friday,
except Federal holidays. The telephone number is (202) 267-1477. For
inquiries and user fee payment information call, toll free, 1-800-941-
3337.
FOR FURTHER INFORMATION CONTACT: Denise Mursch, Budget and Resources
Division, Office of Planning and Resources, (G-MRP-2) Marine Safety and
Environmental Protection (202) 267-0785.
SUPPLEMENTARY INFORMATION:
Request for Comments
The Coast Guard encourages interested persons to participate in
this rulemaking by submitting written data, views, or arguments.
Persons submitting comments should include their names and addresses,
identify this rulemaking [CGD 96-067] and the specific section of
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this rule to which each comment applies, and give the reason for each
comment. Please submit two copies of all comments and attachments in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. Persons wanting acknowledgement of
receipt of comments should enclose stamped, self-addressed postcards or
envelopes.
The Coast Guard will consider all comments received during the
comment period. It may change this rule in view of the comments.
The Coast Guard plans no public hearing. Persons may request a
public hearing by writing to the Marine Safety Council at the address
under ADDRESSES. The request should include the reasons why a public
meeting would be beneficial. If it determines that the opportunity for
oral presentations will aid this rulemaking, the Coast Guard will hold
a public hearing at a time and placed announced by a later notice in
the Federal Register.
Regulatory Information
This rule is being published as an interim rule and is being made
effective on the date of publication. The reductions in annual vessel
inspection fees for small passenger vessels and the exemption of
publicly owned ferries from payment of vessel inspection fees are
required by the Coast Guard Authorization Act of 1996. The changes to
the discretionary exemption criteria will allow more vessels to qualify
for exemption from payment of annual vessel inspection fees and will
reduce the financial burden on qualified vessels. For these reasons,
the Coast Guard finds good cause, under 5 U.S.C. 553(b) (3) (B) and (d)
(3), why notice, and public procedure on the notice, before the
effective date of this rule are unnecessary and this rule should be
made effective in less than 30 days after publication.
Regulatory Background
The Omnibus Budget Reconciliation Act of 1990 amended 46 U.S.C.
2110 and removed long-standing prohibitions against imposing certain
fees. As amended, 46 U.S.C. 2110 required the establishment and
collection of user fees for Coast Guard services provided under
Subtitle II of Title 46, United States Code. The Coast Guard
subsequently developed user fees for several Subtitle II services,
including marine personnel licensing and documentation services, vessel
registration and documentation services, and inspection and examination
services provided to U.S. and foreign vessels.
The final rule establishing direct user fees for inspection or
examination of U.S. and foreign commercial vessels was published in the
Federal Register (60 FR 13550) on March 13, 1995. That final rule
established fees in accordance with the criteria provided under 31
U.S.C. 9701, known as the General User Fee Statute, based on the costs
of providing Coast Guard vessel inspection services. These costs
included Coast Guard personnel costs associated with the actual time
spent inspecting vessels, as well as training, travel, overhead, and
other administrative and collection costs.
The published fees for small passenger vessels ranged from $450 for
DUKW (wheeled amphibious) vessels to $2,585 for small passenger vessels
over 130 feet. The fees for passenger barges less than 100 gross tons
(defined as small passenger vessels under 46 CFR 2.10-25) ranged from
$825 for barges carrying fewer than 150 passengers to $1,110 for barges
carrying 150 or more passengers.
Discussion of Rules
Fee Caps
The Coast Guard Authorization Act of 1996 (the Act) limits the
amounts of the fees that may be charged for vessel inspection services
provided to small passenger vessels as defined in 46 CFR 2.10-25. The
Act limits the annual fee for small passenger vessels less than 65 feet
in length to not more than $300 and for small passenger vessels 65 feet
or over in length to not more than $600. Current costs of inspecting
small passenger vessels of all lengths exceed the fee limits set by the
Act. This rule, therefore, reduces the annual vessel inspection fees
for small passenger vessels to the limits established under the Act.
The separate fee categories for DUKW Vessels and Hydrojet Boats
were first established because costs for inspecting these vessels were
lower than for other small passenger vessel categories. Coast Guard
records indicate, however, that all DUKW Vessels and Hydrojet Boats are
under 65 feet in length and costs of inspecting these vessels exceed
the Act's $300 cap for small passenger vessels under 65 feet. The
separate fee categories for these vessels, therefore, are no longer
necessary and DUKW Vessels and Hydrojet Boats are included in the
category for small passenger vessels less than 65 feet in length in the
final rule.
Publicly Owned Ferries.
The Act prohibits the establishment of a fee or charge for
inspection or examination under Title 46, U.S. Code, of any publicly
owned ferry. Small passenger vessels, passenger ships, and passenger
barges currently operating as ferries pay the annual vessel inspection
fee for the vessel category to which they belong. No fee category was
established specifically for ferries. The term publicly owned ferry was
not defined within existing law or regulation.
This rule amends 46 CFR 2.10-25 to define the terms publicly owned,
ferry, political subdivision, State, youth, and non-profit organization
for the purposes of these regulations and to exempt publicly owned
ferries from the provisions of 46 CFR part 2.
The term publicly owned is defined for the purposes of these
regulations as owned by the federal government or the government of any
State or political subdivision thereunder.
The term ferry is defined as a vessel transporting passengers or
vehicles on a regular run, over the most direct route between a point
of embarkation and a point of debarkation on lands separated by a body
of water other than an ocean, or between a point of embarkation and an
island within the same State.
The term political subdivision, as used within the definition of
publicly owned, includes county, district, parish, township, city or
similar governmental entities established within a State.
As used within this part, the term State in accordance with 46
U.S.C. 2101(1)(36) means a State of the United States, Guam, Puerto
Rico, the Virgin Islands, American Samoa, the District of Columbia, the
Northern Mariana Islands, and any other territory or possession of the
Untied States.
The term Youth is defined for the purposes of these regulations as
an individual 18 years of age or younger.
Exemption Criteria
This rule also revises the exemption criteria in 46 CFR 2.10-5 to
allow some non-profit organizations that do not meet the current
narrowly-drawn exemption criteria to qualify for exemption from payment
of fees. Under current regulations, a vessel must be owned or operated
by an organization that is (1) charitable in nature, (2) not for
profit, and (3) youth oriented and the vessel must be used exclusively
for training youth in boating, seamanship, and navigational skills.
Under 46 U.S.C. 2110(g), exemptions from payment of user fees may
be granted whenever it is in the public interest to do so. Since May 1,
1995, the Coast Guard has granted exemptions to only 48 vessels, of
which 34 are owned or operated by the Outward Bound Organization, two
by the Boy Scouts of
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America, and the remainder by a variety of other similar organizations.
At least 29 organizations applied for exemptions but did not meet
the exemption criteria. Among those organizations denied exemptions was
the Floating Hospital in New York, a charitable, non-profit
organization providing medical services to inner city residents of New
York City at no cost to the patients. The organization did not meet the
exemption criteria because it was not youth-oriented, and did not train
youth in boating, navigation, or seamanship. Similarly, a non-profit
organization that provided enrichment excursions to individuals with a
disability, regardless of their age, did not meet the criteria because
it was not specifically youth-oriented.
Requests for exemption were also received from several non-profit
organizations providing training to youth aboard the vessels, but which
offered a curriculum exceeding the criteria specified under current
regulation. Typically, these programs are centered around marine
environmental awareness and education. The marine environmental
awareness training offered to youth aboard these vessels is a goal that
is within the public interest to promote. It is necessary, however, to
differentiate between a course in marine environmental studies, and
environmental vacations consisting of sightseeing, whale watching, or
other excursions for the enjoyment or appreciation of nature.
The term not for profit corporation is being changed to the more
commonly used terminology of non-profit organization. Previously, the
term had not been defined. This rule defines the term as an
organization under Internal Revenue Code (I.R.C.) section 501(c) which
is exempt for the purposes of federal income taxation. The Internal
Revenue Service requires such organizations to be organized and
operated exclusively for one or more of the following purposes: (a)
religious; (b) charitable; (c) scientific; (d) testing for public
safety; (e) literary; (f) educational; (g) prevention of cruelty to
children or animals; or (h) to foster national or international sports.
This rule removes the words charitable in nature from the exemption
criteria because it is already included in the broader term non-profit
organization.
The rule also adds educating youth in a course of marine
environmental studies; providing excursions for individuals with a
disability; and providing medical services to the activities in which a
qualified vessel may be engaged. The term disability means a person
having a disability as defined by the Americans with Disabilities Act
(ADA) [42 U.S.C. 12102(2)].
Regulatory Evaluation
This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866 and does not require an assessment of
potential costs and benefits under section 6(a)(3) of that order. It
has not been reviewed by the Office of Management and Budget under that
order. It is not significant under the regulatory policies and
procedures of the Department of Transportation (DOT) (44 FR 11040;
February 26, 1979).
The Coast Guard expects the economic impact of this rule to be so
minimal that a full Regulatory Evaluation under paragraph 10e of the
regulatory policies and procedures of DOT is unnecessary. The Coast
Guard Authorization Act of 1996 (the Act) placed a cap on fees charged
for the inspection of small passenger vessels to reduce the economic
burden imposed on small businesses. The Act also provided an exemption
for publicly-owned ferries from the payment of user fees, which
eliminates costs to State, State agencies, and local governments.
Implementation of these provisions began on November 1, 1996.
In addition, the current exemption criteria under 46 U.S.C. 2110(g)
is being broadened to allow additional exemptions from payments of fees
in instances where it is clearly within the public interest to do so.
User fee revenues will be reduced by approximately $2.8 million
dollars as a result of the cap on small passenger vessels, exemption of
the publicly-owned ferries, and the broadening of the exemption
eligibility criteria under 46 U.S.C. 2110(g). The cap on small
passenger vessels will affect 5,880 vessels and reduce revenues to the
government and provide savings to the small passenger vessel industry
in the amount of $2.25 million dollars. The exemption of publicly-owned
ferries affects 164 vessels and reduces revenues to the government and
provides a savings to the industry in the amount of $480,000 dollars.
The broadening of the exemption eligibility is estimated to affect 100
vessels and will reduce revenues to the government and will provide a
savings to industry in the amount of $67,000 dollars.
Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the
Coast Guard must consider the economic impact on small entities of a
rule for which a general notice of proposed rulemaking is required.
``Small entities'' may include (1) small businesses and not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields; (2) governmental jurisdictions with
populations of less than 50,000; and (3) ``small business concern[s]''
as defined by section 3 of the Small Business Act [15 U.S.C. 632(a)].
Small businesses are identified under Standard Industrial
Classification codes and size standards in the table following 13 CFR
121.201. This rule does not require a general notice of proposed
rulemaking and, therefore, is exempt from the requirements of the Act.
Although this rule is exempt, the Coast Guard has reviewed it for
potential impact on small entities.
This rule will reduce an existing economic burden on small
businesses owning inspected small passenger vessels, or that qualify
for the revised exempt status by lowering or eliminating fees they pay
for required Coast Guard vessel inspection services. Therefore, the
Coast Guard's position is that this rule will not have a significant
economic impact on a substantial number of small entities. If, however,
you think that your business or organization qualifies as a small
entity and that this rule will have a significant economic impact on
your business or organization, please submit a comment (see ADDRESSES)
explaining why you think it qualifies and in what way and to what
degree this rule will economically affect it.
Assistance for Small Entities
In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121), the Coast Guard
will provide assistance to small entities to determine how this rule
applies to them. If you are a small business and need assistance
understanding the provisions of this rule or applying for an exemption
under this rule, please contact your local Officer in Charge, Marine
Inspection (OCMI) or call, toll free, 1-800-941-3337.
Collection of Information
This rule contains no new collection-of-information requirements
under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).
Federalism
The Coast Guard has analyzed this rule under the principles and
criteria contained in Executive Order 12612 and has determined that
this rule does not have sufficient federalism implications to warrant
the preparation of a
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Federalism Assessment. This rule amends user fees for vessel inspection
and examination services to cap fees paid for services related to small
passenger vessels, and exempts publicly owned ferries from payment of
the fees.
Unfunded Mandates
Under the Unfunded Mandates Reform Act (Pub. L. 104-4) (the ACT),
the Coast Guard must consider whether this Interim Rule will result in
an annual expenditure by State, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million (adjusted annually
for inflation). Section 205 of the Act also that the Coast Guard
identify and consider a reasonable number of regulatory alternates, and
from those alternatives, select the least costly, most cost-effective,
or least burdensome alternative that achieves the objective of this
Interim Rule. The rule does not impose additional costs upon any State
or local government as a result of a mandate imposed upon them as a
government agency. The completed analysis estimates that this Interim
rule will provide a total savings of $2.8 million dollars. This rule
will result in the reduction or elimination of fees paid by State,
State agencies, and local governments for inspection services provided
to these categories of vessels owned by such entities.
Environment
The Coast Guard considered the environmental impact of this rule
and has concluded that, under paragraph 2.B.2 of Commandant Instruction
M16475.1B, this rule is categorically excluded from further
environmental documentation. Paragraph 2.,B.2 of that instruction
excludes administrative actions and procedural regulations and policies
that clearly do not have any environmental impacts. A ``Categorical
Exclusion Determination'' is available in the docket for inspection or
copying where indicated under ADDRESSES.
List of Subjects in 46 CFR Part 2
Fees, Marine safety, Vessels.
For the reasons set out in the preamble, the Coast Guard amends 46
CFR part 2 as follows:
PART 2--VESSELS INSPECTIONS
1. The authority citation for part 2 is revised to read as follows:
Authority: 14 U.S.C. 664; 31 U.S.C. 9701; 33 U.S.C. 1903; 43
U.S.C. 1333, 1356; 46 U.S.C. 2110, 3306, 3703; E.O. 12234, 45 FR
58801, 3 CFR 1980 Comp., p. 277; 49 CFR 1.46; Subpart 2.45 also
issued under the authority of Act Dec 27, 1950, Ch 1155, sections 1,
2, 64 Stat. 1120 [see 46 U.S.C. App. Note prec. 1].
2. In Sec. 2.10-1, paragraph (b) is revised to read as follows:
Sec. 2.10-1 Applicability.
* * * * *
(b) The fees in this subpart do not apply to:
(1) Vessels being inspected for the initial issuance of a
Certificate of Inspection;
(2) Foreign passenger vessels;
(3) Training vessels operated by State maritime academies;
(4) Public vessels of the United States except for Maritime
Administration vessels; and
(5) Publicly owned ferries.
3. Section 2.10-5 is revised to read as follows:
Sec. 2.10-5 Exemptions.
(a) Vessels owned or operated by a non-profit organization may be
exempted from payment of the fees required by this subpart, only if the
vessel is used exclusively for one or more of the following:
(1) Training youth in boating, seamanship, or navigation skills;
(2) Educating youth in a course of marine environmental studies;
(3) Providing excursions for persons with disabilities as defined
under the Americans with Disabilities Act (ADA) [42 U.S.C. 12102(2)];
or
(4) Providing medical services.
(b) Vessels owned or operated by the Federal government or the
government of any State or political subdivision thereunder may be
exempted from the fees required by this subpart provided the vessel is
used exclusively for one or more of the purposes listed in paragraph
(a) of this section.
(c) The term used exclusively in paragraphs (a) and (b) of this
section does not preclude:
(1) the carriage of adult volunteers or crew, or
(2) the vessel's use for fund raising activities without regard to
the age of the participants aboard the vessel, provided revenues raised
are for the operation and maintenance of the vessel and that such fund
raisers are held no more frequently than once a month.
(d) Vessel owners or operators may submit a written request for
exemption to the Officer in Charge, Marine Inspection, of the Marine
Inspection Zone in which the vessel normally operates. The exemption
request must provide the vessel name, the vessel identification number,
and evidence that the organization and the vessel meet the criteria set
forth in this section.
4. Section 2.10-25 is amended by adding in alphabetical order new
definitions for Ferry, Non-profit organization, Political subdivision,
Publicly owned, State and Youth, to read as follows:
Sec. 2.10-25 Definitions.
* * * * *
Ferry means, a vessel transporting passengers or vehicles on a
regular run, over the most direct route between a point of embarkation
and a point of debarkation on lands separated by a body of water other
than an ocean, or between a point of embarkation and an island within
the same State.
* * * * *
Non-profit organization means an organization under Internal
Revenue Code (I.R.C.) section 501(c) which is exempt for the purposes
of federal income taxation.
* * * * *
Political subdivision means a county, district, parish, township,
city or similar governmental entity established within a State.
Publicly owned means, owned by (1) the federal government, or (2)
the government of any State or political subdivision thereunder.
* * * * *
State means a State of the United States, Guam, Puerto Rico, the
Virgin Islands, American Samoa, the District of Columbia, the Northern
Mariana Islands and any other territory or possession of the United
States.
* * * * *
Youth means an individual 18 years of age or younger.
* * * * *
5. In table 2.10-101, the entries for Passenger Barges and for
Small Passenger Vessels are revised to read as follows:
Table 2.10-101.--Annual Vessel Inspection Fees for U.S. and Foreign
Vessels Requiring Certificate of Inspection
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* * * *
* * *
Passenger Barges:
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Less than 100 gross tons and:
Less than 65 feet in length........................... 300
65 feet or more in length............................. 600
100 gross tons or more and:
Certified for fewer than 150 passengers............... 2,215
Certified for 150 or more passengers.................. 2,525
* * * *
* * *
Small Passenger Vessels:
Less than 65 feet in length............................... 300
65 feet or more in length................................. 600
* * * *
* * *
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Dated: March 21, 1997.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety
and Environmental Protection.
[FR Doc. 97-10231 Filed 4-18-97; 8:45 am]
BILLING CODE 4910-14-M