[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Proposed Rules]
[Pages 16024-16030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8409]



[[Page 16023]]

_______________________________________________________________________

Part VI





Department of Transportation





_______________________________________________________________________



Coast Guard



_______________________________________________________________________



46 CFR Parts 10 and 12



User Fees for Licenses, Certificates of Registry, and Merchant Mariner 
Documents; Proposed Rule

  Federal Register/Vol. 63, No. 62/Wednesday, April 1, 1998/Proposed 
Rules  

[[Page 16024]]



DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 10 and 12

[USCG-97-2799]
RIN 2115-AF49


User Fees for Licenses, Certificates of Registry, and Merchant 
Mariner Documents

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard proposes to revise user fees for Coast Guard 
services relating to the issuance of merchant mariner licenses, 
certificates of registry, and merchant mariner documents. The proposed 
revisions are based on the most recent recalculation of program costs 
associated with mariner documentation services. The two CFR sections in 
which the fees are published would also be reformatted from narrative 
text into a more user-friendly table.

DATES: Comments must reach the Coast Guard on or before September 28, 
1998.

ADDRESSES: You may mail comments to the Docket Management Facility, 
[USCG-97-2799], U.S. Department of Transportation (DOT), Room PL-401, 
400 Seventh Street SW., Washington, DC 20590-0001, or deliver them to 
room Pub. L.-401, located on the Plaza Level of the Nassif Building at 
the same address between 10 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. The telephone number is 202-366-9329.
    The Docket Management Facility maintains the public docket for this 
rulemaking. Comments, and documents as indicated in this preamble, will 
become part of this docket and will be available for inspection or 
copying at room PL-401, located on the Plaza Level of the Nassif 
Building at the above address between 10 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. You may also electronically 
access the public docket for this rulemaking on the Internet at http://
dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For information on the public docket, 
contact Carol Kelley, Coast Guard Dockets Team Leader or Paulette 
Twine, Chief, Documentary Services Division, U.S. Department of 
Transportation, telephone 202-366-9329; for information concerning the 
notice of proposed rulemaking (NPRM) provisions, contact CDR Mark 
McEwen, Project Manager, U.S. Coast Guard Headquarters, Office of 
Planning and Resources (G-MRP), telephone 202-267-1409.

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 [USCG-97-2799] and the specific section of 
this document to which each comment applies, and give the reason for 
each comment. Please submit all comments and attachments in an unbound 
format, no larger than 8\1/2\ by 11 inches, suitable for copying and 
electronic filing to the DOT Docket Management Facility at the address 
under ADDRESSES. If you want acknowledgment of receipt of your comment, 
enclose a stamped, self-addressed postcard or envelope.
    The Coast Guard will consider all comments received during the 
comment period. It may change this proposed rule in view of the 
comments.
    The Coast Guard plans no public meeting. Persons may request a 
public meeting by writing to the Marine Safety Council at the address 
under ADDRESSES. The request should include the reasons why a public 
meeting would be helpful to this rulemaking. If an opportunity for oral 
presentations will help the rulemaking procedures, the Coast Guard will 
hold a public meeting at a time and place announced by a later notice 
in the Federal Register.

Background

Regulatory History

    The Coast Guard published a final rule entitled ``User Fees for 
Marine Licensing, Certification of Registry and Merchant Mariner 
Documentation'' in the Federal Register on March 19, 1993 (59 FR 
15228). The rule established marine license, certificate of registry, 
and merchant mariner document user fees in 46 CFR parts 10 and 12. The 
final rule became effective on April 19, 1993.
    On September 27, 1994, the Coast Guard issued a final rule (59 FR 
49294) requiring certificates of registry and merchant mariner's 
documents to be renewed every 5 years, and user fees for renewals were 
added to the fee schedules in 46 CFR parts 10.109 and 12.02-18.

Litigation History

    On April 15, 1993, Seafarers International Union of North America, 
et al., brought suit against the Coast Guard to enjoin it from 
collecting marine licensing and merchant mariner documentation user 
fees. On November 23, 1994, the U.S. District Court for the District of 
Columbia affirmed the Coast Guard's authority to establish these fees 
and it confirmed the methodology used by the Coast Guard to establish 
these fees. However, the Court ordered the Coast Guard to recalculate 
the costs associated with its merchant mariner licensing and 
documentation (MMLD) program, reassess its published fees, and subject 
the recalculation to public notice and comment. The Court also ordered 
the Coast Guard to stop charging the $17 fee for Federal Bureau of 
Investigation (FBI) criminal record checks. The Coast Guard instructed 
the Regional Examination Centers (REC) to stop collecting the $17 
criminal record check fee, and began the process of recalculating its 
program costs.
    The recalculation of costs and the reassessment of user fees 
ordered by the Court were completed on September 25, 1996. On October 
31, 1996, the Coast Guard published in the Federal Register a notice of 
its recalculation of program costs and reassessment of fees (61 FR 
56199). The Coast Guard encouraged interested persons to review and 
comment on the recalculation during the 60-day comment period which 
closed December 30, 1996.
    On March 27, 1997, on appeal, the U.S. District Court of Appeals 
for the District of Columbia overturned the District Court's ruling on 
collecting the fee for FBI criminal record checks, but the Coast Guard 
has not yet reinstituted collections of the $17 criminal record check 
fee.
    On May 22, 1997, the District Court ordered the Coast Guard to 
begin rulemaking proceedings and complete a final rule on MMLD user 
fees no later than April 30, 1998.
    On September 17, 1997, the Coast Guard and the SIU settled the 
litigation. The final rule completion date of April 30, 1998, no longer 
applies to this rulemaking. However, the terms of the settlement 
require the Coast Guard to go forward with this rulemaking.

Comments on Notice of Recalculation

    The Coast Guard received 163 comments in response to the October 
31, 1996, notice of recalculation. Only three comments specifically 
addressed the cost elements, methodology, or data collection procedures 
of the recalculation. These issues were considered in developing this 
proposal.
    The remaining 160 comments opposed user fees in general. Many 
comments objected to what they believed was a proposed or actual 
increase in fees, and some requested a copy of the notice of 
recalculation and

[[Page 16025]]

reassessment. They also objected to the notice only being published in 
the Federal Register because mariners generally do not read the Federal 
Register. A number of comments requested the comment period be extended 
some additional time to allow members of the merchant marine, who are 
often away from their home port for 30 days or more, to participate in 
the ``rulemaking.''
    The Coast Guard did not extend the comment period on the notice of 
recalculation. The notice was not a regulatory proposal and no agency 
action was proposed at that time. The 90-day comment period was 
adequate for the purpose of reviewing and commenting on the Coast 
Guard's recalculation.

Discussion of Proposed Rule

Overview

    The Coast Guard proposes to--

 Revise the user fees for issuing merchant mariner licenses, 
certificates of registry, and merchant mariners documents; and
 Reformat 46 CFR 10.109 and 12.02-18, the two sections in which 
the fees are published, by replacing the current narrative text with a 
more user-friendly table format.

Proposed Fees

    The Coast Guard used the recalculation data to develop the revised 
MMLD user fees. In six cases, the recalculated cost figures indicated 
that the costs of providing the services was lower than the currently 
published fees. The Coast Guard took immediate action to reduce the 
amount collected for those six fees. This proposal would make five of 
those reductions permanent.
    With the exception of 3 fees that remained the same, in all other 
cases, the cost of providing the services was higher than the currently 
published fees. This proposal would raise those fees based on cost 
figures developed during the recalculation and reassessment. The 
methodology for recalculation and the issues concerning the proposed 
fee adjustments are explained in detail in the draft regulatory 
assessment.
    The following illustrations show Secs. 10.109 and 12.02-18 in the 
current CFR text format, and compare the currently published fees, the 
recalculated program costs, and the proposed fees.

                             Illustration 1.--Licenses and Certificates of Registry                             
----------------------------------------------------------------------------------------------------------------
                                                                                Recalculated                    
                CFR Section--46 CFR 10.109                    Published fee     program costs     Proposed fees 
----------------------------------------------------------------------------------------------------------------
(a) For Licenses:                                                                                               
    (1) Upper Level:                                                                                            
        (i) For evaluation for an original license........               $87           \1\$119              $115
        (ii) For evaluation for a license other than an                                                         
         original, including a raise in grade of a license                70               102               100
        (iii) For administration of an examination,                                                             
         including allowable retests......................               150               110               110
        (iv) For administration of a limited examination                                                        
         required under subpart D of this part, including                                                       
         allowable retests................................                55             \2\45                45
        (v) For issuance of a license.....................                35                62                45
    (2) Lower level:                                                                                            
        (i) For evaluation for an original license........                82            \3\136               115
        (ii) For evaluation for a license other than an                                                         
         original, including a raise in grade in a license                65               119               100
        (iii) For administration of an examination,                                                             
         including allowable retests......................                80                98                95
        (iv) For administration of a limited examination                                                        
         required under subpart D of this part, including                                                       
         allowable retests................................                55                45                45
        (v) For issuance of a license.....................                35                51                45
    (3) Radio Officer:                                                                                          
        (i) For evaluation for an original license........                62            \4\128                65
        (ii) For evaluation for a license other than an                                                         
         original, including a raise in grade in a license                45               111                50
        (iii) For issuance of a license...................                35                61                45
(b) For endorsements, except the radar observer                                                                 
 endorsement, subsequent to the issuance of the license:                                                        
    (1) For evaluation for single or multiple endorsements                45                50                50
    (2) For administration of examinations, including                                                           
     allowable retests....................................                55                45                45
    (3) For issuance of single or multiple endorsements to                                                      
     an existing license..................................                35                46                45
(c) For renewal of a license:                                                                                   
    (1) For evaluation for renewal of a license:                                                                
        (i) Except for a radio officer....................                45                50                50
        (ii) For a radio officer..........................                45               n/a                50
    (2) For administration of an open-book exercise if                                                          
     required under Sec. 10.209 of this part..............                55                45                45
    (3) For issuance of a renewed license.................                35                46                45
    (4) For issuance of a renewed license, without                                                              
     evaluation or examination, for continuity purposes                                                         
     only.................................................                35             \5\46                45
(d) For Certificates of Registry:                                                                               
    (1) For Chief Purser, Purser, and Senior Assistant                                                          
     Purser:                                                                                                    
        (i) For evaluation of an unlicensed applicant for                                                       
         a certificate of registry........................                62            \6\123               120
        (ii) For evaluation of an applicant who holds a                                                         
         license or certificate of registry issued under                                                        
         this part........................................                45               106               105
        (iii) For issuance of a certificate of registry...                35               179                45
    (2) For Junior Assistant Purser, Medical Doctor, and                                                        
     Professional Nurse:                                                                                        
        (i) For evaluation of an unlicensed applicant for                                                       
         a certificate of registry........................                17            \7\128               120
        (ii) For evaluation of an applicant who holds a                                                         
         license or certificate of registry issued under                                                        
         this part........................................            (\11\)               111               105

[[Page 16026]]

                                                                                                                
        (iii) For issuance of a certificate of registry...                35                61                45
    (3) For renewal of a Certificate of Registry:                                                               
        (i) For evaluation for renewal of a certificate of                                                      
         registry.........................................            (\11\)             \8\50                50
        (ii) For issuance of a renewed certificate of                                                           
         registry.........................................                35                46                45
(e) For reissue of a license or certificate of registry                                                         
 issued under this part where a fee is required in Sec.                                                         
 10.219...................................................                35               106                45
(f) For endorsements to existing license, a raise in grade                                                      
 of a license, an additional license, or certificate of                                                         
 registry where further evaluations are not required......             (\9\)               n/a            (\11\)
(g) For endorsements to an existing license, a raise in                                                         
 grade of a license, or an additional license where                                                             
 further examinations are not required....................            (\10\)               n/a            (\11\)
----------------------------------------------------------------------------------------------------------------
Notes:                                                                                                          
\1\Program costs are equal to cost of evaluating an upper level license applicant for a license other than an   
  original plus the cost of an FBI criminal record check.                                                       
\2\Program costs are the same as the costs associated with administering an open-book exercise for renewal of a 
  license.                                                                                                      
\3\Program costs are equal to cost of evaluating a lower level license applicant for a license other than an    
  original plus the cost of an FBI criminal record check.                                                       
\4\Program costs are equal to cost of evaluating a Radio Officer license applicant for a license other than an  
  original plus the cost of an FBI criminal record check.                                                       
\5\Program costs are the same as the costs associated with the issuance of a renewed license.                   
\6\Program costs are equal to the cost of evaluating a licensed Chief Purser, Purser or Senior Purser           
  Certificate of Registry applicant plus the cost of an FBI criminal record check.                              
\7\Program costs are equal to the cost of evaluating a licensed Junior Assistant Purser, Medical Doctor or      
  Professional Nurse Certificate of Registry applicant plus the cost of an FBI criminal record check.           
\8\Program costs are the same as the costs associated with the evaluation of a license renewal applicant.       
\9\No evaluation fee.                                                                                           
\10\No examination fee.                                                                                         
\11\No fee.                                                                                                     


                                   Illustration 2.--Merchant Mariner Documents                                  
----------------------------------------------------------------------------------------------------------------
                                                                Recalculated program                            
 CFR Section--46 CFR 12.02-18(a)         Published fee                  costs                 Proposed fees     
----------------------------------------------------------------------------------------------------------------
(1) For evaluation for an          $17......................  \1\$128.................  $110                    
 original document (does not                                                                                    
 apply if applicant holds a                                                                                     
 license or certificate of                                                                                      
 registry issued under part 10 of                                                                               
 this chapter).                                                                                                 
(2) For evaluation for a merchant                                                                               
 mariner's document endorsed with                                                                               
 a qualified rating:                                                                                            
    (i) For an original merchant   $77......................  \2\$115.................  $110                    
     mariner's document.                                                                                        
    (ii) For a merchant mariner's  $60......................  $98.....................  $95                     
     document other than an                                                                                     
     original.                                                                                                  
    (iii) Where further            No fee...................  n/a.....................  No fee                  
     evaluation is not required,                                                                                
     such as when a merchant                                                                                    
     mariner's document is issued                                                                               
     incident to a license                                                                                      
     transaction.                                                                                               
(3) For administration of          $40......................  $144....................  $140                    
 examination.                                                                                                   
(4) For issuance of a document...  $35......................  $53.....................  $45                     
    (5) For duplicate of a         $35......................  $106....................  $45                     
     merchant mariner's document                                                                                
     issued in this part where a                                                                                
     fee is required in Sec.                                                                                    
     12.02-23.                                                                                                  
    (6) For a duplicate            \3\$10...................  $106....................  \3\$10                  
     continuous discharge book,                                                                                 
     record of sea service, or                                                                                  
     copies of certificates of                                                                                  
     discharge.                                                                                                 
(7) For renewal of a merchant                                                                                   
 mariner's document:                                                                                            
    (i) For evaluation for         $45......................  $50.....................  $50                     
     renewal of a merchant                                                                                      
     mariner's document endorsed                                                                                
     with a qualified rating.                                                                                   
    (ii) For evaluation for        No fee...................  n/a.....................  No fee                  
     renewal of a merchant                                                                                      
     mariner's document when                                                                                    
     submitted with a license                                                                                   
     where a renewal evaluation                                                                                 
     fee already applies.                                                                                       
    (iii) For evaluation for       No fee...................  n/a.....................  $50                     
     renewal of a merchant                                                                                      
     mariner's document without                                                                                 
     qualified rating endorsement.                                                                              
    (iv) For administration of     $40......................  $45.....................  $45                     
     open-book exercises required                                                                               
     by Sec. 12.02-27.                                                                                          
    (v) For administration of MMD  Only the license exercise  $45\5\..................  No fee\6\               
     open-book exercises when       fee in Sec. 10.109(c)(2)                                                    
     required in addition to        will apply\4\.                                                              
     license open-book exercises                                                                                
     for concurrent renewal of                                                                                  
     these documents.                                                                                           
    (vi) For issuance of a         35.......................  46......................  45                      
     renewal of a merchant                                                                                      
     mariner's document including                                                                               
     those issued for continuity                                                                                
     purposes only.                                                                                             
----------------------------------------------------------------------------------------------------------------
Notes:                                                                                                          
\1\Program costs are equal to cost of evaluating an applicant for a merchant mariner's document without         
  qualified rating endorsement plus the cost of an FBI criminal record check.                                   
\2\Program costs are equal to the cost of evaluating an applicant for an original merchant mariner's document   
  with qualified rating endorsement plus the cost of an FBI criminal record check.                              
\3\Payment of fee is not required if loss is caused by shipwreck or other casualty; other casualty includes     
  damage to a ship caused by collision, explosion, tornado, wreck, flooding, grounding, beaching or fire (see   
  Sec. 12.02-23).                                                                                               
\4\Fee published in 46 CFR 10.109(c)(2) for administration of an open-book exercise for renewal of a license is 
  equal to $55.                                                                                                 
\5\Program costs are the same as the costs associated with the administration of an open-book exercise for      
  renewal of a license.                                                                                         
\6\Payment of fee is not required for open-book exercise for renewal of MMD since payment is made during        
  concurrent open-book exercise for renewal of license.                                                         


[[Page 16027]]

Reformatting

    The Coast Guard proposes to reformat the two CFR sections (46 CFR 
10.109 and 12.02-18) in which the fees are currently published. The 
current text presentation is confusing and does not easily identify the 
fees for each phase of an MMLD transaction. The Coast Guard proposes to 
replace the text with a table which is more user-friendly to the 
mariner and to REC personnel, and would help them determine the fees 
that apply to a particular transaction. For each MMLD transaction, the 
tables would set out the fees for each of the three transaction 
phases--evaluation, examination, and issuance. You can read across a 
single line to find the fees associated with all the phases in any 
particular license, certificate of registry, or merchant mariner 
document transaction. In the table format--

 An n/a in the fees column would mean there is no Coast Guard 
activity in that phase for that transaction; and
 A no fee in the fees column would mean there is an activity 
for that phase, but there is no fee charged for that activity.

    The following illustration shows Sec. 12.02-18, Fees, as it would 
appear in the proposed table format.

                                 Illustration 3.--Proposed Table 12.02-18--Fees                                 
----------------------------------------------------------------------------------------------------------------
                                                                           And you need--                       
                                                  --------------------------------------------------------------
                If you apply for--                   Evaluation  Then    Examination  Then    Issuance  Then the
                                                       the fee is:          the fee is:            fee is:      
----------------------------------------------------------------------------------------------------------------
Merchant Mariner Document:                                                                                      
    Original:                                                                                                   
        Without endorsement......................                 $110                  n/a                  $45
        With endorsement.........................                  110                 $140                   45
    Endorsement for qualified rating.............                   95                  140                   45
    Upgrade or Raise in Grade....................                   95                  140                   45
    Renewal without endorsement for qualified                                                                   
     rating......................................                   50                  n/a                   45
    Renewal with endorsement for qualified rating                   50                   45                   45
    Renewal for continuity purposes..............                  n/a                  n/a                   45
    Reissue/Replacement/Duplicate................                  n/a                  n/a                \1\45
Other Transactions:                                                                                             
    Duplicate Continuous Discharge Book..........                  n/a                  n/a                   10
    Duplicate record of sea service..............                  n/a                  n/a                   10
    Copy of certificate of discharge.............                  n/a                  n/a                   10
----------------------------------------------------------------------------------------------------------------
\1\Duplicate for document lost as result of marine casualty--No Fee.                                            

Criminal Record Check Fee

    The Coast Guard would re-institute collection of the $17 FBI 
criminal record check fee when the final rule for this project becomes 
effective. The $17 FBI criminal record check fee would be included in 
the proposed evaluation phase fee for original documents.

Regulatory Assessment

    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866 and 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). A separate Draft 
Regulatory Assessment document, however, has been prepared for this 
proposal and is available in the docket for inspection or copying where 
indicated under ADDRESSES.
    The total annual revenues from direct user fees under subtitle II 
of 46 U.S.C. 2110 does not exceed $27 million and the merchant marine 
licensing and documentation (MMLD) revenues for fiscal year 1996 were 
only $4.6 million. The proposed revisions would increase these revenues 
to an estimated $9.3 million. This represents the maximum amount of 
revenue that could be collected based on recalculated data and 
transaction figures. The total revenue of direct user fees under 
subtitle II of 46 U.S.C. 2110 for fiscal year 1997 did not exceed $23.1 
million, well below the $100 million threshold that would make a 
rulemaking economically significant.
    The proposed rule would affect all mariners required to hold a 
license or certificate of registry (COR) under 46 CFR part 10 or a 
merchant mariner document (MMD) under 46 CFR part 12. The Draft 
Regulatory Assessment contains a comparison of the proposed fees with 
1994 mariner salary levels. It also contains a comparison of the 
proposed fees with professional license fees paid by members of other 
professions. It illustrates proposed fees as a percentage of typical 
annual salary and displays them along with the same type of percentages 
for other professions. The U.S. Maritime Administration (MARAD) 
provided a listing of typical salaries for persons employed in the 
marine industry in 1996. The Coast Guard also used 1994 salary data 
from the Bureau of Labor Statistics (BLS) for this analysis. Because 
MARAD used mean salary data from 1996 and BLS used median salary data 
from 1994, it is difficult to draw conclusions using these numbers. 
However, the information is included in the Draft Regulatory Assessment 
for general comparison purposes.
    The impact of the proposed fees on the individual merchant mariner 
would occur at the time fees are paid. At all other years during the 
validity of the license, document, or certificate, if there are no 
document transactions, no payments are made. The relative economic 
impact of the proposed fees on each mariner would vary depending upon 
the number and type of documents held by the mariner and the mariner's 
ability to pay.
    To assess the impact of the proposed fees on the individual 
mariner, the Coast Guard annualized fees over the period the documents 
were valid. We illustrated the document transactions a hypothetical 
mariner may require over the first 10 years he or she holds a license 
or document. We assumed that the document transactions this mariner 
would need during that period would include renewals, raises in grade 
and endorsements. Our analysis of the costs borne by the mariner covers 
a 10-year period. As an example, an individual who obtained an original 
upper level deck license requiring an examination would need to renew 
that license after 5 years, for a second 5-year period of validity. 
Over this 10-year period, we assumed the officer would need at least

[[Page 16028]]

one endorsement, which requires a one-time payment and is valid 
throughout the life of the license. Over the 10 years, that officer 
would incur a total cost of $550 for the original license, its renewal, 
and the endorsement. This is a $55 per year annualized cost to the 
mariner over that 10-year period.
    Using the previous example and using the current fees, the mariner 
seeking an upper level license would have paid $542, which has a 10-
year annualized cost of $54.20. The $8 total difference ($550-$542=$8) 
between the cost of the transactions under the current fees and under 
the proposed fees would annualize over 10 years to $0.80 per year.
    In the Draft Regulatory Assessment, salary data is shown for 
informational purposes and was used to establish a benchmark for 
comparison with the proposed fees. Because of the wide variance in 
salaries and days worked, each mariner's earnings will be different and 
no conclusion regarding the impact of the proposed fee revisions could 
be drawn based solely on this information.
    The Draft Regulatory Assessment contains more detailed discussion 
of the impact of the proposed fee revisions upon the merchant marine 
profession, and contains comparisons with other professional licensing 
fees.

Summary

    The Coast Guard found that the impact of the proposed revisions 
would vary with the financial situation of each individual mariner. 
However, the data suggested the financial impact of the proposed fee 
revisions are not significantly different from the user and licensing 
fees of other professions, both in terms of actual fees and as a 
percent of salary. The impact of the proposed fee revisions to the 
individual merchant mariner occurs over the phases of the document 
transactions at the time each transaction phase fee is paid. Absent 
further transactions during the document's 5-year period of validity, 
no other payments would be necessary until the renewal of the document.
    The Coast Guard understands that the proposed fee revisions may 
represent only one of several expenses incurred by the individual 
mariner when acquiring a Coast Guard license, COR, or MMD. Within the 
marine professions and trades, the fees for MMLD transactions have 
essentially become part of the overall cost associated with working in 
the industry.
    The Coast Guard invites public comment or data relating to the 
impact of the proposed fees upon the different categories of license, 
COR, and MMD holders.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), the Coast 
Guard considers whether this proposed rule, if adopted, will have a 
significant economic impact on a substantial number of small entities. 
``Small entities'' include small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000.
    The fee revisions in this proposed rule will impact the individual 
mariner, which for the most part will not affect small entities. 
However, some license holders both own and operate their vessels as 
small businesses. For those individuals, this proposed rule has small 
entity implications.
    The Coast Guard estimates that few sole proprietors working as 
towing vessel operators, offshore supply vessel operators, and mobile 
offshore drilling unit operators. However, we believe that there are a 
number of sole proprietors in the small passenger vessel industry. 
After contacting the National Association of Charter Boat Operators and 
the Passenger Vessel Association, we estimate that 90 percent of the 
approximately 5,600 inspected and 480 uninspected small passenger 
vessels may operate in this fashion.
    As a business, sole proprietors can claim their licensing and 
documentation user fees as a business expense for tax purposes and many 
can, pass along the expense of the licensing fees to the consumer in 
the form of higher rates. Therefore, for these reasons, the Coast Guard 
certifies under 5 U.S.C.(b) that this proposed rule, if adopted, 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 proposed 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 proposed 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 
wants to assist small entities in understanding this proposed rule so 
that they can better evaluate its effects on them and participate in 
the rulemaking process. If your small business or organization is 
affected by this rule and you have questions concerning its provisions 
or options for compliance, please contact the Coast Guard's Small 
Business Program Manager, Danielle Wildason, telephone 202-267-1154.

Collection of Information

    This proposed rule does not contain collection of information 
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520).

Federalism

    The Coast Guard has analyzed this proposed rule under the 
principles and criteria contained in Executive Order 12612 and has 
determined that this proposed rule does not have sufficient 
implications for federalism to warrant the preparation of a Federalism 
Assessment.

Environment

    The Coast Guard considered the environmental impact of this 
proposal and concluded that, under paragraph 2.B.2.e (34)(a) of 
Commandant Instruction M16475.1B, this proposed rule is categorically 
excluded from further environmental documentation. A ``Categorical 
Exclusion Determination'' is available in the docket for inspection or 
copying where indicated under ADDRESSES.

List of Subjects

46 CFR Part 10

    Fees, Reporting and recordkeeping requirements, Schools, Seamen.

46 CFR Part 12

    Fees, Reporting and recordkeeping requirements, Seamen.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 46 CFR parts 10 and 12 as follows:

PART 10--LICENSING OF MARITIME PERSONNEL

    1. The authority citation for part 10 continues to read as follows:

    Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 2103, 2110; 46 U.S.C. 
Chapter 71; 46 U.S.C. 7502, 7505, 7701; 49 CFR 1.45, 1.46; Sec. 
10.107 also issued under the authority of 44 U.S.C. 3507.

    2. Revise Sec. 10.109 to read as follows:


Sec. 10.109  Fees.

    Use table 10.109 to determine the fees that you must pay for 
license and certificate of registry activities in this part:

[[Page 16029]]



                                               Table 10.109--Fees                                               
----------------------------------------------------------------------------------------------------------------
                                                                           And you need--                       
                                                  --------------------------------------------------------------
                If you apply for--                   Evaluation  Then    Examination  Then    Issuance  Then the
                                                       the fee is:          the fee is:            fee is:      
----------------------------------------------------------------------------------------------------------------
License:                                                                                                        
    Original:                                                                                                   
        Upper level..............................                 $115                 $110                   $5
        Lower level..............................                  115                   95                   45
    Raise of grade...............................                  100                   45                   45
    Modification or removal of limitation or                                                                    
     scope.......................................                   50                   45                   45
    Endorsement(s)...............................                   50                   45                   45
    Renewal......................................                   50                   45                   45
    Renewal for continuity purposes..............                  n/a                  n/a                   45
    Reissue/Replacement/Duplicate................                  n/a                  n/a                45\1\
Radio Officer License:                                                                                          
    Original.....................................                   65                  n/a                   45
    Endorsement(s)...............................                   50                   45                   45
    Renewal......................................                   50                  n/a                   45
    Renewal for continuity purposes..............                  n/a                  n/a                   45
    Reissue/Replacement/Duplicate................                  n/a                  n/a                45\1\
Certificate of Registry:                                                                                        
    Original (MMD holder)........................                  105                  n/a                   45
    Original (MMD applicant).....................                  120                  n/a                   45
    Renewal......................................                   50                  n/a                   45
    Renewal for continuity purposes..............                  n/a                  n/a                   45
    Endorsement(s) (Sec. 10.809 for Marine                                                                      
     physician assistant or Hospital corpsman)...                  n/a                  n/a                   45
    Reissue/Replacement/Duplicate................                  n/a                  n/a               45\1\ 
----------------------------------------------------------------------------------------------------------------
\1\Duplicate for document lost as result of marine casualty--No Fee.                                            

Sec. 10.209  [Amended]

    3. In Sec. 10.209(e)(4), remove the symbols ``Secs. '' and add, in 
its place, the word ``tables'.


Secs. 10.205, 10.207, 10.209, 10.217, and 10.219  [Amended]

    4. In addition to the amendments set forth above, in 46 CFR part 
10, remove the word ``Sec. 10.109'' and add, in its place, the words 
``table 10.109'' in the following places:
    (a) Section 10.205(a);
    (b) Section 10.207(a);
    (c) Section 10.209(a)(1), (e)(3)(i)(A), (e)(4), and (f);
    (d) Section 10.217((a)(1) and (a)(2); and
    (e) Section 10.219(c).

PART 12--CERTIFICATION OF SEAMEN

    5. The authority citation for part 12 continues to read as follows:

    Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 2103, 2110, 7301, 
7302, 7503, 7505, 7701; 49 CFR 1.46.

    6. Revise Sec. 12.02-18 to read as follows:


Sec. 12.02-18  Fees.

    (a) Unless otherwise specified in this part, use table 12.02-18 to 
determine the fees that you must pay for merchant mariner document 
activities.
    (b) Unless otherwise specified in this part, when two documents are 
processed on the same application--
    (1) Evaluation Fees. If a merchant mariner document transaction is 
processed on the same application as a license or certificate of 
registry transaction, only the license or certificate of registry 
evaluation fee will be charged;
    (2) Examination Fees. If a license examination under part 10 also 
fulfills the examination requirements in this part for a merchant 
mariner document, only the fee for the license examination is charged; 
and
    (3) Issuance Fees. A separate issuance fee will be charged for each 
document issued.
    (c) Unless otherwise directed, the prescribed fee must be paid as 
follows:
    (1) If an evaluation fee, at the time of application.
    (2) If an examination fee, prior to taking the first examination 
section at a Regional Examination Center. For examinations administered 
at locations other than a Regional Examination Center, the examination 
fee must be received by the Regional Examination Center at least 1 week 
in advance of the scheduled examination date.
    (3) If an issuance fee, prior to receiving the document.
    (d) Prescribed fees must be paid by one of the following options:
    (1) Mail-in. Payment by check or money order only, made payable 
to--
    (i) U.S. Coast Guard;
    (ii) U.S. Government;
    (iii) U.S. Treasury; or
    (iv) U.S. Department of Transportation.
    (2) Fee payment must be made by check or money order for the exact 
amount of the fee. Each check or money order must include the 
applicant's (payor's) social security number.
    (3) In-person. Fee payment will be accepted by cash, check, or 
money order at Coast Guard units where Regional Examination Centers are 
located. Where an applicant makes payment by cash, payment must be in 
the exact amount.
    (e) The following applies to anyone failing to pay a fee or charge 
established under this subpart:
    (1) Anyone who fails to pay a fee or charge established under this 
subpart is liable to the United States Government for a civil penalty 
of not more than $5,000 for each violation.
    (2) The Coast Guard may assess additional charges to a mariner to 
recover collection and enforcement costs associated with delinquent 
payments of, or failure to pay, a fee. Coast Guard documentation 
services may also be withheld from anyone pending payment of 
outstanding fees owed to the Coast Guard for services already provided 
by Regional Examination Centers.

[[Page 16030]]



                                              Table 12.02-18--Fees                                              
----------------------------------------------------------------------------------------------------------------
                                                                           And you need--                       
                                                  --------------------------------------------------------------
                If you apply for--                   Evaluation  Then    Examination  Then    Issuance  Then the
                                                       the fee is:          the fee is:            fee is:      
----------------------------------------------------------------------------------------------------------------
Merchant Mariner Document:                                                                                      
    Original:                                                                                                   
        Without endorsement......................                 $110                  n.a                  $45
        With endorsement.........................                  110                 $140                   45
    Endorsement for qualified rating.............                   95                  140                   45
    Upgrade or Raise in Grade....................                   95                  140                   45
    Renewal without endorsement for qualified                                                                   
     rating......................................                   50                  n/a                   45
    Renewal with endorsement for qualified rating                   50                   45                   45
    Renewal for continuity purposes..............                  n/a                  n/a                   45
    Reissue/Replacement/Duplicate................                  n/a                  n/a                \1\45
Other Transactions:                                                                                             
    Duplicate Continuous Discharge Book..........                  n/a                  n/a                   10
    Duplicate record of sea service..............                  n/a                  n/a                   10
    Copy of certificate of discharge.............                  n/a                  n/a                   10
----------------------------------------------------------------------------------------------------------------
\1\Duplicate for document lost as result of marine casualty--No Fee.                                            

Sec. 12.02-27  [Amended]

    7. In Sec. 12.02-27(e)(4) and (f), remove the symbols ``Secs. '' 
and add, in its place, the word ``tables''.


Secs. 12.02-23 and 12.02-27  [Amended]

    8. In addition to the amendments set forth above, in 46 CFR part 
12, remove the word ``Sec. 12.02-18'' and add, in its place, the words 
``table 12.02-18'' in the following places:
    (a) Section 12.02-23(b) and (c)(2);
    (b) Section 12.02-27(a)(1), (e)(3)(i)(A), (e)(4), and (f).

    Dated: March 24, 1998.
R.C. North,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety 
and Environmental Protection.
[FR Doc. 98-8409 Filed 3-31-98; 8:45 am]
BILLING CODE 4910-14-P