[Federal Register Volume 63, Number 193 (Tuesday, October 6, 1998)]
[Rules and Regulations]
[Pages 53587-53593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26578]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Parts 120 and 128

[CGD 91-012]
RIN 2115-AD75


Security for Passenger Vessels and Passenger Terminals

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: The Coast Guard implements a final rule for the security of 
passenger vessels and passenger terminals. The purpose of this rule, as 
of the interim rule now in effect, is to deter, or mitigate the results 
of, terrorism and other unlawful acts against passenger vessels and 
passenger terminals. The rule should reduce the likelihood of such acts 
and should reduce the damage to property and injury to persons, if such 
acts occur.

DATES: This final rule is effective on November 13, 1998.

ADDRESSES: Documents as indicated in this preamble are available for 
inspection or copying at the office of the Executive Secretary, Marine 
Safety Council (G-LRA, 3406), U.S. Coast Guard Headquarters, 2100 
Second Street SW., room 3406, Washington, DC 20593-0001, between 9:30 
a.m. and 2 p.m., Monday through Friday, except Federal holidays. The 
telephone number is 202-267-1477. A copy of the material listed in 
Incorporation by Reference of this preamble is available for inspection 
at room 1210, U.S. Coast Guard Headquarters.

FOR FURTHER INFORMATION CONTACT: LCDR John Farthing, Project Manager, 
Vessel and Facility Operating Standards Division, 202-267-6451.

SUPPLEMENTARY INFORMATION:

Regulatory History

    On March 25, 1994, the Coast Guard published [59 FR 14290] a notice 
of proposed rulemaking (NPRM) entitled ``Security for Passenger Vessels 
and Passenger Terminals.'' The Coast Guard

[[Page 53588]]

held three public meetings and received over 115 comments on the NPRM.
    On July 18, 1996, the Coast Guard published [61 FR 37648] an 
interim rule requiring the development of Security Plans based on three 
threat levels. The interim rule required all passenger vessels and 
passenger terminals covered by the rule to submit Plans by October 16, 
1996.
    On October 3, 1996, the Coast Guard published [61 FR 51597] a 
Notice of Policy clarifying the tonnage requirement and the submission 
of Terminal Security Plans by entities other than the terminals 
themselves.

Background and Purpose

    The death of a U.S. citizen, during the hijacking of the ACHILLE 
LAURO in 1985, demonstrates the threat of terrorism to passenger 
vessels and associated terminals. This vulnerability has caused major 
national and international concern about terrorism. To address this 
threat, the President signed into law the Omnibus Diplomatic Security 
and Antiterrorism Act of 1986 [Pub. L. 99-399; 100 Stat. 889], Title IX 
of which constitutes the International Maritime and Port Security Act. 
That Act amended the Ports and Waterways Safety Act [33 U.S.C. 1221], 
and provided the Coast Guard authority to ``carry out or require 
measures, including inspections, port and harbor patrols, the 
establishment of security and safety zones, and the development of 
contingency plans and procedures, to prevent or respond to acts of 
terrorism'' [Sec. 906].
    The International Maritime Organization (IMO) adopted and published 
``Measures to Prevent Unlawful Acts Against Passengers and Crews on 
Board Ships,'' also in 1986. Those measures, which are guidelines, 
apply to passenger ships engaged on international voyages of 24 hours 
or more and to the port facilities that serve them. We, the Coast 
Guard, published a notice listing these measures as ``guidelines'' and 
encouraging voluntary compliance [52 FR 11587; April 9, 1987].
    Initially, the response was promising as many passenger vessels and 
associated passenger terminals operating in the U.S. began implementing 
the guidelines. However, we determined that voluntary compliance had 
not produced the industry-wide level of security necessary to ensure 
that acts of terrorism are deterred, or responded to, in the best 
possible manner. We have seen an increase in domestic terrorism along 
with a consistent, if not increasing, threat of international 
terrorism. For these reasons, the Secretary of the Department of 
Transportation asked all agencies of the Department to reassess their 
security procedures and standards. Consequently, we determined that 
implementing a rule to ensure that passenger vessels and passenger 
terminals are prepared to handle terrorist threats or actions was 
necessary.
    On July 18, 1996, the Coast Guard published [61 FR 37648] an 
interim rule requiring the development of Security Plans by passenger 
vessels and passenger terminals. The interim rule required all 
passenger vessels and passenger terminals covered by the rule to submit 
Plans by October 16, 1996.
    Implementation of the interim rule has been highly successful. The 
passenger vessels and passenger terminals affected by this rule have 
developed plans to ensure that passenger vessels and passenger 
terminals are prepared to handle terrorist threats or actions. 
Additionally, the Department of Transportation, the Coast Guard, and 
industry have cooperatively embarked on several related projects to 
enhance security for these vessels and terminals.

Discussion of Comments and Changes

1. General

    We received six comments on the interim rule, most of which 
expressed satisfaction with the rule as written.
    Several of the sections, and their headings, in Parts 120 and 128 
have been revised to reflect the new ``plain language'' style of 
regulations.

2. Definition of Terms Relative to Security Level

    Several comments expressed concern about the use of the terms 
``High Threat,'' ``Medium Threat,'' and ``Low Threat.'' They felt that 
these terms were confusing because many other agencies use the same 
terms with no commonality among the definitions.
    We agree that these terms are confusing and have changed ( 120.110 
of the rule by removing those terms and substituting three Security 
Levels with similar definitions.

3. Definitions of ``embarks'' and ``disembarks''

    There were also several comments expressing concern about the 
meaning of embarking and disembarking passengers. Some felt this meant 
only the initial embarkation or final debarkation of passengers. They 
recommended that the rule should be changed to define these terms.
    We do not agree. We consider the concepts embarking and 
disembarking to be clear and to need no further definition. ``Webster's 
New World Dictionary'' defines the terms embark and disembark as ``to 
put or take (passengers or goods) aboard a ship ...'' and ``to unload 
from or leave a ship ...'' respectively. Security is necessary anytime 
passengers or stores are placed on or taken off a vessel. The degree of 
security will vary depending on the location, the operation, and the 
perceived threat.

4. Other Types of Vessels

    One comment raised a question about the requirement of Security 
Plans for other types of vessels (such as tankers and cargo vessels) 
that also carry passengers for hire.
    At present, we do not require Plans for vessels whose primary 
service is not the carriage of passengers. In the future, should the 
degree of threat increase, we may amend this rule to encompass other 
vessels that handle passengers regardless of service.

5. Terminal Operators

    One comment raised the issue of who is the terminal operator, and 
the issue also arose during several meetings between industry and local 
Coast Guard Captains of the Port (COTPs).
    This issue (together with the issue of tonnage) led to the 
publication of the Notice of Policy on October 3, 1996. We understand 
that terminals differ in size and complexity. It is in the interest of 
all parties to allow for the submission of Security Plans for terminals 
by entities other than the terminals themselves. These Plans can be 
based upon legal contracts between vessels and terminals or upon 
responsibilities for absolute control over terminal areas. In some 
instances annexes to the Security Plan for vessels may substitute for 
Plans for terminals, with the approval of the COTPs, enabling vessels 
to operate in remote sites where typical terminal facilities do not 
exist. This will still provide a degree of security for their 
passengers commensurate with the reduced level of activity taking place 
in those sites. We have incorporated this policy clarification into 
this rule by inserting the text from the Notice of Policy into a new ( 
120.303 and a new ( 128.305, after renumbering ( 128.305 to 128.307, ( 
128.307 to 128.309, and ( 128.309 to 128.311.

6. Exemption from ``Freedom of Information Act''

    During the previous comment periods, many parties asked to have the 
required Security Plans exempted from requests under the ``Freedom of 
Information Act.'' The Coast Guard, in turn, asked Congress for express 
authority to withhold them.
    Congress granted this authority in the ``Coast Guard Authorization 
Act of

[[Page 53589]]

1996'' [Pub. L. 104-324], which exempts these plans from required 
disclosure to the public [( 302; 33 U.S.C. 1226(c)].

7. Plain Language

    In an effort to develop a more customer-oriented approach to 
drafting regulations, the Coast Guard will publish the final rule using 
``plain language'' techniques. Clear, more readable regulations are 
important for the success of our government's reinvention initiative.

Incorporation by Reference

    The Director of the Federal Register has approved the material in 
(( 120.220, 120.300, 128.220, and 128.300 from International Maritime 
Organization (IMO), MSC Circular 443, ``Measures to Prevent Unlawful 
Acts Against Passengers and Crews on Board Ships'', dated September 26, 
1986, for incorporation by reference effective October 16, 1996, under 
5 U.S.C. 552 and 1 CFR part 51. Copies of the material are available 
from the source listed in (( 120.120 and 128.120.

Regulatory Assessment

    This rulemaking is a significant regulatory action under section 
3(f) of Executive Order 12866. The Office of Management and Budget 
(OMB) reviewed the rulemaking under that Order. This final rule needs 
an assessment of potential cost and benefits under section 6(a)(3) of 
that Order. It is significant under the regulatory policies and 
procedures of the Department of Transportation [44 FR 11040 (February 
26, 1979)]. We prepared an Assessment, which is available in the docket 
for inspection or copying where indicated under ADDRESSES. A summary of 
the Assessment follows:
    We expect that this rule will affect about 137 passenger vessels 
and 53 passenger terminals. Of the vessels, about 134 are cruise 
vessels, each carrying in excess of 100 passengers and operating out of 
U.S. ports. Of the terminals, all serve these cruise vessels. There may 
be up to 40 more vessels and 20 more terminals that will be subject to 
this rule only on occasion. Such occasions could include where a vessel 
subject to this rule would schedule a port call outside its usual 
itinerary (i.e. for a special event), or if a vessel not usually 
subject to this rule was chartered for a voyage that would make it 
applicable. There are around 4 million passengers a year that will be 
subject to, and will benefit from, the security measures required by 
this rule.
    We estimate initial total implementing costs at $611,040. We 
estimate annual total operating costs at $30,768. If the number of 
passengers remains constant at about 4 million a year, the cost to 
consumers will be negligible.
    The potential exists for the loss of many lives and for significant 
property damage from even a single act of terrorism against a passenger 
vessel. Although the benefits of avoiding such an act cannot be exactly 
quantified, we assert that the benefits from this rule outweigh the 
costs.

Small Entities

    Under the Regulatory Flexibility Act [5 U.S.C. 601 et seq.], we 
must consider whether this final rule 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.
    Firms affected by this rulemaking are classified as ``Water 
Transportation of Passengers, N.E.C.'', Standard Industrial Code (SIC) 
#4489. According to 13 CFR Part 121, small businesses under this SIC 
are those firms that employ less than 500 people.
    Of the 137 passenger vessels affected by this rulemaking, the 
average displacement of each vessel is 31,050 gross tons. The average 
passenger capacity is 1,171 passengers and the crew size averages 440 
persons. All but 12 of these affected passenger vessels belong to a 
fleet of two or more vessels. The tonnage of the vessels, the crew 
size, and passenger capacity together suggest that the majority of 
these passenger vessels are not owned and operated by small entities.
    To ensure compliance with the Small Business Regulatory Enforcement 
Fairness Act, the Coast Guard analyzed the affected population to 
determine with more certainty the prospective impact upon small 
entities. The Passenger Vessel Association (PVA) was contacted to 
determine if any of the firms operating passenger vessels affected by 
this rulemaking were members. Approximately 98 percent of PVA members 
are unaffected small entities. Only one affected vessel was found to be 
operated by a PVA member, but its operator was not a small entity.
    The Coast Guard contacted companies which own and operate only one 
vessel. We determined that two of the single-vessel companies being 
affected by this rule are small entities and that two of the single-
vessel companies affected by this rule exceed the 500-employee 
threshold and were not small entities. Information on the remaining 
eight single-vessel companies was not made available to the Coast 
Guard. We concluded that this rule impacts at least two, and up to ten, 
small entities.
    The costs attributable to this rule are a function of the time it 
takes to perform security planning and surveys. Security requirements 
for small vessels and terminals will be less complex, and therefore 
less expensive to implement, than for large vessels and terminals. The 
reduced complexity will result in costs to small entities that are less 
than the relatively low average initial cost of $3,216 per vessel/
terminal and annual costs of $161 per vessel/terminal calculated for 
the rulemaking. Very few small entities are affected, in all likelihood 
no more than 10 firms, and the per-firm costs are quite low. 
Accordingly, the Coast Guard certifies under section 605(b) of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that this final rule 
will not have a significant economic impact on a substantial number of 
small entities.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 [Pub. L. 104-121], we offered through the interim 
rule to assist small entities to understand this final rule so they can 
better evaluate its effects on them and participate in the rulemaking. 
We received no comments in response to the interim rule on this matter.

Collection of Information

    This final rule provides for a collection of information under the 
Paperwork Reduction Act of 1995 [44 U.S.C. 3501 et seq.]. It requires 
the development of security plans for both passenger vessels and 
passenger terminals. It also requires the amendment of the plans to 
keep them current and the reporting of unlawful acts to the Coast 
Guard. It affects about 137 vessels and 53 terminals. During previous 
comment periods we received no comments concerning the collection of 
information.
    As required by 5 U.S.C. 3507(d), we submitted a copy of this rule 
to the Office of Management and Budget for its review of the collection 
of information. OMB has approved the collection. The sections are 
Secs. 120.220, 120.300, 128.220, 128.300, 128.305, and 128.309, and the 
control number for them is OMB Control Number 2115-0622, which expires 
on January 31, 2000.
    There is no requirement for persons to respond to a collection of 
information unless it displays a currently valid OMB control number.

[[Page 53590]]

Federalism

    We have analyzed this final rule under the principles and criteria 
contained in Executive Order 12612 and have determined that this rule 
does not have sufficient federalism implications to warrant the 
preparation of a Federalism Assessment.

Environment

    We have considered the environmental impact of this final rule and 
concluded that, under paragraph 2.B.2.e.(34) of Commandant Instruction 
M16475.1B, this rule is categorically excluded from further 
environmental documentation. This rule implements statutory authority 
of the Coast Guard in maritime safety. A ``Categorical Exclusion 
Determination'' is available in the docket for inspection or copying 
where indicated under ADDRESSES.

List of Subjects

33 CFR Part 120

    Passenger vessels, Incorporation by reference, Reporting and 
recordkeeping requirements, Security.

33 CFR Part 128

    Incorporation by reference, Reporting and recordkeeping 
requirements. Security, Waterfront facilities.

    Accordingly, the Coast Guard adopts with the following changes the 
interim rule amending 33 CFR parts 120 and 128, which was published at 
61 FR 37648 onJuly 18, 1996, as a final rule:

PART 120-SECURITY OF PASSENGER VESSELS

    1. The cite of authority for part 120 continues to read as follows:

    Authority: 33 U.S.C. 1231; 49 CFR 1.46.

    2. Revise the heading of Sec. 120.100 to read as follows:


Sec. 120.100  Does this part apply to me?

* * * * *
    3. In Sec. 120.110 remove definitions of ``High Threat,'' ``Low 
Threat,'' and ``Medium Threat,'' and add, in alphabetical order, 
definitions to read as follows:


Sec. 120.110  Definitions.

    As used in this part:
* * * * *
    Security Level I means the degree of security precautions to take 
when the threat of an unlawful act against a vessel or terminal is, 
though possible, not likely.
    Security Level II means the degree of security precautions to take 
when the threat of an unlawful act against a vessel or terminal is 
possible and intelligence indicates that terrorists are likely to be 
active within a specific area, or against a type of vessel or terminal.
    Security Level III means the degree of security precautions to take 
when the threat of an unlawful act against a vessel or terminal is 
probable or imminent and intelligence indicates that terrorists have 
chosen specific targets.
* * * * *
    We means the United States Coast Guard.
    You, unless otherwise specified, means the owner, operator, or 
charterer of a passenger vessel.
    4. Revise Sec. 120.200 to read as follows:


Sec. 120.200  What must my Vessel Security Program cover?

    (a) If this part applies to your passenger vessel, you must 
implement a program for that vessel that--
    (1) Provides for the safety and security of persons and property 
traveling aboard the vessel, against unlawful acts;
    (2) Prevents or deters the carriage aboard the vessel of any 
prohibited weapon, incendiary, or explosive, on or about any person or 
within his or her personal articles or baggage, and the carriage of any 
prohibited weapon, incendiary, or explosive, in stowed baggage, cargo, 
or stores;
    (3) Prevents or deters unauthorized access to the vessel and to 
restricted areas aboard the vessel;
    (4) Provides appropriate security measures for Security Levels I, 
II, and III that allow for increases in security when the Commandant or 
Captain of the Port (COTP) advises you that a threat of an unlawful act 
exists and may affect the vessel or any person aboard it;
    (5) Designates, by name, a security officer for the vessel;
    (6) Ensures that all members of the crew are adequately trained to 
perform their duties relative to security; and
    (7) Provides for coordination with terminal security while in port.
    (b) If this part applies to your passenger vessel, you must work 
with the operator of each terminal at which that vessel embarks or 
disembarks passengers, to provide security for the passengers and the 
vessel. You need not duplicate any provisions fulfilled by the terminal 
unless directed to by the Commandant. When a provision is fulfilled by 
the terminal, the applicable section of the Vessel Security Plan 
required by Sec. 120.300 must refer to that fact.
    5. Revise Sec. 120.210 and its heading to read as follows:


Sec. 120.210  What are the responsibilities of my vessel security 
officer?

    (a) If this part applies to your passenger vessel, you must 
designate a security officer for your vessel.
    (b) This officer must ensure that--
    (1) An initial comprehensive security survey is conducted and 
updated;
    (2) The Vessel Security Plan required by Sec. 120.300 is 
implemented and maintained, and amendments to correct its deficiencies 
and satisfy the security requirements for the vessel are proposed;
    (3) Adequate training for members of the crew responsible for 
security is provided;
    (4) Regular security inspections of the vessel are conducted;
    (5) Vigilance is encouraged, as well as is general awareness of 
security, aboard the vessel;
    (6) All occurrences or suspected occurrences of unlawful acts and 
related activities are reported under Sec. 120.220; and
    (7) Coordination, for implementation of the Vessel Security Plan 
required by Sec. 120.300, takes place with the terminal security 
officer at each terminal where the vessel embarks or disembarks 
passengers.
    6. Revise Sec. 120.220 to read as follows:


Sec. 120.220  What must I do to report an unlawful act and related 
activity?

    (a) Either you or the vessel security officer must report each 
breach of security, unlawful act, or threat of an unlawful act against 
any of your passenger vessels to which this part applies, or against 
any person aboard it, that occurs in a place subject to the 
jurisdiction of the United States. You must report the incident to both 
the COTP and to the local office of the Federal Bureau of Investigation 
(FBI). Also, if your vessel is a U.S.-flag vessel, you must report each 
such incident that occurs in a place outside the jurisdiction of the 
United States to the hotline of the Response Center of the Department 
of Transportation at 1-800-424-0201, or, from within metropolitan 
Washington, D.C., at 202-267-2675.
    (b) Either you or the vessel security officer must file a written 
report of the incident, using the form ``Report on an Unlawful Act,'' 
contained in IMO MSC Circular 443, which you or the officer must 
forward as soon as possible to Commandant (G-MOR), U.S. Coast Guard 
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001. You 
may initially file the report with Commandant (G-MOR) by fax at (202) 
267-4085 or -4065.
    7. Revise Sec. 120.300 to read as follows:


Sec. 120.300  What is required to be in a Vessel Security Plan?

    (a) If your passenger vessel is subject to this part, you must 
develop and

[[Page 53591]]

maintain, in writing, for that vessel, an appropriate Vessel Security 
Plan that--
    (1) Is unique to the vessel;
    (2) Articulates the program required by Sec. 120.200; and
    (3) Includes an appendix, for each port where the vessel embarks or 
disembarks passengers, that contains port-specific security 
information.
    (b) The Vessel Security Plan must be developed and maintained under 
the guidance in IMO MSC Circular 443, and must establish security 
measures to take for Security Levels I, II, and III, to--
    (1) Deter unauthorized access to the vessel and its restricted 
areas;
    (2) Deter the introduction of prohibited weapons, incendiaries, or 
explosives aboard the vessel;
    (3) Encourage vigilance, as well as general awareness of security, 
aboard the vessel;
    (4) Provide adequate training to members of the crew for security 
aboard the vessel;
    (5) Coordinate responsibilities for security with the operator of 
each terminal where the vessel embarks or disembarks passengers; and
    (6) Provide information to members of the crew and to law-
enforcement personnel, in case of an incident affecting security.
    (c) You must amend the Vessel Security Plan to address any known 
deficiencies.
    (d) You must restrict the distribution, disclosure, and 
availability of information contained in the Vessel Security Plan to 
those persons with an operational need to know.
    8. Add new Sec. 120.303 to read as follows:


Sec. 120.303  Who must submit a Terminal Security Plan?

    (a) You must submit a Terminal Security Plan whenever--
    (1) There is an agreement with the owner or operator of a terminal 
that you will submit the Plan;
    (2) You have exclusive use of the pier and terminal building 
immediately adjacent to the pier and have complete control of that 
area;
    (3) There is no terminal; or
    (4) Passengers embark or disembark but no baggage or stores are 
loaded or offloaded.
    (b) In the situations described in paragraphs (a)(3) and (4) of 
this section, you may, with the permission of the cognizant COTP, use 
an annex to the vessel's security plan instead of a Terminal Security 
Plan.
    (c) The owner or operator of a terminal must submit a Terminal 
Security Plan whenever--
    (1) There is an agreement with you that the owner or operator of 
the terminal will submit the Plan;
    (2) No security agreement exists; or
    (3) (i) At least one vessel other than a passenger vessel uses the 
terminal;
    (ii) More than one passenger vessel line uses the terminal; or
    (iii) The terminal loads or offloads baggage or stores.
    9. Revise Sec. 120.305 to read as follows:


Sec. 120.305   What is the procedure for examination?

    (a) You must submit two copies of each Vessel Security Plan 
required by Sec. 120.300, or of any Terminal Security Plan or annex 
required or permitted under Sec. 120.303 or Sec. 128.305 of this 
chapter, to the Commanding Officer, National Maritime Center (NMC), 
4200 Wilson Blvd., Suite 510, Arlington, Virginia 22203, for 
examination at least 60 days before embarking passengers on a voyage 
described in Sec. 120.100.
    (b) If the Commanding Officer of the NMC, finds that the Vessel 
Security Plan meets the requirements of Sec. 120.300, he or she will 
return a copy to you marked ``Examined by the Coast Guard.''
    (c) If the Commanding Officer of the NMC, finds that the Vessel 
Security Plan does not meet the requirements of Sec. 120.300, he or she 
will return the Plan with an explanation of why it does not meet them.
    (d) No vessel subject to this part may embark or disembark 
passengers in the United States, unless it holds either a Vessel 
Security Plan that we have examined or a letter from the Commanding 
Officer of the NMC, stating that we are currently reviewing the Plan 
and that normal operations may continue until we have determined 
whether the Plan meets the requirements of Sec. 120.300.
    10. Revise Sec. 120.307 to read as follows:


Sec. 120.307   What do I do if I need to amend my Vessel Security Plan?

    (a) If your passenger vessel is subject to this part, you must 
amend your Vessel Security Plan when directed by the Commanding Officer 
of the NMC, and may amend it on your own initiative.
    (b) You must submit each proposed amendment to the Vessel Security 
Plan you initiate, including changes to any appendix required by 
Sec. 120.300(a)(3), to the Commanding Officer of the NMC, for review, 
at least 30 days before the amendment is to take effect, unless he or 
she allows a shorter period. He or she will examine the amendment and 
respond according to Sec. 120.305.
    (c) The Commanding Officer of the NMC, may direct you to amend your 
Vessel Security Plan if he or she determines that implementation of the 
Plan is not providing effective security. Except in an emergency, he or 
she will issue you a written notice of matters to address and will 
allow you at least 60 days to submit proposed amendments.
    (d) If there is an emergency or other circumstance where the COTP 
determines that implementation of the Plan is not providing effective 
security, and the procedures in paragraph (c) of this section are 
impracticable, the COTP may give you an order to implement increases in 
security immediately. The order will incorporate a statement of the 
reasons for it.
    11. Revise Sec. 120.309 to read as follows:


Sec. 120.309   What is my right of appeal?

    Any person directly affected by a decision or action taken by the 
Commanding Officer of the NMC, under this part, may appeal that action 
or decision to the Assistant Commandant for Marine Safety and 
Environmental Protection [Commandant (G-M)] according to the procedures 
in 46 CFR 1.03-15.

PART 128--SECURITY OF PASSENGER TERMINALS

    12. The cite of authority for part 128 continues to read as 
follows:

    Authority: 33 U.S.C. 1231; 49 CFR 1.46.

    13. Revise the heading of Sec. 128.100 to read as follows:


Sec. 128.100   Does this part apply to me?

* * * * *
    14. Revise Sec. 128.110 to read as follows:


Sec. 128.110   Definitions.

    The definitions in part 120 of this chapter apply to this part, 
except for the definition of You. As used in this part:
    You means the owner or operator of a passenger terminal.
    15. Revise Sec. 128.200 to read as follows:


Sec. 128.200   What must my Terminal Security Plan cover?

    (a) If this part applies to your passenger terminal, you must 
implement for that terminal a program that--
    (1) Provides for the safety and security of persons and property in 
the terminal and aboard each passenger vessel subject to part 120 of 
this chapter moored at the terminal, against unlawful acts;
    (2) Prevents or deters the carriage aboard any such vessel moored 
at the

[[Page 53592]]

terminal of any prohibited weapon, incendiary, or explosive on or about 
any person or within his or her personal articles or baggage, and the 
carriage of any prohibited weapon, incendiary, or explosive in stowed 
baggage, cargo, or stores;
    (3) Prevents or deters unauthorized access to any such vessel and 
to restricted areas in the terminal;
    (4) Provides appropriate security measures for Security Levels I, 
II, and III that allow for increases in security when the Commandant or 
Captain of the Port (COTP) advises you that a threat of an unlawful act 
exists and may affect the terminal, a vessel, or any person aboard the 
vessel or terminal;
    (5) Designates, by name, a security officer for the terminal;
    (6) Provides for the evaluation of all security personnel of the 
terminal, before hiring, to determine suitability for employment; and
    (7) Provides for coordination with vessel security while any 
passenger vessel subject to part 120 of this chapter is moored at the 
terminal.
    (b) If this part applies to your passenger terminal, you must work 
with the operator of each passenger vessel subject to part 120 of this 
chapter, to provide security for the passengers, the terminal, and the 
vessel. You need not duplicate any provisions fulfilled by the vessel 
unless directed to by the COTP. When a provision is fulfilled by a 
vessel, the applicable section of the Terminal Security Plan required 
by Sec. 128.300 must refer to that fact.
    16. Revise Sec. 128.210 to read as follows:


Sec. 128.210  What are the responsibilities of my terminal security 
officer?

    (a) If this part applies to your passenger terminal, you must 
designate a security officer for the terminal.
    (b) This officer must ensure that--
    (1) An initial comprehensive security survey is conducted and 
updated;
    (2) The Terminal Security Plan required by Sec. 128.300 is 
implemented and maintained, and that amendments to correct its 
deficiencies and satisfy the security requirements of the terminal are 
proposed;
    (3) Adequate training for personnel responsible for security is 
provided;
    (4) Regular security inspections of the terminal are conducted;
    (5) Vigilance is encouraged, as well as is general awareness of 
security, at the terminal;
    (6) All occurrences or suspected occurrences of unlawful acts and 
related activities are reported under Sec. 128.220 and records of the 
incident are maintained; and
    (7) Coordination, for implementation of the Terminal Security Plan 
required by Sec. 128.300, takes place with the vessel security officer 
of each vessel that embarks or disembarks passengers at the terminal.
    17. Revise Sec. 128.220 to read as follows:


Sec. 128.220  What must I do to report an unlawful act and related 
activity?

    (a) Either you or the terminal security officer must report each 
breach of security, unlawful act, or threat of an unlawful act against 
the terminal, a passenger vessel subject to part 120 of this chapter 
destined for or moored at that terminal, or any person aboard the 
terminal or vessel, to the COTP, to the local office of the Federal 
Bureau of Investigation (FBI), and to the local police agency having 
jurisdiction over the terminal.
    (b) Either you or the terminal security officer must file a written 
report of the incident using the form ``Report on an Unlawful Act,'' 
contained in IMO MSC Circular 443, as soon as possible, to the local 
COTP.
    18. Revise Sec. 128.300 to read as follows:


Sec. 128.300  What is required to be in a Terminal Security Plan?

    (a) If your passenger terminal is subject to this part, you must 
develop and maintain, in writing, for that terminal, an appropriate 
Terminal Security Plan that articulates the program required by 
Sec. 128.200.
    (b) The Terminal Security Plan must be developed and maintained 
under the guidance in IMO MSC Circular 443 and must address the 
security of passengers aboard passenger vessels subject to part 120 of 
this chapter, of members of crews of such vessels, and of employees of 
the terminal, by establishing security measures to take for Security 
Levels I, II, and III, to--
    (1) Deter unauthorized access to the terminal and its restricted 
areas and to any passenger vessel moored at the terminal;
    (2) Deter the introduction of prohibited weapons, incendiaries, and 
explosives into the terminal and its restricted areas and onto any 
passenger vessel moored at the terminal;
    (3) Encourage vigilance, as well as general awareness of security, 
at the terminal;
    (4) Provide adequate security training to employees of the 
terminal;
    (5) Coordinate responsibilities for security with the operator of 
each vessel that embarks or disembarks passengers at the terminal; and
    (6) Provide information to employees of the terminal and to law-
enforcement personnel, in case of an incident affecting security.
    (c) You must amend the Terminal Security Plan to address any known 
deficiencies.
    (d) You must restrict the distribution, disclosure, and 
availability of information contained in the Terminal Security Plan to 
those persons with an operational need to know.
    19. Redesignate Secs. 128.305, 128.307, and 128.309 as 
Secs. 128.307, 128.309, and 128.311, respectively; add new Sec. 128.305 
to read as follows:


Sec. 128.305  Who must submit a Terminal Security Plan?

    (a) The owner or operator of the vessel must submit a Terminal 
Security Plan whenever--
    (1) There is an agreement with you that the owner or operator of 
the vessel will submit the Plan;
    (2) The owner or operator of the vessel has exclusive use of the 
pier and terminal building immediately adjacent to the pier and has 
complete control of that area;
    (3) There is no terminal; or
    (4) Passengers embark or disembark but no baggage or stores are 
loaded or offloaded.
    (b) In the situations described in paragraphs (a)(3) and (4) of 
this section, the owner or operator of the vessel may, with the 
permission of the cognizant COTP, use an annex to the vessel's security 
plan instead of a Terminal Security Plan.
    (c) You must submit a Terminal Security Plan whenever--
    (1) There is an agreement with the owner or operator of the vessel 
that you will submit the Plan;
    (2) No security agreement exists; or
    (3)(i) At least one vessel other than a passenger vessel uses the 
terminal;
    (ii) More than one passenger vessel line uses the terminal; or
    (iii) The terminal loads or offloads baggage or stores.
    20. Revise Sec. 128.307 to read as follows:


Sec. 128.307  What is the procedure for examination?

    (a) Unless a plan for your passenger terminal will be submitted by 
an entity other than yourself under Sec. 128.305 or Sec. 120.303 of 
this chapter, you must submit two copies of each Terminal Security Plan 
required by Sec. 128.300 to the COTP for examination at least 60 days 
before transferring passengers to or from a vessel subject to part 120 
of this chapter.
    (b) If the COTP finds that the Terminal Security Plan meets the 
requirements of Sec. 128.300, he or she will

[[Page 53593]]

return a copy to you marked ``Examined by the Coast Guard.''
    (c) If the COTP finds that the Terminal Security Plan does not meet 
the requirements of Sec. 128.300, he or she will return the Plan with 
an explanation of why it does not meet them.
    (d) No terminal subject to this part may transfer passengers to or 
from a passenger vessel subject to part 120 of this chapter, unless it 
holds either a Terminal Security Plan that we have examined or a letter 
from the COTP stating that we are currently reviewing the Plan and that 
normal operations may continue until the COTP has determined whether 
the Plan meets the requirements of Sec. 128.300.
    21. Revise Sec. 128.309 to read as follows:


Sec. 128.309  What do I do if I need to amend my Terminal Security 
Plan?

    (a) If your passenger terminal is subject to this part, you must 
amend your Terminal Security Plan when directed by the COTP, and may 
amend it on your own initiative.
    (b) You must submit each proposed amendment to the Terminal 
Security Plan you initiate to the COTP for review at least 30 days 
before the amendment is to take effect, unless he or she allows a 
shorter period. The COTP will examine the amendment and respond 
according to Sec. 128.307.
    (c) The COTP may direct you to amend your Terminal Security Plan if 
he or she determines that implementation of the Plan is not providing 
effective security. Except in an emergency, he or she will issue you a 
written notice of matters to address and will allow you at least 60 
days to submit proposed amendments.
    (d) If there is an emergency or other circumstance that makes the 
procedures in paragraph (c) of this section impracticable, the COTP may 
give you an order to implement increases in security immediately. The 
order will incorporate a statement of the reasons for it.
    22. Revise the heading of Sec. 128.311 to read as follows:


Sec. 128.311  What is my right of appeal?

* * * * *
    Dated: September 25, 1998.
James M. Loy,
Admiral, U.S. Coast Guard Commandant.
[FR Doc. 98-26578 Filed 10-5-98; 8:45 am]
BILLING CODE 4910-15-P