[Federal Register Volume 63, Number 198 (Wednesday, October 14, 1998)]
[Rules and Regulations]
[Page 55039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27350]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 351

[Docket No. (MARAD-98-4433)]
RIN 2133-AB35


Use of Brokerage Firms as Depositories Under the Capital 
Construction Fund Program

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Maritime Administration (MARAD) is amending its existing 
regulations to approve brokerage firms, under certain conditions, as 
acceptable depositories under the Capital Construction Fund (CCF) 
program. Since CCF fund holders may invest CCF funds in securities, 
brokerage firms should also be considered as acceptable depositories, 
under certain conditions.

EFFECTIVE DATE: October 16, 1998.

FOR FURTHER INFORMATION CONTACT: Philip Budwick, Division of Maritime 
Assistance Programs, Office of Chief Counsel, Maritime Administration, 
Room 7228, 400 7th Street, SW, Washington, DC 20590 (Telephone 202-366-
5167; Fax 202-366-7485).

SUPPLEMENTARY INFORMATION:

Background

    The CCF program assists owners and operators of U.S.-flag vessels 
in accumulating capital for the construction, reconstruction, or 
acquisition of vessels through the deferment of Federal income taxes on 
certain deposits of money or other property placed into a CCF fund. 
Money placed into a CCF fund may be held in interest earning accounts 
or invested in securities, such as stocks and bonds, and such funds, as 
well as accumulated interest and earnings, may be used to construct, 
reconstruct, or acquire qualified vessels. CCF funds are held in 
depositories approved under the relevant regulations or as individually 
approved by the Maritime Administration
    The regulations at 46 CFR part 351 provide that any depository 
which is a member of the Federal Deposit Insurance Corporation (FDIC) 
will be approved as a depository for any authorized maritime program, 
including the CCF program. Part 351 applies a general approach for 
approval of depositories under several maritime programs and is a 
general, but not exclusive, qualification for CCF depositories. It does 
not take into account the unique aspects of the CCF program, i.e., the 
statutory provisions regarding investment of CCF funds in securities. 
Since CCF fund holders may invest CCF funds in securities, brokerage 
firms should also be considered as acceptable depositories, under 
certain conditions. MARAD is hereby amending its regulations to allow 
CCF fund holders to select brokerage firms as acceptable depositories.

Rulemaking Analysis and Notices

Executive Order 12866 (Regulatory Planning and Review), Department of 
Transportation Regulatory Policies and Procedures, and Pub. L. 104-121

    This rulemaking is not considered to be an economically significant 
regulatory action under section 3(f) of Executive Order 12866, and is 
also not considered a major rule for purposes of Congressional review 
under Pub. L. 104-121, 5 U.S.C. 804. It is not considered to be a 
significant rule under the Department's Regulatory Policies and 
Procedures (44 FR 11034; February 26, 1979). Accordingly, it has not 
been reviewed by the Office of Management and Budget.
    MARAD has determined that this rulemaking presents no substantive 
issue which it could reasonably expect to produce meaningful public 
comment since it is merely conforming its regulations to the statutory 
provisions of the CCF program found at 46 App. U.S.C. 1177(c). 
Accordingly, MARAD has determined that the notice and public comment 
procedure otherwise required by the Administrative Procedure Act, 5 
U.S.C. 553(c), is unnecessary and good cause exists, pursuant to 5 
U.S.C. 553(d)(3), to make the changes effective 2 days after 
publication.

Federalism

    MARAD has analyzed this rulemaking in accordance with principles 
and criteria contained in Executive Order 12612 and has determined that 
these regulations do not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment.

Regulatory Flexibility

    The Maritime Administrator certifies that this rulemaking will not 
have a significant economic impact on a substantial number of small 
entities.

Environmental Assessment

    MARAD has concluded that this rulemaking would have no 
environmental impact and that an environmental impact statement is not 
required under the National Environmental Policy Act of 1969.

Paperwork Reduction Act

    This rulemaking contains no reporting requirement that is subject 
to OMB approval under 5 CFR part 320, pursuant to the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501. et seq.).

List of Subjects in 46 CFR Part 351

    Depositories, Maritime carriers.

    Accordingly, Part 351 of 46 CFR Chapter II, Subchapter J is amended 
as follows:

PART 351--DEPOSITORIES

    1. The authority citations following Secs. 351.1 and 351.2 are 
removed, and an authority citation is added to part 351 to read as 
follows:

    Authority: Sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114.

    2. Section 351.2, Qualification of depository, is amended by 
revising paragraph (a) to read as follows:


Sec. 351.2  Qualification of depository.

    (a) General qualification. Any depository which is a member of the 
Federal Deposit Insurance Corporation will be approved for deposit of 
funds under the maritime programs authorized by the Act. With respect 
to the Capital Construction Fund program, any depository which is a 
member of the Securities Investor Protection Corporation, and is 
organized as a corporation under the laws of the United States, any 
State, territory, or possession thereof or the District of Columbia, 
will also be approved for the deposit of funds.
* * * * *
    Dated: October 6, 1998.

    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary.
[FR Doc. 98-27350 Filed 10-13-98; 8:45 am]
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