[Federal Register Volume 64, Number 21 (Tuesday, February 2, 1999)]
[Rules and Regulations]
[Pages 4981-4984]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2359]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 1 and 10

[USCG-1998-3824]
RIN 2115-AF58


Maritime Course Approval Procedures

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: The Coast Guard issues a final rule revising the regulations 
that govern Maritime Course Approval Procedures. The rule streamlines 
the process by which courses are submitted to and reviewed by the Coast 
Guard. The rule also adds a mechanism to allow us to suspend or 
withdraw approvals for courses. Although the current regulations govern 
training schools with approved courses, only a methodology for course 
approval is provided. Revising the regulations to include suspension 
and withdrawal procedures will motivate schools to maintain a uniformly 
high standard, improve compliance with course approval regulations, and 
ultimately promote public safety.

DATES: This final rule is effective on March 4, 1999.

ADDRESSES: Documents as indicated in this preamble are available for 
inspection or copying at the Docket Management Facility, (USCG-1998-
3824), U.S. Department of Transportation, room PL-401, 400 Seventh 
Street SW., Washington, DC 20590-0001.

FOR FURTHER INFORMATION CONTACT: For questions on this rule, contact 
James Cavo, National Maritime Center (NMC), 703-235-0018. For questions 
on viewing, or submitting material to, the docket, contact Dorothy 
Walker, Chief, Dockets, Department of Transportation, telephone 202-
366-9329.

SUPPLEMENTARY INFORMATION:

Regulatory History

    On May 13, 1998, the Coast Guard published a notice of proposed 
rulemaking (NPRM) entitled ``Maritime Course Approval Procedures'' in 
the Federal Register (63 FR 26566). The Coast Guard received eight 
comments in response to the proposed rulemaking.

Background and Purpose

    Regulations for merchant mariner course approvals have been in 
place for several years and are found in 46 CFR part 10. Courses were 
first approved for education mandated by regulation such as radar 
observer, fire-fighting, and first aid. Courses were then approved for 
formal training instead of required sea service for both renewal and 
raise in grade of a license or an endorsement, and to substitute for a 
Coast Guard examination.
    With the publication of a Focus Group Study, Licensing 2000 and 
Beyond in 1993, the Coast Guard began approving courses to substitute 
for certain modules of examination, especially for lower level 
licenses. Now, with the implementation of the 1995 Amendments to the 
International Convention on Standards of Training, Certification and 
Watchkeeping for Seafarers, 1978 (STCW) of the International Maritime 
Organization (IMO), requirements for basic entry-level education, 
structured shipboard training programs, and specific assessment 
protocols, the course approval burden has increased considerably.
    Presently, the Coast Guard has approved in excess of 700 courses 
presented by over 225 schools and the number is growing weekly. As part 
of a Quality Standard System (QSS), Coast Guard Regional Examination 
Centers (RECs) are charged with oversight of these widespread training 
institutions.
    The majority of schools consistently operate according to the 
regulations governing course approvals. There are times, however, when 
audits of a particular school show evidence of infractions ranging from 
incomplete recordkeeping to major deficiencies dealing with examination 
tampering, operating outside the conditions of the course approval, and 
outright misrepresentation of course material. Some primary reasons for 
suspending or withdrawing a course approval include (but are not 
limited to):
     Failure to comply with the provisions of the course 
approval.
     Failure to comply with the provisions of parts 10, 12, 13 
or 15 of Title 46, Code of Federal Regulations (46 CFR) especially Part 
10, Subpart C.
     Scheduling and teaching an approved course at a location 
other than the site requested in the application for approval and 
authorized in the approval letter unless prior site approval is 
requested of and granted by the Officer in Charge, Marine Inspection 
(OCMI) of the Regional Exam Center in whose area of responsibility the 
``remote site'' is located.
     Not adhering to the approved length of the course; cutting 
short instructional time on a daily or weekly basis. Substituting 
``homework'' or ``preparation time,'' either on computer-based 
questions or artificially drawn-out plotting exercises for quality 
classroom instructional contact hours.
     Using unqualified instructors, substandard facilities or 
otherwise presenting the course in a manner that is not sufficient for 
or conducive to achieving the learning objectives of the course.
     Not giving a final (end-of-course) exam equal in scope and 
difficulty to the Coast Guard exam for that particular license or 
endorsement. Also, for not giving a final exam or a ``re-take'' exam 
which is totally different than any homework, classroom ``practice 
exercise'' or exam previously viewed by the student.
     Issuing certificates of course completion to students who 
have not demonstrated competency or who have not otherwise met the 
course requirements.
     Advertising, holding a course, or issuing certificates of 
course completion to students as having passed a course of instruction 
for which the school does not hold a valid Coast Guard approval.
     Assisting a student in passing the final (end-of-course) 
exam by either directly or indirectly providing any assistance 
including, but not limited to, supplying answers, hinting at the 
correct answer, grading and returning the exam for completion and 
indicating that certain answers or choices are incorrect prior to 
grading.
     Giving a student a final (end-of-course) exam orally. The 
authority to give an oral examination rests with the OCMI per 46 CFR 
10.205.
     Allowing a student to enroll or join the course after the 
beginning of course instruction.
    In order to prevent these infractions, and ensure the integrity of 
Coast Guard approved courses, the Coast Guard is issuing this rule to 
establish suspension, withdrawal, and appeal provisions in our 
regulations.

Discussion of Comments and Changes

    The Coast Guard is substituting the words ``withdraw,'' 
``withdrawn,'' and ``withdrawal'' wherever the words ``revoke,'' 
``revoked,'' and ``revocation'' were used in the NPRM and in the 
regulatory text of sections 1.03-15, 1.03-45, and 10.302. This is being 
done for clarity and to avoid any confusion with the suspension and 
revocation

[[Page 4982]]

provisions of 46 CFR 1.10-20, which are not applicable to maritime 
course approvals. This does not substantively change the regulatory 
text.
    The Coast Guard received a total of eight comment letters 
responding to the NPRM, of these, two letters were identical in content 
and filed by the same entity and were considered as a single comment 
letter. Two comments recommended public meetings citing potential 
impact on maritime educators. As only four maritime educators commented 
on the NPRM, no public meetings were held. Following is a discussion of 
comments received.

1. General Comments

    The majority of the comments supported the NPRM and did not 
recommend major changes. Two comments expressed strong support and felt 
that the ``suspension and revocation'' provisions (now labeled 
withdrawal) were necessary to ensure the quality and integrity of 
mariner training. One comment felt the Coast Guard should use this 
rulemaking to change the way in which it administers Merchant Marine 
license examinations. Such an undertaking is beyond the scope of this 
rulemaking.

2. Course Expiration

    Four comments expressed confusion or concern regarding the 
expiration of a course approval when the school no longer offers the 
course. Two comments suggested that this apply only when the training 
organization informs the Coast Guard that it would no longer be 
offering the course or that the school be provided an opportunity to 
confirm that it no longer will offer the course. The Coast Guard agrees 
that the proposed language was potentially confusing and has revised 
section 10.302, paragraphs (c) and (d), to indicate that a course 
approval will terminate when the school notifies the Coast Guard that 
it will no longer offer the course.
    One comment suggested that section 10.302, paragraphs (c) and (d), 
be amended to provide for revocation when a school is acquired by 
another school, but continues to offer its courses using the same 
facilities and instructors. Because Section 10.302, paragraphs (c) and 
(d), already provide that a course approval or renewal of approval 
expire upon any change in ownership of the school, no changes were made 
in response to this comment.
    One comment suggested the rulemaking be expanded to specifically 
address procedures to be followed when adding instructors and 
facilities to a course approval, selling approved courses, or 
franchising approved courses. These issues are beyond the scope of this 
rulemaking.

3. Suspension and Withdrawal of Course Approvals

    One comment suggested deleting the provision in the proposed rule 
that a course approval be suspended for failure to comply with 
applicable portions of the Code of Federal Regulations if the Coast 
Guard fails to ensure that the course meets parts 10, 12, 13 or 15 of 
Title 46, Code of Federal Regulations (46 CFR) prior to approval, 
noting that the school would not be able to bring the course into 
compliance without violating the terms of the course approval. The 
Coast Guard disagrees. If a training organization wishes to make 
changes to an approved course, for any reason, it must obtain written 
approval from the National Maritime Center to do so. If the Coast Guard 
becomes aware that a course that does not meet applicable regulations 
was erroneously approved, the approval holder will be given a 
reasonable time period to make any required changes before the approval 
is suspended. If changes to regulations impact on an already approved 
course, the approval holder would also be given a reasonable period in 
which to modify the course to bring it into compliance with the 
regulations.
    One comment suggested that section 10.302, paragraph (e), identify 
the specific office of the Coast Guard that will determine whether a 
course is not in compliance with applicable regulations. The Coast 
Guard disagrees. Such a determination may be made by a number of Coast 
Guard offices, including an OCMI, the National Maritime Center or their 
representatives. Whether or not suspension or withdrawal action will be 
taken will be determined by the cognizant OCMI or the National Maritime 
Center, as provided for by this rule.
    Two comments stated that the determination that a course is being 
presented in a manner that is insufficient to achieve learning 
objectives be made by person(s) with expertise in the subject area. The 
Coast Guard agrees, but does not feel a change to the proposed rule is 
necessary. The decision to suspend or withdraw a course approval will 
be made with input from subject matter experts at the National Maritime 
Center.
    Three comments stated that a training organization should be given 
an opportunity to correct any deficiencies prior to suspension. The 
Coast Guard agrees, but does not believe that a change to the proposed 
rule is needed. The rule clearly provides that an approval holder will 
be given an opportunity to correct deficiencies before suspension by 
the OCMI. Upon suspension by the OCMI, the NMC may also grant the 
approval holder an opportunity to correct the problem(s).
    Three comments felt the OCMI should only have the authority to 
issue warnings or to place a school on probation. The Coast Guard 
disagrees. As previously discussed, a warning and the opportunity to 
correct deficiencies will be given before the OCMI suspends a course 
approval. Two of the comments expressed concern over the ``nationwide'' 
impact a suspension by an OCMI would have on an approval holder. This 
is a necessary safeguard to ensure the integrity of training. The 
authority to suspend a course approval should not be confined only to 
the OCMI's zone.
    One comment stated that the specific examples given in the NPRM 
that might result in a suspension or withdrawal of a course approval 
were misleading as the examples were all different examples of not 
following the course curriculum. The Coast Guard disagrees. The 
examples given are intended to provide guidance on what action by a 
training organization would be considered grounds for suspension. The 
Coast Guard does not believe a change to the proposed rule is necessary 
and considers the cited examples to be indicative of, but not exclusive 
of, the conduct that might result in a suspension or withdrawal of 
course approval.
    One comment suggested that students be permitted to join a course 
in progress if they will make up the lost hours. The Coast Guard may 
permit this for ``modular'' courses if doing so will not compromise the 
achievement of learning objectives. However, this is a determination 
that must be made after a review of the specific course. Such a 
provision may be proposed by a training organization in its original 
course approval request or by a request to modify an existing approved 
course.
    One comment stated that a course approval should not be suspended 
or withdrawn for scheduling and teaching a course at an unapproved 
location as this does not effect the content of the course. The Coast 
Guard disagrees. Site approvals are given after an inspection of the 
proposed facility and only if the proposed facility is adequate for the 
proposed use and the achievement of a course's learning objectives. 
Schools are required to obtain written approval for any change in 
facilities or to conduct the course at a new or remote location as a 
requirement of the course approval. Failure to follow any condition

[[Page 4983]]

specified in the course approval may lead to suspension.
    One comment felt that withdrawal of all of a school's course 
approvals when there is a demonstrated history of failing to comply 
with course approval requirements is a necessary safeguard to protect 
the quality of mariner training, while another felt this authority had 
too much potential abuse. The Coast Guard believes that the appeal 
mechanism provides adequate safeguards against abuse. The Coast Guard 
considers this an appropriate action when an approval holder has 
consistently failed to comply with requirements. As another comment 
noted, this action is only for extraordinary circumstances. The 
situations in which this action would be used will be specified in 
National Maritime Center Policy Letters and/or the Coast Guard Marine 
Safety Manual.

4. Changes to Approved Course Curriculum

    One comment suggested that a request to modify the curriculum of an 
approved course be deemed approved if the National Maritime Center 
fails to respond to the request within 3 weeks. The Coast Guard 
disagrees. The National Maritime Center has established a program goal 
of responding to all requests for course approval, renewal of approval 
or modifications to an approved course in a timely manner. A training 
organization may not change its approved curriculum, facilities or 
instructors without written approval from the Commanding Officer, 
National Maritime Center.

5. Suspensions and Withdrawal Procedures and Appeals

    Two comments suggested that the suspension and withdrawal process 
be amended to include an impartial arbiter such as a district hearing 
officer or administrative law judge. The Coast Guard disagrees. The 
rule gives the cognizant OCMI the authority to suspend a course 
approval, and the Commanding Officer of the National Maritime Center 
the authority to withdraw a course approval. The National Maritime 
Center provides oversight, establishes guidelines and determines policy 
for Coast Guard approved courses, and the OCMI monitors the various 
courses offered by the schools. The National Maritime Center and the 
OCMI are in the best position to determine when a school is failing to 
meet its obligations and can work with a school to ensure the highest 
standards are maintained. Most schools operate within our regulations, 
and suspension and withdrawal procedures are initiated only in those 
rare instances when a school deviates from the norm. No changes were 
made to the rule in response to these comments.
    One comment suggested that appeals of course approval decisions to 
the Commandant be addressed to the Commandant (G-MO) so that the 
Commanding Officer, National Maritime Center is not the recipient for 
these appeals. The Coast Guard does not feel a change to the proposed 
rule is necessary. This rule provides that appeals of course approval 
issues are to be made to the Commandant (G-MO) via the Commanding 
Officer, National Maritime Center. The recipient of appeals under this 
section is the Commandant (G-MO). As addressee, National Maritime 
Center will forward the appeal and all relevant documents from its 
files, and provide other assistance as requested.

Regulatory Evaluation

    This rule is not a significant regulatory action under section 3(f) 
of Executive Order 12866 and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that Order. It 
has not been reviewed by the Office of Management and Budget under that 
Order. It is not significant under the regulatory policies and 
procedures of the Department of Transportation (DOT) (44 FR 11040; 
February 26, l979). The Coast Guard expects the economic impact of this 
rule to be so minimal that a full Regulatory Evaluation under paragraph 
10e of the regulatory policies and procedures of DOT is unnecessary.
    Course approval suspensions, withdrawals, or expirations do not 
impose specific requirements on any course holder. Rather, this rule 
establishes a standard enforcement method for the rare number of course 
approval holders who do not comply with applicable statutes, 
regulations, and the terms of course approval.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
Coast Guard considers whether this rule, if adopted, would 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 small entities affected by this rule are privately owned and 
operated schools with one to several employees, community colleges, and 
maritime labor union owned and operated schools. Suspension or 
withdrawal of an approval for a course or courses depends on the nature 
and severity of the infraction.
    We realize that most schools operate within the confines of course 
approval regulations, guidelines and letters. This rule would provide a 
standard mechanism, in regulation, for the rare instances when a school 
might deviate from those course approval regulations, guidelines and 
letters. Also, this rule would provide an opportunity for the approval 
holder to correct any deficiencies prior to revocation.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this proposed rule, if adopted, will not have a significant economic 
impact on a substantial number of small entities.

Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-121), the Coast Guard 
will provide assistance to small entities to determine how this rule 
applies to them. If you are a small business and need assistance 
understanding the provisions of this rule, please contact James Cavo, 
703-235-0018.
    The Small Business and Agriculture Regulatory Enforcement Ombudsman 
and 10 Regional Fairness Boards were established to receive comments 
from small businesses about Federal agency enforcement actions. The 
Ombudsman will annually evaluate the enforcement activities and rate 
each agency's responsiveness to small business. If you wish to comment 
on the enforcement actions of the Coast Guard, call 1-888-REG-FAIR (1-
888-734-3247).

Collection of Information

    This rule contains no new collection-of-information requirements 
under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

Federalism

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

Environment

    The Coast Guard considered the environmental impact of this rule 
and concluded that, under figure 2-1, paragraph (34)(a) of Commandant 
Instruction M16475.lC, this rule is categorically excluded from further 
environmental documentation. This exclusion is in accordance with 
paragraph (a), concerning regulations

[[Page 4984]]

that are procedural. A ``Categorical Exclusion Determination'' is 
available in the docket for inspection or copying where indicated under 
ADDRESSES.

List of Subjects

46 CFR Part 1

    Administrative practice and procedure, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements.

46 CFR Part 10

    Reporting and recordkeeping requirements, Schools, Seamen.

    For the reasons discussed in the preamble, the Coast Guard amends 
46 CFR parts 1 and 10 as follows:

PART 1--ORGANIZATION, GENERAL COURSE AND METHODS GOVERNING MARINE 
SAFETY FUNCTIONS

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

    Authority: 5 U.S.C. 552; 14 U.S.C. 633; 46 U.S.C. 7701; 49 CFR 
1.45, 1.46; Sec. 1.01-35 also issued under the authority of 44 
U.S.C. 3507.

    2. In Sec. 1.03-15, revise paragraph (h)(3) to read as follows:


Sec. 1.03-15  General.

* * * * *
    (h) * * *
    (3) Commanding Officer, National Maritime Center, for appeals 
involving vessel documentation issues, tonnage issues, and suspension 
or withdrawal of course approvals.
* * * * *
    3. Revise Sec. 1.03-45 to read as follows:


Sec. 1.03-45  Appeals from decisions or actions involving documentation 
of vessels and suspension or withdrawal of course approvals.

    Any person directly affected by a decision or action of an officer 
or employee of the Coast Guard acting on or in regard to the 
documentation of a vessel under part 67 or suspension or withdrawal of 
course approvals under part 10 of this chapter, may make a formal 
appeal of that decision or action to the Commandant (G-MO) via the 
Commanding Officer, National Maritime Center, in accordance with 
procedures contained in Secs. 1.03-15 through 1.03-25 of this subpart.

PART 10--LICENSING OF MARITIME PERSONNEL

    4. 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.

    5. In Sec. 10.302, in paragraphs (c) and (d), remove the word 
``revoked'' and add, in its place, the word ``withdrawn''; immediately 
preceding the words ``or on the date of'', add the words ``when the 
school closes, when the school gives notice that it will no longer 
offer the course,''; revise paragraph (a) introductory text; and add 
paragraphs (e), (f), and (g) to read as follows:


Sec. 10.302  Course approval.

    (a) The Coast Guard approves courses satisfying regulatory 
requirements and those that substitute for a Coast Guard examination or 
a portion of a sea service requirement. The owner or operator of a 
training school desiring to have a course approved by the Coast Guard 
shall submit a written request to the Commanding Officer, National 
Maritime Center, NMC-4B, 4200 Wilson Boulevard, Suite 510, Arlington, 
VA 22203-1804, that contains:
* * * * *
    (e) Suspension of approval. If the Coast Guard determines that a 
specific course does not comply with the provisions of 46 CFR parts 10, 
12, 13 or 15, or the requirements specified in the course approval; or 
substantially deviates from the course curriculum package as submitted 
for approval; or if the course is being presented in a manner that is 
insufficient to achieve learning objectives; the cognizant OCMI may 
suspend the approval, may require the holder to surrender the 
certificate of approval, if any, and may direct the holder to cease 
claiming the course is Coast Guard approved. The Cognizant OCMI will 
notify the approval holder in writing of its intention to suspend the 
approval and the reasons for suspension. If the approval holder fails 
to correct the reasons for suspension, the course will be suspended and 
the matter referred to the Commanding Officer, National Maritime 
Center. The Commanding Officer, National Maritime Center, will notify 
the approval holder that the specific course fails to meet applicable 
requirements, and explain how those deficiencies can be corrected. The 
Commanding Officer, National Maritime Center, may grant the approval 
holder up to 60 days in which to correct the deficiencies.
    (f) Withdrawal of approval. (1) The Commanding Officer, National 
Maritime Center, may withdraw approval for any course when the approval 
holder fails to correct the deficiency(ies) of a suspended course 
within a time period allowed under paragraph (e) of this section.
    (2) The Commanding Officer, National Maritime Center, may withdraw 
approval of any or all courses by an approval holder upon a 
determination that the approval holder has demonstrated a pattern or 
history of:
    (i) Failing to comply with the applicable regulations or the 
requirements of course approvals;
    (ii) Substantial deviations from their approved course curricula; 
or
    (iii) Presenting courses in a manner that is insufficient to 
achieve learning objectives.
    (g) Appeals of suspension or withdrawal of approval. Anyone 
directly affected by a decision to suspend or withdraw an approval may 
appeal the decision to the Commandant via the Commanding Officer, 
National Maritime Center, as provided in Sec. 1.03-45 of this chapter.
    6. In Sec. 10.303, revise paragraph (e) to read as follows:


Sec. 10.303  General standards.

* * * * *
    (e) Not change its approved curriculum unless approved, in writing, 
after the request for change has been submitted in writing to the 
Commanding Officer, National Maritime Center (NMC-4B).
* * * * *
    Dated: January 20, 1999.
Robert C. North,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety 
and Environmental Protection.
[FR Doc. 99-2359 Filed 2-1-99; 8:45 am]
BILLING CODE 4910-15-P