[Federal Register Volume 64, Number 77 (Thursday, April 22, 1999)]
[Notices]
[Pages 19850-19852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10113]


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

DEPARTMENT OF TRANSPORTATION

Coast Guard
[USCG-1999-5543]


Study of the Implementation and Enforcement of Safety Management 
System (SMS) regulations, complying with the International Safety 
Management (ISM) Code

AGENCY: Coast Guard, DOT.

ACTION: Notice of meeting; request for comments.

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

SUMMARY: The Coast Guard will hold a public meeting to discuss how we 
intend to study the implementation and enforcement of the International 
Safety Management (ISM) Code and the impact that Safety Management 
Systems (SMSs) are having on marine safety and environmental 
protection. The study will measure the effectiveness of vessel and 
company SMSs and identify actions that could be taken to further 
promote the use and effective implementation of the ISM Code. The Coast 
Guard encourages interested parties to attend the meeting and submit 
comments for discussion during the meeting, and seeks written comments 
from any party who is unable to attend the meeting.

DATES: The public meeting will be held on May 14, 1999, from 9:30 a.m. 
to 2 p.m. The meeting may close early if all business is finished. 
Written material for discussion during the meeting should reach the 
Docket Management Facility on or before May 7, 1999. Comments and 
related material must reach the Docket Management Facility on or before 
May 31, 1999.

ADDRESSES: The public meeting will be held at the U.S. Coast Guard 
Headquarters Transpoint Building, room 2415, 2100 Second Street SW., 
Washington, DC 20593-0001. The telephone number is 202-267-1181.
    You may submit your comments and related material by only one of 
the following methods:
    (1) By mail to the Docket Management Facility, (USCG-1999-5543), 
U.S. Department of Transportation, room PL-401, 400 Seventh Street SW., 
Washington, DC 20590-0001.
    (2) By hand to room PL-401 on the Plaza level of the Nassif 
Building, 400 Seventh Street SW, Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    (3) By fax to the Docket Management Facility at 202-493-2251.
    (4) Electronically through the Web Site for the Docket Management 
System at http://dms.dot.gov.
    The Docket Management Facility maintains the public docket for this 
notice. 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 on the Plaza Level of the Nassif Building at the 
same address between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays. You may electronically access the public docket for 
this rulemaking on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For information concerning this notice 
or public meeting, contact Mr. Bob Gauvin, Project Manager, Vessel and 
Facility Operating Standards Division (G-MSO-2), Coast Guard, 202-267-
1053. For questions on viewing or submitting material to the docket, 
contact Dorothy Walker, Chief, Documentary Services Division, U.S. 
Department of Transportation, telephone 202-366-9329.

SUPPLEMENTARY INFORMATION:

Request for Comments

    The Coast Guard (``We'') encourages you to participate in this 
study by submitting comments and related material, and by attending the 
public meeting. If you submit written comments, please include your 
name and address, identify the docket number for this study (USCG-1999-
5543), indicate the specific section of this document to which each 
comment applies, and give the reason for each comment. You may submit 
your comments and material by mail, hand, fax, or electronic means to 
the Docket Management Facility at the address under ADDRESSES; but 
please do not submit the same comment or material by more than one 
means.
    If you submit them by mail or hand, submit them in an unbound 
format, no larger than 8\1/2\ by 11 inches, suitable for copying and 
electronic filing. If you submit them by mail and would like to know 
they were received, please enclose a stamped, self-addressed postcard 
or envelope.
    We will consider all comments and material received during the 
comment period for the study report.

Public Meeting

    This meeting is open to the public. Please note that the meeting 
may close

[[Page 19851]]

early if all business is finished. Members of the public may make oral 
presentations during the meeting. If you would like to make an oral 
presentation at the meeting, please notify Mr. Bob Gauvin at 202-267-
1053 no later than May 7, 1999.
    We will begin the public meeting with a brief presentation 
discussing the actions taken to date by the Coast Guard to develop and 
enforce regulations and policy for the implementation of SMSs, as well 
as ISM Code requirements for certification. The presentation will 
include a brief synopsis of the Coast Guard's planned actions to 
complete the study.
    On completion of the Coast Guard presentation, we will read any 
written comments received before the public meeting to those attending 
and into the record of the meeting. We will then give the attendees 
time to speak on their concerns and interest regarding this issue and 
the study. After the attendees complete their oral presentations, we 
may open up discussions about concerns voiced repeatedly during the 
comment period of the meeting. These discussions may request input on 
the Coast Guard's planned actions to complete the study and 
recommendations from the attendees on how we can best research 
information from those companies using SMSs in their shore and vessel 
operations.

Information on Service for Individuals With Disabilities

    For information on facilities or services for individuals with 
disabilities or to request special assistance at the meeting, contact 
Mr. Bob Gauvin at the address or phone number under FOR FURTHER 
INFORMATION CONTACT as soon as possible.

Background and Purpose

    The ISM Code is enforced by the Coast Guard in compliance with 
regulations in Title 33, Code of Federal Regulations, part 96 (33 CFR 
part 96), and Chapter IX of the International Convention for the Safety 
of Life at Sea (SOLAS). Navigation and Vessel Inspection Circulars No. 
2-94 (NVIC 2-94) and No. 4-98 (NVIC 4-98) provide the Coast Guard's 
enforcement policy. Both of these NVICs may be read or downloaded from 
the Coast Guard's publication homepage on the Internet at http://
www.uscg.mil/hq/g-m/index.htm.
    In July 1998, the Coast Guard began recognizing classification 
societies to issue certification for and ensure compliance with the ISM 
Code for shipping companies and certain vessels, with the approval of 
the International Maritime Organization (IMO). The ISM Code addresses 
the importance of designated persons and various responsibilities of 
the master and maritime company and requires consistent documentation 
and monitoring of management procedures, actions and practices 
implemented in accordance with governmental and company requirements. 
The ISM Code ensures the continuous improvement of safety management 
skills in the maritime industry and requires companies to ensure safe 
operation of their fleets in accordance with applicable international 
and Flag State requirements by developing Safety Management Systems 
(SMSs) for their shore and vessel operations.
    The primary goal of an SMS is to ensure, in writing, the commitment 
and involvement of a shipping company's top management and 
representatives of shore and ship personnel to continuously improve 
safety management skills of shore-based and ship-based personnel, 
including preparation for emergencies related to both safety and 
environmental protection. Implementing an SMS ensures company and 
vessel compliance with mandatory rules and regulations. Using an SMS 
also ensures that applicable codes, guidelines, and standards 
recommended by the IMO, various Flag Administrations, recognized 
classification societies, and maritime industry organizations are taken 
into account. Companies are required by the ISM Code to develop and 
implement SMSs; this includes exercising company procedures and 
maintaining regular written reports and internal audits for reporting 
accidents and non-conformities with the provisions of the ISM Code. 
External audits conducted by recognized classification societies ensure 
that companies maintain current internal audits, reports, and records 
of exercises, procedures, accidents, and non-conformities and the 
company's or vessel's respective corrective actions.
    Essential to the effective functioning of an SMS is the need for 
all persons involved with the system to openly exchange safety 
information that will result in corrective actions of material 
conditions, safety procedures and company processes that support 
safety. Candid and accurate records ensure open lines of communication 
between company management and vessel crews and are vital for 
companies, vessels, and external recognized authorities to measure a 
company's safety and environmental protection performance against a 
documented system.
    Recently, we received comments and questions from the maritime 
industry regarding vessel owners' ability or willingness to fully 
implement SMSs. They contended that vessel owners, out of fear of self-
incrimination for liability, would not properly complete the internal 
audits, critical management reviews, and reports of non-conformities 
required by the SMSs and subject to external audits. Incomplete, vague, 
or inaccurate reports interfere with the effectiveness such a system 
would have in raising levels of safety. If these required SMS documents 
could be used against a vessel, its owner, or the companies' employees 
in legal challenges, how could we expect full disclosure?
    In response, we recognize that certain information of a personal or 
business nature is already protected to varying degrees by laws, such 
as the Privacy Act. In addition, SMSs are considered a form of 
intellectual property since they define and describe key practices that 
play a role in maintaining a competitive edge in the maritime industry. 
We acknowledge and abide by our legal and moral duty to protect 
personal and business information from public disclosure in the course 
of our role as a safety agency. However, records intended to improve 
safety may also demonstrate the omission or commission of an act that 
could be construed as negligent. Although this was not the intended 
purpose of the ISM Code, legal actions could occur as a result of 
information found in SMS-required documentation of accidents and non-
conformities evaluated by external audits.

Coast Guard ISM Code Study

    The purpose of this notice is to announce that we intend to conduct 
a study regarding the effective implementation and possible 
improvements of ISM Code SMSs and to invite the public to attend a 
public meeting to discuss issues and concerns regarding the ISM Code 
and the study.
    Section 306 of the Coast Guard Authorization Act of 1998 (Pub. L. 
105-383), ``Safety Management Code Report and Policy,'' mandates the 
Secretary of Transportation to complete a study on:
    (1) Reporting the status of ISM Code implementation;
    (2) Detailing enforcement actions involving the ISM Code, including 
the role documents and reports produced following the external audits 
required by the ISM Code play in such enforcement actions;
    (3) Evaluating the effects the ISM Code has had on marine safety 
and environmental protection, and identifying actions to further 
promote

[[Page 19852]]

marine safety and environmental protection through the ISM Code;
    (4) Identifying actions to achieve full compliance with and 
effective implementation of the ISM Code; and
    (5) Evaluating the effectiveness of internal reporting and auditing 
under the ISM Code, and recommending actions to ensure the accuracy and 
candidness of such reporting and auditing. These recommended actions 
might include proposed limits on the use of documents produced 
following external audits required by the ISM Code in legal 
proceedings.

Questions to the Public and Maritime Industry

    We are initiating research for the study by requesting answers to 
the questions listed below. You may submit your responses in writing to 
the docket at the address under ADDRESSES or present them orally at the 
public meeting on May 14, 1999. Please consider the following questions 
with regard to granting access to information in the SMS. Who should 
have access to this information and what impact could the release of 
this information have on safety and the intended purpose of the 
information?
    (1) Should the information contained in an SMS be restricted to 
direct users of the system, i.e., recognized organizations directly 
responsible for the audit of the system, Port State and Flag State 
authorities, etc. and no others?
    (2) Would restricting the use of information in the SMS to only 
those entities listed in Question 1, and excluding all others, 
appreciably improve candid reporting of corrective actions for items 
related to safety or environmental protection?
    (3) If you answered that restricting the access to or use of SMS 
information by entities other than those listed in Question 1 would 
improve the reporting of corrective actions, please respond. Would this 
improvement be of a sufficient magnitude to justify placing 
restrictions on the use of that information?
    (4) If selected entities could be granted access beyond those 
listed in Question 1, who should they be and why?
    (5) Who should not, under any circumstances, be granted access to 
the information in the SMS and why?
    (6) Should the safety information and records contained in the SMS 
be as accessible as other similar information now contained in ships 
logs and other records required to be maintained by law, regulations or 
international convention (e.g., the ships oil record book)?
    (7) If company SMS procedures and SMS audit report information is 
made available and could be used by private litigants in actions 
against the company or company employees; what impact, if any, would 
the use of this information have on the level of detail vessel crew 
members and company personnel would use in creating and maintaining 
records that identify corrective actions related to safety items?
    (8) Instead of restricting access to the information, should 
restrictions be placed on the use of the information from the SMS? If 
yes, for what purposes should information in the SMS not be used?
    (9) Are there SMS records that should be accessible while other SMS 
records should be restricted?
    (10) Are there other alternatives that would promote candidness of 
reporting that would not restrict access (e.g., placing limits of 
liability on actions stemming from use of information in the SMS)?

    Dated: April 16, 1999.
Jeffery P. High,
Acting Assistant Commandant for Marine Safety and Environmental 
Protection.
[FR Doc. 99-10113 Filed 4-21-99; 8:45 am]
BILLING CODE 4910-15-P