[Federal Register Volume 64, Number 128 (Tuesday, July 6, 1999)]
[Rules and Regulations]
[Pages 36240-36243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17053]


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

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 173

[USCG 1998-3386]
RIN 2115-AF62


Adjustment of Fees for Issuing Numbers to Undocumented Vessels in 
Alaska

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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

SUMMARY: The Coast Guard increases the fees it charges for issuing 
numbers to undocumented vessels in Alaska. It is doing this because the 
current fees do not cover its costs for issuing numbers to those 
vessels. This final rule brings the fees into full compliance with the 
general Federal statute on user fees, allowing the Coast Guard to fully 
recover its costs, and makes it more convenient for the public by 
offering additional methods to pay for this service.

DATES: This final rule is effective on September 1, 1999.

ADDRESSES: The comment received from the public, as well as documents 
mentioned in this preamble as being available in the docket, are part 
of docket USCG-1998-3386. They are available for inspection or copying 
at the Docket Management Facility, U.S. Department of Transportation, 
room PL-401, 400 Seventh Street SW, Washington, DC 20590-0001, between 
9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. You 
may also find this docket on the Internet at http://dms.dot.gov. You 
may obtain a copy of this rule by calling the U. S. Coast Guard 
Infoline at 1-800-368-5647, or read it on the Internet, at the Web Site 
for the Office of Boating Safety, at http://www.uscgboating.org or at 
http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: For questions on this final rule, call 
or write Janice B. Giles, Program Development and Implementation 
Division, Office of Boating Safety, Coast Guard, telephone 202-267-
0911, (email: [email protected]), or Sue Hargis, Seventeenth Coast 
Guard District (Alaska) Boating Safety Specialist, (907) 463-2297 
(email: [email protected]). For questions on viewing the 
docket, call Dorothy Walker, Chief, Dockets, Department of 
Transportation, telephone 202-366-9329.

SUPPLEMENTARY INFORMATION:

Regulatory History

    On February 1, 1999, we published a notice of proposed rulemaking 
(NPRM) entitled ``Adjustment of Fees for Issuing Numbers to 
Undocumented Vessels in Alaska'' in the Federal Register (64 FR 4816). 
We sent press releases concerning the proposed increase to all major 
newspapers in Alaska. We received one letter commenting on the proposed 
rule. No public hearing was requested, and none was held.

Background and Purpose

    Title 33 of the Code of Federal Regulations (CFR), part 173, sets 
forth the requirements for issuing certificates of number to owners of 
vessels that are not documented, typically recreational boats. The 
Coast Guard's issuing numbers to undocumented vessels is unique to 
Alaska and the Seventeenth Coast Guard District; in all other parts of 
the nation, State or Territorial authorities act as the issuing 
authorities. We retain the responsibility for Alaska under Title 46 of 
the United States Code (U.S.C.), sub-section 12301(a), because the 
government of Alaska has not sought the approval of the Coast Guard for 
a State system of numbering vessels.
    This final rule amends 33 CFR 173.85 so the charged fees cover the 
costs we incur for the number-issuing service we provide in Alaska. The 
increased fees affect those people who own undocumented vessels subject 
to 33 CFR 173.11 and who operate them principally in Alaska. This final 
rule also offers more methods for paying the fees.
    The current $6 fee, set in 1972 (33 CFR 173.85), does not accrue to 
the Coast Guard. The money collected goes into the general fund of the 
U.S. Treasury as miscellaneous receipts of the Department of 
Transportation. Even if the money did accrue to us, it would cover 
barely 25 percent of the costs we incur for providing the service. The 
new fees will cover most, if not all, of these costs.
    Under 46 U.S.C. 2110, the new fees will also be available to 
reimburse the Coast Guard for the full cost of accomplishing fee 
collection.
    The development and application of a cost methodology came in for 
detailed discussion in the NPRM. That discussion rested on a 
contracted-for study of all user fees collected by the Coast Guard. A 
copy of the analysis is in the docket for this rulemaking. We adapted a 
system that employs Activity-Based Costing (ABC), which assigns costs 
to the activities required to produce a product, rather than to 
categories of expenses. All the fees we developed were rounded down to 
the nearest whole dollar, to simplify collection and accounting, and to 
conform to 46 U.S.C. 2110(a)(3). We must now set these fees in 
accordance with the criteria specified in 31 U.S.C. 9701 and Revised 
Circular A-25 of the Office of Management and Budget (OMB), which 
establishes guidelines for Federal agencies to assess fees for their 
services.

Discussion of Comment and Changes

    In addition to publishing an NPRM, during February 1999 we 
published notices in local Alaskan newspapers: the Juneau Empire, 
Anchorage Daily News, Ketchikan Daily News, and Fairbanks News-Miner. 
We received only one comment on this rulemaking, which supported the 
fee increase.
    Changes to 33 CFR 173.85. The three-year fee for an original or 
transferred certificate of number will increase from $6 to $24. The fee 
to renew a certificate of number will increase from $6 to $16. The fee 
for a duplicate certificate of number will increase from $1 to $9. The 
fee for replacing a lost or destroyed Validation Sticker will increase 
from $0.25 to $9. We may now accept payment of fees by check, money 
order, or major credit card (MasterCard or Visa), or in cash.

Regulatory Evaluation

    This final 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. The Office of Management and Budget (OMB) has not reviewed 
this rule under that Order. It is not ``significant'' under the 
regulatory policies and procedures of the Department of Transportation 
(DOT) (44

[[Page 36241]]

FR 11040, February 26, l979). We expect 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.

Cost of Rule

    For the owner of an undocumented vessel who needs to obtain an 
original or a transferred certificate of number, the increase in fees 
resulting from this final rule is a one-time increase of $18, or $6 a 
vessel a year. For the same owner who needs to obtain a renewal 
certificate, the increase is a one-time increase of $10, or $3.33 a 
vessel a year (See Table 1). The fees for duplicate certificates and 
replacement stickers arise ``as needed'' and are not subject to further 
analysis.

BILLING CODE 4910-15-U
[GRAPHIC] [TIFF OMITTED] TR06JY99.011


BILLING CODE 4910-15-C
    To determine the fees set forth in this rulemaking, the Coast Guard 
adopted Activity-Based Costing (ABC), a methodology that assigns costs 
according to the activities required to produce an output. An 
alternative would have been to use the Consumer Price Index (CPI), an 
inflation index showing how prices change for goods such as food, 
housing, and medical care for a typical consumer. Although ABC and CPI 
are not directly related, it is useful to compare the two to make sure 
our fee increase is within the range most people would expect.
    In 1972, we set the fee for an original certificate of number at 
$6.00. If we had accomplished routine adjustments based on the CPI 
between 1972 and 1998, the fee for an original certificate of number 
would have increased to $20.31 [1972 price  x  (1998 CPI/1972 CPI): 
$6.00  x  (146.9/43.4) = $20.31]. As presented in Table 1, adjustments 
based on ABC yield a new fee for an original certificate of number of 
$24.00.
    This comparison shows that the increase set forth by the Coast 
Guard to recover costs based on ABC is close to the increase that would 
have occurred had it been linked with the inflation rate for Alaska.
    Under the general Federal statute on user fees, the Coast Guard 
must recover its costs for services provided to the public. Further, 
under 31 U.S.C. 9701 and Circular A-25, the Coast Guard must review 
these fees every two years to ensure full-cost recovery. Fees for 
issuing numbers to undocumented vessels in Alaska have gone unreviewed 
since 1972. The annual cost of the increases as outlined in this final 
rule and Table 1 is justified because of (1) the 17-year period between 
establishment and review of the fees and (2) the outcome of Coast Guard 
analysis using ABC.

Benefits of Rule

    The fee increases will allow the Coast Guard both to recover its 
costs for issuing numbers to undocumented vessels and to maintain the 
service required by the general public. Full-cost recovery benefits the 
involved parties by (1) delivering service to owners of undocumented 
vessels in Alaska and (2) letting the Coast Guard meet Federal mandates 
on cost recovery.
    This final rule will also increase convenience to the public by 
allowing more ways for them to make their payments.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we 
considered whether this final rule 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.
    Because the effects of this final rule will be minimal, the Coast 
Guard certifies under 5 U.S.C. 605(b) that this final rule will not 
have a significant economic impact on a substantial number of small 
entities.
    Records of the Coast Guard indicate that as of December 31, 1997, 
there were 32,414 undocumented vessels numbered by the Coast Guard in 
Alaska. Of those 32,414 undocumented vessels, about 23 percent--7,107 
vessels (4,945 commercial fishing vessels, 1,656 commercial passenger-
carrying vessels, and 506 rental or livery vessels)--belong to 
commercial entities, some of which may qualify as small entities. The 
economic impact of this rule on these small entities, however, is 
minimal (see Table 2).

BILLING CODE 4910-15-U

[[Page 36242]]

[GRAPHIC] [TIFF OMITTED] TR06JY99.012



BILLING CODE 4910-15-C
    For the five years 1994 through 1998 inclusive, we analyzed the 
number of transactions recorded by the Seventeenth District for issuing 
original, renewal, and transfer certificates. We assessed the aggregate 
economic effects of the then-proposed rule across the fleet of 
undocumented vessels in Alaska (See Table 3). We consider five years 
long enough to accurately represent the number of transactions that 
will occur in the future. The data reflect the cost of the fee increase 
across the fleet of undocumented vessels. We estimate that 23% of these 
transactions may involve small entities. Therefore, the aggregate cost 
of the fee increase on small entities is $31,760.70 ($138,090  x  23%).

BILLING CODE 4910-15-U
[GRAPHIC] [TIFF OMITTED] TR06JY99.013


BILLING CODE 4910-15-C

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we offered to assist small 
entities in understanding this final rule so that they could better 
evaluate its effects on them and participate in the rulemaking. For 
clarification of the new fees, they can ask the Seventeenth Coast Guard 
District, Boat Registration Office, in person, by telephone or by e-
mail as listed in FOR FURTHER INFORMATION CONTACT.
    The Small Business and Agriculture Regulatory Enforcement Ombudsman 
and 10 Regional Fairness Boards were established to receive comments 
from small businesses about Federal enforcement. The Ombudsman will 
annually evaluate the enforcement and rate each agency's responsiveness 
to small business. If you wish to comment on enforcement by the Coast 
Guard, call 1-888-REG-FAIR (1-888-734-3247).

Collection of Information

    This final rule calls for no new collection of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    We have analyzed this final rule under E.O. 12612 and have 
determined that this rule does not have sufficient implications for 
federalism to warrant the preparation of a Federalism Assessment. The 
Coast Guard is complying with the general Federal statute on user fees, 
and with the specific Federal statute for services provided under Title 
46 of the United States Code, subtitle II.

[[Page 36243]]

Unfunded Mandates Reform Act and Enhancing the Intergovernmental 
Partnership

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) and 
E.O. 12875, Enhancing the Intergovernmental Partnership (58 FR 58093, 
October 28, 1993), govern the issuance of Federal regulations that 
require unfunded mandates. An unfunded mandate is a regulation that 
requires a State, local, or tribal government or the private sector to 
incur direct costs without the Federal Government's having first 
provided the funds to pay those costs. This final rule will not impose 
an unfunded mandate.

Taking of Private Property

    This final rule will not effect a taking of private property or 
otherwise have taking implications under E.O. 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

Civil Justice Reform

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this final rule under E.O. 13045, Protection of 
Children from Environmental Health Risks and Safety Risks. This rule is 
not an economically significant rule and does not concern an 
environmental risk to health or safety that may disproportionately 
affect children.

Environment

    We considered the environmental impact of this final rule and 
concluded that under figure 2-1, paragraph (34)(a), of Commandant 
Instruction M16475.lC, the rule is categorically excluded from further 
environmental documentation. The rule merely adjusts the fees charged 
to owners of undocumented vessels for issuing vessel's numbers and 
validation stickers. A ``Categorical Exclusion Determination'' is 
available in the docket where indicated under ADDRESSES.

List of Subjects in 33 CFR Part 173

    Marine safety, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard amends 
33 CFR part 173 as follows:

PART 173-VESSEL NUMBERING AND CASUALTY AND ACCIDENT REPORTING

    1. Revise the citation of authority for Part 173 to read as 
follows:

    Authority: 31 U.S.C. 9701; 46 U.S.C. 2110, 6101, 12301, 12302; 
OMB Circular A-25; 49 CFR 1.46.

    2. Revise Sec. 173.85 to read as follows:


Sec. 173.85  Fees levied by the Coast Guard.

    a. In a State where the Coast Guard is the issuing authority, the 
fees for issuing certificates of number are:
    (1) Original or transferred certificate of number and two 
validation stickers--$24.
    (2) Renewed certificate of number and two validation stickers--$16.
    (3) Duplicate certificate of number--$9.
    (4) Replacement of lost or destroyed validation stickers--$9.
    (b) Fees are payable by check or money-order made payable to the 
``U.S. Coast Guard''; by major credit card (MasterCard or Visa); or, 
when the owner applies in person, in cash.

    Dated: June 24, 1999.
Ernest R. Riutta,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Operations.
[FR Doc. 99-17053 Filed 7-2-99; 8:45 am]
BILLING CODE 4910-15-U