[Federal Register Volume 64, Number 195 (Friday, October 8, 1999)]
[Rules and Regulations]
[Pages 54782-54783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26262]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 204

[Docket No. MARAD-1999-6309]


Redelegation of Authority To Settle Federal Tort Claims

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Administrator of the Maritime Administration (MARAD) 
redelegates claim settlement authority under the Federal Tort Claims 
Act solely to MARAD's Office of the Chief Counsel and removes the 
settlement authority from MARAD's Associate Administrator for 
Administration and the Superintendent of the United States Merchant 
Marine Academy. Before this redelegation, the Associate Administrator 
for Administration had authority to settle tort claims and to authorize 
payments of $50,000 or less, and the Superintendent of the Merchant 
Marine Academy had authority to settle tort claims and to authorize 
payments of $20,000 or less. These changes are necessary to consolidate 
the settlement authority in the Office of the Chief Counsel and will 
make the Federal Tort Claims process easier for claimants.

DATES: This rule is effective October 8, 1999.

FOR FURTHER INFORMATION CONTACT: Mr. J. Patrick Wiese, Chief, Division 
of Litigation, Office of the Chief Counsel, Maritime Administration, 
(202) 366-5191; 400 Seventh Street, SW, Washington, DC 20590.

SUPPLEMENTARY INFORMATION: In 49 CFR 1.45(a)(2), the Secretary of 
Transportation delegated to each Agency Administrator the authority to 
act under any statute, Executive Order, or regulation and in sections 
(a)(3) and (a)(16) specifically delegated the authority to request the 
Attorney General to approve a Federal tort claim in excess of $100,000, 
and the authority to settle claims of $100,000 or less. The 
Administrator of MARAD (Administrator) redelegated authority under the 
Federal Tort Claims Act, as amended, 28 U.S.C. 2672, to the Chief 
Counsel of MARAD, the Associate Administrator for Administration of 
MARAD, and the Superintendent of the United States Merchant Marine 
Academy.
    The regulations at 46 CFR part 204 set forth the requirements for 
settlement of claims against MARAD. Prior to this rule, Sec. 204.7 
(Delegation of authority) provided that the Chief Counsel had the 
authority to settle Federal tort claims subject to the written approval 
of the U.S. Attorney General for payments in excess of $100,000; the 
Associate Administrator for Administration had the authority to settle 
tort claims and to authorize payments of $50,000 or less, and the 
Superintendent of the Merchant Marine Academy had authority to settle 
tort claims and to authorize payments of $20,000 or less.
    This rule redelegates the settlement authority under the Federal 
Tort Claims Act by removing the settlement authority from the 
Superintendent of the Merchant Marine Academy and the Associate 
Administrator for Administration and consolidating the authority in the 
Chief Counsel. The amended Sec. 204.7 (Delegation of authority) will 
consolidate the settlement authority in the Office of the Chief 
Counsel. These changes will make the Federal Tort Claims process easier 
for claimants.
    The MARAD Administrator should make this redelegation because the 
Office of the Chief Counsel has the requisite expertise and capability 
to carry out the responsibilities under the Federal Tort Claims Act. In 
practice, the Associate Administrator and Superintendent seek the legal 
advice of the Chief Counsel when settling tort claims. The 
consolidation of all agency authority with respect to tort claims in 
the Office of Chief Counsel is a natural extension of its current 
administration of tort claims.
    MARAD publishes this rule as a final rule, effective on the date of 
publication. Under 5 U.S.C. 553(b), notice and comment are unnecessary 
because the rule relates to departmental management, organization, 
procedure and practice. Further, since the amendment expedites the 
ability of MARAD to settle Federal Tort Claims, the Administrator finds 
good cause under 5 U.S.C. 553(b) and 5 U.S.C. 553(d)(3) for the final 
rule to be effective on the date of publication in the Federal 
Register.

List of Subjects in 46 CFR Part 204

    Claims, Delegation of authority.

    Accordingly, MARAD amends 46 CFR part 204 as follows:

PART 204--CLAIMS AGAINST THE MARITIME ADMINISTRATION UNDER THE 
FEDERAL TORT CLAIMS ACT

    1. The authority citation for part 204 is revised to read as 
follows:

    Authority: 28 U.S.C. 2672; 28 CFR 14.11; 49 CFR 1.45(a)(2), (3), 
and (16).


Sec. 204.4  [Amended]

    2. Section 204.4 is amended as follows:
    a. By adding in the first sentence of paragraph (b) before the 
words ``Maritime Administration'' the words ``Office of the Chief 
Counsel of the''.
    b. By removing from the second sentence of paragraph (b) the words 
``which does not have settlement authority over the claim'' and by 
adding

[[Page 54783]]

in their place the words ``other than the Office of the Chief 
Counsel''.
    c. By removing from the second sentence of paragraph (b) the words 
``the official vested with such authority'' and by adding in their 
place the words ``the Office of the Chief Counsel''.
     d. By removing from the second sentence of paragraph (b) the 
parenthetical ``(see Sec. 204.13, this part).''
    3. Section 204.7 is revised to read as follows:


Sec. 204.7  Delegation of authority.

    (a) Subject to written approval of the Attorney General of the 
United States of any payment in excess of $100,000, the Chief Counsel 
of the Maritime Administration is authorized to approve the award, 
compromise, or settlement of any tort claim and to authorize payment of 
the claim.
    (b) The Chief Counsel is authorized to deny any claim and to settle 
and authorize payment of any tort claim involving the Maritime 
Administration in an amount not exceeding $100,000.
    4. Section 204.8 is revised to read as follows:


Sec. 204.8  Where to file claims.

    Claimants must file claims with the Chief Counsel (MAR-220), 
Maritime Administration, Department of Transportation, Room 7232, SW, 
Washington, DC 20590 at the Nassif Building, 7th and D Streets.

    Dated: October 4, 1999.

    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 99-26262 Filed 10-7-99; 8:45 am]
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