[Federal Register Volume 69, Number 201 (Tuesday, October 19, 2004)]
[Rules and Regulations]
[Pages 61452-61454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23360]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 310

[Docket Number: MARAD-2004-17185]
RIN 2133-AB66


Amended Service Obligation Reporting Requirements for U.S. 
Merchant Marine Academy Graduates

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: In this final rule, the Maritime Administration (MARAD, we, 
us, or our) amends the service obligation reporting requirements for 
United States Merchant Marine Academy (USMMA) graduates. The new 
reporting requirements create standard reporting dates that coincide 
with the U.S. Naval Reserve/Merchant Marine Reserve (USNR/MMR) service 
reporting dates, which will make reporting to the USNR and to MARAD 
less burdensome. This final rule also corrects an error that appeared 
in the interim final rule that preceded this action, which mistakenly 
indicated that it applied to both USMMA graduates as well as to State 
maritime academy graduates. Finally, this rulemaking provides for the 
electronic submission of reports as the primary means of submission to 
MARAD.

DATES: This final rule is effective October 19, 2004.

ADDRESSES: This final rule is available for inspection and copying 
between 10 a.m. and 5 p.m., ET, Monday through Friday, except Federal 
holidays at the Docket Clerk, U.S. DOT Dockets, Room PL-401, Department 
of Transportation, 400 7th St., SW., Washington, DC 20590. An 
electronic version of this document along with all documents entered 
into this docket are available on the World Wide Web at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT:  Ms. Brenda Reed-Perry, Compliance 
Specialist, Office of Policy and Plans, Maritime Administration, 
Department of Transportation, 400 7th St., SW., Room 7123, Washington, 
DC 20590; telephone: (202) 366-0845; FAX: (202) 366-7403; and e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: On March 2, 2004, MARAD published an interim 
final rule entitled Amended Service Obligation Reporting Requirements 
for U.S. Merchant Marine Academy and State Maritime Academy Graduates 
(69

[[Page 61453]]

FR 9758). Despite this title, and other references to State maritime 
academy graduates that appeared in the rulemaking, MARAD only intended 
to change the reporting requirements of USMMA graduates, and not State 
academy graduates. This intent is reflected by the fact that the 
interim final rule only changed 46 CFR section 310.58(d), which governs 
USMMA reporting requirements, and not 46 CFR section 310.7(b)(6), which 
governs State academy reporting requirements. In this final rule, MARAD 
is amending the service obligation reporting requirements for USMMA 
graduates only. MARAD has issued a separate rulemaking to address the 
reporting requirements of State academy graduates.
    In the interim final rule, MARAD changed the requirement that USMMA 
graduates submit their service obligation report forms thirteen (13) 
months following graduation and each succeeding twelve (12) months for 
five (5) consecutive years thereafter to a system where graduates would 
submit reports on March 31 following graduation and six (6) consecutive 
years thereafter.
    Comments on the interim final rule were due by April 1, 2004, and 
two sets of comments were timely filed.

Public Comments on the Interim Final Rule

    The first commenting party recommended that MARAD make reports due 
by March 31, rather than on March 31. The commenting party also 
recommended that MARAD provide a ninety (90) day period in which to 
submit reports, noting that many graduates, while out at sea, may have 
difficulty submitting their reports by a specified due date, rather 
than during a reporting period. MARAD agrees with this recommendation 
and has decided to adopt a reporting period rather than a specified due 
date. However, instead of a ninety (90) day reporting period, MARAD has 
decided to adopt a sixty (60) day reporting period (or 61 days, during 
leap years) that coincides with the USNR/MMR's reporting period. MARAD 
believes that the sixty (60) day reporting period provides ample time 
for graduates to submit their reports. Additionally, since the 
reporting period coincides with the USNR/MMR's reporting period, 
submitting reports should be less burdensome because graduates will be 
able to compile and submit information to both MARAD and the USNR 
during the same time frame.
    The second commenting party addressed issues related to Student 
Incentive Payments such as default of service obligations, recoupment 
of funds from defaulting students, and other issues, none of which are 
addressed in this rulemaking. Thus, MARAD will not address the issues 
raised by the second commenting party at this time.
    As indicated above, based on comments received and on further 
consideration, MARAD has decided to adopt a reporting period that 
coincides with the USNR/MMR's reporting period. Under this new 
reporting system, graduates will file reports between January 1 and 
March 1 following graduation, and during the same time frame between 
January 1 and March 1 for six (6) consecutive years thereafter (or 
until all components of the service obligation are fulfilled, whichever 
is latest). Graduates will file a minimum of seven (7) reports in order 
to give information on all six (6) years of the service obligation. 
Graduates must submit annually the Maritime Administration Service 
Obligation Compliance Report and Merchant Marine Reserve, U.S. Naval 
Reserve (USNR), Annual Report (Form MA-930). Graduates may submit their 
Service Obligation Compliance Reports electronically via the Maritime 
Service Compliance System at https://mscs.marad.dot.gov.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule is not considered a significant regulatory action 
under section 3(f) of Executive Order 12866 and, therefore, was not 
reviewed by the Office of Management and Budget. This final rule is not 
likely to result in an annual effect on the economy of $100 million or 
more. This final rule is also not significant under the Regulatory 
Policies and Procedures of the Department of Transportation (44 FR 
11034, February 26, 1979). The costs and overall economic impact 
associated with this rulemaking are considered to be so minimal that no 
further analysis is necessary.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to notice and comment procedures when they are unnecessary or 
contrary to the public interest. MARAD finds that under 5 U.S.C. 
553(b)(3)(B), good cause exists for not providing notice and comment 
since this final rule merely changes the service obligation reporting 
dates of USMMA graduates and provides for the electronic submission of 
reports as the primary means of submission to MARAD. For the same 
reasons, MARAD finds good cause under 5 U.S.C. 553(d) to make this 
final rule effective upon publication.

Regulatory Flexibility Act

    The Maritime Administrator certifies that this final rule will not 
have a significant economic impact on a substantial number of small 
entities. This final rule merely changes the service obligation 
reporting dates for USMMA graduates and thus only affects USMMA 
graduates and has no effect on small businesses or other entities.

Federalism

    We have analyzed this final rule in accordance with the principles 
and criteria contained in Executive Order 13132 (Federalism) and have 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. These 
regulations have no substantial effect on the States, the current 
Federal-State relationship, or the current distribution of power and 
responsibilities among local officials. Therefore, consultation with 
State and local officials is not necessary.

Executive Order 13175

    MARAD does not believe that this final rule will significantly or 
uniquely affect the communities of Indian tribal governments when 
analyzed under the principles and criteria contained in Executive Order 
13175 (Consultation and Coordination with Indian Tribal Governments). 
Therefore, the funding and consultation requirements of this Executive 
Order do not apply.

Environmental Impact Statement

    We have analyzed this final rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
and have concluded that under the categorical exclusions in section 
4.05 of Maritime Administrative Order (MAO) 600-1, ``Procedures for 
Considering Environmental Impacts,'' 50 FR 11606 (March 22, 1985), 
neither the preparation of an Environmental Assessment, an 
Environmental Impact Statement, nor a Finding of No Significant Impact 
for this final rule is required. This final rule involves 
administrative and procedural regulations that have no environmental 
impact.

Unfunded Mandates Reform Act of 1995

    This final rule does not impose an unfunded mandate under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$100 million or

[[Page 61454]]

more, in the aggregate, to any of the following: State, local, or 
Native American tribal governments, or the private sector. This final 
rule is the least burdensome alternative that achieves this objective 
of U.S. policy.

Paperwork Reduction Act

    This final rule contains information collection requirements 
covered by the Office of Management and Budget approval number 2133-
0509. The changes have no impact on the reporting burden.

List of Subjects in 46 CFR Part 310

    Federal Aid Programs, Reporting and recordkeeping requirements, 
Schools, and Seamen.

0
Accordingly, for the reasons discussed in the preamble, 46 CFR 310.58 
is amended as follows:

PART 310--[AMENDED]

0
1. The authority citation for part 310 continues to read as follows:

    Authority: 46 App. U.S.C. 1295; 49 CFR 1.66.


0
2. Amend Sec.  310.58 by revising paragraph (d) to read as follows:


Sec.  310.58  Service obligation for students executing or reexecuting 
contracts

* * * * *
    (d) Reporting requirements. (1) Each graduate must submit an annual 
Service Obligation Compliance Report form (MA-930) to the Maritime 
Administration between January 1 and March 1 following his or her 
graduation. After the initial report is submitted, each graduate must 
continue to submit annual reports during the same time frame between 
January 1 and March 1 for six (6) consecutive years thereafter, or 
until all components of the service obligation are fulfilled, whichever 
is latest. Each graduate will file a minimum of seven (7) reports in 
order to give information on all six (6) years of the service 
obligation. Graduates are encouraged to submit their Service Obligation 
Compliance Report forms (MA-930) to MARAD using the web-based Internet 
system at https://mscs.marad.dot.gov. Reports may also be mailed to: 
Compliance Specialist, Office of Policy and Plans, Maritime 
Administration, Department of Transportation, 400 7th St., SW., Room 
7123, Washington, DC 20590.
    (i) Example 1: Midshipman graduates on June 30, 2004. His or her 
first reporting date is between January 1, 2005 and March 1, 2005 and 
thereafter between January 1 and March 1 for six (6) consecutive years 
(or until all components of the service obligation are fulfilled, 
whichever is latest) for a minimum of seven (7) reports.
    (ii) Example 2: Midshipman has a deferred graduation on November 
30, 2004. His or her first reporting period is between January 1, 2005 
and March 1, 2005 and thereafter between January 1 and March 1 for six 
(6) consecutive years (or until all components of the service 
obligation are fulfilled, whichever is latest) for a minimum of seven 
(7) reports.
    (iii) Example 3: Midshipman graduated in June 2003 and has already 
begun his or her service obligation reporting. His or her reports are 
now due between January 1 and March 1 of each reporting year.
    (2) The Maritime Administration will provide reporting forms upon 
request. However, non-receipt of such forms will not exempt a graduate 
from submitting service obligation information as required by this 
paragraph. Graduates are encouraged to submit their Service Obligation 
Compliance Report forms (MA-930) electronically at https://mscs.marad.dot.gov. The reporting form has been approved by the Office 
of Management and Budget (2133-0509).
* * * * *

    Dated: October 13, 2004.

    By Order of the Maritime Administrator.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 04-23360 Filed 10-18-04; 8:45 am]
BILLING CODE 4910-81-P