[Federal Register Volume 70, Number 89 (Tuesday, May 10, 2005)]
[Rules and Regulations]
[Pages 24483-24484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9307]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 310

[Docket Number: MARAD-2004-19397]
RIN 2133-AB61


Amended Service Obligation Reporting Requirements for State 
Maritime Academy Graduates

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: This rule adopts as final, without change, the interim final 
rule published in the Federal Register (69 FR 61605) on October 20, 
2004. The Maritime Administration (MARAD, we, us, or our) is publishing 
this final rule to change the service obligation reporting requirements 
for State maritime academy graduates who receive Student Incentive 
Payments (SIPs). The new reporting requirements create standard 
reporting dates that coincide with the U.S. Naval Reserve/Merchant 
Marine Reserve (USNR/MMR) service reporting dates. This rulemaking also 
provides for the electronic submission of reports as the primary means 
of submission to MARAD.

DATES: This final rule is effective May 10, 2005.

ADDRESSES: This final rule is available for inspection and copying 
between 10 a.m. and 5 p.m., e.t., 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: Rita Jackson, Academies Program 
Officer, Office of Policy and Plans, Maritime Administration, 
Department of Transportation, 400 7th St., SW., Room 7123, Washington, 
DC 20590, telephone: (202) 366-0284.

SUPPLEMENTARY INFORMATION: The Student Incentive Payment Program 
provides financial assistance to certain eligible State maritime 
academy students to help offset educational costs. Students who receive 
Student Incentive Payments must sign service obligation contracts that 
obligate the students to certain post-graduate service requirements. 
The requirements include: (1) Serving for three (3) years after 
graduation in the foreign or domestic commerce or the national defense 
of the United States in maritime-related employment; (2) maintaining a 
valid license as an officer in the merchant marine of the United States 
for at least six (6) years following the date of graduation, 
accompanied by the appropriate national and international endorsements 
and certification as required by the United States Coast Guard for 
service aboard vessels on domestic and international voyages; and (3) 
accepting if tendered an appointment as, and serving as a commissioned 
officer in the United States Naval Reserve, the United States Coast 
Guard Reserve, or any other reserve unit of an armed force of the 
United States for six (6) years following graduation. The above 
requirements are set forth in 46 App. U.S.C. 1295c(g)(3)(C), (D), and 
(E). In addition to the above service obligations, graduates are 
required, under 46 App. U.S.C. 1295c(g)(3)(F), to submit reports to 
MARAD indicating compliance with their service obligations.
    Prior to the issuance of this rulemaking, regulations at 46 CFR 
310.7(b)(6)(i) required State maritime academy SIP graduates to submit 
their service obligation reports thirteen (13) months following 
graduation and each succeeding twelve (12) months for a total of three 
(3) years. The three (3) year reporting period, however, did not 
accurately reflect the requirement in 46 App. U.S.C. 1295c(g)(3)(F) 
that graduates report compliance with all of their service obligations, 
because graduates must submit reports indicating their compliance not 
only with the three (3) year service (i.e., employment) requirement, 
but also with the six (6) year licensing and reserve components of the 
service obligation. Thus, under the law, graduates must submit 
compliance reports for a minimum of six (6) years to account for all of 
their service obligations. The six (6) year reporting requirement dates 
back to the Maritime Education and Training Act of 1980 (Pub. L. 96-
453) but has not been reflected in MARAD's regulations. However, as a 
matter of agency practice, MARAD has long required graduates to submit 
reports for six (6) years to report compliance with their service 
obligation requirements.
    In this final rule, MARAD is amending its regulations to reflect 
the requirement that graduates report for six (6) years (or until all 
components of the service obligation are fulfilled, whichever is 
latest). In addition, MARAD is amending the service obligation 
reporting requirements to require each graduate to file a report 
between January 1 and March 1

[[Page 24484]]

following graduation and during the same January 1 to March 1 time 
frame for a minimum of six (6) years thereafter.
    The new reporting dates coincide with the USNR/MMR's service 
reporting dates to create a standard reporting period. This 
standardized reporting period should make reporting less burdensome 
because graduates will be able to compile and submit information to 
MARAD and to the USNR during the same time frame each year.
    This rulemaking also provides for the electronic submission of 
reports as the primary means of submission. 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.
    On October 20, 2004, the Maritime Administration published the 
interim final rule that preceded this action in the Federal Register. 
Comments on the interim rule were due by November 19, 2004, and no 
comments were received.

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 economic impact associated 
with this rulemaking are considered to be so minimal that no further 
analysis is necessary. This final rule merely changes the reporting 
requirements for submission of service obligation report forms to make 
reporting less burdensome, amends the number of report submissions to 
conform to requirements set forth in the U.S. Code, and provides the 
option of electronic submission of such reports to MARAD.

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 found that under 5 U.S.C. 
553(b)(3)(B), good cause existed for not providing notice and comment 
since the interim final rule only changed the service obligation 
reporting dates of State maritime academy graduates who receive SIP 
payments to make reporting less burdensome, amended the number of 
report submissions to conform to requirements set forth in the U.S. 
Code, and provided the option of electronic submission of such reports 
to MARAD. While MARAD solicited public comments on the interim final 
rule, no comments were received.
    Under 5 U.S.C. 553(d)(3), MARAD finds that, for the same reasons, 
good cause exists for making this rule effective less than 30 days 
after publication in the Federal Register.

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 only changes the service obligation reporting 
requirements for State maritime academy graduates who receive SIP 
payments. Thus, this rule only affects individuals and not 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 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.

Interim Rule Adopted as Final Without Change

0
Accordingly, MARAD adopts the interim final rule amending 46 CFR part 
310 that was published in the Federal Register on October 20, 2004 (69 
FR 61605) as a final rule without change.

    By order of the Maritime Administrator.

    Dated: May 5, 2005.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 05-9307 Filed 5-9-05; 8:45 am]
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