[Federal Register Volume 70, Number 96 (Thursday, May 19, 2005)]
[Rules and Regulations]
[Pages 28829-28833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9824]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 310

[Docket Number: MARAD-2004-17760]
RIN 2133-AB60


Merchant Marine Training

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: This rule revises and adopts as final the interim final rule 
published in the Federal Register (69 FR 31897) on June 8, 2004. The 
Maritime Administration (MARAD) is publishing this final rule to 
implement changes to its regulations in part 310 regarding Maritime 
Education and Training. This rulemaking updates the Maritime Education 
and Training regulations to conform with title XXXV, subtitle A, of the 
National Defense Authorization Act for Fiscal Year 2004, regarding the 
administration of state, regional and United States merchant marine 
academies. This rulemaking also makes non-substantive technical changes 
to part 310.

DATES: This final rule is effective May 19, 2005.

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: Jay Gordon, Maritime Administration, 
400 7th St., SW., Washington, DC 20590; telephone: (202) 366-5173; or 
e-mail: [email protected].

SUPPLEMENTARY INFORMATION: On June 8, 2004, MARAD published an interim 
final rule in the Federal Register (69 FR 31897) that amended existing 
regulations in 46 CFR part 310 regarding Maritime Education and 
Training. This rulemaking adopts the interim final rule as a final rule 
and revises the interim rule in two ways. First, the interim final rule 
provided in section 310.12-1 that MARAD would post on our Web site a 
model agreement between MARAD and schools for annual maintenance and 
support payments, Federal student subsistence and incentive payments, 
and fuel assistance. In lieu of posting the agreement on our Web site, 
MARAD is amending this section to provide that interested parties may 
obtain copies of the agreement from the Office of Policy and Plans. The 
second change effected by this final rule involves sections 310.7(b)(5) 
and 310.58(b). Both sections describe the number of days a graduate 
must serve each year on a vessel at sea in order to satisfy this 
component of his/her service obligations. The interim final rule 
indicated in both sections that the number of days would be posted on 
MARAD's Web site. At this time, MARAD has decided not to post the 
number of days, but has instead decided to amend the State maritime 
academy's regulations at section 310.7(b)(5) to match the Merchant 
Marine Academy's regulations at 310.58(b), which provide a default 
minimum number of sea days that will satisfy the obligation as well as 
an alternate method to derive the number of sea days in lieu of the 
default number (i.e., the median number of days of seafaring employment 
based on articles achieved by deck or engine officers in the most 
recent calendar year for which statistics are available).
    The changes set forth in the interim rule, with the revisions noted 
above, are summarized in the section-by-section analysis below.
    Comments on the interim rule were due by August 9, 2004, and no 
comments were received.

Section-by-Section Analysis

    For purposes of the following analysis, the term ``Act'' refers to 
the National Defense Authorization Act for Fiscal Year 2004, Pub. L. 
108-136, unless otherwise indicated.

Subpart A--Regulations and Minimum Standards for State, Territorial or 
Regional Maritime Academies and Colleges

Section 310.1 Definitions
    (b) Act--We update the term ``Act'' to include sections of the 
Maritime Education and Training Act of 1980, Public Law 96-453, as 
amended, which includes the changes effected by the National Defense 
Authorization Act for Fiscal Year 2004, Public Law 108-136, and any 
subsequent amendments.
    (i) Cost of Education Provided--is a concept added by the National 
Defense Authorization Act for Fiscal Year 2004, Public Law 108-136, in 
connection with requiring Student Incentive Payment (``SIP'') students 
defaulting on their obligations to repay the student incentive payments 
made to such students by the Federal Government.
    (j)-(r)--Definitions under these designations were renumbered.
Section 310.3 Schools and Courses
    Changes in this section include capitalizing the words ``training 
ship'' and replacing the title of the Office of Maritime Labor and 
Training with the Office of Policy and Plans.
Section 310.7 Federal Student Subsistence Allowances and Student 
Incentive Payments
    Section 310.7(b)(1)--Under the Oceans Act of 1992, Public Law 102-
587, the student incentive payment amount was increased from $1200 per 
annum to $3000 per annum. While MARAD's regulations currently list

[[Page 28830]]

$1200 as the annual SIP payment amount, students currently receive 
payments of $3000 per annum. Students receiving $3,000 under their 
existing service obligation contracts will have the option of 
continuing to receive the $3,000 payment under their old service 
obligation contracts or executing new service obligation contracts and 
receiving the increased amount of $4000 per annum. The new service 
obligation contracts will include the increased obligations required by 
the new law. Individuals must execute the new service obligation 
contracts to receive the increased SIP payment amount.
    Section 310.7(b)(3) addresses the form of the service obligation 
contract. This paragraph is changed to reflect revisions in the Act.
    Section 310.7(b)(3)(ii)--Under former (b)(3)(ii), the separation of 
an individual by the School released that individual from his or her 
obligation to complete the course of instruction at the School. By 
virtue of the changes in the law, the separation of an individual by 
the School no longer releases an individual from this obligation. An 
individual who is separated by the School is now in default of his or 
her service obligations and is liable for the remedies for failure to 
fulfill these obligations, such as induction into military service or 
recovery by the Federal Government of the Cost of Education Provided, 
plus interest and attorney's fees.
    Section 310.7(b)(3)(iv)--The previous law required graduates to 
maintain their license for at least six (6) years following graduation. 
This previous law required the graduate to maintain a Coast Guard 
license at least equal to the license, including endorsements, which 
such graduate had upon graduation from the School. The subsequent 
promulgation of Standards of Training, Certification and Watchkeeping 
(STCW) requirements created a situation in which various graduates were 
required to take additional courses in order to maintain such a 
license. Given the unanticipated impact of the STCW requirements, the 
Administration has determined that individuals graduating without the 
necessary STCW courses need not take these courses and can satisfy 
their service obligations by maintaining a more restricted type of 
Coast Guard license, other than a continuity license. Continuity 
licenses were not deemed acceptable because they do not allow such 
graduates to sail in any capacity.
    Individuals executing or reexecuting service obligation contracts 
after the effective date of the Act are specifically required by law to 
maintain licenses that are at least equal in status to the licenses 
they had at the time of graduation (i.e., the ability to sail without 
restrictions in both domestic and foreign commerce). Such graduates are 
required to take all courses necessary to maintain their licenses, even 
with respect to unforeseen future requirements. The type of Coast Guard 
license that is required to satisfy the service obligation of 
maintaining a license for at least six (6) years following graduation 
is a license containing appropriate national and international 
endorsements and certifications required by the United States Coast 
Guard for service both on domestic and international voyages. 
``Appropriate'' in this instance means the same endorsements and 
certifications held at the date of graduation, or the equivalent. 
Restricted licenses limited in applicability to just portions of the 
domestic or international voyages do not satisfy this obligation, nor 
do continuity licenses. By this change, Congress confirmed the 
Administration's longstanding interpretation of the law in this 
respect--that graduates continue to maintain Coast Guard licenses that 
are not more restricted than the licenses with which they graduated.
    Section 310.7(b)(3)(vi)--The Act now allows employment within the 
Federal Government to satisfy the requirement that graduates ``serve in 
the foreign or domestic commerce'' or ``national defense'' of the 
United States. Such employment in the Federal Government must be 
significantly maritime-related and serve the national security 
interests of the United States.
    The determination of whether such employment satisfies this service 
obligation is made by the Administration. Examples of civilian 
employment that might satisfy this obligation are civilian positions 
relating to vessel or port security in the Navy, the Department of 
Homeland Security, or the Transportation Security Administration. 
``Significant'' is equated to a material or essential portion of an 
individual's responsibilities. It does not mean a ``majority'' of such 
individual's responsibilities, but means more than just an incidental 
part.
    Section 310.7(b)(5)--This section is amended to provide a default 
minimum number of sea days as well as an alternate method to determine 
the minimum number of sea days to be used in lieu of the default 
number.
Section 310.7(b)(7) Breach of Contract
    Section 310.7(b)(7)(i)(A)--Undergraduate Breach/Induction into 
Armed Forces: This paragraph is substantially rewritten to conform to 
the new terms of the Act. Any individual who has accepted SIP payments 
for a minimum of two (2) academic years and fails to fulfill any of 
their service obligations may be ordered by the Secretary of Defense to 
active duty in the Armed Forces of the United States to serve a period 
of time not to exceed two (2) years. In cases of hardship or 
impossibility of performance of the provisions of the service 
obligation contract due to accident, illness or other justifiable 
reason, as determined by the Maritime Administrator, this requirement 
may be waived in whole or in part. See section 310.7(b)(8).
    Section 310.7(b)(7)(i)(B)--Undergraduate Breach/Collection of Cost 
of Education Provided: This paragraph contains a new provision set 
forth in the Act. It authorizes the Secretary of Transportation, acting 
through the Maritime Administrator, to take action against defaulting 
individuals to recover the Cost of Education Provided to such 
individuals, plus interest and attorney's fees. Such authority may be 
exercised in instances where the Maritime Administrator determines that 
it would better serve the national interest to recover the Cost of 
Education Provided from a defaulting individual rather than to refer 
such individual to the Secretary of Defense for induction into the 
Armed Forces of the United States.
    Section 310.7(b)(7)(i)(C)--Sets forth the discretionary authority 
of the Maritime Administrator to reduce the amount to be recovered from 
such defaulting individuals to reflect partial performance of service 
obligations and such other factors as the Maritime Administrator 
determines merit such reduction. This provision is in addition to the 
Maritime Administrator's authority to waive the service obligations as 
set forth in section 310.7(b)(8).
    Section 310.7(b)(7)(i)(D)--For purposes of paragraph (b)(7)(i)(A) 
of this section, an ``academic year'' is defined as the completion by a 
student of the required number of semesters, trimesters, or quarters, 
as applicable, whether at school or at sea, which comprise a complete 
course of study for an academic year. Thus, liability under paragraph 
(b)(7)(i)(A) begins for students at the beginning of their third (3rd) 
academic year, whether at school or at sea.
Section 310.7(b)(7)(ii) Post Graduation Defaults
    Section 310.7(b)(7)(ii)(A)--Individuals who breach their service 
obligations after graduation are subject to be ordered to active duty 
in the

[[Page 28831]]

Armed Forces of the United States for a period of time not less than 
two (2) years and not more than the unexpired portion of the three (3) 
years of service required in the foreign and domestic commerce or the 
national defense of the United States following graduation.
    Section 310.7(b)(7)(ii)(B)--If the Secretary of Defense is unable 
or unwilling to order an individual to active duty or if the Maritime 
Administrator determines that reimbursement of the Cost of Education 
Provided would better serve the interests of the United States, the 
Maritime Administrator may recover from the defaulting individual the 
Cost of Education Provided by the Federal Government, plus interest and 
attorney's fees.
    Section 310.7(b)(7)(ii)(C)--Sets forth the discretionary authority 
of the Maritime Administrator to reduce the amount to be recovered from 
such defaulting individual to reflect partial performance of service 
obligations and such other factors as the Maritime Administrator 
determines merit such reduction.
    This provision is in addition to the Maritime Administrator's 
authority to waive the service obligations. Such authority is set forth 
in section 310.7(b)(8) and may be exercised in cases where there would 
be undue hardship or impossibility of performance of the provisions of 
the service obligation contract due to accident, illness or other 
justifiable reason.
    Section 310.7(b)(10)(ii)(C)--Reflects that graduates are required 
to keep the Office of Policy and Plans, as opposed to the Office of 
Maritime Labor, Training and Safety, aware of the graduates' current 
mailing addresses.
    Section 310.7(b)(11)--This new paragraph reflects that the 
Administration is now authorized to collect debts owed to the Federal 
Government by commencing court proceedings as well as utilizing the 
Federal debt collection procedures set forth in chapter 176, title 28 
of the United States Code and other applicable administrative remedies 
for debt collection. Such administrative collection options include 
offsetting debts against defaulting individuals' tax refunds.
Section 310.12-1 Form of Agreement
    The form of agreement has been deleted in its entirety. Setting 
forth a required agreement in the Administration's regulations 
constrained the ability of the Administration and the Schools to modify 
the agreement to reflect changing circumstances. Not only would the 
agreements have to be modified, but also the regulations would have to 
be changed. Copies of the agreement may be obtained from the Office of 
Policy and Plans.

Subpart C--Admission and Training of Midshipmen at the United States 
Merchant Marine Academy

Section 310.51 Definitions
    (b) Act--We update the term ``Act'' to include sections of the 
Maritime Education and Training Act of 1980, Public Law 96-453, as 
amended, which includes the changes effected by the National Defense 
Authorization Act for Fiscal Year 2004, Public Law 108-136, and any 
subsequent amendments.
    (f) Cost of Education Provided--is a concept added by the National 
Defense Authorization Act for Fiscal Year 2004, Public Law 108-136, in 
connection with recovery of funds from individuals failing to perform 
their service obligations, both before and after graduation. It is the 
intent of the Act that the Administration recover the financial costs 
incurred by the Federal Government for providing training or financial 
assistance to students at the Academy. For students at the Academy, 
this means the pro rata cost of all charges incurred with respect to 
the Academy for a given fiscal year, including room, board, classroom 
academics, and other training activity costs as well as any direct 
financial assistance given to such individual.
    (g)-(i)--Definitions under these designations were renumbered.
Section 310.58 Service Obligation for Students Executing or Reexecuting 
Contracts
    Section 310.58(a)--The terms of the National Defense Authorization 
Act for Fiscal Year 2004, Public Law 108-136, apply to individuals 
executing service obligation contracts after November 24, 2003. No 
individual previously having executed a service obligation contract is 
required by virtue of the amendments of the Act to execute a new 
service obligation contract. Individuals executing contracts after 
November 24, 2003, even those who have already executed a service 
obligation contract, are required to execute the new service obligation 
contract if they receive new consideration from the Federal Government 
for such execution.
    Section 310.58(a)(1)--Under former section 310.58(a)(1), the 
separation of an individual by the Academy released that individual 
from his or her obligation to complete the course of instruction at the 
Academy. By virtue of the changes in the law, the separation of an 
individual by the Academy no longer releases an individual from this 
obligation. An individual who is separated by the Academy is now in 
default of his or her service obligations and is liable for the 
remedies for failure to fulfill these obligations. Among these remedies 
are induction into military service or recovery by the Federal 
Government of the Costs of Education Provided.
    Section 310.58(a)(3)--Under former section 310.58(a)(3), graduates 
were required to maintain their licenses for at least six (6) years 
following graduation. The previous law required the graduate to 
maintain a Coast Guard license at least equal to the license that such 
graduate had upon graduation from the Academy. The subsequent 
promulgation of STCW requirements created a situation wherein various 
graduates were required to take additional courses in order to maintain 
such a license. Given the unanticipated impact of the STCW 
requirements, the Administration determined that individuals graduating 
without the necessary STCW courses need not take these courses and can 
satisfy their service obligations by maintaining a more restricted type 
of Coast Guard license, other than a continuity license. Continuity 
licenses were not acceptable because they do not allow such graduates 
to sail in any capacity.
    Individuals executing service obligation contracts after the 
effective date of the Act are now required to maintain their licenses 
in at least equal status to the status they had at the time of 
graduation (i.e., the ability to sail without restrictions in both 
domestic and foreign commerce). Such graduates are required to take all 
courses necessary to maintain their licenses, even with respect to 
unforeseen future requirements. The type of Coast Guard license that is 
required to satisfy the service obligation of maintaining a license for 
at least six (6) years following graduation is a license containing 
appropriate national and international endorsements and certifications 
required by the United States Coast Guard for service both on domestic 
and international voyages. ``Appropriate'' in this instance means the 
same endorsements and certifications held at the date of graduation, or 
the equivalent. Restricted licenses limited in applicability to just 
portions of the domestic or international voyages do not satisfy this 
obligation, nor do continuity licenses. The Act confirmed the 
Administration's longstanding interpretation of the law in this 
respect--that graduates continue to maintain Coast Guard licenses that 
are

[[Page 28832]]

not more restricted than the licenses with which they graduated.
    Section 310.58(a)(5) has been amended to reflect the statutory 
authorization of additional ways to perform the employment aspects of 
the service obligation requirements. The Act now allows employment 
within the Federal Government to satisfy the requirement that graduates 
``serve in the foreign or domestic commerce'' or ``national defense'' 
of the United States. Such employment in the Federal Government must be 
significantly maritime-related and serve the national security 
interests of the United States.
    The determination of whether such employment satisfies the service 
obligation requirements is made by the Administration. Examples of 
civilian employment that might satisfy the service obligation are 
civilian positions relating to vessel or port security in the Navy, the 
Department of Homeland Security, or the Transportation Security 
Administration.
    ``Significantly'' is equated to a material or essential portion of 
an individual's responsibilities. It does not mean a ``majority'' of 
such individual's responsibilities, but means more than just an 
incidental part.
    Section 310.58(b) is amended for purposes of clarity.
Section 310.58(e)(1) Breach of Contract Before Graduation
    Section 310.58(e)(1)(i)--This paragraph is substantially rewritten 
to conform to the new terms of the Act. Any individual who has attended 
the Academy for a minimum of two (2) academic years who fails to 
fulfill any of their service obligations may be ordered by the 
Secretary of Defense to active duty in the Armed Forces of the United 
States to serve a period of time not to exceed two (2) years. In cases 
of hardship or impossibility of performance of the provisions of the 
service obligation contract due to accident, illness or other 
justifiable reason, as determined by the Maritime Administrator, this 
requirement may be waived in whole or in part. See section 310.58(f).
    Section 310.58(e)(1)(ii)--This paragraph contains a provision set 
forth in the Act. It authorizes the Secretary of Transportation, acting 
through the Maritime Administrator, to take action against defaulting 
individuals to recover the Cost of Education Provided from individuals 
who have attended the Academy for more than two (2) academic years, but 
have not yet graduated.
    Section 310.58(e)(1)(iii)--For purposes of paragraph (e)(1)(i) of 
this section, an ``academic year'' is defined as the completion by a 
student of a total of three (3) trimesters, whether at the Academy or 
at sea. Thus, liability under paragraph (e)(1)(i) begins for students 
when they begin their seventh (7th) trimester, whether at the Academy 
or at sea.
Section 310.58(e)(2) Breach After Graduation
    Section 310.58(e)(2)(i)--Individuals who breach their service 
obligations after graduation are subject to be ordered to active duty 
in the Armed Forces of the United States for a period of time of not 
less than three (3) years and not more than the unexpired portion of 
the five (5) years of service required in the foreign and domestic 
commerce or the national defense of the United States following 
graduation.
    Section 310.58(e)(2)(ii)--If the Secretary of Defense is unable or 
unwilling to order an individual to active duty or if the Maritime 
Administrator determines that reimbursement of the Cost of Education 
Provided would better serve the interests of the United States, the 
Maritime Administrator may recover from the defaulting individual the 
Cost of Education Provided by the Federal Government.
    Section 310.58(e)(2)(iii) sets forth the discretionary authority of 
the Maritime Administrator to reduce the amount to be recovered from 
such defaulting individual to reflect partial performance of service 
obligations and such other factors as the Maritime Administrator 
determines merit such reduction. This provision is in addition to the 
Maritime Administrator's authority to waive the service obligations as 
set forth in section 310.58(f).
    Section 310.58(h)(2)(iii)--Reflects that graduates are required to 
keep the Office of Policy and Plans, as opposed to the Office of 
Maritime Labor, Training and Safety, aware of the graduates' current 
mailing addresses.
    Section 310.58(i)--This new paragraph reflects that the 
Administration is now authorized to collect debts owed to the Federal 
Government by commencing court proceedings as well as utilizing the 
Federal debt collection procedures set forth in chapter 176, title 28 
of the United States Code and other applicable administrative remedies 
for debt collection. Such administrative collection options include 
offsetting debts against defaulting individuals' tax refunds.

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 economic impact associated with this 
rule, if any, should be minimal; therefore, further regulatory 
evaluation is not necessary. This final rule is intended only to update 
provisions in part 310 to conform to the National Defense Authorization 
Act for Fiscal Year 2004 and to make technical changes and corrections.

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 only updates existing regulations to conform to 
the National Defense Authorization Act for Fiscal Year 2004 and makes 
non-substantive technical corrections. While MARAD solicited public 
comments on the interim final rule, no comments were received.

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 is intended only to update provisions in part 
310, which do not affect a substantial number of small entities, but 
instead affect the United States Merchant Marine Academy, State 
maritime academies, and students thereof.

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

[[Page 28833]]

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 the 
objective of the rule.

Paperwork Reduction Act

    This rulemaking contains no new or amended information collection 
or recordkeeping requirements that have been approved or require 
approval by the Office of Management and Budget.

List of Subjects in 46 CFR Part 310

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


0
Accordingly, the interim final rule amending 46 CFR part 310 that was 
published in the Federal Register on June 8, 2004 (69 FR 31897), is 
adopted as a final rule with the following changes.

PART 310--MERCHANT MARINE TRAINING

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.  310.7 by revising paragraph (b)(5) to read as follows:


Sec.  310.7  Federal student subsistence allowances and student 
incentive payments.

* * * * *
    (b) * * *
    (5) Afloat employment year. For purposes of the service obligation, 
a satisfactory year of afloat employment shall be the lesser of--
    (i) 150 days; or
    (ii) The number of days employed afloat that is at least equal to 
the median number of days of seafaring employment under articles 
achieved by deck or engine officers in the most recent calendar year 
for which statistics are available.
* * * * *

0
3. Revise Sec.  310.12-1 to read as follows:


Sec.  310.12-1  Form of Agreement.

    The form of agreement between the Maritime Administrator and 
schools for annual maintenance and support payments, Federal student 
subsistence and incentive payments and fuel assistance under the 1958 
Act and the Act may be obtained from the Office of Policy and Plans, 
Maritime Administration, 400 7th St., SW., Washington, DC 20590.

0
4. Amend Sec.  310.58 by revising paragraph (b) to read as follows:


Sec.  310.58  Service obligation for students executing or reexecuting 
contracts.

* * * * *
    (b) Service as a merchant marine officer. For purposes of the 
service obligation set forth in paragraph (a)(5)(i) of this section, a 
satisfactory year of service on vessels in the United States merchant 
marine as a merchant marine officer shall be the lesser of--
    (1) 150 days; or
    (2) The number of days that is at least equal to the median number 
of days of seafaring employment under articles achieved by deck or 
engine officers in the most recent calendar year for which statistics 
are available.
* * * * *

    By Order of the Maritime Administrator.

    Dated: May 12, 2005.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 05-9824 Filed 5-18-05; 8:45 am]
BILLING CODE 4910-81-P