[Federal Register Volume 74, Number 211 (Tuesday, November 3, 2009)]
[Proposed Rules]
[Pages 56756-56757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-26402]


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FEDERAL MARITIME COMMISSION

46 CFR Part 540

[Docket No. 02-15]


Passenger Vessel Financial Responsibility

AGENCY: Federal Maritime Commission.

ACTION: Termination of proposed rulemaking.

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SUMMARY: The Commission has determined to terminate the Proposed 
Rulemaking published on October 31, 2002, in FMC Docket No. 02-15. The 
Proposed Rule would have amended the Commission's passenger vessel 
regulations at 46 CFR Part 540, which implement the statutory 
requirement to provide proof of passenger vessel financial 
responsibility.

ADDRESSES: Address all comments and inquiries concerning this 
termination to: Karen V. Gregory, Secretary, Federal Maritime 
Commission, 800 North

[[Page 56757]]

Capitol Street, NW., Room 1046, Washington, DC 20573-0001, (202) 523-
5725, E-mail: [email protected].

FOR FURTHER INFORMATION CONTACT: Peter J. King, General Counsel, 
Federal Maritime Commission, 800 North Capitol Street, NW., Room 1018, 
Washington, DC 20573-0001, (202) 523-5740, E-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:
    By Notice of Proposed Rulemaking published October 31, 2002, 67 FR 
66352, the Commission proposed amendments to its passenger vessel 
regulations at 46 CFR Part 540. These regulations implement the 
statutory requirement to provide proof of passenger vessel financial 
responsibility under Sections 2 and 3 of Public Law 89-777, now 
recodified at 46 U.S.C. 44101-44103. The proposed amendments would 
have: eliminated the current ceiling on required performance coverage; 
adjusted the amount of coverage required by providing for consideration 
of the obligations of credit card issuers; provided for the use of 
Alternative Dispute Resolution (ADR), including the Commission's ADR 
program, in resolving passenger performance claims; revised the 
application form, and made other technical changes. By reason of the 
scope of the changes proposed, the Commission sought to revise and 
republish in their entirety the Commission's passenger vessel operator 
(PVO) rules at 46 CFR Part 540.
    The Commission's proposed rule elicited a broad range of comments 
from many sectors of the cruise industry. Comments were received from 
cruise lines, travel agents, individual ports servicing the cruise 
industry, state ports councils; and from the surety industry, banking 
industry and the credit card companies as well as trade associations 
representing these sectors of the industry. Comments were submitted 
both to the Commission and also to the Office of Management and Budget. 
In recognition of broad public interest in the rulemaking, the 
Commission initially extended the comment period for receiving written 
submissions and ultimately convened a public hearing to accept oral 
comments. Comments and status updates continued to be received by the 
Commission through April 2004.
    Written and oral comments revealed wide-spread differences of 
opinion on both questions of fact and law with respect to the proposed 
rule, with particular aspects supported (or opposed) by one trade 
sector or another. More than 5 years have now passed since the 
Commission last received comments on the proposed rule. The record in 
this proceeding has effectively become stale, failing to account for 
changes in the industry that include, but are not limited to, the 
recent economic downturn that has greatly impacted most segments of the 
domestic and world economies. The Commission has determined that the 
record amassed in prior years is no longer legally sufficient to 
sustain contemporary efforts to either adopt or propose new 
alternatives to the Commission's financial responsibility requirements 
for PVOs.
    For these reasons, the Commission has decided to terminate the 
Notice of Proposed Rulemaking published on October 31, 2002, 67 FR 
66352. Should the Commission decide to move forward with revising its 
passenger vessel regulations, the industry will be provided further 
opportunity to submit comments.

    By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. E9-26402 Filed 11-2-09; 8:45 am]
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