[Federal Register Volume 75, Number 88 (Friday, May 7, 2010)]
[Proposed Rules]
[Pages 25137-25150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-10723]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 173, 174, 181, and 187

[Docket No. USCG-2003-14963]
RIN 1625-AB45


Changes to Standard Numbering System, Vessel Identification 
System, and Boating Accident Report Database

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to amend its rules related to 
numbering of undocumented vessels and reporting of casualties. These 
changes would align and modernize terminology used in the Standard 
Numbering System (SNS), the Vessel Identification System (VIS), and 
casualty reporting; require validation of vessel hull identification 
numbers; require SNS vessel owners to provide personally identifiable 
information; and provide administrative flexibility for States. 
Together, the proposed changes would improve recreational boating 
safety efforts, enhance law enforcement capabilities, advance maritime 
security, and clarify requirements for all stakeholders.

DATES: Comments and related material must either be submitted to our 
online docket via http://www.regulations.gov on or before August 5, 
2010 or reach the Docket Management Facility by that date. Comments 
sent to the Office of Management and Budget (OMB) on collection of 
information must reach OMB on or before August 5, 2010.

ADDRESSES: You may submit comments identified by docket number USCG-
2003-14963 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax: 202-493-2251.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of 
Transportation, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue, SE., Washington, DC 20590-0001.

[[Page 25138]]

    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    To avoid duplication, please use only one of these four methods. 
See the ``Public Participation and Request for Comments'' portion of 
the SUPPLEMENTARY INFORMATION section below for instructions on 
submitting comments.
    Collection of Information Comments: If you have comments on the 
collection of information discussed in section V.D of this NPRM, you 
must also send comments to the Office of Information and Regulatory 
Affairs (OIRA), Office of Management and Budget. To ensure that your 
comments to OIRA are received on time, the preferred methods are by e-
mail to [email protected] (include the docket number and 
``Attention: Desk Officer for Coast Guard, DHS'' in the subject line of 
the e-mail) or fax at 202-395-6566. An alternate, though slower, method 
is by U.S. mail to the Office of Information and Regulatory Affairs, 
Office of Management and Budget, 725 17th Street, NW., Washington, DC 
20503, ATTN: Desk Officer, U.S. Coast Guard.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed 
rule, write, call or e-mail Mr. Jeff Ludwig at 2100 2nd St., SW. Stop 
7581, Washington, DC 20593-7581; telephone 202-372-1061, or e-mail 
[email protected]. If you have questions on viewing or 
submitting material to the docket, call Renee V. Wright, Program 
Manager, Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Public Meeting
II. Abbreviations
III. Background
IV. Discussion of Proposed Rule
V. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting 
comments and related materials to us. All comments received will be 
posted without change to http://www.regulations.gov and will include 
any personal information you provide.

A. Submitting Comments

    If you submit a comment, please include the docket number for this 
rulemaking (USCG-2003-14963), indicate the specific section of this 
document to which each comment applies, and provide a reason for each 
suggestion or recommendation. You may submit your comments and material 
online or by fax, mail, or hand delivery, but please use only one of 
these means. We recommend that you include your name and a mailing 
address, an e-mail address, or a phone number in the body of your 
document so that we can contact you if we have questions regarding your 
submission.
    To submit your comment online, go to http://www.regulations.gov, 
click on the ``submit a comment'' box, which will then become 
highlighted in blue. In the ``Document Type'' drop down menu select 
``Proposed Rule'' and insert ``USCG-2003-14963'' in the ``Keyword'' 
box. Click ``Search''; then click on the balloon shape in the 
``Actions'' column. If you submit your comments by mail or hand 
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11 
inches, suitable for copying and electronic filing. If you submit 
comments by mail and would like to know that they have reached the 
Facility, please enclose a stamped, self-addressed postcard or 
envelope.
    We will consider all comments and material received during the 
comment period and may change this proposed rule based on your 
comments.

B. Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble 
as being available in the docket, go to http://www.regulations.gov, 
click on the ``read comments'' box, which will then become highlighted 
in blue. In the ``Keyword'' box insert USCG-2003-14963 and click 
``Search.'' Click the ``Open Docket Folder'' in the ``Actions'' column. 
If you do not have access to the internet, you may view the docket 
online by visiting the Docket Management Facility in Room W12-140 on 
the ground floor of the Department of Transportation West Building, 
1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. We have an 
agreement with the Department of Transportation that allows you to use 
the Docket Management Facility.

C. Privacy Act

    Anyone can search the electronic form of comments received into any 
of our dockets by the name of the individual submitting the comment (or 
signing the comment, if submitted on behalf of an association, 
business, labor union, etc.). You may review a Privacy Act notice 
regarding our public dockets in the January 17, 2008 issue of the 
Federal Register (73 FR 3316).

D. Public Meeting

    We do not plan to hold a public meeting. But you may submit a 
request for one to the docket using one of the methods specified under 
ADDRESSES. In your request, explain why you believe a public meeting 
would be beneficial. If we determine that one would aid this 
rulemaking, we will hold one at a time and place to be announced by a 
later notice in the Federal Register.

II. Abbreviations

BARD Boating Accident Report Database
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
HIN Hull Identification Number
NBSAC National Boating Safety Advisory Council
PII Personally Identifiable Information
Sec.  Section symbol
SNS Standard Numbering System
U.S.C. United States Code
VIS Vessel Identification System

III. Background

    Coast Guard regulations in 33 CFR parts 173 and 174 implement two 
statutory mandates relating to undocumented vessels equipped with 
propulsion machinery of any kind. First, the regulations provide for a 
Standard Numbering System (SNS) that assigns unique identification 
numbers to those vessels, as required by 46 U.S.C. 12302. Each State 
voluntarily uses the SNS to number vessels that are registered in that 
State.\1\ Second, the regulations provide for the uniform reporting by 
each State of recreational vessel casualty and accident data, as 
required by 46 U.S.C. 6102. We maintain a Boating

[[Page 25139]]

Accident Report Database (BARD) for this data.
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    \1\ If a State does not have a numbering system consistent with 
the SNS, or does not issue identification numbers to vessels 
registered in that State, the Coast Guard issues those vessels 
identification numbers under the SNS. ``State'' is defined in 33 CFR 
173.3 as ``a State of the United States, the Commonwealth of Puerto 
Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the District of Columbia.''
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    We are also statutorily required to maintain a Vessel 
Identification System (VIS) that covers not only the undocumented 
vessels to which SNS applies, but also documented vessels and any 
vessel titled under State law (46 U.S.C. 12501). VIS makes vessel 
identification information available, for law enforcement or other 
purposes, to the Coast Guard and to States that voluntarily comply with 
its data sharing requirements. VIS was developed in coordination with 
relevant State agencies and became operational in 2007. To date, many 
States have opted to participate in VIS. VIS regulations appear in 33 
CFR part 187.
    Because of our role as the coordinator of the National Recreational 
Boating Safety Program, our leadership position in maritime law 
enforcement and maritime security efforts, and our partnership with 
other Federal and State agencies with similar responsibilities, we seek 
continual improvement in the efficiency and effectiveness of SNS, BARD, 
and VIS. This rulemaking proposes several changes that are intended to 
further those improvements. Many of the proposed changes were initially 
suggested by the National Boating Safety Advisory Council (NBSAC), a 
21-member group that operates under the Federal Advisory Committee Act 
to advise the Coast Guard on recreational boating safety issues. NBSAC 
consists of seven representatives of State officials responsible for 
State boating safety programs; seven representatives of recreational 
vessel manufacturers and associated equipment manufacturers; and seven 
representatives of national recreational boating organizations and from 
the general public, at least five of whom must be representatives of 
national recreational boating organizations.

IV. Discussion of Proposed Rule

    We propose the following changes. We intend to phase-in many of the 
most substantive proposed changes over three years, and we specifically 
invite public comment on whether that phase-in period is adequate.
    Terminology alignment. We propose aligning the terminology used by 
SNS, BARD, and VIS to describe recreational vessels and their 
operation. This will leverage our ability to coordinate data from all 
three databases to facilitate boating safety, law enforcement, and 
maritime security purposes.
    Terminology modernization and harmonization. We propose updating 
the terminology used by SNS, BARD, and VIS to reflect today's 
recreational boating environment. For example, we propose new language 
to recognize the increased use of personal watercraft, towed 
watersports, and pod drive propulsion systems; and updated terminology 
to describe how recreational vessels are operated. We will also 
harmonize language in our regulations with wording changes made in the 
1983 revision of Title 46 of the U.S. Code.
    Hull identification numbers (HINs). We propose requiring the States 
administering SNS to ensure that each SNS-registered vessel built after 
November 1, 1972, when the original HIN regulations took effect, has or 
obtains a valid HIN. Many vessels that are required to have a valid HIN 
either lack any HIN or have a HIN that does not comply with current 
requirements. This proposal is intended to help deter theft and improve 
law enforcement and maritime security capabilities by ensuring that law 
enforcement officers can readily identify vessels by their HIN and, in 
turn, identify their rightful owners.
    Unique personal identifiers. For VIS vessel owners, we currently 
collect personally identifiable information (PII), like taxpayer 
identification numbers, as required by 46 U.S.C. 12501. This PII has 
high value for law enforcement and maritime security purposes because 
it provides unique information connecting individuals with the vessels 
they own. Additionally, 46 U.S.C. 12501(a)(2) and (b) require that the 
VIS contain the PII of the owners of vessels numbered under the SNS. 
Therefore, we propose requiring the collection of PII for SNS as well 
as VIS. This proposed change would align the SNS and VIS data elements 
that States must collect, which will facilitate law enforcement and 
maritime safety efforts by broadening and aligning the data available 
in these two systems, and may make it easier for States to decide to 
participate in VIS.
    Administrative flexibility. We propose some changes that would 
provide additional administrative flexibility for States. For example, 
we propose adding waiver provisions to VIS regulations in 33 CFR 
187.11. Waivers could allow a State to participate temporarily in VIS, 
despite the need for new State legislation or other action to bring the 
State into full compliance with our regulations, under a memorandum of 
agreement that sets conditions intended to ensure effective 
participation.
    Table 1 shows how these changes would apply to specific sections of 
Title 33 of the CFR. It omits discussion of several non-substantive 
style or format changes made solely to improve clarity or internal 
organization.

                  Table 1--Changes Proposed for 33 CFR
------------------------------------------------------------------------
    CFR section affected        Proposed changes         Discussion
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*Note: Substantive changes proposed for sections marked with an asterisk
 (*) in this table would be phased in over three years.
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Purpose, Sec.   173.1.......  Clarify that Part     Clarification.
                               173 has preemptive
                               effect over State
                               or local regulation.
Definitions, Sec.   173.3...  Add or revise         Align with
                               definitions.          substantive changes
                                                     elsewhere in the
                                                     proposal.
Vessel number required, Sec.  Substitute ``State    Modernize/harmonize
   173.15.                     of principal          terminology.
                               operation'' for
                               ``State in which
                               the vessel is
                               principally used.''
Other numbers prohibited,     Substitute            Modernize/harmonize
 Sec.   173.19.                ``operate'' for       terminology.
                               ``use.''.
Certificate of number         Substitute            Modernize/harmonize
 required, Sec.   173.21.      ``operate'' and       terminology.
                               ``operated'' for
                               ``use'' and
                               ``used.''
Inspection of certificate,    Substitute            Modernize/harmonize
 Sec.   173.23.                ``operating'' for     terminology.
                               ``using.''.
Location of certificate of    Substitute            Modernize/harmonize
 number, Sec.   173.25.        ``operate'' for       terminology.
                               ``use.''.
Removal of number, Sec.       Substitute            Modernize/harmonize
 173.33.                       ``operated'' for      terminology.
                               ``used.''.
Coast Guard validation        Substitute            Modernize/harmonize
 sticker, Sec.   173.35.       ``operate'' for       terminology.
                               ``use.''.
Applicability, Sec.   173.51  Substitute            Modernize/harmonize
                               ``operated'' for      terminology.
                               ``used.''.

[[Page 25140]]

 
Contents of report,* Sec.     Amend current         (c)(10), (c)(21)-
 173.57.                       section so that it    (c)(24): Align and
                               remains in effect     modernize/harmonize
                               only until January    terminology.
                               of the year
                               following the third
                               anniversary of the
                               final rule's taking
                               effect.
                              Add new (c),          (c)(14), (c)(16):
                               containing            Facilitate accident
                               provisions that       investigations by
                               would take effect     collecting
                               in January of the     information about
                               year following the    the owners of
                               third anniversary     damaged property
                               of the final          and about fire
                               rules's taking        extinguishers on
                               effect.               vessels involved in
                                                     accidents.
                                                    The phase-in period
                                                     allows adequate
                                                     time for transition
                                                     and ensures a
                                                     uniform date for
                                                     revising the data
                                                     to be reported in
                                                     all States.
Where to report, Sec.         Delete option of      Require report to be
 173.59.                       reporting accident    filed where
                               elsewhere than in     accident occurred
                               the State where the   because this has
                               accident occurred.    greater relevance
                                                     than a report to
                                                     the State of
                                                     principal operation
                                                     or of certificate
                                                     issuance.
Application for and issuance  Authorize issuance    Clarify authority
 of certificate of number,     of original or        and make it
 Sec.   173.71.                duplicate             explicit. Modernize/
                               certificates.         harmonize
                                                     terminology.
Duplicate certificate of      Remove section......  Transfer substance
 number, Sec.   173.73.                              to Sec.   173.71.
Validity of certificate of    Substitute            Modernize/harmonize
 number, Sec.   173.77.        ``operated'' for      terminology.
                               ``used.''.
Issuing authorities and       Substitute            Modernize/harmonize
 reporting authorities, 33     ``operation'' for     terminology.
 CFR Part 173, Appendix A.     ``use.''.
Applicability, Sec.   174.1.  Clarify that Part     Clarification.
                               174 has preemptive
                               effect over State
                               or local regulation.
Definitions, Sec.   174.3...  Add or revise         Align with
                               definitions.          substantive changes
                                                     elsewhere in the
                                                     proposal.
Verification of hull          Require States to     Per text discussion
 identification number,*       verify vessel's       of HINs.
 Sec.   174.16.                compliance with HIN
                               requirements, or to
                               assign valid HIN,
                               using methods of
                               the State's choice.
                              Allow States up to    Effective date is
                               three years to        intended to give
                               implement the         the states up to
                               changes.              three years to
                                                     implement the
                                                     changes. States
                                                     will have up to
                                                     three additional
                                                     years to update
                                                     boat registration
                                                     information
                                                     depending on
                                                     registration cycle.
Contents of application for   Require unique        Per text discussion
 certificate of number,*       personal identifier.  of unique personal
 Sec.   174.17.                                      identifiers. Align
                                                     and modernize/
                                                     harmonize
                                                     terminology.
                              (c) Allow States up   Up to three years
                               to three years to     after final rule
                               implement the         for States to
                               changes.              implement changes.
                                                    Up to three
                                                     additional years
                                                     for States to
                                                     update boat
                                                     registration.
Contents of a certificate of  Delete current        Eliminate option, to
 number,* Sec.   174.19.       option for owners     facilitate data
                               of vessels with       verification for
                               HINs to omit          law enforcement and
                               information about     maritime security
                               the vessel's make,    purposes by
                               manufacture date,     ensuring that full
                               length, type, hull    information is
                               material,             available for
                               propulsion method,    enforcement or
                               and fuel; and make    security personnel.
                               other minor changes.  Align and modernize/
                                                     harmonize
                                                     terminology.
                              Allow States up to    Up to three years
                               three years to        after final rule
                               implement the         for States to
                               changes.              implement changes.
                                                    Up to three
                                                     additional years
                                                     for States to
                                                     update boat
                                                     registration.
Temporary certificates,*      Clarify, add HIN as   Per text discussion
 Sec.   174.21.                required              of HINs. Clarify
                               information,          and modernize/
                               substitute            harmonize
                               ``operated'' for      terminology.
                               ``used.''
                              Allow States up to    Up to three years
                               three years to        after final rule
                               implement the         for States to
                               changes.              implement changes.
                                                    Up to three
                                                     additional years
                                                     for States to
                                                     update boat
                                                     registration.
Forwarding of casualty or     Add electronic        Allow for choices in
 accident reports, Sec.        submission option.    reporting method,
 174.121.                      Change address.       align with Federal
                                                     e-Government
                                                     initiatives, and
                                                     update information.
Coast Guard address, Sec.     Change address......  Update information.
 174.125.
Purpose and applicability,    Clarify that Part     Clarification.
 Sec.   181.1.                 181 has preemptive
                               effect over State
                               or local regulation.
Definitions, Sec.   181.3...  Add or revise         Align with
                               definitions.          substantive changes
                                                     elsewhere in the
                                                     proposal.
Hull identification numbers   Add new (b) (revise   Per text discussion
 required, Sec.   181.23.      and relocate          of HINs.
                               current language
                               from Sec.
                               181.31(c)).
                              Substitute ``agency   Provide flexibility
                               designated by the     for States to
                               issuing authority''   designate, as HIN
                               for references to     number assignor,
                               the State boating     agencies other than
                               law administrator.    the State boating
                                                     law administrator.

[[Page 25141]]

 
Manufacturer identification   Remove (c)
 code assignment, Sec.         (relocated to Sec.
 181.31.                        181.23).
How is a State's              Revise section......  Per text discussion
 participation in VIS                                of administrative
 documented? Sec.   187.11.                          flexibility.
What information must be      Add ``of vessel'' in  Clarify (h) and
 collected to identify a       (h), and revise (i)-  align and modernize/
 vessel? Sec.   187.103.       (n).                  harmonize
                                                     terminology in (i)-
                                                     (n).
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V. Regulatory Analyses

    We developed this proposed rule after considering numerous statutes 
and executive orders related to rulemaking. Below we summarize our 
analyses based on 13 of these statutes or executive orders.

A. Regulatory Planning and Review

    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866, Regulatory Planning and Review, 
and does not require an assessment of potential costs and benefits 
under section 6(a)(3) of that Order. The Office of Management and 
Budget has not reviewed it under that Order.
    A combined ``Preliminary Regulatory Analysis and Initial Regulatory 
Flexibility Analysis'' is available in the docket where indicated under 
the ``Public Participation and Request for Comments'' section of this 
preamble. A summary of the analysis follows:
    Coast Guard regulations in 33 CFR parts 173 and 174 implement two 
statutory mandates relating to undocumented vessels equipped with 
propulsion machinery of any kind. First, the regulations provide for an 
SNS that assigns unique identification numbers to those vessels, as 
required by 46 U.S.C. 12302. Second, the regulations provide for the 
uniform reporting by each State \2\ of recreational vessel casualty and 
accident data, as required by 46 U.S.C. 6102. The Coast Guard maintains 
a Boating Accident Report Database (BARD) that contains this 
information.
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    \2\ Throughout the Regulatory Analyses section, ``State'' refers 
not only to a State of the United States, but also to the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and the 
District of Columbia.
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    The Coast Guard is statutorily required to maintain a Vessel 
Identification System (VIS), which covers not only the undocumented 
vessels to which SNS applies, but also documented vessels and any 
vessel titled under State law. VIS comprises a nationwide information 
system for identifying recreational, commercial, and public vessels 
that are numbered or titled under the laws of a state or territory. VIS 
includes information identifying vessels, vessel owners and information 
to assist law enforcement officials in the investigation of stolen 
vessels or other legal investigation, such as fraud. That information 
includes the personally identifiable information required by 46 U.S.C. 
12501(a)(2) and (b).
    The Coast Guard proposes to amend its rules to promote uniformity 
between the Standard Numbering System (SNS), the Vessel Identification 
System (VIS), and Boating Accident Report Database (BARD).
    The proposed changes would enhance the capabilities of Federal, 
State, and local boating safety and law enforcement officials. These 
proposed changes would result in additional costs and benefits. In 
general, this rulemaking would:
     Require issuance of a valid HIN to vessels that do not 
already have one. This would be phased in only as certificates of 
number are issued or renewed or upon the transfer of a vessel's 
ownership.
     Align terminology used by SNS, BARD, and VIS to describe 
recreational vessels and their operation.
     Modernize terminology to reflect statutory usage and 
current recreational vessel types, operations and equipment. States 
would have up to three years in which to update their systems to use 
the newer terminology.
     Require the collection of unique identification 
information for each vessel owner who applies for an SNS number. States 
would have up to three years in which to implement this change.
     Provide administrative flexibility for States to 
designate, as HIN number assignor, agencies other than the State 
boating law administrator.
    We estimate that this proposed rule would affect approximately 12.4 
million recreational vessels. The harmonization of terminology and the 
additional questions on the forms used to collect the data for the SNS 
would affect all recreational vessels. The harmonization of terminology 
and the additional questions on the forms used to collect information 
from boating casualties would affect those recreational vessels 
involved in boating accidents. There are approximately 5,094 boating 
accidents annually. Approximately 91 percent of recreational boats 
affected by this rulemaking appear to be in compliance with the HIN 
requirement already, leaving 9 percent potentially needing to have the 
HIN verified or affixed.\3\
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    \3\ We obtained information on boat hull identification numbers 
from Info-Link, which is the company that administers the Coast 
Guard's Vessel Identification System.
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    The implementation of these requirements would begin in the third 
year of the effective date of the proposed rule, so costs would be 
incurred during the third year of the period of analysis. There would 
be a three-year implementation period for requirements from the third 
year through the fifth year. We estimated the total average costs of 
this rulemaking over a 10-year period as summarized in Table 1. Costs 
are presented as undiscounted and discounted estimates.

                        Table 1--Summary of Costs
                          [Millions of dollars]
------------------------------------------------------------------------
                                                          Discount rate
                  Year                    Undiscounted -----------------
                                                           7%       3%
------------------------------------------------------------------------
1.......................................        $0.0       $0.0     $0.0
2.......................................         0.0        0.0      0.0
3.......................................        16.5       13.5     15.1
4.......................................        10.2        7.8      9.0
5.......................................         7.9        5.6      6.8
6.......................................         3.8        2.5      3.2
7.......................................         3.8        2.4      3.1
8.......................................         3.8        2.2      3.0
9.......................................         3.8        2.1      2.9
10......................................         3.8        1.9      2.8
                                         -------------------------------
    Total...............................        53.6       38.0     46.0
------------------------------------------------------------------------
* Figures may not total due to rounding.

    In the initial year of implementation (year 3), we estimate the 
cost of the rulemaking to be $16.5 million (undiscounted). We estimate 
the annual recurring costs to be $3.8 million (undiscounted) after the 
three-year implementation period. We estimate the total present value 
cost over a 10-year period of analysis to be $38.0 million,

[[Page 25142]]

discounted at 7 percent, and $46.0 million, discounted at 3 percent.
    The main cost driver for this proposed rule is the verification of 
the HIN by the issuing authority with documentation or visual 
inspection of the vessel when no proper record of the HIN exists. The 
issuing authority, usually the State, would have the option to choose 
the most suitable verification method. For example, some States might 
require the vessel owner to take the vessel to a specific location for 
verification, while others might assign personnel to conduct 
verification at marinas or merely require the vessel owner to file a 
sworn compliance affidavit. The HIN verification makes up over 90% 
percent ($15.3 million, non-discounted) of the first-year cost of 
implementation and over 70% ($2.8 million, non-discounted) of the 
annual recurring cost after the three-year implementation period of 
this proposed rule.
    In this rulemaking, the Coast Guard is proposing requirements that 
are intended to improve the information within various databases by 
increasing the quality of the information and by harmonizing 
terminology. This enhanced information and subsequent cross-reference 
between the databases is a benefit that would accrue to all users of 
these databases. The Coast Guard and other users of the SNS, VIS and 
BARD information utilize it in their decision-making processes. 
Sometimes these are decisions made by law enforcement in the field, 
such as boarding officers, in determining how best to investigate an 
accident involving a vessel.\4\ The information would also prove useful 
in decision-making and analysis when it comes to future boating safety 
rulemakings.
---------------------------------------------------------------------------

    \4\ See the Collection of Information OMB 1625-0108 supporting 
documentation for further information.
---------------------------------------------------------------------------

    Some of the benefits of the proposed HIN verification may accrue to 
the boat-owner or other entity associated with the vessel. For example, 
a verified HIN properly linked to the boat-owner can aid in the return 
of a stolen vessel.
    The ``Preliminary Regulatory Analysis and Initial Regulatory 
Flexibility Analysis'' available on the docket provides additional 
detail on the costs and benefits of this rulemaking. The Coast Guard 
urges interested parties to submit comments that specifically address 
the economic impacts of this rulemaking. Comments can be made as 
indicated in the ADDRESSES section.

B. Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this proposed rule would have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of fewer than 
50,000 people.
    A combined ``Preliminary Regulatory Analysis and Initial Regulatory 
Flexibility Analysis'' discussing the impact of this proposed rule on 
small entities is available in the docket where indicated under the 
ADDRESSES section of this preamble. A summary of the analysis follows:
    The proposed rule would regulate recreational vessels. Individuals, 
such as the recreational vessel owners regulated by this rule, are not 
small entities under the definition of a small entity in the Regulatory 
Flexibility Act (RFA).\5\
---------------------------------------------------------------------------

    \5\ These are individuals that do not use vessels for commercial 
purposes.
---------------------------------------------------------------------------

    We estimate that there are potentially 136,209 owners of 
recreational vessels used for commercial purposes that may be affected 
by parts of this rulemaking. Of these, there are potentially 12,259 
owners of recreational vessels used for commercial purposes that may 
have to have the HIN of the vessel verified.
    Based on available data, we determined that over 90 percent of 
these entities are small by SBA size standards. We found that small 
entities affected by this proposed rule were small businesses 
consisting of owners and operators in the industry categories of engine 
equipment manufacturing, boat dealers, hotels, business support 
services and amusement and recreation.
    Based on our assessment of the impacts, we determined that all 
owners or operators affected by this rule would incur an economic 
impact of less than 1 percent of revenue. At this time, we have 
determined that this proposed rule would not have a significant 
economic impact on a substantial number of small entities under section 
605(b) of the Regulatory Flexibility Act.
    We are interested in the potential impacts from this proposed rule 
on small businesses and we request public comment on these potential 
impacts. If you think that your business, organization, or governmental 
jurisdiction qualifies as a small entity and that this rulemaking would 
have a significant economic impact on it, please submit a comment to 
the Docket Management Facility at the address under ADDRESSES. In your 
comment, explain why, how and to what degree you think this rule would 
have an economic impact on you.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking. If the 
proposed rule would affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance, please consult Jeff Ludwig, 
Office of Auxiliary and Boating Safety, 202-372-1061. The Coast Guard 
will not retaliate against small entities that question or complain 
about this rule or any policy or action of the Coast Guard.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

D. Collection of Information

    This proposed rule affects three collections of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). It would 
modify existing Office of Management and Budget (OMB) Collection of 
Information, OMB Control Number 1625-0003, ``Coast Guard Boating 
Accident Report Form,'' OMB Control Number 1625-0070, ``Vessel 
Identification System,'' and OMB Control Number 1625-0108, ``Standard 
Numbering System for Undocumented Vessels.''
    As defined in 5 CFR 1320.3(c), ``collection of information'' 
comprises reporting, recordkeeping, monitoring, posting, labeling, and 
other, similar actions. The title and description of the information 
collections, a description of those who must collect the information, 
and an estimate of the total annual burden follow. The estimate covers 
the time for reviewing instructions, searching existing sources of 
data, gathering and maintaining the data needed, and completing and 
reviewing the collection.
    The proposed rule would add to the recordkeeping and reporting

[[Page 25143]]

requirements of recreational vessel owners and agencies involved in 
issuing registrations for recreational vessels and reporting boating 
accidents.
    The issuing authority would have to modify the Boating Casualty 
Report form, modify the Certificate of Number application and, in cases 
where necessary, verify that a HIN is properly affixed to the vessel 
and recorded. The owners of recreational vessels would have to answer 
more questions when they or their vessels are involved in a boating 
accident and when applying for a Certificate of Number. Owners of 
recreational vessels that do not have a properly fixed or recorded HIN 
would have to allow the issuing authorities to verify the HIN.
    For additional detail and information on the burden of this 
proposed rule, see the Preliminary Regulatory Analysis available in the 
docket as listed under the ``Public Participation and Request for 
Comments'' section of this preamble. A summary of each collection 
amendment and associated burden follows:
    Title: Coast Guard Boating Accident Report Form.
    OMB Control Number: 1625-0003.
    Summary of the Collection of Information: Federal regulations (33 
CFR 173.55) require the operator of any vessel that is numbered or used 
for recreational purposes to submit an accident report to the issuing 
authority where the accident occurred.
    Need for Information: 46 U.S.C. 6102(a) requires a uniform marine 
casualty reporting system, with regulations prescribing casualties to 
be reported and the manner of reporting.
    Proposed Use of Information: The Coast Guard uses accident data and 
statistical information received from the current collection to 
establish National Recreational Boating Safety (RBS) Program goals, 
objectives, strategies and performance measures; report RBS Program 
performance to Congress in the performance and budget reports; identify 
possible manufacturer defects in boats or equipment; develop boat 
manufacturing standards; develop safe boating education and accident 
prevention programs; and publish accident statistics in accordance with 
Title 46 U.S.C. 6102.
    Description of Respondents: Operators of recreational boats and 
governments of States.
    Number of Respondents/Reports: The estimated number of respondents 
is 56, both current and revised. The revised estimated number of 
reports is 5,094 compared to the current estimate of 5,000. The higher 
number of reports is based on an increase in the average number of 
reports, not a programmatic change.
    Frequency of Response: On occasion. Specifically, within 30 days of 
their receipt of a report as prescribed by 33 CFR 174.121 (Forwarding 
of casualty or accident reports).
    Burden of Response: The estimated revised burden is 2,972 hours per 
year. The current burden is 2,500. There is an estimated 35-minute 
burden to a respondent for each report filed for an annual estimated 
burden of 2,972 hours for the estimated 5,094 reports (5,094 reports * 
0.583 hours = 2,972 hours).

    Title: Vessel Identification System.
    OMB Control Number: 1625-0070.
    Summary of the Collection of Information: The Coast Guard 
established a nationwide vessel identification system (VIS) and 
centralized certain vessel documentation functions. VIS provides 
participating States with access to data on vessels numbered by States. 
Participation in VIS is voluntary.
    Need for Information: Title 46 U.S.C. 12501 mandates the 
establishment of a VIS. Title 33 CFR part 187 prescribes the 
requirements of VIS.
    Proposed Use of Information: This information collection supports 
the strategic goals of the Department of Homeland Security, the Coast 
Guard and the Marine Safety, Security and Stewardship Directorate (CG-
5).
    Description of Respondents: Operators of recreational boats and 
governments of States.
    Number of Respondents and Responses: The estimated number of 
respondents is 56, both revised and current. The revised estimate of 
the number of responses is 117,671 compared to the current 125,716. The 
decrease shown above is due to a reduction in the average number of 
responses and not a programmatic change.
    Frequency of Response: Daily.
    Burden of Response: The estimated burden has decreased from 5,829 
hours to the revised estimate of 5,456 hours a year. Each response is 
expected to take approximately 3 minutes (117,671 responses * 0.046 
hours = 5,456 hours; rounded).

    Title: Standard Numbering System for Undocumented Vessels.
    OMB Control Number: 1625-0108.
    Summary of the Collection of Information: The SNS collects 
information on undocumented vessels and vessel owners. States submit 
reports annually to the Coast Guard on the number, size, construction, 
etc., of the vessels they have numbered. That information is used by 
the Coast Guard in the publication of an annual ``Boating Statistics'' 
report required by 46 U.S.C. 6102(b), and for allocation of Federal 
funds to assist in carrying out the Recreational Boating Safety (RBS) 
Program established by 46 U.S.C. Chapter 131.
    Need for Information: On a daily basis or as warranted, Federal, 
State, and local law enforcement personnel use SNS information from the 
States' numbering systems for enforcement of boating laws or theft and 
fraud investigations. In addition, when encountering a vessel suspected 
of illegal activity, information from the SNS increases officer safety 
by assisting boarding officers in determining how best to approach a 
vessel.
    Proposed Use of Information: Federal, State, and local law 
enforcement personnel use SNS information from the States' numbering 
systems for enforcement of boating laws or theft and fraud 
investigations. The information is used by the Coast Guard for 
publication of an annual ``Boating Statistics'' report required by 46 
U.S.C. 6102(b) and for allocation of Federal funds to assist States in 
carrying out the Recreational Boating Safety (RBS) Program established 
by 46 U.S.C. Chapter 131.
    Description of Respondents: Operators of recreational boats and 
governments of States.
    Number of Respondents and Responses: The estimated number of 
respondents is 56, both revised and current. The revised estimate of 
the number of responses is 4,644,142 compared to the current 4,333,333.
    Frequency of Response: Daily as necessary.
    Burden of Response: The revised estimate of the number of burden 
hours per year is 379,852 compared to the current burden hours of 
286,458. There would be an average 5-minute burden per response for 
each report filed for an annual estimated burden of 379,852 hours for 
the estimated 4,644,142 responses.
    There are no collection costs to the Federal Government for the SNS 
because States implement the program.
    If you submit comments on the collection of information, submit 
them both to OMB and to the Docket Management Facility as indicated 
under ADDRESSES, by the date under DATES.
    You need not respond to a collection of information unless it 
displays a currently valid control number from OMB. Before the Coast 
Guard could enforce the collection of information requirements in this 
proposed rule, OMB would need to approve the Coast Guard's request to 
collect this information.

[[Page 25144]]

E. Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them. It is well settled that States may 
not regulate in categories reserved for regulation by the Coast Guard.
    The regulations in 33 CFR part 173 subparts A, B, and D, and Part 
174 subparts A, B, and D, are issued pursuant to 46 U.S.C. 12301 and 
12302 and expressly preempt conflicting State or local regulation.
    The regulations in 33 CFR part 173 subpart C and part 174 subpart C 
are issued pursuant to 46 U.S.C. 6101. 46 U.S.C. 6101 states that ``The 
Secretary shall prescribe regulations on the marine casualties to be 
reported and the manner of reporting.'' The statute requires, among 
other things, the reporting of the death of an individual, serious 
injury to an individual, material loss of property, material damage 
affecting the seaworthiness or efficiency of the vessel, and 
significant harm to the environment.
    The Supreme Court has held that ``Congress intended that the Coast 
Guard regulations be the sole source of a vessel's reporting 
obligations * * *'' and that Coast Guard regulations promulgated 
pursuant to the authority of 46 U.S.C. 6101 were not intended by 
Congress ``to be cumulative to those enacted by each political 
subdivision whose jurisdiction a vessel enters.'' See the decision of 
the Supreme Court in the consolidated cases of United States v. Locke 
and Intertanko v. Locke, 529 U.S. 89, 115-116 (2000). Therefore, the 
Coast Guard's view is that regulations issued under the authority of 46 
U.S.C. 6101 for marine casualty reporting requirements have preemptive 
effect over State regulation in these fields, except to the extent that 
Congress requires the Coast Guard to allow State casualty reporting 
systems pursuant to 46 U.S.C. Chapter 131.
    The regulations in 33 CFR part 181 are issued pursuant to 46 U.S.C. 
4302. Under 46 U.S.C. 4306, Federal regulations establishing minimum 
safety standards for recreational vessels and associated equipment, and 
establishing procedures and tests required to measure conformance with 
those standards preempt State law, unless the State law is identical to 
a Federal regulation or a State is specifically provided an exemption 
to those regulations, or permitted to regulate marine safety articles 
carried or used to address a hazardous condition or circumstance unique 
to that State.
    The regulations in 33 CFR part 187 are currently issued pursuant to 
46 U.S.C. 2103. We are proposing to add 46 U.S.C. 12501 as an 
additional authority. Because State participation in the VIS is 
entirely voluntary, the regulations in 33 CFR part 187 do not have 
preemptive impact over State regulation in this field. However, once 
electing to participate, a State must comply with the requirements of 
this part to ensure integrity and uniformity of information in both the 
SNS and VIS.
    The Coast Guard recognizes the key role State and local governments 
may have in making regulatory determinations. Additionally, sections 4 
and 6 of Executive Order 13132 require that for any rules with 
preemptive effect, the Coast Guard must provide elected officials of 
affected State and local governments and their representative national 
organizations the notice and opportunity for appropriate participation 
in any rulemaking proceedings, and to consult with such officials early 
in the rulemaking process. Therefore, we invite affected State and 
local governments and their representative national organizations to 
indicate their desire for participation and consultation in this 
rulemaking process by submitting comments to the docket using one of 
the methods specified under ADDRESSES. In accordance with Executive 
Order 13132, the Coast Guard will provide a federalism impact statement 
to document (1) the extent of the Coast Guard's consultation with State 
and local officials that submit comments to this proposed rule, (2) a 
summary of the nature of any concerns raised by State or local 
governments and the Coast Guard's position thereon, and (3) a statement 
of the extent to which the concerns of State and local officials have 
been met.

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 (adjusted for 
inflation) or more in any one year. Though this proposed rule would not 
result in such an expenditure, we do discuss the effects of this rule 
elsewhere in this preamble.

G. Taking of Private Property

    This proposed rule would not effect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

H. Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and 
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

I. Protection of Children

    We have analyzed this proposed rule under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This rule is not an economically significant rule and would not 
create an environmental risk to health or risk to safety that might 
disproportionately affect children.

J. Indian Tribal Governments

    This proposed rule does not have tribal implications under 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments, because it would not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.

K. Energy Effects

    We have analyzed this proposed rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy.

L. Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through the Office of Management and Budget, with an explanation of why 
using these standards would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or

[[Page 25145]]

operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This proposed rule does not use technical standards. Therefore, we 
did not consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this proposed rule under Department of Homeland 
Security Management Directive 023-01 and Commandant Instruction 
M16475.lD, which guide the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and 
have made a preliminary determination that this action is one of a 
category of actions which do not individually or cumulatively have a 
significant effect on the human environment. A preliminary 
environmental analysis checklist supporting this determination is 
available in the docket where indicated under the ``Public 
Participation and Request for Comments'' section of this preamble. This 
rule involves regulations which are editorial or procedural, such as 
those updating addresses or establishing application procedures; and 
regulations concerning manning, documentation, admeasurement, 
inspection, and equipping of vessels. We seek any comments or 
information that may lead to the discovery of a significant 
environmental impact from this proposed rule.

List of Subjects

33 CFR Part 173

    Marine safety, Reporting and recordkeeping requirements.

33 CFR Part 174

    Intergovernmental relations, Marine safety, Reporting and 
recordkeeping requirements.

33 CFR Part 181

    Labeling, Marine safety, Reporting and recordkeeping requirements.

33 CFR Part 187

    Administrative practice and procedure, Marine safety, Reporting and 
recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 33 CFR parts 173, 174, 181, and 187 as follows:

PART 173--VESSEL NUMBERING AND CASUALTY AND ACCIDENT REPORTING

    1. The authority citation for part 173 is revised to read as 
follows:

    Authority: 31 U.S.C. 9701; 46 U.S.C. 2110, 6101, 12301, 12302; 
OMB Circular A-25; Department of Homeland Security Delegation No. 
0170.1.

    2. Revise Sec.  173.1 to read as follows:


Sec.  173.1  Purpose; preemptive effect.

    This part prescribes requirements for numbering vessels and for 
reporting casualties and accidents to implement sections 6101, 6102, 
12301, and 12302 of Title 46, United States Code. The regulations in 
subparts A, B, and D of this part have preemptive effect over 
conflicting State or local regulation. The regulations in subpart C of 
this part have preemptive effect over State or local regulation within 
the same field, except to the extent that Congress requires the Coast 
Guard to allow State casualty reporting systems pursuant to 46 U.S.C. 
Chapter 131.
    3. Revise Sec.  173.3 to read as follows:


Sec.  173.3  Definitions.

    As used in this part:
    Airboat means a vessel that is typically flat-bottomed and 
propelled by an aircraft-type propeller powered by an engine.
    Auxiliary sail means a vessel whose primary method of propulsion is 
sail but has a secondary means of mechanical propulsion.
    Cabin motorboat means a type of vessel propelled by propulsion 
machinery that provides enclosed spaces inside the structure of the 
vessel.
    Certificate of number means a certificate issued by a State that 
meets the requirements of 33 CFR 174.19, containing vessel and vessel 
owner registration information for a vessel that is registered and 
issued a number in that State.
    Houseboat means a motorized vessel that is usually non-planing and 
designed primarily for multipurpose accommodation spaces with low 
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a serial number that meets 
the requirements of 33 CFR part 181, subpart C;
    Inboard, in the context of an engine, means an engine mounted 
inside the confines of a vessel which turns a drive shaft that runs 
through the bottom of the hull and is attached to a propeller or water 
jet at the other end.
    Inflatable boat means a vessel that uses air-filled flexible fabric 
for buoyancy.
    Issuing authority means a State listed in Appendix A of this part 
as having a numbering system approved by the Coast Guard, or the Coast 
Guard where a State numbering system has not been approved.
    Open motorboat means a type of vessel equipped with propulsion 
machinery which has an open load carrying area not protected from the 
entry of water by means of a continuous deck.
    Operate means use, navigate, or employ.
    Operator means the person who is in control or in charge of a 
vessel while it is in use.
    Outboard, in the context of an engine, means an engine with 
propeller or water jet integrally attached which is usually mounted at 
the stern of a vessel.
    Owner means a person who claims lawful possession of a vessel by 
virtue of a legal title or an equitable interest therein, which 
entitles him to such possession and includes co-owners.
    Paddlecraft means a vessel powered only by a craft's occupant(s) 
using a single or double bladed paddle as a lever without the aid of a 
fulcrum provided by oarlocks, thole pins, crutches, or similar 
arrangements.
    Permitted event means an organized water event of limited duration 
which is conducted according to a prearranged schedule and approved by 
the Coast Guard or by a State that has jurisdiction over the particular 
body of water on which the event will take place.
    Person means an individual, firm, partnership, corporation, 
company, association, joint-stock association, or governmental entity 
and includes a trustee, receiver, assignee, or similar representative 
of any of them.
    Personal watercraft means a vessel propelled by a water-jet pump or 
other machinery as its primary source of motive power which is designed 
to be operated by a person sitting, standing, or kneeling on the 
vessel, rather than the conventional manner of sitting or standing 
within the confines of the hull.
    Pod drive means an engine mounted in front of the transom of a 
vessel and attached through the bottom of the hull to a steerable 
propulsion unit.
    Pontoon boat means a vessel with a broad, flat deck that is affixed 
on top of closed cylinders which are used for buoyancy, the basic 
design of which is usually implemented with two rows of floats as a 
catamaran or with three rows of floats as a trimaran.
    Reporting authority means a State listed in Appendix A of this part 
as having a numbering system approved by the Coast Guard, or the Coast 
Guard

[[Page 25146]]

where a numbering system has not been approved.
    Rowboat means an open vessel manually propelled by oars.
    Sail only means a vessel propelled only by sails.
    State means a State of the United States, Guam, the Commonwealth of 
Puerto Rico, the Virgin Islands, American Samoa, the District of 
Columbia, the Commonwealth of the Northern Mariana Islands, and any 
other territory or possession of the United States.
    State of principal operation means the State on whose waters a 
vessel is or will be operated most during a calendar year.
    Sterndrive means an engine mounted in front of the transom of a 
vessel which is attached through the transom to a drive unit that is 
similar to the lower unit of an outboard. The engine turns a drive 
shaft that is attached to a propeller at the other end. A sterndrive is 
also known as an inboard-outdrive or an inboard-outboard.
    Towed watersports means any watersports activity that takes place 
when towed or pulled behind a boat, including, but not limited to, 
waterskiing, wakeboarding, parasailing, and tubing.
    Whitewater boating means any activity with a vessel on Class II and 
above rapid as determined by the six class International Scale of River 
Difficulty. This definition applies only to the sections of any river 
with such rapids and not the entire river.


Sec.  173.15  [Amended]

    4. In Sec.  173.15, remove the words ``State in which the vessel is 
principally used'' wherever they occur, and add, in their place, the 
words ``State of principal operation.''


Sec.  173.19  [Amended]

    5. In Sec.  173.19, remove the word ``use'' and add, in its place, 
the word ``operate.''


Sec.  173.21  [Amended]

    6. In Sec.  173.21(a) introductory text, remove the word ``use'' 
and add, in its place, the word ``operate,'' and in paragraph (a)(1), 
remove the word ``used'' and add, in its place, the word ``operated.''


Sec.  173.23  [Amended]

    7. In Sec.  173.23, remove the word ``using'' and add, in its 
place, the word ``operating.''


Sec.  173.25  [Amended]

    8. In Sec.  173.25, remove the word ``use'' and add, in its place, 
the word ``operate.''


Sec.  173.33  [Amended]

    9. In Sec.  173.33(c), remove the word ``used'' and add, in its 
place, the word ``operated.''


Sec.  173.35  [Amended]

    10. In Sec.  173.35, remove the word ``use'' and add, in its place, 
the word ``operate.''


Sec.  173.51  [Amended]

    11. In Sec.  173.51(a) introductory text and (a)(1), remove the 
word ``used'' and add, in its place, the word ``operated.''
    12. Revise Sec.  173.57 to read as follows:


Sec.  173.57  Contents of report.

    (a) Each report required by 33 CFR 173.55 must be in writing, dated 
upon completion, and signed by the person who prepared it.
    (b) Until January 1, [FOURTH YEAR FOLLOWING THE YEAR OF THE 
EFFECTIVE DATE OF THE FINAL RULE], each report must contain, if 
available, at least the following information about the casualty or 
accident:
    (1) Numbers and names of each vessel involved;
    (2) Name and address of each owner of each vessel involved;
    (3) Name of the nearest city or town, the county, the State, and 
the body of water;
    (4) Time and date the casualty or accident occurred;
    (5) Location on the water;
    (6) Visibility, weather, and water conditions;
    (7) Estimated air and water temperatures;
    (8) Name, address, age, or date of birth, telephone number, vessel 
operating experience, and boating safety training of the operator 
making the report;
    (9) Name and address of each operator of each vessel involved;
    (10) Number of persons on board or towed on skis by each vessel;
    (11) Name, address, and date of birth of each person injured or 
killed;
    (12) Cause of each death;
    (13) Weather forecasts available to, and weather reports used by, 
the operator before and during the use of the vessel;
    (14) Name and address of each owner of property involved;
    (15) Availability and use of personal flotation devices;
    (16) Type and amount of each fire extinguisher used;
    (17) Nature and extent of each injury;
    (18) Description of all property damage and vessel damage with an 
estimate of the cost of all repairs;
    (19) Description of each equipment failure that caused or 
contributed to the cause of the casualty;
    (20) Description of the vessel casualty or accident;
    (21) Type of vessel operation (cruising, drifting, fishing, 
hunting, skiing, racing, or other), and the type of accident 
(capsizing, sinking, fire, or explosion or other);
    (22) Opinion of the person making the report as to the cause of the 
casualty, including whether or not alcohol or drugs, or both, was a 
cause or contributed to causing the casualty;
    (23) Make, model, type (open, cabin, house, or other), beam width 
at widest point, length, depth from transom to keel, horsepower, 
propulsion (outboard, inboard, inboard outdrive, sail, or other), fuel 
(gas, diesel, or other), construction (wood, steel, aluminum, plastic, 
fiberglass, or other), and year built (model year), of the reporting 
operator's vessel;
    (24) Name, address, and telephone number of each witness;
    (25) Manufacturer's hull identification number, if any, of the 
reporting operator's vessel; and
    (26) Name, address, and telephone number of the person submitting 
the report.
    (c) Effective January 1, [THE FOURTH YEAR FOLLOWING THE YEAR OF THE 
EFFECTIVE DATE OF THE FINAL RULE], each report must contain, if 
available, at least the following information about the casualty or 
accident:
    (1) Numbers and names of each vessel involved;
    (2) Name and address of each owner of each vessel involved;
    (3) Name of the nearest city or town, the county, the State, and 
the body of water;
    (4) Time and date the incident occurred;
    (5) Location on the water;
    (6) Visibility, weather, and water conditions;
    (7) Estimated air and water temperatures;
    (8) Name, address, age or date of birth, telephone number, vessel 
operating experience, and boating safety training of the operator 
making the report;
    (9) Name and address of each operator of each vessel involved;
    (10) Number of persons on board (including people participating in 
towed watersports);
    (11) Name, address, and date of birth of each person injured or 
killed;
    (12) Cause of each death;
    (13) Weather forecasts available to, and weather reports used by, 
the operator before and during the use of the vessel;
    (14) Name, address, and telephone number of each owner of property 
damaged;

[[Page 25147]]

    (15) Availability and use of personal flotation devices;
    (16) Number and type of each fire extinguisher aboard the vessel;
    (17) Nature and extent of each injury;
    (18) Description of all property damage and vessel damage with an 
estimate of the cost of all repairs;
    (19) Description of each equipment failure that caused or 
contributed to the cause of the incident;
    (20) Description of the incident;
    (21) Characteristics of the reporting owner's or operator's vessel, 
as follows:
    (i) Make of vessel;
    (ii) Model;
    (iii) Model year;
    (iv) Manufacturer's hull identification number, if any;
    (v) Vessel type: Authorized terms are ``open motorboat'', ``cabin 
motorboat'', ``air boat'', ``inflatable boat'', ``auxiliary sail'', 
``sail only'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``houseboat'', ``rowboat'', or ``other'';
    (vi) Overall length of vessel;
    (vii) Horsepower;
    (viii) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other'';
    (ix) Propulsion type: Authorized terms are ``propeller'', ``sail'', 
``water jet'', ``air thrust'', ``manual'', or ``other'';
    (x) Fuel: Authorized terms are ``gas'', ``diesel'', ``electric'', 
or ``other'';
    (xi) Hull material: Authorized terms are ``wood'', ``aluminum'', 
``steel'', ``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', or 
``other'';
    (22) Operation of vessel at time of incident: Authorized terms are 
``maintaining course and speed'', ``changing course'' or ``changing 
speed'';
    (23) Activity at time of incident: Authorized terms are ``at 
anchor'', ``being towed'', ``commercial activity'', ``cruising'', 
``docking/undocking'', ``drifting'', ``fishing'', ``fueling'', 
``hunting'', ``launching'', ``making repairs'', ``racing'', ``rowing/
paddling'', ``sailing'', ``scuba diving/snorkeling'', ``starting 
engine'', ``swimming'', ``tied to dock/moored'', ``towed watersports'', 
``towing another vessel'', ``whitewater boating'', or ``other'';
    (24) Whether the incident took place during a permitted event (yes 
or no);
    (25) Type of incident: Authorized terms are ``capsizing'', ``carbon 
monoxide exposure'', ``collision with fixed object'', ``collision with 
floating object'', ``collision with vessel'', ``electrocution'', ``fall 
on/within a vessel'', ``fall overboard'', ``fire or explosion (fuel)'', 
``fire or explosion (other)'', ``flooding/swamping'', ``grounding'', 
``person leaves a vessel'', ``person ejected from vessel'', 
``sinking'', ``towed watersports mishap'', ``struck by vessel'', 
``struck by propeller or propulsion unit'', ``struck submerged 
object'', or ``other'';
    (26) Cause of incident, in the opinion of the person making the 
report, including whether or not alcohol or drugs, or both, was a cause 
or contributed to causing the incident;
    (27) Name, address, and telephone number of each witness; and
    (28) Name, address, and telephone number of the person submitting 
the report.
    13. Revise Sec.  173.59 to read as follows:


Sec.  173.59  Where to report.

    The report required by 33 CFR 173.55 must be submitted to the 
reporting authority, listed in Appendix A of this part, where the 
casualty or accident occurred.
    14. Revise Sec.  173.71 to read as follows:


Sec.  173.71  Application for and issuance of certificate of number.

    (a) The owner of a vessel to which 33 CFR 173.11 applies and for 
which a certificate of number is required may apply for that 
certificate to the issuing authority for the vessel's State of 
principal operation listed in Appendix A of this part. The application 
must be made in the manner specified by the issuing authority and must 
be accompanied by payment of any fee required by the issuing authority.
    (b) Upon determination that the owner's application for a 
certificate of number complies with the requirements of paragraph (a) 
of this section, the issuing authority may issue a certificate of 
number.
    (c) A duplicate certificate of number may be applied for and issued 
as provided by paragraphs (a) and (b) of this section, upon the owner's 
statement that the original certificate has been lost or destroyed.


Sec.  173.73  [Removed]

    15. Remove Sec.  173.73.


Sec.  173.77  [Amended]

    16. In Sec.  173.77(d), remove the word ``used'' and add, in its 
place, the word ``operated''.

Appendix A [Amended]

    17. In Appendix A to Part 173, in paragraph (c), remove the word 
``use'' and add, in its place, the word ``operation''.

PART 174--STATE NUMBERING AND CASUALTY REPORTING SYSTEMS

    18. The authority citation for part 174 continues to read as 
follows:

    Authority: 46 U.S.C. 6101 and 12302; Department of Homeland 
Security Delegation No. 0170.1(92).

    19. Revise Sec.  174.1 to read as follows:


Sec.  174.1  Applicability; preemptive effect.

    This part establishes a standard numbering system for vessels and a 
uniform vessel casualty reporting system for vessels by prescribing 
requirements applicable to the States for approval of State numbering 
systems. The regulations in subparts A, B, and D of this part have 
preemptive effect over conflicting State or local regulation. The 
regulations in subpart C of this part have preemptive effect over State 
or local regulation within the same field, except to the extent that 
Congress requires the Coast Guard to allow State casualty reporting 
systems pursuant to 46 U.S.C. Chapter 131.
    20. Revise Sec.  174.3 to read as follows:


Sec.  174.3  Definitions.

    As used in this part:
    Airboat means a vessel that is typically flat-bottomed and 
propelled by an aircraft-type propeller and powered by an engine.
    Auxiliary sail means a vessel whose primary method of propulsion is 
sail but has a secondary means of mechanical propulsion.
    Cabin motorboat means a type of vessel propelled by propulsion 
machinery that provides enclosed spaces inside the structure of the 
vessel.
    Certificate of number means a certificate issued by a State that 
meets the requirements of 33 CFR 174.19, containing vessel and vessel 
owner registration information for a vessel that is registered and 
issued a number in that State.
    Charter fishing means a vessel carrying a passenger(s) for hire who 
is (are) engaged in recreational fishing.
    Commercial fishing means a vessel that commercially engages in the 
catching, taking, or harvesting of fish which, either in whole or in 
part, is intended to enter commerce through sale, barter or trade.
    Houseboat means a motorized vessel that is usually non-planing and 
designed primarily for multipurpose accommodation spaces with low 
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a serial number that meets 
the requirements of 33 CFR part 181, subpart C.
    Inboard, in the context of an engine, means an engine mounted 
inside the confines of a vessel which turns a drive shaft that runs 
through the bottom of the hull and is attached to a propeller or water 
jet at the other end.
    Inflatable boat means a vessel that uses air-filled flexible fabric 
for buoyancy.

[[Page 25148]]

    Open motorboat means a type of vessel equipped with propulsion 
machinery which has an open load carrying area not protected from the 
entry of water by means of a continuous deck.
    Operator means the person who is in control or in charge of a 
vessel while it is in use.
    Outboard, in the context of an engine, means an engine with 
propeller or water jet integrally attached, which is usually mounted at 
the stern of a vessel.
    Owner means a person who claims lawful possession of a vessel by 
virtue of a legal title or an equitable interest therein, which 
entitles him to such possession and includes co-owners.
    Paddlecraft means a vessel powered only by a craft's occupant(s) 
using a single or double bladed paddle as a lever without the aid of a 
fulcrum provided by oarlocks, thole pins, crutches or similar 
arrangements.
    Person means an individual, firm, partnership, corporation, 
company, association, joint-stock association, or governmental entity 
and includes a trustee, receiver, assignee, or similar representative 
of any of them.
    Personal watercraft means a vessel propelled by a water-jet pump or 
other machinery as its primary source of motive power which is designed 
to be operated by a person sitting, standing, or kneeling on the 
vessel, rather than the conventional manner of sitting or standing 
within the confines of the hull.
    Pod drive means an engine mounted in front of the transom of a 
vessel and attached through the bottom of the hull to a steerable 
propulsion unit.
    Pontoon boat means a vessel with a broad, flat deck that is affixed 
on top of closed cylinders which are used for buoyancy, the basic 
design of which is usually implemented with two rows of floats as a 
catamaran or with three rows of floats as a trimaran.
    Reporting authority means a State listed in 33 CFR part 173, 
Appendix A, as having a numbering system approved by the Coast Guard, 
or the Coast Guard where a numbering system has not been approved.
    Rowboat means an open vessel manually propelled by oars.
    Sail only means a vessel propelled only by sails.
    State means a State of the United States, Guam, the Commonwealth of 
Puerto Rico, the Virgin Islands, American Samoa, the District of 
Columbia, the Commonwealth of the Northern Mariana Islands, and any 
other territory or possession of the United States.
    State of principal operation means the State in whose waters a 
vessel is or will be operated most during a calendar year.
    Sterndrive means an engine mounted in front of the transom of a 
vessel which is attached through the transom to a drive unit that is 
similar to the lower unit of an outboard. The engine turns a drive 
shaft that is attached to a propeller at the other end. A sterndrive is 
also known as an inboard-outdrive or an inboard-outboard.
    21. Add new Sec.  174.16 to read as follows:


Sec.  174.16  Verification of hull identification number.

    (a) As used in this section, ``action'' means an action by an 
issuing authority listed in 33 CFR part 173, Appendix A, to issue, 
renew, or update the ownership information for a certificate of number 
under this part.
    (b) Effective [DATE 3 YEARS FROM EFFECTIVE DATE OF FINAL RULE], 
before taking any action relating to a vessel imported or manufactured 
on or after November 1, 1972, the issuing authority must determine 
whether the vessel has a HIN meeting the requirements of 33 CFR part 
181, subpart C.
    (c) If, pursuant to paragraph (b) of this section, the issuing 
authority determines that the vessel does not have a HIN meeting the 
requirements of 33 CFR part 181, subpart C, then before taking any 
action the issuing authority must:
    (1) Assign such a HIN to the vessel; and
    (2) Require the owner to make the vessel available to a 
representative of the issuing authority's State so that the 
representative can permanently affix the HIN to the vessel in 
compliance with 33 CFR part 181, subpart C.
    22. Revise Sec.  174.17 to read as follows:


Sec.  174.17  Contents of application for certificate of number.

    (a) An application for a certificate of number must contain the 
following information:
    (1) Name of owner;
    (2) Address of owner;
    (3) Owner identifier, which must be the owner's tax identification 
number; date of birth together with driver's license number; or other 
unique number;
    (4) [Reserved]
    (5) State of principal operation;
    (6) Number previously issued by an issuing authority;
    (7) Application type: Authorized terms are ``new number'', 
``renewal of number'', or ``transfer of ownership'';
    (8) Primary operation: Authorized terms are ``pleasure'', ``rent or 
lease'', ``dealer or manufacturer demonstration'', ``charter fishing'', 
``commercial fishing'', ``commercial passenger carrying'', or ``other 
commercial operation'';
    (9) Make and model of vessel;
    (10) Model year;
    (11) Hull identification number, if any;
    (12) Overall length of vessel;
    (13) Vessel type: Authorized terms are ``open motorboat'', ``cabin 
motorboat'', ``air boat'', ``inflatable boat'', ``auxiliary sail'', 
``sail only'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``houseboat'', ``rowboat'', or ``other'';
    (14) Hull material: Authorized terms are ``wood'', ``aluminum'', 
``steel'', ``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', or 
``other'';
    (15) Propulsion type: Authorized terms are ``propeller'', ``sail'', 
``water jet'', ``air thrust'', ``manual'', or ``other'';
    (16) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other'';
    (17) Fuel: Authorized terms are ``gas'', ``diesel'', ``electric'', 
or ``other''; and
    (18) Signature of the owner.
    (b)(1) An application made by a manufacturer or dealer for a number 
that is to be temporarily affixed to a vessel for demonstration or test 
purposes may omit the information under paragraphs (a)(9) through 
(a)(17) of this section.
    (2) An application made by an owner of a vessel without propulsion 
machinery may omit the information under paragraphs (a)(16) and (a)(17) 
of this section.
    (c) For an issuing authority listed in 33 CFR part 173, Appendix A 
on [EFFECTIVE DATE OF FINAL RULE], the requirements of paragraphs (a) 
and (b) of this section apply on [DATE 3 YEARS FROM EFFECTIVE DATE OF 
FINAL RULE]. Between [EFFECTIVE DATE OF FINAL RULE] and [DATE 3 YEARS 
FROM EFFECTIVE DATE OF FINAL RULE], the issuing authority may continue 
to accept applications containing the contents required by that 
reporting authority prior to [EFFECTIVE DATE OF FINAL RULE].
    23. Revise Sec.  174.19 to read as follows:


Sec.  174.19  Contents of a certificate of number.

    (a) Except as allowed in paragraph (b) of this section, each 
certificate of number must contain the following information:
    (1) Number issued to the vessel;
    (2) Expiration date of the certificate;
    (3) State of principal operation;
    (4) Name of owner;
    (5) Address of owner;
    (6) Primary operation: Includes pleasure, rent or lease, dealer or

[[Page 25149]]

manufacturer demonstration, charter fishing, commercial fishing, 
commercial passenger carrying, or other commercial operation;
    (7) Hull identification number, if any;
    (8) Make and model of vessel;
    (9) Model year;
    (10) Overall length of vessel;
    (11) Vessel type: Includes open motorboat, cabin motorboat, air 
boat, inflatable boat, auxiliary sail, sail only, paddlecraft, personal 
watercraft, pontoon boat, houseboat, rowboat, or ``other'';
    (12) Hull material: Includes wood, aluminum, steel, fiberglass, 
plastic, rubber/vinyl/canvas, or ``other'';
    (13) Propulsion type: Includes propeller, sail, water jet, air 
thrust, manual, or ``other'';
    (14) Engine drive type: Includes inboard, outboard, pod drive, 
sterndrive, or ``other''; and
    (15) Fuel: Includes gas, diesel, electric, or ``other.''
    (b)(1) A certificate of number issued to a manufacturer or dealer 
for use on a vessel for test or demonstration purposes may omit the 
information under paragraphs (a)(7) through (a)(15) of this section if 
the word ``manufacturer'' or ``dealer'' is plainly marked on the 
certificate.
    (2) A certificate of number issued for a vessel without propulsion 
machinery may omit paragraphs (a)(14) and (a)(15) of this section if 
the words ``manual vessel'' are plainly marked on the certificate.
    (3) An issuing authority may print on the certificate of number a 
quotation of State boating regulations or other boating-related 
information, such as safety reminders, or registration or law 
enforcement contact information.
    (c) For an issuing authority listed in Appendix A of this part on 
[EFFECTIVE DATE OF FINAL RULE], the requirements of paragraphs (a) and 
(b) of this section apply on [DATE 3 YEARS FROM EFFECTIVE DATE OF FINAL 
RULE]. Between [EFFECTIVE DATE OF FINAL RULE] and [DATE 3 YEARS FROM 
EFFECTIVE DATE OF FINAL RULE], the issuing authority may continue to 
issue certificates of number containing the contents in effect on 
[EFFECTIVE DATE OF FINAL RULE].
    24. Revise Sec.  174.21 to read as follows:


Sec.  174.21  Temporary certificates.

    (a) An issuing authority may issue a temporary certificate of 
number, valid for no more than 60 days from its date of issuance.
    (b) Each temporary certificate must contain the following 
information:
    (1) Vessel's hull identification number, if any;
    (2) Make of vessel;
    (3) Length of vessel;
    (4) Type of propulsion;
    (5) State in which vessel is principally operated;
    (6) Name of owner;
    (7) Address of owner, including ZIP code;
    (8) Signature of owner;
    (9) Date of issuance; and
    (10) Notice to the owner that the temporary certificate is valid 
for the time it specifies, not to exceed 60 days from the date of 
issuance.
    (c) For an issuing authority listed in 33 CFR part 173, Appendix A 
on [EFFECTIVE DATE OF FINAL RULE], the requirements of paragraph (b) of 
this section apply on [DATE 3 YEARS FROM EFFECTIVE DATE OF FINAL RULE]. 
Between [EFFECTIVE DATE OF FINAL RULE] and [DATE 3 YEARS FROM EFFECTIVE 
DATE OF FINAL RULE], the issuing authority may continue to issue 
temporary certificates containing the contents in effect on [EFFECTIVE 
DATE OF FINAL RULE].
    25. Revise Sec.  174.121 to read as follows:


Sec.  174.121  Forwarding of casualty or accident reports.

    Within 30 days of the receipt of a casualty or accident report, the 
reporting authority receiving the report must forward a paper or 
electronic copy of that report to the Commandant (CG-5422), U.S. Coast 
Guard, 2100 Second Street, SW., Stop 7581, Washington, DC 20593-7581.
    26. Revise Sec.  174.125 to read as follows:


Sec.  174.125  Coast Guard address.

    The report required by 33 CFR 174.123 must be sent to the 
Commandant (CG-5422), U.S. Coast Guard, 2100 Second Street, SW., Stop 
7581, Washington, DC 20593-7581.

PART 181--MANUFACTURER REQUIREMENTS

    27. The authority citation for part 181 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302; Department of Homeland Security 
Delegation No. 0170.1 (92).

    28. Revise Sec.  181.1 to read as follows:


Sec.  181.1  Purpose and applicability; preemptive effect.

    This part prescribes requirements for the certification of boats 
and associated equipment and identification of boats to which 46 U.S.C. 
Chapter 43 applies. The regulations in this part have the preemptive 
effect described in 46 U.S.C. 4306.
    29. In Sec.  181.3, revise the definition for ``Manufacturer'' and 
add, in alphabetical order, a definition for ``State'' to read as 
follows:


Sec.  181.3  Definitions.

* * * * *
    Manufacturer means any person engaged in:
    (1) The manufacture, construction, or assembly of boats or 
associated equipment; or
    (2) The importation into the United States of boats, associated 
equipment, or components thereof.
* * * * *
    State means a State of the United States, Guam, the Commonwealth of 
Puerto Rico, the Virgin Islands, American Samoa, the District of 
Columbia, the Commonwealth of the Northern Mariana Islands, and any 
other territory or possession of the United States.
    30. Revise Sec.  181.23 to read as follows:


Sec.  181.23  Hull identification numbers required.

    (a) A manufacturer, as defined in Sec.  181.3 of this part, must 
identify each boat produced or imported with two hull identification 
numbers (HIN) that meet the requirements of this subpart:
    (1) A primary HIN affixed in accordance with Sec. Sec.  181.29(a) 
and (c) of this subpart; and
    (2) A duplicate HIN affixed in accordance with Sec. Sec.  181.29(b) 
and (c) of this subpart.
    (b) A person who manufactures or imports a boat for his or her own 
use and not for sale must obtain the required hull identification 
number in accordance with the requirements of the issuing authority 
listed in 33 CFR part 173, Appendix A for the boat's State of principal 
operation, as defined in 33 CFR 173.3, and make the boat available to a 
representative of the issuing authority who will permanently affix the 
HINs.
    (c) No person may assign the same HIN to more than one boat.
    31. Revise Sec.  181.31 to read as follows:


Sec.  181.31  Manufacturer identification code assignment.

    (a) Each person required by 33 CFR 181.23(a) to affix hull 
identification numbers must request a manufacturer identification code 
in writing from the Commandant (CG-54223), 2100 Second Street, SW., 
Stop 7581, Washington, DC 20593-7581. The request must indicate the 
manufacturer's name and U.S. address along with the general types and 
lengths of boats that will be manufactured.
    (b) For boats manufactured outside of the jurisdiction of the 
United States, a U.S. importer must obtain a

[[Page 25150]]

manufacturer identification code as required by paragraph (a) of this 
section. The request must indicate the importer's name and U.S. address 
along with a list of the manufacturers, their addresses, and the 
general types and sizes of boats that will be imported. If a nation has 
a hull identification number system which has been accepted by the 
Coast Guard for the purpose of importing boats, it may be used by the 
importer instead of the one specified within this subpart. To request a 
list of those nations having such a numbering system, write to the 
Commandant (CG-54223), 2100 Second Street, SW., Stop 7581, Washington, 
DC 20593-7581.

PART 187--VESSEL IDENTIFICATION SYSTEM

    32. The authority citation for part 187 is revised to read as 
follows:

    Authority: 46 U.S.C. 2103, 12501; Department of Homeland 
Security Delegation No. 0170.1 (92).

    33. Revise Sec.  187.11 to read as follows:


Sec.  187.11  What are the procedures to participate in VIS?

    (a) A State wanting to participate in VIS must inform the 
Commandant, in writing, describing its willingness and ability to 
comply with each requirement of 33 CFR 187.201. If the Commandant is 
satisfied that the State will comply fully with 33 CFR 187.201, the 
State will be allowed to participate in VIS and will be listed in 
Appendix A to this part, for so long as the Commandant determines that 
the State complies fully with 33 CFR 187.201.
    (b) A State wanting to participate in VIS, but unable to comply 
with one or more requirements of 33 CFR 187.201, may participate in VIS 
under one or more waivers, for good cause shown. For purposes of this 
section, ``good cause'' includes the existence of State law prohibiting 
full compliance. A State wanting to participate in VIS under one or 
more waivers:
    (1) So informs the Commandant, in writing;
    (2) Describes the requirement or requirements for which waiver is 
sought, and the good cause for noncompliance; and
    (3) Describes the steps the State intends to take to remove the 
good cause and the anticipated time needed to do so.
    (c) The Commandant may allow a State to participate in VIS under 
one or more waivers, pursuant to a memorandum of agreement between the 
Coast Guard and the State.
    (1) The memorandum of agreement recites the information provided by 
the State under paragraph (b) of this section, and is valid for not 
more than three years, during which time the State will be deemed to 
participate in VIS and be listed in Appendix A to this part.
    (2) The State may withdraw from the memorandum of agreement and 
participation in VIS upon written notice to the Commandant. The 
Commandant may terminate the memorandum of agreement and the State's 
participation in VIS for noncompliance with the terms of the 
memorandum.
    (3) Participation in VIS under one or more waivers beyond the term 
of the initial memorandum of agreement requires a new memorandum.
    (4) If the good cause for waivers is eliminated within the term of 
the memorandum of agreement, the State may so inform the Commandant in 
writing. The Commandant may then consider the State to participate in 
VIS under paragraph (a) of this section.
    34. Revise Sec.  187.103 to read as follows:


Sec.  187.103  What information must be collected to identify a vessel?

    A participating State must collect the following information on a 
vessel it has numbered or titled and make it available to VIS:
    (a) Manufacturer's hull identification number, if any;
    (b) Official number, if any, assigned by the Coast Guard or its 
predecessor;
    (c) Number on certificate of number assigned by the issuing 
authority of the State;
    (d) Expiration date of certificate of number;
    (e) Number previously issued by an issuing authority;
    (f) Make and model of vessel;
    (g) Model year: Includes model year, manufacture year, or year 
built;
    (h) Overall length;
    (i) Vessel type: Authorized terms are ``open motorboat'', ``cabin 
motorboat'', ``air boat'', ``inflatable boat'', ``auxiliary sail'', 
``sail only'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``houseboat'', ``rowboat'', or ``other'';
    (j) Hull material: Authorized terms are ``wood'', ``aluminum'', 
``steel'', ``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', or 
``other'';
    (k) Propulsion type: Authorized terms are ``propeller'', ``sail'', 
``water jet'', ``air thrust'', ``manual'', or ``other'';
    (l) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other'';
    (m) Fuel: Authorized terms are ``gas'', ``diesel'', ``electric'', 
or ``other''; and
    (n) Primary use: Authorized terms are ``pleasure'', ``rent or 
lease'', ``dealer or manufacturer demonstration'', ``charter fishing'', 
``commercial fishing'', ``commercial passenger carrying'', or ``other 
commercial operation''.

    Dated: May 3, 2010.
Kevin S. Cook,
Rear Admiral, U.S. Coast Guard, Director of Prevention Policy.
[FR Doc. 2010-10723 Filed 5-6-10; 8:45 am]
BILLING CODE 9110-04-P