[Federal Register Volume 75, Number 101 (Wednesday, May 26, 2010)]
[Rules and Regulations]
[Pages 29451-29455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12592]


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FEDERAL MARITIME COMMISSION

46 CFR Part 501, 502, and 535

[Docket No. 10-04]
RIN 3072-AC37


Agency Reorganization and Delegations of Authority

AGENCY: Federal Maritime Commission.

ACTION: Final rule.

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SUMMARY: The Federal Maritime Commission (FMC or Commission) amends its 
regulations relating to agency organization to reflect the 
reorganization of the agency that took effect January 31, 2010, and to 
delegate authority to certain FMC bureaus and offices in order to 
improve the FMC's ability to carry out its statutory responsibilities 
over the ocean shipping industry in a more responsive manner to the 
industry's changing needs. This rule also corrects typographical errors 
in two sections in the Commission's rules.

DATES: Effective May 26, 2010.

FOR FURTHER INFORMATION CONTACT: Rebecca A. Fenneman, Deputy General 
Counsel, Federal Maritime Commission, 800 North Capitol Street, NW., 
Washington, DC 20573, (202) 523-5740, [email protected].

SUPPLEMENTARY INFORMATION: The FMC amends Part 501 and Sec.  502.604 of 
Part 502 of Title 46 of the Code of Federal Regulations to reflect the 
reorganization of the agency that took effect on January 31, 2010. The 
FMC was reorganized by restoring the position of the Managing Director 
to serve as the Commission's Chief Operating Officer responsible for 
the management and coordination of the Commission's major 
organizational components to ensure all offices are cohesively directed 
toward achieving fair and efficient ocean transportation that helps 
improve the nation's economy. The reorganization also gives heightened 
priority to the role of the Commission's Office of Consumer Affairs and 
Dispute Resolution Services (CADRS), which assists exporters and other 
consumers and works with the public and ocean transportation industry 
to mediate disputes without costly lawsuits. The Director of CADRS will 
serve as the Commission's Ombudsman and handle inquiries and complaints 
about industry issues and Commission services. CADRS will continue to 
provide the public and ocean transportation industry a variety of 
impartial, speedy, and confidential alternative dispute resolution 
(ADR) services, such as mediation and arbitration. As an independent 
office, it will be able to assist parties in a neutral and confidential 
manner, enabling disputants to discuss matters while knowing that their 
discussions and any information revealed in a dispute resolution 
proceeding will not be made available to any other Commission official 
or staff members. This rule also corrects typographical errors in Sec.  
501.41(a) of Part 501 and Sec.  535.401(g) of Part 535.
    Because the changes made in this proceeding only address internal 
agency operating procedure and organization, which do not require 
notice and public procedure pursuant to the Administrative Procedure 
Act, 5 U.S.C. 553, this rule is published as final. The Chairman of the 
Commission certifies, pursuant to section 605(b) of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., that the rule will not, if 
promulgated, have a significant economic impact on a substantial number 
of small entities.
    This rule is not a ``major rule'' under 5 U.S.C. 804(2).

[[Page 29452]]

List of Subjects

46 CFR Part 501

    Administrative practice and procedure, Authority delegations, 
Organization and functions, Seals and insignia.

46 CFR Part 502

    Administrative practice and procedure, Claims, Equal access to 
justice, Investigations, Lawyers, Maritime carriers, Penalties, 
Reporting and recordkeeping requirements.

46 CFR Part 535

    Administrative practice and procedure, Maritime carriers, Reporting 
and recordkeeping requirements.


0
For the reasons stated in the supplementary information, the Federal 
Maritime Commission amends 46 CFR Parts 501, 502, and 535 as follows.

PART 501--THE FEDERAL MARITIME COMMISSION--GENERAL

0
1. The authority citation for Part 501 continues to read as follows:

    Authority: 5 U.S.C. 551-557, 701-706, 2903 and 6304; 31 U.S.C. 
3721; 41 U.S.C. 414 and 418; 44 U.S.C. 501-520 and 3501-3520; 46 
U.S.C. 301-307, 40101-41309, 42101-42109, 44101-44106; 
Reorganization Plan No. 7 of 1961, 26 FR 7315, August 12, 1961; Pub. 
L. 89-56, 70 Stat. 195; 5 CFR Part 2638; Pub. L. 104-320, 110 Stat. 
3870.


0
2. Amend Sec.  501.3 by revising paragraphs (c), (d), (h), and (i) to 
read as follows:


Sec.  501.3  Organizational components of the Federal Maritime 
Commission.

* * * * *
    (c) Office of the Secretary. (FOIA and Privacy Act Officer, Federal 
Register Liaison, Performance Improvement Officer.)
    (d) Office of the General Counsel. (Ethics Official, Legislative 
Counsel.)
* * * * *
    (h) Office of the Managing Director. (Chief Operating Officer, 
Chief Acquisition Officer, Audit Follow-up and Management Controls 
Official, Chief Information Officer, Chief Financial Officer, 
Competition Advocate, Senior Agency Official for Privacy.)
    (1) Office of Budget and Finance.
    (2) Office of Human Resources. (Information Security Officer.)
    (3) Office of Information Technology. (Chief Technology Officer, IT 
Security Officer.)
    (4) Office of Management Services. (Physical Security, FMC 
Contracting Officer.)
    (5) Bureau of Certification and Licensing.
    (i) Office of Passenger Vessels and Information Processing.
    (ii) Office of Ocean Transportation Intermediaries.
    (6) Bureau of Trade Analysis.
    (i) Office of Agreements.
    (ii) Office of Economics and Competition Analysis.
    (iii) Office of Service Contracts and Tariffs.
    (7) Bureau of Enforcement.
    (8) Area Representatives.
    (i) Office of Consumer Affairs and Dispute Resolution Services. 
(Ombudsman, Senior Dispute Resolution Specialist.)
* * * * *

0
3. Revise Sec.  501.4 to read as follows:


Sec.  501.4  Lines of responsibility.

    (a) Chairman. The Office of the Secretary, the Office of the 
General Counsel, the Office of Administrative Law Judges, the Office of 
Equal Employment Opportunity, the Office of the Inspector General, the 
Office of the Managing Director, and officials performing the functions 
of Information Security Official, report to the Chairman of the 
Commission.
    (b) Office of the Managing Director. The Bureau of Certification 
and Licensing, Bureau of Enforcement, Bureau of Trade Analysis, Area 
Representatives, Office of Budget and Finance, Office of Human 
Resources, Office of Information Technology, and Office of Management 
Services report to the Office of the Managing Director. The Office of 
Equal Employment Opportunity and the Office of the Inspector General 
receive administrative guidance from the Managing Director. All other 
units of the Commission receive administrative direction from the 
Managing Director.

0
4. Amend Sec.  501.5 as follows:
0
a. Revise paragraph (a) introductory text;
0
b. Revise paragraph (c)(4);
0
c. Revise paragraph (d)(7);
0
d. Remove paragraph (d)(10);
0
e. Revise paragraph (f);
0
f. Revise paragraph (h);
0
g. Remove and reserve paragraph (i)(3);
0
h. Revise paragraph (k);
0
i. Amend paragraph (l)(1) by revising the first sentence; and
0
j. Add a new paragraph (l)(3) to read as follows.


Sec.  501.5  Functions of the organizational components of the Federal 
Maritime Commission.

* * * * *
    (a) Chairman. As the chief executive and administrative officer of 
the Commission, the Chairman presides at meetings of the Commission, 
administers the policies of the Commission to its responsible 
officials, and ensures the efficient discharge of their 
responsibilities. The Chairman provides management direction to the 
Offices of Equal Employment Opportunity, Inspector General, Secretary, 
General Counsel, Administrative Law Judges, and Managing Director with 
respect to all matters concerning overall Commission workflow, resource 
allocation (both staff and budgetary), work priorities and similar 
managerial matters; and establishes, as necessary, various committees 
and boards to address overall operations of the agency. The Chairman 
serves as appeals officer under the Freedom of Information Act, the 
Privacy Act, and the Federal Activities Inventory Reform Act of 1998. 
The Chairman appoints the heads of major administrative units after 
consultation with the other Commissioners. In addition, the Chairman, 
as ``head of the agency,'' has certain responsibilities under Federal 
laws and directives not specifically related to shipping. For example, 
the special offices or officers within the Commission, listed under 
paragraphs (a)(1) through (a)(4) of this section, are appointed or 
designated by the Chairman, are under his or her direct supervision and 
report directly to the Chairman:
* * * * *
    (c) * * *
    (4) Serves as the lead executive responsible for development, in 
coordination with the Managing Director, of the agency's strategic 
plan, monitoring of results of strategic goals and objectives, and 
preparation of all required reports.
    (d) * * *
    (7) Represents the Commission in U.S. Government interagency groups 
dealing with international maritime issues; represents the Commission 
and acts as technical advisor in bilateral and multilateral maritime 
discussions; and coordinates Commission activities through liaison with 
other government agencies and programs and international organizations.
* * * * *
    (f) Office of the Managing Director.
    (1) The Managing Director:
    (i) As Chief Operating Officer, is responsible to the Chairman for 
the management and coordination of Commission programs managed by the 
Bureaus of Certification and Licensing; Trade Analysis; Enforcement; 
the Commission's Area Representatives; Offices of Budget and Finance; 
Human

[[Page 29453]]

Resources; Management Services; and Information Technology, as more 
fully described below, and thereby implements the regulatory policies 
of the Commission and the administrative policies and directives of the 
Chairman. The Managing Director also provides administrative guidance 
to the Offices of Equal Employment Opportunity and Inspector General;
    (ii) The Office initiates recommendations, collaborating with other 
elements of the Commission as warranted, for long-range plans, new or 
revised policies and standards, and rules and regulations;
    (iii) Ensures the periodic review and updating of Commission 
Orders;
    (iv) Interprets and administers governmental policies and programs 
in a manner consistent with Federal guidelines, including those 
involving financial management, human resources, information 
technology, and procurement;
    (v) Is responsible for coordinating records management activities 
and developing Paperwork Reduction Act clearances for submission to the 
Office of Management and Budget;
    (vi) Is responsible for directing and administering the 
Commission's training and development function;
    (vii) Acts as the Commission's representative to the Small Agency 
Council;
    (viii) Is the agency's Chief Acquisition Officer under the Services 
Acquisition Reform Act of 2003, Public Law 108-136, 117 Stat. 1663 and 
Commission Order 112;
    (ix) Is the Audit Follow-up and Management (Internal) Controls 
Official for the Commission under Commission Orders 103 and 106;
    (x) Is the agency's Chief Financial Officer;
    (xi) Is the agency's Chief Operating Officer;
    (xii) Serves as the Senior Agency Official for Privacy under 
Commission Order 89;
    (2) The Deputy Managing Director is the Commission's Competition 
Advocate under Commission Order 112.
    (3) The Assistant Managing Director is the Commission's Chief 
Information Officer and Records Management Officer. The Assistant 
Managing Director provides direction to the Office of Information 
Technology in interpreting and administering governmental policies and 
programs for information technology in a manner consistent with federal 
guidelines. The Assistant Managing Director initiates recommendations, 
collaborating with other elements of the Commission as warranted, for 
long-range plans, new or revised policies and standards, and rules and 
regulations with respect to the use and security of information and 
technology.
    (4) Other offices under the management direction of the Managing 
Director are as follows:
    (i) The Office of Budget and Finance, under the direction and 
management of the Office Director, administers the Commission's 
financial management program, including fiscal accounting activities, 
fee and forfeiture collections, and payments, and ensures that 
Commission obligations and expenditures of appropriated funds are 
proper; develops annual budget justifications for submission to the 
Congress and the Office of Management and Budget; develops and 
administers internal controls systems that provide accountability for 
agency funds; administers the Commission's travel and cash management 
programs, ensures accountability for official passports; and assists in 
the development of proper levels of user fees.
    (ii) The Office of Human Resources, under the direction and 
management of the Office Director, plans and administers a complete 
personnel management program including: Recruitment and placement; 
position classification and pay administration; occupational safety and 
health; employee counseling services; employee relations; workforce 
discipline; performance appraisal; incentive awards; retirement; 
personnel security; and the Commission's Human Capital Management Plan. 
The Office Director serves as the Commission's Human Capital Management 
Officer. A human resources specialist within the Office serves as the 
Information Security Officer under Commission Order 80.
    (iii) The Office of Information Technology, under the direction and 
management of the Office Director, administers the Commission's 
information technology (``IT'') program under the Paperwork Reduction 
Act of 1995, as amended, as well as other applicable laws that 
prescribe responsibility for operating the IT program. The Office 
provides administrative support with respect to information technology 
to the program operations of the Commission. The Office's functions 
include: Conducting IT management studies and surveys; managing data 
and voice telecommunications; developing and managing databases and 
applications; and administering IT contracts. The Office is also 
responsible for managing the computer security program. The Director of 
the Office serves as the Commission's Chief Technology Officer; the IT 
Security Officer reports to the Director of the Office under Commission 
Order 80.
    (iv) The Office of Management Services, under the direction and 
management of the Office Director, directs and administers a variety of 
management support service functions of the Commission including 
conducting internal management reviews and recommending changes in 
organization and workflow processes. The Director of the Office is the 
Commission's principal Contracting Officer under Commission Order 112. 
Programs include: Acquisition of all goods and services used by the 
Commission; building security and emergency preparedness; real and 
personal property management; printing and copying; mail services; 
graphic design; equipment maintenance; and transportation. The Office 
Director is the agency's liaison with the Small Agency Council's 
Procurement and Administrative Services Committees and with the General 
Services Administration (``GSA'') and the Department of Homeland 
Security (``DHS'') on the Building Security Committee.
* * * * *
    (h) Under the direction and management of the Bureau Director, the 
Bureau of Trade Analysis, through its Office of Agreements; Office of 
Economics and Competition Analysis; and Office of Service Contracts and 
Tariffs, reviews agreements and monitors the concerted activities of 
common carriers by water, reviews and analyzes service contracts, 
monitors rates of government controlled carriers, reviews carrier 
published tariff systems under the accessibility and accuracy standards 
of the Shipping Act of 1984 (46 U.S.C. 40501(a)-(g)), responds to 
inquiries or issues that arise concerning service contracts or tariffs, 
and is responsible for competition oversight and market analysis.
* * * * *
    (k) The Office of Consumer Affairs and Dispute Resolution Services, 
under the direction and management of the Office Director, has 
responsibility for developing and implementing the Alternative Dispute 
Resolution Program, responds to consumer inquiries and complaints, and 
coordinates the Commission's efforts to resolve disputes within the 
shipping industry. The Office reviews existing and proposed legislation 
and regulations for impact on the shipping industry and its consumers 
and recommends appropriate policies and regulations to facilitate 
trade. The

[[Page 29454]]

Director of the Office of Consumer Affairs and Dispute Resolution 
Services is designated as the agency's Senior Dispute Resolution 
Specialist pursuant to section 3 of the Administrative Dispute 
Resolution Act, Public Law 101-552, as amended by section 4(a) of 
Public Law 104-320. The Director also serves as the Commission's 
Ombudsman.
    (l) * * *
    (1) The Executive Resources Board (``ERB'') is composed of members 
of the Senior Executive Service as designated by the Chairman. * * *
* * * * *
    (3) The Maritime Environmental Committee (``MEC'') is an internal 
Committee made up of Commission staff as designated by the Chairman. 
The MEC advises the Chairman and the Commission on issues involving 
environmental and sustainable shipping practices, initiatives, 
operational proposals, and similar matters affecting entities regulated 
by the Commission to assist the Commission in its review and regulation 
of agreements and in its statutory responsibility for ensuring an 
efficient ocean transportation system.

0
5. Amend Sec.  501.24 by revising paragraph (h) to read as follows:


Sec.  501.24  Delegation to the Secretary.

* * * * *
    (h) Authority, in the absence or preoccupation of the Managing 
Director, to sign travel orders, nondocketed recommendations to the 
Commission, and other routine documents for the Managing Director, 
consistent with the programs, policies, and precedents established by 
the Commission or the Managing Director.

0
6. Revise Sec.  501.25 to read as follows:


Sec.  501.25  Delegation to and redelegation by the Managing Director.

    The authorities listed in this section are delegated to the 
Managing Director.
    (a) Authority to adjudicate, with the concurrence of the General 
Counsel, and authorize payment of, employee claims for not more than 
$1,000.00, arising under the Military and Civilian Personnel Property 
Act of 1964, 31 U.S.C. 3721.
    (b) Authority to determine that an exigency of the public business 
is of such importance that annual leave may not be used by employees to 
avoid forfeiture before annual leave may be restored under 5 U.S.C. 
6304.
    (c)(1) Authority to approve, certify, or otherwise authorize those 
actions dealing with appropriations of funds made available to the 
Commission including allotments, fiscal matters, and contracts relating 
to the operation of the Commission within the laws, rules, and 
regulations set forth by the Federal Government.
    (2) The authority under paragraph (c)(1) of this section is 
redelegated to the Director, Office of Budget and Finance.
    (d)(1) Authority to classify all positions GS-1 through GS-15 and 
wage grade positions.
    (2) The authority under paragraph (d)(1) of this section is 
redelegated to the Director, Office of Human Resources.

0
7. Amend Sec.  501.28 by revising paragraph (a) to read as follows:


Sec.  501.28  Delegation to the Director, Bureau of Enforcement.

* * * * *
    (a) As set forth in Sec.  502.604(g) of this chapter, the Director, 
Bureau of Enforcement, has the delegated authority to issue Notice and 
Demand Letters and to compromise civil penalty claims, subject to the 
prior approval of the Managing Director. This delegation shall include 
the authority to compromise issues relating to the retention, 
suspension, or revocation of ocean transportation intermediary 
licenses.
* * * * *


Sec.  501.29  [Removed]

0
8. Remove Sec.  501.29.

0
9. Amend Sec.  501.41 as follows:
0
a. Amend paragraph (a) by removing the reference ``paragraph (d)'' and 
adding the reference ``paragraph (c)'' in its place; and
0
b. Revise paragraph (c) to read as follows.


Sec.  501.41  Public requests for information and decisions.

* * * * *
    (c) The Directors of the following bureaus and offices will provide 
information and decisions, and will accept and respond to requests, 
relating to the specific functions or program activities of their 
respective bureaus and offices as set forth in this chapter; but only 
if the dissemination of such information or decisions is not prohibited 
by statute or the Commission's Rules of Practice and Procedure:
    (1) Office of the Secretary;
    (2) Office of the General Counsel;
    (3) Office of Administrative Law Judges;
    (4) Office of Equal Employment Opportunity;
    (5) Office of the Inspector General;
    (6) Office of Consumer Affairs and Dispute Resolution Services;
    (7) Office of the Managing Director;
    (i) Office of Budget and Finance;
    (ii) Office of Human Resources;
    (iii) Office of Information Technology;
    (iv) Office of Management Services;
    (v) Bureau of Certification and Licensing;
    (vi) Bureau of Trade Analysis;
    (vii) Bureau of Enforcement; and
    (viii) Area Representatives will provide information and decisions 
to the public within their geographic areas, or will expedite the 
obtaining of information and decisions from headquarters. The addresses 
of these Area Representatives are as follows. Further information on 
Area Representatives, including Internet e-mail addresses, can be 
obtained on the Commission's Web site at http://www.fmc.gov.

Houston Area Representative, 650 Sam Houston Parkway, 230, 
Houston, TX 77060-5908.

Los Angeles Area Representative, P.O. Box 230, 839 South Beacon Street, 
Room 320, San Pedro, CA 90733-0230.
New Orleans Area Representative, P.O. Box 700, Saint Rose, LA 70087-
0700.

New York Area Representative, Building No. 75, Room 205B, JFK 
International Airport, Jamaica, NY 11430-1827.

Seattle Area Representative, The Fabulich Center, Suite 508, 3600 Port 
of Tacoma Road, Tacoma, WA 98424-1044.

South Florida Area Representative, P.O. Box 813609, Hollywood, FL 
33081-3609.
* * * * *

0
10. Revise Appendix A to Part 501 to read as follows:

Appendix A to Part 501--Federal Maritime Commission Organization Chart

BILLING CODE 6730-01-P

[[Page 29455]]

[GRAPHIC] [TIFF OMITTED] TR26MY10.012

BILLING CODE 6730-01-C

PART 502--RULES OF PRACTICE AND PROCEDURE

0
11. The authority citation for Part 502 continues to read as follows:

    Authority: 5 U.S.C. 504, 441, 552, 553, 556(c), 559, 561-569, 
571-596; 5 U.S.C. 571-584; 12 U.S.C. 1141j(a); 18 U.S.C. 207; 26 
U.S.C. 501(c)(3); 28 U.S.C. 2112(a); 31 U.S.C. 9701; 46 U.S.C. 305, 
40103-40104, 40304, 40306, 40501-40503, 40701-40706, 41101-41109, 
41301-41309, 44101-44106; E.O. 11222 of May 8, 1965, 30 FR 6469, 3 
CFR 1964-1965 Comp. P. 306; 21 U.S.C. 853a.


0
12. Amend Sec.  502.604 by revising paragraph (b) and (g) to read as 
follows:


Sec.  502.604  Compromise of penalties: Relation to assessment 
proceedings.

* * * * *
    (b) Notice. When the Commission considers it appropriate to afford 
an opportunity for the compromise of a civil penalty, it will, except 
when otherwise authorized by the Commission, or where circumstances 
render it unnecessary, send a Notice and Demand Letter (``NDL'') to the 
respondent, by registered or certified mail, or by other means 
reasonably calculated to give notice. The NDL will describe specific 
violation(s) on which the claim is based, including the particular 
facts, dates and other elements necessary for the respondent to 
identify the specific conduct constituting the alleged violation; the 
amount of the penalty demanded; the availability of alternative dispute 
resolution, including mediation, through the Commission's Office of 
Consumer Affairs and Dispute Resolution Services; and the names of 
Commission personnel with whom the demand may be discussed, if the 
person desires to compromise the penalty. The NDL also will state the 
deadlines for the institution and completion of compromise negotiations 
and the consequences of failure to compromise.
* * * * *
    (g) Delegation of compromise authority. The Director, Bureau of 
Enforcement, is delegated authority to issue NDLs and compromise civil 
penalties as set forth in this subpart, provided, however, that 
approval of the Managing Director is obtained prior to issuance of each 
NDL and provided further that compromise agreements shall not be 
effective unless approved by the Managing Director, whose signature 
evidencing approval shall appear on compromise agreements, in addition 
to that of the Director of the Bureau of Enforcement. The Director, 
Bureau of Enforcement, has the authority to negotiate the terms of 
compromise agreements.

PART 535--OCEAN COMMON CARRIER AND MARINE TERMINAL OPERATOR 
AGREEMENTS SUBJECT TO THE SHIPPING ACT OF 1984

0
13. The authority citation for Part 535 continues to read as follows:

    Authority:  5 U.S.C. 553; 46 U.S.C. 305, 40101-40104, 40301-
40307, 40501-40503, 40901-40904, 41101-41109, 41301-41302, and 
41305-41307.


Sec.  535.401  [Amended]

0
14. In Sec.  535.401, amend paragraph (g) by removing the reference 
``Sec.  501.26(e)'' and adding the reference ``Sec.  501.27(e)'' in its 
place.

    By the Commission.
Karen V. Gregory,
Secretary.
[FR Doc. 2010-12592 Filed 5-25-10; 8:45 am]
BILLING CODE 6730-01-P