[Federal Register Volume 77, Number 60 (Wednesday, March 28, 2012)]
[Rules and Regulations]
[Pages 18689-18704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7127]



[[Page 18689]]

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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: Final rule.

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SUMMARY: The Coast Guard is amending its regulations related to 
numbering undocumented vessels and reporting boating accidents. These 
changes align and modernize terminology used in the Standard Numbering 
System (SNS), the Vessel Identification System, and accident reporting; 
require verification of vessel hull identification numbers; require SNS 
vessel owners to provide personally identifiable information; and 
provide flexibility for States and territories in administering these 
regulations. Together, the changes are intended to improve boating 
safety efforts, enhance law enforcement capabilities, clarify 
requirements for all stakeholders, and promote the Coast Guard 
strategic goals of maritime safety and security.

DATES: This final rule is effective April 27, 2012. The requirements of 
33 CFR 173.57(c), 174.16(b), 174.17(c), and 174.19(c) take effect on 
that date but the Coast Guard may not enforce the collections of 
information required by those provisions without the approval of the 
Office of Management and Budget and a subsequent Coast Guard document 
in the Federal Register.

ADDRESSES: Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2003-14963 and are available for inspection or 
copying at the 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, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays. You may also find this 
docket on the Internet by going to http://www.regulations.gov, 
inserting USCG-2003-14963 in the ``Keyword'' box, and then clicking 
``Search.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or email Mr. Jeff Ludwig, Office of Auxiliary and Boating Safety; 
telephone 202-372-1061, or email [email protected]. If you have 
questions on viewing the docket, call Renee V. Wright, Program Manager, 
Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Regulatory History
III. Basis and Purpose
IV. Background
V. Discussion of Comments and Changes
VI. 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. Abbreviations

BARD Boating Accident Report Database
DHS Department of Homeland Security
FR Federal Register
HIN Hull identification number
n/a Not applicable
NBSAC National Boating Safety Advisory Council
NPRM Notice of Proposed Rulemaking
OMB Office of Management and Budget
PII Personally identifiable information
SNS Standard Numbering System
UCOTA Uniform Certificate of Title Act
U.S.C. United States Code
VIS Vessel Identification System

II. Regulatory History

    On May 7, 2010, we published a notice of proposed rulemaking (NPRM) 
bearing the same title as this final rule in the Federal Register (75 
FR 25137). We received 39 comments on the proposed rule. No public 
meeting was requested, and none was held.

III. Basis and Purpose

    The Administrative Procedure Act, 5 U.S.C. 553(c), requires each 
rule to contain a concise statement of its basis and purpose. The 
remainder of this preamble discusses both in detail, but in summary 
this final rule's:
     Basis is 46 U.S.C. 2103, authorizing regulations to 
implement United States Code (U.S.C.), Title 46, Subtitle II, dealing 
with vessels and seamen; 46 U.S.C. 6101, requiring regulations on 
marine casualty reporting; 46 U.S.C. 12302, requiring regulations 
establishing a standard numbering system for certain undocumented 
vessels; and 46 U.S.C. 12501, requiring regulations establishing an 
identification system for certain vessels; authority under all of which 
sections has been delegated by the Secretary to the Coast Guard in 
Department of Homeland Security (DHS) Delegation No. 0170.1; and its
     Purpose is to improve the information available within and 
across the Standard Numbering System (SNS), Vessel Identification 
System, and Boating Accident Report databases by increasing data 
quality, aligning and modernizing database terminology, requiring 
verification of hull identification numbers, requiring owners of SNS-
numbered vessels to provide unique personal identification information 
and providing additional administrative flexibility to States and 
territories.

IV. Background

    Coast Guard regulations in 33 CFR parts 173 and 174 provide for an 
SNS that assigns unique identification numbers to undocumented vessels 
equipped with propulsion machinery of any kind. The SNS is a Federal 
system mandated by 46 U.S.C. 12302, but it permits a State \1\ to 
assign numbers to vessels within its jurisdiction if we find that the 
State's own vessel numbering system is consistent with SNS. Today, all 
States maintain Coast Guard-approved numbering systems.
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    \1\ ``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,'' or 56 States and 
territories. This discussion refers to ``State'' throughout, but 
except when specifically noted otherwise, the term ``State'' should 
be read as including all 56 States and territories.
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    Regulations in 33 CFR parts 173 and 174 also implement 46 U.S.C. 
6102, which requires us to establish a uniform reporting system for 
State vessel casualties, and which requires States to compile and send 
us reports, information, and statistics on casualties reported to them. 
Our regulations contain provisions for reporting casualties that 
involve SNS-numbered undocumented vessels that are equipped with 
propulsion machinery of any kind, and recreational vessels of any kind 
(SNS-numbered or not), 33 CFR 173.51, 174.101. We maintain a Boating 
Accident Report Database (BARD) for this data.
    Coast Guard regulations in 33 CFR part 187 help us implement 46 
U.S.C. 12501, which requires us to maintain a Vessel Identification 
System (VIS) covering both documented and undocumented vessels. VIS 
must contain vessel identification and ownership information (including 
personally identifiable information, or

[[Page 18690]]

PII) which can be used for law enforcement involving vessel-related 
crimes such as vessel theft and fraud. We developed VIS in coordination 
with relevant State agencies. Data for documented vessels is added to 
VIS based on Coast Guard records for those vessels. The part 187 
regulations describe how a State can participate in VIS by supplying 
data for the undocumented vessels numbered and titled within that 
State. The more comprehensive VIS's undocumented vessel information is, 
the greater are its benefits: However, State participation in VIS is 
entirely voluntary, 46 U.S.C. 12503, even though the current universal 
State participation in SNS means States currently control the titling 
and numbering of all undocumented vessels. States that do participate 
in VIS have access to VIS data, 46 U.S.C. 12504. VIS became operational 
in 2007 and 32 States now participate in it.
    SNS, VIS, and BARD data facilitate maritime law enforcement, 
safety, and security. Because of our leadership position in these areas 
and our role as the coordinator of the National Recreational Boating 
Safety Program and our partnership with other Federal and State 
agencies with similar responsibilities, we continually look for ways to 
improve the efficiency and effectiveness of SNS, BARD, and VIS, and we 
analyze our existing regulations to make sure they promote continuous 
improvement. This final rule is the product of that analysis, and, as 
described in section VI of this preamble, ``Regulatory Analyses,'' is 
intended to improve the information available within and across the 
databases by increasing the ability to cross-reference the information.
    The National Boating Safety Advisory Council (NBSAC) initially 
suggested many of the changes in this final rule. NBSAC operates under 
the Federal Advisory Committee Act to advise the Coast Guard on 
recreational boating safety issues. NBSAC's 21 members include 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. As required by 46 U.S.C. 4302(c)(4) 
and 13110(c), we have consulted with NBSAC about this rulemaking.

V. Discussion of Comments and Changes

    Our NPRM proposed changes in four areas.
     Terminology: Aligning and updating the terminology used by 
SNS, BARD, and VIS.
    These changes conform existing regulations to current statutory 
language, reflect recent developments in boating practices and 
technology, and leverage our ability to coordinate data from all three 
databases;
     HINs: Making several changes related to HIN (hull 
identification number) data. The most significant change requires SNS-
administering States to ensure that each SNS-numbered vessel built 
since 1972, when HIN regulations first took effect, has or obtains 
valid HINs. HINs are permanently marked on a vessel, and because one of 
the two required HINs is always in an unexposed location, the presence 
of these unique identifiers on a vessel may make it less tempting as a 
target for theft. They also give law enforcement and maritime security 
personnel a good way to link a vessel with its owner. SNS has collected 
HIN data for many years but it is not always accurate, either because a 
vessel has no HIN, or the HIN was incorrectly reported, or the HIN was 
incorrectly entered into SNS. If we can rely more on the 
comprehensiveness and accuracy of HIN data, SNS efficiency will be 
increased (we will more quickly rely on the data), and SNS will more 
effectively assist law enforcement and maritime security activity.
     PII: Requiring SNS-administering States to collect unique 
personally identifiable information from SNS vessel owners. PII has 
high value for law enforcement and maritime security purposes. It 
provides a more reliable way to validate a vessel owner's identity than 
the owner's name, which in many cases can easily be misspelled or 
confused with another person's name. We believe the inclusion of PII 
would make SNS easier to use (more efficient) and more effective. We 
already collect PII for vessel owners included in our VIS database, but 
VIS includes PII data for State-numbered vessels only for the 32 States 
now participating in VIS. By requiring its collection directly for all 
SNS-numbered vessels, we can obtain PII data for State-numbered vessels 
in all 56 States that participate in SNS. Moreover, because all 56 
States now will need to begin collecting PII, they all will soon have 
all the data they need to participate voluntarily in VIS, and therefore 
they may choose to participate in it. Because the value of VIS becomes 
greater as the number of voluntary participants increases, expanding 
participation means all participants will be able to use VIS more 
effectively.
     Flexibility: Providing States with additional 
administrative flexibility, for example, by removing language from 33 
CFR 181.31(c) that required State boating law administrators to assign 
HINs to individuals. Now, each State will be free to determine for 
itself which State agency is best positioned to perform that function.
    State government officials with recreational boating 
responsibilities submitted most of the public comments on the NPRM. Two 
commenters asked us to extend the comment period, which originally 
closed on August 5, 2010. We subsequently reopened the comment period 
to accept comments until October 15, 2010 (75 FR 49869, Aug. 16, 2010).
    Ten commenters asked us to defer consideration of our rule. A 
typical comment from this group was that changes not directly 
associated with harmonizing terminology ``should be postponed to 
accommodate the more comprehensive development and evaluation of 
regulatory proposals regarding the accident reporting processes and 
overall system and the information content of the report form'' and 
BARD. Others in this group felt that our rulemaking could be affected 
by the current national effort to develop a Uniform Certificate of 
Title Act (UCOTA) for adoption by the States. We are studying the 
possible need for substantive changes in accident reporting processes 
and, pending completion of that study, we have withdrawn the NPRM's 
proposed amendment of 33 CFR 173.59, which would have eliminated the 
option of reporting a recreational boating accident to the State where 
the boat is registered rather than to the State where the accident 
occurred. We are also tracking the development of UCOTA. We are 
prepared to open new rulemakings to make changes in accident reporting 
and to align with UCOTA, but the possibility of future changes in these 
two areas does not require any delay in completing the present 
rulemaking.
    Six commenters said we should avoid changing terminology in ways 
harmful to the States' ability to analyze historical data or that risk 
data corruption during database updates. One of these commenters asked 
if States would need to reissue new certificates of title to vessel 
owners and those with security interests in those vessels since old 
title certificates would contain outdated terminology. We do not 
believe States' ability to analyze historical data will be

[[Page 18691]]

adversely affected by this final rule, although date queries might have 
to be managed by pre- or post-regulation date. We will not require 
States to reissue new certificates of title as a result of these 
terminology changes. Those cases will resolve themselves as the vessels 
are re-titled through sale or relocation.
    Eight commenters made suggestions about the terminology used in the 
NPRM. We agreed with these suggestions and Table 1 shows the sections 
where we made changes in the final rule accordingly. Many of these 
commenters said we failed to align terms used in the proposed text of 
33 CFR parts 174 and 187. We believe we have addressed that concern by 
withdrawing the NPRM's proposed changes to accident reporting, and by 
amending 33 CFR 187.101 so that the personal identification required by 
part 187 matches what we require in part 174. Some of these commenters 
also requested that, for better clarity, we substitute ``casualty or 
accident'' for ``incident'' in 33 CFR 173.57, which we have done in 
this final rule.
    Ten commenters objected to our proposal to delay the implementation 
of some measures for three years, saying we should allow at least five 
or six years instead. These commenters pointed out that States might 
need that time to make conforming changes in their laws, to obtain 
implementation funding, and to train staff to update databases and 
forms. Another group of nine commenters (which to a large extent 
overlapped with the group calling for a longer deferral of 
implementation) cited the high costs of implementation during a 
difficult economic period as a reason not to proceed with the 
rulemaking. Most of the changes we are making in this final rule have 
been under discussion with State officials for many years and we think 
they are overdue. We are concerned that a five- or six-year delay would 
have a substantial and undesirable impact on our ability to improve our 
regulatory performance. Nevertheless, we are mindful of the costs and 
challenges involved in implementing this final rule and of the current 
economic climate and we have attempted to balance our responsibility as 
regulators with our respect for our State partners and their concerns. 
In the NPRM, we proposed changing the casualty or accident report 
content requirements of 33 CFR 173.57 effective on January 1 of the 
``fourth year following the year of the effective date of the final 
rule.'' The NPRM proposed delaying the changes to the State numbering 
system requirements in 33 CFR part 174, subpart B for three years. We 
now have decided to delay the latter changes so that these requirements 
will also be delayed until January 1, 2017--giving the States more than 
four full years to prepare for their implementation.
    Twelve commenters said our proposed requirement for State personnel 
to affix HINs to vessels was overly burdensome and costly. One of the 
12 also said that any new HIN requirement is unnecessary because the 
problem is not with inaccurate HINs on vessels but with poor data entry 
controls in some States, resulting in the entry of erroneous HIN 
information in their databases. We agree that incorrect data entry 
contributes to HIN data problems, but from our own observations and 
anecdotal information from State officials we also deduce that these 
problems arise largely because some vessels never obtained valid HINs, 
and in some cases vessel owners have misreported their HIN numbers. To 
improve the quality of the data contained in the databases, we will 
require verification of the vessel's actual valid HIN or the assignment 
of such a HIN to the vessel. States can also take additional measures 
to ensure data quality. We have modified the HIN verification 
requirement in response to the cost and burden concerns our commenters 
raised. We will not require State personnel to affix HINs to vessels 
themselves. Instead, each State may use methods of its choosing to 
verify that each vessel's owner has affixed a valid primary HIN. 
Examples of such methods are (1) owner verification, whereby the State 
could ask the owner of the vessel to visually inspect the visible HIN 
that is on the boat and report the correct information back to the 
State and (2) third party verification, whereby a volunteer 
organization like the Coast Guard Auxiliary would perform the visual 
inspection of a boats' visible HIN. The HIN requirement has been in 
place since 1972 and documentation for vessel registration is already 
required for that long-established process. This is an extra step in 
the current process to help ensure that the visible HIN on the vessel 
is properly recorded in the appropriate databases.
    Seven commenters objected to our changing ``State of principal 
use'' to read ``State of principal operation'' wherever it occurs. Both 
terms provide a test for identifying the State responsible for SNS, 
VIS, or BARD information. One of these commenters said the change ``has 
the potential to create unnecessary confusion and unintended 
consequences.'' We are shifting to ``State of principal operation'' 
because that is the language used since 1983 in the recreational 
boating statutes codified in Title 46 of the U.S. Code. Another of 
these seven commenters asked us to confirm that the State in whose 
waters a vessel is moored or stored in readiness for use may be that 
vessel's State of principal operation. On the contrary, in amending 33 
CFR 173.5, this final rule defines ``state of principal operation'' 
essentially the same as ``state of principal use'' was defined prior to 
1983: the focus is on where the boat is operated a majority of the time 
and not on where it is moored or stored. Neither a vessel owner nor the 
vessel itself has to physically reside in the state where the vessel is 
numbered.
    Two commenters supported our proposed addition of VIS waiver 
provisions. A third commenter said we could also encourage State 
participation in VIS by making it clear that States may search the VIS 
database for information on vessel title and liens. It is true that VIS 
is statutorily structured to capture title and lien data, if it is 
voluntarily provided by participating States. At this time, States are 
not providing those data because they themselves do not collect them. 
If this situation changes, and States start capturing title and lien 
data with VIS, those data will be available to all VIS-participating 
States, as is the case with all other VIS data. Three commenters 
objected to requiring a vessel owner applying for a certificate of 
number to present some unique owner identification. They cited the 
difficulties their States could have in adopting implementing 
legislation, objected to the burden of collecting the additional 
information, or questioned its value. The Coast Guard believes that it 
is important to have some mechanism to differentiate between similar or 
identical names. The final rule provides flexibility for each State to 
determine which type of unique identifier best fits its system.
    Six commenters made specific requests for additional clarification 
or modification of terminology. In most cases we have granted those 
requests, but others--for example, the suggestion that we should 
require the collection of information for 42 vessel subtypes--are 
beyond the scope of this rulemaking.
    Seven commenters made miscellaneous and minor suggestions for 
altering the proposed regulatory text. We address most of these in the 
final rule.
    Table 1 lists the regulatory sections affected by this final rule, 
links each section's changes to one of the four basic issues 
(terminology, HINs, PII, and flexibility) previously discussed or 
states ``n/a'' (not applicable), summarizes what was proposed in the 
NPRM, and discusses any changes that

[[Page 18692]]

we are making in the final rule. It omits discussion of several non-
substantive style or format changes made solely to improve the clarity 
of our regulatory language.

                                       Table 1--Changes Made by This Rule
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                                                                                       Changes from the NPRM for
      33 CFR section affected            Basic issues             NPRM proposal              the final rule
----------------------------------------------------------------------------------------------------------------
Purpose; preemptive effect, Sec.    n/a..................  Not included in the NPRM..  Add language describing
 173.1.                                                                                 the basis for and extent
                                                                                        of our preemption of
                                                                                        State regulatory action,
                                                                                        in alignment with the
                                                                                        discussions of
                                                                                        Federalism contained in
                                                                                        the Regulatory Analyses
                                                                                        sections of both the
                                                                                        NPRM and this final
                                                                                        rule.
Definitions, Sec.   173.3.........  Terminology..........  Add or revise definitions   Add the Title 1 U.S. Code
                                                            to align with substantive   definition of ``vessel''
                                                            changes.                    and make minor
                                                                                        clarifying changes in
                                                                                        the definitions of
                                                                                        ``auxiliary sail,''
                                                                                        ``cabin motorboat,''
                                                                                        ``certificate of
                                                                                        number,'' ``hull
                                                                                        identification number,''
                                                                                        ``inboard,'' ``open
                                                                                        motorboat,'' ``owner,''
                                                                                        ``personal watercraft,''
                                                                                        ``State,'' and
                                                                                        ``sterndrive.'' Remove
                                                                                        definitions of
                                                                                        ``permitted events,''
                                                                                        ``towed watersports,''
                                                                                        and ``whitewater
                                                                                        boating'' because we are
                                                                                        not using those terms in
                                                                                        the final rule's version
                                                                                        of amendments to part
                                                                                        173.
Vessel number required, Sec.        Terminology..........  Substitute ``State of       No change.
 173.15.                                                    principal operation'' for
                                                            ``State in which the
                                                            vessel is principally
                                                            used'' to align with
                                                            statutory language.
Other numbers prohibited, Sec.      Terminology..........  Substitute ``operate'' for  No change.
 173.19.                                                    ``use'' to align with
                                                            statutory language.
Certificate of number required,     Terminology..........  Substitute ``operate'' and  No change.
 Sec.   173.21.                                             ``operated'' for ``use''
                                                            and ``used'' to align
                                                            with statutory language.
Inspection of certificate, Sec.     Terminology..........  Substitute ``operating''    No change.
 173.23.                                                    for ``using'' to align
                                                            with statutory language.
Location of certificate of number,  Terminology..........  Substitute ``operate'' for  No change.
 Sec.   173.25.                                             ``use'' to align with
                                                            statutory language.
Removal of number, Sec.   173.33..  Terminology..........  Substitute ``operated''     No change.
                                                            for ``used'' to align
                                                            with statutory language.
Coast Guard validation sticker,     Terminology..........  Substitute ``operate'' for  No change.
 Sec.   173.35.                                             ``use'' to align with
                                                            statutory language.
Applicability, Sec.   173.51......  Terminology..........  Substitute ``operated''     No change.
                                                            for ``used'' to align
                                                            with statutory language.
Contents of report, Sec.   173.57.  Terminology..........  Revise casualty and         Eliminate requirements
                                                            accident report contents    for describing the
                                                            to align terminology with   vessel's operation and
                                                            statutory language,         activity at the time of
                                                            modernize terminology,      a casualty or accident
                                                            and require additional      and whether the vessel
                                                            information about           was or was not involved
                                                            property owners and the     in a permitted event and
                                                            use of fire                 the nature of the
                                                            extinguishers;              casualty or accident
                                                            implementation deferred     (paragraphs (c)(22),
                                                            until January 1, 2017.      (23), (24), and (25) in
                                                                                        the NPRM), eliminate the
                                                                                        requirement for
                                                                                        reporting the telephone
                                                                                        numbers of property
                                                                                        owners, and in response
                                                                                        to a comment, change
                                                                                        ``incident'' to
                                                                                        ``casualty or
                                                                                        accident.''
                                                                                       No change in the date of
                                                                                        implementation.
Where to report, Sec.   173.59....  n/a..................  Require casualty and        Withdraw proposed
                                                            accident report to be       amendment because it is
                                                            filed with the State        not related to a basic
                                                            where the incident          issue.
                                                            occurred (eliminate
                                                            current option of filing
                                                            in the State where the
                                                            vessel is principally
                                                            operated or registered).
Application for and issuance of     Terminology..........  Authorize issuance of       No change.
 certificate of number, Sec.                                original or duplicate
 173.71.                                                    certificates for clarity
                                                            and modernize terminology.
Duplicate certificate of number,    n/a..................  Remove section and          No change.
 Sec.   173.73.                                             transfer substance to
                                                            Sec.   173.71.

[[Page 18693]]

 
Validity of certificate of number,  Terminology..........  Substitute ``operated''     No change.
 Sec.   173.77.                                             for ``used'' to align
                                                            with statutory language.
Issuing authorities and reporting   Terminology..........  Substitute ``operation''    No change.
 authorities 33 CFR part 173,                               for ``use'' to align with
 Appendix A.                                                statutory language.
Applicability; preemptive effect,   n/a..................  Add preemption language to  No change.
 Sec.   174.1.                                              align with discussion of
                                                            Federalism.
Definitions, Sec.   174.3.........  Terminology..........  Add or revise definitions   For better clarity, add
                                                            to align with substantive   the Title 1 U.S. Code
                                                            changes.                    definition of ``vessel''
                                                                                        and a definition for
                                                                                        ``operate,'' and make
                                                                                        minor clarifying changes
                                                                                        in the definitions of
                                                                                        ``auxiliary sail,''
                                                                                        ``cabin motorboat,''
                                                                                        ``certificate of
                                                                                        number,'' ``hull
                                                                                        identification number,''
                                                                                        ``inboard,'' ``open
                                                                                        motorboat,'' ``owner,''
                                                                                        ``personal watercraft,''
                                                                                        and ``State.''
Verification of HIN, Sec.   174.16  HINs.................  Require States to verify a  Require States to verify
                                                            vessel's compliance with    that a vessel has a
                                                            HIN requirements or affix   valid primary HIN, but
                                                            valid HIN; 3-year           State personnel will not
                                                            deferral of                 be required to affix
                                                            implementation.             valid HINs themselves.
                                                                                       Defer implementation for
                                                                                        more than 4 full years,
                                                                                        to Jan. 1, 2017, rather
                                                                                        than the three years
                                                                                        proposed in the NPRM.
Contents of application for         Terminology PII......  Require unique personal     Make minor clarifying
 certificate of number, Sec.                                identifier, align and       changes in several terms
 174.17.                                                    modernize terminology; 3-   per commenter
                                                            year deferral of            suggestions.
                                                            implementation.            Restore the ZIP code,
                                                                                        which appears in the
                                                                                        current regulation but
                                                                                        which did not appear in
                                                                                        the NPRM, as a required
                                                                                        element of the owner's
                                                                                        address information.
                                                                                       Defer implementation for
                                                                                        more than 4 full years,
                                                                                        to Jan. 1, 2017, rather
                                                                                        than the three years
                                                                                        proposed in the NPRM.
Contents of a certificate of        Terminology HINs.....  To facilitate data          Make minor clarifying
 number, Sec.   174.19.                                     verification for law        changes in several terms
                                                            enforcement and maritime    per commenter
                                                            security purposes, delete   suggestions.
                                                            current option for owners  Restore the ZIP code,
                                                            of vessels with HINs to     which appears in the
                                                            omit certain information;   current regulation but
                                                            align and modernize         which did not appear in
                                                            terminology; 3-year         the NPRM, as a required
                                                            deferral of                 element of the owner's
                                                            implementation.             address information.
                                                                                       Defer implementation for
                                                                                        more than 4 full years,
                                                                                        to Jan. 1, 2017, rather
                                                                                        than the three years
                                                                                        proposed in the NPRM.
Temporary certificates, Sec.        Terminology HINs.....  Clarify, add HIN as         Clarify that, as in
 174.21.                                                    required information,       existing 33 CFR 174.17
                                                            substitute ``operated''     and 174.19, vessel
                                                            for ``used'' to align       length means overall
                                                            with statutory language;    length.
                                                            3-year deferral of         Defer implementation for
                                                            implementation.             more than 4 full years,
                                                                                        to Jan. 1, 2017, rather
                                                                                        than the three years
                                                                                        proposed in the NPRM
Forwarding of casualty or accident  Terminology..........  Update address information  No change.
 reports, Sec.   174.121.                                   and add electronic
                                                            submission option to
                                                            allow for choices in
                                                            reporting method and
                                                            align with Federal e-
                                                            Government initiatives.
Coast Guard address, Sec.           Terminology..........  Update address information  No change.
 174.125.
Purpose and applicability;          n/a..................  Add preemption language to  No change.
 preemptive effect, Sec.   181.1.                           align with discussion of
                                                            Federalism.
Definitions, Sec.   181.3.........  Terminology..........  Add or revise definitions   Change the word order,
                                                            to align with substantive   without altering the
                                                            changes.                    sense of, the definition
                                                                                        of ``manufacturer,'' per
                                                                                        commenter suggestion.

[[Page 18694]]

 
Hull identification numbers         Terminology HINs       Add new (b)(revise and      Remove requirement for
 required, Sec.   181.23.            Flexibility.           relocate current language   State personnel to affix
                                                            from Sec.   181.31(c)),     valid HINs and make
                                                            and substitute ``agency     minor wording change.
                                                            designated by the issuing
                                                            authority'' for
                                                            references to the State
                                                            boating law administrator
                                                            to provide States with
                                                            additional administrative
                                                            flexibility.
Manufacturer identification code    n/a..................  Remove (c) (relocated to    No change.
 assignment, Sec.   181.31.                                 Sec.   181.23).
How is a State's participation in   Flexibility..........  Revise section for          Make minor style changes.
 VIS documented? Sec.   187.11.                             additional State
                                                            administrative
                                                            flexibility.
What information must be collected  Terminology..........  N/A.......................  Make minor clarifying
 to identify a vessel owner? Sec.                                                       changes in several terms
  187.101.                                                                              per commenter
                                                                                        suggestions.
What information must be collected  Terminology..........  Add ``of vessel'' in (h),   Make minor clarifying
 to identify a vessel? Sec.                                 and revise (i)-(n) for      changes in several terms
 187.103.                                                   clarity and modern          per commenter
                                                            terminology.                suggestions.
----------------------------------------------------------------------------------------------------------------

VI. Regulatory Analyses

    We developed this final rule after considering numerous statutes 
and executive orders related to rulemaking. Below we summarize our 
analyses based on 14 of these statutes or executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and 
13563 (``Improving Regulation and Regulatory Review'') direct agencies 
to assess the costs and benefits of available regulatory alternatives 
and, if regulation is necessary, to select regulatory approaches that 
maximize net benefits (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This final rule has not been designated a 
``significant regulatory action'' under section 3(f) of Executive Order 
12866. Accordingly, the final rule has not been reviewed by the Office 
of Management and Budget.
    We summarize the public comments we received on the NPRM in the 
``Discussion of Comments and Changes'' section of this preamble. In 
response to public comments we modified the NPRM proposal as shown in 
Table 1. We lengthened the deferral period for implementing some 
changes, like the requirement for State verification of HINs. We 
modified the proposal for States to affix HIN numbers to vessels; now, 
State officials will not be required to affix the HIN themselves. We 
provided additional clarity to terminology and withdrew a change to the 
location at which to file a boating accident report.
    These changes result in a reduction in the cost of this rule from 
the initial estimate in the NPRM. Modifying the HIN verification 
requirement and lengthening the deferral period reduces the present 
value of the remaining costs, for the period of analysis, from $38.0 
million to $21.4 million at a 7-percent discount and from $46.0 million 
to $27.4 million at a 3-percent discount.
    We have found no additional data or information that further 
changed our findings of the undiscounted costs for the individual 
provisions of the rule (the costs of HIN verifications, the cost of 
changes to boating accident reporting, and the costs to change to 
Certificates of Number).
    Table 2 compares the original regulatory impacts published in the 
NPRM and the revised impacts of this final rule:

    Table 2--Comparison of Regulatory Impacts, NPRM and Final Rule, 7
                          Percent Discount Rate
------------------------------------------------------------------------
                                                                  Final
                      Category                          NPRM      rule
------------------------------------------------------------------------
Annualized..........................................      $5.4      $3.1
Ten-year............................................      38.0      21.4
------------------------------------------------------------------------

    A combined ``Final Regulatory Analysis and Final 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 of recreational vessel and certain 
undocumented vessel casualty and accident data, as required by 46 
U.S.C. 6102. The Coast Guard maintains a BARD that contains this 
information.
    The Coast Guard is statutorily required to maintain a VIS, which 
covers not only the undocumented vessels to which SNS applies, but also 
documented vessels and any vessel titled under State law. The VIS 
information system comprises data from vessels that the Coast Guard 
documents and vessel data from 32 voluntarily participating States. The 
VIS is used for identifying recreational, commercial, and public 
vessels that are numbered or titled under the laws of a state or 
territory. VIS includes information to identify 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 that 46 U.S.C. 12501(a)(2) and (b) require.
    The Coast Guard is amending its rules to promote uniformity between 
the SNS, VIS, and BARD.
    The changes from this rule will enhance the capabilities of 
Federal, State, and local boating safety and law enforcement officials. 
These changes will result in additional costs and benefits. In general, 
this rule will--
     Require States to verify that a valid primary vessel HIN 
has been affixed to each vessel for which a certificate of number is 
being issued, renewed, or upon the transfer of a vessel's ownership;

[[Page 18695]]

     Align terminology used by SNS, BARD, and VIS to describe 
recreational vessels and certain undocumented vessels and their 
operations;
     Modernize terminology to reflect statutory usage and 
current recreational vessel types, operations and equipment. States 
have until January 1, 2017 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 
have until January 1, 2017 to implement this change; and
     Provide additional administrative flexibility for States, 
for example, by adding waiver provisions for VIS participation.
    We estimate that this rule affects approximately 12.4 million 
vessels. The harmonization of terminology and the additional questions 
on the forms used to collect the data for the SNS affects all 
recreational vessels and certain undocumented vessels. The 
harmonization of terminology and the additional questions on the forms 
used to collect information from boating casualties affects those 
recreational vessels and certain undocumented vessels involved in 
boating accidents. There are approximately 5,094 boating accidents 
annually. Approximately 91 percent of recreational boats and certain 
undocumented vessels that this rule affects appear to be in compliance 
with the HIN requirement already, leaving 9 percent potentially needing 
to have HINs verified.\2\
---------------------------------------------------------------------------

    \2\ We obtained information on boat hull identification numbers 
from Info-Link, which is the company that administers the Coast 
Guard's Vessel Identification System.
---------------------------------------------------------------------------

    The implementation of these requirements will begin on January 1, 
2017. This is a delay in implementation compared to the NPRM, in which 
it was proposed that implementation would begin on January 1 of Year 4, 
which would be 2015. Costs will be incurred beginning with the year 
prior to rule implementation, 2016, due to the need to prepare for the 
January 1, 2017 implementation.
    We estimated the total average costs of this rulemaking over a 10-
year period as summarized in Table 3, which compares the costs in this 
final rule to those in the NPRM, which used a 3-year delay in 
implementation. Cost estimates are presented at a 7-percent discount.

                                            Table 3--Summary of Costs
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Final rule                         NPRM
                                                 ---------------------------------------------------------------
                      Year                           7 Percent                       7 Percent
                                                   discount rate   Undiscounted    discount rate   Undiscounted
----------------------------------------------------------------------------------------------------------------
2012............................................            $0.0            $0.0            $0.0            $0.0
2013............................................             0.0             0.0             0.0             0.0
2014............................................             0.0             0.0            13.5            16.5
2015............................................             0.0             0.0             7.8            10.2
2016............................................             8.4            11.7             5.6             7.9
2017............................................             4.8             7.2             2.5             3.8
2018............................................             3.5             5.7             2.4             3.8
2019............................................             1.7             2.9             2.2             3.8
2020............................................             1.6             2.9             2.1             3.8
2021............................................             1.5             2.9             1.9             3.8
                                                 ---------------------------------------------------------------
    Total *.....................................            21.4            33.3            38.0            53.6
Annualized......................................             3.1             3.3             5.4             5.4
----------------------------------------------------------------------------------------------------------------
* Figures may not sum due to rounding.

    The main cost driver for this rule is the issuing authority 
verification of the HIN with documentation or visual inspection of the 
vessel when no proper record of the HIN exists. The issuing authority, 
usually the State, has the option to choose the most suitable 
verification method. Examples of such methods are (1) owner 
verification, whereby the State could ask the owner of the vessel to 
visually inspect the visible HIN that is on the boat and report the 
correct information back to the State and (2) third party verification, 
whereby a volunteer organization like the Coast Guard Auxiliary would 
perform the visual inspection of a boats' visible HIN. The HIN 
requirement has been in place since 1972 and documentation for vessel 
registration is already required for that long-established process. 
This is an extra step in the current process to help ensure that the 
visible HIN on the vessel is properly recorded in the appropriate 
databases.
    Some of the owners of these vessels will be able to correct any 
discrepancies easily, but the States may require others to transport 
the vessel to the issuing authority in order to have the HIN verified. 
The HIN verification makes up approximately 89 percent (10.5 million, 
non-discounted) of the first-year cost of implementation and 
approximately 66 percent (1.9 million, non-discounted) of the annual 
recurring cost.
    The final rule aims 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 are benefits that will accrue to 
all users of these databases. The Coast Guard and others use the SNS, 
VIS and BARD information in decision-making situations. These 
situations include the methodical design of new boating safety 
initiatives as well as split-second decisions made by law enforcement 
officers in the field.\3\ Some of the benefits of the 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.
---------------------------------------------------------------------------

    \3\ See the Collection of Information OMB 1625-0108 supporting 
documentation for further information.
---------------------------------------------------------------------------

    The ``Final Regulatory Analysis and Final Regulatory Flexibility 
Analysis'' available in the docket provides additional detail on the 
costs and benefits of this rulemaking.

[[Page 18696]]

B. Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this rule will 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 ``Final Regulatory Analysis and Final Regulatory 
Flexibility Analysis'' discussing the impact of this 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 rule regulates recreational vessels and certain undocumented, 
State-numbered 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).\4\
---------------------------------------------------------------------------

    \4\ These are individuals that do not use vessels for commercial 
purposes.
---------------------------------------------------------------------------

    We estimate that there are potentially 136,209 owners of certain 
undocumented vessels used for commercial purposes that may be affected 
by parts of this rulemaking. Of these, there are potentially 12,259 
vessel owners who may have to have their vessel HIN verified.
    Based on available data, we determined that over 90 percent of the 
owners of vessels used for commercial purposes could be small entities 
according to small entity size standards defined by the Small Business 
Administration and the Regulatory Flexibility Act. We found that many 
small entities affected by this rule were 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 will incur a direct cost of 
compliance of less than 1 percent of revenue.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this final rule will not have a significant economic impact on a 
substantial number of small entities.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we offered in our NPRM to 
assist small entities in understanding the rule so that they could 
better evaluate its effects on them and participate in the rulemaking. 
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). 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.

D. Collection of Information

    This rule affects three collections of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). It will 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 rule will add to the recordkeeping and reporting requirements 
of vessel owners and agencies involved in issuing vessel registration 
and reporting boating accidents.
    The issuing authority will have to modify the boating casualty 
report form, modify the certificate of number application and, in cases 
where necessary, verify that valid HINs are properly affixed to the 
vessel and recorded. The owners of recreational vessels and certain 
undocumented vessels will 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 and certain 
undocumented vessels will have to have the issuing authority verify a 
valid HIN upon the issuance, reissue, sale or transfer of a vessel.
    For additional detail and information on the burden of this rule, 
see the final regulatory analysis available in the docket. 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 
certain undocumented vessels 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 
a State's 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 2,970 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 2,970 hours for the 
estimated 5,094 reports.

[[Page 18697]]

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: 46 U.S.C. 12501 mandates the establishment of 
a VIS. 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 
certain undocumented vessels and governments of States.
    Number of Respondents and Responses: The estimated number of 
respondents is 56, both revised and current.
    Frequency of Response: Daily.
    Burden of Response: The estimated burden remains 5,456 hours a 
year.
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. The Coast Guard uses that 
information in the publication of its annual ``Boating Statistics'' 
report that 46 U.S.C. 6102(b) requires and in the allocation of Federal 
funds to assist in carrying out the Recreational Boating Safety (RBS) 
Program which 46 U.S.C. chapter 131 established.
    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, information from the SNS increases 
officer safety by assisting boarding officers in determining how best 
to approach a vessel suspected of illegal activity.
    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 Coast Guard uses the information in the publication 
of an annual ``Boating Statistics'' report that 46 U.S.C. 6102(b) 
requires and in the allocation of Federal funds to assist States in 
carrying out the Recreational Boating Safety (RBS) Program, which 46 
U.S.C. chapter 131 established.
    Description of Respondents: Operators of recreational boats and 
certain undocumented vessels 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 385,464, compared to the current burden hours of 
286,458.
    There are no collection costs to the Federal Government for the SNS 
because States implement the program.
    As required by 44 U.S.C. 3507(d), we submitted a copy of the 
proposed rule to the Office of Management and Budget (OMB) for its 
review of the collections of information. OMB has not yet completed its 
review of these collections. Therefore, the Coast Guard cannot enforce 
the collections contained in 33 CFR 173.57(c), 174.16(b), 174.17(c), or 
174.19(c) until its information collection requests are approved by 
OMB. We will publish a document in the Federal Register informing the 
public of OMB's decision to approve, modify, or disapprove the 
collection.
    You are not required to respond to a collection of information 
unless it displays a currently valid OMB control number.

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. 
Congress intended these regulations to be preemptive as State numbering 
systems, once approved by the Secretary, must be consistent with the 
Federal standard numbering system and must adopt the definitions of 
relevant terms prescribed by the Secretary. Should a State amend its 
numbering system without the approval of the Secretary, or administer 
its system in an inconsistent manner to the Federal numbering system, 
the Secretary may withdraw his or her approval. Therefore, since State 
numbering systems cannot deviate from the Federal numbering system 
prescribed by the Secretary, the Federal regulations are preemptive. 
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. 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., chapter 43; specifically section 4302. Under another section of 
that chapter, section 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

[[Page 18698]]

U.S.C. 2103. We are adding 46 U.S.C. 12501 as an additional authority. 
Because State participation in the VIS is entirely voluntary, the 
regulations in this part 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, in the NPRM, we invited 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. We received no comments from an elected official or 
organization that represents such officials, though we did receive many 
comments from appointed State officials who have responsibility for 
administering boating safety laws, and from the national organization 
that represents those officials. We meet regularly with many of these 
officials and in most cases they have long been aware of our interest 
in the changes made by this final rule. Their concerns, our position on 
those concerns, and the actions we have taken to address them, are 
discussed in detail in part V of this preamble, ``Discussion of 
Comments and Changes.''
    Additionally, President Obama's Memorandum of May 20, 2009 titled 
``Preemption,'' states that ``preemption of State law by executive 
departments and agencies should be undertaken only with full 
consideration of the legitimate prerogatives of the States and with a 
sufficient legal basis for preemption.'' To that end, when a department 
or agency intends to preempt State law, it should do so only if 
justified under legal principles governing preemption, including those 
outlined in Executive Order 13132, and it should also include 
preemption provisions in the codified regulation. In accordance with 
this memorandum, the Coast Guard has included in the final rule 
regulatory text the statutory provisions granting it preemption 
authority as well as language indicating its intent to preempt 
conflicting state or local regulation, when required.

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 rule will not result in 
such an expenditure, we do discuss the effects of this rule elsewhere 
in this preamble. No public comments were received on this subject in 
response to our NPRM, and we made no changes affecting the subject for 
the final rule.

G. Taking of Private Property

    This rule will not cause a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights. No public comments were received on this subject in response to 
our NPRM, and we made no changes affecting the subject for the final 
rule.

H. Civil Justice Reform

    This 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. No public comments were 
received on this subject in response to our NPRM, and we made no 
changes affecting the subject for the final rule.

I. Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. This rule 
is not an economically significant rule and does not create an 
environmental risk to health or risk to safety that may 
disproportionately affect children. No public comments were received on 
this subject in response to our NPRM, and we made no changes affecting 
the subject for the final rule.

J. Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
because it does 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. No public comments 
were received on this subject in response to our NPRM, and we made no 
changes affecting the subject for the final rule.

K. Energy Effects

    We have analyzed this 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. No public comments were received on this subject in response 
to our NPRM, and we made no changes affecting the subject for the final 
rule.

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 be impractical. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or 
operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this 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 concluded 
that this action is one of a category of actions which do not 
individually or cumulatively have a significant effect on the human 
environment. This rule is categorically excluded under section 2.B.2, 
figure 2-1, paragraph (34)(a) and (d) of the Instruction. This rule 
involves regulations which are editorial or procedural, such as those 
updating addresses or establishing application

[[Page 18699]]

procedures; and regulations concerning manning, documentation, 
admeasurement, inspection, and equipping of vessels. An environmental 
analysis checklist and a categorical exclusion determination are 
available in the docket where indicated under ADDRESSES.

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, Incorporation by reference, 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 amends 
33 CFR parts 173, 174, 181, and 187 as follows:

PART 173--VESSEL NUMBERING AND CASUALTY AND ACCIDENT REPORTING

0
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.


0
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.

0
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 with sail as its primary method of 
propulsion and mechanical propulsion as its secondary method.
    Cabin motorboat means a vessel propelled by propulsion machinery 
and providing enclosed spaces inside its structure.
    Certificate of number means the certificate required by Sec.  
173.21 of this part.
    Houseboat means a motorized vessel that is usually non-planing and 
designed primarily for multi-purpose accommodation spaces with low 
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a number required by 33 CFR 
181.23.
    Inboard, in the context of an engine, means an engine mounted 
inside the confines of a vessel which powers a drive shaft that turns a 
water jet impeller or that runs through the bottom of the hull and is 
attached to a propeller 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 itself when a State numbering system has not been approved.
    Open motorboat means a vessel equipped with propulsion machinery 
and having an open load carrying area that does not have a continuous 
deck to protect it from the entry of water.
    Operate means use, navigate, or employ.
    Operator means the person who is in control or in charge of a 
vessel while it is in operation.
    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, other than a secured party, having property 
rights in or title to a vessel, including persons entitled to use or 
possess a vessel subject to a security interest in another person, but 
excluding lessees under a lease not intended as security.
    Paddlecraft means a vessel powered only by its occupants, 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 and designed to 
be operated by a person sitting, standing, or kneeling on the vessel, 
rather than sitting or standing within the vessel's 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 itself when 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, the District of Columbia, 
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
Puerto Rico, the U.S. Virgin 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, powering a propeller through a series 
of shafts and gears, mounted in front of the transom of a vessel and 
attached through the transom to a drive unit that is similar to the 
lower unit of an outboard; and may also be known as an inboard-outdrive 
or an inboard-outboard.
    Vessel means every description of watercraft or other artificial 
contrivance used or capable of being used as a means of transportation 
on water.


Sec.  173.15  [Amended]

0
4. In Sec.  173.15(a)(1) and (b), 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]

0
5. In Sec.  173.19, remove the word ``use'' and add, in its place, the 
word ``operate''.


Sec.  173.21  [Amended]

0
6. Amend Sec.  173.21 as follows:
0
a. In paragraph (a) introductory text, remove the word ``use'' and add, 
in its place, the word ``operate''; and

[[Page 18700]]

0
b. In paragraph (a)(1), remove the word ``used'' and add, in its place, 
the word ``operated''.


Sec.  173.23  [Amended]

0
7. In Sec.  173.23, remove the word ``using'' and add, in its place, 
the word ``operating''.


Sec.  173.25  [Amended]

0
8. In Sec.  173.25, remove the word ``use'' and add, in its place, the 
word ``operate''.


Sec.  173.33  [Amended]

0
9. In Sec.  173.33(c), remove the word ``used'' and add, in its place, 
the word ``operated''.


Sec.  173.35  [Amended]

0
10. In Sec.  173.35, remove the word ``use'' and add, in its place, the 
word ``operate''.


Sec.  173.51  [Amended]

0
11. In Sec.  173.51(a) introductory text and (a)(1), remove the word 
``used'' and add, in its place, the word ``operated''.

0
12. Revise Sec.  173.57 to read as follows:


Sec.  173.57  Contents of report.

    (a) Each report required by Sec.  173.55 of this subpart must be in 
writing, dated upon completion, and signed by the person who prepared 
it.
    (b) Until January 1, 2017, each report must contain, if available, 
at least the following information about the casualty or accident:
    (1) Number and name 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 onboard 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, 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) As of January 1, 2017, each report must contain, if available, 
at least the following information about the casualty or accident:
    (1) Number and name 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 onboard 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 number 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, 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 of or contributed to causing the casualty.
    (23) Characteristics of the reporting operator's vessel, 
including--
    (i) Make;
    (ii) Model;
    (iii) Type: authorized terms are ``air boat'', ``auxiliary sail'', 
``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open 
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``rowboat'', ``sail only'', or ``other'';
    (iv) Beam width at widest point;
    (v) Overall length of vessel;
    (vi) Depth from transom to keel;
    (vii) Horsepower;
    (viii) Propulsion: authorized terms are ``air thrust'', ``manual'', 
``propeller'', ``sail'', ``water jet'', or ``other'';
    (ix) Fuel: authorized terms are ``electric'', ``diesel'', ``gas'', 
or ``other'';
    (x) Engine drive type: authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other'';
    (xi) Hull material: authorized terms are ``aluminum'', 
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'', 
``wood'', or ``other''; and
    (xii) Model year;
    (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.

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13. Revise Sec.  173.71 to read as follows:

[[Page 18701]]

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

    (a) The owner of a vessel to which Sec.  173.11 of this part 
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 is lost or destroyed.


Sec.  173.73  [Removed and Reserved]

0
14. Remove and reserve Sec.  173.73.


Sec.  173.77  [Amended]

0
15. In Sec.  173.77(d), remove the word ``used'' and add, in its place, 
the word ``operated''.

Appendix A [Amended]

0
16. 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

0
17. 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).


0
18. 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 the 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.

0
19. 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 powered by an engine.
    Auxiliary sail means a vessel with sail as its primary method of 
propulsion and mechanical propulsion as its secondary method.
    Cabin motorboat means a vessel propelled by propulsion machinery 
and providing enclosed spaces inside its structure.
    Certificate of number means the certificate required by 33 CFR 
173.21.
    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 multi-purpose accommodation spaces with low 
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a number required by 33 CFR 
181.23.
    Inboard, in the context of an engine, means an engine mounted 
inside the confines of a vessel which powers a drive shaft that turns a 
water jet impeller or that runs through the bottom of the hull and is 
attached to a propeller at the other end.
    Inflatable boat means a vessel that uses air-filled flexible fabric 
for buoyancy.
    Open motorboat means a vessel equipped with propulsion machinery 
and having an open load carrying area that does not have a continuous 
deck to protect it from the entry of water.
    Operate means use, navigate, or employ.
    Operator means the person who is in control or in charge of a 
vessel while it is in operation.
    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, other than a secured party, having property 
rights in or title to a vessel, including persons entitled to use or 
possess a vessel subject to a security interest in another person, but 
excluding lessees under a lease not intended as security.
    Paddlecraft means a vessel powered only by its occupants, 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 and designed to 
be operated by a person sitting, standing, or kneeling on the vessel, 
rather than sitting or standing within the vessel's 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 itself when 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, the District of Columbia, 
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
Puerto Rico, the U.S. Virgin 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, powering a propeller using shifts and 
gears, mounted in front of the transom of a vessel and attached through 
the transom to a drive unit that is similar to the lower unit of an 
outboard, which may also be known as an inboard-outdrive or an inboard-
outboard.
    Vessel means every description of watercraft or other artificial 
contrivance used, or capable of being used, as a means of 
transportation on water.

0
20. Add new Sec.  174.16 to read as follows:


Sec.  174.16  Verification of hull identification numbers (HINs).

    (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

[[Page 18702]]

of number under this part but does not include the issuance of a 
temporary certificate under 33 CFR 174.21.
    (b) As of January 1, 2017, 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 primary 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 primary HIN 
meeting the requirements of 33 CFR part 181, subpart C, then before 
taking any action the issuing authority must--
    (1) Assign such a primary HIN to the vessel; and
    (2) Verify that the owner of the vessel has permanently affixed the 
assigned primary HIN to the vessel in compliance with 33 CFR part 181, 
subpart C.

0
21. 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, including ZIP code.
    (3) Owner identifier, which must be the owner's tax identification 
number, date of birth together with driver's license number, or date of 
birth together with other unique number.
    (4) State of principal operation.
    (5) Number previously issued by an issuing authority.
    (6) Application type: Authorized terms are ``new number'', 
``renewal of number'', or ``transfer of ownership''.
    (7) Primary operation: Authorized terms are, ``charter fishing'', 
``commercial fishing'', ``commercial passenger carrying'', ``dealer or 
manufacturer demonstration'', ``other commercial operation'', 
``pleasure'', or ``rent or lease''.
    (8) Make and model of vessel.
    (9) Model year.
    (10) Hull identification number, if any.
    (11) Overall length of vessel.
    (12) Vessel type: Authorized terms are ``air boat'', ``auxiliary 
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open 
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``rowboat'', ``sail only'', or ``other''.
    (13) Hull material: Authorized terms are ``aluminum'', 
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'', 
``wood'', or ``other''.
    (14) Propulsion type: Authorized terms are ``air thrust'', 
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (15) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other''.
    (16) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'', 
or ``other''.
    (17) 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 April 27, 2012, the requirements of paragraphs (a) and (b) of this 
section apply on January 1, 2017. Between April 27, 2012 and January 1, 
2017, the issuing authority may continue to accept applications 
containing the contents required by that reporting authority prior to 
April 27, 2012.

0
22. 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, including ZIP code.
    (6) Primary operation: Authorized terms are, ``charter fishing'', 
``commercial fishing'', ``commercial passenger carrying'', ``dealer or 
manufacturer demonstration'', ``other commercial operation'', 
``pleasure'', or ``rent or lease''.
    (7) Hull identification number, if any.
    (8) Make and model of vessel.
    (9) Model year.
    (10) Overall length of vessel.
    (11) Vessel type: Authorized terms are ``air boat'', ``auxiliary 
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open 
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``rowboat'', ``sail only'', or ``other''.
    (12) Hull material: Authorized terms are ``aluminum'', 
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'', 
``wood'', or ``other''.
    (13) Propulsion type: Authorized terms are ``air thrust'', 
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (14) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ``other''.
    (15) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'', 
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, registration, or law enforcement 
contact information.
    (c) For an issuing authority listed in Appendix A of this part on 
April 27, 2012, the requirements of paragraphs (a) and (b) of this 
section apply on January 1, 2017. Between April 27, 2012 and January 1, 
2017, the issuing authority may continue to issue certificates of 
number containing the contents in effect on April 27, 2012.

0
23. 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) Overall 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.
    (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 April 27, 2012, the requirements of paragraph (b) of this section 
apply on January 1, 2017. Between April 27, 2012 and January 1, 2017, 
the issuing authority may continue to issue temporary certificates 
containing the contents in effect on April 27, 2012.

0
24. Revise Sec.  174.121 to read as follows:

[[Page 18703]]

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 St. SW., Stop 7581, Washington, DC 20593-7581.

0
25. Revise Sec.  174.125 to read as follows:


Sec.  174.125  Coast Guard address.

    The report required by Sec.  174.123 of this subpart must be sent 
to the Commandant (CG-5422), U.S. Coast Guard, 2100 Second St. SW., 
Stop 7581, Washington, DC 20593-7581.

PART 181--MANUFACTURER REQUIREMENTS

0
26. 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).


0
27. 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.

0
28. Amend Sec.  181.3 by revising the definition of ``Manufacturer'' 
and by adding, in alphabetical order, the definition of ``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 of boats, associated equipment, or the 
components thereof, into the United States for sale.
* * * * *
    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.

0
29. Revise Sec.  181.23 to read as follows:


Sec.  181.23  Hull identification numbers required.

    (a) A manufacturer must identify each boat produced or imported 
with primary and secondary hull identification numbers permanently 
affixed in accordance with Sec.  181.29 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 and permanently affix the HIN to the boat in accordance with 
Sec.  181.29 of this subpart.
    (c) No person may assign the same HIN to more than one boat.

0
30. Revise Sec.  181.31 to read as follows:


Sec.  181.31  Manufacturer identification code assignment.

    (a) Each person required by Sec.  181.23(a) of this part to affix 
hull identifications numbers must request a manufacturer identification 
code in writing from the Commandant (CG-54223), 2100 Second St. 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 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 St. SW., Stop 7581, Washington, DC 20593-7581.

PART 187--VESSEL IDENTIFICATION SYSTEM

0
31. 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).


0
32. 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 Sec.  187.201 of this part. If the Commandant 
is satisfied that the State will comply fully with Sec.  187.201 of 
this part, the State will be allowed to participate in VIS and will be 
listed in Appendix A to this part, for as long as the Commandant 
determines that the State complies fully with Sec.  187.201 of this 
part.
    (b) A State wanting to participate in VIS but unable to comply with 
one or more requirements of Sec.  187.201 of this part 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 must--
    (1) Inform the Commandant in writing;
    (2) Describe the requirement or requirements for which waiver is 
sought and the good cause for noncompliance; and
    (3) Describe 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 3 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 non-compliance 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.

0
33. Amend Sec.  187.101 as follows:
0
a. Revise paragraphs (a)(4) and (b)(5)(i) to read as follows;

[[Page 18704]]

0
b. Remove and reserve paragraph (b)(5)(ii); and
0
c. Remove paragraph (b)(5)(iii).


Sec.  187.101  What information must be collected to identify a vessel 
owner?

    (a) * * *
    (4) Owner identifier, which must be the owner's tax identification 
number, date of birth together with driver's license number, or date of 
birth together with other unique number.
    (b) * * *
    (5) * * *
    (i) Owner identifier, which must be the owner's tax identification 
number, date of birth together with driver's license number, or date of 
birth together with other unique number.

0
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.
    (h) Overall length of vessel.
    (i) Vessel type: Authorized terms are ``air boat'', ``auxiliary 
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open 
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon 
boat'', ``rowboat'', ``sail only'', or ``other''.
    (j) Hull material: Authorized terms are ``aluminum'', 
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'', 
``wood'', or ``other''.
    (k) Propulsion type: Authorized terms are ``air thrust'', 
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (l) Engine drive type: Authorized terms are ``inboard'', 
``outboard'', ``pod drive'', ``sterndrive'', or ''other''.
    (m) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'', 
or ``other''.
    (n) Primary operation: Authorized terms are, ``charter fishing'', 
``commercial fishing'', ``commercial passenger carrying'', ``dealer or 
manufacturer demonstration'', ``other commercial operation'', 
``pleasure'', or ``rent or lease''.

    Dated: March 15, 2012.
Paul F. Thomas,
Captain, U.S. Coast Guard, Acting Director of Prevention Policy.
[FR Doc. 2012-7127 Filed 3-27-12; 8:45 am]
BILLING CODE 9110-04-P