Validation of Merchant Mariners' Vital Information and Issuance of Coast Guard Merchant Mariner's Licenses and Certificates of Registry, 2154-2167 [06-369]

Agencies

• Coast Guard
• DEPARTMENT OF HOMELAND SECURITY

[Federal Register Volume 71, Number 9 (Friday, January 13, 2006)]
[Rules and Regulations]
[Pages 2154-2167]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-369]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 10

[USCG-2004-17455]
RIN 1625-AA85


Validation of Merchant Mariners' Vital Information and Issuance 
of Coast Guard Merchant Mariner's Licenses and Certificates of Registry

AGENCY: Coast Guard, DHS.

ACTION: Interim rule with request for comments.

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SUMMARY: The Coast Guard is amending the maritime personnel licensing 
rules to include new security requirements when mariners apply for 
original, renewal, and raise of grade licenses and certificates of 
registry. This interim rule corrects omissions and ambiguities in the 
Coast Guard's preexisting maritime personnel licensing regulations. 
This interim rule will require all applicants for licenses and 
certificates of registry to have their identity checked and their 
fingerprints taken for a criminal record review by the Coast Guard. The 
new requirements are similar to those that apply to applicants for 
merchant mariner's documents.

DATES: This interim rule is effective January 13, 2006 and is 
applicable for applications received by the Coast Guard on or after 
that date. Comments and related material must reach the Docket 
Management Facility on or before April 13, 2006. Comments sent to the 
Office of Management and Budget on collection of information must reach 
OMB on or before March 14, 2006.

ADDRESSES: You may submit comments identified by Coast Guard docket 
number USCG-2004-17455 to the Docket Management Facility at the U.S. 
Department of Transportation. To avoid duplication, please use only one 
of the following methods:
    (1) Web site: https://dms.dot.gov.
    (2) Mail: Docket Management Facility, U.S. Department of 
Transportation, 400 Seventh Street SW., Washington, DC 20590-0001.
    (3) Fax: 202-493-2251.
    (4) Delivery: Room PL-401 on the Plaza level of the Nassif 
Building, 400 Seventh Street SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    (5) Federal eRulemaking Portal: https://www.regulations.gov.
    Instructions: All submissions must include the agency name and 
docket number or RIN for this rulemaking. All comments will be posted 
without change to https://www.dms.dot.gov/feddocket, including any 
personal information sent with each comment. For detailed instructions 
on submitting comments and additional information on the rulemaking 
process, see the ``Public Participation in Rulemaking Process'' heading 
of the SUPPLEMENTARY INFORMATION section of this document.
    Docket: For access to the docket to read background documents or 
submitted comments, go to https://www.dmt.dot.gov. You may also access 
the Federal eRulemaking Portal at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: If you have questions on this interim 
rule, call Mr. Stewart Walker, Project Manager, National Maritime 
Center (NMC), U.S. Coast Guard, telephone 202-493-1022. If you have 
questions on viewing the docket, call Ms. Andrea M. Jenkins, Program 
Manager, Docket Operations, Department of Transportation, telephone 
202-366-0271.
    For questions on submitting an application for the issuance of a 
license or certificate of registry, call the nearest Coast Guard 
Regional Examination Center (REC), a list of which appears in Title 46, 
Code of Federal Regulations (46 CFR) section 10.105, or on the Internet 
at https://www.uscg.mil/STCW/index.htm.

SUPPLEMENTARY INFORMATION:


[[Page 2155]]


I. Public Participation and Request for Comments
II. Background and Purpose
III. Discussion of the Rule
IV. Regulatory Requirements
    A. Administrative Procedure Act
    B. Regulatory Evaluation
    Baseline Population
    Costs
    Benefits
    Small Entities
    Assistance for Small Entities
    C. Paperwork Reduction Act
    D. Executive Order 13132 (Federalism)
    E. Unfunded Mandates Reform Act
    F. Taking of Private Property
    G. Civil Justice Reform
    H. Protection of Children
    I. Indian Tribal Governments
    J. Energy Effects
    K. Technical Standards
    L. Environment
List of Subjects in 46 CFR Part 10

I. Public Participation and Request for Comments

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
interim rule. Comments that will provide the most assistance to the 
Coast Guard in developing these procedures will reference a specific 
portion of the interim rule, explain the reason for any recommended 
change, and include data, information, or authority that support such 
recommended change. See ADDRESSES above for information on how to 
submit comments. All comments received will be posted, without change, 
to https://dms.dot.gov and will include any personal information you 
have provided. Please see DOT's ``Privacy Act'' paragraph below.
    The Coast Guard does not plan to hold a public meeting to solicit 
comments on this interim rule. However, you may submit a request for 
one to the Docket Management Facility at the address under ADDRESSES 
explaining why a hearing would be beneficial. If the Coast Guard 
determines that a public hearing would aid this rulemaking, we will 
hold one at a time and place announced by a later notice in the Federal 
Register.
    Submitting comments: If you submit a comment, please include your 
name and address, identify the docket number for this rulemaking (USCG-
2004-17455), indicate the specific section of this document to which 
each comment applies, and give the reason for each comment. You may 
submit your comments and material by electronic means, mail, fax, or 
delivery to the Docket Management Facility at the address under 
ADDRESSES; but please submit your comments and material by only one 
means. If you submit them by mail or delivery, submit them in an 
unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
copying and electronic filing. If you submit them by mail and would 
like to know that they reached the Facility, please enclose a stamped, 
self-addressed postcard or envelope. We will consider all comments and 
material received during the comment period in the drafting of the 
final rule.
    Viewing comments and documents: To view comments, as well as 
documents mentioned in this preamble as being available in the docket, 
go to https://dms.dot.gov at any time and conduct a simple search using 
the docket number. You may also visit the Docket Management Facility in 
room PL-401 on the Plaza level of the Nassif Building, 400 Seventh 
Street SW., Washington, DC, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.
    Privacy Act: Anyone can search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). Because the Coast 
Guard currently maintains comments on its regulations on the Docket 
Management System for the Department of Transportation (DOT), please 
review DOT's Privacy Act Statement, published in the Federal Register 
on April 11, 2000 at 65 FR 19477, or visit https://dms.dot.gov for the 
handling of public comments under the Privacy Act.

II. Background and Purpose

    A brief discussion of the terms used in portions of the preamble is 
offered to assist in the understanding of this interim rule. The term 
``credential'' encompasses the merchant mariner's document (MMD), 
license, and certificate of registry (COR). This rule affects only 
licenses and CORs, so in this document we use the term ``credential'' 
only to refer to a license or COR, and we specify if and when we mean 
to include MMDs. We use the term ``original'' credential to refer to an 
applicant's first license or COR; the term ``subsequent issue'' 
credential to refer to a raise of grade, renewal, or duplicate license 
or COR; and the term ``applicant'' to refer to mariners or prospective 
mariners who are applying for a license or COR.
    The Coast Guard has been regulating merchant mariners for quite 
some time, pursuant to an extensive statutory framework. 46 U.S.C. 
2103. Title 46 U.S.C. Chapter 71 addresses licenses, certificates, and 
documents and authorizes the Coast Guard to issue licenses and CORs to 
applicants found qualified as to age, character, habits of life, 
experience, professional qualifications, and physical fitness. Mariners 
who serve as officers must possess licenses or CORs to serve on board 
U.S.-flagged merchant vessels. 46 U.S.C. 8103. The license or COR 
functions as proof of a mariner's qualifications and competency, 
specifying each class for which the holder is qualified. 46 U.S.C. 
7101. Licenses and CORs for individuals on documented vessels may be 
issued only to citizens of the United States. 46 U.S.C. 7102. A license 
or COR is valid for five years, and may be renewed for additional five-
year periods. 46 U.S.C. 7106. For raise of grade licenses, such as from 
second mate to chief mate, a mariner must have at least one year of 
service at sea, receive training, demonstrate practical skills, and 
pass an examination. Raises of grade are done at the option of the 
mariner, dependent on a mariner's personal initiative. Coast Guard 
regulations governing the licensing and registering of mariners appear 
at 46 CFR part 10.
    At this time merchant mariners may be required to carry one of 
three credentials. These are the MMD, license, and COR. This interim 
rule affects only the mariner's license and COR.
    MMDs are required for mariners who sail on vessels of at least 100 
gross register tons on oceans and the Great Lakes, with some 
exceptions. When MMDs are required for a vessel, all mariners on that 
vessel, whether licensed or unlicensed, must hold them. When MMDs are 
not required for a vessel, mariners serving as officers on the vessel 
must still hold a proper license, while those not serving as officers 
generally will not need to possess any Coast Guard-issued credential.
    Unlike licenses and CORs, the MMD is an identity document. An MMD 
shows the mariner's photograph, ID number, nationality, address, date 
of birth, physical characteristics, and signature. Also, for those 
mariners who do not need to carry a license, the MMD is used to show 
that the mariner has undergone a safety and security check, and to show 
any additional qualifications or endorsements in the Deck, Engine or 
Steward's Department, and any additional endorsements such as 
Lifeboatman or Tankerman Person-in-Charge.
    The license is not an identity document. A license is a certificate 
that is issued for a term of five years and demonstrates a mariner's 
qualifications and competency to serve as a Deck

[[Page 2156]]

Officer, Engineer Officer, Pilot, or Radio Officer.
    CORs are similar to licenses, but are used only for staff officers 
in purser and medical positions. Medical positions require that the 
candidate also hold a valid State license. The COR, like the license, 
is not used for identification purposes. It is a certificate that shows 
that the mariner is qualified to perform one or more specialized job 
functions.
    The purpose of this interim rule is to amend 46 CFR part 10 to 
strengthen the security of the licensing process by increasing the 
likelihood that licenses and CORs are issued only to eligible mariners. 
To do this, the Coast Guard will now require mariners to appear at a 
Regional Exam Center (REC) to provide fingerprints, and allow REC staff 
to evaluate the information provided on the mariner's application at 
the REC. We will use the information provided to conduct a criminal 
record review in accordance with applicable law and regulations.

III. Discussion of the Rule

    The Coast Guard is revising its merchant mariner credentialing 
regulations with respect to licenses and CORs. MMDs are not affected by 
this rule because on January 6, 2004, the Coast Guard published an 
interim rule in the Federal Register, entitled ``Validation of Merchant 
Mariners' Vital Information and Issuance of Coast Guard Merchant 
Mariner's Documents (MMDs)'' (69 FR 526) to require appearance at a 
Coast Guard REC for the purposes of presenting identification and 
having fingerprints taken for original, renewal, and raise of grade 
MMDs. This rulemaking is meant to implement similar requirements for 
licenses and CORs. Similar to the MMD rulemaking, the Coast Guard is 
phasing in these requirements over a five-year period to reduce the 
burden on both mariners and Coast Guard resources.
    There are approximately 200,000 credentialed mariners in the United 
States. The MMD interim rule mentioned above affected approximately 
half of this population. This rulemaking will affect the remaining 
population. All of our substantive changes will increase the likelihood 
that the Coast Guard will process applications only from, and issue 
credentials only to, applicants who can prove they are who they claim 
to be, and whose backgrounds can be verified to make sure they meet 
security-related requirements. In addition to our substantive changes, 
we corrected minor stylistic and grammatical errors in 46 CFR part 10 
only when making a substantive change within the same section.
    The substantive changes to 46 CFR part 10 are discussed in Table 1, 
below. This table lists the problem with the preexisting regulations in 
column 1, then in column 2 it lists the change that was made and why.
    The Department of Homeland Security (DHS), under the authority of 
the Aviation and Transportation Security Act and the Maritime 
Transportation Security Act of 2002, is developing a program that can 
be used to control access to secure areas in vessels, facilities, and 
ports. (See 49 U.S.C. 114(f)(12); 46 U.S.C. 70105.) This program 
includes a system-wide transportation worker identification card which 
is currently under development. DHS is developing this program through 
the Transportation Security Administration (TSA), the Coast Guard, and 
other Federal agencies, including others within DHS. The Coast Guard 
will work with TSA to ensure that the regulations for obtaining 
licenses and CORs are consistent with this initiative to minimize 
future impacts on mariners.

          Table 1.--Former and New Provisions of 46 CFR Part 10
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              Former Rule                            New Rule
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The definition for ``conviction''        We revised the definition of
 specified that an applicant convicted    ``conviction'' to include
 of certain crimes was ineligible for     foreign or military court
 licensing, but did not include foreign   convictions, as these may be
 or military court convictions. (Sec.     relevant to a determination of
 10.103).                                 an applicant's character and
                                          habits of life; convictions
                                          for certain crimes by those
                                          courts now will count against
                                          an applicant. (Sec.   10.103).
An applicant who fails a chemical test   The regulation now defines
 for dangerous drugs was ineligible for   ``dangerous drug,'' using the
 licensing, but the regulation did not    same definition that appears
 define a ``dangerous drug.'' (Sec.       in 46 CFR 16.105. 46 CFR
 10.103).                                 16.105 is part of the Coast
                                          Guard's regulations on
                                          chemical testing of merchant
                                          mariners. This correction of
                                          an omission conforms our
                                          regulations in parts 10 and
                                          16. (Sec.   10.103).
Applicants for renewals could conduct    All applicants must appear at a
 the entire renewal process by mail.      Coast Guard Regional Exam
 (Sec.   10.105, Sec.   10.209).          Center (REC) to be
                                          fingerprinted by, and show
                                          identification (ID) to, an REC
                                          employee. This personal
                                          appearance requirement allows
                                          the Coast Guard to see that
                                          the fingerprints and ID
                                          actually belong to the
                                          applicant, thereby reducing
                                          the chance of fraud. (Sec.
                                          10.105, Sec.   10.209).
The Coast Guard allowed applicants to    All fingerprints must be taken
 provide fingerprints taken by an         at an REC, by an REC employee.
 outside entity. (Sec.   10.201).         Allowing mariners to submit
                                          fingerprints that were taken
                                          elsewhere left the Coast Guard
                                          with no assurance that the
                                          fingerprints actually belonged
                                          to the applicant. (Sec.
                                          10.105, Sec.   10.201).
Applicants for original and subsequent   Applicants must appear at an
 issue credentials had to show proof of   REC and present two acceptable
 their age and citizenship, but were      forms of ID. The requirement
 not required to show ID. (Sec.           of two IDs provides the Coast
 10.201).                                 Guard with an adequate amount
                                          of documentation to be
                                          reasonably confident that
                                          applicants are who they say
                                          they are. (Sec.   10.105).

[[Page 2157]]

 
No list of acceptable forms of ID was    A list of acceptable forms of
 presented in the regulation. (None).     ID is now presented in the
                                          regulation. As the requirement
                                          for ID is new, this list
                                          notifies the mariners as to
                                          what forms will be acceptable.
                                          The forms of ID that are
                                          listed are more easily
                                          verifiable by REC employees
                                          and more difficult to falsify.
                                          Additionally, on May 11, 2005,
                                          Congress enacted the REAL ID
                                          Act of 2005 (P.L. 109-13),
                                          which establishes a process
                                          for promulgating standards for
                                          the issuance of driver's
                                          licenses and ID cards. The
                                          statute states that after May
                                          11, 2008 Federal agencies will
                                          be prohibited from accepting
                                          for any official purpose IDs
                                          issued by States and
                                          territories that do not comply
                                          with this Act. Because of
                                          this, acceptable driver's
                                          licenses and ID cards are
                                          limited to those issued by
                                          States and territories that
                                          meet the requirements of the
                                          Act. As the requirements of
                                          the Act do not become
                                          mandatory until May 11, 2008,
                                          IDs from all States will be
                                          acceptable at least until that
                                          date, so long as their
                                          validity can be verified by an
                                          REC employee. (Sec.   10.105).
An applicant's qualifications could      The application can now be
 only be approved by the Officer in       approved by any officer
 Charge, Marine Inspection, (OCMI).       specified by Coast Guard
 (Sec.   10.201).                         policy. This reduces the
                                          likelihood of unreasonable
                                          delays in approving an
                                          applicant's qualifications.
                                          (Sec.   10.201).
Applicants could prove citizenship       The Coast Guard began issuing
 through any Merchant Mariner's           new MMDs utilizing more tamper-
 Document (MMD) issued by the Coast       resistant cards on February 3,
 Guard. (Sec.   10.205).                  2003. Only valid MMDs issued
                                          after that date may be used to
                                          document citizenship and
                                          identity. (Sec.   10.205).
Applicants could use any of the          The Coast Guard is no longer
 following atypical proofs of their       accepting atypical proofs of
 citizenship: Baptismal certificates;     citizenship. We believe
 parish records; statements of a          verifying atypical proofs of
 physician's attendance at a birth;       citizenship is best left in
 delayed certificates of birth; reports   the jurisdiction of government
 from the Census Bureau which showed      agencies that specialize in
 the earliest available record of age     document verification and
 or birth; affidavit(s) from a parent,    citizenship like the U.S.
 other relative, or two or more           Citizenship and Immigration
 responsible citizens; school records;    Services (USCIS) or the
 immigration records; and insurance       Department of State. Thus, we
 policies. (Sec.   10.205).               have aligned acceptable proof
                                          of citizenship with commonly
                                          used documents listed on the
                                          USCIS's Eligibility for
                                          Employment (I-9) form. By
                                          doing so, we maintained
                                          acceptance of commonly used
                                          documents, including birth
                                          certificates, Certificates of
                                          Citizenship, Certificates of
                                          Naturalization, and passports.
                                          These documents are issued by
                                          government agencies and are
                                          more difficult to alter than
                                          the previously accepted
                                          atypical proofs of
                                          citizenship. (Sec.   10.205).
There was no requirement for a criminal  Criminal record reviews and
 record review or fingerprint             fingerprints are required of
 submission for renewals. (Sec.           all applicants each time an
 10.201).                                 application is made, including
                                          renewals. No credential will
                                          be issued until the applicant
                                          has passed a criminal record
                                          review. This is to increase
                                          the likelihood that
                                          credentials are only given to
                                          those mariners whose character
                                          and habits of life are such
                                          that the applicant can be
                                          entrusted with the duties and
                                          responsibilities of the
                                          license or COR. (Sec.
                                          10.201).
Criminal record reviews were not         Criminal record reviews are now
 mandatory in the language of the         required for all applicants--
 regulation for all original and          regardless of whether they are
 subsequent issue applicants. (Sec.       original or subsequent issue
 10.201).                                 applications. The Coast Guard
                                          will not issue any credential
                                          until the applicant has passed
                                          a criminal record review. This
                                          is to increase the likelihood
                                          that credentials are only
                                          given to those mariners whose
                                          character and habits of life
                                          are such that the applicant
                                          can be entrusted with the
                                          duties and responsibilities of
                                          the license or COR. (Sec.
                                          10.201).
In section 10.201(a), the Officer in     We revised 10.201(a) to allow
 Charge, Marine Inspection (OCMI) had     others in the Coast Guard to
 to be satisfied as to an applicant's     make eligibility
 eligibility for a license or COR.        determinations. This change
 (Sec.   10.201).                         was made to streamline
                                          internal Coast Guard
                                          administrative procedures.
                                          (Sec.   10.201).
Applicants were not required to provide  Every time that a mariner
 new fingerprints and/or ID when          applies for a new credential
 seeking a raise of grade or renewal      they must provide a set of
 credential. (Sec.   10.209).             fingerprints and two
                                          acceptable forms of ID. While
                                          the likelihood that an
                                          individual's fingerprints will
                                          change is low, it is
                                          imperative that the Coast
                                          Guard determine if a mariner
                                          is who he or she says he or
                                          she is before issuing a
                                          credential. This information
                                          will be used for
                                          identification purposes as
                                          well as to update any criminal
                                          record history. (Sec.
                                          10.105, Sec.   10.209).
------------------------------------------------------------------------

IV. Regulatory Requirements

A. Administrative Procedure Act

    Implementation of this rule as an interim rule with a request for 
public comment after the effective date of the rule is based upon the 
``good cause'' exception found under the Administrative Procedure Act 
(APA) at 5 U.S.C. 553(b)(B). The Coast Guard has determined that 
delaying implementation of this rule to await public notice and comment 
is unnecessary, impracticable and contrary to the public interest for 
the following reasons:
    In the interests of marine safety and seamen's welfare, the Coast 
Guard was given general superintendence of merchant marine personnel by 
46 U.S.C. 2103 and 46 U.S.C. chapter 71. In 2002, Congress found that 
U.S. ports are susceptible to large-scale acts of terrorism that could 
cause a large loss of life or economic disruption, that ``ports are 
often a major locus of Federal crime,'' (Maritime Transportation 
Security Act of 2002, section 101, Pub. L. 107-295, 116 Stat. 2064) and 
that it

[[Page 2158]]

is in the best interest of the United States to increase port security. 
A Coast Guard-issued license authorizes its holder to serve in the 
capacity of vessel's officer, allowing him or her to assume positions 
of responsibility in the command and control of merchant marine 
vessels. The harm that can be caused by persons who wrongfully obtain 
licenses with the intention of committing crimes or terrorist acts 
jeopardizes mariner safety and welfare, as well as national security. 
Our goal is to protect the licensing process from abuse. As discussed 
above, the Coast Guard has identified several omissions and ambiguities 
in the former rule that could facilitate licensing abuse. This interim 
rule corrects those omissions and clarifies those ambiguities to 
promote maritime safety and security within the United States.
    Further, delay or suspension of the existing merchant mariner 
licensing process pending completion of notice and comment and 
publication of a final rule could have a severe impact on the 
professional lives of individual mariners, who are required to carry 
valid licenses to work on board certain U.S.-flag vessels, and could 
interfere with maritime commerce, which relies on the ready 
availability of licensed personnel.
    The delay of this rule would set up ``a situation in which the 
interest of the public would be defeated,'' as well as impede the ``due 
and timely execution'' of an important Coast Guard function; see 
Utility Solid Waste Activities Group v. Environmental Protection 
Agency, 236 F.3d 749 (D.C. Cir. 2001). The Coast Guard therefore finds 
delay of the implementation of this rule to allow for prior notice and 
comment to be impracticable and contrary to the public interest.
    The Coast Guard also finds good cause, under 5 U.S.C. 553(d)(3), 
for this interim rule to take effect immediately. The Coast Guard finds 
that, for the reasons previously discussed, it would be impracticable 
and contrary to the public interest to subject this interim rule to 
prior notice and public comment, or to delay its taking effect.
    Although we have good cause to publish this rule without prior 
notice and comment, we value public comments. As a result, we are 
soliciting public comments on this interim rule and may revise the 
final rule in response to those comments.

B. Regulatory Evaluation

    Executive Order 12866, ``Regulatory Planning and Review'', 58 FR 
51735, October 4, 1993, requires a determination whether a regulatory 
action is ``significant'' and therefore subject to review by the Office 
of Management and Budget (OMB) and subject to the requirements of the 
Executive Order. This rule has been identified as significant under 
Executive Order 12866 and has been reviewed by OMB.
    This interim rule changes certain requirements in 46 CFR part 10 
for how mariners and prospective mariners will apply for licenses and 
CORs.
    This interim rule requires applicants for original (new) and 
subsequent issue (raise of grade, renewal, and duplicate) licenses and 
CORs to have their fingerprints taken at an REC and to have their IDs 
checked at an REC. The rule requires an applicant to appear at least 
once in the application process, even if submitting an application by 
mail, fax, or other electronic means, and requires that the Coast Guard 
conduct fingerprinting and check IDs for original (new) and subsequent 
issue (raise of grade, renewal, and duplicate) license and COR 
transactions. The primary costs of this rule to applicants for licenses 
and CORs include the travel cost to an REC and the time spent at an REC 
in order to have their fingerprints taken and IDs checked. Currently, 
there is no consistent fingerprinting or identification policy among 
the RECs for license or COR applications. Some RECs asked all license 
applicants to visit an REC for fingerprinting, and some do not. All 
RECs allowed an applicant to renew a license or COR entirely by mail, 
since there was no requirement to submit fingerprints for that 
transaction. This interim rule will create one consistent policy at all 
RECs.
    The following sections discuss the baseline population of 
applicants and the portion of this population that will incur 
additional costs, the estimated cost per applicant, and the estimated 
national costs and benefits.
Baseline Population
    The average annual population of applicants who apply for a license 
or a COR is 30,142 mariners and prospective mariners. This population 
includes 9,384 applicants for original (new) licenses, 20,627 
applicants for subsequent issue (raise of grade, renewal, and 
duplicate) licenses, and 131 applicants for CORs. This population 
includes all applicants with or without a valid MMD at the time of the 
license or COR application. Table 2 presents the average annual 
applicant population by transaction type.

                  Table 2.--Summary of Average Annual Applicant Population by Transaction Type
----------------------------------------------------------------------------------------------------------------
                                                  Applicants for  Applicants for
     Current credential status of applicant          original       subsequent    Applicants for       Total
                                                     licenses     issue licenses     all CORs
----------------------------------------------------------------------------------------------------------------
Applicants who currently have an MMD............           2,038           7,302             131  ..............
Applicants who DO NOT currently have an MMD.....           7,346          13,325  ..............  ..............
                                                 -----------------
    Total Affected Population...................           9,384          20,627             131          30,142
----------------------------------------------------------------------------------------------------------------

    The average annual population is based on field information and 
data received from the Coast Guard's NMC and the Coast Guard's Maritime 
Personnel Qualifications Division. The period of analysis is inclusive 
from year 2005 through year 2009. We use a five-year period because all 
currently licensed mariners must renew their licenses and CORs once 
every five years. Therefore, this five-year period will cover a 
complete license and COR renewal cycle, which will give an accurate 
snapshot of the total cost of the interim rule for mariners to comply 
with the new application requirements.
    The subset of the population that will incur additional costs from 
this rule is comprised of those applicants who currently apply for 
licenses and CORs who do not have their fingerprints taken at an REC 
and do not have their IDs checked at an REC. These applicants must now 
incur an additional cost for travel to an REC to have their 
fingerprints taken and to have their IDs checked.
    Not all applicants will incur additional costs from this interim 
rule. The subset of the population that will not incur additional costs 
includes applicants who currently visit an REC to have their 
fingerprints taken and their

[[Page 2159]]

IDs checked. These applicants are currently complying with what this 
rule requires by visiting an REC to have their fingerprints taken and 
their IDs checked. Prior to this interim rule, some RECs asked 
applicants to visit an REC to have fingerprints taken and IDs checked 
as a part of the application process for licenses; other RECs did not. 
Some applicants also traveled to RECs to have their fingerprints taken 
because of their close proximity to an REC.
    Based on information from the Coast Guard's RECs, we estimate that 
40 percent of the applicants for original licenses and 15 percent of 
the applicants for subsequent issue licenses currently travel to an REC 
for the purposes of having their fingerprints taken and IDs checked. 
Therefore, we do not include these applicants in the cost analysis.
    There could be other applicants who do not incur additional costs, 
such as applicants who simultaneously apply for both MMDs and licenses. 
These applicants may have chosen to apply for both credentials at the 
same time to minimize cost and to synchronize the expiration dates for 
both of their credentials. Since these applicants will be applying for 
an MMD and a license at the same time, they will make one appearance at 
an REC to have their fingerprints taken and to have their IDs checked. 
These applicants would be regulated and processed under the regulations 
for MMDs published on January 6, 2004, which currently require 
applicants to have their fingerprints taken and their IDs checked at an 
REC. 69 FR 526. Therefore, these applicants do not incur additional 
costs by this rule.
    However, it is difficult to estimate what percentage of these 
applicants is simultaneously applying for credentials after the 
publication of the regulations for MMDs. We do not adjust our analysis 
for these mariners, and therefore our estimates may be conservative 
because we possibly have counted some of the applicants twice, once 
under the MMD interim rule, and once under this interim rule. Based on 
discussions with Coast Guard staff and REC officials, we believe that 
this number will be relatively small.
    Accordingly, the estimated total annual quantity of applicants who 
will incur an additional cost (referred to as the baseline population) 
by this rule is 23,294 applicants for licenses and CORs. This baseline 
population is estimated as the total affected population less the 
subset of the affected population that does not incur additional costs. 
Table 3 presents the summary of the annual baseline population that 
will incur additional costs under this interim rule.

Table 3.--Summary of Average Annual Baseline Population by Transaction Type That Will Incur Additional Costs \1\
----------------------------------------------------------------------------------------------------------------
                                                  Applicants for  Applicants for
     Current credential status of applicant          original       subsequent    Applicants for       Total
                                                     licenses     issue licenses     all CORs
----------------------------------------------------------------------------------------------------------------
Applicants who currently have an MMD............           1,223           6,207             131  ..............
Applicants who DO NOT currently have an MMD.....           4,408          11,326  ..............  ..............
                                                 -----------------
    Total Affected Population \2\...............           5,630          17,533             131         23,294
----------------------------------------------------------------------------------------------------------------
\1\ This baseline population is adjusted to reflect the percentage of current applicants who already travel to
  have their fingerprints taken at an REC. These are the totals in Table 2 less a 40 percent reduction in
  original applicants and less a 15 percent reduction in subsequent issue applicants.
\2\ Some values may not total due to rounding.

Costs
    The costs of this rule include (1) the cost of applicants' time at 
an REC, and (2) the cost of applicants' travel to and from an REC. For 
all costs, we assume an applicant's wage rate as a proxy for the 
opportunity cost of the work time or free time forgone due to a 
mariner's visit to an REC and travel to and from an REC. We also assume 
maximum government per diem reimbursement rates as proxy unit costs for 
travel expenses. Table 4 presents the basic unit cost assumptions and 
sources that we used in this analysis of the interim rule.

                  Table 4.--Summary of Basic Unit Costs
------------------------------------------------------------------------
             Item                   Unit cost         Source reference
------------------------------------------------------------------------
Opportunity Cost of Applicant   $37/hour.........  This wage rate is
 Time.                                              conservatively based
                                                    on the 90th
                                                    percentile wage
                                                    estimate (the
                                                    highest) from the
                                                    2002 National
                                                    Occupation
                                                    Employment and Wage
                                                    Statistics for
                                                    Captains, Mates, and
                                                    Pilots of Water
                                                    Vessels published by
                                                    the Bureau of Labor
                                                    Statistics. This
                                                    wage rate best
                                                    applies to licensed
                                                    officers because
                                                    they typically earn
                                                    higher wages than
                                                    other mariners.
Driving Mileage...............  $0.375/mile        2004 Privately Owned
                                 (rounded to        Vehicle (POV)
                                 $0.38/mile).       Reimbursement Rates
                                                    for Automobiles in
                                                    Amendment 2003-6 of
                                                    the Federal Travel
                                                    Regulation,
                                                    published December
                                                    15, 2003, and
                                                    effective January 1,
                                                    2004, by the General
                                                    Services
                                                    Administration
                                                    (GSA). 68 FR 69618.
Round-trip Air-Fare...........  $250/trip........  This airfare is based
                                                    on industry research
                                                    of current airfare
                                                    price levels and the
                                                    2002 price index for
                                                    airline fares in the
                                                    Statistical Abstract
                                                    of the United
                                                    States: 2003, 123rd
                                                    Edition, issued
                                                    December 2003, by
                                                    the U.S. Census
                                                    Bureau.

[[Page 2160]]

 
Round-trip Airport Transfer...  $50/transfer.....  This round-trip
                                                    airport transfer
                                                    cost is based on
                                                    research of the
                                                    average private and
                                                    public transfer
                                                    costs, including
                                                    taxi or car rental
                                                    costs associated
                                                    with U.S. airports
                                                    and regional
                                                    destinations. It is
                                                    not a mathematic or
                                                    rigorous estimate,
                                                    but an average
                                                    transfer cost based
                                                    on information
                                                    available from
                                                    associations and
                                                    trade groups,
                                                    airports, transit
                                                    authorities, and
                                                    governments.
Incidentals and Meals.........  $53/day..........  The average
                                                    incidentals and
                                                    meals reimbursement
                                                    rate for the 17
                                                    current REC
                                                    locations. The GSA
                                                    provides rates for
                                                    the continental U.S.
                                                    The Department of
                                                    Defense provides
                                                    rates for the non-
                                                    continental U.S.
                                                    These rates are part
                                                    of the Federal
                                                    Travel Regulation
                                                    and are frequently
                                                    updated.
Lodging.......................  $137/night.......  The average lodging
                                                    reimbursement rate,
                                                    including an
                                                    additional 18%
                                                    lodging tax, for the
                                                    17 current REC
                                                    locations. The GSA
                                                    provides rates for
                                                    the continental U.S.
                                                    The Department of
                                                    Defense provides
                                                    rates for the non-
                                                    continental U.S.
                                                    These rates are part
                                                    of the Federal
                                                    Travel Regulation
                                                    and frequently
                                                    updated.
------------------------------------------------------------------------

Cost of REC Time
    We estimate that an applicant will spend two hours at an REC being 
fingerprinted, having their ID checked, and possibly waiting before, 
during, or after to complete these requirements. This is the REC wait-
time estimate based on discussions with Coast Guard REC personnel 
familiar with operations and customer processing time for applicants 
who currently visit an REC for fingerprinting and ID examination. We 
expect very few applicants to take more than two hours, and many to 
take less time; however, we believe two hours to be an appropriate 
estimate of the total possible time an applicant will spend at an REC 
in order to calculate conservative but reasonable costs attributable to 
REC processing and waiting time.
    We estimate the cost of an applicant's time at the REC to be $74 (2 
hours x $37 per hour cost of time = $74). The estimated annual cost of 
REC time for the baseline applicant population is $1,723,756 ($74 per 
applicant x 23,294 total applicants = $1,723,756).
Travel Cost
    We estimate round-trip travel, travel to and from an REC, to take 
one day or require multiple day and overnight stays to complete. After 
a review of current mariner addresses from the Coast Guard's NMC, we 
estimate that approximately 60 percent of current mariners live within 
one-day round-trip travel to an REC, 30 percent live within overnight 
round-trip travel (one night and two days) to an REC, and 10 percent 
live at a distance greater than overnight round-trip travel (greater 
than one night and two days) to an REC. These are national percentages 
for all mariners who currently have addresses on file with the NMC.
    We assume these national percentages will most likely approximate 
the travel distances to an REC for current license and COR applicants. 
Therefore, we are applying the demographic characteristics (home of 
record trends) of the current population of all mariners, upon the 
future pool of applicants for licenses and CORs. Table 5 presents a 
summary of the baseline applicant population that will incur additional 
cost by travel distance to their closest REC using these national 
population percentages.

                       Table 5.--Summary of the Affected Applicants by REC Travel Distance
----------------------------------------------------------------------------------------------------------------
                                                                                    Percent of
                                                                                      current        Number of
                                                                    Round-trip        mariner        possible
                 Distance to closest REC (miles)                    distance to     population    license or COR
                                                                    closest REC       within        applicants
                                                                      (miles)        distance         within
                                                                                     (percent)     distance \1\
----------------------------------------------------------------------------------------------------------------
50..............................................................             100              60          13,976
100.............................................................             200              30           6,988
>=200...........................................................           >=400              10           2,329
                                                                 -----------------
    Total.......................................................  ..............             100         23,294
----------------------------------------------------------------------------------------------------------------
\1\ Some values may not total due to rounding.

    We estimate that most mariners live within a close proximity to an 
REC--approximately 90 percent live within same-day or one-night round-
trip travel from an REC. However, there are mariners who live far from 
their closest REC, which we consider to be greater than overnight 
round-trip travel or more than 400 miles round trip. For example, this 
would include mariners in parts of the Great Lakes Basin and Alaska, 
where a large area is served by only one or a few RECs.
    We assume for the purpose of estimating costs that most applicants 
who live within short distances to an REC will drive round trip--this 
will ensure similar application of cost methodology across variable 
distances. While there will be some applicants who take public 
transportation or use another mode of travel, we believe, on average, 
most applicants will drive themselves to an REC, with the exception of 
those applicants who live far from their nearest REC, which we consider 
to be greater than overnight round-trip travel.
    We assume that most applicants who live far from an REC will fly 
round

[[Page 2161]]

trip--this will ensure similar application of cost methodology for 
those who will travel far distances. While there will be some 
applicants who take another mode of travel or a combination of travel 
modes, we believe, on average, most applicants will choose to travel by 
plane if they live far away.
    We assume the applicants will drive or fly during the day to 
complete their round-trip travel to and from an REC. We also assume 
that one-day of travel is approximately eight hours of travel. Table 6 
presents a summary of travel distances and time:

                             Table 6.--Summary of the Travel Distances and Time \1\
----------------------------------------------------------------------------------------------------------------
                                                                                  Maximum number
  Round-trip travel distance from closest REC                                     of travel days  Maximum number
                    (miles)                            Duration of travel           to complete     of hours to
                                                                                     distance        complete
----------------------------------------------------------------------------------------------------------------
100...........................................  One-day Driving.................               1               8
200...........................................  Overnight Driving...............               2              16
>=400.........................................  Overnight Air...................               2             16
----------------------------------------------------------------------------------------------------------------
\1\ The travel time is assumed to be the maximum number of days that would be necessary to complete the round-
  trip travel converted into hours.

    While some applicants will drive longer distances in a single day, 
we assume the maximum number of days and hours to complete each round-
trip driving distance will provide an appropriate estimate of time to 
calculate the maximum costs attributable to applicant travel time.
    The following is an estimate of applicant travel costs using the 
above populations, unit costs, distances, and times:
One-day Travel by Automobile
    For an applicant within one-day round-trip travel to and from an 
REC, we assume the cost to include the mileage, the opportunity cost of 
the time spent traveling, and incidentals. We assume the cost for one-
day round-trip incidentals to be $53 and the mileage reimbursement to 
be $0.38 per mile.
    The estimated cost per applicant for one-day round-trip travel is 
$387 ((100 round-trip miles x $0.38 per mile reimbursement rate) + (8 
travel hours x $37 per hour cost of time) + $53 per day incidentals = 
$387). The estimated annual cost for one-day round-trip travel for the 
affected applicants is $5,408,712 ($387 per applicant x 13,976 one-day 
travel applicants = $5,408,712).
Overnight Travel by Automobile
    For an applicant having to travel overnight, we assume the cost to 
include mileage, the opportunity cost of time spent traveling, lodging, 
and incidentals. We also assume the cost for lodging and incidentals 
for overnight round-trip travel to be $243 ((2 days x $53 per day 
incidentals) + $137 per night lodging = $243).
    The estimated cost per applicant for overnight round-trip travel is 
$911 ((200 round-trip miles x $0.38 per mile reimbursement rate) + (16 
travel hours x $37 per hour cost of time) + $243 lodging and 
incidentals = $911). The estimated annual cost of overnight round-trip 
travel for the affected applicants is $6,366,068 ($911 per applicant x 
6,988 applicants = $6,366,068).
Greater Than Overnight Travel (Travel by Air)
    We assume that applicants who live at distances greater than 200 
miles must travel for more than one night and will incur the maximum 
cost of this interim rule. There exists no precise data to predict or 
forecast with confidence the actual or future quantity of these 
applicants living at far distances from an REC, and the combinations of 
days and nights they will need to travel round-trip to an REC. We 
expect these relatively few applicants will most likely choose another 
mode or combination of modes of transportation to travel round-trip 
between their home of record and the closest REC. We assume the cost of 
this travel will consist of the airfare, airport transfers to-and-from 
home and an REC, the opportunity cost of time spent traveling, and the 
round-trip travel costs associated with overnight incidentals and 
lodging.
    We estimated the cost per applicant for lodging and incidentals for 
overnight air travel to be $243 ((2 days x $53 per day incidentals) + 
$137 per night lodging = $243). The estimated cost per applicant for 
overnight air travel is $1,185 ($250 airfare + (2 round-trip airport 
transfers x $50 per transfer) + (16 travel hours x $37 per hour cost of 
time) + $243 lodging and incidentals = $1,185). The estimated annual 
cost of overnight air travel for affected applicants is $2,759,865 
($1,185 per applicant x 2,329 applicants = $2,759,865).
    We assume these estimates will approximate the maximum costs 
associated with travel by air. Most likely the total travel time will 
be less and involve fewer lodging and incidentals expenses, and will 
not be as costly in terms of the applicant's time.
Total National Cost
    The annual cost of this rule to the affected applicants, consisting 
of the cost of travel and time for these applicants, is estimated to be 
$16 million (non-discounted). The estimated five-year (2005-2009), 
discounted present value of the total cost of this rule to the 
applicants is $71 million based on a 7% discount rate and $77 million 
based on a 3% discount rate. As stated above, all currently licensed 
mariners must renew their licenses and CORs every five years. 
Therefore, a five-year period of analysis covers a complete renewal 
cycle and provides an accurate snapshot of the total cost of the 
interim rule for affected applicants. Table 7 summarizes the total 
annual cost of the rule to applicants.

[[Page 2162]]



                          Table 7.--Summary of Affected Applicants and Annual Cost \1\
----------------------------------------------------------------------------------------------------------------
                                                                                    Annual cost
                                                     Number of     Annual costs       for all       Percent of
                 Cost component                      affected      per affected      affected      total annual
                                                    applicants       applicant    applicants \2\  cost (percent)
----------------------------------------------------------------------------------------------------------------
REC Time Cost...................................          23,294             $74      $1,723,756              11
One-day Round-trip Travel Cost..................          13,976             387       5,408,712              33
Overnight Round-trip Travel Cost................           6,988             911       6,366,068              39
Greater Than Overnight Round-Trip Travel Cost...           2,329           1,185       2,759,865              17
                                                 -----------------
    Total Annual Cost of the Interim Rule.......  ..............  ..............      16,258,401            100
----------------------------------------------------------------------------------------------------------------
\1\ All annual costs include the cost of the applicants' time spent traveling and time spent at an REC.
\2\ Some values may not total due to rounding.

    The primary cost to these applicants of this interim rule is the 
travel cost (90 percent of the total cost), which is driven by the 
mariners' opportunity cost of time, cost of lodging, and other per diem 
factors. About one-half of the cost of this rule to the affected 
applicants, as a percentage of total annual cost, is overnight and 
greater than overnight round-trip travel, which are 39 percent and 17 
percent, respectively. However, these two travel cost components only 
apply to 40 percent of the applicants, with greater than overnight 
round-trip travel only applying to 10 percent.
    These costs will impact mariners and prospective mariners who are 
interested in applying for licenses or CORs. The cost impacts will be 
high for any mariner who will have to travel to an REC, because of the 
limited number of RECs available: 17 RECs nationwide, including two in 
Alaska and one in Hawaii.
    In Table 7, the cost per applicant for time spent at an REC is 
relatively low at $74 per applicant. However, if there is any travel 
involved that will force an applicant to forgo a minimal amount of 
work, such as one-day round-trip travel, then the total cost per 
applicant increases 6 times to $461, which includes the additional one-
day round-trip travel cost of $387 per mariner ($74 REC time + $387 
one-day round-trip travel = $461 for a mariner who must travel one-day 
and visit an REC).
    However, we believe the total cost estimate of this interim rule to 
the affected applicants is a conservative estimate, because the REC 
locations, together, can serve approximately 90 percent of applicants 
within a 100-mile radius. We also used conservative driving distances, 
for example, one-day travel is 100 miles round-trip and overnight 
travel is 200 miles round-trip. The RECs are also located in or near 
major maritime ports that may allow mariners and prospective mariners 
to access the REC before, during, or after the applicants' marine-
related business operations.
    The cost of the applicants' time, however, will be a net loss to 
the applicants. The applicants will forgo work-time or free-time in 
order to comply with this rule, and may have to compensate by using 
vacation leave. However, we do not expect there to be a loss in 
business or productivity in the maritime sector, because the work 
schedules of these mariners often involve several days off their 
vessels per voyage, which they could use to visit an REC. Owners and 
operators of vessels also have several mariners they can use in the 
event another mariner is not available.
Benefits
    We anticipate several qualitative benefits from the new 
fingerprinting and ID requirements established by this interim rule. 
All applicants for licenses and CORs will now have their fingerprints 
taken by Coast Guard personnel at an REC and must have their ID checked 
by Coast Guard personnel at an REC. In the past, applicants could have 
had their fingerprints taken and their identity c