Vessel Documentation; Recording of Instruments, 42310-42313 [E7-14938]

Agencies

• Coast Guard
• DEPARTMENT OF HOMELAND SECURITY

[Federal Register Volume 72, Number 148 (Thursday, August 2, 2007)]
[Rules and Regulations]
[Pages 42310-42313]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14938]



[[Page 42310]]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 67

[USCG-2007-28098]
RIN 1625-AB18


Vessel Documentation; Recording of Instruments

AGENCY: Coast Guard, DHS.

ACTION: Direct final rule; request for comments.

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SUMMARY: By this direct final rule, the Coast Guard is amending the 
vessel documentation regulations to eliminate the requirement to 
provide certain original documents to the National Vessel Documentation 
Center (NVDC) for recording, and to eliminate the additional fee for 
filing by facsimile. We are undertaking this rulemaking to conform our 
business practices with similar functions provided by other 
governmental entities and to allow our customers to avail themselves of 
better service through electronic filing. This rulemaking is expected 
to improve efficiency at the NVDC and permit the use of improved 
information collection technology.

DATES: This rule is effective October 31, 2007, unless an adverse 
comment, or notice of intent to submit an adverse comment, reaches the 
Docket Management Facility on or before October 1, 2007. If an adverse 
comment, or notice of intent to submit an adverse comment, is received, 
we will withdraw this direct final rule and publish a timely notice of 
withdrawal in the Federal Register.

ADDRESSES: You may submit comments identified by Coast Guard docket 
number USCG-2007-28098 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 (M-30), U.S. Department of 
Transportation, West Building, Ground Floor, Room W12-140, 1200 New 
Jersey Avenue, SE., Washington, DC 20590.
    (3) Fax: 202-493-2251.
    (4) Delivery: Room W12-140 on the Ground Floor of the West 
Building, 1200 New Jersey Avenue, SE., Washington, DC 20590, 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.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call Mr. Thomas L. Willis, Director, National Vessel Documentation 
Center, U.S. Coast Guard, telephone 304-271-2506. If you have questions 
on viewing or submitting material to the docket, call Renee V. Wright, 
Program Manager, Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:
    Submitting comments: If you submit a comment, please include your 
name and address, identify the docket number for this rulemaking (USCG-
2007-28098), 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. We may change this rule in 
view of them.
    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, click on ``Simple Search,'' enter 
the last five digits of the docket number for this rulemaking, and 
click on ``Search.'' You may also visit the Docket Management Facility 
in Room W12-140 on the ground floor of the DOT West Building, 1200 New 
Jersey Avenue, SE., Washington, DC 20590, 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.). You may review the 
Department of Transportation's Privacy Act Statement in the Federal 
Register published on April 11, 2000 (65 FR 19477), or you may visit 
https://dms.dot.gov.

Regulatory Information

    We are publishing a direct final rule under 33 CFR 1.05-55 because 
we do not expect an adverse comment. If no adverse comment or notice of 
intent to submit an adverse comment is received by October 1, 2007, 
this rule will become effective as stated in the DATES section. In that 
case, approximately 30 days before the effective date, we will publish 
a document in the Federal Register stating that no adverse comment was 
received and confirming that this rule will become effective as 
scheduled. However, if we receive an adverse comment or notice of 
intent to submit an adverse comment, we will publish a document in the 
Federal Register announcing the withdrawal of all or part of this 
direct final rule. If an adverse comment applies only to part of this 
rule (e.g., to an amendment, a paragraph, or a section) and it is 
possible to remove that part without defeating the purpose of this 
rule, we may adopt, as final, those parts of this rule on which no 
adverse comment was received. We will withdraw the part of this rule 
that was the subject of an adverse comment. If we decide to proceed 
with a rulemaking following receipt of an adverse comment, we will 
publish a separate notice of proposed rulemaking (NPRM) and provide a 
new opportunity for comment.
    A comment is considered ``adverse'' if the comment explains why 
this rule or a part of this rule would be inappropriate, including a 
challenge to its underlying premise or approach, or would be 
ineffective or unacceptable without a change.

Background and Purpose

    We are undertaking this rulemaking to conform our business 
practices with similar functions provided by other governmental 
entities and to allow our customers to avail themselves of better 
service through electronic filing. It will also permit implementation 
of the Electronic Signature Act in maritime financial transactions. In 
addition, we are eliminating the need for multiple copies of 
instruments to conform to changing business practices within the Coast 
Guard.
    The Coast Guard records bills of sale, mortgages, and related 
instruments in accordance with the provisions of Chapter 313 of Title 
46 of the U.S. Code. This is similar to service provided by county 
registries of deeds for real estate. However, unlike county registries, 
the Coast Guard requires the submission of an originally signed 
instrument accompanied by one or more copies. In addition, it has kept 
originally signed instruments and returned the copy or copies after 
annotating them with information about the recording.
    In 1982, the Coast Guard promulgated a rule which required original 
instruments to be provided (47 FR

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27490, June 24, 1982). The Coast Guard reaffirmed that rule in 1993, 
following codification of the Ship Mortgage Act (58 FR 60256, November 
15, 1993). The Coast Guard's practice and regulation was further 
buttressed in 1996 when Congress enacted section 305 of Public Law 104-
324 providing clear authority to accept instruments by electronic 
means, but requiring submission of the originals within ten days of the 
electronic filing. However, after enactment of the Electronic 
Signatures in Global and National Commerce Act, Public Law 106-229, 
Congress in 2002 amended section 31321((a)(4) of Title 46, U.S. Code, 
by repealing the requirement to present original instruments within ten 
days following electronic filing (Pub. L. 107-295, section 420). (See 
also, 15 U.S.C. 7031 encouraging the use of electronic signatures and 
the elimination of paper-based obstacles to electronic transactions.)
    In 2006, the Coast Guard began scanning all instruments into an 
electronic data base from which copies may be printed. Providing a copy 
from the data base rather than annotating a copy provided by the 
submitter is a better business practice for two primary reasons. First, 
it is no longer necessary to track copies of paperwork through the 
office. More importantly, however, it ensures that the copy returned to 
the submitter is a true copy of what appears in the electronic data 
base and not something that merely appears to be a true copy.

Discussion of Rule

    Section 67.209 is amended to eliminate the need to submit 
originally signed instruments plus a copy. Section 67.219 is amended to 
eliminate the need to submit original instruments after filing by 
facsimile. Section 67.218 is a new section providing procedures for 
filing by submitting the instrument in Portable Document Filing, 
commonly referred to as ``pdf''. The fee for filing by facsimile is 
deleted. Instruments may be submitted to the National Vessel 
Documentation Center for filing by e-mailing them as .pdf attachments 
to NVDC.pdf.filing@uscg.mil.

Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section 
3(f) of Executive Order 12866 and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that Order. The 
Office of Management and Budget has not reviewed it under that Order. 
We expect the economic impact of this rule to be so minimal that a full 
Regulatory Evaluation is unnecessary.
    There are no new costs or requirements associated with this rule. 
Although persons filing instruments need send only a single copy, the 
savings are insignificant.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this rule would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000.
    This rule will affect the following small entities: Small 
businesses, individuals, nonprofit organizations, and municipal 
governments currently owning documented vessels or seeking to document 
vessels in the future; brokers, attorneys, and law offices providing 
vessel documentation services; small shipbuilders building vessels 
which are subsequently documented; boat dealers selling vessels of at 
least five (5) net tons in size; and lending institutions engaging in 
preferred mortgage financing.
    The changes in this rulemaking are procedural and administrative in 
nature. The changes are technical amendments which the affected small 
entities should have little difficulty understanding or adopting into 
their business practices. Moreover, there are no new reporting, 
recordkeeping or other requirements for compliance.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this rule will not have a significant economic impact on a substantial 
number of small entities. If, however, you think that your business 
qualifies as a small entity and that this proposal will have a 
significant impact on your business, please submit a comment [see 
``ADDRESSES''] explaining why you think your business qualifies and in 
what way and to what degree this rulemaking will economically affect 
your business. Comments submitted in response to this finding will be 
evaluated under the criteria in the ``Regulatory Information'' section 
of this preamble.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small 
entities in understanding this rule so that they can better evaluate 
its effects on them and participate in the rulemaking. If the rule will 
affect your small business, organization, or governmental jurisdiction 
and you have questions concerning its provisions or options for 
compliance, please consult Mr. Thomas L. Willis, Director of the 
National Vessel Documentation Center, 792 TJ Jackson Drive, Falling 
Waters, WV 25419, telephone 304 271-2400. 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.

Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Additionally, 
the Coast Guard estimates this rule will result in no change to the 
information collection burden associated with the existing collection 
of information entitled, ``Vessel Documentation,'' Office of Management 
and Budget Control Number 1625-0027, which expires on January 31, 2010.

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if the rule 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. We have analyzed this 
rule under that Order and have determined that it does not have 
implications for federalism.

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 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.

Taking of Private Property

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

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.

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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.

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.

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. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Technical Standards

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

Environment

    We have analyzed this rule under Commandant Instruction M16475.lD, 
which guides the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have 
concluded that there are no factors in this case that would limit the 
use of a categorical exclusion under section 2.B.2 of the Instruction. 
Therefore, this rule is categorically excluded, under figure 2-1, 
paragraph (34)(d), of the Instruction from further environmental 
documentation. These regulations concern the documentation of vessels. 
Under figure 2-1, paragraph (34)(d), of the Instruction, an 
``Environmental Analysis Check List'' and a ``Categorical Exclusion 
Determination'' are not required for this rule.

List of Subjects in 46 CFR Part 67

    Reporting and recordkeeping requirements, Vessels.


0
For the reasons discussed in the preamble, the Coast Guard amends 46 
CFR part 67 as follows:

Title 46--Shipping

PART 67--DOCUMENTATION OF VESSELS

0
1. The authority citation for part 67 continues to read as follows:

    Authority: 14 U.S.C. 1664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 
U.S.C. 2103, 2107, 2110, 12106, 12120, 12122; 46 U.S.C. app. 841a, 
876; Department of Homeland Delegation No. 0170.1.


0
2. Revise Sec.  67.209 to read as follows:


Sec.  67.209  No original instrument requirement.

    A copy of the original signed and acknowledged instrument must be 
presented. The original instrument itself may be presented but is not 
required. The copy may be delivered to the National Vessel 
Documentation Center or transmitted by facsimile or in portable 
document format (.pdf) in accordance with the procedures in Sec. Sec.  
67.218 and 67.219 of this part. Signatures may be affixed manually or 
digitally.

0
3. Add new Sec.  67.218 to subpart O to read as follows:


Sec.  67.218  Optional filing of instruments in portable document 
format as attachments to electronic mail.

    (a) Any instrument identified as eligible for filing and recording 
under Sec.  67.200 may be submitted in portable document format (.pdf) 
as an attachment to electronic mail (e-mail) for filing at the National 
Vessel Documentation Center. The e-mail address to be used for 
instrument filing may be obtained from the National Vessel 
Documentation Center Web site. If the instrument submitted for filing 
in .pdf format pertains to a vessel that is not a currently documented 
vessel, a completed Application for Initial Issue, Exchange, or 
Replacement Certificate of Documentation, or Return to Documentation 
(form CG-1258) or a letter application for deletion from documentation 
must already be on file with the National Vessel Documentation Center 
or must be submitted in .pdf format with the instrument being submitted 
in .pdf format for filing.
    (b) All instruments submitted for filing in .pdf format must be 
clearly legible, be submitted from 8\1/2\ inch by 11 inch paper in not 
less than 10-point type size, and submitted as an attachment to e-mail.
    (c) The e-mail required by paragraph (b) should indicate:
    (1) The name, address, telephone number, and e-mail address of the 
person submitting the instrument for filing in .pdf format;
    (2) The number of pages submitted for filing in .pdf format; and
    (3) The name of the vessel, official number or hull identification 
number of the vessel(s), and the name(s) of the owner(s) of the 
vessel(s) to which the instrument relates.
    (d) The filing of any instrument submitted for filing in .pdf 
format is terminated and the instrument will be returned to the 
submitter if the instrument is subject to termination for any cause 
under Sec.  67.217(a).

0
4. Revise Sec.  67.219 to read as follows:


Sec.  67.219  Optional filing of instruments by facsimile.

    (a) Any instrument identified as eligible for filing and recording 
under Sec.  67.200 may be submitted for filing to the National Vessel 
Documentation Center by facsimile at (304) 271-2405. If the instrument 
submitted by facsimile for filing pertains to a vessel that is not a 
currently documented vessel, a completed Application for Initial Issue, 
Exchange, or Replacement Certificate of Documentation, or Return to 
Documentation (form CG-1258) or a letter application for deletion from 
documentation must already be on file with the National Vessel 
Documentation Center or must be submitted by facsimile with the 
instrument being submitted by facsimile for filing.
    (b) All instruments submitted by facsimile for filing must be 
clearly legible, be submitted from 81/2 inch by 11 inch paper in not 
less than 10-point type size, and accompanied by a cover sheet.
    (c) The cover sheet required by paragraph (b) should indicate:

[[Page 42313]]

    (1) The name, address, telephone number, and facsimile telephone 
number of the person submitting the instrument by facsimile;
    (2) The number of pages submitted by facsimile; and
    (3) The name of the vessel, official number or hull identification 
number of the vessel(s), and the name(s) of the owner(s) of the 
vessel(s) to which the instrument relates.
    (d) The filing of any instrument submitted by facsimile is 
terminated and the instrument will be returned to the submitter if the 
instrument is subject to termination for any cause under Sec.  
67.217(a).


Sec.  67.540  [Removed]

0
5. Remove Sec.  67.540.


Sec.  67.550  [Amended]

0
6. Amend Sec.  67.550 by removing from Table 67.550-Fees, the entry 
reading: ``Facsimile submission handling Subpart O 2.00 1.''

    Dated: July 26, 2007.
J.G. Lantz,
Acting Assistant Commandant For Prevention, U.S. Coast Guard.
 [FR Doc. E7-14938 Filed 8-1-07; 8:45 am]
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