Changes to Standard Numbering System, Vessel Identification System, and Boating Accident Report Database, 18689-18704 [2012-7127]

Download as PDF Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 33 CFR Parts 173, 174, 181, and 187 Jeffrey.A.Ludwig@uscg.mil. If you have questions on viewing the docket, call Renee V. Wright, Program Manager, Docket Operations, telephone 202–366– 9826. SUPPLEMENTARY INFORMATION: [Docket No. USCG–2003–14963] Table of Contents for Preamble RIN 1625–AB45 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 DEPARTMENT OF HOMELAND SECURITY Coast Guard Changes to Standard Numbering System, Vessel Identification System, and Boating Accident Report Database Coast Guard, DHS. Final rule. AGENCY: ACTION: 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 https://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 pmangrum on DSK3VPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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; PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 18689 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 Guardapproved numbering systems. 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 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. E:\FR\FM\28MRR1.SGM 28MRR1 pmangrum on DSK3VPTVN1PROD with RULES 18690 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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 SNSnumbered 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 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 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 E:\FR\FM\28MRR1.SGM 28MRR1 pmangrum on DSK3VPTVN1PROD with RULES Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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 VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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 PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 18691 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 E:\FR\FM\28MRR1.SGM 28MRR1 18692 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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 Basic issues NPRM proposal Changes from the NPRM for the final rule Purpose; preemptive effect, § 173.1 ...... n/a ......................... Not included in the NPRM ................... Definitions, § 173.3 ................................. Terminology .......... Add or revise definitions to align with substantive changes. Vessel number required, § 173.15 ......... Terminology .......... Terminology .......... Certificate of number required, § 173.21 Terminology .......... Inspection of certificate, § 173.23 ........... Terminology .......... Location of certificate of number, § 173.25. Removal of number, § 173.33 ................ Terminology .......... Terminology .......... Coast Guard validation sticker, § 173.35 Terminology .......... Applicability, § 173.51 ............................. Terminology .......... Contents of report, § 173.57 ................... Terminology .......... Substitute ‘‘State of principal operation’’ for ‘‘State in which the vessel is principally used’’ to align with statutory language. Substitute ‘‘operate’’ for ‘‘use’’ to align with statutory language. Substitute ‘‘operate’’ and ‘‘operated’’ for ‘‘use’’ and ‘‘used’’ to align with statutory language. Substitute ‘‘operating’’ for ‘‘using’’ to align with statutory language. Substitute ‘‘operate’’ for ‘‘use’’ to align with statutory language. Substitute ‘‘operated’’ for ‘‘used’’ to align with statutory language. Substitute ‘‘operate’’ for ‘‘use’’ to align with statutory language. Substitute ‘‘operated’’ for ‘‘used’’ to align with statutory language. Revise casualty and accident report contents to align terminology with statutory language, modernize terminology, and require additional information about property owners and the use of fire extinguishers; implementation deferred until January 1, 2017. Add language describing 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. Add the Title 1 U.S. Code definition of ‘‘vessel’’ 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. No change. Other numbers prohibited, § 173.19 ....... Where to report, § 173.59 ...................... pmangrum on DSK3VPTVN1PROD with RULES 33 CFR section affected n/a ......................... Application for and issuance of certificate of number, § 173.71. Terminology .......... Duplicate certificate of number, § 173.73 n/a ......................... VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 PO 00000 Frm 00022 Require casualty and accident report to be filed with the State where the incident occurred (eliminate current option of filing in the State where the vessel is principally operated or registered). Authorize issuance of original or duplicate certificates for clarity and modernize terminology. Remove section and transfer substance to § 173.71. Fmt 4700 Sfmt 4700 E:\FR\FM\28MRR1.SGM No change. No change. No change. No change. No change. No change. No change. Eliminate requirements for describing the vessel’s operation and activity at the time of a casualty or accident and whether the vessel was or was not involved in a permitted event and the nature of the casualty or accident (paragraphs (c)(22), (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. Withdraw proposed amendment because it is not related to a basic issue. No change. No change. 28MRR1 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 18693 TABLE 1—CHANGES MADE BY THIS RULE—Continued Basic issues NPRM proposal Validity of certificate of number, § 173.77. Issuing authorities and reporting authorities 33 CFR part 173, Appendix A. Applicability; preemptive effect, § 174.1 Terminology .......... Definitions, § 174.3 ................................. Terminology .......... Substitute ‘‘operated’’ for ‘‘used’’ to align with statutory language. Substitute ‘‘operation’’ for ‘‘use’’ to align with statutory language. Add preemption language to align with discussion of Federalism. Add or revise definitions to align with substantive changes. Verification of HIN, § 174.16 .................. HINs ...................... Require States to verify a vessel’s compliance with HIN requirements or affix valid HIN; 3-year deferral of implementation. Contents of application for certificate of number, § 174.17. Terminology PII ..... Require unique personal identifier, align and modernize terminology; 3year deferral of implementation. Contents of a certificate of number, § 174.19. Terminology HINs To facilitate data verification for law enforcement and maritime security purposes, delete current option for owners of vessels with HINs to omit certain information; align and modernize terminology; 3-year deferral of implementation. Temporary certificates, § 174.21 ............ Terminology HINs Clarify, add HIN as required information, substitute ‘‘operated’’ for ‘‘used’’ to align with statutory language; 3year deferral of implementation. Forwarding of casualty or accident reports, § 174.121. pmangrum on DSK3VPTVN1PROD with RULES 33 CFR section affected Terminology .......... Coast Guard address, § 174.125 ........... Purpose and applicability; preemptive effect, § 181.1. Definitions, § 181.3 ................................. Terminology .......... n/a ......................... Update address information and add electronic submission option to allow for choices in reporting method and align with Federal e-Government initiatives. Update address information ................. Add preemption language to align with discussion of Federalism. Add or revise definitions to align with substantive changes. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 Terminology .......... n/a ......................... Terminology .......... PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 E:\FR\FM\28MRR1.SGM Changes from the NPRM for the final rule No change. No change. No change. For better clarity, add the Title 1 U.S. Code 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.’’ Require States to verify that a vessel has a valid primary HIN, but State personnel will not be required to affix valid HINs themselves. Defer implementation for more than 4 full years, to Jan. 1, 2017, rather than the three years proposed in the NPRM. Make minor clarifying changes in several terms per commenter suggestions. 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. Make minor clarifying changes in several terms per commenter suggestions. 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. Clarify that, as in existing 33 CFR 174.17 and 174.19, vessel length means overall length. Defer implementation for more than 4 full years, to Jan. 1, 2017, rather than the three years proposed in the NPRM No change. No change. No change. Change the word order, without altering the sense of, the definition of ‘‘manufacturer,’’ per commenter suggestion. 28MRR1 18694 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations TABLE 1—CHANGES MADE BY THIS RULE—Continued 33 CFR section affected Hull identification § 181.23. numbers required, Terminology HINs Flexibility. Manufacturer identification code assignment, § 181.31. How is a State’s participation in VIS documented? § 187.11. What information must be collected to identify a vessel owner? § 187.101. n/a ......................... What information must be collected to identify a vessel? § 187.103. Terminology .......... Flexibility ............... Terminology .......... pmangrum on DSK3VPTVN1PROD with RULES 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 VerDate Mar<15>2010 14:15 Mar 27, 2012 NPRM proposal Changes from the NPRM for the final rule Add new (b)(revise and relocate current language from § 181.31(c)), and substitute ‘‘agency designated by the issuing authority’’ for references to the State boating law administrator to provide States with additional administrative flexibility. Remove (c) (relocated to § 181.23) ..... Remove requirement for State personnel to affix valid HINs and make minor wording change. Basic issues Jkt 226001 Revise section for additional State administrative flexibility. N/A ....................................................... Add ‘‘of vessel’’ in (h), and revise (i)– (n) for clarity and modern terminology. No change. Make minor style changes. Make minor clarifying changes in several terms per commenter suggestions. Make minor clarifying changes in several terms per commenter suggestions. 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: 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 TABLE 2—COMPARISON OF REGUinformation to assist law enforcement LATORY IMPACTS, NPRM AND FINAL officials in the investigation of stolen RULE, 7 PERCENT DISCOUNT RATE vessels or other legal investigation, such as fraud. That information includes the Final personally identifiable information that Category NPRM rule 46 U.S.C. 12501(a)(2) and (b) require. The Coast Guard is amending its rules Annualized .................... $5.4 $3.1 Ten-year ....................... 38.0 21.4 to promote uniformity between the SNS, VIS, and BARD. The changes from this rule will A combined ‘‘Final Regulatory enhance the capabilities of Federal, Analysis and Final Regulatory State, and local boating safety and law Flexibility Analysis’’ is available in the enforcement officials. These changes docket where indicated under the will result in additional costs and ‘‘Public Participation and Request for benefits. In general, this rule will— Comments’’ section of this preamble. A • Require States to verify that a valid summary of the analysis follows: Coast Guard regulations in 33 CFR primary vessel HIN has been affixed to parts 173 and 174 implement two each vessel for which a certificate of statutory mandates relating to number is being issued, renewed, or undocumented vessels equipped with upon the transfer of a vessel’s propulsion machinery of any kind. First, ownership; PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 E:\FR\FM\28MRR1.SGM 28MRR1 18695 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations • 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 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 Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 7 Percent discount rate NPRM Undiscounted 7 Percent discount rate Undiscounted ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. ................................................................................................................. $0.0 0.0 0.0 0.0 8.4 4.8 3.5 1.7 1.6 1.5 $0.0 0.0 0.0 0.0 11.7 7.2 5.7 2.9 2.9 2.9 $0.0 0.0 13.5 7.8 5.6 2.5 2.4 2.2 2.1 1.9 $0.0 0.0 16.5 10.2 7.9 3.8 3.8 3.8 3.8 3.8 Total * ........................................................................................................ Annualized ....................................................................................................... 21.4 3.1 33.3 3.3 38.0 5.4 53.6 5.4 pmangrum on DSK3VPTVN1PROD with RULES * 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. The ‘‘Final Regulatory Analysis and Final Regulatory Flexibility Analysis’’ available in the docket provides additional detail on the costs and benefits of this rulemaking. 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. 3 See the Collection of Information OMB 1625– 0108 supporting documentation for further information. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\28MRR1.SGM 28MRR1 18696 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations pmangrum on DSK3VPTVN1PROD with RULES 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, Statenumbered 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 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 4 These are individuals that do not use vessels for commercial purposes. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 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. E:\FR\FM\28MRR1.SGM 28MRR1 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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. pmangrum on DSK3VPTVN1PROD with RULES 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 VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 18697 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 E:\FR\FM\28MRR1.SGM 28MRR1 pmangrum on DSK3VPTVN1PROD with RULES 18698 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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 VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 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, PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 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 E:\FR\FM\28MRR1.SGM 28MRR1 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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 1. The authority citation for part 173 is revised to read as follows: ■ Authority: 31 U.S.C. 9701; 46 U.S.C. 2110, 6101, 12301, 12302; OMB Circular A–25; Department of Homeland Security Delegation No. 0170.1. ■ 2. Revise § 173.1 to read as follows: pmangrum on DSK3VPTVN1PROD with RULES § 173.1 Purpose; preemptive effect. This part prescribes requirements for numbering vessels and for reporting casualties and accidents to implement sections 6101, 6102, 12301, and 12302 of Title 46, United States Code. The regulations in subparts A, B, and D of this part have preemptive effect over conflicting State or local regulation. The regulations in subpart C of this part have preemptive effect over State or local regulation within the same field, except to the extent that Congress requires the Coast Guard to allow State casualty reporting systems pursuant to 46 U.S.C. chapter 131. ■ 3. Revise § 173.3 to read as follows: § 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. VerDate Mar<15>2010 16:30 Mar 27, 2012 Jkt 226001 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 § 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. PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 18699 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. § 173.15 [Amended] 4. In § 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’’. ■ § 173.19 [Amended] 5. In § 173.19, remove the word ‘‘use’’ and add, in its place, the word ‘‘operate’’. ■ § 173.21 [Amended] 6. Amend § 173.21 as follows: a. In paragraph (a) introductory text, remove the word ‘‘use’’ and add, in its place, the word ‘‘operate’’; and ■ ■ E:\FR\FM\28MRR1.SGM 28MRR1 18700 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations b. In paragraph (a)(1), remove the word ‘‘used’’ and add, in its place, the word ‘‘operated’’. ■ § 173.23 [Amended] 7. In § 173.23, remove the word ‘‘using’’ and add, in its place, the word ‘‘operating’’. ■ § 173.25 [Amended] 8. In § 173.25, remove the word ‘‘use’’ and add, in its place, the word ‘‘operate’’. ■ § 173.33 [Amended] 9. In § 173.33(c), remove the word ‘‘used’’ and add, in its place, the word ‘‘operated’’. ■ § 173.35 [Amended] 10. In § 173.35, remove the word ‘‘use’’ and add, in its place, the word ‘‘operate’’. ■ § 173.51 [Amended] 11. In § 173.51(a) introductory text and (a)(1), remove the word ‘‘used’’ and add, in its place, the word ‘‘operated’’. ■ 12. Revise § 173.57 to read as follows: ■ pmangrum on DSK3VPTVN1PROD with RULES § 173.57 Contents of report. (a) Each report required by § 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; VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 (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; PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 (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. ■ 13. Revise § 173.71 to read as follows: E:\FR\FM\28MRR1.SGM 28MRR1 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations § 173.71 Application for and issuance of certificate of number. (a) The owner of a vessel to which § 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. § 173.73 ■ [Removed and Reserved] 14. Remove and reserve § 173.73. § 173.77 [Amended] 15. In § 173.77(d), remove the word ‘‘used’’ and add, in its place, the word ‘‘operated’’. ■ Appendix A [Amended] 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 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). ■ 18. Revise § 174.1 to read as follows: pmangrum on DSK3VPTVN1PROD with RULES § 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. ■ 19. Revise § 174.3 to read as follows: VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 § 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 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 18701 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. ■ 20. Add new § 174.16 to read as follows: § 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 E:\FR\FM\28MRR1.SGM 28MRR1 18702 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 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. ■ 21. Revise § 174.17 to read as follows: pmangrum on DSK3VPTVN1PROD with RULES § 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’’. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 (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. ■ 22. Revise § 174.19 to read as follows: § 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’’. PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 (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. ■ 23. Revise § 174.21 to read as follows: § 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. ■ 24. Revise § 174.121 to read as follows: E:\FR\FM\28MRR1.SGM 28MRR1 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations 18703 § 174.121 Forwarding of casualty or accident reports. § 181.23 Hull identification numbers required. § 187.11 What are the procedures to participate in VIS? 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. (a) A manufacturer must identify each boat produced or imported with primary and secondary hull identification numbers permanently affixed in accordance with § 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 § 181.29 of this subpart. (c) No person may assign the same HIN to more than one boat. (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 § 187.201 of this part. If the Commandant is satisfied that the State will comply fully with § 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 § 187.201 of this part. (b) A State wanting to participate in VIS but unable to comply with one or more requirements of § 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. ■ 33. Amend § 187.101 as follows: ■ a. Revise paragraphs (a)(4) and (b)(5)(i) to read as follows; 25. Revise § 174.125 to read as follows: ■ § 174.125 Coast Guard address. The report required by § 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 ■ 30. Revise § 181.31 to read as follows: 26. The authority citation for part 181 is revised to read as follows: § 181.31 Manufacturer identification code assignment. Authority: 46 U.S.C. 4302; Department of Homeland Security Delegation No. 0170.1 (92). (a) Each person required by § 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. ■ ■ 27. Revise § 181.1 to read as follows: § 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. 28. Amend § 181.3 by revising the definition of ‘‘Manufacturer’’ and by adding, in alphabetical order, the definition of ‘‘State’’ to read as follows: ■ § 181.3 Definitions. pmangrum on DSK3VPTVN1PROD with RULES * * * * * 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. ■ 29. Revise § 181.23 to read as follows: VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 PART 187—VESSEL IDENTIFICATION SYSTEM 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). ■ 32. Revise § 187.11 to read as follows: PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\28MRR1.SGM 28MRR1 18704 Federal Register / Vol. 77, No. 60 / Wednesday, March 28, 2012 / Rules and Regulations Dated: March 15, 2012. Paul F. Thomas, Captain, U.S. Coast Guard, Acting Director of Prevention Policy. b. Remove and reserve paragraph (b)(5)(ii); and ■ c. Remove paragraph (b)(5)(iii). ■ § 187.101 What information must be collected to identify a vessel owner? [FR Doc. 2012–7127 Filed 3–27–12; 8:45 am] (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. ■ 34. Revise § 187.103 to read as follows: pmangrum on DSK3VPTVN1PROD with RULES § 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’’. VerDate Mar<15>2010 14:15 Mar 27, 2012 Jkt 226001 BILLING CODE 9110–04–P LIBRARY OF CONGRESS Copyright Office 37 CFR Part 201 [Docket No. RM 2011–9] Fees Copyright Office, Library of Congress. ACTION: Final rule. AGENCY: The Copyright Office of the Library of Congress is publishing a final rule establishing an additional fee for a particular service: Travel expenses in connection with educational activities. DATES: Effective Date: March 28, 2012. FOR FURTHER INFORMATION CONTACT: David O. Carson, General Counsel, P.O. Box 70400, Washington, DC 20024– 0400, Telephone: (202) 707–8380. Telefax: (202) 707–8366. SUPPLEMENTARY INFORMATION: SUMMARY: Background This final rule adjusts Copyright Office’s schedule of fees by adding a fee for travel expenses in connection with participation by Copyright Office personnel in various educational activities when participation has been requested by another organization or person and that organization or person has agreed to reimburse the Office for travel expenses. As the office administering the nation’s records of copyright ownership and as the advisor to Congress, the federal departments and agencies and the judiciary on national and international issues relating to copyright, the Copyright Office has long considered informing and educating the public on copyright issues to be a strategic goal. In furtherance of that goal, the Office has long engaged in various educational programs to inform the public on copyright issues. The Office performs these activities under its broader authority set forth in 17 U.S.C. 701(b)(4), which directs the Office to ‘‘[c]onduct studies and programs regarding copyright, other matters arising under this title, and related matters, the administration of the Copyright Office, or any function vested in the Copyright Office by law, including educational programs PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 conducted cooperatively with foreign intellectual property offices and international intergovernmental organizations.’’ Frequently, the Register of Copyrights and other Copyright Office employees are requested to travel to speak to various groups of authors, copyright owners, their representatives, users of copyrighted works, and other members of the public to provide information about the activities of the Copyright Office, including copyright registration and recordation, the statutory licenses, pending and enacted copyright legislation, Copyright Office regulations, international copyright developments, significant copyright litigation matters, etc. Because the Copyright Office has limited travel funds and because various organizations consider it highly beneficial to host presentations by Copyright Office officials, it has been the general practice of the Office to request that the sponsoring organization or person pay the travel expenses of the Copyright Office personnel. More often than not, the Office’s limited travel funds would not permit the Office to send anyone to participate in such programs unless the sponsoring organization or person is willing to pay those expenses. This regulation codifies the authority for payment of those travel expenses. It adds a new paragraph (f) to the Copyright Office fee schedule in § 201.3 of the Code of Federal Regulations, and provides that the Copyright Office shall charge a fee, consistent with the Federal Travel Regulations (FTR) set forth in Chapters 300 through 304 of Title 41 of the Code of Federal Regulations as well as other applicable laws and regulations, to cover the travel expenses of Copyright Office personnel, in connection with Copyright Office educational activities when participation by Copyright Office personnel has been requested by another person or organization which has agreed to pay such expenses. The fee may be no greater than the amount authorized under the FTR. The Office is also making a technical amendment to paragraph (b)(2) of § 201.3, changing the reference to section 708(a)(10) of title 17 of the U.S. Code. Due to amendments to section 708, that reference has been changed to section 708(a). Because this regulatory amendment simply codifies a longstanding practice and is necessary in order to permit uninterrupted operation of the Office’s ongoing educational activities, the Register concludes that providing notice and opportunity for comment would be impracticable, unnecessary and contrary E:\FR\FM\28MRR1.SGM 28MRR1

Agencies

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

[[Page 18689]]

-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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 https://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 Jeffrey.A.Ludwig@uscg.mil. 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.
---------------------------------------------------------------------------

\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.
---------------------------------------------------------------------------

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
----------------------------------------------------------------------------------------------------------------
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.

0
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

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.