[Federal Register: January 14, 2004 (Volume 69, Number 9)]
[Proposed Rules]               
[Page 2098-2100]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja04-24]                         

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 174

[USCG-2003-15708]
RIN 1625-AA75

 
Terms Imposed by States on Numbering of Vessels

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to expand the number of conditions 
that a State may require in order for owners to obtain vessel numbering 
certificates in that State. Current Federal statutes and regulations 
limit these conditions to proof of ownership or payment of State or 
local taxes. The proposed rule would allow any State to impose proof of 
liability insurance as a condition for obtaining vessel numbering 
certificates in that State.

DATES: Comments and related material must reach the Docket Management 
Facility on or before April 13, 2004.

ADDRESSES: You may submit comments identified by Coast Guard docket 
number USCG-2003-15708 to the Docket Management Facility at the U.S. 
Department of Transportation. To avoid duplication, please use only one 
of the following methods:
    (1) Web Site: http://dms.dot.gov.

    (2) Mail: Docket Management Facility, U.S. Department of 
Transportation, 400 Seventh Street SW., Washington, DC 20590-0001.
    (3) Fax: 202-493-2251.
    (4) Delivery: Room PL-401 on the Plaza level of the Nassif 
Building, 400 Seventh Street SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    (5) Federal eRulemaking Portal: http://www.regulations.gov.


FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed 
rule, call Audrey Pickup, Project Manager, Office of Boating Safety, 
Program Operations Division, Coast Guard, by e-mail at 
apickup@comdt.uscg.mil or by telephone at 202-267-1077. If you have 
questions on viewing or submitting material to the docket, call Andrea 
M. Jenkins, Program Manager, Docket Operations, Department of 
Transportation, telephone 202-366-0271.

SUPPLEMENTARY INFORMATION: 

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting 
comments and related materials. All comments received will be posted, 
without change, to http://dms.dot.gov and will include any personal 

information you have provided. We have an agreement with the Department 
of Transportation (DOT) to use the Docket Management Facility. Please 
see DOT's ``Privacy Act'' paragraph below.
    Submitting comments: If you submit a comment, please include your 
name and address, identify the docket number for this rulemaking (USCG-
2003-15708), indicate the specific section of this document to which 
each comment applies, and give the reason for each comment. You may 
submit your comments and material by electronic means, mail, fax, or 
delivery to the Docket Management Facility at the address under 
ADDRESSES; but please submit your comments and material by only one 
means. If you submit them by mail or delivery, submit them in an 
unbound format, no larger than 8\1/2\ by 11 inches, suitable for 
copying and electronic filing. If you submit them by mail and would 
like to know that they reached the Facility, please enclose a stamped, 
self-addressed postcard or envelope. We will consider all comments and 
material received during the comment period. We may change this 
proposed rule in view of them.
    Viewing comments and documents: To view comments, as well as

[[Page 2099]]

documents mentioned in this preamble as being available in the docket, 
go to http://dms.dot.gov at any time and conduct a simple search using 

the docket number. You may also visit the Docket Management Facility in 
room PL-401 on the Plaza level of the Nassif Building, 400 Seventh 
Street SW., Washington, DC, between 9 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.
    Privacy Act: Anyone can search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review the 
Department of Transportation's Privacy Act Statement in the Federal 
Register published on April 11, 2000 (65 FR 19477), or you may visit 
http://dms.dot.gov.


Public Meeting

    We do not now plan to hold a public meeting. But you may submit a 
request for one to the Docket Management Facility at the address under 
ADDRESSES explaining why one would be beneficial. If we determine that 
one would aid this rulemaking, we will hold one at a time and place 
announced by a later notice in the Federal Register.

Background and Purpose

    Title 46 of the United States Code contains provisions, in chapter 
123, for the numbering of undocumented vessels equipped with propulsion 
machinery of any kind. (Undocumented vessels primarily include 
recreational boats and some types of commercial vessel.) Vessels must 
carry an identification number issued in compliance with the Standard 
Numbering System (SNS) maintained by the Coast Guard. States can 
administer their own numbering programs if those programs comply with 
SNS requirements and receive Coast Guard approval. SNS requirements 
include a limitation on the conditions that States can impose on 
applicants for vessel numbering. A State cannot impose any condition 
unless it relates to proof of tax payment, or has been sanctioned by 
Coast Guard regulations. The relevant Coast Guard regulation is 33 CFR 
174.31. It permits States to impose only two conditions: Proof of tax 
payment, and proof of title.
    In recent years, States have expressed an interest in imposing an 
additional condition--proof of liability insurance--which many people 
think will promote public safety. Currently, however, a State cannot 
impose such a condition without going beyond what 33 CFR 174.31 
authorizes. As a result, a State imposing a liability insurance 
condition would not be in compliance with the SNS requirements of 
Federal law. This could threaten continued Coast Guard approval of the 
State's numbering system. Loss of that approval could result in 
decreased funding for the State's recreational boating safety program. 
The Coast Guard views these as undesirable results in light of the 
possible public safety benefit that could result from a State's 
decision to add an insurance condition. To avoid those results, we wish 
to remove any Coast Guard regulatory barrier to State imposition of an 
insurance condition. To do that, we must amend 33 CFR 174.31.

Discussion of Proposed Rule

    The proposed rule would amend 33 CFR 174.31 by expanding the number 
of conditions a State may require in order for owners to obtain vessel 
numbering certificates in that State. The proposed rule would allow any 
State to impose proof of liability insurance as a condition for 
obtaining vessel numbering certificates in that State.

Regulatory Evaluation

    This proposed rule is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866, Regulatory Planning and Review, 
and does not require an assessment of potential costs and benefits 
under section 6(a)(3) of that Order. The Office of Management and 
Budget has not reviewed it under that Order. It is not ``significant'' 
under the regulatory policies and procedures of the Department of 
Homeland Security (DHS). A Regulatory Evaluation under the regulatory 
policies and procedures of DHS follows:

Costs of Rule

    This proposed rule would allow States to require proof of liability 
insurance as a condition for vessel registration. Because this proposed 
rule would simply allow, not require, States to incorporate proof of 
liability as a condition of registration, this rulemaking would not 
impose any direct costs on vessel owners in any State.

Benefits of Rule

    This proposed rule expands the number of conditions States can 
consider in administering vessel numbering programs.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this proposed rule would have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000.
    The proposed rule imposes no costs on the public but simply expands 
the number of conditions States can consider. Therefore, the Coast 
Guard certifies under 5 U.S.C. 605(b) that this proposed rule would not 
have a significant economic impact on a substantial number of small 
entities. If you think that your business, organization, or 
governmental jurisdiction qualifies as a small entity and that this 
rule would have a significant economic impact on it, please submit a 
comment to the Docket Management Facility at the address under 
ADDRESSES. In your comment, explain why you think it qualifies and how 
and to what degree this rule would economically affect it.

Collection of Information

    This proposed rule would call for no new collection of information 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

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.
    We have analyzed this proposed rule under that Order and have 
determined that it does not have implications for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 or more in any 
one year. Though this proposed rule would not result in such an 
expenditure, we do discuss the effects of this rule elsewhere in this 
preamble.

Taking of Private Property

    This proposed rule would not affect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with

[[Page 2100]]

Constitutionally Protected Property Rights.

Civil Justice Reform

    This proposed 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.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This rule is not an economically significant rule and would not 
create an environmental risk to health or risk to safety that might 
disproportionately affect children.

Indian Tribal Governments

    This proposed rule does not have tribal implications under 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments, because it would not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211, 
Actions Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Environment

    We have analyzed this proposed rule under Commandant Instruction 
M16475.lD (the ``Instruction''), which guides the Coast Guard in 
complying with the National Environmental Policy Act of 1969 (NEPA) (42 
U.S.C. 4321-4370f), and have made a preliminary determination that 
there are no factors in this case that would limit the use of a 
categorical exclusion under section 2.B.2 of the Instruction. 
Therefore, we believe that this rule should be categorically excluded, 
under Figure 2-1, paragraph (34)(d) of the Instruction, from further 
environmental documentation. This rule allows States to require proof 
of liability insurance as a precondition for vessel numbering and 
therefore concerns documentation of vessels. An ``Environmental 
Analysis Check List'' is available in the docket where indicated under 
the ``Public Participation and Request for Comments'' section of this 
preamble. Comments on this section will be considered before we make 
the final decision on whether this rule should be categorically 
excluded from further environmental review.

List of Subjects in 33 CFR Part 174

    Marine safety, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 33 CFR Part 174 as follows:

PART 174--STATE NUMBERING AND CASUALTY REPORTING SYSTEMS

    1. The authority citation for part 174 is revised to read as 
follows:

    Authority: 46 U.S.C. 6101 and 12302; Department of Homeland 
Security Delegation No. 0170.1 (92).

    2. Amend Sec.  174.31 by revising the section heading, 
redesignating paragraph (b) as paragraph (c), and adding a new 
paragraph (b) to read as follows:


Sec.  174.31  Terms imposed by States for numbering of vessels.

* * * * *
    (b) Proof of liability insurance for a vessel except a 
recreational-type public vessel of the United States; or
* * * * *

    Dated: January 8, 2004.
David S. Belz,
Rear Admiral, U.S. Coast Guard, Director of Operations.
[FR Doc. 04-748 Filed 1-13-04; 8:45 am]

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