[Federal Register Volume 60, Number 79 (Tuesday, April 25, 1995)]
[Rules and Regulations]
[Pages 20310-20319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10067]
[[Page 20309]]
_______________________________________________________________________
Part II
Department of Transportation
_______________________________________________________________________
Coast Guard
_______________________________________________________________________
33 CFR Part 187
Establishment of Vessel Identification System; Final Rule
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules
and Regulations
[[Page 20310]]
DEPARTMENT OF TRANSPORTATION
Coast Guard
33 CFR Part 187
[CGD 89-050]
RIN 2115-AD35
Vessel Identification System
AGENCY: Coast Guard, DOT.
ACTION: Interim final rule with request for comments.
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SUMMARY: The Coast Guard is establishing a vessel identification system
(VIS), as required by statute, which includes guidelines for State
vessel titling systems, procedures for certifying compliance with those
guidelines, and rules for participation in this system for undocumented
vessels. VIS, in conjunction with current Coast Guard vessel
documentation information, will provide a nationwide pool of vessel and
vessel owner information that will help in identification and recovery
of stolen vessels and deter vessel theft. A mortgage that covers the
whole of an undocumented vessel and is perfected in a State that both
participates in VIS and holds certification of compliance with
guidelines for State vessel titling systems will be deemed to have
preferred mortgage status.
DATES: This rule is effective on April 24, 1996. Comments must be
received on or before July 24, 1995.
ADDRESSES: Comments may be mailed to the Executive Secretary, Marine
Safety Council (G-LRA/3406), (CGD 89-050), U.S. Coast Guard
Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, or may
be delivered to room 3406 at the same address between 8 a.m. and 3
p.m., Monday through Friday, except Federal holidays. The telephone
number is (202) 267-1477.
The Executive Secretary maintains the public docket for this
rulemaking. Comments will become part of this docket and will be
available for inspection or copying at room 3406, U.S. Coast Guard
Headquarters, between 8 a.m. and 3 p.m., Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: CDR Keith Cameron, Office of Marine
Safety, Security and Environmental Protection, Information Management
Division (G-MIM), (202) 267-0385.
SUPPLEMENTARY INFORMATION:
Request for Comments
The Coast Guard encourages interested persons to participate in
this rulemaking by submitting written data, views, or arguments.
Persons submitting comments should include their names and addresses,
identify this rulemaking (CGD 89-050) and the specific section of this
rule to which each comment applies, and give the reason for each
comment. Please submit two copies of all comments and attachments in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. Persons wanting acknowledgment of
receipt of comments should enclose stamped, self-addressed postcards or
envelopes.
The Coast Guard will consider all comments received during the
comment period. It may change this rule in view of the comments.
The Coast Guard plans no public hearing. Persons may request a
public hearing by writing to the Marine Safety Council at the address
under ADDRESSES. The request should include the reasons why a hearing
would be beneficial. If it determines that the opportunity for oral
presentations will aid this rulemaking, the Coast Guard will hold a
public hearing at a time and place announced by a later notice in the
Federal Register.
Drafting Information
The principal persons involved in drafting this document are CDR
Keith Cameron, Project Manager, Office of Marine Safety, Security and
Environmental Protection and Helen Boutrous, Project Counsel, Office of
Chief Counsel.
Regulatory History
On October 5, 1993, the Coast Guard published a notice of proposed
rulemaking (NPRM) entitled Vessel Identification System in the Federal
Register (58 FR 51920). The Coast Guard received 27 letters commenting
on the NPRM. No public hearing was requested, and none was held.
Background and Purpose
The Secretary of Transportation is required to establish VIS; to
prescribe the manner and form for participating States to make
information available to VIS; to establish guidelines for State vessel
titling systems; and to establish procedures for certifying compliance
with those guidelines (46 U.S.C. chapters 125, 131 & 313). The
Secretary has delegated to the Commandant, U.S. Coast Guard, the
authority to implement VIS. State participation in VIS is entirely
voluntary, however, in order to participate, States must comply with
certain requirements to ensure the integrity and uniformity of the
information provided to VIS.
This interim final rule establishes the minimum requirements for
States electing to participate in VIS. VIS will comprise a nationwide
information system for identifying recreational vessels that are either
numbered in accordance with 46 U.S.C. 123 or titled under the laws of a
State. VIS will include information identifying vessels and vessel
owners, and information to assist law enforcement officials in the
investigation of stolen vessels. Most of the information to be included
in VIS is already collected by States that number vessels in accordance
with 33 CFR 174.17. This and other information collected by the States
will be automatically accessed by VIS, resulting in a central,
nationwide pool of vessel information, while minimizing the burden of
participating States. Once the VIS requirements are effective, the
Coast Guard will begin to work with participating States to coordinate
VIS access.
This interim final rule also prescribes guidelines for State vessel
titling systems and the procedures for obtaining certification of
compliance with those guidelines. Under 46 U.S.C. 31322(d), perfected
mortgages covering the whole of a vessel titled in a State that both
participates in VIS and has a vessel titling system that has been
certified as meeting the titling guidelines issued by this interim
final rule will be deemed to have preferred mortgage status. Compliance
with the State titling guidelines and requests for certification of
that compliance is entirely voluntary. However, preferred mortgage
status under 46 U.S.C. 31321(d) is conditioned upon both participation
in VIS and certification of compliance with the State titling
guidelines issued by this interim final rule.
This action is being published as an interim final rule to allow
for public comment on a provision, Sec. 187.315, that has been added to
the State vessel titling requirements since publication of the NPRM.
Also, this action is being published with an effective date of one year
from today's date. This effective date will allow States affected by a
statutory amendment to 46 U.S.C. chapter 121, which becomes effective
one year from the effective date of the State titling guidelines issued
as a part of this interim final rule, time to review, and if necessary,
amend their vessel titling requirements. These issues are addressed in
greater detail in the discussion of Sec. 187.315 later in this
preamble.
It is not anticipated that VIS will be operational before the
effective date of this interim final rule. Publishing the
[[Page 20311]] VIS requirements now, however, will provide States with
the information necessary to prepare for participation in the voluntary
VIS system.
Discussion of Comments and Changes
All of the comments received were considered in the development of
this interim final rule. The issues raised by the comments received,
and the sections which have been revised or added since publication of
the NPRM, are discussed below. Some sections were revised or
reorganized for clarity.
Subpart A--General
Sec. 187.1 Applicability.
VIS will cover vessels that are numbered or titled under the laws
of a State. Information pertaining to vessels which are documented by
the Coast Guard will continue to be collected under the current
regulations. Many of the comments suggested that documented vessels be
covered by the VIS requirements. After analyzing the merits of applying
the VIS requirements to documented vessels, the Coast Guard determined
that it will be more efficient to maintain the current Coast Guard data
base on documented vessels, and allow increased access to that
information through VIS. Therefore, documented vessels will not be
covered by the vessel identification system requirements of this
interim final rule. Users of VIS will, however, have access to a
nationwide pool of information on recreational vessels, whether
documented or undocumented, because the planned enhancement of the
documentation data base will allow access to the Coast Guard's data
base on documented vessels through VIS. The Coast Guard currently
maintains an information system on over 200,000 vessels documented
under 46 U.S.C. chapter 121. Maintaining this documentation system,
while allowing access to the data base through VIS, satisfies the
statutory goal of establishing a nationwide vessel data base and is
more efficient than discontinuing the existing documentation record
keeping system.
One comment suggested that the VIS final rule specifically exempt
barges from VIS. The comment noted that the Abandoned Barge Act of 1992
amended 46 U.S.C. 12301 to require the numbering of undocumented barges
greater than 100 gross tons. The Coast Guard published a notice on
October 18, 1994, seeking comments on the development of a numbering
system for barges (59 FR 52646). Currently, barges are not numbered,
and the Coast Guard is in the early stages of developing a mandatory
numbering system. Because this interim final rule applies only to
vessels that are numbered or titled under the laws of a State, barges
are not currently covered by VIS. As the Coast Guard's efforts to
establish a barge numbering system continue, the Coast Guard will
examine whether a specific exclusion of barges from VIS is appropriate.
The Coast Guard will propose future amendments to VIS, if necessary.
Sec. 187.3 Definitions.
One comment suggested that the Coast Guard add the definition of
``titled vessel'' to Sec. 187.3 and another comment suggested adding
the definition of ``perfection''. Under Sec. 187.303, the Coast Guard
requires that participating States define most of the terms included in
Sec. 187.3 in their titling systems substantially as those terms are
defined by the Coast Guard. Therefore, in order to allow the States the
most flexibility possible in establishing approved titling systems, the
Coast Guard has attempted to minimize the number of required
definitions. The Coast Guard agrees that a definition of the term
``titled vessel'' would be helpful, and a definition of that term has
been added. However, the term ``perfection'' will be left to the States
to define in accordance with their own titling systems. The definition
of the term ``person'' has been revised to be consistent with the
definition provided in the regulations regarding State numbering system
requirements at 33 CFR 173.3(e). This revision is intended to result in
no substantive change.
Sec. 187.5 Vessel identifier.
Many comments objected to the use of ``VIN'' as an acronym for
``Vessel Identification Number.'' The comments suggested that this
acronym would confuse law enforcement personnel who are far more
familiar with VIN meaning Vehicle Identification Number. The Coast
Guard agrees with these comments and will not use the acronym VIN in
the VIS regulations. The title of the section has been revised
accordingly.
Some of the comments revealed a misunderstanding of this provision
by objecting to the establishment of a new number. VIS will not
establish a new numbering system for vessels. For purposes of
identifying a vessel within VIS, the number to be used will be the hull
identification number (HIN) assigned to an undocumented vessel in
accordance with Subpart C of part 181. Several comments suggested that
documented vessels be identified within VIS by their HIN. However, as
discussed above, the Coast Guard is maintaining its existing data base
on documented vessels which uses the Coast Guard Official Number to
identify vessels within the current documentation system. Therefore, it
will be necessary to keep the Coast Guard Official Number as the
primary identifier for documented vessels. Information on documented
vessels, such as owner name, Official Number, HIN if one has been
assigned, length, and hailing port, will be available through VIS.
Several comments suggested that Sec. 187.5(c), which requires
States to assign an HIN to vessels under certain circumstances, will be
problematic for States. The comments stated that the requirement leaves
no room for discretion by the States to refuse to assign an HIN to a
vessel which the State may believe to be stolen. These comments
suggested replacing the word ``shall'' with ``may'' in paragraph (c).
The Coast Guard disagrees with these comments. The HIN will be the
primary identifier for all State registered or numbered vessels in the
United States. Section 187.5(b) allows for the use of other
identifiers, such as the number issued on a certificate of number by
the issuing authority of a State, only where a vessel does not have an
HIN (e.g., a vessel built prior to 1972). However, under Sec. 187.5(c),
if the ownership or State of principle use of the vessel changes, the
State is required to assign an HIN to that vessel, just as States
currently do under the authority of 33 CFR 181.31(c) for ``backyard
boat builders''. The HIN must meet the format requirements of 33 CFR
181.25. States may impose any controls necessary to ensure HINs are
assigned appropriately. Section 187.5(c) has been revised to clarify
this issue for the States. The Coast Guard specifically invites
comments on this revised provision from States that anticipate
participating in VIS.
One comment suggested that VIS require mandatory inspection of a
vessel prior to a State assigning an HIN. While the Coast Guard agrees
that inspections could lessen the probability of illegal action by
those attempting to obtain an HIN, it is the Coast Guard's position
that the decision to implement such procedures should be left to the
individual States.
Several comments suggested requiring that all documented vessels be
assigned an HIN. Vessels manufactured or used primarily for
noncommercial use (33 CFR 181.3), the only vessels included in VIS, are
currently required to have an HIN, whether they are documented or not.
However, as discussed above, to utilize the existing database of
information on documented vessels, it [[Page 20312]] will be necessary
to use the Coast Guard Official Number as the primary identifier for a
documented vessel.
Subpart B--Information to be Collected by Participating States
Sec. 187.101 Information to identify a vessel owner.
Many comments objected to the provision that would have required
participating States to collect information on the percentage of
ownership interest of each owner for each vessel. Many comments also
objected to the proposed requirement to obtain the address of each
owner. These comments contended that collecting this amount of
information would be overly burdensome. The Coast Guard agrees with the
comments on this matter, and Sec. 187.101 has been revised to lessen
the information burden. This interim final rule requires the State to
obtain the name of each owner of a vessel, but does not require States
to collect any information regarding the percentages of ownership
interest. Further, States are required to obtain the address of only
one owner.
Several comments objected to the collection of an individual
owner's Social Security Number or, where not available, date of birth
and driver's license number. The comments indicated that some States do
not allow the required collection of an individual's social security
number, and not all individuals have a driver's license. For an
effective information and identification system, there must be a method
of identifying the owner of a vessel beyond the individual's name. The
Coast Guard included collection of date of birth and driver's license
number to assist those States that may have problems collecting Social
Security Numbers. To alleviate the situation that may arise for a State
where no Social Security Number or driver's license number is
available, the Coast Guard will accept, in such situations only, the
individual's date of birth and alternative information identifying the
individual vessel owner as specified by the regulations of the State or
issuing authority.
Sec. 187.103 Information to identify a vessel.
Most of the comments agreed with the NPRM regarding the information
to be collected to identify a vessel.
One comment suggested that information regarding a vessel's type of
propulsion is too detailed for inclusion in VIS. However, it is the
Coast Guard's position that a vessel's type of propulsion is an
excellent means, in combination with other information, to identify a
vessel. Propulsion type greatly influences the value of a vessel, and
this information is currently required to be collected by States with
authorized numbering systems under 33 CFR 174. Therefore, inclusion of
this information in VIS will cause no additional information collection
requirement for these States. However, the term ``jet drive'' has been
removed from the list of propulsion types to be consistent with the
list of propulsion types provided in the regulations regarding State
numbering system requirements at 33 CFR 174.19.
One comment argued that the final rule should not require the
collection of the vessel number previously issued by an issuing
authority. It is the Coast Guard's position that this is valuable
information in assisting in the identification of a vessel. Also, like
propulsion type, this information is required to be collected by States
with authorized numbering systems under 33 CFR part 174 and represents
no increased burden for these States that choose to participate.
Sec. 187.105 Information on titled vessels.
There was general agreement among those commenting regarding the
information to be collected on titled vessels by a participating State.
One comment however, disagreed with the requirement to collect
information regarding evidence of a lien or other security interest.
The comment argued that the information would not be helpful. Also, the
comment argued that it would be difficult to collect information
regarding evidence of a lien kept in another State. Under 46 U.S.C.
12501(b)(5), VIS must include information on titled vessels indicating
where evidence of a lien or other security interest may be found
against the vessel in that State. Therefore, the requirement to collect
information indicating where evidence of a lien may be found is
retained in this interim final rule. Section 187.105(a)(3) has been
revised, however, to clarify that a State must collect information
regarding evidence of a lien or other security interest found in that
State only.
Sec. 187.107 Information to assist law enforcement officials.
Several of the comments agreed with the requirements of
Sec. 187.107 as proposed. The information listed in paragraph (a) of
Sec. 187.107 (report of loss or theft, point of contact) is required to
be collected, while collection of the more detailed information listed
in paragraph (b) is optional. One comment suggested that the Coast
Guard require the collection of the information listed in both
paragraphs (a) and (b). The Coast Guard encourages participating States
to collect the detailed information listed in paragraph (b). However,
in the interest of putting the least possible burden on participating
States while still meeting the needs of the VIS system, the Coast Guard
has determined that, for now, collection of the information listed in
paragraph (b) will remain optional. The Coast Guard has been working
with the Criminal Justice Information Service, Department of Justice,
regarding the mutual supporting roles of the National Crime Information
Center (NCIC) and VIS. Because much of the information listed in
paragraph (b) is contained in NCIC's Boat File, collection of that
information will not be required in this rulemaking.
Subpart C--Vessel Identification System Participation Requirements
Sec. 187.201 Participating State requirements.
Paragraph (b) was reserved in proposed Sec. 187.201. It has been
determined that additional requirments are not necessary in that
section and the paragraphs of Sec. 187.201 have been redesignated
accordingly. Also, a printing error in the wording of proposed
Sec. 187.201(a)(6) (now Sec. 187.201(f)) has been corrected in this
interim final rule.
One comment stated that the retention of previously issued
certificates of number or titles would be overly burdensome. This
section requires a State to collect old, no longer valid, certificates
of number and title when issuing new certificates of number or titles.
The State may retain or dispose of the old documents as it sees fit.
Because a State is free to dispose of these invalid records, the Coast
Guard does not agree that the provision is overly burdensome and the
provision is retained.
Two comments suggested that compliance with the participation
requirements would be easier if States are allowed to use microfiche
technology. States are free to use such technology or other methods of
electronic storage where appropriate. This rulemaking does not address
how that information is to be stored by the States. As discussed
earlier, and in Sec. 187.201(a), Coast Guard-State Cooperative
Agreements will be developed to specify the manner and form that
information will be accessed by VIS.
Several comments suggested that participation in VIS be made
mandatory for States. There is no statutory authority to require
participation in VIS. Under 46 U.S.C. chapter 125, participation in VIS
by the States is to be voluntary. [[Page 20313]]
One comment suggested that the Coast Guard utilize an existing
system, the American Association of Motor Vehicles Administrator's
network (AAMVANET) rather than develop VIS. It was further suggested
that a ``pointer system'' such as used in AAMVANET, would eliminate the
need for a participating State to maintain two systems. VIS, which the
Coast Guard is required by statute to create, will automatically access
information collected by participating States from their databases.
There will be no need for participating States to maintain two systems.
The purpose of VIS is to create a national vessel database that
consists of the information collected by States during numbering and
titling procedures. There will be no need for a participating State to
enter any vessel data twice. VIS will contain data that has been
electronically copied.
One comment suggested that the project was redundant, would place a
paperwork burden on the States, and would be funded by a boat tax. VIS
will be the first nationwide pool of information containing the vessel
and vessel owner information prescribed by this interim final rule. The
framework of the system has been designed to minimize any additional
burden on participating States. Almost all of the information required
is currently collected by States with numbering or titling systems.
There will be no need for these States to collect the information a
second time. As discussed, the information will be automatically
accessed or accepted by VIS. Therefore, the Coast Guard estimates that
participation will not be burdensome for participating States. Finally,
there is no ``boat tax'' associated with this rulemaking or the
enabling legislation. Funding for the establishment of VIS is provided
through the Coast Guard appropriations process.
Subpart D--Guidelines for State Vessel Titling Systems
Sec. 187.301 Eligibility for preferred mortgage status.
One comment suggested that preferred mortgage status would not be
available as described in the NPRM. The comment questioned the
``legality of assigning `preferred mortgage status' to instruments
recorded within'' VIS. No ``instruments'' will be ``recorded'' within
VIS. VIS is an information data base only. As for preferred mortgage
status, 46 U.S.C. 31322(d)(1)(A) and (B) state that a mortgage
perfected under State law, covering the whole of a vessel, is deemed to
be a preferred mortgage if the State's titling system is certified to
be in compliance with the titling guidelines issued by the Secretary,
and if information on the vessel covered by the mortgage is made
available to VIS. Therefore, Sec. 187.301 remains unchanged.
Sec. 187.305 Application for title.
In the NPRM, Sec. 187.305(a) proposed that States require
application for a title within a specified period of time, not to
exceed 90 days, after a change in ownership. Many of the comments
suggested that the period of time required to apply for a title be
changed to within 60 days of a change in ownership. The Coast Guard
agrees with this suggestion and the provision is revised accordingly.
One comment suggested that the phrase ``first purchased'' be
removed from paragraph (a). However, the Coast Guard has decided to
retain this phrase in the provision to distinguish between an act
requiring an initial application for title and other acts transferring
the title.
Many comments disagreed with the requirement in paragraph (b) to
include the amount of indebtedness covered by any security agreement
pertaining to the vessel in its titling application form. The comments
indicated that this requirement constituted unnecessary detail in the
application process. The Coast Guard agrees that including the amount
of indebtedness on a vessel in the titling application form does not
serve a sufficiently useful purpose to outweigh the burden of
collection of that information. Consequently, this interim final rule
requires that the titling application form include an entry indicating
whether there is indebtedness covered by any security agreement
pertaining to the vessel, but does not require disclosure of the actual
amount.
Sec. 187.307 Dealer and manufacturer provisions.
Many of the comments disagreed with paragraphs (a) and (b) of
proposed Sec. 187.307. Paragraph (a) proposed to require States to
require dealers to report acquisition of a used numbered vessel for
resale, and allow them to apply for a certificate of title. Paragraph
(b) proposed to require States to require dealers to apply for a
certificate of title for a used unnumbered vessel acquired for resale
if the vessel is required to be titled. The comments contended that
these provisions are unclear. One comment stated that paragraphs (a)
and (b) are unnecessary because paragraph (a) merely allows something
that States could do without such a provision, and very few vessels fit
the description in paragraph (b). A different comment argued that
requiring dealers to apply for title as described in paragraph (b)
would cause procedural burden. The Coast Guard has revised paragraph
(a) to clarify that States must require dealers to either report
acquisition of used vessels for resale, or, title these vessels if
State law requires such vessels to be titled. Paragraph (b) is deleted.
One comment suggested that the Coast Guard increase the length of
time that dealers and manufacturers must maintain records from 3 to 10
years. Another suggested that the 3 year requirement be decreased. The
Coast Guard's position is that 3 years is a sufficient amount of time
to retain such records without placing an undue burden on dealers and
manufacturers.
Paragraph (d) requires dealers and manufacturers to provide to the
vessel owner a certificate of origin (COO), or other document, at the
time of delivery of a new vessel. Several comments suggested requiring
that manufacturers supply a COO only and delete the words ``or other
documents''. Other comments suggested specific contents to be required
in a COO. The Coast Guard, in another rulemaking, is considering
requirements for COOs (Expanded Hull Identification Number and New
Requirements for Certificates of Origin [CGD 92-065]; May 6, 1994; 59
FR 23651). Such requirements have not been considered as a part of this
rulemaking. If future requirements for COOs are established, the VIS
requirements can be amended if necessary. At the present time, there is
no requirement that manufacturers issue COOs. Therefore, the language
allowing for other documents such as a Builder's Certificate (CG 1261),
is necessary.
Sec. 187.311 Transfer by operation of law.
Many comments suggested that the time limits set for accomplishing
various requirements, such as applying for a certificate of title if a
vessel is transferred by operation of law, as required in Sec. 187.311,
and after a transfer in ownership, as required in Sec. 187.305(a), be
consistent throughout the titling guidelines. Most comments preferred a
60 day time limit. Consequently, this interim final rule changes the
time limit proposed in Sec. 187.311 from ``not to exceed 90 days'' to
``not to exceed 60 days.''
Sec. 187.315 Surrender of title for purposes of documentation.
Under Federal law, a vessel must be documented by the Coast Guard
if it engages in coastwise trade, foreign trade, or fisheries. A
recreational vessel is not required to be documented, but
[[Page 20314]] may be if it meets eligibility requirements. In the
past, some lending institutions have required recreational vessel
owners to obtain Coast Guard documentation so that preferred mortgages
may be recorded to protect security interests. After implementation of
VIS, a mortgage may acquire preferred status under 46 U.S.C. 31322(d)
if it is perfected under State law for a vessel titled in a State that
both participates in VIS and has a titling system certified by the
Coast Guard. However, some States may not choose to participate in VIS.
Therefore, the Coast Guard will continue to provide documentation
services for eligible vessels, whether or not required to be
documented, in order to extend the opportunity to record a preferred
mortgage to those vessels.
Although it was not specifically addressed in the NPRM, a comment
noted that a 1989 amendment to 46 U.S.C. 12102 would render a vessel
titled in a State ineligible for documentation by the Coast Guard. This
amendment will become effective on April 25, 1997, one year after the
effective date of these vessel titling guidelines.
The Coast Guard wishes to emphasize that the statutory prohibition
applies to all State-titled vessels, whether or not the State that
issued the title participates in VIS or follows these titling
guidelines. If a vessel owner has obtained a State title for purposes
of convenience, the owner must choose to surrender either the State
title or the Certificate of Documentation. For a vessel engaged in a
trade for which documentation is required under Federal law, the owner
could not choose to relinquish the Certificate of Documentation and
continue to employ the vessel in trade. Three States (Iowa, New Jersey,
and Vermont) currently require that a vessel receive a State title if
the owner resides in the State or the vessel is principally used in the
State, whether or not the vessel is documented by the Coast Guard. The
Coast Guard's position is that, for vessels required to be documented
under Federal law, the Federal documentation requirement preempts the
State titling requirement. The vessel's Certificate of Documentation
will remain valid and the State title will be void, even if a title is
required by State law.
However, this preemption does not extend to recreational vessels
not required to be documented by Federal law. As of the effective date
of the amendment, a recreational vessel titled by a State is ineligible
for documentation, and any existing Certificate of Documentation will
be invalid. The vessel owner will have to either surrender the title to
the issuing State authority before April 25, 1997 or surrender the
Certificate of Documentation to the Coast Guard. However, an owner will
be unable to surrender the title if the vessel is required to be titled
under State law.
To address this issue, a new provision, entitled ``Surrender of
title for purposes of documentation'', has been added to the State
titling guidelines. To obtain certification of compliance with the
guidelines, a State would have to deem a State-issued title invalid if
a vessel owner surrenders the title to the Coast Guard for the purpose
of obtaining Coast Guard documentation. The Coast Guard would return
the title to the issuing State. This is intended to prevent an owner
from establishing dual chains of ownership, and is consistent with
current practice in most States. States generally accept surrender of
title when a vessel is purchased by an out-of-State owner or an owner
moves to a different State and applies for a new title and
registration. A similar process is used for automobile titles.
This provision was not included in the NPRM. Therefore, the Coast
Guard is promulgating this action as an interim rule to allow
interested parties the opportunity to comment. The Coast Guard
specifically requests comments from States on the impact of the
statutory amendment and the surrender guidelines. Additionally, the
Coast Guard has delayed the effective date of this rule until April 25,
1996 to allow States time to review their titling requirements and make
any necessary changes.
Sec. 187.317 Information on a certificate of title.
Many comments argued against including the percentage of ownership
interest and the address of every owner on certificates of title. These
comments came from State officials who explained that often many people
may own a boat and including the percentage of ownership and each
address on certificates of title would be burdensome and unhelpful.
Also, many married couples own boats jointly and it would serve no
purpose to indicate the percentage of ownership between them. None of
those States commenting on this issue currently collect this
information. The Coast Guard agrees with these comments and has revised
Sec. 187.317 to require the name(s) of all current owner(s) and the
address of one of the owners.
Only one comment argued against the recording of liens on
certificates of title. Lien information is specifically required to be
included in VIS under 46 U.S.C. 12501(b)(5). Lien information is very
important in the development of the integrated boat information and
titling system envisioned by Congress. Therefore, the requirement to
include lien information on the certificate of title is retained in
this interim final rule.
Sec. 187.319 Duplicate title.
Several comments suggested revisions to Sec. 187.319. The NPRM
required that the word ``duplicate'' be ``stamped'' across the face of
a duplicate certificate of title. The comments noted that other means
of marking the document besides ``stamping'' it should be allowed, and
the marking should not be required to be ``across'' the face of the
document. The Coast Guard agrees with these comments and has revised
this provision to require that the word ``duplicate'' be ``clearly and
permanently marked on'' the face of the document.
One comment argued that duplicate certificates of title should not
be allowed. The Coast Guard does not agree with this comment.
Circumstances such as loss, theft, or destruction of the document can
arise and after the State has inquired into those circumstances as
required by this section, a duplicate certificate of title should be
available to the owner.
Another comment suggested specifying a period of time in which an
owner must apply for a duplicate certificate of title. In the interest
of allowing States wishing to comply with these titling guidelines as
much flexibility as possible in designing titling programs for their
States, the Coast Guard has decided to leave to the States the
determination of the appropriate amount of time within which an owner
must apply for a duplicate certificate of title.
Sec. 187.321 Hull identification number provisions.
Several comments suggested that the provisions of Sec. 187.321 be
optional for States complying with the guidelines. The Coast Guard does
not agree with this suggestion. Section 187.321 requires States that
seek certification of compliance with the guidelines to: assign an HIN
to an undocumented vessel without an HIN at the time of registration
upon transfer of ownership or change in State of principal operation;
assign an HIN to an undocumented vessel without an HIN at the time of
title application and record the HIN on the certificate of title; and
prohibit the removal or alteration of an HIN without the authorization
of the [[Page 20315]] Commandant. The proper assignment of an HIN to a
vessel that previously did not have one, whether because of its age or
because the manufacturer failed to permanently affix one, will protect
the new owner and assist law enforcement efforts. Proper identification
of vessels is vital to the success of the VIS and law enforcement
efforts.
One of these comments also suggested that States be allowed to
authorize the removal of an HIN. However, the Coast Guard has
determined that this authority should remain with the Coast Guard
consistent with the HIN requirements at 33 CFR 181.35.
Regulatory Evaluation
This action is not a significant regulatory action under section
3(f) of Executive Order 12866 and does not require an assessment of
potential costs and benefits under 6(a)(3) of that order. It has not
been reviewed by the Office of Management and Budget under that order.
It is not significant under the regulatory policies and procedures of
the Department of Transportation (44 FR 11040; February 26, 1979). The
Coast Guard expects the economic impact of this interim final rule to
be so minimal that a full Regulatory Evaluation under paragraph 10(e)
of the regulatory policies and procedures of DOT is unnecessary. This
interim final rule implements the provisions of the Act requiring the
establishment of VIS, and establishes requirements for States that
elect to participate in VIS, guidelines for State vessel titling
systems, and procedures for certifying compliance with those
guidelines. Participation in VIS and compliance with the guidelines for
State vessel titling systems is entirely voluntary. Most of the
information to be included in VIS is already collected by States when
registering vessels within the State. Preliminary review of titling
laws, regulations and administrative procedures of 28 States revealed
that 21 of the State vessel titling systems would comply with most or
all of the titling guidelines issued by this interim final rule. The
overall impact of this rule will be the improvement of vessel and owner
identification, and a potential decrease in the amount of information
that is collected, other than for vessel registration, to identify a
vessel or owner by State and Federal officials.
Small Entities
It is anticipated that the VIS computer system will facilitate the
collection of information directly from State computer files. The
impact of the rulemaking will be on States electing to participate in
VIS, rather than on small entities. Most of the information to be
included in VIS is already collected by States when registering vessels
within the State and by States that title vessels.
Therefore, the Coast Guard certifies under 605(b) of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) that this interim final rule
will not have a significant economic impact on a substantial number of
small entities.
Collection of Information
This rule contains collection of information requirements. The
Coast Guard has submitted the requirements to the Office of Management
and Budget (OMB) for review under section 3504(h) of the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.), and OMB has approved them. The
section numbers are: 187.7, 187.9, 187.101, 187.103, 187.105, 187.107,
187.201, and 187.301. The corresponding OMB control number is 2115-
0607.
Federalism
The Coast Guard has analyzed this rule in accordance with the
principles and criteria contained in Executive Order 12612 and has
determined that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment.
This rule is not expected to infringe upon the rights of States to
regulate, or preempt existing State regulations. State participation is
entirely voluntary. However, once electing to participate, a State must
comply with the requirements to ensure integrity and uniformity of
information in VIS. Likewise, requesting certification that a State
vessel titling system complies with the guidelines is also voluntary.
Such certification, for participating States, confers preferred status
on mortgages covering the whole of vessels titled in that State.
However, an amendment to 46 U.S.C. 12102 prohibits vessels from
being both documented and titled beginning one year after the effective
date of the vessel titling guidelines. The statutory amendment applies
to all vessel owners whether or not the State chooses to participate in
VIS or follow the State titling guidelines. For vessels required to be
documented under Federal law, the Federal documentation requirement
preempts State titling requirements. This preemption does not extend to
recreational vessels, for which documentation is not required by
Federal law. States that require documented vessels to be titled may
desire to amend their requirements regarding vessels that are required
by Federal law to be documented.
Environment
The Coast Guard considered the environmental impact of this rule
and concluded that, under paragraph 2.B.2 of Commandant Instruction
M16475.1B, this rule is categorically excluded from further
environmental documentation. This rule establishes a nationwide
information system for identifying vessels and vessel owners, and
guidelines for State vessel titling systems. This action clearly would
have no environmental consequences. A Categorical Exclusion
Determination is available in the docket for inspection or copying
where indicated under ADDRESSES.
List of Subjects in 33 CFR Part 187
Marine safety, Reporting and recordkeeping requirements,
Administrative practice and procedure.
For the reasons set out in the preamble, the Coast Guard amends
chapter I of title 33, Code of Federal Regulations, by adding part 187
to read as follows:
PART 187--VESSEL IDENTIFICATION SYSTEM
Subpart A--General
Sec.
187.1 Applicability.
187.3 Definitions.
187.5 Vessel identifier.
187.7 Participation procedures.
187.9 Procedures for certification of compliance with guidelines
for State vessel titling systems.
Subpart B--Information To Be Collected by Participating States
Sec.
187.101 Information to identify a vessel owner.
187.103 Information to identify a vessel.
187.105 Information on titled vessels.
187.107 Information to assist law enforcement officials.
Subpart C--Vessel Identification System Participation Requirements
Sec.
187.201 Participating State requirements.
187.203 Voluntary provisions for participating States.
Subpart D--Guidelines for State Vessel Titling Systems
Sec.
187.301 Eligibility for preferred mortgage status.
187.303 Definitions.
187.305 Application for title.
187.307 Dealer and manufacturer provisions.
187.309 Transfer of title.
187.311 Transfer by operation of law. [[Page 20316]]
187.313 Title of another State.
187.315 Surrender of title for purposes of documentation.
187.317 Information on a certificate of title.
187.319 Duplicate title.
187.321 Hull identification number (HIN) provisions.
187.323 Perfection of security interests.
187.325 Assignments.
187.327 Satisfaction of a security interest.
187.329 Forms.
187.331 Retaining information.
Appendix A to Part 187--Participating Authorities
Appendix B to Part 187--Participating And Certified Titling
Authorities
Authority: 46 U.S.C. 2103; 49 CFR 1.46.
Subpart A--General
Sec. 187.1 Applicability.
(a) This part establishes minimum requirements for States electing
to participate in the vessel identification system (VIS) established
under 46 U.S.C. chapter 125. This part also prescribes guidelines for
State vessel titling systems and the procedures for obtaining
certification of compliance with those guidelines for those States
electing to establish titling systems to support preferred mortgages.
(b) This part applies only to vessels numbered or titled under the
laws of a State. It does not apply to vessels documented under 46
U.S.C. chapter 121 and the regulations in 46 CFR parts 67 and 68.
Sec. 187.3 Definitions.
The following definitions apply to terms used in this part.
Certificate of Origin (COO) means a document establishing the
initial chain of ownership, such as manufacturer's certificate of
origin (MCO) or statement of origin (MSO), importer's certificate of
origin (ICO) or statement of origin (ISO), and builder's certification
(Form CG-1261; see 46 CFR part 67).
Commandant means the Commandant of the United States Coast Guard.
Dealer means any person who engages wholly or in part in the
business of buying, selling, or exchanging new or used vessels, or
both, either outright or on conditional sale, bailment, lease, chattel
mortgage or otherwise, and who has an established place of business for
the sale, trade, and display of such vessels.
Department or division means the State agency designated to issue
certificates of number or title, or both for vessels, and its duly
authorized representatives.
Documented vessel means a vessel documented under 46 U.S.C. chapter
121.
HIN means the hull identification number assigned to an
undocumented vessel in accordance with subpart C of part 181 of this
subchapter.
Issuing authority means a State that has a numbering system
approved by the Coast Guard or the Coast Guard where a State numbering
system has not been approved.
Lienholder means a person holding a security interest.
Manufacturer means any person engaged in the business of
manufacturing or importing new vessels for the purpose of sale or
trade.
Owner means a person who claims lawful possession of a vessel by
virtue of legal title or equitable interest in it that entitles that
person to such possession.
Participating State means a State that has elected to participate
in VIS and has been certified as complying with the participation
requirements in subpart C of this part. Certified States participating
in VIS are listed in Appendix A of this part.
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.
Security interest means an interest that is reserved or created by
an agreement and that secures payment or performance of an obligation
and is valid against third parties generally.
State means a State of the United States, Guam, Puerto Rico, the
Virgin Islands, American Samoa, the District of Columbia, the Northern
Mariana Islands, and any other territory or possession of the United
States.
Titled vessel means a vessel titled in accordance with the laws of
a State.
Titling authority means a State whose vessel titling system has
been certified by the Coast Guard as complying with the guidelines for
State vessel titling systems listed in this part. Titling authorities
participating in VIS are listed in Appendix B of this part.
Vessel includes every description of watercraft other than a
seaplane on the water, used or capable of being used, as a means of
transportation on water.
Sec. 187.5 Vessel identifier.
(a) The vessel identifier is the hull identification number (HIN)
assigned to an undocumented vessel in accordance with subpart C of part
181 of this subchapter. The vessel identifier for a documented vessel
is the official number assigned by the Coast Guard in accordance with
46 U.S.C. chapter 121.
(b) If the vessel does not have an HIN, the vessel identifier for
vessels subject to the numbering requirements of parts 173 and 174 of
this subchapter is the number issued on a certificate of number by the
issuing authority for the State in which the vessel is principally
operated.
(c) If a vessel subject to the numbering requirements of parts 173
and 174 of this subchapter is transferred to a new owner, or the vessel
is required to be numbered in a new State of principal operation, or
application for a title is made, a hull identification number meeting
the format requirements of Sec. 181.25 shall be assigned by the issuing
authority for the State in which the vessel is principally operated in
accordance with the State's established procedures if the vessel does
not have a valid HIN.
Sec. 187.7 Participation procedures.
(a) To participate in VIS, a State official within the department
must submit a written request to the Commandant (G-NAB) and certify
that the State will comply with the VIS participation requirements in
subpart C of this part.
(b) Appendix A of this part lists those States that have elected to
participate in VIS and comply with the participation requirements
prescribed in this part. A State will remain listed in Appendix A of
this part as long as it continues to comply with the participation
requirements in subpart C of this part.
Sec. 187.9 Procedures for certification of compliance with guidelines
for State vessel titling systems.
(a) Under 46 U.S.C. 31322(d), a mortgage or instrument perfected
under State law for a vessel titled under the law of a participating
State is deemed to be a preferred mortgage if the State has been
certified as complying with the guidelines in subpart D of this part.
(b) To obtain certification of compliance with the State titling
guidelines, a State official within the department must submit a
written request along with a copy of the State's titling laws,
regulations and administrative procedures, to the Commandant (G-NAB),
and certify that the State will comply with the participation
requirements in subpart C of this part.
(c) The Commandant will review the material, and, if the State
complies with the guidelines provided in subpart D of this part,
certify compliance.
(d) Appendix B of this part indicates those States that participate
in VIS and, have been certified by the Commandant as complying with the
guidelines prescribed in subpart D of this part and the date of that
certification. A State [[Page 20317]] with a vessel titling system that
complies with the guidelines of subpart D of this part will remain
listed, in Appendix B of this part.
Subpart B--Information To Be Collected by Participating States
Sec. 187.101 Information to identify a vessel owner.
A participating State must collect the following information
regarding the ownership of vessels numbered or titled under the laws of
that State:
(a) Name of each owner.
(b) The address of the principal place of residence of at least one
individual owner, or the address of the principal place of business of
an owner that is not an individual, including zip code.
(c) Mailing address of at least one owner, if different from the
address required by paragraph (b) of this section.
(d) If the owner is an individual, the owner's social security
number, or, if that number is not available, the individual's birth
date and driver's license number or, if the individual does not have a
driver's license, the individual's birth date and other information to
identify that individual as prescribed by the State or titling
authority.
(e) If the owner is other than an individual, the owner's--
(1) Taxpayer identification number; or
(2) If the owner does not have a taxpayer identification number,
the social security number, or if the social security number is not
available, birth date and driver's license number, or if no driver's
license number is available, the birth date and other identifying
information prescribed by State regulation, of an individual who is a
corporate officer, general partner, or individual trustee of the owner
and who signed the application for numbering the vessel.
Sec. 187.103 Information to identify a vessel.
A participating State must collect the following information
regarding the identity of a vessel numbered or titled under the laws of
that State:
(a) Make of vessel or name of vessel builder, if known.
(b) Manufacture year, year vessel built, or vessel model year, if
known.
(c) Vessel identifier required by Sec. 187.5 of this part.
(d) Official number assigned by U.S. Coast Guard or predecessor
agency, if applicable.
(e) Number currently assigned by the State issuing authority, as
printed on the certificate of number.
(f) Length of vessel.
(g) Type of vessel (open, cabin, house, or other).
(h) Whether the hull is wood, fiberglass, metal, plastic, or other.
(i) Whether the propulsion is inboard, outboard, inboard-outdrive,
sail, or other.
(j) Whether the fuel is gasoline, diesel, or other.
(k) Whether the vessel is operated for pleasure, rent or lease,
dealer or manufacturer demonstration, commercial passenger carrying,
commercial fishing, or other commercial operation.
(l) Number previously issued to the vessel by an issuing authority.
(m) Expiration date of certificate of number issued by the State
vessel numbering authority.
Sec. 187.105 Information on titled vessels.
(a) In addition to the information required under Sec. 187.103, a
participating State must collect the following information on a vessel
titled in that State:
(1) Title number issued by the State.
(2) Where evidence of a lien or other security interest may be
found against a vessel titled in that State.
(3) Name(s) of the lienholder(s).
(4) Address of principal place of residence of each individual
lienholder and the address of the principal place of business of each
lienholder that is not an individual, including zip code.
(b) Participating States may collect the following information on
titled vessels:
(1) Mailing address of any lienholder that is different from the
addresses required by paragraph (a)(4) of this section.
(2) Telephone number of each lienholder.
Sec. 187.107 Information to assist law enforcement officials.
(a) Participating States must make the following information
available to assist law enforcement officials:
(1) Notice that a vessel, identified by its vessel identifier, has
been reported lost, stolen, destroyed, abandoned, or recovered.
(2) Name and telephone number of organization to contact for
additional information or to notify regarding the recovery of a vessel.
(b) Participating States may make the following information
available to assist law enforcement officials:
(1) Reported date that the vessel was stolen.
(2) Reported location of vessel when stolen.
(3) Vessel insurance policy number, if insured.
(4) Name of the insurance company.
(5) Address of insurance company, including zip code.
(6) Mailing address of the insurance company for notification, if
different from the address provided under paragraph (b)(5) of this
section.
(7) Telephone number of insurance company.
(8) Date that the vessel was recovered.
(9) Location of vessel when recovered.
(10) Name(s) and telephone number(s) of organization(s), in
addition to the one provided under paragraph (a) of this section,
public or private, to contact for additional information on sighting
and recovery of vessels.
(11) Request to be notified if vessel is sighted.
(12) Purpose of sighting notification request.
(13) Date and time when vessel last sighted.
(14) Location of vessel when last sighted.
(15) Organization to contact for additional information on
sighting.
Subpart C--Vessel Identification System Participation Requirements
Sec. 187.201 Participating State requirements.
A participating State must comply with the following requirements:
(a) Collect the required information listed in subpart B of this
part and provide that information to the vessel identification system
in the manner and form specified in the applicable Coast Guard-State
Cooperative Agreement.
(b) Obtain specific evidence of ownership, such as certificate of
origin or current certificate of title or number, to identify a
vessel's owner.
(c) Return any surrendered Certificate of Documentation to the
issuing Coast Guard Vessel Documentation Office.
(d) Retain previously issued certificate of number or title and
notify issuing authority by mail or electronic message.
(e) Retain information identifying the type of evidence used to
establish the accuracy of the information required to be made available
to VIS, and make it available to the Coast Guard upon request.
(f) Update the information required to be made available to VIS on
a vessel that has not been re-registered by labeling the vessel file
``inactive'' or, if notified that a vessel has been moved to a
nonparticipating State, by indicating the new State and notifying the
Coast Guard.
Sec. 187.203 Voluntary provisions for participating States.
A participating State may--
(a) Provide VIS with the optional information listed in subpart B
of this part; [[Page 20318]]
(b) Make updated information provided by the vessel owner,
government agency or lienholder, available to VIS regarding a vessel
that has been moved to a nonparticipating State; and
(c) Interact with nonparticipating States to make information
available to, or request information from, VIS concerning a vessel or
nationwide statistics.
Subpart D--Guidelines for State Vessel Titling Systems
Sec. 187.301 Eligibility for preferred mortgage status.
A State vessel titling system that meets the requirements of this
subpart may be certified by the Commandant under 46 U.S.C. 31322
(d)(1)(A), in accordance with the procedures of Sec. 187.9, as
complying with the guidelines for vessel titling systems for the
purpose of conveying preferred mortgage status on mortgages perfected
after the date of certification, covering the whole of a vessel titled
in that State, provided that the State also complies with the vessel
identification system participation requirements of Sec. 187.7 and
subpart C of this part.
Sec. 187.303 Definitions.
A State must define the terms, ``certificate of origin'',
``dealer'', ``department'' or ``division'', ``documented vessel'',
``issuing authority'', ``lienholder'', ``manufacturer'', ``owner'',
``person'', ``security interest'', ``titling authority'', and
``vessel'', substantially as those terms are defined in Sec. 187.3.
Sec. 187.305 Application for title.
(a) Except as provided in Sec. 187.307, a State must require
application for a title within a specified period of time, not to
exceed 60 days, after a vessel is first purchased, ownership is
transferred, or there is a change in vessel data listed on the
certificate of title.
(b) A State must require disclosure of the existence of
indebtedness covered by any security agreement pertaining to the vessel
in its titling application form.
(c) The title application must include an entry for identification
of the State or country in which the vessel was last numbered or
titled, if applicable.
(d) A State must require that the title application include a
signed certification that statements made are true and correct to the
best of the applicant's knowledge, information and belief, under
penalty of perjury.
Sec. 187.307 Dealer and manufacturer provisions.
A State must include the following provisions for dealers or
manufacturers, building, buying, acquiring, or transferring vessels, in
that State.
(a) Dealers must be required to either report acquisition of a used
numbered vessel for resale, or, apply for certificate of title if such
vessel is required to be titled.
(b) Dealers must be allowed to apply for a certificate of title for
a new vessel acquired for resale.
(c) Dealers and manufacturers must be required to provide to the
vessel owner a certificate of origin, or other document, at the time of
delivery of a new vessel to initiate the chain of ownership.
(d) Dealers and manufacturers must be required to maintain for at
least 3 years a record of any vessel bought, sold, exchanged, or
received for sale or exchange, and have such records open for
inspection by the State.
Sec. 187.309 Transfer of title.
Except for transfers by operation of law such as inheritance, order
in bankruptcy, replevin, default judgment or execution sale, a State
must require that to complete the sale, assignment or transfer of a
titled vessel, a manufacturer, dealer or individual, must deliver the
vessel's certificate of title to the new owner.
Sec. 187.311 Transfer by operation of law.
A State must require a new owner to apply for a certificate of
title within a specified period of time, not to exceed 60 days, if
ownership of a vessel is transferred by operation of law, such as
inheritance, order in bankruptcy, replevin, default judgment or
execution sale, and to include an original or certified copy of the
legal transfer document along with the application.
Sec. 187.313 Title of another State.
A State must provide for honoring a current and valid title issued
by another State, or a Certificate of Ownership issued by the Coast
Guard, as proof of ownership for transfer or sale of a vessel, and for
applying for certificates of number or title in a new State of
principal operation.
Sec. 187.315 Surrender of title for purposes of documentation.
A State must deem a title issued by that State as invalid when a
vessel owner surrenders it to the U.S. Coast Guard for vessel
documentation purposes. Upon receipt of a title from the U.S. Coast
Guard, a State must accept the returned title for administrative
processing and cancellation.
Sec. 187.317 Information on a certificate of title.
(a) A State must specify the following information on a certificate
of title:
(1) Current owner(s) name(s).
(2) The address of the principal place of residence of an
individual owner, and the address of the principal place of business of
an owner that is not an individual, including zip code.
(3) Date of title issuance.
(4) Vessel description, including the vessel identification number
required by Sec. 187.05 of this part, name of manufacturer or model,
year built or the model year, vessel length, vessel type, drive or
propulsion type, vessel use, hull material and fuel type.
(5) Each lienholder's name and address.
(6) Recording or perfection date of new liens and original
recording date of any liens outstanding.
(b) Space must be provided on the certificate of title form for
assignment of interests in the vessel, with a certification that
statements provided on the title assignment are true and correct to the
best of the owner's knowledge, under penalty of perjury.
Sec. 187.319 Duplicate title.
(a) The term ``DUPLICATE'' must be clearly and permanently marked
on the face of a duplicate certificate.
(b) A State must require the holder of an original title, whether
the owner or lienholder, to apply for a duplicate title within a
specified period of time after, or after the discovery of, the loss,
theft, mutilation, or destruction of an original certificate of title;
provide information concerning the original certificate and the
circumstances of its loss, theft, mutilation, or destruction; and
surrender to the department any recovered original title or remains.
Sec. 187.321 Hull identification number (HIN) provisions.
A State must--
(a) Assign an HIN and require that it be affixed to an undocumented
vessel that does not have an HIN at the time of registration or
application for title after transfer of ownership or change of State of
principal operation;
(b) Assign an HIN to an undocumented vessel without an HIN at time
of title application and record the HIN on the certificate of title;
and
(c) Prohibit removal or alteration of an HIN without authorization
from the Commandant. [[Page 20319]]
Sec. 187.323 Perfection of security interests.
(a) A State must provide that a security interest is not valid
under State law unless perfected under procedures specified by the
State. If a vessel is already subject to a security interest when it is
brought into a State, the validity of the security interest is to be
determined by the law of the jurisdiction where the vessel was titled
when the security interest attached. The State must specify at least
the following procedures.
(1) The procedures by which a security interest is perfected,
including a requirement for the delivery of an application for new or
amended certificate of title.
(2) The procedures by which the date of perfection is determined.
(b) The perfection provisions required to be established under
paragraphs (a) and (b) of this section must not apply to--
(1) A lien given by statute or rule of law to a supplier of
services or materials for the vessel;
(2) A lien given by statute to the United States, a State, or a
political subdivision thereof; or
(3) Any lien arising out of an attachment of a vessel.
Sec. 187.325 Assignments.
A State must specify whether a security interest in a vessel titled
under the State titling system may be assigned and the procedures for
perfecting assignments.
Sec. 187.327 Satisfaction of security interests.
A State must specify evidence and information that lienholders are
required to submit to the State regarding satisfaction of a security
interest, and establish procedures and time limits for its submission.
Sec. 187.329 Forms.
A State must prescribe and provide the application, certificate of
title, notice of security interests, and other forms needed to comply
with the titling system provisions.
Sec. 187.331 Retaining information.
A State must retain information identifying the evidence used to
establish the accuracy of the information required for vessel titling
purposes for 3 years and make the information available to the Coast
Guard on request.
Appendix A to Part 187--Participating Authorities
The following States comply with the requirements for participating
in VIS:
[No States currently comply with the requirements for participating
in VIS.]
Appendix B to Part 187--Participating and Certified Titling Authorities
The following States both comply with the requirements for
participating in VIS and have a titling system certified to be in
compliance with the guidelines for State vessel titling systems:
[No States currently have a certified titling system and
participate in VIS.]
Dated: April 17, 1995.
J.C. Card,
Rear Admiral, U.S. Coast Guard, Chief, Office of Marine Safety,
Security and Environmental Protection.
[FR Doc. 95-10067 Filed 4-24-95; 8:45 am]
BILLING CODE 4910-14-P
