[Federal Register Volume 64, Number 150 (Thursday, August 5, 1999)]
[Rules and Regulations]
[Pages 42812-42816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20037]
[[Page 42811]]
_______________________________________________________________________
Part V
Department of Transportation
_______________________________________________________________________
Coast Guard
_______________________________________________________________________
46 CFR Parts 10 and 12
User Fees for Licenses, Certificates of Registry, and Merchant Mariner
Documents; Final Rule
Federal Register / Vol. 64, No. 150 / Thursday, August 5, 1999 /
Rules and Regulations
[[Page 42812]]
DEPARTMENT OF TRANSPORTATION
Coast Guard
46 CFR Parts 10 and 12
[USCG-1997-2799]
RIN 2115-AF49
User Fees for Licenses, Certificates of Registry, and Merchant
Mariner Documents
AGENCY: Coast Guard, DOT.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Coast Guard revises the user fees for its services
relating to the issuance of merchant mariner licenses, certificates of
registry, and merchant mariner documents. We based the revisions on the
most recent recalculation of program costs. We have changed the format
of the two CFR sections in which the fees are published from narrative
text to tables that are easier to use.
DATES: This final rule is effective October 4, 1999.
ADDRESSES: Documents as indicated in this preamble are available for
inspection or copying at the Docket Management Facility, U.S.
Department of Transportation (DOT), room PL-401, 400 Seventh Street
SW., Washington, DC 20590-0001, between 10 a.m. and 5 p.m., Monday
through Friday, except Federal holidays. The telephone number is 202-
366-9329. You may also electronically access the public docket for this
rulemaking on the Internet at http://dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: For information concerning the final
rule provisions, contact CDR Mark McEwen, Project Manager, U.S. Coast
Guard Headquarters, Office of Planning and Resources (G-MRP), telephone
202-267-0785. For questions on viewing material in the docket, contact
Dorothy Walker, Chief, Dockets, Department of Transportation, telephone
202-366-9329.
SUPPLEMENTARY INFORMATION:
Background
Regulatory History
The Coast Guard published a final rule entitled ``User Fees for
Marine Licensing, Certification of Registry and Merchant Mariner
Documentation'' in the Federal Register on March 19, 1993 (59 FR
15228). That rule established marine license, certificate of registry,
and merchant mariner document user fees in 46 CFR parts 10 and 12.
On September 27, 1994, we added user fees for renewals of
certificates of registry and MMDs to these fee schedules.
On April 1, 1998, the Coast Guard published a notice of proposed
rulemaking (NPRM) entitled ``User Fees for Licenses, Certificates of
Registry, and Merchant Mariner Documents'' in the Federal Register (63
FR 16024) [corrected April 20, 1998 at 63 FR 19580]. The NPRM proposed
revised fees based on our latest cost recalculations.
We allowed 180 days for mariners to review the NPRM and submit
written comments. During this time, we received 22 comments on a
variety of issues including one request for a series of public
meetings. Since the written comments addressed a wide variety of
issues, the Coast Guard did not find that public meetings were needed
to provide additional helpful information for the rulemaking and
determined that a public meeting would not be helpful to develop the
final rule.
Discussion of Comments and Changes
The following paragraphs discuss the comments received and explain
the changes we have made in the final rule.
Opposition to User Fees
Thirteen comments objected to all user fees in general, and
specifically to the user fees we proposed for merchant mariner licenses
and documents. Some comments agreed that the fees were necessary, but
objected to the amount of the proposed fees. Some comments stated that
the fee for the service exceeded the value of the service to the
recipient.
The Omnibus Budget Reconciliation Act of 1990 (the Act) amended 46
U.S.C. 2110 to require that the Coast Guard establish and collect fees
for Coast Guard services. Our fees are based on the cost to the Coast
Guard of providing the service.
Improve Service at RECs
We received four comments discussing the quality of service at the
17 Regional Examination Centers (REC). The comments suggested that the
Coast Guard lower costs and fees by reducing procedures and increasing
productivity at the RECs, and by allowing a third party to process
merchant mariner document (MMD) applications and certify merchant
mariners.
This rule does not include general changes to REC procedures or to
the licensing and documentation system. However, we have forwarded
these comments to the program managers and to the licensing
reengineering team for their consideration.
Five comments stated that they would prefer that the fees that were
paid would be used to improve service to the customer. Fees paid for
merchant mariner licensing and documentation (MMLD) services are
deposited in the general fund of the U.S. Treasury as offsetting
receipts of the Department of Transportation and ascribed to Coast
Guard activities. The Coast Guard cannot use fee receipts for any
purpose unless specifically authorized by Congress.
$17 Fee for Criminal Record Check
One comment stated that we should not charge the mariner a $17 fee
for a Federal Bureau of Investigation (FBI) criminal record check
because the mariner does not benefit from this service.
The United States Court of Appeals upheld the Coast Guard's
authority to charge the $17 fee for an FBI criminal record check
(Seafarers International Union of North America, et al. v. the United
States Coast Guard, 81 F.3d 185-186, (DC Cir. 1996)). We will start
collection of the $17 FBI criminal record check fee when this rule
becomes effective. The fee is included in the evaluation phase fee for
original documents.
Schedule for Recalculation and Implementation of Fees
One comment suggested that we should not recalculate the fees now
because we are considering privatizing certain licensing functions.
Another comment recommended that we increase the fees once every 10
years and ``adjust the fees for inflation only.'' One comment
recommended that we gradually implement the new fee schedule over a 4-
year period.
We must review and, if necessary, recalculate the licensing and
documentation user fees every 2 years as required by OMB Circular A-25.
Based on the recalculated costs, we may adjust the fees to recover the
costs of providing services. The Coast Guard's settlement with
Seafarers International Union (SIU) dated September 17, 1997, obligates
the Coast Guard to ``going forward with notice and comment rulemaking
as to its MMLD program and further commits that this rulemaking will
include the recalculation of its costs and reassessment of its fees.''
A phased implementation of fees is not practical because the fee
reviews required by OMB are too frequent to allow phased
implementation.
Four comments stated that the user fees are unfair because they are
an additional burden to mariners who must already pay other costs to
maintain their
[[Page 42813]]
licenses or advance their careers such as required courses, travel to
required courses, and travel to the RECs.
The Coast Guard is aware of these other professional costs and we
discussed them in the rulemaking that established the original fees on
March 19, 1993 (58 FR 15228). We have not increased the fees since that
time. This rulemaking is the first adjustment of the MMLD fees based on
a recalculation of the costs of providing MMLD services.
Paying for Multiple Transactions
Three comments suggested that multiple license, MMD, and
endorsement renewals for one individual should all expire
simultaneously at 5-year intervals. This would consolidate all
licensing fees into a single payment for multiple transactions once
every 5 years. Mariners have the option to simplify their renewal
process by renewing all their documents at the same time, putting them
all on the same 5-year expiration schedule. The fee schedule provides
savings to mariners when more than one document is processed using a
single application.
Recalculation
One comment stated that the ``recalculation is not a true cost
analysis or an economic time test study, but an exercise in justifying
the Congressional mandate to impose user fees.''
We did the recalculation to comply with a court order resulting
from litigation initiated by SIU. That case was settled after we
completed the recalculation. The court ordered the Coast Guard to
reassess its fees based on that recalculation. This rulemaking does so.
Regulatory Assessment
One comment criticized the draft regulatory assessment because the
same user fee would represent a greater percentage of the average
annual income for an able seaman than that of a third mate.
The fees in this rule are based only on the costs of providing each
type of licensing and documentation service.
The same comment stated that ``Coast Guard fees are also
significantly higher than fees imposed by the government for similar
federally mandated licenses and documents'' such as by the Federal
Aviation Administration and the Federal Communications Commission.
Unless the licensing systems of other agencies are the same as the
Coast Guard's licensing system, the fees for licensing services will be
different in each agency. Each agency has different direct and indirect
costs for providing the service and their fees are related to those
costs. Comparisons with other government or professional organizations
are useful for evaluating the potential cumulative impacts on affected
persons, but each agency's or organization's system is unique and each
agency's license has different requirements for obtaining
certification.
Estimate of Uninspected Small Passenger Vessels
One comment disagreed with the Coast Guard's estimate of only 480
uninspected small passenger vessels and stated that the number should
be much higher.
The Coast Guard agrees with the comment that the 480 figure is
incorrect and, upon further research, the Coast Guard estimates there
are approximately 30,000 uninspected passenger vessels that could have
license holders both owning and operating their vessels as small
businesses.
STCW
One comment suggested that the proposed fees, in addition to the
requirements of the implementation of the International Convention on
Standards, Training, Certification and Watchkeeping (STCW), ``* * *
would place an unacceptable financial burden upon individual mariners
and upon vessel operators.''
The June 26, 1997, STCW final rule (62 FR 34525) discussed the
costs associated with implementation of that rule. However, the costs
of providing STCW services were not part of our recalculation used for
merchant mariner license and documentation fees in this rule. The Coast
Guard has not charged fees for STCW certification services and this
rule does not establish fees for these services. We have added new
entries to tables 10.109 and 12.02-18 for processing STCW forms, and we
clearly state there is no fee charged for this activity.
Other Changes
We have changed Secs. 10.110 and 12.02-18 to allow for payment of
fees for all phases at the time of application or for payment at each
phase.
We are also adding language to both sections permitting RECs, as
they become equipped, to accept payment by credit card.
Regulatory Evaluation
This final rule is not a significant regulatory action under
section 3(f) of Executive Order 12866 and 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 (DOT)(44 FR 11040; February 26, 1979). A separate
regulatory assessment document, however, has been prepared for this
rule and is available in the docket for inspection or copying where
indicated under ADDRESSES.
The total annual revenues from direct user fees under subtitle II
of 46 U.S.C. 2110 does not exceed $23.1 million and the merchant marine
licensing and documentation (MMLD) revenues for fiscal year 1996 were
only $4.6 million. The revised fees will increase these revenues to an
estimated $9.3 million. This represents the maximum amount of revenue
that could be collected based on recalculated data and transaction
figures. The total revenue of direct user fees under subtitle II of 46
U.S.C. 2110 for fiscal year 1997 did not exceed $23.1 million, well
below the $100 million threshold that makes a rulemaking economically
significant.
This final rule will affect all mariners required to hold a license
or certificate of registry (COR) in accordance with 46 CFR part 10 or a
merchant mariner document (MMD) in accordance with 46 CFR part 12. Data
from the RECs (1994) indicate a grand total of 57,529 transactions,
including new license issuances as well as renewals.
The impact of the fees on the individual merchant mariner will
occur at the time fees are paid. At all other times during the validity
of the license, document, or certificate, if there are no document
transactions, no payments are made. The relative economic impact of the
fees on each mariner would vary depending upon the number and type of
documents held by the mariner and the mariner's ability to pay.
To assess the impact of the fees on the individual mariner, the
Coast Guard annualized fees over the period the documents were valid.
We determined that the document transactions a typical mariner may
require over the first 10 years he or she holds a license or document
will include renewals as well as raises in grade or endorsements. Our
analysis of the costs borne by the mariner covers a 10-year period.
Based on these assumptions, the annualized fee differences range
from a low of $0.80 for Upper Level Licenses to a high of $16.30 for a
Merchant Mariner's Document with qualified rating.
Summary
The Coast Guard found that the impact of the revisions will vary
with the financial situation of each individual mariner. However, the
data suggested the financial impact of the fee
[[Page 42814]]
revisions are not significantly different from the user and licensing
fees of other professions, both in terms of actual fees and as a
percent of salary. The impact of the fee revisions to the individual
merchant mariner occurs over the phases of the document transactions at
the time a fee is paid for each transaction phase. Absent further
transactions during the document's 5-year period of validity, no other
payments would be necessary until the renewal of the document.
The Coast Guard understands that the fee revisions may represent
only one of several expenses incurred by the individual mariner when
acquiring a Coast Guard license, COR, or MMD. Within the marine
professions and trades, the fees for MMLD transactions have essentially
become part of the overall cost associated with working in the
industry.
Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601-612), the Coast
Guard considered whether this rule will have a significant economic
impact on a substantial number of small entities. Small entities
include 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 fee revisions in this final rule will impact the individual
mariner. However, some license holders both own and operate their
vessels as small businesses. For those individuals, this final rule has
small entity implications. The annual impact of these fee revisions on
any sole proprietor will be less than $20. The Coast Guard estimates
that few sole proprietors work as towing vessel operators, offshore
supply vessel operators, and mobile offshore drilling unit operators.
However, we believe that there are a number of sole proprietors in the
small passenger vessel industry. As a business, sole proprietors can
claim their licensing and documentation user fees as a business expense
for tax purposes and many can pass along the expense of the licensing
fees to the consumer in the form of higher rates. Therefore, the Coast
Guard certifies under section 605(b) of the Regulatory Flexibility Act
(5 U.S.C. 601-612) that this final rule will not have a significant
economic impact on a substantial number of small entities.
Assistance for Small Entities
In accordance with section 213(a) of the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121), the Coast Guard
offered to assist small entities in understanding the rule so that they
could better evaluate its effects on them and participate in the
rulemaking process.
The Small Business and Agriculture Regulatory Enforcement Ombudsman
and 10 Regional Fairness Boards were established to receive comments
from small businesses about Federal agency enforcement actions. The
Ombudsman will annually evaluate the enforcement activities and rate
each agency's responsiveness to small business. If you wish to comment
on the enforcement action of the Coast Guard, call 1-888-REG-FAIR (1-
888-734-3247).
Collection of Information
This final rule does not provide for a collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
Federalism
The Coast Guard has analyzed this final rule under the principles
and criteria contained in Executive Order 12612 and has determined that
this final rule does not have sufficient implications for federalism to
warrant the preparation of a Federalism Assessment.
Unfunded Mandates
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (Pub.
L. 104-4, 109 Stat. 48) requires Federal agencies to assess the effects
of certain regulatory actions on State, local, and tribal governments,
and the private sector. The UMRA requires a written statement of
economic and regulatory alternatives for rules that contain Federal
mandates. A ``Federal mandate'' is a new or additional enforceable duty
imposed on any State, local, or tribal government, or the private
sector. If any Federal mandate causes those entities to spend, in the
aggregate, $100 million or more in any one year, the UMRA analysis is
required. This final rule will not impose Federal mandates on any
State, local, or tribal governments, or the private sector.
Environment
The Coast Guard considered the environmental impact of this rule
and concluded that, under figure 2-1, paragraph (34)(a) of Commandant
Instruction M16475.1C, this final rule is categorically excluded from
further environmental documentation. A ``Categorical Exclusion
Determination'' is available in the docket for inspection or copying
where indicated under ADDRESSES.
Other Executive Orders on the Regulatory Process
In addition to the statutes and executive orders already addressed
in this preamble, the Coast Guard considered the following executive
orders in developing this final rule and reached the following
conclusions--
E.O. 12630, Governmental Actions and Interference With
Constitutionally Protected Property Rights
This rule will not effect a taking of private property or otherwise
have taking implications under this Order.
E.O. 12875, Enhancing the Intergovernmental Partnership
This rule will not impose, on any State, local, or tribal
government, a mandate that is not required by statute and that is not
funded by the Federal government.
E.O. 12988, Civil Justice Reform
This rule meets the applicable standards in sections 3(a) and
3(b)(2) of this Order to minimize litigation, eliminate ambiguity, and
reduce burden.
E.O. 13045, Protection of Children From Environmental Health Risks
and Safety Risks
This rule is not an economically significant rule and does not
concern an environmental risk to safety disproportionately affecting
children.
List of Subjects
46 CFR Part 10
Fees, Reporting and recordkeeping requirements, Schools, Seamen.
46 CFR Part 12
Fees, Reporting and recordkeeping requirements, Seamen.
For the reasons discussed in the preamble, the Coast Guard amends
46 CFR parts 10 and 12 as follows:
PART 10--LICENSING OF MARITIME PERSONNEL
1. The authority citation for part 10 continues to read as follows:
Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 2103, 2110; 46 U.S.C.
Chapter 71; 46 U.S.C. 7502, 7505, 7701; 49 CFR 1.45, 1.46.
Section 10.107 is also issued under the authority of 44 U.S.C.
3507.
2. Revise Sec. 10.109 to read as follows:
Sec. 10.109 Fees.
Use table 10.109 to determine the fees that you must pay for
license and certificate of registry activities in this part.
[[Page 42815]]
Table 10.109--Fees
----------------------------------------------------------------------------------------------------------------
And you need...
-----------------------------------------------------------
If you apply for... Evaluation Then Examination Then Issuance Then the
the fee is: the fee is: fee is:
----------------------------------------------------------------------------------------------------------------
License:
Original upper level............................ $115 $110 $45
Original lower level............................ 115 95 45
Raise of grade.................................. 100 45 45
Modification or removal of limitation or scope.. 50 45 45
Endorsement..................................... 50 45 45
Renewal......................................... 50 45 45
Renewal for continuity purposes................. n/a n/a 45
Reissue, Replacement, and Duplicate............. n/a n/a \1\ 45
Radio Officer License:
Original........................................ 65 n/a 45
Endorsement..................................... 50 45 45
Renewal......................................... 50 n/a 45
Renewal for continuity purposes................. n/a n/a 45
Reissue, Replacement, and Duplicate............. n/a n/a \1\ 45
Certificate of Registry:
Original (MMD holder)........................... 105 n/a 45
Original (MMD applicant)........................ 120 n/a 45
Renewal......................................... 50 n/a 45
Renewal for continuity purposes................. n/a n/a 45
Endorsement..................................... n/a n/a 45
Reissue, Replacement, and Duplicate............. n/a n/a \1\ 45
STCW Certification:
Original........................................ (\2\) (\2\) (\2\)
Renewal......................................... (\2\) (\2\) (\2\)
----------------------------------------------------------------------------------------------------------------
\1\ Duplicate for document lost as result of marine casualty--No Fee.
\2\ No fee.
3. Revise Sec. 10.110 to read as follows:
Sec. 10.110 Fee payment procedures.
(a) You may pay--
(1) All fees required by this section when you submit your
application; or
(2) A fee for each phase at the following times:
(i) An evaluation fee when you submit your application.
(ii) An examination fee before you take the first examination
section.
(iii) An issuance fee before you receive your license or
certificate of registry.
(b) If you take your examination someplace other than a Regional
Examination Center (REC), you must pay the examination fee to the REC
at least one week before your scheduled examination date.
(c) Unless the REC provides additional payment options, your fees
may be paid as follows:
(1) Your fee payment must be for the exact amount.
(2) Make your check or money order payable to the U.S. Coast Guard,
and write your social security number on the front of each check or
money order.
(3) If you pay by mail, you must use either a check or money order.
(4) If you pay in person, you may pay with cash, check, or money
order at Coast Guard units where Regional Examination Centers are
located.
(d) Unless otherwise specified in this part, when two or more
documents are processed on the same application--
(1) Evaluation fees. If a certificate of registry transaction is
processed on the same application as a license transaction, only the
license evaluation fee will be charged; and
(2) Issuance fees. A separate issuance fee will be charged for each
document issued.
Sec. 10.209 [Amended]
4. In Sec. 10.209(e)(4), remove the symbols ``Secs. '' and add, in
their place, ``the tables in Secs. ''.
Secs. 10.205, 10.207, 10.209, 10.217, and 10.219 [Amended]
5. In addition to the amendments set forth above, in 46 CFR part
10, remove the word ``Sec. 10.109'' and add, in its place, the words
``table 10.109 in Sec. 10.109'' in the following places:
(a) Section 10.205(a);
(b) Section 10.207(a);
(c) Section 10.209(a)(1), (e)(3)(i)(A), and (f)(1);
(d) Section 10.217(a)(1) and (a)(2); and
(e) Section 10.219(c).
PART 12--CERTIFICATION OF SEAMEN
6. The authority citation for part 12 continues to read as follows:
Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 2103, 2110, 7301,
7302, 7503, 7505, 7701; 49 CFR 1.46.
7. Revise Sec. 12.02-18 to read as follows:
Sec. 12.02-18 Fees.
(a) Use table 12.02-18 to determine the fees that you must pay for
merchant mariner document activities in this part.
(b) Unless otherwise specified in this part, when two documents are
processed on the same application--
(1) Evaluation fees. If a merchant mariner document transaction is
processed on the same application as a license or certificate of
registry transaction, only the license or certificate of registry
evaluation fee will be charged;
(2) Examination fees. If a license examination under part 10 also
fulfills the examination requirements in this part for a merchant
mariner document, only the fee for the license examination is charged;
and
(3) Issuance fees. A separate issuance fee will be charged for each
document issued.
(c) You may pay--
(1) All fees required by this section when you submit your
application; or
(2) A fee for each phase at the following times:
(i) An evaluation fee when you submit your application.
[[Page 42816]]
(ii) An examination fee before you take the first examination
section.
(iii) An issuance fee before you receive your merchant mariner
document.
(d) If you take your examination someplace other than a Regional
Examination Center (REC), you must pay the examination fee to the REC
at least one week before your scheduled examination date.
(e) Unless the REC provides additional payment options, your fees
may be paid as follows:
(1) Your fee payment must be for the exact amount.
(2) Make your check or money order payable to the U.S. Coast Guard,
and write your social security number on the front of each check or
money order.
(3) If you pay by mail, you must use either a check or money order.
(4) If you pay in person, you may pay with cash, check, or money
order at Coast Guard units where Regional Examination Centers are
located.
(f) The Coast Guard may assess charges for collecting delinquent
payments or returned checks. The Coast Guard will not provide
documentation services to a mariner who owes money for documentation
services previously provided.
Table 12.02-18--Fees
----------------------------------------------------------------------------------------------------------------
And you need...
-----------------------------------------------------------
If you apply for... Evaluation Then Examination Then Issuance Then the
the fee is: the fee is: fee is:
----------------------------------------------------------------------------------------------------------------
Merchant Mariner Document:
Original without endorsement.................... $110 n/a $45
Original with endorsement....................... 110 140 45
Endorsement for qualified rating................ 95 140 45
Upgrade or Raise in Grade....................... 95 140 45
Renewal without endorsement for qualified rating 50 n/a 45
Renewal with endorsement for qualified rating... 50 45 45
Renewal for continuity purposes................. n/a n/a 45
Reissue, Replacement, and Duplicate............. n/a n/a \1\ 45
STCW Certification:
Original........................................ (2) (2) (2)
Renewal......................................... (2) (2) (2)
Other Transactions:
Duplicate Continuous Discharge Book............. n/a n/a 10
Duplicate record of sea service................. n/a n/a 10
Copy of certificate of discharge................ n/a n/a 10
----------------------------------------------------------------------------------------------------------------
\1\ Duplicate for document lost as result of marine casualty--No Fee.
\2\ No Fee.
Sec. 12.02-27 [Amended]
7. In Sec. 12.02-27(e)(4) and (f), remove the symbols ``Secs. ''
and add, in their place, ``tables in Secs. ''.
Secs. 12.02-23 and 12.02-27 [Amended]
8. In addition to the amendments set forth above, in 46 CFR part
12, remove the word ``Sec. 12.02-18'' and add, in its place, the words
``table 12.02-18 in Sec. 12.02-18'' in the following places:
(a) Section 12.02-23(b) and (c)(2); and
(b) Section 12.02-27(a)(1) and (e)(3)(i)(A).
Dated: July 27, 1999.
R.C. North,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety
and Environmental Protection.
[FR Doc. 99-20037 Filed 8-4-99; 8:45 am]
BILLING CODE 4910-15-P
