[Federal Register Volume 67, Number 94 (Wednesday, May 15, 2002)]
[Rules and Regulations]
[Pages 34755-34807]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11060]



[[Page 34755]]

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Part II





Department of Transportation





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Coast Guard



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33 CFR Parts 175, 177, et al.

46 CFR Parts 2, 10, et al.



Safety of Uninspected Passenger Vessels Under the Passenger Vessel 
Safety Act of 1993 (PVSA); Final Rule

Federal Register / Vol. 67, No. 94 / Wednesday, May 15, 2002 / Rules 
and Regulations

[[Page 34756]]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Parts 175, 177, 179, 181, and 183

46 CFR Parts 2, 10, 15, 24, 25, 26, 30, 70, 90, 114, 169, 175, 188, 
and 199

[USCG-1999-5040]
RIN 2115-AF69


Safety of Uninspected Passenger Vessels Under the Passenger 
Vessel Safety Act of 1993 (PVSA)

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: The Coast Guard establishes this final rule to implement 
safety measures for uninspected passenger vessels under the Passenger 
Vessel Safety Act of 1993 (PVSA). This Act authorizes the Coast Guard 
to amend operating and equipment guidelines for uninspected passenger 
vessels over 100 gross tons, carrying 12 or fewer passengers for hire. 
These regulations will implement this new class of uninspected 
passenger vessel, provide for the issuance of special permits to 
uninspected vessels participating in a Marine Event of National 
Significance (e.g., OPSAIL 2000 and Tall Ships 2000), and develop 
specific manning, structural fire protection, operating, and equipment 
requirements for a limited fleet of PVSA-exempted vessels.

DATES: This final rule is effective June 14, 2002.

ADDRESSES: Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-1999-5040 and are available for inspection or 
copying at the Docket Management Facility, U.S. Department of 
Transportation, room PL-401, 400 Seventh Street SW., Washington, DC, 
between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays. You may also find this docket on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call Michael A. Jendrossek, Office of Operating and Environmental 
Standards (G-MSO-2), Coast Guard, telephone 202-267-0836. If you have 
questions on viewing the docket, call Dorothy Beard, Chief, Dockets, 
Department of Transportation, telephone 202-366-5149.

SUPPLEMENTARY INFORMATION:

Regulatory History

    On March 2, 2000, we published a notice of proposed rulemaking 
(NPRM) entitled ``Safety of Uninspected Passenger Vessels Under the 
Passenger Vessel Safety Act of 1993 (PVSA)'' in the Federal Register 
(65 FR 11410). In order to prepare for the Year 2000's millennium 
sailing events, a 30-day comment period was provided for the changes 
proposed to 46 CFR 26.03-8, and an interim rule (IR) amending that 
section was published April 28, 2000 (65 FR 24878). Other changes 
proposed by the March 2, 2000 NPRM were subject to a 90-day comment 
period. We received six letters commenting on the proposed rule. No 
public hearing was requested and none was held.

Background and Purpose

    We discussed the background and purpose of this rulemaking in 
fuller detail in the March 2, 2000 NPRM (65 FR 11410). Briefly, the 
Passenger Vessel Safety Act of 1993 (PVSA) (Pub. L. 103-206, title V, 
Dec. 20, 1993, 107 Stat. 2439) dealt with subjecting some formerly 
chartered vessels to Coast Guard inspection.
    The PVSA also made several changes to the laws for vessels that 
carry passengers.
    First, the PVSA required a vessel of less than 100 gross tons to be 
inspected as a small passenger vessel if it is--
     Carrying more than six passengers, including at least one 
passenger-for-hire;
     Chartered with crew provided or specified by the owner or 
owner's representative and carrying more than six passengers;
     Chartered with no crew provided or specified by the owner 
or the owner's representative and carrying more than 12 passengers; or
     A submersible vessel carrying at least one passenger-for-
hire.
    Second, the PVSA provided an exemption for certain vessels that 
were unable to meet inspection criteria. Sixteen vessels applied to the 
Coast Guard for exemptions, and four exemptions were granted. The PVSA 
authorized the Coast Guard to develop specific operating and equipment 
requirements for these vessels.
    Third, the PVSA broadened the definition of uninspected passenger 
vessel to include vessels of at least 100 gross tons carrying not more 
than 12 passengers, including at least one passenger-for-hire; or 
vessels that are chartered with crew provided or specified by the 
owners or the owners' representatives and carrying not more than 12 
passengers. These vessels are commonly referred to as 12-pack vessels. 
Vessels of at least 100 gross tons that carry more than 12 passengers, 
at least one of whom is for hire, must be inspected as passenger 
vessels under Code of Federal Regulations (CFR) Title 46, chapter I, 
subchapter H.
    Fourth, the PVSA directed the Coast Guard to develop regulations 
necessary to implement equipment, construction, and operating 
requirements for uninspected passenger vessels operating as 12-pack 
vessels.
    Fifth, the PVSA authorized the Coast Guard to develop regulations 
to issue special permits to uninspected vessels, thus, broadening 
authority from the now standard excursion permit for inspected vessels 
to include special permits for uninspected vessels. Special permits may 
be issued to an uninspected passenger vessel for charitable purposes up 
to a maximum of four times in a 12-month period. Special permits may 
also be issued to the owner or operator of a vessel that is a 
registered participant in an event that the Commandant, U.S. Coast 
Guard, declares to be a Marine Event of National Significance.

Discussion of Comments and Changes

    The March 2, 2000 NPRM details the specific changes made by this 
rulemaking. We received six letters in response to the NPRM (excluding 
those relating to 46 CFR 26.03-8, which were discussed in the interim 
rule published April 28, 2000, at 65 FR 24878). The discussion below is 
limited to a review of those public comments, along with our response 
to each, and a discussion of the specific changes now being made in 
addition to or instead of changes proposed in the NPRM.
    (1) One comment stated that we should establish a user fee for the 
issuance of excursion permits per 46 U.S.C. 2110. We already collect 
inspection-service user fees from inspected passenger vessels and do 
not have the authority to establish a new user fee category.
    (2) One comment stated that we failed to account for the full costs 
of equipping the 406 MHz EPIRB, including battery replacement and 
additional ``false alert'' responses due to the additional units in 
service. EPIRB battery replacement costs were included in the Analysis 
Documentation, Appendix 6, supporting the March 2, 2000 NPRM (This 
documentation is available in the docket for this rulemaking at http://dms.dot.gov.). We do not agree that there is any tangible false alert 
cost associated with additional EPIRBs. Satellite EPIRBs are required 
to be registered. In addition, their digital message includes beacon 
identification.

[[Page 34757]]

With this information, the signaling EPIRB can quickly identify the 
distressed vessel and its owner. A radio or telephone call will 
normally confirm a false alarm. If an EPIRB on a docked, unattended 
vessel malfunctions, the COSPAS-SARSAT satellite system makes locating 
it relatively simple. False alerts from interference sources are not a 
problem on the 406 MHz satellite frequency, as they were with the old 
121.5 MHz frequency. The false alert rate from 406 MHz satellite EPIRBs 
is low, and any added load created by this rulemaking can be handled 
without additional resources.
    (3) Two comments state that we lack authority to modify the clear 
provisions of 46 U.S.C. 8102 and 46 U.S.C. 8104, regarding cabin 
watchmen and watch standing. Section 511 of the PVSA gives us the 
necessary authority to establish different operating and equipment 
requirements for uninspected passenger vessels over 100 gross tons 
carrying 12 or fewer passengers.
    (4) One comment says we should clarify the provisions of proposed 
46 CFR 26.03-6(b)(2) regarding the deduction of vessel operating 
expenses from ``charitable donations'' prior to their disbursement. We 
do not have the authority to allow any retention of these proceeds. The 
Internal Revenue Service (IRS) should be consulted regarding any tax 
relief that may be available. If such vessel operating expenses are 
allowed by the IRS as tax deductions, the Coast Guard will not view 
this as a consideration when determining whether a vessel is carrying 
passengers for hire.
    (5) One comment asks why the requirement for signaling lights is 
limited to vessels on an international voyage when chapter V of SOLAS 
is not so limited. Our proposed requirement reflects the wording of 
SOLAS Chapter V, regulation 11, which does include such a limitation.
    (6) One comment stresses the importance of getting disaster 
survivors out of the water as quickly as possible, and asks us to 
delete buoyant apparatuses and life floats from proposed 46 CFR 25.25-
17. We agree and will make this change. We believe that because these 
vessels are uninspected and for the most part capable of extended ocean 
voyages, a higher level of safety equipment is required.
    (7) One comment suggests we add a basic definition and clarifying 
language for bareboat charters. The comment states that this is 
necessary to help alleviate confusion over the types of arrangements 
made in contracting a vessel and its manner of use. We agree with this 
comment and will add the definition of demise charter to 46 CFR 
169.107.
    (8) One comment expresses concern that the change to 46 CFR 15.905 
would inadvertently penalize a large segment of licensed mariners by 
restricting them to the tonnage limit of their license (e.g., a master 
of inspected vessels up to 50 gross tons would be limited to operating 
a 50 gross ton uninspected passenger vessel). We agree with this 
comment and will incorporate clarifying language into 46 CFR 15.905.
    (9) One comment suggests we are perpetuating the carrying of 
passengers on uninspected barges that were designed solely for the 
carriage of bulk cargoes or for use as work platforms. We have 
investigated past allegations of uninspected barges carrying passengers 
and found that these operations were purely voluntary. No consideration 
flowed to the operators involved. Vessel operations of this type are 
not regulated by the Coast Guard as commercial operations and, 
therefore, are not subject to the requirements of the PVSA. We are 
committed to ensuring that all vessels that carry passengers comply 
with the laws and regulations that apply to their specific operations.
    (10) One comment expresses concern that 12-pack vessels will be 
required to comply with load line requirements, where applicable. 
Noting the expense and burden of compliance, the comment asks us to 
establish alternative criteria to make load line assignment less 
difficult and more cost effective. We disagree with this comment. As 
stated in the NPRM, the load line is a safety device that verifies, 
through annual surveys, a vessel's seaworthiness. This is an important 
factor for 12 pack vessels that are capable of trans-oceanic 
intercontinental voyages.
    (11) One comment questions the application of 46 CFR, part 175 to 
vessels operating under an exemption afforded in the PVSA. The comment 
states that an exempt vessel presently operates under the scrutiny of 
the Coast Guard and, therefore, has an existing Certificate of 
Inspection (COI) reflecting its seaworthiness. We are adding 46 CFR 
175.118 so that the provisions of 46 CFR, chapter I, subchapter T apply 
to PVSA-exempt vessels. This is necessary because these vessels, all of 
which are over 100 gross tons, currently are not capable of meeting the 
more stringent requirements of 46 CFR, chapter I, subchapter H.
    (12) One comment asks if the regulation for special permits for 
charitable fundraising activities applies to a non-profit organization 
that owns its own vessel. That regulation applies to any vessel owner/
operator, including a non-profit organization.
    (13) One comment asks how we can enforce the requirement for a 
voyage plan if a plan is transmitted verbally from the vessel to the 
berthing location or managing representative. Under 46 CFR 26.03-9, the 
required information must be provided on request, making it prudent for 
responsible persons to record the information to ensure its 
availability if needed.
    (14) Although not prompted by public comment, we have revised 
several other proposed changes made in the NPRM. These nonsubstantive 
revisions are explained below:
     In Sec. 10.466, Requirements for licenses as apprentice 
mate (steersman) of towing vessels, we revised this section in order to 
upgrade licensing requirements. In an action unrelated to this 
rulemaking, Sec. 10.466 was redesignated Sec. 10.467 after we published 
the NPRM. We have decided to change the section heading of new 
Sec. 10.467 by adding the phrase ``of less than 100 gross tons.'' 
However, we will make no other changes to that section. Instead, the 
upgrade in licensing requirements originally proposed for old 
Sec. 10.466/new Sec. 10.467 now is made in 46 CFR 15.605, using 
slightly different but substantively unchanged language.
     In Sec. 15.301, Definitions of terms used in this part, we 
added the definition of ``operate, operating, or operation'' for 
clarity.
     In Sec. 24.10-1, we rewrote the definition of 
``international voyage'' (which was previously located at Sec. 24.10-
13) to match the definition of that term in 46 CFR 175.400.
     In Sec. 70.10-1, we rewrote the definition of ``vessel'' 
(which was previously located at Sec. 70.10-45) for clarity.
     In Sec. 169.107, Definitions, we reformatted the section 
and rewrote the definition of ``sailing instruction'' to conform to the 
reformatting.

Regulatory Evaluation

    This rule is not a ``significant regulatory action'' under section 
3(f) of Executive Order 12866, Regulatory Planning and Review, and does 
not require an assessment of potential costs and benefits under section 
6(a)(3) of that Order. The Office of Management and Budget has not 
reviewed it under that Order. It is not ``significant'' under the 
regulatory policies and procedures of the Department of Transportation 
(DOT)(44 FR 11040, February 26, 1979).
    A final Regulatory Evaluation under paragraph 10e of the regulatory 
policies and procedures of DOT is available in

[[Page 34758]]

the docket as indicated under ADDRESSES.
    A summary of the Regulatory Evaluation follows: Each vessel greater 
than 100 gross tons, which is currently operating as an uninspected 
passenger vessel and carries 12 or fewer passengers, has to obtain: (1) 
An Emergency Position Indicating Radio Beacon (EPIRB), (2) enough 
survival craft for all persons onboard, and (3) an operator with the 
appropriate master-level license. The Coast Guard estimates that all 
vessels operating in this type of trade are already in compliance with 
the proposed survival craft and licensing requirements; however, they 
are not in compliance with the EPIRB requirement. The use of EPIRBs 
will allow the Coast Guard to respond quicker to incidents by providing 
the location of the casualty and additional, relevant information prior 
to the arrival of the rescue team. The 10-year (2001 to 2010) present 
value cost of complying with the EPIRB requirement is estimated to be 
$100,121.
    This rulemaking creates a class of vessel (i.e., 12 pack) not 
previously in existence. If no vessel owner decides to enter this new 
class of vessel, the cost of this component of the rulemaking would be 
$0, as it is not a requirement for any existing vessel to enter this 
class. However, the Coast Guard estimates that the owners of 570 
vessels will choose to enter this class of vessel. The 10-year present 
value cost of this non-mandatory component is $12,882,008. The Coast 
Guard considers the cost to be non-mandatory because owners are not 
required to enter this new class of vessel.
    Additionally, this rule affects uninspected passenger vessels 
participating in Marine Events of National Significance. The Coast 
Guard will inspect the vessels not possessing the appropriate 
certification and issue special permits that allow these vessels to 
carry passengers during the event. Vessel owners will have an 
information request burden as they must apply for permits. The 10-year, 
present value cost of this information collection request is $2,064. As 
participation in these events is not a requirement of the rulemaking, 
these costs are considered non-mandatory. The intent of this 
requirement is to provide a safer marine environment at Marine Events 
of National Significance. While there have been no notable problems at 
such past events, the Coast Guard is acting proactively to reduce the 
risk of marine casualties.
    In summary, the total cost of this rulemaking is attributed to the 
requirement to install and maintain EPIRBs on vessels. The 10-year 
present value cost of this requirement is $100,121.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this rule would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000. No 
comments were received to our previous certification in the NPRM 
regarding the regulatory flexibility impact.
    The only type of small entity that will be affected by this 
rulemaking is small business. The size standards for the relevant North 
American Industry Classification System (NAICS) codes (Deep Sea 
Passenger Transportation, 483112; Coastal and Great Lakes Passenger 
Transportation, 483114; Inland Water Passenger Transportation, 483212; 
and Scenic and Sightseeing Transportation, Water, 48721) consider 
enterprises with 500 or fewer employees to be small businesses, making 
practically all owners in the 12-pack industry small entities. However, 
the only mandatory cost in this rulemaking is the cost of an EPIRB. We 
do not expect that owners of vessels of this size and type, whose 
annual revenue ranges from about $100 thousand to about $5 million, 
will consider an additional cost of $1,000 per EPIRB to be significant. 
In addition, since the useful life of an EPIRB is indefinite, the 
annualized cost for this item over the 10-year period of analysis is 
$110, which is furthermore likely to be insignificant. The rule also 
has a 6-month phase-in period for owners to comply with the carriage of 
an EPIRB onboard.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this final rule will not have a significant economic impact on a 
substantial number of small entities.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we offered to assist small 
entities in understanding this rule so that they can better evaluate 
its effects on them and participate in the rulemaking.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247).

Collection of Information

    This rule calls for a new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). As required in 
46 CFR 26.03-8, an owner, operator, or agent of a vessel that is 
registered as a participant in a Marine Event of National Significance 
may submit an application for special permit (form CG-950A) to carry 
passengers-for-hire for the duration of the event. The application will 
be used to initiate the inspection process to determine whether a 
vessel is properly equipped to be granted the special permit.
    No comments were received regarding the collection of information 
burden.
    This rule amends an existing Office of Management and Budget (OMB) 
approved collection, OMB Control Number 2115-0133, that expires on 
April 30, 2003. As required by 44 U.S.C. 3507(d), we submitted a copy 
of this rule to the Office of Management and Budget (OMB) for its 
review of the collection of information. OMB has not yet approved the 
changes to this collection. We will publish an additional notice when 
they do. Until we publish its approval, you are not required to respond 
to a collection of information unless it displays a currently valid OMB 
control number.

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them.
    We have analyzed this rule and have determined that it does not 
have federalism implications under that Order because it regulates with 
respect to categories, (construction, equipment and operation of 
certain uninspected passenger vessels) in such a comprehensive manner, 
that State laws or regulations on the same subjects are precluded. Any 
such state laws or regulations would necessarily either conflict with, 
or frustrate the purpose of this rule. See, Ray v. Atlantic Richfield 
Co. 435 U.S. 151 (1978); and United States and Intertanko v. Locke, 529 
U.S. 89 (2000).

[[Page 34759]]

Unfunded Mandates Reform Act

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

Taking of Private Property

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

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

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

Indian Tribal Governments

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

Energy Effects

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

Environment

    We have considered the environmental impact of this rule and 
concluded that, under figure 2-1, paragraph (34)(c), (d), and (e) of 
Commandant Instruction M16475.lD, this rule is categorically excluded 
from further environmental documentation. This rule will not result in 
any significant cumulative impact on the human environment; any 
substantial controversy or substantial change to existing environmental 
conditions; any impact, which is more than minimal, on properties 
protected under 4(f) of the DOT Act, as superseded by Public Law 97-449 
and Section 106 of the National Historic Preservation Act; or any 
inconsistencies with any Federal, State, or local laws or 
administrative determinations relating to the environment. A 
``Categorical Exclusion Determination'' is available in the docket 
where indicated under ADDRESSES.

List of Subjects

33 CFR Part 175

    Marine safety.

33 CFR Part 177

    Marine safety.

33 CFR Part 179

    Marine safety, Reporting and recordkeeping requirements.

33 CFR Part 181

    Labeling, Marine safety, Reporting and recordkeeping requirements.

33 CFR Part 183

    Marine safety.

46 CFR Part 2

    Marine safety, Reporting and recordkeeping requirements, Vessels.

46 CFR Part 10

    Penalties, Reporting and recordkeeping requirements, Schools, 
Seamen.

46 CFR Part 15

    Reporting and recordkeeping requirements, Seamen, Vessels.

46 CFR Part 24

    Marine safety.

46 CFR Part 25

    Fire prevention, Marine safety, Reporting and recordkeeping 
requirements.

46 CFR Part 26

    Marine safety, Penalties, Reporting and recordkeeping requirements.

46 CFR Part 30

    Cargo vessels, Foreign relations, Hazardous materials 
transportation, Penalties, Reporting and recordkeeping requirements, 
Seamen.

46 CFR Part 70

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements.

46 CFR Part 90

    Cargo vessels, Marine safety.

46 CFR Part 114

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements.

46 CFR Part 169

    Fire prevention, Marine safety, Reporting and recordkeeping 
requirements, Schools, Vessels.

46 CFR Part 175

    Marine safety, Passenger vessels, Reporting and recordkeeping 
requirements.

46 CFR Part 188

    Marine safety, Oceanographic research vessels.

46 CFR Part 199

    Cargo vessels, Marine safety, Oil and gas exploration, Passenger 
vessels, Reporting and recordkeeping requirements.


    For the reasons discussed in the preamble, the Coast Guard amends 
33 CFR parts 175, 177, 179, 181, and 183 as well as 46 CFR parts 2, 10, 
15, 24, 25, 26, 30, 70, 90, 114, 169, 175, 188, and 199 as follows:

33 CFR Chapter I

PART 175--EQUIPMENT REQUIREMENTS

    1. The authority citation for part 175 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302; Pub. L. 103-206, 107 Stat. 2439; 49 
CFR 1.46.


    2. In Sec. 175.3, revise the definition of the following terms, in 
alphabetical order, to read as follows:


Sec. 175.3  Definitions.

* * * * *
    Boat means any vessel--
    (1) Manufactured or used primarily for noncommercial use;
    (2) Leased, rented, or chartered to another for the latter's 
noncommercial use; or

[[Page 34760]]

    (3) Operated as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C.
    Passenger means an individual carried on a vessel except--
    (1) The owner or an individual representative of the owner or, in 
the case of a vessel chartered without a crew, an individual charterer, 
or an individual representative of the charterer;
    (2) The master or operator of a recreational vessel; or
    (3) A member of the crew engaged in the business of the vessel, who 
has not contributed consideration for carriage, and who is paid for 
onboard services.
* * * * *
    Recreational vessel means any vessel being manufactured or operated 
primarily for pleasure, or leased, rented, or chartered to another for 
the latter's pleasure. It does not include a vessel engaged in the 
carriage of passengers-for-hire as defined in 46 CFR chapter I, 
subchapter C, or in other subchapters of this title.
* * * * *

    3. Revise Sec. 175.110(a) to read as follows:


Sec. 175.110  Visual distress signals required.

    (a) No person may use a boat 16 feet or more in length, or any boat 
operating as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C, unless visual distress 
signals selected from the list in Sec. 175.130 or the alternatives in 
Sec. 175.135, in the number required, are onboard. Devices suitable for 
day use and devices suitable for night use, or devices suitable for 
both day and night use, must be carried.
* * * * *

PART 177--CORRECTION OF ESPECIALLY HAZARDOUS CONDITIONS

    4. The authority citation for part 177 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302, 4311; Pub. L. 103-206, 107 Stat. 
2439; 49 CFR 1.45 and 1.46.


    5. Revise Sec. 177.03(b) to read as follows:


Sec. 177.03  Definitions.

* * * * *
    (b) Boat means any vessel--
    (1) Manufactured or used primarily for noncommercial use;
    (2) Leased, rented, or chartered to another for the latter's 
noncommercial use; or
    (3) Operated as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C.
* * * * *

PART 179--DEFECT NOTIFICATION

    6. The authority citation for part 179 is revised to read as 
follows:

    Authority: 43 U.S.C. 1333; 46 U.S.C. 4302, 4307, 4310, and 4311; 
Pub. L 103-206, 107 Stat. 2439; 49 CFR 1.46.


    7. In Sec. 179.03, revise the definition of the term ``Boat'' to 
read as follows:


Sec. 179.03  Definitions.

* * * * *
    Boat means any vessel--
    (1) Manufactured or used primarily for noncommercial use;
    (2) Leased, rented, or chartered to another for the latter's 
noncommercial use; or
    (3) Operated as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C.
* * * * *

PART 181--MANUFACTURER REQUIREMENTS

    8. The authority citation for part 181 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302 and 4310; Pub.L 103-206, 107 Stat. 
2439; 49 CFR 1.46.


    9. In Sec. 181.3, revise the definition of the term ``Boat'' to 
read as follows:


Sec. 181.3  Definitions.

* * * * *
    Boat means any vessel--
    (1) Manufactured or used primarily for noncommercial use;
    (2) Leased, rented, or chartered to another for the latter's 
noncommercial use; or
    (3) Operated as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C.
* * * * *

PART 183--BOATS AND ASSOCIATED EQUIPMENT

    10. The authority citation for part 183 is revised to read as 
follows:

    Authority: 46 U.S.C. 4302; Pub. L 103-206, 107 Stat. 2439; 49 
CFR 1.46.


    11. In Sec. 183.3, revise the definition of the term ``Boat'' to 
read as follows:


Sec. 183.3  Definitions.

* * * * *
    Boat means any vessel--
    (1) Manufactured or used primarily for noncommercial use;
    (2) Leased, rented, or chartered to another for the latter's 
noncommercial use; or
    (3) Operated as an uninspected passenger vessel subject to the 
requirements of 46 CFR chapter I, subchapter C.
* * * * *

46 CFR Chapter I

PART 2--VESSEL INSPECTIONS

    12. The authority citation for part 2 is revised to read as 
follows:

    Authority: 33 U.S.C. 1903; 43 U.S.C. 1333; 46 U.S.C. 3103, 3205, 
3306, 3307, 3703; Pub. L 103-206, 107 Stat. 2439; E.O. 12234, 45 FR 
58801, 3 CFR, 1980 Comp., p. 277; 49 CFR 1.46; subpart 2.45 also 
issued under the authority of Act Dec. 27, 1950, Ch. 1155, secs. 1, 
2, 64 Stat. 1120 (see 46 U.S.C. App. note prec. 1).


    13. In Sec. 2.01-7(a), redesignate table 2.01-7(A) as table 2.01-
7(a) and revise it to read as follows:


Sec. 2.01-7  Classes of vessels (including motorboats) examined or 
inspected and certificated.

    (a) * * *
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* * * * *

    14. Revise Sec. 2.01-45 to read as follows:


Sec. 2.01-45  Excursion permit.

    (a) Under 46 U.S.C. 2113, the Coast Guard may issue a permit to the 
owner, operator, or agent of a passenger vessel, allowing the vessel to 
engage in excursions that carry additional numbers of passengers, 
extend an existing route, or both. Details concerning the application 
process for excursion permits for inspected passenger vessels are 
contained in Secs. 71.10, 115.204, or Sec. 176.204 of this chapter. 
Details concerning the application process for special permits for 
uninspected passenger vessels are contained in Sec. 26.03-6 of this 
chapter.
    (b) For Marine Events of National Significance, as determined by 
the Commandant, U.S. Coast Guard, a vessel may be permitted to engage 
in these events while carrying passengers-for-hire for the duration of 
the event. Event sponsors must request this determination in writing 
from the Commandant (G-M) at least 1 year prior to the event. Details 
concerning the application process for special permits for Marine 
Events of National Significance are contained in Sec. 26.03-8 of this 
chapter.
    (c) The application for an excursion permit is made by the master, 
owner, or agent of the vessel to the Officer in Charge, Marine 
Inspection, on Coast Guard Form CG-950, Application for Excursion 
Permit. If, after inspection, permission is granted, it is given on 
Coast Guard form CG-949, Permission to Carry Excursion Party. The 
permit describes the vessel, the route over which and the period during 
which the excursions may be made, and the safety equipment required for 
the additional persons indicated.

PART 10--LICENSING OF MARITIME PERSONNEL

    15. The authority citation for part 10 is revised 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; Pub. L. 103-206, 107 Stat. 
2439; 49 CFR 1.45, 1.46; Sec. 10.107 also issued under the authority 
of 44 U.S.C. 3507.


    16. Revise the heading of Sec. 10.467 to read as follows:


Sec. 10.467  Licenses for operators of uninspected passenger vessels of 
less than 100 gross tons.

* * * * *

PART 15--MANNING REQUIREMENTS

    17. The authority citation for part 15 is revised to read as 
follows:

    Authority: 46 U.S.C. 2101, 2103, 3306, 3703, 8101, 8102, 8104, 
8105, 8301, 8304, 8502, 8503, 8701, 8702, 8901, 8902, 8903, 8904, 
8905(b), 9102; Pub. L. 103-206, 107 Stat. 2439; 49 CFR 1.45 and 
1.46.


    18. In Sec. 15.301(a), add, in alphabetical order, the definitions 
of ``Operate, operating, or operation'' and ``Underway'' to read as 
follows:


Sec. 15.301  Definitions of terms used in this part.

    (a) * * *
    Operate, operating, or operation, as applied to vessels, refers to 
a vessel anytime passengers are embarked whether the vessel is 
underway, at anchor, made fast to shore, or aground.
* * * * *
    Underway means that a vessel is not at anchor, made fast to the 
shore, or aground.
* * * * *

    19. Revise Sec. 15.605 to read as follows:


Sec. 15.605  Licensed operators for uninspected passenger vessels.

    Each uninspected passenger vessel must be under the direction and 
control of an individual licensed by the Coast Guard as follows:
    (a) Every self-propelled, uninspected vessel as defined by 46 
U.S.C. 2101(42)(B), carrying not more than six passengers, must be 
under the direction and control of an individual holding a license as 
operator.
    (b) Every uninspected passenger vessel of 100 gross tons or more, 
as defined by 46 U.S.C. 2101(42)(A), must be under the direction and 
control of a licensed master, pilot, or mate as appropriate.

    20. Add Sec. 15.705(f) to read as follows:


Sec. 15.705  Watches.

* * * * *
    (f) Properly manned uninspected passenger vessels of at least 100 
gross tons--
    (1) Which are underway for no more than 12 hours in any 24-hour 
period, and which are adequately moored, anchored, or otherwise secured 
in a harbor of safe refuge for the remainder of that 24-hour period may 
operate with one navigational watch;
    (2) Which are underway more than 12 hours in any 24-hour period 
must provide a minimum of a two-watch system;
    (3) In no case may the crew of any watch work more than 12 hours in 
any 24-hour period, except in an emergency.

    21. Add Sec. 15.805(a)(6) to read as follows:


Sec. 15.805  Master.

    (a) * * *
    (6) Every uninspected passenger vessel of at least 100 gross tons.
* * * * *

    22. Add Sec. 15.855(c) to read as follows:


Sec. 15.855  Cabin watchmen and fire patrolmen.

* * * * *
    (c) For the watchmen described in paragraph (a) of this section, 
the owner or operator of an uninspected passenger vessel not more than 
300 gross tons may substitute the use of fire detectors, heat 
detectors, smoke detectors, and high-water alarms with audible- and 
visual-warning indicators, in addition to other required safety alarms, 
only when each of the following conditions are met:
    (1) Fire detectors are located in each space containing machinery 
or fuel tanks per Sec. 181.400(c) of this chapter.
    (2) All grills, broilers, and deep-fat fryers are fitted with a 
grease extraction hood per Sec. 181.425 of this chapter.
    (3) Heat and/or smoke detectors are located in each galley, public 
accommodation space, enclosed passageway, berthing space, and all crew 
spaces.
    (4) High-water alarms are located in each space with a through hull 
fitting below the deepest load waterline, a machinery space bilge, 
bilge well, shaft alley bilge, or other space subject to flooding from 
sea water piping within the space, and a space below the waterline with 
non-watertight closure such as a space with a non-watertight hatch on 
the main deck.
    (5) Each alarm has an audible- and visual-alarm indicator located 
at the normal operating station and, if the normal operating position 
is not continually manned and not navigating underway, in an alternate 
location that must provide the crew, and may at all times provide the 
passengers, immediate warning of a hazardous condition.
    (6) The vessel is underway for no more than 12 hours in any 24-hour 
period, and the master of the vessel has chosen to operate with less 
than a three-watch system in accordance with Sec. 15.705.

    23. Revise Sec. 15.905 to read as follows:


Sec. 15.905  Uninspected passenger vessels.

    (a) An individual holding a license as master or pilot of an 
inspected, self-propelled vessel is authorized to serve as operator of 
an uninspected passenger vessel under 100 gross tons within any

[[Page 34768]]

restrictions, other than gross tonnage limitations, on the individual's 
license.
    (b) An individual holding a license as a master or pilot of an 
inspected, self-propelled vessel is authorized to serve as master, as 
required by 46 CFR 15.805(a)(6), of an uninspected passenger vessel of 
at least 100 gross tons within any restrictions, including gross 
tonnage and route, on the individual's license.
    (c) An individual holding a license as mate of inspected, self-
propelled vessels (other than Great Lakes, inland, or river vessels of 
not more than 200 gross tons) is authorized to serve as operator of 
uninspected passenger vessels of less than 100 gross tons within any 
restrictions, other than gross tonnage limitations, on the individual's 
license.

PART 24--GENERAL PROVISIONS

    24. The authority citation for part 24 is revised to read as 
follows:

    Authority: 46 U.S.C. 2113, 3306, 4104, 4302; Pub. L. 103-206, 
107 Stat. 2439; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; 
49 CFR 1.46.


    25. In Sec. 24.05-1, revise paragraph (a), introductory text, and 
table 24.05-1(a) to read as follows:


Sec. 24.05-1  Vessels subject to the requirements of this subchapter.

    (a) This subchapter is applicable to all vessels indicated in 
Column 5 of Table 24.05-1(a), and is applicable to all such U.S.-flag 
vessels, and to all such foreign-flag vessels, except as follows:
* * * * *
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    26. Revise subpart 24.10, consisting of Sec. 24.10-1 to read as 
follows:

Subpart 24.10--Definition of Terms Used in This Subchapter


Sec. 24.10-1  Definitions.

    Approved means approved by the Commandant, unless otherwise stated.
    Barge means a non-self-propelled vessel.
    Carrying freight for hire means the carriage of any goods, wares, 
or merchandise, or any other freight for a consideration, whether 
directly or indirectly flowing to the owner, charterer, operator, 
agent, or any other person interested in the vessel.
    Coast Guard District Commander means an officer of the Coast Guard 
designated as such by the Commandant to command all Coast Guard 
activities within his or her district, which includes the inspection, 
enforcement, and administration of Subtitle II, Title 46 U.S. Code; 
Title 33 U.S. Code; and regulations issued under these statutes.
    Commandant means the Commandant of the United States Coast Guard.
    Consideration means an economic benefit, inducement, right, or 
profit, including pecuniary payment accruing to an individual, person, 
or entity but not including a voluntary sharing of the actual expenses 
of the voyage by monetary contribution or donation of fuel, food, 
beverage, or other supplies.
    Headquarters means the Office of the Commandant, United States 
Coast Guard, Washington, DC.
    International voyage means a voyage between a country to which 
SOLAS applies and a port outside that country. A country, as used in 
this definition, includes every territory for the international 
relations of which a contracting government to the convention is 
responsible or for which the United Nations is the administering 
authority. For the U.S., the term ``territory'' includes the 
Commonwealth of Puerto Rico, all possessions of the United States, and 
all lands held by the United States under a protectorate or mandate. 
For the purposes of this subchapter, vessels are not considered as 
being on an ``international voyage'' when solely navigating the Great 
Lakes and the St. Lawrence River as far east as a straight line drawn 
from Cap des Rosiers to West Point, Anticosti Island and, on the north 
side of Anticosti Island, the 63rd meridian.
    Marine inspector or inspector means any person from the civilian or 
military branch of the Coast Guard assigned under the direction of an 
Officer in Charge, Marine Inspection, or any other person designated to 
perform duties related to the inspection, enforcement, and 
administration of Subtitle II, Title 46 U.S. Code; Title 33 U.S. Code; 
and regulations issued under these statutes.
    Motor vessel means any vessel more than 65 feet in length, which is 
propelled by machinery other than steam.
    Motorboat means any vessel indicated in column five of Table 24.05-
1(a) in Sec. 24.05-1, 65 feet in length or less, which is equipped with 
propulsion machinery (including steam). The length must be measured 
from end-to-end over the deck, excluding sheer. This term includes a 
boat equipped with a detachable motor. For the purpose of this 
subchapter, motorboats are included under the term vessel, unless 
specifically noted otherwise.
    (1) The various length categories of motorboats are as follows:
    (i) Any motorboat less than 16 feet in length.
    (ii) Any motorboat 16 feet or over and less than 26 feet in length.
    (iii) Any motorboat 26 feet or over and less than 40 feet in 
length.
    (iv) Any motorboat 40 feet or over and not more than 65 feet in 
length.
    (2) The expression ``length must be measured from end-to-end over 
the deck excluding sheer'' means a straight-line measurement of the 
overall length from the foremost part of the vessel to the aftermost 
part of the vessel, measured parallel to the centerline. Bowsprits, 
bumpkins, rudders, outboard motor brackets, and similar fittings or 
attachments, are not to be included in the measurement. Length must be 
stated in feet and inches.
    Oceans means a route that goes beyond 20 nautical miles offshore on 
any of the following waters:
    (1) Any ocean.
    (2) The Gulf of Mexico.
    (3) The Caribbean Sea.
    (4) The Bering Sea.
    (5) The Gulf of Alaska.
    (6) Such other similar waters as may be designated by a Coast Guard 
District Commander.
    Officer in Charge, Marine Inspection or OCMI means any person from 
the civilian or military branch of the Coast Guard designated as such 
by the Commandant and who, under the direction of the Coast Guard 
District Commander, is in charge of an inspection zone for performance 
of duties related to the inspection, enforcement, and administration of 
Subtitle II, Title 46 U.S. Code; Title 33 U.S. Code; and regulations 
issued under these statutes.
    Passenger means an individual carried on a vessel, except--
    (1) The owner or an individual representative of the owner, or in 
the case of a vessel under charter, an individual charterer or 
individual representative of the charterer;
    (2) The master; or
    (3) A member of the crew engaged in the business of the vessel, who 
has not contributed consideration for carriage, and who is paid for 
onboard services.
    Passenger-for-hire means a passenger for whom consideration is 
contributed as a condition of carriage on the vessel, whether directly 
or indirectly flowing to the owner, charterer, operator, agent, or any 
other person having an interest in the vessel.
    Survival craft, when used on an uninspected passenger vessel over 
100 gross tons means a lifeboat, inflatable liferaft, inflatable 
buoyant apparatus, or small boat.
    Vessel, as used in this subpart includes all vessels indicated in 
column five of Table 24.05-1(a) in Sec. 24.05-1, unless otherwise noted 
in this subpart.
    Uninspected passenger vessel means an uninspected vessel--
    (1) Of at least 100 gross tons;
    (i) Carrying not more than 12 passengers, including at least one 
passenger-for-hire; or
    (ii) That is chartered with the crew provided or specified by the 
owner or the owner's representative and carrying not more than 12 
passengers; and
    (2) Of less than 100 gross tons;
    (i) Carrying not more than six passengers, including at least one 
passenger-for-hire; or
    (ii) That is chartered with the crew provided or specified by the 
owner or the owner's representative and carrying not more than six 
passengers.

PART 25--REQUIREMENTS

    27. The authority citation for part 25 is revised to read as 
follows:

    Authority: 33 U.S.C. 1903(b); 46 U.S.C. 3306, 4302; Pub. L 103-
206, 107 Stat. 2439; 49 CFR 1.46.


    28. Revise Sec. 25.25-5(d) to read as follows:


Sec. 25.25-5  Life preservers and other lifesaving equipment required.

* * * * *
    (d) In addition to the equipment required by paragraph (b) and (c) 
of this section, each vessel 26 feet in length or longer must have at 
least one approved ring life buoy, and each uninspected passenger 
vessel of at least 100 gross tons must have at least three ring life 
buoys. Ring life buoys must be constructed per subpart 160.050 of part 
160 of this chapter. The exception is a ring life buoy that was 
approved prior

[[Page 34776]]

to May 9, 1979, under former subpart 160.009 of part 160 of this 
chapter (see 46 CFR chapter I, revised as of October 1, 1979), which 
may be used as long as it is in good and serviceable condition.
* * * * *

    29. Add Sec. 25.25-17 to read as follows:


Sec. 25.25-17  Survival craft requirements for uninspected passenger 
vessels of at least 100 gross tons.

    (a) Each uninspected passenger vessel of at least 100 gross tons 
must have adequate survival craft with enough capacity for all persons 
aboard and must meet one of the following requirements:
    (1) An inflatable liferaft must be approved under 46 CFR part 160, 
subparts 160.051 or 160.151, and be equipped with an applicable 
equipment pack or be approved by another standard specified by the 
Commandant. Inflatable liferafts must be serviced at a servicing 
facility approved under 46 CFR part 160, subpart 160.151.
    (2) An inflatable buoyant apparatus must be approved under 46 CFR 
part 160, subpart 160.010 or under another standard specified by the 
Commandant. An inflatable buoyant apparatus must be serviced at a 
servicing facility approved under 46 CFR part 160, subpart 160.151.
    (b) If the vessel carries a small boat or boats, the capacity of 
the small boat or boat(s) may be counted toward the survival craft 
capacity required by this part. Such small boat or boat(s) must meet 
the requirements for safe loading and floatation in 33 CFR part 183.

    30. Add Sec. 25.25-19 to read as follows:


Sec. 25.25-19  Visual distress signals.

    Each uninspected passenger vessel must meet the visual distress 
signal requirements of 33 CFR part 175 applicable to the vessel.

    31. Revise Sec. 25.26-10 to read as follows:


Sec. 25.26-10  EPIRB requirements for uninspected passenger vessels.

    (a) Uninspected passenger vessels less than 100 gross tons are not 
required to carry an EPIRB.
    (b) The owner, operator, or master of an uninspected passenger 
vessel of at least 100 gross tons must ensure that the vessel does not 
operate beyond three miles from shore as measured from the territorial 
sea baseline seaward or more than three miles from the coastline of the 
Great Lakes, unless it has onboard a float-free, automatically 
activated Category 1 406 MHz EPIRB stowed in a manner so that it will 
float free if the vessel sinks.

    32. In Sec. 25.30-20, redesignate paragraphs (b) and (c) as 
paragraphs (c) and (d), respectively, and add a new paragraph (b) to 
read as follows:


Sec. 25.30-20  Fire extinguishing equipment required.

* * * * *
    (b) Uninspected passenger vessels of at least 100 gross tons. All 
uninspected passenger vessels of at least 100 gross tons must carry 
onboard hand-portable and semi-portable fire extinguishers per Table 
76.50-10(a) in Sec. 76.50-10 of this chapter.
* * * * *

PART 26--OPERATIONS

    33. The authority citation for part 26 is revised to read as 
follows:

    Authority: 46 U.S.C. 3306, 4104, 6101, 8105; Pub. L. 103-206, 
107 Stat. 2439; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 277; 
49 CFR 1.46.


    34. Revise Sec. 26.03-1(a), introductory text, to read as follows:


Sec. 26.03-1  Safety orientation.

    (a) Before getting underway on any uninspected passenger vessel, 
the operator or master must ensure that suitable public announcements, 
instructive placards, or both, are provided in a manner that affords 
all passengers the opportunity to become acquainted with:
* * * * *
    35. Revise Sec. 26.03-2(a) to read as follows:


Sec. 26.03-2  Emergency instructions.

    (a) The operator or master of each uninspected passenger vessel 
must ensure that an emergency check-off list is posted in a prominent 
and accessible place to notify the passengers and remind the crew of 
precautionary measures that may be necessary if an emergency situation 
occurs.
* * * * *

    36. Add Sec. 26.03-4 to read as follows:


Sec. 26.03-4  Charts and nautical publications.

    (a) As appropriate for the intended voyage, all vessels must carry 
adequate and up-to-date--
    (1) Charts of appropriate scale to make safe navigation possible;
    (2) ``U.S. Coast Pilot'' or similar publication;
    (3) Coast Guard light list;
    (4) Tide tables; and
    (5) Current tables, or a river current publication issued by the 
U.S. Army Corps of Engineers, or a river authority.
    (b) As an alternative, you may substitute extracts or copies from 
the publications in paragraph (a) of this section. This information 
must be applicable to the area transited.


Sec. 26.03-5  [Removed]

    37. Remove Sec. 26.03-5.

    38. Add Sec. 26.03-6 to read as follows:


Sec. 26.03-6  Special permit.

    (a) If the owner, operator, or agent donates the use of an 
uninspected passenger vessel to a charity for fundraising activities, 
and the vessel's activity would subject it to Coast Guard inspection, 
the OCMI may issue a special permit to the owner, operator, or agent 
for this purpose if, in the opinion of the OCMI, the vessel can be 
safely operated. Each special permit is valid for only one voyage of a 
donated vessel, which is used for a charitable purpose. Applications 
are considered and approved on a case-by-case basis.
    (b) The criteria of Sec. 176.204 of this chapter will apply to the 
issuance of a special permit. In addition, the owner, operator, or 
agent must meet each of these conditions--
    (1) Any charity using a donated vessel must be a bona fide charity 
or a non-profit organization qualified under section 501(c)(3) of the 
Internal Revenue Code of 1986;
    (2) All donations received from the fundraising must go to the 
named charity;
    (3) The owner, operator, or agent may obtain a special permit for 
an individual vessel not more than four times in a 12-month period; and
    (4) The owner, operator, or agent must apply to the local OCMI for 
a special permit prior to the intended voyage, allowing adequate time 
for processing and approval of the permit.
    (c) Nothing in this part may be construed as limiting the OCMI from 
making such tests and inspections, both afloat and in dry-dock, that 
are reasonable and practicable to be assured of the vessel's 
seaworthiness and safety.

    39. Revise Sec. 26.03-8 to read as follows:


Sec. 26.03-8  Marine Event of National Significance special permits.

    (a) For a Marine Event of National Significance, as determined by 
the Commandant, U.S. Coast Guard, a vessel may be permitted to engage 
in excursions while carrying passengers-for-hire for the duration of 
the event. Event sponsors seeking this determination must submit a 
written request to the Commandant (G-M) at least one year prior to the 
event.
    (b) The owner, operator, or agent of a vessel that is registered as 
a participant in a Marine Event of National Significance may apply for 
a special

[[Page 34777]]

permit to carry passengers-for-hire for the duration of the event. The 
master, owner, or agent of the vessel must apply to the Coast Guard 
OCMI who has jurisdiction over the vessel's first United States port of 
call. The OCMI may issue a Form CG-949 ``Permit to Carry Excursion 
Party'' if, in the opinion of the OCMI, the operation can be undertaken 
safely. The OCMI may require an inspection prior to issuance of a 
special permit to ensure that the vessel can safely operate under the 
conditions for which the permit is issued.
    (c) The permit will state the conditions under which it is issued. 
These conditions must include the number of passengers-for-hire the 
vessel may carry, the crew required, the number and type of lifesaving 
and safety equipment required, the route and operating details for 
which the permit is issued, and the dates for which the permit will be 
valid.
    (d) The permit must be displayed in a location visible to 
passengers.
    (e) The carrying of passengers-for-hire during a Marine Event of 
National Significance must comply with the regulations governing 
coastwise transportation of passengers under 19 CFR 4.50(b) and 19 CFR 
4.80(a).

    40. Add Sec. 26.03-9 to read as follows:


Sec. 26.03-9  Voyage plans for uninspected passenger vessels of at 
least 100 gross tons.

    (a) The master must prepare a voyage plan that includes a crew and 
passenger list before taking an uninspected passenger vessel of at 
least 100 gross tons on a Great Lake, an ocean, or an international 
voyage.
    (b) Before departure, the master must communicate the voyage plan 
ashore, either verbally or in writing. The voyage plan must go to 
either the vessel's normal berthing location or a representative of the 
owner or managing operator of the vessel. The master, owner, or 
operator of the vessel must make the voyage plan available to the Coast 
Guard upon request.

Subpart 26.20--Exhibition of Coast Guard License

    41. Revise the heading of subpart 26.20 to read as set forth above.

    42. Revise Sec. 26.20-1 to read as follows:


Sec. 26.20-1  Must be available.

    If a person operates a vessel that carries one or more passengers-
for-hire, he or she is required to have a valid Coast Guard license 
suitable for the vessel's route and service. He or she must have the 
license in his or her possession and must produce it immediately upon 
the request of a Coast Guard boarding officer.

PART 30--GENERAL PROVISIONS

    43. The authority citation for part 30 is revised to read as 
follows:

    Authority: 46 U.S.C. 2103, 3306, 3703; Pub. L. 103-206, 107 
Stat. 2439; 49 U.S.C. 5103, 5106; 49 CFR 1.45, 1.46; Section 30.01-2 
also issued under the authority of 44 U.S.C. 3507; Section 30.01-05 
also issued under the authority of Sec. 4109, Pub. L. 101-380, 104 
Stat. 515.

    44. In Sec. 30.01-5, revise paragraph (d), introductory text, 
redesignate table 30.01-5(D) as table 30.01-5(d), and revise 
redesignated table 30.01-5(d) to read as follows:


Sec. 30.01-5  Application of regulations--TB/ALL.

* * * * *
    (d) This subchapter is applicable to all U.S.-flag vessels 
indicated in Column 2 of Table 30.01-5(d), except as follows:
* * * * *
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* * * * *

PART 70--GENERAL PROVISIONS

    45. The authority citation for part 70 is revised to read as 
follows:

    Authority: 46 U.S.C. 3306, 3703; Pub. L 103-206, 107 Stat. 2439; 
49 U.S.C. 5103, 5106; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 
277; 49 CFR 1.45, 1.46; Section 70.01-15 also issued under the 
authority of 44 U.S.C. 3507.


    46. In Sec. 70.05-1, revise paragraph (a), introductory text, and 
table 70.05-1(a) to read as follows:


Sec. 70.05-1  United States flag vessels subject to the requirements of 
this subchapter.

    (a) This subchapter is applicable to all U.S.-flag vessels 
indicated in Column 3 of table 70.05-1(a) that are 100 gross tons or 
more, except as follows:
* * * * *
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* * * * *

    47. Add Sec. 70.05-18 to read as follows:


Sec. 70.05-18  Applicability to vessels operating under an exemption 
afforded in the Passenger Vessel Safety Act of 1993 (PVSA).

    (a) The Passenger Vessel Safety Act of 1993 (PVSA) contained an 
allowance for the exemption of certain passenger vessels that are--
    (1) At least 100 gross tons but less than 300 gross tons; or
    (2) Former public vessels of at least 100 gross tons but less than 
500 gross tons.
    (b) The owner or operator of a vessel must have applied for an 
exemption under the PVSA by June 21, 1994, and then brought the vessel 
into compliance with the interim guidance in Navigation and Inspection 
Circular (NVIC) 7-94 not later than December 21, 1996. The PVSA 
exemption is valid for the service life of the vessel, as long as the 
vessel remains certified for passenger service. If the Certificate of 
Inspection (COI) is surrendered or otherwise becomes invalid (not 
including a term while the vessel is out of service but undergoing an 
inspection for recertification), the owner or operator must meet the 
appropriate inspection regulations to obtain a new COI without the PVSA 
exemption. See 46 CFR 175.118 for information about applicable 
regulations for vessels that operate under the PVSA exemption.

    48. Revise subpart Sec. 70.10, consisting of Sec. 70.10-1, to read 
as follows:

Subpart 70.10--Definition of Terms Used in This Subchapter


Sec. 70.10-1  Definitions.

    Approved means approved by the Commandant, unless otherwise stated.
    Barge means any non-self-propelled vessel.
    Carrying freight for hire means the carriage of any goods, wares, 
or merchandise, or any other freight for a consideration, whether 
directly or indirectly flowing to the owner, charterer, operator, 
agent, or any other person interested in the vessel.
    Classed vessel means any vessel classed by the American Bureau of 
Shipping or other recognized classification society.
    Coast Guard District Commander means an officer of the Coast Guard 
designated as such by the Commandant to command all Coast Guard 
activities within his or her district, which include the inspection, 
enforcement, and administration of Subtitle II, Title 46 U.S. Code; 
Title 33 U.S. Code; and regulations issued under these statutes.
    Coastwise is a designation of service that includes all vessels 
normally navigating the waters of any ocean or the Gulf of Mexico 20 
nautical miles or less offshore.
    Commandant means the Commandant of the United States Coast Guard.
    Consideration means an economic benefit, inducement, right, or 
profit including pecuniary payment accruing to an individual, person, 
or entity but not including a voluntary sharing of the actual expenses 
of the voyage by monetary contribution or donation of fuel, food, 
beverage, or other supplies.
    Ferry is a designation that includes those vessels, in other than 
ocean or coastwise service, having provisions only for deck passengers 
and/or vehicles, operating on a short run, on a frequent schedule 
between two points over the most direct water route, and offering a 
public service of a type normally attributed to a bridge or tunnel.
    Great Lakes is a designation of service that includes all vessels 
navigating the Great Lakes.
    Headquarters means the Office of the Commandant, United States 
Coast Guard, Washington, DC 20593.
    Lakes, bays, and sounds is a designation of service that includes 
all vessels navigating the waters of the lakes, bays, or sounds other 
than the waters of the Great Lakes.
    Marine inspector or inspector means any person from the civilian or 
military branch of the Coast Guard assigned under the direction of an 
Officer in Charge, Marine Inspection, or any other person designated to 
perform duties related to the inspection, enforcement, and 
administration of Subtitle II, Title 46 U.S. Code; Title 33 U.S. Code; 
and regulations issued under these statutes.
    Motor vessel means any vessel more than 65 feet in length, which is 
propelled by machinery other than steam.
    Ocean is a designation of service that includes all vessels 
navigating the waters of any ocean or the Gulf of Mexico more than 20-
nautical miles offshore.
    Officer in Charge, Marine Inspection means any person from the 
civilian or military branch of the Coast Guard designated as such by 
the Commandant and who, under the direction of the Coast Guard District 
Commander, is in charge of an inspection zone for the performance of 
duties related to the inspection, enforcement, and administration of 
Subtitle II, Title 46 U.S. Code; Title 33 U.S. Code; and regulations 
issued under these statutes.
    Passenger means--
    (1) On an international voyage, every person other than--
    (i) The master and the members of the crew or other persons 
employed or engaged in any capacity onboard a vessel on the business of 
that vessel; and
    (ii) A child under the age of one.
    (2) On other than an international voyage, an individual carried on 
the vessel, except--
    (i) The owner or an individual representative of the owner or, in 
the case of a vessel under charter, an individual charterer or 
individual representative of the charterer;
    (ii) The master; or
    (iii) A member of the crew engaged in the business of the vessel, 
who has not contributed consideration for carriage, and who is paid for 
onboard services.
    Passenger-for-hire means a passenger for whom consideration is 
contributed as a condition of carriage on the vessel, whether directly 
or indirectly flowing to the owner, charterer, operator, agent, or any 
other person having an interest in the vessel.
    Passenger vessel means--
    (1) On an international voyage, a vessel of at least 100 tons gross 
tonnage carrying more than 12 passengers; and
    (2) On other than an international voyage, a vessel of at least 100 
tons gross tonnage--
    (i) Carrying more than 12 passengers, including at least one 
passenger-for-hire;
    (ii) That is chartered and carrying more than 12 passengers; or
    (iii) That is a submersible vessel and carrying at least one 
passenger-for-hire.
    Pilot boarding equipment means a pilot ladder, accommodation 
ladder, pilot hoist, or combination of them, as required by this 
subchapter.
    Point of access means the place on the deck of a vessel where a 
person steps onto or off pilot boarding equipment.
    Recognized classification society means the American Bureau of 
Shipping or other classification society as recognized by the 
Commandant.
    Rivers is a designation of service that includes all vessels whose 
navigation is restricted to rivers and/or canals, and to such other 
waters as may be designated by the Coast Guard District Commander.
    Sailing vessel means a vessel with no mechanical means of 
propulsion, all propulsive power being provided by sails.
    Short international voyage means an international voyage in the 
course of which a vessel is not more than 200 miles from a port or 
place in which the passengers and crew could be placed in safety. 
Neither the distance between the last port of call in the country in 
which

[[Page 34792]]

the voyage begins and the final port of destination, nor the return 
voyage, may exceed 600 miles. The final port of destination is the last 
port of call in the scheduled voyage at which the vessel commences its 
return voyage to the country in which the voyage began.
    Specially suitable for vehicles is a designation used for a space 
that is designed for the carriage of automobiles or other self-
propelled vehicles with batteries connected and fuel tanks containing 
gasoline on vessels on ocean or unlimited coastwise voyages. 
Requirements for the design and protection of spaces specially suitable 
for vehicles appear in subparts 72.15, 76.15, 77.05, 78.45, 78.47, and 
78.83 of parts 72, 76, 77, and 78 of this subchapter. In addition, 
preparation of automobiles prior to carriage, with the exception of 
disconnecting battery cables, must be in accordance with the applicable 
provision of 49 CFR 176.905.
    Submersible vessel means a vessel that is capable of operating 
below the surface of the water.
    Vessel, unless otherwise noted in this subpart, includes all 
vessels indicated in column three of table 70.05-1(a) in Sec. 70.05-1 
that exceed 65 feet in length (measured from end-to-end over the deck, 
excluding sheer) and that carry more than six passengers-for-hire.

PART 90--GENERAL PROVISIONS

    49. The authority citation for part 90 is revised to read as 
follows:

    Authority: 46 U.S.C. 3306, 3703; Pub.L 103-206, 107 Stat. 2439; 
49 U.S.C. 5103, 5106; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 
277; 49 CFR 1.46.


    50. In Sec. 90.05.1, revise paragraph (a), introductory text, and 
table 90.05-1(a) to read as follows:


Sec. 90.05-1  Vessels subject to the requirements of this subchapter.

    (a) This subchapter is applicable to all U.S.-flag vessels 
indicated in Column 4 of Table 90.05-1(a) and to all such foreign-flag 
vessels which carry 12 or fewer passengers from any port in the United 
States to the extent prescribed by law, except as follows:
* * * * *
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* * * * *

PART 114--GENERAL PROVISIONS

    51. The authority citation for part 114 is revised to read as 
follows:

    Authority: 46 U.S.C. 2103, 3306, 3703; Pub. L. 103-206, 107 
Stat. 2439; 49 U.S.C. App. 1804; 49 CFR 1.45, 1.46; Sec. 114.900 
also issued under 44 U.S.C. 3507.


    52. In Sec. 114.400(b), add, in alphabetical order, the definition 
of ``Submersible vessel'' to read as follows:


Sec. 114.400  Definitions of terms used in this subchapter.

* * * * *
    Submersible vessel means a vessel that is capable of operating 
below the surface of the water.
* * * * *

PART 169--SAILING SCHOOL VESSELS

    53. The authority citation for part 169 is revised to read as 
follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306, 6101; Pub. L. 103-
206, 107 Stat. 2439; E.O. 11735, 38 FR 21243, 3 CFR, 1971-1975 
Comp., p. 793; 49 CFR 1.45, 1.46; Sec. 169.117 also issued under the 
authority of 44 U.S.C. 3507.


    54. Revise Sec. 169.103(a) and (b) to read as follows:


Sec. 169.103  Applicability.

    (a) This subchapter applies to each domestic vessel operating as a 
sailing school vessel.
    (b) This subchapter does not apply to--
    (1) Any vessel operating exclusively on inland waters, which are 
not navigable waters of the United States;
    (2) Any vessel while laid up, dismantled, and out of service;
    (3) Any vessel with title vested in the United States and which is 
used for public purposes except vessels of the U.S. Maritime 
Administration;
    (4) Any vessel carrying one or more passengers;
    (5) Any vessel operating under the authority of a current valid 
certificate of inspection issued per the requirements of 46 CFR chapter 
I, subchapter H or T, 46 CFR parts 70 through 78 and parts 175 through 
187, respectively; or
    (6) Any foreign vessel.
* * * * *

    55. Amend Sec. 169.107 as follows:
    (1) Remove paragraph (g);
    (2) Remove only the paragraph designations from remaining 
paragraphs (a) through (f) and (h) through (z);
    (3) Add, in alphabetical order, the definition of ``demise 
charter''; and
    (4) Revise the definitions of ``passenger'' and ``sailing 
instruction''.
    The additions and revisions read as follows:


Sec. 169.107  Definitions.

* * * * *
    Demise charter means a legally binding document for a term of one 
year or more under which for the period of the charter, the party who 
leases or charters the vessel, known as the demise or bareboat 
charterer, assumes legal responsibility for all of the incidents of 
ownership, including insuring, manning, supplying, repairing, fueling, 
maintaining and operating the vessel. The term demise or bareboat 
charterer is synonymous with ``owner pro hac vice''.
* * * * *
    Passenger on a sailing school vessel means an individual carried on 
the vessel except--
    (1) The owner or an individual representative of the owner or, in 
the case of a vessel under charter, an individual charterer or 
individual representative of the charterer;
    (2) The master;
    (3) A member of the crew engaged in the business of the vessel, who 
has not contributed consideration for carriage, and who is paid for 
onboard services;
    (4) An employee of the owner of the vessel engaged in the business 
of the owner, except when the vessel is operating under a demise 
charter;
    (5) An employee of the demise charterer of the vessel engaged in 
the business of the demise charterer; or
    (6) A sailing school instructor or sailing school student.
* * * * *
    Sailing instruction means teaching, research, and practical 
experience in operating vessels propelled primarily by sail, and may 
include any subject related to that operation and the sea, including 
seamanship, navigation, oceanography, other nautical and marine 
sciences, and maritime history and literature. In conjunction with any 
of those subjects, ``sailing instruction'' also includes instruction in 
mathematics and language arts skills to a sailing school student with a 
learning disability.
* * * * *

PART 175--GENERAL PROVISIONS

    56. The authority citation for part 175 is revised to read as 
follows:

    Authority: 46 U.S.C. 2103, 3205, 3306, 3703; Pub.L 103-206, 107 
Stat. 2439; 49 U.S.C. App. 1804; 49 CFR 1.45, 1.46; 175.900 also 
issued under authority of 44 U.S.C. 3507.

    57. Add Sec. 175.118 to read as follows:


Sec. 175.118  Vessels operating under an exemption afforded in the 
Passenger Vessel Safety Act of 1993 (PVSA).

    (a) The Passenger Vessel Safety Act of 1993 (PVSA) contained an 
allowance for the exemption of certain passenger vessels that are--
    (1) At least 100 gross tons but less than 300 gross tons; or
    (2) Former public vessels of at least 100 gross tons but less than 
500 gross tons.
    (b) The owner or operator of a vessel must have applied for an 
exemption under PVSA by June 21, 1994, and then brought the vessel into 
compliance with the interim guidance in Navigation and Inspection 
Circular (NVIC) 7-94 not later than December 21, 1996. The PVSA 
exemption is valid for the service life of the vessel, as long as the 
vessel remains certified for passenger service. If the Certificate of 
Inspection (COI) is surrendered or otherwise becomes invalid (not 
including a term while the vessel is out of service but undergoing an 
inspection for recertification), the owner or operator must meet the 
appropriate inspection regulations to obtain a new COI without the PVSA 
exemption.
    (c) Except where the provisions of subchapter H of this chapter 
apply, the owner or operator must ensure that the vessel meets the 
requirements of this subchapter, meets any requirements the OCMI deems 
applicable, and meets any specific additions or exceptions as follows:
    (1) If a vessel does not meet the intact stability requirements of 
subchapter S of this chapter, the vessel's route(s) will be limited to 
an area within 20 nautical miles from a harbor of safe refuge, provided 
the vessel has a history of safe operation on those waters. The OCMI 
may further restrict the vessel's routes if the vessel's service 
history, condition, or other factors affect its seaworthiness or 
safety.
    (2) The vessel may not carry more than 150 passengers, and not more 
than 49 passengers in overnight accommodations.
    (3) The owner or operator must crew the vessel under the 
requirements of this subchapter. All officers must be licensed for the 
appropriate vessel tonnage. The OCMI may require a licensed engineer 
for those vessels of at least 200 gross tons. Vessels carrying more 
than 50 passengers must have an additional deckhand, and all deckhands 
on vessels carrying more than 50 passengers must be adequately trained. 
The crew members on a vessel of at least 200 gross tons, except those 
operated exclusively on lakes and rivers, are required to hold merchant 
mariner

[[Page 34800]]

documents and 50 percent of the unlicensed deck crew must be rated as 
at least an able seaman.
    (4) The vessel owner or operator must comply with the lifesaving 
arrangements located in part 180 of this chapter, except that 
inflatable liferafts are required for primary lifesaving. A rescue boat 
or suitable rescue arrangement must be provided to the satisfaction of 
the OCMI.
    (5) The vessel owner or operator must comply with the fire 
protection requirements located in part 181 of this chapter. When a 
vessel fails to meet the fire protection and structural fire protection 
requirements of this subchapter, the vessel owner or operator must meet 
equivalent requirements to the satisfaction of the cognizant OCMI or 
submit plans for approval from the Coast Guard Marine Safety Center.
    (6) At a minimum, the owner or operator must outfit the vessel with 
portable fire extinguishers per 46 CFR 76.50. In addition, the vessel 
must meet any additional requirements of the OCMI, even if they exceed 
the requirements in 46 CFR 76.50.
    (7) In addition to the means-of-escape requirements of 46 CFR 
177.500, the vessel owner or operator must also meet the requirements 
for means of escape found in 46 CFR 78.47-40.
    (d) The OCMI conducts an inspection and may issue a COI if the 
vessel meets these requirements. The COI's condition of operation must 
contain the following endorsement: ``This vessel is operating under an 
exemption afforded in The Passenger Vessel Safety Act of 1993 and as 
such is limited to domestic voyages and a maximum ______ of passengers 
and may be subject to additional regulations and restrictions as 
provided for in Sections 511 and 512 of the Act.''

    58. In Sec. 175.400, add a definition for ``Submersible vessel'', 
in alphabetical order, to read as follows:


Sec. 175.400  Definitions of terms used in this subchapter.

* * * * *
    Submersible vessel means a vessel that is capable of operating 
below the surface of the water.
* * * * *

PART 188--GENERAL PROVISIONS

    59. The authority citation for part 188 is revised to read as 
follows:

    Authority: 46 U.S.C. 2113, 3306; Pub. L 103-206, 107 Stat. 2439; 
49 U.S.C. 5103, 5106; E.O. 12234, 45 FR 58801, 3 CFR, 1980 Comp., p. 
277; 49 CFR 1.46.


    60. In Sec. 188.05-1, revise paragraph (a), introductory text, and 
table 188.05-1(a) to read as follows:


188.05-1  Vessels subject to requirements of this subchapter.

    (a) This subchapter is applicable to all U.S.-flag vessels 
indicated in Column 6 of Table 188.05-1(a) to the extent prescribed by 
applicable laws and the regulations in this subchapter, except as 
follows:
* * * * *
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PART 199--LIFESAVING SYSTEMS FOR CERTAIN INSPECTED VESSELS

    61. The authority citation for part 199 is revised to read as 
follows:

    Authority: 46 U.S.C. 3306, 3703; Pub. L 103-206, 107 Stat. 2439; 
46 CFR 1.46.

    62. In Sec. 199.30, revise the definition of ``passenger vessel'' 
to read as follows:


Sec. 199.30  Definitions.

* * * * *
    Passenger vessel means--
    (1) On an international voyage, a vessel of at least 100 tons gross 
tonnage carrying more than 12 passengers; and
    (2) On other than an international voyage, a vessel of at least 100 
tons gross tonnage--
    (i) Carrying more than 12 passengers, including at least one 
passenger-for-hire; or
    (ii) That is chartered and carrying more than 12 passengers; or
    (iii) That is a submersible vessel carrying at least one passenger-
for-hire.
* * * * *

    Dated: April 18, 2002.
Paul J. Pluta,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Marine Safety, 
Security and Environmental Protection.
[FR Doc. 02-11060 Filed 5-14-02; 8:45 am]
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