[Federal Register Volume 77, Number 60 (Wednesday, March 28, 2012)]
[Rules and Regulations]
[Pages 18689-18704]
[FR Doc No: 2012-7127]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Parts 173, 174, 181, and 187

[Docket No. USCG-2003-14963]
RIN 1625-AB45

Changes to Standard Numbering System, Vessel Identification
System, and Boating Accident Report Database

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is amending its regulations related to
numbering undocumented vessels and reporting boating accidents. These
changes align and modernize terminology used in the Standard Numbering
System (SNS), the Vessel Identification System, and accident reporting;
require verification of vessel hull identification numbers; require SNS
vessel owners to provide personally identifiable information; and
provide flexibility for States and territories in administering these
regulations. Together, the changes are intended to improve boating
safety efforts, enhance law enforcement capabilities, clarify
requirements for all stakeholders, and promote the Coast Guard
strategic goals of maritime safety and security.

DATES: This final rule is effective April 27, 2012. The requirements of
33 CFR 173.57(c), 174.16(b), 174.17(c), and 174.19(c) take effect on
that date but the Coast Guard may not enforce the collections of
information required by those provisions without the approval of the
Office of Management and Budget and a subsequent Coast Guard document
in the Federal Register.

ADDRESSES: Comments and material received from the public, as well as
documents mentioned in this preamble as being available in the docket,
are part of docket USCG-2003-14963 and are available for inspection or
copying at the Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays. You may also find this
docket on the Internet by going to http://www.regulations.gov,
inserting USCG-2003-14963 in the ``Keyword'' box, and then clicking
``Search.''

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email Mr. Jeff Ludwig, Office of Auxiliary and Boating Safety;
telephone<PHONE_NUMBER>, or email<EMAIL_ADDRESS>If you have
questions on viewing the docket, call Renee V. Wright, Program Manager,
Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Regulatory History
III. Basis and Purpose
IV. Background
V. Discussion of Comments and Changes
VI. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards
    M. Environment

I. Abbreviations

BARD Boating Accident Report Database
DHS Department of Homeland Security
FR Federal Register
HIN Hull identification number
n/a Not applicable
NBSAC National Boating Safety Advisory Council
NPRM Notice of Proposed Rulemaking
OMB Office of Management and Budget
PII Personally identifiable information
SNS Standard Numbering System
UCOTA Uniform Certificate of Title Act
U.S.C. United States Code
VIS Vessel Identification System

II. Regulatory History

    On May 7, 2010, we published a notice of proposed rulemaking (NPRM)
bearing the same title as this final rule in the Federal Register (75
FR 25137). We received 39 comments on the proposed rule. No public
meeting was requested, and none was held.

III. Basis and Purpose

    The Administrative Procedure Act, 5 U.S.C. 553(c), requires each
rule to contain a concise statement of its basis and purpose. The
remainder of this preamble discusses both in detail, but in summary
this final rule's:
     Basis is 46 U.S.C. 2103, authorizing regulations to
implement United States Code (U.S.C.), Title 46, Subtitle II, dealing
with vessels and seamen; 46 U.S.C. 6101, requiring regulations on
marine casualty reporting; 46 U.S.C. 12302, requiring regulations
establishing a standard numbering system for certain undocumented
vessels; and 46 U.S.C. 12501, requiring regulations establishing an
identification system for certain vessels; authority under all of which
sections has been delegated by the Secretary to the Coast Guard in
Department of Homeland Security (DHS) Delegation No. 0170.1; and its
     Purpose is to improve the information available within and
across the Standard Numbering System (SNS), Vessel Identification
System, and Boating Accident Report databases by increasing data
quality, aligning and modernizing database terminology, requiring
verification of hull identification numbers, requiring owners of SNS-
numbered vessels to provide unique personal identification information
and providing additional administrative flexibility to States and
territories.

IV. Background

    Coast Guard regulations in 33 CFR parts 173 and 174 provide for an
SNS that assigns unique identification numbers to undocumented vessels
equipped with propulsion machinery of any kind. The SNS is a Federal
system mandated by 46 U.S.C. 12302, but it permits a State \1\ to
assign numbers to vessels within its jurisdiction if we find that the
State's own vessel numbering system is consistent with SNS. Today, all
States maintain Coast Guard-approved numbering systems.
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    \1\ ``State'' is defined in 33 CFR 173.3 as ``a State of the
United States, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and the District of Columbia,'' or 56 States and
territories. This discussion refers to ``State'' throughout, but
except when specifically noted otherwise, the term ``State'' should
be read as including all 56 States and territories.
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    Regulations in 33 CFR parts 173 and 174 also implement 46 U.S.C.
6102, which requires us to establish a uniform reporting system for
State vessel casualties, and which requires States to compile and send
us reports, information, and statistics on casualties reported to them.
Our regulations contain provisions for reporting casualties that
involve SNS-numbered undocumented vessels that are equipped with
propulsion machinery of any kind, and recreational vessels of any kind
(SNS-numbered or not), 33 CFR 173.51, 174.101. We maintain a Boating
Accident Report Database (BARD) for this data.
    Coast Guard regulations in 33 CFR part 187 help us implement 46
U.S.C. 12501, which requires us to maintain a Vessel Identification
System (VIS) covering both documented and undocumented vessels. VIS
must contain vessel identification and ownership information (including
personally identifiable information, or

PII) which can be used for law enforcement involving vessel-related
crimes such as vessel theft and fraud. We developed VIS in coordination
with relevant State agencies. Data for documented vessels is added to
VIS based on Coast Guard records for those vessels. The part 187
regulations describe how a State can participate in VIS by supplying
data for the undocumented vessels numbered and titled within that
State. The more comprehensive VIS's undocumented vessel information is,
the greater are its benefits: However, State participation in VIS is
entirely voluntary, 46 U.S.C. 12503, even though the current universal
State participation in SNS means States currently control the titling
and numbering of all undocumented vessels. States that do participate
in VIS have access to VIS data, 46 U.S.C. 12504. VIS became operational
in 2007 and 32 States now participate in it.
    SNS, VIS, and BARD data facilitate maritime law enforcement,
safety, and security. Because of our leadership position in these areas
and our role as the coordinator of the National Recreational Boating
Safety Program and our partnership with other Federal and State
agencies with similar responsibilities, we continually look for ways to
improve the efficiency and effectiveness of SNS, BARD, and VIS, and we
analyze our existing regulations to make sure they promote continuous
improvement. This final rule is the product of that analysis, and, as
described in section VI of this preamble, ``Regulatory Analyses,'' is
intended to improve the information available within and across the
databases by increasing the ability to cross-reference the information.
    The National Boating Safety Advisory Council (NBSAC) initially
suggested many of the changes in this final rule. NBSAC operates under
the Federal Advisory Committee Act to advise the Coast Guard on
recreational boating safety issues. NBSAC's 21 members include seven
representatives of State officials responsible for State boating safety
programs; seven representatives of recreational vessel manufacturers
and associated equipment manufacturers; and seven representatives of
national recreational boating organizations and from the general
public, at least five of whom must be representatives of national
recreational boating organizations. As required by 46 U.S.C. 4302(c)(4)
and 13110(c), we have consulted with NBSAC about this rulemaking.

V. Discussion of Comments and Changes

    Our NPRM proposed changes in four areas.
     Terminology: Aligning and updating the terminology used by
SNS, BARD, and VIS.
    These changes conform existing regulations to current statutory
language, reflect recent developments in boating practices and
technology, and leverage our ability to coordinate data from all three
databases;
     HINs: Making several changes related to HIN (hull
identification number) data. The most significant change requires SNS-
administering States to ensure that each SNS-numbered vessel built
since 1972, when HIN regulations first took effect, has or obtains
valid HINs. HINs are permanently marked on a vessel, and because one of
the two required HINs is always in an unexposed location, the presence
of these unique identifiers on a vessel may make it less tempting as a
target for theft. They also give law enforcement and maritime security
personnel a good way to link a vessel with its owner. SNS has collected
HIN data for many years but it is not always accurate, either because a
vessel has no HIN, or the HIN was incorrectly reported, or the HIN was
incorrectly entered into SNS. If we can rely more on the
comprehensiveness and accuracy of HIN data, SNS efficiency will be
increased (we will more quickly rely on the data), and SNS will more
effectively assist law enforcement and maritime security activity.
     PII: Requiring SNS-administering States to collect unique
personally identifiable information from SNS vessel owners. PII has
high value for law enforcement and maritime security purposes. It
provides a more reliable way to validate a vessel owner's identity than
the owner's name, which in many cases can easily be misspelled or
confused with another person's name. We believe the inclusion of PII
would make SNS easier to use (more efficient) and more effective. We
already collect PII for vessel owners included in our VIS database, but
VIS includes PII data for State-numbered vessels only for the 32 States
now participating in VIS. By requiring its collection directly for all
SNS-numbered vessels, we can obtain PII data for State-numbered vessels
in all 56 States that participate in SNS. Moreover, because all 56
States now will need to begin collecting PII, they all will soon have
all the data they need to participate voluntarily in VIS, and therefore
they may choose to participate in it. Because the value of VIS becomes
greater as the number of voluntary participants increases, expanding
participation means all participants will be able to use VIS more
effectively.
     Flexibility: Providing States with additional
administrative flexibility, for example, by removing language from 33
CFR 181.31(c) that required State boating law administrators to assign
HINs to individuals. Now, each State will be free to determine for
itself which State agency is best positioned to perform that function.
    State government officials with recreational boating
responsibilities submitted most of the public comments on the NPRM. Two
commenters asked us to extend the comment period, which originally
closed on August 5, 2010. We subsequently reopened the comment period
to accept comments until October 15, 2010 (75 FR 49869, Aug. 16, 2010).
    Ten commenters asked us to defer consideration of our rule. A
typical comment from this group was that changes not directly
associated with harmonizing terminology ``should be postponed to
accommodate the more comprehensive development and evaluation of
regulatory proposals regarding the accident reporting processes and
overall system and the information content of the report form'' and
BARD. Others in this group felt that our rulemaking could be affected
by the current national effort to develop a Uniform Certificate of
Title Act (UCOTA) for adoption by the States. We are studying the
possible need for substantive changes in accident reporting processes
and, pending completion of that study, we have withdrawn the NPRM's
proposed amendment of 33 CFR 173.59, which would have eliminated the
option of reporting a recreational boating accident to the State where
the boat is registered rather than to the State where the accident
occurred. We are also tracking the development of UCOTA. We are
prepared to open new rulemakings to make changes in accident reporting
and to align with UCOTA, but the possibility of future changes in these
two areas does not require any delay in completing the present
rulemaking.
    Six commenters said we should avoid changing terminology in ways
harmful to the States' ability to analyze historical data or that risk
data corruption during database updates. One of these commenters asked
if States would need to reissue new certificates of title to vessel
owners and those with security interests in those vessels since old
title certificates would contain outdated terminology. We do not
believe States' ability to analyze historical data will be

adversely affected by this final rule, although date queries might have
to be managed by pre- or post-regulation date. We will not require
States to reissue new certificates of title as a result of these
terminology changes. Those cases will resolve themselves as the vessels
are re-titled through sale or relocation.
    Eight commenters made suggestions about the terminology used in the
NPRM. We agreed with these suggestions and Table 1 shows the sections
where we made changes in the final rule accordingly. Many of these
commenters said we failed to align terms used in the proposed text of
33 CFR parts 174 and 187. We believe we have addressed that concern by
withdrawing the NPRM's proposed changes to accident reporting, and by
amending 33 CFR 187.101 so that the personal identification required by
part 187 matches what we require in part 174. Some of these commenters
also requested that, for better clarity, we substitute ``casualty or
accident'' for ``incident'' in 33 CFR 173.57, which we have done in
this final rule.
    Ten commenters objected to our proposal to delay the implementation
of some measures for three years, saying we should allow at least five
or six years instead. These commenters pointed out that States might
need that time to make conforming changes in their laws, to obtain
implementation funding, and to train staff to update databases and
forms. Another group of nine commenters (which to a large extent
overlapped with the group calling for a longer deferral of
implementation) cited the high costs of implementation during a
difficult economic period as a reason not to proceed with the
rulemaking. Most of the changes we are making in this final rule have
been under discussion with State officials for many years and we think
they are overdue. We are concerned that a five- or six-year delay would
have a substantial and undesirable impact on our ability to improve our
regulatory performance. Nevertheless, we are mindful of the costs and
challenges involved in implementing this final rule and of the current
economic climate and we have attempted to balance our responsibility as
regulators with our respect for our State partners and their concerns.
In the NPRM, we proposed changing the casualty or accident report
content requirements of 33 CFR 173.57 effective on January 1 of the
``fourth year following the year of the effective date of the final
rule.'' The NPRM proposed delaying the changes to the State numbering
system requirements in 33 CFR part 174, subpart B for three years. We
now have decided to delay the latter changes so that these requirements
will also be delayed until January 1, 2017--giving the States more than
four full years to prepare for their implementation.
    Twelve commenters said our proposed requirement for State personnel
to affix HINs to vessels was overly burdensome and costly. One of the
12 also said that any new HIN requirement is unnecessary because the
problem is not with inaccurate HINs on vessels but with poor data entry
controls in some States, resulting in the entry of erroneous HIN
information in their databases. We agree that incorrect data entry
contributes to HIN data problems, but from our own observations and
anecdotal information from State officials we also deduce that these
problems arise largely because some vessels never obtained valid HINs,
and in some cases vessel owners have misreported their HIN numbers. To
improve the quality of the data contained in the databases, we will
require verification of the vessel's actual valid HIN or the assignment
of such a HIN to the vessel. States can also take additional measures
to ensure data quality. We have modified the HIN verification
requirement in response to the cost and burden concerns our commenters
raised. We will not require State personnel to affix HINs to vessels
themselves. Instead, each State may use methods of its choosing to
verify that each vessel's owner has affixed a valid primary HIN.
Examples of such methods are (1) owner verification, whereby the State
could ask the owner of the vessel to visually inspect the visible HIN
that is on the boat and report the correct information back to the
State and (2) third party verification, whereby a volunteer
organization like the Coast Guard Auxiliary would perform the visual
inspection of a boats' visible HIN. The HIN requirement has been in
place since 1972 and documentation for vessel registration is already
required for that long-established process. This is an extra step in
the current process to help ensure that the visible HIN on the vessel
is properly recorded in the appropriate databases.
    Seven commenters objected to our changing ``State of principal
use'' to read ``State of principal operation'' wherever it occurs. Both
terms provide a test for identifying the State responsible for SNS,
VIS, or BARD information. One of these commenters said the change ``has
the potential to create unnecessary confusion and unintended
consequences.'' We are shifting to ``State of principal operation''
because that is the language used since 1983 in the recreational
boating statutes codified in Title 46 of the U.S. Code. Another of
these seven commenters asked us to confirm that the State in whose
waters a vessel is moored or stored in readiness for use may be that
vessel's State of principal operation. On the contrary, in amending 33
CFR 173.5, this final rule defines ``state of principal operation''
essentially the same as ``state of principal use'' was defined prior to
1983: the focus is on where the boat is operated a majority of the time
and not on where it is moored or stored. Neither a vessel owner nor the
vessel itself has to physically reside in the state where the vessel is
numbered.
    Two commenters supported our proposed addition of VIS waiver
provisions. A third commenter said we could also encourage State
participation in VIS by making it clear that States may search the VIS
database for information on vessel title and liens. It is true that VIS
is statutorily structured to capture title and lien data, if it is
voluntarily provided by participating States. At this time, States are
not providing those data because they themselves do not collect them.
If this situation changes, and States start capturing title and lien
data with VIS, those data will be available to all VIS-participating
States, as is the case with all other VIS data. Three commenters
objected to requiring a vessel owner applying for a certificate of
number to present some unique owner identification. They cited the
difficulties their States could have in adopting implementing
legislation, objected to the burden of collecting the additional
information, or questioned its value. The Coast Guard believes that it
is important to have some mechanism to differentiate between similar or
identical names. The final rule provides flexibility for each State to
determine which type of unique identifier best fits its system.
    Six commenters made specific requests for additional clarification
or modification of terminology. In most cases we have granted those
requests, but others--for example, the suggestion that we should
require the collection of information for 42 vessel subtypes--are
beyond the scope of this rulemaking.
    Seven commenters made miscellaneous and minor suggestions for
altering the proposed regulatory text. We address most of these in the
final rule.
    Table 1 lists the regulatory sections affected by this final rule,
links each section's changes to one of the four basic issues
(terminology, HINs, PII, and flexibility) previously discussed or
states ``n/a'' (not applicable), summarizes what was proposed in the
NPRM, and discusses any changes that

we are making in the final rule. It omits discussion of several non-
substantive style or format changes made solely to improve the clarity
of our regulatory language.

                                       Table 1--Changes Made by This Rule
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                                                                                Changes from the NPRM for
      33 CFR section affected            Basic issues             NPRM proposal              the final rule
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Purpose; preemptive effect, Sec.    n/a..................  Not included in the NPRM..  Add language describing
 173.1.                                                                                the basis for and extent
                                                                                of our preemption of
                                                                                State regulatory action,
                                                                                in alignment with the
                                                                                discussions of
                                                                                Federalism contained in
                                                                                the Regulatory Analyses
                                                                                sections of both the
                                                                                NPRM and this final
                                                                                rule.
Definitions, Sec.   173.3.........  Terminology..........  Add or revise definitions   Add the Title 1 U.S. Code
                                                            to align with substantive   definition of ``vessel''
                                                            changes.                    and make minor
                                                                                clarifying changes in
                                                                                the definitions of
                                                                                ``auxiliary sail,''
                                                                                ``cabin motorboat,''
                                                                                ``certificate of
                                                                                number,'' ``hull
                                                                                identification number,''
                                                                                ``inboard,'' ``open
                                                                                motorboat,'' ``owner,''
                                                                                ``personal watercraft,''
                                                                                ``State,'' and
                                                                                ``sterndrive.'' Remove
                                                                                definitions of
                                                                                ``permitted events,''
                                                                                ``towed watersports,''
                                                                                and ``whitewater
                                                                                boating'' because we are
                                                                                not using those terms in
                                                                                the final rule's version
                                                                                of amendments to part
                                                                                173.
Vessel number required, Sec.        Terminology..........  Substitute ``State of       No change.
 173.15.                                                    principal operation'' for
                                                            ``State in which the
                                                            vessel is principally
                                                            used'' to align with
                                                            statutory language.
Other numbers prohibited, Sec.      Terminology..........  Substitute ``operate'' for  No change.
 173.19.                                                    ``use'' to align with
                                                            statutory language.
Certificate of number required,     Terminology..........  Substitute ``operate'' and  No change.
 Sec.   173.21.                                             ``operated'' for ``use''
                                                            and ``used'' to align
                                                            with statutory language.
Inspection of certificate, Sec.     Terminology..........  Substitute ``operating''    No change.
 173.23.                                                    for ``using'' to align
                                                            with statutory language.
Location of certificate of number,  Terminology..........  Substitute ``operate'' for  No change.
 Sec.   173.25.                                             ``use'' to align with
                                                            statutory language.
Removal of number, Sec.   173.33..  Terminology..........  Substitute ``operated''     No change.
                                                            for ``used'' to align
                                                            with statutory language.
Coast Guard validation sticker,     Terminology..........  Substitute ``operate'' for  No change.
 Sec.   173.35.                                             ``use'' to align with
                                                            statutory language.
Applicability, Sec.   173.51......  Terminology..........  Substitute ``operated''     No change.
                                                            for ``used'' to align
                                                            with statutory language.
Contents of report, Sec.   173.57.  Terminology..........  Revise casualty and         Eliminate requirements
                                                            accident report contents    for describing the
                                                            to align terminology with   vessel's operation and
                                                            statutory language,         activity at the time of
                                                            modernize terminology,      a casualty or accident
                                                            and require additional      and whether the vessel
                                                            information about           was or was not involved
                                                            property owners and the     in a permitted event and
                                                            use of fire                 the nature of the
                                                            extinguishers;              casualty or accident
                                                            implementation deferred     (paragraphs (c)(22),
                                                            until January 1, 2017.      (23), (24), and (25) in
                                                                                the NPRM), eliminate the
                                                                                requirement for
                                                                                reporting the telephone
                                                                                numbers of property
                                                                                owners, and in response
                                                                                to a comment, change
                                                                                ``incident'' to
                                                                                ``casualty or
                                                                                accident.''
                                                                                No change in the date of
                                                                                implementation.
Where to report, Sec.   173.59....  n/a..................  Require casualty and        Withdraw proposed
                                                            accident report to be       amendment because it is
                                                            filed with the State        not related to a basic
                                                            where the incident          issue.
                                                            occurred (eliminate
                                                            current option of filing
                                                            in the State where the
                                                            vessel is principally
                                                            operated or registered).
Application for and issuance of     Terminology..........  Authorize issuance of       No change.
 certificate of number, Sec.                                original or duplicate
 173.71.                                                    certificates for clarity
                                                            and modernize terminology.
Duplicate certificate of number,    n/a..................  Remove section and          No change.
 Sec.   173.73.                                             transfer substance to
                                                            Sec.   173.71.

Validity of certificate of number,  Terminology..........  Substitute ``operated''     No change.
 Sec.   173.77.                                             for ``used'' to align
                                                            with statutory language.
Issuing authorities and reporting   Terminology..........  Substitute ``operation''    No change.
 authorities 33 CFR part 173,                               for ``use'' to align with
 Appendix A.                                                statutory language.
Applicability; preemptive effect,   n/a..................  Add preemption language to  No change.
 Sec.   174.1.                                              align with discussion of
                                                            Federalism.
Definitions, Sec.   174.3.........  Terminology..........  Add or revise definitions   For better clarity, add
                                                            to align with substantive   the Title 1 U.S. Code
                                                            changes.                    definition of ``vessel''
                                                                                and a definition for
                                                                                ``operate,'' and make
                                                                                minor clarifying changes
                                                                                in the definitions of
                                                                                ``auxiliary sail,''
                                                                                ``cabin motorboat,''
                                                                                ``certificate of
                                                                                number,'' ``hull
                                                                                identification number,''
                                                                                ``inboard,'' ``open
                                                                                motorboat,'' ``owner,''
                                                                                ``personal watercraft,''
                                                                                and ``State.''
Verification of HIN, Sec.   174.16  HINs.................  Require States to verify a  Require States to verify
                                                            vessel's compliance with    that a vessel has a
                                                            HIN requirements or affix   valid primary HIN, but
                                                            valid HIN; 3-year           State personnel will not
                                                            deferral of                 be required to affix
                                                            implementation.             valid HINs themselves.
                                                                                Defer implementation for
                                                                                more than 4 full years,
                                                                                to Jan. 1, 2017, rather
                                                                                than the three years
                                                                                proposed in the NPRM.
Contents of application for         Terminology PII......  Require unique personal     Make minor clarifying
 certificate of number, Sec.                                identifier, align and       changes in several terms
 174.17.                                                    modernize terminology; 3-   per commenter
                                                            year deferral of            suggestions.
                                                            implementation.            Restore the ZIP code,
                                                                                which appears in the
                                                                                current regulation but
                                                                                which did not appear in
                                                                                the NPRM, as a required
                                                                                element of the owner's
                                                                                address information.
                                                                                Defer implementation for
                                                                                more than 4 full years,
                                                                                to Jan. 1, 2017, rather
                                                                                than the three years
                                                                                proposed in the NPRM.
Contents of a certificate of        Terminology HINs.....  To facilitate data          Make minor clarifying
 number, Sec.   174.19.                                     verification for law        changes in several terms
                                                            enforcement and maritime    per commenter
                                                            security purposes, delete   suggestions.
                                                            current option for owners  Restore the ZIP code,
                                                            of vessels with HINs to     which appears in the
                                                            omit certain information;   current regulation but
                                                            align and modernize         which did not appear in
                                                            terminology; 3-year         the NPRM, as a required
                                                            deferral of                 element of the owner's
                                                            implementation.             address information.
                                                                                Defer implementation for
                                                                                more than 4 full years,
                                                                                to Jan. 1, 2017, rather
                                                                                than the three years
                                                                                proposed in the NPRM.
Temporary certificates, Sec.        Terminology HINs.....  Clarify, add HIN as         Clarify that, as in
 174.21.                                                    required information,       existing 33 CFR 174.17
                                                            substitute ``operated''     and 174.19, vessel
                                                            for ``used'' to align       length means overall
                                                            with statutory language;    length.
                                                            3-year deferral of         Defer implementation for
                                                            implementation.             more than 4 full years,
                                                                                to Jan. 1, 2017, rather
                                                                                than the three years
                                                                                proposed in the NPRM
Forwarding of casualty or accident  Terminology..........  Update address information  No change.
 reports, Sec.   174.121.                                   and add electronic
                                                            submission option to
                                                            allow for choices in
                                                            reporting method and
                                                            align with Federal e-
                                                            Government initiatives.
Coast Guard address, Sec.           Terminology..........  Update address information  No change.
 174.125.
Purpose and applicability;          n/a..................  Add preemption language to  No change.
 preemptive effect, Sec.   181.1.                           align with discussion of
                                                            Federalism.
Definitions, Sec.   181.3.........  Terminology..........  Add or revise definitions   Change the word order,
                                                            to align with substantive   without altering the
                                                            changes.                    sense of, the definition
                                                                                of ``manufacturer,'' per
                                                                                commenter suggestion.

Hull identification numbers         Terminology HINs       Add new (b)(revise and      Remove requirement for
 required, Sec.   181.23.            Flexibility.           relocate current language   State personnel to affix
                                                            from Sec.   181.31(c)),     valid HINs and make
                                                            and substitute ``agency     minor wording change.
                                                            designated by the issuing
                                                            authority'' for
                                                            references to the State
                                                            boating law administrator
                                                            to provide States with
                                                            additional administrative
                                                            flexibility.
Manufacturer identification code    n/a..................  Remove (c) (relocated to    No change.
 assignment, Sec.   181.31.                                 Sec.   181.23).
How is a State's participation in   Flexibility..........  Revise section for          Make minor style changes.
 VIS documented? Sec.   187.11.                             additional State
                                                            administrative
                                                            flexibility.
What information must be collected  Terminology..........  N/A.......................  Make minor clarifying
 to identify a vessel owner? Sec.                                                       changes in several terms
  187.101.                                                                              per commenter
                                                                                suggestions.
What information must be collected  Terminology..........  Add ``of vessel'' in (h),   Make minor clarifying
 to identify a vessel? Sec.                                 and revise (i)-(n) for      changes in several terms
 187.103.                                                   clarity and modern          per commenter
                                                            terminology.                suggestions.
----------------------------------------------------------------------------------------------------------------

VI. Regulatory Analyses

    We developed this final rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 14 of these statutes or executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (``Regulatory Planning and Review'') and
13563 (``Improving Regulation and Regulatory Review'') direct agencies
to assess the costs and benefits of available regulatory alternatives
and, if regulation is necessary, to select regulatory approaches that
maximize net benefits (including potential economic, environmental,
public health and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. This final rule has not been designated a
``significant regulatory action'' under section 3(f) of Executive Order
12866. Accordingly, the final rule has not been reviewed by the Office
of Management and Budget.
    We summarize the public comments we received on the NPRM in the
``Discussion of Comments and Changes'' section of this preamble. In
response to public comments we modified the NPRM proposal as shown in
Table 1. We lengthened the deferral period for implementing some
changes, like the requirement for State verification of HINs. We
modified the proposal for States to affix HIN numbers to vessels; now,
State officials will not be required to affix the HIN themselves. We
provided additional clarity to terminology and withdrew a change to the
location at which to file a boating accident report.
    These changes result in a reduction in the cost of this rule from
the initial estimate in the NPRM. Modifying the HIN verification
requirement and lengthening the deferral period reduces the present
value of the remaining costs, for the period of analysis, from $38.0
million to $21.4 million at a 7-percent discount and from $46.0 million
to $27.4 million at a 3-percent discount.
    We have found no additional data or information that further
changed our findings of the undiscounted costs for the individual
provisions of the rule (the costs of HIN verifications, the cost of
changes to boating accident reporting, and the costs to change to
Certificates of Number).
    Table 2 compares the original regulatory impacts published in the
NPRM and the revised impacts of this final rule:

    Table 2--Comparison of Regulatory Impacts, NPRM and Final Rule, 7
                          Percent Discount Rate
------------------------------------------------------------------------
                                                                  Final
                      Category                          NPRM      rule
------------------------------------------------------------------------
Annualized..........................................      $5.4      $3.1
Ten-year............................................      38.0      21.4
------------------------------------------------------------------------

    A combined ``Final Regulatory Analysis and Final Regulatory
Flexibility Analysis'' is available in the docket where indicated under
the ``Public Participation and Request for Comments'' section of this
preamble. A summary of the analysis follows:
    Coast Guard regulations in 33 CFR parts 173 and 174 implement two
statutory mandates relating to undocumented vessels equipped with
propulsion machinery of any kind. First, the regulations provide for an
SNS that assigns unique identification numbers to those vessels, as
required by 46 U.S.C. 12302. Second, the regulations provide for the
uniform reporting by each State of recreational vessel and certain
undocumented vessel casualty and accident data, as required by 46
U.S.C. 6102. The Coast Guard maintains a BARD that contains this
information.
    The Coast Guard is statutorily required to maintain a VIS, which
covers not only the undocumented vessels to which SNS applies, but also
documented vessels and any vessel titled under State law. The VIS
information system comprises data from vessels that the Coast Guard
documents and vessel data from 32 voluntarily participating States. The
VIS is used for identifying recreational, commercial, and public
vessels that are numbered or titled under the laws of a state or
territory. VIS includes information to identify vessels, vessel owners,
and information to assist law enforcement officials in the
investigation of stolen vessels or other legal investigation, such as
fraud. That information includes the personally identifiable
information that 46 U.S.C. 12501(a)(2) and (b) require.
    The Coast Guard is amending its rules to promote uniformity between
the SNS, VIS, and BARD.
    The changes from this rule will enhance the capabilities of
Federal, State, and local boating safety and law enforcement officials.
These changes will result in additional costs and benefits. In general,
this rule will--
     Require States to verify that a valid primary vessel HIN
has been affixed to each vessel for which a certificate of number is
being issued, renewed, or upon the transfer of a vessel's ownership;

     Align terminology used by SNS, BARD, and VIS to describe
recreational vessels and certain undocumented vessels and their
operations;
     Modernize terminology to reflect statutory usage and
current recreational vessel types, operations and equipment. States
have until January 1, 2017 to update their systems to use the newer
terminology;
     Require the collection of unique identification
information for each vessel owner who applies for an SNS number. States
have until January 1, 2017 to implement this change; and
     Provide additional administrative flexibility for States,
for example, by adding waiver provisions for VIS participation.
    We estimate that this rule affects approximately 12.4 million
vessels. The harmonization of terminology and the additional questions
on the forms used to collect the data for the SNS affects all
recreational vessels and certain undocumented vessels. The
harmonization of terminology and the additional questions on the forms
used to collect information from boating casualties affects those
recreational vessels and certain undocumented vessels involved in
boating accidents. There are approximately 5,094 boating accidents
annually. Approximately 91 percent of recreational boats and certain
undocumented vessels that this rule affects appear to be in compliance
with the HIN requirement already, leaving 9 percent potentially needing
to have HINs verified.\2\
---------------------------------------------------------------------------

    \2\ We obtained information on boat hull identification numbers
from Info-Link, which is the company that administers the Coast
Guard's Vessel Identification System.
---------------------------------------------------------------------------

    The implementation of these requirements will begin on January 1,
2017. This is a delay in implementation compared to the NPRM, in which
it was proposed that implementation would begin on January 1 of Year 4,
which would be 2015. Costs will be incurred beginning with the year
prior to rule implementation, 2016, due to the need to prepare for the
January 1, 2017 implementation.
    We estimated the total average costs of this rulemaking over a 10-
year period as summarized in Table 3, which compares the costs in this
final rule to those in the NPRM, which used a 3-year delay in
implementation. Cost estimates are presented at a 7-percent discount.

                                            Table 3--Summary of Costs
                                              [Millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                            Final rule                         NPRM
                                                 ---------------------------------------------------------------
                      Year                           7 Percent                       7 Percent
                                                   discount rate   Undiscounted    discount rate   Undiscounted
----------------------------------------------------------------------------------------------------------------
2012............................................            $0.0            $0.0            $0.0            $0.0
2013............................................             0.0             0.0             0.0             0.0
2014............................................             0.0             0.0            13.5            16.5
2015............................................             0.0             0.0             7.8            10.2
2016............................................             8.4            11.7             5.6             7.9
2017............................................             4.8             7.2             2.5             3.8
2018............................................             3.5             5.7             2.4             3.8
2019............................................             1.7             2.9             2.2             3.8
2020............................................             1.6             2.9             2.1             3.8
2021............................................             1.5             2.9             1.9             3.8
                                                 ---------------------------------------------------------------
    Total *.....................................            21.4            33.3            38.0            53.6
Annualized......................................             3.1             3.3             5.4             5.4
----------------------------------------------------------------------------------------------------------------
* Figures may not sum due to rounding.

    The main cost driver for this rule is the issuing authority
verification of the HIN with documentation or visual inspection of the
vessel when no proper record of the HIN exists. The issuing authority,
usually the State, has the option to choose the most suitable
verification method. Examples of such methods are (1) owner
verification, whereby the State could ask the owner of the vessel to
visually inspect the visible HIN that is on the boat and report the
correct information back to the State and (2) third party verification,
whereby a volunteer organization like the Coast Guard Auxiliary would
perform the visual inspection of a boats' visible HIN. The HIN
requirement has been in place since 1972 and documentation for vessel
registration is already required for that long-established process.
This is an extra step in the current process to help ensure that the
visible HIN on the vessel is properly recorded in the appropriate
databases.
    Some of the owners of these vessels will be able to correct any
discrepancies easily, but the States may require others to transport
the vessel to the issuing authority in order to have the HIN verified.
The HIN verification makes up approximately 89 percent (10.5 million,
non-discounted) of the first-year cost of implementation and
approximately 66 percent (1.9 million, non-discounted) of the annual
recurring cost.
    The final rule aims to improve the information within various
databases by increasing the quality of the information and by
harmonizing terminology. This enhanced information and subsequent
cross-reference between the databases are benefits that will accrue to
all users of these databases. The Coast Guard and others use the SNS,
VIS and BARD information in decision-making situations. These
situations include the methodical design of new boating safety
initiatives as well as split-second decisions made by law enforcement
officers in the field.\3\ Some of the benefits of the HIN verification
may accrue to the boat owner or other entity associated with the
vessel. For example, a verified HIN properly linked to the boat owner
can aid in the return of a stolen vessel.
---------------------------------------------------------------------------

    \3\ See the Collection of Information OMB 1625-0108 supporting
documentation for further information.
---------------------------------------------------------------------------

    The ``Final Regulatory Analysis and Final Regulatory Flexibility
Analysis'' available in the docket provides additional detail on the
costs and benefits of this rulemaking.

B. Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this rule will have a significant economic impact on
a substantial number of small entities. The term ``small entities''
comprises small businesses, not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with populations of fewer than 50,000
people.
    A combined ``Final Regulatory Analysis and Final Regulatory
Flexibility Analysis'' discussing the impact of this rule on small
entities is available in the docket where indicated under the ADDRESSES
section of this preamble. A summary of the analysis follows:
    The rule regulates recreational vessels and certain undocumented,
State-numbered vessels. Individuals, such as the recreational vessel
owners regulated by this rule, are not small entities under the
definition of a small entity in the Regulatory Flexibility Act
(RFA).\4\
---------------------------------------------------------------------------

    \4\ These are individuals that do not use vessels for commercial
purposes.
---------------------------------------------------------------------------

    We estimate that there are potentially 136,209 owners of certain
undocumented vessels used for commercial purposes that may be affected
by parts of this rulemaking. Of these, there are potentially 12,259
vessel owners who may have to have their vessel HIN verified.
    Based on available data, we determined that over 90 percent of the
owners of vessels used for commercial purposes could be small entities
according to small entity size standards defined by the Small Business
Administration and the Regulatory Flexibility Act. We found that many
small entities affected by this rule were owners and operators in the
industry categories of engine equipment manufacturing, boat dealers,
hotels, business support services and amusement and recreation.
    Based on our assessment of the impacts, we determined that all
owners or operators affected by this rule will incur a direct cost of
compliance of less than 1 percent of revenue.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that
this final rule will not have a significant economic impact on a
substantial number of small entities.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offered in our NPRM to
assist small entities in understanding the rule so that they could
better evaluate its effects on them and participate in the rulemaking.
Small businesses may send comments on the actions of Federal employees
who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

D. Collection of Information

    This rule affects three collections of information under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). It will modify
existing Office of Management and Budget (OMB) Collection of
Information; OMB Control Number 1625-0003, ``Coast Guard Boating
Accident Report Form''; OMB Control Number 1625-0070, ``Vessel
Identification System''; and OMB Control Number 1625-0108, ``Standard
Numbering System for Undocumented Vessels''.
    As defined in 5 CFR 1320.3(c), ``collection of information''
comprises reporting, recordkeeping, monitoring, posting, labeling, and
other similar actions. The title and description of the information
collections, a description of those who must collect the information,
and an estimate of the total annual burden follow. The estimate covers
the time for reviewing instructions, searching existing sources of
data, gathering and maintaining the data needed, and completing and
reviewing the collection.
    The rule will add to the recordkeeping and reporting requirements
of vessel owners and agencies involved in issuing vessel registration
and reporting boating accidents.
    The issuing authority will have to modify the boating casualty
report form, modify the certificate of number application and, in cases
where necessary, verify that valid HINs are properly affixed to the
vessel and recorded. The owners of recreational vessels and certain
undocumented vessels will have to answer more questions when they or
their vessels are involved in a boating accident and when applying for
a Certificate of Number. Owners of recreational vessels and certain
undocumented vessels will have to have the issuing authority verify a
valid HIN upon the issuance, reissue, sale or transfer of a vessel.
    For additional detail and information on the burden of this rule,
see the final regulatory analysis available in the docket. A summary of
each collection amendment and associated burden follows:
Title: Coast Guard Boating Accident Report Form
    OMB Control Number: 1625-0003.
    Summary of the Collection of Information: Federal regulations (33
CFR 173.55) require the operator of any vessel that is numbered or used
for recreational purposes to submit an accident report to the issuing
authority where the accident occurred.
    Need for Information: 46 U.S.C. 6102(a) requires a uniform marine
casualty reporting system, with regulations prescribing casualties to
be reported and the manner of reporting.
    Proposed Use of Information: The Coast Guard uses accident data and
statistical information received from the current collection to
establish National Recreational Boating Safety (RBS) Program goals,
objectives, strategies and performance measures; report RBS Program
performance to Congress in the performance and budget reports; identify
possible manufacturer defects in boats or equipment; develop boat
manufacturing standards; develop safe boating education and accident
prevention programs; and publish accident statistics in accordance with
Title 46 U.S.C. 6102.
    Description of Respondents: Operators of recreational boats and
certain undocumented vessels and governments of States.
    Number of Respondents/Reports: The estimated number of respondents
is 56, both current and revised. The revised estimated number of
reports is 5,094, compared to the current estimate of 5,000. The higher
number of reports is based on an increase in the average number of
reports, not a programmatic change.
    Frequency of Response: On occasion. Specifically, within 30 days of
a State's receipt of a report as prescribed by 33 CFR 174.121
(Forwarding of casualty or accident reports).
    Burden of Response: The estimated revised burden is 2,970 hours per
year. The current burden is 2,500.
    There is an estimated 35-minute burden to a respondent for each
report filed for an annual estimated burden of 2,970 hours for the
estimated 5,094 reports.

Title: Vessel Identification System
    OMB Control Number: 1625-0070.
    Summary of the Collection of Information: The Coast Guard
established a nationwide vessel identification system (VIS) and
centralized certain vessel documentation functions. VIS provides
participating States with access to data on vessels numbered by States.
Participation in VIS is voluntary.
    Need for Information: 46 U.S.C. 12501 mandates the establishment of
a VIS. 33 CFR part 187 prescribes the requirements of VIS.
    Proposed Use of Information: This information collection supports
the strategic goals of the Department of Homeland Security, the Coast
Guard and the Marine Safety, Security and Stewardship Directorate (CG-
5).
    Description of Respondents: Operators of recreational boats and
certain undocumented vessels and governments of States.
    Number of Respondents and Responses: The estimated number of
respondents is 56, both revised and current.
    Frequency of Response: Daily.
    Burden of Response: The estimated burden remains 5,456 hours a
year.
Title: Standard Numbering System for Undocumented Vessels
    OMB Control Number: 1625-0108.
    Summary of the Collection of Information: The SNS collects
information on undocumented vessels and vessel owners. States submit
reports annually to the Coast Guard on the number, size, construction,
etc., of the vessels they have numbered. The Coast Guard uses that
information in the publication of its annual ``Boating Statistics''
report that 46 U.S.C. 6102(b) requires and in the allocation of Federal
funds to assist in carrying out the Recreational Boating Safety (RBS)
Program which 46 U.S.C. chapter 131 established.
    Need for Information: On a daily basis or as warranted, Federal,
State, and local law enforcement personnel use SNS information from the
States' numbering systems for enforcement of boating laws or theft and
fraud investigations. In addition, information from the SNS increases
officer safety by assisting boarding officers in determining how best
to approach a vessel suspected of illegal activity.
    Proposed Use of Information: Federal, State, and local law
enforcement personnel use SNS information from the States' numbering
systems for enforcement of boating laws or theft and fraud
investigations. The Coast Guard uses the information in the publication
of an annual ``Boating Statistics'' report that 46 U.S.C. 6102(b)
requires and in the allocation of Federal funds to assist States in
carrying out the Recreational Boating Safety (RBS) Program, which 46
U.S.C. chapter 131 established.
    Description of Respondents: Operators of recreational boats and
certain undocumented vessels and governments of States.
    Number of Respondents and Responses: The estimated number of
respondents is 56, both revised and current. The revised estimate of
the number of responses is 4,644,142 compared to the current 4,333,333.
    Frequency of Response: Daily as necessary.
    Burden of Response: The revised estimate of the number of burden
hours per year is 385,464, compared to the current burden hours of
286,458.
    There are no collection costs to the Federal Government for the SNS
because States implement the program.
    As required by 44 U.S.C. 3507(d), we submitted a copy of the
proposed rule to the Office of Management and Budget (OMB) for its
review of the collections of information. OMB has not yet completed its
review of these collections. Therefore, the Coast Guard cannot enforce
the collections contained in 33 CFR 173.57(c), 174.16(b), 174.17(c), or
174.19(c) until its information collection requests are approved by
OMB. We will publish a document in the Federal Register informing the
public of OMB's decision to approve, modify, or disapprove the
collection.
    You are not required to respond to a collection of information
unless it displays a currently valid OMB control number.

E. Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. It is well settled that States may
not regulate in categories reserved for regulation by the Coast Guard.
    The regulations in 33 CFR part 173 subparts A, B, and D, and part
174 subparts A, B, and D are issued pursuant to 46 U.S.C. 12301 and
12302 and expressly preempt conflicting State or local regulation.
Congress intended these regulations to be preemptive as State numbering
systems, once approved by the Secretary, must be consistent with the
Federal standard numbering system and must adopt the definitions of
relevant terms prescribed by the Secretary. Should a State amend its
numbering system without the approval of the Secretary, or administer
its system in an inconsistent manner to the Federal numbering system,
the Secretary may withdraw his or her approval. Therefore, since State
numbering systems cannot deviate from the Federal numbering system
prescribed by the Secretary, the Federal regulations are preemptive.
The regulations in 33 CFR part 173 subpart C and part 174 subpart C are
issued pursuant to 46 U.S.C. 6101. 46 U.S.C. 6101 states that the
``Secretary shall prescribe regulations on the marine casualties to be
reported and the manner of reporting.'' The statute requires, among
other things, the reporting of the death of an individual, serious
injury to an individual, material loss of property, material damage
affecting the seaworthiness or efficiency of the vessel, and
significant harm to the environment.
    The Supreme Court has held that ``Congress intended that the Coast
Guard regulations be the sole source of a vessel's reporting
obligations * * *'' and that Coast Guard regulations promulgated
pursuant to the authority of 46 U.S.C. 6101 were not intended by
Congress ``to be cumulative to those enacted by each political
subdivision whose jurisdiction a vessel enters.'' See the decision of
the Supreme Court in the consolidated cases of United States v. Locke
and Intertanko v. Locke, 529 U.S. 89, 115-116. Therefore, the Coast
Guard's view is that regulations issued under the authority of 46
U.S.C. 6101 for marine casualty reporting requirements have preemptive
effect over State regulation in these fields, except to the extent that
Congress requires the Coast Guard to allow State casualty reporting
systems pursuant to 46 U.S.C. chapter 131.
    The regulations in 33 CFR part 181 are issued pursuant to 46
U.S.C., chapter 43; specifically section 4302. Under another section of
that chapter, section 4306, Federal regulations establishing minimum
safety standards for recreational vessels and associated equipment, and
establishing procedures and tests required to measure conformance with
those standards, preempt State law, unless the State law is identical
to a Federal regulation or a State is specifically provided an
exemption to those regulations, or permitted to regulate marine safety
articles carried or used to address a hazardous condition or
circumstance unique to that State.
    The regulations in 33 CFR part 187 are currently issued pursuant to
46

U.S.C. 2103. We are adding 46 U.S.C. 12501 as an additional authority.
Because State participation in the VIS is entirely voluntary, the
regulations in this part do not have preemptive impact over State
regulation in this field. However, once electing to participate, a
State must comply with the requirements of this part to ensure
integrity and uniformity of information in both the SNS and VIS.
    The Coast Guard recognizes the key role State and local governments
may have in making regulatory determinations. Additionally, sections 4
and 6 of Executive Order 13132 require that for any rules with
preemptive effect, the Coast Guard must provide elected officials of
affected State and local governments and their representative national
organizations the notice and opportunity for appropriate participation
in any rulemaking proceedings and to consult with such officials early
in the rulemaking process. Therefore, in the NPRM, we invited affected
State and local governments and their representative national
organizations to indicate their desire for participation and
consultation in this rulemaking process by submitting comments to the
docket. We received no comments from an elected official or
organization that represents such officials, though we did receive many
comments from appointed State officials who have responsibility for
administering boating safety laws, and from the national organization
that represents those officials. We meet regularly with many of these
officials and in most cases they have long been aware of our interest
in the changes made by this final rule. Their concerns, our position on
those concerns, and the actions we have taken to address them, are
discussed in detail in part V of this preamble, ``Discussion of
Comments and Changes.''
    Additionally, President Obama's Memorandum of May 20, 2009 titled
``Preemption,'' states that ``preemption of State law by executive
departments and agencies should be undertaken only with full
consideration of the legitimate prerogatives of the States and with a
sufficient legal basis for preemption.'' To that end, when a department
or agency intends to preempt State law, it should do so only if
justified under legal principles governing preemption, including those
outlined in Executive Order 13132, and it should also include
preemption provisions in the codified regulation. In accordance with
this memorandum, the Coast Guard has included in the final rule
regulatory text the statutory provisions granting it preemption
authority as well as language indicating its intent to preempt
conflicting state or local regulation, when required.

F. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this rule will not result in
such an expenditure, we do discuss the effects of this rule elsewhere
in this preamble. No public comments were received on this subject in
response to our NPRM, and we made no changes affecting the subject for
the final rule.

G. Taking of Private Property

    This rule will not cause a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights. No public comments were received on this subject in response to
our NPRM, and we made no changes affecting the subject for the final
rule.

H. Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden. No public comments were
received on this subject in response to our NPRM, and we made no
changes affecting the subject for the final rule.

I. Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children. No public comments were received on
this subject in response to our NPRM, and we made no changes affecting
the subject for the final rule.

J. Indian Tribal Governments

    This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes. No public comments
were received on this subject in response to our NPRM, and we made no
changes affecting the subject for the final rule.

K. Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. No public comments were received on this subject in response
to our NPRM, and we made no changes affecting the subject for the final
rule.

L. Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise be impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This rule does not use technical standards. Therefore, we did not
consider the use of voluntary consensus standards.

M. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA; 42 U.S.C. 4321-4370f), and have concluded
that this action is one of a category of actions which do not
individually or cumulatively have a significant effect on the human
environment. This rule is categorically excluded under section 2.B.2,
figure 2-1, paragraph (34)(a) and (d) of the Instruction. This rule
involves regulations which are editorial or procedural, such as those
updating addresses or establishing application

procedures; and regulations concerning manning, documentation,
admeasurement, inspection, and equipping of vessels. An environmental
analysis checklist and a categorical exclusion determination are
available in the docket where indicated under ADDRESSES.

List of Subjects

33 CFR Part 173

    Marine safety, Reporting and recordkeeping requirements.

33 CFR Part 174

    Intergovernmental relations, Marine safety, Reporting and
recordkeeping requirements.

33 CFR Part 181

    Labeling, Incorporation by reference, Marine safety, Reporting and
recordkeeping requirements.

33 CFR Part 187

    Administrative practice and procedure, Marine safety, Reporting and
recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR parts 173, 174, 181, and 187 as follows:

PART 173--VESSEL NUMBERING AND CASUALTY AND ACCIDENT REPORTING

0
1. The authority citation for part 173 is revised to read as follows:

    Authority:  31 U.S.C. 9701; 46 U.S.C. 2110, 6101, 12301, 12302;
OMB Circular A-25; Department of Homeland Security Delegation No.
0170.1.

0
2. Revise Sec.  173.1 to read as follows:

Sec.  173.1  Purpose; preemptive effect.

    This part prescribes requirements for numbering vessels and for
reporting casualties and accidents to implement sections 6101, 6102,
12301, and 12302 of Title 46, United States Code. The regulations in
subparts A, B, and D of this part have preemptive effect over
conflicting State or local regulation. The regulations in subpart C of
this part have preemptive effect over State or local regulation within
the same field, except to the extent that Congress requires the Coast
Guard to allow State casualty reporting systems pursuant to 46 U.S.C.
chapter 131.

0
3. Revise Sec.  173.3 to read as follows:

Sec.  173.3  Definitions.

    As used in this part--
    Airboat means a vessel that is typically flat-bottomed and
propelled by an aircraft-type propeller powered by an engine.
    Auxiliary sail means a vessel with sail as its primary method of
propulsion and mechanical propulsion as its secondary method.
    Cabin motorboat means a vessel propelled by propulsion machinery
and providing enclosed spaces inside its structure.
    Certificate of number means the certificate required by Sec.
173.21 of this part.
    Houseboat means a motorized vessel that is usually non-planing and
designed primarily for multi-purpose accommodation spaces with low
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a number required by 33 CFR
181.23.
    Inboard, in the context of an engine, means an engine mounted
inside the confines of a vessel which powers a drive shaft that turns a
water jet impeller or that runs through the bottom of the hull and is
attached to a propeller at the other end.
    Inflatable boat means a vessel that uses air-filled flexible fabric
for buoyancy.
    Issuing authority means a State listed in Appendix A of this part
as having a numbering system approved by the Coast Guard or the Coast
Guard itself when a State numbering system has not been approved.
    Open motorboat means a vessel equipped with propulsion machinery
and having an open load carrying area that does not have a continuous
deck to protect it from the entry of water.
    Operate means use, navigate, or employ.
    Operator means the person who is in control or in charge of a
vessel while it is in operation.
    Outboard, in the context of an engine, means an engine with
propeller or water jet integrally attached, which is usually mounted at
the stern of a vessel.
    Owner means a person, other than a secured party, having property
rights in or title to a vessel, including persons entitled to use or
possess a vessel subject to a security interest in another person, but
excluding lessees under a lease not intended as security.
    Paddlecraft means a vessel powered only by its occupants, using a
single or double- bladed paddle as a lever without the aid of a fulcrum
provided by oarlocks, thole pins, crutches, or similar arrangements.
    Person means an individual, firm, partnership, corporation,
company, association, joint-stock association, or governmental entity
and includes a trustee, receiver, assignee, or similar representative
of any of them.
    Personal watercraft means a vessel propelled by a water-jet pump or
other machinery as its primary source of motive power and designed to
be operated by a person sitting, standing, or kneeling on the vessel,
rather than sitting or standing within the vessel's hull.
    Pod drive means an engine mounted in front of the transom of a
vessel and attached through the bottom of the hull to a steerable
propulsion unit.
    Pontoon boat means a vessel with a broad, flat deck that is affixed
on top of closed cylinders which are used for buoyancy, the basic
design of which is usually implemented with two rows of floats as a
catamaran or with three rows of floats as a trimaran.
    Reporting authority means a State listed in Appendix A of this part
as having a numbering system approved by the Coast Guard or the Coast
Guard itself when a numbering system has not been approved.
    Rowboat means an open vessel manually propelled by oars.
    Sail only means a vessel propelled only by sails.
    State means a State of the United States, the District of Columbia,
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands,
Puerto Rico, the U.S. Virgin Islands, and any other territory or
possession of the United States.
    State of principal operation means the State in whose waters a
vessel is or will be operated most during a calendar year.
    Sterndrive means an engine, powering a propeller through a series
of shafts and gears, mounted in front of the transom of a vessel and
attached through the transom to a drive unit that is similar to the
lower unit of an outboard; and may also be known as an inboard-outdrive
or an inboard-outboard.
    Vessel means every description of watercraft or other artificial
contrivance used or capable of being used as a means of transportation
on water.

Sec.  173.15  [Amended]

0
4. In Sec.  173.15(a)(1) and (b), remove the words ``State in which the
vessel is principally used'' wherever they occur, and add, in their
place, the words ``State of principal operation''.

Sec.  173.19  [Amended]

0
5. In Sec.  173.19, remove the word ``use'' and add, in its place, the
word ``operate''.

Sec.  173.21  [Amended]

0
6. Amend Sec.  173.21 as follows:
0
a. In paragraph (a) introductory text, remove the word ``use'' and add,
in its place, the word ``operate''; and

0
b. In paragraph (a)(1), remove the word ``used'' and add, in its place,
the word ``operated''.

Sec.  173.23  [Amended]

0
7. In Sec.  173.23, remove the word ``using'' and add, in its place,
the word ``operating''.

Sec.  173.25  [Amended]

0
8. In Sec.  173.25, remove the word ``use'' and add, in its place, the
word ``operate''.

Sec.  173.33  [Amended]

0
9. In Sec.  173.33(c), remove the word ``used'' and add, in its place,
the word ``operated''.

Sec.  173.35  [Amended]

0
10. In Sec.  173.35, remove the word ``use'' and add, in its place, the
word ``operate''.

Sec.  173.51  [Amended]

0
11. In Sec.  173.51(a) introductory text and (a)(1), remove the word
``used'' and add, in its place, the word ``operated''.

0
12. Revise Sec.  173.57 to read as follows:

Sec.  173.57  Contents of report.

    (a) Each report required by Sec.  173.55 of this subpart must be in
writing, dated upon completion, and signed by the person who prepared
it.
    (b) Until January 1, 2017, each report must contain, if available,
at least the following information about the casualty or accident:
    (1) Number and name of each vessel involved;
    (2) Name and address of each owner of each vessel involved;
    (3) Name of the nearest city or town, the county, the State, and
the body of water;
    (4) Time and date the casualty or accident occurred;
    (5) Location on the water;
    (6) Visibility, weather, and water conditions;
    (7) Estimated air and water temperatures;
    (8) Name, address, age, or date of birth, telephone number, vessel
operating experience, and boating safety training of the operator
making the report;
    (9) Name and address of each operator of each vessel involved;
    (10) Number of persons onboard or towed on skis by each vessel;
    (11) Name, address, and date of birth of each person injured or
killed;
    (12) Cause of each death;
    (13) Weather forecasts available to and weather reports used by the
operator before and during the use of the vessel;
    (14) Name and address of each owner of property involved;
    (15) Availability and use of personal flotation devices;
    (16) Type and amount of each fire extinguisher used;
    (17) Nature and extent of each injury;
    (18) Description of all property damage and vessel damage with an
estimate of the cost of all repairs;
    (19) Description of each equipment failure that caused or
contributed to the cause of the casualty;
    (20) Description of the vessel casualty or accident;
    (21) Type of vessel operation (cruising, drifting, fishing,
hunting, skiing, racing, or other), and the type of accident
(capsizing, sinking, fire, explosion, or other);
    (22) Opinion of the person making the report as to the cause of the
casualty, including whether or not alcohol or drugs, or both, was a
cause or contributed to causing the casualty;
    (23) Make, model, type (open, cabin, house, or other), beam width
at widest point, length, depth from transom to keel, horsepower,
propulsion (outboard, inboard, inboard outdrive, sail, or other), fuel
(gas, diesel, or other), construction (wood, steel, aluminum, plastic,
fiberglass, or other), and year built (model year) of the reporting
operator's vessel;
    (24) Name, address, and telephone number of each witness;
    (25) Manufacturer's hull identification number, if any, of the
reporting operator's vessel; and
    (26) Name, address, and telephone number of the person submitting
the report.
    (c) As of January 1, 2017, each report must contain, if available,
at least the following information about the casualty or accident:
    (1) Number and name of each vessel involved;
    (2) Name and address of each owner of each vessel involved;
    (3) Name of the nearest city or town, the county, the State, and
the body of water;
    (4) Time and date the casualty or accident occurred;
    (5) Location on the water;
    (6) Visibility, weather, and water conditions;
    (7) Estimated air and water temperatures;
    (8) Name, address, age, or date of birth, telephone number, vessel
operating experience, and boating safety training of the operator
making the report;
    (9) Name and address of each operator of each vessel involved;
    (10) Number of persons onboard or towed on skis by each vessel;
    (11) Name, address, and date of birth of each person injured or
killed;
    (12) Cause of each death;
    (13) Weather forecasts available to and weather reports used by the
operator before and during the use of the vessel;
    (14) Name and address of each owner of property involved;
    (15) Availability and use of personal flotation devices;
    (16) Type and number of each fire extinguisher used;
    (17) Nature and extent of each injury;
    (18) Description of all property damage and vessel damage with an
estimate of the cost of all repairs;
    (19) Description of each equipment failure that caused or
contributed to the cause of the casualty;
    (20) Description of the vessel casualty or accident;
    (21) Type of vessel operation (cruising, drifting, fishing,
hunting, skiing, racing, or other), and the type of accident
(capsizing, sinking, fire, explosion, or other);
    (22) Opinion of the person making the report as to the cause of the
casualty, including whether or not alcohol or drugs, or both, was a
cause of or contributed to causing the casualty.
    (23) Characteristics of the reporting operator's vessel,
including--
    (i) Make;
    (ii) Model;
    (iii) Type: authorized terms are ``air boat'', ``auxiliary sail'',
``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon
boat'', ``rowboat'', ``sail only'', or ``other'';
    (iv) Beam width at widest point;
    (v) Overall length of vessel;
    (vi) Depth from transom to keel;
    (vii) Horsepower;
    (viii) Propulsion: authorized terms are ``air thrust'', ``manual'',
``propeller'', ``sail'', ``water jet'', or ``other'';
    (ix) Fuel: authorized terms are ``electric'', ``diesel'', ``gas'',
or ``other'';
    (x) Engine drive type: authorized terms are ``inboard'',
``outboard'', ``pod drive'', ``sterndrive'', or ``other'';
    (xi) Hull material: authorized terms are ``aluminum'',
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'',
``wood'', or ``other''; and
    (xii) Model year;
    (24) Name, address, and telephone number of each witness;
    (25) Manufacturer's hull identification number, if any, of the
reporting operator's vessel; and
    (26) Name, address, and telephone number of the person submitting
the report.

0
13. Revise Sec.  173.71 to read as follows:

Sec.  173.71  Application for and issuance of certificate of number.

    (a) The owner of a vessel to which Sec.  173.11 of this part
applies and for which a certificate of number is required may apply for
that certificate to the issuing authority for the vessel's State of
principal operation listed in Appendix A of this part. The application
must be made in the manner specified by the issuing authority and must
be accompanied by payment of any fee required by the issuing authority.
    (b) Upon determination that the owner's application for a
certificate of number complies with the requirements of paragraph (a)
of this section, the issuing authority may issue a certificate of
number.
    (c) A duplicate certificate of number may be applied for and issued
as provided by paragraphs (a) and (b) of this section upon the owner's
statement that the original certificate is lost or destroyed.

Sec.  173.73  [Removed and Reserved]

0
14. Remove and reserve Sec.  173.73.

Sec.  173.77  [Amended]

0
15. In Sec.  173.77(d), remove the word ``used'' and add, in its place,
the word ``operated''.

Appendix A [Amended]

0
16. In Appendix A to part 173, in paragraph (c), remove the word
``use'' and add, in its place, the word ``operation''.

PART 174--STATE NUMBERING AND CASUALTY REPORTING SYSTEMS

0
17. The authority citation for part 174 continues to read as follows:

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

0
18. Revise Sec.  174.1 to read as follows:

Sec.  174.1  Applicability; preemptive effect.

    This part establishes a standard numbering system for vessels and a
uniform vessel casualty reporting system for vessels by prescribing
requirements applicable to the States for the approval of State
numbering systems. The regulations in subparts A, B, and D of this part
have preemptive effect over conflicting State or local regulation. The
regulations in subpart C of this part have preemptive effect over State
or local regulation within the same field, except to the extent that
Congress requires the Coast Guard to allow State casualty reporting
systems pursuant to 46 U.S.C. chapter 131.

0
19. Revise Sec.  174.3 to read as follows:

Sec.  174.3  Definitions.

    As used in this part--
    Airboat means a vessel that is typically flat-bottomed and
propelled by an aircraft-type propeller powered by an engine.
    Auxiliary sail means a vessel with sail as its primary method of
propulsion and mechanical propulsion as its secondary method.
    Cabin motorboat means a vessel propelled by propulsion machinery
and providing enclosed spaces inside its structure.
    Certificate of number means the certificate required by 33 CFR
173.21.
    Charter fishing means a vessel carrying a passenger(s) for hire who
is (are) engaged in recreational fishing.
    Commercial fishing means a vessel that commercially engages in the
catching, taking, or harvesting of fish which, either in whole or in
part, is intended to enter commerce through sale, barter, or trade.
    Houseboat means a motorized vessel that is usually non-planing and
designed primarily for multi-purpose accommodation spaces with low
freeboard and little or no foredeck or cockpit.
    Hull identification number or HIN means a number required by 33 CFR
181.23.
    Inboard, in the context of an engine, means an engine mounted
inside the confines of a vessel which powers a drive shaft that turns a
water jet impeller or that runs through the bottom of the hull and is
attached to a propeller at the other end.
    Inflatable boat means a vessel that uses air-filled flexible fabric
for buoyancy.
    Open motorboat means a vessel equipped with propulsion machinery
and having an open load carrying area that does not have a continuous
deck to protect it from the entry of water.
    Operate means use, navigate, or employ.
    Operator means the person who is in control or in charge of a
vessel while it is in operation.
    Outboard, in the context of an engine, means an engine with
propeller or water jet integrally attached, which is usually mounted at
the stern of a vessel.
    Owner means a person, other than a secured party, having property
rights in or title to a vessel, including persons entitled to use or
possess a vessel subject to a security interest in another person, but
excluding lessees under a lease not intended as security.
    Paddlecraft means a vessel powered only by its occupants, using a
single or double bladed paddle as a lever without the aid of a fulcrum
provided by oarlocks, thole pins, crutches, or similar arrangements.
    Person means an individual, firm, partnership, corporation,
company, association, joint-stock association, or governmental entity
and includes a trustee, receiver, assignee, or similar representative
of any of them.
    Personal watercraft means a vessel propelled by a water-jet pump or
other machinery as its primary source of motive power and designed to
be operated by a person sitting, standing, or kneeling on the vessel,
rather than sitting or standing within the vessel's hull.
    Pod drive means an engine mounted in front of the transom of a
vessel and attached through the bottom of the hull to a steerable
propulsion unit.
    Pontoon boat means a vessel with a broad, flat deck that is affixed
on top of closed cylinders which are used for buoyancy, the basic
design of which is usually implemented with two rows of floats as a
catamaran or with three rows of floats as a trimaran.
    Reporting authority means a State listed in 33 CFR part 173,
Appendix A, as having a numbering system approved by the Coast Guard or
the Coast Guard itself when a numbering system has not been approved.
    Rowboat means an open vessel manually propelled by oars.
    Sail only means a vessel propelled only by sails.
    State means a State of the United States, the District of Columbia,
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands,
Puerto Rico, the U.S. Virgin Islands, and any other territory or
possession of the United States.
    State of principal operation means the State in whose waters a
vessel is or will be operated most during a calendar year.
    Sterndrive means an engine, powering a propeller using shifts and
gears, mounted in front of the transom of a vessel and attached through
the transom to a drive unit that is similar to the lower unit of an
outboard, which may also be known as an inboard-outdrive or an inboard-
outboard.
    Vessel means every description of watercraft or other artificial
contrivance used, or capable of being used, as a means of
transportation on water.

0
20. Add new Sec.  174.16 to read as follows:

Sec.  174.16  Verification of hull identification numbers (HINs).

    (a) As used in this section, ``action'' means an action by an
issuing authority listed in 33 CFR part 173, Appendix A, to issue,
renew, or update the ownership information for a certificate

of number under this part but does not include the issuance of a
temporary certificate under 33 CFR 174.21.
    (b) As of January 1, 2017, before taking any action relating to a
vessel imported or manufactured on or after November 1, 1972, the
issuing authority must determine whether the vessel has a primary HIN
meeting the requirements of 33 CFR part 181, subpart C.
    (c) If, pursuant to paragraph (b) of this section, the issuing
authority determines that the vessel does not have a primary HIN
meeting the requirements of 33 CFR part 181, subpart C, then before
taking any action the issuing authority must--
    (1) Assign such a primary HIN to the vessel; and
    (2) Verify that the owner of the vessel has permanently affixed the
assigned primary HIN to the vessel in compliance with 33 CFR part 181,
subpart C.

0
21. Revise Sec.  174.17 to read as follows:

Sec.  174.17  Contents of application for certificate of number.

    (a) An application for a certificate of number must contain the
following information:
    (1) Name of owner.
    (2) Address of owner, including ZIP code.
    (3) Owner identifier, which must be the owner's tax identification
number, date of birth together with driver's license number, or date of
birth together with other unique number.
    (4) State of principal operation.
    (5) Number previously issued by an issuing authority.
    (6) Application type: Authorized terms are ``new number'',
``renewal of number'', or ``transfer of ownership''.
    (7) Primary operation: Authorized terms are, ``charter fishing'',
``commercial fishing'', ``commercial passenger carrying'', ``dealer or
manufacturer demonstration'', ``other commercial operation'',
``pleasure'', or ``rent or lease''.
    (8) Make and model of vessel.
    (9) Model year.
    (10) Hull identification number, if any.
    (11) Overall length of vessel.
    (12) Vessel type: Authorized terms are ``air boat'', ``auxiliary
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon
boat'', ``rowboat'', ``sail only'', or ``other''.
    (13) Hull material: Authorized terms are ``aluminum'',
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'',
``wood'', or ``other''.
    (14) Propulsion type: Authorized terms are ``air thrust'',
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (15) Engine drive type: Authorized terms are ``inboard'',
``outboard'', ``pod drive'', ``sterndrive'', or ``other''.
    (16) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'',
or ``other''.
    (17) Signature of the owner.
    (b)(1) An application made by a manufacturer or dealer for a number
that is to be temporarily affixed to a vessel for demonstration or test
purposes may omit the information under paragraphs (a)(9) through
(a)(17) of this section.
    (2) An application made by an owner of a vessel without propulsion
machinery may omit the information under paragraphs (a)(16) and (a)(17)
of this section.
    (c) For an issuing authority listed in 33 CFR part 173, Appendix A
on April 27, 2012, the requirements of paragraphs (a) and (b) of this
section apply on January 1, 2017. Between April 27, 2012 and January 1,
2017, the issuing authority may continue to accept applications
containing the contents required by that reporting authority prior to
April 27, 2012.

0
22. Revise Sec.  174.19 to read as follows:

Sec.  174.19  Contents of a certificate of number.

    (a) Except as allowed in paragraph (b) of this section, each
certificate of number must contain the following information:
    (1) Number issued to the vessel.
    (2) Expiration date of the certificate.
    (3) State of principal operation.
    (4) Name of owner.
    (5) Address of owner, including ZIP code.
    (6) Primary operation: Authorized terms are, ``charter fishing'',
``commercial fishing'', ``commercial passenger carrying'', ``dealer or
manufacturer demonstration'', ``other commercial operation'',
``pleasure'', or ``rent or lease''.
    (7) Hull identification number, if any.
    (8) Make and model of vessel.
    (9) Model year.
    (10) Overall length of vessel.
    (11) Vessel type: Authorized terms are ``air boat'', ``auxiliary
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon
boat'', ``rowboat'', ``sail only'', or ``other''.
    (12) Hull material: Authorized terms are ``aluminum'',
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'',
``wood'', or ``other''.
    (13) Propulsion type: Authorized terms are ``air thrust'',
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (14) Engine drive type: Authorized terms are ``inboard'',
``outboard'', ``pod drive'', ``sterndrive'', or ``other''.
    (15) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'',
or ``other''.
    (b)(1) A certificate of number issued to a manufacturer or dealer
for use on a vessel for test or demonstration purposes may omit the
information under paragraphs (a)(7) through (a)(15) of this section if
the word ``manufacturer'' or ``dealer'' is plainly marked on the
certificate.
    (2) A certificate of number issued for a vessel without propulsion
machinery may omit paragraphs (a)(14) and (a)(15) of this section if
the words ``manual vessel'' are plainly marked on the certificate.
    (3) An issuing authority may print on the certificate of number a
quotation of State boating regulations or other boating-related
information, such as safety reminders, registration, or law enforcement
contact information.
    (c) For an issuing authority listed in Appendix A of this part on
April 27, 2012, the requirements of paragraphs (a) and (b) of this
section apply on January 1, 2017. Between April 27, 2012 and January 1,
2017, the issuing authority may continue to issue certificates of
number containing the contents in effect on April 27, 2012.

0
23. Revise Sec.  174.21 to read as follows:

Sec.  174.21  Temporary certificates.

    (a) An issuing authority may issue a temporary certificate of
number, valid for no more than 60 days from its date of issuance.
    (b) Each temporary certificate must contain the following
information:
    (1) Vessel's hull identification number, if any.
    (2) Make of vessel.
    (3) Overall length of vessel.
    (4) Type of propulsion.
    (5) State in which vessel is principally operated.
    (6) Name of owner.
    (7) Address of owner, including ZIP code.
    (8) Signature of owner.
    (9) Date of issuance.
    (10) Notice to the owner that the temporary certificate is valid
for the time it specifies, not to exceed 60 days from the date of
issuance.
    (c) For an issuing authority listed in 33 CFR part 173, Appendix A
on April 27, 2012, the requirements of paragraph (b) of this section
apply on January 1, 2017. Between April 27, 2012 and January 1, 2017,
the issuing authority may continue to issue temporary certificates
containing the contents in effect on April 27, 2012.

0
24. Revise Sec.  174.121 to read as follows:

Sec.  174.121  Forwarding of casualty or accident reports.

    Within 30 days of the receipt of a casualty or accident report, the
reporting authority receiving the report must forward a paper or
electronic copy of that report to the Commandant (CG-5422), U.S. Coast
Guard, 2100 Second St. SW., Stop 7581, Washington, DC 20593-7581.

0
25. Revise Sec.  174.125 to read as follows:

Sec.  174.125  Coast Guard address.

    The report required by Sec.  174.123 of this subpart must be sent
to the Commandant (CG-5422), U.S. Coast Guard, 2100 Second St. SW.,
Stop 7581, Washington, DC 20593-7581.

PART 181--MANUFACTURER REQUIREMENTS

0
26. The authority citation for part 181 is revised to read as follows:

    Authority:  46 U.S.C. 4302; Department of Homeland Security
Delegation No. 0170.1 (92).

0
27. Revise Sec.  181.1 to read as follows:

Sec.  181.1  Purpose and applicability; preemptive effect.

    This part prescribes requirements for the certification of boats
and associated equipment and identification of boats to which 46 U.S.C.
chapter 43 applies. The regulations in this part have the preemptive
effect described in 46 U.S.C. 4306.

0
28. Amend Sec.  181.3 by revising the definition of ``Manufacturer''
and by adding, in alphabetical order, the definition of ``State'' to
read as follows:

Sec.  181.3  Definitions.

* * * * *
    Manufacturer means any person engaged in--
    (1) The manufacture, construction, or assembly of boats or
associated equipment; or
    (2) The importation of boats, associated equipment, or the
components thereof, into the United States for sale.
* * * * *
    State means a State of the United States, Guam, the Commonwealth of
Puerto Rico, the Virgin Islands, American Samoa, the District of
Columbia, the Commonwealth of the Northern Mariana Islands, and any
other territory or possession of the United States.

0
29. Revise Sec.  181.23 to read as follows:

Sec.  181.23  Hull identification numbers required.

    (a) A manufacturer must identify each boat produced or imported
with primary and secondary hull identification numbers permanently
affixed in accordance with Sec.  181.29 of this subpart.
    (b) A person who manufactures or imports a boat for his or her own
use and not for sale must obtain the required hull identification
number in accordance with the requirements of the issuing authority
listed in 33 CFR part 173, Appendix A for the boat's State of principal
operation and permanently affix the HIN to the boat in accordance with
Sec.  181.29 of this subpart.
    (c) No person may assign the same HIN to more than one boat.

0
30. Revise Sec.  181.31 to read as follows:

Sec.  181.31  Manufacturer identification code assignment.

    (a) Each person required by Sec.  181.23(a) of this part to affix
hull identifications numbers must request a manufacturer identification
code in writing from the Commandant (CG-54223), 2100 Second St. SW.,
Stop 7581, Washington, DC 20593-7581. The request must indicate the
manufacturer's name and U.S. address along with the general types and
lengths of boats that will be manufactured.
    (b) For boats manufactured outside of the jurisdiction of the
United States, a U.S. importer must obtain a manufacturer
identification code as required by paragraph (a) of this section. The
request must indicate the importer's name and U.S. address along with a
list of the manufacturers, their addresses, and the general types and
sizes of boats that will be imported. If a nation has a hull
identification number system which has been accepted by the Coast Guard
for the purpose of importing boats, it may be used by the importer
instead of the one specified within this subpart. To request a list of
those nations having such a numbering system, write to the Commandant
(CG-54223), 2100 Second St. SW., Stop 7581, Washington, DC 20593-7581.

PART 187--VESSEL IDENTIFICATION SYSTEM

0
31. The authority citation for part 187 is revised to read as follows:

    Authority: 46 U.S.C. 2103, 12501; Department of Homeland
Security Delegation No. 0170.1(92).

0
32. Revise Sec.  187.11 to read as follows:

Sec.  187.11  What are the procedures to participate in VIS?

    (a) A State wanting to participate in VIS must inform the
Commandant in writing, describing its willingness and ability to comply
with each requirement of Sec.  187.201 of this part. If the Commandant
is satisfied that the State will comply fully with Sec.  187.201 of
this part, the State will be allowed to participate in VIS and will be
listed in Appendix A to this part, for as long as the Commandant
determines that the State complies fully with Sec.  187.201 of this
part.
    (b) A State wanting to participate in VIS but unable to comply with
one or more requirements of Sec.  187.201 of this part may participate
in VIS under one or more waivers, for good cause shown. For purposes of
this section, ``good cause'' includes the existence of State law
prohibiting full compliance. A State wanting to participate in VIS
under one or more waivers must--
    (1) Inform the Commandant in writing;
    (2) Describe the requirement or requirements for which waiver is
sought and the good cause for noncompliance; and
    (3) Describe the steps the State intends to take to remove the good
cause and the anticipated time needed to do so.
    (c) The Commandant may allow a State to participate in VIS under
one or more waivers, pursuant to a memorandum of agreement between the
Coast Guard and the State.
    (1) The memorandum of agreement recites the information provided by
the State under paragraph (b) of this section and is valid for not more
than 3 years, during which time the State will be deemed to participate
in VIS and be listed in Appendix A to this part.
    (2) The State may withdraw from the memorandum of agreement and
participation in VIS upon written notice to the Commandant. The
Commandant may terminate the memorandum of agreement and the State's
participation in VIS for non-compliance with the terms of the
memorandum.
    (3) Participation in VIS under one or more waivers beyond the term
of the initial memorandum of agreement requires a new memorandum.
    (4) If the good cause for waivers is eliminated within the term of
the memorandum of agreement, the State may so inform the Commandant in
writing. The Commandant may then consider the State to participate in
VIS under paragraph (a) of this section.

0
33. Amend Sec.  187.101 as follows:
0
a. Revise paragraphs (a)(4) and (b)(5)(i) to read as follows;

0
b. Remove and reserve paragraph (b)(5)(ii); and
0
c. Remove paragraph (b)(5)(iii).

Sec.  187.101  What information must be collected to identify a vessel
owner?

    (a) * * *
    (4) Owner identifier, which must be the owner's tax identification
number, date of birth together with driver's license number, or date of
birth together with other unique number.
    (b) * * *
    (5) * * *
    (i) Owner identifier, which must be the owner's tax identification
number, date of birth together with driver's license number, or date of
birth together with other unique number.

0
34. Revise Sec.  187.103 to read as follows:

Sec.  187.103  What information must be collected to identify a vessel?

    A participating State must collect the following information on a
vessel it has numbered or titled and make it available to VIS:
    (a) Manufacturer's hull identification number, if any.
    (b) Official number, if any, assigned by the Coast Guard or its
predecessor.
    (c) Number on certificate of number assigned by the issuing
authority of the State.
    (d) Expiration date of certificate of number.
    (e) Number previously issued by an issuing authority.
    (f) Make and model of vessel.
    (g) Model year.
    (h) Overall length of vessel.
    (i) Vessel type: Authorized terms are ``air boat'', ``auxiliary
sail'', ``cabin motorboat'', ``houseboat'', ``inflatable boat'', ``open
motorboat'', ``paddlecraft'', ``personal watercraft'', ``pontoon
boat'', ``rowboat'', ``sail only'', or ``other''.
    (j) Hull material: Authorized terms are ``aluminum'',
``fiberglass'', ``plastic'', ``rubber/vinyl/canvas'', ``steel'',
``wood'', or ``other''.
    (k) Propulsion type: Authorized terms are ``air thrust'',
``manual'', ``propeller'', ``sail'', ``water jet'', or ``other''.
    (l) Engine drive type: Authorized terms are ``inboard'',
``outboard'', ``pod drive'', ``sterndrive'', or ''other''.
    (m) Fuel: Authorized terms are ``electric'', ``diesel'', ``gas'',
or ``other''.
    (n) Primary operation: Authorized terms are, ``charter fishing'',
``commercial fishing'', ``commercial passenger carrying'', ``dealer or
manufacturer demonstration'', ``other commercial operation'',
``pleasure'', or ``rent or lease''.

    Dated: March 15, 2012.
Paul F. Thomas,
Captain, U.S. Coast Guard, Acting Director of Prevention Policy.
[FR Doc. 2012-7127 Filed 3-27-12; 8:45 am]
BILLING CODE 9110-04-P