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[Federal Register Volume 69, Number 202 (Wednesday, October 20, 2004)]
[Rules and Regulations]
[Pages 61605-61607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23362]

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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 310

[Docket Number: MARAD-2004-19397]
RIN 2133-AB61

Amended Service Obligation Reporting Requirements for State 
Maritime Academy Graduates

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Interim final rule with request for comments.

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SUMMARY: In this interim final rule, the Maritime Administration 
(MARAD, we, us, or our) will change the service obligation reporting 
requirements for State maritime academy graduates who receive Student 
Incentive Payments (SIPs). The new reporting requirements create 
standard reporting dates that coincide with the U.S. Naval Reserve/
Merchant Marine Reserve (USNR/MMR) service reporting dates. This 
rulemaking also provides for the electronic submission of reports as 
the primary means of submission to MARAD.

DATES: This interim final rule is effective October 20, 2004. However, 
MARAD will consider comments received not later than November 19, 2004.

ADDRESSES: You may submit comments (identified by DOT DMS Docket Number 
MARAD-2004-19397) by any of the following methods:
     Web site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 7th St., SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001.
     Hand Delivery: Room PL-401 on the plaza level of the 
Nassif Building, 400 7th St., SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number for this rulemaking. Note that all comments received will 
be posted without change to http://dms.dot.gov including any personal 
information provided. Please see the Privacy Act heading under 
Regulatory Notices.
    Docket: For access to the docket to read background documents or 
comments received, go to http://dms.dot.gov at any time or to Room PL-
401 on the plaza level of the Nassif Building, 400 7th St., SW., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal Holidays.

FOR FURTHER INFORMATION CONTACT: Rita Jackson, Academies Program 
Officer, Office of Policy and Plans, Maritime Administration, 
Department of Transportation, 400 7th St., SW., Room 7123, Washington, 
DC 20590, telephone: (202) 366-0284.

SUPPLEMENTARY INFORMATION: The Student Incentive Payment Program 
provides financial assistance to certain eligible State maritime 
academy students to help offset educational costs. Students who receive 
Student Incentive Payments must sign service obligation contracts that 
obligate the students to certain post-graduate service obligation 
requirements. The requirements include: (1) Serving for three (3) years 
after graduation in the foreign or domestic commerce or the national 
defense of the United States in maritime-related employment; (2) 
maintaining a valid license as an officer in the merchant marine of the 
United States for at least six (6) years following the date of 
graduation, accompanied by the appropriate national and international 
endorsements and certification as required by the United States Coast 
Guard for service aboard vessels on domestic and international voyages, 
and (3) accepting if tendered an appointment as, and serving as a 
commissioned officer in the United States Naval Reserve, the United 
States Coast Guard Reserve, or any other reserve unit of an armed force 
of the United States for six (6) years following graduation. The above 
requirements are set forth in 46 U.S.C. 1295c(g)(3)(C), (D), and (E). 
In addition to the above service obligations, graduates are required, 
under 46 U.S.C. 1295c(g)(3)(F), to submit reports to MARAD indicating 
compliance with their service obligations.
    Under the current regulations at 46 CFR 310.7(b)(6)(i), State 
maritime academy SIP graduates are required to submit their service 
obligation reports thirteen (13) months following graduation and each 
succeeding twelve (12) months for a total of three (3) years. The three 
(3) year reporting period, however, does not accurately reflect the 
requirement in 46 U.S.C. 1295c(g)(3)(F) that graduates report 
compliance with all of their service obligations, because graduates 
must submit reports indicating their compliance not only with the three 
(3) year service (i.e., employment) requirement, but also with the six 
(6) year licensing and reserve components of the service obligation. 
Thus, under the law, graduates must submit compliance reports for a 
minimum of six (6) years to account for all of their service 
obligations. The six (6) year reporting requirement dates back to the 
Maritime Education and Training Act of 1980 (Pub. L. 96-453) but has 
not been reflected in MARAD's regulations. However, as a matter of 
agency practice, MARAD has long required graduates to submit reports 
for six (6) years to report compliance with their service obligation 
requirements.
    In this interim final rule, MARAD is amending its regulations to 
reflect the requirement that graduates report for six (6) years (or 
until all components of the service obligation are fulfilled, whichever 
is latest). In addition, MARAD is amending the service obligation 
reporting requirements to require each graduate to file a report 
between January 1 and March 1 following graduation and during the same 
January 1 to March 1 time frame for a minimum of six (6) years 
thereafter.
    The new reporting dates coincide with the USNR/MMR's service 
reporting dates to create a standard reporting period. This 
standardized reporting period should make reporting less burdensome 
because graduates will be able to compile and submit information to 
MARAD and to the USNR during the same time frame each year.
    This rulemaking will also provide for the electronic submission of 
reports as the primary means of submission. Graduates must submit 
annually the Maritime Administration Service Obligation Compliance 
Report and Merchant Marine Reserve, U.S. Naval Reserve (USNR), Annual 
Report (Form MA-930). Graduates may submit their Service Obligation 
Compliance Reports electronically via the Maritime Service

[[Page 61606]]

Compliance System at https://mscs.marad.dot.gov.

Regulatory Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This interim final rule is not considered a significant regulatory 
action under section 3(f) of Executive Order 12866 and, therefore, was 
not reviewed by the Office of Management and Budget. This interim final 
rule is not likely to result in an annual effect on the economy of $100 
million or more. This interim final rule is also not significant under 
the Regulatory Policies and Procedures of the Department of 
Transportation (44 FR 11034, February 26, 1979). The costs and economic 
impact associated with this rulemaking are considered to be so minimal 
that no further analysis is necessary. This interim final rule merely 
changes the reporting requirements for submission of service obligation 
report forms to make reporting less burdensome, amends the number of 
report submissions to conform to requirements set forth in the U.S. 
Code, and provides the option of electronic submission of such reports 
to MARAD.

Administrative Procedure Act

    The Administrative Procedure Act (5 U.S.C. 553) provides an 
exception to notice and comment procedures when they are unnecessary or 
contrary to the public interest. MARAD finds that under 5 U.S.C. 
553(b)(3)(B), good cause exists for not providing notice and comment 
since this interim final rule only changes the service obligation 
reporting dates of state maritime academy graduates who receive SIP 
payments to make reporting less burdensome, amends the number of report 
submissions to conform to requirements set forth in the U.S. Code, and 
provides the option of electronic submission of such reports to MARAD.
    Under 5 U.S.C. 553(d)(3), MARAD finds that, for the same reasons, 
good cause exists for making this rule effective less than 30 days 
after publication in the Federal Register. However, MARAD will accept 
comments submitted on or before the date indicated in the DATES 
section.

Regulatory Flexibility Act

    The Maritime Administrator certifies that this interim final rule 
will not have a significant economic impact on a substantial number of 
small entities. This interim final rule only changes the service 
obligation reporting requirements for state maritime academy graduates 
who receive SIP payments. Thus, this rule only affects individuals and 
not businesses or other entities.

Federalism

    We have analyzed this interim final rule in accordance with the 
principles and criteria contained in Executive Order 13132 (Federalism) 
and have determined that it does not have sufficient federalism 
implications to warrant the preparation of a federalism summary impact 
statement. These regulations have no substantial effect on the States, 
the current Federal-State relationship, or the current distribution of 
power and responsibilities among local officials. Therefore, 
consultation with State and local officials is not necessary.

Executive Order 13175

    MARAD does not believe that this interim final rule will 
significantly or uniquely affect the communities of Indian tribal 
governments when analyzed under the principles and criteria contained 
in Executive Order 13175 (Consultation and Coordination with Indian 
Tribal Governments). Therefore, the funding and consultation 
requirements of this Executive Order do not apply.

Environmental Impact Statement

    We have analyzed this interim final rule for purposes of compliance 
with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) and have concluded that under the categorical exclusions in 
section 4.05 of Maritime Administrative Order (MAO) 600-1, ``Procedures 
for Considering Environmental Impacts,'' 50 FR 11606 (March 22, 1985), 
neither the preparation of an Environmental Assessment, an 
Environmental Impact Statement, nor a Finding of No Significant Impact 
for this interim final rule is required. This interim final rule 
involves administrative and procedural regulations that have no 
environmental impact.

Unfunded Mandates Reform Act of 1995

    This interim final rule does not impose an unfunded mandate under 
the Unfunded Mandates Reform Act of 1995. It does not result in costs 
of $100 million or more, in the aggregate, to any of the following: 
State, local, or Native American tribal governments, or the private 
sector. This interim final rule is the least burdensome alternative 
that achieves this objective of U.S. policy.

Paperwork Reduction Act

    This interim final rule contains information collection 
requirements covered by the Office of Management and Budget approval 
number 2133-0509. The changes have no impact on the reporting burden.

List of Subjects in 46 CFR Part 310

    Federal Aid Programs, Reporting and recordkeeping requirements, 
Schools, and Seamen.

0
Accordingly, for the reasons discussed in the preamble, 46 CFR part 310 
is amended as follows:

PART 310--MERCHANT MARINE TRAINING

0
1. The authority citation for part 310 continues to read as follows:

    Authority: 46 App. U.S.C. 1295; 49 CFR 1.66.

0
2. Amend Sec.  310.7 by revising paragraph (b)(6) to read as follows:

Sec.  310.7  Federal student subsistence allowances and student 
incentive payments.

* * * * *
    (b) * * *
    (6) Reporting requirement. (i) The schools must promptly submit 
copies of all resignation forms (containing the name, reason, address 
and telephone number) of juniors and seniors to the Supervisor, to be 
used for monitoring and enforcement purposes. Each graduate must submit 
an annual Service Obligation Compliance Report form (MA-930) to the 
Maritime Administration (Supervisor) between January 1 and March 1 
following his or her graduation. After the initial report is submitted, 
each graduate must continue to submit annual reports during the same 
time frame between January 1 and March 1 for six (6) consecutive years 
thereafter, or until all components of the service obligation are 
fulfilled, whichever is latest. Each graduate will file a minimum of 
seven (7) reports in order to give information on all six (6) years of 
the armed forces reserve and merchant marine officer license service 
obligations. Graduates are encouraged to submit their Service 
Obligation Compliance Report forms (MA-930) to MARAD using the web-
based Internet system at https://mscs.marad.dot.gov. Reports may also 
be mailed to: Compliance Specialist, Office of Policy and Plans, 
Maritime Administration, Department of Transportation, 400 7th St., 
SW., Room 7123, Washington, DC 20590. In case a deferment has been 
granted to engage in a maritime-related graduate course of study, 
annual reports must be submitted during the extension period resulting 
from such deferments. Examples of the reporting requirements are as 
follows.

[[Page 61607]]

    Example 1: Midshipman graduates on June 30, 2004. His or her 
first reporting date is between January 1, 2005 and March 1, 2005 
and each following period between January 1 and March 1 for six (6) 
consecutive years thereafter (or until all components of the service 
obligation are fulfilled, whichever is latest) for a minimum of 
seven (7) reports.
    Example 2: Midshipman has a deferred graduation on November 30, 
2004. His or her first reporting date is between January 1, 2005 and 
March 1, 2005 and each following period between January 1 and March 
1 for six (6) consecutive years thereafter (or until all components 
of the service obligation are fulfilled, whichever is latest) for a 
minimum of seven (7) reports.
    Example 3: Midshipman has a deferment following graduation on 
June 30, 2004, to attend graduate school for two (2) years. His or 
her first reporting date is between January 1, 2005 and March 1, 
2005 and during the same time frame between January 1 and March 1 
for two (2) years during graduate school, and then during the same 
January 1 to March 1 time frame for six (6) consecutive years 
thereafter (or until all components of the service obligation are 
fulfilled, whichever is latest) for a total of nine (9) reports.

    (ii) The Maritime Administration will provide reporting forms. 
However, non-receipt of such forms will not exempt a graduate from 
submitting information as required by this paragraph. The reporting 
form has been approved by the Office of Management and Budget (2133-
0509).
* * * * *

    By Order of the Maritime Administrator.

    Dated: October 13, 2004.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 04-23362 Filed 10-19-04; 8:45 am]
BILLING CODE 4910-81-P
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