20278 Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations 

Flooding source(s) Location of referenced elevation 

* Elevation 

in feet 

(NGVD) 

+ Elevation 

in feet 

(NAVD) 

# Depth in 

feet above 

ground 

modified 

Communities 

affected 

Ottauquechee River ................... Approximately 0.94 mile upstream of Taftsville Dam ................. +657 Town of Bridgewater, Town of 

Pomfret. 

Approximately 1,840 feet upstream of confluence of Curtis Hollow Brook.+815 

Second Branch White River ...... Approximately 1.24 miles upstream of State Route 14 .............. +525 Town of Bethel, Town of Royalton. 

Approximately 0.86 mile downstream of Stove Hill Road .......... +527 

White River ................................ Approximately 0.79 mile downstream of State Routes 12 and 

107/River Street.

+531 Town of Bethel, Town of Stockbridge. 

Approximately 3.56 miles downstream of Liberty Hill Road ....... +754 

# Depth in feet above ground. 

* National Geodetic Vertical Datum. 

+ North American Vertical Datum. 

ADDRESSES 

Town of Bethel 

Maps available for inspection at the Bethel Town Office, 134 South Main Street, Bethel, Vermont. 

Town of Bridgewater 

Maps available for inspection at the Bridgewater Town Office, 7335 U.S. Route 4, Bridgewater, Vermont. 

Town of Cavendish 

Maps available for inspection at the Cavendish Town Office, 37 High Street, Cavendish, Vermont. 

Town of Hartland 

Maps available for inspection at the Town of Hartland Clerk’s Office, Damon Hall, 1 Quechee Road, Hartland, Vermont. 

Town of Plymouth 

Maps available for inspection at the Plymouth Town Office, 68 Town Office Road, Plymouth, Vermont. 

Town of Pomfret 

Maps available for inspection at the Pomfret Town Office, 5188 Pomfret Road, North Pomfret, Vermont. 

Town of Reading 

Maps available for inspection at the Reading Town Office, Robinson Hall, 799 Vermont Route 106, Reading, Vermont. 

Town of Royalton 

Maps available for inspection at the Royalton Town Office, 23 Alexander Place, Suite 1, South Royalton, Vermont. 

Town of Springfield 

Maps available for inspection at the Springfield Town Office, 96 Main Street, Springfield, Vermont. 

Town of Stockbridge 

Maps available for inspection at the Town of Stockbridge Clerk’s Office, 1722 Vermont Route 100, Stockbridge, Vermont. 

Town of Weathersfield 

Maps available for inspection at the Town of Weathersfield, Martin Memorial Hall, 5259 Route 5, Ascutney, Vermont. 

Town of Windsor 

Maps available for inspection at the Windsor Town Office, 29 Union Street, Windsor, Vermont. 

(Catalog of Federal Domestic Assistance No. 

83.100, ‘‘Flood Insurance.’’) 

Dated: April 10, 2007. 

David I. Maurstad, 

Federal Insurance Administrator of the 

National Flood Insurance Program, Federal 

Emergency Management Agency, Department 

of Homeland Security. 

[FR Doc. 07–1978 Filed 4–23–07; 8:45 am] 

BILLING CODE 9110–12–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

46 CFR Parts 12 and 15 

[USCG–2007–27761] 

RIN 1625–AB16 

Large Passenger Vessel Crew 

Requirements 

AGENCY: Coast Guard, DHS. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Coast Guard is amending 

its regulations on merchant mariner 

documentation to implement section 

3509 of the John Warner National 

Defense Authorization Act for Fiscal 

Year 2007 (Warner Act), which allows 

for the issuance of merchant mariner 

documents (MMDs) to certain nonresident aliens for service in the 

stewards departments of U.S.-flag large 

passenger vessels endorsed for 

coastwise trade. Coast Guard regulations 

currently prohibit the Coast Guard from 

issuing MMDs, which are required for 

service on large passenger vessels, to 

non-immigrant aliens. This interim rule 


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Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations 20279 

amends Coast Guard regulations to 

allow the Coast Guard to issue MMDs to 

qualified non-resident aliens who are 

authorized to be employed in the United 

States. This rule also sets the 

requirements that these aliens must 

meet in order to qualify for MMDs, and 

the requirements for the large passenger 

vessels that may choose to hire these 

aliens. This interim rule only applies to 

large passenger vessels, as defined 

under the Warner Act. 

DATES: This interim rule is effective 

April 24, 2007. Comments and related 

material must reach the Docket 

Management Facility on or before July 

23, 2007. 

ADDRESSES: You may submit comments 

identified by Coast Guard docket 

number USCG–2007–27761 to the 

Docket Management Facility at the U.S. 

Department of Transportation. To avoid 

duplication, please use only one of the 

following methods: 

(1) Web Site: http://dms.dot.gov. 

(2) Mail: Docket Management Facility, 

U.S. Department of Transportation, 400 

Seventh Street, SW., Washington, DC 

20590–0001. 

(3) Fax: 202–493–2251. 

(4) Delivery: Room PL–401 on the 

Plaza level of the Nassif Building, 400 

Seventh Street, SW., Washington, DC, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The telephone number is 202–366–

9329. 

(5) Federal eRulemaking Portal: 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call 

LCDR Derek D’Orazio, Coast Guard, 

telephone 202–372–1405. If you have 

questions on viewing or submitting 

material to the docket, call Renee V. 

Wright, Program Manager, Docket 

Operations, telephone 202–493–0402. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

The SUPPLEMENTARY INFORMATION section of 

this interim final rule sets forth the basis, 

purpose and particulars of this rulemaking 

action and is organized as follows: 

I. Public Participation and Request for 

Comments 

II. Background and Purpose 

III. Discussion of the Interim Rule 

IV. Regulatory Requirements 

A. Administrative Procedure Act 

B. Regulatory Evaluation 

i. Affected Population 

ii. Industry Profile 

iii. Direct Impacts 

iv. Indirect Impacts 

C. Small Entities 

D. Assistance for Small Entities 

E. Collection of Information 

F. Federalism 

G. Unfunded Mandates Reform Act 

H. Taking of Private Property 

I. Civil Justice Reform Act 

J. Protection of Children 

K. Indian Tribal Governments 

L. Energy Effects 

M. Technical Standards 

N. Environment 

List of Subjects 

I. Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted, 

without change, to http://dms.dot.gov 

and will include any personal 

information you have provided. We 

have an agreement with the Department 

of Transportation (DOT) to use the 

Docket Management Facility. Please see 

DOT’s ‘‘Privacy Act’’ paragraph below. 

Submitting comments: If you submit a 

comment, please include your name and 

address, identify the docket number for 

this rulemaking (USCG–2007–27761), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. You may submit your 

comments and material by electronic 

means, mail, fax, or delivery to the 

Docket Management Facility at the 

address under ADDRESSES; but please 

submit your comments and material by 

only one means. If you submit them by 

mail or delivery, submit them in an 

unbound format, no larger than 81⁄2 by 

11 inches, suitable for copying and 

electronic filing. If you submit them by 

mail and would like to know that they 

reached the Facility, please enclose a 

stamped, self-addressed postcard or 

envelope. We will consider all 

comments and material received during 

the comment period. We may change 

this rule in view of them. 

Viewing comments and documents: 

To view comments, as well as 

documents mentioned in this preamble 

as being available in the docket, go to 

http://dms.dot.gov at any time, click on 

‘‘Simple Search,’’ enter the last five 

digits of the docket number for this 

rulemaking, and click on ‘‘Search.’’ You 

may also visit the Docket Management 

Facility in room PL–401 on the Plaza 

level of the Nassif Building, 400 

Seventh Street, SW., Washington, DC, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Privacy Act: Anyone can search the 

electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review the Department of 

Transportation’s Privacy Act Statement 

in the Federal Register published on 

April 11, 2000 (65 FR 19477), or you 

may visit http://dms.dot.gov. 

Public Meeting: We do not currently 

plan to hold a public meeting. But you 

may submit a request for one to the 

Docket Management Facility at the 

address under ADDRESSES explaining 

why one would be beneficial. If we 

determine that one would aid this 

rulemaking, we will hold one at a time 

and place announced by a later notice 

in the Federal Register. 

II. Background and Purpose 

Title 46 U.S.C. 8103 generally 

requires that unlicensed seamen on 

documented vessels must be of the 

following status: (a) Citizens of the 

United States; (b) lawful permanent 

residents; or (c) foreign nationals 

enrolled in the United States Merchant 

Marine Academy. No more than 25 

percent of such unlicensed seamen may 

be lawful permanent residents. 

On October 17, 2006, Congress 

enacted the John Warner National 

Defense Authorization Act for Fiscal 

Year 2007 (Warner Act), Public Law 

109–364, sec. 3509, 120 Stat. 2518. 

Section 3509 of the Warner Act (46 

U.S.C. 8103(k)) amends 46 U.S.C. 8103 

to permit large passenger vessels to also 

employ non-resident aliens who are 

authorized to work in the United States. 

The statute maintains a cap so that no 

more than twenty-five percent of the 

unlicensed seamen on any large 

passenger vessel are aliens, whether 

admitted to the United States as lawful 

permanent residents or otherwise 

allowed to be employed in the United 

States as nonresident aliens. ‘‘Large 

passenger vessel’’ is defined under the 

Warner Act to mean ‘‘a vessel of more 

than 70,000 gross tons, as measured 

under section 14302 of this title, with 

capacity for at least 2,000 passengers 

and documented with a coastwise 

endorsement under chapter 121 of this 

title.’’ 

The Warner Act also contains the 

following qualifications and restrictions 

on non-resident aliens serving as 

unlicensed seamen on large passenger 

vessels: 

1. Non-resident aliens may not 

perform watchstanding, engine room 

duty watch, or vessel navigation 

functions; 

2. Non-resident aliens must be aliens 

employable in the United States under 

the Immigration and Nationality Act of 

1952, as amended (8 U.S.C. 1101 et seq.) 

(INA), including an alien crewman 

described in § 101(a)(15)(D)(i) of the 

INA (8 U.S.C. 1101(a)(15)(D)(i)); 

3. Non-resident aliens must have been 

employed, for a period of at least one 


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1The Coast Guard notes, however, that on April 

11, 2007, the cruise line announced that it would 

be reflagging one of these three vessels to a foreign 

flag in the near future; ultimately reducing the 

number of eligible vessels to two. 

year, on a passenger vessel, including a 

foreign flag passenger vessel, under the 

same common ownership or control as 

the U.S.-flag vessel they will be working 

on, as certified by the owner or 

managing operator of such vessel; 

4. Non-resident aliens must have no 

record of material disciplinary actions 

during such employment as verified in 

writing by the owner or managing 

operator of such vessel; 

5. Non-resident aliens must have 

successfully completed a United States 

Government security check of the 

relevant domestic and international 

databases, as appropriate, or any other 

national security-related information or 

database (which is required for a MMD 

or Transportation Worker Identification 

Credential (TWIC)); 

6. Non-resident aliens must have 

successfully undergone an employer 

background check for which the owner 

or managing operator provides a signed 

report that describes the background 

checks undertaken. The background 

check must consist of a search of all 

information that is reasonably and 

legally available to the owner or 

managing operator in the seaman’s 

country of citizenship and any other 

country in which the seaman receives 

employment referrals, or resides. The 

report must be kept on the vessel and 

available for inspection, and the 

information derived from the 

background check must be made 

available upon request; 

7. Non-resident aliens may not be 

citizens or temporary or permanent 

residents of a country designated by the 

United States as a sponsor of terrorism 

or any other country that the Secretary 

of Homeland Security, in consultation 

with the Secretary of State and the 

heads of other appropriate United States 

agencies, determines to be a security 

threat to the United States; and 

8. Non-resident aliens may only serve 

for an aggregate period of 36 months of 

actual service on all authorized U.S.-flag 

large passenger vessels combined. Once 

this 36-month limitation has been 

reached, the merchant mariner’s 

document becomes invalid and the 

individual’s employer must return it to 

the Coast Guard, and the individual is 

no longer authorized service in a 

position requiring a merchant mariner’s 

document on any U.S.-flag large 

passenger vessel. 

Under current law, all individuals 

serving in the steward’s department on 

passenger vessels of 100 gross register 

tons (GRT) or more must hold a 

merchant mariner’s document (MMD). 

46 U.S.C. 8701. The only exception is 

for entertainment personnel employed 

for a period of 30 days or less per year, 

who are exempt from the MMD 

requirement. 

Coast Guard regulations governing the 

issuance of MMDs currently prohibit the 

issuance of MMDs to non-resident 

aliens. See 46 CFR part 12. The Coast 

Guard, through this interim rule, is 

amending its regulations to authorize 

the issuance of MMDs to non-resident 

aliens authorized to work in the United 

States who meet the criteria of the 

Warner Act and the requirements set 

forth in this rule. 

III. Discussion of Interim Rule 

To implement 46 U.S.C. 8103(k), the 

Coast Guard is revising its regulations 

within 46 CFR subchapter B. This 

interim rule will add a new 46 CFR 

subpart 12.40. Companies that wish to 

hire non-resident aliens must meet the 

requirements specified in new § 12.40–

7, subject to the civil penalty provisions 

specified in 46 U.S.C. 8103(f) for any 

violation of the section. 

The new subpart adds definitions for 

‘‘large passenger vessel,’’ ‘‘non-resident 

alien,’’ and ‘‘steward’s department.’’ It 

also contains citizenship and identity 

requirements for non-resident aliens 

employed as unlicensed seamen by 

large passenger vessels, in lieu of the 

requirements of 46 CFR 12.02–10, 

12.02–12, and 12.02–14. In addition to 

those citizenship and identity 

requirements, this rule establishes the 

requirement that non-resident alien 

applicants satisfy the requirements of 

the Warner Act (discussed above), and 

stipulates how mariners, and the 

companies that employee them, must 

satisfy those requirements. The 

company must submit the additional 

required merchant mariner application 

information to the Coast Guard on the 

employee’s behalf. 

Title 46 U.S.C. 8103(k)(3)(A) states 

that non-resident aliens may not be 

citizens or temporary or permanent 

residents of a country designated by the 

United States as a sponsor of terrorism. 

The Coast Guard interprets this to mean 

that non-resident aliens may not be 

citizens or residents of a country 

designated by the United States as a 

sponsor of terrorism under section 6(j) 

of the Export Administration Act of 

1979 (50 U.S.C. App. 2405(j)), or section 

620A of the Foreign Assistance Act of 

1961 (22 U.S.C. 2371). Under new 

section 12.40–11(c), the Coast Guard 

will not issue MMDs to non-resident 

aliens that are citizens or residents 

(temporary or permanent) of countries 

listed on the Department of State’s 

‘‘State Sponsors of Terrorism’’ list. The 

list, as of the date of publication of this 

rule, may be found at http:// 

www.state.gov/s/ct/c14151.htm. 

The Warner Act also allows the 

Secretary of Homeland Security, upon 

consultation with the Secretary of State 

and the heads of other appropriate 

United States agencies, to determine 

that other countries present a security 

threat to the United States for purpose 

of determining eligibility for 

employment of non-resident aliens. 

DHS has initiated this consultation and 

may add more countries or lists of 

countries in the future as a result of 

these consultations. 

The interim rule also adds 46 CFR 

15.530, which provides company 

responsibilities associated with 

employment of non-resident aliens on 

their vessels relative to the International 

Labor Organization’s Merchant 

Shipping (Minimum Standards) 

Convention of 1976. Title 46 CFR 15.530 

also requires that no more than 25 

percent of the unlicensed seamen on a 

large passenger vessel be aliens, 

whether admitted to the United States 

for permanent residence or otherwise 

employable in the United States as nonresident aliens. This limitation is also 

mandated by 46 U.S.C. 8103(k)(2). 

Only three U.S.-flag vessels currently 

fall within the definition of ‘‘large 

passenger vessel’’ under 48 U.S.C. 

8103(k), each of which are owned by the 

same cruise line.1 Because the statute 

limits the non-resident aliens who are 

eligible for employment on large 

passenger vessels to aliens who have 

otherwise been employed by that cruise 

line for one year, and such aliens cannot 

compose more than 25% of the number 

of unlicensed seamen on such vessels, 

the Coast Guard believes that 

approximately 600 to 800 non-resident 

aliens could be transferred to 

employment on one of the three large 

passenger vessels within the first year of 

the rule taking effect. 

The Coast Guard notes that, although 

the Warner Act refers to section 

101(a)(15)(d) of the INA (which defines 

aliens authorized for crew visas), it does 

not waive any provision or requirement 

of the INA pertaining to visas or 

employment eligibility for non-resident 

aliens. In addition, we note that all 

affected aliens must comply with any 

required identification, tracking and 

reporting programs, including DHS’s 

United States Visitor and Immigrant 

Status Indicator Technology Program 

(US–VISIT) and the National Security 

Entry-Exit Registration System 

(NSEERS). The Coast Guard is 

promulgating this interim rule under its 


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Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations 20281 

authority to issue MMDs, and only to 

that extent. 

IV. Regulatory Requirements 

A. Administrative Procedure Act 

The Coast Guard has determined that 

good cause exists to implement this rule 

as an interim rule under the 

Administrative Procedure Act, 5 U.S.C. 

553(b). The Coast Guard, under this 

interim rule, is implementing a 

Congressional directive that does not 

provide Coast Guard with discretion in 

the issuance of MMDs to non-resident 

aliens as a class. Further, as discussed 

above, this rule will only directly 

regulate one party at this time—the 

owner of the three vessels that fall 

within the statutory definition of ‘‘large 

passenger vessels.’’ The Coast Guard has 

consulted with that carrier during the 

development of this interim rule. In 

addition, under the current statutory 

restrictions, only aliens already 

employed by this company can be 

transferred to employment on one of the 

three eligible passenger vessels. Given 

the limited regulatory impact of this 

rule, we do not believe there will be 

significant public interest in this interim 

rule. 

Accordingly, the Coast Guard has 

determined that delaying 

implementation of this rule to allow 

public comment prior to 

implementation would be impracticable 

and unnecessary. 5 U.S.C. 553(b). For 

reasons stated above, the Coast Guard 

also finds that good cause exists under 

5 U.S.C. 553(d)(3) for making this rule 

effective less than 30 days after 

publication in the Federal Register. 

The Coast Guard, however, values 

public input to the regulatory process, 

and for this reason we are inviting posteffective-date comments on this interim 

rule. We may change this rule as a result 

of the comments we receive. 

B. Regulatory Evaluation 

Executive Order 12866 requires 

agencies to assess the costs and benefits 

of significant regulatory actions as 

defined in Section 3(f). At this time, we 

expect this interim rule will not be an 

economically significant action under 

Section 3(f)(1) of the Order (i.e., an 

annual effect of $100 million or more on 

the economy). 

The Coast Guard is promulgating this 

rulemaking as mandated by Congress 

through the Warner Act, see 

‘‘Background and Purpose’’ section for 

more information about this legislation. 

The rule creates an exemption to 

allow qualified non-resident aliens to 

obtain MMDs for employment as 

unlicensed seamen in the steward’s 

departments of large passenger vessels, 

as entertainment and service personnel, 

including wait staff, hotel housekeeping 

staff, and food handlers. Currently, only 

U.S. citizens, lawful permanent 

residents, and foreign nationals enrolled 

at the U.S. Merchant Mariner Academy 

can obtain MMDs as unlicensed seamen 

(and no more than 25 percent of these 

unlicensed seamen may be lawful 

permanent residents). This rule will 

permit non-resident aliens to also obtain 

MMDs for employment as unlicensed 

seamen on large passenger vessels, 

except no more than 25 percent of the 

unlicensed seamen on a large passenger 

vessel can be aliens (whether nonresident aliens or lawful permanent 

residents). The rule further requires that 

the non-resident aliens may only be 

employed in the steward’s department 

of the large passenger vessel. 

Although the Warner Act, and this 

interim rule, allow large passenger 

vessels to hire non-immigrant aliens, 

neither the Act nor this rule mandate 

that they do so. Accordingly, there are 

no mandatory costs to large passenger 

vessels resulting from this interim rule. 

Rather, a company will only choose to 

avail itself of the exemption if the 

benefits to the company from the hiring 

of non-resident aliens are greater than 

the costs. 

The following is an assessment of the 

affected population, an industry profile, 

and an evaluation of the direct and 

indirect impacts of the rule. The only 

company affected by this rulemaking, 

discussed below, provided us with 

aggregated business data to protect 

proprietary and confidential business 

information and details of their business 

operations. The industry estimates 

discussed herein are preliminary and 

may not reflect the actual impacts after 

industry implements the alternative 

compliance method. 

i. Affected Population 

Vessel Owners 

The rule will affect owners of large 

passenger vessels more than 70,000 

gross tons, with a capacity of at least 

2,000 passengers, and documented with 

a coastwise endorsement (e.g. U.S.-flag 

vessel). Vessel owners will be able to 

hire non-resident aliens to comprise up 

to 25 percent of the unlicensed seamen 

onboard their vessels, but only in the 

steward’s department. The rule allows 

vessel owners to hire only those nonresident aliens that have been 

employed, for a period of not less than 

one year, on a passenger vessel, 

including a foreign flag passenger 

vessel, under the same common 

ownership, control or managing 

ownership as the U.S.-flag vessel on 

which they will be working, see the 

‘‘Discussion of Interim Rule’’ section for 

more detail on the conditions and 

restrictions for hiring non-resident 

aliens. 

Based on Coast Guard data, we 

determined there are three large 

passenger vessels currently in service 

that meet the qualifications of this rule. 

Norwegian Cruise Line America (NCLA) 

operates these vessels in coastwise 

service in the Hawaiian Islands. NCLA 

is a brand of the Miami-based 

Norwegian Cruise Line Corporation 

(NCL), which itself is a subsidiary of 

Star Cruises Limited of Hong Kong. 

NCLA announced on April 11, 2007, 

that it would be removing one of the 

three vessels from U.S. flag service and 

re-flagging for foreign service. 

At this time, we have no information 

to suggest that additional companies 

will enter into coastwise service with 

large passenger vessels, and we do not 

expect NCLA to expand its coastwise 

fleet of large passenger vessels because 

of this rule. This is due to the costs 

associated with flagging and operating 

vessels of this nature in the United 

States. 

Unlicensed Mariners 

The rule affects unlicensed mariners 

working on or applying for work on 

these vessels. This rule allows vessel 

owners to employ non-resident aliens 

on their vessels, capped at 25 percent of 

the overall total of unlicensed seamen 

per vessel. This rule also indirectly 

affects unions that maintain the 

collective bargaining agreements for 

these mariners in terms of changes in 

membership. Based on information from 

NCLA, the Coast Guard anticipates that 

we will issue MMDs to approximately 

600 to 800 non-resident aliens within 

the first year of the rule. By the end of 

the second year of the rule, the Coast 

Guard estimates that we will issue an 

additional 900 to 1,200 MMDs to 

support non-resident alien crew shift 

change and reserve. After this two-year 

implementation period, NCLA intends 

to maintain an average annual full 

compliment of 1,500 to 2,000 onboard, 

shift, and reserve non-resident alien 

crewmembers under this rule. 

Government Resources 

The rule will also affect Coast Guard 

and potentially other government 

resources used to process, review, and 

issue documentation to unlicensed 

mariners and non-resident aliens 

affected by this rule. We estimate that 

certain Coast Guard Regional 

Examination Centers (RECs) in the 

Hawaiian Islands and West Coast may 


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20282 Federal Register / Vol. 72, No. 78 / Tuesday April 24, 2007 / Rules and Regulations 

incur increased processing burden to 

accommodate industry participation in 

this rulemaking, especially in the first 

two years as mentioned below. We 

anticipate that the requirements of this 

rule and the ultimate issuance of MMDs 

to non-resident aliens will involve 

additional processing exceeding the 

current processing for U.S. residents to 

ensure that background checks and 

applications meet security 

requirements. The additional Coast 

Guard burden at the RECs will be 

proportional to the number of 

applications submitted by vessel owners 

on behalf of non-resident aliens. 

At this time, however, we anticipate 

that this rule will not substantially 

change the annual total number of MMD 

applications received or the total 

number of MMDs issued by the Coast 

Guard. Based on correspondence 

between NCLA and the Coast Guard, 

NCLA stated that this rule would 

stabilize the crew situation onboard the 

three vessels and reduce turnover rates. 

NCLA claims that the potential 

workforce stability that results from this 

rule will eventually reduce the number 

of MMD applications that the Coast 

Guard processes for NCLA crews. 

ii. Industry Profile 

Based on industry information, the 

number of overall Hawaii cruise ship 

passengers grew from 240,800 in 2004 to 

about 398,000 in 2005. In 2006, 

approximately 408,500 cruise 

passengers visited Hawaii onboard 56 

cruise ships, including NCLA’s three 

U.S.-flag vessels. Capacity has also 

increased over the past several years 

and passenger costs have decreased. 

Competition from cruises with foreign 

crews have pushed prices down, in 

particular those offering 15-day cruises 

from the West Coast. 

Based on industry information, in 

general the cruise industry has 

historically consisted of foreign flag 

vessels, as opposed to U.S.-flag vessels, 

employing mariners from a variety of 

foreign countries in lower wage scales 

and for longer hours than U.S. mariners. 

NCLA must operate their U.S.-flag fleet 

with mostly U.S. citizens and residents, 

driving labor costs higher for NCLA 

than for cruise lines operating foreign 

flag vessels with foreign mariners. 

Based on industry information, the 

cost structure for operating the affected 

U.S.-flag vessels will be higher than 

operating foreign flag vessels due to the 

high labor costs associated with hiring 

and maintaining U.S. crews. NCLA 

claims that high crew costs and 

increased industry capacity directly 

contribute to the decrease in the 

profitability of their U.S.-flag fleet. 

According to NCLA, the annual 

turnover rate for U.S. unlicensed 

mariners working as hospitality staff on 

these vessels has been as high as 200 

percent suggesting the undesirability by 

U.S. unlicensed mariners to work in 

hospitality positions and under the five 

months on and one month off crew shift 

conditions on the domestic vessels. 

NCLA has recently reported that the 

current turnover rate for the U.S. 

unlicensed mariners has fallen to 110 

percent. NCLA has stated that the high 

turnover rate and the associated costs of 

maintaining an all U.S. crew is the only 

reason why they are participating in the 

alternative compliance method. As 

turnover occurs for the U.S. crew, we 

expect NCLA to employ the full 

contingent of non-resident aliens 

allowed by this rule. 

iii. Direct Impacts 

We expect most of the direct costs of 

the rule will be borne by NCLA. The 

rule will require companies to perform 

an employer-conducted background 

check and submit additional required 

merchant mariner application 

information to the Coast Guard on the 

employee’s behalf. However, NCLA 

participation in this alternative 

compliance method is voluntary and 

NCLA will only participate if the net 

benefits of doing so are positive. We 

estimate the benefit to NCLA from 

participating in this rule to be the cost 

savings made through reduced turnover 

and decreased startup training since the 

non-resident alien hired under this 

program will have experience aboard 

foreign flag vessels. 

We have not estimated the overall 

effectiveness of this rule in reducing 

turnover rates or labor costs for NCLA. 

NCLA provided preliminary 

information that suggests they could 

reduce turnover rates by about 25 to 35 

percent annually resulting in a potential 

reduction in labor costs by 

approximately $5 to $10 million 

annually; however, these are 

preliminary estimates and NCLA cannot 

estimate the actual reduction in 

turnover rates and labor costs until they 

implement the alternative compliance 

program. Being that NCLA is the only 

company directly regulated by this 

rulemaking and these estimates are 

based on proprietary and confidential 

business information, the Coast Guard 

and DHS cannot substantiate these 

estimates. This reduction in labor cost is 

the estimated cost savings or net benefit 

for NCLA to participate in the 

alternative MMD citizenship 

compliance method of this rule. 

Indirect Impacts 

We reviewed potential indirect 

impacts of this rule on labor conditions 

and prevailing wages for U.S. 

unlicensed mariners and non-resident 

aliens employed under the rule. 

We do not have information to suggest 

that NCLA will replace U.S. mariners 

currently employed in the steward’s 

department on these vessels with nonresident aliens. In addition, NCLA must 

still employ U.S. residents for at least 75 

percent of the total unlicensed seamen 

onboard their U.S.-flag vessels. Given 

the high turnover rate among the U.S. 

crew, we expect NCLA will still face 

challenges recruiting and maintaining 

their required U.S. resident hospitality 

staff onboard these vessels. 

The Act does not mandate nor does 

the rule require that owners and 

operators bear responsibilities 

associated with conditions of 

employment and shipboard living 

arrangements for non-resident aliens on 

their vessels. The United States is 

signatory to the International Labor 

Organization’s Merchant Shipping 

(Minimum Standards) Convention of 

1976 (ILO 147), which establishes 

shipboard conditions of employment 

and shipboard living arrangements. 

Since the United States is signatory to 

this Convention, participating owners 

and operators must comply with the 

requirements of the convention in their 

employment of all mariners onboard. 

The Act does not mandate that 

participating owners and operators pay 

the non-resident aliens the same 

prevailing wages as the U.S. crew. 

However, United States’ responsibilities 

under the International Labor 

Organization’s Merchant Shipping 

(Minimum Standards) Convention of 

1976 (including the Conventions in the 

Annex), require that seamen can 

negotiate compensation and that seamen 

have the right to enter into collective 

bargaining agreements. Based on 

industry information, the sole affected 

owner (NCLA) has entered into a 

collective bargaining agreement with the 

current U.S. crew and intends on 

employing non-resident aliens under 

the same agreement. This rule does not 

require participating owners to extend 

current labor agreements to non-resident 

aliens employed under this program. 

The collective bargaining agreement 

between the affected owner and the 

union will determine non-resident alien 

employment compensation and pay. 

We are interested in the potential 

impacts from this rule on industry and 

mariners, and we request public 

comment on these potential impacts. If 

you think that this rulemaking would 


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have a significant economic impact, 

please submit a comment to the Docket 

Management Facility at the address 

under ADDRESSES. In your comment, 

explain why, how, and to what degree 

you think this rule would have an 

economic impact on you. 

C. Small Entities 

The Regulatory Flexibility Act 

(‘‘RFA’’; 5 U.S.C. 601–612, as amended) 

requires agencies to consider whether 

regulatory actions would have a 

significant economic impact on a 

substantial number of small entities. 

RFA analysis is not required when a 

rule is exempt from notice and comment 

rulemaking under 5 U.S.C. 553(b). The 

Coast Guard determined that this rule is 

exempt from notice and comment 

rulemaking pursuant to 5 U.S.C. 

553(b)(B). Therefore, an RFA analysis is 

not required for this rule. The Coast 

Guard, nonetheless, expects that this 

interim rule will not have a significant 

economic impact on a substantial 

number of small entities. 

This interim rule will affect owners 

and operators of, and unlicensed 

seamen working on or applying for work 

on, large passenger vessels of more than 

70,000 gross tons, with a capacity of at 

least 2,000 passengers, and documented 

with a coastwise endorsement. This 

rulemaking will also indirectly affect 

unions for unlicensed mariners. 

We have determined that individual 

mariners and the unions affected by this 

rule are not small entities under the 

definition of a small entity in the RFA. 

We also determined that the unions are 

not directly regulated by the rule. 

Owners and operators affected by this 

rule will most likely be classified under 

one of the following North American 

Industry Classification System (NAICS) 

6-digit codes for water transportation: 

483114—Coastal and Great Lakes 

Passenger Transportation or 483112—

Deep Sea Passenger Transportation. 

According to the Small Business 

Administration’s size standards, a U.S. 

company classified under these NAICS 

codes and employing less than 500 

employees is considered a small entity. 

Based on Coast Guard data, we have 

determined that there is only one 

company affected by this rule. We 

researched company size and revenue 

data using proprietary and public 

business databases and found that this 

company employs more than 500 

employees and is not considered a small 

entity by the Small Business 

Administration’s size standards. In 

addition, we found that this company 

was a subsidiary of a large foreignowned corporation. See the ‘‘Regulatory 

Evaluation’’ section for more 

information about the effected vessel 

owner. 

Therefore, the Coast Guard certifies 

under 5 U.S.C. 605(b) that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. If you think that your business, 

organization, or governmental 

jurisdiction qualifies as a small entity 

and that this rule will have a significant 

economic impact on it, please submit a 

comment to the Docket Management 

Facility at the address under ADDRESSES. 

In your comment, explain why you 

think it qualifies and how and to what 

degree this rule would economically 

affect it. 

D. Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we want to assist small entities in 

understanding this interim rule so that 

they can better evaluate its effects on 

them and participate in the rulemaking. 

If the rule would affect your small 

business, organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please contact LCDR Derek 

D’Orazio at 202–372–1405. 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. 

E. Collection of Information 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501–3520), the Office of 

Management and Budget (OMB) reviews 

agency collection of information 

requirements. As part of its review, 

OMB evaluates the practical utility of 

the information in light of the burden 

imposed by its collection. Collection of 

information requirements include 

reporting, recordkeeping, notification, 

and other similar requirements. This 

interim rule will require employers to 

submit employee information to the 

Coast Guard before the Coast Guard will 

issue an MMD for their employees. 

However, we expect only one company 

will be affected by this requirement 

each year, as there is only one company 

in a position to take advantage of these 

regulations. As such, this rule contains 

no new collection of information under 

the Paperwork Reduction Act. 

F. 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. 

States may not regulate in categories 

reserved for regulation by the Coast 

Guard. All of the categories covered in 

46 U.S.C. 3306, 3703, 7101, and 8101 

(design, construction, alteration, repair, 

maintenance, operation, equipping, 

personnel qualification, and manning of 

vessels), as well as the reporting of 

casualties and any other category in 

which Congress intended the Coast 

Guard to be the sole source of a vessel’s 

obligations, are within the field 

foreclosed from regulation by the States. 

See United States v. Locke and 

Intertanko v. Locke, 529 U.S. 89 (March 

6, 2000). This interim rule deals with 

personnel qualifications and the 

manning requirements on large 

passenger vessels. Because the States 

may not regulate within these 

categories, preemption under Executive 

Order 13132 is not an issue. 

G. 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 or more in any one year. 

Though this rule will not result in such 

an expenditure, we discuss the effects of 

this rule elsewhere in this preamble. 

H. Taking of Private Property 

This rule will not effect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630, Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights. 

I. 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. 

J. 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. 

K. 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 


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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. 

L. 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 likely to have a significant 

adverse effect on the supply, 

distribution, or use of energy. The 

Administrator of the Office of 

Information and Regulatory Affairs has 

not designated it as a significant energy 

action. Therefore, it does not require a 

Statement of Energy Effects under 

Executive Order 13211. 

M. 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 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. 

N. Environment 

We have analyzed this rule under 

Commandant Instruction M16475.lD 

and Department of Homeland Security 

Management Directive 5100.1, which 

guide the Coast Guard in complying 

with the National Environmental Policy 

Act of 1969 (NEPA) (42 U.S.C. 4321–

4370f), and have made a preliminary 

determination that there are no factors 

in this case that would limit the use of 

a categorical exclusion under section 

2.B.2 of the Instruction. Therefore, we 

believe that this rule should be 

categorically excluded, under figure 2–

1, paragraph (34)(c), of the Instruction, 

from further environmental 

documentation. This paragraph 

excludes regulatory actions concerning 

the training, qualifying, licensing, and 

disciplining of maritime personnel from 

further environmental documentation, 

and this interim rule concerns the 

licensing of maritime personnel. An 

‘‘Environmental Analysis Check List’’

and a ‘‘Categorical Exclusion 

Determination’’ are available in the 

docket where indicated under the 

‘‘Public Participation and Request for 

Comments’’ section of this preamble. 

Comments on this section will be 

considered before we make the final 

decision on whether this rule should be 

categorically excluded from further 

environmental review. 

List of Subjects 

46 CFR Part 12 

Penalties, Reporting and 

recordkeeping requirements, Schools, 

Seamen. 

46 CFR Part 15 

Reporting and recordkeeping 

requirements, Seamen, Vessels. 

■ Accordingly, 46 CFR Chapter I is 

amended as follows: 

PART 12—CERTIFICATION OF 

SEAMEN 

■ 1. Add new Subpart 12.40 to read as 

follows: 

Subpart 12.40—Non-resident Alien 

Unlicensed Members of the Steward’s 

Department on U.S.-Flag Large 

Passenger Vessels 

Sec. 

12.40–1 Purpose of rules. 

12.40–3 Definitions. 

12.40–5 General application requirements. 

12.40–7 Employer requirements. 

12.40–9 Basis for denial. 

12.40–11 Citizenship and identity. 

12.40–13 Restrictions. 

12.40–15 Alternative means of compliance. 

Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 

2103, 2110, 7301, 7302, 7503, 7505, 7701 and 

8103; Department of Homeland Security 

Delegation No. 0170.1. 

§ 12.40–1 Purpose of rules. 

The rules in this subpart implement 

46 U.S.C. 8103(k) by establishing 

requirements for the issuance of 

merchant mariner’s documents, valid 

only for service in the steward’s 

department of U.S.-flag large passenger 

vessels, to non-resident aliens. 

§ 12.40–3 Definitions. 

As used in this subpart: 

Large passenger vessel means a vessel 

of more than 70,000 gross tons, as 

measured under 46 U.S.C. 14302 and 

documented under the laws of the 

United States, with capacity for at least 

2,000 passengers and a coastwise 

endorsement under 46 U.S.C. chapter 

121. 

Non-resident alien means an 

individual who is not a citizen or alien 

lawfully admitted to the United States 

for permanent residence, but who is 

employable in the United States under 

the Immigration and Nationality Act (8 

U.S.C. 1101 et seq.), including an alien 

crewman described in section 

101(a)(15)(D)(i) of that Act who meets 

the requirements of 46 U.S.C. 

8103(k)(3)(A). 

Steward’s department means the 

department that includes entertainment 

personnel and all service personnel, 

including wait staff, housekeeping staff, 

and galley workers, as defined in the 

vessel security plan approved by the 

Secretary under 46 U.S.C. 70103(c). 

These personnel may also be referred to 

as members of the hotel department on 

a large passenger vessel. 

§ 12.40–5 General application 

requirements. 

(a) Unless otherwise expressly 

specified in this subpart, non-resident 

alien applicants for Coast Guard-issued 

merchant mariner’s documents are 

subject to all applicable requirements 

contained in this subchapter. 

(b) No application from a non-resident 

alien for a merchant mariner’s 

document issued pursuant to this 

subpart will be accepted unless the 

applicant’s employer satisfies all of the 

requirements of § 12.40–7. 

§ 12.40–7 Employer requirements. 

(a) The employer must submit the 

following to the Coast Guard, as a part 

of the applicant’s merchant mariner’s 

document application, on behalf of the 

applicant: 

(1) A signed report that contains all 

material disciplinary actions related to 

the applicant, such as, but not limited 

to, violence or assault, theft, drug and 

alcohol policy violations, and sexual 

harassment, along with an explanation 

of the criteria used by the employer to 

determine the materiality of those 

actions; 

(2) A signed report regarding an 

employer-conducted background check. 

The report must contain: 

(i) A statement that the applicant has 

successfully undergone an employerconducted background check; 

(ii) A description of the employerconducted background check, including 

all databases and records searched. The 

background check must, at a minimum, 

show that the employer has reviewed all 

information reasonably and legally 

available to the owner or managing 

operator, including the review of 

available court and police records in the 

applicant’s country of citizenship, and 

any other country in which the 


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applicant has received employment 

referrals, or resided, for the past 20 

years prior to the date of application; 

and, 

(iii) All information derived from the 

employer-conducted background check. 

(3) The employer-conducted 

background check must be conducted to 

the satisfaction of the Coast Guard for a 

merchant mariner’s document to be 

issued to the applicant. 

(b) If a merchant mariner’s document 

is issued to the applicant, the report and 

information required in paragraph (a)(2) 

of this section must be securely kept by 

the employer on the U.S.-flag large 

passenger vessel, or U.S.-flag large 

passenger vessels, on which the 

applicant is employed. The report and 

information must remain on the last 

U.S.-flag large passenger vessel on 

which the applicant was employed until 

such time as the merchant mariner’s 

document is returned to the Coast Guard 

in accordance with paragraph (d) of this 

section. 

(c) If a merchant mariner’s document 

or a transportation worker identification 

credential (TWIC) is issued to the 

applicant, each merchant mariner’s 

document and TWIC must be securely 

kept by the employer on the U.S.-flag 

large passenger vessel on which the 

applicant is employed. The employer 

must maintain a detailed record of the 

seaman’s total service on all authorized 

U.S.-flag large passenger vessels, and 

must make that information available to 

the Coast Guard upon request, to 

demonstrate that the limitations of 

§ 12.40–13(c) have not been exceeded. 

(d) In the event that the seaman’s 

merchant mariner’s document and/or 

TWIC expires, the seaman’s visa status 

terminates, the seaman serves onboard 

the U.S.-flag large passenger vessel(s) for 

36 months in the aggregate as a 

nonimmigrant crewman, the employer 

terminates employment of the seaman 

or if the seaman otherwise ceases 

working with the employer, the 

employer must return the merchant 

mariner’s document to the Coast Guard 

and/or the TWIC to the Transportation 

Security Administration within 10 days 

of the event. 

(e) In addition to the initial material 

disciplinary actions report and the 

initial employer-conducted background 

check specified in paragraph (a) of this 

section, the employer must: 

(1) Submit an annual material 

disciplinary actions report to update 

whether there have been any material 

disciplinary actions related to the 

applicant since the last material 

disciplinary actions report was 

submitted to the Coast Guard. 

(i) The annual material disciplinary 

actions report must be submitted to the 

satisfaction of the Coast Guard in 

accordance with the same criteria set 

forth in paragraph (a)(1) of this section, 

except that the period of time examined 

for the material disciplinary actions 

report need only extend back to the date 

of the last material disciplinary actions 

report; and 

(ii) The annual material disciplinary 

actions report must be submitted to the 

Coast Guard on or before the 

anniversary of the issuance date of the 

merchant mariner’s document. 

(2) Conduct a background check each 

year that the merchant mariner’s 

document is valid to search for any 

changes that might have occurred since 

the last employer-conducted 

background check was performed: 

(i) The annual background check must 

be conducted to the satisfaction of the 

Coast Guard in accordance with the 

same criteria set forth in paragraph 

(a)(2) of this section, except that the 

period of time examined during the 

annual background check need only 

extend back to the date of the last 

background check; and 

(ii) All information derived from the 

annual background check must be 

submitted to the Coast Guard on or 

before the anniversary of the issuance 

date of the merchant mariner’s 

document. 

(f) The employer is subject to the civil 

penalty provisions specified in 46 

U.S.C. 8103(f) for any violation of this 

section. 

§ 12.40–9 Basis for denial. 

In addition to the requirements for a 

merchant mariner’s document 

established elsewhere in this 

subchapter, and the basis for denial 

established in § 12.02–4 of this part, an 

applicant for a merchant mariner’s 

document issued pursuant to this 

subpart must: 

(a) Have been employed, for a period 

of at least one year, on a foreign-flag 

passenger vessel, or foreign flag 

passenger vessels, that are under the 

same common ownership or control as 

the U.S.-flag large passenger vessel, or 

U.S.-flag large passenger vessels, on 

which the applicant will be employed 

upon issuance of a merchant mariner’s 

document under this subpart. 

(b) Have no record of material 

disciplinary actions during the 

employment required under paragraph 

(a) of this section, as verified in writing 

by the owner or managing operator of 

the U.S.-flag large passenger vessel, or 

U.S.-flag large passenger vessels, on 

which the applicant will be employed. 

(c) Have successfully completed an 

employer-conducted background check, 

to the satisfaction of both the employer 

and the Coast Guard. 

(d) Meet the citizenship and identity 

requirements of § 12.40–11. 

§ 12.40–11 Citizenship and identity. 

(a) In lieu of the requirements of 

§§ 12.02–10, 12.02–12 and 12.02–14 of 

this part, a non-resident alien may apply 

for a Coast Guard-issued merchant 

mariner’s document, endorsed and valid 

only for service in the steward’s 

department of a U.S.-flag large 

passenger vessel as defined in this 

subpart, if he or she is employable in 

the United States under the Immigration 

and Nationality Act (8 U.S.C. 1101, et 

seq.), including an alien crewman 

described in section 101 (a)(15)(D)(i) of 

that Act. 

(b) To meet the citizenship and 

identity requirements of this subpart, an 

applicant must present an unexpired 

passport issued by the government of 

the country of which the applicant is a 

citizen or subject; and either a valid U.S. 

C–1/D Crewman Visa or other valid U.S. 

visa or authority deemed acceptable by 

the Coast Guard. 

(c) Any non-resident alien applying 

for a merchant mariner’s document 

under this subpart may not be a citizen 

of, or a temporary or permanent resident 

of, a country designated by the 

Department of State as a ‘‘State Sponsor 

of Terrorism’’ pursuant to section 6(j) of 

the Export Administration Act of 1979 

(50 U.S.C. App. 2405(j)) or section 620A 

of the Foreign Assistance Act of 1961 

(22 U.S.C. 2371). 

§ 12.40–13 Restrictions. 

(a) A merchant mariner’s document 

issued to a non-resident alien under this 

subpart authorizes service only in the 

steward’s department of the U.S.-flag 

large passenger vessel(s), that is/are 

under the same common ownership and 

control as the foreign-flag passenger 

vessel(s), on which the non-resident 

alien served to meet the requirements of 

§ 12.40–9(a): 

(1) The merchant mariner’s document 

will be endorsed for service in the 

steward’s department in accordance 

with § 12.25–10 of this part; 

(2) The merchant mariner’s document 

may also be endorsed for service as a 

food handler if the applicant meets the 

requirements of § 12.25–20 of this part; 

and 

(3) No other rating or endorsement is 

authorized, except lifeboatman, in 

which case all applicable requirements 

of this subchapter and the STCW 

Convention and STCW Code must be 

met. 


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(b) The following restrictions must be 

printed on the merchant mariner’s 

document, or listed in an accompanying 

Coast Guard letter, or both: 

(1) The name and official number of 

all U.S.-flag vessels on which the nonresident alien may serve. Service is not 

authorized on any other U.S.-flag vessel; 

(2) Upon issuance, the merchant 

mariner’s document must remain in the 

custody of the employer at all times; 

(3) Upon termination of employment, 

the merchant mariner’s document must 

be returned to the Coast Guard within 

10-days in accordance with § 12.40–7; 

(4) A non-resident alien issued a 

merchant mariner’s document under 

this subpart may not perform 

watchstanding, engine room duty 

watch, or vessel navigation functions; 

and, 

(5) A non-resident alien issued a 

merchant mariner’s document under 

this subpart may perform emergencyrelated duties provided: 

(i) The emergency-related duties do 

not require any other rating or 

endorsement, except lifeboatman as 

specified in paragraph (a)(3) of this 

section; 

(ii) The non-resident alien has 

completed familiarization and basic 

safety training, as required in § 15.1105 

of this subchapter; 

(iii) That if the non-resident alien 

serves as a lifeboatman, he or she must 

have the necessary lifeboatman’s 

endorsement; and 

(iv) The non-resident alien has 

completed the training for crewmembers 

on passenger ships performing duties 

involving safety or care for passengers, 

as required in subpart 12.35 of this part. 

(c) A non-resident alien may only 

serve for an aggregate period of 36 

months actual service on all authorized 

U.S.-flag large passenger vessels 

combined under the provisions of this 

subpart: 

(1) Once this 36-month limitation is 

reached, the merchant mariner’s 

document becomes invalid and must be 

returned to the Coast Guard under 

§ 12.40–7(d), and the non-resident alien 

is no longer authorized serve in a 

position requiring a merchant mariner’s 

document on any U.S.-flag large 

passenger vessel; and 

(2) An individual who successfully 

adjusts his or her immigration status to 

become either a alien lawfully admitted 

for permanent residence to the United 

States or citizen of the United States 

may apply for a merchant mariner’s 

document, subject to the requirements 

of §§ 12.02–10, 12.02–12 and 12.02–14 

of this part, without any restrictions or 

limitations imposed by this subpart. 

§ 12.40–15 Alternative means of 

compliance. 

(a) The owner or managing operator of 

a U.S.-flag large passenger vessel, or 

U.S.-flag large passenger vessels, 

seeking to employ non-resident aliens 

issued merchant mariner’s documents 

under this subpart may submit a plan to 

the Coast Guard, which, if approved, 

will serve as an alternative means of 

complying with the requirements of this 

subpart. 

(b) The plan must address all of the 

elements contained in this subpart, as 

well as the related elements contained 

in § 15.530 of this subchapter, to the 

satisfaction of the Coast Guard. 

PART 15—MANNING REQUIREMENTS 

■ 3. The authority citation for part 15 is 

revised to read as follows: 

Authority: 46 U.S.C. 2101, 2103, 3306, 

3703, 8101, 8102, 8104, 8105, 8301, 8304, 

8502, 8503, 8701, 8702, 8901, 8902, 8903, 

8904, 8905(b), 8906, 9102, and 8103; and 

Department of Homeland Security Delegation 

No. 0170.1. 

■ 4. Add new § 15.530 to subpart D to 

read as follows: 

§ 15.530 Large passenger vessels. 

(a) The definition of terms used in 

this section is the same as § 12.40–3 of 

this subchapter. 

(b) The owner or operator of a U.S.- 

flag large passenger vessel must ensure 

that any non-resident alien holding a 

Coast Guard-issued merchant mariner’s 

document described in subpart 12.40 of 

this subchapter is provided the rights, 

protections, and benefits of the 

International Labor Organization’s 

Merchant Shipping (Minimum 

Standards) Convention of 1976. 

(c) On U.S.-flag large passenger 

vessels, non-resident aliens holding a 

Coast-Guard issued merchant mariner’s 

document described in subpart 12.40 of 

this subchapter: 

(1) May only be employed in the 

steward’s department on the vessel(s) 

specified on the merchant mariner’s 

document or accompanying Coast Guard 

letter under § 12.40–13(b)(1) of this 

subchapter; 

(2) May only be employed for an 

aggregate period of 36 months actual 

service on all authorized U.S.-flag large 

passenger vessels combined, under 

§ 12.40–13(c) of this subchapter; 

(3) May not perform watchstanding, 

engine room duty watch, or vessel 

navigation functions, under § 12.40–

13(b)(4) of this subchapter; and 

(4) May perform emergency-related 

duties only if, under § 12.40–13(b)(5) of 

this subchapter: 

(i) The emergency-related duties do 

not require any other rating or 

endorsement, except lifeboatman as 

specified in § 12.40–13(a)(3) of this 

subchapter; 

(ii) The non-resident alien has 

completed familiarization and basic 

safety training, as required in § 15.1105 

of this part; 

(iii) That if the non-resident alien 

serves as a lifeboatman, he or she must 

have the necessary lifeboatman’s 

endorsement; and 

(iv) The non-resident alien has 

completed the training for crewmembers 

on passenger ships performing duties 

involving safety or care for passengers, 

as required in subpart 12.35 of this 

subchapter. 

(d) No more than 25 percent of the 

total number of unlicensed seamen on a 

U.S.-flag large passenger vessel may be 

aliens, whether admitted to the United 

States for permanent residence or 

otherwise allowed to be employed in 

the United States as non-resident aliens. 

(e) The owner or operator of a U.S.- 

flag large passenger vessel employing 

non-resident aliens holding Coast 

Guard-issued merchant mariner’s 

documents described in subpart 12.40 of 

this subchapter must: 

(1) Retain custody of all non-resident 

alien merchant mariner’s documents for 

the duration of employment, under 

§ 12.40–13(b)(2) of this subchapter; and 

(2) Return all non-resident alien 

merchant mariner’s documents to the 

Coast Guard upon termination of 

employment, under § 12.40–13(b)(3) of 

this subchapter. 

(f) The owner or operator of a U.S.- 

flag large passenger vessel employing 

non-resident aliens holding Coast 

Guard-issued merchant mariner’s 

documents described in subpart 12.40 of 

this subchapter is subject to the civil 

penalty provisions specified in 46 

U.S.C. 8103(f), for any violation of this 

section. 

Dated: April 18, 2007. 

Thad W. Allen, 

Admiral, U.S. Coast Guard, Commandant. 

[FR Doc. E7–7696 Filed 4–23–07; 8:45 am] 

BILLING CODE 4910–15–P 


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