[Federal Register Volume 63, Number 92 (Wednesday, May 13, 1998)]
[Proposed Rules]
[Pages 26566-26569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12659]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 1 and 10

[USCG-1998-3824]
RIN 2115-AF58


Maritime Course Approval Procedures

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to revise the regulations which 
govern Maritime Course Approval Procedures, by streamlining the process 
by which courses are submitted to and reviewed by the Coast Guard. We 
also propose to add a mechanism to allow us to suspend or revoke 
approvals for courses. Although the regulations govern training schools 
with approved courses, only a methodology for course approval is 
provided. Revising the regulations to include a mechanism for 
withdrawal of approval will motivate schools to maintain a uniformly 
high standard, improve compliance with course approval regulations, and 
ultimately promote public safety.

DATES: Comments must reach the Docket Management Facility on or before 
July 13, 1998.

ADDRESSES: You may mail comments to the Docket Management Facility, 
(USCG-1998-3824), U.S. Department of Transportation, room PL-401, 400 
Seventh Street SW., Washington, DC 20590-0001, or deliver them to room 
PL-401, located on the Plaza Level of the Nassif Building at the same 
address between 10 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays. The telephone number is 202-366-9329.
    The Docket Management Facility maintains the public docket for this 
rulemaking. Comments will become part of this docket and will be 
available for inspection or copying at room PL-401, located on the 
Plaza Level of the Nassif Building at the same address between 10 a.m. 
and 5 p.m., Monday through Friday, except Federal holidays. You may 
also access this docket on the Internet at http://dms.dot.gov.

FOR FURTHER INFORMATION CONTACT:
For questions about the docket, contact Ms. Paulette Twine, Chief, 
Documentary Services Division, Department of

[[Page 26567]]

Transportation, telephone 202-366-9329. For questions about this 
notice, contact Gerald Miante, Project Manager, National Maritime 
Center (NMC), 703-235-0018.

SUPPLEMENTARY INFORMATION: 
    Request for Comments
    The Coast Guard encourages you to submit written data, views, or 
arguments. If you submit comments, you should include your name and 
address, identify this notice (USCG-1998-3824) and the specific section 
or question in this document to which your comments apply, and give the 
reason for each comment. Please submit one copy of all comments and 
attachments in an unbound format, no larger than 8\1/2\ by 11 inches, 
suitable for copying and electronic filing to the DOT Docket Management 
Facility at the address under ADDRESSES. If you want us to acknowledge 
receiving your comments, please enclose a stamped, self-addressed 
postcard or envelope.
    The Coast Guard will consider all comments received during the 
comment period.
    The Coast Guard plans no public meeting. You may request a public 
meeting by submitting a request to the address under ADDRESSES. The 
request should include the reasons why a meeting would be beneficial. 
If the Coast Guard determines that a public meeting should be held, it 
will hold the meeting at a time and place announced by a later notice 
in the Federal Register.

Background and Purpose

    Regulations for merchant mariner course approvals have been in 
place for several years and are found in 46 CFR part 10. Courses were 
first approved for education mandated by regulation such as radar 
observer, fire-fighting, and first aid. Courses were then approved for 
formal training instead of required sea service for both renewal and 
raise in grade of license or an endorsement, and to substitute for a 
Coast Guard examination.
    With the publication of a Focus Group Study, Licensing 2000 and 
Beyond in 1993, the Coast Guard began approving courses to substitute 
for certain modules of examination, especially for lower level 
licenses. Now, with the implementation of the 1995 Amendments to the 
International Convention on Standards of Training, Certification and 
Watchkeeping for Seafarers, 1978 (STCW) of the International Maritime 
Organization (IMO), requirements for basic entry-level education, 
structured shipboard training programs, and specific assessment 
protocols, the course approval burden has increased considerably.
    Presently, the Coast Guard has approved in excess of 500 courses 
presented by over 200 schools and the number is growing weekly. As part 
of a Quality Standard System (QSS), Coast Guard Regional Examination 
Centers (RECs) are charged with oversight of these widespread training 
institutions.
    The majority of schools consistently operate according to the 
regulations governing course approvals. There are times, however, when 
audits of a particular school show evidence of infractions ranging from 
incomplete recordkeeping to major deficiencies dealing with examination 
tampering, operating outside the conditions of the course approval, and 
outright misrepresentation of course material. Some primary reasons for 
suspending or revoking a course approval would include (but are not 
limited to):
    <bullet> Failure to comply with the provisions of the course 
approval.
    <bullet> Failure to comply with the provisions of parts 10, 12, 13 
or 15 of Title 46, Code of Federal Regulations (46 CFR) especially Part 
10, Subpart C.
    <bullet> Scheduling and teaching an approved course at a location 
other than the site required in the application for approval and 
authorized in the approval letter unless prior site approval is 
requested of and granted by the Officer in Charge, Marine Inspection 
(OCMI) of the Regional Exam Center in whose area of responsibility the 
``remote site'' is located.
    <bullet> Not adhering to the approved length of the course; cutting 
short instructional time on a daily or weekly basis. Substituting 
``homework'' or ``preparation time,'' either on computer-based 
questions or artificially drawn-out plotting exercises for quality 
classroom instructional contact hours.
    <bullet> Using unqualified instructors, substandard facilities or 
otherwise presenting the course in a manner that is not sufficient for 
or conducive to achieving the learning objectives of the course.
    <bullet> Not giving a final (end-of-course) exam equal in scope and 
difficulty to the Coast Guard exam for that particular license or 
endorsement. Also, for not giving a final exam or a ``re-take'' exam 
which is totally different than any homework, classroom ``practice 
exercise'' or exam previously viewed by the student.
    <bullet> Issuing certificates of course completion to students who 
have not demonstrated competency or who have not otherwise met the 
course requirements.
    <bullet> Advertising, holding a course, or issuing certificates of 
course completion to students as having passed a course of instruction 
for which the school does not hold a valid Coast Guard approval.
    <bullet> Assisting a student in passing the final (end-of-course) 
exam by either directly or indirectly providing any assistance 
including, but not limited to, supplying answers, hinting at the 
correct answer, grading and returning the exam for completion and 
indicating that certain answers or choices are incorrect prior to 
grading.
    <bullet> Giving a student a final (end-of-course) exam orally. The 
authority to give an oral examination rests with the OCMI per 46 CFR 
10.205.
    <bullet> Allowing a student to enroll or join the course after the 
beginning of course instruction.
    In order to prevent these infractions, and ensure the integrity of 
Coast Guard approved courses, it is necessary to establish suspension, 
revocation, and appeal provisions in our regulations.

Discussion of Proposed Rule

    1. The Coast Guard proposes to amend section 10.302(a) to require 
training organizations seeking course approval to submit course 
packages to the Commanding Officer, National Maritime Center, (NMC) 
directly rather than via the OCMI.
    Amended paragraph (a) would also reflect that the title of the 
Director, National Maritime Center has been changed to the Commanding 
Officer, National Maritime Center.
    At present, course packages are submitted to the OCMI who then 
conducts a preliminary review of the course, including an inspection of 
the proposed teaching facility and a review of instructor 
qualifications. Upon completion of this preliminary review, the course 
package is then forwarded to the NMC with the OCMI's recommendation for 
approval or disapproval. The NMC then conducts its review of the course 
and either issues or denies approval. Under the proposed rule, courses 
will be submitted directly to the NMC, who will then direct the OCMI to 
conduct an inspection of the teaching facility and evaluation of the 
proposed instructors. This will allow the OCMI and NMC to conduct their 
reviews concurrently thereby reducing the time between initial 
submission of the course by the training organization and approval of 
the course by the NMC.
    Paragraph (a) would be amended to indicate that the Coast Guard now 
approves training that satisfies regulatory requirements or that 
substitutes for a Coast Guard

[[Page 26568]]

examination or a portion of a sea service requirement.
    2. The Coast Guard proposes to amend section 10.302, paragraphs (c) 
and (d), to add, in each paragraph, that approvals expire when a school 
closes or when a school no longer offers the course.
    3. The Coast Guard also proposes to add three paragraphs to section 
10.302. New paragraph (e) would enumerate the conditions that allow the 
NMC or OCMI to suspend a course approval. Approval may be suspended if 
the Coast Guard determines that a specific course does not comply with 
46 CFR Parts 10, 12, 13 or 15 or the requirements specified in the 
course approval, if the course substantially deviates from the course 
framework that was initially submitted for approval, or if the course 
is presented in a manner that is not sufficient for, or conducive to, 
achieving learning objectives. If such a determination is made, the 
cognizant OCMI may suspend the approval, may direct the surrender of 
the certificate of approval and/or direct the holder to cease claiming 
the course is Coast Guard approved. In the event of suspension, the 
cognizant OCMI will notify the approval holder in writing of the 
impending suspension, and give them an opportunity to correct the 
reasons for suspension. If the approval holder fails to correct the 
reasons for suspension, the course will be suspended and the matter 
referred to the Commanding Officer, NMC. Upon such suspension, the 
Commanding Officer, National Maritime Center will notify the approval 
holder that the course fails to meet applicable requirements and will 
explain how those deficiencies can be corrected. The NMC may grant the 
approval holder up to 60 days in which to correct the deficiencies.
    New paragraph (f) would identify conditions that allow the 
Commanding Officer, National Maritime Center to revoke an approval. 
Approval(s) may be revoked for failure to correct deficiencies 
identified by the Commanding Officer, National Maritime Center. The 
Coast Guard may also revoke any or all course approvals held by an 
approval holder if there has been a determination that the approval 
holder has a demonstrated history of failure to comply with applicable 
requirements of their course approvals. In such instances, the approval 
holder has shown a clear disregard for the terms of their approval such 
that it is reasonable to infer that they are not adhering to their 
approval in any of their courses. This revocation would ensure the 
integrity of Coast Guard approved training by revoking all approvals if 
that approval holder's conduct is such that there is reasonable cause 
to suspect that all training offered by that approval holder is not 
being conducted in compliance with the Code of Federal Regulations or 
the requirements of their course approvals. Course approvals can also 
be revoked if there is a demonstrated history of substantial deviations 
from course curricula or, presenting courses in a manner that is not 
sufficient for, or conducive to, achieving learning objectives.
    New paragraph (g) would outline the appeal procedure for any of the 
above actions. Persons directly affected by a suspension or revocation 
of an approval may appeal to the Commandant via the Commanding Officer, 
National Maritime Center as provided for by 46 CFR Part 1.03-15.
    Regarding appeals, 46 CFR 1.03-15(h)(3) and 1.03-45 would be 
amended to reflect that the title of the Director, National Maritime 
Center has been changed to Commanding Officer, National Maritime 
Center, and would add language about appeals regarding suspension or 
revocation of course approvals.
    4. In addition, the Coast Guard proposes to amend section 10.303(e) 
to require training organizations to submit change requests to approved 
courses to the Commanding Officer, National Maritime Center (NMC-4B) 
directly rather than via the OCMI.

Regulatory Evaluation

    This proposed rule is not a significant regulatory action under 
section 3(f) of Executive Order 12866 and does not require an 
assessment of potential costs and benefits under section 6(a)(3) of 
that Order. It has not been reviewed by the Office of Management and 
Budget under that Order. It is not significant under the regulatory 
policies and procedures of the Department of Transportation (DOT) (44 
FR 11040; February 26, 1979). The Coast Guard expects the economic 
impact of this proposed rule to be so minimal that a full Regulatory 
Evaluation under paragraph 10e of the regulatory policies and 
procedures of DOT is unnecessary.
    Course approval suspensions, revocations, or expirations do not 
impose specific requirements on any course holder that would cause an 
economic effect. Rather, this rule establishes a standard enforcement 
method for the rare number of course approval holders who do not comply 
with applicable statutes, regulations, and the terms of course 
approval.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the 
Coast Guard considers whether this proposed rule, if adopted, would 
have a significant economic impact on a substantial number of small 
entities. ``Small entities'' include small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000.
    The small entities affected by this rule are privately owned and 
operated schools with one to several employees, community colleges, and 
maritime labor union owned and operated schools. Suspension or 
revocation of an approval for a course or courses depends on the nature 
and severity of the infraction with the resultant loss of revenue for 
the specific period.
    However, we realize that most schools operate within the confines 
of course approval regulations, guidelines and letters. This notice of 
proposed rulemaking would provide a standard mechanism, in regulation, 
for the rare instances when a school might deviate from those course 
approval regulations, guidelines and letters. Also, this rule would 
provide an opportunity for the approval holder to correct any 
deficiencies prior to revocation.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this proposed rule, if adopted, will not have a significant economic 
impact on a substantial number of small entities. If, however, you 
think that your business or organization qualifies as a small entity 
and that this proposed rule will have a significant economic impact on 
your business or organization, please submit a comment (see Addresses) 
explaining why you think it qualifies and in what way and to what 
degree this proposed rule will economically affect it.

Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-121), the Coast Guard 
wants to assist small entities in understanding this proposed rule so 
that they can better evaluate its effects on them and participate in 
the rulemaking process. We will mail copies of the notice of proposed 
rulemaking to all schools teaching approved courses to facilitate small 
businesses' ability to respond with comments. If your small business or 
organization is affected by this rule and you have questions concerning 
its provisions or options for compliance

[[Page 26569]]

please contact Gerald Miante, 703-235-0018.

Collection of Information

    This proposed rule contains no new collection-of-information 
requirements under the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.). Collection of information control number OMB 2115-0111 is 
assigned to this section.

Federalism

    The Coast Guard has analyzed this proposed rule under the 
principles and criteria contained in Executive Order 12612 and has 
determined that this proposed rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Assessment.

Environment

    The Coast Guard considered the environmental impact of this 
proposed rule and concluded that under paragraph 2.B.2.e.(34)(a) of 
Commandant Instruction M16475.1B, this proposed rule is categorically 
excluded from further environmental documentation. A ``Categorical 
Exclusion Determination'' is available in the docket for inspection or 
copying where indicated under ADDRESSES.

List of Subjects

46 CFR Part 1

    Administrative practice and procedure, Organization and functions 
(Government agencies), Reporting and recordkeeping requirements.

46 CFR Part 10

    Reporting and recordkeeping requirements, Schools, Seamen.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 46 CFR parts 1 and 10 as follows:

PART 1--ORGANIZATION, GENERAL COURSE AND METHODS GOVERNING MARINE 
SAFETY FUNCTIONS

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

    Authority: 5 U.S.C. 552; 14 U.S.C. 633; 46 U.S.C. 7701; 49 CFR 
1.45, 1.46; Sec. 1.01-35 also issued under the authority of 44 
U.S.C. 3507.

    2. In Sec. 1.03-15, revise paragraph (h)(3) to read as follows:


Sec. 1.03-15  General.

* * * * *
    (h) * * *
    (3) Commanding Officer, National Maritime Center, for appeals 
involving vessel documentation issues and suspension or revocation of 
course approvals.
* * * * *
    3. Revise Sec. 1.03-45 to read as follows:


Sec. 1.03-45  Appeals from decisions or actions involving documentation 
of vessels and suspension or revocation of course approvals.

    Any person directly affected by a decision or action of an officer 
or employee of the Coast Guard acting on or in regard to the 
documentation of a vessel under part 67 or suspension or revocation of 
course approvals under part 10 of this chapter, may make a formal 
appeal of that decision or action to the Commandant (G-MO) via the 
Commanding Officer, National Maritime Center, in accordance with 
procedures contained in Secs. 1.03-15 through 1.03-25 of this subpart.

PART 10--LICENSING OF MARITIME PERSONNEL

    4. The authority citation for part 10 continues to read as follows:

    Authority: 31 U.S.C. 9701; 46 U.S.C. 2101, 2103, 2110; 46 U.S.C. 
Chapter 71; 46 U.S.C. 7502, 7505, 7701; 49 CFR 1.45, 1.46; Sec. 
10.107 also issued under the authority of 44 U.S.C. 3507.

    5. In Sec. 10.302, in paragraphs (c) and (d), immediately preceding 
the words ``or on the date of'', add the words ``when the school 
closes, when the school no longer offers the course,''; revise 
paragraph (a) introductory text; and add paragraphs (e), (f), and (g) 
to read as follows:


Sec. 10.302  Course approval.

    (a) The Coast Guard approves courses satisfying regulatory 
requirements and those that substitute for a Coast Guard examination or 
a portion of a sea service requirement. The owner or operator of a 
training school desiring to have a course approved by the Coast Guard 
shall submit a written request to the Commanding Officer, National 
Maritime Center, NMC-4B, 4200 Wilson Boulevard, Suite 510, Arlington, 
VA 22203-1804, that contains:
* * * * *
    (e) Suspension of approval. If the Coast Guard determines that a 
specific course does not comply with the provisions of 46 CFR parts 10, 
12, 13 or 15, or the requirements specified in the course approval; or 
substantially deviates from the course curriculum package as submitted 
for approval; or if the course is being presented in a manner that is 
insufficient to achieve learning objectives; the cognizant OCMI may 
suspend the approval, may require the holder to surrender the 
certificate of approval, if any, and may direct the holder to cease 
claiming the course is Coast Guard approved. The cognizant OCMI will 
notify the approval holder in writing of its intention to suspend the 
approval and the reasons for suspension. If the approval holder fails 
to correct the reasons for suspension, the course will be suspended and 
the matter referred to the Commanding Officer, National Maritime 
Center. The Commanding Officer, National Maritime Center, will notify 
the approval holder that the specific course fails to meet applicable 
requirements, and explain how those deficiencies can be corrected. The 
Commanding Officer, National Maritime Center may grant the approval 
holder up to 60 days in which to correct the deficiencies.
    (f) Revocation of approval. (1) The Commanding Officer, National 
Maritime Center may revoke approval for any course when the approval 
holder fails to correct the deficiency(ies) of a suspended course 
approval within a time period allowed under paragraph (e) of this 
section.
    (2) The Commanding Officer, National Maritime Center may revoke 
approval of any or all courses by an approval holder upon a 
determination that the approval holder has demonstrated a pattern or 
history of:
    (i) Failing to comply with the applicable regulations or the 
requirements of course approvals;
    (ii) Substantial deviations from their approved course curricula; 
or
    (iii) Presenting courses in a manner that is insufficient to 
achieve learning objectives.
    (g) Appeals of suspension and revocation of approval. Anyone 
directly affected by a decision to suspend or revoke an approval may 
appeal the decision to the Commandant via the Commanding Officer, 
National Maritime Center, as provided in Sec. 1.03-45 of this chapter.
    6. In Sec. 10.303, revise paragraph (e) to read as follows:


Sec. 10.303  General standards.

* * * * *
    (e) Not change its approved curriculum unless approved, in writing, 
after the request for change has been submitted in writing to the 
Commanding Officer, National Maritime Center (NMC-4B).
* * * * *
    Dated: April 13, 1998.
Joseph J. Angelo,
Acting Assistant Commandant for Marine Safety and Environmental 
Protection.
[FR Doc. 98-12659 Filed 5-12-98; 8:45 am]
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