20310 Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 187

[CGD 89–050]

RIN 2115–AD35

Vessel Identification System

AGENCY: Coast Guard, DOT.

ACTION: Interim final rule with request

for comments.

SUMMARY: The Coast Guard is

establishing a vessel identification

system (VIS), as required by statute,

which includes guidelines for State

vessel titling systems, procedures for

certifying compliance with those

guidelines, and rules for participation in

this system for undocumented vessels.

VIS, in conjunction with current Coast

Guard vessel documentation

information, will provide a nationwide

pool of vessel and vessel owner

information that will help in

identification and recovery of stolen

vessels and deter vessel theft. A

mortgage that covers the whole of an

undocumented vessel and is perfected

in a State that both participates in VIS

and holds certification of compliance

with guidelines for State vessel titling

systems will be deemed to have

preferred mortgage status.

DATES: This rule is effective on April 24,

1996. Comments must be received on or

before July 24, 1995.

ADDRESSES: Comments may be mailed to

the Executive Secretary, Marine Safety

Council (G–LRA/3406), (CGD 89–050),

U.S. Coast Guard Headquarters, 2100

Second Street SW., Washington, DC

20593–0001, or may be delivered to

room 3406 at the same address between

8 a.m. and 3 p.m., Monday through

Friday, except Federal holidays. The

telephone number is (202) 267–1477.

The Executive Secretary maintains the

public docket for this rulemaking.

Comments will become part of this

docket and will be available for

inspection or copying at room 3406,

U.S. Coast Guard Headquarters, between

8 a.m. and 3 p.m., Monday through

Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: CDR

Keith Cameron, Office of Marine Safety,

Security and Environmental Protection,

Information Management Division (G–

MIM), (202) 267–0385.

SUPPLEMENTARY INFORMATION:

Request for Comments

The Coast Guard encourages

interested persons to participate in this

rulemaking by submitting written data,

views, or arguments. Persons submitting

comments should include their names

and addresses, identify this rulemaking

(CGD 89–050) and the specific section of

this rule to which each comment

applies, and give the reason for each

comment. Please submit two copies of

all comments and attachments in an

unbound format, no larger than 81⁄2 by

11 inches, suitable for copying and

electronic filing. Persons wanting

acknowledgment of receipt of comments

should enclose stamped, self-addressed

postcards or envelopes.

The Coast Guard will consider all

comments received during the comment

period. It may change this rule in view

of the comments.

The Coast Guard plans no public

hearing. Persons may request a public

hearing by writing to the Marine Safety

Council at the address under

ADDRESSES. The request should include

the reasons why a hearing would be

beneficial. If it determines that the

opportunity for oral presentations will

aid this rulemaking, the Coast Guard

will hold a public hearing at a time and

place announced by a later notice in the

Federal Register.

Drafting Information

The principal persons involved in

drafting this document are CDR Keith

Cameron, Project Manager, Office of

Marine Safety, Security and

Environmental Protection and Helen

Boutrous, Project Counsel, Office of

Chief Counsel.

Regulatory History

On October 5, 1993, the Coast Guard

published a notice of proposed

rulemaking (NPRM) entitled Vessel

Identification System in the Federal

Register (58 FR 51920). The Coast Guard

received 27 letters commenting on the

NPRM. No public hearing was

requested, and none was held.

Background and Purpose

The Secretary of Transportation is

required to establish VIS; to prescribe

the manner and form for participating

States to make information available to

VIS; to establish guidelines for State

vessel titling systems; and to establish

procedures for certifying compliance

with those guidelines (46 U.S.C.

chapters 125, 131 & 313). The Secretary

has delegated to the Commandant, U.S.

Coast Guard, the authority to implement

VIS. State participation in VIS is

entirely voluntary, however, in order to

participate, States must comply with

certain requirements to ensure the

integrity and uniformity of the

information provided to VIS.

This interim final rule establishes the

minimum requirements for States

electing to participate in VIS. VIS will

comprise a nationwide information

system for identifying recreational

vessels that are either numbered in

accordance with 46 U.S.C. 123 or titled

under the laws of a State. VIS will

include information identifying vessels

and vessel owners, and information to

assist law enforcement officials in the

investigation of stolen vessels. Most of

the information to be included in VIS is

already collected by States that number

vessels in accordance with 33 CFR

174.17. This and other information

collected by the States will be

automatically accessed by VIS, resulting

in a central, nationwide pool of vessel

information, while minimizing the

burden of participating States. Once the

VIS requirements are effective, the Coast

Guard will begin to work with

participating States to coordinate VIS

access.

This interim final rule also prescribes

guidelines for State vessel titling

systems and the procedures for

obtaining certification of compliance

with those guidelines. Under 46 U.S.C.

31322(d), perfected mortgages covering

the whole of a vessel titled in a State

that both participates in VIS and has a

vessel titling system that has been

certified as meeting the titling

guidelines issued by this interim final

rule will be deemed to have preferred

mortgage status. Compliance with the

State titling guidelines and requests for

certification of that compliance is

entirely voluntary. However, preferred

mortgage status under 46 U.S.C.

31321(d) is conditioned upon both

participation in VIS and certification of

compliance with the State titling

guidelines issued by this interim final

rule.

This action is being published as an

interim final rule to allow for public

comment on a provision, § 187.315, that

has been added to the State vessel titling

requirements since publication of the

NPRM. Also, this action is being

published with an effective date of one

year from today’s date. This effective

date will allow States affected by a

statutory amendment to 46 U.S.C.

chapter 121, which becomes effective

one year from the effective date of the

State titling guidelines issued as a part

of this interim final rule, time to review,

and if necessary, amend their vessel

titling requirements. These issues are

addressed in greater detail in the

discussion of § 187.315 later in this

preamble.

It is not anticipated that VIS will be

operational before the effective date of

this interim final rule. Publishing the
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations 20311

VIS requirements now, however, will

provide States with the information

necessary to prepare for participation in

the voluntary VIS system.

Discussion of Comments and Changes

All of the comments received were

considered in the development of this

interim final rule. The issues raised by

the comments received, and the sections

which have been revised or added since

publication of the NPRM, are discussed

below. Some sections were revised or

reorganized for clarity.

Subpart A—General

§ 187.1 Applicability.

VIS will cover vessels that are

numbered or titled under the laws of a

State. Information pertaining to vessels

which are documented by the Coast

Guard will continue to be collected

under the current regulations. Many of

the comments suggested that

documented vessels be covered by the

VIS requirements. After analyzing the

merits of applying the VIS requirements

to documented vessels, the Coast Guard

determined that it will be more efficient

to maintain the current Coast Guard

data base on documented vessels, and

allow increased access to that

information through VIS. Therefore,

documented vessels will not be covered

by the vessel identification system

requirements of this interim final rule.

Users of VIS will, however, have access

to a nationwide pool of information on

recreational vessels, whether

documented or undocumented, because

the planned enhancement of the

documentation data base will allow

access to the Coast Guard’s data base on

documented vessels through VIS. The

Coast Guard currently maintains an

information system on over 200,000

vessels documented under 46 U.S.C.

chapter 121. Maintaining this

documentation system, while allowing

access to the data base through VIS,

satisfies the statutory goal of

establishing a nationwide vessel data

base and is more efficient than

discontinuing the existing

documentation record keeping system.

One comment suggested that the VIS

final rule specifically exempt barges

from VIS. The comment noted that the

Abandoned Barge Act of 1992 amended

46 U.S.C. 12301 to require the

numbering of undocumented barges

greater than 100 gross tons. The Coast

Guard published a notice on October 18,

1994, seeking comments on the

development of a numbering system for

barges (59 FR 52646). Currently, barges

are not numbered, and the Coast Guard

is in the early stages of developing a

mandatory numbering system. Because

this interim final rule applies only to

vessels that are numbered or titled

under the laws of a State, barges are not

currently covered by VIS. As the Coast

Guard’s efforts to establish a barge

numbering system continue, the Coast

Guard will examine whether a specific

exclusion of barges from VIS is

appropriate. The Coast Guard will

propose future amendments to VIS, if

necessary.

§ 187.3 Definitions.

One comment suggested that the

Coast Guard add the definition of ‘‘titled

vessel’’ to § 187.3 and another comment

suggested adding the definition of

‘‘perfection’’. Under § 187.303, the Coast

Guard requires that participating States

define most of the terms included in

§ 187.3 in their titling systems

substantially as those terms are defined

by the Coast Guard. Therefore, in order

to allow the States the most flexibility

possible in establishing approved titling

systems, the Coast Guard has attempted

to minimize the number of required

definitions. The Coast Guard agrees that

a definition of the term ‘‘titled vessel’’

would be helpful, and a definition of

that term has been added. However, the

term ‘‘perfection’’ will be left to the

States to define in accordance with their

own titling systems. The definition of

the term ‘‘person’’ has been revised to

be consistent with the definition

provided in the regulations regarding

State numbering system requirements at

33 CFR 173.3(e). This revision is

intended to result in no substantive

change.

§ 187.5 Vessel identifier.

Many comments objected to the use of

‘‘VIN’’ as an acronym for ‘‘Vessel

Identification Number.’’ The comments

suggested that this acronym would

confuse law enforcement personnel who

are far more familiar with VIN meaning

Vehicle Identification Number. The

Coast Guard agrees with these

comments and will not use the acronym

VIN in the VIS regulations. The title of

the section has been revised

accordingly.

Some of the comments revealed a

misunderstanding of this provision by

objecting to the establishment of a new

number. VIS will not establish a new

numbering system for vessels. For

purposes of identifying a vessel within

VIS, the number to be used will be the

hull identification number (HIN)

assigned to an undocumented vessel in

accordance with Subpart C of part 181.

Several comments suggested that

documented vessels be identified within

VIS by their HIN. However, as discussed

above, the Coast Guard is maintaining

its existing data base on documented

vessels which uses the Coast Guard

Official Number to identify vessels

within the current documentation

system. Therefore, it will be necessary

to keep the Coast Guard Official Number

as the primary identifier for

documented vessels. Information on

documented vessels, such as owner

name, Official Number, HIN if one has

been assigned, length, and hailing port,

will be available through VIS.

Several comments suggested that

§ 187.5(c), which requires States to

assign an HIN to vessels under certain

circumstances, will be problematic for

States. The comments stated that the

requirement leaves no room for

discretion by the States to refuse to

assign an HIN to a vessel which the

State may believe to be stolen. These

comments suggested replacing the word

‘‘shall’’ with ‘‘may’’ in paragraph (c).

The Coast Guard disagrees with these

comments. The HIN will be the primary

identifier for all State registered or

numbered vessels in the United States.

Section 187.5(b) allows for the use of

other identifiers, such as the number

issued on a certificate of number by the

issuing authority of a State, only where

a vessel does not have an HIN (e.g., a

vessel built prior to 1972). However,

under § 187.5(c), if the ownership or

State of principle use of the vessel

changes, the State is required to assign

an HIN to that vessel, just as States

currently do under the authority of 33

CFR 181.31(c) for ‘‘backyard boat

builders’’. The HIN must meet the

format requirements of 33 CFR 181.25.

States may impose any controls

necessary to ensure HINs are assigned

appropriately. Section 187.5(c) has been

revised to clarify this issue for the

States. The Coast Guard specifically

invites comments on this revised

provision from States that anticipate

participating in VIS.

One comment suggested that VIS

require mandatory inspection of a vessel

prior to a State assigning an HIN. While

the Coast Guard agrees that inspections

could lessen the probability of illegal

action by those attempting to obtain an

HIN, it is the Coast Guard’s position that

the decision to implement such

procedures should be left to the

individual States.

Several comments suggested requiring

that all documented vessels be assigned

an HIN. Vessels manufactured or used

primarily for noncommercial use (33

CFR 181.3), the only vessels included in

VIS, are currently required to have an

HIN, whether they are documented or

not. However, as discussed above, to

utilize the existing database of

information on documented vessels, it
20312 Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations

will be necessary to use the Coast Guard

Official Number as the primary

identifier for a documented vessel.

Subpart B—Information to be Collected by

Participating States

§ 187.101 Information to identify a vessel

owner.

Many comments objected to the

provision that would have required

participating States to collect

information on the percentage of

ownership interest of each owner for

each vessel. Many comments also

objected to the proposed requirement to

obtain the address of each owner. These

comments contended that collecting this

amount of information would be overly

burdensome. The Coast Guard agrees

with the comments on this matter, and

§ 187.101 has been revised to lessen the

information burden. This interim final

rule requires the State to obtain the

name of each owner of a vessel, but does

not require States to collect any

information regarding the percentages of

ownership interest. Further, States are

required to obtain the address of only

one owner.

Several comments objected to the

collection of an individual owner’s

Social Security Number or, where not

available, date of birth and driver’s

license number. The comments

indicated that some States do not allow

the required collection of an

individual’s social security number, and

not all individuals have a driver’s

license. For an effective information and

identification system, there must be a

method of identifying the owner of a

vessel beyond the individual’s name.

The Coast Guard included collection of

date of birth and driver’s license

number to assist those States that may

have problems collecting Social

Security Numbers. To alleviate the

situation that may arise for a State

where no Social Security Number or

driver’s license number is available, the

Coast Guard will accept, in such

situations only, the individual’s date of

birth and alternative information

identifying the individual vessel owner

as specified by the regulations of the

State or issuing authority.

§ 187.103 Information to identify a vessel.

Most of the comments agreed with the

NPRM regarding the information to be

collected to identify a vessel.

One comment suggested that

information regarding a vessel’s type of

propulsion is too detailed for inclusion

in VIS. However, it is the Coast Guard’s

position that a vessel’s type of

propulsion is an excellent means, in

combination with other information, to

identify a vessel. Propulsion type

greatly influences the value of a vessel,

and this information is currently

required to be collected by States with

authorized numbering systems under 33

CFR 174. Therefore, inclusion of this

information in VIS will cause no

additional information collection

requirement for these States. However,

the term ‘‘jet drive’’ has been removed

from the list of propulsion types to be

consistent with the list of propulsion

types provided in the regulations

regarding State numbering system

requirements at 33 CFR 174.19.

One comment argued that the final

rule should not require the collection of

the vessel number previously issued by

an issuing authority. It is the Coast

Guard’s position that this is valuable

information in assisting in the

identification of a vessel. Also, like

propulsion type, this information is

required to be collected by States with

authorized numbering systems under 33

CFR part 174 and represents no

increased burden for these States that

choose to participate.

§ 187.105 Information on titled vessels.

There was general agreement among

those commenting regarding the

information to be collected on titled

vessels by a participating State.

One comment however, disagreed

with the requirement to collect

information regarding evidence of a lien

or other security interest. The comment

argued that the information would not

be helpful. Also, the comment argued

that it would be difficult to collect

information regarding evidence of a lien

kept in another State. Under 46 U.S.C.

12501(b)(5), VIS must include

information on titled vessels indicating

where evidence of a lien or other

security interest may be found against

the vessel in that State. Therefore, the

requirement to collect information

indicating where evidence of a lien may

be found is retained in this interim final

rule. Section 187.105(a)(3) has been

revised, however, to clarify that a State

must collect information regarding

evidence of a lien or other security

interest found in that State only.

§ 187.107 Information to assist law

enforcement officials.

Several of the comments agreed with

the requirements of § 187.107 as

proposed. The information listed in

paragraph (a) of § 187.107 (report of loss

or theft, point of contact) is required to

be collected, while collection of the

more detailed information listed in

paragraph (b) is optional. One comment

suggested that the Coast Guard require

the collection of the information listed

in both paragraphs (a) and (b). The Coast

Guard encourages participating States to

collect the detailed information listed in

paragraph (b). However, in the interest

of putting the least possible burden on

participating States while still meeting

the needs of the VIS system, the Coast

Guard has determined that, for now,

collection of the information listed in

paragraph (b) will remain optional. The

Coast Guard has been working with the

Criminal Justice Information Service,

Department of Justice, regarding the

mutual supporting roles of the National

Crime Information Center (NCIC) and

VIS. Because much of the information

listed in paragraph (b) is contained in

NCIC’s Boat File, collection of that

information will not be required in this

rulemaking.

Subpart C—Vessel Identification System

Participation Requirements

§ 187.201 Participating State requirements.

Paragraph (b) was reserved in

proposed § 187.201. It has been

determined that additional requirments

are not necessary in that section and the

paragraphs of § 187.201 have been

redesignated accordingly. Also, a

printing error in the wording of

proposed § 187.201(a)(6) (now

§ 187.201(f)) has been corrected in this

interim final rule.

One comment stated that the retention

of previously issued certificates of

number or titles would be overly

burdensome. This section requires a

State to collect old, no longer valid,

certificates of number and title when

issuing new certificates of number or

titles. The State may retain or dispose of

the old documents as it sees fit. Because

a State is free to dispose of these invalid

records, the Coast Guard does not agree

that the provision is overly burdensome

and the provision is retained.

Two comments suggested that

compliance with the participation

requirements would be easier if States

are allowed to use microfiche

technology. States are free to use such

technology or other methods of

electronic storage where appropriate.

This rulemaking does not address how

that information is to be stored by the

States. As discussed earlier, and in

§ 187.201(a), Coast Guard-State

Cooperative Agreements will be

developed to specify the manner and

form that information will be accessed

by VIS.

Several comments suggested that

participation in VIS be made mandatory

for States. There is no statutory

authority to require participation in VIS.

Under 46 U.S.C. chapter 125,

participation in VIS by the States is to

be voluntary.
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations 20313

One comment suggested that the

Coast Guard utilize an existing system,

the American Association of Motor

Vehicles Administrator’s network

(AAMVANET) rather than develop VIS.

It was further suggested that a ‘‘pointer

system’’ such as used in AAMVANET,

would eliminate the need for a

participating State to maintain two

systems. VIS, which the Coast Guard is

required by statute to create, will

automatically access information

collected by participating States from

their databases. There will be no need

for participating States to maintain two

systems. The purpose of VIS is to create

a national vessel database that consists

of the information collected by States

during numbering and titling

procedures. There will be no need for a

participating State to enter any vessel

data twice. VIS will contain data that

has been electronically copied.

One comment suggested that the

project was redundant, would place a

paperwork burden on the States, and

would be funded by a boat tax. VIS will

be the first nationwide pool of

information containing the vessel and

vessel owner information prescribed by

this interim final rule. The framework of

the system has been designed to

minimize any additional burden on

participating States. Almost all of the

information required is currently

collected by States with numbering or

titling systems. There will be no need

for these States to collect the

information a second time. As

discussed, the information will be

automatically accessed or accepted by

VIS. Therefore, the Coast Guard

estimates that participation will not be

burdensome for participating States.

Finally, there is no ‘‘boat tax’’ associated

with this rulemaking or the enabling

legislation. Funding for the

establishment of VIS is provided

through the Coast Guard appropriations

process.

Subpart D—Guidelines for State Vessel

Titling Systems

§ 187.301 Eligibility for preferred mortgage

status.

One comment suggested that

preferred mortgage status would not be

available as described in the NPRM. The

comment questioned the ‘‘legality of

assigning ‘preferred mortgage status’ to

instruments recorded within’’ VIS. No

‘‘instruments’’ will be ‘‘recorded’’

within VIS. VIS is an information data

base only. As for preferred mortgage

status, 46 U.S.C. 31322(d)(1)(A) and (B)

state that a mortgage perfected under

State law, covering the whole of a

vessel, is deemed to be a preferred

mortgage if the State’s titling system is

certified to be in compliance with the

titling guidelines issued by the

Secretary, and if information on the

vessel covered by the mortgage is made

available to VIS. Therefore, § 187.301

remains unchanged.

§ 187.305 Application for title.

In the NPRM, § 187.305(a) proposed

that States require application for a title

within a specified period of time, not to

exceed 90 days, after a change in

ownership. Many of the comments

suggested that the period of time

required to apply for a title be changed

to within 60 days of a change in

ownership. The Coast Guard agrees with

this suggestion and the provision is

revised accordingly.

One comment suggested that the

phrase ‘‘first purchased’’ be removed

from paragraph (a). However, the Coast

Guard has decided to retain this phrase

in the provision to distinguish between

an act requiring an initial application

for title and other acts transferring the

title.

Many comments disagreed with the

requirement in paragraph (b) to include

the amount of indebtedness covered by

any security agreement pertaining to the

vessel in its titling application form.

The comments indicated that this

requirement constituted unnecessary

detail in the application process. The

Coast Guard agrees that including the

amount of indebtedness on a vessel in

the titling application form does not

serve a sufficiently useful purpose to

outweigh the burden of collection of

that information. Consequently, this

interim final rule requires that the

titling application form include an entry

indicating whether there is

indebtedness covered by any security

agreement pertaining to the vessel, but

does not require disclosure of the actual

amount.

§ 187.307 Dealer and manufacturer

provisions.

Many of the comments disagreed with

paragraphs (a) and (b) of proposed

§ 187.307. Paragraph (a) proposed to

require States to require dealers to

report acquisition of a used numbered

vessel for resale, and allow them to

apply for a certificate of title. Paragraph

(b) proposed to require States to require

dealers to apply for a certificate of title

for a used unnumbered vessel acquired

for resale if the vessel is required to be

titled. The comments contended that

these provisions are unclear. One

comment stated that paragraphs (a) and

(b) are unnecessary because paragraph

(a) merely allows something that States

could do without such a provision, and

very few vessels fit the description in

paragraph (b). A different comment

argued that requiring dealers to apply

for title as described in paragraph (b)

would cause procedural burden. The

Coast Guard has revised paragraph (a) to

clarify that States must require dealers

to either report acquisition of used

vessels for resale, or, title these vessels

if State law requires such vessels to be

titled. Paragraph (b) is deleted.

One comment suggested that the

Coast Guard increase the length of time

that dealers and manufacturers must

maintain records from 3 to 10 years.

Another suggested that the 3 year

requirement be decreased. The Coast

Guard’s position is that 3 years is a

sufficient amount of time to retain such

records without placing an undue

burden on dealers and manufacturers.

Paragraph (d) requires dealers and

manufacturers to provide to the vessel

owner a certificate of origin (COO), or

other document, at the time of delivery

of a new vessel. Several comments

suggested requiring that manufacturers

supply a COO only and delete the words

‘‘or other documents’’. Other comments

suggested specific contents to be

required in a COO. The Coast Guard, in

another rulemaking, is considering

requirements for COOs (Expanded Hull

Identification Number and New

Requirements for Certificates of Origin

[CGD 92–065]; May 6, 1994; 59 FR

23651). Such requirements have not

been considered as a part of this

rulemaking. If future requirements for

COOs are established, the VIS

requirements can be amended if

necessary. At the present time, there is

no requirement that manufacturers issue

COOs. Therefore, the language allowing

for other documents such as a Builder’s

Certificate (CG 1261), is necessary.

§ 187.311 Transfer by operation of law.

Many comments suggested that the

time limits set for accomplishing

various requirements, such as applying

for a certificate of title if a vessel is

transferred by operation of law, as

required in § 187.311, and after a

transfer in ownership, as required in

§ 187.305(a), be consistent throughout

the titling guidelines. Most comments

preferred a 60 day time limit.

Consequently, this interim final rule

changes the time limit proposed in

§ 187.311 from ‘‘not to exceed 90 days’’

to ‘‘not to exceed 60 days.’’

§ 187.315 Surrender of title for purposes of

documentation.

Under Federal law, a vessel must be

documented by the Coast Guard if it

engages in coastwise trade, foreign

trade, or fisheries. A recreational vessel

is not required to be documented, but
20314 Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations

may be if it meets eligibility

requirements. In the past, some lending

institutions have required recreational

vessel owners to obtain Coast Guard

documentation so that preferred

mortgages may be recorded to protect

security interests. After implementation

of VIS, a mortgage may acquire

preferred status under 46 U.S.C.

31322(d) if it is perfected under State

law for a vessel titled in a State that

both participates in VIS and has a titling

system certified by the Coast Guard.

However, some States may not choose to

participate in VIS. Therefore, the Coast

Guard will continue to provide

documentation services for eligible

vessels, whether or not required to be

documented, in order to extend the

opportunity to record a preferred

mortgage to those vessels.

Although it was not specifically

addressed in the NPRM, a comment

noted that a 1989 amendment to 46

U.S.C. 12102 would render a vessel

titled in a State ineligible for

documentation by the Coast Guard. This

amendment will become effective on

April 25, 1997, one year after the

effective date of these vessel titling

guidelines.

The Coast Guard wishes to emphasize

that the statutory prohibition applies to

all State-titled vessels, whether or not

the State that issued the title

participates in VIS or follows these

titling guidelines. If a vessel owner has

obtained a State title for purposes of

convenience, the owner must choose to

surrender either the State title or the

Certificate of Documentation. For a

vessel engaged in a trade for which

documentation is required under

Federal law, the owner could not choose

to relinquish the Certificate of

Documentation and continue to employ

the vessel in trade. Three States (Iowa,

New Jersey, and Vermont) currently

require that a vessel receive a State title

if the owner resides in the State or the

vessel is principally used in the State,

whether or not the vessel is documented

by the Coast Guard. The Coast Guard’s

position is that, for vessels required to

be documented under Federal law, the

Federal documentation requirement

preempts the State titling requirement.

The vessel’s Certificate of

Documentation will remain valid and

the State title will be void, even if a title

is required by State law.

However, this preemption does not

extend to recreational vessels not

required to be documented by Federal

law. As of the effective date of the

amendment, a recreational vessel titled

by a State is ineligible for

documentation, and any existing

Certificate of Documentation will be

invalid. The vessel owner will have to

either surrender the title to the issuing

State authority before April 25, 1997 or

surrender the Certificate of

Documentation to the Coast Guard.

However, an owner will be unable to

surrender the title if the vessel is

required to be titled under State law.

To address this issue, a new

provision, entitled ‘‘Surrender of title

for purposes of documentation’’, has

been added to the State titling

guidelines. To obtain certification of

compliance with the guidelines, a State

would have to deem a State-issued title

invalid if a vessel owner surrenders the

title to the Coast Guard for the purpose

of obtaining Coast Guard

documentation. The Coast Guard would

return the title to the issuing State. This

is intended to prevent an owner from

establishing dual chains of ownership,

and is consistent with current practice

in most States. States generally accept

surrender of title when a vessel is

purchased by an out-of-State owner or

an owner moves to a different State and

applies for a new title and registration.

A similar process is used for automobile

titles.

This provision was not included in

the NPRM. Therefore, the Coast Guard

is promulgating this action as an interim

rule to allow interested parties the

opportunity to comment. The Coast

Guard specifically requests comments

from States on the impact of the

statutory amendment and the surrender

guidelines. Additionally, the Coast

Guard has delayed the effective date of

this rule until April 25, 1996 to allow

States time to review their titling

requirements and make any necessary

changes.

§ 187.317 Information on a certificate of

title.

Many comments argued against

including the percentage of ownership

interest and the address of every owner

on certificates of title. These comments

came from State officials who explained

that often many people may own a boat

and including the percentage of

ownership and each address on

certificates of title would be

burdensome and unhelpful. Also, many

married couples own boats jointly and

it would serve no purpose to indicate

the percentage of ownership between

them. None of those States commenting

on this issue currently collect this

information. The Coast Guard agrees

with these comments and has revised

§ 187.317 to require the name(s) of all

current owner(s) and the address of one

of the owners.

Only one comment argued against the

recording of liens on certificates of title.

Lien information is specifically required

to be included in VIS under 46 U.S.C.

12501(b)(5). Lien information is very

important in the development of the

integrated boat information and titling

system envisioned by Congress.

Therefore, the requirement to include

lien information on the certificate of

title is retained in this interim final rule.

§ 187.319 Duplicate title.

Several comments suggested revisions

to § 187.319. The NPRM required that

the word ‘‘duplicate’’ be ‘‘stamped’’

across the face of a duplicate certificate

of title. The comments noted that other

means of marking the document besides

‘‘stamping’’ it should be allowed, and

the marking should not be required to

be ‘‘across’’ the face of the document.

The Coast Guard agrees with these

comments and has revised this

provision to require that the word

‘‘duplicate’’ be ‘‘clearly and

permanently marked on’’ the face of the

document.

One comment argued that duplicate

certificates of title should not be

allowed. The Coast Guard does not

agree with this comment. Circumstances

such as loss, theft, or destruction of the

document can arise and after the State

has inquired into those circumstances as

required by this section, a duplicate

certificate of title should be available to

the owner.

Another comment suggested

specifying a period of time in which an

owner must apply for a duplicate

certificate of title. In the interest of

allowing States wishing to comply with

these titling guidelines as much

flexibility as possible in designing

titling programs for their States, the

Coast Guard has decided to leave to the

States the determination of the

appropriate amount of time within

which an owner must apply for a

duplicate certificate of title.

§ 187.321 Hull identification number

provisions.

Several comments suggested that the

provisions of § 187.321 be optional for

States complying with the guidelines.

The Coast Guard does not agree with

this suggestion. Section 187.321

requires States that seek certification of

compliance with the guidelines to:

assign an HIN to an undocumented

vessel without an HIN at the time of

registration upon transfer of ownership

or change in State of principal

operation; assign an HIN to an

undocumented vessel without an HIN at

the time of title application and record

the HIN on the certificate of title; and

prohibit the removal or alteration of an

HIN without the authorization of the
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations 20315

Commandant. The proper assignment of

an HIN to a vessel that previously did

not have one, whether because of its age

or because the manufacturer failed to

permanently affix one, will protect the

new owner and assist law enforcement

efforts. Proper identification of vessels

is vital to the success of the VIS and law

enforcement efforts.

One of these comments also suggested

that States be allowed to authorize the

removal of an HIN. However, the Coast

Guard has determined that this

authority should remain with the Coast

Guard consistent with the HIN

requirements at 33 CFR 181.35.

Regulatory Evaluation

This action 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 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 (44 FR

11040; February 26, 1979). The Coast

Guard expects the economic impact of

this interim final rule to be so minimal

that a full Regulatory Evaluation under

paragraph 10(e) of the regulatory

policies and procedures of DOT is

unnecessary. This interim final rule

implements the provisions of the Act

requiring the establishment of VIS, and

establishes requirements for States that

elect to participate in VIS, guidelines for

State vessel titling systems, and

procedures for certifying compliance

with those guidelines. Participation in

VIS and compliance with the guidelines

for State vessel titling systems is

entirely voluntary. Most of the

information to be included in VIS is

already collected by States when

registering vessels within the State.

Preliminary review of titling laws,

regulations and administrative

procedures of 28 States revealed that 21

of the State vessel titling systems would

comply with most or all of the titling

guidelines issued by this interim final

rule. The overall impact of this rule will

be the improvement of vessel and owner

identification, and a potential decrease

in the amount of information that is

collected, other than for vessel

registration, to identify a vessel or

owner by State and Federal officials.

Small Entities

It is anticipated that the VIS computer

system will facilitate the collection of

information directly from State

computer files. The impact of the

rulemaking will be on States electing to

participate in VIS, rather than on small

entities. Most of the information to be

included in VIS is already collected by

States when registering vessels within

the State and by States that title vessels.

Therefore, the Coast Guard certifies

under 605(b) of the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.) that

this interim final rule will not have a

significant economic impact on a

substantial number of small entities.

Collection of Information

This rule contains collection of

information requirements. The Coast

Guard has submitted the requirements

to the Office of Management and Budget

(OMB) for review under section 3504(h)

of the Paperwork Reduction Act (44

U.S.C. 3501 et seq.), and OMB has

approved them. The section numbers

are: 187.7, 187.9, 187.101, 187.103,

187.105, 187.107, 187.201, and 187.301.

The corresponding OMB control

number is 2115–0607.

Federalism

The Coast Guard has analyzed this

rule in accordance with the principles

and criteria contained in Executive

Order 12612 and has determined that

this rule does not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

This rule is not expected to infringe

upon the rights of States to regulate, or

preempt existing State regulations. State

participation is entirely voluntary.

However, once electing to participate, a

State must comply with the

requirements to ensure integrity and

uniformity of information in VIS.

Likewise, requesting certification that a

State vessel titling system complies with

the guidelines is also voluntary. Such

certification, for participating States,

confers preferred status on mortgages

covering the whole of vessels titled in

that State.

However, an amendment to 46 U.S.C.

12102 prohibits vessels from being both

documented and titled beginning one

year after the effective date of the vessel

titling guidelines. The statutory

amendment applies to all vessel owners

whether or not the State chooses to

participate in VIS or follow the State

titling guidelines. For vessels required

to be documented under Federal law,

the Federal documentation requirement

preempts State titling requirements.

This preemption does not extend to

recreational vessels, for which

documentation is not required by

Federal law. States that require

documented vessels to be titled may

desire to amend their requirements

regarding vessels that are required by

Federal law to be documented.

Environment

The Coast Guard considered the

environmental impact of this rule and

concluded that, under paragraph 2.B.2

of Commandant Instruction M16475.1B,

this rule is categorically excluded from

further environmental documentation.

This rule establishes a nationwide

information system for identifying

vessels and vessel owners, and

guidelines for State vessel titling

systems. This action clearly would have

no environmental consequences. A

Categorical Exclusion Determination is

available in the docket for inspection or

copying where indicated under

ADDRESSES.

List of Subjects in 33 CFR Part 187

Marine safety, Reporting and

recordkeeping requirements,

Administrative practice and procedure.

For the reasons set out in the

preamble, the Coast Guard amends

chapter I of title 33, Code of Federal

Regulations, by adding part 187 to read

as follows:

PART 187—VESSEL IDENTIFICATION

SYSTEM

Subpart A—General

Sec.

187.1 Applicability.

187.3 Definitions.

187.5 Vessel identifier.

187.7 Participation procedures.

187.9 Procedures for certification of

compliance with guidelines for State

vessel titling systems.

Subpart B—Information To Be

Collected by Participating States

Sec.

187.101 Information to identify a vessel

owner.

187.103 Information to identify a vessel.

187.105 Information on titled vessels.

187.107 Information to assist law

enforcement officials.

Subpart C—Vessel Identification

System Participation Requirements

Sec.

187.201 Participating State requirements.

187.203 Voluntary provisions for

participating States.

Subpart D—Guidelines for State Vessel

Titling Systems

Sec.

187.301 Eligibility for preferred mortgage

status.

187.303 Definitions.

187.305 Application for title.

187.307 Dealer and manufacturer

provisions.

187.309 Transfer of title.

187.311 Transfer by operation of law.
20316 Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations

187.313 Title of another State.

187.315 Surrender of title for purposes of

documentation.

187.317 Information on a certificate of title.

187.319 Duplicate title.

187.321 Hull identification number (HIN)

provisions.

187.323 Perfection of security interests.

187.325 Assignments.

187.327 Satisfaction of a security interest.

187.329 Forms.

187.331 Retaining information.

Appendix A to Part 187—Participating

Authorities

Appendix B to Part 187—Participating

And Certified Titling Authorities

Authority: 46 U.S.C. 2103; 49 CFR 1.46.

Subpart A—General

§ 187.1 Applicability.

(a) This part establishes minimum

requirements for States electing to

participate in the vessel identification

system (VIS) established under 46

U.S.C. chapter 125. This part also

prescribes guidelines for State vessel

titling systems and the procedures for

obtaining certification of compliance

with those guidelines for those States

electing to establish titling systems to

support preferred mortgages.

(b) This part applies only to vessels

numbered or titled under the laws of a

State. It does not apply to vessels

documented under 46 U.S.C. chapter

121 and the regulations in 46 CFR parts

67 and 68.

§ 187.3 Definitions.

The following definitions apply to

terms used in this part.

Certificate of Origin (COO) means a

document establishing the initial chain

of ownership, such as manufacturer’s

certificate of origin (MCO) or statement

of origin (MSO), importer’s certificate of

origin (ICO) or statement of origin (ISO),

and builder’s certification (Form CG–

1261; see 46 CFR part 67).

Commandant means the Commandant

of the United States Coast Guard.

Dealer means any person who engages

wholly or in part in the business of

buying, selling, or exchanging new or

used vessels, or both, either outright or

on conditional sale, bailment, lease,

chattel mortgage or otherwise, and who

has an established place of business for

the sale, trade, and display of such

vessels.

Department or division means the

State agency designated to issue

certificates of number or title, or both

for vessels, and its duly authorized

representatives.

Documented vessel means a vessel

documented under 46 U.S.C. chapter

121.

HIN means the hull identification

number assigned to an undocumented

vessel in accordance with subpart C of

part 181 of this subchapter.

Issuing authority means a State that

has a numbering system approved by

the Coast Guard or the Coast Guard

where a State numbering system has not

been approved.

Lienholder means a person holding a

security interest.

Manufacturer means any person

engaged in the business of

manufacturing or importing new vessels

for the purpose of sale or trade.

Owner means a person who claims

lawful possession of a vessel by virtue

of legal title or equitable interest in it

that entitles that person to such

possession.

Participating State means a State that

has elected to participate in VIS and has

been certified as complying with the

participation requirements in subpart C

of this part. Certified States

participating in VIS are listed in

Appendix A of this part.

Person means an individual, firm,

partnership, corporation, company,

association, joint-stock association, or

governmental entity and includes a

trustee, receiver, assignee, or similar

representative of any of them.

Security interest means an interest

that is reserved or created by an

agreement and that secures payment or

performance of an obligation and is

valid against third parties generally.

State means a State of the United

States, Guam, Puerto Rico, the Virgin

Islands, American Samoa, the District of

Columbia, the Northern Mariana

Islands, and any other territory or

possession of the United States.

Titled vessel means a vessel titled in

accordance with the laws of a State.

Titling authority means a State whose

vessel titling system has been certified

by the Coast Guard as complying with

the guidelines for State vessel titling

systems listed in this part. Titling

authorities participating in VIS are

listed in Appendix B of this part.

Vessel includes every description of

watercraft other than a seaplane on the

water, used or capable of being used, as

a means of transportation on water.

§ 187.5 Vessel identifier.

(a) The vessel identifier is the hull

identification number (HIN) assigned to

an undocumented vessel in accordance

with subpart C of part 181 of this

subchapter. The vessel identifier for a

documented vessel is the official

number assigned by the Coast Guard in

accordance with 46 U.S.C. chapter 121.

(b) If the vessel does not have an HIN,

the vessel identifier for vessels subject

to the numbering requirements of parts

173 and 174 of this subchapter is the

number issued on a certificate of

number by the issuing authority for the

State in which the vessel is principally

operated.

(c) If a vessel subject to the numbering

requirements of parts 173 and 174 of

this subchapter is transferred to a new

owner, or the vessel is required to be

numbered in a new State of principal

operation, or application for a title is

made, a hull identification number

meeting the format requirements of

§ 181.25 shall be assigned by the issuing

authority for the State in which the

vessel is principally operated in

accordance with the State’s established

procedures if the vessel does not have

a valid HIN.

§ 187.7 Participation procedures.

(a) To participate in VIS, a State

official within the department must

submit a written request to the

Commandant (G–NAB) and certify that

the State will comply with the VIS

participation requirements in subpart C

of this part.

(b) Appendix A of this part lists those

States that have elected to participate in

VIS and comply with the participation

requirements prescribed in this part. A

State will remain listed in Appendix A

of this part as long as it continues to

comply with the participation

requirements in subpart C of this part.

§ 187.9 Procedures for certification of

compliance with guidelines for State vessel

titling systems.

(a) Under 46 U.S.C. 31322(d), a

mortgage or instrument perfected under

State law for a vessel titled under the

law of a participating State is deemed to

be a preferred mortgage if the State has

been certified as complying with the

guidelines in subpart D of this part.

(b) To obtain certification of

compliance with the State titling

guidelines, a State official within the

department must submit a written

request along with a copy of the State’s

titling laws, regulations and

administrative procedures, to the

Commandant (G–NAB), and certify that

the State will comply with the

participation requirements in subpart C

of this part.

(c) The Commandant will review the

material, and, if the State complies with

the guidelines provided in subpart D of

this part, certify compliance.

(d) Appendix B of this part indicates

those States that participate in VIS and,

have been certified by the Commandant

as complying with the guidelines

prescribed in subpart D of this part and

the date of that certification. A State
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations 20317

with a vessel titling system that

complies with the guidelines of subpart

D of this part will remain listed, in

Appendix B of this part.

Subpart B—Information To Be

Collected by Participating States

§ 187.101 Information to identify a vessel

owner.

A participating State must collect the

following information regarding the

ownership of vessels numbered or titled

under the laws of that State:

(a) Name of each owner.

(b) The address of the principal place

of residence of at least one individual

owner, or the address of the principal

place of business of an owner that is not

an individual, including zip code.

(c) Mailing address of at least one

owner, if different from the address

required by paragraph (b) of this section.

(d) If the owner is an individual, the

owner’s social security number, or, if

that number is not available, the

individual’s birth date and driver’s

license number or, if the individual

does not have a driver’s license, the

individual’s birth date and other

information to identify that individual

as prescribed by the State or titling

authority.

(e) If the owner is other than an

individual, the owner’s—

(1) Taxpayer identification number; or

(2) If the owner does not have a

taxpayer identification number, the

social security number, or if the social

security number is not available, birth

date and driver’s license number, or if

no driver’s license number is available,

the birth date and other identifying

information prescribed by State

regulation, of an individual who is a

corporate officer, general partner, or

individual trustee of the owner and who

signed the application for numbering

the vessel.

§ 187.103 Information to identify a vessel.

A participating State must collect the

following information regarding the

identity of a vessel numbered or titled

under the laws of that State:

(a) Make of vessel or name of vessel

builder, if known.

(b) Manufacture year, year vessel

built, or vessel model year, if known.

(c) Vessel identifier required by

§ 187.5 of this part.

(d) Official number assigned by U.S.

Coast Guard or predecessor agency, if

applicable.

(e) Number currently assigned by the

State issuing authority, as printed on the

certificate of number.

(f) Length of vessel.

(g) Type of vessel (open, cabin, house,

or other).

(h) Whether the hull is wood,

fiberglass, metal, plastic, or other.

(i) Whether the propulsion is inboard,

outboard, inboard-outdrive, sail, or

other.

(j) Whether the fuel is gasoline, diesel,

or other.

(k) Whether the vessel is operated for

pleasure, rent or lease, dealer or

manufacturer demonstration,

commercial passenger carrying,

commercial fishing, or other commercial

operation.

(l) Number previously issued to the

vessel by an issuing authority.

(m) Expiration date of certificate of

number issued by the State vessel

numbering authority.

§ 187.105 Information on titled vessels.

(a) In addition to the information

required under § 187.103, a

participating State must collect the

following information on a vessel titled

in that State:

(1) Title number issued by the State.

(2) Where evidence of a lien or other

security interest may be found against a

vessel titled in that State.

(3) Name(s) of the lienholder(s).

(4) Address of principal place of

residence of each individual lienholder

and the address of the principal place of

business of each lienholder that is not

an individual, including zip code.

(b) Participating States may collect the

following information on titled vessels:

(1) Mailing address of any lienholder

that is different from the addresses

required by paragraph (a)(4) of this

section.

(2) Telephone number of each

lienholder.

§ 187.107 Information to assist law

enforcement officials.

(a) Participating States must make the

following information available to assist

law enforcement officials:

(1) Notice that a vessel, identified by

its vessel identifier, has been reported

lost, stolen, destroyed, abandoned, or

recovered.

(2) Name and telephone number of

organization to contact for additional

information or to notify regarding the

recovery of a vessel.

(b) Participating States may make the

following information available to assist

law enforcement officials:

(1) Reported date that the vessel was

stolen.

(2) Reported location of vessel when

stolen.

(3) Vessel insurance policy number, if

insured.

(4) Name of the insurance company.

(5) Address of insurance company,

including zip code.

(6) Mailing address of the insurance

company for notification, if different

from the address provided under

paragraph (b)(5) of this section.

(7) Telephone number of insurance

company.

(8) Date that the vessel was recovered.

(9) Location of vessel when recovered.

(10) Name(s) and telephone number(s)

of organization(s), in addition to the one

provided under paragraph (a) of this

section, public or private, to contact for

additional information on sighting and

recovery of vessels.

(11) Request to be notified if vessel is

sighted.

(12) Purpose of sighting notification

request.

(13) Date and time when vessel last

sighted.

(14) Location of vessel when last

sighted.

(15) Organization to contact for

additional information on sighting.

Subpart C—Vessel Identification

System Participation Requirements

§ 187.201 Participating State requirements.

A participating State must comply

with the following requirements:

(a) Collect the required information

listed in subpart B of this part and

provide that information to the vessel

identification system in the manner and

form specified in the applicable Coast

Guard-State Cooperative Agreement.

(b) Obtain specific evidence of

ownership, such as certificate of origin

or current certificate of title or number,

to identify a vessel’s owner.

(c) Return any surrendered Certificate

of Documentation to the issuing Coast

Guard Vessel Documentation Office.

(d) Retain previously issued

certificate of number or title and notify

issuing authority by mail or electronic

message.

(e) Retain information identifying the

type of evidence used to establish the

accuracy of the information required to

be made available to VIS, and make it

available to the Coast Guard upon

request.

(f) Update the information required to

be made available to VIS on a vessel that

has not been re-registered by labeling

the vessel file ‘‘inactive’’ or, if notified

that a vessel has been moved to a

nonparticipating State, by indicating the

new State and notifying the Coast

Guard.

§ 187.203 Voluntary provisions for

participating States.

A participating State may—

(a) Provide VIS with the optional

information listed in subpart B of this

part;
20318 Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations

(b) Make updated information

provided by the vessel owner,

government agency or lienholder,

available to VIS regarding a vessel that

has been moved to a nonparticipating

State; and

(c) Interact with nonparticipating

States to make information available to,

or request information from, VIS

concerning a vessel or nationwide

statistics.

Subpart D—Guidelines for State Vessel

Titling Systems

§ 187.301 Eligibility for preferred mortgage

status.

A State vessel titling system that

meets the requirements of this subpart

may be certified by the Commandant

under 46 U.S.C. 31322 (d)(1)(A), in

accordance with the procedures of

§ 187.9, as complying with the

guidelines for vessel titling systems for

the purpose of conveying preferred

mortgage status on mortgages perfected

after the date of certification, covering

the whole of a vessel titled in that State,

provided that the State also complies

with the vessel identification system

participation requirements of § 187.7

and subpart C of this part.

§ 187.303 Definitions.

A State must define the terms,

‘‘certificate of origin’’, ‘‘dealer’’,

‘‘department’’ or ‘‘division’’,

‘‘documented vessel’’, ‘‘issuing

authority’’, ‘‘lienholder’’,

‘‘manufacturer’’, ‘‘owner’’, ‘‘person’’,

‘‘security interest’’, ‘‘titling authority’’,

and ‘‘vessel’’, substantially as those

terms are defined in § 187.3.

§ 187.305 Application for title.

(a) Except as provided in § 187.307, a

State must require application for a title

within a specified period of time, not to

exceed 60 days, after a vessel is first

purchased, ownership is transferred, or

there is a change in vessel data listed on

the certificate of title.

(b) A State must require disclosure of

the existence of indebtedness covered

by any security agreement pertaining to

the vessel in its titling application form.

(c) The title application must include

an entry for identification of the State or

country in which the vessel was last

numbered or titled, if applicable.

(d) A State must require that the title

application include a signed

certification that statements made are

true and correct to the best of the

applicant’s knowledge, information and

belief, under penalty of perjury.

§ 187.307 Dealer and manufacturer

provisions.

A State must include the following

provisions for dealers or manufacturers,

building, buying, acquiring, or

transferring vessels, in that State.

(a) Dealers must be required to either

report acquisition of a used numbered

vessel for resale, or, apply for certificate

of title if such vessel is required to be

titled.

(b) Dealers must be allowed to apply

for a certificate of title for a new vessel

acquired for resale.

(c) Dealers and manufacturers must be

required to provide to the vessel owner

a certificate of origin, or other

document, at the time of delivery of a

new vessel to initiate the chain of

ownership.

(d) Dealers and manufacturers must

be required to maintain for at least 3

years a record of any vessel bought,

sold, exchanged, or received for sale or

exchange, and have such records open

for inspection by the State.

§ 187.309 Transfer of title.

Except for transfers by operation of

law such as inheritance, order in

bankruptcy, replevin, default judgment

or execution sale, a State must require

that to complete the sale, assignment or

transfer of a titled vessel, a

manufacturer, dealer or individual,

must deliver the vessel’s certificate of

title to the new owner.

§ 187.311 Transfer by operation of law.

A State must require a new owner to

apply for a certificate of title within a

specified period of time, not to exceed

60 days, if ownership of a vessel is

transferred by operation of law, such as

inheritance, order in bankruptcy,

replevin, default judgment or execution

sale, and to include an original or

certified copy of the legal transfer

document along with the application.

§ 187.313 Title of another State.

A State must provide for honoring a

current and valid title issued by another

State, or a Certificate of Ownership

issued by the Coast Guard, as proof of

ownership for transfer or sale of a

vessel, and for applying for certificates

of number or title in a new State of

principal operation.

§ 187.315 Surrender of title for purposes of

documentation.

A State must deem a title issued by

that State as invalid when a vessel

owner surrenders it to the U.S. Coast

Guard for vessel documentation

purposes. Upon receipt of a title from

the U.S. Coast Guard, a State must

accept the returned title for

administrative processing and

cancellation.

§ 187.317 Information on a certificate of

title.

(a) A State must specify the following

information on a certificate of title:

(1) Current owner(s) name(s).

(2) The address of the principal place

of residence of an individual owner, and

the address of the principal place of

business of an owner that is not an

individual, including zip code.

(3) Date of title issuance.

(4) Vessel description, including the

vessel identification number required by

§ 187.05 of this part, name of

manufacturer or model, year built or the

model year, vessel length, vessel type,

drive or propulsion type, vessel use,

hull material and fuel type.

(5) Each lienholder’s name and

address.

(6) Recording or perfection date of

new liens and original recording date of

any liens outstanding.

(b) Space must be provided on the

certificate of title form for assignment of

interests in the vessel, with a

certification that statements provided on

the title assignment are true and correct

to the best of the owner’s knowledge,

under penalty of perjury.

§ 187.319 Duplicate title.

(a) The term ‘‘DUPLICATE’’ must be

clearly and permanently marked on the

face of a duplicate certificate.

(b) A State must require the holder of

an original title, whether the owner or

lienholder, to apply for a duplicate title

within a specified period of time after,

or after the discovery of, the loss, theft,

mutilation, or destruction of an original

certificate of title; provide information

concerning the original certificate and

the circumstances of its loss, theft,

mutilation, or destruction; and

surrender to the department any

recovered original title or remains.

§ 187.321 Hull identification number (HIN)

provisions.

A State must—

(a) Assign an HIN and require that it

be affixed to an undocumented vessel

that does not have an HIN at the time

of registration or application for title

after transfer of ownership or change of

State of principal operation;

(b) Assign an HIN to an

undocumented vessel without an HIN at

time of title application and record the

HIN on the certificate of title; and

(c) Prohibit removal or alteration of an

HIN without authorization from the

Commandant.
Federal Register / Vol. 60, No. 79 / Tuesday, April 25, 1995 / Rules and Regulations 20319

§ 187.323 Perfection of security interests.

(a) A State must provide that a

security interest is not valid under State

law unless perfected under procedures

specified by the State. If a vessel is

already subject to a security interest

when it is brought into a State, the

validity of the security interest is to be

determined by the law of the

jurisdiction where the vessel was titled

when the security interest attached. The

State must specify at least the following

procedures.

(1) The procedures by which a

security interest is perfected, including

a requirement for the delivery of an

application for new or amended

certificate of title.

(2) The procedures by which the date

of perfection is determined.

(b) The perfection provisions required

to be established under paragraphs (a)

and (b) of this section must not apply

to—

(1) A lien given by statute or rule of

law to a supplier of services or materials

for the vessel;

(2) A lien given by statute to the

United States, a State, or a political

subdivision thereof; or

(3) Any lien arising out of an

attachment of a vessel.

§ 187.325 Assignments.

A State must specify whether a

security interest in a vessel titled under

the State titling system may be assigned

and the procedures for perfecting

assignments.

§ 187.327 Satisfaction of security

interests.

A State must specify evidence and

information that lienholders are

required to submit to the State regarding

satisfaction of a security interest, and

establish procedures and time limits for

its submission.

§ 187.329 Forms.

A State must prescribe and provide

the application, certificate of title,

notice of security interests, and other

forms needed to comply with the titling

system provisions.

§ 187.331 Retaining information.

A State must retain information

identifying the evidence used to

establish the accuracy of the

information required for vessel titling

purposes for 3 years and make the

information available to the Coast Guard

on request.

Appendix A to Part 187—Participating

Authorities

The following States comply with the

requirements for participating in VIS:

[No States currently comply with the

requirements for participating in VIS.]

Appendix B to Part 187—Participating

and Certified Titling Authorities

The following States both comply

with the requirements for participating

in VIS and have a titling system

certified to be in compliance with the

guidelines for State vessel titling

systems:

[No States currently have a certified

titling system and participate in VIS.]

Dated: April 17, 1995.

J.C. Card,

Rear Admiral, U.S. Coast Guard, Chief, Office

of Marine Safety, Security and Environmental

Protection.

[FR Doc. 95–10067 Filed 4–24–95; 8:45 am]

BILLING CODE 4910–14–P