Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 50679 

1https://www.whitehouse.gov/sites/ 

whitehouse.gov/files/omb/memoranda/2017/M-17- 

22.pdf. 

apply to all grant assistance provided 

under this subpart. FEMA may elect to 

conduct a Federal audit on the disaster 

assistance award or on any of the 

subawards. 

■ 30. Amend § 206.439 by revising the 

second sentence of paragraph (c) to read 

as follows: 

§ 206.439 Allowable costs. 

* * * * * 

(c) * * * Recipients and 

subrecipients may be reimbursed for 

eligible pre-award costs for activities 

directly related to the development of 

the project or planning proposal. * * * 

■ 31. Amend § 206.440 by revising the 

introductory text and paragraphs (a), (b) 

paragraph heading, (c) paragraph 

heading, (c)(2) and (3), (d), and (e)(3) to 

read as follows: 

§ 206.440 Appeals. 

An eligible applicant, subrecipient, or 

recipient may appeal any determination 

previously made related to an 

application for or the provision of 

Federal assistance according to the 

procedures in this section. 

(a) Format and content. The applicant 

or recipient will make the appeal in 

writing through the recipient to the 

Regional Administrator. The recipientwill review and evaluate all 

subrecipient appeals before submission 

to the Regional Administrator. The 

recipient may make recipient-related 

appeals to the Regional Administrator. 

The appeal must contain documented 

justification supporting the appellant’s 

position, specifying the monetary figure 

in dispute and the provisions in Federal 

law, regulation, or policy with which 

the appellant believes the initial action 

was inconsistent. 

* * * * * 

(b) Levels of appeal. * * * 

(c) Time limits. * * * 

(2) The recipient will review and 

forward appeals from an applicant or 

subrecipient, with a written 

recommendation, to the Regional 

Administrator within 60 days of receipt. 

(3) Within 90 days following receipt 

of an appeal, the Regional Administrator 

(for first appeals) or Assistant 

Administrator for the Mitigation 

Directorate (for second appeals) will 

notify the recipient in writing of the 

disposition of the appeal or of the need 

for additional information. A request by 

the Regional Administrator or Assistant 

Administrator for the Mitigation 

Directorate for additional information 

will include a date by which the 

information must be provided. Within 

90 days following the receipt of the 

requested additional information or 

following expiration of the period for 

providing the information, the Regional 

Administrator or Assistant 

Administrator for the Mitigation 

Directorate will notify the recipient in 

writing of the disposition of the appeal. 

If the decision is to grant the appeal, the 

Regional Administrator will take 

appropriate implementing action. 

(d) Technical advice. In appeals 

involving highly technical issues, the 

Regional Administrator or Assistant 

Administrator for the Mitigation 

Directorate may, at his or her discretion, 

submit the appeal to an independent 

scientific or technical person or group 

having expertise in the subject matter of 

the appeal for advice or 

recommendation. The period for this 

technical review may be in addition to 

other allotted time periods. Within 90 

days of receipt of the report, the 

Regional Administrator or Assistant 

Administrator for the Mitigation 

Directorate will notify the recipient in 

writing of the disposition of the appeal. 

(e) * * * 

(3) The decision of the FEMA official 

at the next higher appeal level will be 

the final administrative decision of 

FEMA. 

Deanne B. Criswell, 

Administrator, Federal Emergency 

Management Agency. 

[FR Doc. 2021–19186 Filed 9–9–21; 8:45 am] 

BILLING CODE 9110–11–P 

FEDERAL MARITIME COMMISSION 

46 CFR Part 501 

[Docket No. 21–07] 

RIN 3027–AC88 

Internal Commission Organization and 

Delegations of Authority 

AGENCY: Federal Maritime Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Maritime 

Commission (Commission) amends its 

rules governing the Commission’s 

organization and the delegation and 

redelegation of authorities. These 

regulatory changes also reflect the 

implementation of the Commission’s 

Agency Reform and Long-Term 

Workforce Plan. 

DATES: This final rule is effective 

September 10, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Rachel E. Dickon, Secretary. Phone: 

(202) 523–5725. Email: secretary@

fmc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Final Rule 

Part 501 describes the basic statutory 

requirements of the Commission, the 

internal structure of the Commission, 

the functions of the Commission’s 

organizational component offices, and 

outlines the delegation of the 

Commission’s duties and authorities to 

these offices. The final rule reflects 

changes made as part of the 

Commission’s Agency Reform and LongTerm Workforce Plan, developed under 

the guidance of Office of Management 

and Budget Memorandum 17–22, 

Comprehensive Plan for Reforming the 

Federal Government and Reducing the 

Federal Civilian Workforce,1 as well as 

subsequent organizational changes. The 

Commission is amending its rules at 46 

CFR part 501 to reflect the realignment 

of various offices and the elimination of 

certain positions, clarify the authority of 

office heads to delegate duties in their 

absence, and eliminate or modify 

certain out-of-date provisions. 

In addition to making necessary 

updates to part 501, the final rule 

streamlines the information provided in 

part 501, removing certain information 

that the Commission will instead 

publish on its website or that is 

currently provided in other parts of the 

Code of Federal Regulations. The chart 

below describes the existing sections in 

part 501 and the nature of the changes 

made in the final rule. 

Section Summary of existing section Changes made in this final rule 

501.1 .................. Purpose of part 501 ................................................................. Retain in part 501 and revise to reflect the changes below. 

501.2 .................. Lists the Commission’s statutory functions and describes the 

terms, appointment, and regulations that apply to the Commissioners.

Retain in part 501 and update. 


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50680 Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 

Section Summary of existing section Changes made in this final rule 

501.3 .................. Discusses outline of the FMC’s organizational components 

and references the organizational chart in appendix A.

Retain in part 501 and revise to include brief description of 

each organizational component and reference the FMC 

website. 

501.4 .................. Provides the lines of responsibility and the offices/components that report to the Chairman, the Commission, and 

the Office of the Managing Director.

Remove from part 501 and provide this information via the 

organizational chart on the Commission website. 

501.5 .................. Provides detailed descriptions of the functions of each organizational component and includes cross references to part 

501, subpart C (delegations of authority).

Remove from part 501 and streamline the descriptions of the 

functions of the organizational components in § 501.3. 

501.11 ................ Description of the official seal .................................................. Remove from part 501 and publish on the Commission’s 

website. 

501.21 ................ Identifies the authority upon which the FMC may delegate its 

authority within the FMC. Provides general delegations of 

authority and rules relating to such delegations.

Retain in part 501 and update. 

501.23–.27 ......... Contains specific delegations of authority to the General 

Counsel, the Secretary, Managing Director, Director of the 

Bureau of Certification and Licensing, and the Director of 

the Bureau of Trade Analysis.

Retain delegations in part 501 and revise. 

501.41 ................ Provides procedures related to how the public may secure 

and request information.

Remove from part 501 because part 503 provides information on how to file an information request. 

Appendix A ......... Organizational Chart ................................................................ Remove from part 501 and continue to publish on the Commission’s website. 

Because the changes made in this 

proceeding reflect changes made to the 

internal procedure and organization of 

the Commission, and are routine and 

administrative, this rule is published as 

final. See 5 U.S.C. 553(b)(A) (excluding 

rules of agency organization, procedure, 

and practice from the notice and 

comment requirements of the 

Administrative Procedure Act). 

II. Rulemaking Analyses and Notices 

Congressional Review Act 

The final rule is not a ‘‘rule’’ as 

defined by the Congressional Review 

Act (CRA), codified at 5 U.S.C. 801 et 

seq., and is not subject to the provisions 

of the CRA. The CRA adopts the 

Administrative Procedure Act’s 

definition of a ‘‘rule’’ in 5 U.S.C. 551, 

subject to certain exclusions. See 5 

U.S.C. 804(3). In particular, the CRA 

does not apply to rules relating to 

agency management and personnel and 

rules of agency organization, procedure, 

and practice that do not substantially 

affect the rights or obligations of nonagency parties. Id. This final rule relates 

to agency management and personnel as 

well as agency organization, procedures, 

and practices. Specifically, the final rule 

reflects changes to the internal 

management structure of the 

Commission, the elimination and 

addition of certain positions, and 

updates to out-of-date provisions 

regarding the Commission’s internal 

organization. Neither the regulated 

community nor the public are 

substantially affected by these internal 

organizational changes. Therefore, the 

final rule is not a ‘‘rule’’ under the CRA 

and is not subject to the CRA’s 

requirements. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(codified as amended at 5 U.S.C. 601– 

612) provides that whenever an agency 

promulgates a final rule after being 

required to publish a notice of proposed 

rulemaking under the Administrative 

Procedure Act (APA) (5 U.S.C. 553), the 

agency must prepare and make available 

for public comment a final regulatory 

flexibility analysis (FRFA) describing 

the impact of the rule on small entities. 

5 U.S.C. 604. An agency is not required 

to publish a FRFA, however, for the 

following types of rules, which are 

excluded from the APA’s notice-andcomment requirement: Interpretive 

rules; general statements of policy; rules 

of agency organization, procedure, or 

practice; and rules for which the agency 

for good cause finds that notice and 

comment is impracticable, unnecessary, 

or contrary to public interest. See 5 

U.S.C. 553(b). As explained above, this 

final rule is a rule of agency 

organization, procedure, or practice. 

Therefore, the APA does not require 

publication of a notice of proposed 

rulemaking in this instance, and the 

Commission is not required to prepare 

a FRFA. 

National Environmental Policy Act 

The Commission’s regulations 

categorically exclude certain 

rulemakings from any requirement to 

prepare an environmental assessment or 

an environmental impact statement 

because they do not increase or decrease 

air, water, or noise pollution or the use 

of fossil fuels, recyclables, or energy. 46 

CFR 504.4. This final rule makes 

changes to the Commission’s internal 

organization and management structure, 

and thus falls within the categorical 

exclusion for matters related to 

Commission personnel. See 46 CFR 

504.4(a)(28). Therefore, no 

environmental assessment or 

environmental impact statement is 

required. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) requires an 

agency to seek and receive approval 

from the Office of Management and 

Budget (OMB) before collecting 

information from the public. 44 U.S.C. 

3507. The agency must submit 

collections of information in rules to 

OMB in conjunction with the 

publication of the notice of proposed 

rulemaking. 5 CFR 1320.11. This final 

rule does not contain any collections of 

information, as defined by 44 U.S.C. 

3502(3) and 5 CFR 1320.3(c). 

Effective Date 

The Administrative Procedure Act 

generally requires that a rule may not go 

into effect earlier than 30 days after 

publication in the Federal Register, 

unless an agency finds good cause for 

prescribing an earlier effective date. See 

5 U.S.C. 553(c)(3). As described above, 

the final rule reflects internal 

organizational changes that have already 

been made as part of the of the 

Commission’s Agency Reform and LongTerm Workforce Plan, and these 

changes do not materially affect 

regulated entities or the public. 

Accordingly, a delayed effective date is 

unnecessary, and the Commission finds 

that good cause exists for this rule to go 

into effect immediately upon 

publication in the Federal Register. 


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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 50681 

Executive Order 12988 (Civil Justice 

Reform) 

This rule meets the applicable 

standards in E.O. 12988 titled, ‘‘Civil 

Justice Reform,’’ to minimize litigation, 

eliminate ambiguity, and reduce 

burden. Section 3(b) of E.O. 12988 

requires agencies to make every 

reasonable effort to ensure that each 

new regulation: (1) Clearly specifies the 

preemptive effect; (2) clearly specifies 

the effect on existing Federal law or 

regulation; (3) provides a clear legal 

standard for affected conduct, while 

promoting simplification and burden 

reduction; (4) clearly specifies the 

retroactive effect, if any; (5) adequately 

defines key terms; and (6) addresses 

other important issues affecting clarity 

and general draftsmanship under any 

guidelines issued by the Attorney 

General. This document is consistent 

with that requirement. 

Regulation Identifier Number 

The Commission assigns a regulation 

identifier number (RIN) to each 

regulatory action listed in the Unified 

Agenda of Federal Regulatory and 

Deregulatory Actions (Unified Agenda). 

The Regulatory Information Service 

Center publishes the Unified Agenda in 

April and October of each year. You 

may use the RIN contained in the 

heading of this document to find this 

action in the Unified Agenda, available 

at http://www.reginfo.gov/public/do/ 

eAgendaMain. 

List of Subjects in 46 CFR Part 501 

Authority delegations, Commission 

organization and functions. 

■ For the reasons stated in the preamble, 

the Commission revises 46 CFR part 501 

to read as follows: 

PART 501—THE FEDERAL MARITIME 

COMMISSION—GENERAL 

Subpart A—Organization and Functions 

Sec. 

501.1 Purpose. 

501.2 General. 

501.3 The Commission’s organizational 

components and their functions. 

Subpart B—Delegation and Redelegation of 

Authorities 

501.11 Delegation of authorities. 

501.12 Delegation to the General Counsel. 

501.13 Delegation to the Secretary. 

501.14 Delegation to and redelegation by 

the Managing Director. 

501.15 Delegation to the Chief Financial 

Officer. 

501.16 Delegation to and redelegation by 

the Director, Bureau of Certification and 

Licensing. 

501.17 Delegation to and redelegation by 

the Director, Bureau of Trade Analysis. 

Authority: 5 U.S.C. 551–557, 571–584, 

701–706, 2903, and 6304; 31 U.S.C. 3721; 41 

U.S.C. 414 and 418; 44 U.S.C. 501–520 and 

3501–3520; 46 U.S.C. 40101–41309, 42101– 

42109, 44101–44106, and 46101–46108; 5 

CFR part 2638. 

Subpart A—Organization and 

Functions 

§ 501.1 Purpose. 

This part describes the organization, 

functions, and the delegation of 

authority within, the Federal Maritime 

Commission (‘‘Commission’’). 

§ 501.2 General. 

(a) Statutory functions. The 

Commission regulates common carriers 

by water and other persons involved in 

the oceanborne foreign commerce of the 

United States under provisions of title 

46, subtitle IV of the United States Code 

and other applicable statutes. 

(b) Establishment and composition of 

the Commission. The Commission was 

established as an independent agency 

by Reorganization Plan No. 7 of 1961, 

effective August 12, 1961, and is 

composed of five Commissioners 

(‘‘Commissioners’’ or ‘‘members’’), 

appointed by the President, by and with 

the advice and consent of the Senate. 

Not more than three Commissioners 

may be appointed from the same 

political party. The President designates 

one of the Commissioners to serve as the 

Chairman of the Commission 

(‘‘Chairman’’). 

(c) Terms and vacancies—(1) Length 

of terms. The term of each member of 

the Commission is five years and begins 

when the term of the predecessor of that 

member ends (i.e., on June 30 of each 

successive year). 

(2) Removal. The President may 

remove a Commissioner for inefficiency, 

neglect of duty, or malfeasance in office. 

(3) Vacancies. A vacancy in the office 

of any Commissioner is filled in the 

same manner as the original 

appointment. An individual appointed 

to fill a vacancy is appointed only for 

the unexpired term of the individual 

being succeeded. 

(4) Term limits—(i) Commissioners 

initially appointed and confirmed 

before December 18, 2014. When a 

Commissioner’s term ends, the 

Commissioner may continue to serve 

until a successor is appointed and 

qualified. 

(ii) Commissioners initially appointed 

and confirmed on or after December 18, 

2014. (A) When a Commissioner’s term 

ends, the Commissioner may continue 

to serve until a successor is appointed 

and qualified, limited to a period not to 

exceed one year. 

(B) No individual may serve more 

than two terms, except that an 

individual appointed to fill a vacancy 

may serve two terms in addition to the 

remainder of the term for which the 

predecessor of that individual was 

appointed. 

(d) Quorum. A vacancy or vacancies 

in the Commission shall not impair the 

power of the Commission to execute its 

functions. The affirmative vote of a 

majority of the members of the 

Commission is required to dispose of 

any matter before the Commission. For 

purposes of holding a formal meeting 

for the transaction of the business of the 

Commission, the actual presence of two 

Commissioners shall be sufficient. 

Proxy votes of absent members shall be 

permitted. 

(e) Meetings; records; rules and 

regulations. The Commission shall, 

through its Secretary, keep a true record 

of all its meetings and the yea-and-nay 

votes taken therein on every action and 

order approved or disapproved by the 

Commission. In addition to or in aid of 

its functions, the Commission adopts 

rules and regulations in regard to its 

powers, duties, and functions under the 

shipping statutes it administers. 

§ 501.3 The Commission’s organizational 

components and their functions. 

(a) Office of the Chairman of the 

Federal Maritime Commission—(1) 

General. The Chairman is the chief 

executive and administrative officer of 

the Commission. In addition, the 

Chairman, as ‘‘head of the agency,’’ has 

certain responsibilities under Federal 

laws and directives not specifically 

related to shipping. 

(2) Management and supervision. The 

Chairman provides management 

direction to the Office of Equal 

Employment Opportunity, Office of the 

Secretary, Office of the General Counsel, 

Office of the Administrative Law Judges, 

and Office of the Managing Director. 

Subject to the approval of the 

Commission, the Chairman appoints the 

heads of the major organizational units, 

which include the Office of the 

Secretary, Office of the General Counsel, 

Office of the Administrative Law Judges, 

Office of the Managing Director, Bureau 

of Trade Analysis, Bureau of 

Certification and Licensing, Bureau of 

Enforcement, and Office of Consumer 

Affairs and Dispute Resolution Services. 

The Chairman appoints or designates 

and oversees the Director, Office of 

Equal Employment Opportunity, who 

advises and assists the Chairman, the 

Commissioners, and other principal 

officers of the Commission in carrying 

out their responsibilities relative to 

Titles VI and VII of the Civil Rights Act 


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50682 Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 

of 1964 (as amended), other laws, 

Executive orders, and regulatory 

guidelines affecting affirmative 

employment and the processing of equal 

employment opportunity (EEO) 

complaints. 

(b) Commissioners. The members of 

the Commission, including the 

Chairman, implement various shipping 

statutes and related directives by 

rendering decisions, issuing orders, and 

adopting and enforcing rules and 

regulations governing persons subject to 

the shipping statutes. 

(1) The Office of Inspector General 

(OIG) reports to and is under the general 

supervision of the Commissioners. The 

OIG is an independent and objective 

oversight office created within the 

Commission that conducts audits and 

investigations relating to the programs 

and operations of the Commission and 

recommends policies designed to 

promote economy, efficiency, and 

effectiveness in the administration of, 

and to prevent and detect waste, fraud, 

and abuse in, such programs and 

operations. 

(2) [Reserved] 

(c) Office of the Secretary. The Office 

of the Secretary is responsible for the 

preparation, maintenance and 

disposition of the Commission’s official 

files and records; overseeing the 

Commission’s website; and managing 

the Commission’s library and related 

services. The Office of the Secretary also 

administers the Commission’s Freedom 

of Information Act, Privacy Act, and 

Government in the Sunshine Act 

responsibilities, with the Secretary 

serving as the Freedom of Information 

Act and Privacy Act Officer. 

(d) Office of the General Counsel—(1) 

General. The Office of the General 

Counsel provides legal services to the 

Commission and to the Commission 

staff, and manages the Commission’s 

international affairs functions. 

(2) Designated Agency Ethics Official. 

The Designated Agency Ethics Official 

and Alternate are agency employees in 

the Office of the General Counsel 

formally designated to coordinate and 

manage the ethics program and serve as 

the Commission’s designee(s) to the 

Office of Government Ethics on such 

matters. 

(e) Office of Administrative Law 

Judges. The Office of Administrative 

Law Judges holds hearings and renders 

initial decisions in adjudicatory 

proceedings as provided in 46 U.S.C. 

chapters 401–413 and 441 and other 

applicable laws, and other matters 

assigned by the Commission, in 

accordance with the Administrative 

Procedure Act and the Commission’s 

Rules of Practice and Procedure in part 

502 of this chapter. 

(f) Office of the Managing Director— 

(1) General duties of the Managing 

Director—(i) Chief Operating Officer. 

The Managing Director is responsible to 

the Chairman for the management and 

coordination of Commission programs 

managed by the Director of Enterprise 

Services; Office of Budget and Finance; 

Office of Consumer Affairs and Dispute 

Resolution Services; Office of Human 

Resources; Office of Information 

Technology; Office of Management 

Services; Bureau of Certification and 

Licensing; Bureau of Trade Analysis; 

Bureau of Enforcement; and the 

Commission’s Area Representatives, as 

more fully described in paragraphs (f)(2) 

and (3) of this section, and thereby 

implements the regulatory policies of 

the Commission and the administrative 

policies and directives of the Chairman. 

(ii) Administrative direction. The 

Managing Director provides 

administrative direction to all 

organizational components, except for 

the OIG. 

(2) General duties. The Office of the 

Managing Director interprets and 

administers governmental policies and 

programs in a manner consistent with 

Federal guidelines, including those 

involving financial management, human 

resources, information technology, and 

procurement. The Office of the 

Managing Director is responsible for 

directing and administering the 

Commission’s training and development 

function. 

(3) Management and supervision. 

Other officers and offices under the 

management direction of the Managing 

Director are as follows: 

(i) Director, Enterprise Services. The 

Director, Enterprise Services (D/ES) is 

the Commission’s Chief Financial 

Officer (CFO) and has responsibility for 

internal and external communications 

relating to the budget and financial 

management. The D/ES works with the 

Directors, Office of Budget and Finance, 

Office of Human Resources, Office of 

Information Technology, and Office of 

Management Services, to manage the 

day-to-day administrative operations of 

the Commission. 

(ii) Office of Budget and Finance. The 

Office of Budget and Finance 

administers the Commission’s financial 

management program, including fiscal 

accounting activities, fee and forfeiture 

collections, and payments, and ensures 

that Commission obligations and 

expenditures of appropriated funds are 

proper. 

(iii) Office of Consumer Affairs and 

Dispute Resolution Services. The Office 

of Consumer Affairs and Dispute 

Resolution Services has responsibility 

for developing and implementing the 

Alternative Dispute Resolution Program, 

responds to consumer inquiries and 

complaints, and coordinates the 

Commission’s efforts to resolve disputes 

within the shipping industry. The Office 

reviews existing and proposed 

legislation and regulations for impact on 

the shipping industry and its consumers 

and recommends appropriate policies 

and regulations to facilitate trade. 

(iv) Office of Human Resources. The 

Office of Human Resources plans and 

administers a complete personnel 

management program. 

(v) Office of Information Technology. 

The Office of Information Technology 

administers the Commission’s 

information technology (‘‘IT’’) program 

under the Paperwork Reduction Act of 

1995, as amended, as well as other 

applicable laws that prescribe 

responsibility for operating the IT 

program. 

(vi) Office of Management Services. 

The Office of Management Services 

administers a variety of management 

support service functions of the 

Commission. 

(vii) Bureau of Certification and 

Licensing. The Bureau of Certification 

and Licensing, through the Office of 

Transportation Intermediaries, has 

responsibility for reviewing applications 

and triennial renewals for Ocean 

Transportation Intermediary (‘‘OTI’’) 

licenses, and maintaining records about 

licensees and registrations, managing all 

activities with respect to evidence of 

financial responsibility for OTIs, and for 

developing and maintaining all Bureau 

databases and records of OTI applicants, 

licensees, and registrations. In addition, 

the Bureau of Certification and 

Licensing has responsibility for 

reviewing applications and renewals for 

certificates of financial responsibility 

with respect to passenger vessels, 

reviewing requests for substitution of 

alternative forms of financial protection, 

managing all activities with respect to 

evidence of financial responsibility for 

passenger vessel owner/operators, and 

for developing and maintaining all 

Bureau databases and records of 

passenger vessel owner/operators. 

(viii) Bureau of Trade Analysis. The 

Bureau of Trade Analysis reviews 

agreements and monitors the concerted 

activities of ocean common carriers and 

marine terminal operators, reviews and 

analyzes service contracts, monitors 

rates of government-controlled carriers, 

reviews carrier published tariff systems, 

responds to inquiries or issues that arise 

concerning service contracts or tariffs, 

and is responsible for competition 

oversight and market analysis. 


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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations 50683 

(ix) Bureau of Enforcement. The 

Bureau of Enforcement conducts 

investigations and recommends 

enforcement action, and provides legal 

support related to enforcement to other 

Commission offices. The Bureau of 

Enforcement also: Participates as trial 

counsel in formal Commission 

proceedings when designated by 

Commission order, or when 

intervention is granted; negotiates 

informal compromises of civil penalties 

subject to the prior approval of the 

Commission; prepares and presents 

compromise agreements for Commission 

approval; and represents the 

Commission in proceedings and 

circumstances as designated. 

(x) Area Representatives. Area 

Representatives represent the 

Commission within their respective 

geographic area; act as a liaison between 

the Commission and interested parties 

such as members of the shipping 

industry, state and local governments, 

and members of the public; furnish to 

interested persons information, advice, 

and access to Commission public 

documents; receive and resolve informal 

complaints, in coordination with the 

Director, Office of Consumer Affairs and 

Dispute Resolution Services; investigate 

potential violations of the shipping 

statutes and the Commission’s 

regulations; and provide assistance to 

the various bureaus and offices of the 

Commission, as appropriate and when 

requested. 

Subpart B—Delegation and 

Redelegation of Authorities 

§ 501.11 Delegation of authorities. 

(a) Authority and delegation. The 

provision at 46 U.S.C. 46106 authorizes 

the Commission to delegate, by 

published order or rule, any of its 

functions to a division of the 

Commission, an individual 

Commissioner, an administrative law 

judge, or an employee or employee 

board, including functions with respect 

to hearing, determining, ordering, 

certifying, reporting, or otherwise acting 

as to any work, business, or matter. The 

Commission delegates specific 

authorities to the delegatees designated 

in §§ 501.12 through 501.17, subject to 

the limitations prescribed in this 

section. 

(b) Temporary redelegation. When the 

head of a bureau or office is absent or 

incapacitated, they may temporarily 

redelegate their authorities to 

subordinate personnel under their 

supervision and direction or to another 

bureau or office head for the period of 

their absence or incapacitation. 

(c) Redelegation. Other than 

temporary redelegations under 

paragraph (b) of this section, and subject 

to the limitations in this section, the 

delegatees may redelegate their 

authorities to subordinate personnel 

under their supervision and direction 

only if this subpart is amended to reflect 

such redelegation and notice thereof is 

published in the Federal Register. 

(d) Exercise of authority; policy and 

procedure. The delegatees and 

redelegatees shall exercise the 

authorities delegated or redelegated in a 

manner consistent with applicable laws 

and the established policies of the 

Commission, and shall consult with the 

General Counsel where appropriate. 

(e) Exercise of delegated authority by 

delegator. Under any authority 

delegated or redelegated, the delegator 

(Commission), or the redelegator, 

respectively, shall retain full rights to 

exercise the authority in the first 

instance. 

(f) Review of delegatee’s action. The 

delegator (Commission) or redelegator of 

authority shall retain a discretionary 

right to review an action taken under 

delegated authority by a subordinate 

delegatee, either upon the filing of a 

written petition of a party to, or an 

intervenor in, such action; or upon the 

delegator’s or redelegator’s own 

initiative. 

(1) Petition. Petitions for review of 

actions taken under delegated authority 

shall be filed within ten (10) calendar 

days of the action taken: 

(i) If the action for which review is 

sought is taken by a delegatee, the 

petition shall be addressed to the 

Commission pursuant to § 502.94 of this 

chapter. 

(ii) If the action for which review is 

sought is taken by a redelegatee, the 

petition shall be addressed to the 

redelegator whose decision can be 

further reviewed by the Commission 

under paragraph (f)(1)(i) of this section, 

unless the Commission decides to 

review the matter directly, such as, for 

example, if the redelegator is 

incapacitated. 

(2) Discretionary review. The vote of 

a majority of the Commission less one 

member (e.g., two Commissioners if 

there are a total of four or five sitting 

Commissioners; one Commissioner if 

there are a total of three or fewer sitting 

Commissioners) shall be sufficient to 

bring any delegated action before the 

Commission for review under this 

paragraph (f). 

(g) Action—when final. Should the 

right to exercise discretionary review be 

declined or should no such review be 

sought under paragraph (f) of this 

section, then the action taken under 

delegated authority shall, for all 

purposes, including appeal or review 

thereof, be deemed to be the action of 

the Commission. 

(h) Conflicts. Where the procedures 

set forth in this section conflict with law 

or any regulation of this chapter, the 

conflict shall be resolved in favor of the 

law or other regulation. 

§ 501.12 Delegation to the General 

Counsel. 

(a) Authority to classify carriers 

within the meaning of 46 U.S.C. 

40102(9) except where a carrier submits 

a rebuttal statement pursuant to 

§ 565.3(b) of this chapter. 

(b) Authority to review for legal 

sufficiency all adverse personnel 

actions, procurement activities, 

Freedom of Information Act matters, 

Privacy Act matters, and requests for 

testimony by employees and production 

of official records in litigation and other 

administrative actions, pursuant to part 

503, subpart E, of this chapter. 

§ 501.13 Delegation to the Secretary. 

(a) Authority to approve applications 

for permission to practice before the 

Commission and to issue admission 

certificates to approved applicants. 

(b) Authority to extend the time to file 

exceptions or replies to exceptions, and 

the time for Commission review, 

relative to initial decisions of 

administrative law judges and decisions 

of Special Dockets Officers. 

(c) Authority to extend the time to file 

appeals or replies to appeals, and the 

time for Commission review, relative to 

dismissals of proceedings, in whole or 

in part, issued by administrative law 

judges. 

(d) Authority to establish and extend 

or reduce the time: 

(1) To file documents either in 

docketed proceedings or relative to 

petitions filed under part 502 of this 

chapter, which are pending before the 

Commission itself; and 

(2) To issue initial and final decisions 

under § 502.61 of this chapter. 

(e) Authority to prescribe a time limit 

for the submission of written comments 

with reference to agreements filed 

pursuant to 46 U.S.C. chapter 403. 

(f) Authority, in appropriate cases, to 

publish in the Federal Register notices 

of intent to prepare an environmental 

assessment and notices of finding of no 

significant impact. 

(g) Authority to prescribe a time limit 

less than ten days from the date 

published in the Federal Register for 

filing comments on notices of intent to 

prepare an environmental assessment 

and notice of finding of no significant 

impact and authority to prepare 


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environmental assessments of no 

significant impact. 

§ 501.14 Delegation to and redelegation by 

the Managing Director. 

(a) Authority to adjudicate, with the 

concurrence of the General Counsel, and 

authorize payment of, employee claims 

for not more than $10,000.00, arising 

under the Military and Civilian 

Personnel Property Act of 1964 (31 

U.S.C. 3721) and the Federal Tort 

Claims Act (28 U.S.C. 1346(b), 2671– 

2680). 

(b) Authority to determine that an 

exigency of the public business is of 

such importance that annual leave may 

not be used by employees to avoid 

forfeiture before annual leave may be 

restored under 5 U.S.C. 6304. 

(c)(1) Authority to classify all 

positions GS–1 through GS–15 and 

wage grade positions. 

(2) The authority under paragraph 

(c)(1) of this section is redelegated to the 

Director, Office of Human Resources. 

§ 501.15 Delegation to the Chief Financial 

Officer. 

(a) Authority to approve, certify, or 

otherwise authorize those actions 

dealing with appropriations of funds 

made available to the Commission 

including allotments, fiscal matters, and 

contracts relating to the operation of the 

Commission within the laws, rules, and 

regulations set forth by the Federal 

Government. 

(b) Authority, in the absence or 

preoccupation of the Managing Director, 

to sign travel orders, non-docketed 

recommendations to the Commission, 

and other routine documents for the 

Managing Director, consistent with the 

programs, policies, and precedents 

established by the Commission or the 

Managing Director. 

§ 501.16 Delegation to and redelegation by 

the Director, Bureau of Certification and 

Licensing. 

(a) In relation to OTI licenses: 

(1) Authority to approve or 

disapprove applications for OTI 

licenses; issue or reissue or transfer 

such licenses; and approve extensions 

of time in which to furnish the name(s) 

and ocean transportation intermediary 

experience of the managing partner(s) or 

officer(s) who will replace the 

qualifying partner or officer upon whose 

qualifications the original licensing was 

approved; 

(2) Authority to issue a letter stating 

that the Commission intends to deny an 

OTI application unless, within 20 days, 

applicant requests a hearing to show 

that denial of the application is 

unwarranted; deny applications where 

an applicant has received such a letter 

and has not requested a hearing within 

the notice period; and rescind, or grant 

extensions of, the time specified in such 

letters; 

(3) Authority to revoke the license of 

an OTI upon the request of the licensee; 

(4) Authority to, upon receipt of 

notice of cancellation of any instrument 

evidencing financial responsibility, 

notify the licensee in writing that its 

license will automatically be suspended 

or revoked, effective on the cancellation 

date of such instrument, unless new or 

reinstated evidence of financial 

responsibility is submitted and 

approved prior to such date, and 

subsequently order such suspension or 

revocation for failure to maintain proof 

of financial responsibility; 

(5) Authority to revoke the ocean 

transportation intermediary license of a 

non-vessel-operating common carrier 

not in the United States for failure to 

designate and maintain a person in the 

United States as legal agent for the 

receipt of judicial and administrative 

process; 

(6) Authority to approve changes in 

an existing licensee’s organization; and 

(7) Authority to return any 

application which on its face fails to 

meet the requirements of the 

Commission’s regulations, accompanied 

by an explanation of the reasons for 

rejection. 

(8) The authorities contained in 

paragraphs (a)(3) and (4) of this section 

are redelegated to the Director, 

Transportation Intermediaries, in the 

Bureau of Certification and Licensing. 

(b) In relation to Certificates: 

(1) Authority to approve applications 

for Certificates (Performance) and 

Certificates (Casualty) for passenger 

vessels, evidenced by a surety bond, 

guaranty, escrow agreements, or 

insurance policy, or combination 

thereof; and issue, reissue, or amend 

such Certificates; 

(2) Authority to issue a written notice 

to an applicant stating intent to deny an 

application for a Certificate 

(Performance) and/or (Casualty), 

indicating the reason therefor, and 

advising applicant of the time for 

requesting a hearing as provided for 

under § 540.8(c) or § 540.26(c) of this 

chapter; deny any application where the 

applicant has not submitted a timely 

request for a hearing; and rescind such 

notices and grant extensions of the time 

within which a request for hearing may 

be filed; 

(3) Authority to issue a written notice 

to a certificant stating that the 

Commission intends to revoke, suspend, 

or modify a Certificate (Performance) 

and/or (Casualty), indicating the reason 

therefor, and advising of the time for 

requesting a hearing as provided for 

under § 540.8(c) or § 540.26(c) of this 

chapter; revoke, suspend or modify a 

Certificate (Performance) and/or 

(Casualty) where the certificant has not 

submitted a timely request for hearing; 

and rescind such notices and grant 

extensions of time within which a 

request for hearing may be filed; 

(4) Authority to revoke a Certificate 

(Performance) and/or (Casualty) which 

has expired, and/or upon request of, or 

acquiescence by, the certificant; and 

(5) Authority to notify a certificant 

when a Certificate (Performance) and/or 

(Casualty) has become null and void in 

accordance with §§ 540.8(a) and 

540.26(a) of this chapter. 

(c) Authority to approve amendments 

to escrow agreements filed under 

§ 540.5(b) of this chapter when such 

amendments are for the purpose of 

changing names of principals, changing 

the vessels covered by the escrow 

agreement, changing the escrow agent, 

and changing the amount of funds held 

in escrow, provided that the changes in 

amount of funds result in an amount of 

coverage that complies with the 

requirements in the introductory text of 

§ 540.5 of this chapter. 

(d) Authority to grant requests to 

substitute alternative financial 

responsibility pursuant to § 540.9(l) of 

this chapter based upon existing 

protection available to purchases of 

passenger vessel transportation by credit 

card by an amount up to fifty (50) 

percent of the passenger vessel 

operator’s highest two-year unearned 

passenger revenues. 

§ 501.17 Delegation to and redelegation by 

the Director, Bureau of Trade Analysis. 

(a) Authority to determine that no 

action should be taken to prevent an 

agreement or modification to an 

agreement from becoming effective 

under 46 U.S.C. 40304(c), and to shorten 

the review period under 46 U.S.C. 

40304(c)(1) and (e)(1), when the 

agreement or modification involves 

solely a restatement, clarification, or 

change in an agreement which adds no 

new substantive authority beyond that 

already contained in an effective 

agreement. This category of agreement 

or modification includes, for example, 

the following: A restatement filed to 

conform an agreement to the format and 

organization requirements of part 535 of 

this chapter; a clarification to reflect a 

change in the name of a country or port 

or a change in the name of a party to the 

agreement; a correction of typographical 

or grammatical errors in the text of an 

agreement; a change in the title of 

persons or committees designated in an 

agreement; or a transfer of functions 


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from one person or committee to 

another. 

(b) Authority to grant or deny 

applications filed under § 535.407 of 

this chapter for waiver of the form, 

organization, and content requirements 

of §§ 535.401 through 535.406 of this 

chapter. 

(c) Authority to grant or deny 

applications filed under § 535.504 of 

this chapter for waiver of the 

Information Form requirements in 

subpart E of part 535 of this chapter. 

(d) Authority to grant or deny 

applications filed under § 535.705 of 

this chapter for waiver of the reporting 

requirements in subpart G of part 535 of 

this chapter. 

(e) Authority to determine that no 

action should be taken to prevent an 

agreement or modification of an 

agreement from becoming effective 

under 46 U.S.C. 40304(c)(1) for all 

unopposed agreements and 

modifications to agreements which will 

not result in a significant reduction in 

competition. Agreements which are 

deemed to have the potential to result 

in a significant reduction in competition 

and which, therefore, are not covered by 

the delegation in this paragraph (e) 

include but are not limited to: 

(1) New agreements authorizing the 

parties to collectively discuss or fix 

rates (including terminal rates). 

(2) New agreements authorizing the 

parties to pool cargoes or revenues. 

(3) New agreements authorizing the 

parties to establish a joint service or 

consortium. 

(4) New equal access agreements. 

(f) Authority to grant or deny 

shortened review pursuant to § 535.605 

of this chapter for agreements for which 

authority is delegated in paragraph (e) of 

this section. 

(g) Subject to review by the General 

Counsel, authority to deny, but not 

approve, requests filed pursuant to 

§ 535.605 of this chapter for a shortened 

review period for agreements for which 

authority is not delegated under 

paragraph (e) of this section. 

(h) Authority to issue notices of 

termination of agreements which are 

otherwise effective under the Shipping 

Act of 1984, after publication of notice 

of intent to terminate in the Federal 

Register, when such terminations are: 

(1) Requested by the parties to the 

agreement; 

(2) Deemed to have occurred when it 

is determined that the parties are no 

longer engaged in activity under the 

agreement and official inquiries and 

correspondence cannot be delivered to 

the parties; or 

(3) Deemed to have occurred by 

notification of the withdrawal of the 

next to last party to an agreement 

without notification of the addition of 

another party prior to the effective date 

of the next to last party’s withdrawal. 

(i) Authority to determine whether 

agreements for the use or operation of 

terminal property or facilities, or the 

furnishing of terminal services, are 

within the purview of 46 U.S.C. chapter 

403. 

(j) Authority to request controlled 

carriers to file justifications for existing 

or proposed rates, charges, 

classifications, rules, or regulations, and 

to review responses to such requests for 

the purpose of recommending to the 

Commission that a rate, charge, 

classification, rule, or regulation be 

found unlawful and, therefore, requires 

Commission action under 46 U.S.C. 

40704(b)–(e). 

(k) Authority to recommend to the 

Commission the initiation of formal 

proceedings or other actions with 

respect to suspected violations of the 

shipping statutes and rules and 

regulations of the Commission. 

(l)(1) Authority to approve for good 

cause or disapprove special permission 

applications submitted by common 

carriers, or conferences of such carriers, 

subject to 46 U.S.C. chapter 405, for 

relief from statutory and/or Commission 

tariff requirements. 

(2) The authority under this paragraph 

(l) is redelegated to the Director of 

Agreements, Service Contracts, and 

Tariffs, in the Bureau of Trade Analysis. 

(m)(1) Authority to approve or 

disapprove special permission 

applications submitted by a controlled 

carrier subject to the provisions of 46 

U.S.C. chapter 407 for relief from 

statutory and/or Commission tariff 

requirements. 

(2) The authority under this paragraph 

(m) is redelegated to the Director of 

Agreements, Service Contracts, and 

Tariffs, in the Bureau of Trade Analysis. 

(n)(1) The authority to accept, deny, 

or deactivate a Form FMC–1 submitted 

by ocean common carriers, non-vesseloperating common carriers, conferences, 

and marine terminal operators under 

parts 520 and 525 of this chapter. 

(2) The authority under this paragraph 

(n) is redelegated to the Director of 

Agreements, Service Contracts, and 

Tariffs, in the Bureau of Trade Analysis. 

(o) Authority contained in part 530 of 

this chapter to approve, but not deny, 

requests for permission to correct 

clerical or administrative errors in the 

essential terms of filed service contracts. 

(p) Authority to require Monitoring 

Reports from, or prescribe alternative 

periodic reporting requirements for, 

parties to agreements under § 535.702(c) 

and (d) of this chapter. 

(q) Authority to require parties to 

agreements subject to the Monitoring 

Report requirements in § 535.702(a)(2) 

of this chapter to report their agreement 

commodity data on a sub-trade basis 

pursuant to § 535.703(d) of this chapter. 

By the Commission. 

Rachel E. Dickon, 

Secretary. 

[FR Doc. 2021–19078 Filed 9–9–21; 8:45 am] 

BILLING CODE 6730–02–P 


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