Updated Document Submission Process for Compliance With Electronic Records Mandate

<RULE> DEPARTMENT OF HOMELAND SECURITY <SUBAGY>Coast Guard</SUBAGY> <CFR>46 CFR Part 67</CFR> <DEPDOC>[Docket No. USCG-2023-0584]</DEPDOC> <RIN>RIN 1625-AC93</RIN> <SUBJECT>Updated Document Submission Process for Compliance With Electronic Records Mandate</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Coast Guard, DHS. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Coast Guard is issuing a final rule to update regulations that reflect the Coast Guard National Vessel Documentation Center's processes and capabilities, as well as align regulations with statutory reporting timelines. The processes noted pertain to electronic file submissions, requirements for submission of original build evidence, and return of existing Certificates of Documentation (CODs). In addition, the time period related to reporting changes to COD information is updated to align with statute. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This final rule is effective January 15, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> To view documents mentioned in this preamble as being available in the docket, go to <E T="03">www.regulations.gov,</E> type USCG-2023-0584 in the search box, and click “Search.” Next, in the Document Type column, select “Supporting & Related Material.” <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> For information about this document, call or email Mr. Ronald (Sam) Teague, Coast Guard National Vessel Documentation Center; telephone (304) 271-2506, email <E T="03">ronald.s.teague@uscg.mil</E> . </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents for Preamble</HD> <EXTRACT> <FP SOURCE="FP-2">I. Abbreviations</FP> <FP SOURCE="FP-2">II. Basis and Purpose, and Regulatory History</FP> <FP SOURCE="FP-2">III. Background and Discussion of Rule</FP> <FP SOURCE="FP-2">IV. Regulatory Analyses</FP> <FP SOURCE="FP1-2">A. Regulatory Planning and Review</FP> <FP SOURCE="FP1-2">B. Small Entities</FP> <FP SOURCE="FP1-2">C. Assistance for Small Entities</FP> <FP SOURCE="FP1-2">D. Collection of Information</FP> <FP SOURCE="FP1-2">E. Federalism</FP> <FP SOURCE="FP1-2">F. Administrative Procedure Act</FP> <FP SOURCE="FP1-2">G. Unfunded Mandates</FP> <FP SOURCE="FP1-2">H. Taking of Private Property</FP> <FP SOURCE="FP1-2">I. Civil Justice Reform</FP> <FP SOURCE="FP1-2">J. Protection of Children</FP> <FP SOURCE="FP1-2">K. Indian Tribal Governments</FP> <FP SOURCE="FP1-2">L. Energy Effects</FP> <FP SOURCE="FP1-2">M. Technical Standards</FP> <FP SOURCE="FP1-2">N. Environment</FP> </EXTRACT> <HD SOURCE="HD1">I. Abbreviations</HD> <EXTRACT> <FP SOURCE="FP-1">Builder's Certificate Builder's Certification and First Transfer of Title (form CG-1261)</FP> <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP> <FP SOURCE="FP-1">CGAA 2018 Frank LoBiondo Coast Guard Authorization Act of 2018</FP> <FP SOURCE="FP-1">COD Certificate of Documentation</FP> <FP SOURCE="FP-1">CY Calendar year</FP> <FP SOURCE="FP-1">DHS Department of Homeland Security</FP> <FP SOURCE="FP-1">Fax Facsimile</FP> <FP SOURCE="FP-1">FR Federal Register</FP> <FP SOURCE="FP-1">FTE Full-time equivalent</FP> <FP SOURCE="FP-1">GS General Schedule</FP> <FP SOURCE="FP-1">NARA National Archives and Records Administration</FP> <FP SOURCE="FP-1">NPRM Notice of proposed rulemaking</FP> <FP SOURCE="FP-1">NVDC U.S. Coast Guard National Vessel Documentation Center</FP> <FP SOURCE="FP-1">OMB Office of Management and Budget</FP> <FP SOURCE="FP-1">OPM Office of Personnel Management</FP> <FP SOURCE="FP-1">PDF Portable document format</FP> <FP SOURCE="FP-1">§ Section </FP> <FP SOURCE="FP-1">U.S.C. United States Code</FP> <FP SOURCE="FP-1">YoY Year-over-year</FP> <FP SOURCE="FP-1">YTD Year-to-date</FP> </EXTRACT> <HD SOURCE="HD1">II. Basis and Purpose, and Regulatory History</HD> Section 2103 of Title 46 of the United States Code (U.S.C.) gives the Secretary of the Department in which the Coast Guard is operating broad regulatory authority to carry out the provisions of 46 U.S.C. subtitle II (Vessels and Seamen), where vessel documentation provisions in 46 U.S.C. chapter 121 are located. The Secretary's authority is delegated to the Coast Guard by the Department of Homeland Security (DHS) Delegation No. 00170.1, Revision No. 01.4, paragraph II (92)(a). The Coast Guard did not publish a notice of proposed rulemaking (NPRM) before this rule. As explained in Section IV.F Administrative Procedure Act of this preamble, the Coast Guard finds that this rule is exempt from notice and comment as a procedural rule under 5 U.S.C. 553(b)(A) and for good cause under 5 U.S.C. 553(b)(B). <HD SOURCE="HD1">III. Background and Discussion of Rule</HD> In 2007, the Coast Guard amended vessel documentation regulations to eliminate the requirement to provide certain original documents to the U.S. Coast Guard National Vessel Documentation Center (NVDC) for recording and eliminated the additional fee for filing by facsimile (fax). <SU>1</SU> <FTREF/> Currently, Coast Guard regulations allow the filing of instruments, such as Bills of Sale, Deeds of Gifts, Mortgages, and Notices of Claim of Lien, to the NVDC by paper submission or electronically. Regulations on the electronic means for filing specify two technologies: via fax or Portable Document Format (PDF) attachment(s) to electronic mail. <FTNT> <SU>1</SU>  Vessel Documentation; Recording of Instruments direct final rule, 72 FR 42310, Aug. 2, 2007; and confirmation of effective date, 72 FR 58762, Oct. 17, 2007. </FTNT> This rule removes references to the specific electronic filing methodologies of PDF and faxing and revises the regulations with more general terms to capture other electronic filing options. It also removes referencing a specific technology that is no longer a part of NVDC's current process, because the system provided to and used by the NVDC does not support fax capabilities. Electronic filing is not mandatory. With this rule, vessel owners retain the ability to file paper records with the Coast Guard. Historically, paper records that were scanned and uploaded into the system were ultimately archived with the Federal Records Center, in accordance with National Archives and Records Administration (NARA) requirements. The NVDC still scans and uploads paper records, but, NARA, with few exceptions, stopped accepting paper records as of January 1, 2023. <E T="03">See</E> Transition to Electronic Records, OMB and NARA Memorandum M-19-21 (June 28, 2019). <SU>2</SU> <FTREF/> NARA does recognize a possible exception for records of intrinsic historic value to its rule on no longer accepting paper documents. <E T="03">See</E> Federal Records Management: Digitizing Permanent Records and Reviewing Records Schedules, 88 FR 28410, 28412-13 (May 4, 2023) and Guidance on OMB and NARA Memorandum Transition to Electronic Records, NARA Bulletin 2020-01 (September 30, 2020). <SU>3</SU> <FTREF/> However, that exception would not apply to the vast majority of NVDC records, if any. Therefore, paper records currently submitted to the NVDC are shelved for up to 2 years awaiting destruction by the Coast Guard. <FTNT> <SU>2</SU>   <E T="03">https://www.archives.gov/files/records-mgmt/policy/m-19-21-transition-to-federal-records.pdf</E> (accessed December 10, 2024). </FTNT> <FTNT> <SU>3</SU>   <E T="03">https://www.archives.gov/records-mgmt/bulletins/2020/2020-01</E> (accessed December 10, 2024). </FTNT> In response to NARA's paper processing change, the NVDC is maximizing electronic filing capabilities to reduce the need to digitize physical submissions, store the submissions, and ultimately destroy them. Additionally, more general language in the regulations allows the Coast Guard and affected vessel owners to take advantage of developing technologies as they become available for electronic submission of instruments. Currently, 46 CFR 67.99 requires original vessel build evidence. Without the ability to send original documents to NARA, the NVDC is required to either mail the form CG-1261, the original Builder's Certification and First Transfer of Title (hereafter “Builder's Certificate”), to the vessel owner, or shred the document. The NVDC currently accepts copies of other original documents and ceased requiring vessel owners to submit original evidence of build as of July 1, 2022. In line with this practice, the Coast Guard is amending 46 CFR 67.99 to remove the requirement for original evidence of build documents. In addition, 46 CFR 67.141(a)(4), 67.167(a), and 67.169(b) currently require an outstanding Certificate of Documentation (COD) be submitted as part of the application procedure for COD replacement, exchange, or deletion. This rulemaking removes this requirement. On December 4, 2018, Congress enacted the Frank LoBiondo Coast Guard Authorization Act of 2018 (CGAA 2018). Section 512 of the CGAA 2018 amended 46 U.S.C. 12105(e)(3)(A)  <SU>4</SU> <FTREF/> to require vessel owners to notify the Coast Guard no later than 30 days after each change in information that the issuance of a COD for the vessel is based on if it occurs before the expiration of the certificate. The Coast Guard previously revised 46 CFR 67.319 to reflect this statutory change (86 FR 5022, Jan. 19, 2021). With this final rule, the Coast Guard amends 46 CFR 67.113(e) and 67.321 to also extend, from 10 to 30 days, the time that a vessel owner has to report a change of a managing owner's address to the NVDC. <FTNT> <SU>4</SU>  Public Law 115-282, 132 Stat. 4192. </FTNT> This rulemaking will benefit vessel owners in the form of greater clarification by codifying current policy and practice at the NVDC of not requiring vessel owners to mail original build evidence and instruments. In addition, Coast Guard regulations will acc ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 63k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━