Procedures for Exemption From Service Contract Regulatory Requirements
| Published date | 27 April 2020 |
| Citation | 85 FR 23227 |
| Record Number | 2020-09003 |
| Section | Rules and Regulations |
| Court | Federal Maritime Commission |
Federal Register, Volume 85 Issue 81 (Monday, April 27, 2020)
[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Rules and Regulations]
[Pages 23227-23229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09003]
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FEDERAL MARITIME COMMISSION
46 CFR Part 530
[Docket No. 20-05]
RIN 3072-AC81
Procedures for Exemption From Service Contract Regulatory
Requirements
AGENCY: Federal Maritime Commission.
ACTION: Final rule.
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SUMMARY: The Federal Maritime Commission is revising its procedures for
exemptions from the regulatory requirements for service contracts to
allow such exemptions to be granted without providing an opportunity
for a hearing.
DATES: This final rule is effective April 27, 2020.
FOR FURTHER INFORMATION CONTACT: Rachel E. Dickon, Secretary; Phone:
(202) 523-5725; Email: [email protected].
SUPPLEMENTARY INFORMATION: The Commission's service contract
regulations in 46 CFR part 530 provide that exemptions from the
requirements of that part are governed by 46 U.S.C. 40103 and the
exemption procedures in 46 CFR part 502. See 46 CFR 530.13(b).\1\
Section 40103 provides that the Commission may grant an exemption from
statutory requirements if the Commission finds that the exemption will
not result in substantial reduction in competition or be detrimental to
commerce, and the Commission may attach conditions to an exemption.
Section 40103(a). Section 40103 also requires that a statutory
exemption may be issued only if the Commission has provided an
opportunity for a hearing to interested persons and departments and
agencies of the United States Government. The Commission's exemption
procedures in 46 CFR part 502 include a similar hearing requirement and
provide that the Commission will publish notice of the proposed
statutory exemption in the Federal Register and will solicit comments.
46 CFR 502.92. Thus, although the Shipping Act only requires notice and
opportunity for a hearing for exemptions from the statutory
requirements in the Act, the Commission requires notice and opportunity
for a hearing for exemptions from regulatory requirements by
incorporating section 40103 and the part 502 exemption procedures in 46
CFR 530.13(b).
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\1\ Section 530.13(b) includes an out-of-date cross-reference to
46 CFR 502.67, which formerly contained the Commission's exemption
procedures. Those procedures are currently located at 46 CFR 502.92.
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The current COVID-19 pandemic and its effect on the international
supply chain and commercial operations has demonstrated a need for
Commission flexibility to provide immediate regulatory relief in
appropriate circumstances. This is particularly true in the case of
service contracts given the challenges that the current situation
presents to contract negotiation, formation, and filing by the carriers
and their customers. To that end, the
[[Page 23228]]
Commission is revising its exemption procedures for part 530 to allow
for exemptions from the regulatory requirements in that part to be
granted without notice and opportunity for a hearing. Specifically, the
Commission is revising Sec. 530.13(b) to state that exemptions from
the requirements in part 530 are governed by 46 U.S.C. 40103(a), which
provides the substantive criteria for granting exemptions, 46 CFR
502.92, which lays out the procedure for requesting exemptions and how
exemptions are processed, and 46 CFR 502.10, which permits the
Commission to waive the rules in part 502 in particular cases to
prevent undue hardship, manifest injustice, or if the expeditious
conduct of business so requires.
The Commission emphasizes that these changes only affect the
procedures for granting exemptions from the regulatory requirements in
part 530. The final rule does not affect the procedures for exemptions
from the statutory requirements of the Shipping Act, which will
continue to be subject to notice and an opportunity for a hearing
before issuance. See 46 U.S.C. 40103(b). In addition, these changes
will not affect the substantive criteria for granting exemptions from
the regulatory requirements in part 530. Such exemptions will continue
to be granted when the Commission finds that the exemption will not
result in substantial reduction in competition or be detrimental to
commerce. And the Commission will, as a general matter, continue to
provide notice and an opportunity for comment on proposed exemptions
before issuing an exemption from requirements in part 530. Under the
final rule, however, the Commission will have the ability to waive
these procedural requirements under Sec. 502.10 in appropriate
circumstances.
Rulemaking Analyses and Notices
Final Rule Justification and Effective Date
Under the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(A),
rules of agency organization, procedure, or practice do not require
notice and comment. This final rule relates to the Commission's
organization, procedures, and practices; it revises the Commission's
procedures for exempting regulated entities from the regulatory
requirements in 46 CFR part 530. The Commission has also determined
given the current challenges faced by the shipping industry due to the
COVID-19 pandemic, the ability for regulated entities to seek prompt
regulatory relief from the Commission is needed in the immediate
future, notice and comment is impracticable and contrary to the public
interest. See 5 U.S.C. 553(b)(B).
The Administrative Procedure Act also generally requires a minimum
of 30 days before a final rule can go into effect, but excepts from
this requirement: (1) Substantive rules which grant or recognize an
exemption or relieve a restriction; (2) interpretive rules and
statements of policy; and (3) when an agency finds good cause for a
shorter period of time and includes those findings with the rule. 5
U.S.C. 553(d). For the same reasons as discussed above, good cause
exists for making this final rule effective upon publication in the
Federal Register, given the immediate need for regulated entities to
have the ability to seek prompt regulatory relief from the Commission.
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 non-agency parties.
Id. This final rule relates to agency organization, procedures, and
practices. Specifically, the final rule revises the Commission's
exemption procedures under part 530 to give the Commission flexibility
to forgo notice and opportunity for hearing in certain circumstances
before granting an exemption from the service contract regulatory
requirements. Although the final rule will affect interested parties'
ability to comment on certain proposed regulatory exemptions before
they are granted, the Commission does not believe the rule
substantially affects their rights. Notice and comment will continue to
be generally required before an exemption is granted. Only when
necessary to prevent undue hardship, manifest injustice, or if the
expeditious conduct of business so requires, will the Commission waive
these requirements. Based on the foregoing, 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 APA (5 U.S.C. 553), the agency must prepare and make available 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 an FRFA, however, for the following types of rules, which are
excluded from the APA's notice-and-comment requirement: interpretative
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 discussed 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 an 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. The final rule revises Commission
regulations governing the exemption procedures for the service contract
regulatory requirements in part 530. This rulemaking thus falls within
the categorical exclusions for procedural rules pursuant to 46 CFR part
502 (Sec. 504.4(a)(4)), and related to the receipt service contracts
(Sec. 504.4(a)(5)). 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) (PRA)
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).
Executive Order 12988 (Civil Justice Reform)
This rule meets the applicable standards in E.O. 12988 titled,
``Civil Justice Reform,'' to minimize litigation,
[[Page 23229]]
eliminate ambiguity, and reduce burden.
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 at the
beginning 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 530
Freight, Maritime carriers, Report and recordkeeping requirements.
For the reasons set forth above, the Federal Maritime Commission is
amending 46 CFR part 530 as follows:
PART 530--SERVICE CONTRACTS
0
1. The authority citation for part 530 continues to read as follows:
Authority: 5 U.S.C. 553; 46 U.S.C. 305, 40301-40306, 40501-
40503, 41307.
0
2. Amend Sec. 530.13 by revising paragraph (b) introductory text to
read as follows:
Sec. 530.13 Exceptions and exemptions.
* * * * *
(b) Commission exemptions. Exemptions from the requirements of this
part are governed by 46 U.S.C. 40103(a) and Sec. Sec. 502.10 and
502.92 of this chapter. The following commodities and/or services are
exempt from the requirements of this part:
* * * * *
By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2020-09003 Filed 4-24-20; 8:45 am]
BILLING CODE 6730-02-P
