NVIC 07-94: Passenger Vessel Safety Act of 1993 guidance

2100 Second St. S.W. Washington, DC 205934001 (G-MVI-1) (202) 267-1464 COMDTPUBP:6700.4 7 Is NVIC ) ;: Septembe; 30, 1994 r-94 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. Subj: GU,IDANCE ON THE PASSENGER VESSEL SAFETY ACT OF 1993 . . . 1,; PURPOSE. This Circular provides compliance and enforcement guidance for the newly enacted Passenger Vessel Safety Act of 1993 (the Act).

Guidance on the Passenger Vessel Safety Act of 1993 — BACKGROUND. The Act was signed into law on December 20,

1 9 9 3It. makes several changes to the laws for passenger carrying vessels. The most significant change requires chartered vessels that carry more than 12 passengers to be inspected for certification. The Act affords certain vessels a phase-in period (extension) for compliance if they made application for inspection before June 21. 1994. Vessels granted an extension are required to come into full compliance with the regulations for passenger carrying vessels not later than December 21. 1996. The Act also 1 provides for the special regulation of certain existing charter vessels of 100 to 300 gross tons, and former public vessels of 100 to 500 gross tons carrying fewer than 150 passengers on domestic voyages. The owners of these vessels must also have made application for inspection before June 21, 1994, to be considered subject to these special regulations. The Act aligns the inspection threshold for passenger vessels with those contained in international DlSTRlBUTiON - SDL N- o. AI- 2I L3 a b.c d e f g h i j k lmnopqtstuvw~y~ 21c 3. 1 132 1 5 - ,30-.- * 1* 1 1 I* r 1 * I I I II I I I I I I I I I 17171 I- I I I I I I I I I I page 5 . ) NON-STANDARD DISTRIBUTION: (See 7-94 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. standards, brings submersible vessels carrying at least one passenger for hire under inspection, and allows "crewboats" to be treated as offshore supply vessels. Finally, the Act contains several new definitions that clarify previous language.

Guidance on the Passenger Vessel Safety Act of 1993 — DISCUSSION.

a. Bareboat charter agreements have traditionally been used in the marine industry as a mechanism to allow long-term charterers the ability to assume operational control of a vessel. In these agreements the charterer assumes the rights and liabilities of ownership for the vessel. The charterer is usually responsible for conducting a pre- charter and postcharter vessel survey, providing a crew, and assuming complete operational control of the vessel. Individuals soon began using bareboat charter agreements for short-term charters (as short as 4 hours in duration) to carry large numbers of people for events such as wedding receptions, graduation parties, or business meetings. Although these vessels were similar to comparable inspected vessels, under previous statutes these vessels were neither subject to, nor inspected as, passenger vessels. Previous statutes did not limit the number of individuals that could qualify for the owner

(charterer) exception to the definition of passenger and also contained an exception for guests carried on vessels being operated only for pleasure. The Act limits the exception for owner (charterer) to one individual and eliminated the guest exception. Additionally, many charter agreements allowed the owner of the vessel to either be a member of the crew or to provide the crew. The Act clearly delineates between charters that allow the owner to provide or specify the crew and those that do not. With the exception of those vessels subject to special regulation in paragraph 3.c below, vessels chartered with the crew provided or specified by the owner are subject to inspection as either small passenger vessels (under 100 gross tons and carrying more than six passengers) or passenger vessels

(100 gross tons or more and carrying more than 12 passengers). It is important to note that the extension provision for charter vessels discussed in paragraph 3.b below is not afforded when the crew is provided or specified by the owner. _ ----- r-94 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. b. The Act provides for Coast Guard inspection and certifi- cation of vessels that are chartered without a crew provided or specified by the owner and carrying more than 12 passengers. These vessels were afforded a grace period until June 21, 1994, before they become subject to the provisions of the Act. Additionally, these vessels are eligible, upon meeting certain conditions, to receive a maximum 30 month extension period to come into com- pliance with the inspected vessel regulations. To be eligible for this extension, owners were required to make application for inspection before June 21, 1994. Appli- cations received after this date cannot be considered for an extension. c. Several existing vessels that are chartered and over 100 gross tons are constructed from materials that preclude them from meeting the structural fire protection requirements of Title 46 Code of Federal Regulations Subchapter H. With the change in the definition of a passenger vessel, these chartered vessels will now fall into the passenger vessel category. As their con- struction does not comply with the existing regulations, the Act authorizes the Coast Guard to develop special regulations. Special regulations will include structural fire protection, manning, operating and equipment requirements. Detailed guidance is provided in enclosure (1). d. Under previous statutes, the U.S. inspection threshold

(the minimum number of passengers that determines when a vessel must be inspected by the Coast Guard) for passenger vessels was significantly different than international criteria.

The Act brings our domestic statutes regarding passenger vessel inspection more into line with the international standards by adopting the 12 passenger criteria for vessels over 100 gross tons.

Vessels of 100 gross tons or more carrying 12 or less passengers, including at least one passenger for hire, or that are chartered with the crew provided or specified by the owner are now uninspected passenger vessels.

Interim guidance is provided in enclosure (1) for this new class of uninspected vessels.

NOTE: Vessels of less than 100 gross tons carrying more than six passengers one of which is for hire or are chartered with a crew provided are still subject to inspection.

The 12 passenger threshold applies when such - ---.- vessels are chartered yithout the crew provided or specified by the owner. 7-94 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. ' 4 e.

The Act amends and adds several definitions in Title 46 United States Code (U.S.C.) Section 2101.

The Act provides a single consolidated definition of "passenger" for all passenger vessels.

It also defines the terms "passenger for hire" and "consideration," and amends the definition of a "passenger vessel," "small passenger vessel," 'sailing school vessel," "submersible vessel,' "offshore supply vessel' and "uninspected passenger vessel." f.

Many existing vessels that are chartered are of foreign build.

Under 46 U.S.C. 883 (Jones Act) these vessels are not allowed to engage in coastwise trade.

Under 46 U.S.C. 289 et seq., these vessels are generally prohibited from transporting passengers between ports or places in the U.S., either directly or by way of a foreign port.

Carriage of passengers for hire on a domestic voyage is considered coastwise trade.

However, under existing U.S.

Customs determinations, it is not coastwise trade when foreign vessels carry passengers for hire on foreign voyages or in bareboat charter operations where the charterer receives consideration from the passengers (becoming for hire) on domestic voyages.

Additional information on foreign vessels is contained in enclosure (1).

The Act amends the definition of Offshore Supply Vessel g- to include vessels carrying "individuals in addition to the crew." Thus, crewboats carrying individuals employed in the exploration, exploitation, or production of offshore mineral or energy resources are now within the definition of Offshore Supply Vessel.

This allows crewboats that do not carry persons other than oil industry personnel to be certificated as offshore supply vessels rather than small passenger vessels.

These vessels will be subject to the safety standards of Title 46 CFR Subchapter T or the final version of Title 46 CFR Subchapter L at the owners option. h.

The Act expands the Coast Guard's excursion permit authority to allow the issuance of special permits to vessels that are not certificated, This authority still has limitations and must be implemented by regulation.

Guidance on the Passenger Vessel Safety Act of 1993 — IMPLEMENTATION. Enclosure (1) contains comprehensive

information on how the Act will affect vessel owners, operators, charterers, and builders. _ _--.-- a. The first part of, the enclosure contains applicability and enforcement guidance, including charts, a matrix that identifies the regulations that apply under a particular set of conditions, and specific guidelines to apply depending upon the type of vessel. 7-95 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. b. The second part of the enclosure is a section-by-section analysis of the Act. Included are interpretations of the Act, giving specific operating scenarios. The sections of the Act are reprinted in italic above each description. Officers-in-Charge, Marine Inspection are encouraged to disseminate the information presented in this NVIC to affected segments of the maritime community. Coast Guard Chief, Office of Marine Safety, Security and Environmental Protection Encl: (1) Guidance on the Act

(2) Sample Extension Certificate Non-Standard Distribution: C:e New Orleans (90): Hampton Roads (50); Baltimore (45); San Francisco, Puget Sound (40); Philadelphia, Port Arthur, Honolulu (35); Miami, Houston, Mobile, Long Beach, Morgan City, Portland OR (25); Jacksonville (20): Boston, Portland ME, Charleston, Galveston, Anchorage (15); Cleveland (12); Louisville, Memphis, Paducah, Pittsburgh, St. Louis, Savannah, San Juan, Tampa, Buffalo, Chicago, Detroit, Duluth, Milwaukee, San Diego, Juneau, Valdez (10); Providence, Huntington, Wilmington, Corpus Christi, Toledo, Guam, Sault Ste. Marie (5). . C:m New York (70); Sturgeon Bay (4). D:d Except Baltimore and Moriches. D:l CG Liaison Officer MILSEALIFTCOMD (Code N-7CG), CG Liaison Officer RSPA (DHM-22), CG Liaison Officer MARAD (MAR-742), CG Liaison Officer JUSMAGPHIL, CG Liaison Officer World Maritime University, CG Liaison Officer ABS, Maritime Liaison Office Commander U.S. Naval Forces Central Command

(1). NOAA Fleet Inspection Officer (1). U.S. Merchant Marine Academy (1).