State Agency shall maintain complete inventories of all vending stands, other equipment, stock, materials and supplies acquired for or used in the program. The plan materials shall, in addition, provide that all vending stands and other equipment used in the program will be suitably marked so as to indicate clearly the nature and extent of the State Agency's interest therein and that such other action will be taken by the State Agency as may be necessary under the laws of the State to establish, protect and maintain such interest.

§ 601.22 Reports. The plan materials shall provide that fiscal, statistical and operating reports with respect to the program shall be furnished at such time and with such frequency as the Director shall determine to be necessary upon forms prescribed therefor.

§ 601.23 Payments to States. Payments to the States for the purposes of the act will be made in the manner set forth in and under the conditions prescribed by §§ 600.35, 600.36, and 600.37 of this chapter issued pursuant to the Vocational Rehabilitation Act relating to estimates, certification and the effect of certification. The estimates submitted in accordance therewith shall contain such additional information with respect to the Federal funds requested for the purposes of the act as the Director may deem necessary.

§ 601.24 Limitation on payments to States. With respect to the Federal funds granted for reimbursement under the act for the acquisition of vending

stands and other equipment for the program, the Director may limit, for particular periods, the amount of Federal funds granted to a State.

§ 601.25 Suspension of reimbursement authorization. The Director shall, if he finds that a State Agency has failed to comply substantially with the provisions of the plan materials approved hereunder, withhold authorization for any further reimbursement from Federal funds for the acquisition of vending stands and other equipment for the program until such time as there is no longer any such failure to comply.

§ 601.26 District of Columbia. All operations within the District of Columbia pursuant to the act will be administered by the District of Columbia Rehabilitation Service and all applicable provisions of the regulations in this part, including the formulation and submission for approval of plan materials, will govern such operations.

§ 601.27 Continued operations of programs under plans submitted previous to the issuance of regulations in this part. Insofar as they are not inconsistent with the act or the regulations in this part, plan materials submitted pursuant to Public Law 549, 79th Congress (60 Stat. 679), approved July 26, 1946, or to the regulations issued by the Federal Security Administrator under the date of July 26, 1946, pursuant to that act, shall be of the same force and effect and shall be subject to the same terms and conditions as though submitted under the regulations in this part.

Sec.

2.50-1 Waivers. [Revised]

§ 2.50-1 Waivers-(a) Authority for and limitations on issuance. Compliance with certain of the navigation and vessel inspection laws may be waived by the Commandant under authority of the act of March 31, 1947 (Public Law No. 27, 80th Congress), in cases where such waiver is deemed necessary in the orderly reconversion of the merchant marine from wartime to peacetime operations. By the terms of Public Law No. 27 this authority to grant waivers expires April 1, 1948. Section 2 of Public Law 27 specifically prohibits the issuance of waivers on and after June 1, 1947, which would allow noncompliance with the statutory citizenship requirements governing the employment of licensed officers and crew members and limiting the employment of aliens with the following exception. The Commandant of the Coast Guard may, until April 1, 1948, grant a waiver of the statutory requirements limiting the number of aliens that may be employed in the steward's department of vessels authorized to carry in excess of 12 passengers. These waivers will be for individual vessels as explained in paragraph (b) of this section unless it is found necessary to issue a general waiver.

[Preceding paragraph, in small type, superseded by following paragraph during period covered by this Supplement]

§ 2.50-1 Waivers-(a) Authority for and limitations on issuance. Compliance with certain of the navigation and vessel inspection laws may be waived by the Commandant under authority of the act of March 31, 1947 (Pub. Law 27, 80th Cong.) as amended by the act of July 31, 1947 (Pub. Law 293, 80th Cong.), in any case where such waiver is deemed necessary in the orderly reconversion of the merchant marine from wartime to peacetime operations. By the terms of Public Law 27, as amended by Public Law 293, this authority to grant waivers expires April 1, 1948. The Commandant is specifically prohibited from granting waivers for the employment of alien seamen except for those who served between December 7, 1941 and September 2, 1945, aboard vessels operated by the War Shipping Administration, the United States Maritime Commission, or the Army Transport Service. This includes foreign flag vessels operated by these agencies. [Paragraph (a) amended by CGFR 47–

41, Aug. 14, 1947, effective Aug. 1, 1947, 12 F.R. 5597]

(b) Policy. It is the policy of the Coast Guard, in the current administration of the laws and regulations relating to navigation and vessel inspection, to further the orderly reconversion of the merchant marine from wartime to peacetime operations by simplifying the procedure involved therein, eliminating all causes of delay in the sailing of vessels, and by bringing about a proper balance between the factors of safety at sea and this orderly reconversion. Various orders have been issued since March 1, 1942, for the purpose of carrying out this policy. While it is not the policy of the Coast Guard to countenance wilful violations of the laws and regulations or negligence in meeting the requirements thereof, neither is it contemplated that masters who exercise all reasonable efforts to comply with the requirements in effect be cited for violations on technical grounds.

(c) Specific individual waivers. Applications for waivers affecting only one vessel in any one order are made on Coast Guard Form 2633. Application for Waiver Order, and the reverse side of the form is used for granting of the waiver. The application shall state the name of vessel, her employment, the requirements of law or regulations, waiver of which is requested, the reasons why waiver is necessary, and shall be signed by the master, owner, or agent of the vessel, or by the representative of any interested government agency. The waiver order describes the vessel, the requirements of law waived, the conditions to which waiver is subject, and the period of time for which the waiver is effective. Application for individual waivers may be made to Coast Guard District Commanders and their designated representatives in domestic ports and representatives of the Commandant in other than domestic ports at which Coast Guard officers are assigned to duty. Document CGFR-4730 (Appendix A, infra), published in the FEDERAL REGISTER for May 20, 1947, is an order of the Commandant outlining the procedures for application and effectuation of individual waivers.

(d) General waivers. Applications for waivers having general applicability should be addressed to the Commandant. Only the Commandant is authorized to

(1)

§3.13-25 Crew deficiencies-(a) Authority for making crew substitutions. The order dated May 14, 1947 identified as document CGFR-47-29 (Appendix A, infra), published in the FEDERAL REGISTER for May 20, 1947 is a conditional waiver of manning requirements which permits masters who cannot obtain the quality of crew required to make substitutions therefor subject to certain restrictions. (b) Restrictions on substitutions. The waiver referred to in paragraph (a) of this section is applicable only to merchant cargo and tank vessels and does not authorize substitutions which would cause the statutory citizenship requirements for licensed officers and certificated crew members to be violated. This general waiver is intended to simplify to the utmost degree consistent with safety the procedure necessary when the required crew complement of a merchant cargo or tank vessel cannot be obtained by every reasonable effort up to the time of signing on. This waiver has the effect of relaxing the complement requirements of R. S. 4463, insofar as the quality of the crew is concerned by permitting substitutions in the filling of complements. Thus, if all the conditions of this waiver are met, a vessel may be navigated with licensed or rated positions occupied by officers or rated men of lower ranks and ratings than the complement calls for, but all positions specified in the complement must be occupied. In other words, while this waiver permits particular positions to be filled by men who do not hold the licenses or certificates contemplated by the complement for such positions, it does not permit a vessel to be navigated with less than the total number of crew members

specified in the complement. This waiver has no application to the navigation of a vessel where vacancies in the complement occur after the filling of the complement but during the period for which the full crew has been signed on. That situation continues to be governed by R. S. 4463.

(2) In view of the limitations on the employment of aliens contained in Public Law 27, after June 1, 1947 no alien may serve as a watch officer on United States vessels and the procedure set up by the Coast Guard for approving aliens to serve under waiver as watch officers will become inoperative and all outstanding lists of approved aliens and individual letters of approval will be without force and effect.

[Preceding subparagraph, in small type, superseded by following subparagraph during period covered by this Supplement]

(2) This waiver does not permit aliens to serve as watch officers on United States vessels and the procedure set up by the Coast Guard for approving aliens to serve under waiver as watch officers is inoperative and all outstanding lists of approved aliens and individual letters of approval are without force and effect. [Subparagraph (2) amended by CGFR 47-41, Aug. 14, 1947, effective Aug. 1, 1947, 12 F.R. 5597]

(c) Reports of substitutions. The report required by the Coast Guard has to be made on Coast Guard Form 729, Crew Deficiency Report, which may be obtained upon request from any Officer in Charge, Marine Inspection. Three copies must be filed, two with the shipping commissioner who signed on the crew, or if the crew was not signed on before shipping commissioner to the nearest Officer in Charge, Marine Inspection, and one copy must be submitted to the Collector of Customs at time application for clearance of vessel is made.

(d) Crew shortages. (1) There is no waiver permitting a vessel to be navigated with less than the total number of crew members specified in its complement and this situation is governed by R. S. 4463.

(2) R. S. 4463 outlines the conditions under which a vessel may be navigated in situations where the vessel is deprived of the services of any number of her crew during the period for which the full crew has been signed on. In such cases if the vacancies are filled with replacements of the same grade or a higher rating the vessel may, of course, continue to be navi