Enclosure (1) to COMDTINST 5300.1
(1) The Voluntary Compliance Agreement (VCA) or Settlement Agreement is
an agreement between USCG and the respondent. It outlines the remedial
actions the respondent will take and corresponding completion dates for each
actual or potential violation. G-HE will seek review of draft VCAs by G-
LGL. G-H will also seek G-M review of draft VCAs that involve maritime
safety issues. G-H monitors agreements to ensure that the respondent takes
required actions within the specified timeframes. This may or may not
require on-site visits. The respondent is notified when G-HE determines that
there has been successful implementation of the agreement. If we determine
that the respondent has failed to implement the agreement, we contact the
respondent to try to resolve the matter. If we are unable to resolve the matter
with the respondent, our subsequent actions will depend on how far along
we were in the investigation when the agreement was developed and the
enforcement language contained in the agreement. These actions might
include completion of the investigation, issuance of an LOF, and/or referring
the case to DOCR with a recommendation that they forward the case to DOJ
to enforce the agreement as a contract in Federal District Court.
(2) If we are unable to obtain voluntary compliance, there are two options for
attempting to achieve compliance - administrative enforcement proceedings
or referral to DOJ for enforcement. The decision to take either of these
steps will be made with the concurrence of DOCR. At this point, DOCR
takes over in the lead capacity, and G-HE's role would be essentially
advisory, supportive, and lending technical assistance. To terminate funds,
an agency must enter into administrative enforcement proceedings whereby
they: notify the recipient that it is in noncompliance and that voluntary
compliance cannot be achieved; have a hearing where there is a finding of
failure to comply; have a decision to terminate funds approved by the agency
head; and file a report with the House and Senate legislative committees
having jurisdiction over the programs involved. Fund termination is limited
to the particular program of the particular recipient where noncompliance
has been found. Alternatively, G-HE may forward a complaint to DOCR for
referral to DOJ for enforcement. G-LGL shall be consulted for review and
advice on all proposed referrals to DOJ. Also, prior to such referral, G-HE
and/or DOCR will discuss the particular facts of the case with appropriate
DOJ staff. We may ask DOJ to enforce any rights of the U.S. under any law
of the U.S. or under any assurance or contract. Our referral would include a
recommendation for appropriate action. The Coast Guard should be guided
by a policy that emphasizes cooperation and compliance. The aim of
enforcement action is to make sure that violators meet their obligations, and
not to impose sanctions for their own sake.
2
Note: If a Title II entity is not also a recipient of DOT or USCG Federal financial
assistance, fund termination is not an option.
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