(a) The Coast Guard approves TPOs to carry out functions related to ensuring that towing vessels comply with provisions of this subchapter. Organizations may be approved to:

1. (1) Conduct audits of a Towing Safety Management System (TSMS), and the vessels to which the TSMS applies, to verify compliance with the applicable provisions of this subchapter;
2. (2) Issue TSMS certificates to the owner or managing operator who is in compliance with part 138 of this subchapter;
3. (3) Conduct surveys of towing vessels to verify compliance with the applicable provisions of this subchapter; and
4. (4) Issue survey reports detailing the results of surveys, carried out in compliance with part 137 of this subchapter.

(b) An organization seeking approval under this part must provide objective evidence to the Coast Guard that its program:

1. (1) Is independent of the owner or managing operator and vessels that it audits or surveys;
2. (2) Operates within a quality management system acceptable to the Coast Guard;
3. (3) Ensures its auditors and surveyors are qualified and maintain continued competence;
4. (4) Demonstrates the ability to carry out the responsibilities of approval; and
5. (5) Meets all other requirements of this part.