Fisheries of the Northeastern United States; Recordkeeping and Reporting Requirements; Regulatory Amendment to Modify Seafood Dealer Reporting Requirements, 21976-21982 [05-8522]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 70, Number 81 (Thursday, April 28, 2005)]
[Rules and Regulations]
[Pages 21976-21982]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-8522]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 648

[Docket No. 050216041-5105-02; I.D. 020705C]
RIN 0648-AS87


Fisheries of the Northeastern United States; Recordkeeping and 
Reporting Requirements; Regulatory Amendment to Modify Seafood Dealer 
Reporting Requirements

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and 
Atmospheric Administration (NOAA), Commerce.

ACTION: Final rule.

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SUMMARY: NMFS issues this final rule to amend the electronic reporting 
and recordkeeping regulations for federally permitted seafood dealers 
participating in the summer flounder, scup, black sea bass, Atlantic 
sea scallop, Northeast (NE) multispecies, monkfish, Atlantic mackerel, 
squid, butterfish, Atlantic surfclam, ocean quahog, Atlantic herring, 
Atlantic deep-sea red crab, tilefish, Atlantic bluefish, skate, and/or 
spiny dogfish fisheries in the NE Region. This action reduces the 
submission schedule for dealer reports from daily to weekly, eliminates 
duplicate reporting of certain species, and clarifies existing 
reporting requirements. This action will also

[[Page 21977]]

allow vessel operator permits issued by the Southeast Region to satisfy 
NE vessel operator permitting requirements. The purpose of this action 
is to reduce the reporting burden on seafood dealers, improve data 
quality, simplify compliance, and clarify existing requirements.

DATES: This final rule is effective May 1, 2005.

ADDRESSES: Copies of the Regulatory Amendment, its Regulatory Impact 
Review (RIR), the Final Regulatory Flexibility Analysis (FRFA), and 
other supporting materials are available from Patricia A. Kurkul, 
Regional Administrator, Northeast Region, NMFS, One Blackburn Drive, 
Gloucester MA 01930. The regulatory amendment/RIR/FRFA are also 
accessible via the Internet at https://www.nero.nmfs.gov.
    Written comments regarding the burden hour estimates or other 
aspects of the collection-of-information requirements contained in this 
final rule may be submitted to Patricia A. Kurkul at the above address 
and by e-mail to David--Rostker@omb.eop.gov, or by fax to (202) 395-
7285.

FOR FURTHER INFORMATION CONTACT: Kelley McGrath, Fishery Information 
Specialist, (978) 281-9307, fax (978) 281-9161 or Erik Braun, Fishery 
Reporting Specialist, (631) 324-3569, fax (631) 324-3314.

SUPPLEMENTARY INFORMATION: This final rule implements measures 
contained in the Regulatory Amendment to Modify Seafood Dealers 
Reporting Requirements (Regulatory Amendment) for federally permitted 
seafood dealers. This action will reduce the reporting frequency for 
electronic purchase reports from daily to weekly; require only species 
managed by the NE Region to be reported when purchasing fish from a 
vessel landing outside the NE Region; and exempt certain inshore 
species from Federal reporting requirements. Other measures include: 
eliminating duplicate reporting to NMFS of Atlantic bluefin tuna 
purchases by federally permitted dealers; removing the option for 
dealers to submit reports via a phone-line using File Transfer Protocol 
(FTP); and clarifying several existing dealer reporting requirements. 
In addition to the dealer reporting changes, this action modifies the 
requirements for vessel operator permits to allow operator permits 
issued by the Southeast Region under 50 CFR part 622 to satisfy NE 
operator permit requirements at 50 CFR 648.5. Details concerning the 
justification for and development of the regulatory amendment and the 
implementing regulations were provided in the preamble to the proposed 
rule (69 FR 10585, March 4, 2005) and are not repeated here. A copy of 
the proposed rule was mailed to all federally permitted dealers 
affected by this action, as well as to the state directors for all 
states within the NE Region.
    Regulations implementing the fishery management plans (FMPs) for 
the summer flounder, scup, black sea bass, Atlantic sea scallop, NE 
multispecies, monkfish, Atlantic mackerel, squid, butterfish, Atlantic 
surfclam, ocean quahog, Atlantic herring, Atlantic deep-sea red crab, 
tilefish, Atlantic bluefish, skate, and spiny dogfish fisheries are 
found at 50 CFR part 648. These FMPs were prepared under the authority 
of the Magnuson-Stevens Fishery Conservation and Management Act 
(Magnuson-Stevens Act). All dealers and vessels issued a Federal permit 
in one or more of the aforementioned fisheries must comply with the 
reporting requirements outlined at Sec.  648.7. Lobster dealers issued 
a Federal lobster permit, but not issued any of the permits with 
mandatory reporting requirements under this part, are not required to 
comply with these reporting regulations, although other reporting 
requirements may apply. NMFS is modifying several components of these 
reporting regulations to reduce the reporting and administrative burden 
on seafood dealers and vessel operators, improve data quality, simplify 
compliance and enforceability of the reporting regulations, and 
eliminate confusion regarding existing reporting requirements.

Frequency of Reporting

    This rule requires all seafood dealers permitted under Sec.  648.6 
to submit electronic, trip-level reports of all fish purchases and 
receipts to NMFS on a weekly basis. Consistent with the existing 
regulations, weekly reports will be due within 3 days of the end of the 
reporting week, by midnight of the following Tuesday. If no purchases 
or receipts are made during the entire reporting week, an electronic 
report so stating is required. Dealers are allowed to submit negative 
reports for up to 3 months in advance, if they know that no fish will 
be purchased during that time. Edits to an existing report will be 
allowed for up to 3 days following the due date of the original report.

Out-of-region Dealers

    This rule requires dealers making purchases from a vessel landing 
outside of the NE Region (Maine to North Carolina) to report only their 
purchases of species managed by the NE Region. Limiting the species 
that must be reported by dealers making out-of-region purchases will 
reduce the burden on those dealers, and still allow for effective 
monitoring of species for which the NE Region is responsible. It will 
also lessen duplicate reporting to Federal and state agencies, and 
improve the quality of the data collected by reducing the potential for 
double counting of landings.

Inshore Species Reporting

    This action exempts several inshore species from dealer reporting 
requirements. Inshore exempted species include bay scallops; blood arc, 
razor and soft clams; blood and sand worms; blue, green, hermit, 
Japanese shore, and spider crabs; blue mussels; oysters; and, quahogs. 
NMFS will continue to collect landings information from federally 
permitted seafood dealers for all finfish species, federally managed 
shellfish, and American lobsters received or purchased by these 
dealers. In many cases, purchases of the exempt inshore species are 
being reported to a state management agency as well as to NMFS, 
resulting in duplicate data. In other cases the state agency supplies 
NMFS with summary data of these species, thus providing the needed 
information for analyses. Other states rely on NMFS to collect inshore 
species landings and provide that state with the data. However, states 
have responsibility for collection of information for most inshore 
shellfish fisheries and several states have information collection 
programs already in place, many of which have more detailed information 
requirements than the Federal reporting requirements. In addition, NMFS 
cannot verify the quality and completeness of state data, nor properly 
monitor and enforce the requirement. As states move toward electronic 
reporting programs, it is anticipated that one reporting system will 
meet the data needs of both state and Federal agencies, further 
reducing the reporting burden on dealers and simplifying compliance 
with both state and Federal regulations. Until such time, state 
agencies may require their dealers to report purchases of exempt 
inshore species through the Federal electronic reporting system, and 
NMFS will continue to make those data available to the responsible 
state agency.

Atlantic Bluefin Tuna

    This action eliminates the requirement for dealers to report 
purchases of Atlantic bluefin tuna. However, to purchase Atlantic 
bluefin tuna, dealers must comply with Highly Migratory Species (HMS) 
requirements under 50 CFR part 635, including the

[[Page 21978]]

requirement to submit purchase reports to the HMS division of NMFS. 
This action does not affect HMS requirements.

File Transfer Protocol (FTP) Option

    To accommodate NOAA policy, outlined in the DOC's ``Unclassified 
System Remote Access Security Policy and Minimum Implementation 
Standards'' document, this rule eliminates phone-line FTP as an 
acceptable system of file transfer due to security concerns. Dealers 
may submit reports using a web-based data entry system, through a web-
based file upload procedure, or via an approved state-implemented data 
collection program.

Units of Measure

    This rule clarifies that dealers can report purchases in a variety 
of units of measure. The revised language will accommodate purchases of 
species that are landed in units of measure other than pounds or 
bushels. For instance, scallops may be reported in gallons, and ocean 
quahogs may be reported in bags. The online data entry system that many 
dealers use to submit data to NMFS contains these additional units of 
measure as well.

Cage Tag Numbers

    This rule clarifies that only surfclam and ocean quahog trips 
harvested under an Individual Transferrable Quota (ITQ) require cage 
tag numbers to be reported. Purchases of surfclams and ocean quahogs 
from non-ITQ trips do not require tags, nor do other species purchased 
by surfclam and ocean quahog dealers.

Price, Disposition and Trip Identifier

    This rule requires dealers to submit price and disposition 
information within 16 days after the end of the reporting week. Prior 
to the implementation of electronic reporting in 2004, price 
information was due within 16 days of the end of the reporting week, 
which gave dealers the time they needed to collect the information and 
still provided economic data for analyses within a reasonable time 
frame. As specified in the existing regulations, effective May 1, 2005, 
trip identifier information will be due within the same time frame as 
the initial report.

At-Sea Receivers

    To minimize the potential for duplicate and triplicate reporting of 
fish transferred at sea, this rule removes the requirement for at-sea 
receivers to report their at-sea receipts of Atlantic herring, Atlantic 
mackerel, squid, butterfish, scup, or black sea bass. At-sea purchases 
of these species must still be reported. This rule also removes summer 
flounder from the above list of species because summer flounder 
regulations prohibit that species from being transferred at sea.

Computer Acquisition Requirement

    This rule clarifies that dealers are not required to purchase or 
obtain their own personal computer to comply with the reporting 
requirements. Dealers may use any computer that meets the minimum 
system requirements to submit data. NMFS has established kiosks in 
several field offices specifically for dealers to use to meet their 
reporting requirements.

Annual Processed Products Report (APPR)

    This rule clarifies that both dealers and processors must complete 
and submit the APPR each year. The APPR is a census used to collect 
employment and economic data for the processing segment of the seafood 
industry. Certain fisheries, such as surfclam, ocean quahog, and 
Atlantic herring require processors to be issued a processor permit 
under this part. Most entities issued a processor permit are also 
issued a dealer permit, however, there may be some processors issued 
only a processor permit under this part.

Operator Permits

    To provide a reciprocal agreement with the Southeast Region, this 
rule allows vessel operator permits issued by the Southeast Region 
under certain parts to satisfy NE Region vessel operator permitting 
requirements.

Comments and Responses

    The deadline for receiving comments on the proposed rule (69 FR 
10585, March 4, 2005) was March 21, 2005. Prior to the end of the 
comment period, NMFS received nine comments on the proposed rule. Six 
comments were from individuals representing or affiliated with seafood 
dealers. Two comments were from state fishery management agencies 
(North Carolina and Delaware). One comment was submitted by a member of 
the general public who appears to have no particular affiliation. 
Geographically, four comments were submitted by individuals in 
Massachusetts, and one comment each was submitted by individuals in 
Maine, Rhode Island, New Jersey, Delaware, and North Carolina. Three 
commenters expressed overall support for the proposed rule, 
particularly with regard to reducing the reporting frequency from daily 
to weekly. Two commenters were in favor of the proposed rule, but 
offered specific comments regarding the exempted inshore species. The 
remaining commenters provided specific comments on one or more of the 
following issues:
    Comment 1: One commenter was in favor of reducing the reporting 
frequency, but suggested that monthly reporting would be more 
beneficial to dealers.
    Response: NMFS recognizes that many dealers would prefer to submit 
reports on a monthly basis, however monthly reporting does not provide 
fisheries mangers with the necessary landings information within the 
time frame required for effective quota monitoring. Weekly reporting 
offers a compromise that is less burdensome to dealers than daily, but 
that still allows NMFS to monitor quotas and implement management 
measures within a reasonable time frame.
    Comment 2: One commenter requested that the exemption for certain 
inshore species be expanded to exempt all non-federally-managed species 
from Federal reporting requirements.
    Response: Having a complete picture of the fisheries, including 
harvests, landings, and economic data for species not managed by the 
Federal government is necessary for effective scientific and economic 
analyses and fisheries management. This enables NMFS to meet its 
obligations under a number of laws. One option NMFS considered was 
state-by-state exemptions for reporting of non-federally-managed 
species, contingent upon the state providing NMFS with trip-level 
landings and economic data for the exempt species within an acceptable 
time frame. While some states have been able to provide NMFS with 
landings information at the level of detail and within the time frame 
required for analyses, other states have not been able to accommodate 
these data needs. Therefore, to exclude all non-federally-managed 
species from reporting requirements at this time would likely have a 
deleterious effect on fisheries management. However, as more states 
move toward electronic reporting, it is anticipated that one reporting 
system will meet the data needs of both state and Federal agencies, 
further reducing the reporting burden on dealers and simplifying 
compliance with both state and Federal regulations.
    Comment 3: One commenter suggested that NMFS continue to collect 
landings of all species, whether federally managed or not, and continue 
to make those data available to the responsible state management 
agency.

[[Page 21979]]

    Response: NMFS will continue to collect landings information from 
federally permitted seafood dealers for all finfish species, federally 
managed shellfish, and American lobsters received or purchased by these 
dealers. However, states have responsibility for collection of 
information for most inshore shellfish fisheries and many states have 
information collection programs already in place. Further, NMFS cannot 
verify the quality and completeness of state data, nor properly monitor 
and enforce the requirement. As states move toward electronic reporting 
programs, it is anticipated that one reporting system will meet the 
data needs of both state and Federal agencies, further reducing the 
reporting burden on dealers and simplifying compliance with both state 
and Federal regulations. Until such time, states may require their 
dealers to report purchases of exempt inshore species through the 
Federal electronic reporting system, and NMFS will continue to make 
those data available to the responsible state agency.
    Comment 4: One commenter stated that NMFS should not make it easier 
on dealers to report, and should impose even more stringent enforcement 
measures on dealers, as they are profiting from a public resource.
    Response: It is not the intention nor the duty of NMFS to impose 
unnecessary regulatory burdens on entities that participate in the 
fishing industry, but rather to ensure the long term health of the 
resource through the implementation of effective management measures. 
The change in reporting frequency from daily to weekly and the 
exemption of certain species from reporting requirements will make 
compliance easier for most dealers. However, the information needed to 
implement appropriate management strategies will continue to be 
collected at the same level of detail, and within a time frame that 
allows for effective management.
    Comment 5: Two commenters did not feel the proposed changes would 
reduce the reporting burden on dealers.
    Response: The change to weekly reporting will make it easier for 
most dealers to comply with the reporting requirements. The time frame 
for submissions will be more flexible under weekly reporting, enabling 
dealers to complete and submit their reports in one session of data 
entry or file upload at the end of the week, or in several sessions 
spread over the course of the week. The exemption of certain species 
from reporting requirements will benefit some dealers more than others, 
depending on the primary species purchased and the location of their 
particular business.
    Comment 6: Two commenters questioned the time frame in which dealer 
reports are currently processed and collated by NMFS.
    Response: NMFS currently compiles landings data for quota managed 
species on a weekly basis. This information is published in the weekly 
quota reports and is available on the NMFS web site at https://
www.nero.nmfs.gov.
    Comment 7: One commenter suggested returning to paper-based 
reporting and submitting those reports via a facsimile machine.
    Response: This rule does not consider returning to a paper based 
reporting system because it is more cumbersome, costly, and time 
consuming to administer, and cannot provide the information needed in a 
timely manner. NMFS will continue to look for ways to allow dealers to 
use new technologies, as they develop, to satisfy Federal reporting 
requirements through the least burdensome mechanism.
    Comment 8: Two commenters suggested that the burden of providing a 
trip identifier should be on the fisherman rather than the dealer, and 
that vessel operators should be aware of the trip identifier and 
logbook requirements.
    Response: This rule makes no changes to the trip identifier 
requirement. However, any vessel owner issued a permit requiring 
completion of a vessel logbook has been sent information regarding 
vessel logbook completion as well as the trip identifier requirement, 
and should be aware of their reporting responsibilities. It is the 
responsibility of the dealer to ensure that a trip identifier is 
available, if required for that trip, prior to purchasing or receiving 
fish. It is the responsibility of the vessel operator to provide the 
trip identifier to the dealer upon sale of their fish.

Changes from the Proposed Rule

    There are no changes from the proposed rule.

Classification

    The Assistant Administrator (AA) for Fisheries, NOAA, finds good 
cause pursuant to 5 U.S.C 553(d)(3) to make this rule effective 
immediately, thereby waiving the 30-day delayed effective date required 
by 5 U.S.C. 553. The principal purpose of this action is to reduce the 
reporting and administrative burden on seafood dealers. This rule will 
reduce the reporting burden on federally permitted dealers by: reducing 
the reporting frequency for electronic purchase reports from daily to 
weekly; requiring only species managed by the Northeast Region to be 
reported when purchasing fish from a vessel landing outside the 
Northeast Region; minimizing reporting of certain inshore species not 
managed by NMFS; eliminating confusion over some existing regulatory 
requirements; and, eliminating duplicate reporting of Atlantic bluefin 
tuna purchases by federally permitted dealers. This action will also 
reduce the administrative burden on vessel operators by allowing 
operator permits issued by the Southeast Region under 50 CFR part 622 
to satisfy Northeast Regional operator permit requirements.
    The AA waives the 30-day delay in effectiveness of this rule in 
order to implement this rule by May 1, 2005, the start of the fishing 
year. The original electronic dealer reporting rule was effective on 
May 1, 2004. It represented such a deviation from the historical paper 
reporting system, that NMFS allowed industry members several months to 
come into compliance. It also delayed the daily reporting system for 
small dealers until May 1, 2005. During this transition period to 
compliance, NMFS encountered a number of unanticipated technical 
problems in the development and implementation of the computer program 
for the reporting system. In addition, once NMFS began receiving daily 
reports from large dealers, it became apparent that the new system was 
causing much confusion and unforseen problems among dealers due to the 
transition from using regional species codes to using national species 
codes. Specifically, the new system was not able to provide the 
flexibility that dealers, particularly those purchasing illex and 
loligo squid, needed to accurately report the amounts of species 
landed. In order to allow effective monitoring of quota managed 
fisheries, NMFS concluded that a weekly reporting requirement for all 
dealers would satisfy quota monitoring needs for most species, for most 
of the year, and that the current level of staffing could manage 
efficiently the number of data transmissions generated by a weekly 
reporting requirement.
    If the delayed effective period is not waived, a number of small 
dealers will be forced to hire at least an additional employee to meet 
the daily electronic reporting requirement. The average cost to hire a 
temporary employee for six weeks, at a wage rate of $18.88 per hour, is 
$4,531 per dealer. Assuming half of the 267 small dealers opt to do 
that, the total cost to industry, including a recruitment fee of $300 
each, would be approximately $683,000. Larger dealers may have to 
modify their office

[[Page 21980]]

procedures to ensure that the required reports are submitted daily to 
NMFS. This will cause a certain level of economic disruption during the 
period prior to the implementation of the measures in this rule. 
Dealers who do not comply with the daily reporting requirements may 
face civil monetary penalties of up to $130,000 for an offense under 
the Magnuson-Stevens Act. Failure by dealers to report their fisheries 
transactions will have a negative impact on the quality and 
completeness of the data upon which fisheries analyses and management 
decision are based.
    Further, May 1st is the start of the fishing year for most species, 
therefore, implementation of these requirements by that date ensures 
that consistent reporting requirements are in effect throughout the 
entire fishing year, resulting in better fisheries data. Some dealers 
may temporarily drop their dealer permit to avoid daily reporting, 
resulting in the loss of income during what is typically a very busy 
period for dealers. Based on 2003 and 2004 ex-vessel revenues reported 
by small dealers, the loss of revenue resulting from a dealer dropping 
their permit(s) for six weeks to avoid the daily reporting requirement 
would average approximately $16,500 per dealer. Assuming that ten 
percent, or 26, of the small dealers opt to temporarily drop their 
permits, the total cost to those dealers would be approximately 
$230,000. These estimates do not include the potential impacts to the 
vessels that would no longer be allowed to sell their catches to those 
dealers, nor the long term impacts to a dealer if a vessel is forced to 
go elsewhere temporarily to sell their product and then does not return 
to the original dealer once their dealer permit(s) is reissued. The 
implementation of the daily electronic reporting requirement for such a 
short period of time (i.e., during the delayed effectiveness period) 
will cause confusion and a lack of confidence in the stability of the 
administrative process among many dealers. In addition, the lack of a 
waiver will cause those fishermen in possession of an operator permit 
issued by the Southeast Region to have to apply for a NE Regional 
operator's permit if they intend to fish for species regulated under 50 
CFR part 648 before the end of the delayed effectiveness period.
    This final rule has been determined to be not significant for the 
purposes of Executive Order 12866.
    Included in this final rule is the Final Regulatory Flexibility 
Analysis (FRFA) prepared pursuant to 5 U.S.C. 604(a). The FRFA 
incorporates the IRFA and a summary of the analyses completed in 
support of this action. There were no public comments on the economic 
impacts of the proposed rule. A copy of the FRFA is available from the 
Regional Administrator (see ADDRESSES).

Final Regulatory Flexibility Analysis

Statement of Objective and Need

    A description of why this action is being considered, and the 
objective of and legal basis for this action, is contained in the 
preamble to the proposed rule and is not repeated here.

Summary of Significant Issues Raised in Public Comments

    NMFS received 9 comments on the proposed rule (69 FR 10585, March 
4, 2005) prior to the close of the comment period. Of these, there were 
no comments on the economic impacts of the rule. Therefore, no changes 
were made to this action as a result of the comments received. For a 
complete description of the comments received on the proposed rule, 
refer to the above section titled ``Comments and Responses.''

Description and Estimate of Number of Small Entities to Which the Rule 
Will Apply

    This action affects seafood dealers and processors issued a Federal 
permit for one or more of several species. Dealers are firms who 
purchase or receive fish from vessels for a commercial purpose, other 
than solely for transport on land, and then sell that product directly 
to restaurants, other dealers or processors, or consumers without 
substantially altering the product. Processors are firms that purchase 
raw product and produce another product form, which is then sold or 
transferred to markets, restaurant, or consumers. The majority of 
dealers and processors affected by this action are issued permits for 
several species.
    For the purposes of RFA, all dealers affected by this final rule 
are considered small businesses; therefore, there are no 
disproportionate impacts between large and small entities, as defined 
in the RFA. Based on 2003 data, approximately 576 dealers and 
processors hold one or more of the permits requiring compliance with 
this rule.

Description of Projected Reporting, Recordkeeping, and Other Compliance 
Requirements

    The projected reporting, recordkeeping, and other compliance 
requirements to which the final rule applies were identified in the 
preamble to the proposed rule (69 FR 10585, March 4, 2005) and in the 
IRFA, and remain the same. A description of the projected reporting, 
recordkeeping, and other compliance requirements is provided in the 
IRFA and the IRFA summary contained in the classification section of 
the proposed rule and is not repeated here. No professional skills are 
necessary for preparation of the reports or records specified above.

Overall, Duplicate, or Conflict with other Federal rules

    This rule does not duplicate, overlap, or conflict with any 
relevant Federal rules.

Steps Taken to Minimize Economic Impacts on Small Entities

    This final rule modifies the reporting requirements for seafood 
dealers participating in the summer flounder, scup, black sea bass, 
Atlantic sea scallop, NE multispecies, monkfish, Atlantic mackerel, 
squid, butterfish, Atlantic surfclam, ocean quahog, Atlantic herring, 
Atlantic deep-sea red crab, tilefish, Atlantic bluefish, skate, and/or 
spiny dogfish fisheries, and also makes a minor change to vessel 
operator permit requirements. These changes are designed to reduce the 
administrative burden on dealers and vessel operators, and to clarify 
existing regulations, thus it is anticipated that any economic impacts 
resulting from this action will be beneficial. The potential economic 
impacts of these measures are described in detail in the IRFA and the 
IRFA summary contained in the Classification section of the proposed 
rule (69 FR 10585, March 4, 2005).
    In addition to the action being taken in this final rule and a No 
Action alternative, NMFS considered additional options for each of the 
three major facets of this rule: Reporting frequency, out-of-region 
purchases, and inshore species reporting. For reporting frequency, NMFS 
considered two additional options. The first option redefined the 
dealer categories based on purchases of quota managed species only, 
rather than total purchases as is currently the case. Under this option 
Small Dealers would continue to report weekly and Large Dealers would 
continue to report daily. The second option considered for reporting 
frequency required weekly reporting for all dealers, with an option for 
NMFS to implement daily reporting if landings of a species reached 
levels requiring daily reporting for effective quota monitoring. Both 
of these options would reduce the reporting frequency, and thus the 
cost of compliance, for most dealers. While the

[[Page 21981]]

dealers still required to report daily under the first option would not 
see a cost savings, the cost would not increase for any dealers under 
that option compared to the No Action alternative. Under the second 
option, all dealers would see a cost benefit unless and until daily 
reporting was implemented, at which time the cost of compliance may 
temporarily increase for some dealers, to the same level as under the 
current regulations. The selected alternative is the most beneficial to 
dealers in that it will reduce the cost of compliance for all dealers 
throughout the year, while still allowing NMFS to effectively monitor 
quotas.
    For out-of-region dealer reporting, NMFS considered two other 
options for determining what constitutes an out-of-region dealer or 
trip. In the first option, the primary business address of the dealer 
determined whether the dealer was out-of-region or not. In the second 
option, the determination was based on the point of purchase for the 
trip. In addition, NMFS considered two other options for relieving 
dealers of inshore species reporting requirements. One option 
considered employing dealer-by-dealer reporting exemptions for any non-
federally-managed species, if requested by the state agency for that 
dealer. The second option allowed for a state agency to request that 
NMFS relieve all dealers in their state from reporting species to NMFS 
that are also reported to the state agency, regardless of the 
management agency. For both out-of-region purchases and inshore species 
reporting, the differences in cost savings among the various options 
and the selected action are negligible because it is likely that the 
number of dealers affected under each option is very similar. However, 
both the options and the selected actions would result in a time and 
cost savings compared to the current regulations, due to the reduction 
in reporting requirements. Given the similar decrease in compliance 
costs to industry, NMFS selected the options that are the most 
practical for the agency to manage and enforce.
    For all other changes included in this final rule, only the action 
being taken and the No Action alternative were considered. Of these 
changes, only the elimination of Atlantic bluefin tuna reporting under 
50 CFR part 648, removing the option for dealer to submit reports via 
FTP, and alleviating at-sea receivers from reporting requirements may 
have an economic effect on dealers. The elimination of Atlantic bluefin 
tuna reporting requirements for dealers issued a permit under 50 CFR 
part 648 will result in a slight time saving for dealers issued an 
Atlantic bluefin tuna permit since they will no longer have to report 
their Atlantic bluefin tuna purchases under two sets of regulations. 
Removing the option to submit reports via a phone line FTP will require 
all dealers to have Internet access that could, theoretically, result 
in a small cost increase to certain dealers. However, since no dealers 
are currently using the FTP option, no dealers will actually be 
affected by this change. Eliminating the requirement for at-sea 
receivers to submit purchase reports may save a very small number of 
entities from reporting under 50 CFR part 648.
    The remaining changes are primarily clarifications or 
administrative changes that will not result in any economic impacts on 
the affected entities. These changes include allowing various units of 
measure to be reported; requiring the trip identifier and disposition 
to be reported within 16 days of the end of the reporting week; 
clarifying which trips require cage tag numbers to be reported; 
clarifying that dealers do not have to purchase their own computer to 
comply with these reporting requirements; and allowing operator permits 
issued by the Southeast Region to satisfy operator permit requirements 
under 50 CFR part 648. Detailed descriptions of each of the changes are 
provided in the associated RIR/IRFA document (see ADDRESSES).

Small Entity Compliance Guide

    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare an FRFA, the agency shall 
publish one or more guides to assist small entities in complying with 
the rule and shall designate such publications as ``small entity 
compliance guides.'' The agency shall explain the actions a small 
entity is required to take to comply with a rule or group of related 
rules. As part of the rulemaking process, a small entity compliance 
guide will be sent to all holders of NE Federal dealer permits. In 
addition, copies of this final rule and guide (i.e., permit holder 
letter) are available from NMFS (see ADDRESSES) and at the following 
web site: https://www.nmfs.gov/ro/doc/nero.html.

Collection-of-Information Requirements

    This final rule contains a collection-of-information requirement 
subject to the Paperwork Reduction Act (PRA) and which has been 
approved by OMB under OMB Control Number 0648-0229. Public reporting 
burden for electronic dealer purchase reports is estimated to average 4 
minutes per response, including the time required for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection-of-information. Send comments regarding these burden 
estimates or any other aspects of this data collection, including 
suggestion for reducing the burden, to NMFS (see ADDRESSES) and to OMB 
by e-mail David--Rostker@omb.eop.gov, or by fax 202-395-7285.
    Notwithstanding any other provision of law, no person is required 
to respond to, and no person shall be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the PRA, unless that collection-of-information displays a currently 
valid OMB control number.

List of Subjects in 50 CFR Part 648

    Fisheries, Fishing, Reporting and recordkeeping requirements.

    Dated: April 22, 2005.
Rebecca Lent,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 50 CFR part 648 is amended as 
follows:

PART 648--FISHERIES OF THE NORTHEASTERN UNITED STATES

    1. The authority citation for part 648 continues to read as 
follows:

    Authority: 16 U.S.C. 1801 et seq.

0
2. In Sec.  648.2, the definitions for ``Dealer-large'' and ``Dealer-
small'' are removed, and a new definition for ``Inshore exempted 
species'' is added in alphabetical order as follows:


Sec.  648.2  Definitions.

* * * * *
    Inshore exempted species means the following species:
    Bay scallop - Aequipecten irradians.
    Blood arc clam - Anadara ovalis.
    Blood worm - Glycera dibranchiata.
    Blue crab - Callinectes similis and Callinectes sapidus.
    Blue mussel - Mytilus edulis.
    Green crab - Carcinus maenas.
    Hermit crab - Clibanarius vittatus, Pagurus pollicaris and Pagurus 
longicarpus.
    Japanese shore crab - Hemigrapsus sanguineus.
    Oyster - Crassostrea virginica and Ostrea edulis.
    Quahog - Mercenaria mercenaria.
    Razor clam - Ensis directus.
    Sand worm - Neresis virens.
    Soft clam - Mya arenaria.
    Spider crab - Libinia emarginata.
* * * * *

[[Page 21982]]


0
3. In Sec.  648.5, paragraph (a) is revised to read as follows:


Sec.  648.5  Operator permits.

    (a) General. Any operator of a vessel fishing for or possessing: 
Atlantic sea scallops in excess of 40 lb (18.1 kg); NE multispecies, 
spiny dogfish, monkfish, Atlantic herring, Atlantic surfclam, ocean 
quahog, Atlantic mackerel, squid, butterfish, scup, black sea bass, or 
Atlantic bluefish, harvested in or from the EEZ; tilefish harvested in 
or from the EEZ portion of the Tilefish Management Unit; skates 
harvested in or from the EEZ portion of the Skate Management Unit; or 
Atlantic deep-sea red crab harvested in or from the EEZ portion of the 
Red Crab Management Unit, issued a permit, including carrier and 
processing permits, for these species under this part, must have been 
issued under this section, and carry on board, a valid operator permit. 
An operator's permit issued pursuant to part 622 or part 697 of this 
chapter satisfies the permitting requirement of this section. This 
requirement does not apply to operators of recreational vessels.
* * * * *

0
4. In Sec.  648.7, paragraph (f)(1)(ii) is removed and reserved, 
paragraphs (a)(1)(i), (a)(2), (a)(3) introductory text, (a)(3)(i), 
(f)(1)(i), (f)(1)(iv), (f)(1)(v), and (f)(3) are revised, and paragraph 
(a)(1)(ii) is added to read as follows:


Sec.  648.7  Recordkeeping and reporting requirements.

    (a) * * *
    (1) * * *
    (i) Required information. All dealers issued a dealer permit under 
this part must provide: Dealer name; dealer permit number; name and 
permit number or name and hull number (USCG documentation number or 
state registration number, whichever is applicable) of vessel(s) from 
which fish are purchased or received; trip identifier for each trip 
from which fish are purchased or received from a commercial fishing 
vessel permitted under this part; date(s) of purchases and receipts; 
units of measure and amount by species (by market category, if 
applicable); price per unit by species (by market category, if 
applicable) or total value by species (by market category, if 
applicable); port landed; cage tag numbers for surfclams and ocean 
quahogs, if applicable; disposition of the seafood product; and any 
other information deemed necessary by the Regional Administrator. If no 
fish are purchased or received during a reporting week, a report so 
stating must be submitted.
    (ii) Exceptions. The following exceptions apply to reporting 
requirements for dealers permitted under this part:
    (A) Inshore Exempted Species, as defined in Sec.  648.2, are not 
required to be reported under this part;
    (B) When purchasing or receiving fish from a vessel landing in a 
port located outside of the Northeast Region (Maine, New Hampshire, 
Massachusetts, Connecticut, Rhode Island, New York, New Jersey, 
Pennsylvania, Maryland, Delaware, Virginia and North Carolina), only 
purchases or receipts of species managed by the Northeast Region under 
this part, and American lobster, managed under part 697 of this 
chapter, must be reported. Other reporting requirements may apply to 
those species not managed by the Northeast Region, which are not 
affected by this provision; and
    (C) Dealers issued a permit for Atlantic bluefin tuna under part 
635 of this chapter are not required to report their purchases or 
receipts of Atlantic bluefin tuna under this part. Other reporting 
requirements, as specified in Sec.  635.5 of this chapter, apply to the 
receipt of Atlantic bluefin tuna.
    (iii) * * *
    (2) System requirements. All persons required to submit reports 
under paragraph (a)(1) of this section are required to have the 
capability to transmit data via the Internet. To ensure compatibility 
with the reporting system and database, dealers are required to utilize 
a personal computer, in working condition, that meets the minimum 
specifications identified by NMFS. The affected public will be notified 
of the minimum specifications via a letter to all Federal dealer permit 
holders.
    (3) Annual report. All persons issued a permit under this part are 
required to submit the following information on an annual basis, on 
forms supplied by the Regional Administrator:
    (i) All dealers and processors issued a permit under this part must 
complete all sections of the Annual Processed Products Report for all 
species that were processed during the previous year. Reports must be 
submitted to the address supplied by the Regional Administrator.
* * * * *
    (f) Submitting reports--(1) Dealer or processor reports. (i) 
Detailed reports required by paragraph (a)(1)(i) of this section must 
be received by midnight of the first Tuesday following the end of the 
reporting week. If no fish are purchased or received during a reporting 
week, the report so stating required under paragraph (a)(1)(i) of this 
section must be received by midnight of the first Tuesday following the 
end of the reporting week.
    (ii) [Reserved]
    (iii) * * *
    (iv) Through April 30, 2005, to accommodate the potential lag in 
availability of some required data, the trip identifier, price and 
disposition information required under paragraph (a)(1) may be 
submitted after the detailed weekly report, but must be received within 
16 days of the end of the reporting week or the end of the calendar 
month, whichever is later. Dealers will be able to access and update 
previously submitted trip identifier, price, and disposition data.
    (v) Effective May 1, 2005, the trip identifier required under 
paragraph (a)(1) of this section must be submitted with the detailed 
report, as required under paragraphs (f)(1)(i) of this section. Price 
and disposition information may be submitted after the initial detailed 
report, but must be received within 16 days of the end of the reporting 
week.
    (vi) * * *
    (2) * * *
    (3) At-sea purchasers and processors. With the exception of the 
owner or operator of an Atlantic herring carrier vessel, the owner or 
operator of an at-sea purchaser or processor that purchases or 
processes any Atlantic herring, Atlantic mackerel, squid, butterfish, 
scup, or black sea bass at sea for landing at any port of the United 
States must submit information identical to that required by paragraph 
(a)(1) of this section and provide those reports to the Regional 
Administrator or designee by the same mechanism and on the same 
frequency basis.
* * * * *
[FR Doc. 05-8522 Filed 4-25-05; 4:37 pm]
BILLING CODE 3510-22-S