Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; Snapper-Grouper Fishery off the Southern Atlantic States; Amendment 15B; Reef Fish Fishery of the Gulf of Mexico, 58902-58914 [E9-27442]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 74, Number 219 (Monday, November 16, 2009)]
[Rules and Regulations]
[Pages 58902-58914]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-27442]



[[Page 58902]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 080226312-91249-03]
RIN 0648-AW12


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Snapper-Grouper Fishery off the Southern Atlantic States; Amendment 
15B; Reef Fish Fishery of the Gulf of Mexico

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 implement Amendment 15B to the 
Fishery Management Plan for the Snapper-Grouper Fishery of the South 
Atlantic Region (FMP), as prepared and submitted by the South Atlantic 
Fishery Management Council (Council). This final rule, for South 
Atlantic snapper-grouper, requires a private recreational vessel that 
fishes in the exclusive economic zone (EEZ), if selected by NMFS, to 
maintain and submit fishing records; requires a vessel that fishes in 
the EEZ, if selected by NMFS, to carry an observer and install an 
electronic logbook (ELB) and/or video monitoring equipment provided by 
NMFS; prohibits the sale of snapper-grouper harvested or possessed in 
the EEZ under the bag limits and prohibits the sale of snapper-grouper 
harvested or possessed under the bag limits by vessels with a Federal 
charter vessel/headboat permit for South Atlantic snapper-grouper 
regardless of where the snapper-grouper were harvested; requires an 
owner and operator of a vessel for which a commercial or charter 
vessel/headboat permit has been issued and that has on board any hook-
and-line gear to comply with sea turtle and smalltooth sawfish release 
protocols, possess on board specific gear to ensure proper release of 
such species, and comply with guidelines for proper care and release of 
such species that are incidentally caught; and expands the allowable 
transfer of a commercial vessel permit under the limited access program 
and extends the allowable period for renewal of such a permit. 
Amendment 15B also revises the stock status determination criteria for 
golden tilefish and specifies commercial/recreational allocations for 
snowy grouper and red porgy. In addition, NMFS removes language 
specifying commercial quotas for snowy grouper and red porgy that are 
no longer in effect and revises sea turtle bycatch mitigation 
requirements applicable to the Gulf reef fish fishery to add two 
devices that were inadvertently omitted from a prior rule. The intended 
effects of this final rule are to provide additional information for, 
and otherwise improve the effective management of, the South Atlantic 
snapper-grouper fishery; minimize the impacts on incidentally caught 
threatened and endangered sea turtles and smalltooth sawfish; and 
remove outdated language.

DATES: This rule is effective December 16, 2009, except for the 
following amendments. The amendment to Sec.  622.18(c) is effective 
November 16, 2009; the amendment to Sec.  622.10(c) is effective 
February 16, 2010; and the amendments to Sec. Sec.  622.5, 622.8, and 
622.18(b)(1)(ii) require approval by the Office of Management and 
Budget (OMB) under the Paperwork Reduction Act (PRA). When OMB approval 
for those amendments is received, NMFS will publish a notice in the 
Federal Register announcing the applicable effective date.

ADDRESSES: Copies of the Final Environmental Impact Statement (FEIS), 
Final Regulatory Flexibility Analysis (FRFA), and Record of Decision 
may be obtained from Kate Michie, Southeast Regional Office, NMFS, 263 
13th Avenue South, St. Petersburg, FL 33701; telephone 727-824-5305; 
fax 727-824-5308.
    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 Rich Malinowski, Southeast Regional 
Office, NMFS, and by e-mail to David_Rostker@omb.eop.gov, or by fax to 
202-395-7285.

FOR FURTHER INFORMATION CONTACT: Kate Michie, telephone: 727-824-5305.

SUPPLEMENTARY INFORMATION: The snapper-grouper fishery off the southern 
Atlantic states is managed under the FMP. The FMP was prepared by the 
Council and is implemented under the authority of the Magnuson-Stevens 
Fishery Conservation and Management Act (Magnuson-Stevens Act) by 
regulations at 50 CFR part 622.
    On June 4, 2009, NMFS published a notice of availability for 
Amendment 15B and requested public comments (74 FR 26827). On June 30, 
2009, NMFS published the proposed rule to implement Amendment 15B and 
requested public comments (74 FR 31225). NMFS approved Amendment 15B on 
September 1, 2009. The rationale for the measures contained in 
Amendment 15B is provided in the amendment and the preamble to the 
proposed rule and is not repeated here.

Comments and Responses

    NMFS received 216 comments on Amendment 15B and the proposed rule, 
including 1 comment from a state agency, 2 comments from Federal 
agencies, and 213 comments from individuals (including 155 copies of a 
form letter sent by individuals). Of these comments, 14 expressed 
general opposition to Amendment 15B, one comment expressed general 
support, and one comment was unrelated to the scope of the actions 
contained in the amendment and the rule. The remaining comments 
addressed specific concerns related to the actions contained in the 
amendment and the rule, and those comments, as well as NMFS' respective 
responses, are summarized below.
    Comment 1: One hundred fifty seven comments expressed concern 
regarding the allocation of snowy grouper. Several constituents stated 
the 95-percent commercial and 5-percent recreational allocation of 
snowy grouper is unbalanced and favors the commercial sector. Others 
cited National Standard 4 (NS 4) of the Magnuson-Stevens Act, regarding 
``fair and equitable'' management measures, as not being met, stating 
that a fair allocation of the species would be 50-percent commercial 
and 50-percent recreational. Another commenter stated recreational data 
collection is insufficient to monitor recreational landings and is 
concerned any recreational overages will undermine efforts to rebuild 
the stock.
    Response: The sector allocations for snowy grouper in Amendment 15B 
are based on historical landings by fishery sector, and are 
proportional to the total allowable catch (TAC) for the applicable 
species. The Council recommended and NMFS adopted snowy grouper 
allocations based on average annual harvests for each sector using the 
longest time series of data (1986-2005). The snowy grouper 95-percent 
commercial and 5-percent recreational allocation was supported by the 
Council's Snapper-Grouper Advisory Panel. It was concluded that the 
preferred allocation is fair and equitable based on the best scientific 
information available.
    NMFS recognizes that snowy grouper recreational landings are more 
difficult to track than commercial landings. Snowy grouper are 
infrequently encountered by the current data collection program, which 
is the Marine Recreational Fisheries Statistical

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Survey. Therefore, the Council has discussed, as an action for a future 
amendment, the possibility of comparing a recreational annual catch 
limit with recreational landings averaged over a range of years. For 
example, for 2010, landings from 2010 would be used; for 2011, landings 
from 2010 and 2011 would be used; and for 2012, landings from 2010, 
2011, and 2012 would be used.
    Comment 2: One hundred fifty five commenters who signed the form 
letter opposed updating management reference points for golden 
tilefish. They stated that such updates should be delayed until a peer-
reviewed study is completed with more current data.
    Response: Section 303(a) of the Magnuson-Stevens Act requires that 
regional fishery management councils must specify within their FMPs 
objective and measurable criteria for identifying when the stocks are 
overfished or when overfishing is occurring. These criteria are 
referred to by NMFS as stock status determination criteria, otherwise 
known as management reference points. Required criteria include maximum 
sustainable yield (MSY), optimum yield (OY), minimum stock size 
threshold (MSST), and maximum fishing mortality threshold (MFMT). The 
Council has specified numerical values for MSY, OY, MSST, and MFMT (the 
definition of MFMT, which is the fishing mortality that will produce 
MSY, would remain unchanged) for golden tilefish, in Amendment 15B, 
based on the most recent Southeast Data, Assessment, and Review (SEDAR) 
assessment for golden tilefish, which was completed in 2004. The data 
used in the 2004 SEDAR assessment and in Amendment 15B were determined 
to be the best available scientific information by the Southeast 
Fisheries Science Center (SEFSC). The management reference points 
specified for golden tilefish in Amendment 15B will continuously be 
reviewed and updated as new data becomes available. The next SEDAR 
assessment for golden tilefish is scheduled to begin in 2010. If the 
assessment results indicate a change is needed, the management 
reference point values may be updated through a framework action or a 
future FMP amendment.
    Comment 3: Three commenters supported the prohibition on bag limit 
sales of snapper-grouper, however, 168 commenters (including 155 
commenters who signed the form letter) expressed opposition to the 
measure, for one or more reasons. Those opposed to this measure are 
concerned: about the potential cost of purchasing a commercial limited 
access snapper-grouper permit, which they would need to sell their 
snapper-grouper caught in Federal waters; they will no longer be able 
to sell their catch if they only hold state-issued commercial licenses; 
recreational fishermen could begin to sell their catch illegally, 
creating an illegal market for snapper-grouper; the prohibition 
unfairly favors the commercial sector and inequitably impacts the 
recreational and for-hire sectors; and for-hire and private 
recreational vessel operators will no longer be able to defray their 
trip costs by selling bag-limit caught snapper-grouper. Further, 
several commenters alleged that the prohibition on bag-limit sales 
contradicts Amendment 7 (1994) to the FMP, which implemented a 
provision to allow the sale of snapper-grouper caught under the bag 
limits by fishermen who possess a state-issued commercial license, and 
that the prohibition on bag-limit sales is illegal and violates 
Magnuson-Stevens Act National Standards (NS) 4, 5, and 8.
    Response: The cost and limited availability of Federal commercial 
snapper-grouper permits (or limited-access snapper-grouper permits) 
could be determining factors for those fishermen seeking to sell their 
catch. If a person who does not hold a Federal commercial snapper-
grouper permit wishes to sell snapper-grouper harvested from the EEZ, 
that person must purchase two Federal commercial snapper-grouper 
permits in order to be issued one Federal commercial snapper-grouper 
permit. This two-for-one program was established in 1998 through 
Amendment 8 to the FMP.
    The prohibition on sale of bag-limit caught snapper-grouper is not 
intended to financially penalize recreational fishermen who would like 
to sell their catch, rather it is intended to:
    (1) eliminate the double counting of recreationally caught fish, 
which may be counted through the Marine Recreational Fishing Statistics 
Survey and by snapper-grouper dealers who report all landings as 
commercial; (2) improve enforcement by implementing regulations 
compatible with those already in place for reef fish harvested in the 
Gulf of Mexico; and (3) reduce the financial risk and negative economic 
impacts that would be incurred if snapper-grouper fisheries are closed 
early due to recreationally caught fish being counted against the 
commercial quotas.
    Fishermen who hold a state-issued commercial license to sell fish 
but who do not hold a Federal commercial snapper-grouper permit may be 
considered commercial fishermen by their respective state. However, 
those same fishermen are not considered participants of the Federal 
commercial sector of the snapper-grouper fishery. Fishermen holding 
state-issued commercial licenses will still be allowed to sell snapper-
grouper, provided those fish are caught in state waters (and the 
fishermen do not also hold a Federal for-hire snapper-grouper permit), 
unless and/or until their state implements regulations compatible with 
this final rule.
    Illegal sale of snapper-grouper by recreational fishermen will 
likely be an enforcement issue similar to other current illegal fish 
sales in the South Atlantic. The Council's Law Enforcement Advisory 
Panel reported that the prohibition of bag-limit sales would aid law 
enforcement efforts because the universe of people involved in the sale 
of snapper-grouper would be reduced.
    The main argument shared by recreational fishermen on this issue is 
the disparity of negative socioeconomic impacts between the commercial 
and recreational sectors. However, fishermen with Federal commercial 
snapper-grouper permits are more dependent on snapper-grouper species 
to make a living than individuals who possess a state license and can 
sell up to their bag limit. Commercial harvesters with a Federal 
commercial snapper-grouper permit that depend on the harvest and sale 
of fish for their livelihood have greater vessel safety requirements 
and associated expenses than recreational fishermen have with their 
private vessels. This fact, coupled with recent regulations that have 
established or reduced quotas to end overfishing of a number of 
snapper-grouper species, were the primary reasons the Council voted to 
eliminate the sale of bag limit catch to prevent an early closure of 
the commercial sector of the snapper-grouper fishery and to prevent 
market disruption.
    The revenue from sales of snapper-grouper caught under the bag-
limits by those vessel owners who possess state-issued commercial 
licenses traditionally have been used to help offset the cost of 
fishing trips. Prohibiting the sale of bag-limit caught fish could 
result in a decrease in recreational fishing effort, and for-hire 
vessels may require increased fees or reduced levels of services 
offered. The use of bag-limit sales as a form of crew payment is 
understood to be common industry practice. Elimination of the bag-limit 
sale provision could result in the increase of charter fees, lower crew 
wages, or fewer crew onboard.
    Amendment 7 to the FMP implemented controls on the sale and

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purchase of snapper-grouper by limiting bag-limit sale transactions to 
those who possessed a state-issued commercial license to sell and 
dealers who held a Federal snapper-grouper dealer permit. It was NMFS' 
intent to allow the sale of bag-limit caught fish in order to improve 
stock assessments with the supplemental data and allow the Council to 
better manage the snapper-grouper resource. However, since the Council 
has established new (reduced) commercial quotas to end overfishing of 
several snapper-grouper species the consequences of bag-limit sales has 
become more evident. All snapper-grouper landings that are sold are 
counted toward commercial quotas and commercial fisheries close when 
their respective quotas are reached. NMFS is implementing the 
prohibition on bag-limit sales to help avoid early closures for species 
caught by the commercial snapper-grouper fleet. This action does not 
restrict the recreational fishermen from harvesting their bag limit; it 
restricts the sale of those bag limit harvested fish.
    National Standard 4 states, in part, that conservation and 
management measures shall not discriminate between residents of 
different States, but if it becomes necessary to allocate such fishing 
privileges among various fishermen, such allocation shall be fair and 
equitable to all such fishermen. This rule ensures that fish harvested 
by the recreational sector are not counted toward the commercial 
quotas, that total landings are accurate, that market disruption is 
avoided due to early snapper-grouper fishery closures, and that South 
Atlantic regulations for sale of recreationally caught snapper-grouper 
are consistent with those for reef fish in the Gulf of Mexico. NS 5 
states that conservation and management measures shall, where 
practicable, consider efficiency in the utilization of fishery 
resources; except that no such measure shall have economic allocation 
as its sole purpose. NMFS acknowledges the economic impacts of this 
action. The economic analysis contained within Amendment 15B indicates 
that there would be adverse economic impacts to those who have engaged 
in bag limit sales. However, prohibiting the sale of bag-limit caught 
snapper-grouper will enhance efficiency in the utilization of fishery 
resources through improved data integrity by eliminating the double 
counting of snapper-grouper species towards both the recreational and 
commercial landings, which will result in improved assessments and 
management. Efficiency will also be gained through improved 
enforcement, as previously discussed, and because of the implementation 
of compatible regulations in the South Atlantic and Gulf of Mexico. In 
regard to NS 8, which states in part that conservation and management 
measures shall provide for the sustained participation of communities 
and minimize adverse impacts on such communities to the extent 
practicable, this action would help sustain fishing communities whose 
fishermen possess Federal commercial snapper-grouper permits and are 
directly dependent upon the harvest and sale of snapper-grouper 
species.
    Comment 4: Many commenters supported the bycatch monitoring methods 
contained in Amendment 15B for commercial vessels, however, 178 
commenters, including those that signed the form letter, opposed the 
requirement for private recreational vessels to carry observers and/or 
video monitoring systems if selected to do so by the Science and 
Research Director, SEFSC, NMFS (SRD), stating that it is a violation of 
their constitutional rights.
    Response: It is not the Council's or NMFS' intent to infringe on 
any rights guaranteed to private citizens of the United States and 
these requirements do not violate any person's rights guaranteed under 
the United States Constitution. The requirement for private 
recreational vessels fishing for snapper-grouper in the EEZ to carry 
observers, and use video monitoring equipment, among other monitoring 
methods, if selected to do so by the SRD, is intended solely to 
supplement existing data on interactions with bycatch species and 
obtain information on regulatory discards. Additionally, any vessel 
fishing within the confines of Federal waters is subject to Federal 
requirements regardless of the commercial or recreational status of the 
vessel. The Council voted, and NMFS agreed to adopt, measures to 
collect standardized bycatch data across all sectors of the snapper-
grouper fishery in order to create a more reliable and comprehensive 
database to be used in future fisheries management decisions.
    Comment 5: One commenter stated that the monitoring methods 
included in Amendment 15B should be applied to all vessels operating in 
the snapper-grouper fishery, not only a selected portion.
    Response: All fishing vessels operating in this fishery, if 
selected, are subject to these monitoring requirements, however, NMFS 
agrees that total bycatch monitoring coverage would yield the greatest 
amount of bycatch data. Placing observers, electronic logbooks, and 
video monitoring systems onboard all commercial and recreational 
vessels fishing for snapper-grouper in the South Atlantic EEZ would be 
cost prohibitive and is not statistically necessary to create a robust 
data set. Therefore, the Council decided to implement bycatch 
monitoring methods only on vessels selected by the SRD.
    Comment 6: One hundred fifty five commenters who signed the form 
letter opposed the action that allows an individual to transfer his or 
her limited access vessel permit to a corporation whose shares are all 
held by the individual or the individual and one or more of his or her 
immediate family members. The majority of these commenters also support 
further permit reductions in the fishery in order to protect snapper-
grouper stocks in the South Atlantic.
    Response: This action would add no additional permits to the 
fishery. The intent of this action is to allow family-owned fishing 
businesses to transfer individual snapper-grouper permits to a family-
owned corporation, on a one-for-one basis, to obtain tax and liability 
benefits that may be provided to a corporation. The snapper-grouper 
limited access program requires new entrants into the fishery to 
purchase two commercial snapper-grouper permits in exchange for one 
permit. Some current permit holders would like to incorporate their 
fishing businesses and transfer their snapper-grouper permits to a new 
family-owned corporation without the need to buy a second permit. The 
Council concluded that the modification to the permit transferability 
requirements is fair and equitable based upon the information 
available. Under this action, an individual would be able to transfer 
his or her limited access transferable vessel permit to a corporation 
whose shares are all held by the individual or the individual and or 
one or more of his or her immediate family members. The permit may not 
be renewed or transferred if an annual corporate report shows a 
shareholder other than an immediate family member of the individual who 
originally transferred the vessel permit to the family corporation.
    While an optimal fleet size to maximize benefits (biological, 
social, and economic) for the snapper-grouper fishery doesn't currently 
exist, reductions in the number of permits in the limited access 
program continue under the current ``two-for-one'' permit program. The 
Council may choose to further reduce the number of permits in this 
fishery in a future amendment.
    Comment 7: One commenter expressed concern about any

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disproportionate effects the modification to permit transferability 
requirements might have on low-income or subsistence fishermen. The 
same commenter stated a more liberal approach may be appropriate for 
permit transferability requirements if, indeed, low-income or 
subsistence fishermen were affected.
    Response: An environmental justice analysis was conducted for all 
actions in Amendment 15B (see Section 7.5 of the FEIS), and it found 
that no minority, low-income, or subsistence groups would be 
disproportionately affected by actions therein.
    Comment 8: One commenter opposed the requirement for all vessels 
with commercial and for-hire snapper-grouper vessel permits, carrying 
hook-and-line gear onboard, to: (1) immediately release incidentally 
caught smalltooth sawfish by following the latest NMFS approved 
guidance on smalltooth sawfish release techniques; (2) have a copy of 
the document, provided by NMFS, titled ``Careful Release Protocols for 
Sea Turtle Release with Minimal Injury'' posted inside the wheelhouse, 
or within a waterproof case in a readily accessible area; (3) post the 
NMFS provided sea turtle handling and release guideline placard inside 
the wheelhouse, or in an easily viewable area if there is no 
wheelhouse; (4) tend to incidentally caught sea turtles in a manner 
consistent with the protocols specified in 50 CFR 635.21(c)(5)(ii); and 
(5) carry NMFS approved sea turtle release gear onboard.
    Response: A 2006 Biological Opinion conducted by NMFS under the 
Endangered Species Act concluded that the impacts of the South Atlantic 
snapper-grouper fishery were likely to adversely affect threatened or 
endangered sea turtles and smalltooth sawfish. Based on the Biological 
Opinion, NMFS determined the need to implement sea turtle bycatch 
release equipment requirements, and sea turtle and smalltooth sawfish 
handling protocols and/or guidelines in the commercial and for-hire 
sectors of the snapper-grouper fishery. NMFS acknowledges the financial 
burden as well as the onboard storage issues related to requirements 
under this action. According to the economic impact analysis contained 
within the FEIS for Amendment 15B (Section 4.6.2), expenses per vessel 
are estimated to range from $617-$1,115.
    Comment 9: One commenter asked if training in the proper use of sea 
turtle dehooking and disentanglement gear would be provided to 
fishermen in the snapper-grouper fishery, and how the success of 
requiring such gear would be monitored.
    Response: Equipment specialists will conduct voluntary dockside 
training sessions for proper use of sea turtle release gear. 
Additionally, the protocol required onboard every Federally permitted 
snapper-grouper vessel contains step-by-step instructions on proper use 
of the required equipment and handling of entangled or hooked sea 
turtles. To monitor the efficacy of the requirement to carry sea turtle 
release gear, NMFS would need to implement an observer or video 
monitoring program in the snapper-grouper fishery. Presently, 
enforcement of this provision would occur via dockside and at-sea 
vessel inspections. Amendment 15B does include a requirement for 
federally permitted snapper-grouper vessels to carry an observer and/or 
video monitoring equipment on board if selected to do so by the SRD. 
Once funding is secured, NMFS' intention is to move forward with the 
implementation of an observer program for the snapper-grouper fishery 
of the South Atlantic.
    Comment 10: One commenter stated the Snapper-Grouper Advisory Panel 
was unbalanced in its representation of commercial and recreational 
fishermen at the time the Advisory Panel voted against a motion to 
allow for the continued sale of bag limit caught snapper-grouper by 
fishermen holding state licenses to sell fish.
    Response: Council advisory panels are made up of recreational and 
commercial fishermen, industry representatives, environmentalists and 
other interested members of the public who volunteer their time to 
advise the Council about trends in fisheries, environmental concerns 
relating to fish habitats and management impacts on fishermen and 
fishing communities. Advisory panel members serve 3-year terms and are 
appointed by the Council based on Committee recommendations. The 
advisory panel member's seat is open to qualified applicants at the end 
of the 3-year term, and the current member is also eligible for 
reappointment. Any motions or issues discussed by a specific advisory 
panel may be brought before the respective committee and Council for 
consideration. In this case, the issue of bag-limit sales was brought 
before, and voted on, by the Snapper-Grouper Committee as well as the 
Council. Both entities voted in favor of choosing the alternative to 
prohibit the sale of bag limit caught snapper-grouper in the South 
Atlantic as the preferred alternative. Subsequent to the Council's 
approval of Amendment 15B, the amendment was approved by the Secretary 
of Commerce.

Other Non-Substantive Changes Implemented by NMFS

    This final rule removes the outdated 2008 quotas for snowy grouper 
and red porgy at Sec.  622.42(e)(1) and (e)(6), respectively.

Classification

    The Administrator, Southeast Region, NMFS, determined that 
Amendment 15B is necessary for the conservation and management of the 
snapper-grouper fishery and is consistent with the Magnuson-Stevens Act 
and other applicable laws.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    An FRFA was prepared. The FRFA incorporates the initial regulatory 
flexibility analysis (IRFA), a summary of the significant economic 
issues raised by public comments, NMFS responses to those comments, and 
a summary of the analyses completed to support the action. A copy of 
the full analysis is available from NMFS (see ADDRESSES). A summary of 
the FRFA follows.
    The purpose of this rule is to specify quotas for snowy grouper and 
red porgy; modify the sales provisions of snapper-grouper caught or 
possessed under the bag limit; implement a plan to monitor and assess 
bycatch; implement measures to minimize the impacts of incidental sea 
turtle and smalltooth sawfish take; and ease the requirements of 
snapper-grouper permit renewal and transfer. These measures are 
expected to provide additional information for, and otherwise improve 
the effective management of, the South Atlantic snapper-grouper 
fishery, and minimize the impacts on incidentally caught threatened and 
endangered sea turtles and smalltooth sawfish. The Magnuson-Stevens Act 
provides the statutory basis for this rule. In addition to these 
actions, Amendment 15B establishes allocation ratios for snowy grouper 
and red porgy, and management reference points and stock status 
criteria for golden tilefish.
    No public comments were received that raised specific issues on the 
IRFA. However, comments were received from 13 individuals that 
addressed multiple issues relating to the general economic analysis 
conducted for the amendment and the proposed rule. Some of these 
comments address issues that are germane to the RFA, while others do 
not. However, while the Regulatory Flexibility Analysis (RFA) pertains 
to specific economic questions, there is a logical connection between 
all

[[Page 58906]]

economic issues and the nuances of which comments are or are not 
germane to the RFA may not be obvious to the public. In recognition of 
these considerations, all of the economic comments, regardless of 
whether they address issues relevant to the RFA, are addressed here.
    Thirteen comments addressed the proposed prohibition on the sale of 
snapper-grouper harvested under the bag limit, and two comments 
addressed the potential costs of bycatch monitoring. Among the 13 
comments on the sales prohibition, 8 expressed concern over the 
magnitude of the likely economic effects of the proposed rule; 2 
comments stated that the cost of the necessary permit to allow 
continued bag-limit sales was prohibitive; 2 comments stated that 
markets would be harmed; 1 comment stated the rule will contribute to a 
regulatory-induced contraction of vessels in the fishery, resulting in 
a number of ``units'' that ``may approach a monopolistic level with 
perilous consequences; and 1 comment stated the economic 
analysis was inadequate because it did not sufficiently delineate the 
effects by user group, particularly the effects on individuals who 
possessed a North Carolina Standard Commercial Fishing License (SCFL). 
The two comments on bycatch monitoring stated that certain options, 
notably the use of observers and electronic monitoring, may be 
physically impractical or cost prohibitive.
    NMFS agrees that this rule will result in adverse economic effects 
on fishermen who will no longer be able to continue to sell snapper-
grouper harvested under the bag limit. Estimates of the average 
expected reduction in revenues associated with these harvests were 
provided in the analysis. Although some individual vessels will likely 
experience greater than average losses, across all affected entities, 
this rule is expected to reduce average annual fish sale revenues by 
approximately 17 percent for federally permitted for-hire vessels and 
approximately 7 percent for all other vessels. It is noted, however, 
that the primary revenue source for for-hire vessels is passenger fees 
and not fish sales, so the loss of these revenues should have a 
substantially lower impact on business profitability than the reduction 
in fish sales might imply. While vessels that will no longer be able to 
sell snapper-grouper harvested under the bag limit are expected to 
experience lower revenues, increased harvests and sales of snapper-
grouper by vessels with the Federal commercial snapper-grouper permit 
will be possible, and the prohibition of the sale of fish harvested 
under the bag limit is necessary to achieve the Council's objectives.
    NMFS agrees the cost of obtaining a Federal commercial snapper-
grouper permit, resulting from the current limited access permit system 
that requires new entrants to purchase a Federal commercial snapper-
grouper permit on the open market from a current permit holder, 
combined with the requirement that two current permits be purchased in 
order to enter the fishery, is prohibitive and, as a result, fishermen, 
who will no longer be able to sell bag-limit quantities of snapper-
grouper are unlikely to acquire the necessary permits to continue 
commercial sales of these species. In the analysis of the proposed 
rule, the cost of a single Federal commercial snapper-grouper permit 
was estimated to range from $9,000-$21,000, but could be higher. As a 
result, affected vessels are expected to cease the sale of snapper-
grouper and experience reductions in fish revenues ranging from, on 
average, 7 percent for commercial vessels and 17 percent for for-hire 
vessels, with some individual fishing vessels expected to experience 
greater than average reductions. While these vessels will be expected 
to be adversely affected, the Council has not determined at this time 
that it is appropriate to either eliminate the two-for-one permit 
requirement or allow increased participation in the commercial snapper-
grouper fishery through other methods and, therefore, the elimination 
of snapper-grouper sales by vessels that do not have the Federal permit 
is necessary to achieve the Council's objectives.
    NMFS disagrees that fish markets will be significantly affected by 
this rule. The prohibition on the sale of snapper-grouper harvested 
under the bag limit is only expected to affect those who may harvest 
and sell snapper-grouper and not the total amount of snapper-grouper 
harvested and sold. Thus, the total amount of snapper-grouper available 
to fish markets should not be substantially affected. Some individual 
market businesses, however, may experience declines in product flow, 
with others experiencing increases, because individual fishermen sell 
their harvests to different dealers. Markets that have historically 
purchased snapper-grouper harvested under the bag limit may have to 
develop new purchase strategies to maintain product flow, but total 
product availability across all markets is not expected to be reduced. 
Further, if the product mix of individual markets mirrors that of 
vessel sales, most markets should not be substantially dependent on 
sales of snapper-grouper harvested under the bag limit as snapper-
grouper sales by fishermen that do not possess the Federal commercial 
snapper-grouper permit constituted less than eight percent of total 
sales of all species by these fishermen for 2004-2006.
    NMFS disagrees that the rule will result in sufficient contraction 
of the fishery to raise monopoly concerns. Although the analysis for 
the proposed rule identified over 1,500 entities with recorded sales of 
snapper-grouper harvested under the bag limit for 2004-2006, over 700 
entities have the necessary Federal commercial permit that will allow 
continued harvest and sale of these species. While the permit transfer 
provisions for this fishery are expected to result in further reduction 
over time of the number of vessels that operate in the fishery, the 
number of permitted vessels is sufficiently large that no monopoly 
concerns are evident.
    NMFS disagrees that the economic analysis was inadequate because it 
did not sufficiently delineate the effects by user group. The economic 
analysis identified average historic harvest and sales activity by 
fishermen, by state, who did or did not possess the Federal commercial 
snapper-grouper permit. The expected economic effects of the proposed 
rule on affected entities equates to the loss of revenues from snapper-
grouper sales by individuals who do not possess the Federal commercial 
snapper-grouper permit. In the case of North Carolina, fishermen who 
possessed either a SCFL or a Retired SCFL have been allowed to sell up 
to the recreational bag limit of snapper-grouper. The effects of the 
proposed rule on these entities was provided in the economic analysis, 
though the specific effects on North Carolina fishermen were pooled 
with those of South Carolina fishermen because of confidentiality. On 
average, the elimination of bag limit sales of snapper-grouper by these 
entities was estimated to affect approximately four percent of the 
total average annual sales of all marine species by these entities. 
Therefore, the results presented consisted of the expected economic 
effects on the subject group addressed in the comment. It is also 
noted, as discussed in the economic analysis in support of this rule, 
that state-licensed fishermen fishing in state waters who do not 
possess any Federal permit will be able to continue the harvest and 
sale of snapper-grouper harvested from state waters, and the expected 
economic effects described here will be reduced, if states do not adopt 
compatible regulations.
    NMFS agrees that certain bycatch monitoring options may be 
physically

[[Page 58907]]

impractical, such as insufficient space on the vessel for an observer 
or no place to locate either an electronic logbook or video monitor, or 
cost prohibitive, particularly for some recreational vessels. However, 
any requirements would apply to a vessel only if selected, rather than 
all vessels, and NMFS expects these issues to be key considerations in 
the selection of vessels required to participate. Further, although 
subsequent operation and maintenance costs have been the responsibility 
of vessel owners where other electronic monitoring requirements, such 
as vessel monitoring systems, have been imposed, the initial purchase 
of the system may be government funded, further reducing the burden to 
the vessel. No decision on responsibility of these costs has been made 
at this time. However, NMFS expects that the selection of the method of 
data collection and the vessels affected will be appropriate to the 
type of vessel, considerate of the resultant burden, and will minimize 
any subsequent costs to the extent practicable.
    As explained in the responses provided here and in the responses to 
other issues raised by public comment on other aspects of the proposed 
rule, as detailed in the Comments and Responses section of the 
preamble, no changes were made in this final rule as a result of such 
comments.
    This final rule is expected to directly impact commercial fish 
harvesters and for-hire operators. The Small Business Association has 
established size criteria for all major industry sectors in the U.S. 
including fish harvesters and for-hire operations. A business involved 
in fish harvesting is classified as a small business if it is 
independently owned and operated, is not dominant in its field of 
operation (including its affiliates), and has combined annual receipts 
not in excess of $4.0 million (NAICS code 114111, finfish fishing) for 
all its affiliated operations worldwide. For for-hire vessels, the 
other qualifiers apply and the annual receipts threshold is $6.5 
million (NAICS code 713990, recreational industries).
    From 2001-2005, an average of 1,127 vessels per year were permitted 
to operate in the Federal commercial snapper-grouper fishery. However, 
over the 2004-2006 fishing years, an average of only 717 vessels per 
year that were permitted to operate in this fishery recorded snapper-
grouper sales. The average annual dockside value of snapper-grouper 
sold by these vessels was approximately $12.96 million (nominal 
dollars), while the value of all other species sold by these vessels 
was approximately $14.33 million (nominal dollars), or total average 
annual revenues of approximately $27.29 million. The average annual 
dockside revenue per vessel from sales of all marine species for this 
period was approximately $38,000.
    In 2005, 1,328 vessels were permitted to operate in the Federal 
snapper-grouper for-hire fishery, of which 82 are estimated to have 
operated as headboats, and 1,246 as charter vessels. Within these 1,328 
vessels, 201 vessels also possessed a Federal commercial snapper-
grouper permit and would be included in the summary information 
provided on the commercial sector. The charter vessels charge a fee on 
a vessel basis, and headboats charge a fee on an individual angler 
(head) basis. The charter vessel annual average gross revenue is 
estimated to range from approximately $62,000-$84,000 (2005 dollars) 
for Florida vessels, $73,000-$89,000 for North Carolina vessels, 
$68,000-$83,000 for Georgia vessels, and $32,000-$39,000 for South 
Carolina vessels. For headboats, the appropriate estimates are 
$170,000-$362,000 for Florida vessels, and $149,000-$317,000 for 
vessels in the other states. From 2004-2006, an average of 159 vessels 
per year with the for-hire snapper-grouper permit had recorded sales of 
snapper-grouper species. The total average annual revenues from 
snapper-grouper species were approximately $316,000 (nominal dollars), 
while average annual revenues for all other species was approximately 
$1.52 million (nominal dollars), for total average annual revenues from 
fish sales of approximately $1.84 million. The average annual revenue 
per for-hire vessel from fish sales of all marine species for this 
period was approximately $11,600. It should be noted that these 
revenues are not included in the average gross for-hire revenues listed 
above, which only reflect revenues from charter fees.
    The prohibition of sale of fish harvested under the bag limit will 
affect vessels that have historically sold snapper-grouper but do not 
possess a Federal commercial snapper-grouper permit. From 2004-2006, an 
average of 1,439 fishing vessels per year that could not be associated 
with either a Federal commercial or Federal for-hire snapper-grouper 
permit had recorded snapper-grouper sales. Total average annual 
revenues from snapper-grouper species for these vessels were 
approximately $2.09 million (nominal dollars), while average revenues 
from all other species were approximately $28.59 million (nominal 
dollars), for total average annual revenues of approximately $30.67 
million. The average annual revenue per vessel from sales of all marine 
species for this period was approximately $21,000.
    Some fleet activity may exist in both the commercial and for-hire 
snapper-grouper sectors, but the extent of such is unknown, and all 
vessels are treated as independent entities in this analysis. Based on 
the average revenue figures described above, it is determined, for the 
purpose of this assessment, that all fishing operations that will be 
affected by this final rule are small entities.
    This final rule will not explicitly impose any new reporting, 
record-keeping or other compliance requirements on small entities 
because this rule simply specifies the types of requirements that could 
be imposed to improve bycatch monitoring and assessment. An individual 
vessel would only be subject to new requirements if selected. However, 
the bycatch and monitoring assessment action could result in a 
requirement for the use of paper logbooks, electronic logbooks, video 
cameras, or the carrying of observers to aid in the monitoring of 
bycatch. All commercial snapper-grouper trips are currently required to 
complete logbook records, with each report estimated to take 10 minutes 
to complete. Over the years 2001-2005, commercial vessels operating in 
the snapper-grouper fishery took almost 16,000 trips, or approximately 
14 trips per vessel. Assuming modification to the current logbook to 
include bycatch increased the time required to complete the form by 25 
percent, the additional annual time burden to complete the form 
fishery-wide would be approximately 667 hours or 0.6 hours per vessel.
    The headboat sector is also currently required to complete logbook 
reports for all trips, estimated to take 18 minutes per report. 
Assuming an average of 322 trips per vessel (note that many vessels 
take multiple trips per day, so the average number of trips does not 
equal days fished), 82 headboats, and a 25-percent increase in the 
amount of time required to complete the form to account for bycatch, 
the resultant increased annual time burden to the industry would be 
approximately 1,980 hours, or 24 hours per vessel.
    Although charter vessels currently are required to complete 
logbooks if selected, no vessels in the charter-vessel sector are 
currently selected and required to submit logbooks. Assuming it took a 
charter vessel the same amount of time required for a commercial vessel 
to complete a bycatch-augmented logbook, 12.5 minutes, 1,246 charter 
vessels, and 146 trips per charter vessel

[[Page 58908]]

per year, if all vessels were required to complete logbooks, the total 
annual time burden to the industry would be approximately 37,900 hours 
or 30.4 hours per vessel.
    There would be no anticipated costs of logbook reporting beyond the 
opportunity cost of completing the logbook forms. Current logbook 
programs provide fishermen with addressed, pre-paid envelopes for 
returning completed forms. Completing the logbooks would not be 
expected to require special skills.
    Similar burden estimates are not available for the use of 
electronic logbooks. Electronic logbooks would be expected to take less 
time to complete because certain response variables could be 
preprogrammed and transmission would be simplified. Electronic logbooks 
are estimated to cost $500 per unit, but responsibility for this 
expense is undetermined at this time. Considering the widespread 
familiarity with and usage of computers throughout today's society, 
special skills to use an electronic logbook would not be expected, 
though some initial training or demonstration and a short learning 
curve would be logical.
    The use of video cameras to monitor and record bycatch is likely a 
method that would, if used, be imposed on only a small portion of 
participants in the snapper-grouper fishery due to its cost and 
complexity. Purchase, installation, and maintenance costs of video 
systems would likely be borne by the government, though some cost-
sharing with fishermen may occur. Additional details are unavailable at 
this time, so concrete determinations on fishermen burden or skill 
requirements cannot be made.
    This final rule will directly affect all vessels that operate in 
the commercial snapper-grouper fishery, all vessels that have a Federal 
snapper-grouper charter vessel/headboat permit, and all vessels that 
harvest snapper-grouper from the EEZ and sell their catch to federally 
permitted dealers. All affected entities have been determined, for the 
purpose of this analysis, to be small entities. Because all entities 
that are expected to be affected by this final rule have been 
determined to be small entities, no disproportionate effects on small 
entities relative to large entities are expected.
    Only four of the actions in this final rule, including: the two 
changes in quota, the prohibition on bag-limit sales, and the gear 
requirements to minimize the incidental take of sea turtles and 
smalltooth sawfish, are expected to have direct economic impacts on 
fishing entities. The snowy grouper quota of 82,900 lb (37,603 kg) 
gutted weight is expected to result in a loss of 1,100 lb (499 kg) of 
snowy grouper to the commercial sector. Assuming an average ex-vessel 
price of $2.31 per pound (2006 dollars), this reduction is valued at 
approximately $2,500, or a loss of approximately $13 per vessel active 
in the fishery (190 vessels; 2001-2005 average number of commercial 
vessels per year with snowy grouper landings). The red porgy quota of 
190,050 lbs (86,205 kg) gutted weight is expected to result in a gain 
of 63,050 lb (28,599 kg) gutted weight of red porgy to the commercial 
sector. This gain is comprised of approximately 59,000 lbs (26,762 kg) 
gutted weight resulting from the increase in red porgy TAC as a result 
of the rebuilding strategy implemented through Amendment 15A to the FMP 
and the remaining increase resulting from an expected one percent 
increase due to the commercial allocation established by Amendment 15B. 
Assuming an average ex-vessel price of $1.40 per pound (2006 dollars), 
the total gain in commercial quota is valued at approximately $88,300, 
or a gain of approximately $493 per vessel active in the fishery (179 
vessels; 2001-2005 average number of commercial vessels per year with 
red porgy landings).
    Assuming the implementation of compatible regulations in all 
states, thus encompassing snapper-grouper harvested in both state and 
Federal waters as well as marketed through all state and federally 
permitted dealers, the prohibition on bag-limit sales is projected to 
result in the transfer of approximately $2.4 million in nominal ex-
vessel revenues (2004-2006 average) from for-hire and commercial 
fishing vessels that do not have a Federal commercial snapper-grouper 
permit to the federally permitted commercial snapper-grouper sector. 
This will constitute a total reduction of approximately $316,000 per 
year from fish sales by vessels in the federally permitted for-hire 
fishery, or a 17-percent reduction in average annual gross revenues 
from fish sales per vessel, and approximately $2.085 million per year 
in sales from commercial vessels that do not posses a Federal 
commercial snapper-grouper permit, or a 7-percent reduction in average 
annual gross revenues per vessel. It should be noted that snapper-
grouper fish sales by federally permitted for-hire vessels, estimated 
at approximately $2,000 per vessel on average, constitute a minor 
portion of total average annual revenues, with the majority of revenues 
coming from charter fees. As discussed above, South Atlantic charter 
vessels are estimated to have average gross annual revenues of 
approximately $32,000-$89,000, across all states, while headboat 
average annual revenues are estimated to range from $149,000-$362,000.
    If compatible regulations are not adopted in any state, the 
estimated reduction in bag-limit sales revenues will be limited to 
those harvests that originate from the EEZ by all vessels, bag-limit 
harvests from state waters by vessels with the Federal charter vessel/
headboat permit for South Atlantic snapper-grouper, and harvests that 
are marketed through dealers with a Federal permit. This will lower the 
reduction in bag-limit sales to approximately $1.562-$1.799 million, 
accounting for the estimated portion of bag-limit sales that originate 
in state waters (approximately 9 percent) and the estimated portion of 
bag-limit sales that are marketed through dealers without Federal 
licenses (approximately 21-35 percent). For the Federal for-hire 
sector, using the average EEZ bag-limit sales (approximately $267,000) 
and dealer proportions (approximately 11 percent state dealer sales if 
the North Carolina and South Carolina proportion is applied throughout 
and 34 percent otherwise), the reduction in bag limit sales will be 
approximately $175,000-$238,000. For the non-Federal sector, using the 
average EEZ bag-limit sales (approximately $1.921 million) and dealer 
proportions (approximately 23-percent state dealer sales if the North 
Carolina and South Carolina proportion is applied throughout and 35 
percent otherwise), the reduction will be approximately $1.246 million 
to $1.483 million. These values equate to approximately a 10-13 percent 
reduction in average annual for-hire fish-sales revenues ($175,000-
$238,000/159 vessels/$11,568 total average annual revenues) and 
approximately a 4-5 percent reduction in average annual revenues to 
non-federally permitted vessels ($1.246-$1.483 million/1,439 vessels/
$21,317 total average revenues).
    The transference of these revenues to the Federal commercial 
snapper-grouper sector will result in an estimated increase of 
approximately 9 percent in nominal ex-vessel revenues per year ($2.4 
million/717 vessels/$38,000 average annual revenues) if compatible 
regulations are adopted by all states, and from 5 percent to 6 percent 
if no states adopt compatible regulations ($1.422-$1.729 million/717 
vessels/$38,000 average annual revenues).
    The gear requirements to minimize the incidental take impact on sea 
turtles and smalltooth sawfish are estimated to increase vessel gear 
costs by $617-

[[Page 58909]]

$1,115, based on low and high estimated costs, respectively, for each 
of the 12 different pieces of required gear and assuming the vessel 
does not already possess any of the required gear. Few actual vessels 
are expected to have to incur the maximum cost, however, because most 
vessels are expected to already possess and use most of this gear or 
allowable substitutes. For-hire vessels that exclusively harvest fish 
through snorkeling or diving activities and do not possess hook-and-
line gear on-board will not have to carry the required gear. For those 
vessels that need to carry the gear, any costs will be one-time 
expenditures, subject to breakage or loss replacement.
    Three alternatives, including the status quo, were considered for 
the action to address the sale of snapper-grouper harvested under the 
bag limit. This final rule will prohibit the purchase and sale of bag-
limit fish harvested from or possessed in the EEZ by vessels that did 
not possess the Federal commercial snapper-grouper permit, and bag-
limit fish harvested in either state or EEZ waters by vessels that 
possess the Federal charter vessel/headboat permit for South Atlantic 
snapper-grouper. The first alternative, the status quo, would continue 
to allow the sale of snapper-grouper harvested under the bag limit, 
continue to allow the Federal commercial snapper-grouper quota to be 
harvested and sold by vessels that did not possess the Federal 
commercial snapper-grouper permit, continue increased commercial quota 
pressure and accelerated quota closures, result in continued adverse 
economic effects on the Federal commercial snapper-grouper sector, and 
not achieve the Council's objectives.
    The second alternative to the prohibition of sales of snapper-
grouper harvested under the bag limit would allow continued sales by 
vessels with a Federal for-hire snapper-grouper permit. While this 
would reduce the adverse economic effects on the Federal commercial 
snapper-grouper sector associated with the status quo, these effects 
would not be eliminated, thereby generating less net economic benefits 
for this sector and associated businesses than this final rule.
    Four alternatives, including the status quo, were considered for 
the action to establish a program to monitor and assess bycatch. This 
final rule will require the use of a variety of bycatch monitoring 
methods, which include observers and use of an ELB or video monitoring 
program, until the Atlantic Coastal Cooperative Statistics Program 
(ACCSP) bycatch monitoring program can be implemented. The first 
alternative to the bycatch monitoring program in this final rule, the 
status quo, would only utilize existing information, would not improve 
current capabilities to monitor and assess bycatch, and would not 
achieve the Council's objectives. The second alternative would require 
the implementation of the ACCSP bycatch monitoring program. The ACCSP 
is a cooperative state-federal program whose mission is to design, 
implement, and conduct marine fisheries statistics data collection 
programs and to integrate those data into a single data management 
system that will meet the needs of fishery managers, scientists, and 
fishermen. The ACCSP design includes data modules for catch and effort 
data, permit and vessel registration, biological data, bycatch data, 
quota monitoring data, economic data, and sociological data. These 
modules are being implemented on a priority basis consistent with 
available funding. At this time, funding is not available for 
implementation of the bycatch data module. While this program would 
generate the best data in the shortest period of time, with 
accompanying social and economic benefits, the program lacks the 
flexibility of allowing interim methods until such time as the 
preferred methods can be funded and adopted. As a result, this 
alternative would not meet the Council's objectives. The overall cost 
to implement the ACCSP bycatch monitoring program has not been 
identified.
    The third alternative to the bycatch monitoring program in this 
final rule would implement a program that is less comprehensive than 
the program selected. This program would require a variety of reporting 
and monitoring tools, including observers, logbooks, and video 
monitoring, among other methods, but would be less structured and 
systematic than the ACCSP program or the program specified by this 
final rule. The cost of this program is unknown. As a result of being 
less structured and systematic, however, this program would be expected 
to be less costly than the program selected, but would also be expected 
to result in poorer data and generate fewer long-term benefits than the 
program in this final rule.
    Three alternatives, including the status quo, were considered for 
the action to establish sea turtle and smalltooth sawfish take impact 
minimization measures. This final rule will require a number of impact 
minimization measures, including the carrying of release equipment. The 
first alternative to the final equipment requirements, the status quo, 
would not achieve the desired take-impact minimization and would not 
meet the Council's objectives.
    The second alternative to the final equipment requirements would 
require the acquisition of less costly equipment (vessels with less 
than 4 ft (1.2 m) of freeboard would be required to carry less release 
gear and vessels with more than 4 ft (1.2 m) of freeboard would have 
more gear substitution options). However, these requirements would not 
be expected to result in the same reduction in bycatch impact 
minimization for these species and, as a result, would not be expected 
to result in as much protection for the species and net economic and 
social benefits for society.
    Three alternatives, including the status quo, were considered for 
the action to establish the permit renewal period. This final rule will 
allow 1 year after permit expiration for permit renewal. The first 
alternative to the renewal period in this final rule, the status quo, 
would retain the current 60-day renewal requirement and would not 
achieve the Council's objective of increasing permit renewal 
flexibility.
    The second alternative to the renewal period in this final rule 
would allow 6 months after permit expiration for permit renewal. While 
this would add greater flexibility for permit renewal relative to the 
status quo, thereby reducing the likelihood of unintended permit loss 
and associated economic losses, this alternative would not be 
consistent with the permit renewal period of most other permits and 
would not be as flexible as the renewal period in this final rule. 
Having common renewal periods makes it possible to renew all permits at 
the same time, decreases the burden associated with permit renewal, and 
decreases the possibility of unintended permit loss due to non-renewal.
    Seven alternatives, including the status quo, were considered for 
the action to establish options for transfer provisions for permits 
owned by corporations comprised of family members. This final rule will 
allow the transfer of the permit to a corporation comprised solely of 
immediate family members. Five of the alternatives are variations of 
the transfer provisions of the final rule and vary by differences in 
required action if the requirement for the submission of the annual 
corporate report includes shareholders not listed on the original 
permit application. The first alternative to the transfer provisions of 
this final rule, the status quo, would continue to require a two-for-
one permit exchange in order for a

[[Page 58910]]

permit holder to incorporate their business operation and change the 
ownership of the permit to the corporation. Current permit holders 
would be prevented from receiving the tax and other financial benefits 
of incorporation without incurring the added expense of purchasing a 
second snapper-grouper permit. Because this restriction was outside the 
scope of the Council's original intent for the two-for-one permit 
transfer requirement, maintaining the status quo would not achieve the 
Council's objectives.
    The second alternative to the transfer provisions of this final 
rule would treat the addition of family members as corporate 
shareholders the same as non-family members. Thus, once a permit is 
transferred to a corporation, renewal of the permit would not be 
restricted by change in shareholders. This alternative would allow the 
most liberal transfer flexibility but would not preserve the Council's 
intent to promote family-owned fishing businesses.
    The third alternative to the transfer provisions of this final rule 
would not allow a permit to be renewed and transferred if the annual 
corporate report showed a shareholder not listed on the original 
corporate documentation. This alternative would be the most restrictive 
of the sub-set of alternatives that allow family incorporation. Because 
this alternative would eliminate the flexibility to change corporate 
shareholders even among family members, this alternative would result 
in less economic benefits than this final rule.
    The fourth alternative to the transfer provisions of this final 
rule would require a two-for-one transfer if the annual corporate 
report showed a shareholder not listed on the original corporate 
documentation. This requirement would increase the cost of transfer 
because of the cost of a second permit, estimated to cost between 
$9,000 and $21,000, and generate less net economic benefits than this 
final rule.
    The fifth alternative to the transfer provisions of this final rule 
would require either a two-for-one transfer or a transfer back to 
person who is an immediate family member of the permit holder who 
originally transferred the permit to the family corporation if the 
annual corporate report showed a shareholder not listed on the original 
corporate documentation. This requirement would either increase the 
cost of transfer or eliminate the tax and financial benefits of 
incorporation and, thus, generate less net economic benefits than this 
final rule.
    The sixth alternative to the transfer provisions of this final rule 
would eliminate the two-for-one permit transfer requirement. Permit 
holders would be able to transfer their permit to corporations, family 
owned or otherwise, and freely change shareholders without incurring 
the cost of obtaining an additional permit. While this would create the 
most flexible transfer conditions, it would eliminate the ability to 
reduce the size of the commercial snapper-grouper fleet through permit 
renewal requirements. While the optimal fleet size to maximize social 
and economic benefits to the nation has not been identified, the 
fishery is believed by the Council to still be overcapitalized and 
further contraction is necessary. Thus, this alternative would generate 
less net economic benefits than this final rule.
    In addition to the actions discussed above, Amendment 15B 
considered alternatives to establish allocation ratios for snowy 
grouper and red porgy, and management reference points and stock status 
criteria for golden tilefish. These alternatives are discussed in the 
following paragraphs.
    Four alternatives, including the status quo, were considered for 
the action to set the snowy grouper allocation, which was necessary to 
establish the commercial quota and recreational allocation. The final 
action will set the allocation to the recreational sector at 5 percent, 
resulting in a commercial allocation of 95 percent. The first 
alternative to the final allocation, the status quo, would not 
establish commercial and recreational allocations. Because allocations 
are necessary to quantify the commercial quota, this alternative would 
not achieve the Council's objective.
    The second alternative to the final snowy grouper allocation would 
set the recreational allocation at 7 p