International Fisheries; South Pacific Tuna Fisheries; Procedures to Request Licenses and a System to Allocate Licenses, 36619-36628 [2010-15642]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 75, Number 123 (Monday, June 28, 2010)]
[Proposed Rules]
[Pages 36619-36628]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15642]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 300

[Docket No. 100507218-0219-01]
RIN 0648-AY91


International Fisheries; South Pacific Tuna Fisheries; Procedures 
to Request Licenses and a System to Allocate Licenses

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

ACTION: Proposed rule; request for comments.

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SUMMARY: Pursuant to its authority under the South Pacific Tuna Act of 
1988 (SPTA), NMFS proposes regulations to modify the procedures that 
U.S. purse seine vessels use to request fishing licenses to fish in 
areas managed under the SPTA. This rule would also establish a system 
for allocating licenses in the event more applications are received 
than there are licenses available. Such an allocation system is needed 
because the number of applications is approaching the number of 
available licenses, and may exceed that number. The proposed license 
allocation system would include objective criteria to be used by NMFS 
in prioritizing among license applicants. The license application 
procedures would be modified in accordance with the allocation system, 
and would be designed to provide license holders and prospective 
license applicants with a clear and certain regulatory process. The 
regulations for vessels licensed under the SPTA would also be modified 
to require that the vessel monitoring system units (VMS units), also 
known as mobile transmitting units, installed and carried on the 
vessels are a type that is NMFS-approved.

DATES: Comments must be received in writing by August 12, 2010.

ADDRESSES: You may submit comments on this proposed rule, identified by 
0648-AY91, and the regulatory impact review (RIR) prepared for the 
proposed rule, by any of the following methods
     Electronic submissions: Submit all electronic public 
comments via the

[[Page 36620]]

Federal e-Rulemaking portal, at https://www.regulations.gov.
     Mail: Michael D. Tosatto, Regional Administrator, NMFS 
Pacific Islands Regional Office (PIRO), 1601 Kapiolani Blvd., Suite 
1110, Honolulu, HI 96814. Include the identifier ``0648-AY91'' in the 
comments.
    Instructions: All comments received are part of the public record 
and generally will be posted to https://www.regulations.gov without 
change. No comments will be posted for public viewing until after the 
comment period has closed. All personal identifying information (for 
example, name and address) voluntarily submitted by the commenter may 
be publicly accessible. Do not submit confidential business information 
or otherwise sensitive or protected information. NMFS will accept 
anonymous comments (if submitting comments via the Federal e-Rulemaking 
portal, enter ``N/A'' in the relevant required fields if you wish to 
remain anonymous). Attachments to electronic comments will be accepted 
in Microsoft Word or Excel, WordPerfect, or Adobe PDF file formats 
only.
    A certification prepared under authority of the Regulatory 
Flexibility Act (RFA) is included in the Classification section of the 
SUPPLEMENTARY INFORMATION section of this proposed rule.
    Copies of the RIR prepared for this proposed rule are available at 
https://www.fpir.noaa.gov/IFD/ifd_documents_data.html or may be 
obtained from William L. Robinson, Regional Administrator, NMFS PIRO 
(see address above).
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
proposed rule may be submitted to William L. Robinson, Regional 
Administrator, NMFS PIRO (see address above) and by e-mail to David_Rostker@omb.eop.gov or fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Tom Graham, NMFS PIRO, 808-944-2219.

SUPPLEMENTARY INFORMATION:

Electronic Access

    This proposed rule is also accessible at https://www.gpoaccess.gov/fr.

Background

    The U.S. purse seine fishery in the western and central Pacific 
Ocean (WCPO) is regulated primarily under the authority of the South 
Pacific Tuna Act of 1988 (SPTA) (16 U.S.C. 973-973r), which NMFS has 
implemented at 50 CFR part 300, subpart D. The SPTA was enacted to 
implement the Treaty on Fisheries between the Governments of Certain 
Pacific Island States and the Government of the United States of 
America and its annexes, schedules, and implementing agreements, as 
amended (hereafter ``the Treaty''). This treaty is between the United 
States and 16 Members of the Pacific Islands Forum Fisheries Agency. 
The Treaty governs the conduct of U.S. fishing vessel operations in the 
Treaty Area, as defined at 50 CFR 300.31, and which encompasses 
approximately 10 million square miles (26 million square kilometers) of 
the WCPO. The Treaty allows U.S. purse seine vessels access to a large 
portion of the WCPO by authorizing, and regulating through a licensing 
system, U.S. purse seine vessels operations within all or part of the 
exclusive economic zones (EEZs) of the 16 Pacific Island Parties (PIPs) 
to the Treaty. Licenses to operate in the Licensing Area under the 
Treaty are issued by the Pacific Islands Forum Fisheries Agency (FFA), 
based in Honiara, Solomon Islands, which acts as the Treaty 
Administrator on behalf of the PIPs. The Licensing Area comprises the 
entire Treaty Area, with the exception of areas subject to the 
jurisdiction of the United States and areas closed to fishing under the 
Treaty. U.S. purse seine vessels licensed under the Treaty are used to 
target skipjack tuna and yellowfin tuna.
    The Treaty and SPTA also allow U.S. longline vessels and U.S. 
vessels fishing for albacore by the trolling method to fish in the high 
seas portion of the Treaty Area. However, such vessels are not subject 
to the Treaty's or SPTA's licensing requirements, and do not fall under 
the actions proposed in this rule.
    The Treaty entered into force in 1988 following ratification by the 
United States and the PIPs. The Treaty was renewed for ten years in 
1993, and again in 2003 for 10 more years (through June 14, 2013). 
Currently, the Treaty allows for a maximum of 45 licenses to U.S. purse 
seine fishing vessels to fish in the Licensing Area of the Treaty. Of 
the 45 licenses, 5 are reserved for ``joint venture'' arrangements with 
PIPs. The Licensing Area includes all or part of the EEZs of the 
following countries: Australia, Cook Islands, Federated States of 
Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, 
Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and 
Vanuatu. Treaty licenses are issued by the FFA, but license 
applications are first submitted to, and must be approved by, NMFS 
before being forwarded to the FFA. Under current practices, NMFS 
ensures that applications are complete, and forwards them to the FFA on 
a first-come, first-served basis.

Recent Developments in the Fishery

    The number of U.S. purse seine vessels licensed under the Treaty 
has varied widely since its entry into force in 1988. The number of 
licensed vessels reached a high of 49 in 1994 (at which time the Treaty 
authorized up to 55 licenses, with 5 reserved for joint ventures), and 
a low of 11 in 2007. As of May 2010, 38 licenses had been issued for 
the current licensing period (June 15, 2009 through June 14, 2010). No 
joint venture licenses have ever been issued under the Treaty.

Advance Notices of Proposed Rulemakings and Control Dates

    On March 28, 2008, NMFS issued an advance notice of proposed 
rulemaking (ANPR) (73 FR 16619), to establish a control date for 
participation in the U.S. purse seine fishery managed under the SPTA 
(hereafter, ``WCPO purse seine fishery''). One purpose of the ANPR was 
to notify vessel owners and operators that attempts to enter the WCPO 
purse seine fishery after the control date of March 28, 2008, would not 
assure a vessel of being granted entry into or future participation in 
the fishery if all available licenses have been issued, or if NMFS 
limits the number of available licenses or imposes other management 
measures in the fishery.
    Prior to the March 2008 ANPR, on August 15, 2005, NMFS issued an 
ANPR (70 FR 47782) that established a control date of June 2, 2005, for 
persons contemplating entry into the purse seine fishery in the U.S. 
EEZ in the western Pacific region (the control date also applied to 
persons interested in the longline fishery in the western Pacific 
region). The June 2, 2005, control date is limited to fishing vessels 
that operate within the U.S. EEZ, and does not affect fishing vessels 
operating elsewhere in the Treaty Area. In contrast, the March 28, 
2008, control date applies to all purse seine vessels subject to the 
Treaty and the SPTA; that is, to purse seine vessels operating anywhere 
on the high seas in the Treaty Area or in the EEZs of the 16 PIPs.
    Both the June 2, 2005, and March 28, 2008, control dates remain in 
effect.
    In addition to establishing a control date for entry into the WCPO 
purse seine fishery, the March 28, 2008, ANPR solicited comments and 
input on possible criteria and procedures that NMFS could use to 
review, order, and process license applications. NMFS received five 
sets of such comments, which it has considered in developing this 
proposed rule. NMFS has

[[Page 36621]]

incorporated some of the suggestions contained in those comments, or 
variations of those suggestions, into the proposed rule. Several 
comments were on issues outside the scope of this proposed rule. The 
comments received are summarized as follows:
    Two commenters suggested that, with respect to the transferability 
of licenses among vessels and vessel owners: (1) in the case where a 
vessel licensed under the Treaty is sold to U.S. interests, the license 
should be transferable to the new owner; (2) in the case where a vessel 
licensed under the Treaty sinks, the vessel owner should be allowed 
five years to replace the vessel and retain for the new vessel the 
license associated with the sunk vessel; and (3) in the case where a 
vessel licensed under the Treaty is sold to foreign interests, the 
original owner should be allowed three years to replace the vessel and 
retain for the new vessel the license associated with the sold vessel.
    One commenter recommended that priority consideration be given to 
owners of vessels that were licensed under the Treaty when the number 
of licensed vessels was at its low point in 2007.
    One commenter suggested that five to seven licenses should be set 
aside, as they expire, for small business owners, and that license 
eligibility requirements include such things as: (1) the vessel hull 
being built in the United States; (2) a history of participation in the 
Treaty; (3) a higher percentage of U.S. citizen ownership of the 
vessel; and (4) a history of landing fish in U.S. ports, including 
American Samoa, Guam, and Puerto Rico.
    One commenter stated that the most reasonable, fair, and 
implementable criteria and procedures for allocating licenses would 
take into account: (1) the origin of the purse seine vessel's hull; (2) 
a history of good-standing participation in the existing and pre-
existing treaties; (3) the ownership level of the applicant; (4) the 
record of fishing landings (unloadings) or transshipments via U.S.-
controlled ports such as American Samoa, Guam, and Puerto Rico; and (5) 
a history of compliance with relevant U.S. treaties and U.S. Coast 
Guard regulations.
    Two commenters recommended that a moratorium be placed on the 
building of new tuna vessels, with one commenter qualifying that 
recommendation to say that new vessels may be built to replace vessels 
that have sunk or been scrapped.
    One commenter expressed disappointment with the recent U.S. support 
for the building of new vessels in Taiwan and legitimizing the transfer 
of recently built foreign vessels to U.S. flag without full regard to 
the total number of vessels and fishing licenses in the western and 
central Pacific region.
    One commenter noted, with respect to the establishment of a control 
date for the WCPO purse seine fishery, that vessel owners need advance 
notice of those types of things, and that an equitable control date 
would be June 14, 2008, the last day in the then-current Treaty 
licensing period.

Scope of the Proposed Action

    NMFS notes that the March 28, 2008, ANPR stated that NMFS was 
considering the possible need to limit the number of vessels, or take 
other actions in the WCPO purse seine fishery, in order to implement 
the obligations of the United States as a Contracting Party to the 
Convention on the Conservation and Management of Highly Migratory Fish 
Stocks in the Western and Central Pacific Ocean. The scope of this 
proposed rule does not include any such actions. Rather, as described 
further below, it is limited to: (1) establishing a system to allocate 
licenses in the event that more applications are received than there 
are licenses; (2) modifying the procedures used to request licenses and 
the procedures used by NMFS to process such requests; and (3) modifying 
the existing requirements regarding the installation, carrying, and 
operation of VMS units to require that such units be a type that is 
NMFS-approved.

Description of the Proposed Action

    Under section 973g of the SPTA, the Secretary of Commerce 
(Secretary) may establish a system of allocating Treaty licenses in the 
event more applications are received than there are licenses available. 
In part because the number of licenses issued is approaching the number 
of licenses available under the Treaty, NMFS proposes to establish such 
a system.
    Section 973g of the SPTA also authorizes the Secretary to establish 
procedures for vessel operators (``operator'' is defined under the SPTA 
to mean any person who is in charge of, directs, or controls a vessel, 
including the owner, charterer, and master) to request licenses from 
the Secretary to fish in the Treaty's Licensing Area. Such procedures 
have been established by NMFS, on behalf of the Secretary, at 50 CFR 
300.32. In order to accommodate the allocation system that this 
proposed rule would establish, this action would also modify the 
procedures used by applicants to request licenses along with the 
procedures used by NMFS to process those requests. The proposed 
modifications to the procedures are designed in part to provide license 
holders and prospective license applicants with a clear and certain 
regulatory process.
    The FFA, as Treaty Administrator, issues licenses only to vessels 
for which the license applications have first been approved by NMFS on 
behalf of the Secretary. Licenses are issued on an annual basis, with 
the licensing period starting June 15th of each year. This proposed 
rule would establish license application and review procedures up to 
the point of approval by NMFS for forwarding to the Treaty 
Administrator.
    The main elements of the proposed rule are described below, 
starting with the license application and review procedures, followed 
by the license allocation system (including transferability 
provisions), and closing with the VMS-related requirements.

Proposed License Application and Review Procedures

    (1) The distinction between joint venture licenses (licenses for 
fishing activities designed to promote maximization of the benefits 
generated for the PIPs, of which there are five available) and 
``general licenses'' (the remaining licenses, of which there are 40 
available) would be clarified, and separate application procedures 
would be established for the two license types.
    (2) To obtain approval from NMFS for a joint venture license, in 
addition to submitting a complete application, as for a general 
license, an applicant would have to obtain initial approval from the 
FFA, as Treaty Administrator, as well as documentation from the 
relevant PIP or PIPs providing concurrence for the issuance of a joint 
venture license for the vessel. Upon receipt of a complete application 
for a joint venture license, NMFS would process and approve the 
application as it would for a general license, except that it would not 
issue pre-approvals, as described below for general licenses. NMFS 
would approve applications for joint venture licenses on a first-come, 
first-served basis, based on the date of initial approval by the FFA.
    (3) To provide an opportunity for applicants to receive earlier and 
greater certainty on the status of their general license applications 
for a given licensing period, applicants would be allowed to seek and 
receive pre-approval of their applications. They would do so by 
submitting expressions of interest earlier than the submission of 
complete applications. A pre-approval would serve to temporarily 
reserve an application approval spot until the time that complete 
applications are due.

[[Page 36622]]

Whether a pre-approval would be issued for a given application would 
depend on the outcome of the allocation process, described below. 
Because of time constraints associated with implementing this rule, 
pre-approvals would not be issued for the 2011-2012 licensing period.
    (4) Dates by which expressions of interest and complete 
applications for general licenses must be received by NMFS would be 
established. For a given licensing period with the exception of the 
2011-2012 licensing period, for which pre-approvals would not be issued 
the deadline for submitting expressions of interest would be June 1st 
of the year preceding the year in which the licensing period begins. 
The deadline for submitting complete applications would be February 5th 
of the year in which the licensing period begins. Comparable due dates 
would be established for applications for licenses that become 
available in the middle of a licensing period.
    (5) Dates by which NMFS would decide on pre-approvals and approvals 
for general licenses and notify applicants of those decisions would be 
established. With the exception of the 2011-2012 licensing period, for 
which pre-approvals would not be issued, NMFS would pre-approve 
applications by July 16th of the year preceding the year in which the 
licensing period begins, and notify applicants of its decisions by July 
26th of the same year. NMFS would approve applications by March 7th of 
the year in which the licensing period begins, and notify applicants of 
its decisions by March 17th of the same year.
    (6) A process to appeal NMFS' pre-approval and approval decisions 
would be established. Appeals would have to be submitted in writing 
within 14 days of the notice of NMFS' decision. The initial decision on 
an appeal would be made by a designee of the NMFS Pacific Islands 
Regional Administrator within 30 days of the appeal. Within 10 days of 
notice of the initial decision, the applicant could request a review of 
the initial decision. The final decision on an appeal would be made by 
the Assistant Administrator for Fisheries, NOAA, or a designee, within 
30 days of the request for review. The final decision would constitute 
the final administrative action of the Department of Commerce.
    (7) Interim procedures would be established for the 2011-2012 
licensing period, as the proposed rule would likely not become 
effective in time for the new procedures to be fully applied for that 
licensing period. These procedures would not include any provisions 
regarding pre-approvals. Instead, the application process would start 
with the February 5, 2011, deadline for submitting complete 
applications.

Proposed License Allocation System

    (1) The following criteria would be used to prioritize applicants 
for general licenses. Based on this prioritization, NMFS would issue 
pre-approvals for up to 40 applications for general licenses.
    First priority would be given to applications for vessels that have 
a valid Treaty license on the due date for expressions of interest. 
Also included in the first priority pool would be applications for 
vessels licensed in the current or previous two licensing periods, but 
that were lost or were destroyed. In other words, first priority would 
be given to license renewals, provided that the vessel is the same. In 
the event that a licensed vessel is lost or destroyed, the applicant 
would be reserved an approval spot for the licensing period in which 
the vessel was lost, and for the two subsequent licensing periods, 
provided that the ownership of the replacement vessel is identical to 
the ownership of the lost vessel.
    Second priority would be given to applicants according to a ranking 
scheme in which points are assigned to an applicant as follows: (a) 15 
points would be assigned if the vessel has been issued, or will be 
issued by the time application approvals are issued, in accordance with 
applicable U.S. Coast Guard regulations, a valid U.S. Coast Guard 
Certificate of Documentation with a fishery endorsement (among the 
eligibility criteria for receiving a fishery endorsement are that the 
vessel must have been built in the United States, and if rebuilt, it 
must have been rebuilt in the United States); (b) one point would be 
assigned for each licensing period, starting with the 1988-1989 
licensing period, in which a Treaty license had been issued for the 
vessel, for a total of no more than 10 points; (c) one point would be 
assigned for each calendar year in which at least 3,000 mt of fish were 
landed or transshipped from the vessel in U.S. ports (including ports 
located in any of the U.S. States, commonwealths, territories, or 
possessions) starting in 1988 and ending in the year prior to the year 
in which the applied-for licensing period starts, for a total of no 
more than 5 points; and (d) if application of the foregoing criteria 
results in a tie, priority would be given to the vessel from which the 
greatest amount of fish, by weight, was landed or transshipped in U.S. 
ports (including ports located in any of the U.S. States, 
commonwealths, territories, or possessions) starting in 1988 and ending 
in the year prior to the year in which the applied-for licensing period 
starts. If there is still a tie, priority would be given by a lottery 
conducted by the NMFS Pacific Islands Regional Administrator.
    (2) With respect to joint venture licenses, NMFS would not pre-
approve applications or prioritize applications using the scheme 
established for general licenses. Instead, NMFS would approve joint 
venture license applications on a first-come, first-served basis, based 
on the date of initial approval by the FFA.
    (3) With respect to the interim procedures that would be 
established for the 2011-2012 licensing period, NMFS would apply the 
same prioritization scheme and criteria as it would for subsequent 
licensing periods, but it would do so only after receiving the complete 
applications that would be due February 5, 2011.
    (4) The proposed rule would clarify that application approvals from 
NMFS are not transferable among vessel owners or operators or 
applicants. It would, however, allow limited transferability of 
application approvals among vessels. Specifically, if a general or 
joint venture license has been issued to a vessel, and has been valid 
for at least 365 consecutive days, and all required fees to the FFA for 
the vessel have been paid, the vessel operators would be able to 
request that the license be transferred to a different vessel. Such a 
transfer would only be allowed if the ownership of the replacement 
vessel is identical to that of the licensed vessel, and the transferee 
vessel otherwise meets the requirements for licensing under 50 CFR part 
300 and the SPTA.
    Until NMFS issues a final rule to establish a system for allocating 
licenses and/or to modify the license application and processing 
procedures, and that rule becomes effective, NMFS will continue its 
practice of processing and forwarding completed applications to the 
Treaty Administrator based upon order of receipt.
    Neither the Treaty nor the SPTA include criteria or guidelines as 
to how licenses should be allocated among prospective participants. In 
the absence of such guidance, NMFS solicited public input through the 
ANPR on possible criteria that could be used to order license 
applications. In reviewing public comment, NMFS considered the 
principles set forth in the National Standards of the Magnuson-Stevens 
Fishery Conservation and Management Act, which although not directly 
applicable to the SPTA, provide guidance on the equitable allocation of 
fishing privileges among U.S. fishermen.

[[Page 36623]]

In particular, National Standard 4 states, in relevant part (16 U.S.C. 
1851(a)(4)):

    If it becomes necessary to allocate or assign fishing privileges 
among various United States fishermen, such allocation shall be (A) 
fair and equitable to all such fishermen; (B) reasonably calculated 
to promote conservation; and (C) carried out in such manner that no 
particular individual, corporation, or other entity acquires an 
excessive share of such privileges.

    Some of the public comments made in response to the ANPR advocated 
an allocation system that favors vessels with longer and more active 
histories in the fishery. NMFS generally agrees that a system that 
recognizes a demonstrated history of active participation in the 
fishery helps ensure that licenses will be productively utilized, and 
that resulting catches will generate economic and social benefits to 
the nation. Under the proposed allocation system, in any given year, 
first priority would be given to vessels that are currently in the 
fishery that is, to license renewals. One of the reasons for this 
prioritization is that in a fishery that requires such large 
investments in order to participate (new purse seine vessels cost tens 
of millions of dollars), participants should be given reasonable 
assurances that they will be able to continue to participate in the 
fishery for a reasonable amount of time. At the second tier of 
prioritization, after license renewals, the proposed allocation system 
includes three criteria. The first would favor vessels with fishery 
endorsements, which requires that the vessel be built in the United 
States, or if rebuilt, then rebuilt in the United States. This is 
consistent with some of the public comments on the ANPR. The second 
criterion would favor vessels with the longest histories of 
participation in the WCPO purse seine fishery. The rationale for this 
is partly the same as described for the first-tier prioritization 
(favoring license renewals). Also, it supports the notion that those 
who have invested more in the fishery in the past should be afforded 
greater opportunity to participate in the future. This concept was 
prevalent in the public comments in response to the ANPR. The third 
criterion would favor vessels with the longest histories of landing or 
transshipping fish in U.S. ports while participating in the WCPO purse 
seine fishery. The rationale for giving priority to those who have 
landed or transshipped fish in U.S. ports (i.e., versus foreign ports) 
is that it is expected to result in more fish being landed or 
transshipped at U.S. ports in the future, thereby possibly generating 
greater domestic economic benefits than would otherwise be the case. 
This concept also was suggested in the public comments on the ANPR. 
Finally, the proposed tie-breaking second-tier criterion would favor 
participants that landed or transshipped the most fish in U.S. ports 
while participating in the WCPO purse seine fishery. The rationale for 
this is the same as for the previous criterion that is, it would be 
expected to result in more fish being landed or transshipped in U.S. 
ports in the future, with attendant economic benefits to the Nation.
    NMFS recognizes that the proposed license allocation system may 
potentially limit entry of new participants in the WCPO purse seine 
fishery, while encouraging continued participation of historically 
active participants that are already in the fishery (in any given 
licensing period, first priority would be given to vessels that had 
licenses during the previous licensing period). Nevertheless, NMFS 
believes that the proposed allocation system would provide 
opportunities for new participants to enter the fishery. For example, 
occasionally license holders can be expected to depart from the WCPO 
purse seine fishery with their vessels and move to other purse seine 
fisheries, or sell their interests in Treaty-licensed vessels, thereby 
making licenses available for reallocation. NMFS will continually 
monitor the WCPO purse seine fishery with respect to the turnover of 
participants, and will consider further regulatory action as 
appropriate.

Proposed VMS-Related Requirements

    The proposed rule would modify the regulations at 50 CFR 300.45, 
which relate to the installation, carrying, and operation of VMS units 
on vessels licensed under the SPTA. The regulations currently require 
that the VMS units installed and carried on board vessels consist of 
hardware and software that are type-approved by the Treaty 
Administrator. This is consistent with the terms of the Treaty, which 
mandates that the VMS units used on licensed vessels be of a type 
approved by the Treaty Administrator. The regulations would be modified 
to require that the hardware and software that constitute the VMS units 
be type-approved by both the Treaty Administrator and NMFS. The purpose 
of the proposed change is to ensure that the VMS units used on licensed 
vessels are compatible with, and meet the technical standards of, the 
vessel monitoring system administered by NMFS, as well as the vessel 
monitoring system administered by the Treaty Administrator.
    NMFS publishes separately lists of the VMS units that it has type-
approved. The current type-approval lists can be obtained from the NOAA 
Office of Law Enforcement, 8484 Georgia Avenue, Suite 415, Silver 
Spring, MD 20910; by telephone at 888-210-9288; or by fax at 301-427-
0049.
    To be considered, comments on this proposed rule must be received 
by August 12, 2010, not postmarked or otherwise transmitted by that 
date.

Classification

    The NMFS Assistant Administrator has determined that this proposed 
rule is consistent with the SPTA and other applicable laws, subject to 
further consideration after public comment.

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.

Regulatory Flexibility Act

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this proposed rule, if adopted, would not have a 
significant economic impact on a substantial number of small entities.

    The proposed rule includes three elements. The first element 
would modify the procedures used by U.S. purse seine vessels to 
apply for licenses to fish in the area governed under the SPTA. Such 
licenses are required for U.S. purse seine vessels that operate 
anywhere in a large portion of western and central Pacific Ocean 
(WCPO), including areas of high seas and areas under foreign 
jurisdiction. The second element would establish a system for 
allocating such licenses in the event more applications are received 
than there are licenses available. Such an allocation system is 
needed because the number of annual applications is approaching the 
number of available licenses (40, plus 5 under joint-venture 
arrangements) and may exceed that number. The proposed license 
allocation system would include objective criteria to be used by the 
National Marine Fisheries Service (NMFS) in prioritizing among 
license applicants. The license application procedures would be 
modified in accordance with the allocation system, and would be 
designed to provide license holders and prospective license 
applicants with a clear and certain regulatory process. The third 
element of the proposed rule would modify the regulations for purse 
seine vessels licensed under the SPTA to require that the vessel 
monitoring system (VMS) units that are installed and carried on 
vessels be a type that is NMFS-approved.
    The fleet of U.S. purse seine vessels licensed under the SPTA 
currently consists of 37 vessels. Most or all of the businesses that 
operate these vessels are large entities as defined by the 
Regulatory Flexibility Act. However, it is possible that one or a 
few of

[[Page 36624]]

these fish harvesting businesses meet the criteria for small 
entities; that is, they are independently owned and operated and not 
dominant in their fields of operation, and have annual receipts of 
no more than $4.0 million. Based on available data, it is not 
possible to determine with any certainty how many small entities are 
in the fleet, and no attempt is made here to determine whether a 
substantial number of small entities would be impacted by the 
proposed rule. Instead, this certification is based on a finding 
that the proposed rule would not have significant economic impacts 
on affected entities.
    The VMS element of the proposed rule would not have any economic 
impact on affected entities because it overlaps completely with 
regulations recently issued under authority of the Western and 
Central Pacific Fisheries Convention Implementation Act. 
Specifically, regulations at 50 CFR 300.219, which became effective 
on April 21, 2010, established VMS requirements for U.S. vessels 
used to fish on the high seas in the Convention Area. Among the 
requirements is that the vessels carry VMS units that are type-
approved by NMFS. The type-approvals under those regulations are 
expected to be the same as those that would be established under 
this proposed rule, because they are both for the purpose of 
tracking vessels in the NMFS VMS. Because U.S. vessels licensed 
under the SPTA are also subject to the requirements at 50 CFR 
300.219, they are already subject to the VMS requirements of this 
proposed rule.
    The license application procedures included in the proposed rule 
would add a step in the application process for applicants choosing 
to submit ``expressions of interest'' for pre-approval of 
applications prior to submitting their complete applications. This 
step would not involve any change in application fees or other fees, 
but for applicants that voluntarily submit expressions of interest, 
it would increase the public reporting burden associated with the 
information collected as part of the license application process 
(the collection of information is approved by the Office of 
Management and Budget under control number 0648-0218). For vessels 
already in the fleet (license renewals), the additional time burden 
associated with these expressions of interest is estimated to 
average 15 minutes per vessel per year. For new applicants, the 
burden is estimated to average 120 minutes per vessel per year. The 
cost associated with this burden is discountable when compared to 
gross receipts or total operating costs for even the smallest of the 
affected entities.
    The license allocation system included in the proposed rule 
would establish a prioritization scheme that would be applied in the 
event more applications are received than there are licenses 
available under the existing limit of 40 non-joint-venture licenses. 
First priority would be given to vessels already with licenses that 
is, to license renewals. This element of the proposed rule would not 
cause any adverse economic impacts on license holders, and would 
help to ensure their future participation in the fishery.
    Based on these findings, the Chief Counsel for Regulation at the 
Department of Commerce has concluded that the proposed rule would 
not have a significant economic impact on a substantial number of 
small entities. As a result, an initial regulatory flexibility 
analysis is not required and none has been prepared.

Paperwork Reduction Act

    This proposed rule contains a collection-of-information requirement 
subject to the Paperwork Reduction Act (PRA). This collection has been 
approved by the Office of Management and Budget (OMB) under control 
number 0648-0218. Public reporting burden for this collection of 
information, called ``South Pacific Tuna Act,'' is estimated to 
average: (a) for the complete license application form, 15 minutes per 
response (with one response per year); (b) for the regional register 
application / VMS registration form, 45 minutes per response (with 1 
response per year); (c) for the purse seine transshipment logsheet, 60 
minutes per response (with 5 responses per year); and (d) for the 
unloading logsheet, 30 minutes per response (with 6 responses per 
year). These estimates include the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Send comments regarding this burden estimate, or any other aspect of 
this data collection, including suggestions for reducing the burden, to 
NMFS (see ADDRESSES) and by e-mail to David_Rostker@omb.eop.gov or fax 
to 202-395-7285.
    The proposed rule would require changes to the OMB-approved 
collection of information. Specifically, additional information would 
be required from prospective license applicants choosing to submit 
``expressions of interest'' for pre-approval of license applications. 
Expressions of interest would be due from prospective license 
applicants by a specified date each year, prior to the due date for 
complete license application packages. The information provided in 
expressions of interest would be used by NMFS to determine eligibility 
for licenses. Public reporting burden for the expressions of interest 
is expected to average an additional 15 minutes per response for 
licenses being renewed, and 120 minutes per response for initial 
licenses, including the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information. This proposed 
change to the collection of information will be subject to review by 
OMB.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to 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 300

    Administrative practice and procedure, Fish, Fisheries, Fishing, 
Marine resources, Reporting and recordkeeping requirements, Treaties.

    Dated: June 22, 2010.
Eric C. Schwaab,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR part 300 as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart D--South Pacific Tuna Fisheries

    1. The authority citation for 50 CFR part 300, subpart D continues 
to read as follows:

    Authority: 16 U.S.C. 973-973r.
    2. In Sec.  300.31, a definition of ``State'' is added, in 
alphabetical order, and the definition of ``Vessel Monitoring System 
Unit'' or ``VMS unit'' is revised, to read as follows:


Sec.  300.31  Definitions.

* * * * *
    State means each of the several States of the United States, the 
District of Columbia, the Commonwealths of Puerto Rico and the Northern 
Mariana Islands, American Samoa, the Virgin Islands, Guam, and any 
other commonwealth, territory, or possession of the United States.
* * * * *
    Vessel Monitoring System Unit or VMS unit, sometimes known as a 
``mobile transmitting unit,'' means Administrator-approved and NMFS-
approved VMS unit hardware and software that is installed on a vessel 
pursuant to Sec.  300.45. The VMS units are a component of the regional 
vessel monitoring system administered by the FFA, as well as of the 
vessel monitoring system administered by NMFS, and as such are used to 
transmit information between the vessel and the Administrator and NMFS 
and/or other reporting points designated by NMFS.
    3. Sec.  300.32 is revised to read as follows:

[[Page 36625]]

Sec.  300.32  Vessel licenses.

    (a) Each vessel fishing in the Licensing Area must have a license 
issued by the Administrator for the licensing period being fished, 
unless exempted by Sec.  300.39. Each licensing period begins on June 
15 and ends on June 14 of the following year.
    (b) Upon receipt, the license or a copy or facsimile thereof must 
be carried on board the vessel when in the Licensing Area or Closed 
Areas, and must be produced at the request of authorized officers, 
authorized party officers, or authorized inspectors. A vessel may be 
used to fish in the Licensing Area if the license has been issued but 
not yet received, provided that the license number is available on 
board.
    (c) The total number of licenses that may be issued and valid at 
any point in time is 45, five of which shall be reserved for fishing 
vessels of the United States engaged in joint venture arrangements.
    (1) For the purpose of this section, the licenses reserved for 
vessels engaged in joint venture arrangements are referred to as 
``joint venture licenses,'' and the remaining licenses are referred to 
as ``general licenses.''
    (2) A joint venture arrangement is one in which the subject vessel 
and its operators are engaged in fishing-related activities designed to 
maximize the benefits generated for the Pacific Island Parties from the 
operations of fishing vessels licensed pursuant to the Treaty, as 
determined by the Administrator. Such activities can include the use of 
canning, transshipment, vessel slipping and repair facilities located 
in the Pacific Island Parties; the purchase of equipment and supplies, 
including fuel supplies, from suppliers located in the Pacific Island 
Parties; and the employment of nationals of the Pacific Island Parties 
on board such vessels.
    (d) Licenses are issued by the Administrator. The Administrator 
will issue licenses only for applications that have been approved by 
the Regional Administrator. The Regional Administrator's approval is 
indicated by the signature of the Regional Administrator on the part of 
the application form labeled ``Schedule 1.'' Upon approval by the 
Regional Administrator of a license application, the complete 
application will be forwarded to the Administrator for consideration. 
Except as provided in paragraph (n) of this section, prior to approving 
license applications for a given licensing period, the Regional 
Administrator will issue pre-approvals that serve the purpose of 
temporarily reserving approvals up until the time complete applications 
are due to be received by the Regional Administrator.
    (e) The Regional Administrator, in his or her sole discretion, may 
approve fewer license applications than there are licenses available 
for any given licensing period or at any given time.
    (f) A pre-approval or approval issued by the Regional Administrator 
pursuant to this section:
    (1) Shall not confer any right of compensation to the recipient of 
such pre-approval or approval;
    (2) Shall not create, or be construed to create, any right, title, 
or interest in or to a license or any fish; and
    (3) Shall be considered a grant of permission to the recipient of 
the pre-approval or approval to proceed with the process of seeking a 
license from the Administrator.
    (g) A pre-approval or approval issued by the Regional Administrator 
pursuant to this section is subject to being rescinded at any time if 
the Regional Administrator determines that an administrative error has 
been made in its granting, false information has been provided by the 
applicant, or circumstances have changed such that the information 
provided by the applicant is no longer accurate, true or valid, or if 
the applicant or vessel no longer meets the requirements for licensing 
under this subpart or under the Act. NMFS will notify the applicant of 
its rescission of a pre-approval or approval within 14 days of the 
rescission. In the event that the Regional Administrator rescinds an 
approval after the license has been issued, NMFS will notify the 
Administrator of such, and request that the Administrator immediately 
revoke the license.
    (h) Application process for general licenses.
    (1) A vessel operator who satisfies the requirements for licensing 
under the Act and under this subpart may apply for a general license.
    (2) In order for a general license to be issued for a vessel, an 
applicant must submit a complete application to, and obtain an 
application approval from, the Regional Administrator.
    (3) Except for the 2011-2012 licensing period, prior to submitting 
a complete application, an applicant may request pre-approval of an 
application by the Regional Administrator by submitting an expression 
of interest. A pre-approval of an application establishes that the 
applicant is eligible to be considered for one of the available 
licenses following timely submission of a complete application. 
Although submission of an expression of interest is entirely voluntary, 
applications that have not been pre-approved might not be eligible for 
approval if the number of applications exceeds the number of available 
licenses for a given licensing period.
    (4) Except as provided in paragraph (n) of this section, in order 
to obtain a pre-approval for a given licensing period, either an 
expression of interest or a complete application must be received by 
the Regional Administrator no later than June 1st in the year preceding 
the year in which the licensing period begins.
    (5) An expression of interest must include the information listed 
below, which may be submitted by electronic or hard-copy correspondence 
following instructions provided by the Regional Administrator.
    (i) If the expression of interest is for a vessel that has a valid 
license on June 1st in the year preceding the year in which the 
licensing period begins (i.e., an anticipated renewal of the license is 
being sought), the expression of interest shall include:
    (A) The licensing period for which the license is being sought.
    (B) The current name, IRCS, and annual USCG Certificate of 
Documentation number of the vessel.
    (ii) If the expression of interest is for a vessel that does not 
have a valid license on June 1st in the year preceding the year in 
which the licensing period begins, the expression of interest shall 
include:
    (A) The licensing period for which the license is being sought.
    (B) The full name and address of each person who is, or who is 
anticipated to be, an operator of the vessel for which a license is 
sought, and for each such person, a statement of whether the person is, 
or is anticipated to be, owner, charterer, and/or master of the vessel.
    (C) A statement of whether or not the vessel to be licensed is 
known, and if it is known, the current name, IRCS, and annual USCG 
Certificate of Documentation number, if any, of the vessel.
    (D) A copy of the vessel's current USCG Certificate of 
Documentation. If the vessel has not been issued such a document, then 
a statement of whether application has been or will be made for a USCG 
Certificate of Documentation, including identification of all 
endorsements sought in such application.
    (E) If the vessel is known, a list of the licensing periods, if 
any, during which a license for the vessel was issued under this 
section.
    (F) If the vessel is known, a statement of the total amount, in 
metric tons, of any tuna species landed or transshipped from the vessel 
at United States ports,

[[Page 36626]]

including ports located in any of the States, for each of the calendar 
years 1988 through the current year.
    (6) In order to obtain an application approval for a given 
licensing period, a complete application must be received by the 
Regional Administrator no later than February 5th in the year in which 
the licensing period begins, except that in cases in which pre-
approvals are issued in accordance with paragraphs (k)(8) or (k)(9)(i) 
of this section, the complete application must be received by the 
Regional Administrator not later than the date specified by NMFS in the 
notification of such pre-approval (which will be calculated by NMFS to 
be no later than 194 days from the date of mailing of the notification 
of the pre-approval).
    (7) License application forms, which include the ``Schedule 1'' 
form and the FFA Vessel Register application form, are available from 
the Regional Administrator. The complete application must be received 
by the Regional Administrator by the date specified in paragraph (h)(6) 
of this section. An application shall not be complete, and shall not be 
subject to processing, unless it contains all of the information 
specified on the ``Schedule 1'' form and all the items listed in 
paragraphs (h)(7)(i) through (h)(7)(x) of this section, as follows:
    (i) The licensing period for which the license is requested.
    (ii) The name of an agent, located in Port Moresby, Papua New 
Guinea, who, on behalf of the license holder, will receive and respond 
to any legal process issued in accordance with the Treaty.
    (iii) Documentation from an insurance company showing that the 
vessel will be fully insured for the licensing period against all risks 
and liabilities normally covered by maritime liability insurance.
    (iv) If the owner or charterer is the subject of proceedings under 
the bankruptcy laws of the United States, a statement that the owner or 
charterer will be financially able to fulfill any and all 
responsibilities under the Treaty, Act, and regulations, including the 
payment of any penalties or fines.
    (v) A copy of the vessel's current annual USCG Certificate of 
Documentation.
    (vi) Electronic versions of full color photographs of the vessel in 
its current form and appearance, including a bow-to-stern side-view 
photograph of the vessel that clearly and legibly shows the vessel 
markings, and a photograph of every area of the vessel that is marked 
with the IRCS assigned to the vessel.
    (vii) A schematic stowage/well plan for the vessel.
    (viii) The VMS unit installation certificate, issued by the 
Administrator-authorized person who installed the VMS unit, for the VMS 
unit installed on the vessel in accordance with Sec.  300.45.
    (ix) An FFA Vessel Register application form that includes all the 
applicable information specified in the form.
    (x) In the case of an application for a vessel that did not have a 
valid license on June 1st in the year preceding the year in which the 
licensing period begins, any information under paragraph (h)(5)(ii) of 
this section that has not already been provided or that has changed 
since it was previously submitted.
    (i) Application process for joint venture licenses.
    (1) A vessel operator who satisfies the requirements for licensing 
under the Act and under this subpart may apply for a joint venture 
license.
    (2) The applicant, in coordination with one or more Pacific Island 
Parties, shall contact the Administrator to determine the specific 
information and documents that are required by the Administrator in 
order to obtain an initial approval from the Administrator for a joint 
venture license. The applicant shall submit such required information 
and documents directly to the Administrator. Once an initial approval 
is obtained from the Administrator, the applicant shall submit a 
complete application package, as described in paragraph (h)(7) of this 
section, to the Regional Administrator, along with dated documentation 
of the Administrator's initial approval, and a letter or other 
documentation from the relevant national authority or authorities of 
the Pacific Island Party or Parties identifying the joint venture 
partner or partners and indicating the Party's or Parties' approval of 
the joint venture arrangement and its or their concurrence that a joint 
venture license may be issued for the vessel.
    (j) Appeals.
    (1) Eligibility. Any applicant who is denied a pre-approval or an 
approval under this section may appeal the denial. The appeal must be 
made in writing and must clearly state the basis for the appeal and the 
nature of the relief that is requested. The appeal must be received by 
the Regional Administrator not later than 14 days after the date that 
the notice of denial is postmarked.
    (2) Appeal review. Upon receipt of an appeal, the Regional 
Administrator will appoint a designee who will review the basis of the 
appeal and issue an initial written decision. The written decision will 
be mailed to the applicant within 30 days of receipt of the appeal. If 
the appellant does not request a review within 10 days of mailing of 
the initial decision, the initial decision is the final administrative 
action of the Department of Commerce. If, within 10 days of mailing of 
the initial decision, the Regional Administrator receives from the 
appellant a written request for review of the initial decision, the 
Assistant Administrator or a designee will review the basis of the 
appeal and issue a final written decision. The final decision will be 
made within 30 days of receipt of the request for review of the initial 
decision. The decision of the Assistant Administrator or designee 
constitutes the final administrative action of the Department of 
Commerce.
    (k) Procedures used by the Secretary to review and process 
applications for general licenses. The procedures in this paragraph 
apply to the process used by NMFS, on behalf of the Secretary and in 
consultation with the Secretary of State, to review expressions of 
interest and applications, and to approve applications. For the purpose 
of this section, NMFS' approval of an application means the signing by 
the Regional Administrator of the ``Schedule 1'' part of the 
application form, indicating that the application is complete, and that 
it meets the requirements of the Act and of this subpart for forwarding 
to the Administrator. For the purpose of this section, NMFS' pre-
approval of an application means that the Regional Administrator has 
initially determined that the applicant is eligible for a general 
license, but that the application has not yet been approved for 
forwarding to the Administrator.
    (1) NMFS will pre-approve no more applications for a given 
licensing period than there are licenses available for that licensing 
period.
    (2) NMFS will approve no more applications for a given licensing 
period than there are licenses available for that licensing period.
    (3) NMFS will not approve a license application if it determines 
that:
    (i) The application is not in accord with the Treaty, Act, or 
regulations;
    (ii) The owner or charterer is the subject of proceedings under the 
bankruptcy laws of the United States, and reasonable financial 
assurances have not been provided to the Secretary that the owner or 
charterer will be financially able to fulfill any and all 
responsibilities under the Treaty, Act, and regulations, including the 
payment of any penalties or fines;
    (iii) The owner or charterer has not established to the 
satisfaction of the Secretary that the vessel will be fully

[[Page 36627]]

insured for the licensing period against all risks and liabilities 
normally covered by maritime liability insurance; or
    (iv) The owner or charterer has not paid any final penalty assessed 
by the Secretary in accordance with the Act.
    (4) Except as provided in paragraph (n) of this section, no later 
than July 16th of each year, NMFS will pre-approve applications from 
among the expressions of interest and applications received for the 
licensing period that starts the following year, prioritizing the 
expressions of interest and applications as follows:
    (i) First priority will be given to expressions of interest and 
applications for vessels with valid licenses as of June 1st of that 
year (i.e., anticipated license renewal applications), provided that 
such vessels continue to satisfy the requirements for licensing under 
the Act and this subpart, and provided such vessels have no unsatisfied 
civil penalties or fines assessed by the Secretary under the Act that 
have become final.
    (ii) Second priority will be given to expressions of interest and 
applications scored using the following scheme, in descending order of 
the sum of the points assigned:
    (A) 15 points will be assigned for a vessel that has been issued, 
or will be issued by the date complete applications are due to be 
received the Regional Administrator under paragraph (h)(6) of this 
section, a valid USCG Certificate of Documentation with a fishery 
endorsement.
    (B) 1 point will be assigned for each licensing period, starting 
with the 1988-1989 licensing period, in which a license had been issued 
for the vessel pursuant to the Act, for a total of no more than 10 
points.
    (C) 1 point will be assigned for each calendar year in which at 
least 3,000 metric tons of fish were landed or transshipped from the 
vessel in United States ports, including ports located in any of the 
States, as determined by the Regional Administrator. The applicable 
period shall run from 1988 through the last calendar year prior to the 
year in which the applied-for licensing period starts, and the total 
number of points assigned shall be no more than 5.
    (D) In the event that two or more vessels receive the same sum 
number of points under paragraphs (k)(4)(ii)(A) through (k)(4)(ii)(C) 
of this section, priority will be given to the vessel from which the 
greatest amount of fish, by weight, was landed or transshipped in 
United States ports, including ports located in any of the States, 
starting in calendar year 1988 and ending in the year prior to the year 
in which the applied-for licensing period starts, as determined by the 
Regional Administrator. In the event that that does not resolve the 
tie, priority will be given by lottery, which will be conducted by the 
Regional Administrator.
    (5) Except as provided in paragraph (n) of this section, no later 
than July 26th of each year, NMFS will notify all applicants (for the 
licensing period that starts the following year) whether their 
applications have been pre-approved.
    (6) No later than March 7th of each year, NMFS will approve 
complete applications (for the licensing period that starts that year) 
that satisfy all of the following conditions:
    (i) The application was pre-approved;
    (ii) The information associated with the application has not 
changed since the point of pre-approval in a way such that pre-approval 
would not have been made using the updated information;
    (iii) The complete application was received by February 5th of the 
same year; and
    (iv) The applicant satisfies the requirements of this subpart.
    (7) No later than March 17th of each year, NMFS will notify all 
applicants (for the licensing period that starts that year) who 
submitted complete applications by March 7th of that year, whether 
their applications have been approved under paragraph (k)(6) of this 
section, and in cases where they have not, whether their applications 
are being considered for approval under paragraph (k)(8) of this 
section.
    (8) In the event that additional licenses are available after 
issuing the approvals under paragraph (k)(6) of this section, NMFS, 
after final administrative action by the Department of Commerce on any 
appeals of approvals made under paragraph (j) of this section, shall:
    (i) Review all outstanding expressions of interest and applications 
it received within the required deadlines for that licensing period; 
and
    (ii) Apply the process described in paragraphs (k)(9)(i) through 
(k)(9)(iv) of this section to pre-approve and approve applications from 
among that pool of applicants.
    (9) If a license or application approval that has been issued for a 
given licensing period becomes available before or during that 
licensing period, NMFS will review all outstanding expressions of 
interest and complete applications it received within the required 
deadlines for that licensing period and will pre-approve and approve 
applications for that license from among that pool as follows:
    (i) Within 45 days of NMFS becoming aware of the availability of 
the license, NMFS will pre-approve an application using the 
prioritization criteria and point-assigning scheme described in 
paragraphs (k)(4)(i) and (k)(4)(ii) of this section.
    (ii) Within 55 days of NMFS becoming aware of the availability of 
the license NMFS will notify all active applicants as to whether their 
applications have been pre-approved, and for those applications that 
have been pre-approved, notify each applicant of the date by which a 
complete application, if not already received, must be received (which 
will be calculated by NMFS to be no later than 194 days from the date 
of mailing of the notification of the pre-approval).
    (iii) Within 30 days of receiving a complete application that had 
been pre-approved, NMFS will approve the application, if and as 
appropriate and if the applicant satisfies the requirements of this 
subpart.
    (iv) Within 10 days of approving an application, NMFS will notify 
the applicant.
    (l) Procedures used by the Secretary to review and process 
applications for joint venture licenses. NMFS, on behalf of the 
Secretary and in consultation with the Secretary of State, will review 
and approve applications for joint venture licenses as described in 
paragraph (k) of this section for general licenses, except that NMFS 
will not consider expressions of interest for joint venture licenses or 
pre-approve applications for joint venture licenses. In the event that 
NMFS receives for a given licensing period more applications for joint 
venture licenses than there are licenses available, it will approve the 
applications in the chronological order that the Administrator has 
provided its initial approval.
    (m) Transferability of application approvals. Application approvals 
from NMFS are not transferable among vessel owners or operators or 
license applicants. Application approvals are transferable among 
vessels, subject to the following requirements:
    (1) A vessel operator may seek to transfer a general or joint 
venture license to another vessel that meets the requirements for 
licensing under this subpart and the Act, only if the license has been 
valid for the vessel for at least 365 consecutive days and all the fees 
required by the Administrator for the current licensing period have 
been paid to the Administrator. The vessel operator may seek to 
transfer the license by submitting a written request to the Regional 
Administrator along with a complete application for the other

[[Page 36628]]

vessel as described in paragraph (h)(7) of this section. Any such 
transfer may be subject to additional fees for the registration of the 
vessel on the FFA Vessel Register, as specified in paragraph (b) of 
Sec.  300.45.
    (2) Upon receipt of an application under paragraph (m)(1) of this 
section, the Regional Administrator, after determining that all the 
fees required for the vessel by the Administrator for the current 
licensing period have been paid, that the ownership of the licensed 
vessel and the ownership of the vessel to which the application 
approval would be transferred are identical, and that the transferee 
vessel meets the requirements for licensing under this subpart and the 
Act, will approve the application and notify the applicant of such 
within 10 days of the determination.
    (3) If a licensed vessel is lost or destroyed, and the operators of 
the vessel apply for a license for another vessel for the licensing 
period during which the vessel was lost, or for either of the two 
subsequent licensing periods, NMFS will consider the applicants to have 
a currently licensed vessel for the purpose of applying the 
prioritization criteria of paragraph (k)(4) of this s