Fisheries of the Exclusive Economic Zone Off Alaska; Groundfish Observer Program, 69016-69025 [2010-28325]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Rules and Regulations]
[Pages 69016-69025]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28325]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 080228322-91377-02]
RIN 0648-AW24


Fisheries of the Exclusive Economic Zone Off Alaska; Groundfish 
Observer Program

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

ACTION: Final rule.

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SUMMARY: NMFS issues a final rule to amend regulations implementing the 
North Pacific Groundfish Observer Program (Observer Program). This 
action is necessary to improve the operational efficiency of the 
Observer Program, as well as to improve the catch, bycatch, and 
biological data collected by observers for conservation and management 
of the North Pacific groundfish fisheries, including those data 
collected through scientific research activities. The final rule is 
intended to promote the goals and objectives of the Fishery Management 
Plan for Groundfish of the Bering Sea and Aleutian Islands Management 
Area and the Fishery Management Plan for Groundfish of the Gulf of 
Alaska.

DATES: Effective December 10, 2010, except the revision to the 
definition of a fishing day in Sec.  679.2, which is effective on 
January 1, 2011.

ADDRESSES: Electronic copies of the Regulatory Impact Review/Final 
Regulatory Flexibility Analysis (RIR/FRFA) prepared for this action may 
be obtained from the NMFS Alaska Region Web site at https://alaskafisheries.noaa.gov. Written comments regarding the burden-hour 
estimates or other aspects of the collection-of-information 
requirements contained in this final rule may be submitted by mail to 
NMFS, Alaska Region, P.O. Box 21668, Juneau, AK 99802-1668, Attn: Ellen 
Sebastian, Records Officer; in person at NMFS, Alaska Region, 709 West 
9th Street, Room 420A, Juneau, AK; and by e-mail to OIRA_Submission@omb.eop.gov or fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Brandee Gerke, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

    NMFS manages the U.S. groundfish fisheries in the Exclusive 
Economic Zone of the Bering Sea and Aleutian Islands Management Area 
(BSAI) and Gulf of Alaska (GOA) under the Fishery Management Plan for 
Groundfish of the Bering Sea and Aleutian Islands Management Area and 
the Fishery Management Plan for Groundfish of the Gulf of Alaska 
(collectively, the FMPs), respectively. The North Pacific Fishery 
Management Council (Council) prepared the FMPs pursuant to the 
Magnuson-Stevens Fishery Conservation and Management Act (MSA). 
Regulations implementing the FMPs appear at 50 CFR part 679. General 
regulations that pertain to U.S. fisheries appear at subpart H of 50 
CFR part 600.
    The Observer Program provides the administrative framework for 
observers to obtain information necessary for the conservation and 
management of the groundfish fisheries managed under the FMPs. 
Regulations implementing the Groundfish Observer Program at Sec.  
679.50 require observer coverage aboard catcher vessels, catcher/
processors, motherships, and shoreside and stationary floating 
processors that participate in the groundfish fisheries off Alaska. 
These regulations also establish vessel, processor, and observer 
provider responsibilities relating to the Observer Program.
    This final rule amends regulations at Sec.  679.2 and Sec.  679.50 
applicable to observer providers, observers, and industry participants 
required to obtain observer services. The regulatory amendments are 
organized under six issues and will remove regulations that are either 
unnecessary or impractical to apply; revise regulations to allow 
observer providers to provide observers for exempted fishing permit-
based and scientific research permit-based activities; add regulations 
to prohibit activities that result in non-representative fishing 
behavior from counting toward an observer coverage day; require 
observer providers to report to NMFS information about the cost of 
providing observers; and establish a deadline when observer providers 
must submit copies of their contracts to NMFS, per the Council's April 
2008 motion. This action is necessary to improve the operational 
efficiency of the existing Observer Program, as well as improve the 
catch, bycatch, and biological data provided by observers for 
conservation and management of the North Pacific groundfish fisheries, 
including data provided through scientific research activities.
    A detailed description of and justification for this final rule was 
presented in the preamble to the proposed rule (74 FR 50155, September 
30, 2009). A summary of the final rule is presented below.

Issue 1: Observer Certification and Observer Provider Permitting 
Process

    This final rule clarifies NMFS's discretionary authority to either 
grant or deny an initial observer certification or observer provider 
permit by allowing NMFS to consider additional needs and objectives of 
the Observer Program and other relevant factors when considering 
whether to issue a new observer provider permit or observer 
certification. In addition, the appeal process for unsuccessful 
observer candidates and observer provider applicants is removed from 
regulations. There is no statutory entitlement to receiving observer 
certification or an observer provider permit; thus, the granting or 
denial of observer certifications and observer provider permits are 
discretionary agency actions. In addition, the existing appeals process 
has rarely been invoked and requires substantial agency resources to 
fulfill. These actions will increase NMFS's efficiency in granting or 
denying certifications and permits. NMFS reiterates that this action 
does not affect the ability of observers and observer providers to 
appeal any agency decision to revoke or sanction a certification or 
permit that already is issued.

Issue 2: Observer Conduct

    This final rule removes Federal regulations that attempt to control 
observer behavior related to activities involving drugs, alcohol, and 
sexual conduct. NMFS's observer conduct policies established in 
existing regulations are impractical to apply and unenforceable. 
Therefore, NMFS is removing these regulations.

[[Page 69017]]

    Each observer provider will be required to develop and implement an 
observer conduct policy that address drugs, alcohol, and sexual 
conduct. Observer providers will be required to provide NMFS a copy of 
their conduct policies by February 1 of each year and to notify NMFS of 
a violation within 72 hours after the provider determines that an 
observer violated the conduct policy.

Issue 3: Providing Observers for Research Activities

    Regulatory revisions implemented by this final rule clarify that 
observer providers are allowed to provide observers or technical staff 
for purposes of exempted fishing permits, scientific research permits, 
or other NMFS-sanctioned scientific research activities. While existing 
regulations do not specifically prohibit observer providers from 
providing observers or scientific data collectors in support of these 
activities, they are ambiguous as to whether these activities are 
allowed under the Observer Program's conflict of interest regulation.

Issue 4: Fishing Day Definition

    This final rule revises the regulatory definition of ``fishing 
day'' to clarify that an observer must be on board a vessel for all 
gear retrievals during the 24-hour period to count as a day of observer 
coverage. This revision is intended to prevent vessel operators from 
making fishing trips that do not reflect their normal fishing patterns 
as this non-representative behavior biases the observer-collected 
information. The definition of ``fishing day'' is also revised to span 
from ``noon to noon'' rather than from ``midnight to midnight'' as 
currently defined. This revision is expected to provide a disincentive 
for operations to conduct non-representative fishing for the sake of 
satisfying observer coverage requirements during daylight hours.
    The revision to the definition of a fishing day affects the 
calculation of days that an observer is onboard vessels greater than or 
equal to 60 ft length overall (LOA), but less than 125 ft LOA that are 
subject to 30 percent observer coverage requirements under Sec.  
679.50. These regulations require vessels that participate for more 
than 3 fishing days in a directed fishery for groundfish in a calendar 
quarter to carry an observer during at least 30 percent of its fishing 
days in that calendar quarter and at all times during at least one 
fishing trip in that calendar quarter for each of groundfish fishery 
category in which the vessel participates. Because the calculation of 
the number of fishing days that must be observed is done on a calendar 
quarter basis, the revision to the definition of fishing day is 
effective on the first day of the next calendar quarter, which is 
January 2, 2011.

Issue 5: Observer Cost Information

    NMFS is not a party to contracts between the industry and observer 
providers. Therefore, NMFS has not had access to information about the 
actual cost of deploying observers in the various sectors of the 
groundfish fisheries. The MSA authorizes the collection of fees from 
North Pacific fishery participants to pay for implementing a fisheries 
research plan, including observer coverage. More accurate information 
on the cost of the existing Observer Program would help the Council and 
NMFS determine appropriate fees and the extent of observer coverage 
afforded by those fees when a fee-based research plan is developed and 
implemented. This action requires observer providers to submit to NMFS 
copies of all individual invoices for observer coverage in the 
groundfish fisheries off Alaska to provide NMFS with information on the 
costs incurred by the groundfish fishing industry for the current 
Observer Program. Observer providers will be required to submit these 
invoices to NMFS on a monthly basis, and within 45 days of the date of 
the invoice.

Issue 6: Miscellaneous Revisions

    This final rule establishes a deadline by which observer providers 
must submit an exemplary copy of each type of contract between the 
provider and the observer, and between the provider and the vessel or 
plant operator requiring observer services in the groundfish fisheries 
off Alaska. The final rule also removes an incorrect reference to the 
Observer Program's Web site from Federal regulations.

Comments and Responses

    Detailed information on the management background and need for 
action is in the preamble to the proposed rule (74 FR 50155, September 
30, 2009). Comments on the proposed rule were invited through October 
30, 2009. NMFS received six submissions containing 25 separate public 
comments on the proposed rule. These comments are summarized and 
responded to below.

Issue 1: Observer Certification and Observer Provider Permitting 
Process

    Comment 1: NMFS should continue to have a strong central role in 
the oversight of observer providers and observer procedures. NMFS's 
oversight is necessary to ensure consistency throughout the program and 
maintain overall program integrity.
    Response: NMFS acknowledges support for its continued role in 
overseeing the permitting and responsibilities of observers and 
observer providers.
    Comment 2: Commenter supports NMFS's efforts to expand its 
discretion to grant provider permits by tailoring the application time 
period according to the conditions encountered by each applicant.
    Response: NMFS acknowledges support for this regulatory revision.
    Comment 3: Commenter supports NMFS's effort to alter the appeal 
forum for unsuccessful observer provider permit applicants and observer 
candidates. The current regulations are burdensome and ineffective.
    Response: NMFS acknowledges support for this regulatory revision.
    Comment 4: Eliminating the regulations regarding revocation and 
sanction procedures for observers and observer providers should better 
allocate agency resources while continuing to ensure the integrity of 
the Observer Program, and due process for observer providers and 
observers.
    Response: This rule does not eliminate regulations regarding 
revocation and sanction procedures for observer certifications and 
observer provider permits. It does remove the appeals process for 
unsuccessful observer candidates and observer provider applicants.

Issue 2: Observer Conduct

    Comment 5: NMFS's role in overseeing observer conduct under the 
proposed rule may hamper the ability of observer providers to 
effectively deal with employee conduct issues, which should be resolved 
directly by the observer providers themselves. Observer providers 
already have incentives to develop employment practices to cope with 
workplace issues, including drug and alcohol use and sexual misconduct. 
The role envisioned for NMFS under this new regulation is vague, as is 
the regulation it will replace. NMFS assesses observer performance and 
data quality, regardless of each observer's behavior. If NMFS 
determines that an observer is unable to collect the quality of data 
demanded by the agency, then the observer should be decertified. NMFS 
should specify behaviors it believes are likely to impact data quality. 
Once these behaviors are identified, the observer providers could 
likely agree on how best NMFS should be involved, though as a general 
rule, employment practices need to be left to

[[Page 69018]]

the providers who actually employ observers.
    Response: NMFS believes that observer providers bear primary 
responsibility for establishing and implementing observer conduct 
policies. This rule will require observer providers to develop and 
implement an observer conduct policy and to provide a copy of the 
policy to NMFS. Further, this rule will require observer providers to 
inform NMFS of a violation of the observer provider's policy within 72 
hours of determining that a violation occurred.
    NMFS agrees that an observer whose data do not meet the quality 
standards should be decertified. Although NMFS intends to continue 
reviewing observer performance, NMFS does not intend to intervene in 
any corrective process undertaken by a provider to resolve deficiencies 
with its employees unless these deficiencies directly affect data 
quality.
    It is important that NMFS is notified of violations of observer 
provider conduct policies so that NMFS can consider whether those 
violations adversely affect an observer's ability to perform his or her 
duties, including the collection of quality data, or compromise 
workplace safety. NMFS will monitor each observer provider's conduct 
policy to determine whether it helps to maintain a professional 
workforce. By keeping aware of observer providers' conduct policies and 
the extent to which these policies are violated, NMFS may better advise 
observer providers of the most effective policies, and take further 
action as needed should a provider's policy or ineffective 
implementation of its policy generate numerous cases of insufficient 
data quality.
    Comment 6: NMFS should inform all observer applicants during the 
training process: (1) That most U.S. fishing vessels have zero 
tolerance policies regarding the use or possession of drugs and 
alcohol; and (2) that violation of such policies may be grounds for 
removal from the vessel at the first reasonable opportunity or for 
refusal to grant permission to board the vessel in the first place.
    Response: It is NMFS's practice to inform observer applicants of 
the zero tolerance policies for drugs and alcohol on board most U.S. 
fishing vessels and the consequences of violating these policies. NMFS 
will continue to emphasize this information in observer training.
    Comment 7: We acknowledge the difficulty for NMFS to enforce the 
observer conduct policy. However, because NMFS is responsible for the 
quality of information used to manage fisheries under its jurisdiction, 
NMFS must retain some level of observer conduct oversight, even if not 
through regulations and the administrative review process. The 
elimination of NMFS's policy creates the potential for widely varying 
policies among providers, which could result in confusion among 
observers about what is permitted. NMFS should supply a standardized 
policy for observer providers to enforce. At the very least, the 
current policy provides guidance as to what is and is not acceptable 
behavior.
    Response: NMFS believes that observer providers bear primary 
responsibility for developing and implementing observer conduct 
policies. However, NMFS has posted drug and alcohol policies on the 
Fishery Management and Analysis Division's Web site (https://www.afsc.noaa.gov/FMA/default.htm). NMFS intends to keep these policies 
posted to notify observers of NMFS's expectations about use and 
possession of drugs and alcohol. NMFS will add information to the 
policies explaining that observer providers have their respective drug 
and alcohol policies to which their employees are subject. NMFS's 
policies may also guide observer providers in development of their 
policies.
    Comment 8: NMFS should clarify why it has been impractical to 
enforce observer conduct before further reducing the agency's 
responsibility for the welfare and conduct of observers. Zero tolerance 
policies for drugs and alcohol, similar to ones already imposed by many 
fishing companies on their crew, are appropriate for the work 
environment in Alaska's fisheries, including its professional 
observers. Observers who violate alcohol policies damage the reputation 
of the observer profession. Alcohol use has been responsible for a 
range of distasteful and unsafe behavior between deployments and in 
employer-provided housing, demonstrating that observer providers are 
unable to effectively ensure compliance. Enforcing observer adherence 
to a professional code of conduct is of secondary importance to 
observer providers as their primary focus is fulfilling their business 
relationships with fishing companies.
    Response: NMFS must establish a link between the unsanctioned 
behavior and the collection of reliable fisheries data to take 
corrective action such as decertifying an observer. Such links are 
difficult to prove for observer code of conduct violations that occur 
outside of an observer's working hours. Adherence to observer conduct 
expectations, especially at observer provider housing, is an observer 
provider responsibility. Drug and alcohol abuse that results in 
unacceptable and/or dangerous living situations for other observers 
between deployments should be reported to the observer provider at a 
minimum. During observer training, NMFS will continue to emphasize the 
zero tolerance drug and alcohol policy enforced by most U.S. fishing 
companies.
    Comment 9: NMFS should hold annual performance reviews of observer 
providers to ensure there is no collusion with the fishing industry and 
to ensure NMFS's performance standards, including observer conduct 
standards, are being met. Reviews should be publicly available and 
should include a list of complaints made by observers against 
contractors, claims against observers, and should include how NMFS 
responded to these complaints.
    Response: NMFS does not hold contracts with observer provider 
companies and does not conduct performance reviews as would occur under 
a contract. However, NMFS regulates the responsibilities of observer 
providers through Federal regulations at 50 CFR 679.50(i)(2). Observer 
providers are also subject to conflict of interest regulations at 50 
CFR 679.50(i)(3). Non-compliance with these regulations is investigated 
by the NOAA Office of Law Enforcement (OLE). NOAA OLE can assess civil 
penalties directly against the violator in the form of Summary 
Settlements or refer the case to NOAA's Office of General Counsel for 
Enforcement and Litigation (GCEL). GCEL can assess a civil penalty in 
the form of a Notice of Permit Sanctions or Notice of Violation and 
Assessment, or they can refer the case to the U.S. Attorney's Office 
for criminal proceedings.
    Comment 10: NMFS should have enforceable conduct standards for 
observers that all observer providers are required to enforce because:
     The business relationships between observer provider 
companies and fishing companies may make observer providers less 
inclined to investigate and enforce observer conduct violations; and
     Fishing companies could make false claims against 
observers who, while carrying out their duties, cause inconveniences 
for the vessel operator or observer provider.
    Response: Current regulations specify conduct standards for North 
Pacific groundfish fishery observers (50 CFR 679.50(j)(2)). As stated 
above, NMFS cannot enforce observer conduct standards that are 
unrelated to the collection of quality data for fisheries

[[Page 69019]]

management. Through this action, NMFS is removing observer conduct 
regulations pertaining to use of drugs and alcohol and the prohibition 
of physical sexual contact with vessel personnel. However, several 
observer conduct standards, including prohibition of conflict of 
interest, remain in Federal regulations, and NMFS will continue to 
enforce compliance with these standards.
    Among other types of conduct, Federal regulations prohibit the 
impediment, intimidation, or interference with an observer (50 CFR 
679.7(g)). These regulations are designed to protect observers and 
allow them to freely perform their duties without harassment, which 
would include making false accusations against an observer. NMFS 
enforces these regulations to the fullest extent of the law.
    Comment 11: This proposed rule will weaken the protections of 
observers and an observer's ability to carry out his or her duties to 
NMFS's standards. Observer sampling to monitor quotas likely results in 
increased conflicts between vessel personnel and observers. This 
proposed rule will weaken the integrity of the Observer Program.
    Response: NMFS disagrees that the protections for observers, the 
ability of an observer to objectively do his or her job, or the 
integrity of the Observer Program will be weakened through the 
promulgation of this rule. This rule clarifies that the observer 
providers are responsible for ensuring that observers adhere to a 
professional code of conduct pertaining to drug and alcohol use and 
sexual conduct. This rule does not modify Federal regulations that 
prohibit assaulting, resisting, opposing, intimidating, sexually 
harassing, or bribing an observer, or interfering with an observer's 
sampling or samples.

Issue 3: Providing Observers for Research Activities

    Comment 12: NMFS received two comments in support of the regulatory 
amendment clarifying that observer providers can provide scientific 
data collectors in addition to observers.
    Response: NMFS acknowledges the support for this regulatory 
amendment.
    Comment 13: NMFS should consider including language for ``catch 
monitors'' in the event that the catch share policy being developed by 
NMFS includes this job category.
    Response: It is not prudent to add the term ``catch monitor'' to 
regulations implementing the Observer Program at this time, because 
this term has not been established nor defined for North Pacific 
groundfish fisheries and is not relevant to this final rule.
    Comment 14: The same standards that apply to observer deployments 
should apply to deployments of scientific data collectors for 
Experimental Fishing Permit (EFP) and Scientific Research Permit (SRP) 
projects, because researchers can influence who is hired by an observer 
provider to serve as a scientific data collector. Since much of the EFP 
and scientific research has implications for the fishing industry and 
is often partially funded by the industry, this could be perceived as a 
conflict of interest. These activities should be treated with the same 
code of conduct as in the Observer Program, including random placement 
of observers and public access to the data collected.
    Response: The decision to hire scientific data collectors is based 
on the nature of the experimental or scientific work being conducted. 
Sometimes data collectors are hired through an observer provider 
company. Data collected during EFP and SRP projects are neither 
submitted to NMFS nor incorporated into official catch accounting. As 
such, data collected during EFP and SRP projects are not considered to 
be ``observer information'' and the scientific data collectors are not 
considered to be ``observers'' as defined in the MSA. Therefore, 
regulations pertaining to observers, observer providers, or observer 
information do not apply to EFP or SRP projects.

Issue 4: Fishing Day Definition

    Comment 15: Observer data need to be collected at times that are 
representative of an operation's normal fishing activity. However, the 
proposed change to the fishing day definition will not sufficiently 
address the problem of vessel operators intentionally altering fishing 
activities while an observer is onboard. Instead, it merely shifts the 
start of the fishing day by 12 hours. Vessel operators will still have 
incentive to try to get small tows in at whatever time of day gets them 
the extra day of coverage.
    Response: NMFS acknowledges that the revised fishing day definition 
does not eliminate the potential for operators with a 30 percent 
observer coverage requirement to intentionally manipulate their 
observer coverage by altering their fishing behavior solely for the 
purpose of achieving required coverage levels. As noted in the RIR/IRFA 
prepared for this action (see ADDRESSES), the optimum resolution to the 
problem of vessels conducting non-representative fishing to meet 30 
percent observer coverage requirements may be to restructure the 
service delivery model for the Observer Program such that NMFS would 
control when and where observers are deployed. NMFS and the Council are 
working on an analysis to evaluate alternatives for restructuring the 
Observer Program service delivery model, which may modify how fishing 
trips are selected for observer coverage. In the interim, NMFS expects 
the revision of the fishing day definition to reduce the extent to 
which fishing trips are modified solely to achieve observer coverage 
due to the economic disincentive of using daylight hours to return to 
port to drop off observers. NMFS also expects the requirement that an 
observer be on board a vessel for all retrievals in which groundfish 
are retained in a 24-hour period to increase the disincentive for 
either spending a full day conducting non-representative fishing, or to 
sacrifice a full day of fishing just to make one observer tow so that 
it counts towards a day of observer coverage. This action is intended 
to reduce the occurrence of non-representative fishing behavior, though 
NMFS agrees that it will not eliminate the potential for manipulating 
the manner in which observer coverage is attained.
    Comment 16: To yield representative data, the requirement that 30 
percent of an operation's fishing activity be observed should be 
replaced with a requirement that 30 percent of the estimated total 
round weight of groundfish brought onboard be observed. It would be 
simple to track and estimate total round weight harvested by a vessel 
as current recordkeeping and reporting regulations require vessel 
operators to record the total estimated weight of groundfish brought 
onboard each day. This recommendation is similar to the approach 
adopted by NMFS to address non-representative fishing by vessels using 
pot gear. Observer coverage requirements previously based on fishing 
day are now based on pot counts. This proposed solution removes the 
opportunity for vessels to make observer tows which result in data that 
represents actual harvest.
    Response: Replacing the fishing day definition with a requirement 
that an observer observe 30 percent of an operation's total catch or 
retained catch by round weight is unlikely to prevent operations from 
manipulating fishing behavior to meet observer coverage requirements. 
The alternative to base observer coverage requirements on harvest 
weight rather than fishing days was discussed and rejected by the 
Council's Observer Advisory Committee in May 2007, because catch weight 
is estimated by vessel operators and

[[Page 69020]]

cannot be independently verified on catcher vessels or small catcher 
processors that discard fish at sea. Basing such a standard on retained 
catch weighed at the end of a fishing trip could exacerbate the 
generation of non-representative data from operations intentionally 
manipulating their discard amounts, recordkeeping and reporting, or 
other activities to meet coverage requirements. Observer data 
representing the actual spatial and temporal distribution of the 
fisheries are needed for reliable parameter estimates to manage the 
fisheries.
    Comment 17: NMFS should continue to pursue restructuring the 
Observer Program to randomize vessel selection and observer deployment 
on all vessels subject to less than 100 percent observer coverage. The 
revised fishing day definition in combination with a restructured 
Observer Program could virtually eliminate the potential for 
intentionally manipulating observer coverage requirements.
    Response: NMFS agrees that the optimum solution to this problem may 
be Observer Program restructuring. See response to Comment 15 above.
    Comment 18: Changing the fishing day definition from noon to noon 
increases the difficulty for vessel operators and observer providers to 
calculate observer coverage rates and does not eliminate the potential 
for the manipulation of observer coverage as intended. The requirement 
for the observer to be onboard for the full 24-hour period would solve 
the problem and there is no need to modify the definition of a day from 
0001-2400 to 1201-1200.
    Response: NMFS agrees that revising the fishing day definition does 
not prevent operations from manipulating the manner in which observer 
coverage requirements are met, and that modifying the fishing day 
definition from 0001-2400, to 1201-1200 creates the possibility for 
operations to merely shift the time of day in which they fish solely 
for observer coverage as discussed in the RIR/IRFA for this action (see 
ADDRESSES). However, the RIR/IRFA notes that fishery participants would 
be less likely to use the time period around noon to take observer tows 
because daylight hours correspond with better fishing. Anecdotal 
evidence suggests that participants would be less likely to attempt to 
manipulate the system during daylight hours because they would risk 
foregoing key fishing time. The extent of the economic disincentive for 
fishing solely for observer coverage during daylight hours cannot be 
quantified. NMFS agrees with the commenter that the component of the 
fishing day definition likely to have the largest impact on reducing 
fishing solely for observer coverage is the requirement that an 
observer be on board for the entire 24-hour period. NMFS expects the 
change in the time of the fishing day definition to reduce the practice 
of changing normal fishing operations to manipulate observer coverage.
    Comment 19: The proposed revision to the fishing day definition 
will reduce the intentional practice of ``observer tows,'' non-
representative fishing activities that bias observer-collected data 
which form the basis of bycatch estimates and other scientific 
assessments. Because unbiased observer information is crucial to the 
proper management of fisheries in the North Pacific, this proposed 
action to reduce bias in observer data is an important step.
    Response: NMFS acknowledges the support for this amendment.
    Comment 20: NMFS should continue to monitor and record 
uncharacteristic fishing patterns following the implementation of this 
rule.
    Response: NMFS agrees.

Issue 5: Observer Cost Information

    Comment 21: The requirement that observer provider invoices contain 
the name of the observer assigned to the vessel or plant would require 
observer providers to modify their business practices. Invoicing occurs 
at the beginning of a month for services in that month. It is not 
possible to reliably predict the name of the observer that will provide 
coverage to a particular vessel or plant over the course of the month. 
Adding the observer's name to invoices would require duplication of 
billing process solely to comply with this requirement. Because 
existing regulations require observer providers to submit a weekly 
roster to NMFS containing the names and assignments of every observer, 
this requirement would create an additional burden to provide 
information already made available to NMFS by the observer provider.
    Response: NMFS agrees. NMFS proposed to have ``observer name'' 
provided on invoices submitted by observer providers to serve as an 
additional data field to link observer provider invoice information to 
Observer Program databases containing information about specific 
observer fishing trips or deployments. The ability to link observer 
provider invoice information to Observer Program databases is necessary 
to increase the level of detail for NMFS to analyze costs. For example, 
this would allow NMFS to know which target fishery is linked to a 
particular invoice. NMFS recognizes the difficulty that the requirement 
to include ``observer name'' would impose on observer providers. As 
discussed in the RIR/IRFA (see ADDRESSES), this action was designed 
with the objective of not modifying the existing billing practices of 
the directly regulated observer providers affected by this rule. While 
the inclusion of the observer's name would aid in linking invoice 
information to the Observer Program database, it is not required to 
achieve this linkage. Because this provision would require observer 
providers to substantially modify their billing practices and therefore 
impose an additional burden, NMSF has modified the final rule to 
exclude the proposed requirement that observer provider invoices 
contain the name of the observer.
    Comment 22: We support gathering observer cost information through 
the collection of invoices. Invoices should also be included for 
research activities that involve observers and the Observer Program.
    Response: As explained in response to Comment 14, data collected 
during experimental or research activities are not considered 
``observer information,'' nor are the scientific data collectors 
considered ``observers'' per the definition in the MSA. Therefore, 
regulations applicable to observers, observer providers, and observer 
information are not applicable to EFP or SRP cruises.
    Comment 23: Collection of observer provider invoices will improve 
analyses of Observer Program costs and benefits. This approach for 
collecting cost information will--
     Ground-truth industry's claims of overly burdensome 
economic impacts imposed by observer coverage costs;
     Inform policies to ensure that observer costs do not 
present an undue burden to industry; and
     Impose no additional burden on the regulated industry as 
this information is already collected and maintained on file with 
observer providers.
    Response: NMFS acknowledges support for this amendment.

Other Comments

    Comment 24: Observers are not effective because they can be 
threatened with violence.
    Response: NMFS disagrees. Observers have provided valuable 
information for managing the groundfish fisheries off Alaska for over 
twenty years. See the response to Comment 10.

[[Page 69021]]

    Comment 25: Cameras should be required on vessels, and vessels 
should not be allowed to fish without cameras.
    Response: This rule addresses administrative changes to the 
existing Observer Program regulations at 50 CFR 679.50; it does not 
encompass alternative monitoring sources such as cameras. At its June 
2010 meeting, the Council expressed its intent to pursue options for an 
electronic monitoring program to augment or replace observer coverage 
on specific vessels and to develop and implement such a program in 
coordination with the proposed restructured Observer Program under 
consideration by the Council. NMFS will be coordinating closely with 
the Council as options for expanded uses of electronic monitoring are 
developed.

Changes From the Proposed Rule

    Four substantive changes were made in the final rule from the 
proposed rule. NMFS has made changes to Issue 2 Observer Conduct, and 
Issue 5 Observer Cost Information. The changes under Issue 2 comprise 
two technical clarifications identified by NMFS. Two changes are also 
made to Issue 5: One resulting from public comment received on the 
proposed rule; and one facilitating collection of observer cost 
information on a continual basis consistent with the purpose and need 
for the action and with other economic data collection programs adopted 
by the Council and administered by NMFS. NMFS consulted with the 
Council on these changes during the December 2009 meeting as required 
under Section 304(b)(3) of the MSA. The Council concurred with all of 
NMFS's proposed changes to the proposed rule. The changes are described 
below.
    Under Issue 2, this final rule clarifies that observer providers 
must implement their policies addressing observer conduct and behavior 
for their employees that serve as observers. The wording of the 
proposed rule might have been interpreted to require that observer 
providers merely develop and maintain a written policy addressing 
observer conduct and behavior for their employees. The final rule 
clarifies NMFS's intent that observer providers are responsible for 
implementing their conduct policies, rather than just maintaining their 
written policies.
    Also under Issue 2, this final rule removes the deadline in the 
proposed rule that would have required observer providers to provide 
copies of their observer conduct policies to observer candidates and 
observers by February 1 of each year. It is not practical for observer 
providers to comply with the proposed regulation, as all observer 
candidates and observers may not be known by February 1 of each year. 
This final rule retains the February 1 deadline for observer providers 
to submit a copy of their conduct policies to the Observer Program 
Office; however, it does not specify a deadline for when observer 
conduct policies must be provided to observer candidates and observers, 
though this rule requires observers and observer candidates to be 
provided with the observer provider's policy.
    Under Issue 5, the proposed rule would have required observer 
providers to submit copies of their invoices for services provided in 
the North Pacific groundfish fisheries to NMFS so that NMFS may 
understand the industry's observer coverage costs. The proposed rule 
preserved the intent of the Council's April 2008 motion and stated that 
observer providers would be required to submit to NMFS invoices on a 
monthly basis for a full calendar year every third year. The RIR/IRFA 
prepared for this action (see ADDRESSES) describes the minimal burden 
for observer providers to provide this information to NMFS and the 
shortcomings of an episodic data collection program. In the preamble to 
the proposed rule, NMFS expressed concerns with the proposed 3-year 
data collection interval. The preamble highlighted that a 3-year 
interval would delay NMFS's ability to detect trends in observer 
coverage costs. Furthermore, a periodic data collection cycle would 
reduce the precision of any temporal variability evaluation. As noted 
in the preamble to the proposed rule, the Council's preferred 
alternative would not allow for a complete, continuous overview of the 
industry's observer costs due to the 3-year lapse between data 
collection cycles. Finally, a 3-year lapse in data collection cycles 
departs from NMFS's other ongoing economic data collection programs, 
which collect economic data annually. When compared to other annual 
collection programs, a three-year collection cycle would be an anomaly 
and less robust.
    Although NMFS highlighted its concern with the Council's 
recommendation to collect the monthly invoices every 3 years in the 
proposed rule, no public comment was received on this issue. Therefore, 
for the reasons described above and in the remainder of this paragraph, 
the final rule requires that observer providers submit copies of their 
invoices to NMFS on a monthly basis every year rather than on a monthly 
basis only every 3 years as stated in the proposed rule. Invoices are 
already maintained by providers and monthly submissions will provide 
timely information to assess the nature of change in observer costs for 
purposes of analyses of proposed fishery management and conservation 
actions. These assessments will become increasingly important if 
observer coverage in the future is provided under private contract 
arrangements between NMFS and observer providers; this approach would 
reflect a significant change in how observers are deployed and 
currently is under consideration by the Council. Invoices must be 
submitted to NMFS within 45 days of the date on the invoice. This 
provides a grace period between the time invoices are prepared and when 
they must be received by NMFS.
    Also under Issue 5, this final rule modifies the elements required 
to be submitted to NMFS on an observer provider's invoice. The preamble 
to the proposed rule listed the items required to be contained on the 
invoices submitted to NMFS. In the preamble, the corresponding 
observer's name was listed as a required invoice element; however 
``observer name'' was inadvertently excluded from the regulatory text 
in the proposed rule. During the public comment period one observer 
provider commented that it would have to substantially modify its 
billing practice to include ``observer name'' on a monthly invoice, as 
it bills clients at the beginning of the month, before an observer is 
selected and assigned to the client (see Comment 21, above). Because 
this element would impose a substantial compliance burden on the 
observer provider, and because it is not imperative for NMFS to have 
the observer's name on the invoice to conduct economic analyses, 
``observer name'' is not included in the list of required invoice 
elements in the final rule. Also see response to Comment 21.

Classification

    The Administrator, Alaska Region, NMFS determined that this final 
rule is necessary for the conservation and management of the groundfish 
fisheries off Alaska and that it is consistent with the Magnuson-
Stevens Act and other applicable law.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    A final regulatory flexibility analysis (FRFA) was prepared, as 
required by section 604(a) of the Regulatory Flexibility Act (RFA). The 
FRFA incorporates the initial regulatory flexibility analysis (IRFA) 
and provides a summary of the analyses completed to support the action. 
A copy of this analysis is available from NMFS (see ADDRESSES).

[[Page 69022]]

Need for, and Objectives of, the Rule

    The need for, and objectives of, this final rule are described in 
the preamble.

Significant Issues Raised by Public Comment on the IRFA

    No public comments were received specifically on the IRFA. However, 
one change was made to the final rule in response to a comment from an 
observer provider (a small entity). See response to Comment 21.

Description and Number of Small Entities to Which the Final Rule Would 
Apply

    The directly regulated entities are different under the various 
issues addressed in this final rule. Since the RFA is applicable to 
businesses, non-profit organizations, and governments, observers fall 
outside of the scope of the RFA. Therefore, Issue 1, which affects 
observers only, is not discussed in the FRFA.
    Five companies hold observer provider permits and are active in the 
North Pacific. These entities will be directly regulated by revisions 
implemented under Issues 2, 3, 5, and 6 of this final rule. As 
explained in the FRFA, all of the current observer provider companies 
are considered small entities under the RFA. Small observer provider 
firms that in the future obtain a permit to provide observer services 
will be regulated by observer provider permitting and responsibility 
regulations revised by this final rule; however, the potential number 
of these firms cannot be estimated and they are not considered directly 
regulated under this action.
    Trawl and hook-and-line catcher vessels (CV) and catcher/processors 
(CP) subject to 30 percent observer coverage requirements will be 
directly regulated by the revision to the definition of ``fishing day'' 
under Issue 4 in this final rule. In the BSAI and GOA, with several 
exceptions for vessels participating in specific programs, these 
include trawl and hook-and-line catcher vessels between 60 feet and 125 
feet length overall (LOA), and hook-and-line CPs between 60 feet and 
125 feet LOA. American Fisheries Act (AFA) (16 U.S.C. 1851 note) trawl 
CVs subject to 30 percent observer coverage requirements are 
categorized as large entities for the purpose of the RFA under the 
principles of affiliation, as they are part of the AFA pollock harvest 
cooperatives. The table below lists the number of directly regulated 
small entities, by sector, that may be affected by the revised 
``fishing day'' definition. The FRFA likely overestimates the number of 
directly regulated small entities. NMFS does not have access to data on 
ownership and other forms of affiliation for most segments of the 
fishing industry operating off Alaska, nor does NMFS have information 
on the combined annual gross receipts for each entity by size. Absent 
these data, a more precise characterization of the size composition of 
the directly regulated entities impacted by this action cannot be 
offered.

 Estimate of the Number of Small Entities Potentially Directly Regulated
                      by Issue 4 of the Final Rule:
------------------------------------------------------------------------
                                                               Number of
                            Sector                               small
                                                                entities
------------------------------------------------------------------------
Trawl CV > 60' and <= 125'...................................         22
Trawl CP > 60' and <= 125'...................................          1
Hook and Line CV > 60' and <= 125'...........................         78
Hook and Line CP > 60' and <= 125'...........................          2
------------------------------------------------------------------------

Projected Reporting, Recordkeeping, and Other Compliance Requirements

    Actions under Issue 2 and Issue 5 include additional recordkeeping 
and reporting requirements for the five observer providers currently 
supplying services to the Observer Program. Regulatory amendments made 
under Issue 6 impose a deadline for submission of information that is 
already required of observer providers in existing regulations.
    Revised regulations under Issue 2 require observer providers to 
have and implement a policy related to observer alcohol, drugs, and 
sexual contact; provide NMFS a copy of the conduct policy by February 
1, of each year; and to notify NMFS of a violation of the observer 
provider's policy within 72 hours after the provider determines that an 
observer violated a conduct policy, including the underlying facts and 
circumstances of the violation. Current regulations at Sec.  
679.50(i)(2)(x)(I) require an observer provider to notify NMFS of other 
types of conduct violations within 24 hours of becoming aware of the 
alleged violation; this final rule does not substantially alter that 
reporting requirement. It may take 20 minutes or less for an employee 
of the observer provider company to report this information to NMFS, as 
fax or email are acceptable means of communication.
    Compliance costs under Issue 4 will be somewhat reduced by the 
delay in effectiveness to January 1, 2011. The revision to the 
definition of a fishing day affects the calculation of days that an 
observer is onboard vessels greater than or equal to 60 ft LOA, but 
less than 125 ft LOA that are subject to 30 percent observer coverage 
requirements under Sec.  679.50. Effectiveness of this change in 
definition is delayed to the first day of the next calendar quarter, 
which is January 2, 2011. This will delay any costs associated with the 
need for more observer coverage days each quarter for vessels in the 30 
percent observer coverage category as a result of the change in the 
definition of a fishing day. It also will reduce any administrative 
costs associated with the additional complexity that would have been 
caused by changing the method for calculating observer coverage days in 
the middle of a calendar quarter.
    Under Issue 5, this final rule requires observer providers to 
submit copies of billing invoices to NMFS once a month on a continual 
basis. This recordkeeping and reporting requirement will not require 
observer providers to modify or interpret their billing invoices.
    Under Issue 6, existing regulations are modified by imposing a 
February 1 deadline for observer providers to submit to NMFS each type 
of contract they have entered into with observers or the fishing 
industry. Because regulations already require observer provider 
companies to submit this information to NMFS, and because most observer 
provider companies have been submitting this information by February 1 
in the past, this regulatory amendment should impose virtually no 
additional net burden on the observer provider companies.

Reason for Selecting the Alternatives in the Final Rule

    The preferred alternative for each issue was selected as the least 
economically burdensome alternative that met the purpose and need for 
action based upon the analysis in the RIR/IRFA and FRFA (See 
ADDRESSES). The Council selected the only action alternative available 
under Issues 1, 2, 3, and 6. Issues 1 and 6 do not affect small 
entities. The preferred alternative under Issue 2, regarding observer 
conduct policies, is expected to have a minimal cost to observer 
providers, as described above. Issue 3, clarifying that observer 
providers may provide observers or scientific data collectors for 
research, does not impost costs on small entities.
    Revisions to the definition of a fishing day under Issue 4 could 
increase costs for vessel owners in some cases because they may need to 
take longer fishing trips under the revised definition. Longer trips 
would require them to carry observers for more days than they do under 
current regulations and pay

[[Page 69023]]

more for observer coverage as a result of these additional observer 
days. However, the objective of the revised definition is to prevent 
vessel operators from making fishing trips that do not reflect their 
normal fishing patterns as this non-representative behavior biases the 
observer-collected information. Therefore, the additional costs that 
may be incurred by vessel owners are necessary to address a problem 
that potentially reduces the quality of observer data collected to 
manage the groundfish fisheries off Alaska.
    There were three action alternatives for Issue 5, and the Council 
selected the least economically burdensome alternative for observer 
providers by rejecting alternatives that would have required providers 
to compile annual expense reports summarized by fishery or expense 
category. The alternative that would require observer providers to 
submit copies of invoices already prepared as part of their standard 
bookkeeping was determined to be less burdensome on small entities than 
the other alternatives.
    The Council sought to further reduce the economic burden on 
observer providers by requiring them to submit copies of their invoices 
only on a monthly basis for a full calendar year every third year; 
however, in this final rule, observer providers are required to submit 
copies of their invoices to NMFS on a monthly basis every year, in line 
with their present accounting practices. Although this alternative is 
not the least economically burdensome on the observer providers, NMFS 
determined that it is necessary because a 3-year interval would delay 
NMFS's ability to detect trends in observer coverage costs and a 
periodic data collection cycle would reduce the precision of any 
temporal variability evaluation. The additional economic burden on the 
observer providers is expected to be small because invoices are already 
maintained by providers and monthly submissions will provide timely 
information to assess the nature of change in observer costs for 
purposes of analyses of proposed fishery management and conservation 
actions.

Collection-of-Information

    This rule contains a collection-of-information requirement subject 
to review and approval by the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act (PRA). This requirement has been 
approved under OMB Control Number 0648-0318. Public reporting burden is 
estimated to average 30 minutes per individual response for Copies of 
Invoices; 15 minutes for Observer Provider Contract Copies; two hours 
for Other Reports; 40 hours for Appeals for Observer Provider Permit 
Expiration or Denial of Permit (this item is removed with this action); 
and 40 hours for Observer Conduct and Behavior Policy, including the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the collection of information. The PRA analysis submitted with this 
rule estimates the economic impact on each observer provider to range 
from $148 to $622 per year for copying and submitting copies of billing 
invoices to NMFS depending on whether the invoices are submitted via e-
mail or fax, respectively. The PRA analysis estimates a one-time 
expense of $1,025 for observer providers to develop observer conduct 
policies and submit copies of them to NMFS. This is likely an 
overestimate as all active groundfish observer providers in the North 
Pacific currently have drug policies and four of the five have alcohol 
policies. 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 OIRA_Submission@omb.eop.gov, or fax to 202-395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the PRA, unless that collection of information displays 
a currently valid OMB control number.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: November 4, 2010.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, NMFS amends 50 CFR part 679 as 
follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

0
1. The authority citation for 50 CFR part 679 continues to read as 
follows:

    Authority:  16 U.S.C. 773 et seq.; 1801 et seq.; 3631 et seq.; 
Pub. L. 108-447.


0
2. In Sec.  679.2, revise the definition of ``Fishing day'' to read as 
follows:


Sec.  679.2  Definitions.

* * * * *
    Fishing day means (for purposes of subpart E of this part) a 24-
hour period, from 1201 hours, A.l.t. through 1200 hours, A.l.t., in 
which fishing gear is retrieved and groundfish are retained. An 
observer must be on board for all gear retrievals during the 24-hour 
period in order to count as a day of observer coverage. Days during 
which a vessel only delivers unsorted codends to a processor are not 
fishing days.
* * * * *

0
3. In Sec.  679.50:
0
A. Remove and reserve paragraph (i)(1)(iii)(B) and remove paragraphs 
(i)(1)(iv), (i)(2)(i)(C)(1), (j)(1)(iv)(B), and (j)(2)(ii)(D).
0
B. Redesignate paragraphs (i)(1)(v) through (viii) as paragraphs 
(i)(1)(iv) through (vii), respectively.
0
C. Redesignate paragraphs (i)(2)(i)(C)(2) through (4) as paragraphs 
(i)(2)(i)(C)(1) through (3), respectively.
0
D. Redesignate paragraphs (i)(2)(iii) through (xii) as paragraphs 
(i)(2)(iv) through (xiii), respectively.
0
E. Redesignate newly redesignated paragraphs (i)(2)(xi)(H) and (I) as 
paragraphs (i)(2)(xi)(I) and (J), respectively, and further redesignate 
paragraphs (i)(2)(xi)(J)(1) through (5) as paragraphs 
(i)(2)(xi)(J)(1)(i) through (v), respectively.
0
F. Redesignate paragraphs (i)(3)(i) through (iii) as paragraphs 
(i)(3)(ii) through (iv), respectively.
0
G. Redesignate paragraph (j)(1)(iv)(C) as paragraph (j)(i)(iv)(B).
0
H. Add paragraphs (i)(2)(iii), (i)(2)(xi)(H), (i)(2)(xi)(J)(1) 
introductory text, (i)(2)(xi)(J)(2), and (i)(3)(i).
0
I. Revise paragraphs (i)(1)(i)(A), (i)(1)(iii)(A) introductory text, 
(i)(2)(i)(B), (j)(1)(iii)(B) introductory text, (j)(1)(iv)(A), 
(j)(2)(ii) introductory text, and (j)(2)(ii)(A) through (C).
0
J. Revise newly redesignated paragraphs (i)(1)(iv), (i)(1)(vi)(B), 
(i)(2)(xi)(G) first sentence, (i)(2)(xi)(J) introductory text, 
(i)(2)(xi)(J)(1)(v), and (i)(3)(ii) introductory text.
    The revisions and additions read as follows:


Sec.  679.50  Groundfish Observer Program.

* * * * *
    (i) * * *
    (1)* * *
    (i) * * *
    (A) The Regional Administrator may issue a permit authorizing a 
person's participation as an observer provider. Persons seeking to 
provide observer services under this section must obtain an observer 
provider permit from NMFS.
* * * * *
    (iii) * * *

[[Page 69024]]

    (A) The Regional Administrator will establish an observer provider 
permit application review board, composed of NMFS staff, to review and 
evaluate an application submitted under paragraph (i)(1) of this 
section. The review board will evaluate the completeness of the 
application, the application's consistency with needs and objectives of 
the observer program, or other relevant factors, and the following 
criteria for each owner, or owners, board members, and officers if a 
corporation:
* * * * *
    (iv) Agency determination on an application. NMFS will send a 
written determination to the applicant. If an application is approved, 
NMFS will issue an observer provider permit to the applicant. If an 
application is denied, the reason for denial will be explained in the 
written determination.
* * * * *
    (vi) * * *
    (B) The Regional Administrator will provide a written initial 
administrative determination (IAD) to an observer provider if NMFS's 
deployment records indicate that the permit has expired. An observer 
provider who receives an IAD of permit expiration may appeal under 
Sec.  679.43. A permit holder who appeals the IAD will be issued an 
extension of the expiration date of the permit until after the final 
resolution of that appeal.
* * * * *
    (2) * * *
    (i) * * *
    (B) Prior to hiring an observer candidate, the observer provider 
must provide to the candidate copies of NMFS-provided pamphlets and 
other literature describing observer duties.
* * * * *
    (iii) Observer conduct. (A) An observer provider must develop, 
maintain, and implement a policy addressing observer conduct and 
behavior for their employees that serve as observers. The policy shall 
address the following behavior and conduct regarding:
    (1) Observer use of alcohol;
    (2) Observer use, possession, or distribution of illegal drugs; and
    (3) Sexual contact with personnel of the vessel or processing 
facility to which the observer is assigned, or with any vessel or 
processing plant personnel who may be substantially affected by the 
performance or non-performance of the observer's official duties.
    (B) An observer provider shall provide a copy of its conduct and 
behavior policy:
    (1) To observers, observer candidates; and
    (2) By February 1 of each year to the Observer Program Office.
* * * * *
    (xi) * * *
    (G) Observer provider contracts. Observer providers must submit to 
the Observer Program Office a completed and unaltered copy of each type 
of signed and valid contract (including all attachments, appendices, 
addendums, and exhibits incorporated into the contract) between the 
observer provider and those entities requiring observer services under 
paragraphs (c) and (d) of this section, by February 1 of each year. * * 
*
* * * * *
    (H) Observer provider invoices. Certified observer providers must 
submit to the Observer Program Office copies of all invoices for 
observer coverage required or provided pursuant to paragraphs (c) and 
(d) of this section.
    (1) Copies of invoices must be received by the Observer Program 
Office within 45 days of the date on the invoice and must include all 
reconciled and final charges.
    (2) Invoices must contain the following information:
    (i) Name of each individual catcher/processor, catcher vessel, 
mothership, stationary floating processor, or shoreside processing 
plant to which the invoice applies;
    (ii) Dates of service for each observer on each catcher/processor, 
catcher vessel, mothership, stationary floating processor, or shoreside 
processing plant. Dates billed that are not observer coverage days 
shall be identified on the invoice;
    (iii) Rate charged in dollars per day (daily rate) for observer 
services;
    (iv) Total charge for observer services (number of days multiplied 
by daily rate);
    (v) Amount charged for air transportation; and
    (vi) Amount charged by the provider for any other observer 
expenses, including but not limited to: Ground transportation, excess 
baggage, and lodging. Charges for these costs must be separated and 
identified.
* * * * *
    (J) Other reports. Reports of the following must be submitted in 
writing to the Observer Program Office by the observer provider via fax 
or email:
    (1) Within 24 hours after the observer provider becomes aware of 
the following information:
* * * * *
    (v) Any information, allegations or reports regarding observer 
conflict of interest or failure to abide by the standards of behavior 
described at paragraph (j)(2)(i) or (j)(2)(ii) of this section, or;
    (2) Within 72 hours after the observer provider determines that an 
observer violated the observer provider's conduct and behavior policy 
described at paragraph (i)(2)(iii)(A) of this section; these reports 
shall include the underlying facts and circumstances of the violation.
* * * * *
    (3) * * *
    (i) Are authorized to provide observer services under an FMP for 
the waters off the coast of Alaska as required in this part, or 
scientific data collector and observer services to support NMFS-
approved scientific research activities, exempted educational 
activities, or exempted or experimental fishing as defined in Sec.  
600.10 of this chapter.
    (ii) Must not have a direct financial interest, other than the 
provision of observer or scientific data collector services, in a North 
Pacific fishery managed under an FMP for the waters off the coast of 
Alaska, including, but not limited to:
* * * * *
    (j) * * *
    (1) * * *
    (iii) * * *
    (B) New observers. NMFS may certify individuals who, in addition to 
any other relevant considerations:
* * * * *
    (iv) * * *
    (A) Denial of a certification. The NMFS observer certification 
official will issue a written determination denying observer 
certification if the candidate fails to successfully complete training, 
or does not meet the qualifications for certification for any other 
relevant reason.
* * * * *
    (2) * * *
    (ii) Standards of Behavior. Observers must:
    (A) Perform their assigned duties as described in the Observer 
Manual or other written instructions from the Observer Program Office;
    (B) Accurately record their sampling data, write complete reports, 
and report accurately any observations of suspected violations of 
regulations relevant to conservation of marine resources or their 
en