Pacific Halibut Fisheries; Revisions To Catch Sharing Plan and Domestic Management Measures in Alaska, 38912-38918 [2019-16979]

Agencies

• DEPARTMENT OF COMMERCE
• National Oceanic and Atmospheric Administration

[Federal Register Volume 84, Number 153 (Thursday, August 8, 2019)]
[Proposed Rules]
[Pages 38912-38918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16979]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Parts 300 and 679

[Docket No. 190802-0009]
RIN 0648-BH94


Pacific Halibut Fisheries; Revisions To Catch Sharing Plan and 
Domestic Management Measures in Alaska

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes regulations that would require Charter Halibut 
Permits (CHPs) to be registered annually with NMFS. In 2010, NMFS 
implemented a Charter Halibut Limited Access Program that issued a 
limited number of CHPs to persons who operate in the guided sport 
(charter) halibut fishery on the waters of International Pacific 
Halibut Commission Regulatory Areas 2C and 3A. The proposed annual 
registration of CHPs is intended to improve the enforcement of CHP 
transfer limitations and ownership caps, as well as provide additional 
information to NMFS and the North Pacific Fishery Management Council on 
any changes in CHP ownership and participation.

DATES: Comments must be received no later than September 9, 2019.

ADDRESSES: You may submit comments, identified by FDMS Docket Number 
NOAA-NMFS-2018-0076, by any of the following methods:
     Federal eRulemaking Portal: Go to www.regulations.gov/#!docketDetail;D= NOAA-NMFS-2018-0076, click the ``Comment Now!'' icon, 
complete the required fields, and enter or attach your comments.
     Mail: Submit written comments to Glenn Merrill, Assistant 
Regional Administrator, Sustainable Fisheries Division, Alaska Region 
NMFS, Attn: James Bruschi. Mail comments to P.O. Box 21668, Juneau, AK 
99802-1668.
    Instructions: NMFS may not consider comments sent by any other 
method, to any other address or individual, or received after the end 
of the comment period. All comments received are a part of the public 
record and will generally be posted for public viewing on https://www.regulations.gov without change. All personal identifying 
information (e.g., name, address), confidential business information, 
or otherwise sensitive information submitted voluntarily by the sender 
will be publicly accessible. NMFS will accept anonymous comments (enter 
N/A in the required fields if you wish to remain anonymous).
    Electronic copies of the Categorical Exclusion and the Regulatory 
Impact Review (RIR) prepared for this action are available from https://www.regulations.gov or from the NMFS Alaska Region website at https://alaskafisheries.noaa.gov.
    Written comments regarding the burden-hour estimates or other 
aspects of the collection-of-information requirements contained in this 
rule may be submitted to NMFS at the above address and by email to 
[email protected] or fax to 202-395-5806.

FOR FURTHER INFORMATION CONTACT: Doug Duncan, 907-586-7228.

SUPPLEMENTARY INFORMATION: 

Authority for Action

    The International Pacific Halibut Commission (IPHC) and NMFS manage 
fishing for Pacific halibut (Hippoglossus stenolepis) through 
regulations established under authority of the Northern Pacific Halibut 
Act of 1982 (Halibut Act). The IPHC adopts regulations governing the 
Pacific halibut fishery under the Convention between the United States 
and Canada for the Preservation of the Halibut Fishery of the North 
Pacific Ocean and Bering Sea (Convention), signed at Ottawa, Ontario, 
on March 2, 1953, as amended by a Protocol Amending the Convention 
(signed at Washington, DC, on March 29, 1979). For the United States, 
regulations developed by the IPHC are subject to acceptance by the 
Secretary of State with concurrence from the Secretary of Commerce. 
After acceptance by the Secretary of State and the Secretary of 
Commerce, NMFS publishes the IPHC regulations in the Federal Register 
as annual management measures pursuant to 50 CFR 300.62.
    The Halibut Act, at sections 773c(a) and (b), provides the 
Secretary of Commerce with general responsibility to carry out the 
Convention and the Halibut Act. In adopting regulations that may be 
necessary to carry out the purposes and objectives of the Convention 
and the Halibut Act, the Secretary of Commerce is directed to consult 
with the Secretary of the department in which the U.S. Coast Guard is 
operating, currently the Department of Homeland Security.
    The Halibut Act, at section 773c(c), also provides the North 
Pacific Fishery Management Council (Council) with

[[Page 38913]]

authority to develop regulations, including limited access regulations, 
that are in addition to, and not in conflict with, approved IPHC 
regulations. Regulations developed by the Council may be implemented by 
NMFS only after approval by the Secretary of Commerce. The Council has 
exercised this authority in the development of subsistence halibut 
fishery management measures, the Charter Halibut Limited Access Program 
(CHLAP), and a catch sharing plan and domestic management measures in 
waters in and off Alaska, codified at 50 CFR parts 300.61, 300.65, 
300.66, and 300.67. The Council also developed the Individual Fishing 
Quota (IFQ) Program for the commercial halibut and sablefish fisheries, 
codified at 50 CFR part 679, under the authority of section 773 of the 
Halibut Act and section 303(b) of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1801 et seq.).

Management of the Halibut Fishery

Description of the Action Area

    This proposed action would change regulations for the management of 
the sport halibut fishery in IPHC Regulatory Areas 2C (Southeast 
Alaska) and 3A (Southcentral Alaska). These regulatory areas are 
referred to as ``IFQ regulatory areas'' throughout the IFQ Program 
regulations at 50 CFR part 679 and as ``Commission regulatory areas'' 
throughout the halibut management regulations at 50 CFR parts 300.61, 
300.65, 300.66, and 300.67. These terms are synonymous with ``IPHC 
regulatory areas'' and may be used interchangeably throughout this 
document. This preamble uses the term ``Area 2C'' and ``Area 3A'' to 
refer to IPHC Regulatory Areas 2C and 3A, respectively.

Background on the Halibut Fishery

    The harvest of halibut in Alaska occurs in three fisheries--the 
commercial, sport, and subsistence fisheries. The commercial halibut 
fishery is managed under the IFQ Program. The sport fishery includes 
guided and unguided anglers. Guided anglers are commonly called 
``charter'' anglers because they fish from chartered vessels. 
Throughout this preamble, the term ``charter fishery'' is used to refer 
to the fishery prosecuted by guided anglers. The subsistence fishery 
provides an opportunity for rural residents and members of an Alaska 
Native tribe to retain halibut for personal use or customary trade.
    The following sections of the preamble summarize charter fishery 
management. Sections 3.1 and 3.2 of the RIR prepared for this action 
provides additional detail on charter halibut management programs that 
have been implemented in Areas 2C and 3A.

Charter Halibut Fishery

    Sport fishing activities for halibut in Areas 2C and 3A are subject 
to different regulations, depending on whether those activities are 
guided or unguided. Guided sport fishing (charter fishing) for halibut 
is subject to charter restrictions under Federal regulations that are 
generally more restrictive than the regulations for unguided anglers. 
Charter fishery regulations apply if a charter vessel guide is 
providing assistance, for compensation, to a person who is sport 
fishing, to take or attempt to take fish during any part of a charter 
vessel fishing trip. Unguided anglers typically use their own vessels 
and equipment, or they may rent a vessel and fish with no assistance 
from a guide.
    Over the years, the Council and NMFS have developed specific 
management programs for the charter fishery to achieve allocation and 
conservation objectives. These management programs maintain stability 
and economic viability in the charter fishery by (1) limiting the 
number of charter vessel operators, (2) allocating halibut to the 
charter fishery that varies with abundance, and (3) establishing a 
process for determining harvest restrictions for charter vessel anglers 
to keep the charter halibut fishery harvest within its allocations.
    The charter fisheries in Areas 2C and 3A are currently managed 
under the CHLAP and the Catch Sharing Plan (CSP). The CHLAP limits the 
number of operators in the charter fishery, while the CSP establishes 
annual allocations to the charter and commercial fisheries and 
describes a process for determining annual management measures to limit 
charter harvest to the allocations in each management area. The CHLAP 
and the CSP are summarized below.

Description of the CHLAP

    The CHLAP established Federal charter halibut permits (throughout 
this preamble, ``CHP'' and ``permit'' are used synonymously) for 
operators in the charter halibut fisheries in Areas 2C and 3A (75 FR 
554, January 5, 2010). Since 2011, all vessel operators in Areas 2C and 
3A with charter anglers on board must have an original, valid permit on 
board during every charter vessel fishing trip on which Pacific halibut 
are caught and retained. CHPs are endorsed for the appropriate 
regulatory area and the number of charter anglers that may catch and 
retain halibut on a trip.
    NMFS implemented this program, based on recommendations by the 
Council, to meet allocation objectives in the charter halibut fishery. 
The program provides stability in the fishery by limiting the number of 
charter vessels that may participate in Areas 2C and 3A. Several basic 
standards were required to initially receive a CHP. They included (1) a 
timely application for a permit; (2) documentation of participation in 
the charter vessel fishery during the qualifying and recent 
participation periods by Alaska Department of Fish and Game (ADF&G) 
logbooks; and (3) ownership of a business that was licensed by ADF&G to 
conduct the guided sport fishing that was reported in the logbooks. 
Licensed business owners that qualified for CHPs included individuals, 
corporations, firms, or associations (50 CFR 300.61). NMFS issued both 
transferable and nontransferable CHPs depending on specific qualifying 
criteria detailed in the final rule implementing the CHLAP (75 FR 554, 
January 5, 2010), and summarized in this preamble.
    To receive an initial issuance of a CHP, vessel operators had to 
meet minimum participation requirements. The basic unit of 
participation for receiving a CHP was a logbook fishing trip. A logbook 
fishing trip is an event that was reported in the ADF&G logbooks within 
a requisite period of time. The minimum participation qualifications 
included documentation of at least five logbook fishing trips during 
one of the qualifying years of 2004 or 2005, and at least five logbook 
fishing trips during 2008. Meeting the minimum participation 
qualifications could qualify an applicant for a nontransferable CHP. To 
qualify for a transferable CHP, the minimum participation 
qualifications included documentation of at least 15 logbook fishing 
trips during one of the qualifying years--2004 or 2005--and at least 15 
logbook fishing trips during 2008.
    At initial issuance, each CHP was endorsed with a maximum number of 
anglers authorized to catch and retain halibut onboard the charter 
vessel. The assigned number of anglers on a CHP was based on the 
highest number of anglers that the applicant reported on any logbook 
fishing trip in 2004 or 2005, subject to a minimum endorsement of four. 
Vessel operators are allowed to stack CHPs to increase the number of 
charter vessel anglers on board.

Special Military and Community Permits

    In addition to transferable and nontransferable CHPs, the CHLAP 
also authorizes NMFS to issue Military

[[Page 38914]]

Charter Halibut Permits (Military CHPs). These permits are available 
for any U.S. Military Morale, Welfare, and Recreation program in Alaska 
operating a halibut charter vessel. To obtain a Military CHP, the 
military program may apply through NMFS at no cost. Military CHPs are 
nontransferable, issued without angler endorsements, and may be used 
only in the regulatory area designated on the permit. NMFS reserves the 
right to limit the number of Military CHPs. Additional detail on 
Military CHPs is provided in the final rule implementing the CHLAP (75 
FR 554, January 5, 2010).
    Specific small rural communities in Areas 2C and 3A are eligible to 
form a Community Quota Entity (CQE) to provide additional harvesting 
opportunities for residents. Regulations at 50 CFR 679.1 describe the 
specific communities eligible to form CQEs and apply for Community 
Charter Halibut Permits (Community CHPs). Similar to Military CHPs, 
qualifying CQEs may obtain a limited number of Community CHPs at no 
cost by applying to NMFS. A charter vessel operator who is using a 
Community CHP is required to either begin or end the charter vessel 
fishing trip within the community designated on the permit. In 
addition, a CQE may also obtain and hold transferable CHPs that are 
separate from their Community CHPs. Operators using either a CHP held 
by a CQE or a Community CHP must have a current ADF&G Saltwater Sport 
Fishing Charter Trip Logbook. An eligible CQE in Area 2C may receive a 
maximum of four Community CHPs and an eligible CQE in Area 3A may 
receive a maximum of seven Community CHPs from NMFS. All Community CHPs 
issued to a CQE are nontransferable, designated for either Area 2C or 
3A, and endorsed for six anglers. CQEs may not hold more than a maximum 
of eight permits in total, including both CHPs and Community CHPs, in 
Area 2C, or 14 permits in total (CHPs and Community CHPs) in Area 3A 
(50 CFR 300.67(k)).

Transferable and Nontransferable CHPs

    The issuance of transferable CHPs establishes a market-based system 
of access to the halibut charter fishery after the initial allocation 
of permits. It also provides a means to freely transfer the halibut 
charter fishing privilege to persons who have a close association to 
the current permit holder, such as family members or business 
associates. A person holding a transferable CHP may transfer the permit 
to another person (individual or non-individual entity) by submitting 
to NMFS an Application for Transfer of Charter Halibut Permit. NMFS 
approves the transfer if (1) the receiver is a U.S. citizen or 75-
percent-owned U.S. business; (2) either party does not owe NMFS any 
fines, civil penalties, or other payments; and (3) the receiver would 
not exceed the excessive share limit (five CHPs). A formal CHP transfer 
is a change of CHP holder as named on the permit and must be approved 
by NMFS. All CHP transfers are considered permanent; NMFS does not 
approve limited-duration transfers.
    Nontransferable CHPs were authorized as a means to allow a business 
with relatively low participation in the qualifying years established 
by the CHLAP to continue to operate, while reducing the size of the 
charter fleet over time. Nontransferable CHPs may not be transferred to 
another individual or business entity, and the permits are invalidated 
when a permit holder dies, or the business entity that holds the permit 
dissolves. Nontransferable CHPs are also invalidated when new 
shareholders or partners are added to a business, which, under the 
CHLAP regulations, creates a new business entity and would otherwise 
require the permit to be transferred. Business entities that hold 
nontransferable CHPs may continue to hold the permit if they reduce the 
number of individuals who were listed as owners of the permit at 
initial issuance; however, no new individuals may be added to the 
ownership structure. Regulations describing CHP limitations, including 
ownership changes, are located at Sec.  300.67(j).

Ownership Caps

    The CHLAP included regulations that prohibit a person or entity 
from holding more than five CHPs (under most conditions) to limit 
potential consolidation in the charter fishery and provide continuing 
opportunities to access the fishery. Existing businesses that initially 
qualified for more than five permits were allowed to continue their 
business at levels above this excessive share standard; however, they 
are prevented from acquiring more permits than their initial 
allocation. Permit transfers that will result in a person, business, or 
other entity receiving more than five permits are only approved by NMFS 
under limited exceptions. This preamble uses the term ``ownership cap'' 
to describe the limit on the number of CHPs that a person or entity is 
eligible to hold because it is commonly used by participants in the 
charter halibut fishery. The final rule implementing the CHLAP 
describes the factors that the Council and NMFS considered when 
establishing ownership caps. Regulations at 50 CFR 300.67 describe the 
limitations on the use of CHPs.
    To implement the ownership cap for corporations or other business 
entities, NMFS adopted a 10 percent ownership criterion that prevents a 
corporation from exceeding the excessive share standard by owning or 
controlling subsidiary businesses where the sum of CHPs held by the 
businesses exceed the maximum number of allowable permits. Under this 
definition, two entities are considered the same entity if one owns or 
controls 10 percent or more of the other. Ownership shares were 
initially accounted for on the applications for CHPs. If the initial 
applicant was not a sole individual, then the corporation, partnership, 
or other business entity that made the application was required to 
submit the names of all the individual owners of the business entity, 
together with the percent of the business ownership for each 
individual.
    If there is a change in the ownership of either transferable or 
nontransferable CHPs, the owner is required to notify NMFS. For an 
individual, a ``change'' might mean that the person has died, in which 
case, NMFS must be notified within 30 days of the individual's death 
(Sec.  300.67(j)(5)(i)). For corporations, partnerships, or other non-
individual entities, a ``change'' occurs when a new partner is added, 
unless it is a court appointed trustee acting on behalf of an 
incapacitated partner (Sec.  679.42(j)(4)(i)). Business entity changes 
must be registered with NMFS within 15 days of the effective date of 
the change. Many ownership changes occur when a CHP is transferred; 
however, other changes occur when a business entity simply adds 
partners or shareholders or an individual dies. In either case, whether 
there is a CHP transfer or not, CHP owners are required to notify NMFS 
if changes are made to the ownership structure of the permit.
    Monitoring the ownership structure of CHPs is necessary for NMFS to 
implement and enforce features of the CHLAP, such as transfer 
provisions, ownership caps, and the retirement of nontransferable CHPs.
    Complete regulations for the CHLAP are published at 50 CFR 300.65, 
300.66, and 300.67.

NMFS Administration of CHPs

    Currently, CHPs are indefinitely valid for the initial recipient or 
transferee until the permit is transferred, reissued, or subject to a 
qualifying change of ownership. Reissues most commonly occur when a CHP 
is lost or destroyed. To obtain a replacement CHP, the CHP holder must 
submit an Application for Replacement of Certificates or Permits

[[Page 38915]]

to NMFS or submit a written request that is signed by the CHP holder or 
an authorized representative. Upon transfer or reissuance, NMFS issues 
a different version of the CHP. Each CHP has a unique and ongoing 
serial number with a character to identify the version of the CHP that 
is currently in use. Initial permits were issued as version ``A,'' 
while subsequent versions are identified with sequential characters 
(e.g., ``B,'' ``C,'' ``D''). In this respect, the character version of 
the CHP approximates the number of times the permit has been 
transferred or reissued. If a permit is not lost, destroyed, 
transferred, or subject to a reported change in ownership, then holder 
and contact information may fall out of date because there is no 
regular reporting requirement to NMFS.

Need for This Action

    This proposed rule would address the Council's intent to advance 
several of the Council's goals under the CHLAP. This rule would aid in 
the enforcement of CHP ownership caps and help ensure compliance 
through the annual registration and issuance of valid permits. By 
annually documenting the ownership structure of active CHPs, this 
proposed rule would also facilitate the retirement of nontransferable 
permits, and address the Council's intent to collect information on the 
use of CHPs by identifying whether the CHP holder received financial 
compensation for use of the permit in previous years.
    The Council's intent was reflected in the purpose and need 
statement adopted at final action in April 2018. The Council's purpose 
and need, and final motion is available at: https://legistar2.granicus.com/npfmc/meetings/2018/4/977_A_North_Pacific_Council_18-04-02_Meeting_Agenda.pdf.
    Section 1.2 of the RIR also provides a summary of the history of 
this action.

This Proposed Rule

    This proposed rule would implement an annual registration 
requirement for CHPs. To be valid, a CHP would need to be registered 
with NMFS each calendar year before use. This annual registration 
requirement would not apply to Military CHPs or Community CHPs, but 
would apply to CHPs held by CQEs. In determining whether to implement 
an annual registration requirement, and what information would be 
collected during registration, the Council and NMFS considered two 
alternatives, described in Sections 2.1 and 2.2 of the RIR prepared for 
this action. Under the preferred alternative (Alternative 2), the 
registration process would require submission of CHP holder name, CHP 
number, CHP holder address, CHP holder phone number and/or email 
address, CHP ownership holdings including all partners and corporate 
entities, and a ``yes'' or ``no'' question that asks whether financial 
compensation for the use of the CHP was received in the preceding year. 
After approval of a CHP annual registration, NMFS would issue a new, 
original valid CHP to the permit holder and update the published list 
of CHP information. A CHP would be valid for the remainder of the 
calendar year in which it is registered and issued, unless it is 
transferred. Previous versions of the CHP would not be valid. 
Consistent with existing regulations at Sec.  300.67, a charter vessel 
guide must have an original valid CHP onboard when catching and 
retaining halibut during a charter vessel fishing trip.
    Under this proposed rule, the transfer of a CHP would be a separate 
process from the annual registration of a CHP. As noted above, if a CHP 
is not registered in a calendar year, it would not be valid for use 
until a complete registration form is submitted to and approved by 
NMFS. In a situation where a registered CHP is transferred in a year, 
if the new owner also intends to use that CHP in that year, they would 
also be required to submit a complete CHP registration form to be 
issued an original valid CHP. A new CHP would then be issued and 
imprinted with the new owner's information. The RIR indicates that, on 
average, there have been 41 transfers of CHPs each year.
    This proposed rule would not require Community CHPs and Military 
CHPs to be annually registered. Community CHPs and Military CHPs are 
issued by NMFS to eligible entities and are nontransferable. Although 
the CHLAP defines Community and Military CHPs as nontransferable, these 
permits were issued not based on specific charter halibut landings 
during a qualifying period, but to provide access opportunities for 
military personnel and economic benefits to small rural communities. An 
annual registration process that could result in limiting the use of 
Community and Military CHPs would be inconsistent with the purpose of 
these special permits. Additional information on the rationale for 
issuing Community and Military CHPs is provided in the final rule 
implementing the CHLAP (75 FR 554, January 5, 2010). The RIR prepared 
for this rule indicates that there are a limited number of these 
special permits; 48 Community CHPs and one Military CHP have been 
issued for Area 2C, and 63 Community CHPs and 7 Military CHPs have been 
issued for Area 3A. Overall, this represents approximately 10 percent 
of the total number of CHPs in Areas 2C and 3A (Section 3.2.1 of the 
RIR). Additionally, Community CHPs are subject to an annual reporting 
requirement where CQEs must report ownership and use information. 
Adding an annual registration to collect information similar to the 
existing annual report could create unnecessary duplication.
    Currently, NMFS may receive updated CHP ownership and contact 
information when a transfer occurs, or when the death of the permit 
holder or an ownership change is reported. Implementing an annual 
registration requirement in Sec.  300.67(a) would ensure annual 
reporting of active CHP holder information to NMFS, which would improve 
enforcement of these provisions and ensure that this information is 
updated annually for active CHPs. This is particularly important for 
nontransferable CHPs, which are no longer valid upon the holder's death 
or when a CHP holding entity dissolves, or when there is a change in 
ownership, as defined in Sec.  300.67(j)(5). The annual registration 
and issuance of CHPs would simplify enforcement and reduce 
unintentional and intentional violations arising from unreported 
nontransferable CHP ownership changes.
    The Council and NMFS considered two other options for annual 
registration information collections; one requiring submission of the 
natural person(s) and vessel(s) that would use the CHP during a fishing 
year, and the other requiring submission of where a nontransferable 
permit would be used during the fishing year. The Council and NMFS 
decided against implementing these registration information collections 
because a CHP holder may not know the specific person who will be 
harvesting charter halibut under that CHP, which vessel will be using 
that specific CHP, and specifically where a CHP would be used at the 
time of registration. Among other things, the Council wanted to avoid 
the possibility of limiting the operational flexibility of CHP holders.
    CHP holders would be required to indicate whether they had received 
financial compensation for use of their CHP in the preceding year on 
their annual registration application. There is no requirement that a 
CHP holder be present when the CHP is being used on a charter vessel, 
which effectively allows the leasing or lending of CHPs. Although this 
was a deliberate feature of the CHLAP, and this proposed regulation 
would not restrict lending or leasing, by collecting information on 
financial compensation, the Council and NMFS will be better informed 
about charter vessel operations, which would

[[Page 38916]]

serve to inform program evaluations and decisions on potential future 
management actions.
    The Council and NMFS considered another option that would have 
provided information about CHP leasing. The Council and NMFS considered 
one option that would have asked the annual applicant if a CHP was used 
by an operator who was not part of the CHP ownership structure; whether 
the owner of the CHP received compensation for the use of the CHP, and 
if so, to provide the details of compensation. The Council and NMFS 
recognized the diversity in potential leasing structures and 
compensation terms, and the possibility of significant confusion among 
annual registration applicants if detailed information was requested. 
Therefore, the Council recommended and this proposed rule would require 
only that the annual registration applicant indicate if financial 
compensation was received for use of the CHP in the preceding year, 
with a ``yes'' or ``no'' answer.
    This proposed rule also establishes a standard process in the event 
a CHP annual registration is denied. A denial could occur due to an 
incomplete or inaccurate registration application, registration of a 
non-transferable permit by a non-eligible holder, violation of a CHP 
holding limitation, or other reasons. If this occurs, NMFS would inform 
the applicant why the annual registration was denied and begin a 30 day 
period in which the applicant can correct the application. If NMFS 
determines that there is still sufficient reason to deny the 
application after corrections and evidence are received during the 30 
day period, an Initial Administrative Determination (IAD) detailing the 
problems would be issued to the applicant. An applicant that has 
received an IAD could appeal the denial to the Office of Administrative 
Appeals. This is consistent with the process relating to the denial and 
appeal of other NMFS fishing permits.
    Finally, this proposed rule makes a non-substantive update to the 
appeal process for a CHP application. It would revise the outdated 
reference for the Office of Administrative Appeals in order to bring it 
up to date with current regulations. This would not change how appeals 
are currently made or handled.

Proposed Revisions to Sec. Sec.  300.67 and 679.4

    This proposed rule would add new paragraph to Sec.  300.67(a)(4) 
that would require annual registration of CHPs, describe the 
registration process, define what constitutes a complete annual 
registration, and identify an appeal process. Section 300.67(h)(6) 
would be revised to correct the reference to the appeals process.
    The table in Sec.  679.4(a)(1) would be revised to indicate that 
CHPs would be in effect until the expiration date shown on the permit, 
rather than indefinitely.

Classification

    Regulations governing the U.S. fisheries for Pacific halibut are 
developed by the IPHC, the Pacific Fishery Management Council, the 
North Pacific Fishery Management Council, and the Secretary of 
Commerce. Section 5 of the Halibut Act (16 U.S.C. 773c) allows the 
Regional Council having authority for a particular geographical area to 
develop regulations governing fishing for halibut in U.S. Convention 
waters as long as those regulations do not conflict with IPHC 
regulations. The Halibut Act at section 773c(a) and (b) provides the 
Secretary of Commerce with the general responsibility to carry out the 
Convention with the authority to, in consultation with the Secretary of 
the department in which the U.S. Coast Guard is operating, adopt such 
regulations as may be necessary to carry out the purposes and 
objectives of the Convention and the Halibut Act. This proposed rule is 
consistent with the Halibut Act and other applicable laws.

Executive Order 12866

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant under 
Executive Order 12866. This proposed rule also complies with the 
Secretary of Commerce's authority under the Halibut Act to implement 
management measures for the halibut fishery.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration (SBA) that this proposed rule, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. NMFS requests comments on the decision to certify this 
proposed rule. The factual basis for this determination is as follows:
    This proposed rule would directly regulate (1) individuals and 
entities holding CHPs, and (2) Community Quota Entities that hold CHPs. 
As of 2017, there were approximately 550 CHP holders. It is unlikely 
that the largest of the affected CHP holders would be considered large 
entities under SBA standards; however, that cannot be confirmed because 
NMFS does not have or collect economic data on permit holders necessary 
to definitively determine total annual receipts. Thus, all CHP holders 
are considered small entities, based on SBA criteria.
    Eligible CQEs may obtain CHPs; therefore, this proposed rule may 
directly regulate entities representing small, remote communities in 
Areas 2C and 3A. There are 34 communities in Area 2C and 14 in Area 3A 
eligible to obtain CHPs. Of these, all have populations less than 
50,000 and are considered to be small government jurisdictions.
    The proposed annual registration of CHPs is intended to improve the 
enforcement of existing permit transfer limitations, ownership caps, 
and provide additional information to NMFS and the North Pacific 
Fishery Management Council on any changes in permit ownership and 
participation in the charter halibut sector. The estimated annual cost 
burden is less than $20 per application. This proposed action, 
therefore, is not expected to have a significant economic impact on a 
substantial number of the small entities directly regulated by this 
proposed action. As a result, an initial regulatory flexibility 
analysis is not required, and none has been prepared.

Regulatory Impact Review

    An RIR was prepared to assess all costs and benefits of available 
regulatory alternatives. A copy of the RIR is available from NMFS (see 
ADDRESSES). The Council recommended this proposed action based on those 
measures that maximized net benefits to the Nation.

Collection-of-Information Requirements

    This proposed rule mentions but would not change the following 
collection-of information-requirements: ADF&G Saltwater Sport Fishing 
Charter Trip Logbook (OMB Control Number 0648-0575); Application for 
Replacement of Certificates or Permits (OMB Control Number 0648-0272); 
the CQE Annual Report (OMB Control Number 0648-0665); and the 
Application for Transfer of CHP and the Application for Transfer 
Between IFQ and GAF (OMB Control Number 0648-0592).
    This proposed rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). NMFS has submitted these 
requirements to OMB for approval under OMB Control Number 0648-0592, 
Pacific Halibut Fisheries: Charter Permits. Public reporting burden is

[[Page 38917]]

estimated to average 15 minutes per response for the application for 
annual registration of a CHP and 4 hours per response for appeal of a 
denied application. These estimates include the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection information.
    Public comment is sought regarding whether these proposed 
collections of information are necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collections of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collections of information to NMFS 
(see ADDRESSES), and by email to [email protected], or fax to 
(202) 395-5806.
    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. All currently approved NOAA 
collections of information may be viewed at https://www.cio.noaa.gov/services_programs/prasubs.html.

List of Subjects

50 CFR Part 300

    Administrative practice and procedure, Antarctica, Canada, Exports, 
Fish, Fisheries, Fishing, Imports, Indians, Labeling, Marine resources, 
Reporting and recordkeeping requirements, Russian Federation, 
Transportation, Treaties, Wildlife.

50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: August 2, 2019.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, NMFS proposes to amend 50 
CFR parts 300 and 679 as follows:

PART 300--INTERNATIONAL FISHERIES REGULATIONS

Subpart E--Pacific Halibut Fisheries

0
1. The authority citation for part 300, subpart E, continues to read as 
follows:

    Authority: 16 U.S.C. 773-773k.

0
2. In Sec.  300.67:
0
a. Add paragraph (a)(4); and
0
b. Revise paragraph (h)(6) introductory text to read as follows:


Sec.  300.67  Charter halibut limited access program.

* * * * *
    (a) * * *
    (4) Annual registration. A charter halibut permit holder must 
register a charter halibut permit with NMFS during the calendar year 
when it will be used to be valid.
    (i) Application and submittal. An application for a charter halibut 
permit annual registration will be made available by NMFS. A completed 
registration application may be submitted using the NMFS-approved 
electronic reporting system on the Alaska Region website at https://alaskafisheries.noaa.gov. Completed applications may also be submitted 
by mail, hand delivery, or facsimile at any time to the address(s) 
listed on the application.
    (ii) Complete annual registration. To be complete, a charter 
halibut permit registration application must have all required fields 
accurately completed and be signed and dated by the applicant.
    (iii) Denied registration applications. If NMFS does not approve an 
annual charter halibut permit registration application, NMFS will 
inform the applicant of the basis for its disapproval and provide the 
applicant with a 30-day evidentiary period in which to correct any 
application deficiencies.
    (A) Initial Administration Determination (IAD). NMFS will send an 
IAD to the applicant following the expiration of the 30-day evidentiary 
period if NMFS determines there is sufficient reason to deny the 
application. The IAD will indicate the deficiencies in the application 
and the deficiencies with the information submitted by the applicant in 
support of its claim.
    (B) Appeal. An applicant that receives an IAD may appeal to the 
Office of Administrative Appeals (OAA) pursuant to 15 CFR part 906.
* * * * *
    (h) * * *
    (6) Appeal. An applicant that receives an IAD may appeal to the 
Office of Administrative Appeals (OAA) pursuant to 15 CFR part 906.
* * * * *

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

0
3. The authority citation for 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; Pub. L. 111-281.

0
4. In Sec.  679.4, revise paragraph (a)(1)(xv)(A) as follows:


Sec.  679.4  Permits.

    (a) * * *
    (1) * * *

----------------------------------------------------------------------------------------------------------------
                                       Permit is in effect from
 If program permit or card type is:   issue date through the end          For more information, see . . .
                                                 of:
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
(xv) * * *.........................
(A) Charter halibut permit.........  Until expiration date shown  Sec.   300.67 of this title.
                                      on permit.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


[[Page 38918]]

* * * * *
[FR Doc. 2019-16979 Filed 8-7-19; 8:45 am]
BILLING CODE 3510-22-P