[Federal Register Volume 59, Number 48 (Friday, March 11, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-5644] [[Page Unknown]] [Federal Register: March 11, 1994] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 601 Docket No. [940259-4059; I.D. 100793B] RIN 0648-AG16 Regional Fishery Management Councils; Guidelines for Council Operations/Administration AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Interim final rule. ----------------------------------------------------------------------- SUMMARY: NMFS issues this interim final rule to revise regulations concerning the practices, procedures, and operations of the Regional Fishery Management Councils (Councils) under the Magnuson Fishery Conservation and Management Act (Magnuson Act). This action would foster fuller disclosure and make information easier to access in required financial disclosures of Councils' nominees, voting members, and Executive Directors. It is intended to disclose possible financial conflicts of interest. DATES: This interim final rule is effective April 11, 1994. Comments must be received on or before May 10, 1994. ADDRESSES: Send comments on this interim final rule and requests for copies of NOAA Form 88-195 to: Richard H. Schaefer, Director, Office of Fisheries Conservation and Management, NOAA, NMFS, Silver Spring Metro Center #3, 1315 East-West Highway, Silver Spring, MD 20910. Send comments on collection-of-information requirements to: The Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503 (Attention: Desk Officer for NOAA). FOR FURTHER INFORMATION CONTACT: Richard W. Surdi, Office of Fisheries Conservation and Management, room 14600, telephone (301) 713-2337, Silver Spring Metro Center #3, 1315 East-West Highway, Silver Spring, MD 20910. SUPPLEMENTARY INFORMATION: Background NMFS received a petition for rulemaking from Emerald Seafoods, Emerald Resource Management, Seahawk Pacific Seafoods, Seacatcher Fisheries and Swan Fisheries asking the Secretary of Commerce (Secretary) to adopt regulations related to: (1) Financial disclosure requirements of Council members, (2) emergency rulemakings, (3) requirements to balance the membership of the North Pacific Fishery Management Council between different fishing interests, and (4) general procedures for Secretarial review of fishery management plans (FMPs) and regulatory amendments. NMFS published a notice of receipt of the petition for rulemaking and a request for comments on April 15, 1991 (56 FR 15072). Comments and Responses Three comments were received on the petition for rulemaking. These were from Williams, Kastner and Gibbs (representing the petitioners), American Factory Trawler Association, and Royal Seafoods, Inc. All three commenters supported the petition and, in some cases, expanded on the rationale for adoption of the proposed provisions. One commenter had an additional comment concerning unconstrained conflicts of interest among Council members. This commenter indicated that there is a fine line between the need for industry expertise and conflicts of interest. The current system, which allows Council members to vote on issues where they have a direct financial interest, crosses over the line of acceptability. Citing E.O. 12674, commenters suggested that NMFS develop a comprehensive set of rules governing Council member conduct on issues in which they have a direct financial interest. Because E.O. 12674 is specific in that it can apply only to Federal employees, it cannot be used as a basis for regulations governing Council members, who are not Federal employees. Furthermore, Congress provided for industry members to participate in and vote on issues in which they have a financial interest. Paragraph (A) of section 302(b) of the Magnuson Act (16 U.S.C. 1852(b)(2)) provides for the appointment of members based on their occupational experience, and paragraph (B) requires a fair and balanced apportionment of the active participants in the commercial and recreational fisheries under a Council's jurisdiction when making appointments to that Council. Furthermore, guidance for the conduct of Council members specifically, and members of any deliberative body, in general, already exists. Discussion NMFS has considered the petition, public comments, and other related issues, and decided to proceed with several of the rulemaking suggestions proposed in the petition. The following paragraphs list the suggestions contained in the petition for rulemaking, provide an explanation as to why NMFS has decided to accept or reject the suggested rulemaking, and describe the changes to be made. 1. Adopt a regulation that provides for meaningful disclosure of the financial interests of Council members. The petitioners requested six additional areas of information be added to the financial form for Council members, including fisheries participated in, product types produced, gear type used, revenue generated, identity of primary buyers, and financial interest of stockholders in a privately held corporation in which the Council member is a stockholder. NMFS has determined that NOAA Form 88-195, ``Statement of Financial Interests for Use by Voting Members, Nominees and Executive Directors of Regional Fishery Management Councils,'' should be amended to include information concerning the fisheries participated in, the product type produced, and the gear type utilized. This information will better identify the nature of a Council member's financial interest. Additional revisions not noted in the petition are made to delete Part I of the form, which presently is completed by the Agency but is no longer useful, and to add a statement to the General Provisions section concerning penalties for false or incomplete information. The petitioners also requested that the form be updated every 6 months, on January 15 and June 15. Section 601.37 of title 50 CFR is amended to require that Council members update the form annually, beginning February 1, 1995, in addition to updating the form when a financial interest is acquired or substantially changed, as is now required. NMFS finds that requiring updates only as interests are acquired or substantially changed does not provide for disclosure of modest, but important, changes in financial interests and divestitures of interests. Requiring an annual update will bring into focus a member's need to update the current status of his/her interests, particularly in terms of fishery participation, gear utilized, or product types produced. NMFS also believes it appropriate to make financial disclosure forms more readily available to the public. Section 601.37 accordingly is amended to require financial disclosure forms be available at all Council meetings, and that their availability be so noted on the agenda for each meeting. This provision is in addition to the requirement of having the forms kept on file and available to the public at the Council offices. 2. Adopt a rule that prohibits biological reasons from being used to support an emergency rule unless a Council's Scientific and Statistical Committee (SSC) concurs that a biological justification exists. NMFS rejected this provision because the Secretary does not have the authority to condition a recommendation for emergency action by the Council on the approval of an advisory body, such as the SSC. NMFS notes, however, that a Council may establish such a condition as part of an FMP. 3. Adopt a rule that requires the Secretary to balance the governor-nominated voting membership of the North Pacific Fishery Management Council (NPFMC) between the at-sea processing fleet and the onshore processing fleet. NMFS rejected this provision because its enactment would be redundant to an existing provision of the Magnuson Act. Section 302(b) of the Magnuson Act (see also interpretive policy published May 24, 1991, at 56 FR 23856) provides that the Secretary ``* * * shall, to the extent practicable, ensure a fair and balanced apportionment, on a rotating or other basis, of the active participants (or their representatives) in the commercial and recreational fisheries under the jurisdiction of the Council.'' Congress established a limited number of seats on the Regional Fishery Management Councils to which the Secretary appoints voting members. Only seven such seats are established on the NPFMC. Considering the broad range of industry sectors, gear types, and other interests that might wish representation on the NPFMC and other Councils, it would be impossible to have every interest represented. NMFS further finds that there are numerous alternatives for having ideas and concerns considered by the Councils and their panels, including participation in committee and panel meetings, testifying at Council meetings, and providing the Council with written testimony, suggestions, comments, or data. 4. Adopt a rule that sets forth clearly the procedures for Secretarial review of regulations and amendments that have been recommended to the Secretary for implementation by a Council. The petitioners requested rulemaking that would: (1) Set forth the review process followed by the Secretary when reviewing a regulation or amendment, and (2) require all final rules promulgated by the Secretary to set forth the procedure followed in reviewing the regulation or amendment. These proposals are rejected. Detailed information concerning the schedule and timing of the review process for an FMP or amendment is available in the ``Operational Guidelines--Fishery Management Plan Process.'' In addition, a detailed schedule of events and dates is available for final Secretarial review of a specific plan or amendment. Both documents are available to the public upon request from NMFS (see ADDRESSES). A summary of key target dates relative to the date of receipt from the Council follows. The dates noted are target dates only and are subject to change, except those dates specified in the Magnuson Act (so noted by an asterisk). Date and Event Day 0*--Receipt date of FMP or amendment from Council. Day 1*--Begin Secretarial review and 60-day public comment on the FMP or amendment. Day 9--Assistant Administrator for Fisheries (AA), NOAA , clears proposed rule for continued review and publication in the Federal Register. Day 15*--Secretary makes such changes as may be necessary and publishes rule with any changes, together with an explanation of changes which are substantive. Day 60*--Public comment period ends on FMP or FMP amendment and proposed rule. Day 73--Regional Director transmits final rule package to NMFS headquarters. Day 95*--FMP or FMP Amendment is formally approved, disapproved, or partially disapproved, and Council is notified of decision. Day 110*--Final regulations published in the Federal Register. Day 140--End of Administrative Procedure Act 30-day delayed effectiveness period. Final regulations become effective. The suggestion that all final rules disclose who reviewed the rule or amendment, what was reviewed, and the identity of the person who determined that the rule complied with the national standards is also rejected. It is impractical and of no benefit to identify all those who reviewed the rule or amendment, and to identify what was reviewed. Except for the actual decisionmakers, all reviews are considered advisory. Classification The AA has determined that this action is necessary for the efficient administration and responsible operation of Councils and is consistent with the Magnuson Act and other applicable law. This interim final rule contains a modification to a collection-of- information requirement previously approved by the Office of Management and Budget (OMB) under OMB No. 0648-0192. Several new requirements are added to NOAA Form 88-195, part II, under the section titled ``Financial Interests.'' Each voting member and Executive Director of a Council and new nominees for Secretarial appointment to a Council are required to provide information concerning: (1) Fisheries participated in under Council jurisdiction, (2) the product types produced, and (3) gear types utilized. Council members are required to update the form by February 1 of each year, in addition to updating the form when a financial interest is acquired or substantially changed, as is now required. Part I, which is routinely completed by NMFS, is removed from the form. A request for clearance of this change has received OMB approval. Public reporting burden for this collection of information is expected to increase by 5 minutes per respondent to an average 35 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Please send comments concerning the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to OMB (see ADDRESSES). Pursuant to section 553(b)(B) of the Administrative Procedure Act, the AA finds that prior notice and comment is contrary to the public interest, because this rule institutes procedural changes that provide increased information to the public regarding possible financial conflicts of interest of individuals involved in establishing fishery conservation and management measures. In addition, public comment was solicited on the petition for rulemaking, and the additional data requirements contained in the financial disclosure form were sent to the regional fishery management Councils for review. This rule is not subject to review under E.O. 12866. List of Subjects in 50 CFR Part 601 Administrative practice and procedure, Fisheries, Fishing. Dated: March 6, 1994. Nancy Foster, Deputy Assistant Administrator for Fisheries, National Marine Fisheries Service. For the reasons set out in the preamble, 50 CFR part 601 is amended as follows: PART 601--REGIONAL FISHERY MANAGEMENT COUNCILS 1. The authority citation for part 601 continues to read as follows: Authority: 16 U.S.C. 1801 et seq. 2. In section 601.37, paragraph (a) is revised to read as follows: Sec. 601.37 Financial disclosure. (a) The Magnuson Act requires the disclosure by each Council nominee, voting member appointed to the Council by the Secretary, and Executive Director, of any financial interest of the reporting individual in any harvesting, processing, or marketing activity that is being, or will be, undertaken within any fishery under the authority of the individual's Council, and of any such financial interest of the reporting individual's spouse, minor child, partner, or any organization (other than the Council) in which that individual is serving as an officer, director, trustee, partner, or employee. The information required to be reported must be disclosed on NOAA Form 88- 195, ``Statement of Financial Interests for Use by Voting Members, Nominees, and Executive Directors of Regional Fishery Management Councils'' (Financial Interest Form), or such other form as the Secretary, or designee, may prescribe. The report must be filed by each nominee for Secretarial appointment before the date of appointment as prescribed by the Secretary. Voting members appointed by the Secretary, and Executive Directors, must file an update of the report with the Executive Director of the appropriate Council, with a copy sent to the NMFS Regional Director for the geographic area concerned, on or before February 1 of each calendar year. Individuals must also update the form at any time a reportable financial interest is acquired or the financial interests are otherwise substantially changed. The Financial Interest Forms will be kept on file, and made available for public inspection at reasonable hours at the Council offices. In addition, the forms will be available for inspection at each Council meeting and their availability will be so noted on the Council meeting agenda. * * * * * [FR Doc. 94-5644 Filed 3-10-94; 8:45 am] BILLING CODE 3510-22-P