[Federal Register Volume 64, Number 74 (Monday, April 19, 1999)]
[Proposed Rules]
[Pages 19113-19117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9731]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 990407088-9088-01; I.D. 030999A]
RIN 0648-AK69


Fisheries of the Exclusive Economic Zone Off Alaska; License 
Limitation Program

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

ACTION: Proposed rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: NMFS issues a proposed rule that would amend the regulations 
implementing the License Limitation Program (LLP) for the groundfish 
fisheries and the king and tanner crab fisheries of the exclusive 
economic zone (EEZ) off Alaska by adding an application process and a 
transfer process for licenses. This proposed rule would establish an 
application process for an LLP license by providing for an application 
period, specifying the type of information necessary for license 
eligibility, and providing the procedure for appealing agency 
determinations that are made based on information and evidence provided 
in support of applications. The proposed rule also would establish a 
transfer process for LLP licenses. This action is necessary to complete 
implementation of the LLP, a fishery management program recommended by 
the North Pacific Fishery Management Council (Council), and intended to 
further the objectives of the Fishery Management Plan (FMP) for the 
Groundfish Fishery of the Bering Sea and Aleutian Islands Area (BSAI), 
the Fishery Management Plan for Groundfish of Gulf of Alaska (GOA), and 
the Fishery Management Plan for the Commercial King and Tanner Crab 
Fisheries in the Bering Sea and Aleutian Islands.

DATES: Comments must be received by May 19, 1999.

ADDRESSES: Comments should be addressed to Susan J. Salveson, Assistant 
Regional Administrator for Sustainable Fisheries, Sustainable Fisheries 
Division, Alaska Region, NMFS, 709 West 9th Street, Room 453, Juneau, 
AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori J. 
Gravel. Send comments regarding burden estimates or any other aspect of 
the data requirements, including suggestions for reducing the burdens, 
to NMFS and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget (OMB), Washington, DC 20503, Attn: NOAA Desk 
Officer.

FOR FURTHER INFORMATION CONTACT: John Lepore, 907-586-7228.

SUPPLEMENTARY INFORMATION: NMFS manages the U.S. groundfish fisheries 
of the GOA and the BSAI in the exclusive economic zone (EEZ) pursuant 
to the FMPs for groundfish in the respective management areas. The 
state of Alaska manages the commercial king crab and Tanner crab 
fisheries in the Bering Sea and the Aleutian Islands with Federal 
oversight, pursuant to the FMP for those fisheries. The Council 
prepared the FMPs pursuant to the Magnuson-Stevens Fishery Conservation 
and Management Act (Magnuson-Stevens Act), 16 U.S.C. 1801, et seq. 
Regulations at 50 CFR part 679 implemented the FMPs. General 
regulations at 50 CFR 600 also apply.
    Fishing under the LLP for the commercial groundfish fisheries in 
the EEZ of the GOA and the BSAI and the commercial king crab and Tanner 
crab fisheries in the Bering Sea and Aleutian Islands fishing is 
scheduled to begin January 1, 2000. The LLP will replace the Vessel 
Moratorium Program (VMP), which is scheduled to expire December 31, 
1999 (64 FR 3651, January 25, 1999). The VMP which was implemented to 
curtail increases in fishing capacity and to provide industry stability 
while the Council developed and NMFS implemented a comprehensive 
solution for the affected fisheries. The LLP is an integral part of 
that solution.
    The Council took final action to recommend the LLP in June 1995. 
The design and implementation of the LLP required more time than 
originally anticipated. When the final rule implementing the LLP was 
published on October 1, 1998 (63 FR 52642), the application process and 
the transfer process were postponed for further development. Paragraphs 
at Sec. 679.4(k)(6) [Application Process] and Sec. 679.4(k)(7) 
[Transfer Process] were reserved to allow for the inclusion of these 
processes.

Application Process for LLP Licenses

    This proposed rule would provide for a one-time application period 
of no less than 90 days to be specified by a notice in the Federal 
Register. NMFS anticipates that the application period for LLP licenses 
will be in the second half of 1999. All applications for LLP licenses 
would have to be submitted during the time period specified for 
applying for a license. Applications postmarked after the ending date 
for the application period would be denied.
    In anticipation of the information that will be necessary to 
evaluate and verify the claims of an applicant, NMFS is compiling a 
database containing information on vessels that were used to 
participate in the groundfish and crab fisheries during the qualifying 
periods for licenses. This database will constitute the official LLP 
record that will contain only complete and verifiable information and 
that, under this proposed rule, would be used for the purpose of 
determining eligibility for a license. An applicant who includes 
information in an application that is inconsistent with information in 
the

[[Page 19114]]

official LLP record would have the burden of proving that the 
information submitted in the application is correct.
    NMFS would compare the official LLP record for each applicant with 
the qualification criteria specified in the LLP final rule (63 FR 
52642, October 1, 1998). Based on that comparison, NMFS would prepare a 
summary of qualifications for those applicants appearing to be 
eligible. NMFS would send these applicants an application form and a 
copy of the summary of qualifications. Application forms also would be 
available on request. Applicants who agree with the summary of 
qualifications would merely need to complete the application with the 
provided data and include any other information requested on the form. 
Using the information from the summary of qualifications (by either 
NMFS or the applicant) is intended to expedite application processing 
because this information would be consistent with information in the 
official LLP record.
    If an applicant agrees with the information in the summary of 
qualifications, and the information is sufficient to qualify the 
applicant for a license, NMFS would issue a license to the applicant at 
the conclusion of the application period. However, if an applicant 
disagrees with the information provided in the summary of 
qualifications, the applicant would have 60 days to submit information 
in the application other than that contained in the summary of 
qualifications. For example, an applicant could provide state fish 
tickets or Weekly Production Reports to verify documented harvests not 
found in the official LLP record. Or, an applicant could provide a 
sales contract verifying vessel ownership. Unsubstantiated or 
incompletely verified information would not be accepted. If an 
applicant is able to meet the burden of proving that the information 
submitted in the application is correct and sufficient to qualify the 
applicant for a license, NMFS would issue a license to the applicant at 
the conclusion of the application period.
    If the applicant submits information in the application that is 
inconsistent with the information in the official LLP record but cannot 
be verified with evidence provided with the application, NMFS would not 
accept that information. NMFS would notify the applicant that the 
information provided in the application is inconsistent with 
information in the official LLP record or that necessary information is 
missing. The applicant would have 60 days in which to submit evidence 
to prove that the information provided in the application is correct or 
to submit missing information. An applicant would be limited to one 60-
day period to submit evidence or to correct or submit missing 
information.
    If information in the application could not be substantiated or 
verified at the conclusion of the 60-day evidentiary period, NMFS would 
issue an initial administrative determination (IAD) indicating which 
information in the application is not accepted, and why. Applicants 
would then have an opportunity to appeal that IAD to the Regional 
Administrator. Section 679.43(d) currently provides that an appeal must 
be filed no later than 60 days after the date an IAD is issued.
    Upon the filing of an appeal an appellate officer would perform an 
initial review. Two possible outcomes could result from that review. 
The appellate officer could (1) issue a decision on the merits of the 
appeal or (2) accept the appeal for further proceedings. An initial 
review of an applicant's appeal would result in an issuance of a 
decision on the merits if it is apparent that, although all claims are 
decided in favor of the applicant, he or she still would not qualify 
for the relief requested, or that the grounds of the appeal involve 
claims outside the appellate officer's jurisdiction (i.e., that the 
regulations are illegal).
    An applicant who was issued a license the previous year would be 
eligible for a non-transferable license pending the final resolution of 
his or her claim pursuant to the license renewal provisions of 5 U.S.C. 
558. The non-transferable license would authorize the applicant to 
deploy a vessel to conduct directed fishing for license limitation 
groundfish or crab species as specified on the license and would have 
specific endorsements and designations based on verified and unverified 
claims of the applicant. A non-transferable license could be granted to 
an applicant at one of two points in the resolution of his or her 
claim. First, a non-transferable license could be granted to an 
applicant in the IAD if the applicant failed to support a credible 
claim with sufficient evidence, but NMFS determines that the applicant 
could prove his or her claim on appeal. The non-transferable license 
would be effective until final agency action. Second, issuance of a 
non-transferable license could be ordered by an appellate officer, even 
if a non-transferable license was not issued in the IAD. Again, this 
non-transferable license would be effective until final agency action. 
If any portion of an applicant's claim is in dispute, the entire 
license the applicant would receive would be non-transferable, 
including portions of the license that could have been verified and 
issued, until final resolution of the disputed claim. This provision 
would give effect to the LLP's prohibition on severing a license. 
Otherwise, if an applicant was granted a fully transferable portion of 
a license while a disputed claim was being resolved, the applicant 
could transfer the granted portion to another person. This transfer 
would result in two participants in the affected fisheries, instead of 
only one, if the applicant prevailed in the appeal and another license 
was issued. To prevent this occurrence, an applicant's entire license 
would be non-transferable pending a final agency action. A non-
transferable license would expire on final agency action. At that time, 
the person who appealed would either receive a transferable license, or 
no license at all, depending on the final agency action.

Transfer Process for LLP Licenses

    The transfer process for LLP licenses would enable a license holder 
to request a transfer of an LLP license to any person who meets the 
eligibility requirements. Eligibility requirements would include (1) 
the designated transferee being eligible to document a fishing vessel 
under Chapter 121, Title 46, U.S.C., (2) the parties to the transfer 
having no fines, civil penalties, other payments due and outstanding, 
or outstanding permit sanctions resulting from Federal fishing 
violations, and (3) the transfer not causing the designated transferee 
to exceed the license cap in Sec. 679.7.
    A license holder also would need to request a transfer if the 
license holder plans to use the license on a vessel other than the one 
designated on the license. A license would be valid for use only on the 
vessel designated on the license; therefore the transfer procedure must 
be used to change the vessel designated on the license.
    A complete application would have to be submitted to the 
Administrator, Alaska Region, for approval before a transfer could 
occur. Application forms would be available on request. NMFS would 
return incomplete applications to the applicant and would identify 
specific information that is necessary to make the application 
complete. Information that would be required in the application 
includes (1) identification information for all parties to the 
transfer, (2) identification information for the vessel on which the 
license will be used, (3) documentation of the eligibility of the 
designated transferee to document a fishing vessel,

[[Page 19115]]

(4) a copy of the contract or sales agreement for the transfer, and (5) 
the signatures of the parties to the transfer.
    The proposed rule also would provide for transfer requests by court 
order, operation of law, or as part of a security agreement. This 
provision contemplates that some transfers might not be voluntarily 
requested by the permit holder. Under those circumstances, the 
Administrator, Alaska Region, would review the information in the 
transfer application or other document and determine whether the 
requested transfer would conflict with other provisions of the LLP 
regulations (e.g., transfer to a person who could not document a 
fishing vessel under Chapter 121, Title 46, U.S.C.).
    Finally, a license could not be transferred more than once per 
calendar year. This limitation should restrict the incidence of 
intraseason movement of licenses among vessels and operators. The 
Council identified intraseason movement of licenses and vessels as 
behavior that could contribute to overcapacity and excess effort in the 
affected fisheries.

Classification

    At this time, NMFS has not determined that this rule is consistent 
with the national standards of the Magnuson-Stevens Act and other 
applicable laws. NMFS, in making that determination, will take into 
account the data, views, and comments received during the comment 
period.
    This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    An EA/RIR was prepared for the LLP, of which this rule is a part. 
The EA/RIR describes the management background, the purpose and need 
for action, the management action alternatives, and the socio-economic 
impacts of the alternatives. It estimates the total number of small 
entities affected by this action and analyzes the economic impact on 
those small entities. Based on the economic analysis in the EA/RIR, the 
Chief Counsel for Regulation of the Department of Commerce certified to 
the Chief Counsel for Advocacy of the Small Business Administration 
that this proposed rule, if adopted, would not have a significant 
economic impact on a substantial number of small entities for the 
following reason:
    Although most fishing operations that would be affected by this 
rule are considered small entities, these entities would not experience 
``significant economic impact'' as a result of this rule. NMFS 
estimates that 3,450 persons will apply for a license under the LLP. 
Estimated completion time per application is 2.5 hours. Given the small 
time burden associated with application completion, any economic costs 
would not cause a ``significant economic impact.'' NMFS estimates that 
10 percent of all applicants (345 of 3,450) will transfer a license 
annually. Estimated completion time per transfer is 1 hour. This 
completion time is less than the completion time contemplated for the 
application process. Given the small time burden associated with an 
application for a transfer, and the small percentage of affected 
entities, any economic costs would not cause a ``significant economic 
impact to a substantial number of small entities.''
    As a result, an initial regulatory flexibility analysis was not 
prepared.
    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.
    This proposed rule contains a revised collection-of-information 
requirement subject to review and approval by OMB under the Paperwork 
Reduction Act (PRA). This revision has been submitted to OMB for 
approval. OMB approved the original collection of information 
requirement for the LLP under OMB control number 0648-0334. Please 
refer to this number in any correspondence regarding this request. The 
public reporting burden for this collection of information is estimated 
to average 2.5 hours per response for an application for initial 
issuance, 1 hour per response for an application for transfer, and 4 
hours per response for an appeal. These response times include the time 
for reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information.
    Public comment is sought regarding: whether this proposed 
collection of information is 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 collection 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 collection of information to NMFS 
(see ADDRESSES above), and to OMB at the Office of Information and 
Regulatory Affairs, Office of Management and Budget, Washington, DC. 
20503 (Attention: NOAA Desk Officer).

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: April 14, 1999.
Penelope D. Dalton,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For reasons set out in the preamble, 50 CFR part 679 is proposed to 
be amended as follows:

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

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

    Authority: 16 U.S.C. 773 et seq., 1801 et seq., and 3631 et seq.

    2. In Sec. 679.2, the definition for ``Official LLP record'' is 
added in alphabetical order to read as follows:


Sec. 679.2  Definitions.

* * * * *
    Official LLP record means the information assembled by the Regional 
Administrator about vessels that were used to participate in the 
groundfish and crab fisheries during the qualifying periods for the 
License Limitation Program. Information in the official LLP record 
includes vessel ownership information, documented harvests made from 
vessels during the qualification periods, and vessel characteristics. 
The official LLP record is presumed to be correct for the purpose of 
determining eligibility for licenses. An applicant for a license under 
the License Limitation Program has the burden of proving that 
information submitted in an application that is at variance with the 
official LLP record is correct.
* * * * *
    3. In Sec. 679.4, text is added to paragraphs (k)(6) and (7) to 
read as follows:


Sec. 679.4  Permits.

* * * * *
    (k) * * *
    (6) Application for a groundfish license or a crab species 
license--(i) General. The Regional Administrator will issue a 
groundfish license or a crab species license to an eligible applicant 
if that applicant meets all the criteria for eligibility in paragraph 
(k) of this section, a complete and timely application is filed by or 
on behalf of the applicant, and the complete application is approved by 
the Regional Administrator. An application form will be sent to the 
last known address of a

[[Page 19116]]

person identified as an eligible applicant by the Official LLP Record. 
The Regional Administrator will provide an application form to any 
person who requests one.
    (ii) Application period. An application period of no less than 90 
days will be specified by notice in the Federal Register and other 
information sources deemed appropriate by the Regional Administrator.
    (iii) Contents of application. To be complete, an application for a 
groundfish license or a crab species license must contain the following 
information:
    (A) Name(s), business address(es), telephone number(s), and FAX 
number(s) of the applicant(s);
    (B) Name, state registration number (e.g., ADF&G number), and, if 
applicable, the USCG documentation number of the vessel being used as 
the basis for eligibility for a license; and name, state registration 
number (e.g., ADF&G number), and, if applicable, the USCG documentation 
number of the vessel to be deployed with the license if different than 
the vessel used as the basis of eligibility for a license;
    (C) Name of the managing company, if any;
    (D) Valid documentation of the documented harvests that are the 
basis of eligibility for a license, including harvest area, gear used, 
date of landing, and, if applying for a crab species license, species;
    (E) Valid documentation of LOA on June 24, 1992, of the vessel used 
as the basis of eligibility for a license. If that vessel was under 
reconstruction on that date, valid documentation of LOA on the date 
reconstruction was completed and valid documentation of when 
reconstruction began and ended;
    (F) Valid documentation of LOA on June 17, 1995, of the vessel used 
as the basis of eligibility for a license. If that vessel was under 
reconstruction on that date, valid documentation of LOA on the date 
reconstruction was completed and valid documentation of when 
reconstruction began and ended;
    (G) Valid documentation to support the applicant's claim for a 
vessel designation of catcher vessel or catcher/processor vessel;
    (H) Valid documentation of ownership of the vessel being used as 
the basis for eligibility for a license (for USCG documented vessels, 
valid documentation must be the USCG Abstract of Title), or, if 
eligibility is based on a fishing history that has been separated from 
a vessel, valid documentation of ownership of the fishing history being 
used as the basis of eligibility for a license;
    (I) Valid documentation of the LOA of the vessel to be deployed by 
the license if different than the vessel used as the basis for 
eligibility for a license; and
    (J) Signature of the applicant(s), or the individual responsible 
for representing the applicant(s).
    (iv) Other information required for special circumstances. To be 
complete, an application also must contain the following information 
for these special circumstances.
    (A) Successor-in-interest. An applicant applying as the successor-
in-interest to an eligible applicant must provide valid documentation 
proving the applicant's status as a successor-in-interest to that 
eligible applicant and:
    (1) valid documentation of death or disability of that eligible 
applicant at the time of application, if the eligible applicant was or 
is an individual; or
    (2) valid documentation that that eligible applicant is no longer 
in existence at the time of application, if the eligible applicant is 
not an individual.
    (B) Norton Sound crab species license endorsement. In addition to 
other information that must be provided pursuant to paragraph 
(k)(6)(iii) of this section, an applicant for a crab species license 
endorsement for Norton Sound must indicate whether he or she was a 
State of Alaska permit holder for the Norton Sound king crab summer 
fishery in 1993 or 1994 or for a corporation that owned or had a lease 
for a vessel on June 17, 1995, that participated in the Norton Sound 
king crab summer fishery in 1993 or 1994.
    (C) Extended general qualification period. An applicant for a 
license based on meeting the general qualification period documented 
harvest requirement of making a documented harvest with jig or pot gear 
between June 28, 1992, and December 31, 1994, pursuant to paragraph 
(k)(4)(i)(A)(2) or (B)(2) of this section, must select one endorsement 
area for license issuance, notwithstanding the fact that the applicant 
may have the documented harvests necessary to qualify for more than one 
endorsement area.
    (D) Unavoidable circumstances. An applicant for a license based on 
an unavoidable circumstance pursuant to paragraph (k)(8)(iv) of this 
section must provide the information required by that paragraph, the 
date the vessel on which the application is based was lost, damaged, or 
otherwise unable to participate in the fishery, and the date a 
documented harvest was made from the replacement vessel.
    (v) Application evaluation. The Regional Administrator, will 
evaluate all timely filed applications. A timely filed application is 
an application that is postmarked before the ending date for the 
application period for the License Limitation Program specified in the 
Federal Register. All claims and data in the application will be 
compared with information and data from the Official LLP Record. Any 
claims or data in the application that are consistent with the 
information and data from the Official LLP Record are uncontested data. 
Uncontested data in the application will be accepted by the Regional 
Administrator. Uncontested data will be used by the Regional 
Administrator, in determining whether the applicant is eligible for a 
license as claimed in the application. Any claims or data in the 
application that are inconsistent with the information and data from 
the Official LLP Record are contested data. Contested data in 
applications will not be accepted. Pursuant to paragraph (k)(6)(vii) of 
this section, an applicant who submits contested data, or an applicant 
who fails to submit data as specified in paragraphs (k)(6)(iii) and 
(iv), will have 60 days to submit additional information, submit 
evidence to support his or her contested data, or submit a revised 
application with claims consistent with data in the Official LLP 
Record.
    (vi) Additional information or evidence. Additional information or 
evidence to support an applicant's contested data will be evaluated by 
the Regional Administrator if submitted within the 60-day evidentiary 
period pursuant to paragraph (k)(6)(vii) of this section. If the 
Regional Administrator determines that the additional information or 
evidence meets the applicant's burden of proving that the contested 
data in his or her application are correct, the Official LLP Record 
will be amended and the data will be used in determining whether the 
applicant is eligible for a license. However, if the Regional 
Administrator determines that the additional information or evidence 
does not meet the applicant's burden of proving that the contested data 
in his or her application are correct, the applicant will be notified 
by an initial administrative determination, pursuant to paragraph 
(k)(6)(viii) of this section, that the information or evidence 
submitted is insufficient to change the Official LLP Record.
    (vii) Sixty-day evidentiary period. An applicant who submits data 
in the application that is inconsistent with the Official LLP Record 
has the burden of proving that the submitted data are correct. If the 
Regional Administrator determines that the applicant submitting the 
data did not meet the burden of proving that the submitted

[[Page 19117]]

data are correct through information or evidence provided with the 
application, that applicant will be notified and will have 60 days to 
submit additional information or evidence to support the claims and 
data in his or her application, or to submit a revised application with 
claims and data consistent with the data in the Official LLP Record. 
Also, an applicant who fails to submit data as specified in paragraphs 
(k)(6)(iii) and (iv) of this section will have 60 days to submit that 
data. An applicant will be limited to one 60-day evidentiary period. 
Additional information or evidence, or a revised application, received 
after the 60-day evidentiary period has expired will not be considered 
for purposes of the initial administrative determination.
    (viii) Initial administrative determinations (IAD). If, following 
the receipt of additional information or a revised application, the 
Regional Administrator determines that there is still insufficient 
information or evidence to rebut the presumption that the Official LLP 
Record is accurate, or, if the submitted information, evidence, or 
revised application is not submitted within the time period indicated 
in the 60-day evidentiary period notification letter, an IAD will be 
prepared and sent to the applicant who had submitted the application 
with contested or missing data. The IAD will explain the deficiency in 
the contested or missing data, the deficiency in the additional 
information or evidence submitted in support of the contested or 
missing data, or the deficiency in the revised application. The IAD 
will also indicate which claims cannot be approved based on the 
available information or evidence. An applicant who receives an IAD 
will have an opportunity to appeal pursuant to Sec. 679.43. An 
applicant who avails himself or herself of the opportunity to appeal an 
IAD will not receive a transferable license until after the final 
resolution of that appeal, notwithstanding the eligibility of that 
applicant for some claims based on uncontested data in the application.
    (ix) Issuance of a non-transferable license. When required by the 
license renewal provisions of 5 U.S.C. 558, NMFS will issue a non-
transferable license to an applicant on issuance of an IAD, or 
alternatively, by order of an appellate officer. NMFS may issue a non-
transferable license when NMFS issues an IAD if an applicant failed to 
support his or her claim with sufficient evidence, but NMFS determines 
that the applicant's claim is credible and may be proven on appeal. 
NMFS may issue a non-transferable license to an applicant pursuant to 
an order of an appellate officer pending final agency action if a non-
transferable license was not issued with the IAD. A non-transferable 
license authorizes a person to deploy a vessel to conduct directed 
fishing for license limitation groundfish or crab species as specified 
on the non-transferable license, and will have the specific 
endorsements and designations based on the claims in his or her 
application. A non-transferable license will expire upon final agency 
action.
    (7) Transfer of a groundfish license or a crab species license--(i) 
General. NMFS will transfer a groundfish license or a crab species 
license if a license holder and designated transferee meet all the 
eligibility criteria for transfers in paragraph (k)(7)(ii) of this 
section and the license holder submits a complete application that is 
subsequently approved by the Regional Administrator. NMFS will provide 
an application form to any person who requests one.
    (ii) Eligibility criteria for transfers. NMFS will not approve a 
groundfish license or crab species license transfer if:
    (A) The designated transferee is not eligible to document a fishing 
vessel under Chapter 121, Title 46, U.S.C.;
    (B) There are fines, civil penalties, other payments due and 
outstanding, or outstanding permit sanctions resulting from Federal 
fishing violations involving any party to the transfer;
    (C) The transfer will cause the designated transferee to exceed the 
license caps in Sec. 679.7(j); or
    (D) The transfer violates other provisions specified in this part.
    (iii) Contents of application. To be complete an application for a 
groundfish license transfer or a crab species license transfer must 
contain the following information, as applicable:
    (A) Name(s), business address(es), telephone number(s), FAX 
number(s), of the license holder and the designated transferee;
    (B) Name, state registration number (e.g., ADF&G number), and, if 
applicable, the USCG documentation number of the vessel on which the 
license will be used after the transfer is approved:
    (C) Valid documentation that the designated transferee is a person 
eligible to document a fishing vessel under Chapter 121, Title 46, 
U.S.C.;
    (D) A legible copy of a contract or sales agreement that specifies 
the license to be transferred, the license holder, the designated 
transferee, the monetary value or the terms of the license transfer, 
and the signature of the license holder and the designated transferee;
    (E) Information regarding whether a broker was used for the 
transaction, whether the license was collateralized, and other 
information the Regional Administrator deems necessary for measuring 
program performance; and
    (F) Signature of the license holder and the designated transferee, 
or of the individuals responsible for representing those persons.
    (iv) Incomplete applications. NMFS will return to the applicant a 
transfer application that is determined to be incomplete by the 
Regional Administrator. The returned application will identify the 
specific kinds of information necessary to make the application 
complete.
    (v) Transfer by court order, operation of law, or as part of a 
security agreement. The Regional Administrator will approve a complete 
transfer application based on a court order, operation of law, or a 
security agreement, if the transfer does not conflict with any of the 
provisions of this section.
    (vi) Transfer Limitation. A groundfish license or a crab species 
license may be transferred only once in any calendar year. NMFS will 
not approve an application for transfer that violates this provision.
[FR Doc. 99-9731 Filed 4-16-99; 8:45 am]
BILLING CODE 3510-22-P