[Federal Register Volume 64, Number 112 (Friday, June 11, 1999)]
[Notices]
[Pages 31542-31548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14788]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration
[Docket No. 990520139-9139-01; I.D. 050799A]
RIN 0648-AM68


Disaster Assistance for Northeast Multispecies Fishery Failure

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

ACTION: Notice; request for comments.

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SUMMARY: NMFS requests comments on a proposed plan for disbursing funds 
to assist persons who have incurred losses from a commercial fishery 
failure due to the declining stocks of groundfish which has caused harm 
to the Northeast multispecies fishery. This proposed plan contains 
criteria for eligibility, limitations and conditions for receiving 
disaster assistance.

DATES: Comments must be received by June 28, 1999.

ADDRESSES: Comments should be sent to: Kevin Chu, NMFS, 166 Water St., 
Woods Hole, MA 02543. Direct all written comments regarding Paperwork 
Reduction Act and collection of information burden estimates to Linda 
Engelmeier, Departmental Forms Clearance Officer, Department of 
Commerce, Room 5327, 14th and Constitution Avenue, NW, Washington, DC 
20230, and to the Office of Management and Budget (OMB) at the Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Washington, DC 20503 (Attention: NOAA Desk Officer).

FOR FURTHER INFORMATION CONTACT: Kevin Chu, NMFS, Northeast Region 
((508) 495-2367).

SUPPLEMENTARY INFORMATION: In the Emergency Supplemental Appropriations 
section of the FY 1999 Appropriations Act (Public Law No. 105-277), 
Congress appropriated $5,000,000 to NOAA to provide emergency disaster 
assistance to persons or entities in the Northeast multispecies fishery 
who have incurred economic losses from a commercial fishing failure 
under a fishery resource disaster declaration made in 1994 pursuant to 
section 308(b) of the Interjurisdictional Fisheries Act (IFA) of 1986. 
Although the funds are available until used, NMFS is not obligated to 
compensate every individual affected by the Northeast multispecies 
collapse or to expend all the funding on assistance.
    Pursuant to his authority under this section of the IFA, former 
Secretary of Commerce Ron Brown declared a fishery resource disaster on 
March 18, 1994, for the Northeast multispecies fishery. This disaster 
has extended through this year and is expected to continue, causing a 
number of additional fishery closures in New England and economic 
hardship in the fishery.
    The Gulf of Maine stocks of groundfish have declined drastically 
over the past three decades. Since the first declaration of a fishery 
disaster in 1994, recovery measures for Northeastern groundfish have 
improved the prospects for commercially important cod, haddock, and 
yellowtail flounder stocks on Georges Bank, but measures intended to 
protect Gulf of Maine cod have not been as successful. Gulf of Maine 
stocks of cod, white hake, American plaice, and yellowtail flounder 
remain overfished. The spawning biomass continues to decline, reducing 
the probability that sizable groups of new fish will be produced. As a 
result of the continued crisis in the Northeast multispecies fishery, a 
number of areas in the Gulf of Maine have been closed to many types of 
fishing gear for up to 3 months during the period of February through 
June 1999, resulting in lost fishing opportunities.
    There have been many meetings of fishermen discussing the best use 
of these disaster assistance funds, including a number of meetings of a 
group called the Tri-state Conference, composed of fishermen from 
Massachusetts, New Hampshire and

[[Page 31543]]

Maine. NMFS' proposed plan was developed based on comments received 
from numerous fishermen and other interested persons, including but not 
limited to, a public hearing on March 19, 1999, in Portsmouth, NH.
    The proposed plan has two components. First, there is a program to 
provide direct assistance by compensating Federal permit holders and 
crew for economic harm based on reductions in used Days-at-Sea (DAS) 
under the authority of Section 308(d) of the IFA. In exchange for this 
compensation, permit holders would commit to operating their vessels 
for research on fishery-related subjects and would provide personal 
economic and social data important for evaluating the effects of 
fishery management decisions. Second, NMFS intends to set aside a 
portion of the funds for the training and deployment of affected 
persons as at-sea data collectors aboard scallop fishing vessels. This 
document explains the proposed direct assistance program. It does not 
discuss the training and deployment part of the plan, which will be 
done under contract.
    The proposed direct assistance plan has two goals: (1) To provide a 
mechanism to get financial assistance as quickly as possible to 
fishermen most affected by the groundfish collapse, and (2) to involve 
the industry in fisheries and gear research, thereby providing 
additional data for the long-term management of the fishery. This 
program would use a formula for calculating lost fishing opportunities 
as an indicator of the economic harm caused by the declining groundfish 
stocks.
    NMFS seeks comments on the proposed disaster assistance program.

Definitions

    Charter or party boat means any vessel that carries passengers for 
hire to engage in recreational fishing.
    Commercial fishing or fishing commercially means fishing that is 
intended to, or results in, the barter, trade, transfer, or sale of 
fish.
    Day(s)-at-Sea (DAS) means the 24-hour periods of time during which 
a fishing vessel is absent from port in which the vessel intends to 
fish for, possess or land, or fishes for, possesses, or lands regulated 
species.
    Dealer means any person who receives, for a commercial purpose 
(other than solely for transport on land), from the owner or operator 
of a vessel issued a valid multispecies permit, any species of fish, 
the harvest of which is managed by 50 CFR part 648.
    Fishing year means for the NE multispecies fishery, from May 1 
through April 30 of the following year.
    Northeast multispecies or multispecies finfish or multispecies 
means the following species:
    American plaice--Hippoglossoides platessoides.
    Atlantic cod--Gadus morhua.
    Haddock--Melanogrammus aeglefinus.
    Ocean Pout--Macrozoarces americanus.
    Pollock--Pollachius virens.
    Redfish--Sebastes fasciatus.
    Red hake--Urophycis chuss.
    Silver hake (whiting)--Merluccius bilinearis.
    White hake--Urophycis tenuis.
    Windowpane flounder--Scophthalmus aquosus.
    Winter flounder--Pleuronectes americanus.
    Witch flounder--Glyptocephalus cynoglossus.
    Yellowtail flounder--Pleuronectes ferrugineus.
    Multispecies permit means a permit issued by NMFS to fish for, 
possess, or land multispecies finfish in or from the Exclusive Economic 
Zone.
    Regulated species means the subset of NE multispecies that includes 
Atlantic cod, witch flounder, American plaice, yellowtail flounder, 
haddock, pollock, winter flounder, windowpane flounder, redfish, and 
white hake.

Compensation for Economic Harm as Measured by Unused Multispecies 
DAS

    The proposed plan is to compensate fishermen for economic harm 
caused by the fishery collapse, using a calculation of unused 
multispecies DAS as a proxy for economic harm. Permit holders and crew 
members would be compensated based on any decrease in multispecies 
fishing activity in 1999 due to the area closures. The decrease would 
be calculated by comparing the multispecies days the vessel fished in 
February through June 1998 and the multispecies days the vessel fished 
in 1999 during the same closure months. The details of the compensation 
plan are provided here.

Eligibility

    Permit holders would be eligible to participate in this program if 
they hold a currently valid Federal multispecies permit and landed and 
sold at least 10,000 lb (4535 kg) of multispecies finfish to federally 
permitted dealers between May 1, 1997, and April 30, 1998. Verification 
of the sale would be based only on dealer weigh-out reports submitted 
to NMFS prior to April 1, 1999.
    Party/Charter vessels are not eligible for this program, because 
they were not technically excluded from fishing in the closed areas 
under Framework Adjustments 26 and 27.
    By law, persons with net annual revenues from commercial fishing of 
$2 million or more are also not eligible to receive funds through this 
program. However, NMFS proposes a different maximum limit of $75,000 
(or $150,000 if filing a joint tax return) on the net income from 
commercial fishing that an affected person could have received in 1998 
to be eligible for compensation. Comments are requested on whether this 
limit is appropriate.
    Any permit holder whose permit was sanctioned during the February 
through June 1999 closures cannot qualify for compensation from the 
period of the sanction.
    Permit holders otherwise eligible for compensation who sold their 
vessels on or after February 1, 1999, would not be eligible to 
participate in this program. Persons who owned a vessel that held a 
valid multispecies permit during the 1998-99 fishing year and who 
purchased a new vessel after February 1, 1999, would be eligible based 
on the history of the vessel used during 1998.

Calculation of Historical Activity

    A. For the purposes of this program, NMFS would define ``historical 
activity'' as fishing activity during 1998 (or, in some cases, 1997) in 
the areas listed here that were closed in 1999, excluding the Western 
Gulf of Maine closed area. NMFS would calculate the historical activity 
based on the number of DAS fished by each eligible vessel during 1998 
in the following months and areas:

February--blocks 124-125
March--blocks 124-125
April--blocks 123-125, 130-133
May--blocks 129-133, 136-140
June--blocks 139-147, 152

    Figure 1 shows the areas of these blocks.

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[[Page 31544]]

[GRAPHIC] [TIFF OMITTED] TN11JN99.007



BILLING CODE 3510-22-C

[[Page 31545]]

    Note that in no case would DAS fished in the Western Gulf of Maine 
Closed Area be considered as historical activity, since that is 
considered a long-term, year-round closure.
    B. There were some closures in March, May and June of 1998. 
Therefore, if a vessel used no DAS in May or June 1998, NMFS would 
calculate the number of DAS fished by that vessel in the appropriate 
areas during the same months of 1997. Some areas were closed from March 
1 through March 30, 1998, but not closed on March 31 of that year. 
Therefore, if a vessel used either no DAS during March 1998 or only 
fished on March 31 of that year, NMFS would calculate the number of DAS 
fished by that vessel in the appropriate areas during the same months 
of 1997.
    C. Some persons may have been prevented from fishing in 1998 due to 
illness or problems with their vessels. NMFS assumes that vessel owners 
have chosen fishing as their primary activity by virtue of their 
investment in their boats. Therefore, if there are two consecutive 
calendar months from February through June 1998 for which a vessel had 
no record of any fishing activity (e.g., negative reports were 
submitted for March and April 1998), NMFS would assume that the vessel 
was prevented from fishing by circumstances beyond the control of the 
vessel owner. In this circumstance, NMFS would calculate the number of 
multispecies DAS during those same months in 1997. If the 2-month gap 
in 1998 fishing activity was due to a permit sanction, however, NMFS 
would not consider 1997 fishing activity.
    D. Calculation of multispecies DAS fished would be made to the 
nearest hour of fishing time and would then be rounded down to the 
nearest half day. A permit holder can receive no more compensation for 
economic harm than the level represented by the number of days of 
historical activity as calculated using this method.
    E. The number of multispecies DAS fished during a fishing year plus 
the number of unused multispecies DAS for which a vessel receives 
compensation in that year cannot exceed the total number of 
multispecies DAS allocated to that vessel for that year.

Documentation Used To Determine Historical Activity

    A. For vessels greater than 30 ft (9.14 m), NMFS would use vessel 
call-in system reports and vessel trip reports received by NMFS prior 
to April 1, 1999, to determine when a vessel fished in a 1999 closure 
area. If a trip was called in but no log report was submitted, or vice 
versa, the trip would not be included.
    Some vessel trip reports have been submitted with insufficient 
information to determine whether the vessel fished in the closed areas, 
although this information is required. Under this proposed plan, the 
permit holder would not get credit for historical activity on any trips 
for which the logbooks were not filled out as required. NMFS 
specifically seeks comments on this provision.
    B. For vessels 30 ft (9.14 m) or less, NMFS would base historical 
activity on vessel trip reports received by NMFS prior to April 1, 
1999. (These vessels do not participate in the call in system.) The 
same problem of logbooks submitted without sufficient geographic 
information pertains to vessels under 30 ft (9.14 m) as for larger 
vessels. NMFS proposes to use the same solution for this category as it 
uses for vessels over 30 ft (9.14 m).

Documentation Used To Determine 1999 Activity

    A. For vessels greater than 30 ft (9.14 m), NMFS would base 
activity on vessel call-in system reports.
    B. For vessels 30 ft (9.14 m) or less, NMFS would base activity on 
vessel trip reports submitted as of the publication date of this 
document or, for May and June 1999, by the 15th day following each 
month. As required by regulations, every vessel trip report, including 
negative reports, must be submitted within 15 days of the end of each 
month. Vessels that have not submitted timely reports will not be 
eligible for compensation for that month. NMFS may compare dealer 
weigh-out reports and logbooks for May and June to confirm claims that 
no landings were made when no trip is reported.

Calculation of Economic Harm

    A. For each month in which a vessel has historical activity, NMFS 
would tally the number of multispecies DAS fished in 1999 in areas that 
have not been closed. Economic harm would be calculated on a monthly 
basis as the historical DAS (multispecies DAS fished in the closed 
areas as described earlier) used that month minus the multispecies DAS 
used that month in 1999. For example, if a vessel has 10 DAS of 
historical activity in April 1998 and fished 5 DAS in April 1999, the 
permit holder and crew would be eligible for compensation for the 
equivalent of up to 5 DAS. If a vessel has 10 DAS of historical 
activity in April 1998 and fished 15 DAS outside the closed area in 
1999, the permit holder and crew would not be eligible for compensation 
for economic harm for that month.
    B. Compensation for economic harm would be at a rate of $1500 for 
each 24-hour DAS and $750 for each half DAS. This amount would be 
decreased to $900 per DAS if the permit holder does not designate crew 
to receive compensation. However, persons fishing alone may designate 
themselves as crew and receive the full compensation. (See Compensation 
for Crew) These amounts are consistent with NMFS estimates of the 
average net revenue and crew costs per multispecies DAS per vessel in 
the areas closed by Framework Adjustment 26.
    C. A DAS for which a permit holder receives compensation would be 
considered a DAS used. For compensation received based on economic harm 
during the 1998-1999 fishing year (i.e., during the February, March and 
April 1999 closures), DAS for which a permit holder receives 
compensation cannot be carried over to the 1999-2000 fishing year. For 
compensation received based on economic harm during the 1999-2000 
fishing year (i.e., during the May and June 1999 closures), DAS for 
which a permit holder receives compensation would be subtracted from 
the total allowable DAS for the year. For example, if a permit holder 
in the fleet DAS category is compensated for 10 DAS not used in June 
1999, the total 1999-2000 DAS for the vessel s/he currently owns would 
be reduced from 88 to 78.
    D. The number of DAS for which persons would receive compensation 
would be based on the total number of requests received by NMFS. No 
compensation would be paid until all requests are received and 
processed. Because compensation cannot be released until the universe 
of applicants is known, and because eligibility and unused DAS are 
calculated from official records held by NMFS and based on information 
required to be submitted to NMFS, there would be no appeals of NMFS 
determinations of eligibility or unused DAS.
    E. If the total requests for compensation for economic harm exceed 
the funds available, the number of DAS for which each person is 
compensated would be reduced by the same proportion. If reduced, the 
proportional DAS for which each person is compensated would be rounded 
down to the nearest half day.
    F. If the total requests for compensation for economic harm total 
less than the funds available, the excess funds would be used to defray 
costs in

[[Page 31546]]

the following cooperative research program.
    G. The agreement to participate in research in exchange for 
compensation through this program is binding. If a permit holder 
decides to withdraw from the program, he or she must return any 
compensation to NMFS, which will then be used to defray costs in the 
cooperative research program.

Compensation for Crew Members

    NMFS would ask permit holders to identify crew members that have 
also been harmed by the groundfish collapse and to specify in the 
application the vessel's share system. Crew members will be compensated 
a portion of the vessel's total compensation, based on the vessel's 
share system. An eligible crew member is expected to have worked for 
the permit holder for at least 6 out of the last 10 months. NMFS will 
make a direct payment to each identified crew member based on the 
percentage share specified by the permit holder. It will pay the 
remainder of the vessel's compensation to the permit holder. Permit 
holders that do not specify any crew members for compensation would be 
compensated at a reduced rate of $900 per DAS. A permit holder fishing 
alone would designate him/herself as the captain of the vessel, thereby 
receiving the full $1500 per DAS discussed above.

Research Requirement

    Vessels and crew members that receive compensation under this 
program would be required to participate in research projects for the 
number of days they were compensated. If NMFS cannot compensate persons 
at the full level requested, a permit holder's obligation for research 
would be only for the number of DAS for which compensation is received. 
Permit holders would not be required to use their allotted fishing DAS 
for this research. However, if a permit holder intended to land 
multispecies fish caught during the course of a research day, the 
permit holder would use a DAS, which would also count as a research 
day.
    The cost of personnel (captain and crew) required to operate the 
vessel during this research would be borne by the permit holder. This 
would be a condition of receiving compensation. All other operation 
costs would be borne by the researcher.
    If a permit holder is not asked to provide his/her vessel for 
research by September 30, 2000, this obligation will cease. Instead, 
the permit holder would be required to submit the last 5 years of 
Federal tax returns and complete a survey of economic and social data 
needed to better evaluate the impacts of fishery management measures. 
If this information it not received, the permit holder's DAS for the 
2001-2002 fishing year would be reduced by the number of DAS for which 
he/she was compensated under this program. Note that this provision 
requires approval from OMB for this collection of information and could 
not come into effect until NMFS receives such approval.
    If the vessel is sold while still under a research obligation, the 
commitment would transfer with the permit, which automatically 
transfers with the vessel upon sale, unless there is a purchase and 
sale agreement stating otherwise. The research requirement would not be 
voided by the sale of a vessel, unless the permit holder permanently 
retires the vessel's multispecies permit.
    The research would be undertaken at a mutually agreed date before 
May 1, 2001. If a vessel is requested for research by September 30, 
2000, and the research is not conducted before May 1, 2001, the 
vessel's allowed DAS for fishing year 2001-2002 will be reduced by the 
number of DAS for which it was committed for research. If crew members 
are compensated as part of this program and are still with the vessel, 
they would be expected to serve during the requested research period.

Application Process

    A. NMFS would determine who is eligible to participate in the 
program based on dealer weigh-out reports and would calculate the 
maximum level of direct assistance for which the permit holder would be 
eligible.
    B. NMFS would send letters and a copy of the final Federal Register 
document to all multispecies permit holders explaining the program, 
informing them whether they qualify to participate and, if so, the 
maximum amount of economic harm they can claim based on unused DAS. The 
letter would contain an application form that asks the permit holder to 
identify the number of eligible DAS for which the holder would seek 
compensation in exchange for a commitment from the permit holder to 
make his or her vessel available for research in the future, if 
requested. The permit holder would be required to identify crew members 
that should share in the compensation and to inform NMFS of the 
percentage of available compensation each crew member should get, based 
on the usual share system of the vessel. Permit holders would have 30 
days from the date of mailing to respond to the invitation to 
participate. A date by which all responses must be postmarked would be 
included in the invitation to participate.
    C. NMFS will tally the total eligible compensation requested for 
all applications received by the deadline. If the total eligible 
compensation requested is less than the funds available, NMFS will 
approve payment of the requested amounts. If the eligible compensation 
requested exceeds the funds available, NMFS will approve payment for 
each permit holder based on a prorated reduction in the number of DAS. 
The value of a DAS will remain the same, but fewer unused DAS will be 
compensated in this case. Partial DAS will be rounded downward to the 
nearest half DAS. Because the total DAS requested cannot be evaluated 
until the logbooks from the vessels under 30 ft (9.14 m) (which can be 
submitted up to July 15) have been entered in the NMFS database, 
compensation under this program should not be expected before September 
1999.
    D. NMFS will report payments disbursed under this program to the 
Internal Revenue Service and will issue IRS Form 1099-G to each 
recipient of compensation for economic harm.

Classification

Catalogue of Federal Domestic Assistance

    This program will be listed in the Catalogue of Federal Domestic 
Assistance under number 11.452 (Unallied Industry Projects).

National Environmental Policy Act

    NMFS will conduct an Environmental Assessment of this program prior 
to publication of the final rule. Comments on the potential impacts of 
this program on the quality of the human environment are requested.

Regulatory Flexibility Act

    NMFS has conducted an initial regulatory flexibility review for 
this action, which is included here. The action is being taken as a 
result of concern about the economic impact of the declining groundfish 
stocks in the Gulf of Maine. The objective of the program is to 
compensate persons in the Northeast multispecies fishery who have 
incurred losses from a commercial fishing failure. The program to 
compensate fishermen for economic harm would be open to permit holders 
of a currently valid Northeast multispecies permit who landed 10,000 lb 
(4535 kg) of multispecies fish between May 1, 1997, and April 30, 1998, 
as recorded by dealer weigh-out reports. NMFS estimates fewer than 500

[[Page 31547]]

permit holders would qualify for compensation by having landed 10,000 
lb (4535 kg) of multispecies fish and having historical activity in the 
areas closed in 1999. Assuming that on average, each permit holder 
employed one other crew member, there might be 1000 persons able to 
participate in this program.
    The reporting or record-keeping requirements for this program 
include an initial form to indicate willingness to participate in the 
program. The form would also allow permit holders to identify crew 
members that should share in the compensation. The program would also 
require permit holders to provide the services of their vessels, if 
asked, for future research at a mutually agreed date and time, not to 
exceed 2 years in the future. The permit holders would be expected to 
cover the costs of captain and crew needed to operate the vessel during 
this research, which is estimated to be $700 on average. The other 
costs of operating the vessel would be covered by the researcher. 
Participation in the compensation program would be voluntary, and 
persons would not be expected to participate unless it was economically 
beneficial to do so. Permit holders would be expected to keep a record 
of the number of days they engaged in cooperative research. In 
addition, if a permit holder is not asked to engage in research by 
September 30, 2000, the proposed program calls for permit holders to 
submit 5 years of Federal income tax forms and to complete a survey of 
economic and social concerns instead, provided OMB approves this 
collection of information. Fishermen who have not kept copies of their 
tax returns would need to request copies from the IRS at a cost of 
$23.00 per return.
    There are no Federal rules that duplicate, overlap, or conflict 
with the proposed action.
    In providing assistance to alleviate the economic harm caused by 
the fishery decline, any significant economic impacts of this program 
are expected to be positive and are intentional. Therefore, NMFS has 
not considered alternatives that would minimize any significant 
economic impacts.

E.O. 12866

    This proposed program has been determined to be significant for the 
purposes of E.O. 12866.

Paperwork Reduction Act (PRA)

    This proposed program contains a collection-of-information 
requirement subject to review and approval by OMB under the PRA. An 
emergency clearance for the collection of information required to 
disburse these funds is being sought from OMB. This is a one-time 
collection of information. There would be no annual information 
collection burden. If NMFS continues this program, it will seek 
additional clearance for any required collection of information.
    Notwithstanding any other provision of law, no person is required 
to respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB control number.
    Public reporting burden for this collection of information is 
estimated at 1.5 hours per response, to submit a form indicating 
willingness to participate in the program. This estimate includes 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 and 
OMB (see ADDRESSES).

Federal Policies and Procedures

    Recipients of Federal assistance through this program are subject 
to all Federal laws and Federal and Department of Commerce (Commerce) 
policies, regulations, and procedures applicable to Federal financial 
assistance awards and must comply with general provisions that apply to 
all recipients under Commerce Federal assistance programs.

False Statements

    A false statement on the application or any document submitted for 
consideration of financial assistance is grounds for denial or 
termination of funds and grounds for possible punishment by a fine or 
imprisonment (18 U.S.C. 1001).

Delinquent Federal Debts

    No award of Federal funds shall be made if the would-be recipient 
has an outstanding delinquent Federal debt or fine until either: (a) 
the delinquent account is paid in full; (b) a negotiated repayment 
schedule is established and at least one payment is received; or, (c) 
other arrangements satisfactory to Commerce are made.

Internal Revenue Service (IRS) Information

    An applicant classified for tax purposes as an individual, 
partnership, proprietorship, corporation, or medical corporation is 
required to submit a taxpayer identification number (TIN) (either 
social security number, employer identification number as applicable, 
or registered foreign organization number) on Form W-9, ``Payer's 
Request for Taxpayer Identification Number.'' Tax-exempt organizations 
and corporations (with the exception of medical corporations) are 
excluded from this requirement. Form W-9 shall be submitted to NOAA 
upon application for assistance. The TIN will be provided to the IRS by 
Commerce on Form 1099-G, ``Statement for Recipients of Certain 
Government Payments.''
    Disclosure of a recipient's TIN is mandatory for Federal income tax 
reporting purposes under the authority of 26 U.S.C., section 6011 and 
6109(d), and 26 CFR, 301.6109-1. This is to ensure the accuracy of 
income computation by the IRS. This information will be used to 
identify an individual who is compensated with Commerce funds or paid 
interest under the Prompt Payment Act.

Name Check

    Recipients may be subject to a name check review process. Name 
checks are intended to reveal if they or any key individuals associated 
with an application for award have been convicted of, or are presently 
facing, criminal charges such as fraud, theft, perjury, or other 
matters that significantly reflect on their management, honesty, or 
financial integrity. In the name check process, Commerce performs a 
credit check on businesses and individuals. A criminal background check 
on an individual's name is performed by the Federal Bureau of 
Investigation. There is no charge to recipients for the name check.

Audits

    Under the Inspector General Act of 1978, as amended, 5 U.S.C. App. 
3, section 1 et seq., an audit of the award of assistance may be 
conducted at any time. The Inspector General of

[[Page 31548]]

Commerce, or any of his or her duly authorized representatives, shall 
have access to any pertinent books, documents, papers and records of 
the recipient, whether written, printed, recorded, produced or 
reproduced by any mechanical, magnetic or other process or medium, in 
order to make audits, inspections, excerpts, transcripts or other 
examinations as authorized by law. When the Office of the Inspector 
General (OIG) requires an audit on a Commerce award, the OIG will 
usually make the arrangements to audit the award, whether the audit is 
performed by OIG personnel, an independent accountant under contract 
with Commerce, or any other Federal, state or local audit entity.

Government-Wide Debarment and Suspension

    You must submit a completed Form CD-511, ``Certification Regarding 
Debarment, Suspension and Other Responsibility Matters; Drug-Free 
Workplace Requirements and Lobbying.'' Prospective participants (as 
defined at 15 CFR 26.105) are subject to 15 CFR part 26, ``Non-
procurement Debarment and Suspension'' and the related section of the 
certification form prescribed here applies.

    Dated: June 4, 1999.
Andrew J. Kemmerer,
Acting Assistant Administrator, National Marine Fisheries Service.
[FR Doc. 99-14788 Filed 6-10-99; 8:45 am]
BILLING CODE 3510-22-P