[Federal Register Volume 65, Number 54 (Monday, March 20, 2000)]
[Rules and Regulations]
[Pages 14919-14926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6674]


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

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 991207325-0063-02; I.D. 100699A]
RIN 0648-AJ52


Fisheries of the Exclusive Economic Zone Off Alaska; A Cost 
Recovery Program for the Individual Fishing Quota Program

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

ACTION: Final rule.

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

SUMMARY: NMFS establishes regulations to implement cost recovery for 
the Individual Fishing Quota (IFQ) program for fixed gear halibut and 
sablefish fisheries in waters in and off of Alaska (IFQ Program). Cost 
recovery is necessary because section 304(d) of the Magnuson-Stevens 
Fishery Conservation and Management Act (Magnuson-Stevens Act) requires 
the Secretary of Commerce (Secretary) to collect fees to recover actual 
costs incurred for Federal management and enforcement of these IFQ 
fisheries. This action is intended to impose and provide for collection 
of such fees.

DATES: Effective March 15, 2000.

ADDRESSES: Copies of the Environmental Assessment/Regulatory Impact 
Review (EA/RIR) and the Final Regulatory Flexibility Analysis (FRFA) 
for this action may be obtained from NMFS, Sustainable Fisheries 
Division, Alaska Region, NMFS, P.O. Box 21668 Juneau, AK 99802-1668, 
Attn: Lori J. Gravel, or by calling the Alaska Region, NMFS, at (907) 
586-7228.

FOR FURTHER INFORMATION CONTACT: Jay Ginter, 907-586-7228.

SUPPLEMENTARY INFORMATION: Section 304(d)(2)(A) of the Magnuson-Stevens 
Act requires the Secretary to ``collect a fee to recover the actual 
costs directly related to the management and enforcement of any * * * 
individual fishing quota program.'' Section 304(d)(2)(B) of the 
Magnuson-Stevens Act specifies an upper limit on these fees, when the 
fees must be collected, and where the fees must be deposited. Section 
303(d)(4) of the Magnuson-Stevens Act allows NMFS to reserve up to 25 
percent of the fees collected for use in an IFQ loan program to aid in 
financing the purchase of IFQ or quota share (QS) by entry-level and 
small-vessel fishermen.
    The final rule will recover costs for the IFQ Program only. NMFS 
intends to implement cost recovery for the Community Development Quota 
(CDQ) program through separate rulemaking.
    The Magnuson-Stevens Act specifies the following with respect to 
the imposition of IFQ cost-recovery fees:
    1. Fees must recover actual costs directly related to actual 
enforcement and management of the IFQ Program;
    2. Fees must not exceed 3 percent of the ex-vessel value of fish 
harvested under any such program;
    3. Fees are in addition to any other fees charged under the 
Magnuson-Stevens Act;
    4. With the exception of money reserved for the IFQ loan program, 
fees must be deposited in the Limited Access System Administrative Fund 
(LASAF) in the U.S. Treasury; and
    5. Fees must be collected at either the time of a legal landing of 
halibut or sablefish, filing of a landing report, or sale of such fish 
during a fishing season or in the last quarter of the calendar year in 
which the fish is harvested.

Background

    NMFS, Alaska Region, administers the IFQ Program. The IFQ Program 
is a limited access system authorized by section 303(b) of the 
Magnuson-Stevens Act and the Northern Pacific Halibut Act of 1982. NMFS 
implemented the IFQ Program in March 1995. Regulations implementing the 
IFQ Program are set forth at 50 CFR part 679. NMFS published a proposed 
rule to recover costs of managing and enforcing the IFQ Program on 
December 27, 1999 (64 FR 72302), and solicited public comments through 
January 26, 2000.

Cost Recovery Program Description

    An IFQ permit holder incurs a fee liability for every pound of IFQ 
halibut and sablefish that is landed on his or her permit. The IFQ 
permit holder must collect from himself or herself the amount due for 
all IFQ halibut and IFQ sablefish landings on his or her permit(s). The 
IFQ permit holder is also responsible for submitting this payment to 
NMFS on or before the due date of January 31 following the calendar 
year in which the landings were made. The dollar amount of the fee due 
is determined by multiplying the IFQ fee percentage (3 percent or less) 
by the ex-

[[Page 14920]]

vessel value of each IFQ landing made on a permit and summing the 
totals of each permit (if more than one).
    More information on the background and details of the program can 
be found in the preamble to the proposed rule (64 FR 72302, December 
27, 1999).

Changes from the Proposed Rule in the Final Rule

    In Sec. 679.5(7)(ii)(C)(2)(ii), examples of documentation that 
could establish a factual basis for a revised IFQ fee liability are 
provided in response to comment 7.
    The proposed rule published December 27, 1999, was corrected to 
replace four typographical errors with the correct regulatory text (65 
FR 11756; March 6, 2000).

Response to Written Public Comments on the IFQ Cost Recovery 
Program Proposed Rule

    NMFS, Alaska Region, received several written public comments 
regarding the IFQ Cost Recovery Program proposed rule. They are 
summarized and responded to as follows.
    Comment 1: There is no mechanism or method to determine the amount 
(up to 25 percent) of the IFQ cost recovery collections that are 
directed to the IFQ loan program.
    Response: In September 1997, the North Pacific Fishery Management 
Council (Council) recommended to the Secretary an IFQ loan program that 
would reserve 25 percent of the fees collected under section 303(d)(2) 
of the Magnuson-Stevens Act in the halibut and sablefish fisheries off 
Alaska to guarantee obligations that aid in financing the purchase of 
IFQs in that fishery by fishermen who fish from small vessels and the 
first-time purchase of IFQs by entry level fishermen. Section 303(d)(4) 
of the Magnuson-Stevens Act sets 25 percent as the maximum amount of 
the collected fees that may be reserved for loan program purposes. The 
Secretary has not yet acted to approve this Council recommendation. No 
deductions from collected fees will be made until the Council's loan 
program recommendation is approved. The absence of this revenue to the 
U.S. Treasury, however, does not prevent the U.S. Congress from 
appropriating any amount for purposes of the loan program.
    Comment 2: NMFS should provide an accounting of how collected fees 
are spent.
    Response: NMFS agrees. This rule provides for an IFQ Cost Recovery 
Program Annual Report that will summarize the actual direct costs 
associated management and enforcement of the IFQ Program. This annual 
report will be made available to the public.
    Comment 3: The International Pacific Halibut Commission (IPHC) 
should be eligible to receive part of the funds collected under the IFQ 
Cost Recovery Program.
    Response: NMFS agrees. The IPHC is in the process of formally 
submitting to NMFS an estimate of reimbursable management costs 
incurred as a result of the IFQ Program. NMFS will include such costs 
in the annual determination of the revised IFQ fee percentage after 
receiving these submissions annually from the IPHC. Should such costs 
be submitted and included in any future IFQ fee percentage calculation, 
the IPHC would subsequently receive the appropriate portion of IFQ cost 
recovery collections as reimbursement for those IFQ Program related 
costs.
    Comment 4: A cost recovery program for the Alaska Community 
Development Quota (CDQ) program should also be imposed in the future.
    Response: NMFS agrees. The IFQ Program and the CDQ Program are 
different fishery management programs and, subsequently, have distinct 
costs eligible for Federal or state cost recovery. NMFS and the State 
of Alaska (State) are currently considering a CDQ cost recovery fee 
program that would be similar in design to, but implemented separately, 
from the IFQ program. Because the costs for the CDQ Program and the IFQ 
Program involve separate and distinct costs, the corresponding fee 
percentages would not necessarily be equal. The exception to this would 
be in years when costs of both programs individually equaled or 
exceeded the 3 percent limit established by Magnuson-Stevens Act and 
the fee percentage of each would, therefore, equal 3 percent during 
that year.
    Comment 5: The IFQ Cost Recovery Program does not include a process 
for an ``Oversight Committee'' that would allow industry to review and 
comment on agency budgets and the associated fee percentage on an 
annual basis.
    Response: A process exists for individual citizens or independent 
groups to provide comment to the Regional Administrator regarding 
possible adjustment of the IFQ fee percentage. NMFS will publish and 
distribute specific information regarding the actual management and 
enforcement cost of the IFQ Program during the most recently completed 
fiscal year, as well as such information regarding projected costs of 
the IFQ Program during the current fiscal year. In addition, the Annual 
Report as described in Sec. 679.45(i) of this rule will provide a 
summary of the actual annual budgetary expenditures by each of the 
relevant NMFS Divisions and the IPHC.
    The Council has two oversight committees, the longstanding IFQ 
Implementation Committee and the more recently established IFQ/CDQ Fee 
Committee, either of which may provide the Regional Administrator with 
relevant new information. The IFQ/CDQ Fee Committee contributed 
significantly to the constructive development of this IFQ Cost Recovery 
Program rule. Both are Council Committees and can provide relevant 
information.
    Comment 6: IFQ standard prices should be distributed to the fleet 
through industry associations.
    Response: NMFS agrees and will provide industry associations with 
copies of the NMFS IFQ standard price list for distribution. This is in 
addition to making available to the public the NMFS IFQ standard price 
list via the Federal Register and other means of public notification 
such as direct mailing to all IFQ permit holders and IFQ registered 
buyers.
    Comment 7: The rule should provide additional clarification of the 
``adequate documentation'' that would be required for a fishermen 
seeking to establish a revised IFQ fee liability.
    Response: NMFS agrees but does not want to overly constrain IFQ 
permit holders by limiting options for defensibly documenting 
transactions of initial sale of their IFQ landings. Clarification 
language that includes examples of such documentation is incorporated 
in this final rule in Sec. 679.5(l)(7)(ii)(C)(2)(ii).
    Comment 8: Making IFQ permit holders responsible for collecting 
from themselves and submitting the fees to NMFS rather than making IFQ 
registered buyers operating as shoreside processors the responsible fee 
collectors and submitters will preclude the ability to track fee 
amounts owed by fishery, IFQ permit holder, and species year after 
year.
    Response: NMFS disagrees. NMFS has developed a new computerized 
system capable of integrating aspects of the IFQ fisheries, including 
IFQ landings by species, permit number, IFQ permit holder, location, 
ex-vessel value, and date, storing this information year after year. 
The Restricted Access Management Division will maintain and operate 
this computerized data management system for the IFQ Cost Recovery 
Program. Furthermore, this rule requires IFQ registered buyers 
operating as shoreside processors to collect and submit to NMFS ex-
vessel

[[Page 14921]]

value information regarding IFQ landings. This volume and value 
information will be included in the new computerized IFQ cost recovery 
system and will help track the amount owed by IFQ permit holders 
through the determination of NMFS standard prices by species, port or 
port-group, and month.
    Comment 9: One commentator assumed that NMFS plans to enforce 
payment from IFQ permit holders by withholding the following year's 
quota issuance.
    Response: NMFS clarifies this incorrect assumption. NMFS will issue 
IFQ each year to IFQ permit holders. However, if the Regional 
Administrator determines that an IFQ permit holder has not paid the 
full IFQ fee liability incurred by the permit holder, then the Regional 
Administrator may disapprove any transfer of IFQ or QS to or from the 
IFQ permit holder in accordance with Sec. 679.41(c)(4). The Regional 
Administrator's determination may be appealed by the IFQ permit holder 
pursuant to Sec. 679.45(h). During the period of an appeal the IFQ 
permit will remain valid, although transfer restrictions may be imposed 
or, if already imposed, remain in place. The IFQ permit will remain 
valid until a final agency action (FAA) is issued to the IFQ permit 
holder. Upon issuance of an FAA which identifies a final IFQ fee 
liability amount still due by the IFQ permit holder as specified in 
Secs. 679.45 and 679.5(l)(7)(ii), the IFQ permit (i.e., the 
authorization to fish the IFQ/QS) will immediately become invalid 
pursuant to Sec. 679.4(d)(7).
    Compliance Guide for Small Entities
    In compliance with the Small Business Regulatory Enforcement 
Fairness Act of 1996, NMFS is publishing this paragraph as a compliance 
guide that explains how small entities must comply with regulatory 
changes made by this final rule. This final rule requires IFQ permit 
holders to collect and submit to NMFS their IFQ fees as established and 
described in these regulations. IFQ permit holders should be aware that 
all of their IFQ landings have an IFQ fee liability, at the default 
rate of 3 percent of ex-vessel value, for which they are responsible 
for collecting and submitting in accordance with Sec. 679.5.(l)(7)(ii) 
and Sec. 679.45 of this regulation. Also, IFQ registered buyers should 
be aware that they must comply with the IFQ reporting and record-
keeping requirements specified in Sec. 679.5(l) and the landing report 
at Sec. 679.5(i)(2), in particular.

Classification

    The Regional Administrator has determined that this final rule is 
necessary to fulfil the requirement of section 304(d)(2) the Magnuson-
Stevens Act. This action has been determined to be not significant for 
purposes of E.O. 12866.
    The AA finds for good cause under 5 U.S.C. 553(d)(3) that the 
effectiveness of this rule should not be delayed for 30 days because a 
delay would be contrary to the public interest. The primary effect of 
this action will occur in January 2001 when the IFQ permit holders are 
required to submit fees based on the IFQ halibut and sablefish landings 
they made during the previous year. While submission of fees is not 
required until January 2001, fee liability starts with the effective 
date of the rule. Delayed effectiveness of the rule would prevent fee 
liability from being applied uniformly to all landings made during the 
IFQ fishing season, which starts March 15, 2000, and would cause 
substantial confusion and inequity as to which landings IFQ fee 
liability applies.
    NMFS prepared an FRFA for this final rule in compliance with the 
Regulatory Flexibility Act. The FRFA describes the impact this final 
rule will have on small entities. A copy of the FRFA can be obtained 
from NMFS (see ADDRESSES).
    The Magnuson-Stevens Act requires the Secretary to impose a fee to 
recover the actual management and enforcement costs of the Alaska IFQ 
Program. The objective of this rule is to collect revenue from 
fishermen participating in the IFQ Program to help recover the costs 
incurred by the Federal government as a result of the management and 
enforcement of the IFQ Program.
    This rule applies to persons who possess and use IFQ Registered 
Buyer Permits or IFQ Permits (fishermen). IFQ registered buyer permit 
holders who do not operate as shoreside processors or those IFQ permit 
holders who do not land IFQ fish (i.e., possess unfished permits) would 
not be subject to this rule. In 1998, approximately 9 percent of IFQ 
pounds available remained unfished by the end of the season. As for IFQ 
registered buyers, generally, fewer than 40 percent of those who held 
IFQ Registered Buyer Permits actually reported landings (i.e., active 
buyer permit users). In addition, imposition of the cost recovery fees 
could indirectly impact the income of IFQ crew members if IFQ permit 
holders reduce the income to members of their crews due to the cost 
recovery fees. Detailed figures for the number of IFQ crew members are 
not available.
    This action directly affects two types of registered small entities 
as defined by the Small Business Administration: (1) IFQ registered 
buyers who operate as shoreside processors and purchase IFQ halibut or 
sablefish from IFQ permit holders, and (2) halibut and sablefish IFQ 
permit holders. By year-end 1998, 3,978 persons held one or more IFQ 
permits (fishermen) and reported landings of at least 1 lb (0.45 kg) of 
IFQ fish. Also in 1998, NMFS issued 859 IFQ registered buyer permits, 
but only 309 were active IFQ registered buyers. Only 79 of the active 
IFQ registered buyers operated as shoreside processors that purchased 
IFQ halibut or sablefish. The 79 IFQ registered buyers identified 
themselves in 1998 as shoreside processors, and would be the only type 
of IFQ registered buyers regulated under the proposed action. The 
number of IFQ permits and IFQ registered buyer permits has decreased 
each year since 1995 when the program was initiated and is expected to 
stabilize near 1998 levels. For purposes of the IFRA, all 79 IFQ 
permits holders are considered small entities. Therefore, the total 
number of small entities that this rule would apply to IFQ registered 
buyers and permit holders would be expected to be equal to or less than 
4,057. This rule imposes new Recordkeeping and reporting requirements. 
These are discussed below in the context of the Paperwork Reduction Act 
burden.
    A broad variety of alternatives was considered in the development 
of the proposed regulations for IFQ cost recovery. The alternatives 
were considered in the context of combining various options associated 
with a specific set of necessary program elements. Some of the 
necessary program elements include the scope of the IFQ cost recovery 
regulations; identification of the IFQ fishery; the annual fee 
percentage value; the IFQ fish subject to the IFQ cost recovery fee; 
the method used to determine ex-vessel values of IFQ halibut and IFQ 
sablefish landings; the method used to establish standard ex-vessel 
prices for IFQ halibut and IFQ sablefish; the methods of accounting for 
post-season ex-vessel price adjustments and other corrections to ex-
vessel value; IFQ fee collection and submission mechanisms and 
schedules; and the implementation date.
    In selecting the preferred alternative, NMFS incorporated many 
elements designed to minimize negative impacts on small entities.
    1. The fee would apply only to IFQ halibut and sablefish landings, 
and not to all species landed by IFQ fishermen.
    2. Fishermen would be able to choose whether to use actual or 
standard ex-

[[Page 14922]]

vessel value of their IFQ landings whenever possible.
    3. Standard prices would be primarily based on current year ex-
vessel prices rather than previous year ex-vessel prices, and would be 
refined to represent ex-vessel prices by species, by month, and by 
port-group.
    4. Registered buyers and IFQ permit holders would be required to 
submit recordkeeping and reporting information only once a year, rather 
than multiple mid-season submissions.
    NMFS also considered the alternative of not implementing an IFQ 
cost recovery (status quo). The status quo alternative would minimize 
economic impacts on small entities in that no new fee would be imposed. 
However, this alternative would not be in compliance with the Magnuson-
Stevens Act. Alternatives to the proposed recordkeeping and reporting 
requirements could reduce economic impacts on small entities. For 
instance, implementing an electronic reporting system could reduce the 
burdens associated with filing annual reports; however, NMFS has not 
ascertained whether electronic reporting would allow for comparable, 
easily interpreted data and costs associated with acquiring new 
software could counterbalance any benefits. NMFS also considered 
extracting data from reports currently required of AGF&G. The ADF&G 
reports would not provide all the necessary data in a sufficiently 
timely manner. NMFS also considered an alternative that would not have 
assessed a fee on retro-payments. While this approach would benefit 
permit-holders who accepted retro-payments, it would not be acceptable 
to those who do not. In addition, this approach might not comply with 
the spirit of the statute to assess a fee on the full amount of 
payment.
    NMFS received no comments on the Initial Regulatory Flexibility 
Analysis prepared for this rule and no changes were made in the final 
rule.
    Notwithstanding any other provision of law, no person is required 
to respond to and no person shall 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 Office of Management and Budget (OMB) Control Number.
    This rule contains collection-of-information requirements subject 
to the Paperwork Reduction Act (PRA). The collection of this 
information has been approved by the Office of Management and Budget, 
OMB Control Number 0648-0398.
    The recordkeeping and reporting requirements will apply to the IFQ 
permit holder and the IFQ registered buyer operating as a shoreside 
processor and buying halibut or sablefish landed under the IFQ Program. 
The estimated time for an IFQ permit holder to complete the IFQ payment 
submission form package is 2.0 hours per response. The time required to 
complete the buyer report is estimated to be 2.0 hours per report. The 
estimated response times shown include the time to review the 
instructions, search existing sources, gather and maintain the data 
needed, and complete and review the collection of information. Send 
comments regarding these burden estimates or any other aspect of the 
data requirements, including suggestions for reducing the burden, to 
NMFS (see ADDRESSES) and to the Office of Information and Regulatory 
Affairs, OMB, Washington, DC 20503, Attention: NOAA Desk Officer.

List of Subjects in 50 CFR Part 679

    Alaska, Cost recovery, Fees, Fisheries, IFQ, and Recordkeeping and 
reporting requirements.

    Dated: March 13, 2000
Penelope D. Dalton,
Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set forth in the preamble, 50 CFR part 679 is 
amended to read 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, definitions for listed terms are added in 
alphabetical order to read as follows:


Sec. 679.2  Definitions.

* * * * *
    KIFQ actual ex-vessel value means the U.S. dollar amount of all 
compensation, monetary or non-monetary, including any IFQ retro-
payments received by an IFQ permit holder for the purchase of IFQ 
halibut or IFQ sablefish landing(s) on his or her permit(s) described 
in terms of IFQ equivalent pounds.
* * * * *
    IFQ equivalent pound(s) means the weight amount, recorded in 
pounds, for an IFQ landing and calculated as round weight for sablefish 
and headed and gutted weight for halibut.
    IFQ fee liability means that amount of money for IFQ cost recovery, 
in U.S. dollars, owed to NMFS by an IFQ permit holder as determined by 
multiplying the appropriate standard ex-vessel value or actual ex-
vessel value of his or her IFQ halibut or IFQ sablefish landing(s) by 
the appropriate IFQ fee percentage.
    IFQ fee percentage means that positive number no greater than 3 
percent (0.03) determined by the Regional Administrator and established 
for use to calculate the IFQ cost recovery fee liability for an IFQ 
permit holder.
* * * * *
    IFQ permit holder means the person identified on an IFQ permit, at 
the time a landing is made, as defined at Sec. 679.4(d)(3)(B).
    IFQ program means the individual fishing quota program for the 
fixed gear fisheries for Pacific halibut and sablefish in waters in and 
off Alaska and governed by regulations under this part.
    IFQ registered buyer means the person identified on a registered 
buyer permit, as defined at Sec. 679.4(d)(2).
    IFQ retro-payment means the U.S. dollar value of a payment, 
monetary or non-monetary, made to an IFQ permit holder for the purchase 
of IFQ halibut or IFQ sablefish landed at some previous time.
* * * * *
    IFQ standard ex-vessel value means the total U.S. dollar amount of 
IFQ halibut or IFQ sablefish landings as calculated by multiplying the 
number of landed IFQ equivalent pounds by the appropriate IFQ standard 
price determined by the Regional Administrator.
    IFQ standard price means a price, expressed in U.S. dollars per IFQ 
equivalent pound, for landed IFQ halibut and IFQ sablefish determined 
annually by the Regional Administrator and documented in an IFQ 
standard price list published by NMFS.
* * * * *
    Limited Access System Administrative Fund (LASAF) means the 
administrative account used for depositing cost recovery fee payments 
into the U.S. Treasury as described in the Magnuson-Stevens Act under 
section 304(d)(2)(C)(i) and established under section 305(h)(5)(B).
* * * * *
    NMFS Person Identification Number means a unique number assigned by 
NMFS to any person who applied for, or who has been issued, a 
certificate, license, or permit under any fishery management program 
administered by the Alaska Region for purposes of the

[[Page 14923]]

NMFS/Alaska Region Integrated Regional Data System.
* * * * *
    3. In Sec. 679.4, paragraph (a)(5) is revised and paragraph (d)(7) 
is added to read as follows:


Sec. 679.4  Permits.

    (a) * * *
    (5) Sanctions and denials. Procedures governing sanctions and 
denials are found at subpart D of 15 CFR part 904. Such procedures are 
required for enforcement purposes, not administrative purposes.
* * * * *
    (d) * * *
    (7) Validity. An IFQ permit issued under this part is valid only if 
all IFQ fee liability of the IFQ permit holder that is due as a result 
of final agency action has been paid as specified in Secs. 679.45 and 
679.5(l)(7)(ii).
* * * * *
    4. In Sec. 679.5, paragraph (l)(7) is added to read as follows:


Sec. 679.5  Recordkeeping and reporting.

* * * * *
    (l) * * *
    (7) IFQ cost recovery program--(i) IFQ buyer report.
    (A) Applicability. An IFQ registered buyer that also operates as a 
shoreside processor and receives and purchases IFQ landings of 
sablefish or halibut must submit annually to NMFS a complete IFQ Buyer 
Reportas described in this paragraph (l) and as provided by NMFS for 
each reorting period, as described at Sec. 679.5 (l)(7)(i)(E), in which 
the registered buyer receives IFQ fish.
    (B) Due date. A complete IFQ Buyer Report must be postmarked or 
received by the Regional Administrator not later than October 15 
following the reporting period in which the IFQ registered buyer 
receives the IFQ fish.
    (C) Information required. A complete IFQ Buyer Report must include 
the following information:
    (1) IFQ registered buyer identification, including:
    (i) Name,
    (ii) Registered buyer number,
    (iii) Social Security number or tax identification number,
    (iv) NMFS person identification number (if applicable),
    (v) Business address,
    (vi) Telephone number,
    (vii) Facsimile telephone number,
    (viii) Primary registered buyer activity,
    (ix) Other registered buyer activity, and
    (x) Landing port location;
    (2) Pounds purchased and values paid. (i) The monthly total 
weights, represented in IFQ equivalent pounds by IFQ species, that were 
landed at the landing port location and purchased by the IFQ registered 
buyer;
    (ii) The monthly total gross ex-vessel value, in U.S. dollars, of 
IFQ pounds, by IFQ species, that were landed at the landing port 
location and purchased by the IFQ registered buyer;
    (3) Value paid for price adjustments. (i) The monthly total U.S. 
dollar amount of any IFQ retro-payments (correlated by IFQ species, 
landing month(s), and month of payment) made in the current year to IFQ 
permit holders for landings made during the previous calendar year;
    (ii) Certification, including the signature of the individual 
authorized by the IFQ registered buyer to submit the IFQ Buyer Report, 
and date of signature.
    (D) Submission address. A complete IFQ Buyer Report must be 
received at the following address by mail or facsimile transmission: 
Administrator, Alaska Region, NMFS, Attn: RAM Program, P.O. Box 21668, 
Juneau, AK 99802-1668, Facsimile: (907) 586-7354.
    (E) Reporting period. The reporting period of the IFQ Buyer Report 
shall extend from October 1 through September 30 of the following year, 
inclusive.
    (ii) IFQ permit holder Fee Submission Form--(A) Applicability. An 
IFQ permit holder who holds an IFQ permit against which a landing was 
made must submit to NMFS a complete IFQ permit holder Fee Submission 
Form provided by NMFS.
    (B) Due date and submittal. A complete IFQ permit holder Fee 
Submission Form must be postmarked or received by the Regional 
Administrator not later than January 31 following the calendar year in 
which any IFQ landing was made.
    (C) Contents of an IFQ Fee Submission Form. For each of the 
sections described here, a permit holder must provide the specified 
information.
    (1) Identification of the IFQ permit holder. An IFQ permit holder 
with an IFQ landing must accurately record on the identification 
section of the IFQ Fee Submission Form the following information:
    (i) The printed name of the IFQ permit holder;
    (ii) The NMFS person identification number;
    (iii) The Social Security number or tax ID number of the IFQ permit 
holder;
    (iv) The business mailing address of the IFQ permit holder; and
    (v) The telephone and facsimile number (if available) of the IFQ 
permit holder.
    (2) IFQ landing summary and estimated fee liability. NMFS will 
provide to an IFQ permit holder an IFQ Landing Summary and Estimated 
Fee Liability page as required by Sec. 679.45(a)(2). The IFQ permit 
holder must either accept the accuracy of the NMFS estimated fee 
liability associated with his or her IFQ landings for each IFQ permit, 
or calculate a revised IFQ fee liability in accordance with paragraph 
(l)(7)(ii)(C)(2)(i) of this section. The IFQ permit holder may 
calculate a revised fee liability for all or part of his or her IFQ 
landings.
    (i) Revised fee liability calculation. To calculate a revised fee 
liability, an IFQ permit holder must multiply the IFQ percentage in 
effect by either the IFQ actual ex-vessel value or the IFQ standard ex-
vessel of the IFQ landing. If parts of the landing have different 
values, the permit holder must apply the appropriate values to the 
different parts of the landings.
    (ii) Documentation. If NMFS requests in writing that a permit 
holder submit documentation establishing the factual basis for a 
revised IFQ fee liability, the permit holder must submit adequate 
documentation by the 30th day after the date of such 
request. Examples of such documentation regarding initial sales 
transactions of IFQ landings include valid fish tickets, sales 
receipts, or check stubs that clearly identify the IFQ landing amount, 
species, date, time, and ex-vessel value or price.
    (3) Fee calculation section--(i) Information required. An IFQ 
permit holder with an IFQ landing must record the following information 
on the Fee Calculation page: The name of the IFQ permit holder; the 
NMFS person identification number; the fee liability amount due for 
each IFQ permit he or she may hold; the IFQ permit number corresponding 
to such fee liability amount(s) due; the total price adjustment payment 
value for all IFQ halibut and/or sablefish (e.g., IFQ retro-payments) 
received during the reporting period for the IFQ Fee Submission Form as 
described in Sec. 679.5(l)(7)(ii)(D); and the fee liability amount due 
for such price adjustments.
    (ii) Calculation of total annual fee amount. An IFQ permit holder 
with an IFQ landing must perform the following calculations and record 
the results on the Fee Calculation page: add all fee liability 
amount(s) due for each IFQ permit and record the sum as the sub-total 
fee liability for all permits; multiply price adjustment payment(s) 
received for each IFQ species by the fee percentage in effect at the 
time the payment(s) was received by the IFQ permit holder; add the 
resulting fee

[[Page 14924]]

liability amounts due for all price adjustment payments for each IFQ 
species, then enter the sum as the sub-total fee for price adjustments; 
add the sub-total fee liability for all permits and the sub-total fee 
for price adjustments, then enter the resulting sum as the total annual 
fee amount on the Fee Calculation page and on the Fee Payment page.
    (4) Fee payment and certification section--(i) Information 
required. An IFQ permit holder with an IFQ landing must provide his or 
her NMFS person identification number and must sign and date and have 
notarized by a Notary Public the Fee Payment section and record the 
following: his or her printed name; the total annual fee amount as 
calculated and recorded on the Fee Calculation page; the total of any 
pre-payments submitted to NMFS that apply to the total annual fee 
amount; the remaining balance fee; and the enclosed payment amount.
    (ii) Calculation of balance fee payment. An IFQ permit holder with 
an IFQ landing must perform the following calculation on the Fee 
Payment section of the Fee Submission Form: Subtract from the total 
annual fee amount the total of all pre-payments made (if any) to NMFS 
and any credits held by NMFS that are applicable to that year's total 
IFQ cost recovery fees, and record the result as the balance of the fee 
amount due.
    (D) Reporting Period. The reporting period of the IFQ Fee 
Submission Form shall extend from January 1 to December 31 of the year 
prior to the January 31 due date described in Sec. 679.5(l)(7)(ii)(B).
* * * * *
    5. In Sec. 679.41, paragraph (c)(8) is revised and paragraph (c)(9) 
is added to read as follows:


Sec. 679.41  Transfer of quota shares and IFQ.

* * * * *
    (c) * * *
    (8)(i) The person applying to make or receive the IFQ or QS 
transfer has paid all IFQ fees that have become due as a result of an 
initial administrative determination.
    (ii) The person applying to make or receive the IFQ or QS transfer 
who has not paid all IFQ fees that are due (as provided under 
Sec. 679.45(a)) has timely appealed the administrative determination 
that IFQ fees have not been paid in full and has submitted to NMFS an 
amount sufficient to satisfy any disputed liability pending a final 
agency action.
    (9) Other pertinent information requested on the Application for 
Transfer has been supplied to the satisfaction of the Regional 
Administrator.
* * * * *
    6. Section 679.45 is added to Subpart D to read as follows:


Sec. 679.45  IFQ cost recovery program.

    (a) Cost recovery fees--(1) Responsibility. The person documented 
on the IFQ permit as the permit holder at the time of an IFQ landing 
must comply with the requirements of this section. Subsequent transfer 
of QS or IFQ does not affect the permit holder's liability for 
noncompliance with this section.
    (2) IFQ Fee Liability Determination. After each IFQ fishing year, 
the Regional Administrator will issue each IFQ permit holder a summary 
of his or her IFQ pounds landed during that IFQ fishing year for each 
permit as part of the IFQ Landing and Estimated Fee Liability page 
described at Sec. 679.5(l)(7)(ii)(C)(2). The summary will include an 
estimated IFQ fee liability based on the standard ex-vessel values of 
the landings. The summary and estimated fee liability will include 
details of IFQ equivalent pounds landed by permit, port or port-group, 
species, date, and IFQ standard prices. The permit holder must either 
accept NMFS's estimate of IFQ liability or revise NMFS's estimate of 
IFQ fee liability using the Fee Submission Form described at 
Sec. 679.5(l)(7)(ii). If the permit holder revises NMFS's estimate of 
his or her fee liability, NMFS may request in writing that the permit 
holder submit documentation establishing the factual basis for the 
revised calculation. If the permit holder fails to provide adequate 
documentation by the 30th day after the date of such 
request, NMFS will determine the IFQ permit holder's fee liability 
based on standard ex-vessel values.
    (3) Fee Collection. An IFQ permit holder with an IFQ landing is 
responsible for self-collecting his or her own fee during the calendar 
year in which the IFQ fish is harvested.
    (4) Payment--(i) Payment due date. An IFQ permit holder must submit 
his or her IFQ fee liability payment(s) to NMFS at the address provided 
in this section at paragraph (a)(4)(iii) of this section not later than 
January 31 of the year following the calendar year in which the IFQ 
landings were made.
    (ii) Payment recipient. Make payment payable to NMFS.
    (iii) Payment address. Mail payment and related documents to: 
Administrator, Alaska Region, NMFS, Attn: RAM Program, P.O. Box 21668, 
Juneau, AK 99802-1668, Facsimile: (907) 586-7354.
    (iv) Payment method. Payment must be made by personal check drawn 
on a U.S. bank account, money order, or bank certified check.
    (b) IFQ ex-vessel value determination and use--(1) General. An IFQ 
permit holder must use either the IFQ standard ex-vessel value or the 
IFQ actual ex-vessel value when determining the IFQ fee liability based 
on ex-vessel value. An IFQ permit holder must base all fee liability 
calculations on the ex-vessel value that correlates to landed IFQ fish 
that is recorded in IFQ equivalent pounds.
    (2) IFQ actual ex-vessel value. An IFQ permit holder that uses 
actual ex-vessel value, as defined in Sec. 679.2, to determine IFQ fee 
liability must document actual ex-vessel value for each IFQ permit.
    (c) IFQ standard ex-vessel value determination and use--(1) Use of 
standard price. An IFQ permit holder that uses standard ex-vessel value 
to determine the IFQ fee liability as part of a revised IFQ fee 
liability submission must use the corresponding standard price(s) as 
published in the Federal Register.
    (2) Duty to publish list--(i) General. Each year the Regional 
Administrator will publish IFQ standard prices in the Federal Register 
during the last quarter of each calendar year. The standard prices will 
be described in U.S. dollars per IFQ equivalent pound, for IFQ halibut 
and sablefish landings made during the current calendar year.
    (ii) Effective duration. The IFQ standard prices will remain in 
effect until revised by the Regional Administrator by notification in 
the Federal Register based upon new information of the type set forth 
in this section. IFQ standard prices published in the Federal Register 
by NMFS shall apply to all landings made in the same calendar year as 
the IFQ standard price publication and shall replace any IFQ standard 
prices previously provided by NMFS that may have been in effect for 
that same calendar year.
    (iii) Determination. NMFS will calculate the IFQ standard prices to 
reflect, as closely as possible by month and port or port-group, the 
variations in the actual ex-vessel values of IFQ halibut and IFQ 
sablefish landings based on information provided in the IFQ Buyer 
Reports as described in Sec. 679.5(l)(7)(i). The Regional Administrator 
will base IFQ standard prices on the following types of information:
    (A) Landed pounds by IFQ species, port-group, and month;
    (B) Total ex-vessel value by IFQ species, port-group, and month; 
and

[[Page 14925]]

    (C) Price adjustments, including IFQ retro-payments.
    (d) IFQ fee percentage.--(1) Default percentage. The IFQ fee 
percentage is 3 percent (0.03) unless adjusted by the Regional 
Administrator by publication in the Federal Register in accordance with 
Sec. 679.45(d)(3).
    (2) Calculating fee percentage value. Each year the Regional 
Administrator will calculate the fee percentage.
    (i) Factors. In making the calculations the Regional Administrator 
will consider the following factors:
    (A) The catch to which the IFQ fee will apply;
    (B) The projected ex-vessel value of that catch;
    (C) The costs directly related to the management and enforcement of 
the IFQ program;
    (D) The funds available for the IFQ program in the Limited Access 
System Administrative Fund (LASAF); and
    (E) Nonpayment of fee liabilities.
    (ii) Methodology. In making the calculation, the Regional 
Administrator will use the methodology described here.
    [100 x (DPC - AB) / V] / (1 -NPR) where:
    DPC is the direct program costs for the IFQ fishery for the 
previous fiscal year,
    AB is the projected end of the year LASAF account balance for the 
IFQ program,
    V is the projected ex-vessel value of the catch subject to the IFQ 
fee for the current year, and
    NPR is the fraction of the fee assessments that is expected to 
result in nonpayment.
    (3) Adjustments. (i) General. During or before the last quarter of 
each year, the Regional Administrator will consider adjusting the IFQ 
fee percentage. Consideration will be based on the calculations 
described in Sec. 679.45(d)(2). The Regional Administrator may reduce 
the IFQ fee percentage at any time based on new information of the type 
set forth in Sec. 679.45(d)(2).
    (ii) In-season effective period. An in-season reduction in the IFQ 
fee percentage supersedes the IFQ fee percentage previously in effect 
for the calendar year and remains in effect through the end of the 
calendar year in which it was determined unless otherwise adjusted by 
the Regional Administrator.
    (4) Publication. The Regional Administrator will publish 
notification in the Federal Register any adjustment of the IFQ fee 
percentage.
    (5) Applicable percentage. The IFQ permit holder must use the IFQ 
fee percentage in effect at the time an IFQ landing is made to 
calculate his or her fee liability for such landed IFQ pounds unless 
the percentage is subsequently adjusted as described in 
Sec. 679.45(d)(3). The IFQ permit holder must use the IFQ percentage in 
effect at the time an IFQ retro-payment is received by the IFQ permit 
holder to calculate his or her IFQ fee liability for the IFQ retro-
payment.
    (e) Non-payment of fee. If an IFQ permit holder does not submit a 
complete Fee Submission Form and corresponding payment by the due date 
described in Sec. 679.45(a)(2) and (3), the Regional Administrator may:
    (1) At any time thereafter send an IAD to the IFQ permit holder 
stating that the IFQ permit holder's estimated fee liability, as 
calculated by the Regional Administrator and sent to the IFQ permit 
holder pursuant to Sec. 679.45(a)(2) is the amount of IFQ fee due from 
the IFQ permit holder.
    (2) Disapprove any transfer of IFQ or QS to or from the IFQ permit 
holder in accordance with Sec. 679.41(c)(8)(i). Upon final agency 
action determining that an IFQ permit holder has not paid his or her 
IFQ fee liability, any IFQ fishing permit held by the IFQ permit holder 
is not valid until all IFQ fee liabilities are paid. If payment is not 
received by the 30th day after the final agency action, the 
matter will be referred to the appropriate authorities for purposes of 
collection.
    (f) Underpayment of IFQ fee. (1) When an IFQ permit holder has 
incurred a fee liability and made a timely payment to NMFS of an amount 
less than the NMFS estimated IFQ fee liability, the Regional 
Administrator will review the Fee Submission Form and related 
documentation submitted by the IFQ permit holder. If the Regional 
Administrator determines that the IFQ permit holder has not paid a 
sufficient amount, the Regional Administrator may disapprove any 
transfer of IFQ or QS to or from the IFQ permit holder in accordance 
with Sec. 679.41(c)(4). The Regional Administrator will notify the IFQ 
permit holder by letter that an insufficient amount has been paid and 
that the IFQ permit holder has 30 days from the date of the letter to 
either pay the amount determined to be due or provide additional 
documentation to prove that the amount paid was the correct amount. The 
Regional Administrator will evaluate any additional documentation 
submitted by an IFQ permit holder in support of his or her payment. If 
the Regional Administrator determines that the additional documentation 
does not meet the IFQ permit holder's burden of proving his or her 
payment is correct, the Regional Administrator will send the permit 
holder an IAD indicating that the permit holder did not meet the burden 
of proof to change the IFQ fee liability as calculated by the Regional 
Administrator based upon the IFQ standard ex-vessel value.
    (2) After expiration of the 30-day period, the Regional 
Administrator will issue an IAD and notify the IFQ permit holder. The 
IAD will set out the facts and indicate the deficiencies in the 
documentation submitted by the permit holder. An IFQ permit holder who 
receives an IAD may appeal pursuant to Sec. 679.43. In an appeal of an 
IAD made under this section, the IAD permit holder has the burden of 
proving his or her claim.
    (3) If the permit holder fails to file an appeal of the IAD 
pursuant to Sec. 679.43, the IAD will become the final agency action. 
If the IAD is appealed and the final agency action is a determination 
that additional sums are due from the IFQ permit holder, the IFQ permit 
holder must pay any IFQ fee amount determined to be due not later than 
30 days from the issuance of the final agency action. Once a fee 
liability determination becomes final, any IFQ fishing permit held by 
the IFQ permit holder will be deemed not valid until all IFQ fee 
liabilities have been paid. If payment is not received by the 
30th day after the final agency action, the matter will be 
referred to the appropriate authorities for purposes of collection.
    (g) Over payment. Upon issuance of final agency action, any amount 
submitted to NMFS in excess of the IFQ fee liability determined to be 
due by the final agency action will be returned to the IFQ permit 
holder unless the permit holder requests the agency to credit the 
excess amount against the IFQ permit holder's future IFQ fee liability.
    (h) Appeals and requests for reconsideration. An IFQ permit holder 
who receives an IAD may either appeal the IAD pursuant to Sec. 679.43 
or request reconsideration. Within 60 days from the date of issuance of 
the IAD, the Regional Administrator may undertake a reconsideration of 
the IAD on his or her own initiative. If a request for reconsideration 
is submitted or the Regional Administrator initiates a reconsideration, 
the 60-day period for appeal under Sec. 679.43 will begin anew upon 
issuance of the Regional Administrator's reconsidered IAD. The Regional 
Administrator may undertake only one reconsideration of the IAD, if 
any. If an IFQ permit holder fails to file an appeal of the IAD 
pursuant to Sec. 679.43, the IAD will become the final agency action. 
In any appeal or reconsideration of an IAD made under this section, an 
IFQ permit holder has the burden of proving his or her claim.

[[Page 14926]]

    (i) Annual report. NMFS will publish annually a report describing 
the status of the IFQ Cost Recovery Program.

[FR Doc. 00-6674 Filed 3-14-00; 4:53 pm]
BILLING CODE 3510-22-F