[Federal Register Volume 66, Number 104 (Wednesday, May 30, 2001)]
[Proposed Rules]
[Pages 29276-29281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13525]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 660

[Docket No. 010509116-116-01; I.D. 042301B]
RIN 0648-AO87


Fisheries off West Coast States and in the Western Pacific; 
Pacific Coast Groundfish Fishery; Restrictions on Frequency of Limited 
Entry Permit Transfers

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

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS proposes a rule that would revise restrictions on the 
frequency and timing of limited entry permit transfers and would 
clarify NMFS regulatory requirements for transferring limited entry 
permits. This proposed rule would also update and clarify limited entry 
program regulations so that they are more readable for the public. This 
action is intended to propose revisions to the limited entry permit 
regulations that would better address the needs of the small businesses 
participating in the Pacific Coast groundfish limited entry fishery.

DATES: Comments must be submitted in writing by June 19, 2001.

ADDRESSES: Send comments to Donna Darm, Acting Administrator, Northwest 
Region, (Regional Administrator) NMFS, 7600 Sand Point Way NE., 
Seattle, WA 98115; or Rebecca Lent, Administrator, Southwest Region, 
NMFS, 501 West Ocean Blvd., Suite 4200, Long Beach, CA 90802-4213. 
Copies of the environmental assessment/regulatory impact review (EA/
RIR) for this action are available from Donald McIsaac, Executive 
Director, Pacific Fishery Management Council (Council), 2130 SW Fifth 
Avenue, Suite 224, Portland, OR 97201.

FOR FURTHER INFORMATION CONTACT: Yvonne deReynier or Kevin Ford 
(Northwest Region, NMFS), phone: 206-526-6140; fax: 206-526-6736 and; 
e-mail: [email protected], [email protected] or Svein Fougner 
(Southwest Region, NMFS) phone: 562-980-4000; fax: 562-980-4047 and; e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

[[Page 29277]]

Electronic Access

    This Federal Register document is also accessible via the Internet 
at the website of the Office of the Federal Register: http://www.access.gpo.gov/su-docs/aces/aces140.html.

Pacific Coast Groundfish Fishery

    This proposed rule would revise the Pacific Coast groundfish 
fishery limited entry program regulations at 50 CFR part 660 to modify 
the restriction on frequency and timing of limited entry permit 
transfers and to update and re-organize the regulations in a manner 
that is consistent with current NMFS permitting activities and 
practices. Re-organizing limited entry program regulations would not 
change the effect or intent of the regulations. This proposed rule is 
based on recommendations of the Council, operating under the authority 
of the Pacific Coast Groundfish Fishery Management Plan (FMP) and the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act). The background and rationale for the Council's 
recommendations are summarized here. Further detail appears in the EA/
RIR prepared by NMFS for this action.

Background

    Vessel participation in Pacific Coast groundfish fisheries is 
constrained in part by a limited entry permit program initially 
implemented in 1994. Limited entry permits were issued to vessels 
meeting minimum groundfish landings requirements with trawl, longline, 
or pot gear during a 1984 through 1988 window period.
    Since the implementation of the limited entry program, the Council 
has made several program changes to further constrain effort in the 
fleet, including permit combination requirements for larger vessels 
participating in the fishery and further access limitation for fixed 
gear vessels targeting sablefish. In 1998, the Council introduced 
another measure intended to constrain fishing effort, a limitation on 
the frequency of permit transfers to once every 12 months. The Council 
also recommended restricting the effectiveness of a permit transfer to 
the first day of the cumulative limit period following the date of the 
transfer, to prevent more than one vessel from using that permit during 
a single period.
    Individual vessels do not participate in the groundfish fishery 
every day of the year. However, with unlimited permit transfers 
allowed, a vessel might transfer its permit to another vessel when the 
original vessel is participating in another fishery or when it is 
undergoing routine maintenance. When unlimited transfers were allowed, 
effort in the fishery expanded beyond effort levels expected from the 
number of limited entry permits issued. Therefore, to constrain effort, 
the Council recommended that a permit could be transferred only once 
every 12 months.
    Under current regulations, a vessel is limited to harvesting a 
specific amount of groundfish per cumulative limit period (generally 1 
or 2 months). If a permit could be transferred to a different vessel in 
the middle of the cumulative limit period, two vessels could each 
harvest a cumulative limit, doubling the effort otherwise expected from 
that permit. Restricting the transfer of permits to the first day of a 
cumulative limit period was intended to prevent more than one vessel 
from using a permit to harvest groundfish cumulative limits during a 
single cumulative limit period. NMFS implemented the Council's 
recommendations on restricting permit transfers on June 25, 1998 (63 FR 
34606).
    At its September and November 2000 meetings, the Council 
reconsidered these transfer restrictions and considered the need to 
revise and clarify other existing permit regulations. While the Council 
continued to support restricting the frequency and timing of permit 
transfers, it wanted to find a way to increase regulatory flexibility 
for permit holders without losing the benefits from the limitations on 
the number of vessels that may be attached to a permit in any 1-year or 
cumulative limit period. To provide this flexibility, the Council 
recommended restricting the frequency of limited entry permit transfers 
to once per calendar year, rather than once every 12 months. The 
Council also recommended a slight modification to permit transfer 
regulations, to clarify that permit transfers will be effective no 
sooner than the first day of a cumulative limit period after the signed 
permit transfer form and the original permit are submitted to the 
agency. This change would give an owner enough time to complete the 
application package, even if the owner does not have all necessary 
documents before the start of the cumulative limit period. This change 
would still ensure that the permit cannot be used by two vessels during 
the same cumulative limit period.
    Since the transfer rule's implementation in 1998, the restriction 
on frequency and timing of limited entry permit transfers has applied 
to permit owners changing the vessel registered to the permit and to 
permit owners changing the name of the person(s) owning or leading the 
permit without changing the vessel registration. This restriction has 
adversely affected some permit-owning individuals, corporations and 
partnerships. In recent years, some entities owning limited entry 
permits have merged, reorganized, added a partner, or incorporated, but 
have kept the permit on the same vessel. Such transactions occur in the 
normal course of business and do not affect fishery participation 
levels, but are counted against the one time transfer rule. Any change 
in permit ownership structure limited the permit owner from making 
additional changes for a period of 12 months, such as adding a new 
vessel to the permit and/or leasing the permit to another person or 
entity. In an increasingly uncertain and depressed fisheries business 
environment, permit holders need greater latitude in using their 
permits where that flexibility will achieve the original purpose of the 
regulation.
    When NMFS learned that the Council was considering changes to the 
limited entry permit regulations, the agency asked for a Council 
recommendation for NMFS to revise and clarify the overall limited entry 
program regulations. Since the 1994 implementation of the limited entry 
program, the Council has recommended numerous regulatory revisions in 
keeping with the changing needs of the fishery. With each change to the 
management of the limited entry program, NMFS has revised the 
appropriate portions of the permit regulations at 50 CFR 660.333 
through 660.341. Over time, these revisions, additions and deletions 
have resulted in a somewhat confusing and convoluted set of limited 
entry program regulations.
    This proposed rule would modify the limited entry program 
regulations to remove outdated provisions, rearrange and clarify 
currently applicable regulations into a more readable and user-friendly 
format, and incorporate the new Council recommendations on the 
frequency and timing of permit transfers. Clarifications of existing 
requirements include: revising the definition of ``lessee'' to specify 
that lessees do not have the right to transfer permits; revising the 
prohibition against operating a limited entry vessel without a limited 
entry permit so that the prohibition is clear without needing reference 
to other regulations; rearranging the limited entry program regulations 
into a more logical format; removing permit regulations that deal with 
permit applications that are no longer accepted; and clarifying 
documentation needs for the different permit action requests that 
permit

[[Page 29278]]

owners make to the Fisheries Permits Office.

Classification

    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration (SBA) that this proposed rule, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities as follows:

    A fish-harvesting business is considered a ``small'' business by 
the SBA if it has annual receipts not in excess of $3.0 million. It 
is the limited entry fleet that would be affected by this action, 
and almost all limited entry permit holders are considered small 
businesses under SBA standards. Overall, this is a minor action that 
increases business flexibility for limited entry permit holders. 
This action is not expected to have any negative effect, and would 
positively benefit limited entry permit holders by: allowing them 
the flexibility to plan permit transfers in accordance with changes 
in seasonal management; improving the clarity and usability of 
limited entry permit regulations; and increasing their flexibility 
in making changes and corrections in permit ownership documentation.

    As a result, a regulatory flexibility analysis was not prepared.

List of Subjects in 50 CFR Part 660

    Administrative practice and procedure, American Samoa, Fisheries, 
Fishing, Guam, Hawaiian Natives, Indians, Northern Mariana Islands, 
Reporting and recordkeeping requirements.

    Dated: May 21, 2001.
William T. Hogarth,
Acting Assistant Administrator for Fisheries, National Marine Fisheries 
Service.

    For the reasons set out in the preamble, 50 CFR part 660 is 
proposed to be amended as follows:

PART 660--FISHERIES OFF WEST COAST STATES AND IN THE WESTERN 
PACIFIC

    1. The authority citation for part 660 continues to read as 
follows:

    Authority: 16 U.S.C. 1801 et seq.

    2. In Sec. 660.302, the definition for ``Permit lessee'' is revised 
to read as follows:


Sec. 660.302  Definitions.

* * * * *
    Permit lessee means a person who has the right to possess and use a 
limited entry permit for a designated period of time, with reversion of 
those rights to the permit owner. A permit lessee does not have the 
right to transfer a permit or change the ownership of the permit.
* * * * *

    3. In Sec. 660.306, paragraph (n) is revised to read as follows:


Sec. 660.306  Prohibitions.

* * * * *
    (n) Fail to carry onboard a vessel the limited entry permit 
registered for use with that vessel, if a limited entry permit is 
registered for use with that vessel.
* * * * *

    4. Sections 660.333 through 660.335 are revised to read as follows:


Sec. 660.333  Limited entry fishery--eligibility and registration.

    (a) General. In order for a vessel to participate in the limited 
entry fishery, the vessel owner must hold (by ownership or lease) a 
limited entry permit and, through SFD, must register that permit for 
use with his/her vessel. When participating in the limited entry 
fishery, a vessel is authorized to fish with the gear type endorsed on 
the limited entry permit registered for use with that vessel. There are 
three types of gear endorsements: trawl, longline, and pot (or trap). A 
sablefish endorsement is also required for a vessel to participate in 
the regular and/or mop-up seasons for the nontrawl, limited entry 
sablefish fishery, north of 36 deg. N. lat. A limited entry permit 
confers a privilege of participating in the Pacific Coast limited entry 
groundfish fishery in accordance with Federal regulations in 50 CFR 
part 660.
    (b) Eligibility. Only a person eligible to own a documented vessel 
under the terms of 46 U.S.C. 12102(a) may be issued or may hold a 
limited entry permit.
    (c) Registration. Limited entry permits will normally be registered 
for use with a particular vessel at the time the permit is issued, 
renewed, transferred, or replaced. If the permit will be used with a 
vessel other than the one registered on the permit, the permit owner 
must register that permit for use with the new vessel through the SFD. 
The reissued permit must be placed on board the new vessel in order for 
the vessel to participate in the limited entry fishery.
    (1) Registration of a permit to be used with a new vessel will take 
effect no earlier than the first day of the next major limited entry 
cumulative limit period following the date of submission of the 
transfer form and the original permit.
    (2) The major limited entry cumulative limit periods will be 
announced in the Federal Register each year with the annual 
specifications and management measures, or with routine management 
measures when the cumulative limit periods are changed.
    (d) Limited entry permits indivisible. Limited entry permits may 
not be divided for use by more than one vessel.
    (e) Initial decisions. SFD will make initial decisions regarding 
permit endorsements, renewal, replacement, and change in vessel 
registration. SFD will notify the permit holder in writing with an 
explanation of any decision to deny a permit endorsement, renewal, 
replacement, or change in vessel registration. The SFD will decline to 
act on an application for permit endorsement, renewal, transfer, 
replacement, or registration of a limited entry permit if the permit is 
subject to sanction provisions of the Magnuson-Stevens Act at 16 U.S.C. 
1858(a) and implementing regulations at 15 CFR part 904, subpart D, 
apply.


Sec. 660.334  Limited entry permits--Endorsements.

    (a) ``A'' endorsement. A limited entry permit with an ``A'' 
endorsement entitles the holder to participate in the limited entry 
fishery for all groundfish species with the type(s) of limited entry 
gear specified in the endorsement, except for sablefish harvested north 
of 36 deg. N. lat. during times and with gears for which a sablefish 
endorsement is required. See paragraph (d) of this section for 
provisions on sablefish endorsement requirements. An ``A'' endorsement 
is transferable with the limited entry permit to another person, or to 
a different vessel under the same ownership under Sec. 660.335. An 
``A'' endorsement expires on failure to renew the limited entry permit 
to which it is affixed
    (b) Gear endorsements. There are three types of gear endorsements: 
trawl, longline and pot (trap). When limited entry permits were first 
issued, some vessel owners qualified for more than one type of gear 
endorsement based on the landings history of their vessels. Each 
limited entry permit has one or more gear endorsements. Gear 
endorsement(s) assigned to the permit at the time of issuance will be 
permanent and shall not be modified. While participating in the limited 
entry fishery, the vessel registered to the limited entry permit is 
authorized to fish with the gear(s) endorsed on the permit. During the 
limited entry fishery, permit holders may also fish with open access 
gear; except that during a period when the limited entry fixed gear 
sablefish fishery is restricted to those vessels with sablefish 
endorsements,

[[Page 29279]]

permit holders may not fish for sablefish with open access gear.
    (c) Vessel size endorsements--(1) General. Each limited entry 
permit will be endorsed with the LOA for the size of the vessel that 
initially qualified for the permit, except:
    (i) If the permit is registered for use with a trawl vessel that is 
more than 5 ft (1.52 m) shorter than the size for which the permit is 
endorsed, it will be endorsed for the size of the smaller vessel.
    (ii) When permits are combined into one permit to be registered for 
use with a vessel requiring a larger size endorsement, the new permit 
will be endorsed for the size that results from the combination of the 
permits as described in paragraph (c)(2)(iii) of this section.
    (2) Limitations of size endorsements--(i) A limited entry permit 
endorsed only for gear other than trawl gear may be registered for use 
with a vessel up to 5 ft (1.52 m) longer than, the same length as, or 
any length shorter than, the size endorsed on the existing permit 
without requiring a combination of permits under Sec. 660.335(b) or a 
change in the size endorsement.
    (ii) A limited entry permit endorsed for trawl gear may be 
registered for use with a vessel between 5 ft (1.52 m) shorter and 5 ft 
(1.52 m) longer than the size endorsed on the existing permit without 
requiring a combination of permits under Sec. 660.335(b) or a change in 
the size endorsement under paragraph (c)(1)(i) of this section.
    (iii) The vessel harvest capacity rating for each of the permits 
being combined is that indicated in Table 2 of this part for the LOA 
(in feet) endorsed on the respective limited entry permit. Harvest 
capacity ratings for fractions of a foot in vessel length will be 
determined by multiplying the fraction of a foot in vessel length by 
the difference in the two ratings assigned to the nearest integers of 
vessel length. The length rating for the combined permit is that 
indicated for the sum of the vessel harvest capacity ratings for each 
permit being combined. If that sum falls between the sums for two 
adjacent lengths on Table 2 of this part, the length rating shall be 
the higher length.
    (d) Sablefish endorsement and tier assignment--(1) General 
Participation in the limited entry fixed gear sablefish fishery during 
the ``regular'' or ``mop-up'' season described in Sec. 660.323 
(a)(2)(iii) and (v) north of 36 deg. N. lat., requires that an owner of 
a vessel hold a limited entry permit, registered for use with that 
vessel, with a longline or trap (or pot) endorsement and a sablefish 
endorsement. During a period when the limited entry sablefish fishery 
is restricted to those limited entry vessels with sablefish 
endorsements, a vessel with a longline or pot limited entry permit but 
without a sablefish endorsement, cannot be used to harvest sablefish in 
the open access fishery, even with open access gear. Limited entry 
permits with sablefish endorsements are assigned to one of three 
different cumulative trip limit tiers, based on the qualifying catch 
history of the permit.
    (i) A sablefish endorsement with a tier assignment will be affixed 
to the permit and will remain valid when the permit is transferred.
    (ii) A sablefish endorsement and its associated tier assignment are 
not separable from the limited entry permit, and therefore may not be 
transferred separately from the limited entry permit.
    (2) Issuance process for sablefish endorsements and tier 
assignments. (i) No new applications for sablefish endorsements will be 
accepted after November 30, 1998.
    (ii) The SFD will notify each owner of a limited entry permit with 
a sablefish endorsement, by letter of qualification status, of the tier 
assignment for which his or her permit qualifies, as indicated by 
PacFIN records. The SFD will also send to the permit owner a tier 
assignment certificate.
    (iii) If a permit owner believes there is sufficient evidence to 
show that his or her permit qualifies for a different tier than that 
listed in the letter of qualification status, that permit owner must, 
within 30 days of the issuance of the SFD's letter of qualification 
status, submit information to the SFD to demonstrate that the permit 
qualifies for a different tier. Section 660.333(d) sets out the 
relevant evidentiary standards and burden of proof.
    (iv) After review of the evidence submitted under paragraph (d)(2) 
of this section, and any additional information the SFD finds to be 
relevant, the SFD will issue a letter of determination notifying a 
permit owner of whether the evidence submitted is sufficient to alter 
the initial tier assignment. If the SFD determines the permit qualifies 
for a different tier, the permit owner will be issued a revised tier 
assignment certificate once the initial certificate is returned to the 
SFD for processing.
    (v) If a permit owner chooses to file an appeal of the 
determination under paragraph (d)(3) of this section, the appeal must 
be filed with the Regional Administrator within 30 days of the issuance 
of the letter of determination (at paragraph (d)(3) of this section). 
The appeal must be in writing and must allege facts or circumstances, 
and include evidence demonstrating why the permit qualifies for a 
different tier assignment. The appeal of a denial of an application for 
a different tier assignment will not be referred to the Council for a 
recommendation under Sec. 660.340(e).
    (vi) Absent good cause for further delay, the Regional 
Administrator will issue a written decision on the appeal within 30 
days of receipt of the appeal. The Regional Administrator's decision is 
the final administrative decision of the Department of Commerce as of 
the date of the decision.
    (e) Endorsement restrictions. ``A'' endorsements, gear 
endorsements, sablefish endorsements, and sablefish tier assignments 
may not be transferred separately from the limited entry permit.


Sec. 660.335  Limited entry permits-- renewal, combination, change of 
permit ownership or permit holdership, and transfer.

    (a) Renewal of limited entry permits and gear endorsements. (1) 
Limited entry permits expire at the end of each calendar year, and must 
be renewed between October 1 and November 30 of each year in order to 
remain in force the following year.
    (2) Notification to renew limited entry permits will be issued by 
SFD prior to September 1 each year to the most recent address of the 
permit owner. The permit owner shall provide SFD with notice of any 
address change within 15 days of the change.
    (3) Limited entry permit renewal requests received in SFD between 
November 30 and December 31 will be effective on the date that the 
renewal is approved. A limited entry permit that is allowed to expire 
will not be renewed unless the permit owner requests reissuance by 
March 31 of the following year and the SFD determines that failure to 
renew was proximately caused by illness, injury, or death of the permit 
owner.
    (b) Combining limited entry permits. Two or more limited entry 
permits with ``A'' gear endorsements for the same type of limited entry 
gear may be combined and reissued as a single permit with a larger size 
endorsement as described in Sec. 660.334(c)(2)(iii). With respect to 
permits endorsed for nontrawl limited entry gear, a sablefish 
endorsement will be issued for the new permit only if all of the 
permits being combined have sablefish endorsements. If two or more 
permits with sablefish endorsements are combined, the new permit will 
receive the same tier assignment as the tier with the largest

[[Page 29280]]

cumulative landings limit of the permits being combined.
    (c) Changes in permit ownership and permit holder--(1) General. The 
permit owner may convey the limited entry permit to a different person. 
The new permit owner will not be authorized to use the permit until the 
change in permit ownership has been registered with and approved by the 
SFD. If the listing of the permit holder changes from one person to a 
different person, but the vessel registration remains the same on a 
permit, the permit owner shall submit to SFD an application requesting 
a change in a permit holder (i.e., lessee of permit). Such applications 
shall be made to SFD in advance of the date the permit holder wishes to 
participate in the limited entry fishery. Permit holders cannot expect 
to have their applications approved immediately upon submission.
    (2) Effective date. The change in ownership of the permit or change 
in the permit holder will be effective on the day the change is 
approved by SFD, unless there is a concurrent change in the vessel 
registered to the permit. Requirements for changing the vessel 
registered to the permit are described at paragraph (d) of this 
section.
    (d) Changes in vessel registration-- transfer of limited entry 
permits and gear endorsements--(1) General. A permit may not be used 
with any vessel other than the vessel registered to that permit. For 
purposes of this section, a permit transfer occurs when, through SFD, a 
permit owner registers a limited entry permit for use with a new 
vessel. Permit transfer applications must be submitted to SFD with the 
appropriate documentation described at paragraph (e) of this section. 
Upon receipt of a complete application, and following review and 
approval of the application, the SFD will reissue the permit registered 
to the new vessel.
    (2) Application. A complete application must be submitted to SFD in 
order for SFD to review and approve a change in vessel registration. At 
a minimum, permit owners seeking to transfer a limited entry permit 
shall submit to SFD a signed application form and his/her current 
limited entry permit before the first day of the cumulative limit 
period in which they wish to participate. If a permit owner provides a 
signed application and current limited entry permit after the first day 
of a cumulative limit period, the permit will not be effective until 
the succeeding cumulative limit period. SFD will not approve a change 
in vessel registration (transfer) until it receives a complete 
application, the existing permit, a current copy of the USCG 1270, and 
other required documentation.
    (3) Effective date. Changes in vessel registration on permits will 
take effect no sooner than the first day of the next major limited 
entry cumulative limit period following the date that SFD receives the 
signed permit transfer form and the original limited entry permit. 
Transfers of permits designated as participating in the ``B'' platoon 
will become effective no sooner than the first day of the next ``B'' 
platoon major limited entry cumulative limit period following the date 
that SFD receives the signed permit transfer form and the original 
limited entry permit. No transfer is effective until the limited entry 
permit has been reissued as registered with the new vessel and the 
permit is in the possession of the new permit holder.
    (e) Restriction on frequency of transfers. Limited entry permits 
may not be registered for use with a different vessel (transfer) more 
than once per calendar year, except in cases of death of a permit 
holder or if the permitted vessel is totally lost as defined in 
Sec. 660.302. The exception for death of a permit holder applies for a 
permit held by a partnership or a corporation if the person or persons 
holding at least 50 percent of the ownership interest in the entity 
dies.
    (1) A permit owner may designate the vessel registration for a 
permit as ``unidentified'', meaning that no vessel has been identified 
as registered for use with that permit. No vessel is authorized to use 
a permit with the vessel registration designated as ``unidentified''.
    (2) When a permit owner requests that the permit's vessel 
registration be designated as ``unidentified'', the transaction is not 
considered a ``transfer'' for purposes of this section. Any subsequent 
request by a permit owner to change from the ``unidentified'' status of 
the permit in order to register the permit with a specific vessel will 
be considered a change in vessel registration (transfer) and subject to 
the restriction on frequency and timing of changes in vessel 
registration (transfer).
    (f) Application and supplemental documentation. Permit holders may 
request a transfer (change in vessel registration) and/or change in 
permit ownership or permit holder by submitting a complete application 
form. In addition, a permit owner applying for renewal, replacement, 
transfer, or change of ownership or change of permit holder of a 
limited entry permit has the burden to submit evidence to prove that 
qualification requirements are met. The owner of a permit endorsed for 
longline or trap (or pot) gear applying for a tier assignment under 
Sec. 660.334(d) has the burden to submit evidence to prove that certain 
qualification requirements are met. The following evidentiary standards 
apply:
    (1) For a request to change a vessel registration and/or change in 
permit ownership or permit holder, the permit owner must provide SFD 
with a current copy of the USCG Form 1270 for vessels of 5 net tons or 
greater, or a current copy of a state registration form for vessels 
under 5 net tons.
    (2) For a request to change the vessel registration to a permit, 
the permit holder must submit to SFD a current marine survey conducted 
by a certified marine surveyor in accordance with USCG regulations to 
authenticate the length overall of the vessel being newly registered 
with the permit. Marine surveys older than 3 years at the time of the 
request for change in vessel registration will not be considered 
``current'' marine surveys for purposes of this requirement.
    (3) For a request to change a permit's ownership where the current 
permit owner is a corporation, partnership or other business entity, 
the applicant must provide to SFD a corporate resolution that 
authorizes the conveyance of the permit to a new owner and which 
authorizes the individual applicant to request the conveyance on behalf 
of the corporation, partnership, other business entity.
    (4) For a request to change a permit's ownership that is 
necessitated by the death of the permit owner(s), the individual(s) 
requesting conveyance of the permit to a new owner must provide SFD 
with a death certificate of the permit owner(s) and appropriate legal 
documentation that either: specifically transfers the permit to a 
designated individual(s); or, provides legal authority to the 
transferor to convey the permit ownership.
    (5) For a request to change a permit's ownership that is 
necessitated by divorce, the individual requesting the change in permit 
ownership must submit an executed divorce decree that awards the permit 
to a designated individual(s).
    (6) Such other relevant, credible documentation as the applicant 
may submit, or the SFD or Regional Administrator may request or 
acquire, may also be considered.
    (g) Application forms available. Application forms for the change 
in vessel registration (transfer) and change of permit ownership or 
permit holder of limited entry permits are available from

[[Page 29281]]

the SFD (see Table 1, Sec. 600.502 of this chapter for the address of 
the Regional Administrator). Contents of the application, and required 
supporting documentation, are specified in the application form.
    (h) Records maintenance. The SFD will maintain records of all 
limited entry permits that have been issued, renewed, transferred, 
registered, or replaced.


Sec. 660.336  [Removed and reserved]

    5. Section 660.336 is removed and reserved.

    6. Section 660.338 is revised to read as follows:


Sec. 660.338  Limited entry permits-- small fleet.

    (a) Small limited entry fisheries fleets that are controlled by a 
local government, were in existence as of July 11, 1991, and have 
negligible impacts on the groundfish resource, may be certified as 
consistent with the goals and objectives of the limited entry program 
and incorporated into the limited entry fishery. Permits issued under 
this subsection will be issued in accordance with the standards and 
procedures set out in the PCGFMP and will carry the rights explained 
therein.
    (b) A permit issued under this section may be registered only to 
another vessel that will continue to operate in the same certified 
small fleet, provided that the total number of vessels in the fleet 
does not increase. A vessel may not use a small fleet limited entry 
permit for participation in the limited entry fishery outside of 
authorized activities of the small fleet for which that permit and 
vessel have been designated.

    7. Section 660.340 is revised to read as follows:


Sec. 660.340  Limited entry permit appeals.

    (a) Decisions on appeals of initial decisions regarding issuance, 
renewal, change in vessel registration, change in permit owner or 
permit holder, and endorsement upgrade, will be made by the Regional 
Administrator.
    (b) Appeals decisions shall be in writing and shall state the 
reasons therefor.
    (c) Within 30 days of an initial decision by the SFD denying 
issuance, renewal, change in vessel registration, change in permit 
owner or permit holder, or endorsement upgrade, on the terms requested 
by the applicant, an appeal may be filed with the Regional 
Administrator.
    (d) The appeal must be in writing, and must allege facts or 
circumstances to show why the criteria in this subpart have been met, 
or why an exception should be granted.
    (e) At the appellant's discretion, the appeal may be accompanied by 
a request that the Regional Administrator seek a recommendation from 
the Council as to whether the appeal should be granted. Such a request 
must contain the appellant's acknowledgment that the confidentiality 
provisions of the Magnuson-Stevens Act at 16 U.S.C. 1853(d) and part 
600 of this chapter are waived with respect to any information supplied 
by the Regional Administrator to the Council and its advisory bodies 
for purposes of receiving the Council's recommendation on the appeal. 
In responding to a request for a recommendation on appeal, the Council 
will apply the provisions of the PCGFMP in making its recommendation as 
to whether the appeal should be granted.
    (f) Absent good cause for further delay, the Regional Administrator 
will issue a written decision on the appeal within 45 days of receipt 
of the appeal, or, if a recommendation from the Council is requested, 
within 45 days of receiving the Council's recommendation. The Regional 
Administrator's decision is the final administrative decision of the 
Department as of the date of the decision.
[FR Doc. 01-13525 Filed 5-29-01; 8:45 am]
BILLING CODE 3510-22-S