[Federal Register Volume 67, Number 57 (Monday, March 25, 2002)]
[Proposed Rules]
[Pages 13587-13596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7128]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 622

[Docket No. 020313055-2055-01; I.D. 021902F]
RIN 0648-AO62


Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic; 
Coastal Migratory Pelagic Resources of the Gulf of Mexico and South 
Atlantic; Reef Fish Fishery of the Gulf of Mexico; Charter Vessel and 
Headboat Permit Moratorium

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 issues this proposed rule to implement Amendment 14 to 
the Fishery Management Plan for the Coastal Migratory Pelagic Resources 
of the Gulf of Mexico and South Atlantic (Amendment 14) and Amendment 
20 to the Fishery Management Plan for the Reef Fish Resources of the 
Gulf of Mexico (Amendment 20). This proposed rule would establish a 3-
year moratorium on the issuance of charter vessel or headboat (for-
hire) permits for the reef fish fishery and coastal migratory pelagics 
fishery in the exclusive economic zone (EEZ) of the Gulf of Mexico. In 
addition, as a consequence of the proposed moratorium, the current 
charter vessel/headboat permit system for coastal migratory pelagic 
fish would be restructured to provide separate permits for the Gulf of 
Mexico and South Atlantic. The intended effect of this rule is to cap 
the number of for-hire vessels operating in these respective fisheries 
at the current level while the Gulf of Mexico Fishery Management 
Council (Council) evaluates the need for further management actions 
that may be needed to rebuild these fishery resources, and to promote 
attainment of optimum yield.

DATES: Comments must be received no later than 5 p.m., eastern daylight 
savings time, on May 9, 2002.

ADDRESSES: Written comments on the proposed rule must be sent to Phil 
Steele, Southeast Regional Office, NMFS, 9721 Executive Center Drive 
N., St. Petersburg, FL 33702. Comments also may be sent via fax to 727-
570-5583. Comments will not be accepted if submitted via e-mail or 
Internet. Copies of the initial regulatory flexibility analysis (IRFA) 
prepared by NMFS for this proposed rule are available from the same 
address.
    Comments on the collection-of-information requirements contained in 
this rule should be sent to Robert Sadler, Southeast Regional Office, 
NMFS, 9721 Executive Center Drive N., St. Petersburg, FL 33702, and to 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget (OMB), Washington, DC 20503 (Attention: NOAA Desk Officer).
    Copies of Amendments 14 and 20, which include an environmental 
assessment, and a regulatory impact review (RIR), and copies of two 
related minority reports opposing implementation of the proposed 
moratorium may be obtained from the Gulf of Mexico Fishery Management 
Council, Suite 1000, 3018 U.S. Highway 301 North, Tampa, FL 33619; 
telephone: 813-228-2815; fax: 813-225-7015; e-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Phil Steele, telephone: 727-570-5305, 
fax: 727-570-5583, e-mail: [email protected].

SUPPLEMENTARY INFORMATION: The fishery for reef fish is managed under 
the Fishery Management Plan for the Reef Fish Resources of the Gulf of 
Mexico (Reef Fish FMP) that was prepared by the Council. The fisheries 
for coastal migratory pelagic resources are managed under the Fishery 
Management Plan for the Coastal

[[Page 13588]]

Migratory Pelagic Resources of the Gulf of Mexico and South Atlantic 
(Coastal Migratory Pelagics FMP) that was prepared jointly by the 
Council and the South Atlantic Fishery Management Council. These FMPs 
were approved by NMFS and implemented under the authority of the 
Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-
Stevens Act) by regulations at 50 CFR part 622.

Background

    The Council, in cooperation with the Gulf charter vessel/headboat 
industry, developed Amendments 14 and 20 to address issues of increased 
fishing mortality and fishing effort in the for-hire sector of the 
recreational fishery. There are an estimated 3,220 recreational for-
hire vessels in the Gulf of Mexico. Of these for-hire vessels, there 
are an estimated 1,275 charter vessels and 92 headboats; the remainder 
are probably smaller guide boats that usually fish inshore. The number 
of charter boats operating in the Gulf of Mexico has increased from 516 
in 1981 to 1,275 in 1998 (147 percent), while the number of headboats 
has remained relatively stable during the same period. Further, the 
number of individual angler charter vessel trips increased by 
approximately 51 percent (through 1998) over the average number of 
trips from the previous decade.
    During this same period, there has been an increase in the number 
of fish stocks identified as overfished or approaching an overfished 
state. In the January 2001 report to Congress on the Status of U.S. 
Fisheries, red snapper and red grouper were classified as being 
overfished and undergoing overfishing. Gag grouper was classified as 
undergoing overfishing and approaching an overfished state. King 
mackerel was classified as overfished and vermillion snapper was 
classified as undergoing overfishing. Further, the Council was 
notified, by a letter from NMFS in January, 2001, that greater 
amberjack was overfished.
    While all sectors have contributed to the overfished status of 
these important fisheries, higher catch rates by the for-hire sector in 
recent years have substantially increased the proportion of landings 
attributed to that sector. The percent of recreational red grouper 
landed by number by charter vessel and headboats increased from 14 
percent (1988-1989) to 32 percent (1996-1997); the percent of 
recreational red snapper landed by number increased from 34 percent 
(1981-1982) to 62 percent (1988-1989) to 71 percent (1996-1997). This 
increase in catch rate by the recreational for-hire sector has 
contributed to the progressively earlier closures of the red snapper 
recreational fishery each year. This fishery was closed on November 27 
in 1997, September 30 in 1998, and August 29 in 1999. This 
progressively longer closure period is adversely impacting the charter 
vessel headboat sector that is dependent on this stock. Additionally, 
for king mackerel, the percent of total recreational landings by number 
landed by charter vessel and headboats increased from 17 percent in 
1983, to 32 percent in 1988, and to 62 percent in 1997, almost doubling 
between each period. The landings for gag grouper increased from 15 
percent during 1981-1982 to 33 percent during 1995-1996, i.e., 
essentially doubling between the first and last period. Further, the 
recreational for-hire vessels historically have landed most of the 
recreational landings of vermillion snapper (90 percent) and greater 
amberjack (63 percent) during the period 1995/1996.
    In conjunction with existing bag limits and size limits, the 
proposed rule would further moderate short-term future increases in 
fishing effort in the for-hire sector of the recreational fishery by 
limiting the number of vessels in the fishery. The proposed moratorium 
is a form of limited access management that is intended to temporarily 
stabilize this effort. It would allow the Council the time necessary to 
develop a more comprehensive approach to help restore overfished stocks 
possibly including further effort limitation, and would promote 
attainment of optimum yield during the interim.

Provisions of the Proposed Charter Vessel/Headboat Moratorium in 
the Gulf of Mexico EEZ

    This proposed rule would establish a 3-year moratorium on the 
issuance of charter vessel/headboat permits for Gulf reef fish or Gulf 
coastal migratory pelagic fish. Beginning 150 days after the effective 
date of the final rule that would implement this proposed moratorium, 
the only valid charter vessel/headboat permits for those two fisheries 
would be those permits issued under the provisions of the moratorium. 
In addition, any person who has a valid charter vessel/headboat permit 
for coastal migratory pelagic fish (valid in the Gulf or South 
Atlantic) should note that this proposed rule would result in a 
restructuring of that permit--voiding the existing permit, effective 
150 days after the effective date of the final rule implementing this 
moratorium, and creating two new separate permits: one for Gulf coastal 
migratory pelagic fish (subject to the moratorium provisions); and one 
for South Atlantic coastal migratory pelagic fish (not subject to the 
moratorium provisions). See Change Proposed by NMFS--Requirement for a 
New Permit for South Atlantic Coastal Migratory Pelagic Fish for 
additional details.

Eligibility Requirements for the Gulf Charter Vessel/Headboat Permits

    Under the proposed moratorium, initial eligibility for a charter 
vessel/headboat permit for Gulf coastal migratory pelagic fish or Gulf 
reef fish would be limited to the following--
    (1) An owner of a vessel that had a valid charter vessel/headboat 
permit for Gulf reef fish or coastal migratory pelagic fish, or whose 
application for such permit had been received by NMFS, at some time 
during the period March 29, 2000, through March 29, 2001, and who has 
such a valid permit on the effective date of the final rule that would 
implement this proposed moratorium.
    (2) Any person who can provide NMFS with documentation verifying 
that, prior to March 29, 2001, he/she had a charter vessel or headboat 
under construction and that the associated expenditures were at least 
$5,000 as of that date. If the vessel owner was constructing the 
vessel, the vessel owner must provide NMFS with receipts for the 
required expenditures. If the vessel was being constructed by someone 
other than the owner, the owner must provide NMFS with a copy of the 
contract and/or receipts for the required expenditures.
    (3) An historical captain, defined for the purposes of this 
proposed rule as a person who provides NMFS with documentation 
verifying that--
    (A) Prior to March 29, 2001, he/she was issued either a United 
States coast Guard (USCG) Operator of Uninspected Passenger Vessel 
license (commonly referred to as a 6-pack license) or a USCG Masters 
license and operated, as a captain, a federally permitted charter 
vessel or headboat in the Gulf reef fish and/or coastal migratory 
pelagic fisheries that was not permitted in his/her name or the name of 
a corporation in which he/she was a shareholder; and
    (B) At least 25 percent of his/her earned income was derived from 
charter vessel or headboat fishing in one of the years 1997, 1998, 
1999, or 2000.
    NMFS' permit records would be the sole basis for determining 
eligibility based on permit or application history (i.e., eligibility 
criterion 1). No more than one owner of a currently permitted vessel 
would be credited with meeting the permit history criterion based on a 
vessel's permit history. An owner would not be issued initial charter 
vessel/

[[Page 13589]]

headboat permits for Gulf coastal migratory pelagic fish or Gulf reef 
fish under the moratorium in excess of the number of federally 
permitted charter vessels and/or headboats that he/she owned 
simultaneously at some time during the period March 29, 2000, through 
March 29, 2001.

Application Requirements and Procedures

    An applicant who desires a charter vessel/headboat permit for Gulf 
coastal migratory pelagic fish or Gulf reef fish would be required to 
submit an application for such permit to the Regional Administrator, 
Southeast Region, NMFS (RA) postmarked or hand-delivered not later than 
90 days after the effective date of the final rule implementing this 
proposed moratorium. Failure to apply in a timely manner would preclude 
permit issuance even when the applicant meets the eligibility criteria 
for such permit. Application forms would be available from the RA. The 
information requested on the application form varies according to the 
eligibility criterion that the application is based upon as indicated 
in proposed Sec. 622.4(r)(5).
    On or about the effective date of any final rule implementing this 
moratorium, the RA would automatically mail an application to each 
owner of a vessel who, based on NMFS' permit records, is eligible based 
on the permit history or permit application criterion. The RA would 
also mail each such owner a notice that his/her existing charter 
vessel/headboat permit(s) for coastal migratory pelagic fish and/or 
Gulf reef fish would expire 150 days after any effective date of the 
final rule implementing this moratorium and that the new permit(s) 
required under such a moratorium would be required as of that date. A 
vessel owner who believes he/she qualifies for a charter vessel/
headboat permit for Gulf coastal migratory pelagic fish and/or Gulf 
reef fish based on permit or application history, but who does not 
receive an application from the RA, would have to request an 
application from the RA and provide documentation of eligibility.
    Any person applying based on the eligibility criteria related to 
vessel construction or historical captain status would have to request 
a permit application from the RA and provide the required documentation 
of vessel construction and associated costs, as indicated in proposed 
Sec. 622.4(r)(2)(ii), or documentation of historical captain status, as 
indicated in proposed Sec. 622.4(r)(2)(iii), as applicable. Information 
to document historical captain status would include income tax records 
pertinent to verifying earned income; a copy of the applicable USCG 
license and/or Certificate of Inspection; and a notarized affidavit 
signed by a vessel owner certifying the period the applicant served as 
captain of a charter vessel or headboat permitted for Gulf reef fish 
and/or coastal migratory pelagic fish, whether the charter vessel or 
headboat was permitted for Gulf reef fish or coastal migratory pelagic 
fish or both, and whether the charter vessel or headboat was 
uninspected (i.e., 6-pack) or had a USCG Certificate of Inspection.

Issuance of Initial Permits/Letter of Eligibility

    If a complete application is submitted in a timely manner and the 
applicable eligibility requirements specified in proposed 
Sec. 622.4(r)(2) are met, the RA would issue a charter vessel/headboat 
permit for Gulf coastal migratory pelagic fish and/or Gulf reef fish or 
a letter of eligibility for such fisheries, as appropriate, and mail it 
to the applicant not later than 140 days after the date the final rule 
is effective (i.e., at least 10 days before the permit(s) is required).
    A person whose eligibility is based on historical captain status 
would be issued a letter of eligibility by the RA. The letter of 
eligibility could be redeemed through the RA for a charter vessel/
headboat permit for Gulf coastal migratory pelagic fish and/or Gulf 
reef fish, with a historical captain endorsement. The letter of 
eligibility would be valid for the duration of the moratorium; would be 
valid only for a vessel of the same authorized passenger capacity as 
the vessel used to document earned income requirement in proposed 
Sec. 622.4(r)(2)(iii)(B); and would be valid only for the fisheries 
certified on the application under proposed Sec. 622.4(r)(2)(iii)(A) 
(i.e., only those fisheries in which the required participation was 
documented). A charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish or Gulf reef fish with a historical captain 
endorsement would be valid only on a vessel that the historical captain 
operates as a captain.

Appeals Process Regarding Initial Eligibility

    An applicant would be allowed to request an appeal of the RA's 
determination regarding initial permit eligibility by submitting a 
written request for reconsideration to the RA with copies of the 
appropriate records for establishing eligibility. Such request would 
have to be postmarked or hand-delivered within 30 days after the date 
of the RA's notification of ineligibility and could include a request 
for an oral hearing. If an oral hearing is granted, the RA would notify 
the applicant of the place and date of the hearing and would provide 
the applicant a maximum of 30 days prior to the hearing to provide 
information in support of the appeal.
    The RA could independently review the appeal or could appoint one 
or more appellate officers to review the appeal and make independent 
recommendations to the RA. The RA and appellate officer(s) could only 
deliberate whether the eligibility criteria were applied correctly. 
Hardship or other factors would not be considered in determining 
eligibility. The RA would make the final determination regarding 
granting or denying the appeal. The RA would notify the applicant of 
the decision regarding the appeal within 30 days after receipt of the 
request for appeal or within 30 days after the conclusion of the oral 
hearing, if applicable.

Transferability of Permits

    A charter vessel/headboat permit for Gulf coastal migratory pelagic 
fish or Gulf reef fish that does not have a historical captain 
endorsement would be transferable, with or without sale of the 
permitted vessel, except that no transfer would be allowed to a vessel 
with a greater authorized passenger capacity than that of the vessel 
from which the permit was transferred.
    A charter vessel/headboat permit for Gulf coastal migratory pelagic 
fish or Gulf reef fish that has a historical captain endorsement could 
only be transferred to a vessel operated by the historical captain, 
could not be transferred to a vessel with a higher authorized passenger 
capacity than the vessel from which the permit was transferred, and 
would not otherwise be transferable.
    To request that the RA transfer a charter vessel/headboat permit 
for Gulf coastal migratory pelagic fish or Gulf reef fish, the owner of 
a vessel that is to receive the transferred permit would have to 
complete the transfer information on the reverse of the permit and 
return the permit and a completed application for transfer to the RA.

Permit Renewal

    Permit renewal would be contingent upon the permitted vessel and/or 
captain, as appropriate, being included in an active survey frame for, 
and, if selected to report, providing the information required in NMFS' 
Marine Recreational Fishing Vessel Directory Telephone Survey (charter 
vessels only), NMFS' Southeast Headboat Survey (logbooks), Texas Parks 
and Wildlife

[[Page 13590]]

Marine Recreational Fishing Survey, or a data collection system that 
replaces one or more of those surveys.
    A permit that is not renewed or that is revoked by NMFS would not 
be reissued during the moratorium. A permit would be considered to be 
not renewed when an application for renewal, as required, is not 
received by the RA within 1 year of the expiration date of the permit.

Vessel Decal Requirement

    Upon issuance, renewal, or transfer of a permit under this proposed 
moratorium, the RA would issue the owner or eligible historical captain 
of the permitted vessel a vessel decal for the applicable permitted 
fishery or fisheries. The vessel decal would have to be displayed on 
the port side of the deckhouse or hull and would have to be maintained 
so that it is clearly visible.

Change Proposed by NMFS--Requirement for a New Permit for South 
Atlantic Coastal Migratory Pelagic Fish

    Formerly, the charter vessel/headboat permit for coastal migratory 
pelagic fish applied in the EEZ of both the Gulf of Mexico and South 
Atlantic. The establishment of a separate charter vessel/headboat 
permit for Gulf coastal migratory pelagic fish under this proposed 
moratorium would necessitate that a separate charter vessel/headboat 
permit for South Atlantic coastal migratory pelagic fish also be 
established and that the former charter vessel/headboat permit for 
coastal migratory pelagic fish (applicable in both the Gulf and South 
Atlantic) be voided. All of these actions would be effective 150 days 
after the effective date of the final rule implementing the proposed 
moratorium. The new separate charter vessel/headboat permit for South 
Atlantic coastal migratory pelagic fish would not be subject to the 
provisions of the moratorium.
    Approximately 5 months prior to the date that the new permit would 
be required, the RA, based on NMFS' permit records, would mail an 
application for an initial charter vessel/headboat permit for South 
Atlantic coastal migratory pelagic fish to each owner of a vessel with 
a valid charter vessel/headboat permit for coastal migratory pelagic 
fish. Any such owner who desires an initial charter vessel/headboat 
permit for South Atlantic coastal migratory pelagic fish would have to 
submit the completed application to the RA. To avoid any lapse in 
authorization to fish for coastal migratory species in the South 
Atlantic EEZ (i.e., valid permit status), such owners would have to 
submit the completed application to the RA postmarked or hand-delivered 
not later than 90 days after the effective date of the final rule 
implementing the moratorium. For completed applications received by 
that deadline, the RA would issue the permit no later than 140 days 
after the effective date of the final rule implementing this moratorium 
(i.e., at least 10 days before the permit is required). Applications 
will be accepted at any time, but if received after the deadline (90 
days after effective date), the permit may not be issued prior to the 
date that the permit is first required. These special procedures would 
apply only to the application and issuance of the initial permit; 
subsequent permitting activities would be conducted in accordance with 
the standard permitting procedures as specified in 50 CFR 622.4(b) 
through (l).
    An owner or operator of a vessel who desires a charter vessel/
headboat permit for South Atlantic coastal migratory pelagic fish and 
who does not have a valid charter vessel/headboat permit for coastal 
migratory pelagic fish would be required to obtain a permit application 
from the RA. For additional permitting procedures, see 50 CFR 622.4(b) 
through (l).

Minority Reports

    Two nearly identical minority reports objecting to the 
implementation of the proposed charter vessel/headboat permit 
moratorium were submitted--each signed by two Council members, a total 
of three different Council members. The primary objections expressed in 
these minority reports were that the moratorium is not necessary, would 
not accomplish its stated goal, would reduce competition in the for-
hire industry, would create a windfall profit for a select group of 
people and deny others the right to pursue an occupation of their own 
choice, would result in unnecessary social engineering, and would 
violate national standards 4 and 8 of the Magnuson-Stevens Act. Copies 
of the minority reports are available from the Council (see ADDRESSES).

Classification

    At this time, NMFS has not determined whether Amendments 14 and 20, 
that this proposed rule would implement, are consistent with the 
national standards of the Magnuson-Stevens Act and other applicable 
laws. NMFS, in making that determination, will take into account the 
data, views, and comments received during the comment period on 
Amendments 14 and 20.
    This proposed rule has been determined to be not significant for 
purposes of Executive Order 12866.
    NMFS prepared an IRFA that describes the economic impact this 
proposed rule, if adopted, would have on small entities. A description 
of the action, why it is being considered, and the legal basis for this 
action are contained at the beginning of this section in the preamble 
and in the SUMMARY section of the preamble. Paperwork and reporting 
requirements are described below in the PRA discussion. This proposed 
rule would not duplicate any other requirements. A summary of the 
analysis follows.
    The Magnuson-Stevens Act provides the statutory basis for the rule. 
The objective of the proposed rule is to cap the number of for-hire 
vessels permitted to fish for reef fish or coastal migratory pelagics 
in the EEZ of the Gulf of Mexico at the current level while the Council 
assesses the actions necessary to restore overfished reef fish and king 
mackerel stocks and determine whether a more comprehensive effort 
management system is appropriate for these fisheries. The proposed rule 
would: create a new for-hire vessel permit for the Gulf EEZ for vessels 
fishing for reef fish and/or coastal migratory pelagics; establish a 3-
year moratorium on the issuance of new for-hire vessel permits 
effective the date that the final rule implementing Amendments 14 and 
20 becomes effective; establish eligibility requirements for the 
permits that would accommodate owners of vessels that possessed or had 
applied for charter/headboat reef fish and/or coastal migratory pelagic 
permits on or before March 29, 2001 and who possess such permit(s) as 
of the effective date of the final rule implementing this moratorium, 
new for-hire vessels contracted for or under construction prior to 
March 29, 2001, and historical captains; allow full transference of 
permits during the moratorium with or without the vessel but without 
any increase in the passenger capacity of the recipient vessel (permits 
with a historical captain endorsement may only be transferred to a 
vessel operated by the historical captain); not allow permit renewal 
during the moratorium for permits not renewed within one year of 
expiration; allow an appeal process to resolve issues related to 
initial eligibility; and, establish reporting and permit renewal 
conditions.
    The creation of a for-hire permit and implementation of a 3-year 
moratorium for the issuance of new permits would provide some stability 
for the for-hire sector in terms of number of

[[Page 13591]]

participating vessels while the need for a more comprehensive 
controlled access or effort management system is evaluated. The 
specific number of vessels accommodated by the rule is unknown since it 
is not known how many individuals will qualify and seek permits under 
the boat construction or historical captain provisions. The moratorium 
will also not produce a hard cap on effort in the form of angler trips 
since current vessels may be operating under less than full passenger 
capacity and will retain the flexibility to increase the frequency of 
partial-day trips. Nevertheless, the rule will limit expansion to the 
capacity of current participants. This will allow identification and 
enumeration of vessels in these fisheries to support essential data 
collection and establish a more stable environment for assessing the 
status of the fishery in support of subsequent regulation.
    The proposed rule would effectively allow status quo operation by 
current participants in the fishery who had such permits (or applied 
for such) at some time during March 29, 2000, to March 29, 2001, and 
who also have a valid permit on the date the final rule becomes 
effective. The eligibility provisions for new vessel construction and 
historical captains will further protect the opportunities of 
individuals who have demonstrated a dependence on the fishery through 
capital investment or historical participation. The only impediment to 
the status quo business practices of such initial qualifiers is the 
limitation on vessel passenger capacity upgrades under the current 
permit. Such upgrade would be possible, however, through the purchase 
of the appropriate permit from another vessel. The liberal provisions 
for permit transfer support business upgrade, allow the entrance of new 
operators or buy-outs by more efficient operators, and create a 
marketable asset that may enhance the value of the vessel and client 
lists should a participant decide to sell his/her business. The 
eligibility and transfer provisions are, thus, consistent with the 
intent to allow status quo participation while it is determined whether 
current effort levels are appropriate, rather than legislate 
reductions. The appeals process will afford valid participants the 
opportunity to address record discrepancies that adversely affect their 
eligibility. Finally, the renewal provisions support the fishery 
management process by aiding in the collection of essential harvest and 
participation information.
    Business operations in the for-hire sector consist primarily, if 
not exclusively, of small business entities. For-hire vessel operations 
are considered small business entities if they generate receipts of 
less than $6.0 million per year. The average gross revenues for charter 
boats operating in 1997 was $83,000 for vessels in Alabama through 
Texas (based on average numbers of trips per vessel and average fee per 
trip) and $68,000 for vessels in Florida, while the average gross 
revenues for head boats/party boats was $328,000 in Alabama through 
Texas and $324,000 in Florida. Current revenues may exceed those of 
1997, but the revenue performance of the fishery clearly qualifies the 
participants as small business entities.
    All for-hire vessels that fish for reef fish or coastal migratory 
pelagics in the Gulf of Mexico EEZ will be affected by the proposed 
rule. However, all of these vessels are currently required to possess 
the appropriate for-hire permits for the fisheries in which they 
participate. Hence, the proposed rule only creates one additional 
permit, by requiring vessels expecting to fish for coastal migratory 
pelagics in both the Gulf of Mexico and South Atlantic to obtain two 
permits, one for each subregion, instead of the current single permit 
which allows fishing in either subregion. This will require an 
additional $20 application fee for the second permit. As of the control 
date of March 29, 2001, there were 2,226 permitted for-hire vessels, of 
which 1,737 had both reef fish and coastal migratory pelagic charter 
permits, 123 had only the reef fish charter permit, and 366 had only 
the coastal migratory pelagic charter permit. These totals are 
substantially greater than those at the previous control date of 
November 18, 1998, when there were only 940 permitted for-hire vessels, 
of which 723 had both permits, 58 had only the reef fish permit and 159 
had only the coastal migratory pelagic permit. While total permit 
numbers more than doubled during this time span, a potentially 
substantial portion of the increase is likely attributable to vessels 
that were previously operating in the fishery without the proper 
permits, since a frequent comment at public hearings was that operators 
were unaware of the current permit requirements. Thus, not all of the 
increase is believed to be due to either new participation or 
speculative purchase. It is not currently known how many vessels 
obtained their first for-hire permit after the cut-off date and would, 
therefore, not be eligible for the initial receipt of the permit. Nor 
is it known how many vessels might be expected to enter the fishery 
during the proposed moratorium period in the absence of a moratorium. 
The large increase in permits suggests that a substantial number of 
vessels interested in participating in the fishery have already 
established qualification, and the liberal qualification and transfer 
provisions of the rule should allow further entry by interested 
individuals, albeit at a larger cost due to the need to purchase a 
permit from a current operation.
    Six alternatives to the proposed moratorium were considered. These 
were: a 5-year moratorium instead of the proposed 3-year moratorium; 
status quo; a 50-percent income requirement for renewal in lieu of a 
moratorium; for-hire species quotas; a 3 or-5 year moratorium in 
combination with species quotas; and a 3-year moratorium with mandatory 
expiration should the red snapper restrictions become more severe. 
Since the status quo alternative would not accomplish the Council's 
goals, among the remaining alternatives, including the proposed rule, 
the proposed rule was determined to have the least impact on small 
entities. The 5-year alternative would provide a more stable planning 
horizon for industry participants, but extend the period during which 
capacity expansion would be limited and restrictions on new entry would 
be imposed. The 50-percent income requirement would result in 
contraction of existing participants beyond the intent of the Council, 
which is to stabilize rather than contract the fishery while a more 
comprehensive evaluation is conducted and management program is 
designed. Species quotas would subject the fishery to disruptive 
closures. Linkage to the red snapper management environment was 
determined to be indefensible and, therefore, would not allow 
implementation of the proposed rule and would forego the perceived 
benefits of stabilization. In summary, the proposed rule would best 
accomplish the Council's intent while minimizing impacts.
    Seven alternatives to the proposed form of the permit (i.e., a new 
for-hire permit with species endorsements) were considered. These were: 
limiting the new permit to the coastal migratory pelagic fishery; 
status quo; a new for-hire permit with species endorsements that 
encompass transferable and non-transferable endorsements; income-based 
renewal requirements; an option to allow commercial participants in the 
coastal migratory pelagic fishery to qualify for the for-hire permit; a 
fully transferable new permit with endorsements (i.e., no separate 
classes of transferability); and a special

[[Page 13592]]

guideboat permit (with no moratorium) for vessels carrying fewer than 4 
anglers with species endorsements. Maintaining the status quo would not 
support the Council's goals. Income requirements were rejected since 
they would result in contraction of the fishery rather than stabilize 
participation. The allowance for commercial operators to qualify would 
allow expansion of participation, which is, again, contrary to the 
Council's intent. Limiting the permit to the coastal migratory pelagic 
fishery would not be sufficiently inclusive to accomplish the Council's 
goals. The guideboat permit would allow unlimited expansion of this 
sector and, although these vessels may infrequently fish in the EEZ, 
would run counter to the Council's intent to stabilize all for-hire 
participation in the EEZ and pressure on respective stocks. The 
remaining alternatives reflect variations on the types of endorsements 
required (species covered) or class of endorsements (transferability 
conditions). The variations on endorsement types primarily affects 
paperwork requirements and these effects are insignificant. The 
transferability effects will be discussed below. In summary, the 
proposed rule best accomplishes the Council's intent while minimizing 
impacts.
    Ten alternatives to the initial eligibility requirements were 
considered. These were: allowing all persons who held a for-hire permit 
on the date of implementation of the amendment; allowing all persons 
who held a for-hire permit on either September 16, 1999 or November 11, 
1999; using a control date of November 18, 1998 and allowing for 
continuous participation under permit, vessel replacement by current 
permitted participant and issuance of new permit, purchase of permitted 
vessel, or purchase of a new vessel and issuance of a new permit; 
establishment and eligibility requirements for a Class 1 (fully 
transferable) species endorsement; establishment and eligibility 
requirements for a Class 2 (non-transferable) species endorsement; 
historical captain permit/endorsement provisions (2 alternatives); 
boat-under-construction provisions (2 alternatives); and allowing all 
persons who held a for-hire permit on or before January 1, 2002. Since 
the intent of the Council is to accommodate actual participation 
existent at the time of amendment development and the perception was 
strong that many active participants did not possess the required 
permits, control dates more restrictive than the proposed control date 
would increase the negative impacts on the fishery through the 
exclusion of active participants, contrary to the intent of the 
Council. More liberal control dates, however, while reducing the 
potential universe of excluded vessels, would also be contrary to the 
Council's intent of stabilizing participation at the level existent at 
the time of amendment development. Restrictions on transferability 
could result in contraction of the fleet, contrary to the intent of 
stabilization, and would increase the negative impacts on the fishery. 
The alternative historical captain provisions would have increased the 
burden of eligibility and increased the negative impacts. The 
alternative provisions for boats under construction are more 
restrictive than those of the proposed rule and would have increased 
the negative impacts on the fishery. In summary, the proposed rule 
accomplishes the Council's intent while minimizing impacts.
    Five alternatives to the permit/endorsement transferability 
allowance were considered. These were: limiting the transfer to vessels 
owned by the same permit holder; transfer of permits/endorsements with 
or without transfer of the vessel; prohibition of transfer for the 
first year of the moratorium; prohibition of transfer throughout the 
moratorium; and, transfer provisions based on endorsement class. 
Allowing transfer between vessels held by the same permittee would 
reduce the costs and profitability impacts associated with capacity 
upgrade, but would run counter to the intent of the Council to 
stabilize the fishery at the current level of effort, in this case, 
angler platform opportunities. If operations were allowed to freely 
upgrade passenger capacity, while the number of vessel/small business 
participants would remain stable, the effective angler effort, which 
ultimately determines fish harvest pressure, would be allowed to 
increase unimpeded. This is counter to the Council's intent. All other 
alternatives would increase the negative impacts on the fishery 
relative to the proposed rule. In summary, one alternative is counter 
to the Council's intent, while all other alternatives would increase 
the negative impacts on the fishery. Thus, the proposed rule 
accomplishes the Council's intent while minimizing impacts.
    Five alternatives to the passenger restrictions on permit transfers 
were considered. These were: no restriction; no transfers between 
different classes (based on passenger capacity) of USCG certified; 
allowing passenger capacity upgrade if USCG certification is received; 
transfer only between vessels of equal or lower passenger capacity 
based on USCG certification; and establishment of two classes - 
uninspected/uncertified and certified with transfers limited to within 
class. Since stability of the fishery is the stated intent of the 
Council, any alternative that allows passenger capacity to increase 
would, while mitigating the adverse impacts of upgrade limitations, be 
counter to the Council's intent. The proposed rule simplifies the 
passenger-related transfer restrictions while accomplishing the 
Council's intent and minimizing impacts.
    Two alternatives to the re-issue of non-renewed or revoked permits 
were considered. These were: re-issue of 50 percent of these permits to 
either a list of interested persons or to persons that were either 
excluded from the initial issuance of permits or can document prior 
experience in the for-hire fishery. Not re-issuing these permits would 
increase the negative impacts on the fishery associated with vessels 
excluded from participation. The proposed alternative will simplify the 
management of the program, but the primary Council justification for 
its selection is that any reduction in fishery effort will help address 
problems related to too much competition in the fishery. Increased 
profitability may accrue to remaining participants. Whether these 
increased profits will exceed the foregone profits by excluded entities 
cannot be determined.
    Six alternatives to the appeals process were considered. These 
were: no appeal; establish an appeals board that makes recommendations 
to the Regional Administrator (RA) on permit eligibility; an appeals 
process limited to owners and operators of vessels prior to the control 
date or persons who contracted for the construction of a vessel prior 
to the control date November 28, 1998; an appeals process that 
accommodates both hardships and data and/or record disputes between 
vessel owners and NMFS; no hardship appeals; and no appeals process if 
the control date selected is January 1, 2002. Not allowing an appeals 
process will increased the negative impacts on persons excluded from 
the initial issuance of permits.
    The proposed rule accommodates the impact mitigation benefits of 
the various alternatives with the exception of the disallowance of 
hardship appeals. Disallowance of hardship appeals will simplify the 
management of the program, while increasing the impacts on those 
excluded. The number of potential hardship appeals cannot be precisely 
estimated, but is not expected to be large. The proposed rule, 
therefore, while not fully mitigating the impacts

[[Page 13593]]

on excluded participants, will mitigate the impacts on those excluded 
due to permit record discrepancies and establish a more simplified 
management program.
    Two alternatives to the reporting and renewal requirements were 
considered. These were: require charter logbooks; and status quo. 
Logbooks are already mandatory for the headboat fishery. Requiring 
logbooks for the charter sector would increase the economic burden on 
the charter sector without mitigating the impacts of potential permit 
non-renewal. Allowing the status quo would allow all charter vessels to 
renew their permit without having to participate in any data collection 
programs and, thus, would mitigate any adverse effects that would 
accrue to any vessels not having their permit renewed. Such action 
would not, however, satisfy the Council's intent to support 
comprehensive systematic data collection for this fishery. Thus, the 
proposed rule will satisfy the Council's intent while minimizing 
impacts.
    This proposed rule contains five collection-of-information 
requirements subject to the Paperwork Reduction Act (PRA)--namely a 
requirement to submit a charter vessel/headboat permit application, 
submission of information on vessel construction, submission of 
information on historical captain eligibility, submission of appeals of 
NMFS' initial denial of a charter vessel/headboat permit, and mandatory 
responses to NMFS' (voluntary) Marine Recreational Fishing Vessel 
Directory Telephone Survey (charter vessels only). Requests to collect 
this information have been submitted to OMB for approval. The public 
reporting burdens for these collections of information are estimated to 
average 20 minutes, 2 hours, 2 hours, 5 hours, and 7 minutes per 
response, respectively, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collections of information. In 
addition, Sec. 622.5(b)(1) of this proposed rule revises slightly 
(i.e., revises the names of the applicable permits consistent with this 
proposed rule) the requirement for charter vessel/headboat submission 
of a fishing trip record if selected by the Science and Research 
Director. The requirement applicable to headboats has been approved by 
OMB under control number 0648-0016 with an estimated time per response 
of 12 minutes. NMFS does not currently have PRA approval to select any 
charter vessels for this reporting and would obtain OMB clearance prior 
to making any selection.
    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 
regarding this burden estimate or any other aspect of the collection of 
information requirement, including suggestions for reducing the burden, 
to NMFS and to OMB (see ADDRESSES).
    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 PRA unless that collection of information displays a currently 
valid OMB control number.

List of Subjects in 50 CFR Part 622

    Fisheries, Fishing, Puerto Rico, Reporting and recordkeeping 
requirements, Virgin Islands.

    Dated: March 19, 2002.
Rebecca Lent,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 622 is 
proposed to be amended as follows:

PART 622--FISHERIES OF THE CARIBBEAN, GULF, AND SOUTH ATLANTIC

    1. The authority citation for part 622 continues to read as 
follows:

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

    2. In Sec.  622.4, paragraphs (a)(1) and (g) are revised and 
paragraph (r) is added to read as follows:


Sec. 622.4  Permits and fees.

    (a) * * *
    (1) Charter vessel/headboat permits. (i) For a person aboard a 
vessel that is operating as a charter vessel or headboat to fish for or 
possess, in or from the EEZ, species in any of the following species 
groups, a valid charter vessel/headboat permit for that species group 
must have been issued to the vessel and must be on board--
    (A) Gulf coastal migratory pelagic fish.
    (B) South Atlantic coastal migratory pelagic fish.
    (C) Gulf reef fish.
    (D) South Atlantic snapper-grouper.
    (ii) See paragraph (r) of this section regarding a moratorium on 
Gulf charter vessel/headboat permits and the associated provisions.
    (iii) See paragraph (r)(12) of this section for an explanation of 
the requirement for the new charter vessel/headboat permit for South 
Atlantic coastal migratory pelagic fish and for procedures for initial 
application and issuance of that permit.
    (iv) A charter vessel or headboat may have both a charter vessel/
headboat permit and a commercial vessel permit. However, when a vessel 
is operating as a charter vessel or headboat, a person aboard must 
adhere to the bag limits. See the definitions of ``Charter vessel'' and 
``Headboat'' in Sec. 622.4 for an explanation of when vessels are 
considered to be operating as a charter vessel or headboat, 
respectively.
* * * * *
    (g) Transfer. A vessel permit, license, or endorsement or dealer 
permit issued under this section is not transferable or assignable, 
except as provided in paragraph (m) of this section for a commercial 
vessel permit for Gulf reef fish, in paragraph (n) of this section for 
a fish trap endorsement, in paragraph (o) of this section for a Gulf 
king mackerel gillnet endorsement, in paragraph (p) of this section for 
a red snapper license, in paragraph (q) of this section for a king 
mackerel permit, in paragraph (r) of this section for a charter vessel/
headboat permit for Gulf coastal migratory pelagic fish or Gulf reef 
fish, in Sec. 622.17(c) for a commercial vessel permit for golden crab, 
or in Sec. 622.18(e) for a commercial vessel permit for South Atlantic 
snapper-grouper. A person who acquires a vessel who desires to conduct 
activities for which a permit or endorsement is required must apply for 
a permit or endorsement in accordance with the provisions of this 
section. If the acquired vessel is currently permitted, the application 
must be accompanied by the original permit and a copy of the vessel's 
new USCG documentation or state registration.
* * * * *
    (r) Moratorium on charter vessel/headboat permits for Gulf coastal 
migratory pelagic fish and Gulf reef fish. The provisions of this 
paragraph (r) are applicable through the date that is 3 years after the 
effective date of the final rule that contains this paragraph (r).
    (1) Applicability. Beginning 150 days after the effective date of 
the final rule that contains paragraph (r)(1) of this section, the only 
valid charter vessel/headboat permits for Gulf coastal migratory 
pelagic fish or Gulf reef fish

[[Page 13594]]

are those that have been issued under the moratorium criteria in 
paragraph (r) of this section. No applications for additional charter 
vessel/headboat permits for these fisheries will be accepted. Existing 
permits may be renewed, are subject to the transferability provisions 
in paragraph (r)(9) of this section, and are subject to the requirement 
for timely renewal in paragraph (r)(10) of this section.
    (2) Initial eligibility. Initial eligibility for a charter vessel/
headboat permit for Gulf coastal migratory pelagic fish or Gulf reef 
fish is limited to the following--
    (i) An owner of a vessel that had a valid charter vessel/headboat 
permit for Gulf reef fish or coastal migratory pelagic fish, or whose 
application for such permit had been received by NMFS, at some time 
during the period March 29, 2000, through March 29, 2001, and who has 
such a valid permit on the effective date of the final rule that 
contains this paragraph (r)(2)(i)of this section.
    (ii) Any person who can provide NMFS with documentation verifying 
that, prior to March 29, 2001, he/she had a charter vessel or headboat 
under construction and that the associated expenditures were at least 
$5,000 as of that date. If the vessel owner was constructing the 
vessel, the vessel owner must provide NMFS with receipts for the 
required expenditures. If the vessel was being constructed by someone 
other than the owner, the owner must provide NMFS with a copy of the 
contract and/or receipts for the required expenditures.
    (iii) A historical captain, defined for the purposes of paragraph 
(r) of this section as a person who provides NMFS with documentation 
verifying that--
    (A) Prior to March 29, 2001, he/she was issued either a USCG 
Operator of Uninspected Passenger Vessel license (commonly referred to 
as a 6-pack license) or a USCG Masters license and operated, as a 
captain, a federally permitted charter vessel or headboat in the Gulf 
reef fish and/or coastal migratory pelagic fisheries that was not 
permitted in his/her name or the name of a corporation in which he/she 
was a shareholder; and
    (B) At least 25 percent of his/her earned income was derived from 
charter vessel or headboat fishing in one of the years, 1997, 1998, 
1999, or 2000.
    (3) Special conditions applicable to eligibility based on 
historical captain status. A person whose eligibility is based on 
historical captain status will be issued a letter of eligibility by the 
RA. The letter of eligibility may be redeemed through the RA for a 
charter vessel/headboat permit for Gulf coastal migratory pelagic fish 
and/or Gulf reef fish, with a historical captain endorsement. The 
letter of eligibility is valid for the duration of the moratorium; is 
valid only for a vessel of the same authorized passenger capacity as 
the vessel used to document earned income in paragraph (r)(2)(iii)(B) 
of this section; and is valid only for the fisheries certified on the 
application under paragraph (r)(2)(iii)(A) of this section. A charter 
vessel/headboat permit for Gulf coastal migratory pelagic fish or Gulf 
reef fish with a historical captain endorsement is valid only on a 
vessel that the historical captain operates as a captain.
    (4) Determination of eligibility based on permit history. NMFS' 
permit records are the sole basis for determining eligibility based on 
permit or application history. An owner of a currently permitted vessel 
who believes he/she meets the permit or application history criterion 
based on ownership of a vessel under a different name, as may have 
occurred when ownership has changed from individual to corporate or 
vice versa, must document his/her continuity of ownership. No more than 
one owner of a currently permitted vessel will be credited with meeting 
the permit history criterion based on a vessel's permit history. An 
owner will not be issued initial charter vessel/headboat permits for 
Gulf coastal migratory pelagic fish or Gulf reef fish under the 
moratorium in excess of the number of federally permitted charter 
vessels and/or headboats that he/she owned simultaneously at some time 
during the period March 29, 2000 through March 29, 2001.
    (5) Application requirements and procedures--(i) General. An 
applicant who desires a charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish or Gulf reef fish must submit an application for 
such permit to the RA postmarked or hand-delivered not later than 90 
days after the effective date of the final rule implementing this 
moratorium. Application forms are available from the RA. The 
information requested on the application form varies according to the 
eligibility criterion that the application is based upon as indicated 
in paragraphs (r)(5)(ii), (iii), and (iv) of this section; however, all 
applicants must provide a copy of the applicable, valid USCG Operator 
of Uninspected Passenger Vessel license or Masters license and valid 
USCG Certificate of Inspection. Failure to apply in a timely manner 
will preclude permit issuance even when the applicant meets the 
eligibility criteria for such permit.
    (ii) Application based on the prior permit/application history 
criterion. On or about the effective date of the final rule 
implementing this moratorium, the RA will mail an application for a 
charter vessel/headboat permit for Gulf coastal migratory pelagic fish 
and/or Gulf reef fish to each owner of a vessel who, according to NMFS' 
permit records, is eligible based on the permit or application history 
criterion in paragraph (r)(2)(i) of this section. Information requested 
on the application is consistent with the standard information required 
in paragraph (b)(3)(ii) of this section. The RA will also mail each 
such owner a notice that his/her existing charter vessel/headboat 
permit(s) for coastal migratory pelagic fish and/or Gulf reef fish will 
expire 150 days after the effective date of the final rule implementing 
this moratorium and that the new permit(s) required under this 
moratorium will be required as of that date. A vessel owner who 
believes he/she qualifies for a charter vessel/headboat permit for Gulf 
coastal migratory pelagic fish and/or Gulf reef fish based on permit or 
application history, but who does not receive an application from the 
RA, must request an application from the RA and provide documentation 
of eligibility. The RA will mail applications and notifications to 
vessel owner addresses as indicated in NMFS' permit records.
    (iii) Application based on a charter vessel/headboat under 
construction prior to March 29, 2001. A person who intends to obtain a 
charter vessel/headboat permit for Gulf coastal migratory pelagic fish 
and/or Gulf reef fish based on the vessel-under-construction 
eligibility criterion in paragraph (r)(2)(ii) of this section must 
obtain an application from the RA. Information requested on the 
application includes the standard information required in paragraph 
(b)(3)(ii) of this section and the documentation of construction and 
associated costs as specified in paragraph (r)(2)(ii) of this section.
    (iv) Application based on historical captain status. A person who 
intends to obtain a charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish and/or Gulf reef fish based on historical 
captain status must obtain an application from the RA. Information 
requested on the application includes the standard information required 
in paragraph (b)(3)(ii) of this section and documentation of the 
criteria specified in paragraphs (r)(2)(iii)(A)and (B) of this section. 
Such documentation includes income tax records pertinent to verifying 
earned income; a copy of the

[[Page 13595]]

applicable USCG license and/or Certificate of Inspection; and a 
notarized affidavit signed by a vessel owner certifying the period the 
applicant served as captain of a charter vessel or headboat permitted 
for Gulf reef fish and/or coastal migratory pelagic fish, whether the 
charter vessel or headboat was permitted for Gulf reef fish or coastal 
migratory pelagic fish or both, and whether the charter vessel or 
headboat was uninspected (i.e., 6-pack) or had a USCG Certificate of 
Inspection.
    (v) Incomplete applications. If an application that is postmarked 
or hand-delivered in a timely manner is incomplete, the RA will notify 
the applicant of the deficiency. If the applicant fails to correct the 
deficiency within 20 days of the date of the RA's notification, the 
application will be considered abandoned.
    (6) Issuance of initial permits. If a complete application is 
submitted in a timely manner and the applicable eligibility 
requirements specified in paragraph (r)(2) of this section are met, the 
RA will issue a charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish and/or Gulf reef fish or a letter of eligibility 
for such fisheries, as appropriate, and mail it to the applicant not 
later than 140 days after the date the final rule is effective.
    (7) Notification of ineligibility. If the applicant does not meet 
the applicable eligibility requirements of paragraph (r)(2) of this 
section, the RA will notify the applicant, in writing, of such 
determination and the reasons for it not later than 120 days after the 
date the final rule is effective.
    (8) Appeal process. (i) An applicant may request an appeal of the 
RA's determination regarding initial permit eligibility, as specified 
in paragraph (r)(2) of this section, by submitting a written request 
for reconsideration to the RA with copies of the appropriate records 
for establishing eligibility. Such request must be postmarked or hand-
delivered within 30 days after the date of the RA's notification of 
ineligibility and may include a request for an oral hearing. If an oral 
hearing is granted, the RA will notify the applicant of the place and 
date of the hearing and will provide the applicant a maximum of 30 days 
prior to the hearing to provide information in support of the appeal.
    (ii) A request for an appeal constitutes the appellant's 
authorization under section 402(b)(1)(F) of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1801 et. seq.) for 
the RA to make available to the appellate officer(s) such confidential 
records as are pertinent to the appeal.
    (iii) The RA may independently review the appeal or may appoint one 
or more appellate officers to review the appeal and make independent 
recommendations to the RA. The RA will make the final determination 
regarding granting or denying the appeal.
    (iv) The RA and appellate officer(s) are empowered only to 
deliberate whether the eligibility criteria in paragraph (r)(2) of this 
section were applied correctly. Hardship or other factors will not be 
considered in determining eligibility.
    (v) The RA will notify the applicant of the decision regarding the 
appeal within 30 days after receipt of the request for appeal or within 
30 days after the conclusion of the oral hearing, if applicable. The 
RA's decision will constitute the final administrative action by NMFS.
    (9) Transfer of permits-- (i) Permits without a historical captain 
endorsement. A charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish or Gulf reef fish that does not have a 
historical captain endorsement is fully transferable, with or without 
sale of the permitted vessel, except that no transfer is allowed to a 
vessel with a greater authorized passenger capacity than that of the 
vessel from which the permit was transferred. The determination of 
authorized passenger capacity will be based on the USCG Certificate of 
Inspection or USCG Operator of Uninspected Passenger Vessel license 
associated with the vessels involved in the transfer. If no valid 
Certificate of Inspection is provided for a vessel, that vessel will be 
considered an uninspected vessel with an authorized passenger capacity 
restricted to six or fewer passengers.
    (ii) Permits with a historical captain endorsement. A charter 
vessel/headboat permit for Gulf coastal migratory pelagic fish or Gulf 
reef fish that has a historical captain endorsement may only be 
transferred to a vessel operated by the historical captain, cannot be 
transferred to a vessel with a higher authorized passenger capacity 
than the vessel from which the permit was transferred, and is not 
otherwise transferable.
    (iii) Procedure for permit transfer. To request that the RA 
transfer a charter vessel/headboat permit for Gulf coastal migratory 
pelagic fish or Gulf reef fish, the owner of a vessel that is to 
receive the transferred permit must complete the transfer information 
on the reverse of the permit and return the permit and a completed 
application for transfer to the RA.
    (10) Renewal. (i) Renewal of a charter vessel/headboat permit for 
Gulf coastal migratory pelagic fish or Gulf reef fish is contingent 
upon the permitted vessel and/or captain, as appropriate, being 
included in an active survey frame for, and, if selected to report, 
providing the information required in one of the following--
    (A) NMFS'Marine Recreational Fishing Vessel Directory Telephone 
Survey (conducted by the Gulf States Marine Fisheries Commission);
    (B) NMFS' Southeast Headboat Survey (as required by 
Sec. 622.5(b)(1) of this part);
    (C) Texas Parks and Wildlife Marine Recreational Fishing Survey; or
    (D) A data collection system that replaces one or more of the 
surveys in paragraph (r)(10)(i)(A)(B) or (C) of this section.
    (ii) A charter vessel/headboat permit for Gulf coastal migratory 
pelagic fish or Gulf reef fish that is not renewed or that is revoked 
will not be reissued during the moratorium. A permit is considered to 
be not renewed when an application for renewal, as required, is not 
received by the RA within 1 year of the expiration date of the permit.
    (11) Requirement to display a vessel decal. Upon issuance, renewal, 
or transfer of a charter vessel/headboat permit for Gulf coastal 
migratory pelagic fish or Gulf reef fish, the RA will issue the owner 
of the permitted vessel a vessel decal for the applicable permitted 
fishery or fisheries. The vessel decal must be displayed on the port 
side of the deckhouse or hull and must be maintained so that it is 
clearly visible.
    (12) Requirement and procedure for obtaining an initial charter 
vessel/headboat permit for South Atlantic coastal migratory pelagic 
fish. (i) General. This paragraph (r)(12) explains the necessity of 
requiring and the procedure for obtaining an initial charter vessel/
headboat permit for South Atlantic coastal migratory pelagic fish. 
Formerly, the charter vessel/headboat permit for coastal migratory 
pelagic fish applied in the EEZ of the Gulf and South Atlantic. The 
establishment of a separate charter vessel/headboat permit for Gulf 
coastal migratory pelagic fish under the moratorium established by 
paragraph (r) of this section necessitates that a separate charter 
vessel/headboat permit for South Atlantic coastal migratory pelagic 
fish also be established effective 150 days after the effective date of 
the final rule implementing the moratorium and that the former charter 
vessel/headboat permit for coastal migratory pelagic fish (applicable 
in both the Gulf and South Atlantic) be voided effective as of that 
same date. The newly required charter vessel/headboat permit for

[[Page 13596]]

South Atlantic coastal migratory pelagic fish is not subject to the 
provisions of the moratorium in paragraphs (r)(1) through (11) of this 
section.
    (ii) Application for and issuance of an initial charter vessel/
headboat permit for South Atlantic coastal migratory pelagic fish-- (A) 
Owner of a vessel with a valid charter vessel/headboat permit for 
coastal migratory pelagic fish. On or about the effective date of the 
final rule implementing the moratorium in paragraph (r) of this 
section, the RA, based on NMFS' permit records, will mail an 
application for an initial charter vessel/headboat permit for South 
Atlantic coastal migratory pelagic fish to each owner of a vessel with 
a valid charter vessel/headboat permit for coastal migratory pelagic 
fish. Any such owner who desires an initial charter vessel/headboat 
permit for South Atlantic coastal migratory pelagic fish must submit 
the completed application to the RA. To avoid any lapse in 
authorization to fish for coastal migratory species in the South 
Atlantic EEZ (i.e., valid permit status), such owners must submit the 
completed application to the RA postmarked or hand-delivered not later 
than 90 days after the effective date of the final rule implementing 
the moratorium. For completed applications received by that deadline, 
the RA will issue the permit no later than 140 days after the effective 
date of the final rule implementing this moratorium. Applications will 
be accepted at any time, but if received after the deadline, the permit 
may not be issued prior to the date that the permit is first required 
(i.e., 150 days after the effective date of the final rule implementing 
the moratorium). These special procedures apply only to the application 
and issuance of the initial permit; subsequent permitting activities 
will be conducted in accordance with the standard permitting procedures 
as specified in paragraph (b) through (l) of this section.
    (B) Owner or operator of a vessel without a valid charter vessel/
headboat permit for coastal migratory pelagic fish. An owner or 
operator of a vessel who desires a charter vessel/headboat permit for 
South Atlantic coastal migratory pelagic fish and who does not have a 
valid charter vessel/headboat permit for coastal migratory pelagic fish 
must obtain a permit application from the RA. For additional permitting 
procedures, see paragraphs (b) through (l)of this section.

    3. Section 622.5 (b)(1) is revised to read as follows:


Sec. 622.5  Recordkeeping and reporting.

* * * * *
    (b) * * *
    (1) Coastal migratory pelagic fish, reef fish, and snapper-grouper. 
The owner or operator of a vessel for which a charter vessel/headboat 
permit for Gulf coastal migratory pelagic fish, South Atlantic coastal 
migratory pelagic fish, Gulf reef fish, or South Atlantic snapper-
grouper has been issued, as required under Sec. 622.4(a)(1), or whose 
vessel fishes for or lands such coastal migratory pelagic fish, reef 
fish, or snapper-grouper in or from state waters adjoining the Gulf or 
South Atlantic EEZ, who is selected to report by the SRD must maintain 
a fishing record for each trip, or a portion of such trips as specified 
by the SRD, on forms provided by the SRD and must submit such record as 
specified in paragraph (b)(2) of this section.
* * * * *

    4. In Sec. 622.7, paragraphs (b) and (f) are revised to read as 
follows:


Sec. 622.7  Prohibitions.

* * * * *
    (b) Falsify information on an application for a permit, license, or 
endorsement or submitted in support of such application, as specified 
in Sec. 622.4(b), (g), (p), (q), or (r) or in Sec. 622.18.
* * * * *
    (f) Falsify or fail to display and maintain vessel and gear 
identification, as specified in Sec. 622.6(a) and (b) or 
Sec. 622.4(r)(11).
* * * * *

    5. Section 622.43 (a)(3)(ii) is revised to read as follows:


Sec. 622.43  Closures.

    (a) * * *
    (3) * * *
    (ii) A person aboard a vessel for which valid charter vessel/
headboat permits for Gulf coastal migratory pelagic fish or South 
Atlantic coastal migratory pelagic fish and a valid commercial vessel 
permit king or Spanish mackerel have been issued may continue to retain 
fish under a bag and possession limit specified in Sec.  622.39(c), 
provided the vessel is operating as a charter vessel or headboat.
* * * * *
[FR Doc. 02-7128 Filed 3-22-02; 8:45 am]
BILLING CODE 3510-22-S