[Federal Register Volume 75, Number 19 (Friday, January 29, 2010)]
[Rules and Regulations]
[Pages 4684-4689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1877]



[[Page 4684]]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 902

50 CFR Part 660

[Docket No. 0907281183-91427-02]
RIN 0648-AX98


Fisheries off West Coast States; Pacific Coast Groundfish 
Fishery; Data Collection for the Trawl Rationalization Program

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

ACTION:  Final rule.

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SUMMARY:  NMFS is collecting data to support implementation of a future 
trawl rationalization program under the Pacific Coast Groundfish 
Fishery Management Plan (FMP). NMFS will collect ownership information 
from all potential participants in the trawl rationalization program. 
In addition, NMFS is notifying potential participants that the agency 
intends to use the Pacific States Marine Fisheries Commission's Pacific 
Fisheries Information Network (PacFIN) database, NMFS' Northwest 
Fisheries Science Center's Pacific whiting observer data from NORPAC (a 
database of North Pacific fisheries and Pacific whiting information), 
and the NMFS, Northwest Region, Sustainable Fisheries Division trawl-
endorsed groundfish limited entry permit database to determine initial 
allocation of quota share (QS) for the trawl rationalization program, 
if it is approved and implemented.

DATES:  Effective March 1, 2010.

ADDRESSES:  NMFS prepared a Final Regulatory Flexibility Analysis 
(FRFA), which is contained in the Classification section of this final 
rule. Copies of the FRFA and the Small Entity Compliance Guide are 
available from Barry A. Thom, Acting Regional Administrator, Northwest 
Region, NMFS, 7600 Sand Point Way NE, Seattle, WA 98115 0070; or by 
phone at 206-526-6150.
    Written comments regarding the burden hour estimates or other 
aspects of the collection of information requirements contained in this 
final rule may be submitted to Barry A. Thom, Acting Regional 
Administrator, Northwest Region, NMFS, 7600 Sand Point Way NE, Seattle, 
WA 98115 0070, or by e-mail to [email protected], or by fax to 
202-395-7285.

FOR FURTHER INFORMATION CONTACT:  Jamie Goen, phone: 206-526-4656, fax: 
206-526-6736, and e-mail [email protected].

SUPPLEMENTARY INFORMATION:

Electronic Access

    This rule is accessible via the Internet at the Office of the 
Federal Register's Website at http://www.gpoaccess.gov/fr/index.html. 
Background information and documents are available at the Pacific 
Fishery Management Council's website at http://www.pcouncil.org/ and at 
NMFS Northwest Region's website at http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Fishery-Management/index.cfm.

Background

    On September 16, 2009, NMFS published a proposed rule (74 FR 47545) 
announcing our intent to collect ownership information from potential 
participants in the Pacific Coast groundfish trawl rationalization 
program and announcing the databases NMFS intends to use to determine 
initial allocations for the program. Since 2003, the Pacific Fishery 
Management Council (Council) has been developing a trawl 
rationalization program, which would affect the limited entry trawl 
fishery of the Pacific Coast groundfish fishery. The trawl 
rationalization program is intended to increase net economic benefits, 
create individual economic stability, provide full utilization of the 
trawl sector allocation, consider environmental impacts, and achieve 
individual accountability for catch and bycatch.
    The Council has developed the trawl rationalization program through 
two amendments to the Groundfish FMP: (1) Amendment 20, the trawl 
rationalization program; and (2) Amendment 21, intersector allocation. 
Amendment 20 would create the structure and management details of the 
trawl rationalization program, while Amendment 21 would allocate the 
groundfish stocks between trawl and non-trawl fisheries. The Groundfish 
FMP amendment approval process and implementation, if appropriate, are 
expected to occur in 2010.
    The trawl rationalization program would be a limited access 
privilege program (LAPP) under the Magnuson-Stevens Fishery 
Conservation and Management Act (MSA), 16 U.S.C. Sec. Sec.  1851-1891d, 
as reauthorized in 2007. It would consist of: (1) An individual fishing 
quota (IFQ) program for the shore-based trawl fleet; and (2) 
cooperative (co-op) programs for the at-sea trawl fleet. The MSA 
requires the Council or the Secretary of Commerce to ensure that 
limited access privilege holders do not acquire an excessive share of 
the total limited access privileges in the program, and to establish a 
maximum share, expressed as a percentage, that each limited access 
privilege holder may hold, acquire, or use. For the trawl 
rationalization program, the Council has adopted limits on the amount 
of harvest privileges that can be held, acquired, or used by 
individuals and vessels (i.e., accumulation limits).

Collection of Ownership Information

    Pursuant to section 402(a)(2) of the MSA, if the Secretary of 
Commerce determines that additional information is necessary for 
developing or implementing an FMP, the Secretary may, by regulation, 
implement an information collection program requiring submission of 
such additional information for the fishery. This rule provides for the 
collection of ownership information from the potential participants in 
the trawl rationalization program, including the at-sea fleet (whiting 
motherships, whiting mothership catcher vessels, and whiting catcher/
processors), the shore-based fleet (whiting and non-whiting permit 
owners and holders) and the shore-based whiting processors. Ownership 
information would be collected through the Trawl Identification of 
Ownership Interest Form, and would support and facilitate the timely 
implementation of the potential future trawl rationalization program 
under the Groundfish FMP. Trawl Identification of Ownership Interest 
Forms will be mailed to potential participants and will be made 
available on NMFS website (see SUPPLEMENTARY INFORMATION, Electronic 
Access). All forms must be completed and returned to NMFS with a 
postmark no later than the deadline date of May 1, 2010.

Databases to be Used for Initial Allocation of Quota Share

    Potential participants in the trawl rationalization program should 
be aware that the agency intends to use data from the Pacific States 
Marine Fisheries Commission's PacFIN database and NMFS' Northwest 
Fisheries Science Center's Pacific whiting observer data from NORPAC to 
determine initial allocations of QS for the trawl rationalization 
program. Landings data from state fish tickets, as provided by the 
states to the PacFIN database, will be used to determine initial 
allocation of IFQ QS for the shore-based whiting and nonwhiting 
harvesters and for the shore-based whiting processors. The first

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receiver listed on the state fish ticket, as recorded in PacFIN, will 
be used to determine to whom whiting processing history should be 
attributed for whiting QS. Through NMFS' initial issuance and appeals 
process for QS, there will be an opportunity to reassign the whiting 
processing history. In addition, state logbook information from 2003 
through 2006, as recorded in PacFIN, will be used to determine the area 
fished associated with individual permits (depth and latitudinal strata 
associated with permits). This information will be used in a formula to 
determine a permit's initial allocation of overfished species. Landings 
data from the NORPAC database will be used to determine initial 
allocation of at-sea QS for the whiting mothership catcher vessels. 
Information on trawl-endorsed groundfish limited entry permits or 
permit combinations will come from limited entry permit records at 
NMFS, Northwest Region, Sustainable Fisheries Division.
    NMFS intends to ``freeze'' the databases for the purposes of 
initial allocation on the date the proposed rule for implementing 
Amendment 20 to the FMP is published in the Federal Register. 
``Freezing'' the databases means that NMFS will extract a snapshot of 
the databases as of the proposed rule publication date, and it will use 
the ``frozen'' data for initial allocation of QS. Thus, it is important 
that participants ensure, as soon as possible and before NMFS 
``freezes'' the databases, that their data are accurate.
    If potential participants in the trawl rationalization program, 
including harvesters and shore-based whiting processors, have concerns 
over the accuracy of their data in the PacFIN database, it is important 
that they contact the state in which they landed those fish as soon as 
possible to correct any errors. Any revisions to an entity's fish 
tickets or logbooks will have to be approved by the state in order to 
be accepted. For logbooks, only existing logbook information in PacFIN 
may be corrected (i.e., only transcription errors); no new logbooks 
dating back to 2003 through 2006 will be accepted. State contacts are 
as follows: (1) Washington - Carol Turcotte (360-902-2253, 
[email protected]); (2) Oregon - Nadine Hurtado (503-947-6247, 
[email protected]); and (3) California - Gerry Kobylinski 
(916-323-1456, [email protected]). For concerns over the accuracy of 
NORPAC data, contact Janell Majewski (206-860-3293, 
[email protected]). Potential QS owners should go directly to 
the source where fisheries data is entered in the database to get it 
corrected before NMFS extracts the data for initial issuance of QS. For 
concerns over the accuracy of limited entry permit or permit 
combination data, check NMFS' website at http://www.nwr.noaa.gov/Groundfish-Halibut/Groundfish-Permits/index.cfm or contact Kevin Ford 
(206-526-6115, [email protected]).

Comments and Responses

    NMFS received comments on the proposed rule from five members of 
the public, including three from fishing industry organizations and two 
from individuals. Comments relevant to this rulemaking are addressed 
here:
    Comment 1: Four of the commenters suggested alternative 
requirements for reporting ownership accumulation limits. These 
comments focused on the practicality of collecting ownership 
information at the individual level for large companies, such as 
publicly-owned corporations (domestic or foreign), non-governmental 
organizations, and Community Development Quota (CDQ) groups. These 
groups may consist of thousands of individuals that could be considered 
shareholders. Suggestions from commenters included: (1)exempting these 
groups from listing individual shareholders; (2) requiring a signed 
affidavit provided to NMFS or the Maritime Administration (MARAD) 
stating that shareholders within the group are within accumulation 
limits, and that failure to report amounts exceeding accumulation 
limits would subject the company or its shareholders to enforcement 
action; and (3) setting a minimum threshold level where percent 
ownership for only those individual shareholders above that level need 
to be reported.
    Response: NMFS considered the comments received on the proposed 
rule and input from the Groundfish Advisory Subpanel (GAP) at the 
November 2009 Pacific Fishery Management Council meeting. As stated in 
the proposed rule, the MSA requires NMFS to ensure that no one in the 
program acquires an excessive share of the resource, in this case, 
through accumulation limits. NMFS agrees with the commenters that 
collecting ownership information for all individual owners of large 
organizations with large numbers of small individual owners may be 
unduly burdensome. Further, collecting such information from 
individuals with a small ownership interest does not significantly 
contribute to achieving the statutory requirement that no shareholder 
be permitted to acquire an excessive share of the allocated quota. 
Therefore, after considering the options for limiting the burden while 
furthering the goals of the MSA, NMFS concluded that modifying the 
Trawl Identification of Ownership Interest Form to set a threshold 
limit of 2 percent ownership interest, below which individual owners 
need not be listed, is the most effective way to relieve the potential 
burden described above while implementing the requirements of the MSA. 
The rationale for this approach is described below.
    NMFS considered and rejected the suggestion that it should exempt 
large corporations and other organizations from reporting individual 
ownership levels. A broad exemption is not necessary to alleviate the 
possible burden described above. Additionally, NMFS believes that in 
the context of the potential trawl rationalization program, in which 
accumulation limits are likely to be relatively small for some species, 
an ownership threshold for reporting would best further the intent of 
the MSA while reducing the reporting burden on entities with large 
numbers of small owners.
    NMFS also considered and rejected the suggestion that business 
entities could comply with the data collection requirement by signing 
an affidavit stating that the business entity owning the permit, 
vessel, or processing plant, and any individuals with ownership 
interest in that business entity, are within the ownership interest 
accumulation limits. Requiring an affidavit would reduce NMFS' burden 
of monitoring accumulation limits. However, this option would not be as 
effective at achieving the goal of ensuring that the ownership of quota 
share is not inappropriately concentrated, particularly during the 
initial implementation of the trawl rationalization program. By 
requiring the reporting of ownership information prior to the issuance 
of quota shares, NMFS can ensure that accumulation limits are not 
exceeded before fishing under the program occurs, rather than after a 
violation has been identified and corrected.
    Commenters proposed two alternative approaches to setting a minimum 
reporting threshold level. The minimum threshold could be set at levels 
appropriate to each fishery (at-sea mothership, at-sea mothership 
catcher vessels, and shoreside fleet), or it could be one number 
applicable to all fisheries (e.g., all individuals with greater than or 
equal to 10 percent ownership interest in a company must report). 
Public comments described an example of a fishery-specific minimum 
threshold for the mothership fishery: if there are only

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six potential participants in the mothership fishery, and the 
accumulation limit for individuals is 45 percent, then it may be 
appropriate to set the reporting threshold level at greater than or 
equal to 10 percent ownership for individuals. While this approach 
makes sense, NMFS decided that the variable minimum threshold among 
sectors would add unnecessary complexity to an already complex program. 
One minimum threshold that is the same for participants in all 
fisheries would be easier for participants to understand, and for NMFS 
to implement.
    NMFS next considered the level at which a minimum threshold should 
be set. Public comment suggested a 10 percent threshold, similar to the 
threshold for Alaska's crab rationalization program. NMFS decided the 
10 percent minimum threshold may be too high for some sectors with 
accumulation limits of less than 10 percent, such as the IFQ fishery. 
At the November Council meeting, the GAP responded to NMFS' report 
(Agenda Item G.8.b, NMFS Report, November 2009), which outlined the 
public comments made on the proposed rule. The GAP report (Agenda Item 
G.8.c, Supplemental GAP Report, November 2009) suggested that ownership 
information from large companies (publicly-held corporations, 
environmental organizations, and CDQ groups, etc.) should be collected 
for individuals holding an ownership interest in those entities at a 
threshold that is slightly below the lowest accumulation limits (e.g., 
at 2 percent if the lowest accumulation limit is 2.5 percent). The 
GAP's rationale was that this formula will fulfill the requirement to 
monitor control of the resource without creating an undue 
administrative burden by collecting ownership information from every 
shareholder with any interest in the entity, no matter how small.
    After reviewing the comments, NMFS decided the GAP recommended 2 
percent minimum threshold for reporting ownership interest was 
reasonable, given the rationale that it is just below the lowest 
accumulation limit for the trawl rationalization program, and that it 
would reduce the reporting burden on potential participants with large 
numbers of individuals that have ownership interest in a permit or 
vessel. In order to be equitable, NMFS will apply the 2 percent minimum 
threshold to everyone owning a permit or vessel, not just large 
companies. Therefore, this final rule changes the proposed rule from 
requiring that ownership information for all individual owners be 
reported, even if the individual's ownership in the permit, vessel, or 
processor/first receiver is very small (e.g., 0.1 percent), to 
requiring that ownership interest on the individual level be reported 
for all individuals with greater than or equal to 2 percent ownership 
interest in a permit, vessel, or processor/first receiver. In addition, 
the Trawl Identification of Ownership Interest Form will be revised to 
reflect that the percentage of ownership of all shareholders reported 
may not equal 100 percent for entities with shareholders that own 
amounts smaller than 2 percent.
    Comment 2: Some commenters were concerned about the confidentiality 
of the ownership information collected.
    Response: NMFS addressed confidentiality in the supporting 
statement for the Paperwork Reduction Act (PRA) submission that 
accompanied the proposed rule. That submission stated that some of the 
information collected is considered or protected as confidential under 
section 402(b) of the MSA and NOAA Administrative Order 216-100, 
Protection of Confidential Fisheries Statistics. Accordingly, the names 
of individuals who have an ownership interest in an entity that owns a 
permit, vessel or processing plant and the actual percentage of 
ownership are considered business confidential and are not released to 
the public. The phone number, fax, email, TIN, and date of birth are 
also confidential. While the names and percent ownership of the 
individuals behind the entity are confidential, the name of the entity 
listed as owning the permit, vessel, or processing plant is public 
information, even if the owning entity is an individual. In addition, 
the business address for that entity is public information, even if the 
owning entity is an individual.
    Comment 3: One commenter believes NMFS does not need to collect the 
following information, ``tax identification number (TIN) for each 
entity; date of birth (DOB) for each individual; state in which each 
business entity is registered; business mailing address; physical 
address for processing plants; business phone number, fax number and 
email.'' In the event of confusion between entities or individuals, 
NMFS could request that information on a case-by-case basis.
    Response: NMFS has determined that the TIN, DOB, state in which 
each business entity is registered; business mailing address; physical 
address for processing plants; business phone number are necessary for 
this information collection. The business mailing address and business 
phone numbers are necessary to ensure NMFS has accurate contact 
information on file for the potential participant in the trawl 
rationalization program. In addition, as described in the proposed 
rule, NMFS intends to mail pre-filled applications for the future trawl 
rationalization program. To do so, NMFS will need the contact 
information for potential participants. For established owner entities 
that have responded to this collection of information, they will only 
need to provide information for new shareholders or indicate if there 
are changes in ownership interest amounts for various shareholders.
    Business entities are required to report the TIN for corporations 
or other business entities or the DOB for individuals in order to 
provide a unique identifier for Federal agencies to identify 
individuals and/or entities doing business with the government and, for 
the TIN, to verify that the business entity does not owe a delinquent 
debt to the government. The TIN is required to comply with Debt 
Collection Act of 1996. Specifically, 31 U.S.C. Sec.  7701 (c)(1) 
states that, ``the head of each Federal agency shall require each 
person doing business with that agency to furnish that agency such 
person's taxpayer identification number.'' Further, at 31 U.S.C. Sec.  
7701 (c)(2)(B), the Act provides that, ``[f]or purposes of the 
subsection, a person shall be considered doing business with a Federal 
agency if the person is - an applicant for, or recipient of, a Federal 
license, permit, right away, grant or benefit payment administered by 
the agency .''
    Moreover, the scope of information requested in this collection 
supports a number of important purposes for the Agency. This 
information will establish an initial baseline of contact information 
and unique identifiers for potential participants in the trawl 
rationalization program. First, NMFS must uniquely identify individuals 
to determine whether individuals or entities would exceed accumulation 
limits specified for the trawl rationalization program, if implemented. 
Unique identification of individuals and entities is important to 
ensuring that NMFS data is accurate and will reliably identify the 
proper recipient of harvest privileges. Second, it will help NMFS 
understand where ownership groups may have crossover into other parts 
of the groundfish fishery.
    To reiterate for clarification purposes, NMFS intends to mail pre-
filled applications for the future trawl rationalization program to 
potential

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LAPP participants based on the information collected from the forms as 
part of the rulemaking. For permit owners, vessel owners, or 
processors/first receivers that have completed the Trawl Identification 
of Ownership Interest Forms as part of this rulemaking, subsequent 
forms will be mailed out if the future trawl rationalization program is 
implemented. These subsequent forms will be pre-filled, but would say 
``on file'' in the TIN/DOB field of the forms. This is intended to 
protect the privacy of that information. The TIN/DOB field is only 
required to be filled out the first time the business entity or 
individual's information is collected by the NMFS, Northwest Region.
    As explained in the preamble to the proposed rule, each business 
entity must be registered in a state before the initial allocation of 
harvest privileges, such as QS, to ensure compliance with the MSA. 
Business entities established under the laws of the United States or of 
any state would be required to provide proof of the establishment of 
their business and to verify that they are an active corporation. If an 
entity was not established under the laws of the United States or of 
any other state, this rule would not require the entity to become so 
established. However, an entity must be established under the laws of 
the United States or of any state in order to qualify for an initial 
allocation of QS, pursuant to section 303A(c)(1)(D) of the MSA. 
Providing the information at this stage will expedite the initial 
issuance process.
    For processors or first receivers, the physical address for 
processing plants is necessary to distinguish multiple processing 
facilities that may be part of a larger parent company with the same 
name and same business mailing address. Those multiple processing 
facilities may have unique ownership interests and would be required to 
report their ownership interest.
    Respondents are not required to complete the business fax number 
and business email fields on the form; they are optional.
    Comment 4: One commenter noted that NMFS incorrectly referred to 
the mothership catcher vessel co-op shares as being allocated to the 
vessel, and that these quota shares are non-transferable amounts 
associated with the vessel.
    Response: NMFS agrees the description in the proposed rule was not 
clear. The proposed rule stated, ``QS for the at-sea mothership fleet 
(called ``catch history assignments'' in Council documents) would 
initially be allocated to the individual whiting catcher vessels 
associated with the mothership fishery, and would be non-transferable 
amounts associated with the vessel.'' What is not clear in this 
sentence is that the QS would be issued to individual catcher vessels 
in the mothership fishery as part of the limited entry permit. Once the 
QS is assigned to a specific limited entry permit based on the catch 
history of the vessel registered to that permit at the time of initial 
issuance, that QS is non-severable from the limited entry permit. While 
the QS cannot be split from the limited entry permit, the permit itself 
is transferable to another vessel or permit owner either permanently 
through a sale or temporarily through a lease arrangement.

Changes From the Proposed Rule

    The proposed rule listed who potential participants in the trawl 
rationalization program should contact if they have concerns over the 
accuracy of their data in the PacFIN database or NORPAC databases. The 
Oregon contact has changed. The correct contact for Oregon is: Oregon - 
Nadine Hurtado (503-947-6247, [email protected]). The contacts 
listed earlier in the preamble to this final rule have been updated 
with this change.
    For reasons explained above in the response to comment 1, this 
final rule changes the reporting requirements listed in the proposed 
rule from requiring that all individuals report their level of 
ownership interest even if the ownership interest in the permit, 
vessel, or processor/first receiver is very small (e.g., 0.1 percent), 
to requiring that all individuals with greater than or equal to 2 
percent ownership interest in a permit, vessel, or processor/first 
receiver must report their ownership interest to the individual level. 
The Trawl Identification of Ownership Interest Form will be revised to 
reflect this change. In addition, the Trawl Identification of Ownership 
Interest Form will be revised to reflect that the percentage of 
ownership of all shareholders reported may not equal 100 percent for 
entities with shareholders that own amounts smaller than 2 percent.
    Non-substantive changes were made to paragraphs Sec.  660.337 
(a)(2)(i)(A) and (B), and to paragraph (a)(2)(ii)(C) to make them more 
clear.
    An update was made to the chart at 15 CFR Part 902 tracking OMB 
control numbers assigned pursuant to the PRA.

Classification

    Pursuant to section 402(a)(2) of the MSA, the NMFS Assistant 
Administrator, acting on behalf of the Secretary of Commerce, has 
determined that information collected under this final rule is 
necessary for developing and implementing the trawl rationalization 
program. The NMFS Assistant Administrator has also determined that this 
final rule is consistent with other provisions of the MSA and other 
applicable law.
    This final rule has been determined to be not significant for 
purposes of Executive Order 12866.
    Pursuant to the Regulatory Flexibility Act, 5 U.S.C. Sec. Sec.  
601-612, a FRFA was prepared. The FRFA incorporates the IRFA, a summary 
of the significant issues raised by the public comments in response to 
the IRFA, and NMFS' responses to those comments, along with a summary 
of the analyses completed to support the action. A copy of the FRFA is 
available from NMFS (see ADDRESSES). A summary of the analysis follows:
    This final rule allows NMFS to collect data to support 
implementation of a future trawl rationalization program, Amendment 20, 
to the Groundfish FMP. A separate Regulatory Impact Review/IRFA will be 
prepared for the full trawl rationalization program as part of the 
rulemaking for Amendment 20. This rule also announces that NMFS intends 
to use landings data from the PacFIN and NORPAC databases to determine 
initial allocations of QS for the trawl rationalization program. 
Section 402(a)(2) of the MSA gives the legal authority for the action. 
If the Secretary determines that additional information is necessary 
for developing or implementing an FMP, the Secretary may, by 
regulation, implement an information collection requiring submission of 
such additional information for the fishery.
    The trawl rationalization program would be a LAPP under the MSA. 
The MSA requires the Council or the Secretary of Commerce to ensure 
that limited access privilege holders do not acquire an excessive share 
of the total limited access privileges in the program and to establish 
a maximum share, expressed as a percentage that each limited access 
privilege holder may hold, acquire, or use. For the trawl 
rationalization program, the Council has adopted limits on the amount 
of pounds a vessel can hold, acquire, or use (i.e., vessel limits), and 
limits on the amount of quota share that can be held, acquired, or used 
(i.e., control limits). In order to prepare for implementation of the 
accumulation limits in the trawl rationalization program, this rule 
will allow NMFS to begin collecting ownership information from 
potential participants in the program, including the at-sea fleet 
(whiting motherships,

[[Page 4688]]

whiting mothership catcher vessels, and whiting catcher/processors), 
the shore-based fleet (whiting and non-whiting permit owners and 
holders) and the whiting shore-based processors.
    NMFS received no comments on the IRFA. However, there were comments 
recommending simplification of the reporting requirements. It is not 
clear how many of these comments were from ``small'' entities. Four of 
the commenters suggested alternative requirements for reporting 
ownership accumulation limits. These comments focused on the 
practicality of collecting ownership information at the individual 
level for large companies, such as publicly-owned corporations 
(domestic or foreign), non-governmental organization, and Community 
Development Quota (CDQ) groups. These groups may consist of thousands 
of individuals that could be considered shareholders and possibly small 
businesses.
    The final rule changes the requirements listed in the proposed rule 
from requiring that all individuals report even if the ownership 
interest in the permit, vessel, or processor/first receiver is very 
small (e.g., 0.1 percent), to requiring that all individuals with 
greater than or equal to 2 percent ownership interest in a permit, 
vessel, or processor/first receiver must report their ownership 
interest to the individual level. The Trawl Identification of Ownership 
Interest Form will be revised to reflect this change. In addition, the 
Trawl Identification of Ownership Interest Form will be revised to 
reflect that the percentage of ownership of all shareholders reported 
may not equal 100 percent for entities with shareholders that own 
amounts smaller than 2 percent.
    This final rule will collect ownership information from 
approximately 250 potential participants in the trawl rationalization 
program. Using Small Business Administration (SBA) standards (described 
in the IRFA), most of the estimated 250 entities are considered small 
businesses, except for some catcher vessels that also fish off Alaska, 
some shoreside processors and all catcher-processors and motherships 
(fewer than 30) that are affiliated with larger processing companies or 
large international seafood companies.
    NMFS will send an ownership interest form to all potential 
participants in the trawl rationalization program, requiring the 
following information: type of entity; qualifying permit number; name 
of company or name of individuals owning the limited entry permit, 
vessel or processing plant; tax identification number (TIN) for each 
entity; date of birth (DOB) for each individual; state registered in 
for each business entity; business mailing address; physical address 
for processing plants, business phone number, fax number and email; 
authorized representative's name; name of each individual having 
ownership interest in the limited entry permit, vessel or processing 
plant; the individual's business addresses; percentage of ownership by 
each entity (if there are multiple entities given as an owner of the 
permit, vessel, or processing plant) and each individual shareholder in 
each entity; printed name of authorized representative, signature, and 
date. The total ownership interest of all shareholders in an entity or 
partnership must equal 100 percent, except for cases where some 
shareholders/partners in the business entity own less than 2% and are, 
therefore, not required to be reported. Only shareholders with greater 
than or equal to 2% ownership interest in the business entity are 
required to report their ownership interest. The form will require all 
owners to certify whether or not they are a small business according to 
SBA and Regulatory Flexibility Act standards. Typically, NMFS has 
assumed that shoreside harvest vessels are small entities while 
assuming that catch processors, mothership processors and several 
shoreside processors are large entities. However, NMFS does not 
currently have information to confirm this assumption is true. The 
information requested in Section C of the form will assist NMFS in 
better understanding the nature of these entities. The individual 
signing the form will certify under penalty of perjury that the 
information provided is true and correct, and the form will be required 
to be notarized by a notary public.
    In addition to completing the mandatory ownership interest form, 
potential trawl rationalization program participants may be required to 
submit additional documentation. If the ownership interest in the 
permit, vessel, or potential quota share involves a business entity, 
then additional documentation will be required. If an authorized 
representative signs this form for a business entity, then a corporate 
resolution is required that authorizes the person signing to do so on 
behalf of the entity. Business entities established under the laws of 
the United States or any state will be required to provide proof that 
they had done so and to verify that they are an active corporation. If 
an entity was (is) not established under the laws of the United States 
or of any other State, they will not be required to do so by this rule. 
However, being an established entity under the laws of the United 
States or under the laws of any state is a requirement to qualify for 
an initial allocation of quota share, pursuant to section 304(c)(1)(D) 
of the MSA. Providing the information at this stage will expedite the 
initial issuance process.
    Additional documentation that NMFS may request after review of the 
completed Trawl Ownership Interest Form include articles of 
incorporation, a contract, or any other credible documentation that 
substantiates those with ownership interest in the entity and the their 
percent ownership. NMFS may require a certified copy of the current 
vessel document (U.S. Coast Guard or state) as evidence of vessel 
ownership. NMFS may also request or consider any other relevant, 
credible evidence.
    The ownership interest form will be mailed to respondents in early 
2010, and respondents will have at least 60 days from the effective 
date of the Federal Register final rule to return the completed form. 
The form must be completed and returned to NMFS no later than May 1, 
2010. This form does NOT prequalify these persons for QS nor guarantee 
that they will qualify for QS under the future trawl rationalization 
program.
    The professional skills required to complete the Trawl Ownership 
Interest Form are no different than those currently employed by 
fishermen and businessmen to register their vessels and companies under 
U.S. and state laws.
    NMFS does not believe that this one time reporting will have a 
significant economic impact on small entities, as the estimated 
reported burden is approximately 30 minutes per response, and cost 
approximately $19.15 per response (including the respondent's time 
($8.51), mailing, photocopying, and notary fee), are amounts that even 
small businesses can bear without financial hardship. There is no fee 
for this form.
    Section 212 of the Small Business Regulatory Enforcement Fairness 
Act of 1996 states that, for each rule or group of related rules for 
which an agency is required to prepare a FRFA, the agency shall publish 
one or more guides to assist small entities in complying with the rule, 
and shall designate such publications as ``small entity compliance 
guides.'' The agency shall explain the actions a small entity is 
required to take to comply with a rule or group of rules. As part of 
this rulemaking process, a

[[Page 4689]]

letter to permit holders that also serves as small entity compliance 
guide (the guide) was prepared. Copies of this final rule are available 
from the Northwest Regional Office, and the guide, i.e., permit holder 
letter, will be sent to all holders of permits for the fishery. The 
guide and this final rule will be available upon request.
    This final rule contains a collection-of-information requirement 
subject to the PRA that has been approved by the Office of Management 
and Budget (OMB) under control number 0648-0599 (expires 12/31/12). The 
public reporting burden for the Trawl Identification of Ownership 
Interest Form is estimated to average 30 minutes per response, 
including the time for reviewing instructions, searching existing data 
sources, gathering and maintaining the data needed, and completing and 
reviewing the collection information. This form is estimated to cost 
approximately $19.15 per response (including the respondent's time 
($8.51), mailing, photocopying, and notary fee). There is no fee for 
this form. Send comments regarding these burden estimates or any other 
aspect of this data collection, including suggestions for reducing the 
burden, to NMFS, Northwest Region (see ADDRESSES) and by e-mail to 
[email protected], or fax to 202-395-7285.
    Notwithstanding any other provision of the law, no person is 
required to respond to, and no person shall be subject to 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

15 CFR Part 902

    Reporting and recordkeeping requirements.

50 CFR Part 660

    Fisheries, Fishing, and Indian Fisheries.

    Dated: January 25, 2010.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

0
For the reasons set out in the preamble, 15 CFR Chapter IX and 50 CFR 
Chapter VI are amended as follows:

15 CFR Chapter IX

PART 902--NOAA INFORMATION COLLECTION REQUIREMENTS UNDER THE 
PAPERWORK REDUCTION ACT: OMB CONTROL NUMBERS

0
1. The authority citation for part 902 continues to read as follows:

    Authority:  44 U.S.C. 3501 et seq.

0
2. In Sec.  902.1, paragraph (b), under ``50 CFR'', the entry 
``660.337'' is added in numerical order to read as follows:


Sec.  902.1  OMB control numbers assigned pursuant to the Paperwork 
Reduction Act.

* * * * *
    (b)* * *

------------------------------------------------------------------------
                                              Current OMB control number
 CFR part or section where the information     (all numbers begin with
     collection requirement is located                  0648-)
------------------------------------------------------------------------
                                * * * * *
 
50 CFR                                       ...........................
                                * * * * *
660.337                                      -0599
                                * * * * *
 
------------------------------------------------------------------------

50 CFR Chapter VI

PART 660--FISHERIES OFF WEST COAST STATES

0
1. The authority citation for part 660 continues to read as follows:

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

0
2. A new Sec.  660.337 is added to read as follows:


Sec.  660.337  Trawl rationalization program - data collection 
requirements.

    (a) Ownership reporting requirements - (1) In 2010, NMFS will send 
a Trawl Identification of Ownership Interest Form to the current 
address on record requesting information from participants in the trawl 
fishery. Receipt of this form does NOT prequalify these persons for 
quota share nor does it guarantee that they will qualify for quota 
share under a future trawl rationalization program. The following 
participants in the trawl fishery must complete and return the form to 
NMFS:
    (i) Owners of each limited entry permit endorsed for trawl gear;
    (ii) Owners of each vessel registered to a limited entry permit 
endorsed for trawl gear (i.e., permit holder) if not identical to the 
permit owner covered by paragraph (a)(1)(i) of this section;
    (iii) Owners of each vessel registered to a Pacific whiting vessel 
license that are not covered by paragraphs (a)(1)(i) and (ii) above; 
and
     (iv) First receivers issued current Pacific whiting first receiver 
exempted fishing permits.
    (2) Supporting documentation.
    (i) Business entities completing the Trawl Identification of 
Ownership Interest Form are required to submit the following:
    (A) A corporate resolution or any other credible documentation as 
proof that the representative of the entity is authoirzed to act on 
behalf of the entity; and
    (B) Proof that the business entity was established and is currently 
recognized as active under the laws of the United States or any state.
    (ii) After review of the Trawl Identification of Ownership Interest 
Form, NMFS may require the following additional documentation:
    (A) Articles of incorporation, a notarized contract, or any other 
credible documentation that identifies each person who owns an interest 
in the entity and their percentage of ownership;
    (B) A certified copy of the current vessel document (United States 
Coast Guard or state) as evidence of vessel ownership; or
    (C) Such other relevant, credible information as the applicant may 
submit, or as the SFD or the Regional Administrator may request or 
require.
    (3) Deadline. Persons listed in paragraph (a)(1) will be provided 
at least 60 calendar days to submit completed forms. All forms must be 
completed and returned to NMFS with a postmark no later than the 
deadline date of May 1, 2010.
    (b) [Reserved]
[FR Doc. 2010-1877 Filed 1-28-10; 8:45 am]
BILLING CODE 3510-22-S