[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Proposed Rules]
[Pages 46941-46946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19261]


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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 600

[Docket No. 150227192-5192-01]
RIN 0648-BE90


Magnuson-Stevens Act Provisions; Refinance of the Pacific Coast 
Groundfish Fishing Capacity Reduction Loan; Pacific Coast Groundfish 
Federal Limited-Entry Trawl, Washington Coastal Dungeness Crab and 
California Pink Shrimp Fisheries; Refinanced Reduction Loan Terms and 
Industry Fee System

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and

[[Page 46942]]

Atmospheric Administration (NOAA), Commerce.

ACTION: Proposed rule; request for comments.

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SUMMARY: NMFS is proposing regulations that would refinance the 30-year 
voluntary fishing capacity reduction loan implemented in 2004 into 
three separate loans, if approved through referenda, in the Pacific 
Coast Groundfish federal limited-entry trawl, Washington coastal 
Dungeness crab, and California pink shrimp fisheries (collectively 
known hereafter as the refinanced reduction fisheries). The refinanced 
loan, of up to $30 million, would establish a new industry fee system 
for future landings of the refinanced reduction fisheries. The 2015 
National Defense Authorization Act authorized NMFS to refinance the 
loan and modify certain terms to extend the 30 year term to maturity to 
45 years, change the interest rate to the current Treasury interest 
rate and, reduce the maximum repayment fee from five to three percent 
of ex-vessel value. If finalized, and with the receipt of an 
appropriation, NMFS proposes to refinance the single existing debt, 
which has been divided into seven loan subamounts, into three separate 
loans. NMFS would conduct three referenda as soon as practicable after 
publication of the final rule in each of the Pacific Coast Groundfish 
federal limited-entry trawl, Washington coastal Dungeness crab and 
California pink shrimp fisheries. If a referendum in one, two, or all 
three of the fisheries is successful, that fishery's current loan would 
be repaid in full and new loans in the amount of the principal and 
interest balance as of the date of funding would be issued per the 
terms in the 2015 National Defense Authorization Act. These terms 
include a new 45-year term to maturity, interest charged at a current 
Treasury interest rate, and a maximum repayment fee of 3 percent of ex-
vessel value.

DATES: NMFS must receive comments by September 8, 2015.

ADDRESSES: You may submit comments on this document, identified by 
NOAA-NMFS-2015-0033, by either of the following methods:
    Electronic Submission: Submit all electronic public comments via 
the Federal e-Rulemaking Portal.
    1. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2015-0033,
    2. Click the ``Comment Now!'' icon, complete the required fields
    3. Enter or attach your comments.

--OR--

    Mail: Submit written comments to Paul Marx, Chief, Financial 
Services Division, National Marine Fisheries Service, 1315 East-West 
Highway, Silver Spring, MD 20910-3282.
    Instructions: Comments sent by any other method, to any other 
address or individual, or received after the end of the comment period, 
may not be considered by NMFS. All comments received are a part of the 
public record and will generally be posted for public viewing on 
www.regulations.gov without change. All personal identifying 
information (e.g., name, address, etc.), confidential business 
information, or otherwise sensitive information submitted voluntarily 
by the sender will be publicly accessible. NMFS will accept anonymous 
comments (enter ``N/A'' in the required fields if you wish to remain 
anonymous). Copies of the Regulatory Impact Review and Initial 
Regulatory Flexibility Analysis (RIR/IFRA) prepared for this action are 
available from NMFS upon request (see FOR FURTHER INFORMATION CONTACT). 
NMFS has preliminarily determined that this action qualifies for a 
Categorical Exclusion from NEPA.

FOR FURTHER INFORMATION CONTACT: Paul Marx, Chief, Financial Services 
Division, National Marine Fisheries Service, (301) 427-8771.

SUPPLEMENTARY INFORMATION:

I. Background

    On February 20, 2003, Section 212 of Division B, Title II, of 
Public Law 108-7 (section 212) authorized a fishing capacity reduction 
program (program) for permits endorsed in seven fisheries: the limited-
entry trawl fishery under the Pacific Coast Groundfish Fishery 
Management Plan, excluding those registered to whiting catcher-
processors, and corollary fisheries in California, Oregon, and 
Washington for coastal Dungeness crab and pink shrimp. On May 28, 2003, 
NMFS published a proposed notice outlining the terms and conditions of 
the buyback program. Bid offers totaling $46 million were accepted for 
91 vessels, encompassing 239 fishing permits and licenses. Ten million 
dollars was appropriated by Congress toward funding the buyback 
program, the balance was funded through a loan of $36 million. The 
combined amount was issued to tender payment to the accepted bidders. 
NMFS published a final notice on July 18, 2003. A successful referendum 
in October 2003 accepted the fee system. On November 16, 2004, NMFS 
published a proposed rule to implement the industry fee system to repay 
the loan portion of the buyback program. On April 8, 2005, NMFS 
published a revised proposed rule. NMFS collected comments and on July 
13, 2005, NMFS responded to the comments and published a final rule 
establishing the industry fee system rule. As a result, seven loan 
subamounts were created for each of the permitted fisheries. NMFS began 
collecting buyback fee payments to repay the debt obligation of $36 
million at an interest rate of 6.97 percent over a term of 30 years on 
September 8, 2005. Four of the seven fisheries have repaid their loan 
subamounts in full.
    Congress enacted Public Law 113-291 Section 3095 (2015 National 
Defense Authorization Act), which was signed into law on December 19, 
2014, to refinance the existing debt obligation funding the fishing 
capacity reduction program for the Pacific Coast Groundfish fishery 
implemented under Section 212.

II. Refinance Cost

    The amount paid to refinance the existing Pacific Coast Groundfish 
loan may not exceed $30 million and will not exceed the amount of the 
outstanding debt for the Pacific Coast Groundfish federal limited-entry 
trawl, Washington coastal Dungeness crab, and California pink shrimp 
fishery loan subamounts which are, as of March 30, 2015, $26M, $0.3M, 
and $0.1M, respectively. The Office of Management and Budget has 
determined that a $10 million appropriation will be necessary to fund 
the reduced income to the U.S. Treasury over the next 10 years due to 
the reduction in the annual loan repayment amount under the refinanced 
terms. A $300,000 appropriation will also be necessary to provide the 
subsidy amount for the new loan, pursuant to the Federal Credit Reform 
Act. NMFS will not implement the refinance unless these necessary funds 
are appropriated. A final rule would not be effective until 
appropriations are approved.

III. Program Overview

    NMFS is implementing this refinancing process pursuant to 2015 
National Defense Authorization Act. A refinancing would reduce the 
maximum buyback fee payment amount from 5 percent of ex-vessel value to 
3 percent of ex-vessel value. The current loan term of 30 years is 10 
years into repayment. Under the refinancing terms, a new loan with a 
45-year term would be initiated, effectively providing the original 
reduction program a 55-year repayment term for permit holders in these 
fisheries. The interest rate on the refinanced loan will be the rate 
that the Secretary pays to the Treasury to borrow

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the funds, which may be lower than the current interest rate of 6.97 
percent on the original loan.

IV. Referendum

    As part of the refinancing process, NMFS will conduct referenda to 
approve or reject the refinancing of the current capacity reduction 
loan as soon as practicable after publication of the final rule. The 
original loan authorizing legislation required that NMFS conduct a 
referendum to approve repaying the loan. The 2015 National Defense 
Authorization Act authorized refinancing of that reduction loan. NMFS 
has determined that to implement the 2015 Act properly, a referendum 
will also be conducted to ensure that a majority of permit holders 
consent to the new terms. The referendum process will take 30 days and 
will not significantly increase the time to complete the refinancing 
process. Even if another method to determine permit holder support for 
the refinancing were permitted by statute, the time to develop that 
method would likely take longer than conducting a referendum.
    NMFS will conduct three separate referenda to allow participants in 
each fishery to indicate their interest in refinancing the loan 
subamount for their particular fishery. This is to ensure that if one 
fishery does not approve a refinancing, it does not prevent 
participants in other fisheries from approving a refinancing in their 
own fishery.
    Permit holders will have 30 days from the date of notice to cast 
their vote. A successful referendum means permit holders in that 
particular fishery authorize the fee required to repay the refinanced 
reduction loan.
    NMFS will mail referendum information, voting instructions, and a 
referendum ballot to the permit owner of each groundfish permit in the 
Pacific Coast Groundfish Federal limited-entry trawl fishery and to the 
person who is the holder of record of each state-issued California pink 
shrimp or Washington coastal Dungeness crab permit (collectively, 
eligible voters). NMFS will include the following information about the 
refinancing:
     The program's cost,
     The three reduction loan subamounts,
     Current terms and conditions of the capacity reduction 
loan, and
     The changes that will occur should the referendum be 
successful.
    NMFS will mail eligible voters a separate referendum ballot for 
each groundfish permit he/she owns and each California pink shrimp or 
Washington coastal Dungeness crab permit he/she holds. In other words, 
eligible voters will have one ballot for every such permit they hold. 
Permit holders will only vote for the refinancing of the loan 
subamount(s) for fisheries in which they hold permits.
    Immediately after the deadline for NMFS' receipt of ballots, NMFS 
will tally votes for each fishery separately.
    For a referendum to be successful, a majority of the total eligible 
permit holders in that fishery must vote in favor of the refinancing. 
NMFS will mail each eligible voter a notice about his/her respective 
referendum's outcome.
    If a referendum is unsuccessful, the refinancing fee for that 
fishery will not be approved and the fee system rule at Sec.  600.1102 
will remain in effect for that fishery.
    If a referendum for a fishery loan is successful, NMFS will repay 
the original fishery's loan subamount in full and issue a new loan per 
the terms in this rule. NMFS will rescind the loan repayment terms at 
Sec.  600.1102 and those terms will be superseded with the fee system 
in this rule reflecting the new loan's refinanced terms for that 
fishery.

V. Refinanced Loan

    Any refinanced loan will mature 45 years from the date of the 
issuance of the new loan. The principal amount will be the current 
balance of principal and interest on the fishery's loan subamount as of 
the date of funding of the new refinanced loan. Fishery finance program 
loans, including buyback loans, have historically been issued at the 
Treasury interest rate plus two percentage points. The refinancing 
terms in the 2015 National Defense Authorization Act did not include 
additional percentage points above the Treasury interest rate. On the 
date of issuance of any new loan, NMFS will determine the reduction 
loan's interest rate in accordance with the 2015 National Defense 
Authorization Act, Sec. 3095, and the framework regulations at Sec.  
600.1012 to the extent they do not conflict with Section 3095.

VI. Fee Payment Rate

    NMFS will establish the fee rates necessary to repay refinanced 
loan amounts applicable to each fishery for which there is a successful 
referendum. The amount of the fee will be calculated by NMFS on an 
annual basis as the principal and interest payment amount necessary to 
amortize the loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fish harvested and landed in the respective 
fisheries. In the event that payments are insufficient to repay the 
refinanced loan within the 45-year term, NMFS will extend the term of 
the repayment until the refinanced loan is paid in full.
    To verify that the fees collected do not exceed three percent of 
the fishery revenues, NMFS will compare the annual total of principal 
and interest due with the latest available annual revenues in the 
fisheries. In the event that any of the components necessary to 
calculate the next year's fee are not available, or postponed, the fee 
will remain at the previous year's amount until such time as new 
calculations are made and communicated to the post-refinancing fishery 
participants.
    If a refinanced fishery does not open during a year, interest will 
continue to accrue on the principal balance even though no fee revenue 
will be generated. If this happens, when the fishery opens, NMFS shall 
increase the fee to the maximum three percent, apply all subsequent fee 
revenue first to the payment of accrued interest, and continue the 
maximum fee rates until the principal and interest payments become 
current. Once all principal and interest payments are current, NMFS 
will make a determination about adjusting the fee rate.

VII. Fee Payment and Collection

    Fish sellers will pay the fees and fish buyers will collect, 
deposit, disburse, record, and report on the fees in accordance with 
the applicable portions of the framework regulations (Sec.  600.1014), 
the 2015 National Defense Authorization Act, Section 3095, Sec.  
600.1102, and this final rule. This process would not change from the 
current fishing capacity reduction loan program.
    NMFS entered into agreements with California, Oregon, and 
Washington to provide necessary information on fish tickets, buyers, 
and harvesters to collect the fees that repay the current reduction 
loan, and these agreements will not change as a result of any 
refinancing. The three states will be notified of this proposed rule, a 
final rule and, if there is a successful referendum, that a refinancing 
has occurred.

VIII. Enforcement/Prohibitions and Penalties

    All requirements and penalties set forth in the provisions of Sec.  
600.1013 (Fee payment and collection), Sec.  600.1014 (Fee collection 
deposits, disbursements, records, and reports), Sec.  600.1015 (Late 
charges), and Sec.  600.1017 (Prohibitions and penalties) shall apply 
to any dealer who purchases fish in the refinanced reduction

[[Page 46944]]

fisheries, and to any fee collection under this section, to the extent 
they do not conflict with this section or with subpart M of this part.
    The provisions and requirements of Sec.  600.1016 (Enforcement) 
shall also apply to fish sellers and fish buyers subject to this 
fishery.
    Additionally, fish buyers are prohibited from buying fish from 
reduction fishery participants who do not pay the required landing fee 
and prohibits reduction fishery participants from selling fish to 
buyers who do not collect the fees.

Classification

    The Assistant Administrator for Fisheries, NMFS, determined that 
this action is consistent with Public Law 113-291, Public Law 107-206, 
Public Law 108-7, the Magnuson-Stevens Fishery Conservation and 
Management Act, and other applicable laws. NMFS has preliminarily 
determined that the proposed action would qualify as a Categorical 
Exclusion under the National Environmental Policy Act. The Office of 
Management and Budget has determined that this proposed rule is not 
significant under Executive Order 12866.

RIR/IRFA

    NMFS has prepared a Regulatory Impact Review (RIR) and an Initial 
Regulatory Flexibility Analysis (IRFA) for this action (see ADDRESSES). 
NMFS believes any Federalism implications arising from this notice are 
highly unlikely. Consultations with the States of Washington, Oregon, 
and California were previously conducted regarding the Pacific Coast 
Groundfish Fishing Capacity Reduction Program and those states will 
have additional opportunity to comment on this proposed rule. In 2014, 
NMFS implemented the cost recovery program to recover the associated 
costs with management, data collection and enforcement of the Pacific 
Coast Groundfish trawl rationalization program, which added another 
cost to harvesters in this fishery of up to 3 percent of value of fish 
sold. This additional fee has reduced their income so the request to 
refinance is in part to obtain fee relief for harvesters in that 
fishery.

Impact to Small Businesses

    The Small Business Administration (SBA) has defined small entities 
as all fish harvesting businesses that are independently owned and 
operated, not dominant in their field of operation, and with annual 
receipts of less than $20.5 million for finfish harvesters or $7.5 
million for shellfish harvesters. In addition, processors with 500 or 
fewer employees for related industries involved in canned and cured 
fish and seafood, or preparing fresh fish and seafood, are also 
considered small entities. According to the SBA's definition of a small 
entity, most of the vessels would be considered small entities. 
However, there are no disproportionate impacts between large and small 
entities. This proposed action would not result in changes to 
allocation percentages and would not change the number of vessels 
participating in the fishery. As such, net effects on small businesses 
of this action are expected to be minimal relative to the status quo.

Paperwork Reduction Act (PRA)

    This document contains collection of information requirements 
subject to the Paperwork Reduction Act (PRA). The Office of Management 
and Budget (OMB) has approved these information collections under OMB 
control number 0648-0376. NMFS estimates that the public reporting 
burden for these requirements will average 4 hours for voting in a 
referendum. Persons affected by this action would also be subject to 
other collection-of-information requirements referred to in this action 
and also approved under 0648-0376. These requirements and their 
associated response times are 10 minutes for completing and filing a 
fish ticket, 2 hours for submitting a monthly fish buyer report, and 4 
hours for making a fish seller/buyer report when one party fails to 
either pay or collect the fee. These response estimates include the 
time for reviewing instructions, searching existing data sources, 
gathering and maintaining the data needed, and completing and reviewing 
the information collection. Send comments regarding this burden 
estimate, or any other aspect of this data collection, including 
suggestions for reducing the burden, to NMFS (see ADDRESSES). 
Notwithstanding any other provision of law, no person is required to 
respond to, and no person is subject to a penalty for failure to comply 
with, an information collection subject to the requirements of the PRA 
unless that information collection displays a currently valid OMB 
control number.

List of Subjects in 50 CFR Part 600

    Fisheries, Fishing capacity reduction, Fishing permits, Fishing 
vessels, Intergovernmental relations, Loan programs-business, Reporting 
and recordkeeping requirements.

    Dated: July 31, 2015
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine 
Fisheries Service.

    For the reasons set out in the preamble, 50 CFR part 600, subpart 
M, is proposed to be amended as follows:

PART 600--MAGNUSON-STEVENS ACT PROVISIONS

Subpart M--Specific Fishery or Program Fishing Capacity Reduction 
Regulations

0
1. The authority citation for 50 CFR part 600, subpart M, is revised to 
read as follows:

    Authority:  5 U.S.C. 561, 16 U.S.C. 1801 et seq., 16 U.S.C. 
1861a(b) through (e), section 212 of Pub. L. 107-206, section 501 of 
Pub. L. 108-7, section 3095 Pub. L. 113-291, and 46 U.S.C. 53701 et 
seq.

0
2. Section 600.1109 is added to subpart M to read as follows:


Sec.  600.1109  Refinance of the Pacific Coast Groundfish Fishing 
Capacity Reduction Program, including fee payment and collection 
system.

    (a) Purpose. Upon successful referenda, this section implements the 
refinancing of three of the fishing capacity reduction loan subamounts 
for the Pacific Coast Groundfish Fishing Capacity Reduction Program 
enacted by Section 212 of Public Law 107-206 and Section 501 of Public 
Law 108-7, as amended by Section 3095 of Public Law 113-291 (the Act). 
The intent of the program is to refinance, through an industry-financed 
loan, the current debt obligation for the reduction of permits 
previously purchased in the Pacific Coast Groundfish Buyback Program. 
Fishery participants will finance this program through federal loans 
that will be repaid over 45 years through a fee collection system. The 
intent of the fee collection system is to establish the permit holders' 
obligation to repay the Refinanced Loans' principal and accrued 
interest over the repayment term, and to ensure repayment of the new 
loans.
    (b) Definitions. Unless otherwise defined in this section, the 
terms defined in Sec. Sec.  600.1000 and 600.1102 expressly apply to 
this section. The following terms have the following meanings for the 
purpose of this section:
    Refinanced loans means the loans used to refinance the original 
reduction loan under Section 3095 of Public Law 113-291.
    Refinancing plan means the implementation of the changes in terms 
and conditions authorized by Section 3095 of Public Law 113-291.

[[Page 46945]]

    Refinanced reduction fisheries means the Pacific Coast Groundfish 
federal limited-entry trawl fishery (excluding those permits which are 
endorsed for catch-processors), Washington coastal Dungeness crab and 
California pink shrimp fisheries.
    (c) Refinanced fishing capacity reduction loan. In the event of 
successful referenda, the fishing capacity reduction loan implemented 
in 2004 in the Pacific Coast Groundfish federal limited-entry trawl, 
Washington coastal Dungeness crab, or California pink shrimp fisheries 
would be refinanced into one, two, or three loans modifying certain 
terms to extend the 30 year term to maturity to 45 years, change the 
interest rate to the current Treasury interest rate, and reduce the 
maximum repayment fee from five to three percent of ex-vessel value.
    (1) Referenda. Subsequent to the publication of a final rule 
resulting from this proposed rule, NMFS will conduct three separate 
referenda to allow each participant in each fishery to vote his/her 
interest in his/her particular fishery. This is to ensure that if one 
fishery does not approve the refinancing of its loan subamount, it does 
not prevent participants in the other fisheries from approving the 
refinancing in their respective fisheries. NMFS shall publish a notice 
in the Federal Register requesting votes by permit holders on whether 
to accept or reject the refinancing plan. The notice shall state the 
starting and ending dates and times of the voting period. The end date 
shall be thirty (30) days from the start date.
    (i) Such notice shall state the name and address of record of each 
eligible voter, as well as the basis for having determined the 
eligibility of those voters. This shall constitute notice and 
opportunity to respond about adding eligible voters, deleting 
ineligible voters, and/or correcting any voter's name and address of 
record. If, in NMFS' discretion, the comments received in response to 
such notice warrants it, or for other good cause, NMFS may modify such 
list by publishing another notice in the Federal Register. NMFS shall 
issue ballots to eligible voters, tally votes, and notify voters 
whether the referendum was successful or unsuccessful in approving the 
Refinancing Plan consistent with the provisions of Sec.  600.1010.
    (ii) A successful referendum by a majority of the permit holders in 
their respective fishery shall bind all parties and complete the 
refinancing. NMFS shall publish a notice in the Federal Register 
advising the public that the referendum was successful. Thereafter the 
Refinancing Plan shall be implemented.
    (iii) The provisions of Sec. Sec.  600.1010 and 600.1017(a)(1)-(4) 
shall apply to any referendum of a Refinancing Loan conducted under 
this section to the extent that they are not inconsistent with and do 
not conflict with this section or with subpart M of this part.
    (2) Refinanced loan repayment. Permit holders operating in the 
refinanced reduction fishery shall be obligated to pay the fee in 
accordance with this section. In the event that payments made are 
insufficient to pay a Refinanced Loan within the 45-year term, NMFS 
shall extend the term of the repayment until the Refinanced Loan is 
paid in full.
    (i) Refinanced loan amount. The amount paid to refinance the 
existing Pacific Coast Groundfish loan may not exceed $30 million and 
will not exceed the amount of the outstanding debt for the Pacific 
Coast Groundfish federal limited-entry trawl, Washington coastal 
Dungeness crab, and California pink shrimp fishery loan subamounts.
    (ii) Repayment term. As authorized by the Act, a Refinanced Loan 
shall be amortized over a forty-five (45) year term. A final Refinanced 
Loan periodic payment amount will be determined by NMFS' analysis of 
the ability of the post-reduction fishery to service debt, up to a 
maximum of 3 percent of ex-vessel value. The provisions of Sec. Sec.  
600.1012-600.1017 shall apply to any reduction loan, fee payment and 
collection under this section to the extent they do not conflict with 
this section or with subpart M of this part.
    (iii) Interest. NMFS will determine a Reduction Loan's initial 
interest rate when NMFS borrows from the U.S. Treasury the funds with 
which to refinance the reduction loan. Interest will begin accruing on 
a Refinanced Loan from the date on which NMFS refinances the reduction 
loan. The initial interest rate will change to a final interest rate at 
the end of the Federal fiscal year in which NMFS borrows the funds from 
the U.S. Treasury. The final interest rate will be a weighted average, 
throughout that fiscal year, of the U.S. Treasury's cost of borrowing 
equivalent maturity funds. The final interest rate will be fixed and 
will not vary over the remainder of the refinanced reduction loan's 45-
year term. Refinanced Loans will be subject to a level debt 
amortization. There is no prepayment penalty.
    (iv) Fees. Fees will be collected, deposited, disbursed, and 
recorded in accordance with Sec.  600.1109(d).
    (d) Fee system. Post-refinancing permit holders operating in the 
fishery shall be obligated to pay the fee in accordance with the 
following: The amount of such fee will be calculated by NMFS on an 
annual basis as the principal and interest payment amount necessary to 
amortize a loan over a 45-year term, not to exceed 3 percent of ex-
vessel value. The fee shall be expressed as a percentage of the ex-
vessel value of all fee fish harvested and landed in the respective 
fisheries. In the event that payments made under the Refinanced 
Reduction Plan are insufficient to repay a Refinanced Loan within the 
45-year term, NMFS shall extend the term of the repayment until the 
Refinanced Loan is paid in full.
    (1) Collection. The buyer who first purchases the fee fish landed 
in a fishery shall be responsible for collecting and submitting the 
repayment fees to NMFS monthly. The fees shall be submitted to NMFS no 
later than fourteen (14) calendar days following the end of each 
calendar month. Fees must be assessed and collected on all fee fish 
harvested in the fisheries.
    (2) Fee amount. Although the fee could be up to three percent of 
the ex-vessel price of all post-refinancing landings, the fee will be 
less than three percent if NMFS projects that a lesser rate can 
amortize the Refinanced Loan over the 45-year term. To verify that the 
fees collected do not exceed 3 percent of the fishery revenues, NMFS 
will compare the annual total of principal and interest due with the 
latest available annual revenues in the fisheries to ensure that it is 
equal to or less than three percent of the total ex-vessel production 
revenues. In the event that any of the components necessary to 
calculate the next year's fee are not available, or postponed, the fee 
will remain at the previous year's amount until such time as new 
calculations are made and communicated to the post-refinancing fishery 
participants.
    (i) If a refinanced fishery does not open during a year, interest 
will continue to accrue on the principal balance even though no fee 
revenue will be generated. If this happens, when the fishery opens, 
NMFS shall increase the fee to the maximum three percent, apply all 
subsequent fee revenue first to the payment of accrued interest, and 
continue the maximum fee rates until the principal and interest 
payments become current. Once all principal and interest payments are 
current, NMFS will make a determination about adjusting the fee rate.
    (ii) [Reserved]
    (3) Recordkeeping and reporting. The dealer who first purchases the 
fee fish landed in the fishery shall be responsible for compliance with 
the

[[Page 46946]]

applicable recordkeeping and reporting requirements.
    (4) All requirements and penalties set forth in the provisions of 
Sec.  600.1013 (Fee payment and collection), Sec.  600.1014 (Fee 
collection deposits, disbursements, records, and reports), Sec.  
600.1015 (Late charges), and Sec.  600.1017 (Prohibitions and 
penalties) shall apply to any dealer who purchases fish in the 
refinanced reduction fisheries, and to any fee collection under this 
section, to the extent they do not conflict with this section or with 
subpart M of this part.
    (e) Enforcement for failure to pay fees. The provisions and 
requirements of Sec.  600.1016 (Enforcement) shall also apply to fish 
sellers and fish buyers subject to this fishery.
    (f) Prohibitions and penalties. The provisions and requirements of 
Sec.  600.1017 shall also apply to fish sellers and fish buyers subject 
to this fishery. In addition, fish buyers are prohibited from 
purchasing fish from fish sellers who do not pay the required landing 
fees. Fish sellers are prohibited from selling to fish buyers who do 
not pay the required landing fees.
    (g) The provisions of Sec.  600.1102 shall apply to any fee 
collection as implemented by the Refinancing Plan to the extent that 
they do not conflict with this section or with subpart M of this part.

[FR Doc. 2015-19261 Filed 8-5-15; 8:45 am]
 BILLING CODE 3510-22-P