[Federal Register Volume 62, Number 216 (Friday, November 7, 1997)]
[Rules and Regulations]
[Page 60182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29507]



[[Page 60182]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 679

[Docket No. 960717195-7255-03; I.D. 100897E]
RIN 0648-AI95


Fisheries of the Exclusive Economic Zone Off Alaska; Insurance 
Coverage Provisions for Observer Contractors under the North Pacific 
Interim Groundfish Observer Program

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

ACTION: Final rule.

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

SUMMARY: NMFS issues regulations that clarify an insurance coverage 
provision for observer contractors who provide observer services to 
vessels and shoreside processors participating in the groundfish 
fisheries of the Gulf of Alaska (GOA) and the Bering Sea and Aleutian 
Islands management area (BSAI). This action is necessary to respond to 
the North Pacific Fishery Management Council's (Council's) Insurance 
Technical Committee (ITC) recommendation to correct the terminology 
used to delineate required insurance coverages, by changing the 
references to ``Contractual General Liability'' to read ``Commercial 
General Liability.''

DATES: Effective November 7, 1997.

FOR FURTHER INFORMATION CONTACT: Kim S. Rivera, 907-586-7228.

SUPPLEMENTARY INFORMATION: In 1994, the ITC recommended that 
standardized insurance coverage provisions be required of
    observer contractors who provide observer services to vessels and 
shoreside processors participating in the groundfish fisheries of the 
GOA and the BSAI. In 1996, NMFS implemented regulations (61 FR 56425, 
November 1, 1996) reflecting the ITC's recommendation and required 
observer contractors to provide NMFS with copies of ``certificates of 
insurance'' that verified the following coverage provisions: (1) 
Maritime Liability to cover ``seamen's'' claims under the Merchant 
Marine Act (Jones Act) and General Maritime Law, (2) coverage under the 
U.S. Longshore and Harbor Workers' Compensation Act, (3) States 
Workers' Compensation as required, and (4) Contractual General 
Liability.
    At its June 4, 1997, meeting, the ITC clarified that its 1994 
recommendation for standardized insurance provisions was intended to 
include a requirement for Comprehensive General Liability, not 
Contractual General Liability. Contractual General Liability refers to 
an endorsement to a Comprehensive General Liability policy, and extends 
the liability coverage to an additional party, for example, the vessel 
owner. In this instance, a contractual endorsement represents a shift 
in the responsibility of certain liabilities from the vessel owner to 
the observer contractor. While the observer contractor may offer this 
endorsement as an opinion in their contracts with vessel owners, the 
ITC intended that this shift of liability responsibilities be optional, 
not mandatory.
    After the June Council meeting, the ITC clarified further that due 
to a recent change in the use of the standard liability coverage form 
used by insurance brokers, Commercial General Liability is the correct 
term to use, not Comprehensive General Liability.
    Therefore, in consultation with the Council's ITC, NMFS clarifies 
regulations requiring standardized insurance provisions for observer 
contractors to accurately reflect the original intent of the ITC. 
Accordingly, NMFS revises the regulation at Sec. 679.50(i) (2) (xiv) 
(E) (4) to clarify that observer contractors are required to provide a 
certificate of insurance that, in addition to other listed 
requirements, verifies Commercial General Liability coverage. This 
change means that observer contractors are not required to carry a 
contractual endorsement on their Commercial General Liability policy 
but they could offer the contractual endorsement as an option to the 
entities with whom they have contracts.

Classification

    Pursuant to 5 U.S.C. 553 (b) (B), a rule may be issued without 
prior notice and opportunity for public comment if providing such 
notice and comment would be impractical, unnecessary, or contrary to 
the public interest. Additionally, a rule may be made effective prior 
to 30 days after its issuance if the rule relieves a restriction 
pursuant to 5 U.S.C. 553 (d) (1).
    This final rule accurately implements the original intent of the 
ITC and NMFS concerning standardized insurance coverage provisions for 
observer contractors. The Assistant Administrator for Fisheries, NOAA, 
(Assistant Administrator) finds that
    providing an opportunity for prior notice and comment on this rule 
is unnecessary. This rule does not eliminate the basic insurance 
requirement. Rather, by using the correct terminology, it merely 
clarifies the original intent to allow vessel owners and observer 
contractors to choose who pays for a particular type of endorsement. 
Furthermore, for parties who were previously required to purchase the 
endorsement, and who opt not to purchase that endorsement in the 
future, this rule will relieve a restriction. Accordingly, for the 
reasons set forth above, the Assistant Administrator finds good cause 
to dispense with prior notice and opportunity for public comment and to 
make this rule effective immediately upon publication in the Federal 
Register.
    Because prior notice and opportunity for public comment are not 
required for this rule by 5 U.S.C. 553, or any other law, the 
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 
et seq., are inapplicable.
    This rule has been determined to be not significant for purposes of 
E.O. 12866.

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: October 30, 1997.
David L. Evans,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For reasons set out in the preamble, 50 CFR part 679 is amended as 
follows:

PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA

    1. The authority citation for part 679 continues to read as 
follows:

    Authority: 16 U.S.C. 773 et seq., 1801 et seq., and 3631 et seq.

    2. In Sec. 679.50, paragraph (i)(2)(xiv)(E)(4) is revised to read 
as follows:


Sec. 679.50  Groundfish Observer Program applicable through December 
31, 1997.

* * * * *
    (i) * * *
    (2) * * *
    (xiv) * * *
    (E) * * *
    (4) Commercial General Liability.
* * * * * 
[FR Doc. 97-29507 Filed 11-6-97; 8:45 am]
BILLING CODE 3510-22-F