[Federal Register Volume 62, Number 215 (Thursday, November 6, 1997)]
[Proposed Rules]
[Pages 60060-60061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29382]


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

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration (NOAA)

50 CFR Part 679

[Docket No. 971015247-7247-01; I.D. 091597D]
RIN 0648-AK19


Fisheries in the Exclusive Economic Zone Off Alaska; Modify IFQ 
Survivorship Transfer Provisions

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

ACTION: Proposed rule.

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

SUMMARY: NMFS proposes a regulatory amendment to the Individual Fishing 
Quota (IFQ) Program for fixed gear Pacific halibut and sablefish 
fisheries in and off of Alaska. This action would modify the 
survivorship transfer provisions to allow heirs of deceased quota share 
(QS) or IFQ holders to receive such QS or IFQ by transfer and to 
transfer the resulting IFQs to any person eligible to receive IFQ for 
up to 3 years following the date of a QS holder's death. This action is 
necessary to extend survivorship privileges to other heirs in addition 
to surviving spouses and to allow such heirs to obtain pecuniary 
benefit from such IFQ. The intended effect of this action is to provide 
temporary financial relief for the heirs of QS holders.

DATES: Comments on the proposed rule and Regulatory Impact Review (RIR) 
must be received December 8, 1997.

ADDRESSES: Comments must be sent to the Chief, Fisheries Management 
Division, Alaska Region, NMFS, Room 453, 709 West 9th Street, Juneau, 
AK 99801, or P.O. Box 21668, Juneau, AK 99802, Attention: Lori J. 
Gravel.

FOR FURTHER INFORMATION CONTACT: James Hale, 907-586-7228.

SUPPLEMENTARY INFORMATION:

Background

    The fixed gear halibut and sablefish fisheries are managed by the 
IFQ Program, a limited access system for fixed gear Pacific halibut 
(Hippoglossus stenolepis) and sablefish (Anoplopoma fimbria) fisheries 
in and off of Alaska. Under authority of the Magnuson-Stevens Fishery 
Conservation and Management Act and the Northern Pacific Halibut Act of 
1982 (Halibut Act), NMFS implemented the IFQ Program in 1995, on the 
recommendation of the North Pacific Fishery Management Council 
(Council), to reduce excessive fishing capacity in the fixed gear 
Pacific halibut and sablefish fisheries, while maintaining the social 
and economic character of these fisheries and the Alaskan coastal 
communities where many of these fishermen are based.
    Restrictions in the IFQ Program foster the transfer of QS among 
fishermen qualified to fish the annual allocations of IFQ that QS 
generate. These restrictions are intended to discourage excessive 
consolidation and the acquisition of QS by investment speculators. 
Persons who are not qualified to receive IFQ may receive QS by 
transfer, but such QS would be restricted from generating IFQ that may 
be used to harvest IFQ halibut or sablefish.
    The Council's approved IFQ Program authorizes temporary exceptions 
to the transfer restrictions. In 1996, on the authority of the transfer 
provisions in the Fishery Management Plan for the Gulf of Alaska 
Groundfish Fishery and the Fishery Management Plan for the Bering Sea/
Aleutian Islands Groundfish, NMFS implemented an exception to the 
transfer restrictions that grants temporary transfer privileges to the 
spouse of a deceased QS holder who receives QS by right of 
survivorship, but is otherwise unqualified to harvest IFQ (61 FR 41523, 
August 9, 1996). The exception allows the surviving spouse who receives 
QS or IFQ, first, to transfer any of the current year's IFQ for the 
duration of the allocation year and, second, to lease the total annual 
allocations of IFQ resulting from the QS transferred by right of 
survivorship for 3 calendar years from the date of the death of the 
deceased holder of QS or IFQ (Sec. 679.41(k)(2)).
    In October 1996, the IFQ Industry Implementation Team recommended a 
proposal to extend the survivorship transfer provisions to heirs in a 
deceased QS holder's immediate family, in addition to a surviving 
spouse. In June 1997, the Council took final action to extend the 
survivorship transfer provisions to any individual who receives QS by 
right of survivorship.
    This action would benefit heirs who were not initially issued QS or 
who are not IFQ crew members. Without meeting those criteria, 
individuals who receive QS by right of survivorship would be otherwise 
ineligible to receive IFQ. The new provision would allow an individual 
who receives QS by right of survivorship to transfer, for up to 3 
years, the total IFQ resulting from that QS to anyone eligible to 
receive IFQ and thereby obtain pecuniary benefit from the QS for that 
period. The Council determined that 3 years would provide an heir with 
adequate time to resolve permanently any issues that may arise due to 
receiving QS or IFQ by right of survivorship, including subsequent 
transfers. Upon the death of a QS or IFQ holder, the Regional 
Administrator, upon application for transfer, would transfer QS or IFQ 
to an individual who demonstrates a right of succession to such QS or 
IFQ, through intestate or testate succession. The Regional 
Administrator, upon application for transfer, would transfer, for up to 
3 calendar years following the date of death of an individual QS 
holder, IFQ from an individual who received the originating QS through 
intestate or testate succession to any person eligible to receive IFQ.
    This action would also correct an error in the survivorship 
transfer regulations that resulted from the consolidation of 
regulations governing the EEZ off Alaska in 61 FR 31228 (June 19, 
1997). In the consolidation of the regulations, the reference to 
paragraph (g)(2) in Sec. 679.41(k) should have been revised to read 
(h)(2). This action would make the necessary revision to correct the 
oversight.

[[Page 60061]]

Classification

    This proposed rule contains a collection-of-information requirement 
subject to the Paperwork Reduction Act, clarifying a requirement that 
has previously been approved by OMB under Control Number 0648-0272. The 
proposed clarification states that a death certificate is one of the 
forms of substantiating evidence required upon the death of a quota 
share holder in order to transfer that quota share to an estate. The 
estimated response time for providing the substantiating evidence is 1 
hour per response, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information.
    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (d) ways 
to minimize the burden of the collection of information on respondents, 
including through the use of automated collection techniques or other 
forms of information technology. Send comments on these or any other 
aspects of the collection of information to NMFS/Alaska Region (see 
ADDRESSES), and to OMB at the Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, DC 20503 (Attn: 
NOAA Desk Officer).
    Notwithstanding any other provision of the law, no person is 
required to respond to, nor shall any 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.
    The proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    The Assistant General Counsel for Legislation and Regulation of the 
Department of Commerce certified to the Chief Counsel for Advocacy of 
the Small Business Administration that this proposed rule, if adopted, 
would not have a significant economic impact on a substantial number of 
small entities:

    The proposed change constitutes a minor regulatory amendment 
needed to extend the survivorship transfer provision (currently 
applicable to surviving spouses only) to heirs generally of a 
deceased quota share (QS) holder. This action would allow heirs who 
receive QS of Individual Fishing Quota (IFQ) by right of 
survivorship to transfer IFQ resulting from the inherited QS for 3 
years from the date of the deceased QS holder's death, 
notwithstanding the IFQ Program's restrictions on transfers of IFQ.
    This rule could potentially affect any small entity able to fish 
IFQ in the Alaska fisheries. Currently, 4,187 persons are eligible 
to fish IFQ in Alaska. Most of these are believed to be small 
entities. In addition, this rule could affect heirs of deceased QS 
holders. It is not possible to predict the extent to which such 
heirs might be considered small entities. Likewise, it is impossible 
to quantify the economic impact this proposed rule could have on 
small entities, because the impacts are speculative and depend on a 
variety of factors including the death of one or more current QS 
holders and the decision by one or more heirs to lease IFQ. However, 
to the extent that the proposed rule could impact small entities, 
the impact would be beneficial in that the result would be increased 
opportunity for leasing IFQ shares. Eligible fishermen who wanted to 
fish more shares would have increased opportunity to lease more 
shares, and heirs who otherwise would not be eligible to fish the 
IFQ would be able to recognize economic gain.

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

List of Subjects in 50 CFR Part 679

    Alaska, Fisheries, Reporting and recordkeeping requirements.

    Dated: October 31, 1997.
David L. Evans,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries 
Service.
    For the reasons set out in the preamble, 50 CFR Part 679 is 
proposed to be amended as follows:

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

    1. The authority citation for 50 CFR 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. 679.41, paragraph (k) is revised to read as follows:


Sec. 679.41  Transfer of QS and IFQ

* * * * *
    (k) Transfer to an heir.
    (1) Upon the death of a QS or IFQ holder, the Regional 
Administrator, upon application for transfer, will transfer QS or IFQ 
to an individual who demonstrates a right of succession to such QS or 
IFQ, through intestate or testate succession.
    (2) The Regional Administrator, upon application for transfer, will 
transfer, for up to 3 calendar years following the date of death of an 
individual QS holder, IFQ from an individual who received the 
originating QS through intestate or testate succession to a person 
eligible to receive IFQ under the provisions of this section, 
notwithstanding the limitations on the transfer of IFQ in paragraph 
(h)(2) of this section.
* * * * *
[FR Doc. 97-29382 Filed 11-3-97; 2:24 pm]
BILLING CODE 3510-22-F