76572 Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations

(188) * * *

(i) * * *

(D) * * *

(4) Rule 29 adopted on October 22,

1991.

* * * * *

(190) * * *

(i) * * *

(A) * * *

(3) Rule 24 adopted on September 15,

1992.

* * * * *

(193) * * *

(i) * * *

(E) Ventura County Air Pollution

Control District

(1) Rule 26.7 adopted on December

22, 1992.

* * * * *

(196) * * *

(i) * * *

(B) * * *

(2) Rule 15.1 adopted on October 12,

1993.

* * * * *

(225) * * *

(i) * * *

(G) * * *

(2) Rules 10, 11, 12, 13, 14, 15 and 16

adopted on June 13, 1995.

* * * * *

(241) * * *

(i) * * *

(C) * * *

(3) Rule 23 adopted on July 9, 1996.

* * * * *

(255) * * *

(i) * * *

(G) Ventura County Air Pollution

Control District.

(1) Rules 26.1, 26.2, 26.3, 26.4, 26.5,

26.6 and 26.10 adopted on January 13,

1998.

* * * * *

[FR Doc. 00–31050 Filed 12–6–00; 8:45 am]

BILLING CODE 6560–60–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Part 67

[USCG–1999–6095]

RIN 2115–AF88

Citizenship Standards for Vessel

Ownership and Financing; American

Fisheries Act

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The Coast Guard amends

citizenship requirements for fishing

vessels of less than 100 feet in length

that are eligible for a fishery

endorsement, by increasing the

percentage of interest in a vessel

required to be owned and controlled by

U.S. citizens in corporations. The

percentage increased is from more than

50 percent to at least 75 percent. We add

provisions making fishery endorsements

of documented fishing vessels chartered

or leased to a person who is not a

citizen or to an entity which is ineligible

to own a documented fishing vessel

invalid. We also prohibit fishery

endorsement for a fishing vessel

mortgaged to a trustee if the mortgage

interest is issued, assigned, transferred,

or held in trust for a person not eligible

to own a documented fishing vessel,

even if the trustee is eligible to own a

documented fishing vessel.

DATES: This final rule becomes effective

on October 1, 2001.

ADDRESSES: Comments and material

received from the public, as well as

documents mentioned in this preamble

as being available in the docket, are part

of docket USCG–1999–6095 and are

available for inspection or copying at

the Docket Management Facility, U.S.

Department of Transportation, room PL–

401, 400 Seventh Street SW.,

Washington, DC, between 9 a.m. and 5

p.m., Monday through Friday, except

Federal holidays. You may also find this

docket on the Internet at http://

dms.dot.gov.

FOR FURTHER INFORMATION CONTACT: If

you have questions on this rule, call

Patricia J. Williams, Coast Guard,

telephone 304–271–2400. If you have

questions on viewing the docket, call

Dorothy Beard, Chief, Dockets,

Department of Transportation,

telephone 202–366–9329.

SUPPLEMENTARY INFORMATION:

Regulatory History

On July 27, 2000, we published a

notice of proposed rulemaking entitled

Citizenship Standards for Vessel

Ownership and Financing; American

Fisheries Act [USCG–1999–6095] in the

Federal Register (65 FR 46137). No

public hearing was requested and none

was held.

Background and Purpose

For reasons and purposes as

discussed in the NPRM the Coast Guard

amends its fishery endorsement

regulations as mandated by the 105th

U.S. Congress (Pub. L. 105–277)

outlining fishery endorsement eligibility

for fishing vessels less than 100 feet in

length. The American Fisheries Act

(AFA) requires a real, effective, and

enforceable U.S. ownership threshold

for U.S.-flag fishing vessels. Under this

Act, U.S. citizens must own and control

at least 75 percent of the ownership

interest in any U.S.-flag fishing vessel.

The Act is intended to ensure that

vessels with a fishery endorsement are

truly controlled by citizens of the

United States. The Act also increases

the penalties for fishery endorsement

violations and is intended to discourage

willful noncompliance with the new

requirements.

Discussion of Comments and Changes

The Coast Guard received 12

comments from two respondents

addressing the proposed changes to the

citizenship requirements for U.S.-flag

fishing vessels with a fishery

endorsement. Each respondent

highlighted several different items

within the proposed rule.

One comment felt that the proposed

change to § 67.11 goes too far by

eliminating the fishing vessel exemption

on selling, mortgaging, leasing,

chartering, delivering, or otherwise

transferring of the vessel to a non-U.S.

citizen without the prior approval of the

Maritime Administration. The Coast

Guard agrees. Our initial intent was to

ensure full compliance with the

American Fisheries Act and to ensure

there is no confusion among the

regulated community. By removing

paragraphs (b)(1) and (b)(3) we

inadvertently exceeded the scope of the

mandate. We have added a paragraph (c)

to this section that clarifies vessels less

than 100 feet must comply with the

Fishery Endorsement requirements of

the part, and vessels 100 feet and greater

must comply with the requirements

found in 46 CFR part 356.

Both respondents stated our proposed

restrictions on chartering should apply

only to fish harvesting vessels, and not

to fish processing or fish tender vessels.

We have reviewed the issue, as well as

the regulations applicable to larger

vessels, implemented by the Maritime

Administration (MARAD), the agency

with the authority of administering the

AFA on vessels greater than or equal to

100 feet in length. We have determined

that the regulations regarding chartering

of vessels less than 100 feet should be

the same as those regarding larger

vessels. Thus, we have added language

to § 67.21(d)(3) that will not restrict time

or voyage charters to Non-Citizens of

dedicated Fish Processing or Fish

Tender Vessels. This change will bring

the regulations for vessels less than 100

feet into symmetry with the regulations

for larger vessels, while still

invalidating fishery endorsements

whenever a fish harvesting vessel is

chartered to a Non-Citizen. Bareboat

charters of any fishing industry vessel to

Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations 76573

Non-Citizens will also invalidate the

vessel’s fishery endorsement.

Both respondents questioned the

efficiency of having the Commandant

review and approve every loan by a

Non-Citizen that is secured by a

mortgage, regardless of vessel length.

Both suggested that the Coast Guard

accept arrangements approved by

MARAD for vessels greater than or equal

to 100 feet. This has always been the

intent of the Coast Guard. We have

added to 46 CFR 67.21(f) in order to

clarify this intent and prevent confusion

among the regulated industry.

Additionally, we are adding language to

that same section that will allow owners

of vessels less than 100 feet to presume

Commandant approval of standard loan

and mortgage agreements from NonCitizen lenders, that have received

general approval under MARAD’s

regulations. For those vessels under 100

feet that are entering into non-standard

loan and mortgage agreements with

Non-Citizen lenders, Commandant

approval will proceed on a case-by-case

basis.

One comment raised a concern that

redefining ‘‘control’’ in § 67.31 ‘‘Stock

or equity interest requirements’’ would

unnecessarily subject non-fishing

industry vessels to the more stringent

requirements included in the AFA. The

Coast Guard agrees with this comment.

In order to ensure the AFA definition of

control is not applied to non-fishing

industry vessels, we have split the

definition into §§ 67.31(b) and (c), and

moved the current § 67.31(c) to

§ 67.31(d).

Both respondents noted that certain

larger vessels that were ‘‘grandfathered’’

by the AFA have been given a 15-day

period to correct an invalid fishery

endorsement. MARAD spelled out the

procedures for such a correction in 46

CFR 356.47(b). We did not address the

issue in our proposed regulations

because we no longer have authority

over these vessels. However, it has

always been our intention to accept a

determination by MARAD that a

correction had occurred, and thus

continue to recognize a vessel’s fishery

endorsement. Additionally, the Coast

Guard plans to work closely with the

Maritime Administration to ensure that

notification of a vessel’s fishery

endorsement ineligibility takes place in

a timely and uniform manner.

Both respondents noted that our

proposed changes did not include

reference to the five vessels specifically

granted exemptions by Congress in

section 203(g) of the AFA. These vessels

were not included in our proposal

because they are all over 100 feet in

length, and thus outside of our

authority. MARAD listed these vessels

in 46 CFR 356.51(c) as exempt from the

AFA requirements. All are eligible for

documentation.

One comment expressed confusion

regarding the application procedures

outlined in § 67.141. The regulation

requires that all vessels, regardless of

length, submit certain materials for

documentation. This includes the

citizenship oath on the CG–1258

documentation application form.

Vessels greater than or equal to 100 feet

in length must also meet the

requirements MARAD has established

in 46 CFR part 356, subpart C, including

the more extensive citizenship affidavit.

Vessels not under MARAD’s jurisdiction

(less than 100 feet in length) do not

need to complete the more extensive

form.

One comment noted, as a technicality,

that the term ‘‘Exclusive Economic

Zone’’ was not being used consistently

in our proposed rule. We have made the

necessary changes in §§ 67.142(b)(3) and

67.142(c) to ensure consistent usage.

The Coast Guard made two additional

changes from the proposed language. In

§ 67.350, we reworded paragraph (b)(1)

in order to clarify the evidence needed

to obtain a petition for an exemption

from the citizenship requirements. This

language change does not affect the

substance of the rule; it clarifies that the

required evidence must show the

ownership of the vessel as of October 1,

2001, whether you are submitting your

petition before, on, or after that date.

In § 67.21 we re-designated proposed

paragraph (e) as paragraph (f), and

added a new paragraph (e) exempting

vessels engaged in the fisheries in the

exclusive economic zone (EEZ) under

the authority of the Western Pacific

Fishery Management Council, and

certain vessels operating under the

authority of the South Pacific Regional

Fisheries Treaty, as set forth in the

American Fisheries Act. We did not

include this provision in the NPRM

because a review of vessels under the

authority of the Council and Treaty

showed all such vessels to be greater

than 100 feet and therefore outside our

authority. We now include this

provision to ensure full compliance

with the American Fisheries Act and to

ensure there is no confusion among the

regulated community.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

Order. The Office of Management and

Budget has not reviewed it under that

Order. It is not ‘‘significant’’ under the

regulatory policies and procedures of

the Department of Transportation

(DOT)(44 FR 11040, February 26, 1979).

We expect the economic impact of this

rule to be so minimal that a full

Regulatory Evaluation under paragraph

10e of the regulatory policies and

procedures of DOT is unnecessary.

The Marine Safety Management

System (MSMS) shows that about

36,000 vessels have fishery

endorsements. This regulation impacts

documented vessels with fishery

endorsements that are less than 100 feet.

About 35,500 vessels with fishery

endorsements are less than 100 feet. Of

these, we researched a random sample

of 1,010 vessels in order to achieve a 95

percent confidence level. We found that

the change to minimum U.S. ownership

requirements from ‘‘more than 50

percent’’ to ‘‘at least 75 percent’’ affects

one of the vessels in the random sample.

This means that 0.099 percent of the

random sample do not meet the

requirement. The margin of error is plus

or minus 3.04 percent. Applying this

percentage to the population, we expect

that the owner of 35 vessels will not

meet the change in owner citizenship

requirement if current ownership levels

in each company remain the same

(0.099 percent of 35,500 vessels).

In the random sample, there are 843

vessels (83 percent of the affected

population) that are owned by

individual persons and 167 vessels (17

percent of the affected population) that

are owned by corporations or

companies. All individual owners are

already required to be U.S. citizens in

order to document a vessel. Therefore,

these vessels and individuals are

considered to meet the citizenship

requirement, and have 100 percent U.S.

ownership. Corporations, partnerships

or limited liability companies are

required to attest to the level of

ownership by U.S. citizens by checking

a box in the application for

documentation. The ‘‘Application for

Initial Issue, Exchange, or Replacement

of Certificate of Documentation;

Redocumentation’’ (CG–1258 (REV.9–

97)) has four choices for reporting the

level of ownership by U.S. citizens in a

corporation. The choices are: less than

50 percent, at least 50 percent, more

than 50 percent but less than 75 percent,

and 75 percent or more. One hundred

sixty six (166) corporations certified that

the ownership level by U.S. citizens is

75 percent or more. One certified that its

corporation’s percentage of stock owned

by U.S. citizens who are eligible to

document vessels was more than 50

percent but less than 75 percent.

76574 Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations

Costs: For further analysis, we assume

that the 35 adversely affected vessel

owners have more than 50 but less than

75 percent of stock owned by U.S.

citizens. We further assume that each

vessel owner prefers to continue fishing

in the Exclusive Economic Zone of the

United States. Therefore, we expect

each vessel owning company will make

changes to its U.S. ownership level. The

change of U.S. ownership level could

entail the following: adding an

additional investor, selling stock to U.S.

citizens, adding a partner, or removing

a partner.

Once each vessel owning company

has met the ownership criteria, the

vessel’s fishery endorsement will be

renewed, as it will be in any other year.

Thus, the cost of this rulemaking is

directly associated with the change of

U.S. ownership level made by each of

the 35 vessel owning companies. We

assume that each company will hire a

law firm to complete the articles of

incorporation or any other documents

needed to reflect the changes to the

ownership levels, and that the law firm

will charge about $600 for its services.

The one time cost of changing the

ownership structure for the 35

companies is $21,000.

We do not expect the restriction to

leases and charters by non-U.S. citizens

to impact any vessel owners. Similarly,

we do not expect the restriction on

foreign controlled mortgages to impact

any vessels. Therefore, these regulations

cause no additional cost to vessel

owners, operators, or managers.

Benefits: The changes in the law

necessitate this rulemaking. The

regulation gives U.S. citizens a higher

level of ownership in the vessels that

harvest fish in the U.S. Exclusive

Economic Zone. Consequently, more of

the profits from the fishery industry will

accrue to U.S. citizens.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601–612), we considered

whether this proposed rule will have a

significant impact on a substantial

number of small entities. The term

‘‘small entities’’ comprises small

businesses, not-for-profit organizations

that are independently owned and

operated and are not dominant in their

fields, and governmental jurisdictions

with populations of less than 50,000.

This rule impacts the owners of about

35,500 vessels that are documented with

fishery endorsements. These vessels are

less than 100 feet in length, and we

considered each one to be owned by a

small entity. As shown by the sample

statistics, we expect 35 entities to be

adversely affected by the rulemaking.

We do not consider the number of

adversely affected entities to be a

substantial number for they represent

0.099 percent of all entities that would

have to comply with the requirements.

The Small Business Administration

has determined that the size standard

for small businesses involved in the

fishing industry is $3 million in annual

revenues (Standard Industry Codes

0912, 0913, 0919, and 0921). The

imposed burden of $600 represents 0.02

percent for entities with $3 million in

annual revenues. For entities with

$60,000 and $30,000 in annual

revenues, the burden represents 1

percent and 2 percent of annual

revenues, respectively. We do not

consider this cost to create a significant

economic impact on the affected

entities.

Therefore, the Coast Guard certifies

under 5 U.S.C. 605(b) that this final rule

will not have a significant economic

impact on a substantial number of small

entities.

Assistance for Small Entities

Under section 213(a) of the Small

Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121),

we offered to assist small entities in

understanding the rule so that they

could better evaluate its effects on them

and participate in the rulemaking.

Small businesses may send comments

on the actions of Federal employees

who enforce, or otherwise determine

compliance with, Federal regulations to

the Small Business and Agriculture

Regulatory Enforcement Ombudsman

and the Regional Small Business

Regulatory Fairness Boards. The

Ombudsman evaluates these actions

annually and rates each agency’s

responsiveness to small business. If you

wish to comment on actions by

employees of the Coast Guard, call 1–

888-REG-FAIR (1–888–734–3247).

Collection of Information

This rule calls for a new collection of

information under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501–

3520). This rulemaking adds a new

collection of information burden to

companies that no longer meet the

threshold of at least 75 percent

ownership by U.S. citizens. This

regulation allows these companies to

apply for an exemption from the 75

percent U.S. ownership level. The

application and related submissions

comprise a new collection of

information burden.

We presented an estimate of the

burden this rulemaking will cause for

public comment in the NPRM. No

comments were received regarding the

collection of information, and we

perceive this to mean acceptance of the

burden by the public.

The information collection

requirements of the rule are addressed

in the previously approved OMB

collection titled ‘‘Vessel

Documentation’’ (OMB 2115–0110).

As required by 44 U.S.C. 3507(d), we

submitted a copy of this rule to the

Office of Management and Budget

(OMB) for its review of the collection of

information. OMB has not approved the

collection, and we will publish its

approval when it occurs. The section

numbers are §§ 67.350 and 67.352.

You are not required to respond to a

collection of information unless it

displays a currently valid OMB control

number.

Federalism

We have analyzed this rulemaking in

accordance with the principles and

criteria contained in E.O. 13132,

(‘‘Federalism’’) and have determined

that it does not have sufficient

federalism implications to warrant the

preparation of a federalism summary

impact statement. The regulations have

no substantial effects on the States, or

on the current Federal-State relationship

or on the current distribution of power

and responsibilities among various local

officials. Therefore, consultation with

the State and local officials was not

necessary.

Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act

of 1995 (2 U.S.C. 1531–1538) requires

Federal agencies to assess the effects of

their regulatory actions not specifically

required by law. In particular, the Act

addresses actions that may result in the

expenditure by a State, local, or tribal

government, in the aggregate, or by the

private sector of $100,000,000 or more

in any one year. Though this rule will

not result in such an expenditure, we do

discuss the effects of this rule elsewhere

in this preamble.

Taking of Private Property

This rule will not effect a taking of

private property or otherwise have

taking implications under Executive

Order 12630, Governmental Actions and

Interference with Constitutionally

Protected Property Rights.

Civil Justice Reform

This rule meets applicable standards

in sections 3(a) and 3(b)(2) of Executive

Order 12988, Civil Justice Reform, to

minimize litigation, eliminate

ambiguity, and reduce burden.

Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations 76575

Protection of Children

We have analyzed this rule under

Executive Order 13045, Protection of

Children from Environmental Health

Risks and Safety Risks. This rule is not

an economically significant rule and

does not concern an environmental risk

to health or risk to safety that may

disproportionately affect children.

Environment

We considered the environmental

impact of this rule and concluded that

preparation of an Environmental Impact

Statement is not necessary. An

Environmental Assessment and a

Finding of No Significant Impact are

available in the docket where indicated

under ADDRESSES.

List of Subjects in 46 CFR Part 67

Citizenship; Fishery endorsements,

Fishing vessels, Mortgages, Penalties,

Vessel Documentation.

For the reasons discussed in the

preamble, the Coast Guard amends 46

CFR part 67 as follows:

PART 67—DOCUMENTATION OF

VESSELS

1. The authority citation for part 67

continues to read as follows:

Authority: 14 U.S.C. 664; 31 U.S.C. 9701;

42 U.S.C 9118; 46 U.S.C. 2103, 2107, 2110,

10102; 46 U.S.C. app. 841a, 876; 49 CFR 1.45,

1.46.

2. Amend § 67.11 by adding

paragraph (c) to read as follows:

§ 67.11 Restriction on transfer of an

interest in documented vessels to foreign

persons; foreign registry or operation.

* * * * *

(c) The exemption in paragraph (b) of

this section does not relieve all vessels

from meeting the fishery endorsement

requirements of this part. If your vessel

is less than 100 feet in length and is a

fishing vessel, fish processing vessel, or

fish tender vessel as defined in 46

U.S.C. 2101, you must meet the fishery

endorsement requirements set out in

this part. Each vessel 100 feet and

greater in length applying for a fishery

endorsement is regulated by the

Maritime Administration requirements

found in 46 CFR part 356.

* * * * *

3. Amend § 67.21 by revising

paragraph (d) and adding paragraphs (e)

and (f) to read as follows:

§ 67.21 Fishery endorsement.

* * * * *

(d) A vessel otherwise eligible for a

fishery endorsement under paragraph

(b) of this section loses that eligibility

during any period in which it is:

(1) Owned by a partnership which

does not meet the requisite citizenship

requirements of § 67.35(b);

(2) Owned by a corporation which

does not meet the citizenship

requirements of § 67.39(b); or

(3) Chartered or leased to an

individual who is not a citizen of the

United States or to an entity that is not

eligible to own a vessel with a fishery

endorsement, except that time charters,

voyage charters and other charters that

are not a demise of the vessel may be

entered into with Non-Citizens for the

charter of dedicated Fish Tender Vessels

and Fish Processing Vessels that are not

engaged in the harvesting of fish or

fishery resources without the vessel

losing its eligibility for a fishery

endorsement.

(e) A vessel operating with a fishery

endorsement on October 1, 1998, under

the authority of the Western Pacific

Fishery Management Council, or a purse

seine vessel engaged in tuna fishing

outside of the EEZ of the United States

or pursuant to the South Pacific

Regional Fisheries Treaty may continue

to operate as set out in 46 U.S.C.

12102(c)(5), provided that the owner of

the vessel continues to comply with the

fishery endorsement requirements that

were in effect on October 1, 1998.

(f) An individual or entity that is

otherwise eligible to own a vessel with

a fishery endorsement shall be ineligible

if an instrument or evidence of

indebtedness, secured by a mortgage of

the vessel, to a trustee eligible to own

a vessel with a fishery endorsement is

issued, assigned, transferred, or held in

trust for a person not eligible to own a

vessel with a fishery endorsement,

unless the Commandant determines that

the issuance, assignment, transfer, or

trust arrangement does not result in an

impermissible transfer of control of the

vessel and that the trustee:

(1) Is organized as a corporation that

meets § 67.39(b) of this part, and is

doing business under the laws of the

United States or of a State;

(2) Is authorized under those laws to

exercise corporate trust powers which

meet § 67.36(b) of this part;

(3) Is subject to supervision or

examination by an official of the United

States Government or a State;

(4) Has a combined capital and

surplus (as stated in its most recent

published report of condition) of at least

$3,000,000; and

(5) Meets any other requirements

prescribed by the Commandant.

For vessels greater than or equal to

100 feet in length, approval of such an

arrangement from the Maritime

Administration will be accepted as

evidence that the above conditions are

met and will be approved by the

Commandant. For vessels less than 100

feet, a standard loan and mortgage

agreement that has received general

approval under 46 CFR 356.21 will be

accepted as evidence that the above

conditions are met and will be approved

by the Commandant.

4. Revise §§ 67.31(b) and (c), and add

§ 67.31(d) to read as follows:

§ 67.31 Stock or equity interest

requirements.

* * * * *

(b) For the purpose of stock or equity

interest requirements for citizenship

under this subpart, control of nonfishing industry vessels includes an

absolute right to: Direct corporate or

partnership business; limit the actions

of or replace the chief executive officer,

a majority of the board of directors, or

any general partner; direct the transfer

or operations of any vessel owned by

the corporation or partnership; or

otherwise exercise authority over the

business of the corporation or

partnership. Control does not include

the right to simply participate in these

activities or the right to receive a

financial return, e.g., interest or the

equivalent of interest on a loan or other

financing obligations.

(c) For the purpose of this section,

control of a fishing industry vessel

means having:

(1) The right to direct the business of

the entity that owns the vessel;

(2) The right to limit the actions of or

to replace the chief executive officer, the

majority of the board of directors, any

general partner, or any person serving in

a management capacity of the entity that

owns the vessel;

(3) The right to direct the transfer, the

operation, or the meaning of a vessel

with a fishery endorsement.

(d) For purposes of meeting the stock

or equity interest requirements for

citizenship under this subpart where

title to a vessel is held by an entity

comprised, in whole or in part, of other

entities which are not individuals, each

entity contributing to the stock or equity

interest qualifications of the entity

holding title must be a citizen eligible

to document vessels in its own right

with the trade endorsement sought.

5. In § 67.35, revise the introductory

text and paragraph (b) to read as

follows:

§ 67.35 Partnership.

A partnership meets citizenship

requirements if all its general partners

are citizens, and:

* * * * *

(b) For the purpose of obtaining a

fishery endorsement, at least 75 percent

76576 Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations

of the equity interest in the partnership,

at each tier of the partnership and in the

aggregate, is owned by citizens.

* * * * *

6. Amend § 67.36 by revising the

introductory text of paragraphs (a), (b),

and (c) and by revising paragraph (b)(2)

to read as follows:

§ 67.36 Trust.

(a) For the purpose of obtaining a

registry or recreational endorsement, a

trust arrangement meets citizenship

requirements if:

* * * * *

(b) For the purpose of obtaining a

fishery endorsement, a trust

arrangement meets citizenship

requirements if:

* * * * *

(2) At least 75 percent of the equity

interest in the trust, at each tier of the

trust and in the aggregate, is owned by

citizens.

(c) For the purpose of obtaining a

coastwise or Great Lake endorsement or

both, a trust arrangement meets

citizenship requirements if:

* * * * *

7. Revise § 67.37 to read as follows:

§ 67.37 Association or joint venture.

(a) An association meets citizenship

requirements if each of its members is

a citizen.

(b) A joint venture meets citizenship

requirements if each of its members is

a citizen.

8. Revise § 67.39 by revising the

introductory text of paragraphs (a), (b),

and (c) and by revising paragraph (b)(2)

to read as follows:

§ 67.39 Corporation.

(a) For the purpose of obtaining a

registry or a recreational endorsement, a

corporation meets citizenship

requirements if:

* * * * *

(b) For the purpose of obtaining a

fishery endorsement, a corporation

meets citizenship requirements if:

* * * * *

(2) At least 75 percent of the stock

interest in the corporation, at each tier

of the corporation and in the aggregate,

is owned by citizens.

(c) For the purpose of obtaining a

coastwise or Great Lakes endorsement

or both, a corporation meets citizenship

requirements if:

* * * * *

9. Remove § 67.45.

§ 67.45 [Removed]

10. Amend § 67.141 by revising

paragraph (b) and adding paragraph (c)

to read as follows:

§ 67.141 Application procedure; all cases.

* * * * *

(b) Each vessel 100 feet and greater in

length applying for a fishery

endorsement must meet the

requirements of 46 CFR part 356 and

must submit materials required in

paragraph (a) of this section.

(c) Upon receipt of the Certification of

Documentation and prior to operation of

the vessel, ensure that the vessel is

marked in accordance with the

requirements set forth in subpart I of

this part.

11. Add § 67.142 to read as follows:

§ 67.142 Penalties.

(a) An owner or operator of a vessel

with a fishery endorsement who violates

Chapter 121 of Title 46, U.S. Code or

any regulation issued thereunder is

liable to the United States Government

for a civil penalty of not more than

$10,000. Each day of a continuing

violation is a separate violation.

(b) A fishing vessel and its equipment

are liable to seizure and forfeiture to the

United States Government—

(1) When the owner of the fishing

vessel, or the representative or agent of

the owner, knowingly falsifies

applicable information or knowingly

conceals a material fact during the

application process for or application

process to renew a fishery endorsement

of the vessel;

(2) When the owner of the fishing

vessel, or the representative or agent of

the owner, knowingly and fraudulently

uses a vessel’s certificate of

documentation;

(3) When the fishing vessel engages in

fishing [as such term is defined in

section 3 of the Magnuson-Stevens

Fishery Conservation and Management

Act (16 U.S.C. 1802)] within the

Exclusive Economic Zone after its

fishery endorsement has been denied or

revoked;

(4) When a vessel is employed in a

trade without an appropriate trade

endorsement;

(5) When a documented vessel with

only a recreational endorsement

operates as a fishing vessel; or

(6) When a vessel with a fishery

endorsement is commanded by a person

who is not a citizen of the United States.

(c) In addition to penalties under

paragraphs (a) and (b) of this section,

the owner of a vessel with a fishery

endorsement is liable to the United

States Government for a civil penalty of

up to $100,000 for each day in which

the vessel has engaged in fishing within

the Exclusive Economic Zone, if the

owner of the fishing vessel, or the

representative or agent of the owner,

knowingly falsifies applicable

information or knowingly conceals a

material fact during the application

process for or application process to

renew a fishery endorsement of the

vessel.

12. Revise § 67.233(b) to read as

follows:

§ 67.233 Restrictions on recording

mortgages, preferred mortgages, and

related instruments.

* * * * *

(b) A mortgage of a vessel 100 feet or

greater in length applying for a fishery

endorsement is eligible for filing and

recording as a preferred mortgage only

if it meets the requirements of this part

and the requirements of 46 CFR 356.19.

* * * * *

13. Add subpart V to read as follows:

Subpart V—Exemption From Fishery

Endorsement Requirements Due to Conflict

With International Agreements

Sec.

67.350 Conflicts with international

agreements.

67.352 Applicability.

Subpart V—Exception From Fishery

Endorsement Requirements Due to

Conflict With International Agreements

§ 67.350 Conflicts with international

agreements.

(a) If you are an owner or mortgagee

of a fishing vessel less than 100 feet in

length and believe that there is a

conflict between 46 CFR part 67 and any

international treaty or agreement to

which the United States is a party on

October 1, 2001, and to which the

United States is currently a party, you

may petition the National Vessel

Documentation Center (NVDC) for a

ruling that all or sections of part 67 do

not apply to you with respect to a

particular vessel, provided that you had

an ownership interest in the vessel or a

mortgage on the vessel on October 1,

2001. You may file your petition with

the NVDC before October 1, 2001, with

respect to international treaties or

agreements in effect at the time of your

petition which are not scheduled to

expire before October 1, 2001.

(b) If you are filing a petition for

exemption with the NVDC for reasons

stated in paragraph (a) of this section,

your petition must include:

(1) Evidence of the ownership

structure of the vessel petitioning for an

exemption as of October 1, 2001, and

any subsequent changes to the

ownership structure of the vessel;

(i) If you are filing your petition

before October 1, 2001, you may

substitute evidence of the ownership

structure as it exists on the date you file

your petition;

Federal Register / Vol. 65, No. 236 / Thursday, December 7, 2000 / Rules and Regulations 76577

(2) A copy of the provisions of the

international agreement or treaty that

you believe is in conflict with this part;

(3) A detailed description of how the

provisions of the international

agreement or treaty conflict with this

part;

(4) For all petitions filed before

October 1, 2001, a certification that the

owner intends to transfer no ownership

interest in the vessel to a non-U.S.

citizen for the following year.

(5) For all petitions filed after October

1, 2001, a certification that no

ownership interest was transferred to a

non-U.S. citizen after September 30,

2001.

(c) You must file a separate petition

for each vessel requiring an exemption

unless the NVDC authorizes

consolidated filing. Petitions should

include two copies of all required

materials and should be sent to the

following address: National Vessel

Documentation Center, 792 TJ Jackson

Drive, Falling Water, West Virginia,

25419.

(d) Upon receipt of a complete

petition, the NVDC will review the

petition to determine whether the

effective international treaty or

agreement and the requirements of this

part are in conflict. If the NVDC

determines that this part conflicts with

the effective international treaty or

agreement, then the NVDC will inform

you of the guidelines and requirements

you must meet and maintain to qualify

for a fisheries endorsement.

(e) If the vessel is determined through

the petition process to be exempt from

all or sections of the requirements of

this part, then you must annually, from

the date of exemption, submit the

following evidence of its ownership

structure to the NVDC:

(1) The vessel’s current ownership

structure;

(2) The identity of all non-citizen

owners and the percentages of their

ownership interest in the vessel;

(3) Any changes in the ownership

structure that have occurred since you

last submitted evidence of the vessel’s

ownership structure to the NVDC; and

(4) A statement ensuring that no

interest in the vessel was transferred to

a non-citizen during the previous year.

§ 67.352 Applicability.

The exemption in this subpart shall

not be available to:

(a) Owners and mortgagees of a

fishing vessel less than 100 feet in

length who acquired an interest in the

vessel after October 1, 2001; or

(b) Owners of a fishing vessel less

than 100 feet in length, if any ownership

interest in that vessel is transferred to or

otherwise acquired by a non-U.S. citizen

after October 1, 2001.

Dated: November 22, 2000.

Joseph J. Angelo,

Acting Assistant Commandant for Marine

Safety and Environmental Protection.

[FR Doc. 00–31094 Filed 12–6–00; 8:45 am]

BILLING CODE 4910–15–U

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric

Administration

50 CFR Part 648

[Docket No. 000119014-0137-02; I.D.

113000E]

Fisheries of the Northeastern United

States; Summer Flounder Fishery;

Commercial Quota Harvested for

Virginia

AGENCY: National Marine Fisheries

Service (NMFS), National Oceanic and

Atmospheric Administration (NOAA),

Commerce.

ACTION: Commercial quota harvest.

SUMMARY: NMFS announces that the

summer flounder commercial quota

available to the State of Virginia has

been harvested. Vessels issued a

commercial Federal fisheries permit for

the summer flounder fishery may not

land summer flounder in Virginia for

the remainder of calendar year 2000,

unless additional quota becomes

available through a transfer. Regulations

governing the summer flounder fishery

require publication of this notification

to advise the State of Virginia that the

quota has been harvested and to advise

vessel permit holders and dealer permit

holders that no commercial quota is

available for landing summer flounder

in Virginia.

DATES: Effective 0001 hours, December

7, 2000, through 2400 hours, December

31, 2000.

FOR FURTHER INFORMATION CONTACT: Paul

H. Jones, Fishery Policy Analyst, (978)

281-9273.

SUPPLEMENTARY INFORMATION:

Regulations governing the summer

flounder fishery are found at 50 CFR

part 648. The regulations require annual

specification of a commercial quota that

is apportioned on a percentage basis

among the coastal states from North

Carolina through Maine. The process to

set the annual commercial quota and the

percent allocated to each state is

described in § 648.100.

The initial total commercial quota for

summer flounder for the 2000 calendar

year was set equal to 11,109,214 lb

(5,039,055 kg)(65 FR 33486, May 24,

2000). The percent allocated to vessels

landing summer flounder in Virginia is

21.31676 percent, or 2,368,546 lb

(1,074,354 kg).

Section 648.100(e)(4) stipulates that

any overages of commercial quota

landed in any state be deducted from

that state’s annual quota for the

following year. In the calendar year

1999, a total of 2,130,553 lb (966,403 kg)

were landed in Virginia, creating a 9,857

lb (4,471 kg) overage that was deducted

from the amount allocated for landings

in the State during 2000 (65 FR 33486,

May 24, 2000). The resulting 2000 quota

for Virginia is 2,358,689 lb (1,069,883

kg).

Section 648.101(b) requires the

Administrator, Northeast Region, NMFS

(Regional Administrator) to monitor

state commercial quotas and to

determine when a state’s commercial

quota is harvested. The Regional

Administrator is further required to

publish a notification in the Federal

Register advising a state and notifying

Federal vessel and dealer permit holders

that, effective upon a specific date, the

state’s commercial quota has been

harvested and no commercial quota is

available for landing summer flounder

in that state. The Regional

Administrator has determined, based

upon dealer reports and other available

information, that the State of Virginia

has attained its quota for 2000.

The regulations at § 648.4(b) provide

that Federal permit holders agree as a

condition of the permit not to land

summer flounder in any state that the

Regional Administrator has determined

no longer has commercial quota

available. Therefore, effective 0001

hours, December 7, 2000, further

landings of summer flounder in Virginia

by vessels holding summer flounder

commercial Federal fisheries permits

are prohibited for the remainder of the

2000 calendar year, unless additional

quota becomes available through a

transfer and is announced in the

Federal Register. Effective 0001 hours,

December 7, 2000, federally permitted

dealers are also advised that they may

not purchase summer flounder from

federally permitted vessels that land in

Virginia for the remainder of the

calendar year, or until additional quota

becomes available through a transfer.

Classification

This action is required by 50 CFR part

648 and is exempt from review under

E.O. 12866.