50366 Federal Register / Vol. 82, No. 209 / Tuesday, October 31, 2017 / Proposed Rules 

(i) The Council may submit an 

explanation to NMFS, in writing, as to 

why the availability of financing for 

harvesting rights in a fishery would 

harm the achievement of the goals and 

objectives of the Fishery Management 

Plan applicable to the fishery. If NMFS 

accepts the Council’s reasoning, 

harvesting rights loans will not be 

provided, or will cease to be provided, 

in that fishery. 

(ii) If NMFS determines that 

harvesting rights loans will not be 

provided in a fishery, NMFS will 

publish a notice in the Federal Register 

notifying the public that new loans will 

not be made in that fishery. 

(iii) In such a scenario, pending 

applications will be returned and loan 

fees returned as exceptional 

circumstances justify the action. 

(3) The harvesting rights to be 

financed must be issued in a manner in 

which they can be individually 

identified such that a valid and specific 

security interest can be recorded. This 

determination shall be solely made by 

the Program. 

(c) Refinancing. (1) The Program may 

refinance any existing debts associated 

with harvesting rights a borrower 

currently holds, provided that: 

(i) The harvesting rights being 

refinanced would have been eligible for 

Program financing at the time the 

borrower purchased them, if Program 

financing had been available, 

(ii) The borrower meets all other 

applicable lending requirements, and 

(iii) The refinancing is in an amount 

up to 80 percent of the harvesting rights’ 

current market value, as determined at 

the sole discretion of the Program, and 

subject to the limitation that the 

Program will not disburse any amount 

that exceeds the outstanding principal 

balance, plus accrued interest (if any), of 

the existing harvesting rights’ debt being 

refinanced or its fair market value, 

whichever is less. 

(2) In the event that the current 

market value of harvesting rights and 

principal loan balance do not meet the 

80 percent requirement in paragraph 

(1)(iii) of this section, borrowers seeking 

refinancing may be required to provide 

additional down payment. 

(d) Maturity. Loan maturity may not 

exceed 25 years, but may be shorter 

depending on credit and other 

considerations. 

(e) Repayment. Repayment will be by 

equal quarterly installments of principal 

and interest. 

(f) Security. Although harvesting 

right(s) will be the primary collateral for 

a loan, the Program may require 

additional security pledges to maintain 

the priority of the Program’s security 

interest. The Program, at its option, may 

also require all parties with significant 

ownership interests to personally 

guarantee loan repayment for any 

borrower that is a corporation, 

partnership, or other entity, including 

collateral to secure the guarantees. Some 

projects may require additional security, 

collateral, or credit enhancement as 

determined, in the sole discretion, by 

the Program. 

(g) Program credit standards. 

Harvesting rights loans, regardless of 

purpose, are subject to all Program 

general credit standards and 

requirements. Collateral, guarantee and 

other requirements may be adjusted to 

individual credit risks. 

[FR Doc. 2017–23570 Filed 10–30–17; 8:45 am] 

BILLING CODE 3510–22–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 660 

[Docket No. 170817773–7905–1] 

RIN 0648–BG81 

Fisheries Off West Coast States; 

Highly Migratory Fisheries; California 

Drift Gillnet Fishery; Implementation of 

a Federal Limited Entry Drift Gillnet 

Permit 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Proposed rule; request for 

comments. 

SUMMARY: NMFS is proposing 

regulations under the authority of the 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(MSA) to implement a March 2017 

recommendation by the Pacific Fishery 

Management Council (Council) to 

amend the Fishery Management Plan for 

U.S. West Coast Fisheries for Highly 

Migratory Species (HMS FMP). The 

proposed rule would bring the State of 

California’s limited entry (LE) drift 

gillnet (DGN) permit program under 

MSA authority. All current California 

DGN permit holders would be eligible to 

apply for, and receive, a Federal DGN 

permit, and no additional DGN permits 

would be created. The proposed rule is 

administrative in nature and is not 

anticipated to result in increased 

activity, effort, or capacity in the 

fishery. 

DATES: Comments on the proposed rule 

and supporting documents must be 

submitted in writing on or before 

December 15, 2017. 

ADDRESSES: You may submit comments 

on this document, identified by NOAA– 

NMFS–2017–0052, by any of the 

following methods: 

• Electronic Submission: Submit all 

electronic public comments via the 

Federal e-Rulemaking Portal. Go to 

http://www.regulations.gov/ 

#!docketDetail;D=NOAA-NMFS-2017- 

0052, click the ‘‘Comment Now!’’ icon, 

complete the required fields, and enter 

or attach your comments. 

• Mail: Submit written comments to 

Lyle Enriquez, NMFS West Coast 

Region, 501 W. Ocean Blvd., Suite 4200, 

Long Beach, CA 90802. Include the 

identifier ‘‘NOAA–NMFS–2017–0052’’ 

in the comments. 

Instructions: Comments must be 

submitted by one of the above methods 

to ensure they are received, 

documented, and considered by NMFS. 

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. 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.) submitted 

voluntarily by the sender will be 

publicly accessible. Do not submit 

confidential business information, or 

otherwise sensitive or protected 

information. NMFS will accept 

anonymous comments (enter ‘‘N/A’’ in 

the required fields if you wish to remain 

anonymous). 

Written comments regarding the 

burden-hour estimates or other aspects 

of the collection-of-information 

requirements contained in this proposed 

rule may be submitted to the West Coast 

Regional Office and by email to OIRA_

Submission@omb.eop.gov or fax to (202) 

395–5806. 

Copies of the draft Regulatory Impact 

Review and other supporting documents 

are available via the Federal 

eRulemaking Portal: http://

www.regulations.gov, docket NOAA– 

NMFS–2017–0052 or by contacting the 

Regional Administrator, Barry Thom, 

NMFS West Coast Region, 1201 NE 

Lloyd Blvd., Portland, OR 97232–2182, 

or RegionalAdministrator.WCRHMS@

noaa.gov. 

FOR FURTHER INFORMATION CONTACT: Lyle 

Enriquez, NMFS, West Coast Region, 

562–980–4025, or Lyle.Enriquez@

noaa.gov. 

SUPPLEMENTARY INFORMATION: The HMS 

FMP was prepared by the Council and 

is implemented under the authority of 


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the MSA by regulations at 50 CFR part 

660. Although it adopted all 

conservation and management measures 

in place under various Federal statutes 

(e.g., the Marine Mammal Protection Act 

and the Endangered Species Act) and 

state regulations, the HMS FMP did not 

incorporate the LE DGN permit 

programs of California and Oregon. 

Currently, the large-mesh DGN fishery 

(14’’ minimum mesh size) is Federally 

managed under the HMS FMP and via 

regulations of the states of California 

and Oregon to conserve target and nontarget stocks, including protected 

species that are incidentally captured. 

(California has an active LE DGN 

program, Oregon no longer issues DGN 

permits, and DGN fishing is prohibited 

in Washington.) 

Since 2014, the Council has 

considered transitioning California’s LE 

DGN permit program from state to MSA 

authority. On March 12, 2017, the 

Council adopted a final preferred 

alternative that would amend the HMS 

FMP and transition the State of 

California LE DGN permit program from 

state management to Federal 

management under MSA authority and 

entitle all fishermen authorized to fish 

with large-mesh DGN gear under state 

law to be eligible to receive a Federal LE 

DGN permit. As of August 31, 2017, 70 

California LE DGN permits were issued 

for the 2016–2017 fishing season, and 

67 have been renewed for the 2017– 

2018 fishing season. The average 

number of active DGN vessels per year 

from 2010 through 2016 is 20 vessels. 

The action would neither increase 

capacity within the DGN fishery, nor 

would it incentivize or stimulate fishing 

effort or activity of current latent 

permits. After the initial issuance of 

Federal DGN permits, no additional 

permits would be issued, and permits 

that are not renewed in future years 

would permanently expire. NMFS 

would not reissue the expired permits. 

In order to participate in the DGN 

fishery, current participants must 

possess a State of California LE DGN 

permit, a California commercial fishing 

license, a California general gill/ 

trammel net permit, and a California 

swordfish permit. Additionally, the 

vessel that the participant fishes from 

must have a Federal Pacific Highly 

Migratory Species (HMS) permit with a 

DGN gear endorsement. After the LE 

DGN permit transitions from the State of 

California to Federal management, each 

participant will need to hold all the 

same permits and licenses, except that 

the Federal LE DGN permit will take the 

place of the State of California LE DGN 

permit. Although these permits and 

licenses would be required to fish, 

possession of a current and up-to-date 

State of California LE DGN permit is the 

only permit required to initially obtain 

a Federal LE DGN permit. 

This proposed rule would adopt many 

of the current State of California 

management measures associated with 

the fishery. For example, NMFS would 

adopt current California requirements 

regarding the assignment of a permit 

(i.e., permits would be issued to an 

individual and assigned to a specific 

vessel), the transfer of permits between 

permit holders (i.e., a permit must be 

held for three years before it is eligible 

to be transferred), and an annual 

renewal cycle. 

Upon the date of publication of the 

final rule, all 70 state-eligible permit 

holders would be eligible to receive a 

Federal DGN permit if they have 

renewed their state DGN permit by 

March 31, 2018. Permit holders who fail 

to renew their state DGN permit by 

March 31, 2018, will not be eligible for 

a Federal DGN permit. As of August 31, 

2017, 67 permit holders have renewed 

their state LE DGN permit. If a state LE 

DGN permit is transferred after 

publication of the proposed rule, the 

transferee, but not the transferor, would 

be eligible to receive a Federal LE DGN 

permit upon publication of the final 

rule. 

Federal LE DGN permits would be 

issued annually for the fishing year 

starting April 1 and ending March 31 of 

the following year. Permits would 

expire on March 31 of each year and, 

after initial issuance (expected in 2018), 

the permit renewal deadline would be 

April 30 of each fishing year. A 

completed DGN permit renewal form 

must be received by NMFS no later than 

close-of-business April 30. Any renewal 

form received after that date would 

result in the permanent expiration of the 

Federal DGN permit. A permit owner 

who fails to submit a renewal form by 

the deadline may submit a renewal form 

to NMFS with a written statement that 

the failure to renew the permit by the 

deadline was proximately caused by the 

permit owner’s illness or injury. When 

a permit owner has died, the owner’s 

estate or other personal representative 

may submit a statement explaining that 

the permit owner’s death has prevented 

a timely renewal. The permit holder, or 

in the case of a deceased permit owner, 

the estate or other personal 

representative, will need to provide 

written proof of illness, injury or death. 

NMFS will not consider any such 

renewal request made after July 31. A 

permit holder would need to hold a 

Federal LE DGN permit for a vesting 

period of at least three years before it 

would be eligible to be transferred. This 

vesting period would extend across both 

state and Federal permit programs (i.e., 

if a permit holder held a state LE DGN 

permit for two years and a Federal LE 

DGN permit for one year, the permit 

may be transferred). 

This proposed rule also includes 

technical edits to existing regulatory 

text. These edits add the word ‘‘general’’ 

before instances of ‘‘HMS permit’’ to 

distinguish the existing HMS permit 

from the new LE DGN permit; update a 

web address from which permit 

applications may be obtained; update 

the reference to the NMFS ‘‘Southwest 

Region’’ to refer to the West Coast 

Region, into which it was incorporated; 

and update the description of the NMFS 

regional ‘‘Sustainable Fisheries 

Division’’ to describe it as part of the 

West Coast Region. 

Classification 

Pursuant to section 304 (b)(1)(A) of 

the MSA, the NMFS West Coast 

Regional Administrator has determined 

that this proposed rule is consistent 

with the HMS FMP, other provisions of 

the MSA, and other applicable law, 

subject to further consideration after 

public comment. 

This proposed rule has been 

determined to be not significant for 

purposes of Executive Order 12866. 

This proposed rule is not an Executive 

Order 13771 regulatory action because 

this proposed rule is not significant 

under Executive Order 12866. 

This proposed rule contains a 

collection-of-information requirement 

subject to the Paperwork Reduction Act 

(PRA) and which has been approved by 

OMB under control number 0648–0204. 

Public reporting burden for the 

additional collection of information is 

estimated to average thirty minutes per 

form, including time for reviewing 

instructions, gathering the information 

needed, and completing and reviewing 

the collection of information. Send 

comments regarding this burden 

estimate, or any other aspect of this data 

collection, including suggestions for 

reducing the burden, to NMFS (see 

ADDRESSES) and by email to OIRA_

Submission@omb.eop.gov, or fax to 

(202) 395–5806. 

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. 

All currently approved NOAA 

collections of information may be 

viewed at: http://www.cio.noaa.gov/ 

services_programs/prasubs.html. 


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The Chief Counsel for 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 rule is administrative in 

nature and adopts current State of 

California permit requirements as they 

relate to the DGN fishery. This action is 

not expected to increase capacity, 

incentivize or stimulate fishing effort or 

activity of current latent permits, or 

change current fishing practices. 

For Regulatory Flexibility Act (RFA) 

purposes only, NMFS has established a 

small business size standard for 

businesses, including their affiliates, 

whose primarily industry is commercial 

fishing (50 CFR 200.2). A business 

primarily involved in commercial 

fishing (NAICS 11411) is classified as a 

small business if it is independently 

owned and operated, is not dominant in 

its field of operation (including its 

affiliates), and its combined annual 

receipts are not in excess of $11 million 

for all of its affiliated operations 

worldwide. NMFS has determined that 

all current participants in the DGN 

fishery are small entities under the 

NMFS standard. The average ex-vessel 

revenue for the U.S. West Coast DGN 

fishery from 2011 to 2015 is $745,600, 

with an average of 20 vessels 

participating per year. Therefore, the 

average ex-vessel revenue per active 

participant is $37,280. The increase in 

administrative costs, if any, resulting 

from this action would be less than 1% 

of ex-vessel revenues per active 

participant. In addition, because each 

affected entity is a small business, there 

would be no disproportionate economic 

impacts between large and small 

entities. 

Currently, participants must possess a 

Federal Pacific Highly Migratory 

Species (HMS) permit ($30), as well as 

a State of California commercial fishing 

license ($136.99), a California general 

gill/trammel net permit ($469.25), and a 

California LE DGN permit ($469.25) that 

includes a swordfish permit for fishing 

with hook-and-line or harpoon. If a 

fisherman does not participate in the 

DGN fishery, but participates in the 

harpoon or hook-and-line fishery, they 

must purchase a swordfish permit for 

$469.25. If this action is implemented, 

fishermen would receive a Federal LE 

DGN permit. The fee for a Federal LE 

DGN permit would be determined by 

only the administrative cost of issuing 

the permit, and it is expected that the 

Federal LE DGN permit would cost less 

than $100, which is far less than the 

California LE DGN permit cost of 

$469.25. There are three likely scenarios 

associated with implementing a Federal 

LE DGN permit, discussed below; in 

each scenario, the economic effects are 

not significant, as they would lead to 

either a reduction in costs or an 

insignificant increase in costs. 

In the first scenario, fishermen would 

acquire a Federal LE DGN permit. If the 

State of California does not amend its 

regulations and continues to require that 

fishermen purchase a State of California 

LE DGN permit (with the swordfish 

permit included), the cost increase 

would be only the additional cost of the 

Federal LE DGN permit. In the second 

scenario, if fishermen purchase a 

Federal LE DGN permit and state 

regulations are amended to no longer 

require the State of California LE DGN 

permit, but either a swordfish permit is 

still required or fishermen continue 

participating in the harpoon or hookand-line fishery, there would be a cost 

increase equal to the cost of the Federal 

LE DGN permit, while the savings from 

not purchasing the state LE DGN permit 

would be offset by the cost of 

purchasing the swordfish permit. In the 

third scenario, if fishermen purchase a 

Federal LE DGN permit, a state LE DGN 

permit is no longer required, and either 

a swordfish permit is not required or 

fishermen do not participate in the 

harpoon or hook-and-line fishery, the 

fishermen would realize a cost savings, 

and the amount of cost savings would 

equal the difference between the cost of 

the state LE DGN permit ($469.25) and 

the cost of the Federal LE DGN permit 

(expected to be less than $100). 

As noted above, all entities subject to 

this action are considered small entities 

for RFA purposes. Based on the analysis 

provided above, the proposed action, if 

adopted, would not have a significant 

adverse economic impact on these small 

business entities. As a result, an initial 

regulatory flexibility analysis is not 

required and none has been prepared. 

List of Subjects in 50 CFR Part 660 

Fisheries, Fishing, Reporting, and 

recordkeeping requirements. 

Dated: October 25, 2017. 

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 660 is proposed 

to be amended as follows: 

PART 660—FISHERIES OFF WEST 

COAST STATES 

■ 1. The authority citation for part 660 

continues to read as follows: 

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

U.S.C. 773 et seq., and 16 U.S.C. 7001 et seq. 

■ 2. In § 660.702, revise the definition of 

‘‘Sustainable Fisheries Division’’ to read 

as follows: 

* * * * * 

Sustainable Fisheries Division (SFD) 

means the Assistant Regional 

Administrator for Sustainable Fisheries, 

West Coast Region, NMFS, or his or her 

designee. 

* * * * * 

■ 3. In § 660.707, revise paragraphs 

(a)(1), (a)(4), (b)(1), (b)(3), (b)(4), and (e), 

and add paragraph (f) to read as follows: 

§ 660.707 Permits. 

(a) * * * 

(1) A commercial fishing vessel of the 

United States must be registered for use 

under a general HMS permit that 

authorizes the use of specific gear, and 

a recreational charter vessel must be 

registered for use under a HMS permit 

if that vessel is used: 

(i) To fish for HMS in the U.S. EEZ 

off the States of California, Oregon, and 

Washington; or 

(ii) To land or transship HMS 

shoreward of the outer boundary of the 

U.S. EEZ off the States of California, 

Oregon, and Washington. 

* * * * * 

(4) Only a person eligible to own a 

documented vessel under the terms of 

46 U.S.C. 12102(a) may be issued or 

may hold (by ownership or otherwise) a 

general HMS permit. 

(b) * * * 

(1) Following publication of the final 

rule implementing the FMP, NMFS will 

issue general HMS permits to the 

owners of those vessels on a list of 

vessels obtained from owners 

previously applying for a permit under 

the authority of the High Seas Fishing 

Compliance Act, the Tuna Conventions 

Act of 1950, the Marine Mammal 

Protection Act, and the Fishery 

Management Plan for Pelagic Fisheries 

of the Western Pacific Region, or whose 

vessels are listed on the vessel register 

of the Inter-American Tropical Tuna 

Commission. 

* * * * * 

(3) An owner of a vessel subject to 

these requirements who has not 

received a permit under this section 

from NMFS and who wants to engage in 

the fisheries must apply to the SFD for 

the required permit in accordance with 

the following: 

(i) A West Coast Region Federal 

Fisheries application form may be 

obtained from the SFD or downloaded 

from the West Coast Region home 

page (http://

www.westcoast.fisheries.noaa.gov/ 


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permits/commercial_fishing_research_

permits.html) to apply for a permit 

under this section. A completed 

application is one that contains all the 

necessary information and signatures 

required. 

(ii) A minimum of 15 days should be 

allowed for processing a permit 

application. If an incomplete or 

improperly completed application is 

filed, the applicant will be sent a notice 

of deficiency. If the applicant fails to 

correct the deficiency within 30 days 

following the date of notification, the 

application will be considered 

abandoned. 

(iii) A permit will be issued by the 

SFD. If an application is denied, the 

SFD will indicate the reasons for denial. 

(iv) Appeals. (A) Any applicant for an 

initial permit may appeal the initial 

issuance decision to the Regional 

Administrator. To be considered by the 

Regional Administrator, such appeal 

must be in writing and state the reasons 

for the appeal, and must be submitted 

within 30 days of the action by the 

Regional Administrator. The appellant 

may request an informal hearing on the 

appeal. 

(B) Upon receipt of an appeal 

authorized by this section, the Regional 

Administrator will notify the permit 

applicant, or permit holder as 

appropriate, and will request such 

additional information and in such form 

as will allow action upon the appeal. 

(C) Upon receipt of sufficient 

information, the Regional Administrator 

will decide the appeal in accordance 

with the permit provisions set forth in 

this section at the time of the 

application, based upon information 

relative to the application on file at 

NMFS and the Council and any 

additional information submitted to or 

obtained by the Regional Administrator, 

the summary record kept of any hearing 

and the hearing officer’s recommended 

decision, if any, and such other 

considerations as the Regional 

Administrator deems appropriate. The 

Regional Administrator will notify all 

interested persons of the decision, and 

the reasons for the decision, in writing, 

normally within 30 days of the receipt 

of sufficient information, unless 

additional time is needed for a hearing. 

(D) If a hearing is requested, or if the 

Regional Administrator determines that 

one is appropriate, the Regional 

Administrator may grant an informal 

hearing before a hearing officer 

designated for that purpose after first 

giving notice of the time, place, and 

subject matter of the hearing to the 

applicant. The appellant, and, at the 

discretion of the hearing officer, other 

interested persons, may appear 

personally or be represented by counsel 

at the hearing and submit information 

and present arguments as determined 

appropriate by the hearing officer. 

Within 30 days of the last day of the 

hearing, the hearing officer shall 

recommend in writing a decision to the 

Regional Administrator. 

(E) The Regional Administrator may 

adopt the hearing officer’s 

recommended decision, in whole or in 

part, or may reject or modify it. In any 

event, the Regional Administrator will 

notify interested persons of the 

decision, and the reason(s) therefore, in 

writing, within 30 days of receipt of the 

hearing officer’s recommended decision. 

The Regional Administrator’s decision 

will constitute the final administrative 

action by NMFS on the matter. 

(F) Any time limit prescribed in this 

section may be extended for a period 

not to exceed 30 days by the Regional 

Administrator for good cause, either 

upon his or her own motion or upon 

written request from the appellant 

stating the reason(s) therefore. 

(4) General HMS permits issued under 

this subpart will remain valid until the 

first date of renewal, and permits may 

be subsequently renewed for 2-year 

terms. The first date of renewal will be 

the last day of the vessel owner’s birth 

month in the second calendar year after 

the permit is issued (e.g., if the birth 

month is March and the permit is issued 

on October 3, 2007, the permit will 

remain valid through March 31, 2009). 

* * * * * 

(e) Fees. An application for a permit, 

or renewal of an existing permit under 

this section will include a fee for each 

vessel. The fee amount required will be 

calculated in accordance with the 

NOAA Finance Handbook and specified 

on the application form. 

(f) Federal Limited Entry Drift Gillnet 

Permit. 

(1) General. This section applies to 

individuals fishing with large-mesh (14 

inch or greater stretched mesh) drift 

gillnet (DGN) gear. Individuals who 

target, retain, transship, or land fish 

captured with a large-mesh DGN must 

possess a valid Federal limited entry 

DGN permit. Federal limited entry DGN 

permits are issued to an individual, and 

a vessel must be specified on the permit. 

(2) Initial Qualification. Upon 

publication of NMFS’ final rule to 

establish the Federal limited entry DGN 

permit, all State of California limited 

entry DGN permit holders are eligible to 

obtain a Federal limited entry DGN 

permit. If a 2017–2018 California state 

DGN permit renewal application is not 

received by the California Department of 

Fish and Wildlife or postmarked by 

March 31, 2018, the permit holder is not 

eligible to receive a 2018–2019 Federal 

limited entry DGN permit. 

(3) Documentation and burden of 

proof. An individual applying for 

issuance, renewal, transfer, or 

assignment of a Federal limited entry 

DGN permit must prove that they meet 

the qualification requirements by 

submitting the following 

documentation, as applicable: A 

certified copy of the assigned vessel’s 

documentation as a fishing vessel of the 

United States (U.S. Coast Guard or state) 

is the best evidence of vessel 

identification; a copy of a current State 

of California limited entry DGN permit 

is the best evidence of initial 

qualification for a Federal limited entry 

DGN permit; a copy of a written contract 

reserving or conveying limited entry 

rights is the best evidence of reserved or 

acquired rights; and other relevant, 

credible evidence that the applicant 

may wish to submit or that the SFD may 

request or require. 

(4) Fees. Any processing fee will be 

determined by the service costs needed 

to process a permit request. If a fee is 

required, it would cover administrative 

expenses related to issuing limited entry 

permits, as well as renewing, 

transferring, assigning, and replacing 

permits. The amount of any fee will be 

calculated in accordance with the 

procedures of the NOAA Finance 

Handbook for determining the 

administrative costs of each special 

product or service. A fee may not 

exceed such costs and is specified with 

each application form. The appropriate 

fee must accompany each application. 

(5) Initial decisions. (i) The SFD will 

make initial decisions regarding issuing, 

renewing, transferring, and assigning 

limited entry permits. 

(ii) Adverse decisions shall be in 

writing and shall state the reasons for 

the adverse decision. 

(iii) The SFD may decline to act on an 

application for issuing, renewing, 

transferring, or assigning a limited entry 

permit and will notify the applicant, if 

the permit sanction provisions of the 

Magnuson-Stevens Act at 16 U.S.C. 

1858(a) and implementing regulations at 

15 CFR part 904, subpart D, apply. 

(6) Issuance. Federal limited entry 

DGN permits will be issued by the SFD. 

If an application is denied, the SFD will 

indicate the reasons for denial. A DGN 

permit will be issued to an individual 

and assigned to a specific vessel. A 

permit holder may assign the permit to 

another vessel once per permit year 

(April 1 to March 31). 

(7) Appeals. Any applicant for an 

initial permit may appeal the initial 

issuance decision to the Regional 


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Administrator. Appeals will be made 

and processed following procedures as 

described at paragraph (b)(3)(iv) of this 

section. 

(8) Transfers. Federal limited entry 

DGN permits may be transferred to 

another individual only if the current 

permit holder has held the Federal DGN 

permit for a minimum of three 

consecutive years (counted April 1 to 

March 31 of the following year). At the 

time of the establishment of the Federal 

limited entry DGN permit system, the 

length of time an individual has held a 

State of California limited entry DGN 

permit carries over (e.g., if an individual 

has held a California DGN permit for 

two years, they are eligible to transfer 

the Federal DGN permit after holding 

the Federal DGN permit for one year). 

Exceptions to this limitation on permit 

transfer may be made under the 

following circumstances: 

(i) The permit holder suffers from a 

serious illness or permanent disability 

that prevents the permit holder from 

earning a livelihood from commercial 

fishing. 

(ii) If a deceased permit holder’s 

estate or heirs submit a transfer request 

within six months of the permit holder’s 

death. 

(iii) Upon dissolution of marriage if 

the permit is held as community 

property. 

(9) Renewals. (i) The SFD will send 

notices to renew limited entry permits 

to the most recent address of the permit 

holder on file. 

(ii) The permit owner is responsible 

for renewing a limited entry permit. 

(iii) The deadline for receipt or 

postmark of a Federal DGN permit 

renewal application is April 30 of the 

permit year (i.e., April 30, 2019 for 

2019–2020 fishing season). Federal DGN 

permits must be renewed yearly. 

(iv) A DGN permit that is allowed to 

expire will not be renewed unless the 

permit owner requests reissuance by 

July 31 (three months after the renewal 

application deadline) and NMFS 

determines that failure to renew was 

proximately caused by illness, injury, or 

death of the permit owner. If the permit 

expires, it will be forfeited and NMFS 

will not reissue the permit to anyone. 

(10) Owner on-board requirement. (i) 

Except as provided in paragraphs (ii) 

through (v), the DGN permit holder 

must be on-board the vessel and in 

possession of a valid Federal limited 

entry DGN permit when engaged in 

DGN fishing activity. 

(ii) A permit holder may designate 

another individual to fish under their 

permit for up to 15 days per fishing year 

(April 1 to March 31 of the following 

year); the substitute must comply with 

all other Federal permitting 

requirements. A permit holder shall 

notify NMFS of a substitution at least 24 

hours prior to the commencement of the 

trip. 

(iii) If the person who owns a Federal 

DGN permit is prevented from being onboard a fishing vessel because the 

person died, is ill, or is injured, NMFS 

may allow an exemption to the owner 

on-board requirement for more than 15 

days. The person requesting the 

exemption must send a letter to NMFS 

requesting an exemption from the owner 

on-board requirements, with 

appropriate evidence as described at 

paragraph (f)(10)(iv) or (v) of this 

section. All exemptions for death, 

injury, or illness will be evaluated by 

NMFS and a decision will be made in 

writing to the permit owner (or, in the 

case of the death of the permit owner, 

to the estate or heirs of the permit 

owner) within 60 calendar days of 

receipt of the original exemption 

request. 

(iv) Evidence of death of the permit 

owner shall be provided to NMFS in the 

form of a copy of a death certificate. In 

the interim before the estate is settled, 

if the deceased permit owner was 

subject to the owner on-board 

requirements, the estate of the deceased 

permit owner may send a letter to 

NMFS with a copy of the death 

certificate, requesting an exemption 

from the owner-on-board requirements. 

An exemption due to death of the 

permit owner will be effective only until 

such time that the estate of the deceased 

permit owner has registered the 

deceased permit owner’s permit to a 

beneficiary, transferred the permit to 

another owner, or three years after the 

date of death as proven by a death 

certificate, whichever is earliest. An 

exemption from the owner-on-board 

requirement will be conveyed in a letter 

from NMFS to the estate of the permit 

owner and is required to be on the 

vessel during DGN fishing operations. 

(v) Evidence of illness or injury that 

prevents the permit owner from 

participating in the fishery shall be 

provided to NMFS in the form of a letter 

from a certified medical practitioner. 

This letter must detail the relevant 

medical conditions of the permit owner 

and how those conditions prevent the 

permit owner from being on-board a 

fishing vessel during DGN fishing. An 

exemption due to injury or illness will 

be effective only for the fishing year of 

the request for exemption. In order to 

extend a medical exemption for a 

succeeding year, the permit owner must 

submit a new request and provide 

documentation from a certified medical 

practitioner detailing why the permit 

owner is still unable to be on-board a 

fishing vessel. An exemption from the 

owner-on-board requirement will be 

conveyed in a letter from NMFS to the 

permit owner and is required to be on 

the vessel during DGN fishing 

operations. 

[FR Doc. 2017–23571 Filed 10–30–17; 8:45 am] 

BILLING CODE 3510–22–P 


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