82 FR 50363 - Merchant Marine Act and Magnuson-Stevens Act Provisions; Fishing Vessel, Fishing Facility and Individual Fishing Quota and Harvesting Rights Lending Program Regulations
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration Federal Register Volume 82, Issue 209 (October 31, 2017)
National Oceanic and Atmospheric Administration
Federal Register Volume 82, Issue 209 (October 31, 2017)
| Page Range | 50363-50366 | |
| FR Document | 2017-23570 |
[Federal Register Volume 82, Number 209 (Tuesday, October 31, 2017)] [Proposed Rules] [Pages 50363-50366] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-23570] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 253 [Docket No. 170404355-7355-01] RIN 0648-BG80 Merchant Marine Act and Magnuson-Stevens Act Provisions; Fishing Vessel, Fishing Facility and Individual Fishing Quota and Harvesting Rights Lending Program Regulations AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. ----------------------------------------------------------------------- SUMMARY: NMFS' Fisheries Finance Program (FFP) provides long-term financing to the commercial fishing and aquaculture industries for fishing vessels, fisheries facilities, aquaculture facilities, and certain designated individual fishing quota (IFQ). Section 302 of the Coast Guard Authorization Act of 2015 (Pub. L. 114-120) included new authority to finance the purchase of harvesting rights in a fishery that is federally managed under a limited access system. The FFP proposes to add a new section to the existing FFP regulations to implement this statutory change. The net effect of this proposed change to the regulations will be to provide additional authority for the program to lend, while leaving the original IFQ authority to Fishery Management Councils to use as needed. DATES: Comments must be submitted in writing on or before November 30, 2017, ADDRESSES: You may submit comments, identified by NOAA-NMFS-2017-0064, by any one of the following methods:Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. Go to www.regulations.gov/#!docketDetail;D=NOAA-NMFS-2017-0064, click the ``Comment Now!'' icon, complete the required fields, and enter or attach your comments. Mail: Paul Marx, Chief, Financial Services Division, NMFS, Attn: F/MB5, 1315 East-West Highway, SSMC3, Silver Spring, MD 20910. Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are a part of the public record and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address, etc.), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter ``N/A'' in the required fields if you wish to remain anonymous). 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 [email protected] and by email to [email protected] or fax to (202) 395-7285. FOR FURTHER INFORMATION CONTACT: Paul Marx, at 301-427-8771 or via email at [email protected]. SUPPLEMENTARY INFORMATION: Under the authority of Chapter 537 of Title 46 of the United States Code, 46 U.S.C. 53701, et seq., the FFP may provide long-term financing to the commercial fishing and aquaculture industries for fishing vessels, fisheries facilities, aquaculture facilities, and certain designated individual fishing quota (IFQs). Section 302 of the Coast Guard Authorization Act of 2015 (Pub. L. 114- 120) amended Chapter 537, providing the FFP with the authority to finance the purchase of harvesting rights in a fishery that is federally managed under a limited access system. This amendment is codified at 46 U.S.C. 53702(b)(4)(B). This action would modify the existing Program regulations to reflect this statutory change. The net effect of this change will be to provide additional authority for the program to lend, while leaving the original IFQ authority to Fishery Management Councils (FMCs) to use as needed. Existing IFQ Loan Authority 46 U.S.C. 53706 authorizes the FFP to finance or refinance the purchase of individual fishing quotas in accordance with section 303(d)(4) of the Magnuson-Stevens Fishery Conservation and Management Act (MSA), now codified at 16 U.S.C. 1853a(g). Under this provision of the MSA, an FMC may submit, and NMFS may approve and implement, a loan program to aid in (1) the acquisition of IFQ by fishermen who fish from ``small vessels,'' and (2) the first time purchase of IFQ by ``entry level fishermen.'' Therefore, under this authority, the FFP cannot initiate or implement a lending program to finance or refinance the purchase of IFQ until the appropriate FMC submits a request to NMFS and provides guidance for the requisite criteria. NMFS currently administers two loan programs pursuant to the existing IFQ authority: The Northwest Halibut/Sablefish and Bering Sea and Aleutian Islands Crab IFQ loan programs. NMFS anticipates no effects to either of these existing loan programs as a result of this proposed action. New Loan Authority The new authority provided by Public Law 114-120 broadens the FFP's existing authority, and authorizes the Program to finance the purchase of harvesting rights in a fishery that is federally managed under a limited access system. NMFS will interpret ``limited access system'' in accordance with section 3(27) of the MSA for purposes of this authority. The MSA defines ``limited access system'' as ``a system that limits participation in a fishery to those satisfying certain eligibility criteria or requirements contained in a fishery management plan or associated regulation.'' 16 U.S.C. 1802(27). Such definition includes, but is not limited to, IFQ fisheries. The new authority provided by Public Law 114-120 does not require FMCs to initiate a request to establish a loan program in a fishery that is federally managed under a limited access system in order for the FFP to provide financing in such a fishery. However, under the MSA, FMCs are primarily responsible for developing fishery management plans (FMPs) for fisheries within their authority that require conservation and management. It is possible that the availability of fisheries loans may have unanticipated effects on the [[Page 50364]] achievement of FMP goals and objectives. Therefore, NMFS believes it appropriate to allow the FMCs to comment on the potential or actual effect of a loan program for harvesting rights in fisheries under their authority. An FMC may provide an explanation to NMFS at any time, in writing, why the potential or continuing availability of financing for harvesting rights in a fishery under its authority would harm the achievement of the goals and objectives of the FMP applicable to the fishery. If NMFS accepts the Council's reasoning, harvesting rights loans would not be provided, or would cease to be provided, in that fishery. In such a scenario, NMFS would publish a notice in the Federal Register notifying the public that new loans will not be made in that fishery. If there were already loan applications under consideration, the exceptional circumstances would justify NMFS returning any loan fees submitted with loan applications. The opportunity for FMC input will help ensure that loans made by the FFP do not undermine or conflict with the goals and objectives of specific FMPs. Extent of Financing Section 302 of the Coast Guard Authorization Act of 2015 imposes no limitations on the extent of financing to be provided by the FFP for the purchase of harvesting rights. However, it does reserve $59 million of direct loan authority for historical uses, defined at 46 U.S.C. 53701(8). Thus, NMFS anticipates that the balance of annual direct loan authority--currently $41 million--may be available to finance or refinance the purchase of harvesting rights in federally managed fisheries under a limited access system. This action will allow NMFS to fully use the program's loan authority either for historical purposes or any authorized new purposes should it be determined that demand or lack of demand in either area would result in unused loan authority. Proposed Harvesting Rights Lending Lending for harvesting rights would follow existing FFP lending procedures and guidelines. Borrowers must be U.S. citizens or entities eligible to document a vessel for coastwise trade under 46 U.S.C. 50501, meet all general FFP requirements, and meet all requirements to hold the harvesting rights under the applicable FMP at the time of loan closing. The FFP may require additional lending conditions and security terms such as loan guarantees or security interests in other collateral to bring credit risk to acceptable levels. Affiliated businesses, the borrower's principals or majority shareholders, persons or entities with a financial interest in the borrower, or any individuals holding community property rights may also be required to provide a guaranty. In addition, all loan applicants are subject to background and credit investigations, which may include, but are not limited to, reviews for unresolved fishing violations, criminal background checks, delinquent debt investigations, and credit reports. Like other FFP loan programs, lending for harvesting rights is subject to a statutory loan limit of up to 80 percent of the actual cost of the transaction, set as the purchase price or, in the case of refinancing, the current market value. The FFP retains sole discretion to determine the transaction's actual cost or current market value. Harvesting rights loan amounts can carry up to a 25-year term and can be used to either purchase new rights or refinance the debt associated with the prior purchase(s) of harvesting rights. In addition to maintaining a 20 percent minimum equity stake, borrowers refinancing existing debt will only receive the lesser of the outstanding amount of debt to be refinanced or 80 percent of the current market value of the harvesting right. If a borrower seeking refinancing fails to have the requisite 20 percent equity stake (measured as the difference between the current market value of the primary collateral and the amount of the loan), that borrower will need to pay down debt to meet the required level. In addition, under FFP standards, borrowers are only eligible for refinancing if their initial purchase would have been eligible for financing. The program will refinance harvesting rights acquired prior to this regulation if the buyer's original purchase would have been eligible for FFP financing under the terms of this action. Prospective borrowers may apply for a loan through any of the NOAA Fisheries Service regional FFP offices (St. Petersburg, FL; Gloucester, MA; Seattle, WA). They must pay the appropriate application fee, set by 46 U.S.C. 53713(b) as one-half of one percent of the loan amount requested, which is made up of two parts. Half is the ``filing fee,'' and is nonrefundable when the FFP officially accepts the application. The other half, known as the ``commitment fee,'' becomes nonrefundable when the FFP executes and mails an Approval-in-Principle (AIP) letter to the applicant. The FFP may refund the commitment fee if the FFP declines the application or the application is withdrawn prior to the issuance of an AIP letter. Summary and Explanation of Proposed Regulatory Changes This proposed action would add the following section, as explained here. Harvesting Rights Loans (253.31) This new section provides regulatory provisions specific to the harvesting rights loans. At the time a borrower submits an application, he or she must satisfy the criteria listed in this new section in order to be eligible to receive financing under the program. The borrower must comply with any limitations on the quantity of harvesting rights that may be owned by one holder, as specified in the applicable FMP and implementing regulations. The FFP will not finance harvesting rights in excess of ownership limitations. Classification This proposed rule is published under the authority of, and is consistent with, Chapter 537 of Title 46 of the United States Code and the Magnuson-Stevens Act, as amended. The NMFS Assistant Administrator has determined that this proposed rule is consistent with Chapter 537 of Title 46 of the U.S. Code, the Magnuson-Stevens Act, as amended, and other applicable law, subject to further consideration after public comment. In addition to public comment about the proposed rule's substance, NMFS also seeks public comment on any ambiguity or unnecessary complexity from the language used in this proposed rule. NEPA NMFS has preliminarily determined that this rule qualifies to be categorically excluded from further NEPA review. This action is consistent with categories of activities identified in CE G7 of the Companion Manual for NOAA Administrative Order 216-6A, and we have not identified any extraordinary circumstances that would preclude this categorical exclusion. NMFS is accepting comments and information during the public comment period for the proposed rule relevant to our preliminary categorical exclusion determination. Executive Order 12866 This proposed rule has been determined to be not significant for purposes of Executive Order 12866. This proposed rule does not duplicate, overlap, or conflict with any other relevant Federal rules. [[Page 50365]] Paperwork Reduction Act Notwithstanding any other provision of the law, no person is required to respond to, and no person shall be subject to 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. This proposed rule contains collections-of-information subject to the PRA, which have been approved by OMB under control number 0648- 0012. The application requirements contained in these rules have been approved under OMB control number 0648-0012. Public reporting burden for placing an application for FFP financing is estimated to average eight hours 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. 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 [email protected] or fax to (202) 395-7285. Regulatory Flexibility Act The Chief Counsel for Regulation of the Department of Commerce has certified to the Chief Counsel for Advocacy of the Small Business Administration (SBA) that this proposed rule, if adopted, would not have a significant economic impact on a substantial number of small entities. The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, et seq., requires that, ``[w]henever an agency is required by section 553 of this title [5 USCS Sec. 553], or any other law, to publish general notice of proposed rulemaking for any proposed rule, or publishes a notice of proposed rulemaking for an interpretative rule involving the internal revenue laws of the United States, the agency shall prepare and make available for public comment an initial regulatory flexibility analysis. Such analysis shall describe the impact of the proposed rule on small entities.'' 5 U.S.C. 603(a). However, where an agency can certify ``that the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities'' then an agency need not undertake a full regulatory flexibility analysis. 5 U.S.C. 605(b). Participation in the FFP is entirely voluntary. This action imposes no mandatory requirements on any business. Once final, this proposed rule will implement programs authorized by law. Specifically, these rules enact regulatory additions to create a new lending purpose authorized by Section 302 of the Coast Guard Authorization Act of 2015 (Pub. L. 114-120) and will be implemented in accordance with 50 CFR part 253, subpart B. This action will create new Sec. 253.31. As defined by NMFS for RFA purposes, this rule may affect small fishing entities that have annual revenues of $11.0 million or less, including, but not limited to, vessel owners, vessel operators, individual fishermen, small corporations, and others engaged in commercial fishing activities regulated by NOAA. Borrowers under this authority may also include large businesses. Notably, because the FFP is a voluntary program that provides loans to qualified borrowers, non- borrowers--large or small--would not be regulated by this rule. Although the FFP requires certain supporting documentation during the life of a loan, the requirements do not impose unusual burdens when compared to the burdens imposed by other lenders. Moreover, because the basic need for financing would continue to exist without the FFP, the individuals seeking financing would still need to comply with similar, if not identical, requirements imposed by another lender. Records required to participate in the FFP are usually within the normal records already maintained by fishermen. It should take fewer than eight hours per application to meet these requirements. The information required from borrowers, such as income tax returns, insurance policies, permits, licenses, etc., is already available to them. Depending on circumstances, the FFP may require other supporting documents, including financial statements, property descriptions, and other documents that can be acquired at reasonable cost if they are not already available. FFP lending is a source of long-term, fixed rate capital financing and imposes no regulatory requirements on anyone other than those applying for loans. FFP borrowers make a voluntary decision to use the available lending. These loan programs will only have positive impacts on borrowers. Because participation is voluntary and requires effort and the outlay of an application fee, borrowers for harvesting rights financing are assumed to have made a determination that using FFP financing provides a benefit, such that the FFP's long-term, fixed rate financing provides only a positive economic impact. Importantly, the FFP does not regulate or manage the affairs of its borrowers, and the regulations impose no additional compliance, operating or other fees or costs on small entities other than a financing relationship would require. As a result of this certification, an initial regulatory flexibility analysis is not required and none has been prepared. List of Subjects in 50 CFR Part 253 Aquaculture, Community development groups, Direct lending, Financial assistance, Fisheries, Fishing, Individual fishing quota, harvesting rights (privileges). Dated: October 25, 2017. Samuel D. Rauch, III, Deputy Assistant Administrator for Regulatory Programs, National Marine Fisheries Service. For the reasons set forth in the preamble, NMFS proposes to amend 50 CFR part 253, subpart B, as follows: PART 253--FISHERIES ASSISTANCE PROGRAMS Subpart B--Fisheries Finance Program 0 1. The authority citation for part 253 continues to read as follows: Authority: 46 U.S.C. 53701 and 16 U.S.C. 4101 et seq. 0 2. Section 253.31 is added to read as follows: Sec. 253.31 Harvesting rights loans. (a) Specific definitions. For the purposes of this section, the following definitions apply: (1) Harvesting right(s) means any privilege to harvest fish in a fishery that is federally managed under a limited access system. (2) Limited access system has the same meaning given to that term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802). (3) [Reserved] (b) Loan Requirements and Limitations. These loan requirements and limitations apply to individuals or entities who seek to finance or refinance the acquisition of harvesting rights. (1) The borrower must meet all regulatory and statutory requirements to hold the harvesting rights at the time any such loan or refinancing loan would close. (2) NMFS will accept and consider the input of a Regional Fishery Management Council at any time regarding the availability of loans in a fishery under the Council's authority. [[Page 50366]] (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
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BILLING CODE 4333–15–C program to lend, while leaving the change will be to provide additional
References Cited original IFQ authority to Fishery authority for the program to lend, while
Management Councils to use as needed. leaving the original IFQ authority to
A complete list of references cited in Fishery Management Councils (FMCs)
DATES: Comments must be submitted in
this document is available on the to use as needed.
writing on or before November 30, 2017,
Internet at http://www.regulations.gov at
Docket No. FWS–R6–ES–2016–0086 and ADDRESSES: You may submit comments, Existing IFQ Loan Authority
upon request from the Montana identified by NOAA–NMFS–2017–0064,
46 U.S.C. 53706 authorizes the FFP to
Ecological Services Field Office (see FOR by any one of the following methods:
• Electronic Submission: Submit all finance or refinance the purchase of
FURTHER INFORMATION CONTACT). individual fishing quotas in accordance
electronic public comments via the
Authors Federal e-Rulemaking Portal. Go to with section 303(d)(4) of the Magnuson-
www.regulations.gov/ Stevens Fishery Conservation and
The primary authors of this document Management Act (MSA), now codified
are the staff members of the Montana #!docketDetail;D=NOAA-NMFS-2017-
at 16 U.S.C. 1853a(g). Under this
Ecological Services Field Office. 0064, click the ‘‘Comment Now!’’ icon,
provision of the MSA, an FMC may
complete the required fields, and enter
Authority submit, and NMFS may approve and
or attach your comments.
• Mail: Paul Marx, Chief, Financial implement, a loan program to aid in (1)
The authority for this action is the the acquisition of IFQ by fishermen who
Endangered Species Act of 1973, as Services Division, NMFS, Attn: F/MB5,
1315 East-West Highway, SSMC3, Silver fish from ‘‘small vessels,’’ and (2) the
amended (16 U.S.C. 1531 et seq.). first time purchase of IFQ by ‘‘entry
Spring, MD 20910.
Dated: September 28, 2017. Instructions: Comments sent by any level fishermen.’’ Therefore, under this
James W. Kurth, other method, to any other address or authority, the FFP cannot initiate or
Acting Director, U.S. Fish and Wildlife individual, or received after the end of implement a lending program to finance
Service. the comment period, may not be or refinance the purchase of IFQ until
[FR Doc. 2017–23579 Filed 10–30–17; 8:45 am] considered by NMFS. All comments the appropriate FMC submits a request
BILLING CODE 4333–15–P received are a part of the public record to NMFS and provides guidance for the
and will generally be posted for public requisite criteria.
NMFS currently administers two loan
viewing on www.regulations.gov
programs pursuant to the existing IFQ
DEPARTMENT OF COMMERCE without change. All personal identifying
authority: The Northwest Halibut/
information (e.g., name, address, etc.),
National Oceanic and Atmospheric Sablefish and Bering Sea and Aleutian
confidential business information, or
Administration Islands Crab IFQ loan programs. NMFS
otherwise sensitive information
anticipates no effects to either of these
submitted voluntarily by the sender will
50 CFR Part 253 existing loan programs as a result of this
be publicly accessible. NMFS will
proposed action.
[Docket No. 170404355–7355–01] accept anonymous comments (enter
‘‘N/A’’ in the required fields if you wish New Loan Authority
RIN 0648–BG80 to remain anonymous). The new authority provided by Public
Written comments regarding the Law 114–120 broadens the FFP’s
Merchant Marine Act and Magnuson- burden-hour estimates or other aspects
Stevens Act Provisions; Fishing existing authority, and authorizes the
of the collection-of-information Program to finance the purchase of
Vessel, Fishing Facility and Individual requirements contained in this proposed
Fishing Quota and Harvesting Rights harvesting rights in a fishery that is
rule may be submitted to paul.marx@ federally managed under a limited
Lending Program Regulations noaa.gov and by email to oira_ access system. NMFS will interpret
AGENCY: National Marine Fisheries submission@omb.eop.gov or fax to (202) ‘‘limited access system’’ in accordance
Service (NMFS), National Oceanic and 395–7285. with section 3(27) of the MSA for
Atmospheric Administration (NOAA), FOR FURTHER INFORMATION CONTACT: Paul purposes of this authority. The MSA
Commerce. Marx, at 301–427–8771 or via email at defines ‘‘limited access system’’ as ‘‘a
ACTION: Proposed rule; request for
paul.marx@noaa.gov. system that limits participation in a
comments. SUPPLEMENTARY INFORMATION: Under the fishery to those satisfying certain
authority of Chapter 537 of Title 46 of eligibility criteria or requirements
SUMMARY: NMFS’ Fisheries Finance the United States Code, 46 U.S.C. 53701, contained in a fishery management plan
Program (FFP) provides long-term et seq., the FFP may provide long-term or associated regulation.’’ 16 U.S.C.
financing to the commercial fishing and financing to the commercial fishing and 1802(27). Such definition includes, but
aquaculture industries for fishing aquaculture industries for fishing is not limited to, IFQ fisheries.
vessels, fisheries facilities, aquaculture vessels, fisheries facilities, aquaculture The new authority provided by Public
facilities, and certain designated facilities, and certain designated Law 114–120 does not require FMCs to
individual fishing quota (IFQ). Section individual fishing quota (IFQs). Section initiate a request to establish a loan
302 of the Coast Guard Authorization 302 of the Coast Guard Authorization program in a fishery that is federally
Act of 2015 (Pub. L. 114–120) included Act of 2015 (Pub. L. 114–120) amended managed under a limited access system
new authority to finance the purchase of Chapter 537, providing the FFP with the in order for the FFP to provide financing
ethrower on DSK3G9T082PROD with PROPOSALS
harvesting rights in a fishery that is authority to finance the purchase of in such a fishery. However, under the
federally managed under a limited harvesting rights in a fishery that is MSA, FMCs are primarily responsible
access system. The FFP proposes to add federally managed under a limited for developing fishery management
a new section to the existing FFP access system. This amendment is plans (FMPs) for fisheries within their
regulations to implement this statutory codified at 46 U.S.C. 53702(b)(4)(B). authority that require conservation and
change. The net effect of this proposed This action would modify the existing management. It is possible that the
change to the regulations will be to Program regulations to reflect this availability of fisheries loans may have
provide additional authority for the statutory change. The net effect of this unanticipated effects on the
VerDate Sep<11>2014 16:28 Oct 30, 2017 Jkt 244001 PO 00000 Frm 00040 Fmt 4702 Sfmt 4702 E:\FR\FM\31OCP1.SGM 31OCP1](https://thefederalregister.org/doc/82_FR_50572/page/1.svg)
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Paperwork Reduction Act will implement programs authorized by Importantly, the FFP does not regulate
Notwithstanding any other provision law. Specifically, these rules enact or manage the affairs of its borrowers,
of the law, no person is required to regulatory additions to create a new and the regulations impose no
respond to, and no person shall be lending purpose authorized by Section additional compliance, operating or
subject to penalty for failure to comply 302 of the Coast Guard Authorization other fees or costs on small entities
with, a collection of information subject Act of 2015 (Pub. L. 114–120) and will other than a financing relationship
to the requirements of the PRA, unless be implemented in accordance with 50 would require.
CFR part 253, subpart B. This action As a result of this certification, an
that collection of information displays a
will create new § 253.31. initial regulatory flexibility analysis is
currently valid OMB Control Number.
As defined by NMFS for RFA not required and none has been
This proposed rule contains
purposes, this rule may affect small prepared.
collections-of-information subject to the
fishing entities that have annual
PRA, which have been approved by revenues of $11.0 million or less, List of Subjects in 50 CFR Part 253
OMB under control number 0648–0012. including, but not limited to, vessel
The application requirements contained Aquaculture, Community
owners, vessel operators, individual development groups, Direct lending,
in these rules have been approved under fishermen, small corporations, and
OMB control number 0648–0012. Public Financial assistance, Fisheries, Fishing,
others engaged in commercial fishing Individual fishing quota, harvesting
reporting burden for placing an activities regulated by NOAA.
application for FFP financing is rights (privileges).
Borrowers under this authority may also
estimated to average eight hours per Dated: October 25, 2017.
include large businesses. Notably,
response, including the time for because the FFP is a voluntary program Samuel D. Rauch, III,
reviewing instructions, searching that provides loans to qualified Deputy Assistant Administrator for
existing data sources, gathering and borrowers, non-borrowers—large or Regulatory Programs, National Marine
maintaining the data needed, and Fisheries Service.
small—would not be regulated by this
completing and reviewing the collection rule. For the reasons set forth in the
of information. Although the FFP requires certain preamble, NMFS proposes to amend 50
Send comments regarding this burden supporting documentation during the CFR part 253, subpart B, as follows:
estimate, or any other aspect of this data life of a loan, the requirements do not
collection, including suggestions for impose unusual burdens when PART 253—FISHERIES ASSISTANCE
reducing the burden, to NMFS (see compared to the burdens imposed by PROGRAMS
ADDRESSES) and by email to OIRA_ other lenders. Moreover, because the
submission@omb.eop.gov or fax to (202) Subpart B—Fisheries Finance Program
basic need for financing would continue
395–7285. to exist without the FFP, the individuals ■ 1. The authority citation for part 253
Regulatory Flexibility Act seeking financing would still need to continues to read as follows:
comply with similar, if not identical,
The Chief Counsel for Regulation of Authority: 46 U.S.C. 53701 and 16 U.S.C.
requirements imposed by another 4101 et seq.
the Department of Commerce has lender. Records required to participate
certified to the Chief Counsel for in the FFP are usually within the ■ 2. Section 253.31 is added to read as
Advocacy of the Small Business normal records already maintained by follows:
Administration (SBA) that this proposed fishermen. It should take fewer than
rule, if adopted, would not have a § 253.31 Harvesting rights loans.
eight hours per application to meet
significant economic impact on a these requirements. (a) Specific definitions. For the
substantial number of small entities. The information required from purposes of this section, the following
The Regulatory Flexibility Act (RFA), borrowers, such as income tax returns, definitions apply:
5 U.S.C. 601, et seq., requires that, insurance policies, permits, licenses, (1) Harvesting right(s) means any
‘‘[w]henever an agency is required by etc., is already available to them. privilege to harvest fish in a fishery that
section 553 of this title [5 USCS § 553], Depending on circumstances, the FFP is federally managed under a limited
or any other law, to publish general may require other supporting access system.
notice of proposed rulemaking for any documents, including financial (2) Limited access system has the
proposed rule, or publishes a notice of statements, property descriptions, and same meaning given to that term in
proposed rulemaking for an other documents that can be acquired at section 3 of the Magnuson-Stevens
interpretative rule involving the internal reasonable cost if they are not already Fishery Conservation and Management
revenue laws of the United States, the available. Act (16 U.S.C. 1802).
agency shall prepare and make available FFP lending is a source of long-term, (3) [Reserved]
for public comment an initial regulatory fixed rate capital financing and imposes (b) Loan Requirements and
flexibility analysis. Such analysis shall no regulatory requirements on anyone Limitations. These loan requirements
describe the impact of the proposed rule other than those applying for loans. FFP and limitations apply to individuals or
on small entities.’’ 5 U.S.C. 603(a). borrowers make a voluntary decision to entities who seek to finance or refinance
However, where an agency can certify use the available lending. the acquisition of harvesting rights.
‘‘that the rule will not, if promulgated, These loan programs will only have (1) The borrower must meet all
have a significant economic impact on positive impacts on borrowers. Because regulatory and statutory requirements to
ethrower on DSK3G9T082PROD with PROPOSALS
a substantial number of small entities’’ participation is voluntary and requires hold the harvesting rights at the time
then an agency need not undertake a effort and the outlay of an application any such loan or refinancing loan would
full regulatory flexibility analysis. 5 fee, borrowers for harvesting rights close.
U.S.C. 605(b). financing are assumed to have made a (2) NMFS will accept and consider
Participation in the FFP is entirely determination that using FFP financing the input of a Regional Fishery
voluntary. This action imposes no provides a benefit, such that the FFP’s Management Council at any time
mandatory requirements on any long-term, fixed rate financing provides regarding the availability of loans in a
business. Once final, this proposed rule only a positive economic impact. fishery under the Council’s authority.
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![50366 Federal Register / Vol. 82, No. 209 / Tuesday, October 31, 2017 / Proposed Rules
(i) The Council may submit an interest. The Program, at its option, may submitted in writing on or before
explanation to NMFS, in writing, as to also require all parties with significant December 15, 2017.
why the availability of financing for ownership interests to personally ADDRESSES: You may submit comments
harvesting rights in a fishery would guarantee loan repayment for any on this document, identified by NOAA–
harm the achievement of the goals and borrower that is a corporation, NMFS–2017–0052, by any of the
objectives of the Fishery Management partnership, or other entity, including following methods:
Plan applicable to the fishery. If NMFS collateral to secure the guarantees. Some • Electronic Submission: Submit all
accepts the Council’s reasoning, projects may require additional security, electronic public comments via the
harvesting rights loans will not be collateral, or credit enhancement as Federal e-Rulemaking Portal. Go to
provided, or will cease to be provided, determined, in the sole discretion, by http://www.regulations.gov/
in that fishery. the Program. #!docketDetail;D=NOAA-NMFS-2017-
(ii) If NMFS determines that (g) Program credit standards. 0052, click the ‘‘Comment Now!’’ icon,
harvesting rights loans will not be Harvesting rights loans, regardless of complete the required fields, and enter
provided in a fishery, NMFS will purpose, are subject to all Program or attach your comments.
publish a notice in the Federal Register general credit standards and • Mail: Submit written comments to
notifying the public that new loans will requirements. Collateral, guarantee and Lyle Enriquez, NMFS West Coast
not be made in that fishery. other requirements may be adjusted to Region, 501 W. Ocean Blvd., Suite 4200,
(iii) In such a scenario, pending individual credit risks. Long Beach, CA 90802. Include the
applications will be returned and loan [FR Doc. 2017–23570 Filed 10–30–17; 8:45 am] identifier ‘‘NOAA–NMFS–2017–0052’’
fees returned as exceptional BILLING CODE 3510–22–P
in the comments.
circumstances justify the action. Instructions: Comments must be
(3) The harvesting rights to be submitted by one of the above methods
financed must be issued in a manner in DEPARTMENT OF COMMERCE to ensure they are received,
which they can be individually documented, and considered by NMFS.
identified such that a valid and specific National Oceanic and Atmospheric Comments sent by any other method, to
security interest can be recorded. This Administration any other address or individual, or
determination shall be solely made by received after the end of the comment
the Program. 50 CFR Part 660 period, may not be considered. All
(c) Refinancing. (1) The Program may comments received are a part of the
refinance any existing debts associated [Docket No. 170817773–7905–1]
public record and will generally be
with harvesting rights a borrower RIN 0648–BG81 posted for public viewing on
currently holds, provided that: www.regulations.gov without change.
(i) The harvesting rights being Fisheries Off West Coast States; All personal identifying information
refinanced would have been eligible for Highly Migratory Fisheries; California (e.g., name, address, etc.) submitted
Program financing at the time the Drift Gillnet Fishery; Implementation of voluntarily by the sender will be
borrower purchased them, if Program a Federal Limited Entry Drift Gillnet publicly accessible. Do not submit
financing had been available, Permit confidential business information, or
(ii) The borrower meets all other otherwise sensitive or protected
AGENCY: National Marine Fisheries
applicable lending requirements, and information. NMFS will accept
(iii) The refinancing is in an amount Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), anonymous comments (enter ‘‘N/A’’ in
up to 80 percent of the harvesting rights’ the required fields if you wish to remain
current market value, as determined at Commerce.
anonymous).
the sole discretion of the Program, and ACTION: Proposed rule; request for
Written comments regarding the
subject to the limitation that the comments. burden-hour estimates or other aspects
Program will not disburse any amount SUMMARY: NMFS is proposing of the collection-of-information
that exceeds the outstanding principal regulations under the authority of the requirements contained in this proposed
balance, plus accrued interest (if any), of Magnuson-Stevens Fishery rule may be submitted to the West Coast
the existing harvesting rights’ debt being Conservation and Management Act Regional Office and by email to OIRA_
refinanced or its fair market value, (MSA) to implement a March 2017 Submission@omb.eop.gov or fax to (202)
whichever is less. recommendation by the Pacific Fishery 395–5806.
(2) In the event that the current Copies of the draft Regulatory Impact
Management Council (Council) to
market value of harvesting rights and Review and other supporting documents
amend the Fishery Management Plan for
principal loan balance do not meet the are available via the Federal
U.S. West Coast Fisheries for Highly
80 percent requirement in paragraph eRulemaking Portal: http://
Migratory Species (HMS FMP). The
(1)(iii) of this section, borrowers seeking www.regulations.gov, docket NOAA–
proposed rule would bring the State of
refinancing may be required to provide NMFS–2017–0052 or by contacting the
California’s limited entry (LE) drift
additional down payment. Regional Administrator, Barry Thom,
gillnet (DGN) permit program under
(d) Maturity. Loan maturity may not NMFS West Coast Region, 1201 NE
MSA authority. All current California
exceed 25 years, but may be shorter Lloyd Blvd., Portland, OR 97232–2182,
DGN permit holders would be eligible to
depending on credit and other or RegionalAdministrator.WCRHMS@
apply for, and receive, a Federal DGN
considerations. noaa.gov.
ethrower on DSK3G9T082PROD with PROPOSALS
(e) Repayment. Repayment will be by permit, and no additional DGN permits
equal quarterly installments of principal would be created. The proposed rule is FOR FURTHER INFORMATION CONTACT: Lyle
and interest. administrative in nature and is not Enriquez, NMFS, West Coast Region,
(f) Security. Although harvesting anticipated to result in increased 562–980–4025, or Lyle.Enriquez@
right(s) will be the primary collateral for activity, effort, or capacity in the noaa.gov.
a loan, the Program may require fishery. SUPPLEMENTARY INFORMATION: The HMS
additional security pledges to maintain DATES: Comments on the proposed rule FMP was prepared by the Council and
the priority of the Program’s security and supporting documents must be is implemented under the authority of
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Document Created: 2018-10-25 10:19:09
Document Modified: 2018-10-25 10:19:09
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule; request for comments. | |
| Dates | Comments must be submitted in writing on or before November 30, 2017, | |
| Contact | Paul Marx, at 301-427-8771 or via email at [email protected] | |
| FR Citation | 82 FR 50363 | |
| RIN Number | 0648-BG80 | |
| CFR Associated | Aquaculture; Community Development Groups; Direct Lending; Financial Assistance; Fisheries; Fishing; Individual Fishing Quota and Harvesting Rights (Privileges) |
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