Rsifq Ss 080706

SUPPORTING STATEMENT
SOUTHEAST REGION GULF OF MEXICO RED SNAPPER IFQ PROGRAM
OMB CONTROL NO.: 0648-xxxx

INTRODUCTION
The Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act)
authorizes the Gulf of Mexico Fishery Management Council (Council) to prepare and amend
fishery management plans for any fishery in waters under its jurisdiction. National Oceanic and
Atmospheric Administration (NOAA), National Marine Fisheries Service (Fisheries Service)
manages the red snapper fishery in the waters of the Gulf of Mexico under the Reef Fish Fishery
Management Plan (FMP). This amendment (Reef Fish FMP Amendment 26) proposes to
implement a transferable Individual Fishing Quota (IFQ) program in the Gulf of Mexico
commercial red snapper fishery (RIN 0648-AS67). A referendum required by Section 407(c) of
the Magnuson-Stevens Act and conducted by NOAA, Fisheries Service in February 2004
supported consideration of such a program. Additionally, a second referendum conducted in
February 2006, to approve Amendment 26, was supported by 87 percent of commercial
fishermen who were eligible to vote.
A.

JUSTIFICATION

1. Explain the circumstances that make the collection of information necessary.
The Gulf of Mexico red snapper fishery is overcapitalized. This overcapitalization has led to
derby fishery conditions. The IFQ program proposed is intended to reduce overcapacity and
eliminate derby fishing conditions. This collection-of-information addresses IFQ share
certificate and allocation debits and transfers, as well as effort information in the red snapper
fishery. The applicable regulatory citation is 50 CFR 622.16.
2. Explain how, by whom, how frequently, and for what purpose the information will be
used. If the information collected will be disseminated to the public or used to support
information that will be disseminated to the public, then explain how the collection
complies with all applicable Information Quality Guidelines.
IFQ share certificate and allocation debits and transfers would be tracked using an electronic
accounting/reconciliation process developed by NOAA, Fisheries Service, in which the IFQ
share certificate holder or allocation holder, dealer, NOAA, Fisheries Service, and NOAA,
Fisheries Service General Counsel for Enforcement and Litigation (GCEL) would participate.
The IFQ share or allocation holder and dealer would record IFQ share transactions. Quarterly
landing reports filed by the dealer should be consistent with NOAA, Fisheries Service quota
accounting. Additionally, annual shareholder and dealer reports should be consistent with
NOAA, Fisheries Service quota accounting. Shareholders are responsible for identifying vessels
which will be harvesting allocation for that particular shareholder through an active vessel report,
if more than one vessel is eligible to harvest red snapper under this program. The NOAA,
Fisheries Service accounts would monitor IFQ share transactions, as well as quota shares
suspended prior to issuance and other legal actions taken against IFQ share certificate holders in
which IFQ is garnished. For enforcement purposes, IFQ landings would be required to be
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offloaded at permitted IFQ dealers between 6:00 a.m. and 6:00 p.m. daily. Persons landing IFQ
catch would be required to notify NOAA, Fisheries Service Enforcement at least three hours in
advance of the date of landing and of the dealer where landing will occur.
IFQ share transfers will be documented using a paper-based process. Because of the numerous
implications for both an IFQ share transferor and transferee, these transactions must be
documented and authenticated. Therefore, both parties will be expected to sign this paper
document and to have the document notarized to authenticate the transaction.
IFQ transactions can be recorded by the IFQ share or allocation holder and dealer in one of two
ways. The first of these is to use a web based system (http://ifq.sero.nmfs.noaa.gov) in which the
share/allocation holder and dealer enter purchase data into the system with each cross-verifying
the other. The second method for reporting a purchase is for the share/allocation holder and
dealer to use an interactive voice recording (IVR) system (1-866-425-7627). These two methods
are the only accepted means of red snapper purchase reporting unless a catastrophic event
occurs.
During catastrophic conditions only, the IFQ program provides for use of paper-based
components for basic required functions as a backup. The Regional Administrator (RA) will
determine when catastrophic conditions exist, the duration of the catastrophic conditions, and
which participants or geographic areas are deemed affected by the catastrophic conditions. The
RA will provide timely notice to affected participants via publication of notification in the
Federal Register, NOAA weather radio, fishery bulletins, and other appropriate means and will
authorize the affected participants’ use of paper-based components for the duration of the
catastrophic conditions. NMFS will provide each IFQ dealer the necessary paper forms,
sequentially coded, and instructions for submission of the forms to the RA. The paper forms will
also be available from the RA. The program functions available to participants or geographic
areas deemed affected by catastrophic conditions will be limited under the paper-based system.
There will be no mechanism for transfers of IFQ shares or allocation under the paper-based
system in effect during catastrophic conditions. Assistance in complying with the requirements
of the paper-based system will be available via IFQ Customer Service 1-866-425-7627 Monday
through Friday between 8:00 a.m. and 4:30 p.m. eastern time.
It is anticipated that the information collected will be disseminated to the public or used to
support publicly disseminated information. As explained in the preceding paragraph, the
information gathered has utility. NOAA, Fisheries Service will retain control over the
information and safeguard it from improper access, modification, and destruction, consistent
with NOAA standards for confidentiality, privacy, and electronic information. The information
collection is designed to yield data that meet all applicable information quality guidelines. Prior
to dissemination, the information will be subjected to quality control measures and a predissemination review pursuant to Section 515 of Public Law 106-554.
3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological techniques or other forms of
information technology.
As stated above in #2, information other than transfer transactions would be submitted either via
a web-based system or an IVR telephone system, with paper submission an option only in
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catastrophic circumstances.
IFQ share certificate and allocation debits and transfers would be tracked using an electronic
accounting/reconciliation process developed by NOAA, Fisheries Service, in which the IFQ
share certificate holder or allocation holder, dealer, NOAA, Fisheries Service, and NOAA,
Fisheries Service GCEL would participate. The IFQ share certificate holder or allocation holder
and authorized IFQ dealers would record IFQ share transactions into a web based reporting
system. Quarterly landing reports filed by the dealer should be consistent with NOAA, Fisheries
Service quota accounting. Additionally, annual shareholder and dealer reports should be
consistent with NOAA, Fisheries Service quota accounting. The NOAA, Fisheries Service
accounts would monitor IFQ share transactions, as well as quota shares suspended prior to
issuance and other legal actions taken against IFQ share certificate holders in which IFQ is
garnished. The following information would be collected and monitored through the electronic
accounting/ reconciliation process:
• When an IFQ share certificate holder or allocation holder has sold IFQ species, and the IFQ
share certificate holder’s or allocation holder’s ID number.
• Sale price of IFQ species or IFQ share certificates.
• The weight of the catch and all biological management information as required.
• To whom the catch was sold and their dealer/permit number.
• Whether initial recipients hold enough IFQ share certificates.
• Reconciliations of IFQ share certificate holder or allocation holder/dealer transactions, which
would be confirmed and authorized using NOAA, Fisheries Service approval codes.
The real-time capability of such an electronic IFQ transaction process would be advantageous to
IFQ share certificate holders, NOAA, Fisheries Service, and U.S. Coast Guard (USCG)
enforcement personnel. For example, IFQ share certificate holders could electronically purchase
IFQ allocations to cover extra fish before they are landed (i.e. via satellite phone, cell phone or
ship to shore marine operator).
4. Describe efforts to identify duplication.
The Magnuson-Stevens Act's operational guidelines require each FMP to evaluate existing state
and federal laws that govern the fisheries in question, and the findings are made part of each
FMP. Each Fishery Management Council membership is comprised of state and federal officials
responsible for resource management in their area. These two circumstances allow identification
of other collections that may be gathering the same or similar information. In addition, each
FMP undergoes extensive public comment periods where potential applicants review the
proposed permit application requirements. Therefore, NOAA, Fisheries Service is confident it is
aware of similar collections if they exist. The other information proposed to be collected is not
being collected elsewhere; therefore, this data collection would not cause duplication.
5. If the collection of information involves small businesses or other small entities, describe
the methods used to minimize burden.
Because all applicants are considered small businesses, separate requirements based on size of
business have not been developed. Only the minimum data to meet the current and future needs
of NOAA, Fisheries Service fisheries managers are requested from participants in the red
snapper IFQ program.
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6. Describe the consequences to the Federal program or policy activities if the collection is
not conducted or is conducted less frequently.
NOAA, Fisheries Service would be unable to manage the red snapper IFQ fishery if this
collection were not conducted or were conducted less frequently. The approved participants
would be unknown and harvest rates could not be determined, which may result in allocations
being exceeded.
7. Explain any special circumstances that require the collection to be conducted in a
manner inconsistent with OMB guidelines.
No special circumstances are associated with this information collection.
8. Provide a copy of the PRA Federal Register notice that solicited public comments on the
information collection prior to this submission. Summarize the public comments received
in response to that notice and describe the actions taken by the agency in response to those
comments. Describe the efforts to consult with persons outside the agency to obtain their
views on the availability of data, frequency of collection, the clarity of instructions and
recordkeeping, disclosure, or reporting format (if any), and on the data elements to be
recorded, disclosed, or reported.
The notice of availability of Amendment 26, and the proposed rule to implement Amendment 26,
include a notice of and request for comments on this data collection.
Because these data collection programs are part of fishery management plans, all aspects of the
programs have been reviewed by both statistical and constituent advisory committees.
Furthermore, comments and suggestions from fishermen are routinely submitted, reviewed, and
considered. Experience with the various programs, some of which have been operating for many
years, provides a continual feedback mechanism to NOAA, Fisheries Service on issues and
concerns to the applicants. Amendment 26 did not raise an unusual amount of controversy
during the Council development process. We believe that there are no major problems with
Amendment 26 that have not been resolved.
9. Explain any decisions to provide payments or gifts to respondents, other than
remuneration of contractors or grantees.
There are no payments or other remunerations to respondents.
10. Describe any assurance of confidentiality provided to respondents and the basis for
assurance in statute, regulation, or agency policy.
All data that are submitted are treated as confidential in accordance with NOAA Administrative
Order 216-100.

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11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private.
No questions of a sensitive nature are asked.
12. Provide an estimate in hours of the burden of the collection of information.

Collection
Dealer Transaction
Report
Annual Dealer
Report
Dealer Account
Activation
Shareholder Account
Activation

Responsible
Party

Number of
Responses per
Responsible
Party

Burden
Time

Annual
Responses

Total Annual
Burden

Dealer (208)

18

7 minutes

3720

434 hours

Dealer (208)

1

10 minutes

208

35 hours

Dealer (208)

1

5 minutes

208

17.5 hours

1

5 minutes

618

51.5 hours

1

10 minutes

865

144 hours

1

10 minutes

618

103 hours

4

3 minutes

3720

186 hours

0.06

10 minutes

40

6.5 hours

0.16/0.08

15 minutes

98

24.5 hours

0.24

5 minutes

149

12.5 hours

10,244

1015

Transfer of
Allocation

Shareholder
(618)
Shareholder/
Fisherman
(865)
Shareholder
(618)
Fisherman
(865)
Shareholder
(618)
Shareholder
(618)/Reef Fish
Permit Holder
(1209*)
Shareholder
(618)

TOTALS

1417

Fisherman Account
Activation
Annual Shareholder
Report
Notification of
Landing Time
Active Vessels
Report
Transfer of Share

* 865 current red snapper fishermen and 344 fishermen eligible to fish for red snapper
13. Provide an estimate of the total annual cost burden to the respondents or recordkeepers resulting from the collection (excluding the value of the burden hours in #12
above).
Section 304(d)(2)(A) of the Magnuson-Stevens Act provides the Secretary of Commerce the
authority to establish a fee to assist in recovering the actual costs directly related the
management and enforcement of any IFQ program. Such a fee may not exceed three percent of
the ex-vessel value of fish harvested under any such program, and must be collected either at the
time of landing, filing of a landing report, or sale of such fish during a fishing season or in the
last quarter of the calendar year in which the fish is harvested. Fees collected shall be in addition
to any other fees charged under the Magnuson-Stevens Act and shall be deposited in the Limited
Access System Administration Fund established under section 305(h)(5)(B) of the MagnusonStevens Act except that the portion of fees reserved under section 304(d)(4)(A) of the
Magnuson-Stevens Act shall be deposited in the United States Department of the Treasury and
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available, subject to annual appropriations, to cover the costs of new direct loan obligations and
new loan guarantee commitments as required by section 504(b)(1) of the Federal Credit Reform
Act (2 U.S.C. 661 c(b)(1). Collection of such fees is necessary to recover cost for enforcement
and program administration including data collection, management, and distribution.
A three percent fee of the ex-vessel value of landed fish will be collected from the fishermen at
the point of purchase by an authorized red snapper IFQ dealer. Dealers will then be responsible
for submitting the cost recovery fees on a quarterly basis. Based on a 4.65 million pound
commercial red snapper quota, a 3% fee, and an ex-vessel price of $2.83 per pound, the fee
total would be $383,625 for 865 fishermen ($443 per fisherman).
The cost of share transfer notarization is covered under another collection, 0648-0205.
14. Provide estimates of annualized cost to the Federal government.
Total budget
Existing SERO funds
HQ funding
IVR funding

$500,000.00
$115,000.00
$250,000.00
$135,000.00

Planned expenditures
Contracted web development
IVR
Administrative, travel, printing, etc.

$423,000.00
$288,000.00
$135,000.00
$77,000.00

15. Explain the reasons for any program changes or adjustments reported in Items 13 or
14 of the OMB 83-I.
This is a new collection of information.
16. For collections whose results will be published, outline the plans for tabulation and
publication.
The results from this collection are not planned for statistical publication.
17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons why display would be inappropriate.
The OMB number will be displayed.
18. Explain each exception to the certification statement identified in Item 19 of the
OMB 83-I.
There are no exemptions to the certification statement identified in Item 19 of OMB 83-I.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
The collection does not employ statistical methods.
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