Justification for Change

JUSTIFICATION FOR CHANGE
ALASKA PACIFIC HALIBUT FISHERIES: LIMITED ACCESS FOR
CHARTER HALIBUT VESSELS
OMB CONTROL NO. 0648-0592
This request is to require those who are applying to transfer a single bundle of more than
five charter halibut permits to submit a copy of a business sale contract, when applicable,
with the transfer application.
When the final rule Regulation Identifier Number (RIN) 0648-AW92 becomes effective, a
limited access permit program will be implemented for vessels that provide guided (charter)
fishing services for anglers catching and retaining Pacific halibut in Southeast and Southcentral
Alaska. To prevent excessive consolidation, the charter halibut permit program would prohibit a
person from holding more than five charter halibut permits.
There are two exceptions to the five-permit maximum. A person may hold more than five
charter halibut permits if the person (1) is initially issued more than five permits, or (2) receives
by transfer all permits initially issued to a business that also is being transferred to that person in
its entirety (vessels, lodges, fishing equipment, etc). The North Pacific Fishery Management
Council recommended that National Marine Fisheries Service (NMFS) include the second
exception to the five-permit maximum in order to allow for succession of individual businesses,
such as a transfer to a family member. Originally, the applicant applying for permit transfers
under the second exception to the five-permit maximum would have been required to attest on
the transfer application that all business assets were being transferred along with the permits; no
further documentation would have been necessary.
After reviewing the comments received on the proposed rule (74 FR 18178, April 21, 2009), and
the charter halibut permit transfer application, NMFS determined that applicants applying under
the second exception to the five-permit maximum should also be required to submit a copy of the
business sale contract with the transfer application. Comment 103 on the proposed rule
recommended that NMFS remove the requirement that a transfer of more than five permits be
contingent on the transfer of all business assets. The commenter noted that a business sale is a
market decision between the buyer and seller, and the transfer of charter halibut permits should
not rely on whether this private transaction includes all business assets. The commenter also
noted that the transfer of all assets requirement did not seem administratively feasible or
appropriate.
NMFS determined that it would not remove the requirement for transfer of all assets from the
final rule, as suggested by the commenter, because the North Pacific Fishery Management
Council recommended this limited exception to the five-permit maximum. Requiring applicants
for permit transfers under this exception to submit a copy of the business sale contract would (1)
provide verifiable documentation that a business is being transferred along with all initially
issued charter halibut permits, and (2) enable NMFS to implement the Council’s
recommendation. NMFS would not define or describe all of the assets that would have to be
included in the sale of a charter vessel fishing business because each sale will be unique.

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As the rule did not specify the items required for a transfer, this added requirement for a copy of
the business sale contract is an administrative decision, although based on discussion during the
rulemaking process.
We are not at this time revising our burden estimate: the additional burden of providing a copy of
the business sale contract along with the transfer application is minimal because sale contracts
are a standard component of business transactions and should be readily available to applicants.
No additional cost is estimated because the costs for other attached documentation would
incorporate any additional postage. Eight participants are potentially in a position to make this
transfer.

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