0648-0376 Supporting Statement A

SUPPORTING STATEMENT

U.S. Department of Commerce

National Oceanic & Atmospheric Administration

Fishery Capacity Reduction Program Buyback Requests

OMB Control No. 0648-0376

Abstract

This is a request for revision and extension of a currently approved collection. The National Marine Fisheries Service (NMFS) manages the capacity reduction loans issued in accordance with fishing capacity reduction programs to prevent or end overfishing, rebuild stocks of fish, or achieve measurable or significant improvements in the conservation and management of the fishery. Under the authority of section 312(b) of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act), the Secretary may buy back vessels and/or fishing permits in order to obtain the maximum sustained reduction in fishing capacity at the least cost and in a minimum period of time. Funding for such programs is authorized under Section 312(c) of the Magnuson-Stevens Act and allows NMFS to obtain funding under authorization of the Saltonstall-Kennedy Act, through specific appropriations, from industry fee systems, and from public, private, or non-profit sources. This information collection previously included five (5) additional types of information collection requirements. These are being removed from this renewal as they are associated with loan creation, and no new loans are anticipated going forward.

Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

This request is for a revision and extension of a current information collection.

The Sustainable Fisheries Act (SFA) amended the Magnuson-Stevens Fishery Conservation and Management Act (MSA) to provide for voluntary reduction of excess fishing capacity through fishing capacity reduction (buyback) programs. Excess fishing capacity decreases fisheries earnings, complicates fishery management, and imperils fishery conservation. Congress acknowledged this by providing capacity reduction program authority. This extension request for information collection approval involves standard information required to be included in any program request for any fishery.

The statutory objective of a program is "to obtain the maximum sustained reduction in fishing capacity at the least cost and in a minimum period of time." Buybacks pay fishermen either to: (1) surrender their fishing permits; or (2) both surrender their permits and either scrap their fishing vessels or restrict vessel title to prevent fishing. Buybacks can involve either a Federal or State fishery. Buybacks can be funded via a long-term loan from the Federal government to the fishery (industry-funded buybacks), to be repaid by the industry by post-buyback landing fees, or funded from appropriations (non-industry funded) or other non-loan sources of funds. Programs involving industry financed loans are authorized by section 1111 of title XI of the Merchant Marine Act_ 1936.

Framework guidelines for future implementation of programs for specific fisheries was published at 50 CRF part 600 (subpart L) on May 18, 2000. These guidelines were intended to provide direction and elaboration for future, fishery-specific rules. The SFA amendments to the MSA require a separate rule for each specific program. There are currently four (4) fishing capacity reduction programs that have been published at 50 CFR part 600 (Subpart M), and which are in repayment under the existing Paperwork Reduction Act (PRA) OMB Control Number listed above.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

Buybacks can involve two (2) types of information collection requirements on the public. These are:

1. Buyback Fee Collection Reports

2. Buyback Annual Reports

The instructions for the prior collection of information for items (1 and 2) vary for each buyback, due to the different nature/operation of each individual fishery.

Buyer Reporting and Recordkeeping for Buyback Fee Collection Reports and Annual Reports

The repayment of an industry-funded program is dependent on the collection of fees by the first purchasers of the fish from the buyback fishery, or the Secretary may determine that the fees should be collected from the seller. These fees are remitted by the fish buyer or seller to a lockbox at the Treasury Department where they are eventually applied against the buyback loan. The statutory authority exists to collect up to five percent (5%) of the ex-vessel sale value of the fish to repay the loan.

Each fish buyer, or seller if the Secretary has determined that fees must be collected from the seller, required to collect fees must maintain a segregated account at a Federally-chartered national bank for the sole purpose of depositing fee collections and disbursing them there from to the Secretary. At the end of each business day the buyer or seller must deposit into the account all collected fees. On the last business day of each calendar month, the fish buyer or seller will send the full deposit principle to NMFS. To support this system, the buyer or the seller must maintain certain records and submit an annual report.

Records maintenance: Each fish buyer, or seller if the Secretary has determined such fees should be collected from the seller, must, on forms the Secretary specifies, maintain accurate records of all transactions involving fees. Each fish buyer or seller must maintain such records in a secure and orderly manner for a period of at least three (3) years from the date of the transactions involved. The following information shall be maintained by each fish buyer, or seller as appropriate, for all deliveries of post-buyback fish such fish buyer buys, or fish seller sells:

(1) Delivery date;

(2) Fish seller's name;

(3) Number of pounds of each species of post-buyback fish bought;

(4) Name of fishing vessel from which unloaded;

(5) Ex-vessel price per pound of each species of such fish;

(6) Total ex-vessel value of such fish;

(7) Net ex-vessel value of such fish;

(8) Name of party to whom net ex-vessel value paid if other than fish seller;

(9) Date net ex-vessel value paid;

(10) Total fee amount collected; and

(11) Such other information as the Secretary shall deem reasonably necessary.

Much of this information (date, name, pounds delivered, vessel, price per pound, date) is collected as part of normal fish ticket procedures in many fisheries. The fee information and the length of the record retention is an additional burden.

In addition, the buyer or seller collecting fees must maintain records on all fee collection deposits to, and disbursements from, the deposit account, including:

(1) Dates and amounts of deposits;

(2) Dates and amounts of disbursements to the Fund's lockbox account the Secretary designates; and

(3) Dates and amounts of disbursements to the fish buyer, fish seller, or other parties, of interest earned on deposits (this information would be a normal part of bank statements).

The fish ticket and deposit/disbursement information is necessary to enforce the fee collection process to ensure that the Federal government is repaid and that fishermen's fees are directed to that end.

Annual report: Buyers or sellers directed to pay the fees by the authority of the Secretary must also submit a report not later than the date specified in each fishery specific program rule. The report must contain the following program information for the preceding calendar year:

(1) Total pounds of fish purchased, or sold, from each fish seller;

(2) Total net ex-vessel value of payments to each fish seller;

(3) Total fee amounts collected from, or by, each fish seller;

(4) Total fee collection amounts deposited by month;

(5) Dates and amounts of monthly disbursements to the Fund lockbox account;

(6) Total amount of deposit interest withdrawn by fish buyer or seller; and

(7) Balance of depository account at year-end.

This information is also needed to track and enforce the fee collection system.

These reporting requirements would apply in situations where one of the parties in a sale refuses to either pay or collect the required fees.

If a fish buyer refuses to collect the fee, the fish seller is supposed to advise the fish buyer of the fish seller's fee payment obligation and of the fish buyer's fee collection obligation. If the fish buyer still refuses to collect the fee, the fish seller must, within the next 24 hours, forward the fee to the Secretary and advise the Secretary in writing of the full particulars, including: the fish buyer's and fish seller's name, address, and telephone number; the name of the fishing vessel from which the fish seller made post-buyback fish delivery and the date of doing so; the quantity and ex-vessel value of each species of such fish delivered; and the fish seller's reason for refusing to collect the fee in accordance with this subpart.

If a fish seller refuses to pay the fee to the buyer, the fish buyer should advise the fish seller of the fish buyer's collection obligation and of the fish seller's payment obligation. If the fish seller still refuses to pay the fee, the fish buyer must either collect the fee over the fish seller's protest or refrain from buying the post-buyback fish and, within the next 24 hours, advise the Secretary in writing of the full particulars, including: the fish buyer's and fish seller's name, address, and telephone number; the name of the fishing vessel from which the fish seller made or attempted to make post-buyback fish delivery and the date of doing so; the quantity and ex-vessel value of each species of such fish delivered or attempted to be delivered; whether the fish buyer collected the fee over the fish seller's protest or refrained from buying such fish; and the fish seller's reason for refusing to pay the fee.

These reports are necessary to correct any problems that develop in the fee-collection process.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

The collection of information involves the use of electronic collection techniques and submission by postal mail. The current forms are available online https://www.fisheries.noaa.gov/national/funding-and-financial-services/fishing-capacity-reduction-programs. The Buyback program permits and encourages electronic submission of reports and payments be made electronically via pay.gov, but also accepts submission by postal mail via lockbox. The basis for the decision for adopting this means of collection is for convenience of the buyer/processor to submit payment by credit card or check.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Question 2.

Because NOAA is the sole Federal provider of buybacks, there is no duplication of other information requests. Each submission is an individual monthly or annual report of payment made and pounds of fish purchased. There is no duplication of documentation, because each report is unique and only one is submitted with each payment or once annually.

5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.

These requirements should not have a significant impact on small businesses or entities.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

If the collections were not conducted, statutorily mandated financial assistance could not be delivered. The only requirement with a set frequency of submission is the fee-related submission of an annual report. This frequency is deemed minimal for protecting the process from abuse.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner that is inconsistent with OMB guidelines

The requirements are consistent with OMB guidelines except for the following: Reporting will take place more often than quarterly in the case of submission of the fee collections, which are required for any month with fishing activity pertaining to the buyback. Increased frequency may be deemed necessary for safer management and more efficient repayment.

8. If applicable, provide a copy and identify the date and page number of publications in the Federal Register of the agency's notice, required by 5 CFR 1320.8 (d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

Public comment was solicited in a Federal Register notice (86 FR 6634) published on January 22, 2021. One public comment was received and did not have any relevance to the Federal Register Notice, which was to notify the public of the extension of currently approved information collection. In summary, the public comment shared the personal feelings the commenter had about the buyback programs. The agency did not respond to this comment, because it is not applicable to the extension of the currently approved information collection.

Buybacks also directly reached out to current participants in each of the four (4) buyback programs.

Responses included:

(1) If approved please be sure it gets to PSFMC so it can be tied in with the e-ticket program. (This is referring to the Pacific Coast Groundfish buyback fee collection form)

(2) No comment

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

Aside from the loan that may be issued as part of a program, no payments will be made to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy. If the collection requires a systems of records notice (SORN) or privacy impact assessment (PIA), those should be cited and described here.

Confidentiality and Privacy Act statements are located on each form.

“Confidential name and address information may be released via a NOAA website for informational purposes. All other data submitted will be handled as confidential material in accordance with NOAA Administrative Order 216‐100, Protection of Confidential Fisheries Statistics.”

“Privacy Act: The authority regarding establishment of Fishing Capacity Reduction Programs is 16 U.S.C. §1861 (b)‐(e). §§ 600.1000‐600.1017 provides the Fishing Capacity Reduction Framework. Specific Fishery or Program Fishing Capacity Regulations authorizations are §§ 600.1100‐600.1108.”

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior or attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

No questions or information of a sensitive nature, such as sexual behavior or attitudes, religious beliefs, and other matters that are commonly considered private, are requested by the buyback loans programs.

12. Provide estimates of the hour burden of the collection of information.

Information Collection	Type of Respondent (e.g., Occupational Title)	# of Respondents (a)	Annual # of Responses / Respondent (b)	Total # of Annual Responses (c) = (a) x (b)	Burden Hrs / Response (d)	Total Annual Burden Hrs (e) = (c) x (d)	Hourly Wage Rate (for Type of Respondent) (f)	Total Annual Wage Burden Costs (g) = (e) x (f)
Buyback Fee Collection Reports	Fishing company accounting professional	130		1,320		660		$25,911.60
BSAI Crab		40	10	400	0.5	200	$39.26	$7,852.00
Pacific Coast Groundfish		50	12	600	0.5	300	$39.26	$11,778.00
BSAI Non-Pollock		20	12	240	0.5	120	$39.26	$4,711.20
SE AK Purse Seine Salmon		20	4	80	0.5	40	$39.26	$1,570.40
Buyback Annual Reports	Fishing company accounting professional	90		90		360		$14,133.60
BSAI Crab		40	1	40	4	160	$39.26	$6,281.60
Pacific Coast Groundfish		10	1	10	4	40	$39.26	$1,570.40
BSAI Non-Pollock		20	1	20	4	80	$39.26	$3,140.80
SE AK Purse Seine Salmon		20	1	20	4	80	$39.26	$3,140.80
Totals				1,410		1,020		$40,045.20

Data source for wages was downloaded on 4/29/2021 by KF from U.S. Bureau of Labor & Statistics Median wage of Accountants and Auditors in 2020.

Accountants and Auditors (bls.gov)

Explanation of how the burden was estimated

The burden was estimated based on the number of submissions per form/report, per year, and completion time for each. Fee collection reports should only require approximately 30 minutes or less to complete, and the number of submissions per buyback per year range from four to 12. Annual reports take approximately four hours to complete and are only submitted once a year.

The estimated burden is as follows:

BSAI Crab Buyback

Fee collection reports: 40 respondents x 10 responses x 10 minutes/response = 200 hours

Annual report: 40 respondents x 1 response x 4 hours = 160 hours

Total: 40 respondents, 440 responses, 360 hours

Pacific Coast Groundfish Buyback

Fee collection reports: 50 respondents x 12 responses x 10 minutes/response = 300 hours

Annual report: 10 respondents x 1 response x 4 hours = 40 hours

Total: 50 respondents, 610 responses, 340 hours

BSAI Non-Pollock Buyback

Fee collection reports: 20 respondents x 12 responses x 10 minutes/response = 120 hours

Annual report: 20 respondents x 1 response x 4 hours = 180 hours

Total: 20 respondents, 260 responses, 200 hours

SE AK Purse Seine Salmon Buyback

Fee collection reports: 20 respondents x 4 responses x 10 minutes/response = 40 hours

Annual report: 20 respondents x 1 response x 4 hours = 80 hours

Total: 20 respondents, 100 responses, 120 hours

13. Provide an estimate for the total annual cost burden to respondents or record keepers resulting from the collection of information. (Do not include the cost of any hour burden already reflected on the burden worksheet).

Information Collection	# of Respondents (a)	Annual # of Responses / Respondent (b)	Total # of Annual Responses (c) = (a) x (b)	Cost Burden / Respondent (h)	Total Annual Cost Burden (i) = (c) x (h)
Buyback Fee Collection Reports	130	38	1,320		990
BSAI Crab	40	10	400	0.75	300
Pacific Coast Groundfish	50	12	600	0.75	450
BSAI Non-Pollock	20	12	240	0.75	180
SE AK Purse Seine Salmon	20	4	80	0.75	60
Buyback Annual Reports	90	4	90		36
BSAI Crab	40	1	40	0.4	16
Pacific Coast Groundfish	10	1	10	0.4	4
BSAI Non-Pollock	20	1	20	0.4	8
SE AK Purse Seine Salmon	20	1	20	0.4	8
TOTALS			1,410		1,026

There are no capital/start-up costs associated with this information collection.

Annualized costs per respondent are estimated at printing costs of: While a portion of the respondents submit the information electronically, we understand the respondents also keep or send paper copies.

U.S. First Class postage - $0.55 letter

BSAI Crab Buyback

1 page, $0.20 per page, $0.55 postage, 10 responses per year for 0648-0376 BSAI Crab Fee Collection Report;

2 pages, $0.20 per page, 1 response per year for 0648-0376 BSAI Crab Annual Report

Based on 40 respondents, printing would cost $264.00 per year.

Pacific Coast Groundfish Buyback

1 page, $0.20 per page, $0.55 postage, 12 responses per year for 0648-0376 Pacific Coast Groundfish Fee Collection Report;

2 pages, $0.20 per page, 1 response per year for 0648-0376 Pacific Coast Groundfish Mothership Annual Report

Based on 50 respondents, printing would cost $366.00 per year.

BSAI Non-Pollock Buyback

1 page, $0.20 per page, $0.55 postage, 12 responses per year for 0648-0376 BSAI Non-Pollock Fee Collection Report;

2 pages, $0.20 per page, 1 response per year for 0648-0376 BSAI Non-Pollock Annual Report

Based on 20 respondents, printing would cost $156.00 per year.

SE AK Purse Seine Salmon Buyback

1 page, $0.20 per page, $0.55 postage, 4 responses per year for 0648-0376 SE AK Purse Seine Salmon Fee Collection Report;

2 pages, $0.20 per page, 1 response per year for 0648-0376 SE AK Purse Seine Salmon Annual Report

Based on 20 respondents, printing would cost $60.00 per year.

14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.

The average percentage of effort is 10% per employee based on employee performance plans and how much time is spent processing the fee collection reports and annual reports. The employees working on the buyback loan reports range from ZA-3 to ZA-4 on the pay scale. The median salaries for each grade and step are represented in the table, with the total estimated cost to government totaling $42,142.16.

Wage information 4/26/2021 from: Page 69 - ZA pay table, Washington, D.C. metro area

https://www.commerce.gov/sites/default/files/2021-01/CAPS%20Standard%20Chart%202021.pdf

Cost Descriptions	Grade/Step	Loaded Salary /Cost	% of Effort	Fringe (if Applicable)	Total Cost to Government
Federal Oversight	ZA-3	$169,862.26	10%		$ 16,986
Other Federal Positions	ZA-4	$251,559.30	10%		$ 25,156
Contractor Cost
Travel
Other Costs:
TOTAL					$ 42,142

15. Explain the reasons for any program changes or adjustments reported in ROCIS.

The significant reduction in hourly burden, number of respondents, and number of responses is due to paying off the AFA Pollock buyback loan in 2020 and no new buyback loans and costs associated with loan creation are anticipated, as they were in previous PRA. Current calculations are for work on monthly fee collection reports and annual reports only.

In the previous PRA renewal, it was estimated that there was no annualized cost of this information collection to the federal government. At the time, the buyback team did not have an effective methodology of calculating this cost.

Information Collection	Respondents		Responses		Burden Hours		Reason for change or adjustment
	Current Renewal / Revision	Previous Renewal / Revision	Current Renewal / Revision	Previous Renewal / Revision	Current Renewal / Revision	Previous Renewal / Revision
Buyback Fee Collection Reports	130	500	1,320	1600	660	3200	IC previously titled "Buyer (or Seller) monthly reports." Title changed and additional breakdown included for increased clarity. No new buyback loans and costs associated with loan creation are anticipated, as they were in the previous renewal. Current calculations are for work on monthly fee collection reports and annual reports. There is a significant reduction in hourly burden/respondents due to paying off the AFA Pollock buyback loan in 2020
BSAI Crab	40	100	400	400	200	850
Pacific Coast Groundfish	50	250	600	400	300	950
BSAI Non-Pollock	20	50	240	400	120	700
SE AK Purse Seine Salmon	20	100	80	400	40	700
Buyback Annual Reports	90	250	90	250	360	1000	IC previous titled "Buyer (or seller) annual reports." Title changed and additional breakdown included for increased clarity. No new buyback loans and costs associated with loan creation are anticipated, as they were in the previous renewal. Current calculations are for work on monthly fee collection reports and annual reports. There is a significant reduction in hourly burden/respondents due to paying off the AFA Pollock buyback loan in 2020
BSAI Crab	40	50	40	75	160	400
Pacific Coast Groundfish	10	100	10	75	40	300
BSAI Non-Pollock	20	50	20	50	80	150
SE AK Purse Seine Salmon	20	50	20	50	80	150
Fishing Capacity Reduction Program Implementation Plans	0	1	0	1	0	6,634	These ICs are being removed as no new loan programs or costs associated are anticipated; we do not have the authority to create them and there is no indication of any coming in the future
State approvals of implementation plans and amendments to state FMP	0	1	0	1	0	270
Advance and post-bid referenda and bids	0	400	0	1000	0	4000
Buyer recordkeeping (fish tickets)	0	500	0	2500	0	417
Buyer/seller reports	0	12	0	12	0	48
Advisements of conflicts in ownership claims	0	10	0	10	0	10
Total for Collection	220	1662	1,410	5374	1,020	15,579
Difference	-1,442		-3,964		-14,559

Information Collection	Labor Costs		Miscellaneous Costs		Reason for change or adjustment
	Current	Previous	Current	Previous
Buyback Fee Collection Reports	$ 25,911.60	NA	990	357	Labor costs not previously calculated.
BSAI Crab	$ 7,852.00	NA	300	90
Pacific Coast Groundfish	$ 11,778.00	NA	450	180
BSAI Non-Pollock	$ 4,711.20	NA	180	47
SE AK Purse Seine Salmon	$ 1,570.40	NA	60	40
Buyback Annual Reports	$ 14,133.60	NA	36	130	Labor costs not previously calculated.
BSAI Crab	$ 6,281.60	NA	16	60
Pacific Coast Groundfish	$ 1,570.40	NA	4	10
BSAI Non-Pollock	$ 3,140.80	NA	8	30
SE AK Purse Seine Salmon	$ 3,140.80	NA	8	30
Fishing Capacity Reduction Program Implementation Plans	0	NA	0	200	These ICs are being removed as no new loan programs or costs associated are anticipated; we do not have the authority to create them and there is no indication of any coming in the future
State approvals of implementation plans and amendments to state FMP	0	NA	0	180
Advance and post-bid referenda and bids	0	NA	0	684
Buyer recordkeeping (fish tickets)	0	NA	0	0
Buyer/seller reports	0	NA	0	10
Advisements of conflicts in ownership claims	0	NA	0	36
Total for Collection	$ 40,045.20	NA	1026	1597
Difference	$ 40,045.20		-571

16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The results will not be published.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

The agency plans to display the expiration date for OMB approval of the information collection on all instruments.

18. Explain each exception to the certification statement identified in “Certification for Paperwork Reduction Act Submissions."

The agency certifies compliance with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).