Final Regulatory Impact Review/Initial Regulatory Flexibility Analysis For Amendment 44 to the Fishery Management Plan for Bering Sea and Aleutian Islands King and Tanner Crabs: Modifications to BSAI Crab Community Provisions

In August of 2005, fishing in the Bering Sea and Aleutian Island crab fisheries began under a new sharebased management program, known as the Crab Rationalization Program (CR Program). The CR Program is unique in several ways, including the allocation of processing shares corresponding to a portion of the harvest share pool. These processor shares were allocated to processors based on their processing histories. To protect community interests, holders of most processor shares were required to enter agreements granting community designated entities a right of first refusal on certain transfers of those shares. Since implementation, community representatives and fishery participants have suggested that some aspects of the rights of first refusal may inhibit their effectiveness in protecting community interests. This amendment package considers actions intended to address the following six concerns:

1. the relatively short period of time allowed for exercising and performing under the right
2. the lapse of the right after three consecutive years of use of the individual processing quota (IPQ) outside the community or if a community entity elects not to exercise the right on a transaction to which it applies
3. the requirement that the right apply to all assets involved in a transaction, which could include assets outside the community
4. the limited protection to community interests by the right of first refusal
5. the need for better notices to community entities and NOAA Fisheries to track use and transfer of shares subject to the right
6. the need for more flexibility in terms of what the right of first refusal contract will apply to