[Federal Register Volume 62, Number 216 (Friday, November 7, 1997)]
[Rules and Regulations]
[Page 60182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29507]
[[Page 60182]]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 679
[Docket No. 960717195-7255-03; I.D. 100897E]
RIN 0648-AI95
Fisheries of the Exclusive Economic Zone Off Alaska; Insurance
Coverage Provisions for Observer Contractors under the North Pacific
Interim Groundfish Observer Program
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Final rule.
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SUMMARY: NMFS issues regulations that clarify an insurance coverage
provision for observer contractors who provide observer services to
vessels and shoreside processors participating in the groundfish
fisheries of the Gulf of Alaska (GOA) and the Bering Sea and Aleutian
Islands management area (BSAI). This action is necessary to respond to
the North Pacific Fishery Management Council's (Council's) Insurance
Technical Committee (ITC) recommendation to correct the terminology
used to delineate required insurance coverages, by changing the
references to ``Contractual General Liability'' to read ``Commercial
General Liability.''
DATES: Effective November 7, 1997.
FOR FURTHER INFORMATION CONTACT: Kim S. Rivera, 907-586-7228.
SUPPLEMENTARY INFORMATION: In 1994, the ITC recommended that
standardized insurance coverage provisions be required of
observer contractors who provide observer services to vessels and
shoreside processors participating in the groundfish fisheries of the
GOA and the BSAI. In 1996, NMFS implemented regulations (61 FR 56425,
November 1, 1996) reflecting the ITC's recommendation and required
observer contractors to provide NMFS with copies of ``certificates of
insurance'' that verified the following coverage provisions: (1)
Maritime Liability to cover ``seamen's'' claims under the Merchant
Marine Act (Jones Act) and General Maritime Law, (2) coverage under the
U.S. Longshore and Harbor Workers' Compensation Act, (3) States
Workers' Compensation as required, and (4) Contractual General
Liability.
At its June 4, 1997, meeting, the ITC clarified that its 1994
recommendation for standardized insurance provisions was intended to
include a requirement for Comprehensive General Liability, not
Contractual General Liability. Contractual General Liability refers to
an endorsement to a Comprehensive General Liability policy, and extends
the liability coverage to an additional party, for example, the vessel
owner. In this instance, a contractual endorsement represents a shift
in the responsibility of certain liabilities from the vessel owner to
the observer contractor. While the observer contractor may offer this
endorsement as an opinion in their contracts with vessel owners, the
ITC intended that this shift of liability responsibilities be optional,
not mandatory.
After the June Council meeting, the ITC clarified further that due
to a recent change in the use of the standard liability coverage form
used by insurance brokers, Commercial General Liability is the correct
term to use, not Comprehensive General Liability.
Therefore, in consultation with the Council's ITC, NMFS clarifies
regulations requiring standardized insurance provisions for observer
contractors to accurately reflect the original intent of the ITC.
Accordingly, NMFS revises the regulation at Sec. 679.50(i) (2) (xiv)
(E) (4) to clarify that observer contractors are required to provide a
certificate of insurance that, in addition to other listed
requirements, verifies Commercial General Liability coverage. This
change means that observer contractors are not required to carry a
contractual endorsement on their Commercial General Liability policy
but they could offer the contractual endorsement as an option to the
entities with whom they have contracts.
Classification
Pursuant to 5 U.S.C. 553 (b) (B), a rule may be issued without
prior notice and opportunity for public comment if providing such
notice and comment would be impractical, unnecessary, or contrary to
the public interest. Additionally, a rule may be made effective prior
to 30 days after its issuance if the rule relieves a restriction
pursuant to 5 U.S.C. 553 (d) (1).
This final rule accurately implements the original intent of the
ITC and NMFS concerning standardized insurance coverage provisions for
observer contractors. The Assistant Administrator for Fisheries, NOAA,
(Assistant Administrator) finds that
providing an opportunity for prior notice and comment on this rule
is unnecessary. This rule does not eliminate the basic insurance
requirement. Rather, by using the correct terminology, it merely
clarifies the original intent to allow vessel owners and observer
contractors to choose who pays for a particular type of endorsement.
Furthermore, for parties who were previously required to purchase the
endorsement, and who opt not to purchase that endorsement in the
future, this rule will relieve a restriction. Accordingly, for the
reasons set forth above, the Assistant Administrator finds good cause
to dispense with prior notice and opportunity for public comment and to
make this rule effective immediately upon publication in the Federal
Register.
Because prior notice and opportunity for public comment are not
required for this rule by 5 U.S.C. 553, or any other law, the
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601
et seq., are inapplicable.
This rule has been determined to be not significant for purposes of
E.O. 12866.
List of Subjects in 50 CFR Part 679
Alaska, Fisheries, Reporting and recordkeeping requirements.
Dated: October 30, 1997.
David L. Evans,
Deputy Assistant Administrator for Fisheries, National Marine Fisheries
Service.
For reasons set out in the preamble, 50 CFR part 679 is amended as
follows:
PART 679--FISHERIES OF THE EXCLUSIVE ECONOMIC ZONE OFF ALASKA
1. The authority citation for part 679 continues to read as
follows:
Authority: 16 U.S.C. 773 et seq., 1801 et seq., and 3631 et seq.
2. In Sec. 679.50, paragraph (i)(2)(xiv)(E)(4) is revised to read
as follows:
Sec. 679.50 Groundfish Observer Program applicable through December
31, 1997.
* * * * *
(i) * * *
(2) * * *
(xiv) * * *
(E) * * *
(4) Commercial General Liability.
* * * * *
[FR Doc. 97-29507 Filed 11-6-97; 8:45 am]
BILLING CODE 3510-22-F
