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Statement of Need: NMFS received input from regional Fishery Management Councils calling for further guidance and clarification of financial disclosure requirements of Council members and the regulatory procedures to make determinations on voting recusals of Council members. This proposed rule makes changes to the regulations that address disclosure of financial interests by, and voting recusal of, Council members appointed by the Secretary of Commerce. The regulatory changes are needed to provide the guidance for (1) consistency and transparency in the calculation of a Council member's financial interests; (2) determining whether a close causal link exists between a Council decision and a benefit to a Council members financial interest; and (3) establishing regional procedures for preparing and issuing recusal determinations. This proposed rule is intended to improve regulations implementing the statutory requirements governing disclosure of financial interests and voting recusal at section 302(j) of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act).

Summary of the Legal Basis: Magnuson-Stevens Fishery Conservation and Management Act

Alternatives: The alternatives are 1) the status quo (keep the regulatory scheme as it currently is) and 2) update the regulations to provide consistency, transparency, and clarity in the regulations and to establish regional procedures for preparing and issuing recusal determinations.

Anticipated Costs and Benefits: This rule is administrative in nature. It does not directly regulate a particular fishery. Instead, it provides guidance and improved clarity about implementing existing requirements. Because the proposed rule will not directly alter the behavior of any entities that operate in federally managed fisheries, no direct economic effects are expected to result from this action. This action may indirectly result in positive net economic benefits in the long-term by improving transparency and providing increased predictability about the voting procedures of the Councils. This increased transparency provides a net benefit to the nation.

Risks: Because the regulations lack guidance on several key aspects of reaching a recusal determination, and provide little guidance on the procedures to be followed when preparing and issuing a recusal determination, designated officials have developed differing practices over time to fill in these regulatory gaps and to address new factual circumstances that have arisen. The risk in not updating the regulations would be a continuation of the lack of clarity and consistency in the implementation of the current regulations.