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In a previous action under section 304(b), the regulations at 50 CFR 648.110 authorize NMFS to take this action under section 305(d) of the Magnuson-Stevens Fishery Conservation and Management Act. Summer Flounder is federally managed by the Mid-Atlantic Fishery Management Council under the Summer Flounder, Scup, and Black Sea Bass Fishery Management Plan (FMP) and in cooperation with the Atlantic States Marine Fisheries Commission. The summer flounder regulations at 648.108(a) specify the minimum allowable mesh size to retain more than an incidental amount of summer flounder, per trip, when using an otter trawl in the commercial summer flounder fishery. The regulations 648.108(b) allow two exemptions from the minimum mesh size requirements: (1) the Small Mesh Exemption Program (SMEP), which allows exemptions in a defined area from November through April, and (2) the flynet exemption which allows exemptions for vessels with a specific net configuration. As recommended by the Council and adopted by the Commission, this action proposes the following modifications to the existing exemptions: (1) expand the geographical area of the SMEP; (2) revise the annual review criteria associated with the SMEP to use a tiered monitoring approach; and, (3) revise the definition of a flynet with regard to the current summer flounder flynet exemption. This action would affect vessels issued federal commercial summer flounder permits. The proposed modifications are intended to modernize the current mesh size exemptions and provide more flexibility to permit holders.