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Proposed Rule2026-03306

Atlantic Highly Migratory Species; Revision of the Termination Date for Swordfish and Shark Limited Access Permits

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Published

February 19, 2026

Issuing agencies

Commerce DepartmentNational Oceanic and Atmospheric Administration

Abstract

This proposed rule would revise the regulations regarding the termination date for swordfish and shark limited access permits (LAPs). Currently, when a swordfish or shark LAP is not renewed within a year of the expiration date, the permit terminates and can no longer be renewed or used. This action would remove the termination date and allow permits to be renewed at any time. This action would stop the further loss of swordfish and shark LAPs and may benefit permit holders by providing them the ability to renew their LAPs more than one year past their expiration. This action would have no practical effect on harvest levels of swordfish and shark species and is administrative in nature.

Full Text

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<title>Federal Register, Volume 91 Issue 33 (Thursday, February 19, 2026)</title>
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[Federal Register Volume 91, Number 33 (Thursday, February 19, 2026)]
[Proposed Rules]
[Pages 7948-7952]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03306]

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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

50 CFR Part 635

[Docket No. 260213-0045]
RIN 0648-BN68

Atlantic Highly Migratory Species; Revision of the Termination
Date for Swordfish and Shark Limited Access Permits

AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.

ACTION: Proposed rule; request for comments.

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SUMMARY: This proposed rule would revise the regulations regarding the
termination date for swordfish and shark limited access permits (LAPs).
Currently, when a swordfish or shark LAP is not renewed within a year
of the expiration date, the permit terminates and can no longer be
renewed or used. This action would remove the termination date and
allow permits to be renewed at any time. This action would stop the
further loss of swordfish and shark LAPs and may benefit permit holders
by providing them the ability to renew their LAPs more than one year
past their expiration. This action would have no practical effect on
harvest levels of swordfish and shark species and is administrative in
nature.

DATES: Written comments must be received by April 9, 2026.

ADDRESSES: A plain language summary of this proposed rule is available
at <a href="https://www.regulations.gov/docket/NOAA-NMFS-2025-0036">https://www.regulations.gov/docket/NOAA-NMFS-2025-0036</a>. You may
submit comments on this document, identified by NOAA-NMFS-2025-0036, by
electronic submission. Submit all electronic public comments via the
Federal e-Rulemaking Portal. Visit <a href="https://www.regulations.gov">https://www.regulations.gov</a> and type
``NOAA-NMFS-2025-0036'' in the Search box. Click on the ``Comment''
icon, complete the required fields, and enter or attach your comments.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
<a href="http://www.regulations.gov">www.regulations.gov</a> without change. All personal identifying
information (e.g., name, address), confidential business information,
or otherwise sensitive information submitted voluntarily by the sender
will be publicly accessible. NMFS will accept anonymous comments (enter
``N/A'' in the required fields if you wish to remain anonymous).
NMFS will hold one public hearing via conference call/webinar on
this proposed rule. For additional details on the public hearing, see
the SUPPLEMENTARY INFORMATION section of this document.
Copies of this proposed rule and supporting documents, including
the Regulatory Impact Review (RIR) and Initial Regulatory Flexibility
Analysis (IRFA) for this action, the 2006 Consolidated Atlantic Highly
Migratory Species (HMS) Fishery Management Plan (FMP) and its
amendments, and the annual HMS Stock Assessment and Fishery Evaluation
Reports are available from the HMS Management Division website at
<a href="https://www.fisheries.noaa.gov/topic/atlantic-highly-migratory-species">https://www.fisheries.noaa.gov/topic/atlantic-highly-migratory-species</a>
or by contacting Guy DuBeck at <a href="/cdn-cgi/l/email-protection#3a5d4f43145e4f585f59517a54555b5b145d554c">[email&#160;protected]</a> or by phone at 301-
427-8503.

FOR FURTHER INFORMATION CONTACT: Guy DuBeck (<a href="/cdn-cgi/l/email-protection#88effdf1a6ecfdeaedebe3c8e6e7e9e9a6efe7fe">[email&#160;protected]</a>) or
Karyl Brewster-Geisz (<a href="/cdn-cgi/l/email-protection#7813190a0114561a0a1d0f0b0c1d0a551f1d110b023816171919561f170e">[email&#160;protected]</a>) by email or phone
at 301-427-8503.

SUPPLEMENTARY INFORMATION: Federal Atlantic HMS fisheries (tunas,
billfish, swordfish, and sharks) are managed under the HMS FMP and its
amendments, pursuant to the Magnuson-Stevens Fishery Conservation and
Management Act (Magnuson-Stevens Act; 16 U.S.C. 1801 et seq.) and
consistent with the Atlantic Tunas Convention Act (ATCA; 16 U.S.C. 971
et seq.). HMS are defined at section 3(21) of the Magnuson-Stevens Act
(see 16 U.S.C. 1802(21)) and the provisions for their management are at
section 304(g)(1) (see 16 U.S.C. 1854(g)(1)). ATCA is the implementing
statute for binding recommendations of the International Commission for
the Conservation of Atlantic Tunas. HMS implementing regulations are at
50 CFR part 635. The procedures established by the HMS FMP and
implemented in the HMS regulations (see Sec. 635.34(b)) allow NMFS to
modify permitting requirements, using a framework adjustment
implemented by regulation. The regulations regarding the renewal of
swordfish and shark LAPs are found at Sec. 635.4(m)(2).

Statutory Authority

The Magnuson-Stevens Act requires measures necessary for the
conservation and management of the fishery to be consistent with the 10
National Standards set forth in section 301(a) (see 16 U.S.C. 1851(a)
and 1853(a)(1)(C)). While all of the National Standards are relevant,
the following National Standards are particularly relevant based on the
objectives of this action: National Standard 1 states that management
measures shall prevent overfishing while achieving, on a continuing
basis, optimum yield; National Standard 6 states that management
measures shall take into account and allow for variations among
fisheries, fishery resources, and catches; and National Standard 7
states that management measures shall, where practicable, minimize
costs and avoid unnecessary duplication. Additionally, the Magnuson-
Stevens Act allows NMFS to require fishing vessels to obtain permits
(see section 303(b)(1) or 16 U.S.C. 1853(b)(1)) and allows NMFS to
establish a limited access system (see section 303(b)(6) or 16 U.S.C.
1853(b)(6)). Finally, section 304(c) and (g) provides for the
promulgation of regulations to implement an FMP that is prepared by
NMFS, such as the HMS FMP (see 16 U.S.C. 1854(c), (g)).

Background

NMFS established LAPs in the 1999 FMP for Atlantic Tunas,
Swordfish, and Sharks (64 FR 29090, May 28, 1999). LAPs can be obtained
only by transferring an existing permit from a current permit holder.
New permits are not issued. LAPs were established to rationalize the
harvesting capacity with the available quota, and to reduce latent
effort without significantly affecting the livelihoods of those who are
substantially dependent on the fisheries. As part of achieving those
goals, LAPs were implemented with an annual renewal time period, and
permits that were not renewed within one year of expiring became
ineligible for renewal and thus effectively were terminated (50 CFR
635.4(m)). The original number of LAPs (see Table 1) was established in
2000. Since that time, the only changes NMFS has made to the
termination language were minor revisions that removed outdated text
and dates (71 FR 58058, October 2, 2006). As a result, currently, when
a swordfish or shark LAP is not renewed within a year of the expiration
date, the permit terminates and can never be renewed or used. The LAP
program is made up of the

[[Page 7949]]

following permit categories: Swordfish Directed, Swordfish Incidental,
Swordfish Handgear, Shark Directed, Shark Incidental, and Atlantic
Tunas Longline category permit.
The expiration date for LAPs is determined by (1) the birth month
of the primary mailing recipient when the vessel is owned by (an)
individual(s); (2) the date of incorporation when the mailing recipient
is a business; and (3) if the vessel is leased, the expiration date
will be the last day of the last full month of the lease term. Permit
holders receive an email notification to renew permits 60 days prior to
the permits' expiration date. After the permit has expired, the permit
holder retains the rights to renew or transfer the permit, but the
permit is not valid to use to go fishing until it is renewed.
Currently, if the permit is not renewed within a year of the expiration
date, the permit terminates and can no longer be renewed, transferred,
or used. If the permit is not renewed, or transferred, 30 days prior to
the termination date, permit holders receive an email notification from
the Permits Office each day for 30 days until the termination date. If
the permit is not renewed, or transferred, before the termination date,
NMFS considers the permit terminated, and it is no longer renewable or
transferable.
In order to provide HMS LAP holders flexible fishing opportunities
in multiple fisheries, HMS LAP holders have the option to transfer
active permits to a virtual vessel called ``NOVESID.'' Permits can be
renewed on the virtual vessel indefinitely. There is no restriction on
the timeframe permits can be issued to the virtual vessel, but permits
cannot be used to fish while assigned to the virtual vessel. Permits
are valid when they are assigned to a vessel, assigned to a vessel
owner, and ``fishable'' between the permit's effective date and the
expiration date.
Primarily because of the termination date, NMFS has seen a
significant decrease in the number of valid swordfish and shark LAPs
over time. Between 2000 and 2024, there was an average annual reduction
of approximately three percent in the number of LAP holders across the
permit categories. The percentage decrease in the number of swordfish
and shark LAPs since 2000 is shown in table 1. For comparison, Atlantic
Tunas Longline category permits, which do not have a termination date
and can be renewed any time after expiration, have had a relatively
stable number of permits in the years since implementation. Thus,
changes to the Atlantic Tunas Longline category permit regulations are
not proposed; the regulations for that permit are mentioned only for
reference. There are currently a total of 226 Atlantic Tunas Longline
permits.

Table 1--Comparison of Swordfish and Shark LAPs Issued to Present
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Directed Incidental Swordfish
Swordfish Swordfish Handgear Directed Incidental
LAP LAP LAP Shark LAP Shark LAP
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Number of Permits in 2000........................... 240 203 125 287 585
Number of Permits in 2024........................... 167 63 75 194 221
Permits Terminated.................................. 73 140 50 93 364
Percentage Decrease................................. 30% 69% 40% 32% 62%
----------------------------------------------------------------------------------------------------------------

Several of these permits were designed to be held in combination to
reduce regulatory discards. For example, Atlantic Tunas Longline
category permits cannot be used unless the vessel has also been issued
both a Swordfish (Directed or Incidental) and Shark (Directed or
Incidental) LAP. Similarly, a Swordfish Directed or Incidental LAP
cannot be used unless the vessel has also been issued both an Atlantic
Tunas Longline category permit and a Shark (Directed or Incidental)
LAP. The combination of these three permits is often referred to as a
``tri-pack.'' Requiring this combination minimizes regulatory discards
by allowing for the retention of species that might otherwise have to
be discarded if they were caught incidental to catching the target
species. For example, tunas and sharks are commonly caught when pelagic
longline fishing for swordfish; if the vessel was issued only a
swordfish permit, then any tunas and sharks caught would need to be
discarded. However, some of the permits do not need to be used in
combination with other permits. Specifically, Swordfish Handgear and
Shark (Directed or Incidental) LAPs can be used without a combination
of permits. For Swordfish Handgear and Shark (Directed or Incidental)
LAPs, NMFS decided that a combination of permits is not required
because use of these permits is less likely to result in regulatory
discards of other species. For example, fishermen targeting sharks with
bottom longline gear rarely interact with swordfish or tuna.
Among other concerns regarding impacts on the swordfish and shark
fisheries if the number of permits continue to decline, NMFS is also
concerned that the continued decline in the number of available
swordfish and shark LAPs as a result of the termination date will
result in difficulties for Atlantic Tunas Longline category permit
holders to find swordfish and shark LAPs to complete their required
permit tri-pack and continue fishing for tunas with pelagic longline.
Additionally, one of the original intentions for establishing LAPs was
to rationalize harvest of the quota at the time. However, currently,
the swordfish and shark quotas are not being fully harvested and the
swordfish stock is rebuilt. Therefore, NMFS believes that the goal of
rationalizing the harvest of the quota has been achieved. To address
these concerns, NMFS is conducting this rulemaking to stop the further
decline in swordfish and shark LAPs.
This rulemaking would also simplify regulations by removing an
unnecessary restriction.

Proposed Swordfish and Shark LAP Revisions

As described in the RIR and IRFA, NMFS analyzed several
alternatives for this action and prefers Alternative 3. Under
Alternative 3, swordfish and shark LAPs would no longer terminate,
beginning on the effective date of the final rule. Removing the
termination date for these permits would benefit permit holders by
conserving the ability to renew their permits more than one year past
their expiration, and should stop the decline in LAP numbers in the
future. Under this alternative, Atlantic Tunas Longline category permit
holders could also benefit if the number of tri-pack permits stopped
decreasing. Additionally, because the number of permits would become
more stable, NMFS believes that the ability to harvest the quotas based
on availability of permits would also remain stable. Because this
alternative would not

[[Page 7950]]

increase the number of permits available, this alternative is not
expected to affect fishing effort or the amount of tunas, swordfish, or
sharks caught; rather, this alternative is administrative in nature.
Furthermore, this alternative may also reduce administrative burden on
NMFS by removing the need to send reminder emails to permit holders to
renew their permits before termination and notify permit holders of
termination dates. Lastly, unlike under Alternative 2, Alternative 3
would not have NMFS reissue permits that terminated before the final
rule effective date. Although there might be some permits that are
terminated between the proposed rule publication date and the effective
date of the final rule, NMFS expects that number to be minimal and
considers that providing advance notice of the change would be more
fair and less confusing to permit holders overall. Permit records
indicate that up to 28 currently-expired LAPs could terminate between
September 2025 and January 2026 if the permit holders do not initiate
the paperwork to renew them. However, based on previous trends, the
number of permits that could terminate during this time period would
likely be lower as most permit holders usually renew their permits.
Specifically, between 2020 and 2024, on average four LAPs were
terminated each year. Thus, if this action finalizes next year, then
NMFS expects that under this alternative approximately four LAPs may be
terminated under the existing regulations prior to the effective date
of this action.

Other Alternatives Analyzed

In addition to the proposed measures, NMFS analyzed two other
alternatives for the revisions to the termination date for swordfish
and shark LAPs. Alternative 1, the no action alternative, would
maintain the current regulations that allow the swordfish and shark
LAPs to terminate if not renewed within one year of expiring. NMFS
anticipates that maintaining the current regulations would result in a
continued decrease in the number of valid LAPs (see table 1), and
therefore this alternative would not meet the objective of this
proposed rule. Additionally, the decrease in number of permit holders
maintaining valid shark and swordfish LAPs and therefore actively
participating in the fishery, and the decrease in number of LAPs
available, could contribute to uncertainty in the fishery and prevent
the current fishermen from feeling confident in the future of the
fishery. Furthermore, a decreasing number of swordfish and shark LAPs
could further any discrepancies in permit numbers between permit types
and cause difficulty for Atlantic Tunas Longline category permit
holders to obtain the required tri-pack permits to fish with pelagic
longline gear. Additionally, the original rationale for implementing
the termination date of the LAPs was to rationalize fishing capacity
within the established quota, however, some of those fishery quotas are
no longer limited and terminating LAPs may contribute to the continued
under-harvesting of some fishery quotas (e.g., swordfish).
Alternative 2 is similar to the preferred Alternative 3 in that the
termination date would be removed from the regulations. The primary
difference is that under this alternative, after the final rule is
effective, NMFS would reissue any permits that terminated between the
publication date of the proposed rule and the effective date of the
final rule. As such, Alternative 2 would stop the estimated annual
economic loss from termination of swordfish and shark LAPs faster than
Alternative 3. In addition, allowing some LAPs to be reinstated after
termination could potentially increase the number of LAPs that are
retained through this action by a de minimis amount and allow LAP
holders to remain in the fishery. Based on the annual average of four
LAPs terminations from 2020 to 2024, NMFS expects approximately four
LAPs would be eligible for reinstatement under this alternative if this
action finalizes next year.
However, this alternative could be perceived as unfair to permit
holders who had their permit terminate shortly before publication of
the proposed rule. In addition, reinstating permits that are already
considered terminated could be confusing to the public and raise
significant logistical issues. For example, the permit may have
terminated because the original permit holder might have intentionally
not renewed their permit because they no longer wanted to be part of
the fishery, the permit holder may have passed away and the heirs may
not have wanted to be part of the fishery, or, in cases where the
permit holder was a company, the company may have been dissolved.

Request for Comments

NMFS is requesting comments on this proposed rule, which may be
submitted via <a href="https://www.regulations.gov">https://www.regulations.gov</a> or at a public hearing. NMFS
solicits comments on this action by April 9, 2026 (see DATES and
ADDRESSES sections).
During the comment period, NMFS will hold one public hearing via
webinar for this proposed action, as shown in table 2. Requests for
sign language interpretation or other auxiliary aids should be directed
to Guy DuBeck at <a href="/cdn-cgi/l/email-protection#4d2a38346329382f282e260d23222c2c632a223b">[email&#160;protected]</a> or 301-427-8503, at least 7 days
prior to the meeting. In addition, any requests for in-person public
hearings during the comment period should be directed to Guy DuBeck at
<a href="/cdn-cgi/l/email-protection#c6a1b3bfe8a2b3a4a3a5ad86a8a9a7a7e8a1a9b0">[email&#160;protected]</a> or 301-427-8503.

Table 2--Date and Time of Upcoming Public Hearing Webinar
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Date and time Webinar information
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April 2, 2026, 2 p.m.-4 p.m. https://www.fisheries.noaa.gov/action/
ET. comments-requested-proposed-removal-
swordfish-and-shark-limited-access-
permit-termination.
------------------------------------------------------------------------

The public is reminded that NMFS expects participants at the public
hearing to conduct themselves appropriately. At the beginning of the
public hearing, a representative of NMFS will explain the ground rules
(e.g., alcohol is prohibited from the hearing room, attendees will be
called to give their comments in the order in which they registered to
speak, each attendee will have an equal amount of time to speak, and
attendees should not interrupt one another). At the beginning of the
webinar, the moderator will explain how the webinar will be conducted
and how and when participants can provide comments. The NMFS
representative(s) will attempt to structure the webinar so that all
attending members of the public will be able to comment, if they so
choose, regardless of the controversial nature of the subject(s).
Attendees are expected to respect the ground rules, and if they do not,
they may not be allowed to speak during the webinar.

[[Page 7951]]

Classification

NMFS is issuing this rule pursuant to section 304(c) and (g) of the
Magnuson-Stevens Act. The NMFS Assistant Administrator has determined
that this proposed rule is consistent with the HMS FMP and its
amendments, other provisions of the Magnuson-Stevens Act, ATCA, and
other applicable law, subject to further consideration after public
comment.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
This proposed rule is not an Executive Order 14192 regulatory
action because this rule is not significant under Executive Order
12866.
Pursuant to the National Environmental Policy Act (NEPA), NMFS has
preliminarily determined that the proposed action falls within
categorical exclusion Category A1. This Category currently reads, ``an
action that is a technical correction or a change to a fishery
management action or regulation, which does not result in a substantial
change in any of the following: fishing location, timing, effort,
authorized gear types, or harvest levels.'' This category of actions
does not normally have a significant effect on the quality of the human
environment, is not connected to a larger action, and does not involve
extraordinary circumstances precluding use of the categorical
exclusion. As such, NMFS has preliminarily determined that this action
is categorically excluded from further NEPA review. On June 28, 2025,
NOAA released a notice soliciting comments on proposals to establish
new categorical exclusions (CEs) and amend existing CEs (90 FR 35494).
This notice included proposed changes to Category A1 to increase
clarity on its scope and purpose. The comment period on changes to CEs
ended on August 27, 2025. Once the NEPA CEs language is finalized, NMFS
will update this information as appropriate.
An IRFA was prepared, as required by section 603 of the Regulatory
Flexibility Act (RFA). The IRFA describes the economic impact that this
proposed rule, if adopted, would have on small entities. A description
of the action, why it is being considered, and the legal basis for this
action are contained at the beginning of this section in the preamble
and in the SUMMARY section of the preamble. A summary of the analysis
follows. A copy of this analysis is available from NMFS (see ADDRESSES
section).
Section 603(b)(1) requires agencies to describe the reasons why the
action is being considered. The purpose of this proposed rulemaking is
to prevent the further decline in the number of swordfish and shark
LAPs by enhancing current permit holders' ability to renew their
permits. Additionally, this rule would conserve opportunities for
permit holders to renew their swordfish and shark LAPs to use with
their Atlantic Tunas Longline category permits for tuna fishing, which
requires a permit tri-pack. This action is consistent with the
objectives of the HMS FMP and its amendments, the Magnuson-Stevens Act,
and other applicable laws. Implementation of the proposed rule would
further the management goals and objectives stated in the HMS FMP and
its amendments.
Section 603(b)(2) of the RFA requires agencies to state the
objectives of, and legal basis for, the proposed action. As described
above, the objective of this proposed rulemaking is to stop the further
decline in swordfish and shark LAP holders. The legal basis for the
proposed rule is the Magnuson-Stevens Act (16 U.S.C. 1801 et seq.) and
consistent with the ATCA (16 U.S.C. 971 et seq.).
Section 603(b)(3) of the RFA requires agencies to provide a
description of and, where feasible, an estimate of the number of small
entities to which the proposed rule would apply. For RFA compliance
purposes, NMFS established a small business size standard of $11
million in annual gross receipts for all businesses in the commercial
fishing industry (North American Industry Classification System (NAICS)
code 11411) for RFA compliance purposes. NMFS completed a review of the
small business size standard on November 24, 2025 (90 FR 52917) that
resulted in maintaining the existing size standard. NMFS considers all
HMS permit holders to be small entities because they each had average
annual receipts of less than $11 million for commercial fishing. The
2022 total ex-vessel annual revenue for the swordfish and shark
fisheries was approximately $13 million. Since a small business is
defined as having annual receipts not in excess of $11 million, each
individual swordfish and shark fishing entity would fall within the
small business definition. In addition, all HMS swordfish and shark
commercial permit holders have self-certified that they are small
businesses. Thus, all of the entities affected by this rulemaking are
considered to be small entities for the purposes of the RFA. As of
2024, this proposed rule would apply to the approximately 167 directed
commercial swordfish LAP holders, 63 incidental commercial swordfish
LAP holders, 75 commercial swordfish handgear LAP holders, 194 directed
commercial shark LAP holders, and 221 incidental commercial shark LAP
holders. Not all permit holders are active in the fishery in any given
year. For more information regarding the distribution of these permits
across states and territories please see the HMS Stock Assessment and
Fishery Evaluation Report.
Section 603(b)(4) of the RFA requires agencies to describe any new
reporting, record-keeping, and other compliance requirements. This
proposed rule does not contain any new collection of information,
reporting, or record-keeping requirements.
Under section 603(b)(5) of the RFA, agencies must identify, to the
extent practicable, relevant Federal rules which duplicate, overlap, or
conflict with the proposed action. Fishermen, dealers, and managers in
these fisheries must comply with a number of international agreements,
domestic laws, and other fishery management measures. These include,
but are not limited to, the Magnuson-Stevens Act, ATCA, the High Seas
Fishing Compliance Act, the Marine Mammal Protection Act, the
Endangered Species Act, the National Environmental Policy Act, the
Paperwork Reduction Act, and the Coastal Zone Management Act. This
proposed action has been determined not to duplicate, overlap, or
conflict with any Federal rules.
Under section 603(c) of the RFA, agencies must describe any
significant alternatives to the proposed rule which accomplish the
stated objectives of applicable statutes and which minimize any
significant economic impact of the proposed rule on small entities.
Specifically, the RFA (5 U.S.C. 603(c)(1)-(4)) lists four general
categories of significant alternatives to assist an agency in the
development of significant alternatives. These categories of
alternatives are: (1) establishment of differing compliance or
reporting requirements or timetables that take into account the
resources available to small entities; (2) clarification,
consolidation, or simplification of compliance and reporting
requirements under the rule for such small entities; (3) use of
performance rather than design standards; and, (4) exemptions from
coverage of the rule, or any part thereof, for small entities.
Regarding the first, second, and fourth categories, all of the
businesses impacted by this proposed rule are considered small
entities, and thus the requirements are already designed for small
entities. Regarding the third category, NMFS does not know of any
performance or design standards that

[[Page 7952]]

would satisfy the aforementioned objectives of this rulemaking. As
described below, NMFS analyzed several different alternatives in this
proposed rulemaking and provides rationales for identifying the
preferred alternatives to achieve the desired objectives.
Under Alternative 1, the no action alternative, NMFS would maintain
the current management measures and procedures that terminate swordfish
and shark LAPs when the permit is not renewed within a year of its
expiration date. As described in table 1 above, a number of swordfish
and shark LAPs have been terminated over the years and will likely
continue over time under this alternative. Based on approximate permit
values, the estimated annual loss of swordfish and shark LAPs to
termination is valued at $243,023 (see the documents containing the RIR
and IRFA). The highest value lost annually is from Swordfish Handgear
LAPs ($76,125) due to the higher approximate value of their permits.
Even though incidental swordfish LAPs terminate at the highest annual
rate, the economic annual loss of $27,972 is the smallest due to the
lower value of their permits. Under this alternative, NMFS anticipates
the continued decrease in the number of LAPs and the decrease in the
number of permit holders maintaining valid shark and swordfish LAPs and
therefore actively participating in the fishery. This, along with the
decrease in number of LAPs available to new entrants into the fishery,
could contribute to uncertainty in the future of HMS fisheries. Since
the swordfish and shark quotas are not currently being fully harvested
and the swordfish stock is rebuilt, NMFS believes that the goal of
rationalizing the harvest of the quota appears to have been met, and
the need for a termination date for the swordfish and shark LAPs is no
longer needed.
Under Alternative 2, NMFS would revise the regulations to prevent
the LAPs from terminating, and, after the rule is effective, NMFS would
reissue any permits that terminated between the date this proposed rule
published and the effective date of the final rule. Under this
alternative, permit holders would retain their ability to renew their
permits that lapsed during the period between the publication of this
proposed rule and the effective date of the final rule. Thus, this
alternative would stop the estimated annual economic loss from
termination of swordfish and shark LAPs of $243,023 (see the RIR and
IRFA document). Under this alternative, NMFS would reissue any permits
that may have terminated between the proposed rule publication and
final rule implementation dates. Reinstating permits that are already
terminated could raise logistical issues and take time, which could
increase NMFS' administrative burden.
Under Alternative 3, the preferred alternative, NMFS would revise
the regulations to prevent the LAPs from terminating after the final
rule becomes effective. This alternative would avoid possible confusion
and fairness concerns that could arise from reissuing permits that were
previously considered terminated. This alternative would stop the
estimated annual economic loss from termination of swordfish and shark
LAPs of $243,023 (see the RIR and IRFA document). However, some LAPs
may be terminated in the time between when the proposed rule publishes
and 30 days after the final rule publishes, potentially resulting in
slightly lower economic benefits compared to Alternative 2.
This proposed rule contains no information collection requirements
under the Paperwork Reduction Act of 1995.

List of Subjects in 50 CFR Part 635

Fisheries, Fishing, Fishing vessels, Foreign relations, Imports,
Penalties, Reporting and recordkeeping requirements, Statistics,
Treaties.

Dated: February 17, 2026.
Sarah Malloy,
Acting Deputy Assistant Administrator for Regulatory Programs, National
Marine Fisheries Service.
For the reasons set out in the preamble, NMFS proposes to amend 50
CFR part 635 as follows:

PART 635--ATLANTIC HIGHLY MIGRATORY SPECIES

0
1. The authority citation for part 635 continues to read as follows:

Authority: 16 U.S.C. 971 et seq.; 16 U.S.C. 1801 et seq.

0
2. In Sec. 635.4, revise paragraph (m)(2) to read as follows:

Sec. 635.4 Permits and fees.

* * * * *
(m) * * *
(2) Shark and swordfish permits. A vessel owner must obtain the
applicable LAP(s) issued pursuant to the requirements in paragraphs (e)
and (f) of this section and/or a Federal commercial smoothhound permit
issued under paragraph (e) of this section; or an HMS Commercial
Caribbean Small Boat permit issued under paragraph (o) of this section,
if: The vessel is used to fish for or take sharks commercially from the
management unit; sharks from the management unit are retained or
possessed on the vessel with an intention to sell; or sharks from the
management unit are sold from the vessel. A vessel owner must obtain
the applicable LAP(s) issued pursuant to the requirements in paragraphs
(e) and (f) of this section, a Swordfish General Commercial permit
issued under paragraph (f) of this section, an Incidental HMS Squid
Trawl permit issued under paragraph (n) of this section, an HMS
Commercial Caribbean Small Boat permit issued under paragraph (o) of
this section, or an HMS Charter/Headboat permit with a commercial sale
endorsement issued under paragraph (b) of this section, which
authorizes a Charter/Headboat to fish commercially for swordfish on a
non for-hire trip subject to the retention limits at Sec. 635.24(b)(4)
if: The vessel is used to fish for or take swordfish commercially from
the management unit; swordfish from the management unit are retained or
possessed on the vessel with an intention to sell; or swordfish from
the management unit are sold from the vessel. The commercial retention
and sale of swordfish from vessels issued an HMS Charter/Headboat
permit with a commercial sale endorsement is permissible only when the
vessel is on a non for-hire trip. Only the person or entity holding a
shark and/or swordfish LAP is eligible to renew that LAP. A swordfish
or shark LAP that has been in a non-active permitted status for at
least one year as of [30 days after publication of final rule] may not
be renewed. Transferors may not renew LAP(s) that have been transferred
according to the procedures in paragraph (l) of this section.
* * * * *
[FR Doc. 2026-03306 Filed 2-18-26; 8:45 am]
BILLING CODE 3510-22-P

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