To provide for qualified withdrawals from the Capital Construction Fund for fishermen leaving the industry and for the rollover of Capital Construction Funds to individual retirement plans.

Summary: Capital Construction Fund Qualified Withdrawal Act of 2002 - Amends the Merchant Marine Act and the Internal Revenue Code to permit as qualified withdrawals from fishing capital construction funds money used by retiring fishermen for the following purposes: (1) retiring an owner's commercial fishing vessels and related commercial fishing permits; (2) making a rollover contribution into an owner's individual retirement plan; and (3) making a payment of an industry fee authorized by the fishing capacity reduction program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Capital Construction Fund Qualified 
Withdrawal Act of 2002''.

SEC. 2. AMENDMENT OF THE MERCHANT MARINE ACT OF 1936 TO ENCOURAGE 
              RETIREMENT OF CERTAIN FISHING VESSELS AND PERMITS.

    (a) In General.--Section 607(a) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1177(a)) is amended by adding at the end the following: 
``Any agreement entered into under this section may be modified for the 
purpose of encouraging the sustainability of the fisheries of the 
United States by making the termination and withdrawal of a capital 
construction fund a qualified withdrawal if done in exchange for the 
retirement of the related commercial fishing vessels and related 
commercial fishing permits.''.
    (b) New Qualified Withdrawals.--
            (1) Amendments to merchant marine act, 1936.--Section 
        607(f)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
        1177(f)(1)) is amended--
                    (A) by striking ``for:'' and inserting
                ``for--'';
                    (B) by striking ``vessel'' in subparagraph (A) and 
                inserting ``vessel;'';
                    (C) by striking ``vessel, or'' in subparagraph (B) 
                and inserting ``vessel;'';
                    (D) by striking ``vessel.'' in subparagraph (C) and 
                inserting ``vessel;''; and
                    (E) by inserting after subparagraph (C) the 
                following:
                    ``(D) the payment of an industry fee authorized by 
                the fishing capacity reduction program under section 
                312(b) of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1861a(b));
                    ``(E) in the case of any such person or shareholder 
                for whose benefit such fund was established or any 
                shareholder of such person, a rollover contribution 
                (within the meaning of section 408(d)(3) of the 
                Internal Revenue Code of 1986) to such person's or 
                shareholder's individual retirement plan (as defined in 
                section 7701(a)(37) of such Code); or
                    ``(F) the payment to a person or corporation 
                terminating a capital construction fund for whose 
                benefit the fund was established and retiring related 
                commercial fishing vessels and permits.''.
            (2) Secretary to ensure retirement of vessels and 
        permits.--The Secretary of Commerce by regulation shall 
        establish procedures to ensure that any person making a 
        qualified withdrawal authorized by section 607(f)(1)(F) of the 
        Merchant Marine Act, 1936 (46 U.S.C. App. 1177(f)(1)(F)) 
        retires the related commercial use of fishing vessels and 
        commercial fishery permits.
    (c) Conforming Amendments.--
            (1) In general.--Section 7518(e)(1) of the Internal Revenue 
        Code of 1986 (relating to purposes of qualified withdrawals) is 
        amended--
                    (A) by striking ``for:'' and inserting
                ``for--'';
                    (B) by striking ``vessel, or'' in subparagraph (B) 
                and inserting ``vessel;'';
                    (C) by striking ``vessel.'' in subparagraph (C) and 
                inserting ``vessel;'';
                    (D) by inserting after subparagraph (C) the 
                following:
                    ``(D) the payment of an industry fee authorized by 
                the fishing capacity reduction program under section 
                312 of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1861a);
                    ``(E) in the case of any person or shareholder for 
                whose benefit such fund was established or any 
                shareholder of such person, a rollover contribution 
                (within the meaning of section 408(d)(3)) to such 
                person's or shareholder's individual retirement plan 
                (as defined in section 7701(a)(37)); or
                    ``(F) the payment to a person terminating a capital 
                construction fund for whose benefit the fund was 
                established and retiring related commercial fishing 
                vessels and permits.''.
            (2) Secretary to ensure retirement of vessels and 
        permits.--The Secretary of the Treasury by regulation shall 
        establish procedures to ensure that any person making a 
        qualified withdrawal authorized by section 7518(e)(1)(F) of the 
        Internal Revenue Code of 1986 retires the related commercial 
        use of fishing vessels and commercial fishery permits referred 
        to therein.

SEC. 3. EFFECTIVE DATE.

    The amendments made by this Act shall apply to withdrawals made 
after the date of enactment of this Act.