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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3278 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 3278

 To amend the Magnuson-Stevens Fishery Conservation and Management Act 
  to establish requirements for fishing quota systems, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2005

 Mr. Allen (for himself, Mr. Simmons, and Mr. Delahunt) introduced the 
    following bill; which was referred to the Committee on Resources

_______________________________________________________________________

                                 A BILL

 
 To amend the Magnuson-Stevens Fishery Conservation and Management Act 
  to establish requirements for fishing quota systems, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fishing Quota Standards Act of 
2005''.

SEC. 2. AMENDMENT REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to such section or other provision of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.).

SEC. 3. DEFINITIONS.

    Section 3 (16 U.S.C. 1802) is amended by adding at the end the 
following:
            ``(48) The term `fishing quota system'--
                    ``(A) means any limited access system that requires 
                a person to acquire a permit under this Act to harvest 
                fish in a fishery, that specifies a percentage of the 
                total allowable catch of a fishery that may be received 
                or held for exclusive use by the person or a definable 
                group of persons, during each fishing season for which 
                the permission is granted; and
                    ``(B) includes any area or community quota program, 
                sector quota program, fishing cooperative program, or 
                individual fishing quota program.
            ``(49) The term `quota share' means a permit under a 
        fishing quota system to harvest a quantity of fish, expressed 
        as a percentage of the total allowable catch of a fishery that 
        may be received or held for exclusive use by a person, during 
        each fishing season for which the permission is granted.''.

SEC. 4. GENERAL REQUIREMENTS FOR LIMITED ACCESS SYSTEMS FOR FISHERIES.

    (a) Conditions for Authority to Establish Limited Access Systems.--
Section 303(b)(6) (16 U.S.C. 1853(b)(6)) is amended by striking 
subparagraphs (A) through (F) and inserting the following:
                    ``(A) the conservation requirements of this Act 
                with respect to the fishery;
                    ``(B) the breadth of the present and historic 
                participation in the fishery;
                    ``(C) the economics of the fishery;
                    ``(D) the cultural and social framework relevant to 
                the fishery and any affected fishing communities;
                    ``(E) the fair and equitable distribution of a 
                fishery as a public trust resource; and
                    ``(F) any other relevant considerations.''.
    (b) Requirements for the Fishery.--Section 303(d) (16 U.S.C. 
1853(d)) is amended--
            (1) by striking paragraph (5);
            (2) by redesignating paragraphs (2), (3), and (4) as 
        paragraphs (7), (8), and (9), respectively;
            (3) by striking so much as precedes paragraph (7), as so 
        redesignated, and inserting the following:
    ``(d) Fishing Quota Systems.--
            ``(1) In general.--A fishery management plan or plan 
        amendment that establishes a fishing quota system for a fishery 
        after the date of the enactment of the Fishing Quota Standards 
        Act of 2005 shall--
                    ``(A) include management measures designed to 
                ensure the sustainability of the fishery and provide 
                additional and substantial conservation benefits, 
                social benefits, and economic benefits to the fishery 
                and fishing communities;
                    ``(B) be effective for a period of a fixed 
                duration, not to exceed 7 years;
                    ``(C) provide for administration of the system by 
                the Secretary in accordance with the terms of the plan;
                    ``(D) establish procedures for the Council having 
                authority over the fishery, or the Secretary in the 
                case of a fishery management plan developed by the 
                Secretary, to review the quota system at least 1 year 
                prior to the end of the effective period of the plan;
                    ``(E) allocate, review, and limit or terminate 
                quota shares in accordance with this subsection;
                    ``(F) provide a fair and equitable process to 
                appeal to the Secretary decisions made by a Council 
                on--
                            ``(i) eligibility to participate in the 
                        referendum required under this subsection and 
                        eligibility to receive an allocation of quota 
                        shares; and
                            ``(ii) limitations, restrictions, and 
                        revocations of quota shares;
                    ``(G) minimize, to the maximum extent practicable, 
                negative social and economic impacts of the system on 
                local coastal communities including historic fishing 
                communities;
                    ``(H) minimize geographic consolidation of the 
                fishery, including processing facilities;
                    ``(I) ensure adequate enforcement, management, and 
                data collection, including the use of observers where 
                appropriate at a level of coverage that yields 
                statistically significant results; and
                    ``(J) not require that quota shares be held by a 
                person engaged in personal-use fishing, including any 
                recreational or subsistence fishing, if the fishery 
                management plan designates a separate portion of the 
                total allowable catch for personal-use fishing.
            ``(2) Allocation of quota shares.--
                    ``(A) In general.--The Council having authority 
                over the fishery shall make a fair and equitable 
                allocation of all, or a portion, of the total allowable 
                catch limit as quota shares among categories of vessels 
                and among fishing gear types or other appropriate 
                qualifiers. In allocating quota shares for a fishery, 
                the Council shall--
                            ``(i) take into account present and 
                        historic participation in the fishery;
                            ``(ii) ensure that each quota share is held 
                        only by individuals who are citizens of the 
                        United States or permanent resident aliens;
                            ``(iii) to the maximum extent practicable, 
                        preserve the percentage of the total quota 
                        shares available at the inception of the 
                        program to vessels for which the quota share 
                        holder is onboard during fishing operations;
                            ``(iv) establish a mechanism to allow new 
                        entrants into the fishery;
                            ``(v) prevent any person from controlling 
                        an excessive share of quota shares under a 
                        fishing quota system and establish any other 
                        limits, measures, or financial reporting 
                        requirements necessary to prevent inequitable 
                        concentration of quota shares and to prevent 
                        significant adverse impacts on any person that 
                        holds a permit authorizing fishing in the 
                        fishery or fishing community; and
                            ``(vi) create incentives in successive 
                        allocations for fishermen who increase their 
                        use of gear that more selectively captures 
                        target species or increase protection of 
                        essential fish habitat, by increasing the 
                        allocation for those fishermen.
                    ``(B) Transfer to family members.--(i) The 
                Secretary may allow the transfer of a quota share 
                allocated under subparagraph (A), on a case-by-case 
                basis, from the holder of the quota share to a member 
                of the holder's immediate family who would otherwise 
                not be eligible for quota share under the program, due 
                to death or disablement of the holder.
                    ``(ii) The Secretary shall establish a simple and 
                expeditious process for such a transfer.
                    ``(iii) The Secretary may allow such a transfer 
                only within the same category of vessel, fishing gear 
                type, or other appropriate qualifier to maintain a fair 
                and equitable allocation of quota shares.
                    ``(C) Communities holding quotas.--The Council 
                having authority over the fishery may authorize 
                geographically discrete communities to hold quota 
                shares.
            ``(3) Termination or limitation of fishing quota system.--
                    ``(A) In general.--A fishing quota system 
                established for a fishery may be limited or terminated 
                at any time in accordance with this paragraph if 
                necessary for the conservation and management of the 
                fishery, including if the quota system has been found 
                to have jeopardized the sustainability of the stock.
                    ``(B) Procedure.--A fishing quota system may be 
                limited or terminated under this paragraph by--
                            ``(i) the Council that has authority over 
                        the fishery for which the system is 
                        established, through a fishery management plan 
                        or amendment;
                            ``(ii) the Secretary, through repeal or 
                        revocation in accordance with section 304(h) of 
                        the fishery management plan that established 
                        the system;
                            ``(iii) the Secretary, in the case of any 
                        fishing quota system established by a fishery 
                        management plan developed or approved by the 
                        Secretary; or
                            ``(iv) the Secretary, if--
                                    ``(I) the Secretary finds that the 
                                system is not meeting or exceeding the 
                                requirements of the Act, including the 
                                requirement under paragraph (1)(A) to 
                                provide additional and substantial 
                                conservation benefits; and
                                    ``(II) the Council or Secretary 
                                does not make the changes necessary to 
                                ensure compliance with this subsection.
                    ``(C) Other authority of secretary not 
                diminished.--This paragraph does not diminish the 
                authority of the Secretary under any other provision of 
                this Act.
            ``(4) Termination, renewal, or limitation of quota 
        shares.--A quota share issued under a fishing quota system--
                    ``(A) shall expire not later than 7 years after the 
                date it is issued;
                    ``(B) may be renewed in accordance with the terms 
                of the plan and regulations issued by the Secretary or 
                the Council having authority over the fishery for which 
                it is issued, if, based on a review by the committee 
                established under paragraph (6), the fishing quota 
                system is meeting or exceeding the requirements of this 
                Act and the conservation and management requirements of 
                the fishery; and
                    ``(C) may be modified, revoked, limited, or 
                reallocated if necessary for the fishing quota system 
                to meet or exceed the requirements of this Act and the 
                conservation and management requirements of the 
                fishery.
            ``(5) Referendum procedure.--
                    ``(A) In general.--(i) A Council may submit a 
                fishery management plan or plan amendment that 
                establishes a fishing quota system only if the 
                submission of such plan or plan amendment is approved 
                in a referendum conducted in accordance with this 
                paragraph.
                    ``(ii) The Secretary may prepare a fishery 
                management plan or plan amendment that establishes a 
                fishing quota system only if the development and 
                approval of such plan or plan amendment is approved in 
                a referendum conducted in accordance with this 
                paragraph.
                    ``(B) Conduct.--The Secretary shall conduct the 
                referendum required under subparagraph (A). The 
                Secretary shall develop guidelines to determine 
                procedures to conduct such referendum in a fair and 
                equitable manner. Prior to the referendum, the 
                Secretary shall identify and notify all persons who are 
                eligible to vote in the referendum, and make available 
                to all such persons information concerning the 
                schedule, procedures, and eligibility requirements for 
                the referendum process and the proposed fishing quota 
                system.
                    ``(C) Required vote.--Each referendum shall be 
                decided by the affirmative vote of a two-thirds 
                majority of the votes cast by persons who the Secretary 
                determines are eligible to vote in the referendum.
                    ``(D) Eligibility to participate.--A person shall 
                be eligible to participate in a referendum under this 
                paragraph with respect to a fishery only if the 
                person--
                            ``(i) holds a permit to fish in the 
                        fishery; or
                            ``(ii) is a crew member on a fishing vessel 
                        who derives at least 30 percent of their annual 
                        income from the fishery that would be subject 
                        to the proposed fishing quota system and at 
                        least 60 percent of their total annual income 
                        from fishing.
            ``(6) Council program review committee.--
                    ``(A) In general.--Each Council, upon deciding to 
                develop a fishing quota system for a fishery, shall 
                establish, maintain, and appoint members of a review 
                committee to make recommendations to the Council and 
                the Secretary for development, evaluation, and 
                necessary changes to such system to ensure that it 
                meets the requirements of this subsection.
                    ``(B) Guidelines for members.--The Council, in 
                consultation with the Secretary, shall develop 
                guidelines that will ensure that review committee 
                members are qualified for appointment and are subject 
                to conflict of interest rules.
                    ``(C) Selection of members.--The Council shall 
                select the members of each review committee from a list 
                of individuals submitted by the Secretary. The 
                Secretary may not submit the names of individuals to 
                the Council for appointment unless the Secretary has 
                determined that each such individual is qualified under 
                the guidelines developed under with subparagraph (B).
                    ``(D) Appointments.--The members of a review 
                committee established by a Council under this paragraph 
                shall be appointed by the Council in such a manner as 
                to provide fair representation to all groups that would 
                be affected by a fishing quota system for a fishery, 
                including commercial, recreational, and subsistence 
                fishing interests, fishing communities, scientists, and 
                conservation organizations and other public interest 
                groups.
                    ``(E) Restriction on voting.--A member of a review 
                committee established under this paragraph shall not 
                vote on any decision pertaining to a fishing quota 
                system under which the member holds a quota share or 
                will hold a quota share in the subsequent 5-year 
                period.
                    ``(F)  reviews and recommendations regarding 
                systems.--Each review committee shall, every 7 years, 
                review fishing quota systems, determine whether such 
                systems meet the requirements of this Act, and evaluate 
                whether each such system has improved management, 
                conservation, and safety in the fishery to which it 
                applies. Pursuant to such review, the committee shall 
                recommend to the Secretary and the Council any changes 
                to a fishing quota system necessary to ensure it meets 
                those requirements and standards of improvement 
                including revoking, limiting, or reallocating quota 
                shares.
                    ``(G) Reports.--The Council shall transmit to the 
                Congress a report containing the results of each review 
                under subparagraph (F) within 90 days after the review 
                is completed.'';
            (4) in paragraph (7)(A) (as so redesignated) by striking 
        ``individual fishing quota programs'' and inserting ``a fishing 
        quota system'';
            (5) in paragraph (7)(B) by striking ``individual fishing 
        quota programs'' and inserting ``fishing quota systems''; and
            (6) by adding at the end the following:
            ``(11) Definitions.--For the purposes of this subsection--
                    ``(A) the term `additional and substantial 
                conservation benefits to the fishery'--
                            ``(i) except as provided in clause (ii), 
                        means scientifically measurable conservation 
                        benefits to the fishery at the time of 
                        establishment of a fishing quota system, that 
                        substantially--
                                    ``(I) avoid bycatch and minimize 
                                the mortality of unavoidable bycatch;
                                    ``(II) prevent highgrading;
                                    ``(III) reduce overfishing 
                                (including localized depletions) and 
                                rebuild overfished stocks; and
                                    ``(IV) protect essential fish 
                                habitat; or
                            ``(ii) if it is not possible to directly 
                        measure conservation benefits, means actions 
                        taken under a fishing quota system that are 
                        considered necessary to provide such benefits;
                    ``(B) the term `control' means owns, leases, or 
                otherwise directs fishing operations under a fishing 
                quota system;
                    ``(C) the term `excessive share' means more than 1 
                percent of the total allowable catch in a fishery, 
                except that a Council may increase such percentage--
                            ``(i) to no more that 5 percent, if the 
                        Council can demonstrate that such an increase 
                        will not be detrimental to other individual 
                        holders of quota shares under a fishing quota 
                        system;
                            ``(ii) to no more that 15 percent, if there 
                        are an average of 20 or fewer participants in 
                        the fishery during the 3-year period prior to 
                        the implementation of the control date for the 
                        fishing quota system or, if there is no control 
                        date, from the date of implementation of the 
                        fishing quota system, and the Council can 
                        demonstrate that such an increase will not be 
                        detrimental to other individual holders of 
                        quota shares under the system; or
                            ``(iii) to greater than 15 percent, if 
                        there are an average of less than 7 
                        participants in the fishery during the 3-year 
                        period prior to the implementation of the 
                        control date for the fishing quota system or, 
                        if there is no control date, from the date of 
                        implementation of the fishing quota system, and 
                        the Council can demonstrate that such an 
                        increase will not be detrimental to other 
                        individual holders of quota shares under the 
                        system; and
                    ``(D) the term `fair and equitable allocation' 
                means initial and subsequent allocation of quota shares 
                based on multiple criteria that provide for 
                consideration of--
                            ``(i) conservation performance, including 
                        the use of selective fishing practices that 
                        have minimal bycatch, prevent highgrading, and 
                        have minimal adverse impacts on essential fish 
                        habitat;
                            ``(ii) owner-operators of fishing vessels; 
                        and
                            ``(iii) long-term participation in the 
                        fishery.''.

SEC. 5. ACTION BY SECRETARY.

    (a) Establishment of Fees.--Section 304 (16 U.S.C. 1854) is 
amended--
            (1) in subsection (c)(3) by striking ``individual fishing 
        quota program'' and inserting ``fishing quota system'';
            (2) in subsection (d)(2)--
                    (A) by striking ``(A)'';
                    (B) by striking ``of any--'' and all that follows 
                through ``community'' and inserting ``of any 
                community''; and
                    (C) by striking subparagraph (B);
            (3) by adding at the end of subsection (d) the following:
    ``(3)(A) Notwithstanding paragraph (1), the Secretary shall 
establish and collect from a person that holds or transfers a quota 
share issued under section 303(d)(2) fees established by the Secretary 
in accordance with this section and section 9701(b) of title 31, United 
States Code.
    ``(B) The fees required to be established and collected by the 
Secretary under this paragraph are the following:
            ``(i) With respect to any initial allocation under a 
        limited access system established after the date of the 
        enactment of the Fishing Quota Standards Act of 2005, an 
        initial allocation fee that shall be collected from the person 
        to whom the quota share is first issued.
            ``(ii) An annual fee that shall be collected from the 
        holder of the quota share, and that is a percentage of the ex-
        vessel value of fish authorized to be landed in one year under 
        the quota share.
            ``(iii) A transfer fee that shall be collected from a 
        person who transfers the quota share to another person.
    ``(C) In determining the amount of a fee under subparagraph (B), 
the Secretary shall ensure that the total amount collected from all 
holders of quota shares in a fishery subject to a fishing quota system 
is sufficient to recover direct costs related to administering and 
implementing the fishing quota system, including enforcement, 
management, and collection of ecological and socio-economic data 
(including adequate observer coverage).
    ``(D) The Secretary, in consultation with the Councils, shall 
promulgate regulations prescribing the method of determining under this 
paragraph the ex-vessel value of fish authorized to be landed under a 
quota share, the amount of fees, and the method of collecting fees.
    ``(E) Fees collected under subparagraph (B)(ii) from holders of 
quota shares in a fishery shall be an offsetting collection and shall 
be available to the Secretary only for the purposes of administering 
and implementing this Act with respect to that fishery.''.
    (b) Action on Limited Access Systems.--Section 304 (16 U.S.C. 1854) 
is amended by adding at the end the following:
    ``(i) Action on Limited Access Systems.--
            ``(1) Requirement for approval of plan.--The Secretary may 
        not approve a fishery management plan that establishes a 
        fishing quota system unless the plan complies with section 
        303(d).
            ``(2) Regulations.--The Secretary shall issue regulations 
        that establish requirements for establishing a fishing quota 
        system. The regulations shall--
                    ``(A) specify factors that shall be considered by a 
                Council in determining whether a fishery should be 
                managed under a fishing quota system;
                    ``(B) ensure that any fishing quota system is 
                consistent with the requirements of section 303(d);
                    ``(C) require the collection of fees in accordance 
                with subsection (d)(3) of this section;
                    ``(D) provide for appropriate penalties for 
                violations of regulations governing fishing quota 
                systems, including the revocation of quota shares for 
                such violations; and
                    ``(E) establish a central lien registry system for 
                the identification, perfection, and determination of 
                lien priorities, and nonjudicial foreclosure of 
                encumbrances, on fishing quotas.''.

SEC. 6. MISCELLANEOUS CONFORMING AMENDMENTS.

    (a) Section 305.--Section 305(h)(1) (16 U.S.C. 1855(h)(1)) is 
amended by striking ``individual''.
    (b) Section 402.--Section 402(b)(1)(D) (16 U.S.C. 1881a(b)(1(D)) is 
amended by striking ``individual fishing quota program'' and inserting 
``fishing quota system''.
    (c) Section 407.--Section 407 (16 U.S.C. 1883) is amended--
            (1) in subsection (a)(1)(D) by striking ``individual 
        fishing quota program'' and inserting ``fishing quota system''; 
        and
            (2) in subsection (c)(1) by striking ``individual fishing 
        quota program'' and inserting ``fishing quota system''.
                                 <all>
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