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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 343 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 343

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, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 10, 2005

 Mr. Wyden (for himself and Mr. Smith) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
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, 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 ``Capital Construction Fund Qualified 
Withdrawal Act of 2005''.

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) In general.--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 with 
                respect to any vessel operated in the fisheries of the 
                United States, 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);
                    ``(F) the payment of the net proceeds deposited 
                into the fund from a sale described in subsection 
                (b)(1)(C)(ii) to a person retiring related commercial 
                fishing vessels and permits;
                    ``(G) the acquisition of a vessel monitoring system 
                as a safety improvement for a fishing vessel; or
                    ``(H) the acquisition or construction of fishing 
                gear designed to minimize or avoid bycatch as required 
                under section 301(a)(9) of the Magnuson-Stevens Fishery 
                Conservation and Management Act (16 U.S.C. 
                1851(a)(9)).''.
            (2) Reduction program sale proceeds allowed in determining 
        deposit ceiling.--Section 607(b)(1)(C) of such Act (46 U.S.C. 
        App. 1177(b)(1)(C)) is amended by striking ``or (ii)'' and 
        inserting ``(ii) the sale of any agreement vessel or fishing 
        permit retired through the fishing capacity reduction program 
        under section 312(b) of the Magnuson-Stevens Fishery 
        Conservation and Management Act (16 U.S.C. 1861a(b)), or 
        (iii)''.
            (3) Certain qualified withdrawals treated as withdrawn from 
        the capital account.--Section 607(e)(2)(B) of such Act (46 
        U.S.C. App. 1177(e)(2)(B)) is amended by adding at the end 
        ``unless such portion represents gain from a sale described in 
        subsection (b)(1)(C)(ii) and is withdrawn for any purpose 
        provided under subparagraph (D), (E), or (F) of subsection 
        (f)(1),''.
            (4) 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 with respect to 
                any vessel operated in the fisheries of the United 
                States, 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));
                    ``(F) the payment of the net proceeds deposited 
                into the fund from a sale described in subsection 
                (a)(1)(C)(ii) to a person retiring related commercial 
                fishing vessels and permits;
                    ``(G) the acquisition of a vessel monitoring system 
                as a safety improvement for a fishing vessel; or
                    ``(H) the acquisition or construction of fishing 
                gear designed to minimize or avoid bycatch as required 
                under section 301(a)(9) of the Magnuson-Stevens Fishery 
                Conservation and Management Act (16 U.S.C. 
                1851(a)(9)).''.
            (2) Reduction program sale proceeds allowed in determining 
        deposit ceiling.--Section 7518(a)(1)(C) of such Code is amended 
        by striking ``or'' at the end of clause (i), by redesignating 
        clause (ii) as clause (iii), and by inserting after clause (i) 
        the following new clause:
                            ``(ii) the sale of any agreement vessel or 
                        fishing permit retired through the fishing 
                        capacity reduction program under section 312(b) 
                        of the Magnuson-Stevens Fishery Conservation 
                        and Management Act (16 U.S.C. 1861a(b)), or''.
            (3) Certain qualified withdrawals treated as withdrawn from 
        the capital account.--Section 7718(d)(2)(B) of such Code is 
        amended by adding at the end ``unless such portion represents 
        gain from a sale described in subsection (a)(1)(C)(ii) and is 
        withdrawn for any purpose provided under subparagraph (D), (E), 
        or (F) of subsection (e)(1),''.
            (4) 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.
    (d) Effective Date.--The amendments made by this section shall 
apply to withdrawals made after the date of enactment of this Act.
                                 <all>
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