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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2621 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 2621

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2003

  Mr. Allen (for himself, Mr. Simmons, Mr. Delahunt, Mrs. Capps, Mr. 
Capuano, Mr. Farr, Mr. Markey, Mr. George Miller of California, and Ms. 
   Woolsey) 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.

    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 
2003''.

SEC. 2. AMENDMENTS TO MAGNUSON-STEVENS FISHERY CONSERVATION AND 
              MANAGEMENT ACT.

    (a) In General.--Section 303 of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1853) is amended--
            (1) by striking subsection (b)(6) and inserting the 
        following:
            ``(6) establish a limited access system for the fishery in 
        order to achieve optimum yield if, in developing such system, 
        the Council and the Secretary take into account--
                    ``(A) the conservation requirements of this Act 
                with respect to the fishery;
                    ``(B) 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 
                public resource; and
                    ``(F) any other relevant considerations.''; and
            (2) in subsection (d)--
                    (A) by striking paragraph (5);
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (7) through (9);
                    (C) 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 2003 shall--
                    ``(A) include management measures designed to 
                ensure the sustainability of the fishery and provide 
                additional and substantial conservation benefits to the 
                fishery;
                    ``(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--
                            ``(i) 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; and
                            ``(ii) for a review by the Secretarial 
                        Review Panel established under paragraph (6) at 
                        least 6 months prior to the end of the 
                        effective period;
                    ``(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 all 
                        referenda authorized 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;
                    ``(H) 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
                    ``(I) 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 only a portion, of the total 
                allowable catch limit as quota shares among existing 
                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 persons who--
                                    ``(I) except for allocations under 
                                clause (iii), hold a permit to fish in 
                                the fishery; and
                                    ``(II) are natural persons of the 
                                United States or permanent resident 
                                aliens qualified by Federal or State 
                                law to participate in the fishery;
                            ``(iii) establish procedures for allocating 
                        a portion of the annual harvest to allow new 
                        entrants into the fishery;
                            ``(iv) prevent any person from controlling 
                        an excessive share of fishing quotas issued for 
                        the fishery and establish any other limits or 
                        measures necessary to prevent inequitable 
                        concentration of quota shares and to prevent 
                        significant impacts on any person that holds a 
                        permit authorizing fishing in the fishery or 
                        the fishing community; and
                            ``(v) create incentives in successive 
                        allocations for fishermen who increase their 
                        gear selectivity and 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, without regard to subparagraph (A)(ii)(I), from 
                the holder of the quota share to a member of the 
                holder's immediate family, 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.
            ``(3) Termination or limitation of quota system or quota 
        shares.--
                    ``(A) Termination or limitation of quota system for 
                conservation and management of the fishery.--A fishing 
                quota system established for a fishery may be limited 
                or terminated at any time 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 or the safety of 
                fishermen, 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, pursuant to section 
                        304(h);
                            ``(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 the Secretarial 
                        Review Panel finds that the system is not 
                        meeting or exceeding the requirements of this 
                        Act, including, if applicable, the requirement 
                        under paragraph (1)(A) to provide additional 
                        and substantial conservation benefits, and the 
                        Council or Secretary does not make the changes 
                        recommended by the Secretarial Review Panel to 
                        ensure compliance with this subsection.
                This subparagraph does not diminish the authority of 
                the Secretary under any other provision of this Act.
                    ``(B) Termination or limitation of quota shares.--A 
                quota share issued under a fishing quota system 
                established by a fishery management plan--
                            ``(i) shall expire not later than 7 years 
                        after the date it is issued;
                            ``(ii) shall be reviewed by the Council 
                        committee established in paragraph (5) not 
                        later than 6 months prior to expiration under 
                        clause (i); and
                            ``(iii) shall be revoked, limited, or 
                        reallocated 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 
                        (5), the quota shareholder is not meeting or 
                        exceeding the requirements of this Act or the 
                        conservation and management requirements of the 
                        fishery (including as a result of a violation 
                        of this Act or any regulation prescribed under 
                        this Act).
            ``(4) 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 
                development and submission of such plan or plan 
                amendment is approved in referenda conducted in 
accordance with this paragraph.
                    ``(ii) The Secretary, in the case of a fishery 
                management plan developed by the Secretary, may develop 
                and approve 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 referenda conducted in accordance with 
                this paragraph.
                    ``(B) Conduct.--The Secretary shall conduct the 
                referenda required under subparagraph (A). The 
                Secretary shall develop guidelines to determine 
                procedures for the referenda to conduct such referenda 
                in a fair and equitable manner. Prior to the referenda, 
                the Secretary shall identify and notify all persons who 
                are eligible to vote in the referenda 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 the persons who the 
                Secretary determines are eligible to vote in the 
                referendum.
                    ``(D) Initial referendum.--The Secretary shall 
                conduct an initial referendum to determine support for 
                proceeding with the development of a fishing quota 
                system. Eligible voters shall be all persons who hold a 
                permit to fish in the fishery subject to the proposed 
                quota system.
                    ``(E) Second referendum.--The Secretary shall 
                conduct a second referendum to determine support for 
                submitting a specific proposed fishing quota system for 
                approval and implementation. Eligible voters shall be 
                all persons who hold a permit to fish in the fishery or 
                crew members who derive at least 75 percent of their 
                income from the fishery subject to the proposed fishing 
                quota system.
            ``(5) Council program review committee.--
                    ``(A) In general.--Each Council, upon deciding to 
                develop a fishing quota program for a fishery, shall 
                establish, maintain, and appoint members of a review 
                committee to make recommendations for development, 
                evaluation, and necessary changes to such programs to 
                ensure that they meet the requirements of this 
                subsection.
                    ``(B) Guidelines for members.--The Council, in 
                consultation with the Secretary, shall develop 
                guidelines that will ensure that committee members are 
                qualified for appointment and are subject to conflict 
                of interest rules. A member 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.
                    ``(C) Appointments.--The members of a review 
                committee established by a Council under subparagraph 
                (A) shall be made by the Council in such a manner as to 
                provide fair representation to all groups affected by 
                such programs, including, but not limited to, 
                commercial, recreational, and subsistence fishing 
                interests, fishing communities, scientists, and public 
                interest groups including conservation organizations.
                    ``(D) 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. Pursuant to 
                such review, the committee shall recommend any changes 
                to a system necessary to ensure it meets those 
                requirements and standards of improvement.
                    ``(E) Review of fishing quota holders.--(i) The 
                review committee shall review compliance of fishing 
                quota holders under a fishing quota system with the 
                system and this Act at least once every 7 years, and 
                may recommend that a quota share be limited, reduced, 
                or revoked if the shareholder is not meeting such 
                requirements.
                    ``(ii) Reduced and revoked quota shares shall be 
                reallocated through a mechanism approved by the 
                Council. In the case of any such reallocation, 
                preference shall be given to those quota shareholders 
                that the review committee determines are providing 
                additional and substantial conservation benefits to the 
                fishery, or to new entrants in a fishing gear type or 
                vessel category that, as a group, are providing 
additional and substantial conservation benefits to the fishery.
                    ``(iii) Any recommendation for limitation, 
                reduction, revocation, or reallocation of quota share 
                is subject to appeal under the process established 
                under paragraph (1)(F).
                    ``(F) Reports.--The Council shall transmit to the 
                Congress a report containing the results of each 
                fishing quota system review within 90 days after the 
                review is completed.
            ``(6) Secretarial review panel.--
                    ``(A) In general.--Not later than 6 months after 
                the date of the enactment of the Fishing Quota 
                Standards Act of 2003, the Secretary shall establish a 
                review panel--
                            ``(i) to conduct reviews of fishing quota 
                        systems to determine whether such systems are 
                        meeting the requirements of this subsection;
                            ``(ii) to provide the appropriate Council 
                        with recommendations on whether a fishing quota 
                        system should be renewed if it is meeting or 
                        exceeding the requirements of this Act, 
                        including, if applicable, the requirement under 
                        paragraph (1)(A) to provide additional and 
                        substantial conservation benefits, and if not, 
                        what modifications must be made to the system 
                        in order for it to be renewed; and
                            ``(iii) to develop standards for the review 
                        of fishing quota shareholders by fishing quota 
                        review committees established under paragraph 
                        (5) by Councils.
                    ``(B) Membership.--The review panel shall consist 
                of--
                            ``(i) the Secretary or a designee of the 
                        Secretary;
                            ``(ii) the Commandant of the Coast Guard or 
                        a designee of the Commandant;
                            ``(iii) a representative of each Council, 
                        selected by the Council from among its members; 
                        and
                            ``(iv) 5 individuals with knowledge and 
                        experience in fisheries management.
                    ``(C) Voting.--(i) A member of the review panel 
                that is a representative of a Council shall not vote on 
                any decision pertaining to a fishing quota system for a 
                fishery that is under the jurisdiction of the Council.
                    ``(ii) A member of the review panel shall not vote 
                on a decision pertaining to any fishing quota system 
                under which the member holds a quota share or will hold 
                a quota share in the subsequent 5-year period.
                    ``(D) Recommendations.--Within 6 months after the 
                date of its establishment, the review panel shall also, 
                based on an evaluation of the fishing quota systems 
                that were established prior to June 1, 1995, submit 
                recommendations to the Secretary for the development of 
                the regulations required under section 304(i). The 
                review panel shall pay particular attention to--
                            ``(i) the success of the systems in 
                        conserving and managing fisheries;
                            ``(ii) the costs of implementing and 
                        enforcing the systems;
                            ``(iii) the economic effects of the systems 
                        on local communities; and
                            ``(iv) the methods used to establish or 
                        allocate quota shares.''; and
                    (D) by adding at the end the following:
            ``(10) Definitions.--For the purposes of this subsection--
                    ``(A) the term `additional and substantial 
                conservation benefits to the fishery'--
                            ``(i) means scientifically measurable 
                        benefits to the fishery at the time of 
                        establishment of the 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 by a fishing quota shareholder that are 
                        considered necessary to provide such benefits;
                    ``(B) 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 than 5 percent, if the 
                        Council can demonstrate that such an increase 
                        will not be detrimental to other individual 
                        fishing quota shareholders in the program; or
                            ``(ii) to no more than 15 percent, if there 
                        are 20 or fewer participants in the fishery and 
                        the Council can demonstrate that such an 
                        increase will not be detrimental to other 
                        individual quota shareholders in the program; 
                        and
                    ``(C) the term `fair and equitable allocation' 
                means initial or subsequent allocation of fishing quota 
                shares based on multiple criteria that provide 
                consideration for--
                            ``(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.''.
    (b) Action on Limited Access Systems.--Section 304 of such Act (16 
U.S.C. 1854) is amended by striking subsection (d)(2)(B), and by adding 
at the end the following:
    ``(i) Action on Limited Access Systems.--In addition to the other 
requirements of this Act, the Secretary may not approve a fishery 
management plan that establishes a limited access system that provides 
for the allocation of fishing quotas (in this subsection referred to as 
a `fishing quota system') unless the plan complies with section 303(d). 
Within 1 year after receipt of recommendations from the review panel 
established under section 303(d)(6), the Secretary shall issue 
regulations that establish requirements for establishing a fishing 
quota system. The regulations shall be developed in accordance with the 
recommendations of the review panel. The regulations shall--
            ``(1) specify factors that shall be considered by a Council 
        in determining whether a fishery should be managed under a 
        fishing quota system;
            ``(2) ensure that any fishing quota system is consistent 
        with the requirements of section 303(d), and require the 
        collection of fees in accordance with subsection (d)(1) of this 
        section;
            ``(3) provide for appropriate penalties for violations of 
        regulations governing fishing quota systems, including the 
        revocation of quota shares for such violations; and
            ``(4) establish a central lien registry system for the 
        identification, perfection, and determination of lien 
        priorities, and nonjudicial foreclosure of encumbrances, on 
        fishing quotas.''.
    (c) Definitions.--Section 3 of such Act (16 U.S.C. 1802) is amended 
by adding at the end the following:
            ``(48) The term `fishing quota system' means any system 
        that requires a user to acquire a Federal permit, which 
        specifies by a unit or units a percentage of the total 
        allowable catch of a fishery that may be received or held for 
        exclusive use by a person or a definable group of persons, to 
        harvest fish in a fishery, during each fishing season for which 
        the permission is granted, including area or community quotas, 
        sector quotas, fishing cooperatives, and fishing quota 
        programs.
            ``(49) The term `quota share' means a Federal permit under 
        a fishing quota system to harvest a quantity of fish, expressed 
        by a unit or units representing a percentage of the total 
        allowable catch of a fishery that may be received or held for 
        exclusive use by a person or a definable group of persons, 
        during each fishing season for which the permission is 
        granted.''.
    (d) Fees.--Section 304(d) of such Act (16 U.S.C. 1854(d)) is 
amended--
            (1) in paragraph (2)(A) by striking ``any'' and all that 
        follows through ``(ii)'' and inserting ``any''; and
            (2) by adding at the end the following:
            ``(3)(A) Notwithstanding paragraph (1), the Secretary shall 
        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 
                2003, 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 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 quota shareholders in the fishery is sufficient to 
        recover direct costs related to administering and implementing 
        the program, including enforcement, management, data collection 
        (including adequate observer coverage), and scientific 
        research, and to recover a fair resource rent.
            ``(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 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.''.
    (e) Conforming Amendments.--
            (1) The following provisions of the Magnuson-Stevens 
        Fishery Conservation and Management Act are each amended by 
        striking ``individual fishing quota'' each place it appears and 
        inserting ``quota share'':
                    (A) Section 303(d)(7), as redesignated by 
                subsection (a)(2) of this section.
                    (B) Section 304(c)(3) (16 U.S.C. 211854(c)(3)).
                    (C) Section 402(b)(1)(D) (16 U.S.C. 
                1881a(b)(1)(D)).
                    (D) Section 407(a)(1)(D), (c)(1), and (c)(2)(B) (16 
                U.S.C. 1883(a)(1)(D), (c)(1), and (c)(2)(B)).
            (2) Section 305(h)(1) of such Act (16 U.S.C. 1855(h)(1)) is 
        amended by striking ``individual''.
                                 <all>
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