I
107TH CONGRESS
2D SESSION
H. R. 3898
To provide for qualified withdrawals from the Capital Construction Fund
for fishermen leaving the industry and for the rollover of Capital Con-
struction Funds to individual retirement plans.
IN THE HOUSE OF REPRESENTATIVES
MARCH 7, 2002
Mrs. CAPPS (for herself, Ms. HOOLEY of Oregon, Mr. DEFAZIO, Mr. WU, and
Mr. THOMPSON of California) introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the
Committee on Armed Services, for a period of time to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To provide for qualified withdrawals from the Capital Con-
struction Fund for fishermen leaving the industry and
for the rollover of Capital Construction Funds to indi-
vidual retirement plans.
Be it enacted by the Senate and House of Representa-
tives 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 2002’’.
SEC. 2. AMENDMENT OF THE MERCHANT MARINE ACT OF
1936 TO ENCOURAGE RETIREMENT OF CER-
TAIN 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 en-
tered into under this section may be modified for the pur-
pose of encouraging the sustainability of the fisheries of
the United States by making the termination and with-
drawal of a capital construction fund a qualified with-
drawal if done in exchange for the retirement of the re-
lated 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 subpara-
graph (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 au-
thorized by the fishing capacity reduction pro-
gram 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 es-
tablished 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 indi-
vidual retirement plan (as defined in section
7701(a)(37) of such Code); or
‘‘(F) the payment to a person or corpora-
tion terminating a capital construction fund for
whose benefit the fund was established and re-
tiring related commercial fishing vessels and
permits.’’.
(2) SECRETARY TO ENSURE RETIREMENT OF
VESSELS
AND
PERMITS.—The Secretary of Com-
merce by regulation shall establish procedures to en-
sure 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 subpara-
graph (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 au-
thorized by the fishing capacity reduction pro-
gram under section 312 of the Magnuson-Ste-
vens Fishery Conservation and Management
Act (16 U.S.C. 1861a);
‘‘(E) in the case of any person or share-
holder for whose benefit such fund was estab-
lished or any shareholder of such person, a roll-
over contribution (within the meaning of section
408(d)(3)) to such person’s or shareholder’s in-
dividual 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 with-
drawal 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.
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