‘‘(C) meet criteria developed by the Governor of
Alaska, approved by the Secretary, and published in
the Federal Register;
‘‘(D) be certified by the Secretary of the Interior
pursuant to the Alaska Native Claims Settlement Act
to be a Native village;
‘‘(E) consist of residents who conduct more than
one-half of their current commercial or subsistence
fishing effort in the waters of the Bering Sea and
Aleutian Islands management area; and
‘‘(F) not have previously developed harvesting or
processing capability sufficient to support substantial
participation in the groundfish fisheries in the Bering
Sea, unless the community can show that the benefits
from an approved Community Development Plan
would be the only way for the community to realize
a return from previous investments.’’.
SEC. 15. OBSERVERS.
Title III (16 U.S.C. 1851 et seq.) is amended by add-
ing at the end the following:
‘‘SEC. 315. RIGHTS OF OBSERVERS.
‘‘(a) CIVIL ACTION.—An observer on a vessel (or the
observer’s personal representative) under the requirements
of this Act or the Marine Mammal Protection Act of 1972
(16 U.S.C. 1361 et seq.) that is ill, disabled, injured, or
killed from service as an observer on that vessel may not
bring a civil action under any law of the United States
for that illness, disability for that illness, disability, injury,
or death against the vessel or vessel owner, except that a
civil action may be brought against the vessel owner for
the owner’s willful misconduct.
‘‘(b) EXCEPTION.—Subsection (a) does not apply if the
observer is engaged by the owner, master, or individual in
charge of a vessel to perform any duties in service to the
vessel.’’.
SEC. 16. INDIVIDUAL QUOTA LIMITED ACCESS PROGRAMS.
(a) AUTHORITY TO ESTABLISH INDIVIDUAL QUOTA
SYSTEMS.—Section 303(b)(6) (16 U.S.C. 1853(b)(6)) is
amended to read as follows:
‘‘(6) establish a limited access system for the
fishery in order to achieve optimum yields, if—
‘‘(A) in developing such system, the Coun-
cils and the Secretary take into account—
‘‘(i) the need to promote conservation;
‘‘(ii) present participation in the fish-
ery,
‘‘(iii) historical fishing practices in,
and dependence on, the fishery,
‘‘(iv) the economics of the fishery,
‘‘(v) the capability of fishing vessels
used in the fishery to engage in other fish-
eries,
‘‘(vi) the cultural and social framework
relevant to the fishery and local coastal
communities, and
‘‘(vii) any other relevant consider-
ations; and
‘‘(B) in the case of such a system that pro-
vides for the allocation and issuance of individ-
ual quotas (as that term is defined in subsection
(g)), the plan complies with subsection (g).’’.
(b) REQUIREMENTS.—Section 303 is further amended
by adding at the end the following new subsection:
‘‘(g) SPECIAL PROVISIONS FOR INDIVIDUAL QUOTA
SYSTEMS.—(1) A fishery management plan which estab-
lishes an individual quota system for a fishery—
‘‘(A) shall provide for administration of the sys-
tem by the Secretary in accordance with the terms of
the plan;
‘‘(B) shall not create, or be construed to create,
any right, title, or interest in or to any fish before the
fish is harvested;
‘‘(C) shall include provisions which establish
procedures and requirements for each Council having
authority over the fishery, for—
‘‘(i) reviewing and revising the terms of the
plan that establish the system; and
‘‘(ii) renewing, reallocating, and reissuing
individual quotas if determined appropriate by
each Council;
‘‘(D) shall include provisions to—
‘‘(i) provide for fair and equitable alloca-
tion of individual quotas under the system, and
minimize negative social and economic impacts
of the system on local coastal communities;
‘‘(ii) ensure adequate enforcement of the sys-
tem, including the use of observers where appro-
priate; and
‘‘(iii) provide for monitoring the temporary
or permanent transfer of individual quotas
under the system; and
‘‘(E) include provisions that prevent any person
from acquiring an excessive share of individual
quotas issued for a fishery.
‘‘(2) An individual quota issued under an individual
quota system established by a fishery management plan—
‘‘(A) shall be considered a grant, to the holder of
the individual quota, of permission to engage in ac-
tivities permitted by the individual quota;
‘‘(B) may be revoked or limited at any time by
the Secretary or the Council having authority over the
fishery for which it is issued, if necessary for the con-
servation and management of the fishery (including
as a result of a violation of this Act or any regulation
prescribed under this Act);
‘‘(C) if revoked or limited by the Secretary or a
Council, shall not confer any right of compensation to
the holder of the individual quota;
‘‘(D) may be received, held, or transferred in ac-
cordance with regulations prescribed by the Secretary
under this Act;
‘‘(E) shall, except in the case of an individual
quota allocated under an individual quota system es-
tablished before the date of enactment of the Fishery
Conservation and Management Amendments of 1995,
expire not later than 7 years after the date it is is-
sued, in accordance with the terms of the fishery man-
agement plan; and
‘‘(F) upon expiration under subparagraph (E),
may be renewed, reallocated, or reissued if determined
appropriate by each Council having authority over
the fishery.
‘‘(3)(A) Except as provided in subparagraphs (B) and
(C), any fishery management plan that establishes an indi-
vidual quota system for a fishery may authorize individual
quotas to be held by or issued under the system to fishing
vessel owners, fishermen, crew members, other persons as
specified by the Council, and United States fish processors.
‘‘(B) An individual who is not a citizen of the United
States may not hold an individual quota issued under a
fishery management plan.
‘‘(C) A Federal agency or official may not hold, ad-
minister, or reallocate an individual quota issued under a
fishery management plan, other than the Secretary and the
Council having authority over the fishery for which the in-
dividual quota is issued.
‘‘(4) Any fishery management plan that establishes an
individual quota system for a fishery may include provi-
sions that—
‘‘(A) allocate individual quotas under the system
among categories of vessels; and
‘‘(B) provide a portion of the annual harvest in
the fishery for entry-level fishermen, small vessel own-
ers, or crewmembers who do not hold or qualify for
individual quotas.
‘‘(5) An individual quota system established for a fish-
ery may be limited or terminated at any time by the Sec-
retary or through a fishery management plan or amend-
ment developed by the Council having authority over the
fishery for which it is established, if necessary for the con-
servation and management of the fishery.
‘‘(6) As used in this subsection:
‘‘(A) The term ‘individual quota system’ means
a system that limits access to a fishery in order to
achieve optimum yields, through the allocation and
issuance of individual quotas.
‘‘(B) The term ‘individual quota’ means a grant
of permission to harvest or process a quantity of fish
in a fishery, during each fishing season for which the
permission is granted, equal to a stated percentage of
the total allowable catch for the fishery.’’.
(c) FEES.—Section 304(d) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary
shall’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2)(A) Notwithstanding paragraph (1), the Secretary
shall collect from a person that holds or transfers an indi-
vidual quota issued under a limited access system estab-
lished under section 303(b)(6) fees established by the Sec-
retary 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) An initial allocation fee in an amount, de-
termined by the Secretary, equal to 1 percent of the
value of fish authorized to be harvested in one year
under an individual quota, which shall be collected
from the person to whom the individual quota is first
issued.
‘‘(ii) An annual fee in an amount, determined
by the Secretary, not to exceed 4 percent of the value
of fish authorized to be harvested each year under an
individual quota share, which shall be collected from
the holder of the individual quota share.
‘‘(iii) A transfer fee in an amount, determined
by the Secretary, equal to 1 percent of the value of
fish authorized to be harvested each year under an in-
dividual quota share, which shall be collected from a
person who permanently transfers the individual
quota share to another person.
‘‘(C) In determining the amount of a fee under this
paragraph, the Secretary shall ensure that the amount is
commensurate with the cost of managing the fishery with
respect to which the fee is collected, including reasonable
costs for salaries, data analysis, and other costs directly re-
lated to fishery management and enforcement.
‘‘(D) The Secretary, in consultation with the Councils,
shall promulgate regulations prescribing the method of de-
termining under this paragraph the value of fish authorized
to be taken under an individual quota share, the amount
of fees, and the method of collecting fees.
‘‘(E) Fees collected under this paragraph from holders
of individual quotas in a fishery shall be an offsetting col-
lection and shall be available to the Secretary only for the
purposes of administering and implementing this Act with
respect to that fishery.
‘‘(F) The Secretary may not assess or collect any fee
under this paragraph with respect to an individual quota
system established before the date of enactment of the Fish-
ery Conservation and Management Amendments of 1995,
during the 5-year period beginning on that date of enact-
ment.’’.
(d) APPROVAL OF FISHERY MANAGEMENT PLANS ES-
TABLISHING INDIVIDUAL QUOTA SYSTEMS.—Section 304
(16 U.S.C. 1854) is further amended by adding after sub-
section (k) (as added by section 10 of this Act) the following
new subsection:
‘‘(l) ACTION ON LIMITED ACCESS SYSTEMS.—(1) In
addition to the other requirements of this Act, the Secretary
may not approve a fishery management plan that estab-
lishes a limited access system that provides for the alloca-
tion of individual quotas (in this subsection referred to as
an ‘individual quota system’) unless the plan complies with
section 303(g).
‘‘(2) Within 1 year after receipt of recommendations
from the review panel established under paragraph (3), the
Secretary shall issue regulations which establish require-
ments for establishing an individual quota system. The reg-
ulations shall be developed in accordance with the rec-
ommendations. The regulations shall—
‘‘(A) specify factors that shall be considered by a
Council in determining whether a fishery should be
managed under an individual quota system;
‘‘(B) ensure that any individual quota system is
consistent with the requirements of sections 303(b)
and 303(g), and require the collection of fees in ac-
cordance with subsection (d)(2);
‘‘(C) provide for appropriate penalties for viola-
tions of individual quotas systems, including the rev-
ocation of individual quotas for such violations;
‘‘(D) include recommendations for potential
management options related to individual quotas, in-
cluding the authorization of individual quotas that
may not be transferred by the holder, and the use of
leases or auctions by the Federal Government in the
establishment or allocation of individual quotas; and
‘‘(E) establish a central lien registry system for
the identification, perfection, and determination of
lien priorities, and nonjudicial foreclosure of encum-
brances, on individual quotas.
‘‘(3)(A) Not later than 6 months after the date of the
enactment of the Fishery Conservation and Management
Amendments of 1995, the Secretary shall establish a review
panel to evaluate fishery management plans in effect under
this Act that establish a system for limiting access to a fish-
ery, including individual quota systems, and other limited
access systems, with 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 use of limited access systems under
which individual quotas may not be transferred by
the holder, and the use of leases or auctions in the es-
tablishment or allocation of individual quota shares.
‘‘(B) The review panel shall consist of—
‘‘(i) the Secretary or a designee of the Secretary;
‘‘(ii) a representative of each Council, selected by
the Council;
‘‘(iii) 3 representatives of the commercial fishing
and processing industry; and
‘‘(iv) one at large representative who is selected
by reason of occupational or other experience, sci-
entific expertise, or training, and who is knowledge-
able regarding the conservation and management or
the commercial or recreational harvest of fishery re-
sources.
‘‘(C) Based on the evaluation required under subpara-
graph (A), the review panel shall, by September 30, 1997,
submit recommendations—
‘‘(i) to the Councils and the Secretary with re-
spect to the revision of individual quota systems that
were established under this Act prior to June 1, 1995;
and
‘‘(ii) to the Secretary for the development of the
regulations required under paragraph (2).’’.
(e) RESTRICTION ON NEW INDIVIDUAL QUOTA SYS-
TEMS PENDING REGULATIONS.—
(1) RESTRICTION.—The Secretary of Commerce
may not approve any covered quota system plan, and
no covered quota system plan shall take effect, under
title III of the Magnuson Fishery Conservation and
Management Act before the effective date of regula-
tions issued by the Secretary under section 304(l) of
that Act, as added by subsection (d).
(2) COVERED QUOTA SYSTEM PLAN DEFINED.—
In this subsection, the term ‘‘covered quota system
plan’’ means a fishery management plan or amend-
ment to a fishery management plan, that—
(A) proposes establishment of an individual
quota system (as that term is used in section 303
of the Magnuson Fishery Conservation and Man-
agement Act, as amended by subsection (a) of
this section); and
(B) is submitted to the Secretary after May
1, 1995.
SEC. 17. FISHING CAPACITY REDUCTION PROGRAMS.
(a) IN GENERAL.—Title III (16 U.S.C. 1851 et seq.)
is further amended by adding after section 315 (as added
by section 15 of this Act) the following new section:
‘‘SEC. 316. FISHING CAPACITY REDUCTION PROGRAMS.
‘‘(a) AUTHORITY TO CONDUCT PROGRAM.—The Sec-
retary, with the concurrence of the Council having author-
ity over a fishery, may conduct a voluntary fishing capac-
ity reduction program for a fishery in accordance with this
section, if—
‘‘(1) the Secretary—
‘‘(A) determines that the program is nec-
essary for rebuilding, preventing overfishing, or
generally improving conservation and manage-
ment of the fishery; or
‘‘(B) is requested to do so by the Council
with authority over the fishery; and
‘‘(2) there is in effect under section 304 a fishery
management plan that—
‘‘(A) limits access to the fishery through a
Federal fishing permit required by a limited ac-
cess system established under section 303(b)(6);
and
‘‘(B) prevents the replacement of fishing ca-
pacity eliminated by the program through—
‘‘(i) a moratorium on the issuance of
new Federal fishing permits for the dura-
tion of the repayment period; and
‘‘(ii) restrictions on fishing vessel ca-
pacity upgrading.
‘‘(b) PROGRAM REQUIREMENTS.—Under a fishing ca-
pacity reduction program conducted under this section for
a fishery, the Secretary shall—
‘‘(1) seek to permanently reduce the maximum
effective fishing capacity at the least cost and in the
shortest period of time through the removal of vessels
and permits from the fishery;
‘‘(2) make payments to—
‘‘(A) scrap or otherwise render permanently
unusable for fishing in the United States, vessels
that operate in the fishery; and
‘‘(B) acquire the Federal fishing permits
that authorize participation in the fishery;
‘‘(3) provide for the funding of those payments
by persons that participate in the fishery, by estab-
lishing and imposing fees on holders of Federal fish-
ing permits under this Act that authorize that par-
ticipation;
‘‘(4) establish criteria for determining the types
of vessels and permits which are eligible to partici-
pate in the program, that—
‘‘(A) assess vessel impact on the fishery;
‘‘(B) minimize program costs; and
‘‘(C) take into consideration—
‘‘(i) previous fishing capacity reduc-
tion programs; and
‘‘(ii) the characteristics of the fishery;
‘‘(5) establish procedures for determining the
amount of payments under paragraph (1); and
‘‘(6) identify sources of funding for the program
in addition to the amounts referred to in subsection
(f)(2)(A), (B), (C), and (D).
‘‘(c) PAYMENTS.—
‘‘(1) IN GENERAL.—As part of a fishing capacity
reduction program under this section, and subject to
paragraph (2) the Secretary shall make payments
under subsection (b)(2).
‘‘(2) ESTABLISHMENT OF FEE REQUIRED.—The
Secretary may not make any payment under para-
graph (1) for a fishery unless there is in effect for the
fishery a fee under subsection (d).
‘‘(3) LIMITATION
ON
TOTAL
AMOUNT
OF
PAY-
MENTS FOR FISHERY.—The total amount of payments
under paragraph (1) for a fishery may not exceed the
total amount the Secretary projects will be deposited
into the Fund from fees that apply to the fishery
under subsection (d).
‘‘(d) FEES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, the Secretary, with the concurrence
of a majority of the voting members of a Council hav-
ing authority over a fishery for which a fishing ca-
pacity reduction program is conducted under this sec-
tion, may establish an annual fee on holders of Fed-
eral fishing permits authorizing participation in the
fishery.
‘‘(2) AMOUNT OF FEE.—The amount of a fee es-
tablished under this subsection for a fishery described
in paragraph (1)—
‘‘(A) shall be adequate to ensure that the
total amount collected in the form of the fee will
not be less than the amount the Secretary deter-
mines is necessary for payments under sub-
section (b)(2) to reduce fishing capacity in the
fishery to a level that will ensure the long-term
health of the fishery;
‘‘(B) shall be based on—
‘‘(i) the value of the fishery;
‘‘(ii) the projected number of partici-
pants in the fishery;
‘‘(iii) the projected catch in the fishery;
and
‘‘(iv) the direct costs of implementing a
fishing capacity reduction program under
this section for the fishery; and
‘‘(C) may not exceed, for any permit holder,
5 percent of the value of fish harvested under the
permit each year.
‘‘(3) EFFECTIVE PERIOD.—A fee under this sub-
section may not be in effect for more than 15 years.
‘‘(4) USE OF AMOUNTS RECEIVED.—Amounts re-
ceived by the United States as fees under this sub-
section—
‘‘(A) shall be deposited into the Fund; and
‘‘(B) may not be used to pay any adminis-
trative overhead or other costs not directly in-
curred in implementing this section with respect
to the fishery.
‘‘(e) ADVISORY PANELS.—
‘‘(1) IN GENERAL.—The Secretary shall establish
for each fishery for which a fishing capacity reduc-
tion program is conducted under this section an advi-
sory panel to advise the Secretary regarding that pro-
gram.
‘‘(2) MEMBERSHIP.—Each advisory panel under
this subsection shall consist of individuals appointed
by the Secretary and shall include representatives
of—
‘‘(A) the Department of Commerce,
‘‘(B) Councils having authority over fish-
eries for which the panel is established,
‘‘(C) appropriate sectors of the fishing in-
dustry affected by fishing capacity reduction
programs under this sections, and
‘‘(D) appropriate States affected by such
programs.
‘‘(f) FISHERIES CONSERVATION
AND RESTORATION
FUND.—
‘‘(1) ESTABLISHMENT.—There is established in
the Treasury of the United States a separate account
which shall be known as the Fisheries Conservation
and Restoration Fund (in this section referred to as
the ‘Fund’).
‘‘(2) DEPOSITS INTO THE FUND.—There shall be
deposited into the Fund—
‘‘(A) amounts appropriated under clause
(iv) of section 2(b)(1)(A) of the Act of August 11,
1939 (15 U.S.C. 713c–3(b)(1)(A)), popularly
known as the Saltonstall-Kennedy Act;
‘‘(B) amounts paid to the United States
Government as fees established under subsection
(d);
‘‘(C) any other amounts appropriated for
fisheries disaster that the Secretary determines
should be used for fishing capacity reduction
programs under this section; and
‘‘(D) any other amounts appropriated for
making payments under subsection (b)(2).
‘‘(3) AVAILABILITY.—
‘‘(A) IN GENERAL.—Amounts in the Fund
shall be available to the Secretary without fiscal
year limitation for making payments under sub-
section (b)(2).
‘‘(B) MANAGEMENT
OF
UNNEEDED
BAL-
ANCE.—Amounts in the Fund that are not cur-
rently needed for the purposes of this section
shall be invested in obligations of, or guaranteed
by, the United States.
‘‘(g) EXPIRATION OF ACQUIRED PERMITS.—Permits
acquired by the Secretary under subsection (b)(2)(B)—
‘‘(1) shall not be effective after the date of that
acquisition; and
‘‘(2) may not be reissued or replaced.’’.
(b) 
USE
OF
AMOUNTS
TRANSFERRED
UNDER
SALTONSTALL-KENNEDY ACT.—Section 2(b)(1) of the Act
of August 11, 1939 (15 U.S.C. 713c–3(b)(1)), popularly
known as the Saltonstall-Kennedy Act, is amended in sub-
paragraph (A) by striking ‘‘and’’ after the semicolon at the
end of clause (ii), by striking the period at the end of clause
(iii) and inserting ‘‘; and’’, and by adding at the end the
following new clause:
‘‘(iv) to fund fishing capacity reduction
programs under section 316 of the Magnuson
Fishery Conservation and Management Act, by
depositing a portion of amounts transferred into
the Fisheries Conservation and Restoration Fund
established by that section; and’’.
SEC. 18. CONSIDERATION OF ABILITY TO PAY PENALTIES.
Section 308(a) (16 U.S.C. 1858(a)) is amended—
(1) in the last sentence by striking ‘‘ability to
pay,’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In assessing such penalty, the Secretary may
also consider facts relating to the ability of the viola-
tor to pay that are established by the violator in a
timely manner.’’.
SEC. 19. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Title IV (90 Stat. 359–361) is
amended to read as follows:
‘‘TITLE IV—MISCELLANEOUS
PROVISIONS
‘‘SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to the Sec-
retary, for carrying out this Act, the following:
‘‘(1) $114,000,000 for fiscal year 1996.
‘‘(2) $118,000,000 for fiscal year 1997.
‘‘(3) $122,000,000 for fiscal year 1998.
‘‘(4) $126,000,000 for fiscal year 1999.
‘‘(5) $130,000,000 for fiscal year 2000.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
the first section of the Magnuson Fishery Conservation and
Management Act is amended by striking the items relating
to title IV (including the items relating to the sections in
that title) and inserting the following:
‘‘TITLE IV—MISCELLANEOUS PROVISIONS
‘‘Sec. 401. Authorization of appropriations.’’.
SEC. 20. TECHNICAL CORRECTIONS.
(a) CORRECTION.—Section 304 of the Act entitled ‘‘An
Act to provide for the designation of the Flower Garden
Banks National Marine Sanctuary’’, approved March 9,
1992 (Public Law 102–251; 106 Stat. 65), is repealed.
(b) CONFORMING AMENDMENT.—Section 3(15) of the
Marine Mammal Protection Act of 1972 (16 U.S.C.
1362(15)) is amended to read as follows:
‘‘(15) The term ‘waters under the jurisdiction of
the United States’ means—
‘‘(A) the territorial sea of the United States;
‘‘(B) the waters included within a zone,
contiguous to the territorial sea of the United
States, of which the inner boundary is a line co-
terminous with the seaward boundary of each
coastal State, and the outer boundary is a line
drawn in such a manner that each point on it
is 200 nautical miles from the baseline from
which the territorial sea is measured; and
‘‘(C) the areas referred to as eastern special
areas in Article 3(1) of the Agreement between
the United States of America and the Union of
Soviet Socialist Republics on the Maritime
Boundary, signed June 1, 1990; in particular,
those areas east of the maritime boundary, as de-
fined in that Agreement, that lie within 200
nautical miles of the baselines from which the
breadth of the territorial sea of Russia is meas-
ured but beyond 200 nautical miles of the base-
lines from which the breadth of the territorial sea
of the United States is measured, except that this
subparagraph shall not apply before the date on
which the Agreement between the United States
and the Union of Soviet Socialist Republics on
the Maritime Boundary, signed June 1, 1990,
enters into force for the United States.’’.
SEC. 21. CLERICAL AMENDMENTS.
The Magnuson Fishery Conservation and Management
Act (16 U.S.C. 1801 et seq.) is amended by striking ‘‘Com-
mittee on Merchant Marine and Fisheries’’ each place it
appears and inserting ‘‘Committee on Resources’’.