I 
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 Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fishing Quota Stand-
ards Act of 2003’’.
SEC. 2. AMENDMENTS TO MAGNUSON-STEVENS FISHERY 
CONSERVATION AND MANAGEMENT ACT. 
(a) IN GENERAL.—Section 303 of the Magnuson-Ste-
vens 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 devel-
oping 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 rel-
evant 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 para-
graph (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 de-
signed to ensure the sustainability of the fishery 
and provide additional and substantial con-
servation benefits to the fishery; 
‘‘(B) be effective for a period of a fixed du-
ration, not to exceed 7 years; 
‘‘(C) provide for administration of the sys-
tem 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 devel-
oped 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 termi-
nate quota shares in accordance with this sub-
section; 
‘‘(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 rev-
ocations of quota shares; 
‘‘(G) minimize, to the maximum extent 
practicable, negative social and economic im-
pacts of the system on local coastal commu-
nities; 
‘‘(H) ensure adequate enforcement, man-
agement, and data collection, including the use 
of observers where appropriate at a level of cov-
erage that yields statistically significant results; 
and
‘‘(I) not require that quota shares be held 
by a person engaged in personal-use fishing, in-
cluding 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 quali-
fiers. In allocating quota shares for a fishery, 
the Council shall—
‘‘(i) take into account present and his-
toric 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 allo-
cating a portion of the annual harvest to 
allow new entrants into the fishery; 
‘‘(iv) prevent any person from control-
ling an excessive share of fishing quotas 
issued for the fishery and establish any 
other limits or measures necessary to pre-
vent inequitable concentration of quota 
shares and to prevent significant impacts 
on any person that holds a permit author-
izing fishing in the fishery or the fishing 
community; and 
‘‘(v) create incentives in successive al-
locations 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 sub-
paragraph (A)(ii)(I), from the holder of the 
quota share to a member of the holder’s imme-
diate 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 MAN-
AGEMENT 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 es-
tablished, through a fishery management 
plan or amendment; 
‘‘(ii) the Secretary, pursuant to sec-
tion 304(h); 
‘‘(iii) the Secretary, in the case of any 
fishing quota system established by a fish-
ery management plan developed or ap-
proved 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 re-
quirement under paragraph (1)(A) to pro-
vide additional and substantial conserva-
tion 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 au-
thority of the Secretary under any other provi-
sion 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 re-
allocated in accordance with the terms of 
the plan and regulations issued by the Sec-
retary 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 share-
holder is not meeting or exceeding the re-
quirements of this Act or the conservation 
and management requirements of the fish-
ery (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 sys-
tem 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 fish-
ing quota system only if the development and 
approval of such plan or plan amendment is ap-
proved in referenda conducted in accordance 
with this paragraph. 
‘‘(B) CONDUCT.—The Secretary shall con-
duct the referenda required under subpara-
graph (A). The Secretary shall develop guide-
lines to determine procedures for the referenda 
to conduct such referenda in a fair and equi-
table manner. Prior to the referenda, the Sec-
retary shall identify and notify all persons who 
are eligible to vote in the referenda and make 
available to all such persons information con-
cerning 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 per-
sons who the Secretary determines are eligible 
to vote in the referendum. 
‘‘(D) INITIAL
REFERENDUM.—The Sec-
retary shall conduct an initial referendum to de-
termine support for proceeding with the devel-
opment of a fishing quota system. Eligible vot-
ers shall be all persons who hold a permit to 
fish in the fishery subject to the proposed quota 
system. 
‘‘(E) SECOND
REFERENDUM.—The Sec-
retary shall conduct a second referendum to de-
termine support for submitting a specific pro-
posed fishing quota system for approval and im-
plementation. 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
COM-
MITTEE.—
‘‘(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 rec-
ommendations for development, evaluation, and
necessary changes to such programs to ensure 
that they meet the requirements of this sub-
section. 
‘‘(B) GUIDELINES
FOR
MEMBERS.—The 
Council, in consultation with the Secretary, 
shall develop guidelines that will ensure that 
committee members are qualified for appoint-
ment 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 pe-
riod. 
‘‘(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 rep-
resentation to all groups affected by such pro-
grams, including, but not limited to, commer-
cial, recreational, and subsistence fishing inter-
ests, fishing communities, scientists, and public 
interest groups including conservation organiza-
tions. 
‘‘(D) REVIEWS
AND
RECOMMENDATIONS 
REGARDING SYSTEMS.—Each review committee
shall, every 7 years, review fishing quota sys-
tems, 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. Pursu-
ant to such review, the committee shall rec-
ommend any changes to a system necessary to 
ensure it meets those requirements and stand-
ards of improvement. 
‘‘(E) REVIEW OF FISHING QUOTA HOLD-
ERS.—(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 rec-
ommend 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 ap-
proved 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 sub-
stantial conservation benefits to the fishery, or 
to new entrants in a fishing gear type or vessel
category that, as a group, are providing addi-
tional 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 es-
tablished under paragraph (1)(F). 
‘‘(F) REPORTS.—The Council shall trans-
mit to the Congress a report containing the re-
sults 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 Sec-
retary 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 Coun-
cil 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 re-
quirement under paragraph (1)(A) to pro-
vide additional and substantial conserva-
tion benefits, and if not, what modifica-
tions must be made to the system in order 
for it to be renewed; and 
‘‘(iii) to develop standards for the re-
view of fishing quota shareholders by fish-
ing 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 ju-
risdiction 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 
months after the date of its establishment, the 
review panel shall also, based on an evaluation 
of the fishing quota systems that were estab-
lished prior to June 1, 1995, submit rec-
ommendations to the Secretary for the develop-
ment of the regulations required under section 
304(i). The review panel shall pay particular at-
tention to—
‘‘(i) the success of the systems in con-
serving and managing fisheries; 
‘‘(ii) the costs of implementing and 
enforcing the systems; 
‘‘(iii) the economic effects of the sys-
tems 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 estab-
lishment of the system, that substan-
tially—
‘‘(I) avoid bycatch and minimize 
the mortality of unavoidable bycatch; 
‘‘(II) prevent highgrading; 
‘‘(III) reduce overfishing (includ-
ing localized depletions) and rebuild 
overfished stocks; and 
‘‘(IV) protect essential fish habi-
tat; or 
‘‘(ii) if it is not possible to directly 
measure conservation benefits, means ac-
tions 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 in-
crease will not be detrimental to other indi-
vidual 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 detri-
mental to other individual quota share-
holders in the program; and 
‘‘(C) the term ‘fair and equitable alloca-
tion’ means initial or subsequent allocation of 
fishing quota shares based on multiple criteria 
that provide consideration for—
‘‘(i) conservation performance, includ-
ing the use of selective fishing practices 
that 
have 
minimal 
bycatch, 
prevent 
highgrading, and have minimal adverse im-
pacts on essential fish habitat; 
‘‘(ii) owner-operators of fishing ves-
sels; 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 fol-
lowing: 
‘‘(i) ACTION ON LIMITED ACCESS SYSTEMS.—In ad-
dition 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 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 rec-
ommendations 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 ac-
cordance 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 viola-
tions 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 encum-
brances, 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 percent-
age 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 fish-
ing 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 rep-
resenting 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, dur-
ing 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 ac-
cordance 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 land-
ed 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 share-
holders 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 re-
source 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 col-
lecting 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 Sec-
retary 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’’.
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