I
107TH CONGRESS
2D SESSION
H. R. 4749
To reauthorize the Magnuson-Stevens Fishery Conservation and Management
Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 16, 2002
Mr. GILCHREST introduced the following bill; which was referred to the
Committee on Resources
A BILL
To reauthorize the Magnuson-Stevens Fishery Conservation
and Management Act, and for other purposes.
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 ‘‘Magnuson-Stevens Act
Amendments of 2002’’.
SEC. 2. AMENDMENT OF MAGNUSON-STEVENS FISHERY
CONSERVATION AND MANAGEMENT ACT.
Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a
section or other provision of Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1801 et
seq.).
SEC. 3. REPORT ON OVER CAPITALIZATION.
(a) IN GENERAL.—The Secretary shall, within 12
months after the date of the enactment of this Act, submit
to the Congress a report—
(1) identifying and describing the 20 fisheries
in United States waters with the most severe exam-
ples of excess harvesting capacity in the fisheries,
based on value of each fishery and the amount of ex-
cess harvesting capacity as determined by the Sec-
retary;
(2) recommending measures for reducing such
excess harvesting capacity, including the retirement
of any latent fishing permits that could contribute to
further excess harvesting capacity in those fisheries;
and
(3) potential sources of funding for such meas-
ures.
(b) BASIS FOR RECOMMENDATIONS.—The Secretary
shall base the recommendations made with respect to a
fishery on—
(1) the most cost effective means of achieving
voluntary reduction in capacity for the fishery using
the potential for industry financing; and
(2) including measures to prevent the capacity
that is being removed from the fishery from moving
to other fisheries in the United States, in the waters
of a foreign nation, or in the high seas.
SEC. 4. BUYOUT PROVISIONS.
(a) DISCRETION OF SECRETARY TO CONDUCT FISH-
ING CAPACITY REDUCTION PROGRAM.—Section 312(b)
(16 U.S.C. 1861a(b)) is amended—
(1) in paragraph (1) by striking ‘‘, at the re-
quest of the appropriate Council for fisheries under
the authority of such Council, or the Governor of a
State for fisheries under State authority,’’;
(2) in paragraph (1), by inserting ‘‘that is man-
aged under a limited access system authorized by
section 303(b)(6),’’ after ‘‘in a fishery’’; and
(3) by redesignating paragraph (4) as para-
graph (5), and by inserting after paragraph (3) the
following:
‘‘(4) The Council, or the Governor of a State, having
authority over a fishery may request the Secretary to con-
duct a fishing capacity reduction program in the fishery
under this subsection.’’.
1861a(b)) is further amended by adding at the end the
following:
‘‘(5) The Secretary may not make a payment under
paragraph (2) with respect to a vessel that will not be
scrapped, unless the Secretary certifies that the vessel will
not be used for any fishing, including fishing in the waters
of a foreign nation and fishing on the high seas.’’.
SEC. 5. DATA COLLECTION.
(a) COLLECTION OF RECREATIONAL CATCH DATA.—
Section 402 (16 U.S.C. 1881a) is amended by adding at
the end the following:
‘‘(f) 
COLLECTION
OF
RECREATIONAL
CATCH
DATA.—(1) The Secretary shall develop and implement a
program for the sharing of recreational catch data for all
federally managed fisheries through the use of information
gathered from State-licensed recreational fishermen.
‘‘(2) The Secretary shall conduct the program in con-
sultation with the principle State officials having marine
fishery management responsibility and expertise.
‘‘(3) The Secretary shall report to the Congress with-
in three years after the effective date of this subsection,
on—
‘‘(A) the progress made in developing such a
program; and
‘‘(B) whether the program has resulted in sig-
nificantly better data collection for the recreational
fishing sector.’’.
(b) REPORT.—Not later than 6 months after the date
of the enactment of this Act, the Secretary of Commerce
shall submit to the Congress a report describing the fol-
lowing:
(1) Economic data from United States proc-
essors that is necessary to conduct fishing commu-
nity and economic analysis determinations required
under chapter 6 of title 5, United States Code, pop-
ularly known as the Regulatory Flexibility Act.
(2) The reasons why such information is not
available through other sources such as tax returns,
the Bureau of Labor Statistics, and State labor de-
partments.
(3) The steps the Secretary would take under
section 402 of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 1881a)
to ensure the confidentiality of such information (es-
pecially proprietary information), if the information
were obtained by the Secretary.
SEC. 6. ECOSYSTEM-BASED MANAGEMENT.
(a) POLICY.—Section 2(c) (16 U.S.C. 1851(c)) by
striking ‘‘and’’ after the semicolon at the end of paragraph
(6), by striking the period at the end of paragraph (7)
and inserting ‘‘; and’’, and by adding at the end the fol-
lowing:
‘‘(8) to support and encourage efforts to under-
stand the interactions of species in the marine envi-
ronment and the development of ecosystem-based
approaches to fisheries conservation and manage-
ment that will lead to better stewardship and sus-
tainability of the Nation’s coastal fishery resources
and fishing communities.’’.
(b) AUTHORIZATION OF RESEARCH.—Section 404(c)
(16 U.S.C. 1881c(c)) is amended by adding at the end
the following:
‘‘(5) The interaction of species in the marine
environment, and the development of ecosystem-
based approaches to fishery conservation and man-
agement that will lead to better stewardship and
sustainability of coastal fishery resources.’’.
(c) DEFINITIONS AND CRITERIA FOR MANAGEMENT
PLANS.—
(1) IN GENERAL.—The Secretary shall, in con-
junction with the Councils—
(A) create a definition for ‘‘ecosystem’’ and
for ‘‘marine ecosystem’’; and
(B) establish criteria for the development
of ecosystem-based management plans by each
regional fishery management council based on
the recommendations of the Ecosystems Prin-
ciples Advisory Panel.
(2) REPORT.—The Secretary shall report to the
Congress within 2 years after the date of the enact-
ment of this Act on the criteria, including an identi-
fication and description of those criteria for which
sufficient data is not available.
(d) IDENTIFICATION OF MARINE ECOSYSTEMS; RE-
SEARCH PLAN.—
(1) IN GENERAL.—Within one year after the
date of the submission of the report under sub-
section (c)(2) to the Congress, the Secretary, in con-
junction with the regional science centers and the re-
gional fishery management councils, shall—
(A) identify specific marine ecosystems
within each region; and
(B) also develop and begin to implement
regional research plans to meet the information
deficit identified in the report.
(2) RESEARCH
PLANS.—The research plans
shall suggest reasonable timelines and cost estimates
for the collection of the required information.
(3) REPORTS.—The Secretary shall report to
the Congress annually on the progress of the re-
gional research plans.
(e) ECOSYSTEM-BASED
FISHERY
MANAGEMENT
PLAN PILOT PROGRAM.—
(1) IN GENERAL.—Upon the completion of de-
velopment of regional research plans under sub-
section (d)(1), the Secretary of Commerce shall es-
tablish and begin implementing a pilot program for
the management of one fishery on the east coast of
the United States and one fishery on the west coast
of the United States under an ecosystem-based fish-
ery management plan under the Magnuson-Stevens
Fishery Conservation and Management Act.
(2) CONSULTATION.—The Secretary shall de-
velop and implement ecosystem-based fishery man-
agement plans under this subsection in consultation
with the appropriate Regional Fishery Management
Councils.
(f) DISCRETIONARY PROVISION IN FISHERY MAN-
AGEMENT
PLANS.—Section 
303(b)(12) 
(16 
U.S.C.
1853(b)(12)) is amended by inserting before the period
the following: ‘‘or for the health or stability of the marine
ecosystem’’.
SEC. 7. OBSERVERS.
(a) IN GENERAL.—Not later than one year after the
date of the enactment of this Act, the Secretary shall re-
port to the Congress on the needs for a national observer
program.
(b) RECOMMENDATIONS.—The report shall make rec-
ommendations on observation options, including electronic
data collection technologies and on-board observers.
(c) The Secretary, in the report, shall include the fol-
lowing:
(1) A determination of whether the data collec-
tion needs are for management or enforcement pur-
poses.
(2) A statement of the level of observer cov-
erage necessary in various types of fisheries to pro-
vide statistically reliable information.
(3) Cost estimates for various levels of observer
coverage.
(4) Options for the funding of observer cov-
erage.
(5) The types of vessels and fisheries for which
observer coverage cannot be required due to safety
concerns.
(6) Recommendations for the use of the data
gathered by the observing systems.
(7) Recommendations for the confidentiality of
proprietary information collected through the pro-
gram.
SEC. 8. OVERFISHING.
(a) CLARIFICATION OF DEFINITION.—Section 3(29)
(16 U.S.C. 1802(29)) is amended to read as follows:
‘‘(29)(A) The term ‘overfished’ means, with re-
spect to a stock of fish, that the stock is of a size
that is below the natural range of fluctuation associ-
ated with the production of maximum sustainable
yield.
‘‘(B) The term ‘overfishing’ means a rate or
level of fishing mortality that jeopardizes the capac-
ity of a fishery to produce the maximum sustainable
yield on a continuing basis.’’.
(b) 
DISTINGUISHING
IN
REPORTS.—Section
304(e)(1) (16 U.S.C. 1854(e)(1)) is amended by inserting
after paragraph (1) the following: ‘‘The report shall distin-
guish between fisheries that are overfished (or approach-
ing that condition) as a result of fishing and fisheries that
are overfished (or approaching that condition) as a result
of factors other than fishing. The report shall state, for
each fishery identified as overfished or approaching that
condition, whether the fishery is the target of directed
fishing.’’.
SEC. 9. BYCATCH.
(a) DEFINITION.—Section 3(2) (16 U.S.C. 1802(2))
is amended in the first sentence by inserting ‘‘and
seabirds’’ after ‘‘regulatory discards’’.
(b) 
REPORTING
METHODOLOGY.—Section
303(a)(11) is amended—
(1) by striking ‘‘establish a standardized’’ and
inserting ‘‘within one year after the date of the en-
actment of the Magnuson-Stevens Act Amendments
of 2002, establish and begin implementing a stand-
ardized’’; and
(2) by adding at the end the following:
‘‘except that if such a methodology cannot be estab-
lished or implemented within such one-year period,
the Council or the Secretary shall publish a report
explaining the reasons why, and the Secretary shall
take appropriate action to address those reasons;’’.
(c) CHARITABLE DONATION OF BYCATCH.—Section
303(b) (16 U.S.C. 1853(b)) is amended by striking ‘‘and’’
after the semicolon at the end of paragraph (11), by strik-
ing the period at the end of paragraph (12) and inserting
‘‘; and’’, and by adding at the end the following:
‘‘(13) allow the retention and donation for char-
itable purposes of all dead bycatch that cannot oth-
erwise be avoided under terms that ensure, through
the use of onboard fishery observers or other means,
that such retention and donation do not allow the
evasion of vessel trip limits, total allowable catch lev-
els, or other conservation and management meas-
ures.’’.
(d) BYCATCH REDUCTION GEAR DEVELOPMENT.—
(1) IN GENERAL.—Title IV (1 U.S.C. 1881 et
seq.) is amended by adding at the end the following:
‘‘SEC. 408. GEAR DEVELOPMENT.
‘‘(a) IDENTIFICATION OF FISHERIES WITH SIGNIFI-
CANT BYCATCH PROBLEMS.—(1) The Secretary, in con-
junction with the Councils, shall identify and publish in
the Federal Register a list of fisheries with significant by-
catch problems, as determined under criteria developed by
the Secretary.
‘‘(2) The list shall contain, for each fishery identified,
information on—
‘‘(A) the number of participants in the fishery;
‘‘(B) the types of gears used in the fishery;
‘‘(C) the bycatch species;
‘‘(D) the amount of bycatch, and the percent-
age of total catch that is bycatch; and
‘‘(E) any other relevant information.
‘‘(3) The Secretary shall solicit comments on each list
published under this subsection.
‘‘(b) IDENTIFICATION OF FISHERIES WITH MOST
URGENT BYCATCH PROBLEMS.—The Secretary shall—
‘‘(1) identify those fisheries included in a list
under paragraph (1) that have the most urgent by-
catch problems, based on comments received regard-
ing the list; and
‘‘(2) work in conjunction with the Councils and
fishing industry participants to develop new fishing
gear, or modifications to existing fishing gear, that
will help minimize bycatch to the extent practicable.
‘‘(c) GRANT AUTHORITY.—The Secretary shall, sub-
ject to the availability of appropriations, make grants for
the development of fishing gear and modifications to exist-
ing fishing gear that will help—
‘‘(1) minimize bycatch; and
‘‘(2) minimize adverse fishing gear impacts on
habitat areas of particular concern.
‘‘(d) REPORT.—The Secretary shall report to the
Congress annually on—
‘‘(1) the amount expended to implement this
section in the preceding year;
‘‘(2) developments in gear technology achieved
under this section;
‘‘(3) the reductions in bycatch associated with
implementation of this section; and
‘‘(4) any other relevant information.
‘‘(e) AUTHORIZATION
OF
APPROPRIATIONS.—To
carry out this section there is authorized to be appro-
priated to the Secretary $10,000,000 for each of fiscal
years 2003 through 2007.’’.
(2) CLERICAL AMENDMENT.—The table of con-
tents in the first section is amended by add at the
end of the items relating to title IV the following:
‘‘Sec. 408. Gear development.’’.
SEC. 10. FISH HABITAT RESEARCH AND PROTECTION.
(a) PRIORITY RESEARCH.—Section 404 (16 U.S.C.
1881c) is amended by adding at the end the following:
‘‘(e) PRIORITY FOR RESEARCH REGARDING OVER-
FISHED FISHERIES.—In carrying out or funding fisheries
research under this and other laws regarding essential fish
habitat, the Secretary shall give priority to research to
identify such habitat for fisheries that are overfished or
approaching an overfished condition.’’.
(b) REQUIRED PROVISION
IN FISHERY MANAGE-
MENT PLANS.—Section 303(a)(7) (16 U.S.C. 1853(a)(7))
is amended to read as follows:
‘‘(7)(A) describe and identify essential fish
habitat for the fishery based on the guidelines estab-
lished by the Secretary under section 305(b)(1)(A);
‘‘(B) minimize to the extent practicable adverse
effects on such habitat caused by fishing for those
fisheries identified by the Council as having available
information on the growth, reproduction, or survival
rates within habitats or production rates by habitat,
or for those fisheries that the Council determines the
specific fishing activity effects on the essential fish
habitat jeopardize the ability of the fishery to
produce maximum sustained yield on a continuing
basis;
‘‘(C) minimize to the extent practicable adverse
effects on habitat areas of particular concern caused
by fishing; and
‘‘(D) identify other actions to encourage the
conservation and enhancement of such habitat;’’.
(c) DISCRETIONARY PROVISION IN FISHERY MAN-
AGEMENT PLANS.—Section 303(b) (16 U.S.C. 1853(b))
is amended by striking ‘‘and’’ after the semicolon at the
end of paragraph (11), by striking the period at the end
of paragraph (12) and inserting a semicolon, and by add-
ing at the end the following:
‘‘(13) minimize to the extent practicable ad-
verse effects caused by fishing, on essential fish
habitat described and identified under section
303(a)(7)(A); and’’.
(d) HABITAT AREA OF PARTICULAR CONCERN.—
Section 3 (16 U.S.C. 1802) is amended by adding at the
end the following:
‘‘(46) The term ‘habitat area of particular con-
cern’ means any discrete habitat area that is essen-
tial fish habitat and that—
‘‘(A) provides important ecological func-
tions;
‘‘(B) is sensitive to human-induced envi-
ronmental degradation; or
‘‘(C) is a rare habitat type.’’.
SEC. 11. DEMONSTRATION PROGRAM FOR OYSTER SANC-
TUARIES AND RESERVES.
(a) IN GENERAL.—The Secretary of Commerce,
through the National Oceanic and Atmospheric Adminis-
tration Chesapeake Bay Office, shall develop a program
for the design, construction, and placement of oyster sanc-
tuaries or reserves consistent with the agreement known
as the Chesapeake 2000 Agreement. The program shall
be developed in conjunction with the Corps of Engineers,
the Coast Guard, the Environmental Protection Agency,
the State of Maryland, the Commonwealth of Virginia, the
Oyster Recovery Partnership, the Chesapeake Bay Foun-
dation, the Oyster Heritage Foundation, local commercial
and recreational fishing organizations, the Port of Balti-
more, the University of Maryland, the Virginia Institute
of Marine Sciences, and other users of the waters of the
Chesapeake Bay, as appropriate.
(b) ARTIFICIAL STRUCTURES OR REEFS.—The pro-
gram shall include the design, construction, and placement
of artificial structures or reefs to act as beds for oyster
production. The placement of these structures and reefs
should be designed to maximize the production of oysters
while minimizing conflicts with existing uses such as fish-
ing or navigation. The structures and reefs shall be placed
in areas which will not be hazards to navigation. The Sec-
retary shall work with interested parties to ensure that
all sites are adequately marked on navigation charts as
appropriate.
(c) RESEARCH PLAN.—The Secretary shall develop
a research plan for the placement of artificial structures
and reefs under the program, including measurable goals
and a monitoring program to determine the effectiveness
of the structures and reefs in recovering native oyster pop-
ulations.
(d) NO FISHING REGULATIONS.—The Secretary shall
recommend State regulations prohibiting fishing in the
waters surrounding artificial structures or reefs placed
under this section as necessary to ensure the reproduction
of oysters on the structures and reefs. The restrictions
may be seasonal in nature, and shall not apply in any area
that is located more than 100 meters from such a struc-
ture or reef.
(e) RESTORATION OF NATIVE OYSTERS.—The pro-
gram shall use only native oyster species.
(f) REPORT.—The Secretary of Commerce shall sub-
mit to the Congress annual reports on the program under
this section.
(g) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN
GENERAL.—To carry out this section
there is authorized to be appropriated to the Sec-
retary $5,000,000 for each of fiscal years 2004
through 2009.
(2) LIMITATION.—Not more than 5 percent of
amounts appropriated under this section may be
available for administrative expenses.
SEC. 12. 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 frame-
work relevant to the fishery and fishing
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 indi-
vidual quotas (as that term is defined in sub-
section (d)), the system complies with sub-
section (d).’’.
(b) REQUIREMENTS.—Section 303(d) (16 U.S.C.
1853(d)) is amended—
(1) by redesignating paragraphs (2), (3), (4),
and (5) in order as paragraphs (11), (12), (13), and
(14);
(2) in paragraph (12)(B), as so redesignated,
by inserting ‘‘, including as a result of a violation of
this Act or any regulation prescribed under this
Act’’ before the semicolon;
(3) by adding at the end the following:
‘‘(15) 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 percent-
age of the total allowable catch for the fishery.’’; and
(4) by striking so much as precedes paragraph
(11), as so designated, and inserting the following:
‘‘(d) SPECIAL PROVISIONS FOR INDIVIDUAL QUOTA
SYSTEMS.—(1) A fishery management plan for a fishery
that is managed under a limited access system authorized
by subsection (b)(6) may establish an individual quota sys-
tem for the fishery in accordance with this subsection.
‘‘(2) A fishery management plan that establishes 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 include provisions that establish pro-
cedures 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;
‘‘(C) 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 fishing communities;
‘‘(ii) ensure adequate enforcement of the
system, including the use of observers where
appropriate; and
‘‘(iii) provide for monitoring the temporary
or permanent transfer of individual quotas
under the system;
‘‘(D) shall include provisions that prevent any
person from acquiring an excessive share of indi-
vidual quotas issued for a fishery; and
‘‘(E) shall include measurable conservation
goals.
‘‘(3) An individual quota issued under an individual
quota system established by a fishery management plan
may be received, held, or transferred in accordance with
regulations prescribed by the Secretary under this Act.
‘‘(4)(A) Except as otherwise provided in this para-
graph, any fishery management plan that establishes an
individual quota system for a fishery may authorize indi-
vidual quotas to be held by or issued under the system
to fishing vessel owners, fishermen, crew members, fishing
communities, 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 individual quota is issued.
‘‘(D)(i) A fishing community may not hold individual
quotas under an individual quota system established under
this subsection for a fishery that authorize harvest of more
than the lesser of—
‘‘(I) 1 percent of the total authorized harvest in
the fishery; or
‘‘(i) must include measurable conservation
goals; and
‘‘(ii) to monitor achievement of such goals, may
require greater observer coverage or electronic data
collection technology on any vessel fishing under an
individual quota issued under the system.
‘‘(B) Not later than 5 years after the date of the es-
tablishment of an individual quota system for a fishery
under this section by a Council or the Secretary, and every
5 years thereafter, the Council or Secretary, respectively,
shall review the effectiveness of the system in achieving
the conservation goals required under this paragraph.
‘‘(8)(A) The Secretary or a Council—
‘‘(i) may not develop a proposal to establish an
individual quota system for a fishery, unless develop-
ment of the proposal has been approved by a ref-
erendum conducted in accordance with this para-
graph; and
‘‘(ii) may not issue a proposed fishery manage-
ment plan or amendment to such a plan to establish
such a system unless the proposed plan or amend-
ment, respectively, has been approved by a ref-
erendum conducted in accordance with this para-
graph.
‘‘(B) The Secretary, at the request of a Council, shall
conduct the referenda required by subparagraph (A). Each
referendum with respect to a fishery shall be decided by
a 60-percent majority of the votes cast by persons who
are determined by the Council, based on guidelines devel-
oped by the Secretary, to be eligible to vote in the ref-
erendum.
‘‘(C) The Secretary shall develop guidelines to deter-
mine procedures and voting eligibility requirements for
referenda and to conduct such referenda in a fair and eq-
uitable manner.
‘‘(9) Any individual quota system established under
section 303(b)(6) after the date of enactment of the Mag-
nuson-Stevens Act Amendments of 2002, and any indi-
vidual quota issued under such a system, shall not apply
after the end of the 10-year period beginning on the date
the system is established, or after the end of any 10-year
period thereafter, unless the Council has reviewed and
taken affirmative action to continue the system before the
end of each such 10-year period.’’.
(c) FEES.—Section 304(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 Sec-
retary shall collect from a person that holds or transfers
an individual quota issued under a limited access system
established under section 303(b)(6) 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 Magnuson-Stevens Act Amend-
ments of 2002, an initial allocation fee in an
amount, determined by the Secretary, equal to 1
percent of the ex-vessel value of fish authorized in
one year under an individual quota, that shall be col-
lected 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 3 percent of the ex-
vessel value of fish authorized each year under an
individual quota share, that 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 ex-vessel
value of fish authorized each year under an indi-
vidual quota share, that 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
related to fishery management and enforcement.
‘‘(D) The Secretary, in consultation with the Coun-
cils, shall promulgate regulations prescribing the method
of determining under this paragraph the ex-vessel value
of fish authorized under an individual quota share, the
amount of fees, and the method of collecting fees.
‘‘(E) Fees collected under this paragraph from hold-
ers of individual quotas 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.’’.
(d) APPROVAL OF FISHERY MANAGEMENT PLANS
ESTABLISHING INDIVIDUAL QUOTA SYSTEMS.—Section
304 (16 U.S.C. 1854) is amended by adding at the end
the following:
‘‘(i) ACTION ON LIMITED ACCESS SYSTEMS.—(1) In
addition to the other requirements of this Act, after the
date of the enactment of the Magnuson-Stevens Act
Amendments of 2002 the Secretary may not approve a
fishery management plan that establishes a limited access
system that provides for the allocation of individual quotas
(in this subsection referred to as an ‘individual quota sys-
tem’) unless the plan complies with section 303(d).
‘‘(2) The Secretary shall issue regulations that estab-
lish requirements for establishing an individual quota sys-
tem. 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(a)
and 303(d), and require the collection of fees in ac-
cordance with subsection (d)(3) of this section;
‘‘(C) provide for appropriate penalties for viola-
tions of individual quotas systems, including the sus-
pension or revocation 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.’’.
(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-Stevens Fishery
Conservation and Management Act, before the effec-
tive date of regulations issued by the Secretary
under section 304(i) of that Act, as added by sub-
section (d) of this section.
(2) COVERED
QUOTA
SYSTEM
PLAN
DE-
FINED.—In this subsection, the term ‘‘covered quota
system plan’’ means a fishery management plan or
amendment to a fishery management plan, that—
(A) proposes establishment of an individual
quota system (as that term is used in section
303(d) of the Magnuson-Stevens Fishery Con-
servation and Management Act, as amended by
this section); and