A bill to establish National Standards for Fishing Quota Systems.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fishing Quota Act of 2003''.

SEC. 2. FISHING QUOTA SYSTEMS.

    (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) present participation in the fishery;
                    ``(C) historical fishing practices in, and 
                dependence on, the fishery;
                    ``(D) the economics of the fishery;
                    ``(E) the capability of fishing vessels used in the 
                fishery to engage in other fisheries;
                    ``(F) the cultural and social framework relevant to 
                the fishery and any affected fishing communities;
                    ``(G) the fair and equitable distribution of a 
                public resource; and
                    ``(H) any other relevant considerations.'';
            (2) by striking subsection (d) and inserting the following:
    ``(d) Fishing Quota Systems.--
            ``(1) Establishment.--Any fishery management plan or 
        amendment that is prepared by any Council, or by the Secretary, 
        with respect to any fishery, may establish a fishing quota 
        system consistent with the provisions of subsection (b)(6).
            ``(2) In general.--The Councils and Secretary shall ensure 
        that any such fishing quota system submitted and approved after 
        September 30, 2002, complies with the requirements of this Act 
        and--
                    ``(A) shall prevent any person from acquiring an 
                excessive share of the fishing quotas issued, as 
                appropriate for the fishery, and establish any other 
                limits or measures necessary to prevent inequitable 
                concentration of quota share;
                    ``(B) shall provide for the fair and equitable 
                initial allocation of quota share and in such 
                allocation--
                            ``(i) shall take into account present and 
                        historic participation in the fishery;
                            ``(ii) shall consider allocating a portion 
                        of the annual harvest to entry-level fishermen, 
                        small vessel owners, skippers, crew members, 
                        and fishing communities; and
                            ``(iii) may allocate shares among 
                        categories of vessels or gear types;
                    ``(C) shall contain provisions for the regular 
                review and evaluation of the system, including 
                timetables and criteria for evaluating performance, and 
                actions to be taken for failure to meet the criteria;
                    ``(D) shall contain criteria that would govern 
                limitation, revocation, renewal, reallocation, or 
                reissuance of fishing quota, including:
                            ``(i) reallocation or reissuance of quota 
                        revoked pursuant to section 308 of this Act;
                            ``(ii) revocation and reissuance of fishing 
                        quota if the owner of the quota cease to 
                        substantially participate in the fishery; and
                            ``(iii) exceptions to revocation or 
                        limitation in cases of death, disablement, 
                        undue hardship, or in any case in which fishing 
                        is prohibited by the Secretary;
                    ``(E) shall provide a process for appeals of 
                decisions on--
                            ``(i) eligibility of a person to receive or 
                        bid for an allocation of quota shares; and
                            ``(ii) limitations, restrictions and 
                        revocations of quota held by a person;
                    ``(F) shall promote management measures to improve 
                the conservation and management of the fishery, 
                including reduction of bycatch;
                    ``(G) shall provide for effective enforcement, 
                monitoring, management of such system, including 
                adequate data collection and use of observers at least 
                at a level of coverage that should yield statistically 
                significant results;
                    ``(H) may provide for the sale, lease or transfer 
                of quota shares and limitations thereto;
                    ``(I) shall provide a mechanism, such as fees as 
                authorized by section 304(d)(2), including fees payable 
                on quota transfers to recover costs related to 
                administering and implementing the program, including 
                enforcement, management and data collection (including 
                adequate observer coverage), if the assessment of such 
                fees is proportional to the amount of quota held and 
                fished by each quota holder and if such fees are used 
                only for that fishing quota system;
                    ``(J) shall consider the use of community or area-
                based approaches and strategies in developing fishing 
                quota systems and consider other management measures, 
                including measures to facilitate formation of fishery 
                cooperative arrangements, taking into account proximity 
                to and dependence on the resource, contribution of 
                fishing to the social and economic status of the 
                community, and historic participation in the fishery; 
                and
                    ``(K) shall include procedures and requirements 
                necessary to carry out subparagraphs (A) through (J).
            ``(3) No creation of right, title, or interest.--A fishing 
        quota or other limited access system authorization--
                    ``(A) shall be considered a permit for the purposes 
                of sections 307, 308, and 309;
                    ``(B) may be revoked or limited at any time in 
                accordance with this Act, including for failure to 
                comply with the terms of the plan or if the system is 
                found to have jeopardized the sustainability of the 
                stock or the safety of fishermen;
                    ``(C) shall not confer any right of compensation to 
                the holder of such fishing quota or other such limited 
                access system authorization if it is revoked or 
                limited;
                    ``(D) shall not create, or be construed to create, 
                any right, title, or interest in or to any fish before 
                the fish is harvested; and
                    ``(E) shall be considered a grant of permission to 
                the holder of the fishing quota to engage in activities 
                permitted by the fishing quota system.
            ``(4) Eligibility.--Persons eligible to hold fishing quota 
        shares are persons who are United States citizens, or who are 
        United States nationals or permanent resident aliens qualified 
        by Federal law to participate in the fishery.
            ``(5) Duration.--Any fishing quota system established under 
        this section after the date of enactment of the Fishing Quota 
        Act of 2003 shall expire at the end of a 10-year period 
        beginning on the date the system is established, or at the end 
        of successive 10 year periods thereafter, unless extended by a 
        fishery management plan amendment in accordance with this Act, 
        for successive periods not to exceed 10 years.
            ``(6) Referendum procudures.--
                    ``(A) Except as provided in subparagraph (C) for 
                the Gulf of Mexico commercial red snapper fishery, a 
                Council may not submit, and the Secretary not approve 
                or implement a fishery management plan or amendment 
                that creates a fishing quota system, including a 
                secretarial plan, unless such a system, as ultimately 
                developed, has been approved by more than two-thirds of 
                those voting in a referendum among eligible permit 
                holders. If a fishing quota system fails to be approved 
                by the requisite number of those voting, it may be 
                revised and submitted for approval in a subsequent 
                referendum.
                    ``(B) The Secretary shall conduct the referendum 
                referred to in this paragraph, including notifying all 
                persons eligible to participate in the referendum and 
                making available to them information concerning the 
                schedule, procedures and eligibility requirements for 
                the referendum process and the proposed fishing quota 
                system. The Secretary shall within one year of 
                enactment of the Fishing Quota Act of 2003 publish 
                guidelines and procedures to determine procedures and 
                voting eligibility requirements for referenda and to 
                conduct such referenda in a fair and equitable manner.
                    ``(C) The provisions of section 407(c) shall apply 
                in lieu of this paragraph for any fishing quota system 
                for the Gulf of Mexico commercial red snapper fishery.
                    ``(D) Chapter 35 of title 44, United States Code, 
                (commonly known as the ``Paperwork Reduction Act'') 
                does not apply to the referenda conducted under this 
                paragraph.
            ``(7)(A) No provision of law shall be construed to limit 
        the authority of a Council to submit, or the Secretary to 
        approve, the termination or limitation, without compensation to 
        holders of any limited access system permits, of a fishery 
        management plan, plan amendment, or regulation that provides 
        for a limited access system, including an fishing quota system.
            ``(B) This subsection shall not apply to, or be construed 
        to prohibit a Council from submitting, or the Secretary from 
        approving and implementing, amendments to the North Pacific 
        halibut and sablefish, South Atlantic wreckfish, or Mid-
        Atlantic surf clam and ocean (including mahogany) quahog 
        individual fishing quota programs.
            ``(8)(A) A Council may submit, and the Secretary may 
        approve and implement, a program which reserves up to 25 
        percent of any fees collected from a fishery under section 
        304(d)(2) to be used, pursuant to section 1104A(a)(7) of the 
        Merchant Marine Act, 1936 (46 U.S.C. App. 1274(a)(7)), to issue 
        obligations that aid in financing the--
                    ``(i) purchase of fishing quotas in that fishery by 
                fishermen who fish from small vessels; and
                    ``(ii) first-time purchase of fishing quotas in 
                that fishery by entry level fishermen.
            ``(B) A Council making a submission under subparagraph (A) 
        shall recommend criteria, consistent with the provisions of 
        this Act, that a fisherman must meet to qualify for guarantees 
        under clauses (i) and (ii) of subparagraph (A) and the portion 
        of funds to be allocated for guarantees under each clause.''.
    (b) Independent Review.--Section 303 of the Magnuson-Stevens 
Fishery Conservation and Management Act (16 U.S.C. 1853) is further 
amended by adding at the end the following:
    ``(e)(1) Within 5 years after the date of enactment of the Fishing 
Quota Act of 2003, and every 5 years thereafter, the National Research 
Council shall provide an independent review of the effectiveness of 
fishing quota systems conducted in Federal fisheries.
    ``(2) The review shall be conducted by an independent panel of 
individuals who have knowledge and experience in fisheries conservation 
and management, in the implementation of fishing quota systems, or in 
the social or economic characteristics of fisheries. The National 
Research Council shall ensure that members of the panel are qualified 
for appointment, are not active quota share holders, and provide fair 
representation to interests affected by such programs.
    ``(3) The independent review of fishing quota systems shall 
include--
            ``(A) a determination of how fishing quota systems affect 
        fisheries management and contribute to improved management, 
        conservation (including bycatch reduction) and safety in the 
        fishery;
            ``(B) formal input in the form of testimony from quota 
        holders relative to the effectiveness of the fishing quota 
        system;
            ``(C) an evaluation of the social, economic and biological 
        consequences of the quota system, including the economic 
        effects of the system on fishing communities;
            ``(D) an evaluation of the costs of implementing, 
        monitoring and enforcing the systems and the methods used to 
        establish or allocate individual quota shares; and
            ``(E) recommendations to the Councils and the Secretary to 
        ensure that quota systems meet the requirements of this Act and 
        the goals of the plans, and recommendations to the Secretary 
        for any changes to regulations issued under section 304(i).
    ``(4) The Secretary shall submit the report to the Congress and any 
appropriate Councils within 60 days after the review is completed.''.
    (c) Action on Limited Access Systems.--Section 304 of the Magnuson-
Stevens Fishery Conservation and Management Act (16 U.S.C. 1854) is 
amended by adding at the end the following:
    ``(i) Action on Limited Access Systems.--Within 1 year after the 
date of enactment of the Fishing Quota Act of 2003, the Secretary shall 
issue regulations which establish requirements for establishing a 
fishing quota system. Nothing in this paragraph prohibits a Council or 
the Secretary from initiating development of a fishing quota system 
consistent with the provisions of this Act pending publication of the 
final regulations.''.
    (d) Definitions.--Section 3 of the Magnuson-Stevens Fishery 
Management and Conservation Act (16 U.S.C. 1802) is amended by--
            (1) adding at the end the following:
            ``(46) The term `United States Citizen' means an individual 
        who is a citizen of the United States or a corporation, 
        partnership, association, or other entity that qualifies to 
        document a fishing vessel as a vessel of the United States 
        under chapter 121 of title 46, United States Code.''; and
            (2) striking `` `individual fishing quota' '' in paragraph 
        (21) and inserting `` `fishing quota system' ''.
    (e) Conforming Amendments.--
            (1) The following provisions of that Act are amended by 
        striking ``individual fishing quota'' and inserting ``fishing 
        quota'':
                    (A) Section 304(c)(3) (16 U.S.C.1854(c)(3)).
                    (B) Section 304(d)(2)(A)(i) (16 
                U.S.C.1854(d)(2)(A)(i)).
                    (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) (16 U.S.C. 1855(h)(1)) is amended by 
        striking ``individual''.

SEC. 3. GULF OF MEXICO FISHING QUOTA SYSTEMS.

    Section 407(c) of the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1883) is amended by adding at the end the 
following:
            ``(3) The initial referendum described in paragraph (1) 
        shall be used to determine support for whether the sale, 
        transfer, or lease of quota shares shall be allowed.''.

Summary: Fishing Quota Act of 2003 - Amends the Magnuson-Stevens Fishery Conservation and Management Act to require the Regional Fishery Management Councils and the Secretary of Commerce (Secretary) or his designee, when developing a limited access system for fisheries to achieve optimum yield, to take into account: (1) the conservation requirements of this Act with respect to fisheries; and (2) the fair and equitable distribution of a public resource.

Authorizes the establishment of a fishing quota system in a fishery management plan or amendment prepared by any Regional Fishery Management Council or the Secretary.

Specifies fishing quota system: (1) requirements the Councils and Secretary must ensure that any proposal meet; (2) right, tittle, and interest scope and limitations; (3) eligibility requirements; (4) duration; and (5) referendum procedures. Prohibits approval or implementation by the Secretary of any fishery management plan (or amendment) unless it has been approved by more than two-thirds of those voting in a referendum among eligible permit holders.

Authorizes the Secretary to approve and implement a program submitted by a Council which reserves up to 25 percent of the fees collected from fisheries for costs related to the management and enforcement of fishing quota programs for issuance of obligations that aid in financing the: (1) purchase of fishing quotas by small vessel fishermen; and (2) first-time purchase of fishing quotas by entry level fisherman.

Requires the National Research Council to provide an independent review, every five years, of the effectiveness of fishing quota systems conducted in Federal fisheries.

Requires the Secretary to issue regulations which establish requirements for a fishing quota system.