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108th CONGRESS
1st Session
S. 1106
To establish National Standards for Fishing Quota Systems.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2003
Ms. Snowe (for herself and Mr. Kerry) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To establish National Standards for Fishing Quota Systems.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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.''.
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