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The Secretary's offer shall be final and not subject to negotiation or 
counteroffer.</DELETED>
<DELETED>    (g) Compensation Offer Acceptance.--</DELETED>
        <DELETED>    (1) In general.--Each eligible permit holder who 
        desires to be compensated in accordance with this Act must 
        accept the Secretary's compensation offer no later than the 
        165th calendar day after the date of enactment of this 
        Act.</DELETED>
        <DELETED>    (2) Requirements.--The acceptance--</DELETED>
                <DELETED>    (A) must be in writing signed by the 
                permit holder or permit holder's duly authorized 
                representative and delivered to the Chief, Financial 
                Services Division, National Marine Fisheries Service, 
                1315 East-West Highway, Silver Spring, MD 20910-3282, 
                and include direct wire transfer 
                instructions;</DELETED>
                <DELETED>    (B) shall constitute the permit holder's 
                irrevocable consent for all other restrictions that 
                this Act permanently requires with respect to the 
                eligible vessel and all such restrictions shall 
                immediately be in effect; and</DELETED>
                <DELETED>    (C) shall be accompanied by all commercial 
                fishing permits and licenses held by the permit holder 
                that are applicable to the eligible vessel.</DELETED>
        <DELETED>    (3) Form of delivery.--</DELETED>
                <DELETED>    (A) If the acceptance is mailed, it must 
                be mailed by certified mail return receipt requested. 
                The Secretary shall consider the date of acceptance to 
                be the date on which it was mailed.</DELETED>
                <DELETED>    (B) If the acceptance is delivered by any 
                other means, the Secretary shall consider the date of 
                acceptance to be the date on which the Secretary first 
                received the acceptance. The Secretary's determinations 
                regarding the timeliness of the acceptance shall be 
                final.</DELETED>
<DELETED>    (h) Compensation Payment.--No later than the 195th 
calendar day after the date of enactment of this Act, the Secretary 
shall, in accordance with this section, pay compensation in full to 
each permit holder whose acceptance of the Secretary's offer was 
timely.</DELETED>
<DELETED>    (i) Federal Loan.--Under the authority of sections 1111 
and 1112 of title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1279f and 1279g), the Secretary shall provide up to $10,000,000 through 
a direct loan obligation for any payments authorized under this section 
that are not fully paid for by funds appropriated under subsection (j) 
of this section. For purposes of such sections 1111 and 1112, these 
payments shall be treated as payments under a fishing capacity 
reduction program established under section 312 of the Magnuson-Stevens 
Act (16 U.S.C. 1861a). Notwithstanding subsection (b)(4) of such 
section 1111, the debt obligation under this subsection shall have a 
maturity of 30 years.</DELETED>
<DELETED>    (j) Authorization of Appropriations.--There shall be 
authorized to be appropriated $100,000 for the costs required by the 
Federal Credit Reform Act for the $10,000,000 direct loan authorized 
under this section and $15,000,000 for the balance of the compensation 
payments authorized under this Act.</DELETED>

<DELETED>SEC. 8. RESTRICTIONS ON VESSELS.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) All commercial fishing permits or licenses 
        held by an eligible permit holder accepting compensation under 
        section 7 shall be revoked upon receipt by the Secretary of the 
        letter of acceptance under section 7(g).</DELETED>
        <DELETED>    (2) For each eligible vessel for which an eligible 
        permit holder whose commercial fishing permits and licenses 
        have been revoked and who accepted a landing payment, such 
        vessel shall never again be used by any person anywhere in the 
        world (regardless of the national status of such person) for 
        commercial fishing.</DELETED>
<DELETED>    (b) Ineligibility for Fisheries Endorsement.--Section 
12108(d) of title 46, United States Code, is amended by inserting ``, 
or a vessel whose commercial fishing permits and licenses have been 
revoked under section 8(a)(2) of the Atlantic Highly Migratory Species 
Conservation Act of 1999,'' before ``is not eligible''.</DELETED>
<DELETED>    (c) Transfer to Foreign Ownership or Registry 
Prohibited.--</DELETED>
        <DELETED>    (1) Prohibited transfer.--No person may--
        </DELETED>
                <DELETED>    (A) sell, lease, charter, deliver, or in 
                any manner transfer, or agree to sell, lease, charter, 
                deliver, or in any manner transfer, to a person not a 
                citizen of the United States, any interest in or 
                control of a vessel whose commercial fishing permits 
                and licenses have been revoked; or</DELETED>
                <DELETED>    (B) place that vessel under foreign 
                registry or operate that vessel under the authority of 
                a foreign country.</DELETED>
        <DELETED>    (2) Void effect.--Any charter, sale, or transfer 
        of a vessel, or interest in or control of that vessel, in 
        violation of this subsection is void.</DELETED>
<DELETED>    (d) Penalties.--</DELETED>
        <DELETED>    (1) Criminal penalty.--Any person that knowingly 
        charters, sells, or transfers a vessel (or interest in or 
        control of that vessel) in violation of this section, or 
        knowingly uses that vessel for commercial fishing in violation 
        of this section, or knowingly submits false documentation for 
        the landing payment under section 7 shall be fined under title 
        18, United States Code, imprisoned for not more than 5 years, 
        or both.</DELETED>
        <DELETED>    (2) Forfeiture.--A vessel (including its fishing 
        gear, furniture, appurtenances, stores, and cargo) may be 
        seized by, and forfeited to, the United States Government if--
        </DELETED>
                <DELETED>    (A)(i) the vessel is placed under foreign 
                registry or operated under the authority of a foreign 
                country in violation of this section;</DELETED>
                <DELETED>    (ii) a person knowingly charters, sells, 
                or transfers a vessel, or interest or control in that 
                vessel, in violation of this section;</DELETED>
                <DELETED>    (B) the vessel is used for commercial 
                fishing in violation of this section</DELETED>
                <DELETED>    (C) the permit holder submits false 
                documentation for the landing payment under section 
                7.</DELETED>
        <DELETED>    (3) Civil penalty.--A person that charters, sells, 
        or transfers a vessel (or an interest in or control of a 
        vessel) in violation of this section, uses a vessel for 
        commercial fishing in violation of this section, or submits 
        false documentation for the landing payment under section 7 is 
        liable to the United States Government for a civil penalty of 
        not more than $10,000 for each violation.</DELETED>
<DELETED>    (e) Vessel Identification System.--The Secretary of 
Transportation shall ensure that, for each vessel whose commercial 
fishing permits and licenses have been revoked, information is recorded 
and maintained in the vessel identification system established under 
chapter 125 of title 46, United States Code, stating that the vessel is 
forbidden under this Act from engaging in commercial fishing anywhere 
in the world, that the vessel is not eligible for any commercial 
fishing permit or license (regardless of whether the permit or license 
is issued by the Federal Government, or a State government or political 
subdivision thereof), and that use of the vessel in any commercial 
fishing operation may result in Federal civil and criminal penalties 
and forfeiture of the vessel and its cargo and equipment.</DELETED>

<DELETED>SEC. 9. REPAYMENT OF DIRECT LOAN.</DELETED>

<DELETED>    (a) In General.--There is established a fishery 
conservation fee system, to be administered by the Secretary, for 
repayment of the direct loan made under section 7(f), with the 
commercial share to be repaid under subsection (b) of this section and 
the recreational share to be repaid under subsection (c) of this 
section. Fees under this section are established notwithstanding the 
requirements of section 304 or 312 of the Magnuson-Stevens Act (16 
U.S.C. 1854 and 1861a).</DELETED>
<DELETED>    (b) Commercial Share.--</DELETED>
        <DELETED>    (1) Description.--The commercial share of the 
        fishery conservation fee system shall be 50 percent of the 
        original principal amount of the loan plus all interest 
        accruing on that 50 percent of the principal amount.</DELETED>
        <DELETED>    (2) Method of payment.--The Secretary shall, for 
        the repayment of the commercial share of the loan obligation, 
        plus associated interest, establish a fee, which--</DELETED>
                <DELETED>    (A) shall be an amount determined by the 
                Secretary to be sufficient to amortize the commercial 
                share over the loan term of 30 years, not to exceed 
                five cents, for each pound of all Atlantic swordfish 
                sold by swordfish dealers;</DELETED>
                <DELETED>    (B) shall be collected beginning on the 
                365th day after the date of enactment of this Act and 
                continue without interruption, regardless of the loan's 
                maturity until such commercial share is fully paid; 
                and</DELETED>
                <DELETED>    (C) shall be deducted by the swordfish 
                dealer from all proceeds received from the sale by the 
                dealer of all Atlantic swordfish and accounted for and 
                forwarded by the dealer to the Secretary in the 
                following manner:</DELETED>
                        <DELETED>    (i) The fee for all proceeds 
                        received during each month shall be forwarded 
                        by not later than the 15th calendar day of each 
                        month immediately following the month for which 
                        the fees were collected and fee payments shall 
                        be late if not received at the lock box by the 
                        20th calendar day of each such immediately 
                        following month.</DELETED>
                        <DELETED>    (ii) All fees forwarded shall 
                        include a settlement sheet that establishes the 
                        total proceeds received during the previous 
                        month, the total pounds of all Atlantic 
                        swordfish sold upon which such receipts were 
                        based, and the total fee forwarded.</DELETED>
                        <DELETED>    (iii) All fees shall be forwarded 
                        to a lock box account that the Secretary shall 
                        designate by a letter to each swordfish dealer 
                        holding a swordfish dealer's permit at its 
                        record address.</DELETED>
                        <DELETED>    (iv) All fee matters shall be in 
                        accordance with such other conditions as the 
                        Secretary shall establish, and amend from time 
                        to time by a letter (but not by regulation or 
                        any other form of notice) sent to each 
                        swordfish dealer holding a swordfish dealer's 
                        permit at its record address.</DELETED>
        <DELETED>    (3) Duty of prompt notification.--The Secretary 
        shall immediately notify swordfish dealers and swordfish 
        limited access permit holders when the commercial share has 
        been fully repaid and the collection requirement terminates. 
        This shall be accomplished by the Secretary's letter sent to 
        each swordfish dealer, holding a swordfish dealer's permit and 
        each swordfish limited access permit holder at its record 
        address.</DELETED>
        <DELETED>    (4) Audit.--The Secretary may at reasonable times 
        and places conduct audits of swordfish dealer's books and 
        records to determine compliance with this section. Swordfish 
        dealers shall furnish such books and records as the Secretary 
        may reasonably require for the conduct of such 
        audits.</DELETED>
        <DELETED>    (5) Penalty interest on late fee payments.--
        Swordfish dealers shall pay penalty interest equal to one and 
        one-half percent the full amount of each late fee payment for 
        each month, or portion thereof, in which a late fee payment 
        remains unpaid.</DELETED>
        <DELETED>    (6) Enforcement.--The Secretary shall collect all 
        unpaid fees by such manner as the Secretary considers 
        appropriate, including bringing collection enforcement actions 
        at law and attaching and liquidating swordfish dealers' 
        assets.</DELETED>
        <DELETED>    (7) Continuing obligation.--Notwithstanding that 
        the commercial share of the loan is not paid in full by the 
        loan's maturity date, the fee shall continue without 
interruption until such time as the commercial share is paid in 
full.</DELETED>
<DELETED>    (c) Recreational Share.--</DELETED>
        <DELETED>    (1) Description.--The recreational share of the 
        fishery conservation fee system shall be 50 percent of the 
        original principal amount of the loan plus all interest 
        accruing on 50 percent of the principal amount.</DELETED>
        <DELETED>    (2) Methods of payment.--The recreational share of 
        the loan obligation, plus associated interest, shall be repaid 
        through payment by affected States under paragraph (3), and by 
        the sale of fishery conservation permits issued under paragraph 
        (4).</DELETED>
        <DELETED>    (3) Payment by affected state.--A vessel 
        registered in an affected State will not be required to 
        purchase a Federal fishery conservation permit if the State, no 
        later than the 240th calendar day after the date of enactment 
        of this Act, makes a binding, legally enforceable agreement 
        with the United States Government to pay fully, within 4 years 
        after the date of enactment of this Act, the State's 
        recreational share allocation, plus associated interest. The 
        allocations for each affected State shall not exceed 40 percent 
        for any affected States and will be based on the State's 
        percentage of the total length of coastline adjacent to any 
        area closed under section 6 and the total number of marine 
        anglers for all 7 States. Such allocations are as 
        follows:</DELETED>
                <DELETED>    (A) South Carolina--9.4 percent;</DELETED>
                <DELETED>    (B) Georgia--4.3 percent;</DELETED>
                <DELETED>    (C) Florida--40.0 percent;</DELETED>
                <DELETED>    (D) Alabama--3.2 percent;</DELETED>
                <DELETED>    (E) Mississippi--2.6 percent;</DELETED>
                <DELETED>    (F) Louisiana--14.6 percent; and</DELETED>
                <DELETED>    (G) Texas--19.9 percent.</DELETED>
        <DELETED>    (4) Fishery conservation permits.--</DELETED>
                <DELETED>    (A) Issuance and sale.--On or about one 
                year after the date of enactment of this Act and 
                thereafter until the recreational share is fully 
                repaid, the Secretary shall issue for $25 each an 
                annual fishery conservation permit to vessels over 18 
                feet in length wishing to engage in recreational 
                fishing for highly migratory species in any area closed 
                under section 6. For vessels registered in a State 
                electing to pay the recreational share, the Secretary 
                shall issue the permit free of charge.</DELETED>
                <DELETED>    (B) Means of sale or issuance.--The 
                Secretary--</DELETED>
                        <DELETED>    (i) may, to the extent 
                        practicable, authorize the permits to be issued 
                        or sold by a variety of persons, including 
                        state agencies, retail dealers, and through 
                        convenient means, including the Internet and 
                        toll-free telephone numbers; and</DELETED>
                        <DELETED>    (ii) may establish procedures for 
                        such persons to account for and forward the 
                        proceeds of sale to the Secretary.</DELETED>
                <DELETED>    (C) Exception.--The Secretary may not 
                issue such permits after the repayment of the 
                recreational share of the loan obligation.</DELETED>
                <DELETED>    (D) Vessels registered in affected 
                states.--Vessels registered in affected States agreeing 
                to pay the recreational share shall obtain a fishery 
                conservation permit from the Secretary or the affected 
                State where the vessel is registered.</DELETED>
        <DELETED>    (5) Prohibition.--After the 240th day after the 
        date of enactment of this Act until the recreational share is 
        fully repaid under this Act, no person may engage in 
        recreational fishing for highly migratory species in any closed 
        area from a vessel of 18 feet or more in length, unless the 
        vessel has been issued a valid fishery conservation permit. 
        Such permit must be retained on the vessel. It shall be a 
        rebuttable presumption that any 18 foot or larger recreational 
        vessel with gear aboard capable of catching HMS species shall 
        be presumed to be fishing for HMS species. Once the 
        recreational share has been fully repaid this prohibition shall 
        be null and void.</DELETED>
        <DELETED>    (6) Duty of prompt notification.--The Secretary 
        shall immediately notify the Coast Guard, the heads of the 
        agencies of the affected States that have responsibility for 
        marine fishery law enforcement, retail dealers and others who 

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