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                does not possess adequate documentation and, 
                consequently elects to have the Secretary calculate a 
                default landing payment.
            (4) Documentation.--Documentation under paragraph (3)(C) 
        shall be in the form of trip tickets (or other landing 
        documentation issued by the first ex-vessel fish buyer or 
        buyers) for the eligible vessel that clearly establishes on 
        their face the identity and location of the first fish buyer, 
        the vessel from whom the fish was bought, the date the fish was 
        bought, how many pounds of each species of fish was bought, and 
        how much per pound the landing vessel was paid for each species 
        of fish bought (no other documentation shall be acceptable)
            (5) Calculation of amount.--If the permit holder submits 
        adequate documentation the Secretary shall use it to calculate 
        the landing payment. If the permit holder elects to have the 
        Secretary calculate a default landing payment (or submits 
        inadequate documentation), the Secretary shall calculate a 
        default payment by applying average ex-vessel prices (where 
        possible, for each month of landing and state or area of 
        landing as maintained in the National Marine Fisheries 
        Service's databases) to each pound of species of fish landed by 
        the permit holder's eligible vessel during the basis year that 
        the permit holder chooses.
    (f) Compensation Offer.--No later than the 135th calendar day after 
the date of enactment of this Act, the Secretary shall, by certified 
mail return receipt requested, addressed to each eligible permit holder 
at its record address, offer each eligible permit holder compensation 
for an amount determined in accordance with this section. The 
Secretary's offer shall be final and not subject to negotiation or 
counteroffer.
    (g) Compensation Offer Acceptance.--
            (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.
            (2) Requirements.--The acceptance--
                    (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;
                    (B) shall constitute the eligible 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
                    (C) shall be accompanied by all commercial fishing 
                permits and licenses held by the eligible permit holder 
                that are or were applicable to the eligible vessel.
            (3) Form of delivery.--
                    (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.
                    (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.
    (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.
    (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.
    (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.
    (k) Blended Funding Source.--All funds appropriated under 
subsection (j) shall be available for the payments authorized under 
this section and shall be applied so as to ensure that 40 percent of 
the cost of such payments is derived from the direct loan authorized 
under this section and 60 percent of the cost of such payments is 
derived from funds appropriated for payment under this section. If any 
amounts appropriated remain unexpended and unobligated after all 
payments are made under this section, the remainder of such amounts 
shall be availabe for obligation and expenditure for the research 
program established under section 11.

SEC. 8. RESTRICTIONS ON VESSELS.

    (a) In General.--
            (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).
            (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.
    (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''.
    (c) Transfer to Foreign Ownership or Registry Prohibited.--
            (1) Prohibited transfer.--No person may--
                    (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
                    (B) place that vessel under foreign registry or 
                operate that vessel under the authority of a foreign 
                country.
            (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.
    (d) Penalties.--
            (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.
            (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--
                    (A)(i) the vessel is placed under foreign registry 
                or operated under the authority of a foreign country in 
                violation of this section;
                    (ii) a person knowingly charters, sells, or 
                transfers a vessel, or interest or control in that 
                vessel, in violation of this section;
                    (B) the vessel is used for commercial fishing in 
                violation of this section
                    (C) the permit holder submits false documentation 
                for the landing payment under section 7.
            (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.
    (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.

SEC. 9. REPAYMENT OF DIRECT LOAN.

    (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).
    (b) Commercial Share.--
            (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.
            (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--
                    (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;
                    (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
                    (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:
                            (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.
                            (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.
                            (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.
                            (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.
            (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.
            (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.
            (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.
            (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.
            (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.
    (c) Recreational Share.--
            (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.
            (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).
            (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:
                    (A) South Carolina--9.4 percent;
                    (B) Georgia--4.3 percent;
                    (C) Florida--40.0 percent;
                    (D) Alabama--3.2 percent;
                    (E) Mississippi--2.6 percent;
                    (F) Louisiana--14.6 percent; and
                    (G) Texas--19.9 percent.
            (4) Fishery conservation permits.--
                    (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.
                    (B) Means of sale or issuance.--The Secretary--
                            (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
                            (ii) may establish procedures for such 
                        persons to account for and forward the proceeds 
                        of sale to the Secretary.
                    (C) Exception.--The Secretary may not issue such 
                permits after the repayment of the recreational share 
                of the loan obligation.
                    (D) Vessels registered in affected states.--Vessels 

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