[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2376 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2376

    To expedite relief provided under the Magnuson-Stevens Fishery 
 Conservation and Management Act for the commercial fishery failure in 
the Pacific Coast Groundfish Fishery, to improve fishery management and 
          enforcement in that fishery, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2001

    Mrs. Capps (for herself, Ms. Hooley of Oregon, Mr. DeFazio, Mr. 
Thompson of California, Mr. Farr of California, and Mr. Wu) introduced 
 the following bill; which was referred to the Committee on Resources, 
    and in addition to the Committees on Ways and Means, and Armed 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To expedite relief provided under the Magnuson-Stevens Fishery 
 Conservation and Management Act for the commercial fishery failure in 
the Pacific Coast Groundfish Fishery, to improve fishery management and 
          enforcement in that fishery, and for other purposes.

    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 ``Pacific Coast Groundfish Fishery 
Preservation Act''.

SEC. 2. PILOT PROJECT FOR CHARITABLE DONATION OF BYCATCH.

    (a) In General.--The Secretary of Commerce shall initiate a pilot 
project under which fishermen in a commercial fishery covered by the 
West Coast groundfish fishery are permitted to donate bycatch, or 
regulatory discards, of fish to charitable organizations rather than 
discard them. The pilot project shall incorporate a means, through the 
requirement of on-vessel observers or other safeguards, of ensuring 
that the opportunity to donate such fish does not encourage or permit 
the evasion of per-vessel trip limits, total allowable catch limits, or 
other fishery management plan measures.
    (b) Reports.--
            (1) Initiation.--The Secretary shall notify the Congress, 
        within 90 days after the date of enactment of this Act and 
        before the pilot project is implemented, of--
                    (A) the fishing season in which the pilot project 
                will be conducted; and
                    (B) the period during which the pilot project will 
                be conducted.
            (2) Follow-up.--Within 90 days after the pilot project 
        terminates the Secretary shall submit to the Congress a report 
        containing findings with respect to the pilot project and the 
        Secretary's analysis of the ramifications of the pilot project 
        based on those findings.

SEC. 3. REPORT ON DISASTER ASSISTANCE FOR PACIFIC COAST GROUNDFISH 
              FISHERY.

    The Secretary shall report to the Congress no later than 45 days 
after the date of enactment of this Act the action or actions taken 
under section 312(a) of the Magnuson-Stevens Fishery Conservation and 
Management Act (16 U.S.C. 1861a(a)) to provide disaster relief to 
fishing communities affected by the commercial fishery failure in the 
Pacific Coast groundfish fishery. The Secretary shall include in the 
report any recommendations the Secretary deems appropriate for 
additional legislation or changes in existing law that would enable the 
Department of Commerce to respond more expeditiously in the future to 
fisheries disasters resulting from commercial fishery failures.

SEC. 4. CAPACITY REDUCTION IN THE PACIFIC COAST GROUNDFISH FISHERY.

    (a) In General.--The Secretary of Commerce shall, after notice and 
an opportunity for public comment, adopt regulations to implement a 
fishing capacity reduction plan for the Pacific Coast Groundfish 
fishery under section 312(b) of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 U.S.C. 1861a(b)) that--
            (1) has been developed in consultation with affected 
        parties whose participation in the plan is required for its 
        successful implementation;
            (2) will obtain the maximum sustained reduction in fishing 
        capacity at the least cost through the use of a reverse auction 
        process in which vessels and permits are purchased;
            (3) will not expand the size or scope of the commercial 
        fishery failure in that fishery or into other fisheries or 
        other geographic regions;
            (4) except as otherwise specifically provided in this 
        section, meets the requirements of that section; and
            (5) incorporates the components described in subsection (c) 
        of this section.
    (b) Expedited Adoption of Plan.--In carrying out subsection (a), 
the Secretary--
            (1) shall publish notice in the Federal Register within 30 
        days after the date of enactment of this Act of implementation 
        of the fishing capacity reduction plan;
            (2) provide for public comment for a period of 60 days 
        after publication; and
            (3) adopt final regulations to implement the plan within 45 
        days after the close of the public comment period under 
        paragraph (2).
    (c) Plan Components.--The fishery capacity reduction plan shall--
            (1) provide for a significant reduction in the fishing 
        capacity in the Pacific Coast groundfish fisheries;
            (2) permanently revoke all State and Federal fishery 
        licenses, fishery permits, area and species endorsements, and 
        any other fishery privileges for West Coast groundfish, Pacific 
        pink shrimp, Dungeness crab, and Pacific salmon (troll permits 
        only) issued to a vessel or vessels (or to persons on the basis 
        of their operation or ownership of that vessel or vessels) for 
        which a Pacific Coast groundfish fisheries reduction permit is 
        issued under section 600.1011(b) of title 50, Code of Federal 
        Regulations;
            (3) ensure that the Secretary of Transportation is notified 
        of each vessel for which a reduction permit is surrendered and 
        revoked under the program, with a request that such Secretary 
        permanently revoke the fishery endorsement of each such vessel 
        and  refuse permission to transfer any such vessel to a foreign 
flag under subsection (f) of this section;
            (4) ensure that vessels removed from the Pacific Coast 
        groundfish fisheries under the program are made permanently 
        ineligible to participate in any fishery worldwide, and that 
        the owners of such vessels contractually agree that such 
        vessels will operate only under the United States flag or be 
        scrapped as a reduction vessel pursuant to section 600.1011(c) 
        of title 50, Code of Federal Regulations;
            (5) ensure that vessels removed from the Pacific Coast 
        groundfish fisheries, the owners of such vessels, and the 
        holders of fishery permits for such vessels forever relinquish 
        any claim associated with such vessel, permits, and any catch 
        history associated with such vessel or permits that could 
        qualify such vessel, vessel owner, or permit holder for any 
        present or future limited access system fishing permits in the 
        United States fisheries based on such vessel, permits, or catch 
        history; and
            (6) notwithstanding section 1111(b) of the Merchant Marine 
        Act, 1936 (46 U.S.C. App. 1279f(b)(4)), establish a repayment 
        period for the reduction loan of not less than 30 years.
    (d) Funding for Buyback of Vessels and Permits.--
            (1) In general.--There shall be available to the Secretary 
        to complete the purchase of vessels and permits under the 
        fishery capacity reduction plan the sum of $50,000,000, of 
        which--
                    (A) $25,000,000 shall be from amounts appropriated 
                to the Secretary for this purpose (the appropriation of 
                which is hereby authorized for fiscal year 2002, with 
                any amounts not expended in fiscal year 2002 to remain 
                available until expended); and
                    (B) $25,000,000 shall be from an industry fee 
                system established under subsection (e).
            (2) Advance of industry fee portion.--The industry fee 
        portion under paragraph (1)(B) for fiscal year 2002 and 
        thereafter shall be financed by a reduction loan under sections 
        1111 and 1112 of title XI of the Merchant Marine Act, 1936 (46 
        U.S.C. App. 1279f and 1279g).
    (e) Industry Fees.--
            (1) In general.--As part of the fishery capacity reduction 
        plan, the Secretary shall establish an industry fee system 
        under section 312(d) of the Magnuson-Stevens Fishery 
        Conservation and Management Act (16 U.S.C. 1861a(d)) to 
        generate revenue to repay the loan provided under subsection 
        (d)(2).
            (2) Allocation of fees.--The Secretary shall allocate the 
        fees payable under the industry fee system among--
                    (A) holders of Pacific Coast groundfish permits,
                    (B) holders of Washington, Oregon, and California 
                pink shrimp fishing permits,
                    (C) holders of Washington, Oregon, and California 
                salmon trolling permits, and
                    (D) holders of Washington, Oregon, and California 
                Dungeness crab fishing permits,
        so that the percentage of the revenue generated by the fee 
        system from holders of each kind of permit will correspond to 
        the percentage of the total amount paid under buyback program 
        for that kind of permit.
    (f) Duties of Secretary of Transportation.--
            (1) Revocation of endorsement.--The Secretary of 
        Transportation shall, upon notification and request by the 
        Secretary, for each vessel identified in such notification and 
        request--
                    (A) permanently revoke any fishery endorsement 
                issued to such vessel under section 12108 of title 46, 
                United States Code; and
                    (B) refuse to grant the approval required under 
                section 9(c)(2) of the Shipping Act, 1916 (46 U.S.C. 
                App. 808(c)(2)) for the placement of such vessel under 
                foreign registry or the operation of such vessel under 
                the authority of a foreign country.
            (2) Regulations.--The Secretary shall, after notice and 
        opportunity for public comment, adopt final regulations not 
        later than 6 months after the date of enactment of this Act, to 
        prohibit any vessel for which a reduction permit is surrendered 
        and revoked under the fishing capacity reduction program 
        required by this section from engaging in fishing activities on 
        the high seas or under the jurisdiction of any foreign country 
        while operating under the United States flag.
    (g) Regulatory Flexibility.--Any requirements of chapter 35 of 
title 44, United States Code, chapter 6 of title 5, United States Code, 
or any Executive order that would, in the opinion of the Secretary, 
prevent the Secretary from meeting the deadlines set forth in this 
section shall not apply to the fishing capacity reduction program or 
the promulgation of regulations to implement such program required by 
this section.

SEC. 5. COLLECTION OF INDUSTRY FEES.

    (a) In General.--The Secretary shall enter into an agreement with 
the States of California, Oregon, and Washington to collect program 
fees paid under the system established under section 4(e).
    (b) Withholding Fee From Purchase Price.--The fee for each vessel 
required to pay a program fee under that system shall be deducted by 
the first ex-vessel fish purchaser from the proceeds otherwise payable 
to the seller and forwarded to the appropriate State at the same time 
and in the same manner as other fees or taxes are forwarded to that 
State.
    (c) State To Collect and Forward Fees.--Upon receipt of program 
fees forwarded by fish purchasers under subsection (b), the State shall 
forward the fees to the Secretary in the manner provided for in the 
agreement established under subsection (a).
    (d) Fish-processing Vessels Treated as Purchasers.--A vessel 
which--
            (1) both harvests and processes fish; or
            (2) receives fish from a harvesting vessel and processes 
        that fish on board,
shall be considered to be the first ex-vessel fish purchaser with 
respect to the fish processed on the vessel and shall forward the 
appropriate fees to the appropriate State at the same time and in the 
same manner as other fees or taxes are forwarded to that State.

SEC. 6. AMENDMENT OF THE MERCHANT MARINE ACT, 1936, TO EXPAND PURPOSES 
              OF CAPITAL CONSTRUCTION FUND.

    (a) In General.--Section 607(a) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1177(a)) is amended by striking ``of this section.'' 
and inserting ``of this section. Any agreement entered into under this 
section may be modified for the purpose of encouraging the 
sustainability of the fisheries of the United States by making the 
termination and withdrawal of a capital construction fund a qualified 
withdrawal if done in exchange for the retirement of the related 
commercial fishing vessels and related commercial fishing permits.''.
    (b) New Qualified Withdrawals.--
            (1) Amendments to merchant marine act, 1936.--Section 
        607(f)(1) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
        1177(f)(1)) is amended--
                    (A) by striking ``for:'' and inserting 
                ``for--'';
                    (B) by striking ``vessel,'' in subparagraph (A) and 
                inserting ``vessel;'';
                    (C) by striking ``vessel, or'' in subparagraph (B) 
                and inserting ``vessel;'';
                    (D) by striking ``vessel.'' in subparagraph (C) and 
                inserting ``vessel;'';
                    (E) by inserting after subparagraph (C) the 
                following:
                    ``(D) the payment of an industry fee authorized by 
                the fishing capacity reduction program under section 
                312(b) of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1861a(b));
                    ``(E) in the case of any such person or shareholder 
                for whose benefit such fund was established or any 
                shareholder of such person, a rollover contribution 
                (within the meaning of section 408(d)(3) of the 
                Internal Revenue Code of 1986) to such person's or 
                shareholder's individual retirement plan (as defined in 
                section 7701(a)(37) of such Code); or
                    ``(F) the payment to a person or corporation 
                terminating a capital construction fund for whose 
                benefit the fund was established and retiring related 
                commercial fishing vessels and permits.''; and
            (F) by adding at the end the following:
    ``(3) The Secretary by regulation shall establish procedures to 
ensure that any person making a qualified withdrawal authorized under 
paragraph (1)(F) retires the related commercial use of fishing vessels 
and commercial fishery permits.''.
            (2) Amendments to internal revenue code of 1986.--Section 
        7518(e)(1) of the Internal Revenue Code of 1986 (relating to 
        purposes of qualified withdrawals) is amended--
                    (A) by striking ``for:'' and  inserting  ``for--'';
                    (B) by striking ``vessel, or'' in subparagraph (B) 
                and inserting ``vessel;'';
                    (C) by striking ``vessel.'' in subparagraph (C) and 
                inserting ``vessel;'';
                    (D) by inserting after subparagraph (C) the 
                following:
                    ``(D) the payment of an industry fee authorized by 
                the fishing capacity reduction program under section 
                312 of the Magnuson-Stevens Fishery Conservation and 
                Management Act (16 U.S.C. 1861a);
                    ``(E) in the case of any person or shareholder for 
                whose benefit such fund was established or any 
                shareholder of such person, a rollover contribution 
                (within the meaning of section 408(d)(3)) to such 
                person's or shareholder's individual retirement plan 
                (as defined in section 7701(a)(37)); or
                    ``(F) the payment to a person terminating a capital 
                construction fund for whose benefit the fund was 
                established and retiring related commercial fishing 
                vessels and permits.''; and
                    (E) by adding at the end the following:
            ``(3) Regulations.--The Secretary by regulation shall 
        establish procedures to ensure that any person making a 
        qualified withdrawal authorized by subparagraph (F) retires the 
        related commercial use of fishing vessels and commercial 
        fishery permits.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to withdrawals made after the date of enactment of this Act.
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