[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 637 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 637

 To amend the Magnuson-Stevens Fishery Conservation and Management Act 
 (16 U.S.C. 1801 et seq.) to authorize the establishment of individual 
                         fishery quota systems.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 28, 2001

 Ms. Snowe (for herself and Mr. McCain) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To amend the Magnuson-Stevens Fishery Conservation and Management Act 
 (16 U.S.C. 1801 et seq.) to authorize the establishment of individual 
                         fishery 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 ``IFQ Act of 2001''.

SEC. 2. INDIVIDUAL QUOTA PROGRAMS.

    (a) Authority To Establish Individual Quota Systems.--Section 303 
of the Magnuson-Stevens Fishery Conservation and Management Act (16 
U.S.C. 1853) is amended by adding at the end the following:
    ``(e) Special Provisions for Individual Quota Systems.--
            ``(1) Conditions.--A fishery management plan which 
        establishes an individual quota system for a fishery after 
        September 30, 2002--
                    ``(A) shall provide for administration of the 
                system by the Secretary in accordance with the terms of 
                the plan;
                    ``(B) shall not create, or be construed to create, 
                any right, title, or interest in or to any fish before 
                the fish is harvested;
                    ``(C) shall include provisions which establish 
                procedures and requirements for each Council having 
                authority over the fishery, for--
                            ``(i) reviewing and revising the terms of 
                        the plan that establish the system; and
                            ``(ii) renewing, reallocating, and 
                        reissuing individual quotas if determined 
                        appropriate by each Council;
                    ``(D) shall include provisions to--
                            ``(i) promote sustainable management of the 
                        fishery;
                            ``(ii) provide for fair and equitable 
                        allocation of individual quotas under the 
                        system;
                            ``(iii) minimize negative social and 
                        economic impacts of the system on local coastal 
                        communities;
                            ``(iv) ensure adequate enforcement of the 
                        system, including the use of observers where 
                        appropriate at a level of coverage that should 
                        yield statistically significant results; and
                            ``(v) take into account present 
                        participation and historical fishing practices, 
                        in the fishery; and
                    ``(E) include provisions that prevent any person or 
                entity from acquiring an excessive share of individual 
                quotas issued for a fishery.
            ``(2) Plan characteristics.--An individual quota issued 
        under an individual quota system established by a fishery 
        management plan--
                    ``(A) shall be considered a grant, to the holder of 
                the individual quota, of permission to engage in 
                activities permitted by the individual quota;
                    ``(B) may be revoked or limited at any time, in 
                accordance with the terms of the plan and regulations 
                issued by the Secretary or the Council having authority 
                over the fishery for which it is issued, if necessary 
                for the conservation and management of the fishery 
                (including as a result of a violation of this Act or 
                any regulation prescribed under this Act);
                    ``(C) if revoked or limited by the Secretary or a 
                Council, shall not confer any right of compensation to 
                the holder of the individual quota;
                    ``(D) may be received and held in accordance with 
                regulations prescribed by the Secretary under this Act;
                    ``(E) shall, except in the case of an individual 
                quota allocated under an individual quota system 
                established before the date of enactment of the IFQ Act 
                of 2001, expire not later than 5 years after the date 
                it is issued, in accordance with the terms of the 
                fishery management plan; and
                    ``(F) upon expiration under subparagraph (E), may 
                be renewed, reallocated, or reissued if determined 
appropriate by each Council having authority over the fishery.
            ``(3) Eligible holders.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any fishery management plan that 
                establishes an individual quota system for a fishery 
                may authorize individual quotas to be held by or issued 
                under the system to fishing vessel owners, fishermen, 
                and crew members.
                    ``(B) Non-citizens not eligible.--An individual who 
                is not a citizen of the United States may not hold an 
                individual quota issued under a fishery management 
                plan.
            ``(4) Permitted provisions.--Any fishery management plan 
        that establishes an individual quota system for a fishery may 
        include provisions that--
                    ``(A) allocate individual quotas under the system 
                among categories of vessels; and
                    ``(B) provide a portion of the annual harvest in 
                the fishery for entry-level fishermen, small vessel 
                owners, or crewmembers who do not hold or qualify for 
                individual quotas.
            ``(5) Termination or limitation.--
                    ``(A) Grounds.--An individual quota system 
                established for a fishery may be limited or terminated 
                at any time if necessary for the conservation and 
                management of the fishery, by--
                            ``(i) the Council which has authority over 
                        the fishery for which the system is 
                        established, through a fishery management plan 
                        or amendment; or
                            ``(ii) the Secretary, in the case of any 
                        individual quota system established by a 
                        fishery management plan developed by the 
                        Secretary.
                    ``(B) Effect on other authority.--This paragraph 
                does not diminish the authority of the Secretary under 
                any other provision of this Act.
            ``(6) Required provisions; reallocations.--Any individual 
        quota system established for a fishery after the date of 
        enactment of the IFQ Act of 2001--
                    ``(A) shall not allow individual quota shares under 
                the system to be sold, transferred, or leased;
                    ``(B) shall prohibit a person from holding an 
                individual quota share under the system unless the 
                person participates in the fishery for which the 
                individual quota share is issued; and
                    ``(C) shall require that if any person that holds 
                an individual quota share under the system does not 
                engage in fishing under the individual quota share for 
                3 or more years in any period of 5 consecutive years, 
                the individual quota share shall revert to the 
                Secretary and shall be reallocated under the system to 
                qualified participants in the fishery in a fair and 
                equitable manner.
            ``(7) Exceptions.--
                    ``(A) Hardship.--The Secretary may suspend the 
                applicability of paragraph (6) for individuals on a 
                case-by-case basis due to death, disablement, undue 
                hardship, retirement, or in any case in which fishing 
                is prohibited by the Secretary or the Council.
                    ``(B) Transfer to family members.--Notwithstanding 
                paragraph (6)(A), the Secretary may permit the transfer 
                of an individual fishing quota, on a case-by-case 
                basis, from an individual to a member of that 
                individual's family under circumstances described in 
                subparagraph (A) through a simple and expeditious 
                process.
            ``(8) Definitions.--In this subsection:
                    ``(A) individual quota system.--The term 
                `individual quota system' means a system that limits 
                access to a fishery in order to achieve optimum yield, 
                through the allocation and issuance of individual 
                quotas.
                    ``(B) individual quota.--The term `individual 
                quota' means a grant of permission to harvest a 
                quantity of fish in a fishery, during each fishing 
                season for which the permission is granted, equal to a 
                stated percentage of the total allowable catch for the 
                fishery.''.
    (b) Approval of Fishery Management Plans Establishing Individual 
Quota Systems.--Section 304 of that Act (16 U.S.C. 1854) is further 
amended by adding after subsection (h) the following:
    ``(i) Referendum Procedure.--
            ``(1) A Council may prepare and submit a fishery management 
        plan, plan amendment, or regulation that creates an individual 
        fishing quota or other quota-based program only if both the 
        preparation and the submission of such plan, amendment or 
        regulation are approved in separate referenda conducted under 
        paragraph (2).
            ``(2) The Secretary, at the request of a Council, shall 
        conduct the referenda described in paragraph (1). Each 
        referendum shall be decided by a two-thirds majority of the 
        votes cast by eligible permit holders. The Secretary shall 
        develop guidelines to determine procedures and eligibility 
        requirements for referenda and to conduct such referenda in a 
        fair and equitable manner.
    ``(j) Action on Limited Access Systems.--
            ``(1) In addition to the other requirements of this Act, 
        the Secretary may not approve a fishery management plan that 
        establishes a limited access system that provides for the 
        allocation of individual quotas (in this subsection referred to 
        as an `individual quota system') unless the plan complies with 
        section 303(e).
            ``(2) Within 1 year after receipt of recommendations from 
        the review panel established under paragraph (3), the Secretary 
        shall issue regulations which establish requirements for 
        establishing an individual quota system. The regulations shall 
        be developed in accordance with the recommendations. The 
        regulations shall--
                    ``(A) specify factors that shall be considered by a 
                Council in determining whether a fishery should be 
                managed under an individual quota system;
                    ``(B) ensure that any individual quota system is 
                consistent with the requirements of sections 303(b) and 
                303(e), and require the collection of fees in 
                accordance with subsection (d)(2) of this section;
                    ``(C) provide for appropriate penalties for 
                violations of individual quotas systems, including the 
                revocation of individual quotas for such violations;
                    ``(D) include recommendations for potential 
                management options related to individual quotas, 
                including the use of leases or auctions by the Federal 
                Government in the establishment or allocation of 
                individual quotas; and
                    ``(E) establish a central lien registry system for 
                the identification, perfection, and determination of 
                lien priorities, and nonjudicial foreclosure of 
                encumbrances, on individual quotas.
            ``(3)(A) Not later than 6 months after the date of the 
        enactment of the IFQ Act of 2001, the Secretary shall establish 
        a review panel to evaluate fishery management plans in effect 
        under this Act that establish a system for limiting access to a 
        fishery, including individual quota systems, and other limited 
        access systems, with particular attention to--
                    ``(i) the success of the systems in conserving and 
                managing fisheries;
                    ``(ii) the costs of implementing and enforcing the 
                systems;
                    ``(iii) the economic effects of the systems on 
                local communities; and
                    ``(iv) the use of auctions in the establishment or 
                allocation of individual quota shares.
            ``(B) The review panel shall consist of--
                    ``(i) the Secretary or a designee of the Secretary;
                    ``(ii) the Commandant of the Coast Guard;
                    ``(iii) a representative of each Council, selected 
                by the Council; and
                    ``(iv) 5 individuals with knowledge and experience 
                in fisheries management.
            ``(C) Based on the evaluation required under subparagraph 
        (A), the review panel shall, by September 30, 2003--
                    ``(i) submit comments to the Councils and the 
                Secretary with respect to the revision of individual 
                quota systems that were established prior to June 1, 
                1995; and
                    ``(ii) submit recommendations to the Secretary for 
                the development of the regulations required under 
                paragraph (2).''.
                                 <all>