[Congressional Record Volume 147, Number 74 (Friday, May 25, 2001)]
[Senate]
[Pages S5704-S5706]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Mr. Smith of Oregon):
  S. 973. A bill to expedite relief provided under the Magnuson-Stevens 
Fishery Conservation and Management Act for commercial fishery failure 
in the Pacific Coast Groundfish Fishery, to improve fishery management 
and enforcement in that fishery, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. WYDEN. Mr. President, I am pleased to be joined today by my good 
friend and colleague from Oregon, Senator Smith, in introducing the 
Pacific Coast Commercial Fishery Preservation Act of 2001.
  The West Coast groundfish fishery is in crisis, and many fishermen 
are facing bankruptcy. This legislation will help fishermen get through 
the crisis, and move the fishery toward a more sustainable future.
  Sustainable management of this resource is long overdue and in 
January 2000, the Secretary of Commerce declared the West Coast 
groundfish fishery a disaster. This bill will put the right number of 
fishers out there, at the right time, catching the right number of 
fish.
  Catching the right number of fish should mean using the fish that are 
caught. Fish that are caught in excess of a fisher's trip limit are 
called ``regulatory discards'' or ``overages,'' and thousands of pounds 
of fish are wasted every year when they are thrown overboard. This bill 
authorizes fishermen to retain those extra fish and donate them to 
charitable organizations.
  The right number of fishers is key to a sustainable fishery. There 
are currently too many fishers in the West Coast groundfish fishery to 
sustain the resource. This bill authorizes the Secretary to administer 
and implement a

[[Page S5705]]

capacity reduction or ``buyback'' plan to ease the transition to the 
right number of fishers. In a survey distributed by the author of the 
buyback plan, 70 percent of recipients completed and returned their 
survey and a majority of them were interested in participating in the 
buyback program. A buyback plan has been developed by Oregonians, in 
consultation with the National Marine Fisheries Service and the Pacific 
Fishery Management Council, and this bill incorporates key elements of 
it.
  This is not a Federal handout. Half the funding will come from the 
industry and half from the Federal government. The industry portion 
will be a government-backed loan which will be repaid by the fishers 
who stay. The Secretary is authorized to enter into agreements in 
California, Washington and Oregon to collect the fees that will be used 
to repay the industry portion of the buyback fund.
  Another way we seek to ease the transition away from fishing is 
through reform of the Capital Construction Fund. Currently, the fund 
allows fishers to put pre-tax funds aside for the construction of a new 
boat, or for upgrading their old one. It was effective in building 
America's fishing fleets, but in these days of dwindling stocks and 
fisheries disasters it is crucial that the fisheries have an 
alternative use for their money, such as retirement. This bill amends 
the Merchant Marine Act and the Internal Revenue Code to allow funds 
currently trapped in the Capital Construction Fund to be rolled over 
into a retirement account without adverse consequences to either 
taxpayers or the account holders.
  Ultimately, sustainable fisheries are a result of government 
regulation and management. When federal management fails, the 
government has a responsibility to help fishers and their families in a 
timely fashion. It has taken 18 months for the recent fishery disaster 
funding to hit Oregon. When you are an out-of-work groundfisher, 18 
months is way too long to wait. This bill requires the Secretary of 
Commerce to recommend legislative or administrative changes to the 
existing law that would enable disaster funding to reach fishers more 
expeditiously.
  This plan is supported by the West Coast Seafood Processors, the 
Fishermen's Marketing Association, the Pacific Federation of Fishermen, 
the Pacific Conservation Council, and the Pacific States Marine 
Fisheries Commission.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 973

       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 pre-vessel trip limits, total allowable catch 
     limits, or other fishery management plan measures.
       (b) Reports.--
       (1) Initiation.--The Secretary shall notify the Senate 
     Committee on Commerce, Science, and Transportation, 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 Committee 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 Senate Committee on 
     Commerce, Science, and Transportation 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--

[[Page S5706]]

       (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) 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) 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 the 
     Paperwork Reduction Act, the Regulatory Flexibility Act, 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 vessel 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;''; and
       (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:
       ``(ii) The Secretary by regulation shall establish 
     procedures to ensure that any person making a qualified 
     withdrawal authorized under subparagraph (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:

     ``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.
                                 ______