[Congressional Record Volume 149, Number 77 (Thursday, May 22, 2003)]
[Senate]
[Pages S6985-S6988]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Kerry):
  S. 1106. A bill to establish National Standards for Fishing Quota 
Systems; to the Committee on Commerce, Science, and Transportation.
  Ms. SNOWE. Mr. President, I rise today, along with Senator Kerry, to 
introduce the Fishing Quota Act of 2003 which will address one of the 
most complex policy questions in fisheries management--fishing quotas. 
This bill will amend the Magnuson-Stevens Fishery Conservation and 
Management Act to authorize the establishment of new fishing quota 
systems. This legislation will in no way whatsoever force Fishing Quota 
programs upon any regional fishery management council and this is not a 
mandate to use Fishing Quota programs. Rather, it is intended to 
provide the councils with an additional conservation and management 
tool.
  Fishing Quota programs can drastically change the face of fishing 
communities and the fundamental principles of conservation and 
management. Therefore, this legislation was developed in a careful and 
meaningful manner over the span of many years with significant input 
and participation from all of the many affected and interested parties.
  In 1996, Congress reauthorized the Magnuson-Stevens Fishery 
Conservation and Management Act through enactment of the Sustainable 
Fisheries Act, SFA. The SFA contained the most substantial improvements 
to fisheries conservation since the original passage of the Magnuson-
Stevens Act in 1976. More specifically, the SFA included a five year 
moratorium on new fishing quota programs and required the National 
Academy of Sciences, NAS, to study and report on the issue.
  In 1999, the NAS issued its report, Sharing the Fish, which contained 
a number of critically important recommendations addressing the social, 
economic, and biological aspects of Fishing Quota programs. The Fishing 
Quota Act of 2003 incorporates many of the recommendations in this 
report and provides the regional councils with the flexibility to adopt 
additional NAS recommendations.
  During the 106th Congress, the Subcommittee on Oceans and Fisheries 
traveled across the country and held six hearings on reauthorizing the 
Magnuson-Stevens Act. We began the process in Washington, DC, and then 
visited fishing communities in Maine, Louisiana, Alaska, Washington, 
and Massachusetts. During the course of those hearings, we heard 
official testimony from over 70 witnesses and received statements from 
many more fishermen during open microphone sessions at each field 
hearing. The Subcommittee heard the comments, views, and 
recommendations of Federal and State officials, regional council 
chairmen and members, other fisheries managers, commercial and 
recreational fishermen, members of the conservation community, and many 
other interested in these important issues. After these hearings, I 
introduced the Individual Fishing Quota Act of 2001, S. 637, at the 
beginning of the 107th Congress beginning the legislative dialogue. 
Since then, we have heard from many stakeholders who assisted the 
Subcommittee in shaping and re-shaping this bill.
  The Fishing Quota Act of 2003 creates a framework under which fishery 
management plans, FMPs, or plan amendments may establish a new fishing 
quota system. As with other components of fisheries conservation and 
management, there is no ``one-size-fits-all'' solution to Fishing Quota 
programs. Therefore, this bill sets certain conditions under which 
Fishing Quota programs may be developed, if such a program is desired. 
In doing so, it clearly provides the regional fishery management 
councils and the affected fishermen with the flexibility to shape any 
new Fishing Quota program to fit the needs of the fishery.
  The bill ensures that any regional council which establishes a new 
fishing quota program will promote sustainable management of the 
fishery; require fair and equitable allocation of fishing quotas; 
minimize negative social and economic impacts on local coastal 
communities; ensure adequate enforcement of the system; and take into 
account present participation and historical fishing practices of the 
relevant fishery. Additionally, the bill requires the Secretary of 
Commerce to conduct referenda to ensure that those most affected by 
fishing quotas will have the opportunity to formally approve the 
adoption of any new fishing quota program by a two-thirds vote.
  This bill authorizes the potential allocation of fishing quotas to 
fishing vessel owners, fishermen, and crew members who are citizens of 
the United States. In addition, participation in the fishery is 
required for a person to obtain quota. Moreover, this bill permits 
councils to allocate quota shares to entry-level fishermen, small 
vessel owners, or crew members who may not otherwise be eligible for 
individual quotas. While this bill authorizes the transfer of fishing 
quotas, it requires the regional councils to define and prohibit an 
excess accumulation of quota shares.
  This is a good bill which allows Fishing Quota programs to be created 
where they are needed and desired. The Fishing Quota Act of 2003 
incorporates many of the suggestions we heard from those men and women 
who fish for a living and those who are most affected by the law and 
its regulations. I appreciate the participation of Senator Kerry and 
all the impacted stakeholders who assisted in drafting this 
legislation. I look forward to moving this bill through the legislative 
process toward final passage.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

                                S. 1106

       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 ``Fishing Quota Act of 2003''.

[[Page S6986]]

     SEC. 2. FISHING QUOTA SYSTEMS.

       (a) In General.--Section 303 of the Magnuson-Stevens 
     Fishery Conservation and Management Act (16 U.S.C. 1853) is 
     amended--
       (1) by striking subsection (f)(6) and inserting the 
     following:
       ``(6) establish a limited access system for the fishery in 
     order to achieve optimum yield if, in developing such system, 
     the Council and the Secretary take into account--
       ``(A) the conservation requirements of this Act with 
     respect to the fishery;
       ``(B) present participation in the fishery;
       ``(C) historical fishing practices in, and dependence on, 
     the fishery;
       ``(D) the economics of the fishery;
       ``(E) the capability of fishing vessels used in the fishery 
     to engage in other fisheries;
       ``(F) the cultural and social framework relevant to the 
     fishery and any affected fishing communities;
       ``(G) the fair and equitable distribution of a public 
     resource; and
       ``(H) any other relevant considerations.'';
       (2) by striking subsection (d) and inserting the following:
       ``(d) Fishing Quota Systems.--
       ``(1) Establishment.--Any fishery management plan or 
     amendment that is prepared by any Council, or by the 
     Secretary, with respect to any fishery, may establish a 
     fishing quota system consistent with the provision of 
     subsection (b)(6).
       ``(2) In general.--The Councils and Secretary shall ensure 
     that any such fishing quota system submitted and approved 
     after September 30, 2002, complies with the requirements of 
     this Act, and;
       ``(A) shall prevent any person from acquiring an excessive 
     share of the fishing quotas issued, as appropriate for the 
     fishery, and establish any other limits or measures necessary 
     to prevent inequitable concentration of quota share;
       ``(B) shall provide for the fair and equitable initial 
     allocation of quota share and in such allocation--
       ``(i) shall take into account present and historic 
     participation in the fishery;
       ``(ii) shall consider allocating a portion of the annual 
     harvest to entry-level fishermen, small vessel owners, 
     skippers, crew members, and fishing communities; and
       ``(iii) may allocate shares among categories of vessels or 
     gear types.
       ``(C) shall contain provisions for the regular review and 
     evaluation of the system, including timetables and criteria 
     for evaluating performance, and actions to be taken for 
     failure to meet the criteria;
       ``(D) shall contain criteria that would govern limitation, 
     revocation, renewal, reallocation, or reissuance of fishing 
     quota, including:
       ``(i) reallocation or reissuance of quota revoked pursuant 
     to section 308 of this Act;
       ``(ii) revocation and reissuance of fishing quota if the 
     owner of the quota cease to substantially participate in the 
     fishery; and
       ``(iii) exceptions to revocation or limitation in cases of 
     death, disablement, undue hardship, or in any case in which 
     fishing is prohibited by the Secretary;
       ``(E) shall provide a process for appeals of decisions on--
       ``(i) eligibility of a person to receive or bid for an 
     allocation of quota shares; and
       ``(ii) limitations, restrictions and revocations of quota 
     held by a person.
       ``(F) shall promote management measures top improve the 
     conservation and management of the fishery, including 
     reduction by bycatch;
       ``(G) shall provide for effective enforcement, monitoring, 
     a management of such system, including adequate data 
     collection and use of observers at least at a level of 
     coverage that should yield statistically significant results;
       ``(H) may provide for the sale, lease or transfer of quota 
     shares and limitations thereto;
       ``(I) shall provide a mechanism, such as fees as authorized 
     by section 304(d)(2), including fees payable on quota 
     transfers to recover costs related to administering and 
     implementing the program, including enforcement, management 
     and data collection (including adequate observer coverage), 
     if the assessment of such fees is proportional to the amount 
     of quota held and fished by each quota holder and if such 
     fees are used only for that fishing quota system;
       ``(J) shall consider the use of community or area-based 
     approaches and strategies in developing fishing quota systems 
     and consider other management measures, including measures to 
     facilitate formation of fishery cooperative arrangements, 
     taking into account proximity to and dependence on the 
     resource, contribution of fishing to the social and economic 
     status of the community, and historic participation in the 
     fishery; and
       ``(K) shall include procedures and requirements necessary 
     to carry out subparagraphs (A) through (J).
       ``(3) No creation of right, title, or interest.--A fishing 
     quota or other limited access system authorization--
       ``(A) shall be considered a permit for the purposes of 
     sections 307, 308, and 309;
       ``(B) may be revoked or limited at any time in accordance 
     with this Act, including for failure to comply with the terms 
     of the plan or if the system is found to have jeopardized the 
     sustainability of the stock or the safety of fishermen;
       ``(C) shall not confer any right of compensation to the 
     holder of such fishing quota or other such limited access 
     system authorization if it is revoked or limited;
       ``(D) shall not create, or be construed to create, any 
     right, title, or interest in or to any fish before the fish 
     is harvested; and
       ``(E) shall be considered a grant of permission to the 
     holder of the fishing quota to engage in activities permitted 
     by the fishing quota system.
       ``(4) Eligibility.--Persons eligible to hold fishing quota 
     shares are persons who are United States citizens, or who are 
     United States nationals or permanent resident aliens 
     qualified by Federal law to participate in the fishery.
       ``(5) Duration.--Any fishing quota system established under 
     this section after the date of enactment of the Fishing Quota 
     Act of 2003 shall expire at the end of a 10-year period 
     beginning on the date the system is established, or at the 
     end of successive 10 year periods thereafter, unless extended 
     by a fishery management plan amendment is accordance with 
     this Act, for successive periods not to exceed 10 years.
       ``(6) Referendum Procedures.--
       ``(A) Except as provided in subparagraph (C) for the Gulf 
     of Mexico commercial red snapper fishery, a Council may not 
     submit, and the Secretary not approve or implement a fishery 
     management plan or amendment that creates a fishing quota 
     system, including a secretarial plan, unless such a system, 
     as ultimately developed, has been approved by more than two-
     thirds of those voting in a referendum among eligible permit 
     holders. If a fishing quota system fails to be approved by 
     the requisite number of those voting, it may be revised and 
     submitted for approval in a subsequent referendum.
       ``(B) The Secretary shall conduct the referendum referred 
     to in this paragraph, including notifying all persons 
     eligible to participate in the referendum and making 
     available to them information concerning the schedule, 
     procedures and eligibility requirements for the referendum 
     process and the proposed fishing quota system. The Secretary 
     shall within one year of enactment of the Fishing Quota Act 
     of 2003 publish guidelines and procedures to determine 
     procedures and voting eligibility requirements for 
     referenda and to conduct such referenda in a fair and 
     equitable manner.
       ``(C) The provisions of section 407(e) shall apply in lieu 
     of this paragraph for any fishing quota system for the Gulf 
     of Mexico commercial red snapper fishery.
       ``(D) Chapter 35 of title 44, United States Code, (commonly 
     known as the ``Paperwork Reduction Act'') does not apply to 
     the referenda conducted under this paragraph.
       ``(7)(A) No provision of law shall be construed to limit 
     the authority of a Council to submit, or the Secretary to 
     approve, the termination or limitation, without compensation 
     to holders of any limited access system permits, of a fishery 
     management plan, plan amendment, or regulation that provides 
     for a limited access system, including a fishing quota 
     system.
       ``(B) This subsection shall not apply to, or be construed 
     to prohibit a Council from submitting, or the Secretary from 
     approving and implementing, amendments to the North Pacific 
     halibut and sablefish, Southern Atlantic wreckfish, or Mid-
     Atlantic surf clam and ocean (including mahogany) quahog 
     individual fishing quota programs.
       ``(8)(A) A Council may submit, and the Secretary may 
     approve and implement, a program which reserves up to 25 
     percent of any fees collected from a fishery under section 
     304(d)(2) to be used, pursuant to section 1104A(a)(7) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1274(a)(7)), to 
     issue obligations that aid in financing the----
       ``(i) purchase of fishing quotas in that fishery by 
     fishermen who fish from small vessels; and
       ``(ii) first-time purchase of fishing quotas in that 
     fishery by entry level fishermen.
       ``(B) A Council making a submission under subparagraph (A) 
     shall recommend criteria, consistent with the provisions of 
     this Act, that a fisherman must meet to qualify for 
     guarantees under clauses (i) and (ii) of subparagraph (A) and 
     the portion of funds to be allocated for guarantees under 
     each clause.''.
       (b) Independent Review.--Section 303 of the Magnuson-
     Stevens Fishery Conservation and Management Act (16 U.S.C. 
     1853) is further amended by adding at the end the following:
       ``(e)(1) Within 5 years after the date of enactment of the 
     Fishing Quota Act of 2003, and every 5 years thereafter, the 
     National Research Council shall provide an independent review 
     of the effectiveness of fishing quota systems conducted in 
     Federal fisheries.
       ``(2) The review shall be conducted by an independent panel 
     of individuals who have knowledge and experience in fisheries 
     conservation and management, in the implementation of fishing 
     quota systems, or in the social or economic characteristics 
     of fisheries. The National Research Council shall ensure that 
     members of the panel are qualified for appointment, are not 
     active quota share holders, and provide fair representation 
     to interests affected by such programs.
       ``(3) The independent review of fishing quota systems shall 
     include--
       ``(A) a determination of how fishing quota systems affect 
     fisheries management and contribute to improved management, 
     conservation (including bycatch reduction) and safety in the 
     fishery;
       ``(B) formal input in the form of testimony from quota 
     holders relative to the effectiveness of the fishing quota 
     system;
       ``(C) an evaluation of the social, economic and biological 
     consequences of the quota system, including the economic 
     effects of the system on fishing communities;

[[Page S6987]]

       ``(D) an evaluation of the costs of implementing, 
     monitoring and enforcing the systems and the methods used to 
     establish or allocate individual quota shares; and
       ``(E) recommendations to the Councils and the Secretary to 
     ensure that quota systems meet the requirements of this Act 
     and the goals of the plans, and recommendations to the 
     Secretary for any changes to regulations issued under section 
     304(i).
       ``(4) The Secretary shall submit the report to the Congress 
     and any appropriate Councils within 60 days after the review 
     is completed.''.
       (c) Action on Limited Access Systems.--Section 304 of the 
     Magnuson-Stevens Fishery Conservation and Management Act (16 
     U.S.C. 1854) is amended by adding at the end the following:
       ``(i) Action on limited access systems.--Within 1 year 
     after the date of enactment of the Fishing Quota Act of 2003, 
     the Secretary shall issue regulations which establish 
     requirements for establishing a fishing quota system. Nothing 
     in this paragraph prohibits a Council or the Secretary 
     from initiating development of a fishing quota system 
     consistent with the provisions of this Act pending 
     publication of the final regulations.''.
       (d) Definitions.--Section 3 of the Magnuson-Stevens Fishery 
     Management and Conservation Act (16 U.S.C. 1802) is amended 
     by--
       (1) adding at the end the following:
       ``(46) The term `United States Citizen' means an individual 
     who is a citizen of the United States or a corporation, 
     partnership, association or other entity that qualifies to 
     document a fishing vessel as a vessel of the United States 
     under chapter 121 of title 46, United States Code.''; and
       (2) striking `` `individual fishing quota' '' in paragraph 
     (21) and inserting `` `fishing quota system' ''.
       (e) Conforming Amendments.--
       (1) The following provisions of that Act are amended by 
     striking ``individual fishing quota'' and inserting ``fishing 
     quota'';
       (A) Section 304(c)(3) (16 U.S.C. 1854(c)(3)).
       (B) Section 304(d)(2)(A)(i) (16 U.S.C. 1854(D)(2)(A)(i)).
       (C) Section 402(b)(1)(D) (16 U.S.C. 1881a(b)(1)(D)).
       (D) Section 407(a)(1)(D), (c)(1), and (c)(2)(B) (16 U.S.C. 
     1883(a)(1)(D), (c)(1), and (c)(2)(B)).
       (2) section 305(h)(1) (16 U.S.C. 1855(h)(1) is amended by 
     striking ``individual''.

     SEC. 3. GULF OF MEXICO FISHING QUOTA SYSTEMS.

       Section 407(c) of the Magnuson-Stevens Fishery Conservation 
     and Management Act (16 U.S.C. 1883) is amended by adding at 
     the end the following:
       ``(3) The initial referendum described in paragraph (1) 
     shall be used to determine support for whether the sale, 
     transfer, or lease of quota shares shall be allowed.''.

  Mr. KERRY. Mr. President, I rise today with my colleague, Ms. Snowe, 
to introduce the Fishing Quota Act of 2003, legislation to establish 
national criteria governing the use of individual fishing quota IFQ 
systems. Work began in earnest on this bipartisan bill in the Commerce 
Committee last spring, as the expiration of the national moratorium on 
the use of IFQs approached, and small boat fishermen voiced concerns 
that existing legislative criteria governing the use of IFQs would not 
offer sufficient protection to communities. I would like to thank 
Subcommittee Chair Snowe for her efforts to work with me and with other 
members of the Commerce Committee on this legislation, which draws from 
separate IFQ legislation that both Senator Snowe and I introduced 
beginning in the 106th Congress.
  The IFQ moratorium established under the 1996 Sustainable Fisheries 
Act was set to expire September 30, 2000. Senator Snowe and I supported 
a 2-year extension of that moratorium to allow for hearings and full 
consultation with affected groups on the issues surrounding IFQs. Our 
discussions focused on the need to provide regional flexibility to use 
IFQs as a management tool, while providing national ``rules of the 
road.'' Such rules of the road would ensure IFQ systems developed after 
expiration of the moratorium are adopted with the support of the 
fishery, allocate quota fairly and equitably, address region-specific 
needs, further the conservation and management goals of the Magnuson-
Stevens Act, prevent consolidation of quota, address the needs of small 
fishing communities, and recognize both the public nature of the 
resource and that issuance of an IFQ does not give rise to a 
compensable property right.
  To develop such rules, we worked with fellow Commerce Committee 
members, including Senators Breaux, Lott, Boxer, Stevens, and Cantwell, 
consulted with interested groups, and obtained technical advice from 
the National Marine Fisheries Service. While New England has 
historically been opposed to IFQs, other regions are interested in 
utilizing IFQ programs in certain fisheries. I believe the resulting 
bill provides a balance between the need to provide national policy 
guidance that considers the concerns of communities and harvesters, but 
allows for development of IFQ systems, where appropriate, on a fishery-
by-fishery basis. This preserves the balanced regional approach to 
fishery management that Congress intended in the Magnuson-Stevens Act. 
I also want to clarify that this bill does not authorize the 
establishment of ``processor quota,'' and relates only to issuance of 
harvester quota.
  The bill Senator Snowe and I are introducing today sets forth a set 
of national criteria that councils wishing to adopt IFQs would follow. 
Importantly, this bill contains a provision that directs councils to 
consider the use of community or area-based approaches and strategies 
that would preserve the vitality of small fishing communities, 
including the allocation of quota to a fishing community. It also 
directs councils to consider use of other management measures, 
including those that would facilitate formation of fishery cooperative 
arrangements, taking account of the dependence of coastal communities 
on these fisheries.
  This bill addresses many of the concerns raised by fishermen, and I 
understand the many concerns of small fisherman in New England 
regarding the use of IFQs. I believe this bill gives fishermen the 
power to decide whether to implement an IFQ program and ensures that 
those who do will operate under a fair system. First, no region could 
implement an IFQ system without approval of a two-thirds majority of 
eligible permit holders through a referendum process run by the 
Secretary of Commerce. In addition, any IFQ system developed under the 
legislation would have to meet a set of national criteria. These 
national criteria would include: (1) ensuring a fair and equitable 
initial allocation of quota, including the establishment of an appeals 
process for qualification and allocation decisions, taking into account 
present and historic participation in the fishery; (2) establishing 
limits necessary to prevent inequitable concentration of quota share; 
(3) preventing any person from acquiring an ``excessive share''; (4) 
considering allocation of a portion of the annual harvest specifically 
to small fishermen, skippers, crew members, fishing communities, or 
categories of vessels or gear types; and (5) providing for revocation 
of quota if the owner is no longer an active fisherman.

  I also believe this bill responds to concerns that IFQ systems would 
undermine the national interest in conserving fishery resources held in 
the public trust. In order to respond to those concerns, the bill 
would: (1) specify that an IFQ is a permit under the Magnuson-Stevens 
Act and does not confer any right of compensation or any right, title 
or interest to any fish before it is harvested; (2) established that 
the quota expires after 10 years, unless extended by a fishery 
management plan; (3) require that the systems promote management 
measures to improve the conservation and management of the fishery, 
including reduction of bycatch; (4) provide for regular review and 
evaluation of the system, including specifying actions to be taken for 
any failure to meet the criteria; (5) require that the systems provide 
for effective enforcement, monitoring, and management, including use of 
observers; and (6) require that quota be revoked from individuals found 
to be subject to civil penalties under section 308 of the Magnuson-
Stevens Act.

  The bill also would require a 5-year recurring independent review of 
IFQ systems by the National Research Council, to: (1) evaluate the 
effectiveness of such systems and determine who the systems contribute 
to improved management, conservation and safety; (2) evaluate the 
social, economic and biological consequences of the systems, including 
economic impacts on fishing communities; (3) evaluate the costs of 
implementation; and (4) provide recommendations to ensure the systems 
meet Magnuson-Stevens Act requirements and the goals of the plans.
  I believe this legislation provides guidelines for the use of IFQs 
that will help ensure the health of our marine fisheries. During the 
last reauthorization of the Magnuson-Stevens Act, our

[[Page S6988]]

Nation's fisheries were at a crossroads, and action was required to 
remedy our marine resource management problems, to preserve the way of 
life in our coastal communities, and to promote the sustainable use and 
conservation of our marine resources for future generations and for the 
economic good of the Nation. We must stay the course, and this bill 
will help us do just that. I remain committed to the goal of 
establishing biologically and economically sustainable fisheries so 
that fishing will continue to be an important part of the culture and 
economy of coastal communities throughout Massachusetts, as well as the 
economy of the Nation.
                                 ______