text: 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).''.
target: IFQ Act of 2001 - Amends the Magnuson-Stevens Fishery Conservation and Management Act to authorize, subject to referenda approval, the establishment of, and conditions for, individual fishery quota systems.
feat_title: 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.