article: 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).''.
summary: 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.