Pub. L. 108-447, div. B, tit. II, sec. 219

Sec. 219. (a) Definitions.—In this section:(1) AFA trawl catcher processor subsector.—The term “AFA trawl catcher processor subsector” means the owners of each catcher/processor listed in paragraphs (1) through (20) of section 208(e) of the American Fisheries Act (16 U.S.C. 1851 note).(2) BSAI.—The term “BSAI” has the meaning given the term “Bering Sea and Aleutian Islands Management Area” in section 679.2 of title 50, Code of Federal Regulations (or successor regulation).(3) Catcher processor subsector.—The term “catcher processor subsector” means, as appropriate, one of the following:(A) The longline catcher processor subsector.(B) The AFA trawl catcher processor subsector.(C) The non-AFA trawl catcher processor subsector.(D) The pot catcher processor subsector.(4) Council.—The term “Council” means the North Pacific Fishery Management Council established in section 302(a)(1)(G) 118 STAT. 2887 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1852(a)(1)(G)).(5) LLP license.—The term “LLP license” means a Federal License Limitation program groundfish license issued pursuant to section 679.4(k) of title 50, Code of Federal Regulations (or successor regulation).(6) Longline catcher processor subsector.—The term “longline catcher processor subsector” means the holders of an LLP license that is noninterim and transferable, or that is interim and subsequently becomes noninterim and transferable, and that is endorsed for Bering Sea or Aleutian Islands catcher processor fishing activity, C/P, Pcod, and hook and line gear.(7) Non-afa trawl catcher processor subsector.—The term “non-AFA trawl catcher processor subsector” means the owner of each trawl catcher processor—(A) that is not an AFA trawl catcher processor;(B) to whom a valid LLP license that is endorsed for Bering Sea or Aleutian Islands trawl catcher processor fishing activity has been issued; and(C) that the Secretary determines has harvested with trawl gear and processed not less than a total of 150 metric tons of non-pollock groundfish during the period January 1, 1997 through December 31, 2002.(8) Non-pollock groundfish fishery.—The term “non-pollock groundfish fishery” means target species of Atka mackerel, flathead sole, Pacific cod, Pacific Ocean perch, rock sole, turbot, or yellowfin sole harvested in the BSAI.(9) Pot catcher processor subsector.—The term “pot catcher processor subsector” means the holders of an LLP license that is noninterim and transferable, or that is interim and subsequently becomes noninterim and transferable, and that is endorsed for Bering Sea or Aleutian Islands catcher processor fishing activity, C/P, Pcod, and pot gear.(10) Secretary.—Except as otherwise provided in this Act, the term “Secretary” means the Secretary of Commerce.(b) Authority for BSAI Catcher Processor Capacity Reduction Program.—(1) In general.—A fishing capacity reduction program for the non-pollock groundfish fishery in the BSAI is authorized to be financed through a capacity reduction loan of not more than $75,000,000 under sections 1111 and 1112 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f and 1279g). (2) Relationship to merchant marine act, 1936.—The fishing capacity reduction program authorized by paragraph (1) shall be a program for the purposes of subsection (e) of section 1111 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1279f), except, notwithstanding subsection (b)(4) of such section, the capacity reduction loan authorized by paragraph (1) may have a maturity not to exceed 30 years. (c) Availability of Capacity Reduction Funds to Catcher Processor Subsectors.—(1) In general.—The Secretary shall make available the amounts of the capacity reduction loan authorized by subsection (b)(1) to each catcher processor subsector as described in this subsection.118 STAT. 2888(2) Initial availability of funds.—The Secretary shall make available the amounts of the capacity reduction loan authorized by subsection (b)(1) as follows:(A) Not more than $36,000,000 for the longline catcher processor subsector.(B) Not more than $6,000,000 for the AFA trawl catcher processor subsector.(C) Not more than $31,000,000 for the non-AFA trawl catcher processor subsector.(D) Not more than $2,000,000 for the pot catcher processor subsector. (3) Other availability of funds.—After January 1, 2009, the Secretary may make available for fishing capacity reduction to one or more of the catcher processor subsectors any amounts of the capacity reduction loan authorized by subsection (b)(1) that have not been expended by that date. (d) Binding Reduction Contracts.—(1) Requirement for contracts.—The Secretary may not provide funds to a person under the fishing capacity reduction program authorized by subsection (b) if such person does not enter into a binding reduction contract between the United States and such person, the performance of which may only be subject to the approval of an appropriate capacity reduction plan under subsection (e).(2) Requirement to revoke licenses.—The Secretary shall revoke all Federal fishery licenses, fishery permits, and area and species endorsements issued for a vessel, or any vessel named on an LLP license purchased through the fishing capacity reduction program authorized by subsection (b).(e) Development, Approval, and Notification of Capacity Reduction Plans.—(1) Development.—Each catcher processor subsector may, after notice to the Council, submit to the Secretary a capacity reduction plan for the appropriate subsector to promote sustainable fisheries management through the removal of excess harvesting capacity from the non-pollock groundfish fishery. (2) Approval by the secretary.—The Secretary is authorized to approve a capacity reduction plan submitted under paragraph (1) if such plan—(A) is consistent with the requirements of section 312(b) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(b)) except—(i) the requirement that a Council or Governor of a State request such a program set out in paragraph (1) of such subsection; and(ii) the requirements of paragraph (4) of such subsection;(B) contains provisions for a fee system that provides for full and timely repayment of the capacity reduction loan by a catcher processor subsector and that may provide for the assessment of such fees based on methods other than ex-vessel value of fish harvested; (C) does not require a bidding or auction process; (D) will result in the maximum sustained reduction in fishing capacity at the least cost and in the minimum amount of time; and118 STAT. 2889(E) permits vessels in the catcher processor subsector to be upgraded to achieve efficiencies in fishing operations provided that such upgrades do not result in the vessel exceeding the applicable length, tonnage, or horsepower limitations set out in Federal law or regulation. (3) Approval by referendum.—(A) In general.—Following approval by the Secretary under paragraph (2), the Secretary shall conduct a referendum for approval of a capacity reduction plan for the appropriate catcher processor subsector. The capacity reduction plan and fee system shall be approved if the referendum votes which are cast in favor of the proposed system by the appropriate catcher processor subsector are—(i) 100 percent of the members of the AFA trawl catcher processor subsector; or(ii) not less than ⅔ of the members of—(I) the longline catcher processor subsector;(II) the non-AFA trawl catcher processor subsector; or(III) the pot catcher processor subsector.(B) Notification prior to referendum.—Prior to conducting a referendum under subparagraph (A) for a capacity reduction plan, the Secretary shall—(i) identify, to the extent practicable, and notify the catcher processor subsector that will be affected by such plan; and (ii) make available to such subsector information about any industry fee system contained in such plan, a description of the schedule, procedures, and eligibility requirements for the referendum, the proposed program, the estimated capacity reduction, the amount and duration, and any other terms and conditions of the fee system proposed in such plan. (4) Implementation.—(A) Notice of implementation.—Not later than 90 days after a capacity reduction plan is approved by a referendum under paragraph (3), the Secretary shall publish a notice in the Federal Register that includes the exact terms and conditions under which the Secretary shall implement the fishing capacity reduction program authorized by subsection (b).(B) Inapplicability of implementation provision of magnuson.—Section 312(e) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(e)) shall not apply to a capacity reduction plan approved under this subsection.(5) Authority to collect fees.—The Secretary is authorized to collect fees to fund a fishing capacity reduction program and to repay debt obligations incurred pursuant to a plan approved under paragraph (3)(A).(f) Action by Other Entities.—Upon the request of the Secretary, the Secretary of the Department in which the National Vessel Documentation Center operates or the Secretary of the Department in which the Maritime Administration operates, as appropriate, shall, with respect to any vessel or any vessel named on an LLP license purchased through the fishing capacity reduction program authorized by subsection (b)—118 STAT. 2890(1)(A) permanently revoke any fishery endorsement issued to the vessel under section 12108 of title 46, United States Code; (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 the vessel under foreign registry or the operation of the vessel under the authority of a foreign country; and(C) require that the vessel operate under United States flag and remain under Federal documentation; or(2) require that the vessel be scrapped as a reduction vessel under section 600.1011(c) of title 50, Code of Federal Regulations.(g) Non-Pollock Groundfish Fishery.—(1) Participation in the fishery.—Only a member of a catcher processor subsector may participate in—(A) the catcher processor sector of the BSAI non-pollock groundfish fishery; or(B) the fishing capacity reduction program authorized by subsection (b).(2) Plans for the fishery.—It is the sense of Congress that—(A) the Council should continue on its path toward rationalization of the BSAI non-pollock groundfish fisheries, complete its ongoing work with respect to developing management plans for the BSAI non-pollock groundfish fisheries in a timely manner, and take actions that promote stability of these fisheries consistent with the goals of this section and the purposes and policies of the Magnuson-Stevens Fishery Conservation and Management Act; and(B) such plans should not penalize members of any catcher processor subsector for achieving capacity reduction under this Act or any other provision of law. (h) Reports.—(1) Requirement.—The Secretary shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Resources of the House of Representatives 5 reports on the fishing capacity reduction program authorized by subsection (b).(2) Content.—Each report shall contain the following:(A) A description of the fishing capacity reduction program carried out under the authority in subsection (b).(B) An evaluation of the cost and cost-effectiveness of such program.(C) An evaluation of the effectiveness of such program in achieving the objective set out in section 312(b) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a(b)).(3) Schedule.—(A) Initial report.—The Secretary shall submit the first report under paragraph (1) not later than 90 days after the date that the first referendum referred to in subsection (e)(3) is held.(B) Subsequent reports.—During each of the 4 years after the year in which the report is submitted under subparagraph (A), the Secretary shall submit to Congress an annual report as described in this subsection.118 STAT. 2891(i) Conforming Amendment.—Section 214 of the Department of Commerce and Related Agencies Appropriations Act, 2004 (title II of division B of Public Law 108–199; 118 Stat. 75) is amended by striking “that—” and all that follows, and inserting “under the capacity reduction program authorized in section 219 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 2005.”.