Capital Construction Fund Qualified Withdrawal Act of 2003

        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2360 Introduced in House (IH)]

108th CONGRESS
1st Session
H. R. 2360

To provide for qualified withdrawals from the Capital Construction Fund
for fishermen leaving the industry and for the rollover of Capital
Construction Funds to individual retirement plans, and for other
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 5, 2003

Mrs. Capps (for herself, Mr. Thompson of California, Mr. Blumenauer,
Mr. Wu, Mr. Farr, Mr. George Miller of California, and Mr. DeFazio)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Armed Services, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned

_______________________________________________________________________

A BILL

To provide for qualified withdrawals from the Capital Construction Fund
for fishermen leaving the industry and for the rollover of Capital
Construction Funds to individual retirement plans, and for other
purposes.

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 ``Capital Construction Fund Qualified
Withdrawal Act of 2003''.

SEC. 2. AMENDMENT OF THE MERCHANT MARINE ACT OF 1936 TO ENCOURAGE
RETIREMENT OF CERTAIN FISHING VESSELS AND PERMITS.

(a) In General.--Section 607(a) of the Merchant Marine Act, 1936
(46 U.S.C. App. 1177(a)) is amended by adding at the end the following:
``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 vessels and related
commercial fishing permits.''.
(b) New Qualified Withdrawals.--
(1) In general.--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 with
respect to any vessel operated in the fisheries of the
United States, 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);
``(F) the payment of the net proceeds deposited
into the fund from a sale described in subsection
(b)(1)(C)(ii) to a person retiring related commercial
fishing vessels and permits;
``(G) the acquisition of a vessel monitoring system
as a safety improvement for a fishing vessel; or
``(H) the acquisition or construction of fishing
gear designed to minimize or avoid by-catch as required
under section 301(a)(9) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C.
1851(a)(9)).''.
(2) Reduction program sale proceeds allowed in determining
deposit ceiling.--Section 607(b)(1)(C) of such Act (46 U.S.C.
App. 1177(b)(1)(C)) is amended by striking ``or (ii)'' and
inserting ``(ii) the sale of any agreement vessel or fishing
permit retired through the fishing capacity reduction program
under section 312(b) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1861a(b)), or
(iii)''.
(3) Certain qualified withdrawals treated as withdrawn from
the capital account.--Section 607(e)(2)(B) of such Act (46
U.S.C. App. 1177(e)(2)(B)) is amended by adding at the end
``unless such portion represents gain from a sale described in
subsection (b)(1)(C)(ii) and is withdrawn for any purpose
provided under subparagraph (D), (E), or (F) of subsection
(f)(1),''.
(4) Secretary to ensure retirement of vessels and
permits.--The Secretary of Commerce by regulation shall
establish procedures to ensure that any person making a
qualified withdrawal authorized by section 607(f)(1)(F) of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1177(f)(1)(F))
retires the related commercial use of fishing vessels and
commercial fishery permits.
(c) Conforming Amendments.--
(1) In general.--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 with respect to
any vessel operated in the fisheries of the United
States, 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));
``(F) the payment of the net proceeds deposited
into the fund from a sale described in subsection
(a)(1)(C)(ii) to a person retiring related commercial
fishing vessels and permits;
``(G) the acquisition of a vessel monitoring system
as a safety improvement for a fishing vessel; or
``(H) the acquisition or construction of fishing
gear designed to minimize or avoid by-catch as required
under section 301(a)(9) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C.
1851(a)(9)).''.
(2) Reduction program sale proceeds allowed in determining
deposit ceiling.--Section 7518(a)(1)(C) of such Code is amended
by striking ``or'' at the end of clause (i), by redesignating
clause (ii) as clause (iii), and by inserting after clause (i)
the following new clause:
``(ii) the sale of any agreement vessel or
fishing permit retired through the fishing
capacity reduction program under section 312(b)
of the Magnuson-Stevens Fishery Conservation
and Management Act (16 U.S.C. 1861a(b)), or''.
(3) Certain qualified withdrawals treated as withdrawn from
the capital account.--Section 7718(d)(2)(B) of such Code is
amended by adding at the end ``unless such portion represents
gain from a sale described in subsection (a)(1)(C)(ii) and is
withdrawn for any purpose provided under subparagraph (D), (E),
or (F) of subsection (e)(1),''.
(4) Secretary to ensure retirement of vessels and
permits.--The Secretary of the Treasury by regulation shall
establish procedures to ensure that any person making a
qualified withdrawal authorized by section 7518(e)(1)(F) of the
Internal Revenue Code of 1986 retires the related commercial
use of fishing vessels and commercial fishery permits referred
to therein.
(d) Effective Date.--The amendments made by this section shall
apply to withdrawals made after the date of enactment of this Act.
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