[Senate Report 114-379]
[From the U.S. Government Publishing Office]
Calendar No. 674
114th Congress } { Report
SENATE
2d Session } { 114-379
_______________________________________________________________________
AMERICAN FISHERIES ADVISORY COMMITTEE ACT
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3087
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
November 17, 2016.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
69-010 WASHINGTON : 2016
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred fourteenth congress
second session
JOHN THUNE, South Dakota, Chairman
ROGER F. WICKER, Mississippi BILL NELSON, Florida
ROY BLUNT, Missouri MARIA CANTWELL, Washington
MARCO RUBIO, Florida CLAIRE McCASKILL, Missouri
KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas ED MARKEY, Massachusetts
DAN SULLIVAN, Alaska CORY BOOKER, New Jersey
RON JOHNSON, Wisconsin TOM UDALL, New Mexico
DEAN HELLER, Nevada JOE MANCHIN, West Virginia
CORY GARDNER, Colorado GARY PETERS, Michigan
STEVE DAINES, Montana
Nick Rossi, Staff Director
Adrian Arnakis, Deputy Staff Director
Jason Van Beek, General Counsel
Kim Lipsky, Democratic Staff Director
Christopher Day, Democratic Deputy Staff Director
Clint Odom, Democratic General Counsel
Calendar No. 674
114th Congress } { Report
SENATE
2d Session } { 114-379
======================================================================
AMERICAN FISHERIES ADVISORY COMMITTEE ACT
_______
November 17, 2016.--Ordered to be printed
_______
Mr. Thune, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 3087]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3087) to establish the American
Fisheries Advisory Committee to assist in the awarding of
fisheries research and development grants and for other
purposes, having considered the same, reports favorably thereon
with an amendment (in the nature of a substitute) and
recommends that the bill (as amended) do pass.
Purpose of the Bill
The purposes of the American Fisheries Advisory Committee
Act are to create a committee to identify the needs of the
seafood industry, develop requests for proposals, review grant
applications, and select applications for approval for grants.
This Act also would require all decisions to be at the
discretion of the Secretary of Commerce and the American
Fisheries Advisory Committee (AFAC) to meet not more than
biannually.
Background and Needs
The fishery management standards established by the
Magnuson-Stevens Fishery Conservation and Management Act
(MSA)\1\ have led to the recovery of most stocks of federally
managed fish. As of 2015, less than 10 percent of stocks were
overfished.\2\ One of the reasons stocks have recovered is that
the 2006 revisions to the MSA required hard annual catch limits
on stocks.\3\ Thus, in recent years, in order to increase
profits, fishermen have had to focus primarily on increasing
the value of their catch rather than catching more fish.
---------------------------------------------------------------------------
\1\16 U.S.C. 1801 et seq.
\2\National Oceanic and Atmospheric Administration, Status of
Stocks 2015: Annual Report to Congress on the Status of U.S. Fisheries,
April 2016, at http://www.nmfs.noaa.gov/sfa/fisheries_eco/
status_of_fisheries/archive/2015/2015_status_of_stocks_updated.pdf.
\3\Magnuson-Stevens Fishery Conservation and Management
Reauthorization Act of 2006, Public Law 109-479; 120 Stat. 3575.
---------------------------------------------------------------------------
The Saltonstall-Kennedy Fund was established to ``carry out
a national program of research and development addressed to
such aspects of United States fisheries including, but not
limited to, harvesting, processing, marketing, and associated
infrastructures.''\4\ It is funded by tariffs on imported
fishery products.\5\ Originally, an advisory committee oversaw
the Saltonstall-Kennedy Fund's activity,\6\ but the authority
for that advisory committee terminated after a 2-year period
pursuant to section 14 of the Federal Advisory Committee
Act.\7\ After the advisory committee was terminated, funds were
and continue to be distributed by the National Oceanic and
Atmospheric Administration (NOAA), either as grants or to fund
internal projects. Concerns have been raised that NOAA does not
distribute grants in accordance with the Saltonstall-Kennedy
Fund's governing statute. For example, out of the 50 grants
given out by NOAA in 2016, only 3 have been to improve the
marketing of fish.
---------------------------------------------------------------------------
\4\15 U.S.C. 713c-3
\5\Ibid.
\6\Ibid.
\7\5 U.S.C. App.
---------------------------------------------------------------------------
Summary of Provisions
The American Fisheries Advisory Committee Act would
establish AFAC, which would evaluate grants and make
recommendations on which projects should be funded by the
Saltonstall-Kennedy Fund and how funds should be distributed.
Legislative History
On June 22, 2016, the American Fisheries Advisory Committee
Act was introduced by Senator Sullivan and cosponsored by
Senators Cantwell and Murkowski.
On June 29, 2016, the Committee met in open Executive
Session and, by a voice vote, ordered S. 3087 to be reported
favorably with an amendment (in nature of a substitute).
The Committee adopted six amendments to the measure.
Senator Markey offered four amendments, all of which were
accepted. Those amendments would: require grant recipients to
publicly post the title and abstract of the project; reorganize
geographic areas; require an at-large member of AFAC to
represent the fisheries science community; provide criteria by
which the Secretary of Commerce should evaluate grant
applications; and require the Secretary of Commerce to submit
to AFAC a justification if the recommendations of AFAC were not
followed. An amendment offered by Senator Schatz to require
representatives of recreational fishing interests to be
included on AFAC also was accepted. A second degree amendment
offered by Senator Wicker, and accepted, would realign the
geographic specifications for the makeup of AFAC.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 3087--American Fisheries Advisory Committee Act
S. 3087 would establish the American Fisheries Advisory
Committee within the Department of Commerce (DOC). The
committee would comprise three representatives from each of six
geographic regions and seven at-large members with experience
in the seafood and fisheries industries, as selected by DOC.
Under the bill, the committee would be responsible for
identifying needs of the fishing industry, developing requests
for grants to meet those needs, and reviewing and selecting
applications for an existing grant program for approval by DOC.
Under current law, the National Marine Fisheries Service (NMFS)
within DOC is responsible for those activities. In 2016, the
program awarded 50 grants totaling $11 million. That amount is
derived from permanent authority to spend certain customs
duties that are imposed on imported fishery products.
Based on an analysis of information from DOC, CBO estimates
that the committee's operations would cost $2 million a year
over the 2017-2021 period to operate the grant program However,
because any increases in amounts spent on administering the
grant program would result in a corresponding reduction in
amounts awarded for the grants, CBO estimates that implementing
S. 3087 would have no significant net effect on the federal
budget. Pay-as-you-go procedures apply because enacting the
bill would have an insignificant effect on direct spending.
Enacting S. 3087 would not affect revenues.
CBO estimates that enacting S. 3087 would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
S. 3087 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Stephen Rabent.
The estimate was approved by H. Samuel Papenfuss, Deputy
Director for Budget Analysis.
Regulatory Impact
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
The American Fisheries Advisory Committee Act, as reported,
would cover a person applying for a Saltonstall-Kennedy Fund
grant. In 2015, 50 grants were submitted.
economic impact
Enactment of this legislation is not expected to have any
significant adverse impacts on the Nation's economy.
privacy
This bill would not have any adverse impact on the privacy
of individuals.
paperwork
The Secretary of Commerce would be required to provide a
written document to AFAC justifying a decision not to provide
funding for a grant selected by AFAC.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title.
This section provides the short title of the bill, the
``American Fisheries Advisory Committee Act.''
Section 2. American Fisheries Advisory Committee.
This section would establish AFAC. There would be six
regions within the AFAC. Each region would consist of a group
of States, territories, or possessions of the United States.
Each of the regions would be represented on AFAC by three
members, as well as seven at-large members.
The responsibilities of AFAC would include: identifying the
needs of the seafood industry that may be addressed by a
project funded with grants; developing requests for proposals;
reviewing grant applications; and selecting applications for
approval for grants. AFAC would meet not more than biannually.
All decisions would be subject to approval by the Secretary of
Commerce.
Section 3. Public availability of grant proposals.
This section would require a person awarded a grant under
section 2(c) of the Act of August 11, 1939 (15 U.S.C. 713c-
3(c)) to make publicly available the title and abstract of the
project.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
material is printed in italic, existing law in which no change
is proposed is shown in roman):
ACT OF AUGUST 11, 1939
[53 Stat. 1412]
SEC. 2. PROMOTION OF THE FREE FLOW OF DOMESTICALLY PRODUCED FISHERY
PRODUCTS.
[15 U.S.C.713c-3]
* * * * * * *
(c) Fisheries Research and Development Projects.--
(1) The Secretary shall make grants from the fund
established under subsection (b) to assist persons in
carrying out research and development projects
addressed to any aspect of United States fisheries,
including, but not limited to, harvesting, processing,
marketing, and associated infrastructures.
(2) The Secretary shall--
(A) at least once each fiscal year, receive,
during a 60-day period specified by him,
applications for grants under this subsection;
(B) prescribe the form and manner in which
applications for grants under this subsection
must be made, including, but not limited to,
the specification of the information which must
accompany applications to ensure that the
proposed projects comply with Federal law and
can be evaluated in accordance with paragraph
(3)(B); and
(C) approve or disapprove each such
application before the close of the 120th day
after the last day of the 60-day period
(specified under subparagraph (A)) in which the
application was received.
[(3) No application for a grant under this subsection
may be approved unless the Secretary--
[(A) is satisfied that the applicant has the
requisite technical and financial capability to
carry out the project; and
[(B) evaluates the proposed project as to--
[(i) soundness of design,
[(ii) the possibilities of securing
productive results,
[(iii) minimization of duplication
with other fisheries research and
development projects,
[(iv) the organization and management
of the project,
[(v) methods proposed for monitoring
and evaluating the success or failure
of the project, and
[(vi) such other criteria as the
Secretary may require.]
(3)(A) No application for a grant under this subsection may
be approved unless--
(i) the Secretary is satisfied that the
applicant has the requisite technical and
financial capability to carry out the project;
(ii) the Secretary evaluates the proposed
project as to--
(I) the selections of the Committee
established in subsection (f);
(II) soundness of design;
(III) the possibilities of securing
productive results;
(IV) minimization of duplication with
other fisheries research and
development projects;
(V) the organization and management
of the project;
(VI) methods proposed for monitoring
and evaluating the success or failure
of the project; and
(VII) such other criteria as the
Secretary may require; and
(iii) the application selected for funding
meets the proposal developed by the American
Fisheries Advisory Committee under subsection
(f).
(B) Justification.--If the Secretary fails to provide
funds to a grant selected by the Committee, the
Secretary shall provide a written document to the
Committee justifying the decision.
(4) Each grant made under the subsection shall be
subject to such terms and conditions as the Secretary
may require to protect the interests of the United
States, including, but not limited to, the following:
(A) The recipient of the grant must keep such
records as the Secretary shall require as being
necessary or appropriate for disclosing the use
made of grant funds and shall allow the
Secretary and the Comptroller General of the
United States, or any of their authorized
representatives, access to such records for
purposes of audit and examination.
(B) The amount of a grant may not be less
than 50 percent of the estimated cost of the
project.
(C) The recipient of the grant must submit to
the Secretary periodic project status reports.
(5)(A) If the cost of a project will be shared by the
grant recipient, the Secretary shall accept, as a part
or all of that share, the value of in-kind
contributions made by the recipient, or made available
to, and applied by, the recipient, with respect to the
project.
(B) For purposes of subparagraph (A), in-kind
contributions may be in the form of, but are
not limited to, personal services rendered in
carrying out functions related to, and
permission to use real or personal property
owned by others (for which consideration is not
required) in carrying out the project. The
Secretary shall establish (i) the training,
experience, and other qualifications which
shall be required in order for services to be
considered as in-kind contributions; and (ii)
the standards under which the Secretary will
determine the value of in-kind contributions
for purposes of subparagraph (A).
(C) Any valuation determination made by the
Secretary for purposes of this paragraph shall
be conclusive.
(6) Any person awarded a grant under this subsection
shall make publicly available a title and abstract of
the project to be carried out by the grant funds that
serves as the public justification for funding the
project that includes a statement describing how the
project serves to enhance United States fisheries,
including harvesting, processing, marketing, and
associated infrastructures, if applicable.
(d) National Fisheries Research and Development Program.--
(1) The Secretary shall carry out a national program
of research and development addressed to such aspects
of United States fisheries (including, but not limited
to, harvesting, processing, marketing, and associated
infrastructures), if not adequately covered by projects
assisted under subsection (c), as the Secretary deems
appropriate.
(2) The Secretary shall, after consultation with
appropriate representatives of the fishing industry,
submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on
Merchant Marine and Fisheries of the House of
Representatives, an annual report, that must be
submitted not later than 60 days before the close of
each fiscal year, containing--
(A) the fisheries development goals and
funding priorities under paragraph (1) for the
next fiscal year;
(B) a description of all pending projects
assisted under subsection (c) or carried out
under paragraph (1), in addition to--
(i) a list of those applications
approved and those disapproved under
subsection (c), and the total amount of
grants made, for the current fiscal
year, and
(ii) a statement of the extent to
which available funds were not
obligated or expended by the Secretary
for grants under subsection (c) during
the current fiscal year; and
(C) an assessment of each project assisted
under subsection (c) or carried out under
paragraph (1) that was completed in the
preceding fiscal year regarding the extent to
which (i) the objectives of the project were
attained, and (ii) the project contributed to
fishery development.
(e) Allocation of Fund Moneys.--
(1) Notwithstanding any other provision of law, all
moneys in the fund shall be used exclusively for the
purpose of promoting United States fisheries in
accordance with the provisions of this section, and no
such moneys shall be transferred from the fund for any
other purpose. With respect to any fiscal year, all
moneys in the fund, including the sum of all unexpended
moneys carried over into that fiscal year and all
moneys transferred to the fund under subsection (b) or
any other provision of law with respect to that fiscal
year, shall be allocated as follows:
(A) the Secretary shall use no less than 60
per centum of such moneys to make direct
industry assistance grants to develop the
United States fisheries and to expand domestic
and foreign markets for United States fishery
products pursuant to subsection (c) of this
section; and
(B) the Secretary shall use the balance of
the moneys in the fund to finance those
activities of the National Marine Fisheries
Service which are directly related to
development of the United States fisheries
pursuant to subsection (d) of this section.
(2) The Secretary shall, consistent with the number
of meritorious applications received with respect to
any fiscal year, obligate or expend all of the moneys
in the fund described in paragraph (1). Any such moneys
which are not expended in a given fiscal year shall
remain available for expenditure in accordance with
this section without fiscal year limitation, except
that the Secretary shall not obligate such moneys at a
rate less than that necessary to prevent the balance of
moneys in the fund from exceeding $3,000,000 at the end
of any fiscal year.
(f) American Fisheries Advisory Committee.--
(1) Definitions.--In this subsection:
(A) Committee.--The term ``Committee'' means
the American Fisheries Advisory Committee
established under paragraph (2).
(B) Fishing community.--The term ``fishing
community'' means harvesters, marketers,
growers, processors, recreational fishermen,
charter fishermen, and persons providing them
with goods and services.
(C) Marketing and promotion.--The term
``marketing and promotion'' means an activity
aimed at encouraging the consumption of seafood
or expanding or maintaining commercial markets
for seafood.
(D) Processor.--The term ``processor'' means
any person in the business of preparing or
packaging seafood (including seafood of the
processor's own harvesting) for sale.
(E) Seafood.--The term ``seafood'' means
farm-raised and wild-caught fish or shellfish
harvested in the United States or by a United
States flagged vessel for human consumption.
(2) Establishment.--Not later than 90 days after the
date of the enactment of the American Fisheries
Advisory Committee Act, the Secretary shall establish 6
regions within the American Fisheries Advisory
Committee as follows:
(A) Region 1 shall consist of Alaska, Hawaii,
the Commonwealth of the Northern Mariana
Islands, and the Territories of Guam and
American Samoa.
(B) Region 2 shall consist of Maine, New
Hampshire, Massachusetts, Rhode Island, and
Connecticut.
(C) Region 3 shall consist of Texas, Alabama,
Louisiana, Mississippi, Florida, Arkansas,
Puerto Rico, and territory of the Virgin
Islands.
(D) Region 4 shall consist of California,
Washington, Oregon, and Idaho.
(E) Region 5 shall consist of New Jersey, New
York, Delaware, Maryland, Virginia, North
Carolina, South Carolina, and Georgia.
(F) Region 6 shall consist of Michigan,
Minnesota, Wisconsin, Illinois, Indiana, Ohio,
and Pennsylvania.
(3) Membership.--The Committee shall be composed of
the following members:
(A) Regional representation.--Each of the
regions listed in subparagraphs (A) through (F)
of paragraph (2) shall be represented on the
Committee by 3 members--
(i) who are appointed by the
Secretary;
(ii) who reside in a State or
territory in the region that the member
will represent;
(iii) of which--
(I) one shall have experience
as a seafood harvester;
(II) one shall have
experience as a processor; and
(III) one shall have
experience as a recreational
fisher; and
(iv) that are selected so that the
members of the Committee have
experience or expertise with as many
seafood species as practicable.
(B) At-large members.--The Secretary shall
appoint to the Committee at-large members to
ensure that the Committee fairly reflects the
expertise and interest of the fishing community
located in each region, as follows:
(i) One individual with experience in
mass market food distribution.
(ii) One individual with experience
in mass market food retail or food
service.
(iii) One individual with experience
in the marketing of seafood.
(iv) One individual with experience
in growing seafood.
(v) One individual with experience as
a recreational fisher.
(vi) One individual who is an
employee of the National Marine
Fisheries Service with expertise in
fisheries research.
(vii) One individual that represents
the fisheries science community.
(4) Member terms.--The term for a member of the
Committee shall be 3 years, except that the Secretary
shall designate staggered terms for the members
initially appointed to the Committee.
(5) Responsibilities.--The Committee shall be
responsible for--
(A) identifying needs of the fishing
community that may be addressed by a project
funded with a grant under subsection (c);
(B) developing the request for proposals for
such grants;
(C) reviewing applications for such grants;
and
(D) selecting applications for approval under
subsection (c)(2)(B).
(6) Chair.--The Committee shall elect a chair by a
majority of those voting, if a quorum is present.
(7) Quorum.--A simple majority of members of the
Committee shall constitute a quorum, but a lesser
number may hold hearings.
(8) Meetings.--
(A) Frequency.--The Committee shall meet not
more than 2 times each year.
(B) Location.--The meetings of the Committee
shall rotate between the geographic regions
described under paragraph (2).
(9) Staff.--The Committee may employ staff as
necessary.
(10) Per diem and expenses and funding.--
(A) In general.--A member of the Committee
shall serve without compensation, but shall be
reimbursed in accordance with section 5703 of
title 5, United States Code, for reasonable
travel costs and expenses incurred in
performing duties as a member of the Committee.
(B) Funding.--The reimbursements made under
subparagraph (A) shall be paid with the funds
made available for grants under subsection (c).
(11) Conflict of interest.--The conflict of interest
and recusal provisions set out in section 302(j) of the
Magnuson-Stevens Fishery Conservation and Management
Act (16 U.S.C. 1852(j)) shall apply to any decision by
the Committee and to all members of the Committee as if
each member of the Committee is an affected individual
within the meaning of such section 302(j), except that
in addition to the disclosure requirements of section
302(j)(2)(C) of such Act, (16 U.S.C. 1852(j)(2)(C)),
each member of the Committee shall disclose any
financial interest or relationship in an organization
or with an individual that is applying for a grant
under subsection (c) held by the member of the
Committee, including an interest as an officer,
director, trustee, partner, employee, contractor,
agent, or other representative.
[all]