Bill 684

106^th CONGRESS

To amend title 11, United States Code, to provide for family fishermen, and to make chapter 12 of title 11, United States Code, permanent.

March 23, 1999

Ms. COLLINS introduced the following bill; which was read twice and referred to the Committee on the Judiciary

To amend title 11, United States Code, to provide for family fishermen, and to make chapter 12 of title 11, United States Code, permanent.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. AMENDMENT TO MAKE CHAPTER 12 OF TITLE 11, UNITED STATES CODE, PERMANENT.

(a) REENACTMENT- Chapter 12 of title 11, United States Code, as reenacted by section 149 of division C of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (Public Law 105-277), and amended by this Act, is reenacted.
(b) EFFECTIVE DATE- Subsection (a) shall take effect on April 1, 1999.
(c) CONFORMING AMENDMENT- Section 302 of the Bankruptcy, Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) is amended by striking subsection (f).

(a) DEFINITIONS- Section 101 of title 11, United States Code, is amended—

(1) by inserting after paragraph (7) the following:

• ‘(7A) ‘commercial fishing operation’ includes—
• ‘(A) the catching or harvesting of fish, shrimp, lobsters, urchins, seaweed, shellfish, or other aquatic species or products; and
• ‘(B) aquaculture activities consisting of raising for market any species or product described in subparagraph (A);’;
• ‘(7B) ‘commercial fishing vessel’ means a vessel used by a fisherman to carry out a commercial fishing operation;’;

(2) by inserting after paragraph (19) the following:

• ‘(19A) ‘family fisherman’ means—
• ‘(A) an individual or individual and spouse engaged in a commercial fishing operation—

(i) whose aggregate debts do not exceed $1,500,000 and not less than 80 percent of whose aggregate noncontingent, liquidated debts (excluding a debt for the principal residence of such individual or such individual and spouse, unless such debt arises out of a commercial fishing operation), on the date the case is filed, arise out of a commercial fishing operation owned or operated by such individual or such individual and spouse; and ‘
(ii) who receive from such commercial fishing operation more than 50 percent of such individual’s or such individual’s and spouse’s gross income for the taxable year preceding the taxable year in which the case concerning such individual or such individual and spouse was filed; or

• (B) a corporation or partnership—
  (i) in which more than 50 percent of the outstanding stock or equity is held by—
  • (I) 1 family that conducts the commercial fishing operation; or
    (II) 1 family and the relatives of the members of such family, and such family or such relatives conduct the commercial fishing operation; and

  (ii)
  (I) more than 80 percent of the value of its assets consists of assets related to the commercial fishing operation;
  (II) its aggregate debts do not exceed $1,500,000 and not less than 80 percent of its aggregate noncontingent, liquidated debts (excluding a debt for 1 dwelling which is owned by such corporation or partnership and which a shareholder or partner maintains as a principal residence, unless such debt arises out of a commercial fishing operation), on the date the case is filed, arise out of a commercial fishing operation owned or operated by such corporation or such partnership; and
  (III) if such corporation issues stock, such stock is not publicly traded;’; and

(3) by inserting after paragraph (19A) the following:

‘(19B) ‘family fisherman with regular annual income’ means a family fisherman whose annual income is sufficiently stable and regular to enable such family fisherman to make payments under a plan under chapter 12 of this title;’.

(b) WHO MAY BE A DEBTOR- Section 109(f) of title 11, United States Code, is amended by inserting ‘or family fisherman’ after ‘family farmer’.

(c) CHAPTER 12- Chapter 12 of title 11, United States Code, is amended—

(1) in the chapter heading, by inserting ‘OR FISHERMAN’ after ‘FAMILY FARMER’;
(2) in section 1201, by adding at the end the following:

• ‘(e)(1) Notwithstanding any other provision of law, for purposes of this subsection, a guarantor of a claim of a creditor under this section shall be treated in the same manner as a creditor with respect to the operation of a stay under this section.
• ‘(2) For purposes of a claim that arises from the ownership or operation of a commercial fishing operation, a co-maker of a loan made by a creditor under this section shall be treated in the same manner as a creditor with respect to the operation of a stay under this section.’;

(3) in section 1203, by inserting ‘or commercial fishing operation’ after ‘farm’;

(4) in section 1206, by striking ‘if the property is farmland or farm equipment’ and inserting ‘if the property is farmland, farm equipment, or property of a commercial fishing operation (including a commercial fishing vessel)’; and

(5) by adding at the end the following:

• ‘Sec. 1232. Additional provisions relating to family fishermen
• ‘(a)(1) Notwithstanding any other provision of law, except as provided in subsection ©, with respect to any commercial fishing vessel of a family fisherman, the debts of that family fisherman shall be treated in the manner prescribed in paragraph (2).
• ‘(2)(A) For purposes of this chapter, a claim for a lien described in subsection (b) for a commercial fishing vessel of a family fisherman that could, but for this subsection, be subject to a lien under otherwise applicable maritime law, shall be treated as an unsecured claim.
• ‘(B) Subparagraph (A) applies to a claim for a lien resulting from a debt of a family fisherman incurred on or after the date of enactment of this chapter.
• ‘(b) A lien described in this subsection is—

‘(1) a maritime lien under subchapter III of chapter 313 of title 46, United States Code, without regard to whether that lien is recorded under section 31343 of title 46, United States Code; or (2) a lien under applicable State law (or the law of a political subdivision thereof).© Subsection (a) shall not apply to—(1) a claim made by a member of a crew or a seaman including a claim made for—(A) wages, maintenance, or cure; or (B) personal injury; or (2) a preferred ship mortgage that has been perfected under subchapter II of chapter 313 of title 46, United States Code. (d) For purposes of this chapter, a mortgage described in subsection ©(2) shall be treated as a secured claim.’.

(d) CLERICAL AMENDMENTS-

(1) TABLE OF CHAPTERS- In the table of chapters for title 11, United States Code, the item relating to chapter 12, is amended to read as follows:   1201.

(2) TABLE OF SECTIONS- The table of sections for chapter 12 of title 11, United States Code, is amended by adding at the end the following new item:

1232. Additional provisions relating to family fishermen.