• “(b) in relation to any quota, a mortgage, variation of mortgage, discharge of mortgage, or assignment of mortgage over the quota:.”.

• “(4) The amount of an eligible person's preferential allocation right must be reduced in accordance with the following formula:

  a
  –	x c = d
  b

  where—

  • a is the eligible person's current preferential allocation right for the stock (in kilogrammes)

  • b is the total of all preferential allocation rights for the stock (in kilogrammes)

  • c is the lesser of—

    • (a) the amount of the increase in the total allowable commercial catch for the stock (in kilogrammes):

    • (b) the total of all preferential allocation rights for the stock (in kilogrammes)

  • d is the amount of the reduction in the eligible person's preferential allocation right (in kilogrammes).

• “(4A) An eligible person's preferential allocation right expires if the amount of that right equals zero.

• “(4B) An eligible person is not entitled to receive, in the aggregate under subsection (2), quota shares whose quota weight equivalent (calculated at the time of transfer of the relevant shares to the eligible person) exceeds the amount of preferential allocation right held by that person on the commencement of this section or on the date of allocation of quota to that person under section 337, as the case may be.”

• “(e) the quota owners have also notified their intention to seek an alteration to—

  • “(i) persons who are noted on the Quota Register as having an interest in the quota to which the proposed alteration relates; and

  • “(ii) parties to leases or transfers registered on the Transitional Register in respect of quota to which the proposed alteration relates.”

• “(d) the interests of aggrieved—

  • “(i) quota owners who hold quota shares to which the proposed alteration relates; and

  • “(ii) parties to leases or transfers registered on the Transitional Register in respect of quota to which the proposed alteration relates:”.

• “(d) has also notified his or her intention to recommend the alteration of the quota management area or areas to—

  • “(i) persons who are noted on the Quota Register as having an interest in the quota to which the proposed alteration relates; and

  • “(ii) parties to leases or transfers registered on the Transitional Register in respect of quota to which the proposed alteration relates.”

• “(7) For the purposes of this section, a person registered as the owner of provisional individual transferable quota by virtue of section 162 is treated as the owner of the provisional catch history to which the quota relates.”

• “(2) A tender that complies with subsection (1) is to be treated as part of the registered fishing vessel with which it is used, or is intended to be used.”

• “(1) No New Zealand national may use a vessel that is not registered under the Ship Registration Act 1992, or a tender of that vessel,—

  • “(a) to take (by any method), on the high seas, any fish, aquatic life, or seaweed for sale, except in accordance with an authorisation issued by a state to which subsection (2) applies; or

  • “(b) to transport any fish, aquatic life, or seaweed taken on the high seas, unless that fish, aquatic life, or seaweed was taken in accordance with an authorisation issued by a state to which subsection (2) applies.”

• “(v) every assignment of the mortgage; and

• “(vi) the time and date of discharge of the mortgage:”.

• “(4) Provisional individual transferable quota is not transferable except by operation of law.”

“138A Assignment of mortgages

• A mortgagee may assign to another person the mortgagee's rights, interests, and obligations under that mortgage by a memorandum of assignment in the approved form.”

• “(2) Regulations under section 297 may prescribe when an instrument is to be treated as received for registration.”

• “(2) For the purposes of subsection (1)(c), the mortgagor is treated as a party to a transaction that is an assignment.”

• “(2) After registration under subsection (1), the quota or annual catch entitlement remains subject to any registered caveat or mortgage.

• “(3) This section overrides sections 132(1)(b), 133(1)(b), 136(2), and 148(1).”

• “(a) the Crown, if the register was kept by the chief executive at the relevant time; or

• “(b) the approved service delivery organisation, if the functions, duties, and powers connected with the keeping of the register were performed or exercised by that organisation under section 296B at the relevant time”.

• “(b) owners, caveators, and mortgagees of quota, and owners and caveators of annual catch entitlements:”.

• “(qa) prescribing, for the purposes of section 158(1), when an instrument (including an application) is to be treated as having been received for registration, and different rules may be prescribed for different types of instruments and for instruments presented by different means:”.

• “(aa) if it is proposed that the levy will be imposed on the basis of 2 or more of the units of measurement in paragraphs (a)(i) to (iii), the Minister may approve the conversion of 1 or more of those units into another unit, being 1 of the units in paragraph (a)(i) to (iii) or another unit, if—

  • “(i) the Minister is satisfied that it is reasonable to convert to another unit of measurement; and

  • “(ii) the Minister is satisfied that the method of conversion is reasonable; and

  • “(iii) the method of conversion is stated in the ballot paper:

• “(b) section 5(2)(af), and (ah) to (ak) of that Act is complied with if the Minister is satisfied that, during any period before the support referendum that the Minister thinks fit, supporters held or landed (as the case may be) more than half of whichever of the following is specified in the ballot paper:

  • “(i) the quota shares:

  • “(ii) the value of the commodity:

  • “(iii) the greenweight or meatweight of the commodity:

  • “(iv) 1 or more units of measurement in paragraphs (i) to (iii) converted into another unit of measurement under paragraph (aa).”

• “d is the sum of the amounts under item a for all persons to be allocated quota under this section.”

• “(1) On the first day of the fishing year in which section 66 comes into force, the chief executive must allocate, to each quota owner, 90% of that person's annual catch entitlement generated under section 66 for stocks—

  • “(a) with a fishing year beginning on 1 October; and

  • “(b) to which section 28V(1) of the Fisheries Act 1983 applied.

• “(2) As soon as practicable after the allocation under subsection (1), the chief executive must allocate to each person who receives an amount of annual catch entitlement under subsection (1) for any stock a further amount of annual catch entitlement for the stock calculated according to the following formula:

  a — b = c

  where—

  • a is the annual catch entitlement for the stock remaining unallocated in respect of that quota owner (in kilogrammes)

  • b is the amount that was taken in excess of quota under the quota owner's quota under an authority given under section 28V(1) or a permission given under section 28V(2) of the Fisheries Act 1983, in the immediately preceding fishing year, calculated using that fishing year's annual balance (excluding any overfishing right) in accordance with the Fisheries (Catch Against Quota) Regulations 1993 (in kilogrammes)

  • c is the amount of annual catch entitlement to be allocated to the quota owner and, if c is a negative number, then c must be read as zero kilogrammes.

• “(7) In respect of the allocation of annual catch entitlement in the first fishing year in which section 66 comes into force,—

  • “(a) section 67 does not apply to stocks to which this section applies; and

  • “(b) section 67A does not apply.”

“340AA Exceptions to minimum holdings of annual catch entitlement for certain paua stocks

• “(1) Despite section 74, a person allocated annual catch entitlement under section 340(1) or transferred annual catch entitlement under section 347A(1)(a) for any of PAU 1 to PAU 4, PAU 6, PAU 7, and PAU 10 may fish under the authority of the lesser of either—

  • “(a) the amount of annual catch entitlement allocated or transferred; or

  • “(b) the minimum holding of annual catch entitlement for that stock specified in the Eighth Schedule.

  “(2) Subsection (1) applies during the period beginning on the commencement of section 66 and ending on the earlier of—

  • “(a) the allocation of annual catch entitlement under section 340(2):

  • “(b) the transfer of annual catch entitlement under section 347(1)(b):

  • “(c) 15 November following the commencement of section 66.

  “(3) During the period specified in subsection (2), the requirements of section 74(2) to 74(5) apply, but do not affect the authority to fish under subsection (1).”

• “(1A) The chief executive must increase or decrease the allocation under subsection (1) to reflect any changes to the quota owner's underfishing entitlements for the period—

  • “(a) beginning on the first day of the fishing year in which section 66 commences; and

  • “(b) ending on the day before the commencement of section 66.

• “(1B) Subsection (1A) applies to stocks—

  • “(a) with a fishing year beginning on 1 April; and

  • “(b) that have underfishing entitlements under section 28V(6) of the Fisheries Act 1983.”

• “(5A) The chief executive must also refuse to receive for registration (whether before or after the date notified under subsection (5)) any notification of the transfer or lease of quota, and any related document, if the transfer, or lease, or related document is expressed to take effect on or after 1 October in the year in which Part VIII comes into force.”

• “(1) On 1 October in the calendar year in which Part 8 of this Act comes into force, but before actioning any other quota transactions, the chief executive must—

  • “(a) convert the individual transferable quota or provisional catch history owned by each person into quota shares in accordance with subsections (2) and (2A); and

  • “(b) determine entitlements to quota shares on the part of the chief executive and the Commission under subsections (2B) and (2C); and

  • “(c) record in the relevant Quota Register the number of quota shares owned by each person after applying paragraphs (a) and (b).”

• “(2A) If a stock has a total allowable commercial catch of zero tonnes, provisional catch history must be converted into shares according to the following formula:

  	a
  	—	x	80,000,000	=	c
  	b

  where—

  • a is the amount of provisional catch history allocated to the person under Part IV

  • b is the total amount of provisional catch history held by all eligible commercial fishers

  • c is the number of quota shares to which the quota owner is entitled for the stock concerned.

• “(2B) After the conversion in subsection (2A), the Commission is entitled to 20 million quota shares in the stock concerned.

• “(2C) If a stock has a total allowable commercial catch of zero tonnes and no provisional catch history has been allocated under Part IV, the chief executive is entitled to 80 million quota shares in the stock and the Commission is entitled to 20 million quota shares in the stock.”

• “(3) Despite anything in any other enactment or rule of law,—

  • “(a) the registration of quota shares under this section does not constitute an allocation of new quota; and

  • “(b) quota shares registered under this section have the same characteristics as quota allocated under section 47.”

• “(4) A lease recorded in the Transitional Register, or any rights, interests, or obligations in respect of that lease, cannot be assigned.”

• “(5) A reduction of term under subsection (3) has no effect until it is registered by the chief executive on the Transitional Register.

• “(6) A reduction of term under subsection (3) must not be registered on the Transitional Register unless a party to the lease applies in the approved form (if any) to the chief executive and the application is accompanied by the prescribed fee (if any).”

• “(7A) A transfer or lease registered on the Transitional Register is cancelled if—

  • “(a) the total allowable commercial catch for the stock concerned is reduced to zero under section 20; or

  • “(b) the quota for the stock concerned is cancelled because of an alteration of a quota management area under section 25.

• “(7B) The chief executive must notify the parties to a transfer or lease registered on the Transitional Register if the lease or transfer is cancelled under this Part.”

• “(8A) The amount of quota or annual catch entitlement to which a lease or other arrangement relates must be reduced in the same proportion as the reduction in the quota holder's quota bears to the total quota shares of the holder immediately before the reduction.

• “(8B) Subsection (8A) applies if—

  • “(a) a quota holder's quota is reduced under section 52; and

  • “(b) that person has entered into a lease or other arrangement recorded on the Transitional Register in relation to that quota; and

  • “(c) by virtue of that lease or other arrangement, another person is, or may become, entitled to acquire an amount of quota shares outright under section 348 or annual catch entitlement under section 347.”

• “(3) The chief executive must cancel registration of the lease and any sublease and not transfer any annual catch entitlement if—

  • “(a) the lessor does not own an amount of annual catch entitlement equal to, or in excess of, the amount of quota that is subject to the lease or sublease (as recorded in the Transitional Register); or

  • “(b) a caveat is registered over an amount of the lessor's annual catch entitlement preventing the transfer of an amount of annual catch entitlement equal to, or in excess of, the amount of quota that is subject to the lease or sublease (as recorded in the Transitional Register).”

• “(5) A transfer of annual catch entitlement under this section must be actioned in the order specified in regulations made under section 297(1)(sa).”

• “(1A) Subsection (1) also applies to subleases, in which case,—

  • “(a) item a is to be read as if it refers to the further amount of annual catch entitlement that is transferred to the sublessor under subsection (1)(b) or, in the case of subsequent subleases, the further amount of annual catch entitlement that is transferred to a sublessor when this subsection applies; and

  • “(b) item c is to be read as if it refers to the amount of individual transferable quota that is subject to the lease from which the sublease derives directly.”

• “(3) This section applies only to leases in relation to stocks to which section 340 applies.”