To amend the Internal Revenue Code of 1986 to impose an excise tax on the international transportation of individuals by water, to establish the Caribbean Ports and Infrastructure Improvement Trust Fund and the Water and Marine Wildlife Protection Trust Fund, and for other purposes.

Summary: Pay Back America Act of 2004 - Amends the Internal Revenue Code to impose a per passenger tax on covered international voyages of commercial passenger vessels.

Establishes the Caribbean Ports and Infrastructure Protection Trust Fund (Caribbean Fund) and the Water and Marine Wildlife Protection Trust Fund (Wildlife Fund) in the Treasury. Appropriates to those funds a percentage of the above-referenced taxes.

Authorizes the Secretary of of the Treasury to make specified payments from the Caribbean Fund to the Bahamas, the Cayman Islands, Barbados, Jamaica, Saint Lucia, Grenada, Antigua and Barbuda, Belize, the British Virgin Islands, Dominica, Guyana, Haiti, Montserrat, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Anguilla, Bermuda, and the Turks and Caicos Islands.

Requires amounts in the Wildlife Fund to be used for ocean waste cleanup or enforcement of restrictions on ocean dumping.

Directs the Secretary of the department in which the Coast Guard is operating to issue regulations requiring cruise vessels entering U.S. ports or places to have: (1) posted notice that passengers may report illegal dumping from the vessel by calling a toll-free number; and (2) included such notice on each ticket sold.

Prohibits: (1) vessels from entering U.S. ports or places absent properly functioning pollution prevention equipment or compliance with notice requirements; (2) false entries in a vessel's oil record book or record of shore-side disposal; (3) operation of cruise vessels in U.S. foreign or domestic commerce that fail to comply with notice requirements.

Requires biannual inspections of vessels.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pay Back America Act of 2004''.

SEC. 2. IMPOSITION OF EXCISE TAX ON INTERNATIONAL TRANSPORTATION BY 
              WATER.

    (a) In General.--Chapter 36 of the Internal Revenue Code of 1986 
(relating to certain other excise taxes) is amended by inserting after 
subchapter B the following new subchapter:

         ``Subchapter C--International Transportation by Water

``Sec. 4475. Imposition of tax.
``Sec. 4476. Definitions.

``SEC. 4475. IMPOSITION OF TAX.

    ``(a) In General.--There is hereby imposed a tax of $3 per 
passenger on a covered international voyage.
    ``(b) By Whom Paid.--The tax imposed by this section shall be paid 
by the person providing the covered international voyage.
    ``(c) Time of Imposition.--The tax imposed by this section shall be 
imposed only once for each passenger on a covered international voyage, 
either at the time of first embarkation or disembarkation in the United 
States.

``SEC. 4476. DEFINITIONS.

    ``For purposes of this subchapter--
            ``(1) Covered international voyage.--The term `covered 
        international voyage' means a voyage of a commercial passenger 
        vessel if--
                    ``(A) such voyage extends over 1 or more nights,
                    ``(B) passengers embark or disembark the vessel in 
                the United States, and
                    ``(C) passengers embark or disembark the vessel 
                outside the United States.
        Such term shall not include any voyage of any vessel owned or 
        operated by the United States, a State, or any agency or 
        subdivision thereof.
            ``(2) Passenger vessel.--The term `passenger vessel' means 
        any vessel having berth or stateroom accommodations for more 
        than 16 passengers.''.
    (b) Conforming Amendment.--Section 6806 of such Code is amended by 
striking ``subchapter B of chapter 36'' and inserting ``subchapter B or 
C of chapter 36''.
    (c) Effective Date.--The amendments made by this section shall 
apply to passengers embarking or disembarking in the United States 
after the date of the enactment of this Act.

SEC. 3. ESTABLISHMENT OF TRUST FUNDS.

    (a) In General.--Chapter 98 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new sections:

``SEC. 9511. CARIBBEAN PORTS AND INFRASTRUCTURE PROTECTION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Caribbean Ports 
and Infrastructure Protection Trust Fund', consisting of such amounts 
as may be appropriated or credited to such fund as provided in this 
section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Caribbean Ports and Infrastructure Protection Trust Fund amounts 
equivalent to 32 percent of the taxes received in the Treasury under 
subchapter C of chapter 36 (relating to international transportation by 
water).
    ``(c) Expenditures From Trust Fund.--The Secretary shall make 
payments, not less frequently than annually, from the Caribbean Ports 
and Infrastructure Protection Trust Fund to--
            ``(1) the Bahamas, Cayman Islands, Barbados, Jamaica, Saint 
        Lucia, and Grenada, each in an amount equivalent to the sum 
        of--
                    ``(A) 3 percent of the taxes received in the 
                Treasury under subchapter C of chapter 36, and
                    ``(B) any amount credited to such fund under 
                section 9602(b) which is attributable to the amount 
                described in subparagraph (A), and
            ``(2) Antigua and Barbuda, Belize, British Virgin Islands, 
        Dominica, Guyana, Haiti, Montserrat, Saint Kitts and Nevis, 
        Saint Vincent and the Grenadines, Suriname, Trinidad and 
        Tobago, Anguilla, Bermuda, and Turks and Caicos Islands, each 
        in an amount equivalent to the sum of--
                    ``(A) 1 percent of the taxes received in the 
                Treasury under subchapter C of chapter 36, and
                    ``(B) any amount credited to such fund under 
                section 9602(b) which is attributable to the amount 
                described in subparagraph (A).

``SEC. 9512. WATER AND MARINE WILDLIFE PROTECTION TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Water and Marine 
Wildlife Protection Trust Fund', consisting of such amounts as may be 
appropriated or credited to such fund as provided in this section or 
section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Water and Marine Wildlife Protection Trust Fund amounts equivalent 
to 33 percent of the taxes received in the Treasury under subchapter C 
of chapter 36 (relating to international transportation by water).
    ``(c) Expenditures From Trust Fund.--Amounts in the Water and 
Marine Wildlife Protection Trust Fund shall be available, as provided 
in appropriation Acts, for the purposes of making expenditures to carry 
out environmental programs which provide for the clean up of waste in 
the oceans or the enforcement of restrictions on the dumping of waste 
in the oceans.''.
    (b) Clerical Amendment.--The table of sections for chapter 98 of 
such Code is amended by adding at the end the following new items:

``Sec. 9511. Caribbean Ports and Infrastructure Protection Trust Fund.
``Sec. 9512. Water and Marine Wildlife Protection Trust Fund.''.

SEC. 4. REQUIREMENTS RELATING TO PREVENTION OF POLLUTION FROM VESSELS.

    (a) Findings.--The Congress finds the following:
            (1) Pollution prevention devices required on vessels are 
        designed to reduce pollution. If they malfunction or are not 
        functioning then they cannot prevent pollution.
            (2) Ensuring that these anti-pollution devices are 
        functioning will ensure a reduction in pollution and will also 
        give authorities advanced warning of pollution that has 
        occurred.
            (3) Requiring biannual inspections of pollution prevention 
        equipment on vessels will ensure that such equipment is fully 
        operational and can ensure that it will perform its designed 
        task to its full potential.
            (4) Department of Justice officials have found in a number 
        of cases fabricated entries in vessel oil record books that 
        give a false sense of compliance with MARPOL discharge 
        limitations.
            (5) Recording shore-side disposal of garbage and sludge 
        from vessels will help to identify violators and help to deter 
        others from unlawful discharges at sea.
            (6) Making violations of this Act a felony will have a 
        deterrent effect. Imposing stiff fines will also accomplish 
        that goal.
    (b) Toll-Free Telephone Number for Reporting Illegal Dumping.--The 
Secretary of the department in which the Coast Guard is operating shall 
prescribe regulations by not later than 6 months after the date of the 
enactment of this Act that require--
            (1) that each cruise vessel that enters a port or place in 
        the United States while operating in the foreign or domestic 
        commerce of the United States must have posted, in elevators 
        and other common areas of the vessel, a notice stating--
                    (A) that any passenger who witnesses illegal 
                dumping from the vessel into waters of the United 
                States may report that dumping to the Coast Guard by 
                calling a toll-free telephone number of the National 
                Response Center or another appropriate office of the 
                Coast Guard; and
                    (B) such telephone numbers; and
            (2) that the notice prescribed under paragraph (1) must be 
        included on each ticket for carriage of a passenger on such a 
        vessel in such commerce.
    (c) Prohibitions.--It shall be unlawful--
            (1) for any vessel to enter a port or place in the United 
        States if--
                    (A) the vessel does not have on board all pollution 
                prevention equipment otherwise required by law that 
                functions in proper functioning condition; or
                    (B) does not comply with requirements that apply to 
                the vessel under regulations prescribed under 
                subsection (b);
            (2) to make any false entry in--
                    (A) any oil record book for a vessel; or
                    (B) any record of a vessel of shore-side disposal 
                of garbage or sludge from the vessel;
            (3) to operate any cruise vessel in the foreign or domestic 
        commerce of the United States that does not comply with any 
        requirement that applies to the vessel under regulations 
        prescribed subsection (b); or
            (4) to sell a ticket referred to in paragraph (2) of 
        subsection (b) that does not include any notice required under 
        regulations prescribed under subsection (b).
    (d) Inspections.--The Secretary of the department in which the 
Coast Guard is operating shall biannually inspect each vessel that is 
documented under the laws of the United States to determine whether--
            (1) the vessel has on board all pollution prevention 
        equipment required under subsection (c);
            (2) such equipment functions properly; and
            (3) in the case of a cruise vessel, the vessel complies 
        with requirements that apply to the vessel under regulations 
        prescribed under subsection (b).
    (e) Penalty.--Any person that violates this section, and the owner 
or operator of a vessel that violates this section, shall be fined 
under title 18, United States Code, or imprisoned for one year and a 
day (or such longer period as may apply under another provision of 
law), or both.
    (f) Relationship to Other Law.--This section is not intended to 
affect the application of any other provision of law.
    (g) Definitions.--In this section:
            (1)  cruise vessel.--
                    (A) In general.--The term ``cruise vessel'' means a 
                passenger vessel (as defined in section 2101(22) of 
                title 46, United States Code), that--
                            (i) is authorized to carry at least 250 
                        passengers; and
                            (ii) has onboard sleeping facilities for 
                        each passenger.
                    (B) Exclusions.--The term ``cruise vessel'' does 
                not include--
                            (i) a vessel of the United States operated 
                        by the Federal Government; or
                            (ii) a vessel owned and operated by the 
                        government of a State.
            (2) Passenger.--
                    (A) In general.--The term ``passenger'' means any 
                person on board a cruise vessel for the purpose of 
                travel.
                    (B) Inclusions.-- The term ``passenger'' includes--
                            (i) a paying passenger; and
                            (ii) a staffperson, such as a crew member, 
                        captain, or officer.