SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Passenger Vessel 
Development Act''.

SEC. 2. PURPOSE.

    The purpose of this Act is to promote construction and operation of 
United States flag passenger vessels in the United States.

SEC. 3. INTERIM COASTWISE PASSENGER TRADE ENDORSEMENT.

    (a) Endorsement Authorized.--Chapter 121 of title 46, United States 
Code, is amended by inserting after section 12112 the following new 
section:
``Sec. 12113. Interim coastwise passenger trade endorsement
    ``(a) Before December 31, 2000, a certificate of documentation for 
a passenger vessel may be endorsed with an interim coastwise passenger 
trade endorsement, if the vessel is--
            ``(1) eligible for documentation under section 12102;
            ``(2) owned by, or demise chartered for at least 18 months 
        to, a citizen of the United States for purposes of issuing a 
        certificate of documentation with an interim coastwise 
        passenger trade endorsement under section 2(e) of the Shipping 
        Act, 1916 (46 App. U.S.C. 802(e));
            ``(3) at least 250 gross tons (as measured under chapter 
        143 of this title) and has at least 175 berths; and
            ``(4) not a ferry.
    ``(b) As a condition of issuing an interim coastwise passenger 
trade endorsement for a vessel, the Secretary shall require the owner 
or charterer of the vessel to enter into one or more contracts for the 
construction in the United States of one or more vessels having a total 
berthing capacity that is at least 80 percent of the capacity of the 
vessel for which the endorsement is issued.
    ``(c) A vessel with a certificate of documentation with an interim 
coastwise passenger trade endorsement may be employed in the coastwise 
trade in the carriage of passengers.
    ``(d) On termination of a demise charter required under subsection 
(a)(2)(B) for a vessel, an interim coastwise passenger trade 
endorsement for the vessel may be continued for a period not to exceed 
6 months on any terms and conditions that the Secretary of 
Transportation may prescribe.
    ``(e)(1) An interim coastwise passenger trade endorsement issued 
for a vessel under subsection (a) expires--
            ``(A) on the date that is 12 months after the date of 
        issuance of the endorsement, if the owner or demise charter of 
        the vessel fails to submit to the Secretary before the end of 
        that 12-month period a letter that--
                    ``(i) states the interest of the owner or demise 
                charter, respectively, and a representative of a 
                shipyard in the United States to enter into a contract 
                for the construction in the shipyard of at least one 
                passenger vessel that has a total berthing capacity 
                that is at least equivalent to 80 percent of the 
                berthing capacity of the vessel for which the 
                endorsement is issued; and
                    ``(ii) is signed by the owner or demise charterer, 
                respectively, and the representative;
            ``(B) on the date that is 24 months after the date of 
        issuance of the endorsement, if the owner or demise charterer 
        of the vessel does not enter into a contract before the end of 
        that 24-month period for the construction in the United States 
        of one or more passenger vessels described in subparagraph 
        (A)(i);
            ``(C) on the date that is 3 years after the date of 
        issuance of the endorsement, if construction of such a vessel 
        under the contract is not begun before the end of that 3-year 
        period; and
            ``(D) on the date that is 180 days after the date of 
        delivery of a vessel for which construction is completed 
        pursuant to the contract.
    ``(2) The Secretary may extend the period applicable under 
paragraph (1)(B) or (C), or both, for not more than 6 months.
    ``(f) An interim coastwise passenger trade endorsement for a vessel 
shall prohibit the operation of the vessel in any trade that is served 
by another passenger vessel of at least 250 gross tons and having at 
least 175 berths that is documented under section 12106 of this title, 
unless the owner or charterer of the vessel so operated is also the 
owner of the other vessel having the endorsement.
    ``(g) Except as provided in this section, section 2113(b) of this 
title, or section 2(e) or 9(e) of the Shipping Act, 1916, a vessel with 
an interim coastwise passenger trade endorsement shall comply with all 
requirements applicable to a comparable passenger vessel that is 
otherwise documented under the laws of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 121 of title 46, United States Code, is amended by inserting 
after the item relating to section 12112 the following:

``12113. Interim coastwise trade endorsement.''.
    (c) Notice to Secretary of Reflagging.--Section 9 of the Shipping 
Act, 1916 (46 App. U.S.C. 808) is amended--
            (1) in subsection (c) by inserting ``subsection (e),'' 
        after ``Except as provided in''; and
            (2) by adding at the end the following:
    ``(e) Notwithstanding subsection (c), a person may place under a 
foreign registry or operate under the authority of a foreign country, 
without approval of the Secretary of Transportation, any vessel with an 
interim coastwise passenger trade endorsement under section 12113 of 
title 46, United States Code, if the person notifies the Secretary of 
that action--
            ``(1) before the 60-day period ending on the date that 
        action is taken; and
            ``(2) within 12 months after--
                    ``(A) the issuance of the interim coastwise 
                passenger trade endorsement, or
                    ``(B) the beginning of construction of the 
                replacement vessels required for that issuance under 
                section 12113 of title 46, United States Code.''.

SEC. 4. SOLAS CONSTRUCTION STANDARDS.

    Section 2113 of title 46, United States Code, is amended--
            (1) by inserting ``(a)'' before ``If''; and
            (2) by adding at the end the following new subsection:
    ``(b) A documented vessel with an interim coastwise passenger trade 
endorsement--
            ``(1) is deemed to comply with parts B, C, and J of this 
        title if the vessel meets the standards for passenger vessel 
        construction for safety of life at sea issued under the 
        International Maritime Organization convention to which the 
        United States is a party; and
            ``(2) shall be issued by the Secretary the appropriate 
        inspection, load line, and tonnage certificates if that vessel 
        meets those standards.''.

SEC. 5. CITIZENSHIP FOR PURPOSES OF DOCUMENTATION.

    Section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802), is 
amended by adding at the end the following:
    ``(e) For purposes of issuing a certificate of documentation with 
an interim coastwise passenger trade endorsement or a coastwise 
endorsement for transporting passengers in the coastwise trade under 
chapter 121 of title 46, United States Code, the controlling interest 
in a corporation is deemed to be owned or demise chartered by citizens 
of the United States if at least 51 percent of its stock is vested in 
citizens of the United States free from any trust or fiduciary 
obligation in favor of any person not a citizen of the United 
States.''.

SEC. 6. AMENDMENT TO TITLE XI OF THE MERCHANT MARINE ACT, 1936.

    Section 1101(b) of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1271(b)) is amended by striking ``passenger cargo'' and inserting 
``passenger, cargo,''.

SEC. 7. PERMITS FOR VESSELS ENTERING UNITS OF NATIONAL PARK SYSTEM.

    (a) Priority.--Notwithstanding any other provision of law, the 
Secretary of Commerce may not permit a person to operate a vessel in 
any unit of the National Park System except in accordance with the 
following priority:
            (1) First, any person that will operate a vessel that is 
        documented under the laws of, and the home port of which is 
        located in, the United States.
            (2) Second, any person that will operate a vessel--
                    (A) that is documented under the laws of a foreign 
                country, and
                    (B) which on the date of the enactment of this Act 
                is permitted to be so operated.
            (3) Third, any person that will operate a vessel other than 
        a vessel described in paragraph (1) or (2).
    (b) Revocation of Permits for Foreign-Documented Vessels.--The 
Secretary of Commerce shall revoke permission granted by the Secretary 
for the operation of a vessel documented under the laws of a foreign 
country in a unit of the National Park System, if--
            (1) a person requests permission to operate a vessel 
        documented under the laws of the United States in that unit;
            (2) the permission may not be granted because of a limit on 
        the number of permits that may be issued for that operation.
United States Passenger Vessel Development Act - Amends Federal shipping law to authorize endorsement of a certificate of documentation for an eligible passenger vessel with an interim coastwise passenger trade endorsement if it is:  (1) owned by, or demise chartered for at least 18 months to, a U.S. citizen; (2) at least 250 gross tons, with at least 175 berths; and (3) not a ferry. 
Conditions issuance of such an endorsement on the vessel owner's or charterer's entering into one or more contracts for the construction in the United States of one or more vessels having a total berthing capacity at least 80 percent of the capacity of the vessel for which the endorsement is issued.  Conditions renewal of such endorsements on specified progress in vessel construction. 
Requires an interim coastwise passenger trade endorsement to prohibit the operation of the vessel in any trade served by another documented passenger vessel of at least 250 gross tons and having at least 175 berths, unless the owner or operator of the vessel so operated is also the owner or operator of the other vessel having the endorsement. 
Amends the Shipping Act, 1916 to authorize a person to place under a foreign registry or operate under the authority of a foreign country, without the Secretary of Transportation's approval, any vessel with an interim coastwise passenger trade endorsement if such person notifies the Secretary within certain deadlines. 
Amends Federal shipping law to require the Secretary to issue the appropriate inspection, load line, and tonnage certificates to any documented vessel with an interim coastwise passenger trade endorsement that meets the standards for passenger vessel construction for safety of life at sea (SOLAS) issued under the International Maritime Organization convention to which the United States is a party. 
Amends the Shipping Act, 1916 to define U.S.  citizenship of a corporation for purposes of documentation with an interim coastwise passenger trade endorsement as the vesting of at least 51 percent of the corporation's stock in U.S. citizens free from any trust or fiduciary obligation in favor of any non-citizen. 
Prohibits the Secretary of Commerce from permitting a person to operate a vessel in any unit of the National Park System except in accordance with a specified priority giving first place to U.S.-documented vessels. Requires the Secretary to revoke permission for operation of a foreign-documented vessel if:  (1) a person requests permission to operate a U.S.-documented vessel; and (2) the permission may not be granted because the number of permits that may be issued is limited.
United States Passenger Vessel Development Act