SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States-Flag Passenger Vessel 
Act of 1994''.

SEC. 2. COASTWISE TRANSPORTATION OF PASSENGERS.

    (a) In General.--Section 8 of the Act of June 19, 1886 (46 U.S.C. 
App. 289), is amended to read as follows:

``SEC. 8. COASTWISE TRANSPORTATION OF PASSENGERS.

    ``(a) In General.--Except as otherwise provided by law, a vessel 
may transport passengers in coastwise trade only if--
            ``(1) the vessel meets the requirements of section 27 of 
        the Merchant Marine Act, 1920, and section 2 of the Shipping 
        Act, 1916, for engaging in coastwise trade; and
            ``(2) in the case of a vessel that is at least 5 net tons, 
        the vessel is documented under chapter 121 of title 46, United 
        States Code, with a coastwise endorsement.
    ``(b) Penalties.--
            ``(1) Civil penalty.--A person operating a vessel in 
        violation of this section shall be subject to a civil penalty 
        of $1,000 for each passenger transported in violation of this 
        section.
            ``(2) Forfeiture.--A vessel operated in knowing violation 
        of this section, and its equipment, shall be subject to seizure 
        by, and forfeiture to, the United States.
    ``(c) Definitions.--For purposes of this section--
            ``(1) the term `coastwise trade' includes--
                    ``(A) transportation of a passenger from a place in 
                any State or possession of the United States and 
                returning to that place, if during the transportation 
                no passenger departs from the vessel in a foreign 
                country; and
                    ``(B) transportation of a passenger between points 
                in the United States, either directly or by way of a 
                foreign port; and
            ``(2) the term `passenger' does not include a travel agent 
        on a voyage if--
                    ``(A) the purpose of the voyage is to promote 
                future trips on the vessel;
                    ``(B) money is not paid to the vessel owner or 
                charterer for the voyage; and
                    ``(C) the voyage goes beyond the territorial sea of 
                the United States.''.
    (b) Exception.--
            (1) In general.--Notwithstanding the amendment made by 
        subsection (a), an ineligible vessel may engage in the 
        transport of passengers in coastwise trade (as those terms are 
        defined in that amendment) on a trade route, if--
                    (A) the vessel engaged, in the period beginning 
                January 1, 1990, and ending March 9, 1993, in the 
                transport of passengers in coastwise trade on the trade 
                route; and
                    (B) not later than 1 year after the date of 
                enactment of this Act, the owner files with the 
                Secretary of Transportation an affidavit certifying 
                compliance with subparagraph (A) and listing each trade 
                route on which the vessel engaged in transport of 
                passengers in coastwise trade in the period described 
                in subparagraph (A).
            (2) Scheduled expiration of exception.--Paragraph (1) does 
        not apply to an ineligible vessel after the latest of--
                    (A) January 1, 2000;
                    (B) the date that is 15 years after the date of 
                completion of construction of the vessel; or
                    (C) the date that is 15 years after the date of 
                completion of any major conversion of the vessel that 
                is begun before the date of enactment of this Act.
            (3) Expiration of exception for failure to recrew.--
        Paragraph (1) does not apply to an ineligible vessel after the 
        date that is 5 years after the date of enactment of this Act, 
        unless--
                    (A) each individual employed on the vessel after 
                the 1-year period beginning on the date of enactment of 
                this Act is either a citizen of the United States or an 
                alien lawfully admitted to the United States for 
                permanent residence; and
                    (B) not more than 25 percent of the total number of 
                individuals employed on the vessel after the 1-year 
                period beginning on the date of enactment of this Act 
                are aliens lawfully admitted to the United States for 
                permanent residence.
            (4) Termination of exception upon entry of replacement.--
        Paragraph (1) does not apply to an ineligible vessel with 
        respect to a trade route after the date of entry into service 
        on the trade route of an eligible vessel, if--
                    (A) the eligible vessel has a passenger carrying 
                capacity that is equal to not less than 75 percent of 
                the passenger carrying capacity of the ineligible 
                vessel, as determined by the Secretary of the 
                department in which the Coast Guard is operating;
                    (B) the person that is the owner or charterer of 
                the eligible vessel submits to the Secretary of 
                Transportation, not later than 270 days before the date 
                of entry into service--
                            (i) a notice of the intent of the person to 
                        enter into that service; and
                            (ii) such evidence as the Secretary may 
                        require that the person is offering and 
                        advertising the service;
                    (C) any individual employed on the ineligible 
                vessel after the 1-year period beginning on the date of 
                enactment of this Act--
                            (i) is not a citizen of the United States; 
                        and
                            (ii) is not an alien lawfully admitted to 
                        the United States for permanent residence; and
                    (D) more than 25 percent of the total number of 
                individuals employed on the ineligible vessel after the 
                1-year period beginning on the date of enactment of 
                this Act are aliens lawfully admitted to the United 
                States for permanent residence.
            (5) Termination of exception upon sale of vessel.--
        Paragraph (1) does not apply to an ineligible vessel after any 
        date on which the vessel is sold after the date of enactment of 
        this Act.
            (6) Definitions.--For purposes of this subsection--
                    (A) the term ``eligible vessel'' means a vessel 
                that is eligible under chapter 121 of title 46, United 
                States Code, for a certificate of documentation 
                authorizing the vessel to engage in coastwise trade;
                    (B) the term ``ineligible vessel'' means a vessel 
                that is not eligible under chapter 121 of title 46, 
                United States Code, for a certificate of documentation 
                authorizing the vessel to engage in coastwise trade; 
                and
                    (C) the term ``major conversion'' has the same 
                meaning given such term by section 2101(14a) of title 
                46, United States Code.
United States-Flag Passenger Vessel Act of 1994 - Amends Federal law to permit a vessel to transport passengers in coastwise trade only if:  (1) the vessel meets certain requirements under the Merchant Marine Act, 1920 and the Shipping Act, 1916 for engaging in such trade; and (2) for a vessel that is at least five net tons, it is documented with a coastwise endorsement.  Sets forth a civil penalty of $1,000 per passenger transported in violation of this Act.  Sets forth terminable exceptions to such requirements for certain ineligible vessels.
United States-Flag Passenger Vessel Act of 1994