United States Cruise Vessel Development Act of 1994

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Cruise Vessel 
Development Act of 1994''.

SEC. 2. PURPOSE.

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

SEC. 3. COASTWISE TRANSPORTATION OF PASSENGERS.

    Section 8 of the Act entitled ``An Act to abolish certain fees for 
official services to American vessels, and to amend the laws relating 
to shipping commissioners, seamen, and owners of vessels, and for other 
purposes'', approved June 19, 1886 (24 Stat. 81, chapter 421; 46 App. 
U.S.C. 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 is owned by a person that is--
                    ``(A) an individual who is a citizen of the United 
                States; or
                    ``(B) a corporation, partnership, or association 
                that is a citizen of the United States under section 
                2(a) of the Shipping Act, 1916 (46 App. U.S.C. 802(a));
            ``(2) the vessel meets the requirements of section 27 of 
        the Merchant Marine Act, 1920 (46 App. U.S.C. 883); and
            ``(3) for a vessel that is at least 5 net tons, the vessel 
        is issued a certificate of documentation under chapter 121 of 
        title 46, United States Code, with a coastwise endorsement.
    ``(b) Exception for Vessel Under Demise Charter.--
            ``(1) In general.--Subsection (a)(1) does not apply to a 
        cruise vessel operating under a demise charter that--
                    ``(A) has a term of at least 18 months; and
                    ``(B) is to a person described in subsection 
                (a)(1).
            ``(2) Extension of period for operation.--A cruise vessel 
        authorized to operate in coastwise trade under paragraph (1) 
        based on a demise charter described in paragraph (1) may 
        operate in that coastwise trade during a period following the 
        termination of the charter of not more than 6 months, if the 
        operation--
                    ``(A) is approved by the Secretary; and
                    ``(B) is in accordance with such terms as may be 
                prescribed by the Secretary for that approval.
    ``(c) Exception for Vessel To Be Reflagged.--
            ``(1) Exception.--Subsection (a)(2) and section 
        12106(a)(2)(A) of title 46, United States Code, do not apply to 
        a cruise vessel if--
                    ``(A) the vessel--
                            ``(i) is not documented under chapter 121 
                        of title 46, United States Code, on the date of 
                        enactment of the United States Cruise Vessel 
                        Development Act of 1994; and
                            ``(ii) is not less than 5 years old and not 
                        more than 15 years old on the first date that 
                        the vessel is documented under that chapter 
                        after that date of enactment; and
                    ``(B) the owner or charterer of the vessel has 
                entered into a contract for the construction in the 
                United States of another cruise vessel that has a total 
                berth or stateroom capacity that is at least 80 percent 
                of the capacity of the cruise vessel.
            ``(2) Termination of authority to operate.--Paragraph (1) 
        does not apply to a vessel after the date that is 18 months 
        after the date on which a certificate of documentation with a 
        coastwise endorsement is first issued for the vessel after the 
        date of enactment of the United States Cruise Vessel 
        Development Act of 1994 if, before the end of that 18-month 
        period, the keel of another vessel has not been laid, or 
        another vessel is not at a similar stage of construction, under 
        a contract required for the vessel under paragraph (1)(B).
            ``(3) Extension of period before termination.--The 
        Secretary of Transportation may extend the 18-month period 
        under paragraph (2) for an additional period of not to exceed 6 
        months for good cause shown.
    ``(d) Limitation on Operations.--A person (including a related 
person with respect to that person) who owns or charters a cruise 
vessel operating in coastwise trade under subsection (b) or (c) under a 
coastwise endorsement may not operate any vessel between--
            ``(1) any 2 ports served by another cruise vessel that 
        transports passengers in coastwise trade under subsection (a) 
        on the date the Secretary issues the coastwise endorsement; or
            ``(2) any of the islands of Hawaii.
    ``(e) Penalties.--
            ``(1) Civil penalty.--A person operating a vessel in 
        violation of this section is liable to the United States 
        Government for 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, are liable to seizure by 
        and forfeiture to the United States Government.
            ``(3) Disqualification from coastwise trade.--A person that 
        is required to enter into a construction contract under 
        subsection (c)(1)(B) with respect to a cruise vessel (including 
        any related person with respect to that person) may not own or 
        operate any vessel in coastwise trade after the period 
        applicable under subsection (c)(2) with respect to the cruise 
        vessel, if before the end of that period a keel is not laid and 
        a similar stage of construction is not reached under such a 
        contract.
    ``(f) Definitions.--In this section--
            ``(1) the term `coastwise trade' includes transportation of 
        a passenger between points in the United States, either 
        directly or by way of a foreign port;
            ``(2) the term `cruise vessel' means a vessel that--
                    ``(A) is at least 10,000 gross tons (as measured 
                under chapter 143 of title 46, United States Code);
                    ``(B) has berth or stateroom accommodations for at 
                least 200 passengers; and
                    ``(C) is not a ferry; and
            ``(3) the term `related person' means, with respect to a 
        person--
                    ``(A) a holding company, subsidiary, affiliate, or 
                association of the person; and
                    ``(B) an officer, director, or agent of the person 
                or of an entity referred to in subparagraph (A).''.

SEC. 4. CONSTRUCTION STANDARDS.

    Section 3309 of title 46, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d)(1) A vessel described in paragraph (3) is deemed to comply 
with parts B and C of this subtitle.
    ``(2) The Secretary shall issue a certificate of inspection under 
subsection (a) to a vessel described in paragraph (3).
    ``(3) A vessel is described in this paragraph if--
            ``(A) the vessel meets the standards and conditions for the 
        issuance of a control verification certificate to a foreign 
        vessel embarking passengers in the United States;
            ``(B) a coastwise endorsement is issued for the vessel 
        under section 12106 of this title after the date of enactment 
        of the United States Cruise Vessel Development Act of 1994; and
            ``(C) the vessel is authorized to engage in coastwise trade 
        by reason of subsection (c) of section 8 of the Act entitled 
        `An Act to abolish certain fees for official services to 
        American vessels, and to amend the laws relating to shipping 
        commissioners, seamen, and owners of vessels, and for other 
        purposes', approved June 19, 1886 (24 Stat. 81, chapter 421; 46 
        App. U.S.C. 289).''.

SEC. 5. CITIZENSHIP FOR PURPOSES OF DOCUMENTATION.

    Section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802), is 
amended--
            (1) in subsection (a) by inserting ``other than primarily 
        in the transport of passengers,'' after ``the coastwise 
        trade''; and
            (2) by adding at the end the following new subsection:
    ``(e) For purposes of determining citizenship under subsection (a) 
with respect to operation of a vessel primarily in the transport of 
passengers in coastwise trade, the controlling interest in a 
partnership or association that owns the vessel shall not be deemed to 
be owned by citizens of the United States unless a majority interest in 
the partnership or association is owned by citizens of the United 
States free from any trust or fiduciary obligation in favor of any 
person that is 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 the Interior 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--
                    (A) will operate a vessel that is documented under 
                the laws of, and the home port of which is located in, 
                the United States; or
                    (B) holds rights to provide visitor services under 
                section 1307(a) of the Alaska National Interest Lands 
                Conservation Act (16 U.S.C. 3197(a)).
            (2) Second, any person that will operate a vessel that--
                    (A) is documented under the laws of a foreign 
                country, and
                    (B) on the date of the enactment of this Act is 
                permitted to be operated by the person in the unit.
            (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 the Interior shall revoke or refuse to renew 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; 
        and
            (2) the permission may not be granted because of a limit on 
        the number of permits that may be issued for that operation.
    (c) Restrictions on Revocation of Permits.--The Secretary of the 
Interior may not revoke or refuse to renew permission under subsection 
(b) for any person holding rights to provide visitor services under 
section 1307(a) of the Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3197(a)).
    (d) Return of Permits.--Any person whose permission to provide 
visitors services in a unit of the National Park System has been 
revoked or not renewed under subsection (b) shall have the right of 
first refusal to a permit to provide visitors services in that unit of 
the National Park System that becomes available when the conditions 
described in subsection (b) no longer apply. Such right shall be 
limited to the number of permits which are revoked or not renewed.

Summary: United States Cruise Vessel Development Act of 1994 - Amends Federal shipping law to revise provisions prohibiting the use of foreign vessels to transport passengers between places in the United States to authorize the transport of passengers in coastwise trade only if the vessel: (1) is owned by a US citizen, or a US corporation, partnership, or association, (2) meets certain requirements under the Merchant Marine Act. And (3) is at least five net tons and is issued a certificate of documentation with a coastwise endorsement. Exempts from this prohibition any cruise vessel: (1) demised to a US person for a term of at least 18 months. Or (2) reflagged as a US vessel after enactment of this Act, if the owner or charterer contracts for US construction of another cruise vessel with at least 80 percent of the existing vessel's total berth or stateroom capacity. Prohibits any person owning or chartering a cruise vessel thus exempted from operating any vessel between: (1) any two ports served by another cruise vessel transporting passengers in the coastwise trade on the date the Secretary of Transportation issues the coastwise endorsement. Or (2) any of the Hawaiian islands. Sets forth civil and forfeiture penalties for violations of this Act. Requires the Secretary of Transportation (Secretary) to issue a certificate of inspection to vessels that: (1) meet the standards and conditions for the issuance of a control verification certificate to a foreign vessel embarking passengers in the United States, (2) a coastwise endorsement is issued. And (3) are authorized to engage in coastwise trade as vessels reflagged under the requirements of this Act. Amends the Shipping Act, 1916 to declare that, for purposes of vessel documentation in the coastwise trade, the controlling interest in a partnership or association that owns such a vessel shall not be deemed to be a US citizen unless a majority interest in the partnership or association is owned by US citizens free from any trust or fiduciary obligation in favor of a non-US citizen. Prohibits the Secretary of the Interior from permitting a person to operate a vessel in any unit of the National Park System except in accordance with specified priorities, the first of which goes to any person: (1) operating a US-flag vessel whose home port is in the United States. Or (2) holding rights to provide visitor services under the Alaska National Interest Lands Conservation Act. Requires the Secretary to revoke or renew permission for the operation of any foreign-documented vessel that does not hold such Alaskan visitor rights if: (1) a person requests permission to operate a US-flag vessel in the same unit. And (2) permission may not be granted because of a limit on the number of such permits.