A bill to increase economic benefits to the United States from the activities of cruise ships visiting Alaska.

SECTION 1. FINDINGS.

    Congress finds the following:
            (1) It is in the interest of the United States to maximize 
        economic return from the growing trade in cruise ships sailings 
        to and from Alaska by encouraging the use of United States 
        berthing and repair facilities, labor, supplies, and other 
        services, as well as the growth of new enterprises such as the 
        carriage of passengers on luxury cruises between ports in 
        Alaska.
            (2) In promoting additional economic benefits to the United 
        States from the cruise ship industry, there is a need to ensure 
        that existing employment and economic activity associated with 
        the Alaska Marine Highway System, United States-flag tour boats 
        operating from Alaska ports, and similar United States 
        enterprises are protected from adverse impacts.
            (3) Cruise ship sailings to Alaska comprise a vital and 
        growing segment of the United States travel industry. Since 
        1989, the number of Alaska tourist arrivals via cruise ship has 
        grown by 86 percent. With over one-half million passengers per 
        year, Alaska has become the third most popular cruise 
        destination in the world, after the Caribbean and Europe.
            (4) No United States-flag cruise ships are presently 
        available to enter the Alaska trade. Thus, all cruise ships 
        carrying passengers to and from Alaska destinations are 
        foreign-flag vessels which are precluded, under current law, 
        from carrying passengers between United States ports.
            (5) The City of Vancouver, British Columbia receives 
        substantial economic benefit through providing services to 
        cruise ships in the Alaska trade. In 1995, Alaska sailings 
        accounted for 283 voyages, up from 275 in 1994, and for a total 
        of 595,577 passengers, up from 591,160. Past estimates of 
        Vancouver's gains from this industry included direct and 
        indirect employment of almost 2,500 people, and direct and 
        indirect payments for goods and services of approximately $120 
        million per year.
            (6) The transfer of cruise ship-based economic activity 
        from Vancouver, British Columbia to United States ports could 
        yield additional Federal revenues of nearly $100 million per 
        year, and additional State and local government revenues of 
        approximately $30 million.

SEC. 2. FOREIGN FLAG CRUISE VESSELS.

    (a) Waiver.--Notwithstanding provisions of section 8 of the Act of 
June 19, 1886 (46 U.S.C. 289), or any other provision of law, 
passengers may be transported in foreign-flag cruise vessels between 
ports in Alaska and between ports in Alaska and other ports on the west 
coast of the contiguous states, except as otherwise provided by this 
section.
    (b) Coastwise Trade.--Upon a showing satisfactory to the Secretary 
of Transportation, by the owner or charterer of a United States cruise 
vessel, that service aboard such vessel qualified to engage in the 
coastwise trade is being offered or advertised pursuant to a 
Certificate of Financial Responsibility for Indemnification of 
Passengers for Nonperformance of Transportation (46 App. U.S.C. 817(e)) 
for service in the coastwise trade between ports in Alaska or between 
ports in Alaska and other ports on the west coast of the contiguous 
states, or both, the Secretary shall notify the owner or operator of 
one or more foreign-flag cruise vessels transporting passengers under 
authority of this section, if any, that he shall, within one year from 
the date of notification, terminate such service. Coastwise privileges 
granted to any owner or operator of a foreign-flag cruise vessel under 
this section shall expire on the 365th day following receipt of the 
Secretary's notification.
    (c) Notification.--Notifications issued by the Secretary under 
subsection (b) of this section shall be issued to the owners or 
operators of foreign-flag cruise vessels--
            (1) in the reverse of the order in which foreign-flag 
        cruise vessels entered the coastwise service under this section 
        determined by the date of the vessels' first coastwise sailing; 
        and
            (2) in the minimum number as to ensure that the passenger-
        carrying capacity thereby removed from coastwise service 
        exceeds the passenger-carrying capacity of the United States 
        cruise vessel which is entering the service.
    (d) Termination.--If, at the expiration of the 365-day period 
specified in subsection (b) of this section, the United States cruise 
vessel that has offered or advertised service pursuant to a Certificate 
of Financial Responsibility for Indemnification of Passengers for 
Nonperformance of Transportation (46 App. U.S.C. 817(e)) has not 
entered the coastwise passenger trade between ports in Alaska or 
between ports in Alaska and other ports on the west coast of the 
contiguous states, then the termination of service required by 
subsection (b) shall not take effect until 90 days following the entry 
into trade by the United States vessel.
    (e) Definitions.--For the purposes of this section, the term--
            (1) ``cruise vessel'' means a vessel of greater than 5,000 
        deadweight tons which provides a full range of luxury 
        accommodations, entertainment, dining and other services for 
        its passengers; and
            (2)(A) ``foreign-flag cruise vessels'' does not apply to 
        vessels which regularly carry for hire both passengers and 
        vehicles or other cargo, or--
            (B) which serve residents of their ports of call in Alaska 
        or other ports in the United States as a common or frequently 
        used means of transportation between United States ports.
    (f) Disclaimer.--Nothing in this Act shall be construed as 
affecting or otherwise modifying the authority contained in the Act of 
June 30, 1961 (46 U.S.C. 289(b)) authorizing the transportation of 
passengers and merchandise in Canadian vessels between ports in Alaska 
and the United States.

Summary: Authorizes passenger transportation in foreign-flag cruise vessels between Alaska ports, and between Alaska ports and those on the west coast of the contiguous States. Prescribes procedural guidelines under which the Secretary of Transportation shall notify the owner or operator of one or more foreign-flag vessels that he shall terminate the authorization for the foreign-flag vessel to provide passenger transportation upon a showing by the owner or charterer of a US cruise vessel that the US vessel is offering such passenger service pursuant to a Certificate of Financial Responsibility for Indemnification of Passengers for Nonperformance of Transportation. States that coastwise privileges granted a foreign-flag cruise vessel under this Act shall expire on the 365th day following receipt of the Secretary's termination notification.