I 

116TH CONGRESS 

1ST SESSION H. R. 5498 

To amend title 46, United States Code, to allow transportation of merchandise 

in noncontiguous trade on foreign-flag vessels, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2019 

Mr. CASE introduced the following bill; which was referred to the Committee 

on Transportation and Infrastructure, and in addition to the Committee 

on Education and Labor, for a period to be subsequently determined by 

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 46, United States Code, to allow transportation of merchandise in noncontiguous trade on foreignflag vessels, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Noncontiguous Ship5 ping Relief Act of 2019’’. 

6 SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE. 

7 (a) IN GENERAL.—Section 55102 of title 46, United 

8 States Code, is amended by redesignating subsection (c) 


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1 as subsection (d) and by inserting after subsection (b) the 

2 following: 

3 ‘‘(c) NONCONTIGUOUS TRADE EXEMPTION.— 

4 ‘‘(1) IN GENERAL.—Subsection (b) shall not 

5 apply with respect to transportation in noncontig6 uous trade of merchandise on a foreign qualified 

7 freight vessel for which the Secretary of Transpor8 tation has issued a certificate of documentation 

9 under chapter 121. 

10 ‘‘(2) DEFINITIONS.—For purposes of paragraph 

11 (1): 

12 ‘‘(A) FOREIGN QUALIFIED FREIGHT VES13 SEL.—The term ‘foreign qualified freight vessel’ 

14 means a freight vessel (as that term is defined 

15 in section 2101) of not less than 1,000 gross 

16 tons that— 

17 ‘‘(i) was not built in the United States 

18 (or if rebuilt, not rebuilt in the United 

19 States); 

20 ‘‘(ii) is registered in a foreign country; 

21 and 

22 ‘‘(iii) employs United States citizens 

23 to the extent required of vessels registered 

24 under section 12102. 


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1 ‘‘(B) NONCONTIGUOUS TRADE.—The term 

2 ‘noncontiguous trade’ has the meaning given to 

3 such term in section 53501.’’. 

4 (b) COASTWISE ENDORSEMENTS.—Section 

5 12112(a)(2)(B) of title 46, United States Code, is amend6 ed— 

7 (1) in clause (ii), by striking ‘‘or’’; 

8 (2) in clause (iii), by striking ‘‘and’’ and insert9 ing ‘‘or’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(iv) is a foreign qualified freight vessel 

12 (as defined in section 55102(c)) used for trans13 portation referred to in section 55102(c) for 

14 which the Secretary of Transportation has 

15 issued a certificate of documentation.’’. 

16 (c) FOREIGN TRANSFER.—Section 56101(a)(2) of 

17 title 46, United States Code, is amended— 

18 (1) by striking ‘‘Paragraph (1)(A)’’ and insert19 ing: 

20 ‘‘(A) Paragraph (1)(A)’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(B) Paragraph (1) does not apply with 

23 respect to a foreign qualified freight vessel (as 

24 defined in section 55102(c)) for which the Sec25 retary has issued a certificate of documentation 


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1 after the date of enactment of this Act and that 

2 is used solely for transportation referred to in 

3 section 55102(c) may be placed under foreign 

4 registry without the approval of the Secretary 

5 at any time after that vessel is issued a certifi6 cate of documentation. At such time as that 

7 vessel is placed under foreign registry, the Sec8 retary shall revoke the certificate of documenta9 tion issued by the Secretary.’’. 

10 SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS. 

11 (a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, 

12 AND ASSOCIATIONS.—Section 50501 of title 46, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

15 ‘‘(e)(1) EXCEPTIONS.—The following provisions of 

16 this section shall not apply to a foreign qualified freight 

17 vessel used for transportation referred to in section 

18 55102(c)(2)(B): 

19 ‘‘(A) Paragraphs (2) and (3) of subsection 

20 (b). 

21 ‘‘(B) Subsection (c). 

22 ‘‘(2) In paragraph (1) the term ‘foreign quali23 fied freight vessel’ has the meaning given that term 

24 in section 55102(c).’’. 


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1 (b) APPROVAL OF TRANSFER OF REGISTRY OR OP2 ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR

3 FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.— 

4 Section 56101 of title 46, United States Code, is amended 

5 by adding at the end the following: 

6 ‘‘(f) TRANSFER OF FOREIGN VESSELS.—To promote 

7 the transfer of foreign vessels to be documented under 

8 chapter 121 of this title for use for transportation referred 

9 to in section 55102(c)(2)(B) of this title, the Secretary 

10 may grant approval under subsection (a) with respect to 

11 such a vessel before the date the vessel is documented. 

12 ‘‘(g) FOREIGN QUALIFIED FREIGHT VESSEL.—In 

13 subsections (f) and (g), the term ‘foreign qualified freight 

14 vessel’ has the meaning given that term in section 

15 55102(c) of this title.’’. 

16 SEC. 4. LABOR PROVISIONS. 

17 (a) LIABILITY FOR INJURY OR DEATH OF MASTER

18 OR CREW MEMBER.—Section 30104 of title 46, United 

19 States Code, is amended by adding at the end the fol20 lowing: ‘‘In an action brought under this section against 

21 a defendant employer that does not reside or maintain an 

22 office in the United States (including any territory or pos23 session of the United States) and that engages in any en24 terprise that makes use of one or more ports in the United 

25 States (as defined in section 2101 of this title) jurisdiction 


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1 shall be under the district court most proximate to the 

2 place of the occurrence of the personal injury or death that 

3 is the subject of the action.’’. 

4 (b) ELECTION TO UNDER PARTICIPATE LONGSHORE

5 AND HARBOR WORKERS’ COMPENSATION ACT.—Section 

6 30104 of title 46, United States Code, as amended by sub7 section (a), is amended— 

8 (1) by striking ‘‘A seaman’’ and inserting ‘‘(a) 

9 IN GENERAL.— A seaman’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(b)(1) PARTICIPATION IN AN AUTHORIZED COM12 PENSATION PLAN.—The employer of a master or member 

13 of the crew of a vessel may participate in an authorized 

14 compensation plan under the Longshore and Harbor 

15 Workers’ Compensation Act (33 U.S.C. 901 et seq.). An 

16 employer that participates in such a plan is subject to such 

17 Act. 

18 ‘‘(2) If an employer participates in an authorized 

19 compensation plan under such Act under paragraph (1)— 

20 ‘‘(A) a master or crew member employed by 

21 that employer shall be considered to be an employee 

22 for the purposes of that Act; and 

23 ‘‘(B) the liability of that employer under that 

24 Act to the master or crew member, or to any person 

25 otherwise entitled to recover damages from the emVerDate Sep 11 2014 20:14 Dec 29, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5498.IH H5498

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1 ployer based on the injury, disability, or death of the 

2 master or crew member, shall be exclusive and in 

3 lieu of all other liability.’’. 

4 (c) MINIMUM REQUIREMENTS.—All vessels, whether 

5 documented in the United States or not, operating in the 

6 coastwise trade of the United States shall be subject to 

7 minimum international labor standards for seafarers 

8 under international agreements in force for the United 

9 States, as determined by the Secretary of Transportation 

10 on the advice of the Secretaries of Labor and Defense. 

11 SEC. 5. REGULATIONS REGARDING VESSELS. 

12 (a) APPLICABLE MINIMUM REQUIREMENTS.—Except 

13 as provided in subsection (b), the minimum requirements 

14 for vessels engaging in the transportation of cargo or mer15 chandise in the United States coastwise trade shall be the 

16 recognized international standards in force for the United 

17 States (as determined by the Secretary of the department 

18 in which the Coast Guard is operating, in consultation 

19 with any other official of the Federal Government that the 

20 Secretary determines to be appropriate). 

21 (b) CONSISTENCY IN APPLICATION OF STAND22 ARDS.—In any case in which any minimum requirement 

23 for vessels referred to in subsection (a) establishes a lower 

24 standard than a minimum that is applicable to vessels that 

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1 ted to engage in the transportation of cargo and merchan2 dise in the United States coastwise trade, the standard 

3 applicable to such vessels that are documented in a foreign 

4 country shall be the standard to be applied to United 

5 States documented vessels. 

6 SEC. 6. ENVIRONMENTAL STANDARDS. 

7 All vessels, whether documented under the laws of the 

8 United States or not, engaging in the United States coast9 wise trade shall comply with all applicable United States 

10 and international environmental standards in force for the 

11 United States. 

12 SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IR13 REGULARLY ENGAGING IN DOMESTIC COAST14 WISE TRADE. 

15 (a) IN GENERAL.—Each person or entity that is not 

16 a citizen of the United States, as defined in section 104 

17 of title 46, United States Code, that owns or operates ves18 sels that irregularly engage in the United States domestic 

19 coastwise trade shall— 

20 (1) name an agent upon whom process may be 

21 served; 

22 (2) abide by all applicable laws of the United 

23 States, including applicable environmental and tax 

24 laws; and 


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1 (3) post evidence of documentation and en2 dorsements aboard such vessel indicating the owner 

3 or owners of such vessel, including any person con4 trolling vessels and the number of port calls and 

5 coastwise trips made during that calendar year. 

6 (b) PERSONS TREATED AS SINGLE EMPLOYER.—For 

7 purposes of paragraph (3), all persons treated as a single 

8 employer under subsection (a) or (b) of section 52 of the 

9 Internal Revenue Code of 1986 shall be treated as 1 per10 son. 

Æ 


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