U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

69–010 

" ! SENATE 110TH CONGRESS

2d Session 

REPORT

2008

110–457 

Calendar No. 955 

MARITIME ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEAR 2009 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 2997 

SEPTEMBER 11, 2008.—Ordered to be printed 


jbell on PROD1PC69 with REPORTSE:\Seals\Congress.#13
(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED TENTH CONGRESS

SECOND SESSION

DANIEL K. INOUYE, Hawaii, Chairman 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK R. LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

THOMAS CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

AMY KLOBUCHAR, Minnesota 

KAY BAILEY HUTCHISON, Texas 

TED STEVENS, Alaska 

JOHN MCCAIN, Arizona 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN THUNE, South Dakota 

ROGER F. WICKER, Mississippi 

MARGARET CUMMISKY, Staff Director and Chief Counsel 

LILA HELMS, Deputy Staff Director and Policy Director 

JEAN TOAL EISEN, Senior Advisor and Deputy Policy Director 

CHRISTINE KURTH, Republican Staff Director and General Counsel 

PAUL J. NAGLE, Republican Chief Counsel 

MIMI BRANIFF, Republican Deputy Chief Counsel 


jbell on PROD1PC69 with REPORTS
Calendar No. 955 

110TH CONGRESS REPORT " ! SENATE 2d Session 110–457 

MARITIME ADMINISTRATION AUTHORIZATION ACT FOR 

FISCAL YEAR 2009 

SEPTEMBER 11, 2008.—Ordered to be printed 

Mr. INOUYE, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2997] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2997) to reauthorize the Maritime 

Administration and for other purposes, having considered the 

same, reports favorably thereon with amendments and recommends that the bill (as amended) do pass. 

PURPOSE OF THE BILL

This legislation is the annual authorization act for the Maritime 

Administration (MARAD) within the Department of Transportation 

(DOT). The bill would authorize funds for fiscal year 2009 and 

amend laws governing the activities of the MARAD. The bill would 

improve the Student Incentive Program (SIP), streamline the application process for the Small Shipyard Assistance (SSA) Program, 

and strengthen the enforcement of cargo preference laws. 

BACKGROUND AND NEEDS

The MARAD was authorized through fiscal year 2008 in the Department of Defense Authorization Act for FY 2008 (P.L. 110–181). 

The MARAD administers U.S. merchant marine support programs 

within the DOT, including the Maritime Security Program (MSP); 

the Title XI guaranteed loan program; various cargo preference 

programs; the SSA program; the maintenance of the Ready Reserve 

Force (RRF) and the National Defense Reserve Fleet (NDRF); and 

operation of the U.S. Merchant Marine Academy (USMMA) at 

Kings Point, New York. 


jbell on PROD1PC69 with REPORTS
2 

SUMMARY OF PROVISIONS

The Maritime Administration Authorization Act for fiscal year 

2009 would authorize the USMMA to hire adjunct professors and 

would require the USMMA to prescribe a policy on sexual harassment and sexual violence similar to such policies in the Department of Defense (DOD) military academies. Also, the bill would authorize the MARAD to increase the annual payments to cadets of 

state maritime academies for the SIP program, as well as adjust 

the timing of the award and the terms for which the payments may 

be used. Approximately 70 percent of all licensed officer graduates 

come from the state maritime academies. There is a compelling 

need to assist both the USMMA and the state maritime academies 

to meet growing demands for the U.S. armed forces and the commercial maritime industry. 

In addition to authorizing fiscal year 2009 funds for the MARAD, 

the bill would modify the provisions under title 46 relating to 

riding gangs on commercial cargo vessels that are under DOD contract. This measure would also make improvements to the SSA program by streamlining grant making processes and expanding eligibility assistance to medium and small shipyards that are engaged 

in the vessel repair and vessel construction industries. The bill 

would extend the duration of the marine war risk insurance program. The bill would place in statute existing administrative procedures for waivers to the Jones Act during times of an actual or imminent energy shortage, or when it is in the interest of national 

security. Lastly, the bill would provide the MARAD with appropriate enforcement authority for the administration of our cargo 

preference laws. 

LEGISLATIVE HISTORY

S. 2997 was introduced by Senator Lautenberg, Senator Smith 

and Senator Stevens on May 8, 2008. Senator Inouye was added as 

a cosponsor to the bill on May 14, 2008. The Senate Committee on 

Commerce, Science and Transportation reported the bill favorably 

as amended by a manager’s amendment sponsored by Senator 

Inouye, Senator Stevens, Senator Lautenberg, and Senator Smith 

on May 15, 2008. The staff members assigned to this legislation 

are: Dabney Hegg, Democratic Senior Professional Staff; Todd 

Bertoson, Senior Republican Counsel; and Betsy McDonnell, Republican Professional Staff. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office: 


jbell on PROD1PC69 with REPORTS
3 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, June 5, 2008. 

Hon. DANIEL K. INOUYE, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 2997, the Maritime Administration Act for Fiscal Year 2009. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Deborah Reis. 

Sincerely, 

ROBERT A. SUNSHINE

(For Peter R. Orszag, Director). 

Enclosure. 

S. 2997—Maritime Administration Act for Fiscal Year 2009 

Summary: S. 2997 would amend various laws governing the activities of the Maritime Administration (MARAD) and would authorize appropriations for that agency for fiscal year 2009. Assuming appropriation of the amounts authorized for 2009, CBO estimates that implementing S. 2997 would result in discretionary outlays of $163 million over the 2009–2013 period. Enacting the bill 

also could change revenues (primarily from civil fines) and direct 

spending (for benefits to certain longshoremen), but we estimate 

that any such changes would be minimal. 

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no significant costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2997 is shown in the following table. The costs 

of this legislation fall within budget function 400 (transportation). 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 2009– 

2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ........................................................... 163 0 0 0 0 163 

Estimated Outlays ............................................................ 131 20 13 0 0 163 

Notes: As discussed below, the authorization levels do not include amounts specifically authorized by the bill for programs that are already 

authorized under current law. 

Enacting S. 2997 could result in changes in revenues and direct spending, but CBO estimates that such changes would be insignificant in any year. 

Basis of estimate: For this estimate, CBO assumes that S. 2997 

will be enacted near the end of fiscal year 2008 and that the 

amounts newly authorized by the bill will be appropriated for 2009. 

Estimated outlays are based on historical spending patterns for 

MARAD activities. 

The authorization level shown in the table includes $143 million 

for MARAD operations, $18 million for the agency’s program to dispose of obsolete vessels in the National Defense Reserve Fleet, and 

$2 million for the U.S. Coast Guard to perform assessments of vessel traffic risk in Alaska. The bill also would authorize appropriations for other MARAD programs, including $174 million for subVerDate Aug 31 2005 05:37 Sep 13, 2008 Jkt 069010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR457.XXX SR457

jbell on PROD1PC69 with REPORTS
4 

sidies to U.S. flag vessels under the maritime security program, 

$19.5 million for reimbursements to vessel owners for repairs made 

in U.S. shipyards, $30 million for the cost of making maritime loan 

guarantees, and $6 million for related administrative costs. Those 

amounts are not shown in the table, however, because they are already authorized under current law. 

The bill would strengthen existing rules that govern cargo preference requirements, clarifying that all federally financed cargoes 

are subject to cargo preference laws (which require that certain 

percentages of government-sponsored freight be transported on 

U.S. flag vessels). Also, the bill would establish civil penalties for 

violations of such laws by shipping companies. 

Enacting the bill could result in an increase in civil penalties collected by MARAD from violators of cargo preference laws, but CBO 

estimates that any such increases would be minimal. Based on information provided by MARAD and other federal agencies, we estimate that other changes to the cargo preference law would have no 

significant impact on the federal budget because most federal agencies already comply with the law. 

Finally, section 12 would expand an exemption in the Longshore 

and Harbor Workers’ Compensation Act for individuals who manufacture, repair, or dismantle recreational vessels. Enacting this provision could reduce revenues (from fines and penalties on the shipbuilding industry) and direct spending (for compensation to individuals), but CBO estimates that such changes would be insignificant. 

Intergovernmental and private-sector impact: S. 2997 contains no 

intergovernmental or private-sector mandates as defined in UMRA 

would impose no significant costs on state, local, or tribal governments. 

Previous CBO estimates: CBO has transmitted several cost estimates for bills that contained authorizations for assessments of 

vessel traffic risk in Alaska, including S. 1892, the Coast Guard 

Authorization Act for Fiscal Year 2008, as ordered reported by the 

Senate Committee on Commerce, Science, and Transportation on 

August 2, 2007, and three versions of H.R. 2830, the Coast Guard 

Authorization Act of 2007, as ordered reported by the House Committee on Transportation and Infrastructure (June 28, 2007), the 

House Committee on the Homeland Security (September 25, 2007), 

and the House Committee on the Judiciary (October 30, 2007). All 

four versions of the legislation would authorize the appropriation 

of about $2 million for each of fiscal years 2008 and 2009 for assessments of vessel traffic risk in Alaska. The cost estimate for S. 

2997 only includes the 2009 authorization for the program because 

CBO assumes that the bill will not be enacted in time for the 2008 

authorization to be appropriated. 

On May 20, 2008, CBO transmitted a cost estimate for H.R. 

5658, the National Defense Authorization Act for 2009, as ordered 

reported by the House Committee on Armed Services on May 16, 

2008. H.R. 5658 also would authorize funding for MARAD for 2009 

but at a lower level than S. 2997. The CBO cost estimates reflect 

that difference. 

Estimate prepared by: Federal costs: Deborah Reis; Impact on 

state, local, and tribal governments: Elizabeth Cove; Impact on the 

private sector: Jacob Kuipers. 


jbell on PROD1PC69 with REPORTS
5 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

NUMBER OF PERSONS COVERED

The number of persons affected by this bill is consistent with 

previous MARAD reauthorizations with the exception of Section 12, 

which is expected to benefit the repair and boat manufacturing sectors of the marine recreational industry consisting of 500,000 workers. Any changes to the personnel at the USMMA are intended to 

improve the quality of the experience for the students and the longterm health of the U.S. merchant marine. 

ECONOMIC IMPACT

Section 12 is expected to have a positive impact on the economy, 

particularly the boat repair and boat manufacturing sectors of the 

marine recreational industry. In the state of Florida alone, this industry supports 220,000 jobs and contributes $18.4 billion to the 

economy. In recognition of the modest injury profile of the marine 

recreational industry, this section allows thousands of small businesses to cover all or most of their employees with State workers’ 

compensation insurance rather than having to pay the considerably 

higher premiums required under the Longshore and Harbor Workers’ Compensation Act. These companies would be able to use the 

money saved by these considerably lower insurance rates for their 

employees benefit, and to compete more effectively with foreignbased boat repair and manufacturing businesses, helping to keep 

jobs in the United States. 

PRIVACY

S. 2997 would have minimal effect on the privacy rights of individuals. 

PAPERWORK

The Committee does not anticipate a major increase in paperwork burdens for individuals or business resulting from the passage of this legislation. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides the following identification of congressionally directed spending items contained in the 

bill, as reported: 

Section Provision Member 

Section 9 Vessel traffic risk assessments Sen. Stevens 


jbell on PROD1PC69 with REPORTS
6 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 would provide that the legislation may be cited as the 

‘‘Maritime Administration Authorization Act for Fiscal Year 2009.’’ 

Section 2. Adjunct professors at the Merchant Marine Academy 

The USMMA uses between 20 and 25 percent adjunct professors 

during any one academic trimester. As part of improving the budget submission process, the USMMA proposes to transition most of 

these adjunct professors to direct USMMA employment. Some adjunct professors may continue to be governed by personal service 

contracts. This proposal would clarify the USMMA’s authority to 

retain the adjunct professors under existing contracts until their 

employment is transferred for the 2008–2009 school year. 

Section 3. Actions to address sexual harassment and violence at the 

United States Merchant Marine Academy 

Section 3 would require the USMMA to prescribe a policy on sexual harassment and sexual violence applicable to the cadets and 

other personnel of the Academy. This requirement would bring the 

USMMA into parity with the military academies of the DOD. 

Section 4. Riding gang member requirements 

Section 8106 of title 46, United States Code, limits the use of 

non-U.S. citizen riding gang members on U.S. flagged merchant 

vessels. Section 2101 of title 46, United States Code, defines a 

riding gang member as an individual who does not hold a merchant 

mariner document, and who is not a regular member of the ship’s 

crew who performs watch standing duties. The riding gang member 

may perform limited functions aboard the ship and must at all 

times be supervised by a crew member holding a merchant mariner 

document (MMD). 

Section 1018 of the John Warner National Defense Authorization 

Act for Fiscal Year 2007 prohibited the use of riding gangs on 

board vessels under contract by the DOD unless the Secretary of 

Defense complied with the limitations for riding gangs under section 8106 of title 46. 

The FY 2007 Defense Authorization Act provided four exceptions 

to the contractual requirements: (1) for personnel associated with 

the cargo; (2) force protection personnel; (3) repair technicians; and 

(4) other personnel required by the Secretary of Defense to be 

aboard the vessel other than for maintenance or operation of the 

vessel. However, there was no parallel exception under section 

8106. 

In order for the DOD to use the exceptions authorized in the FY 

2007 Defense Authorization Act effectively, those exceptions also 

must apply to the requirements of title 46. Therefore, this section 

would authorize the Secretary of Defense to invoke the exceptions 

both under contract and under section 8106 of title 46. This provision was requested by the DOD. 


jbell on PROD1PC69 with REPORTS
7 

Section 5. Assistance for small shipyards and maritime communities 

Section 5 would make technical modifications to the existing SSA 

program established under Section 3506 of the National Defense 

Authorization Act for Fiscal Year 2006, P.L. 109–163, in order to 

improve the functionality of the grant making process and to expand the eligibility of small shipyards that may qualify for assistance under the program. 

Section 6. Student Incentive Payment (SIP) program 

The SIP program provides financial assistance to qualified cadets 

at the six state maritime academies. The SIP program is voluntary, 

and it is designed to assist cadets in defraying the cost of uniforms, 

books, and subsistence in return for certain obligations on the part 

of the cadet. Upon graduation from the Academy, SIP participants 

are required to: maintain maritime-related employment for at least 

three years; maintain a U.S. Coast Guard license; maintain a Commission in the Military Reserve for six years, which includes two 

active drill weeks per year; and report employment status annually 

to the Maritime Administration. As such, SIP participants help the 

military maintain a ready pool of qualified mariners during times 

of national emergency. This section would amend section 51509 of 

title 46, United States Code, to increase the authorized annual payments to cadets, adjust the timing of the award, and expand the 

terms for which the payments may be used. 

Section 7. Marine War Risk Insurance 

The MARAD administers a War Risk Insurance Program under 

46 U.S.C. 53901 et seq. If commercial war risk insurance is not 

available on reasonable terms and conditions from commercial insurance companies, then the Secretary, with the approval of the 

President, may provide two basic types of insurance: (1) written for 

commercial vessels that are deemed necessary to move cargo for a 

national emergency, and if a vessel was damaged or lost, the claim 

is paid out of the DOT’s funds; and (2) written for both U.S. and 

foreign flag commercial vessels that are under charter to the military, and if a vessel were damaged or lost, the DOD indemnifies 

the DOT for payment of the claim. The latter authority under 46 

U.S.C. 53912 expires December 31, 2010. Section 7 of the reported 

bill would extend war risk insurance authority under section 53912 

of title 46, United States Code, until December 31, 2015. 

Section 8. MARAD consultation on Jones Act Waivers 

In 1950, a process was authorized in statute to allow for the 

DOD to request a waiver of the Jones Act for the transportation 

of domestic cargo during times of an actual or imminent energy 

shortage, or when it is in the interest of national security. To facilitate the consideration of waiver requests, the U.S. Customs Service 

(now the U.S. Customs and Border Protection (CBP)), the MARAD, 

and the Department of Energy (DOE) entered into a Memorandum 

of Agreement (MOA). Under the MOA, the MARAD is responsible 

for certifying and granting Jones Act waivers for U.S. flagged vessels when it is in the interest of national security. The MOA remains in effect today and helps ensure that waiver decisions are 

processed timely and efficiently to meet the demand for emergency 


jbell on PROD1PC69 with REPORTS
8 

transportation of energy products. This section would amend 46 

U.S.C. 501 to apply the terms of the existing MOA to all waiver 

requests originating from outside the DOD. This ensures that national defense interests are met in the most efficient manner possible. It remains consistent with the stated U.S. policy, to encourage and aid in the development and maintenance of a U.S. merchant marine as necessary for the national defense, and for the development of the domestic and foreign commerce of the United 

States. 

Section 9. Vessel traffic risk assessments 

Section 9 would require the Commandant of the Coast Guard to 

prepare two vessel traffic risk assessments; one for Cook Inlet, 

Alaska, within one year after the date of enactment of this Act, and 

the second for the Aleutian Islands, within two years after the date 

of enactment of this Act. Each assessment would describe both the 

level of shipping traffic, and the current and projected routing 

measures used, including long-range vessel tracking systems, and 

the Automatic Identification System. The assessments also would 

provide recommendations for enhancing safety and security of marine shipping. This provision would authorize $1,800,000 for both 

fiscal year 2008 and fiscal year 2009 to conduct these assessments. 

Section 10. Small Vessel Exception from Definition of Fish Processing Vessel 

Section 10, titled ‘Small Vessel Exception From Definition of Fish 

Processing Vessel,’ would modify section 2101 (11b) of title 46, 

United States Code, to exclude certain fishing vessels operating in 

Alaskan waters that fillet only salmon taken by that vessel, and fillet less than five metric tons of such salmon during any seven day 

period. 

Section 11. Transportation in American vessels of government personnel and certain cargoes 

Section 11 would clarify that cargo preference applies to any person or organization receiving federal funding, unless they are otherwise exempted. This clarification eliminates confusion over the 

application of cargo preference, and it would provide the Secretary 

of the DOT with the appropriate enforcement authority for administrative oversight of cargo preference laws under subsection 

55305(d) of title 46, United States Code. This section only applies 

to agencies, organizations, or persons subject to section 55305, and 

it makes a technical correction by conforming the cargo preference 

year to the fiscal year in 46 U.S.C. 55314(a). 

Section 12. Exclusion of certain employee benefits for individuals in 

the recreational marine industry 

Section 12 would extend the current Longshore and Harbor 

Workers’ Compensation Act exemption for recreational marine 

workers employed to manufacture any recreational vehicle under 

165 feet in length, or to repair any recreational vehicle, including 

the dismantling of any part of such a vessel connected to its repair. 


jbell on PROD1PC69 with REPORTS
9 

Section 13. Authorization of appropriations for fiscal year 2009 

Section 13 describes the authorization of appropriations for the 

MARAD for fiscal year 2009. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT 

FOR FISCAL YEAR 2007 

SEC. 1018. RIDING GANG MEMBER REQUIREMENTS. 

(a) REQUIREMENT FOR CHARTERS AND CONTRACTS.— (1) IN GENERAL.—The Secretary of Defense may not award, 

renew, extend, or exercise an option to extend any charter of 

a vessel documented under chapter 121 of title 46, United 

States Code, for the Department of Defense, or any contract for 

the carriage of cargo by a vessel documented under that chapter for the Department of Defense, unless the charter or contract, respectively, includes provisions that allow riding gang 

members to perform work on the vessel during the effective period of the charter or contract only under terms, conditions, restrictions, and ørequirements that, except as provided in paragraphs (2) and (3), are substantially the same as those that 

apply under section 8106 of title 46, United States Code, as in 

effect immediately before the enactment of this Act, with respect to a vessel referred to in that section.¿ requirements as 

provided in section 8106 of title 46, United States Code. 

ø(2) LIMITATION.—For purposes of paragraph (1) of this subsection, subsections (a)(1)(A)(ii), (c), and (d) of section 8106 of 

title 46, United States Code, shall not apply with respect to a 

charter or contract referred to in paragraph (1). 

ø(3) MERCHANT MARINER’S DOCUMENT REQUIRED.—The Secretary of Defense shall include in the provisions required 

under paragraph (1) a requirement that each riding gang member who performs work on the vessel must hold a merchant 

mariner’s document issued under chapter 73 of title 46, United 

States Code.¿ 

ø(4)¿ (2) RIDING GANG MEMBER DEFINED.—In this subsection 

the term ‘‘riding gang member’’ has the meaning that term has 

in section ø8106¿ 2101 of title 46, United States Code, as in 

effect immediately before the enactment of this Act. 

(b) EXEMPTIONS BY SECRETARY OF DEFENSE.— 

ø(1) IN GENERAL.—The Secretary of Defense may issue regulations that exempt from the charter or contract provisions required under subsection (a) any individual who is on a vessel 

for purposes other than engaging in the operation or maintenance of the vessel, including an individual who is— 

ø(A) one of the personnel who accompany, supervise, 

guard, and maintain unit equipment aboard a ship, commonly referred to as supercargo personnel; 

ø(B) one of the force protection personnel of the vessel; 


jbell on PROD1PC69 with REPORTS
10 

ø(C) a specialized repair technician; or 

ø(D) otherwise required by the Secretary of Defense to 

be aboard the vessel.¿ 

(1) IN GENERAL.—Pursuant to regulations issued by the Secretary of Defense, an individual— 

(A) who is aboard a vessel, which is under charter or 

contract for the carriage of cargo for the Department of Defense, for purposes other than engaging in the operation or 

maintenance of the vessel, and 

(B) who— 

(i) accompanies, supervises, guards, or maintains 

unit equipment aboard a ship, commonly referred to as 

supercargo personnel, 

(ii) is one of the force protection personnel of the vessel, 

(iii) is a specialized repair technician, or 

(iv) is otherwise required by the Secretary of Defense 

to be aboard the vessel, 

shall not be deemed a riding gang member for purposes of title 

46, United States Code. 

(2) BACKGROUND CHECK.—Such regulations shall include a 

requirement that any individual who is exempt under the regulations must pass a background check before going aboard the 

vessel, unless the individual holds a merchant mariner’s document issued under chapter 73 of title 46, United States Code. 

(3) EXEMPTED INDIVIDUAL NOT TREATED AS IN ADDITION TO

THE CREW.—An individual exempted under paragraph (1) shall 

not be counted as an individual in addition to the crew for the 

purposes of section 3304 of title 46, United States Code. 

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL 

YEAR 2006 

øSEC. 3506. ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME COMMUNITIES. 

ø(a) ESTABLISHMENT OF PROGRAM.—Subject to the availability of 

appropriations, the Administrator of the Maritime Administration 

shall establish a program to provide assistance to State and local 

governments— 

ø(1) to provide assistance in the form of grants, loans, and 

loan guarantees to small shipyards for capital improvements; 

and 

ø(2) for maritime training programs in communities whose 

economies are substantially related to the maritime industry. 

ø(b) AWARDS.—In providing assistance under the program, the 

Administrator shall— 

ø(1) take into account— 

ø(A) the economic circumstances and conditions of maritime communities; and 

ø(B) the local, State, and regional economy in which the 

communities are located; and 

ø(2) strongly encourage State, local, and regional efforts to 

promote economic development and training that will enhance 

the economic viability of and quality of life in maritime communities. 


jbell on PROD1PC69 with REPORTS
11 

ø(c) USE OF FUNDS.—Assistance provided under this section may 

be used— 

ø(1) to make capital and related improvements in small shipyards located in or near maritime communities; 

ø(2) to encourage, assist in, or provide training for residents 

of maritime communities that will enhance the economic viability of those communities; and 

ø(3) for such other purposes as the Administrator determines 

to be consistent with and supplemental to such activities. 

ø(d) PROHIBITED USES.—Grants awarded under this section may 

not be used to construct buildings or other physical facilities or to 

acquire land unless such use is specifically approved by the Administrator in support of subsection (c)(3). 

ø(e) MATCHING REQUIREMENTS.— 

ø(1) FEDERAL FUNDING.—Except as provided in paragraph 

(2), Federal funds for any eligible project under this section 

shall not exceed 75 percent of the total cost of such project. 

ø(2) EXCEPTIONS.— ø(A) SMALL PROJECTS.—Paragraph (1) shall not apply to 

grants under this section for stand alone projects costing 

not more than $25,000. The amount under this subparagraph shall be indexed to the consumer price index and 

modified each fiscal year after the annual publication of 

the consumer price index. 

ø(B) REDUCTION IN MATCHING REQUIREMENT.—If the Administrator determines that a proposed project merits support and cannot be undertaken without a higher percentage of Federal financial assistance, the Administrator may 

award a grant for such project with a lesser matching requirement than is described in paragraph (1). 

ø(f) APPLICATION.— ø(1) IN GENERAL.—The Administrator shall determine who, 

as an eligible applicant, may submit an application, at such 

time, in such form, and containing such information and assurances as the Administrator may require. 

ø(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSE- MENT.—Each application submitted under paragraph (1) shall 

include— 

ø(A) a comprehensive description of— 

ø(i) the need for the project; 

ø(ii) the methodology for implementing the project; 

and 

ø(iii) any existing programs or arrangements that 

can be used to supplement or leverage assistance 

under the program. 

ø(3) PROCEDURAL SAFEGUARDS.—The Administrator, in consultation with the Office of the Inspector General, shall issue 

guidelines to establish appropriate accounting, reporting, and 

review procedures to ensure that— 

ø(A) grant funds are used for the purposes for which 

they were made available; 

ø(B) grantees have properly accounted for all expenditures of grant funds; and 

ø(C) grant funds not used for such purposes and 

amounts not obligated or expended are returned. 


jbell on PROD1PC69 with REPORTS
12 

ø(4) PROJECT APPROVAL REQUIRED.—The Administrator may 

not award a grant under this section unless the Administrator 

determines that— 

ø(A) sufficient funding is available to meet the matching 

requirements of subsection (e); 

ø(B) the project will be completed without unreasonable 

delay; and 

ø(C) the recipient has authority to carry out the proposed project. 

ø(g) AUDITS AND EXAMINATIONS.—All grantees under this section 

shall maintain such records as the Administrator may require and 

make such records available for review and audit by the Administrator. 

ø(h) SMALL SHIPYARD DEFINED.—In this section, the term ‘‘small 

shipyard’’ means a shipyard that— 

ø(1) is a small business concern (within the meaning of section 3 of the Small Business Act (15 U.S.C. 632); and 

ø(2) does not have more than 600 employees. 

ø(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the Administrator of the Maritime Administration for each of fiscal years 2006 through 2010 to carry out this 

section— 

ø(1) $5,000,000 for training grants; and 

ø(2) $25,000,000 for capital and related improvement 

grants.¿ 

TITLE 46. SHIPPING 

SUBTITLE I. GENERAL

CHAPTER 5. OTHER GENERAL PROVISIONS

§ 501. Waiver of navigation and vessel-inspection laws 

(a) ON REQUEST OF SECRETARY OF DEFENSE.—On request of the 

Secretary of Defense, the head of an agency responsible for the administration of the navigation or vessel-inspection laws shall waive 

compliance with those laws to the extent the Secretary considers 

necessary in the interest of national defense. 

ø(b) BY HEAD OF AGENCY.—When the head of an agency responsible for the administration of the navigation or vessel-inspection 

laws considers it necessary in the interest of national defense, the 

individual may waive compliance with those laws to the extent, in 

the manner, and on the terms the individual prescribes.¿ 

(b) BY HEAD OF AGENCY.—When the head of an agency responsible for the administration of the navigation or vessel-inspection 

laws considers it necessary in the interest of national defense, the 

individual, following a determination by the Maritime Administrator, acting in the Administrator’s capacity as Director, National 

Shipping Authority, of the non-availability of qualified United 

States flag capacity to meet national defense requirements, may 

waive compliance with those laws to the extent, in the manner, and 

on the terms the individual, in consultation with the Administrator, 

acting in that capacity, prescribes. 

(c) TERMINATION OF AUTHORITY.—The authority granted by this 

section shall terminate at such time as the Congress by concurrent 

resolution or the President may designate. 


jbell on PROD1PC69 with REPORTS
13 

SUBTITLE II. VESSELS AND SEAMEN

PART A. GENERAL PROVISIONS

CHAPTER 21. GENERAL

§ 2101. General definitions 

In this subtitle— 

(1) ‘‘associated equipment’’— 

(A) means— 

(i) a system, accessory, component, or appurtenance 

of a recreational vessel; or 

(ii) a marine safety article intended for use on board 

a recreational vessel; but 

(B) does not include radio equipment. 

(2)–(3a) [repealed] 

(4) ‘‘Coast Guard’’ means the organization established and 

continued under section 1 of title 14. 

(5) ‘‘commercial service’’ includes any type of trade or business involving the transportation of goods or individuals, except service performed by a combatant vessel. 

(5a) ‘‘consideration’’ means an economic benefit, inducement, 

right, or profit including pecuniary payment accruing to an individual, person, or entity, but not including a voluntary sharing of the actual expenses of the voyage, by monetary contribution or donation of fuel, food, beverage, or other supplies. 

(6) 

(7) ‘‘crude oil’’ means a liquid hydrocarbon mixture occurring 

naturally in the earth, whether or not treated to render it suitable for transportation, and includes crude oil from which certain distillate fractions may have been removed, and crude oil 

to which certain distillate fractions may have been added. 

(8) ‘‘crude oil tanker’’ means a tanker engaged in the trade 

of carrying crude oil. 

(8a) ‘‘dangerous drug’’ means a narcotic drug, a controlled 

substance, or a controlled substance analog (as defined in section 102 of the Comprehensive Drug Abuse Prevention and 

Control Act of 1970 (21 U.S.C. 802)). 

(9) ‘‘discharge’’, when referring to a substance discharged 

from a vessel, includes spilling, leaking, pumping, pouring, 

emitting, emptying, or dumping, however caused. 

(10), (10a) [repealed] 

(10b) ‘‘ferry’’ means a vessel that is used on a regular schedule— 

(A) to provide transportation only between places that 

are not more than 300 miles apart; and 

(B) to transport only— 

(i) passengers; or 

(ii) vehicles, or railroad cars, that are being used, or 

have been used, in transporting passengers or goods. 

(11) ‘‘fish’’ means finfish, mollusks, crustaceans, and all other 

forms of marine animal and plant life, except marine mammals 

and birds. 

(11a) ‘‘fishing vessel’’ means a vessel that commercially engages in the catching, taking, or harvesting of fish or an activVerDate Aug 31 2005 05:37 Sep 13, 2008 Jkt 069010 PO 00000 Frm 00015 Fmt 6659 Sfmt 6601 E:\HR\OC\SR457.XXX SR457

jbell on PROD1PC69 with REPORTS
14 

ity that can reasonably be expected to result in the catching, 

taking, or harvesting of fish. 

(11b) ‘‘fish processing vessel’’ means a vessel that commercially prepares fish or fish products other than by gutting, decapitating, gilling, skinning, shucking, icing, freezing, or brine 

øchilling.¿ chilling, but does not include a fishing vessel operating in Alaskan waters under a permit or license issued by 

Alaska that— 

(A) fillets only salmon taken by that vessel; 

(B) fillets less than 5 metric tons of such salmon during 

any 7-day period. 

(11c) ‘‘fish tender vessel’’ means a vessel that commercially 

supplies, stores, refrigerates, or transports fish, fish products, 

or materials directly related to fishing or the preparation of 

fish to or from a fishing, fish processing, or fish tender vessel 

or a fish processing facility. 

(12) [repealed] 

(13) ‘‘freight vessel’’ means a motor vessel of more than 15 

gross tons as measured under section 14502 of this title, or an 

alternate tonnage measured under section 14302 of this title as 

prescribed by the Secretary under section 14104 of this title 

that carries freight for hire, except an oceanographic research 

vessel or an offshore supply vessel. 

(13a) ‘‘Great Lakes barge’’ means a non-self-propelled vessel 

of at least 3,500 gross tons as measured under section 14502 

of this title, or an alternate tonnage measured under section 

14302 of this title as prescribed by the Secretary under section 

14104 of this title operating on the Great Lakes. 

(14) ‘‘hazardous material’’ means a liquid material or substance that is— 

(A) flammable or combustible; 

(B) designated a hazardous substance under section 

311(b) of the Federal Water Pollution Control Act (33 

U.S.C. 1321); or 

(C) designated a hazardous material under section 

5103(a) of title 49; 

(14a) ‘‘major conversion’’ means a conversion of a vessel 

that— 

(A) substantially changes the dimensions or carrying capacity of the vessel; 

(B) changes the type of the vessel; 

(C) substantially prolongs the life of the vessel; or 

(D) otherwise so changes the vessel that it is essentially 

a new vessel, as decided by the Secretary. 

(15) ‘‘marine environment’’ means— 

(A) the navigable waters of the United States and the 

land and resources in and under those waters; 

(B) the waters and fishery resources of an area over 

which the United States asserts exclusive fishery management authority; 

(C) the seabed and subsoil of the outer Continental Shelf 

of the United States, the resources of the Shelf, and the 

waters superjacent to the Shelf; and 


jbell on PROD1PC69 with REPORTS
15 

(D) the recreational, economic, and scenic values of the 

waters and resources referred to in subclauses (A)-(C) of 

this clause. 

(15a) ‘‘mobile offshore drilling unit’’ means a vessel capable 

of engaging in drilling operations for the exploration or exploitation of subsea resources. 

(16) ‘‘motor vessel’’ means a vessel propelled by machinery 

other than steam. 

(17) ‘‘nautical school vessel’’ means a vessel operated by or 

in connection with a nautical school or an educational institution under section 558 of title 40. 

(17a) ‘‘navigable waters of the United States’’ includes all 

waters of the territorial sea of the United States as described 

in Presidential Proclamation No. 5928 of December 27, 1988. 

(17b) [repealed] 

(18) ‘‘oceanographic research vessel’’ means a vessel that the 

Secretary finds is being employed only in instruction in oceanography or limnology, or both, or only in oceanographic or 

limnological research, including studies about the sea such as 

seismic, gravity meter, and magnetic exploration and other marine geophysical or geological surveys, atmospheric research, 

and biological research. 

(19) ‘‘offshore supply vessel’’ means a motor vessel of more 

than 15 gross tons but less than 500 gross tons as measured 

under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title that regularly carries 

goods, supplies, individuals in addition to the crew, or equipment in support of exploration, exploitation, or production of 

offshore mineral or energy resources. 

(20) ‘‘oil’’ includes oil of any type or in any form, including 

petroleum, fuel oil, sludge, oil refuse, and oil mixed with 

wastes except dredged spoil. 

(20a) ‘‘oil spill response vessel’’ means a vessel that is designated in its certificate of inspection as such a vessel, or that 

is adapted to respond to a discharge of oil or a hazardous material. 

(20b) ‘‘overall in length’’ means— 

(A) for a foreign vessel or a vessel engaged on a foreign 

voyage, the greater of— 

(i) 96 percent of the length on a waterline at 85 percent of the least molded depth measured from the top 

of the keel (or on a vessel designed with a rake of keel, 

on a waterline parallel to the designed waterline); or 

(ii) the length from the fore side of the stem to the 

axis of the rudder stock on that waterline; and 

(B) for any other vessel, the horizontal distance of the 

hull between the foremost part of the stem and the aftermost part of the stern, excluding fittings and attachments. 

(21) ‘‘passenger’’— 

(A) means an individual carried on the vessel except— 

(i) the owner or an individual representative of the 

owner or, in the case of a vessel under charter, an individual charterer or individual representative of the 

charterer; 


jbell on PROD1PC69 with REPORTS
16 

(ii) the master; or 

(iii) a member of the crew engaged in the business 

of the vessel who has not contributed consideration for 

carriage and who is paid for on board services; 

(B) on an offshore supply vessel, means an individual 

carried on the vessel except— 

(i) an individual included in clause (i), (ii), or (iii) of 

subparagraph (A) of this paragraph; 

(ii) an employee of the owner, or of a subcontractor 

to the owner, engaged in the business of the owner; 

(iii) an employee of the charterer, or of a subcontractor to the charterer, engaged in the business of the 

charterer; or 

(iv) an individual employed in a phase of exploration, exploitation, or production of offshore mineral 

or energy resources served by the vessel; 

(C) on a fishing vessel, fish processing vessel, or fish tender vessel, means an individual carried on the vessel except— 

(i) an individual included in clause (i), (ii), or (iii) of 

subparagraph (A) of this paragraph; 

(ii) a managing operator; 

(iii) an employee of the owner, or of a subcontractor 

to the owner, engaged in the business of the owner; 

(iv) an employee of the charterer, or of a subcontractor to the charterer, engaged in the business of the 

charterer; or 

(v) an observer or sea sampler on board the vessel 

pursuant to a requirement of State or Federal law; or 

(D) on a sailing school vessel, means an individual carried on the vessel except— 

(i) an individual included in clause (i), (ii), or (iii) of 

subparagraph (A) of this paragraph; 

(ii) an employee of the owner of the vessel engaged 

in the business of the owner, except when the vessel 

is operating under a demise charter; 

(iii) an employee of the demise charterer of the vessel engaged in the business of the demise charterer; or 

(iv) a sailing school instructor or sailing school student. 

(21a) ‘‘passenger for hire’’ means a passenger for whom consideration is contributed as a condition of carriage on the vessel, whether directly or indirectly flowing to the owner, 

charterer, operator, agent, or any other person having an interest in the vessel. 

(22) ‘‘passenger vessel’’ means a vessel of at least 100 gross 

tons as measured under section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the Secretary under section 14104 of this title— 

(A) carrying more than 12 passengers, including at least 

one passenger for hire; 

(B) that is chartered and carrying more than 12 passengers; 

(C) that is a submersible vessel carrying at least one 

passenger for hire; or 


jbell on PROD1PC69 with REPORTS
17 

(D) that is a ferry carrying a passenger. 

(23) ‘‘product carrier’’ means a tanker engaged in the trade 

of carrying oil except crude oil. 

(24) ‘‘public vessel’’ means a vessel that— 

(A) is owned, or demise chartered, and operated by the 

United States Government or a government of a foreign 

country; and 

(B) is not engaged in commercial service. 

(25) ‘‘recreational vessel’’ means a vessel— 

(A) being manufactured or operated primarily for pleasure; or 

(B) leased, rented, or chartered to another for the latter’s 

pleasure. 

(26) ‘‘recreational vessel manufacturer’’ means a person engaged in the manufacturing, construction, assembly, or importation of recreational vessels, components, or associated equipment. 

(26a) ‘‘riding gang member’’ means an individual who— 

(A) has not been issued a merchant mariner document 

under chapter 73; 

(B) does not perform— 

(i) watchstanding, automated engine room duty 

watch, or personnel safety functions; or 

(ii) cargo handling functions, including any activity 

relating to the loading or unloading of cargo, the operation of cargo-related equipment (whether or not integral to the vessel), and the handling of mooring lines 

on the dock when the vessel is made fast or let go; 

(C) does not serve as part of the crew complement required under section 8101; 

(D) is not a member of the steward’s department; and 

(E) is not a citizen or temporary or permanent resident 

of a country designated by the United States as a sponsor 

of terrorism or any other country that the Secretary, in 

consultation with the Secretary of State and the heads of 

other appropriate United States agencies, determines to be 

a security threat to the United States. 

(27) ‘‘sailing instruction’’ means teaching, research, and practical experience in operating vessels propelled primarily by sail 

and may include— 

(A) any subject related to that operation and to the sea, 

including seamanship, navigation, oceanography, other 

nautical and marine sciences, and maritime history and 

literature; and 

(B) only when in conjunction with a subject referred to 

in subclause (A) of this clause, instruction in mathematics 

and language arts skills to sailing school students having 

learning disabilities. 

(28) ‘‘sailing school instructor’’ means an individual who is on 

board a sailing school vessel to provide sailing instruction, but 

does not include an operator or crewmember who is among 

those required to be on board the vessel to meet a requirement 

established under part F of this subtitle 

(29) ‘‘sailing school student’’ means an individual who is on 

board a sailing school vessel to receive sailing instruction. 


jbell on PROD1PC69 with REPORTS
18 

(30) ‘‘sailing school vessel’’ means a vessel— 

(A) that is less than 500 gross tons as measured under 

section 14502 of this title, or an alternate tonnage measured under section 14302 of this title as prescribed by the 

Secretary under section 14104 of this title; 

(B) carrying more than 6 individuals who are sailing 

school instructors or sailing school students; 

(C) principally equipped for propulsion by sail, even if 

the vessel has an auxiliary means of propulsion; and 

(D) owned or demise chartered, and operated by an organization described in section 501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)(3)) and exempt from 

tax under section 501(a) of that Code, or by a State or political subdivision of a State, during times that the vessel 

is operated by the organization, State, or political subdivision only for sailing instruction. 

(31) ‘‘scientific personnel’’ means individuals on board an 

oceanographic research vessel only to engage in scientific research, or to instruct or receive instruction in oceanography or 

limnology. 

(32) ‘‘seagoing barge’’ means a non-self-propelled vessel of at 

least 100 gross tons as measured under section 14502 of this 

title, or an alternate tonnage measured under section 14302 of 

this title as prescribed by the Secretary under section 14104 of 

this title making voyages beyond the Boundary Line. 

(33) ‘‘seagoing motor vessel’’ means a motor vessel of at least 

300 gross tons as measured under section 14502 of this title, 

or an alternate tonnage measured under section 14302 of this 

title as prescribed by the Secretary under section 14104 of this 

title making voyages beyond the Boundary Line. 

(34) ‘‘Secretary’’ means the Secretary of the department in 

which the Coast Guard is operating. 

(35) ‘‘small passenger vessel’’ means a wing-in-ground craft, 

regardless of tonnage, carrying at least one passenger for hire, 

and a vessel of less than 100 gross tons as measured under 

section 14502 of this title, or an alternate tonnage measured 

under section 14302 of this title as prescribed by the Secretary 

under section 14104 of this title— 

(A) carrying more than 6 passengers, including at least 

one passenger for hire; 

(B) that is chartered with the crew provided or specified 

by the owner or the owner’s representative and carrying 

more than 6 passengers; 

(C) that is chartered with no crew provided or specified 

by the owner or the owner’s representative and carrying 

more than 12 passengers; 

(D) that is a submersible vessel carrying at least one 

passenger for hire; or 

(E) that is a ferry carrying more than 6 passengers. 

(36) [repealed] 

(37) ‘‘steam vessel’’ means a vessel propelled in whole or in 

part by steam, except a recreational vessel of not more than 40 

feet in length. 

(37a) ‘‘submersible vessel’’ means a vessel that is capable of 

operating below the surface of the water. 


jbell on PROD1PC69 with REPORTS
19 

(38) ‘‘tanker’’ means a self-propelled tank vessel constructed 

or adapted primarily to carry oil or hazardous material in bulk 

in the cargo spaces. 

(39) ‘‘tank vessel’’ means a vessel that is constructed or 

adapted to carry, or that carries, oil or hazardous material in 

bulk as cargo or cargo residue, and that— 

(A) is a vessel of the United States; 

(B) operates on the navigable waters of the United 

States; or 

(C) transfers oil or hazardous material in a port or place 

subject to the jurisdiction of the United States. 

(40) ‘‘towing vessel’’ means a commercial vessel engaged in 

or intending to engage in the service of pulling, pushing, or 

hauling along side, or any combination of pulling, pushing, or 

hauling along side. 

(41) [repealed] 

(42) ‘‘uninspected passenger vessel’’ means an uninspected 

vessel— 

(A) of at least 100 gross tons as measured under section 

14502 of this title, or an alternate tonnage measured 

under section 14302 of this title as prescribed by the Secretary under section 14104 of this title— 

(i) carrying not more than 12 passengers, including 

at least one passenger for hire; or 

(ii) that is chartered with the crew provided or specified by the owner or the owner’s representative and 

carrying not more than 12 passengers; and 

(B) of less than 100 gross tons as measured under section 14502 of this title, or an alternate tonnage measured 

under section 14302 of this title as prescribed by the Secretary under section 14104 of this title— 

(i) carrying not more than 6 passengers, including at 

least one passenger for hire; or 

(ii) that is chartered with the crew provided or specified by the owner or the owner’s representative and 

carrying not more than 6 passengers. 

(43) ‘‘uninspected vessel’’ means a vessel not subject to inspection under section 3301 of this title that is not a recreational vessel. 

(44)–(46) [repealed] 

(47) ‘‘vessel of war’’ means a vessel— 

(A) belonging to the armed forces of a country; 

(B) bearing the external marks distinguishing vessels of 

war of that country; 

(C) under the command of an officer commissioned by 

the government of that country and whose name appears 

in the appropriate service list or its equivalent; and 

(D) staffed by a crew under regular armed forces discipline. 

(48) ‘‘wing-in-ground craft’’ means a vessel that is capable of 

operating completely above the surface of the water on a dynamic air cushion created by aerodynamic lift due to the 

ground effect between the vessel and the water’s surface. 


jbell on PROD1PC69 with REPORTS
20 

SUBTITLE V. MERCHANT MARINE

PART B. MERCHANT MARINE SERVICE

CHAPTER 515. STATE MARITIME ACADEMY SUPPORT PROGRAM

§ 51509. Student incentive payment agreements 

(a) GENERAL AUTHORITY.—If a State maritime academy has an 

agreement with the Secretary of Transportation under section 

51505 of this title, the Secretary may make an agreement with a 

student at the academy who is a citizen of the United States to 

make student incentive payments øto the individual.¿ to the individual or the academy, as determined by the Secretary. An agreement with a student may not be effective for more than 4 academic 

years. The Secretary shall allocate payments under this section 

among the various State maritime academies in an equitable manner. 

(b) PAYMENTS.—Payments under an agreement under this section shall be equal to ø$4,000¿ $8,000 each academic year and be 

paid, øas prescribed by the Secretary, while the individual is attending the academy.¿ subject to such conditions as may be prescribed by the Secretary. The payments shall be used for uniforms, 

tuition, books, and subsistence. 

ø(c) ENLISTED RESERVE STATUS.—An agreement under this section shall require the student to accept enlisted reserve status in 

the Navy Reserve (including the Merchant Marine Reserve, Navy 

Reserve) or the Coast Guard Reserve before receiving any payments under the agreement.¿ 

(c) MIDSHIPMAN AND ENLISTED RESERVE STATUS.—Each agreement entered into under this section shall require the individual to 

accept midshipman and enlisted reserve status in the United States 

Navy Reserve (including the Merchant Marine Reserve) or the 

United States Coast Guard Reserve before any payments are made 

under the agreement. 

(d) AGREEMENT REQUIREMENTS.—An agreement under this section shall require the student to— 

(1) complete the course of instruction at the academy the individual is attending; 

(2) take the examination for a license as an officer in the 

merchant marine of the United States before graduation from 

the academy and fulfill the requirements for such a license 

within 3 months after graduation from the academy; 

(3) maintain a valid license as an officer in the merchant marine of the United States for at least 6 years after graduation 

from the academy, accompanied by the appropriate national 

and international endorsements and certification required by 

the Coast Guard for service aboard vessels on domestic and 

international voyages; 

(4) accept, if tendered, an appointment as a commissioned officer in the Navy Reserve (including the Merchant Marine Reserve, Navy Reserve), the Coast Guard Reserve, or any other 

reserve unit of an armed force of the United States, and, if tendered the appointment, to serve for at least 6 years after graduation from the academy; 


jbell on PROD1PC69 with REPORTS
21 

(5) serve the foreign and domestic commerce and the national defense of the United States for at least 3 years after 

graduation from the academy— 

(A) as a merchant marine officer on a documented vessel 

or a vessel owned and operated by the United States Government or by a State; 

(B) as an employee in a United States maritime-related 

industry, profession, or marine science (as determined by 

the Secretary), if the Secretary determines that service 

under subparagraph (A) is not available to the individual; 

(C) as a commissioned officer on active duty in an armed 

force of the United States, as a commissioned officer in the 

National Oceanic and Atmospheric Administration, or in 

other maritime-related Federal employment which serves 

the national security interests of the United States, as determined by the Secretary; or 

(D) by a combination of the service alternatives referred 

to in subparagraphs (A)-(C); and 

(6) report to the Secretary on compliance with this subsection. 

(e) FAILURE TO COMPLETE COURSE OF INSTRUCTION.— (1) ACTIVE DUTY.—If the Secretary of Transportation determines that an individual who has accepted the payments described in subsection (b) for a minimum of 2 academic years 

has failed to fulfill the part of the agreement described in subsection (d)(1), the individual may be ordered by the Secretary 

of Defense to serve on active duty in the armed forces of the 

United States for a period of not more than 2 years. In cases 

of hardship as determined by the Secretary of Transportation, 

the Secretary of Transportation may waive this paragraph in 

whole or in part. 

(2) RECOVERY OF COST.—If the Secretary of Defense is unable 

or unwilling to order an individual to serve on active duty 

under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided 

would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the 

amount of student incentive payments, plus interest and attorney fees. The Secretary may reduce the amount to be recovered 

to reflect partial performance of service obligations and other 

factors the Secretary determines merit a reduction. 

(f) FAILURE TO CARRY OUT OTHER REQUIREMENTS.— 

(1) ACTIVE DUTY.—If the Secretary of Transportation determines that an individual has failed to fulfill any part of the 

agreement described in subsection (d)(2)–(6), the individual 

may be ordered to serve on active duty for a period of at least 

2 years but not more than the unexpired period (as determined 

by the Secretary) of the service required by subsection (d)(5). 

The Secretary of Transportation, in consultation with the Secretary of Defense, shall determine in which service the individual shall serve. In cases of hardship as determined by the 

Secretary of Transportation, the Secretary of Transportation 

may waive this paragraph in whole or in part. 

(2) RECOVERY OF COST.—If the Secretary of Defense is unable 

or unwilling to order an individual to serve on active duty 


jbell on PROD1PC69 with REPORTS
22 

under paragraph (1), or if the Secretary of Transportation determines that reimbursement of the cost of education provided 

would better serve the interests of the United States, the Secretary of Transportation may recover from the individual the 

amount of student incentive payments, plus interest and attorney fees. The Secretary may reduce the amount to be recovered 

to reflect partial performance of service obligations and other 

factors the Secretary determines merit a reduction. 

(g) ACTIONS TO RECOVER COST.—To aid in the recovery of the 

cost of education provided by the Government under a commitment 

agreement under this section, the Secretary of Transportation 

may— 

(1) request the Attorney General to bring a civil action 

against the individual; and 

(2) make use of the Federal debt collection procedures in 

chapter 176 of title 28 or other applicable administrative remedies. 

SUBTITLE V. MERCHANT MARINE

PART C. FINANCIAL ASSISTANCE PROGRAMS

CHAPTER 539. WAR RISK INSURANCE

§ 53912. Expiration date 

The authority of the Secretary of Transportation to provide insurance and reinsurance under this chapter expires on øDecember 

31, 2010.¿ December 31, 2015. 

CHAPTER 541—MISCELLANEOUS 

Sec. 

§ 54101. Assistance for small shipyards and maritime communities 

§ 54101. Assistance for small shipyards and maritime communities 

(a) ESTABLISHMENT OF PROGRAM.—Subject to the availability of 

appropriations, the Administrator of the Maritime Administration 

shall execute agreements with shipyards to provide assistance— 

(1) in the form of grants, loans, and loan guarantees to small 

shipyards for capital improvements; and 

(2) for maritime training programs to foster technical skills 

and operational productivity in communities whose economies 

are related to or dependent upon the maritime industry. 

(b) AWARDS.—In providing assistance under the program, the Administrator shall— 

(1) take into account— 

(A) the economic circumstances and conditions of maritime communities; 

(B) projects that would be effective in fostering efficiency, 

competitive operations, and quality ship construction, repair, and reconfiguration; and 

(C) projects that would be effective in fostering employee 

skills and enhancing productivity; and 

(2) make grants within 120 days after the date of enactment 

of the appropriations Act for the fiscal year concerned. 

(c) USE OF FUNDS.— 


jbell on PROD1PC69 with REPORTS
23 

(1) IN GENERAL.—Assistance provided under this section may 

be used— 

(A) to make capital and related improvements in small 

shipyards located in or near maritime communities; 

(B) to provide training for workers in communities whose 

economies are related to the maritime industry; and 

(C) for such other purposes as the Administrator determines to be consistent with and supplemental to such activities. 

(2) ADMINISTRATIVE COSTS.—Not more than 2 percent of 

amounts made available to carry out the program may be used 

for the necessary costs of grant administration. 

(d) PROHIBITED USES.—Grants awarded under this section may 

not be used to construct buildings or other physical facilities or to 

acquire land unless such use is specifically approved by the Administrator in support of subsection (c)(1)(C). 

(e) MATCHING REQUIREMENTS; ALLOCATION.— 

(1) FEDERAL FUNDING.—Except as provided in paragraph (2), 

Federal funds for any eligible project under this section shall 

not exceed 75 percent of the total cost of such project. 

(2) EXCEPTION.—If the Administrator determines that a proposed project merits support and cannot be undertaken without 

a higher percentage of Federal financial assistance, the Administrator may award a grant for such project with a lesser 

matching requirement than is described in paragraph (1). 

(3) ALLOCATION OF FUNDS.—The Administrator may not 

award more than 25 percent of the funds appropriated to carry 

out this section for any fiscal year to any small shipyard in one 

geographic location that has more than 600 employees. 

(f) APPLICATIONS.— 

(1) IN GENERAL.—To be eligible for assistance under this section, an applicant shall submit an application, in such form, 

and containing such information and assurances as the Administrator may require, within 60 days after the date of enactment 

of the appropriations Act for the fiscal year concerned. 

(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSE- MENT.—Each application submitted under paragraph (1) shall 

include— 

(A) a comprehensive description of— 

(i) the need for the project; 

(ii) the methodology for implementing the project; 

and 

(iii) any existing programs or arrangements that can 

be used to supplement or leverage assistance under the 

program. 

(3) PROCEDURAL SAFEGUARDS.—The Administrator, in consultation with the Office of the Inspector General, shall issue 

guidelines to establish appropriate accounting, reporting, and 

review procedures to ensure that— 

(A) grant funds are used for the purposes for which they 

were made available; 

(B) grantees have properly accounted for all expenditures 

of grant funds; and 

(C) grant funds not used for such purposes and amounts 

not obligated or expended are returned. 


jbell on PROD1PC69 with REPORTS
24 

(4) PROJECT APPROVAL REQUIRED.—The Administrator may 

not award a grant under this section unless the Administrator 

determines that— 

(A) sufficient funding is available to meet the matching 

requirements of subsection (e); 

(B) the project will be completed without unreasonable 

delay; and 

(C) the recipient has authority to carry out the proposed 

project. 

(g) AUDITS AND EXAMINATIONS.—All grantees under this section 

shall maintain such records as the Administrator may require and 

make such records available for review and audit by the Administrator. 

(h) SMALL SHIPYARD DEFINED.—In this section, the term ‘small 

shipyard’ means a shipyard facility in one geographic location that 

does not have more than 1,200 employees. 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Administrator of the Maritime Administration for each of fiscal years 2006 through 2010 to carry out this section— 

(1) $5,000,000 for training grants; and 

(2) $25,000,000 for capital and related improvements.’’. 

PART D. PROMOTIONAL PROGRAMS

CHAPTER 553. PASSENGER AND CARGO PREFERENCES

SUBCHAPTER I. GENERAL

§ 55305. Cargoes procured, furnished, or financed by the 

United States Government 

(a) DEFINITION.—In this section, the term ‘privately-owned commercial vessel of the United States’ does not include a vessel that, 

after September 21, 1961, was built or rebuilt outside the United 

States or documented under the laws of a foreign country, until the 

vessel has been documented under the laws of the United States 

for at least 3 years. 

(b) MINIMUM TONNAGE.—When the United States Government 

procures, contracts for, or otherwise obtains for its own account, or 

furnishes to or for the account of a foreign øcountry¿ country, organization, or persons without provision for reimbursement, any 

equipment, materials, or øcommodities,¿ commodities, or provides 

financing in any way with Federal funds for the account of any persons unless otherwise exempted, within or without the United 

States, or advances funds or credits, or guarantees the convertibility of foreign currencies in connection with the furnishing or obtaining of the equipment, materials, or commodities, the appropriate agencies shall take steps necessary and practicable to ensure 

that at least 50 percent of the gross tonnage of the equipment, materials, or commodities (computed separately for dry bulk carriers, 

dry cargo liners, and tankers) which may be transported on ocean 

vessels is transported on privately-owned commercial vessels of the 

United States, to the extent those vessels are available at fair and 

reasonable rates for commercial vessels of the United States, in a 

manner that will ensure a fair and reasonable participation of comVerDate Aug 31 2005 05:37 Sep 13, 2008 Jkt 069010 PO 00000 Frm 00026 Fmt 6659 Sfmt 6601 E:\HR\OC\SR457.XXX SR457

jbell on PROD1PC69 with REPORTS
25 

mercial vessels of the United States in those cargoes by geographic 

areas. 

(c) WAIVERS.—The President, the Secretary of Defense, or Congress (by concurrent resolution or otherwise) may waive this section temporarily by— 

(1) declaring the existence of an emergency justifying a waiver; and 

(2) notifying the appropriate agencies of the waiver. 

ø(d) PROGRAMS OF OTHER AGENCIES.—An agency having responsibility under this section shall administer its programs with respect to this section under regulations prescribed by the Secretary 

of Transportation. The Secretary shall review the administration of 

those programs and report annually to Congress on their administration.¿ 

(d) PROGRAMS OF OTHER AGENCIES.— 

(1) Each department or agency that has responsibility for a 

program under this section shall administer that program with 

respect to this section under regulations and guidance issued by 

the Secretary of Transportation. The Secretary, after consulting 

with the department or agency or organization or person involved, shall have the sole responsibility for determining if a 

program is subject to the requirements of this section. 

(2) The Secretary— 

(A) shall conduct an annual review of the administration 

of programs determined pursuant to paragraph (1) as subject to the requirements of this section; 

(B) may direct agencies to require the transportation on 

United States-flagged vessels of cargo shipments not otherwise subject to this section in equivalent amounts to cargo 

determined to have been shipped on foreign carriers in violation of this section; 

(C) may impose on any person that violates this section, 

or a regulation prescribed under this section, a civil penalty 

of not more than $25,000 for each violation willfully and 

knowingly committed, with each day of a continuing violation following the date of shipment to be a separate violation; and 

(D) may take other measures as appropriate under the 

Federal Acquisition Regulations issued pursuant to section 

25(c)(1) of the Office of Federal Procurement Policy Act (41 

U.S.C. 421(c)(1) or contract with respect to each violation. 

SUBCHAPTER II. EXPORT TRANSPORTATION OF AGRICULTURAL

COMMODITIES

§ 55314. Transportation requirements for certain exports 

sponsored by the Secretary of Agriculture 

(a) MINIMUM TONNAGE.— 

(1) IN GENERAL.—In addition to the requirement under section 55305 of this title for the transportation of a percentage 

of gross tonnage on commercial vessels of the United States, 25 

percent of the gross tonnage of agricultural commodities or 

their products specified in subsection (b) shall be transported 

each øcalendar¿ fiscal year on commercial vessels of the 

United States that— 


jbell on PROD1PC69 with REPORTS
26 

(A) are necessary for national security; and 

(B) if more than 25 years old, were rebuilt within the 

last 5 years and certified by the Secretary of Transportation as having a useful life of at least 5 years after that 

rebuilding. 

(2) øCALENDAR¿ FISCAL YEAR.—To provide for effective and 

equitable administration of the cargo preference laws, the 

øcalendar¿ fiscal year for the purpose of compliance with minimum percentage requirements is the 12-month period beginning October 1 of each year. 

(b) APPLICABLE EXPORT ACTIVITY.—This section applies to export 

activity (except inspection or weighing activities, other activities 

carried out for health or safety, or technical assistance provided in 

the handling of commercial transactions) of the Secretary of Agriculture or the Commodity Credit Corporation— 

(1) carried out under the Food for Peace Act (7 U.S.C. 1691 

et seq.); 

(2) carried out under section 416 of the Agricultural Act of 

1949 (7 U.S.C. 1431); 

(3) carried out under the Bill Emerson Humanitarian Trust 

Act (7 U.S.C. 1736f–1); 

(4) under which agricultural commodities or their products 

are— 

(A) donated through foreign governments or private or 

public agencies, including intergovernmental organizations; or 

(B) sold for foreign currencies or for dollars on credit 

terms of more than 10 years; 

(5) under which agricultural commodities or their products 

are made available for emergency food relief at less than prevailing world market prices; 

(6) under which a cash grant is made directly or through an 

intermediary to a foreign purchaser to enable the purchaser to 

obtain United States agricultural commodities or their products in an amount greater than the difference between the prevailing world market price and the United States market price, 

free along side vessel at a United States port; or 

(7) under which agricultural commodities owned or controlled by or under loan from the Corporation are exchanged 

or bartered for materials, goods, equipment, or services produced in foreign countries, except export activities described in 

section 55313(5) of this title. 

(c) ADDITIONAL REQUIREMENTS.— 

(1) APPLICATION OF SECTION 55305.—The requirement for 

transportation on vessels of the United States under subsection 

(a) is subject to the same terms and conditions as provided in 

section 55305 of this title. 

(2) ALLOCATION OF COMMODITIES.—Subject to paragraph (3), 

in carrying out this section and section 55305 of this title, the 

Corporation shall take steps necessary and practicable, and 

consistent with this section and section 55305, without detriment to any port range to allocate, on the principle of lowest 

landed cost without regard to the country of registry of the vessel, 25 percent of the bagged, processed, or fortified commodVerDate Aug 31 2005 05:37 Sep 13, 2008 Jkt 069010 PO 00000 Frm 00028 Fmt 6659 Sfmt 6601 E:\HR\OC\SR457.XXX SR457

jbell on PROD1PC69 with REPORTS
27 

ities provided under title II of the Food for Peace Act (7 U.S.C. 

1721 et seq.). 

(3) CALCULATIONS.—In carrying out paragraph (2), first there 

shall be calculated the allocation of 100 percent of the quantity 

to be procured on an overall lowest landed cost basis without 

regard to the country of registry of the vessel, and then there 

shall be allocated to the Great Lakes port range any cargoes 

for which it has the lowest landed cost under that calculation. 

The requirements for transportation on vessels of the United 

States under this section and section 55305 of this title do not 

apply to commodities allocated to the Great Lakes port range 

under paragraph (2). Commodities allocated to the Great Lakes 

port range under paragraph (2) may not be reallocated or diverted to another port range to meet those requirements to the 

extent that the total tonnage of commodities to which paragraph (2) applies that is furnished and transported from the 

Great Lakes port range is less than 25 percent of the total annual tonnage of the commodities furnished. 

(4) AWARDING CONTRACTS.—In awarding a contract for the 

transportation by vessel of commodities from the Great Lakes 

port range pursuant to an export activity referred to in subsection (b), an agency— 

(A) shall consider expressions of freight interest for any 

vessel from a vessel operator who meets reasonable requirements for financial and operational integrity; and 

(B) may not deny award of the contract to a person 

based on the type of vessel on which the transportation 

would be provided (including on the basis that the transportation would not be provided on a liner vessel, as that 

term is used in the Shipping Act of 1984, as in effect on 

November 14, 1995), if the person otherwise satisfies reasonable requirements for financial and operational integrity. 

(5) NONAVAILABILITY OF VESSELS.—A determination of nonavailability of vessels of the United States resulting from the 

application of this subsection may not reduce the gross tonnage 

of commodities required by this section and section 55305 of 

this title to be transported on vessels of the United States. 

LONGSHORE AND HARBOR WORKERS’ COMPENSATION ACT 

SEC. 2. DEFINITIONS. 

[33 U.S.C. 902] 

When used in this Act— 

(1) The term ‘‘person’’ means individual, partnership, corporation, or association. 

(2) The term ‘‘injury’’ means accidental injury or death arising out of and in the course of employment, and such occupational disease or infection as arises naturally out of such employment or as naturally or unavoidably results from such accidental injury, and includes an injury caused by the willful act 

of a third person directed against an employee because of his 

employment. 

(3) The term ‘‘employee’’ means any person engaged in maritime employment, including any longshoreman or other person 


jbell on PROD1PC69 with REPORTS
28 

engaged in longshoring operations, and any harbor-worker including a ship repairman, shipbuilder, and ship-breaker, but 

such term does not include— 

(A) individuals employed exclusively to perform office 

clerical, secretarial, security, or data processing work; 

(B) individuals employed by a club, camp, recreational 

operation, restaurant, museum, or retail outlet; 

(C) individuals employed by a marina and who are not 

engaged in construction, replacement, or expansion of such 

marina (except for routine maintenance); 

(D) individuals who (i) are employed by suppliers, transporters, or vendors, (ii) are temporarily doing business on 

the premises of an employer described in paragraph (4), 

and (iii) are not engaged in work normally performed by 

employees of that employer under this Act; 

(E) acquaculture workers; 

ø(F) individuals employed to build, repair, or dismantle 

any recreational vessel under sixty-five feet in length;¿ 

(F) individuals who— 

(i) are employed to manufacture any recreational vessel under 165 feet in length; or 

(ii) are employed to repair any recreational vessel or 

to dismantle any part of any recreational vessel in connection with repair of the vessel; 

(G) a master or member of a crew of any vessel; or 

(H) any person engaged by a master to load or unload 

or repair any small vessel under eighteen tons net; if individuals described in clauses (A) through (F) are subject to 

coverage under a State workers’ compensation law. 

(4) The term ‘‘employer’’ means an employer any of whose 

employees are employed in maritime employment, in whole or 

in part, upon the navigable waters of the United States (including any adjoining pier, wharf, dry dock, terminal, building 

way, marine railway, or other adjoining area customarily used 

by an employer in loading, unloading, repairing, or building a 

vessel). 

(5) The term ‘‘carrier’’ means any person or fund authorized 

under section 32 to insure under this Act and includes self-insurers. 

(6) The term ‘‘Secretary’’ means the Secretary of Labor. 

(7) The term ‘‘deputy commissioner’’ means the deputy commissioner having jurisdiction in respect of an injury or death. 

(8) The term ‘‘State’’ includes a Territory and the District of 

Columbia. 

(9) The term ‘‘United States’’ when used in a geographical 

sense means the several States and Territories and the District 

of Columbia, including the territorial waters thereof. 

(10) ‘‘Disability’’ means incapacity because of injury to earn 

the wages which the employee was receiving at the time of injury in the same or any other employment; but such term shall 

mean permanent impairment, determined (to the extent covered thereby) under the guides to the evaluation of permanent 

impairment promulgated and modified from time to time by 

the American Medical Association, in the case of an individual 

whose claim is described in section 10(d)(2). 


jbell on PROD1PC69 with REPORTS
29 

(11) ‘‘Death’’ as a basis for a right to compensation means 

only death resulting from an injury. 

(12) ‘‘Compensation’’ means the money allowance payable to 

an employee or to his dependents as provided for in this Act, 

and includes funeral benefits provided therein. 

(13) The term ‘‘wages’’ means the money rate at which the 

service rendered by an employee is compensated by an employer under the contract of hiring in force at the time of the 

injury, including the reasonable value of any advantage which 

is received from the employer and included for purposes of any 

withholding of tax under subtitle C of the Internal Revenue 

Code of 1954 (relating to employment taxes). The term wages 

does not include fringe benefits, including (but not limited to) 

employer payments for or contributions to a retirement, pension, health and welfare, life insurance, training, social security or other employee or dependent benefit plan for the employee’s or dependent’s benefit, or any other employee’s dependent entitlement. 

(14) ‘‘Child’’ shall include a posthumous child, a child legally 

adopted prior to the injury of the employee, a child in relation 

to whom the deceased employee stood in loco parentis for at 

least one year prior to the time of injury, and a stepchild or 

acknowledged illegitimate child dependent upon the deceased, 

but does not include married children unless wholly dependent 

on him. ‘‘Grandchild’’ means a child as above defined of a child 

as above defined. ‘‘Brother’’ and ‘‘sister’’ include stepbrothers 

and stepsisters, half brothers and half sisters, and brothers 

and sisters by adoption, but does not include married brothers 

nor married sisters unless wholly dependent on the employee. 

‘‘Child’’, ‘‘grandchild’’, ‘‘brother’’, and ‘‘sister’’ include only a person who is under eighteen years of age, or who, though eighteen years of age or over, is (1) wholly dependent upon the employee and incapable of self-support by reason of mental or 

physical disability, or (2) a student as defined in paragraph 

(19) of this section. 

(15) The term ‘‘parent’’ includes step-parents and parents by 

adoption, parents-in-law, and any person who for more than 

three years prior to the death of the deceased employee stood 

in the place of a parent to him, if dependent on the injured employee. 

(16) The terms ‘‘widow or widower’’ includes only the decedent’s wife or husband living with or dependent for support 

upon him or her at the time of his or her death; or living apart 

for justifiable cause or by reason of his or her desertion at such 

time. 

(17) The terms ‘‘adoption’’ or ‘‘adopted’’ mean legal adoption 

prior to the time of the injury. 

(18) The term ‘‘student’’ means a person regularly pursuing 

a full-time course of study or training at an institution which 

is— 

(A) a school or college or university operated or directly 

supported by the United States, or by any State or local 

government or political subdivision thereof, 


jbell on PROD1PC69 with REPORTS
30 

(B) a school or college or university which has been accredited by a State or by a State recognized or nationally 

recognized accrediting agency or body, 

(C) a school or college or university not so accredited but 

whose credits are accepted, on transfer, by not less than 

three institutions which are so accredited, for credit on the 

same basis as if transferred from an institution so accredited, or 

(D) an additional type of educational or training institution as defined by the Secretary, but not after he reaches 

the age of twenty-three or has completed four years of education beyond the high school level, except that, where his 

twenty-third birthday occurs during a semester or other 

enrollment period, he shall continue to be considered a student until the end of such semester or other enrollment period. A child shall not be deemed to have ceased to be a 

student during any interim between school years if the interim does not exceed five months and if he shows to the 

satisfaction of the Secretary that he has a bona fide intention of continuing to pursue a full-time course of education 

or training during the semester or other enrollment period 

immediately following the interim or during periods of reasonable duration during which, in the judgment of the Secretary, he is prevented by factors beyond his control from 

pursuing his education. A child shall not be deemed to be 

a student under this Act during a period of service in the 

Armed Forces of the United States. 

(19) The term ‘‘national average weekly wage’’ means the national average weekly earnings of production or nonsupervisory 

workers on private nonagricultural payrolls. 

(20) The term ‘‘Board’’ shall mean the Benefits Review 

Board. 

(21) Unless the context requires otherwise, the term ‘‘vessel’’ 

means any vessel upon which or in connection with which any 

person entitled to benefits under this Act suffers injury or 

death arising out of or in the course of his employment, and 

said vessel’s owner, owner pro hac vice, agent, operator, charter or bare boat charterer, master, officer, or crew member. 

(22) The singular includes the plural and the masculine includes the feminine and neuter. 

Æ 


jbell on PROD1PC69 with REPORTS