I 

108TH CONGRESS 

1ST SESSION H. R. 2847

To amend the Merchant Marine Act, 1920, to allow transportation of certain 

agricultural goods and livestock in Hawaiian noncontiguous trade on 

foreign-flag vessels, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2003

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

on Transportation and Infrastructure, and in addition to the Committee 

on Armed Services, 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 the Merchant Marine Act, 1920, to allow transportation of certain agricultural goods and livestock in Hawaiian noncontiguous trade on foreign-flag 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 ‘‘Hawaii Agriculture/

5 Livestock Shipping Open Market Act of 2003’’. 
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1 SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE. 

2 (a) IN GENERAL.—Section 27 of the Merchant Ma3 rine Act, 1929 (46 App. U.S.C. 883) is amended by insert4 ing ‘‘(a) IN GENERAL.—’’ before the first sentence, and 

5 by adding at the end the following: 

6 ‘‘(b) NONCONTIGUOUS TRADE EXEMPTION.—Sub7 section (a) shall not apply with respect to transportation 

8 in Hawaiian noncontiguous trade of merchandise that is 

9 a forest product (as that term is defined in section 3(11) 

10 of the Shipping Act of 1984 (46 App. U.S.C. 1702(11))), 

11 agricultural products (as that term is defined in section 

12 101(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 

13 5602(1))), or livestock (as that term is defined in section 

14 2(4) of the Packers and Stockyards Act, 1921 (7 U.S.C. 

15 182(4))), on a foreign qualified freight vessel for which 

16 the Secretary of Transportation has issued a certificate 

17 of documentation. 

18 ‘‘(c) DEFINITIONS.—In this section: 

19 ‘‘(1) FOREIGN QUALIFIED FREIGHT VESSEL.—

20 The term ‘foreign qualified freight vessel’ means a 

21 freight vessel (as that term is defined in section 

22 2101 of title 46, United States Code) of not less 

23 than 1,000 gross tons that—

24 ‘‘(A) was not built in the United States (or 

25 if rebuilt, not rebuilt in the United States); 

26 ‘‘(B) is registered in a foreign country; and 
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1 ‘‘(C) employs United States citizens to the 

2 extent required of vessels registered under sec3 tion 12102 of this title. 

4 ‘‘(2) HAWAIIAN NONCONTIGUOUS TRADE.—The 

5 term ‘Hawaiian noncontiguous trade’ means—

6 ‘‘(A) trade between a point in the contig7 uous 48 States or Alaska and a point in Ha8 waii; or 

9 ‘‘(B) trade between any point in Hawaii 

10 and any other point in Hawaii.’’. 

11 (b) COASTWISE ENDORSEMENTS.—12106(b) of title 

12 46, United States Code, is amended—

13 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; 

14 (2) by inserting ‘‘to paragraph (2) and’’ after 

15 ‘‘Subject’’; and 

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

17 ‘‘(2)(A) Paragraph (1) shall not apply with respect 

18 to a foreign qualified freight vessel used for transportation 

19 referred to in section 27(b) of the Merchant Marine Act, 

20 1920 (46 App. U.S.C. 883(b)), for which the Secretary 

21 of Transportation has issued a certificate of documenta22 tion. 

23 ‘‘(B) In subparagraph (A) the term ‘foreign qualified 

24 freight vessel’ has the meaning given that term in section 
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1 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 

2 883(c)).’’. 

3 (c) FOREIGN TRANSFER.—Section 9(c) of the Ship4 ping Act, 1916 (46 App. U.S.C. 808) is amended by in5 serting ‘‘(1)’’ before the first sentence, and by adding at 

6 the end the following: 

7 ‘‘(2)(A) Notwithstanding paragraph (1), a foreign 

8 qualified freight vessel for which the Secretary has issued 

9 a certificate of documentation after the date of enactment 

10 of this Act and that is used solely for transportation re11 ferred to in section 27(b) of the Merchant Marine Act, 

12 1920 (46 App. U.S.C. 883(b)) may be placed under for13 eign registry without the approval of the Secretary at any 

14 time after that vessel is issued a certificate of documenta15 tion. At such time as that vessel is placed under foreign 

16 registry, the Secretary shall revoke the certificate of docu17 mentation issued by the Secretary. 

18 ‘‘(B) In subparagraph (A) the term ‘foreign qualified 

19 freight vessel’ has the meaning given that term in section 

20 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 

21 883(c)).’’.

22 SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS. 

23 (a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, 

24 AND ASSOCIATIONS.—Section 2 of the Shipping Act, 1916 
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1 (46 U.S.C. App. 802) is amended by adding at the end 

2 the following: 

3 ‘‘(d)(1) The following provisions of this section shall 

4 not apply to a foreign qualified freight vessel used for 

5 transportation referred to in section 27(b) of the Merchant 

6 Marine Act, 1920 (46 App. U.S.C. 883(b)): 

7 ‘‘(A) The text of subparagraph after ‘possession 

8 thereof’. 

9 ‘‘(B) subsection (c). 

10 ‘‘(2) In paragraph (1) the term ‘foreign qualified 

11 freight vessel’ has the meaning given that term in section 

12 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 

13 883(c)).’’. 

14 (b) APPROVAL OF TRANSFER OF REGISTRY OR OP15 ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR

16 FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.—

17 Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808) 

18 is amended by adding at the end the following: 

19 ‘‘(e)(1) In lieu of the penalty under subsection (d), 

20 a person that commits an act described in paragraph (2) 

21 in violation of this section is liable to the United States 

22 Government for a civil penalty of not more than $10,000 

23 for each violation. 

24 ‘‘(2) The acts referred to in paragraph (1) are the 

25 following:
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1 ‘‘(A) Charter, sell, or transfer a foreign quali2 fied freight vessel used for transportation referred to 

3 in section 27(b) of the Merchant Marine Act, 1920 

4 (46 App. U.S.C. 883(b)), or interest in or control of 

5 such a vessel. 

6 ‘‘(B) Place under foreign registry a foreign 

7 qualified freight vessel used for transportation re8 ferred to in section 27(b) of the Merchant Marine 

9 Act, 1920 (46 App. U.S.C. 883(b)), that is docu10 mented in the United States. 

11 ‘‘(C) Operate under the authority of a foreign 

12 country a foreign qualified freight vessel used for 

13 transportation referred to in section 27(b) of the 

14 Merchant Marine Act, 1920 (46 App. U.S.C. 

15 883(b)). 

16 ‘‘(f) To promote the transfer of foreign vessels to be 

17 documented under chapter 121 of title 46, United States 

18 Code, for use for transportation referred to in section 

19 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 

20 883(b)), the Secretary may grant approval under sub21 section (c) with respect to such a vessel before the date 

22 the vessel is documented.’’. 

23 ‘‘(g) In subsections (e) and (f), the term ‘foreign 

24 qualified freight vessel’ has the meaning given that term 
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1 in section 27(c) of the Merchant Marine Act, 1920 (46 

2 App. U.S.C. 883(c)).’’. 

3 SEC. 4. LABOR PROVISIONS. 

4 (a) LIABILITY FOR INJURY OR DEATH OF MASTER

5 OR CREW MEMBER.—Section 20(a) of the Act of March 

6 4, 1915 (38 Stat. 1185, chapter 153; 46 U.S.C. App. 

7 688(a)), is amended—

8 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; 

9 (2) by adding at the end of paragraph (1) (as 

10 designated under paragraph (1) of this subsection) 

11 the following new sentence: ‘‘In an action brought 

12 under this subsection against a defendant employer 

13 that does not reside or maintain an office in the 

14 United States (including any territory or possession 

15 of the United States) and that engages in any enter16 prise that makes use of one or more ports in the 

17 United States (as defined in section 2101 of title 46, 

18 United States Code), jurisdiction shall be under the 

19 district court most proximate to the place of the oc20 currence of the personal injury or death that is the 

21 subject of the action.’’; and 

22 (3) by adding at the end the following new 

23 paragraph: 

24 ‘‘(2)(A) The employer of a master or member of the 

25 crew of a vessel—
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1 ‘‘(i) may, at the election of the employer, par2 ticipate in an authorized compensation plan under 

3 the Longshore and Harbor Workers’ Compensation 

4 Act (33 U.S.C. 901 et seq.); and 

5 ‘‘(ii) if the employer makes an election under 

6 clause (i), notwithstanding section 2(3)(G) of the 

7 Longshore and Harbor Workers’ Compensation Act 

8 (33 U.S.C. 902(3)(G)), shall be subject to that Act. 

9 ‘‘(B) If an employer makes an election, in accordance 

10 with subparagraph (A), to participate in an authorized 

11 compensation plan under the Longshore and Harbor 

12 Workers’ Compensation Act—

13 ‘‘(i) a master or crew member employed by that 

14 employer shall be considered to be an employee for 

15 the purposes of that Act; and

16 ‘‘(ii) the liability of that employer under that 

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

18 otherwise entitled to recover damages from the em19 ployer based on the injury, disability, or death of the 

20 master or crew member, shall be exclusive and in 

21 lieu of all other liability.’’. 

22 (b) MINIMUM REQUIREMENTS.—All vessels, whether 

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

24 coastwise trade of the United States shall be subject to 

25 minimum international labor standards for seafarers 
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1 under international agreements in force for the United 

2 States, as determined by the Secretary of Transportation 

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

4 SEC. 5. REGULATIONS REGARDING VESSELS. 

5 (a) APPLICABLE MINIMUM REQUIREMENTS.—Except 

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

7 for vessels engaging in the transportation of cargo or mer8 chandise in the United States coastwise trade shall be the 

9 recognized international standards in force for the United 

10 States (as determined by the Secretary of the department 

11 in which the Coast Guard is operating, in consultation 

12 with any other official of the Federal Government that the 

13 Secretary determines to be appropriate). 

14 (b) CONSISTENCY IN APPLICATION OF STAND15 ARDS.—In any case in which any minimum requirement 

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

17 standard than a minimum that is applicable to vessels that 

18 are documented in a foreign country and that are admit19 ted to engage in the transportation of cargo and merchan20 dise in the United States coastwise trade, the standard 

21 applicable to such vessels that are documented in a foreign 

22 country shall be the standard to be applied to United 

23 States documented vessels. 
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1 SEC. 6. ENVIRONMENTAL STANDARDS. 

2 All vessels, whether documented under the laws of the 

3 United States or not, engaging in the United States coast4 wise trade shall comply with all applicable United States 

5 and international environmental standards in force for the 

6 United States. 

7 SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IR8 REGULARLY ENGAGING IN DOMESTIC COAST9 WISE TRADE. 

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

11 a citizen of the United States, as defined in section 

12 2101(3a) of title 46, United States Code, that owns or 

13 operates vessels that irregularly engage in the United 

14 States domestic coastwise trade shall—

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

16 served; 

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

18 States, including applicable environmental and tax 

19 laws; and 

20 (3) post evidence of documentation and en21 dorsements aboard such vessel indicating the owner 

22 or owners of such vessel, including any person con23 trolling vessels and the number of port calls and 

24 coastwise trips made during that calendar year. 

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

26 purposes of paragraph (3), all persons treated as a single 
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1 employer under subsection (a) or (b) of section 52 of the 

2 Internal Revenue Code of 1986 shall be treated as 1 per3 son.

Æ