II 

Calendar No. 182 

115TH CONGRESS 

1ST SESSION S. 1096 

[Report No. 115–136] 

To amend and enhance certain maritime programs of the Department of 

Transportation, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 11, 2017 

Mrs. FISCHER (for herself and Mr. BOOKER) introduced the following bill; 

which was read twice and referred to the Committee on Commerce, 

Science, and Transportation 

JULY 24, 2017 

Reported by Mr. THUNE, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend and enhance certain maritime programs of the 

Department of Transportation, 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, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Maritime Administration Authorization and Enhance4 ment Act for Fiscal Year 2018’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Authorization of the Maritime Administration. 

Sec. 3. Removal adjunct professor limit at United States Merchant Marine 

Academy. 

Sec. 4. Acceptance of guarantees in conjunction with partial donations for 

major projects of the United States Merchant Marine Academy. 

Sec. 5. Authority to pay conveyance or transfer expenses in connection with acceptance of a gift to the United States Merchant Marine Academy. 

Sec. 6. Authority to participate in Federal, State or other research grants. 

Sec. 7. Continuing funding for the United States Merchant Marine Academy. 

Sec. 8. Access to satellite phone during Sea Year program. 

Sec. 9. Assistance for small shipyards and maritime communities. 

7 SEC. 2. AUTHORIZATION OF THE MARITIME ADMINISTRA8 TION. 

9 (a) IN GENERAL.—There are authorized to be appro10 priated to the Department of Transportation for fiscal 

11 year 2018, to be available without fiscal year limitation 

12 if so provided in appropriations Acts, for programs associ13 ated with maintaining the United States merchant marine, 

14 the following amounts: 

15 (1) For expenses necessary for operations of the 

16 United States Merchant Marine Academy, 

17 $99,902,000, of which— 

18 (A) $74,851,000 shall be for Academy op19 erations, including— 


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1 (i) the implementation of section 

2 3514(b) of the National Defense Author3 ization Act for Fiscal Year 2017, as added 

4 by section 8; and 

5 (ii) staffing, training, and other ac6 tions necessary to prevent and respond to 

7 sexual harassment and sexual assault; and 

8 (B) $25,051,000 shall remain available 

9 until expended for capital asset management at 

10 the Academy. 

11 (2) For expenses necessary to support the State 

12 maritime academies, $29,550,000, of which— 

13 (A) $2,400,000 shall remain available until 

14 September 30, 2018, for the Student Incentive 

15 Program; 

16 (B) $3,000,000 shall remain available until 

17 expended for direct payments to such acad18 emies; 

19 (C) $22,000,000 shall remain available 

20 until expended for maintenance and repair of 

21 State maritime academy training vessels; 

22 (D) $1,800,000 shall remain available until 

23 expended for training ship fuel assistance; and 


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1 (E) $350,000 shall remain available until 

2 expended for expenses to improve the moni3 toring of the service obligations of graduates. 

4 (3) For expenses necessary to support the Na5 tional Security Multi-Mission Vessel Program, 

6 $36,000,000, which shall remain available until ex7 pended. 

8 (4) For expenses necessary to support Maritime 

9 Administration operations and programs, 

10 $58,694,000. 

11 (5) For expenses necessary to dispose of vessels 

12 in the National Defense Reserve Fleet, $20,000,000, 

13 which shall remain available until expended. 

14 (6) For administrative expenses associated with 

15 the program authorized under chapter 537 of title 

16 46, United States Code, $3,000,000, which shall re17 main available until expended. 

18 (b) ASSISTANCE FOR SMALL SHIPYARDS AND MARI19 TIME COMMUNITIES.—Section 54101(i) of title 46, United 

20 States Code, is amended— 

21 (1) in the matter preceding paragraph (1), by 

22 striking ‘‘2015 through 2017’’ and inserting ‘‘2018 

23 through 2020’’; 

24 (2) in paragraph (1), by striking ‘‘$5,000,000’’ 

25 and inserting ‘‘$7,500,00’’; and 


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1 (3) in paragraph (2), by striking 

2 ‘‘$25,000,000’’ and inserting ‘‘$27,500,000’’. 

3 SEC. 3. REMOVAL ADJUNCT PROFESSOR LIMIT AT UNITED 

4 STATES MERCHANT MARINE ACADEMY. 

5 Section 51317 of title 46, United States Code, is 

6 amended— 

7 (1) in subsection (b)— 

8 (A) in paragraph (1), by striking ‘‘and’’ at 

9 the end; and 

10 (B) in paragraph (2), by striking the pe11 riod at the end and inserting ‘‘; and’’; and 

12 (2) by striking subsections (c) and (d). 

13 SEC. 4. ACCEPTANCE OF GUARANTEES IN CONJUNCTION 

14 WITH PARTIAL DONATIONS FOR MAJOR 

15 PROJECTS OF THE UNITED STATES MER16 CHANT MARINE ACADEMY. 

17 (a) GUARANTEES.—Chapter 513 of title 46, United 

18 States Code, is amended by adding at the end the fol19 lowing: 

20 ‘‘§ 51320. Acceptance of guarantees with gifts for 

21 major projects 

22 ‘‘(a) DEFINITIONS.—In this section: 

23 ‘‘(1) MAJOR PROJECT.—The term ‘major 

24 project’ means a project estimated to cost at least 

25 $1,000,000 for— 


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1 ‘‘(A) the purchase or other procurement of 

2 real or personal property; or 

3 ‘‘(B) the construction, renovation, or re4 pair of real or personal property. 

5 ‘‘(2) MAJOR UNITED STATES COMMERCIAL

6 BANK.—The term ‘major United States commercial 

7 bank’ means a commercial bank that— 

8 ‘‘(A) is an insured bank (as defined in sec9 tion 3(h) of the Federal Deposit Insurance Act 

10 (12 U.S.C. 1813(h))); 

11 ‘‘(B) is headquartered in the United 

12 States; and 

13 ‘‘(C) has total net assets of an amount 

14 considered by the Maritime Administrator to 

15 qualify the bank as a major bank. 

16 ‘‘(3) MAJOR UNITED STATES INVESTMENT MAN17 AGEMENT FIRM.—The term ‘major United States in18 vestment management firm’ means— 

19 ‘‘(A) any broker or dealer (as such terms 

20 are defined in section 3 of the Securities Ex21 change Act of 1934 (15 U.S.C. 78c)); 

22 ‘‘(B) any investment adviser or provider of 

23 investment supervisory services (as such terms 

24 are defined in section 202 of the Investment 

25 Advisers Act of 1940 (15 U.S.C. 80b–2)); or 


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1 ‘‘(C) a major United States commercial 

2 bank that— 

3 ‘‘(i) is headquartered in the United 

4 States; and 

5 ‘‘(ii) holds for the account of others 

6 investment assets in a total amount consid7 ered by the Maritime Administrator to 

8 qualify the bank as a major investment 

9 management firm. 

10 ‘‘(4) QUALIFIED GUARANTEE.—The term 

11 ‘qualified guarantee’, with respect to a major 

12 project, means a guarantee that— 

13 ‘‘(A) is made by one or more persons in 

14 connection with a donation for the project of a 

15 total amount in cash or securities that the Mar16 itime Administrator determines is sufficient to 

17 defray a substantial portion of the total cost of 

18 the project; 

19 ‘‘(B) is made to facilitate or expedite the 

20 completion of the project in reasonable anticipa21 tion that other donors will contribute sufficient 

22 funds or other resources in amounts sufficient 

23 to pay for completion of the project; 

24 ‘‘(C) is set forth as a written agreement 

25 providing that the donor will furnish in cash or 


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1 securities, in addition to the donor’s other gift 

2 or gifts for the project, any additional amount 

3 that may become necessary for paying the cost 

4 of completing the project by reason of a failure 

5 to obtain from other donors or sources funds or 

6 other resources in amounts sufficient to pay the 

7 cost of completing the project; and 

8 ‘‘(D) is accompanied by— 

9 ‘‘(i) an irrevocable and unconditional 

10 standby letter of credit for the benefit of 

11 the United States Merchant Marine Acad12 emy that is in the amount of the guarantee 

13 and is issued by a major United States 

14 commercial bank; or 

15 ‘‘(ii) a qualified account control agree16 ment. 

17 ‘‘(5) QUALIFIED ACCOUNT CONTROL AGREE18 MENT.—The term ‘qualified account control agree19 ment’, with respect to a guarantee of a donor, means 

20 an agreement among the donor, the Maritime Ad21 ministrator, and a major United States investment 

22 management firm that— 

23 ‘‘(A) ensures the availability of sufficient 

24 funds or other financial resources to pay the 


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1 amount guaranteed during the period of the 

2 guarantee; 

3 ‘‘(B) provides for the perfection of a secu4 rity interest in the assets of the account for the 

5 United States for the benefit of the United 

6 States Merchant Marine Academy with the 

7 highest priority available for liens and security 

8 interests under applicable law; 

9 ‘‘(C) requires the donor to maintain in an 

10 account with the investment management firm 

11 assets having a total value that is not less than 

12 130 percent of the amount guaranteed; and 

13 ‘‘(D) requires the investment management 

14 firm, whenever the value of the account is less 

15 than the value required to be maintained under 

16 subparagraph (C), to liquidate any noncash as17 sets in the account and reinvest the proceeds in 

18 Treasury bills issued under section 3104 of title 

19 31. 

20 ‘‘(b) ACCEPTANCE AUTHORITY.—Subject to sub21 section (d), the Maritime Administrator may accept a 

22 qualified guarantee from a donor or donors for the comple23 tion of a major project for the benefit of the United States 

24 Merchant Marine Academy. 


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1 ‘‘(c) OBLIGATION AUTHORITY.—The amount of a 

2 qualified guarantee accepted under this section shall be 

3 considered as contract authority to provide obligation au4 thority for purposes of Federal fiscal and contractual re5 quirements. Funds available for a project for which such 

6 a guarantee has been accepted may be obligated and ex7 pended for the project without regard to whether the total 

8 amount of funds and other resources available for the 

9 project (not taking into account the amount of the guar10 antee) is sufficient to pay for completion of the project. 

11 ‘‘(d) NOTICE.—The Maritime Administrator may not 

12 accept a qualified guarantee under this section for the 

13 completion of a major project until 30 days after the date 

14 on which a report of the facts concerning the proposed 

15 guarantee is submitted to Congress. 

16 ‘‘(e) PROHIBITION ON COMMINGLING FUNDS.—The 

17 Maritime Administrator may not enter into any contract 

18 or other transaction involving the use of a qualified guar19 antee and appropriated funds in the same contract or 

20 transaction.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections 

22 for chapter 513 of title 46, United States Code, is amend23 ed by adding at the end the following: 

‘‘51320. Acceptance of guarantees with gifts for major projects.’’. 


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1 SEC. 5. AUTHORITY TO PAY CONVEYANCE OR TRANSFER 

2 EXPENSES IN CONNECTION WITH ACCEPT3 ANCE OF A GIFT TO THE UNITED STATES 

4 MERCHANT MARINE ACADEMY. 

5 Section 51315 of title 46, United States Code, is 

6 amended by inserting at the end the following: 

7 ‘‘(f) PAYMENT OF EXPENSES.—The Maritime Ad8 ministrator may pay all necessary expenses in connection 

9 with the conveyance or transfer of a gift, devise, or be10 quest accepted under this section.’’. 

11 SEC. 6. AUTHORITY TO PARTICIPATE IN FEDERAL, STATE 

12 OR OTHER RESEARCH GRANTS. 

13 (a) RESEARCH GRANTS.—Chapter 513 of title 46, 

14 United States Code, as amended by section 3 through 5, 

15 is further amended by adding at the end the following: 

16 ‘‘§ 51321. Grants for scientific and educational re17 search 

18 ‘‘(a) DEFINED TERM.—In this section, the term 

19 ‘qualifying research grant’ is a grant that— 

20 ‘‘(1) is awarded on a competitive basis by the 

21 Federal Government (except for the Department of 

22 Transportation), a State, a corporation, a fund, a 

23 foundation, an educational institution, or a similar 

24 entity that is organized and operated primarily for 

25 scientific or educational purposes; and 


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1 ‘‘(2) is to be used to carry out a research 

2 project with a scientific or educational purpose. 

3 ‘‘(b) ACCEPTANCE OF QUALIFYING RESEARCH

4 GRANTS.—Notwithstanding any other provision of law, 

5 the United States Merchant Marine Academy may com6 pete for and accept qualifying research grants if the work 

7 under the grant is to be carried out by a professor or in8 structor of the United States Merchant Marine Academy. 

9 ‘‘(c) ADMINISTRATION OF GRANT FUNDS.— 

10 ‘‘(1) ESTABLISHMENT OF ACCOUNT.—The Mar11 itime Administrator shall establish a separate ac12 count for administering funds received from research 

13 grants under this section. 

14 ‘‘(2) USE OF GRANT FUNDS.—The Super15 intendent shall use grant funds deposited into the 

16 account established pursuant to paragraph (1) in ac17 cordance with applicable regulations and the terms 

18 and conditions of the respective grants. 

19 ‘‘(d) RELATED EXPENSES.—Subject to such limita20 tions as may be provided in appropriations Acts, appro21 priations available for the United States Merchant Marine 

22 Academy may be used to pay expenses incurred by the 

23 Academy in applying for, and otherwise pursuing, a quali24 fying research grant.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 513 of title 46, United States Code, as amend3 ed by section 4(b), is further amended by adding at the 

4 end the following: 

‘‘51321. Grants for scientific and educational research.’’. 

5 SEC. 7. CONTINUING FUNDING FOR THE UNITED STATES 

6 MERCHANT MARINE ACADEMY. 

7 Section 51301 of title 46, United States Code, is 

8 amended by adding at the end the following: 

9 ‘‘(d) CONTINUING FUNDING.— 

10 ‘‘(1) IN GENERAL.—Out of any funds in the 

11 general fund of the Treasury not otherwise appro12 priated, there are hereby appropriated such sums as 

13 may be necessary for operations of the United States 

14 Merchant Marine Academy for any period during 

15 which interim or full-year appropriations are not in 

16 effect for the United States Merchant Marine Acad17 emy, for fiscal year 2018, and for each fiscal year 

18 thereafter. 

19 ‘‘(2) TERMINATION.—Amounts made available 

20 for a fiscal year under this subsection shall remain 

21 available until the earlier of— 

22 ‘‘(A) the enactment into law of an appro23 priation for such fiscal year (including a con24 tinuing appropriation) for such operations); or 


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1 ‘‘(B) the enactment into law for the Mari2 time Administration of the applicable regular 

3 appropriation for such fiscal year, or continuing 

4 appropriations resolution for such fiscal year, 

5 without any appropriation for such oper6 ations.’’. 

7 SEC. 8. ACCESS TO SATELLITE PHONE DURING SEA YEAR 

8 PROGRAM. 

9 Section 3514 of the National Defense Authorization 

10 Act for Fiscal Year 2017 (Public Law 114–328) is amend11 ed— 

12 (1) by striking ‘‘Not later than’’ and inserting 

13 the following: 

14 ‘‘(a) VESSEL OPERATOR REQUIREMENTS.—Not later 

15 than’’; and 

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

17 ‘‘(b) SATELLITE PHONE ACCESS.—The Maritime Ad18 ministrator shall ensure that each student participating 

19 in the Sea Year program is provided or has access to a 

20 functional satellite communication device. A student may 

21 not be denied from using such device whenever the student 

22 determines that such use is necessary to prevent or report 

23 sexual harassment or assault.’’. 


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1 SEC. 9. ASSISTANCE FOR SMALL SHIPYARDS AND MARI2 TIME COMMUNITIES. 

3 Section 54101 of title 46, United States Code, is 

4 amended— 

5 (1) by striking subsection (b) and inserting the 

6 following: 

7 ‘‘(b) AWARDS.— 

8 ‘‘(1) IN GENERAL.—In providing assistance 

9 under the program, the Administrator shall take into 

10 account— 

11 ‘‘(A) the economic circumstances and con12 ditions of maritime communities; 

13 ‘‘(B) projects that would be effective in 

14 fostering efficiency, competitive operations, and 

15 quality ship construction, repair, and reconfig16 uration; and 

17 ‘‘(C) projects that would be effective in 

18 fostering employee skills and enhancing produc19 tivity. 

20 ‘‘(2) TIMING OF AWARD.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B), the Administrator shall 

23 award grants under this section not later than 

24 120 days after the date of the enactment of the 

25 appropriations Act for the fiscal year con26 cerned. 


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1 ‘‘(B) REALLOCATION OF UNUSED

2 FUNDS.—If a grant is awarded under this sec3 tion and, for any reason, the grant funds are 

4 not used by the grantee, the Administrator may 

5 reallocate such unused funds to award another 

6 grant under this section.’’; and 

7 (2) in subsection (c), by adding at the end the 

8 following: 

9 ‘‘(3) BUY AMERICAN.— 

10 ‘‘(A) REQUIREMENT.—A grant provided 

11 under this section may be used for a project 

12 only if the steel, iron, and manufactured goods 

13 used in the project are produced in the United 

14 States. 

15 ‘‘(B) WAIVER.—The Administrator may 

16 waive subparagraph (A) if the Administrator 

17 determines that the waiver would be permitted 

18 under section 5323(j)(2) of title 49.’’. 

19 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

20 (a) SHORT TITLE.—This Act may be cited as the 

21 ‘‘Maritime Administration Authorization and Enhance22 ment Act for Fiscal Year 2018’’. 

23 (b) TABLE OF CONTENTS.—The table of contents for 

24 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Authorization of the Maritime Administration. 


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Sec. 3. Removal adjunct professor limit at United States Merchant Marine Academy. 

Sec. 4. Acceptance of guarantees in conjunction with partial donations for major 

projects of the United States Merchant Marine Academy. 

Sec. 5. Authority to pay conveyance or transfer expenses in connection with acceptance of a gift to the United States Merchant Marine Academy. 

Sec. 6. Authority to participate in Federal, State or other research grants. 

Sec. 7. Continuing funding for the United States Merchant Marine Academy. 

Sec. 8. Access to satellite communication devices during Sea Year program. 

Sec. 9. Assistance for small shipyards and maritime communities. 

Sec. 10. Domestic maritime centers of excellence. 

Sec. 11. Determinations on the viability of vessels. 

1 SEC. 2. AUTHORIZATION OF THE MARITIME ADMINISTRA2 TION. 

3 (a) IN GENERAL.—There are authorized to be appro4 priated to the Department of Transportation for fiscal year 

5 2018, to be available without fiscal year limitation if so 

6 provided in appropriations Acts, for programs associated 

7 with maintaining the United States merchant marine, the 

8 following amounts: 

9 (1) For expenses necessary for operations of the 

10 United States Merchant Marine Academy, 

11 $100,802,000, of which— 

12 (A) $75,751,000 shall be for Academy oper13 ations, including— 

14 (i) the implementation of section 

15 3514(b) of the National Defense Authoriza16 tion Act for Fiscal Year 2017, as added by 

17 section 8; and 


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1 (ii) staffing, training, and other ac2 tions necessary to prevent and respond to 

3 sexual harassment and sexual assault; and 

4 (B) $25,051,000 shall remain available 

5 until expended for capital asset management at 

6 the Academy. 

7 (2) For expenses necessary to support the State 

8 maritime academies, $29,550,000, of which— 

9 (A) $2,400,000 shall remain available until 

10 September 30, 2018, for the Student Incentive 

11 Program; 

12 (B) $3,000,000 shall remain available until 

13 expended for direct payments to such academies; 

14 (C) $22,000,000 shall remain available 

15 until expended for maintenance and repair of 

16 State maritime academy training vessels; 

17 (D) $1,800,000 shall remain available until 

18 expended for training ship fuel assistance; and 

19 (E) $350,000 shall remain available until 

20 expended for expenses to improve the monitoring 

21 of the service obligations of graduates. 

22 (3) For expenses necessary to support the Na23 tional Security Multi-Mission Vessel Program, 

24 $36,000,000, which shall remain available until ex25 pended. 


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1 (4) For expenses necessary to support Maritime 

2 Administration operations and programs, 

3 $58,694,000. 

4 (5) For expenses necessary to dispose of vessels in 

5 the National Defense Reserve Fleet, $20,000,000, 

6 which shall remain available until expended. 

7 (6) For expenses necessary for the loan guarantee 

8 program authorized under chapter 537 of title 46, 

9 United States Code, $33,000,000, of which— 

10 (A) $30,000,000 may be used for the cost 

11 (as defined in section 502(5) of the Federal Cred12 it Reform Act of 1990 (2 U.S.C. 661a(5))) of 

13 loan guarantees under the program; and 

14 (B) $3,000,000 may be used for administra15 tive expenses relating to loan guarantee commit16 ments under the program. 

17 (b) ASSISTANCE FOR SMALL SHIPYARDS AND MARI18 TIME COMMUNITIES.—Section 54101(i) of title 46, United 

19 States Code, is amended— 

20 (1) in the matter preceding paragraph (1), by 

21 striking ‘‘2015 through 2017’’ and inserting ‘‘2018 

22 through 2020’’; 

23 (2) in paragraph (1), by striking ‘‘$5,000,000’’ 

24 and inserting ‘‘$7,500,000’’; and 


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1 (3) in paragraph (2), by striking ‘‘$25,000,000’’ 

2 and inserting ‘‘$27,500,000’’. 

3 SEC. 3. REMOVAL ADJUNCT PROFESSOR LIMIT AT UNITED 

4 STATES MERCHANT MARINE ACADEMY. 

5 Section 51317 of title 46, United States Code, is 

6 amended— 

7 (1) in subsection (b)— 

8 (A) in paragraph (1), by striking ‘‘and’’ at 

9 the end; and 

10 (B) in paragraph (2), by striking the period 

11 at the end and inserting ‘‘; and’’; and 

12 (2) by striking subsections (c) and (d). 

13 SEC. 4. ACCEPTANCE OF GUARANTEES IN CONJUNCTION 

14 WITH PARTIAL DONATIONS FOR MAJOR 

15 PROJECTS OF THE UNITED STATES MER16 CHANT MARINE ACADEMY. 

17 (a) GUARANTEES.—Chapter 513 of title 46, United 

18 States Code, is amended by adding at the end the following: 

19 ‘‘§ 51320. Acceptance of guarantees with gifts for 

20 major projects 

21 ‘‘(a) DEFINITIONS.—In this section: 

22 ‘‘(1) MAJOR PROJECT.—The term ‘major project’ 

23 means a project estimated to cost at least $1,000,000 

24 for— 


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1 ‘‘(A) the purchase or other procurement of 

2 real or personal property; or 

3 ‘‘(B) the construction, renovation, or repair 

4 of real or personal property. 

5 ‘‘(2) MAJOR UNITED STATES COMMERCIAL

6 BANK.—The term ‘major United States commercial 

7 bank’ means a commercial bank that— 

8 ‘‘(A) is an insured bank (as defined in sec9 tion 3(h) of the Federal Deposit Insurance Act 

10 (12 U.S.C. 1813(h))); 

11 ‘‘(B) is headquartered in the United States; 

12 and 

13 ‘‘(C) has total net assets of an amount con14 sidered by the Maritime Administrator to qual15 ify the bank as a major bank. 

16 ‘‘(3) MAJOR UNITED STATES INVESTMENT MAN17 AGEMENT FIRM.—The term ‘major United States in18 vestment management firm’ means— 

19 ‘‘(A) any broker or dealer (as such terms 

20 are defined in section 3 of the Securities Ex21 change Act of 1934 (15 U.S.C. 78c)); 

22 ‘‘(B) any investment adviser or provider of 

23 investment supervisory services (as such terms 

24 are defined in section 202 of the Investment Ad25 visers Act of 1940 (15 U.S.C. 80b-2)); or 


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1 ‘‘(C) a major United States commercial 

2 bank that— 

3 ‘‘(i) is headquartered in the United 

4 States; and 

5 ‘‘(ii) holds for the account of others in6 vestment assets in a total amount consid7 ered by the Maritime Administrator to 

8 qualify the bank as a major investment 

9 management firm. 

10 ‘‘(4) QUALIFIED GUARANTEE.—The term ‘quali11 fied guarantee’, with respect to a major project, 

12 means a guarantee that— 

13 ‘‘(A) is made by 1 or more persons in con14 nection with a donation for the project of a total 

15 amount in cash or securities that the Maritime 

16 Administrator determines is sufficient to defray 

17 a substantial portion of the total cost of the 

18 project; 

19 ‘‘(B) is made to facilitate or expedite the 

20 completion of the project in reasonable anticipa21 tion that other donors will contribute sufficient 

22 funds or other resources in amounts sufficient to 

23 pay for completion of the project; 

24 ‘‘(C) is set forth as a written agreement 

25 providing that the donor will furnish in cash or 


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1 securities, in addition to the donor’s other gift or 

2 gifts for the project, any additional amount that 

3 may become necessary for paying the cost of 

4 completing the project by reason of a failure to 

5 obtain from other donors or sources funds or 

6 other resources in amounts sufficient to pay the 

7 cost of completing the project; and 

8 ‘‘(D) is accompanied by— 

9 ‘‘(i) an irrevocable and unconditional 

10 standby letter of credit for the benefit of the 

11 United States Merchant Marine Academy 

12 that is in the amount of the guarantee and 

13 is issued by a major United States commer14 cial bank; or 

15 ‘‘(ii) a qualified account control agree16 ment. 

17 ‘‘(5) QUALIFIED ACCOUNT CONTROL AGREE18 MENT.—The term ‘qualified account control agree19 ment’, with respect to a guarantee of a donor, means 

20 an agreement among the donor, the Maritime Admin21 istrator, and a major United States investment man22 agement firm that— 

23 ‘‘(A) ensures the availability of sufficient 

24 funds or other financial resources to pay the 


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1 amount guaranteed during the period of the 

2 guarantee; 

3 ‘‘(B) provides for the perfection of a secu4 rity interest in the assets of the account for the 

5 United States for the benefit of the United States 

6 Merchant Marine Academy with the highest pri7 ority available for liens and security interests 

8 under applicable law; 

9 ‘‘(C) requires the donor to maintain in an 

10 account with the investment management firm 

11 assets having a total value that is not less than 

12 130 percent of the amount guaranteed; and 

13 ‘‘(D) requires the investment management 

14 firm, whenever the value of the account is less 

15 than the value required to be maintained under 

16 subparagraph (C), to liquidate any noncash as17 sets in the account and reinvest the proceeds in 

18 Treasury bills issued under section 3104 of title 

19 31. 

20 ‘‘(b) ACCEPTANCE AUTHORITY.—Subject to subsection 

21 (d), the Maritime Administrator may accept a qualified 

22 guarantee from a donor or donors for the completion of a 

23 major project for the benefit of the United States Merchant 

24 Marine Academy. 


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1 ‘‘(c) OBLIGATION AUTHORITY.—The amount of a 

2 qualified guarantee accepted under this section shall be con3 sidered as contract authority to provide obligation author4 ity for purposes of Federal fiscal and contractual require5 ments. Funds available for a project for which such a guar6 antee has been accepted may be obligated and expended for 

7 the project without regard to whether the total amount of 

8 funds and other resources available for the project (not tak9 ing into account the amount of the guarantee) is sufficient 

10 to pay for completion of the project. 

11 ‘‘(d) NOTICE.—The Maritime Administrator may not 

12 accept a qualified guarantee under this section for the com13 pletion of a major project until 30 days after the date on 

14 which a report of the facts concerning the proposed guar15 antee is submitted to Congress. 

16 ‘‘(e) PROHIBITION ON COMMINGLING FUNDS.—The 

17 Maritime Administrator may not enter into any contract 

18 or other transaction involving the use of a qualified guar19 antee and appropriated funds in the same contract or 

20 transaction.’’. 

21 (b) CLERICAL AMENDMENT.—The table of sections for 

22 chapter 513 of title 46, United States Code, is amended by 

23 adding at the end the following: 

‘‘51320. Acceptance of guarantees with gifts for major projects.’’. 


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1 SEC. 5. AUTHORITY TO PAY CONVEYANCE OR TRANSFER EX2 PENSES IN CONNECTION WITH ACCEPTANCE 

3 OF A GIFT TO THE UNITED STATES MER4 CHANT MARINE ACADEMY. 

5 Section 51315 of title 46, United States Code, is 

6 amended by inserting at the end the following: 

7 ‘‘(f) PAYMENT OF EXPENSES.—The Maritime Admin8 istrator may pay all necessary expenses in connection with 

9 the conveyance or transfer of a gift, devise, or bequest ac10 cepted under this section.’’. 

11 SEC. 6. AUTHORITY TO PARTICIPATE IN FEDERAL, STATE 

12 OR OTHER RESEARCH GRANTS. 

13 (a) RESEARCH GRANTS.—Chapter 513 of title 46, 

14 United States Code, as amended by section 3 through 5, 

15 is further amended by adding at the end the following: 

16 ‘‘§ 51321. Grants for scientific and educational re17 search 

18 ‘‘(a) DEFINED TERM.—In this section, the term ‘quali19 fying research grant’ is a grant that— 

20 ‘‘(1) is awarded on a competitive basis by the 

21 Federal Government (except for the Department of 

22 Transportation), a State, a corporation, a fund, a 

23 foundation, an educational institution, or a similar 

24 entity that is organized and operated primarily for 

25 scientific or educational purposes; and 


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1 ‘‘(2) is to be used to carry out a research project 

2 with a scientific or educational purpose. 

3 ‘‘(b) ACCEPTANCE OF QUALIFYING RESEARCH

4 GRANTS.—Notwithstanding any other provision of law, the 

5 United States Merchant Marine Academy may compete for 

6 and accept qualifying research grants if the work under the 

7 grant is to be carried out by a professor or instructor of 

8 the United States Merchant Marine Academy. 

9 ‘‘(c) ADMINISTRATION OF GRANT FUNDS.— 

10 ‘‘(1) ESTABLISHMENT OF ACCOUNT.—The Mari11 time Administrator shall establish a separate account 

12 for administering funds received from research grants 

13 under this section. 

14 ‘‘(2) USE OF GRANT FUNDS.—The Super15 intendent shall use grant funds deposited into the ac16 count established pursuant to paragraph (1) in ac17 cordance with applicable regulations and the terms 

18 and conditions of the respective grants. 

19 ‘‘(d) RELATED EXPENSES.—Subject to such limita20 tions as may be provided in appropriations Acts, appro21 priations available for the United States Merchant Marine 

22 Academy may be used to pay expenses incurred by the 

23 Academy in applying for, and otherwise pursuing, a quali24 fying research grant.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections for 

2 chapter 513 of title 46, United States Code, as amended 

3 by section 4(b), is further amended by adding at the end 

4 the following: 

‘‘51321. Grants for scientific and educational research.’’. 

5 SEC. 7. CONTINUING FUNDING FOR THE UNITED STATES 

6 MERCHANT MARINE ACADEMY. 

7 Section 51301 of title 46, United States Code, is 

8 amended by adding at the end the following: 

9 ‘‘(d) CONTINUING FUNDING.— 

10 ‘‘(1) IN GENERAL.—Out of any funds in the gen11 eral fund of the Treasury not otherwise appropriated, 

12 there are hereby appropriated such sums as may be 

13 necessary for operations of the United States Mer14 chant Marine Academy for any period during which 

15 interim or full-year appropriations are not in effect 

16 for the United States Merchant Marine Academy, for 

17 fiscal year 2018, and for each fiscal year thereafter. 

18 ‘‘(2) TERMINATION.—Amounts made available 

19 for a fiscal year under this subsection shall remain 

20 available until the earlier of— 

21 ‘‘(A) the enactment into law of an appro22 priation for such fiscal year (including a con23 tinuing appropriation) for such operations); or 

24 ‘‘(B) the enactment into law for the Mari25 time Administration of the applicable regular 


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1 appropriation for such fiscal year, or continuing 

2 appropriations resolution for such fiscal year, 

3 without any appropriation for such operations.’’. 

4 SEC. 8. ACCESS TO SATELLITE COMMUNICATION DEVICES 

5 DURING SEA YEAR PROGRAM. 

6 Section 3514 of the National Defense Authorization 

7 Act for Fiscal Year 2017 (Public Law 114–328) is amend8 ed— 

9 (1) by striking ‘‘Not later than’’ and inserting 

10 the following: 

11 ‘‘(a) VESSEL OPERATOR REQUIREMENTS.—Not later 

12 than’’; and 

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

14 ‘‘(b) SATELLITE PHONE ACCESS.—The Maritime Ad15 ministrator shall ensure that each student participating in 

16 the Sea Year program is provided or has access to a func17 tional satellite communication device. A student may not 

18 be denied from using such device whenever the student deter19 mines that such use is necessary to prevent or report sexual 

20 harassment or assault.’’. 

21 SEC. 9. ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME 

22 COMMUNITIES. 

23 Section 54101 of title 46, United States Code, is 

24 amended— 


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1 (1) by striking subsection (b) and inserting the 

2 following: 

3 ‘‘(b) AWARDS.— 

4 ‘‘(1) IN GENERAL.—In providing assistance 

5 under the program, the Administrator shall take into 

6 account— 

7 ‘‘(A) the economic circumstances and condi8 tions of maritime communities; 

9 ‘‘(B) projects that would be effective in fos10 tering efficiency, competitive operations, and 

11 quality ship construction, repair, and reconfig12 uration; and 

13 ‘‘(C) projects that would be effective in fos14 tering employee skills and enhancing produc15 tivity. 

16 ‘‘(2) TIMING OF AWARD.— 

17 ‘‘(A) IN GENERAL.—Except as provided in 

18 subparagraph (B), the Administrator shall 

19 award grants under this section not later than 

20 120 days after the date of the enactment of the 

21 appropriations Act for the fiscal year concerned. 

22 ‘‘(B) REALLOCATION OF UNUSED FUNDS.— 

23 If a grant is awarded under this section and, for 

24 any reason, the grant funds are not used by the 

25 grantee— 


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1 ‘‘(i) such funds shall remain available 

2 until expended; and 

3 ‘‘(ii) the Administrator may— 

4 ‘‘(I) use such unused funds to 

5 award another grant under this section 

6 in the fiscal year concerned; or 

7 ‘‘(II) reallocate such unused funds 

8 for grants in a subsequent fiscal 

9 year.’’; and 

10 (2) in subsection (c), by adding at the end the 

11 following: 

12 ‘‘(3) BUY AMERICA.— 

13 ‘‘(A) IN GENERAL.—Notwithstanding any 

14 other provision of law, the Secretary of Trans15 portation shall not obligate any funds authorized 

16 to be appropriated to carry out this chapter un17 less the steel, iron, and manufactured products 

18 used in such project are produced in the United 

19 States. 

20 ‘‘(B) EXCEPTIONS.—The provisions of sub21 paragraph (A) shall not apply if the Secretary 

22 finds that— 

23 ‘‘(i) their application would be incon24 sistent with the public interest; 


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1 ‘‘(ii) such materials and products are 

2 not produced in the United States in suffi3 cient and reasonably available quantities 

4 and of a satisfactory quality; or 

5 ‘‘(iii) inclusion of domestic material 

6 will increase the cost of the overall project 

7 by more than 25 percent.’’. 

8 SEC. 10. DOMESTIC MARITIME CENTERS OF EXCELLENCE. 

9 (a) DESIGNATION AUTHORITY.—The Secretary of 

10 Transportation is authorized to designate community and 

11 technical colleges with a maritime training program and 

12 maritime training centers operated by or under the super13 vision of a State, if located in the United States along the 

14 Gulf of Mexico, Atlantic Ocean, Pacific Ocean, Arctic 

15 Ocean, Bering Sea, Gulf of Alaska, or Great Lakes, as cen16 ters of excellence for domestic maritime workforce training 

17 and education. 

18 (b) ASSISTANCE.— 

19 (1) TYPES.—The Secretary may provide to an 

20 entity designated as a center of excellence under sub21 section (a)— 

22 (A) technical assistance; and 

23 (B) surplus Federal equipment and assets. 

24 (2) TECHNICAL ASSISTANCE.—The Secretary 

25 may provide technical assistance under paragraph (1) 


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1 to assist an entity designated as a center of excellence 

2 under subsection (a) to expand the capacity of the en3 tity to train the domestic maritime workforce of the 

4 United States, including by— 

5 (A) admitting additional students; 

6 (B) recruiting and training faculty; 

7 (C) expanding facilities; 

8 (D) creating new maritime career path9 ways; and 

10 (E) awarding students credit for prior expe11 rience, including military service. 

12 SEC. 11. DETERMINATIONS ON THE VIABILITY OF VESSELS. 

13 (a) IN GENERAL.—Not later than 60 days after the 

14 date of enactment of this Act, the Inspector General for the 

15 Department of Transportation shall audit the criteria used 

16 by the Secretary of Transportation for determinations of 

17 the commercial viability of any Maritime Security Pro18 gram vessel that operates in competition with a domestic 

19 trade vessel documented under the laws of the United States. 

20 (b) CONTENTS.—The audit referred to in subsection 

21 (a) shall include a review of the criteria used to make a 

22 finding of commercial viability for compliance with section 

23 53102(b)(4)(B) of title 46, United States Code, for all ves24 sels with operating agreements beginning after September 

25 30, 2016. 


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Calendar No. 182 

115TH CONGRESS 

1ST SESSION S. 1096 

[Report No. 115–136] 

A BILL 

To amend and enhance certain maritime programs 

other purposes. of the Department of Transportation, and for 

JULY 24, 2017 

Reported with an amendment 


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