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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2029 Reported in Senate (RS)]

                                                       Calendar No. 295
109th CONGRESS
  1st Session
                                S. 2029

                          [Report No. 109-183]

  To amend and enhance certain maritime programs of the Department of 
                Transportation, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 17, 2005

       Mr. Stevens, from the Committee on Commerce, Science, and 
 Transportation, reported the following original bill; which was read 
                    twice and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
  To amend and enhance certain maritime programs of the Department of 
                Transportation, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Maritime 
Administration Enhancement Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
               Title I--Enhancement of Maritime Programs.

Sec. 101. United States Maritime Service.
Sec. 102. War risk insurance for merchant marine vessels.
Sec. 103. Maritime education and training.
Sec. 104. Authority to dispose of obsolete government vessels.
Sec. 105. Awards and medals.
Sec. 106. Elimination of tariffs on certain national defense 
                            activities.
Sec. 107. Availability of funds from application fees for deepwater 
                            port licenses.
Sec. 108. Availability of funds from administrative waivers of 
                            coastwise trade laws for eligible vessels.
Sec. 109. Amendment to vessel operations revolving fund.
Sec. 110. Right to use Maritime Administration decoration.
Sec. 111. Hawaii port infrastructure expansion program.
Sec. 112. Payments for State and regional maritime academies.
Sec. 113. Reduction of report burden.
Sec. 114. Assistance for small shipyards and maritime communities.
        Title II--Loan Guarantee Program Administrative Changes

Sec. 201. Redesignation of duplicate numbered sections.
Sec. 202. Transfer of authority for Title XI non-fishing loan guarantee 
                            decisions to MARAD.

               TITLE I--ENHANCEMENT OF MARITIME PROGRAMS

SEC. 101. UNITED STATES MARITIME SERVICE.

    Section 1306(a) of the Maritime Education and Training Act of 1980 
(46 U.S.C. App. 1295e(a)), is amended by inserting ``and to perform 
functions to assist the United States merchant marine, as determined 
necessary by the Secretary,'' after ``United States'' the second place 
it appears.

SEC. 102. WAR RISK INSURANCE FOR MERCHANT MARINE VESSELS.

    Section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1288(a)) is amended by striking ``Upon the request of the Secretary of 
Transportation, the Secretary of the Treasury may invest or reinvest 
all or any part of the fund in securities of the United States or in 
securities guaranteed as to principal and interest by the United 
States.'' and inserting ``The Secretary of Transportation may request 
the Secretary of the Treasury to invest such portion of the fund as is 
not, in the judgment of the Secretary of Transportation, required to 
meet the current needs of the fund. Such investments shall be made by 
the Secretary of the Treasury in public debt securities of the United 
States, with maturities suitable to the need of the fund, and bearing 
interest rates determined by the Secretary of the Treasury, taking into 
consideration current market yields on outstanding marketable 
obligations of the United States of comparable maturity.''.

SEC. 103. MARITIME EDUCATION AND TRAINING.

    (a) Requirements for Admission to the United States Merchant Marine 
Academy.--Section 1303(b)(2) of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1295b(b)(2)) is amended by adding at the end the following:
            ``(C) Notwithstanding any other provision of law, an 
        individual appointed as a cadet may not be admitted to the 
        Academy as a student, unless at the time of the taking of the 
        official oath upon entry into the Merchant Marine Academy, that 
        individual satisfies the physical and mental requirements of 
        the Department of Defense to be appointed or enlisted as a 
        Midshipman, United States Naval Reserve. Following admission to 
        the Academy, notwithstanding any other provision of law, such 
        individual may continue as a student only if that individual 
        continues to satisfy the physical and mental standards set 
        forth in this subparagraph unless the Secretary of 
        Transportation waives the standards.''.
    (b) Reserve Training Compliance and Armed Forces Performance 
Reporting Requirement for United States Merchant Marine Academy 
Graduates.--Section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1295b(e)) is amended--
            (1) by striking subparagraph (D) of paragraph (1) and 
        inserting the following:
            ``(D) to apply for an appointment as, to accept if tendered 
        an appointment as, and to serve and perform all required duties 
        and comply with all requirements as, a commissioned officer in 
        Ready Reserve status in the United States Naval Reserve 
        (including the Merchant Marine Reserve and the United States 
        Naval Reserve), any other Reserve component of an armed force 
        of the United States, or any other equivalent, as determined by 
        the Secretary;''; and
            (2) by adding at the end the following:
    ``(6)(A) In order to meet the requirements of paragraph (1)(D), a 
graduate of the Academy shall perform all directed training and obey 
all orders and directions required by the relevant Reserve Component 
and remain qualified in Ready Reserve classification for a period of 
not less than 6 years, as required by the regulations of the applicable 
armed service unless such compliance is waived by the Secretary of 
Defense or the Secretary of the Department in which the United States 
Coast Guard is operating.
    ``(B) Notwithstanding section 552a of title 5, United States Code, 
the Secretary of Defense or the Secretary of the Department in which 
the Coast Guard is operating, and the Administrator of the National 
Oceanic and Atmospheric Administration--
            ``(i) shall report the status of obligated service of an 
        individual graduate upon request of the Maritime 
        Administration; and
            ``(ii) may, in their discretion, notify the Maritime 
        Administration of the default in performance of an graduate in 
        the performance of the graduate's duties, either on active duty 
        or in the Ready Reserve Component of their respective service, 
        or as a commissioned officer of the National Oceanic and 
        Atmospheric Administration.
    ``(C) A report or notice under subparagraph (B) shall identify the 
graduate determined to have been defaulted and provide all required 
information as to why such graduate has been defaulted. Upon receipt of 
such a report or notice, such graduate may be considered to be in 
default of the graduate's service obligations by the Maritime 
Administration, and be subject to all remedies the Maritime 
Administration may have with respect to such a default.''.
    (c) Authority for Additional Training Locations for Students at the 
United States Merchant Marine Academy.--Section 1303(f) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295b(f) is amended--
            (1) by striking ``and'' in paragraph (2);
            (2) by striking ``organizations.'' in paragraph (3) and 
        inserting ``organizations; and''; and
            (3) by adding at the end the following:
            ``(4) on such other vessels as the Secretary determines to 
        be valuable for the education of cadets at the Academy or in 
        the interest of national security.''.
    (d) Service in the Armed Forces and Alternate Service 
Requirements.--Section 1303(e) of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1295b(e)), as amended by subsection (b) of this section, is 
further amended by adding at the end the following:
    ``(7) An individual who serves as a commissioned officer on active 
duty in an armed force of the United States or in the National Oceanic 
and Atmospheric Administration for the 5 years immediately following 
graduation from the Academy shall be excused from the requirements of 
subparagraphs (1)(C), (1)(D), and (1)(E).
    ``(8) The Secretary may modify or waive any of the terms and 
conditions set forth in paragraph (1) through the imposition of 
alternative service requirements.''.
    (e) Global Maritime and Transportation School.--Title XIII of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1295 et seq.) is amended by 
adding at the end the following:

``SEC. 1309. OPERATION OF THE GLOBAL MARITIME AND TRANSPORTATION 
              SCHOOL.

    ``(a) Operation as Nonappropriated Fund Instrumentality.--After the 
date of enactment of the Maritime Administration Enhancement Act of 
2005, the Global Maritime and Transportation School shall continue to 
operate as a nonappropriated fund instrumentality of the United States 
under the jurisdiction of the Department of Transportation, Maritime 
Administration.
    ``(b) Activities.--
            ``(1) In general.--Under the general supervision of the 
        Department of Transportation, Maritime Administration, GMATS 
        shall develop, administer, and provide educational, training, 
        and professional development activities, including educational 
        activities, for Federal agencies, Federal employees, nonprofit 
        organizations, other entities, and members of the general 
        public, as well as carry out such other projects and activities 
        that may be authorized by the Superintendent.
            ``(2) Training services.--The training services and 
        educational activities provided by GMATS shall be available to 
        the Armed Forces of the United States and Commissioned Officers 
        of the National Oceanic and Atmospheric Administration, Federal 
        and State agencies, Federal and State employees, nonprofit 
        organizations, private companies or organizations, and private 
        individuals of the United States or foreign countries friendly 
        to the United States.
            ``(3) Federal requests for services.--Requests for training 
        or other services from the Armed Forces of the United States or 
        other agencies of the United States may be made pursuant to the 
        provisions of section 1535 of title 31, United States Code.
    ``(c) Fees and Donations.--
            ``(1) Collection of fees.--GMATS may charge and retain fair 
        and reasonable fees for the activities provided.
            ``(2) Acceptance and making of donations.--
                    ``(A) GMATS may accept, use, hold, dispose, and 
                administer gifts, bequests, and devises of money, 
                securities, and other real or personal property made 
                for the benefit of, or in connection with GMATS.
                    ``(B) GMATS shall not accept a donation from a 
                person that is actively engaged in a procurement 
                activity with GMATS or has an interest that may be 
                substantially affected by the performance or 
                nonperformance of an official duty of a member of the 
                Board or an employee of GMATS.
                    ``(C) GMATS is authorized to make gifts to the 
                Department of Transportation and the Secretary is 
                authorized to accept gifts from GMATS for any purpose.
            ``(3) Not federal funds.--Fees collected under paragraph 
        (1) and amounts received under paragraph (2) shall not be 
        considered to be Federal funds and shall not be required to be 
        deposited in the Treasury of the United States. GMATS shall not 
        be funded by appropriated funds.
    ``(d) Use of USMMA Faculty and Staff.--
            ``(1) Payment.--GMATS may provide payment to United States 
        Merchant Marine Academy faculty and staff for teaching and 
        other services for GMATS, but only to the extent that the 
        provision of such teaching or services does not interfere or 
        conflict with the official duties of the faculty and staff and 
        are approved by the Superintendent.
            ``(2) Contracting authority.--The Academy may enter into 
        contracts with GMATS to provide faculty and staff of the 
        Academy for teaching and other services and, to the extent of 
        the actual costs incurred by the Academy under said contracts, 
        credit such funds received under such contracts to the 
        Academy's appropriations, notwithstanding those provisions of 
        law relating to the deposit of miscellaneous receipts into the 
        Treasury.
    ``(e) General Administration.--
            ``(1) Authority of superintendent.--The Superintendent is 
        responsible for the overall supervision and administration of 
        GMATS and the determination of its policies. In implementing 
        this responsibility, the Superintendent shall appoint members 
        to the Board and shall designate one member as the Senior 
        Managing Director and may designate other Managing Directors as 
        necessary.
            ``(2) Authority of the board.--The Superintendent may 
        delegate to the Board the Superintendent's responsibility to 
        advise and oversee the supervision and administration of GMATS. 
        The Board may consist of both United States Merchant Marine 
        Academy employees and non-Academy employees, as determined by 
        the Superintendent. The Board shall be subject to regulation by 
        the Secretary and shall report to the Superintendent.
            ``(3) Authority of the senior managing director.--The 
        Superintendent may delegate to the Senior Managing Director of 
        GMATS the authority to manage, administer, and operate GMATS.
            ``(4) Duties of the managing directors.--The Senior 
        Managing Director shall be responsible, subject to the 
        supervision and direction of the Board and the Superintendent, 
        for carrying out the functions of GMATS. All other Managing 
        Directors shall be responsible, subject to the supervision and 
        direction of the Senior Managing Director, for carrying out the 
        functions of GMATS.
            ``(5) Borrowing and investment authority.--The Board, with 
        the approval of the Superintendent, may authorize the Senior 
        Managing Director--
                    ``(A) to borrow money on the credit of GMATS; and
                    ``(B) to invest funds held in excess of the current 
                operating requirements of GMATS for purposes of 
                maintaining a reasonable reserve.
            ``(6) Liability.--The Managing Directors and the other 
        members of the Board shall not be held personally liable for 
        any loss or damage that may accrue to GMATS as the result of 
        any act performed within the scope of their duties under this 
        section.
    ``(f) Employees.--Employees of GMATS are employees of a 
nonappropriated fund instrumentality of the United States.
    ``(g) Not a federal agency.--The GMATS shall not be considered a 
Federal agency for purposes of--
            ``(1) the Federal Advisory Committee Act (5 U.S.C.  ); or
            ``(2) sections 552 and 552a of title 5, United States Code.
    ``(h) Acquisition and Disposal of Property.--In order to carry out 
the activities of GMATS, GMATS may--
            ``(1) acquire goods, services, and real property by lease, 
        purchase. or otherwise;
            ``(2) maintain, enlarge, or remodel any such property;
            ``(3) have sole control of any such personal or real 
        property; and
            ``(4) dispose of real and personal property without regard 
        to the Federal Property and Administrative Services Act of 1949 
        (40 U.S.C. 101 et seq.).
    ``(i) Contract Authority.--GMATS may enter into contracts and 
leases without regard to the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 101 et seq.) or any other law that 
prescribes procedures for the procurement of property or service by an 
executive agency.
    ``(j) Use of Department Facilities and Resources.--GMATS may use 
the facilities and resources of the Department of Transportation, with 
the approval of the Superintendent, but only if any costs incurred by 
the Department that are attributable solely to GMATS operations and all 
costs incurred by GMATS arising out of such operations are paid using 
funds of GMATS or the Department of Transportation receives other 
consideration for paying for such costs. Any reimbursement may be 
retained by the United States Merchant Marine Academy and credited to 
the charged appropriations account.
    ``(k) Audits of Records.--The financial records of GMATS shall be 
made available to the Department of Transportation Inspector General, 
upon request, for purposes of conducting an audit.
    ``(l) Definitions.--In this section:
            ``(1) GMATS.--The term `GMATS' means the Global Maritime 
        and Transportation School at the United States Merchant Marine 
        Academy, a nonappropriated fund instrumentality of the Maritime 
        Administration of the United States Department of 
        Transportation.
            ``(2) Board.--The term `Board' means the GMATS Board of 
        Directors.
            ``(3) Director.--The term `Director' means a member of the 
        GMATS Board.
            ``(4) Managing Director.--The term `Managing Director' 
        means a member of the Board who is an employee of GMATS with 
        operational responsibility for the organization, but not a 
        Federal employee.
            ``(5) Senior Managing Director.--The term `Senior Managing 
        Director' means the Managing Director designated the `Senior 
        Managing Director' by the Superintendent, as set forth in 
        subsection (e) of this section.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of Transportation.
            ``(7) Superintendent.--The term `Superintendent' means the 
        Superintendent of the United States Merchant Marine Academy at 
        Kings Point, New York, operated by the Maritime Administration, 
        United States Department of Transportation or, in the absence 
        of the Superintendent, the Superintendent's authorized designee 
        or such other person as the Secretary may designate.''.

SEC. 104. AUTHORITY TO DISPOSE OF OBSOLETE GOVERNMENT VESSELS.

    (a) Repeal of Limitation on Scrapping.--Section 3502 of the Floyd 
D. Spence National Defense Authorization Act of Fiscal Year 2001 (Pub. 
L. 106-398; 114 Stat.1654A-490) is amended-
            (1) by striking subsection (c);
            (2) redesignating subsections (d), (e), and (f) as 
        subsections (c), (d), and (e), respectively; and
            (3) striking ``subsection (d)(1)'' in subsections ((d) and 
        (e), as redesignated, and inserting ``subsection (c)(1)''.
    (b) Transfer of Title of Obsolete Vessels To Be Disposed of as 
Artificial Reefs.--Paragraph (4) of section 4 of the Act entitled ``An 
Act to authorize appropriations for the fiscal year 1973 for certain 
maritime programs of the Department of Commerce, and for related 
purposes'' (Pub. L. 92-402; 16 U.S.C. 1220a) is amended to read as 
follows:
            ``(4) the transfer would be at no cost to the government 
        (except for any financial assistance provided under section 
        1220(c)(1) of this title) with the State taking delivery of 
        such obsolete ships and titles in an `as-is--where-is' 
        condition at such place and time designated as may be 
        determined by the Secretary of Transportation.''.

SEC. 105. AWARDS AND MEDALS.

    Section 5(c) of the Merchant Marine Decorations and Medals Act (46 
U.S.C. App. 2004(c)) is amended by striking ``provide at cost, or 
authorize for the manufacture and sale at reasonable prices by private 
persons--'' and inserting ``provide--''.

SEC. 106. ELIMINATION OF TARIFFS ON CERTAIN NATIONAL DEFENSE 
              ACTIVITIES.

    (a) Duty-free Treatment for Emergency War Materials Imported for 
Use by the Maritime Administration.--
            (1) The superior text to subheading 9808.00.30 of chapter 
        98 of the Harmonized Tariff Schedule of the United States is 
        amended by inserting ``or the Maritime Administration'' after 
        ``departments''.
            (2) Subheading 9808.00.30 of chapter 98 of the Harmonized 
        Tariff Schedule of the United States is re-designated as 
        subheading 9808.00.35.
            (3) The amendments made by this subsection shall be 
        effective with respect to goods entered, or withdrawn from 
        warehouse for consumption, on or after the fifteenth day after 
        the date of enactment of this Act.
    (b) Repairs Made to Vessels Operated as Part of the National 
Defense Reserve Fleet.--Section 466 of the Tariff Act of 1930 (19 
U.S.C. 1466) is amended by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively, and inserting after subsection 
(f) the following:
    ``(g) National Defense Reserve Fleet Exception.--
            ``(1) In general.--The duty imposed under subsection (a) 
        shall not apply to the cost of equipment, or any part thereof 
        purchased, of repair parts or materials used, or expenses of 
        repairs made in a foreign country for any vessel operated as 
        part of the National Defense Reserve Fleet when the vessel is 
        under the jurisdictional control of the Department of Defense 
        if equivalent equipment, parts, repair parts, or materials made 
        in the United States, or repairs made in the United States were 
        determined by the Secretary of Transportation not to be 
        reasonably available.
            ``(2) Report on determinations.--The Secretary of 
        Transportation shall transmit a report to the Senate Committee 
        on Commerce, Science, and Transportation and the House of 
        Representatives Committee on Armed Services setting forth the 
        circumstances under which any such determination was made by 
        the Secretary.''.

SEC. 107. AVAILABILITY OF FUNDS FROM APPLICATION FEES FOR DEEPWATER 
              PORT LICENSES.

    (a) In General.--Fees collected pursuant to the processing of 
applications for licenses for ownership, construction, and operation of 
deepwater ports, as authorized by section 5 of the Deepwater Port Act 
of 1974 (33 U.S.C. 1504), shall be credited to the Maritime 
Administration for deposit into its operations and training account. 
Fees credited pursuant to this section shall be used to defray 
administrative expenses and for enhancements and improvements to the 
program's operations, and shall be available until expended.
    (b) Limitation.--The amount of fees credited to the Administration 
under this section may not exceed $450,000 per fiscal year.

SEC. 108. AVAILABILITY OF FUNDS FROM ADMINISTRATIVE WAIVERS OF 
              COASTWISE TRADE LAWS FOR ELIGIBLE VESSELS.

    (a) In General.--Notwithstanding section 3302 of title 31, United 
States Code, fees collected pursuant to the processing of 
Administrative Waivers of the Coastwise Trade Laws for Eligible 
Vessels, as authorized by title V of the Coast Guard Authorization Act 
of 1998 (46 U.S.C. 12106 note)--
            (1) shall be credited as offsetting collections to the 
        Maritime Administration for deposit into its Operations and 
        Training account;
            (2) shall be available for expenditure to defray 
        administrative expenses and for enhancements and improvements 
        to the program's operations; and
            (3) shall remain available until expended.
    (b) Limitation.--The amount of fees credited to the Administration 
under this section may not exceed $50,000 per fiscal year.

SEC. 109. AMENDMENT TO VESSEL OPERATIONS REVOLVING FUND.

    Section 801 of the Act of June 2, 1951 (46 U.S.C. App. 1241a) is 
amended to read as follows:

``SEC. 801. VESSEL OPERATIONS REVOLVING FUND.

    ``(a) In General.--There is established in the Treasury, for the 
purposes set forth in subsection (b), a Vessel Operations Revolving 
Fund which shall be available without appropriation to the Secretary of 
Transportation. All amounts in the Fund shall be available for the 
purposes of the Fund, notwithstanding any other provision of law, and 
shall remain available until expended.
    ``(b) Uses.--Amounts in the Fund shall be available for--
            ``(1) all expenses and charges relating to the maintenance, 
        repair, and operation of vessels under the jurisdiction of the 
        Secretary;
            ``(2) all expenses and charges relating to the maintenance, 
        repair, and operation of the facilities necessary to preserve 
        and maintain such vessels;
            ``(3) payment of all costs of, and indirect costs that are 
        reasonably related to, contracting, procurement, inspection, 
        storage, management, distribution, and accountability of 
        vessels under the jurisdiction of the Secretary and such 
        property, facilities, and nonpersonal services as the Secretary 
        deems necessary for the operation and maintenance of such 
        vessels;
            ``(4) expenses incurred in activating, repairing, and 
        deactivating vessels under the jurisdiction of the Secretary;
            ``(5) the acquisition of such vessels for the National 
        Defense Reserve Fleet as both the Secretary and the Secretary 
        of Navy deem necessary;
            ``(6) necessary expenses incurred in the protection, 
        preservation, maintenance, acquisition, or use of vessels of 
        the National Defense Reserve Fleet involved in mortgage 
        foreclosure or forfeiture proceedings instituted by the United 
        States Government, including payment of prior claims and liens, 
        expenses of sale, and other related charges; and
            ``(7) costs and expenses incurred to repair damages to 
        Government property under the jurisdiction or control of the 
        Secretary that is used in connection with the National Defense 
        Reserve Fleet.
    ``(c) Credits to the Fund.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, there shall be credited to and retained by the Fund--
                    ``(A) all amounts received in connection with 
                vessel operations for vessels under the jurisdiction of 
                the Secretary; except that there shall be no surcharge 
                on charter hire or similar collection in connection 
                with vessel operations for the purpose of the reserve 
                described in subsection (c)(2); and
                    ``(B) any reimbursements, advances, setoffs, 
                refunds, or recoveries arising out of or relating to 
                the operation and maintenance of vessels of the 
                National Defense Reserve Fleet under the jurisdiction 
                of the Secretary, including any recoveries from 
                litigation, arbitration, or otherwise.
                    ``(2) Reserve.--There shall be established and 
                retained in the Fund from litigation and arbitration 
                recoveries a reserve, not to exceed $30,000,000 at any 
                one time, for use as a reserve for unscheduled repairs 
                and other necessary expenses in connection with 
                casualties to vessels in the National Reserve Fleet.
    ``(d) Laws Relating to Seamen.--Subject to the provisions of 
sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943 (50 
U.S.C. App. 1291(a) and (c), 1293(c), 1294), seamen employed on vessels 
in the custody of the Secretary and operated through the Secretary's 
ship managers or general agents may be so employed by such ship 
managers or agents in accordance with customary commercial practices in 
the maritime industry without regard to any of the laws on employment 
of persons by the United States.
    ``(e) Advancements.--With the approval of the Director of the 
Office of Management and Budget, the Secretary may advance amounts the 
Secretary considers necessary from the Fund to the Maritime 
Administration Operations and Training appropriation account for 
purposes of carrying out duties and powers related to the maintenance, 
repair, and operation of vessels under the jurisdiction of the 
Secretary, without regard to the limitations on amounts stated in the 
Operations and Training appropriation.
    ``(f) Limitations.--
            ``(1) In general.--Amounts made available to the Secretary 
        for purposes of this section or any other law may not be used 
        to pay for a vessel described in paragraph (2) unless the 
        compensation to be paid is computed under section 56303 of 
        title 46, United States Code, as that section is interpreted by 
        the Comptroller General.
            ``(2) Applicable vessels.--Paragraph (1) applies to a 
        vessel--
                    ``(A) the title to which is acquired by the 
                Government by requisition or purchase;
                    ``(B) the use of which is taken by requisition or 
                agreement; or
                    ``(C) that is lost while insured by the Government.
            ``(3) Nonapplicable vessels.--Paragraph (1) does not apply 
        to a vessel under a construction-differential subsidy 
        contract.''.

SEC. 110. RIGHT TO USE MARITIME ADMINISTRATION DECORATION.

    Section 8 of the Merchant Marine Decorations and Medals Act (46 
U.S.C. App. 2007) is amended by inserting ``or the Secretary of 
Transportation,'' after ``Act,''.

SEC. 111. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM.

    Amounts appropriated or otherwise made available for any fiscal 
year for an intermodal marine facility comprising a component of the 
Hawaii Port Infrastructure Expansion Program, and any non-Federal 
contributions made available for that program, shall be--
            (1) transferred to and administered by the Administrator of 
        the Maritime Administration; and
            (2) subject only to such conditions and requirements as may 
        be required by the Maritime Administration.

SEC. 112. PAYMENTS FOR STATE AND REGIONAL MARITIME ACADEMIES.

    (a) Annual Payment.--Section 1304(d)(1)(C)(ii) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295c(d)(1)(C)(ii)) is amended by 
striking ``$200,000'' and inserting ``subject to the availability of 
appropriations, $300,000 for fiscal year 2006, $400,000 for fiscal year 
2007, and $500,000 for fiscal year 2008 and each fiscal year 
thereafter''.
    (b) School Ship Fuel Payment.--Section 1304(c)(2) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1295c(c)(2)) is amended--
            (1) by striking `The Secretary may pay to any State 
        maritime academy' and inserting `(A) The Secretary shall, 
        subject to the availability of appropriations, pay to each 
        State maritime academy'; and
            (2) by adding at the end the following:
    ``(B) The amount of the payment to a State maritime academy under 
this paragraph shall not exceed--
            ``(i) $100,000 for fiscal year 2006;
            ``(ii) $200,000 for fiscal year 2007; and
            ``(iii) $300,000 for fiscal year 2008 and each fiscal year 
        thereafter.''.

SEC. 113. REDUCTION OF REPORT BURDEN.

    Section 3502 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (114 Stat. 1654A-492), as amended by section 
104, is further amended by striking subsection (d), as redesignated, 
and redesignating subsection (e) as subsection (d).

SEC. 114. ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME COMMUNITIES.

    (a) Establishment of Program.--The Administrator of the Maritime 
Administration shall establish a program to provide assistance to State 
and local governments--
            (1) to provide assistance in the form of grants, loans, and 
        loan guarantees to small shipyards for capital improvements; 
        and
            (2) for maritime training programs in communities whose 
        economies are substantially related to 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; and
                    (B) the local, State, and regional economy in which 
                the communities are located; and
            (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.
    (c) Use of Funds.--Assistance provided under this section may be 
used--
            (1) to make capital and related improvements in small 
        shipyards located in or near maritime communities;
            (2) to encourage, assist in, or provide training for 
        residents of maritime communities that will enhance the 
        economic viability of those communities; and
            (3) for such other purposes as the Administrator determines 
        to be consistent with and supplemental to such activities.
    (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)(5).
    (e) Matching Requirements.--
            (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) Exceptions.--
                    (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.
                    (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).
    (f) Application.--
            (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.
            (2) Minimum standards for payment or reimbursement.--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.
            (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 that--
            (1) is a small business concern (within the meaning of 
        section 3 of the Small Business Act (15 U.S.C. 632); and
            (2) does not have more than 600 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 improvement grants.

        TITLE II--LOAN GUARANTEE PROGRAM ADMINISTRATIVE CHANGES

SEC. 201. REDESIGNATION OF DUPLICATE NUMBERED SECTIONS.

    Title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et 
seq.) is amended by redesignating the second sections 1111 and 1112, as 
added by section 303 of the Sustainable Fisheries Act (Public Law 104-
297; 110 Stat. 3616) as sections 1113 and 1114, respectively.

SEC. 202. TRANSFER OF AUTHORITY FOR TITLE XI NON-FISHING LOAN GUARANTEE 
              DECISIONS TO MARAD.

    (a) In General.--Title XI of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1271 et seq.) is amended--
            (1) by striking ``Secretary'' each place it appears and 
        inserting ``Secretary or Administrator'' in--
                    (A) section 1101 (c), (f), and (g);
                    (B) section 1102;
                    (C) section 1103(a), (b), (c), (e), (g), and (h);
                    (D) section 1104A, except in--
                            (i) subsection (b)(7) and the undesignated 
                        paragraph that follows;
                            (ii) paragraphs (1), (2), (3)(B), and (4) 
                        of subsection (d);
                            (iii) subsection (e)(2)(F) the second place 
                        it appears;
                            (iv) subsection (j); and
                            (v) subsection (n)(1) the first place it 
                        appears;
                    (E) section 1104B;
                    (F) section 1105(a), (b), (c), and (e);
                    (G) section 1105(d) the first, second, third, 
                fifth, and last places it appears; and
                    (H) sections 1108, 1109 (except in subsection (c)), 
                and 1113 (as redesignated by section 201 of this 
                title);
            (2) by striking ``Secretary'' and inserting 
        ``Administrator'' in--
                    (A) section 1103(i);
                    (B) section 1103(j) the first place it appears;
                    (C) section 1104A(b)(7) each place it appears but 
                not in the undesignated paragraph that follows 
                subsection (b)(7);
                    (D) section 1104A(d)(1)(A) each place it appears 
                except the first;
                    (E) section 1104A(d)(3) each place it appears 
                except in subparagraph (B);
                    (F) section 1104A(j)(1) the first, fifth, and 
                seventh places it appears;
                    (G) section 1104A(n) each place it appears except 
                the first;
                    (H) section 1110 each place it appears except the 
                first and fourth places it appears in subsection (b);
                    (I) section 1111(a) and (b)(2) each place it 
                appears;
                    (J) section 1111(b)(4) each place it appears except 
                the first; and
                    (K) section 1112 each place it appears; and
            (3) by striking ``Secretary's'' in sections 1108(g)(1) and 
        1109(d)(3) and inserting ``Secretary's or Administrator's''.
    (b) Additional and Conforming Title XI Changes.--
            (1) Section 1101 is amended--
                    (A) by striking ``title,'' and all that follows in 
                subsection (n) and inserting ``title.''; and
                    (B) by adding at the end the following:
            ``(p) The term `Administrator' means the Administrator of 
        the Maritime Administration.''.
            (2) Section 1103(j) is amended by striking ``In 
        guaranteeing and entering commitments to guarantee under this 
        section,'' and inserting ``If the Secretary or Administrator 
        seeks a priority for a commitment to guarantee under this 
        section,''.
            (3) Section 1104A(d) is amended--
                    (A) by striking ``Secretary of Transportation'' in 
                paragraphs (1)(A) and (3)(B) and inserting 
                ``Administrator'';
                    (B) by striking ``the waiver'' in paragraph (4)(B) 
                and inserting ``if deemed necessary by the Secretary or 
                Administrator, the waiver'';
                    (C) by striking ``the increased'' in paragraph 
                (4)(B) and inserting ``any significant increase in''.
            (4) Section 1104A(f) is amended--
                    (A) by striking ``financial structures, or other 
                risk factors identified by the Secretary or 
                Administrator.'' in paragraph (2), as amended by 
                subsection (a) of this section, and inserting ``or 
                financial structures.'';
                    (B) by adding at the end of paragraph (2) ``The 
                Secretary or Administrator shall not establish by rule, 
                regulation, or procedure any requirement for 
                independent analysis that is, or is intended to be, 
                applied uniformly to loan guarantee applications 
                without regard to such risk factors.'';
                    (C) by striking ``financial structures, or other 
                risk factors identified by the Secretary or 
                Administrator.'' in paragraph (3), as amended by 
                subsection (a) of this section, and inserting ``or 
                financial structures.''; and
                    (D) by adding at the end the following:
    ``(5) A third party independent analysis conducted under paragraph 
(2) shall be performed by a private sector expert in assessing such 
risk factors who is selected by the Administrator. No Federal funds 
shall be expended to conduct any review of any application under this 
title, or any modification of an existing loan guarantee, by any party 
that is not an expert in maritime finance or operations.''.
            (5) Section 1104A(j)(2) is amended by striking ``The 
        Secretary of Transportation'' and inserting ``The 
        Administrator''.
            (6) Section 1104A(l) is amended by adding at the end ``The 
        Administrator shall retain in the Maritime Administration 
        adequate resources with sufficient expertise to perform the 
        functions prescribed by this title so that no assistance from 
        the Department of Transportation or any other Federal agency is 
        required to carry out this title.''.
            (7) Section 1104A(m) is amended by striking the last 
        sentence and inserting ``If the Secretary or Administrator has 
        waived a requirement under section 1104A(d), the loan agreement 
        shall include requirements for additional payments, collateral, 
        or equity contributions to meet such waived requirement upon 
        the occurrence of verifiable conditions indicating that the 
        obligor's financial condition enables the obligor to meet the 
        waived requirement.''.
            (8) Section 1104A(n)(1) is amended by striking ``The 
        Secretary of Transportation'' and inserting ``The 
        Administrator''.
            (9) Section 1111 is amended--
                    (A) by striking ``SECRETARY OF TRANSPORTATION'' in 
                the section heading and inserting ``ADMINISTRATOR'';
                    (B) by striking ``Secretary of Transportation'' 
                each place it appears and inserting ``Administrator'';
    (c) Conforming Changes in Other Statutes.--
            (1) Section 401(a) of the Ocean Shipping Reform Act of 1998 
        (46 U.S.C. App. 1273a(a)) is amended by striking ``Secretary of 
        Transportation'' and inserting ``Administrator of the Maritime 
        Administration''.
            (2) Section 101 of Public Law 85-469 (46 U.S.C. 1280) is 
        amended by inserting ``or the Administrator of the Maritime 
        Administration'' after ``Secretary''.
            (3) Section 3527 of the Maritime Security Act of 2003 (46 
        U.S.C. App. 1280b) is amended by striking ``Secretary of 
        Transportation'' and inserting ``the Administrator of the 
        Maritime Administration''.
            (4) Section 3528 of the Maritime Security Act of 2003 (46 
        U.S.C. App. 1271 note) is repealed.
                                                       Calendar No. 295

109th CONGRESS

  1st Session

                                S. 2029

                          [Report No. 109-183]

_______________________________________________________________________

                                 A BILL

  To amend and enhance certain maritime programs of the Department of 
                Transportation, and for other purposes.

_______________________________________________________________________

                           November 17, 2005

               Read twice and placed on the calendarD23/
```