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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7464 Introduced in House (IH)]

<DOC>

116th CONGRESS
  2d Session
                                H. R. 7464

   To amend title 46, United States Code, to direct the Secretary of 
Transportation to establish a merchant mariner education loan program, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 1, 2020

  Mr. Sean Patrick Maloney of New York (for himself, Mr. DeFazio, Mr. 
Graves of Missouri, and Mr. Gibbs) introduced the following bill; which 
   was referred to the Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL

 
   To amend title 46, United States Code, to direct the Secretary of 
Transportation to establish a merchant mariner education loan program, 
                        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.

    This Act may be cited as the ``Elijah E. Cummings Merchant Mariner 
Workforce Development Act''.

SEC. 2. CENTERS OF EXCELLENCE FOR DOMESTIC MARITIME WORKFORCE TRAINING 
              AND EDUCATION: TECHNICAL AMENDMENTS.

    (a) Redesignation and Transfer of Section.--Section 54102 of title 
46, United States Code, is redesignated as section 51706 of such title 
and transferred to appear after section 51705 of such title.
    (b) Clerical Amendments.--Title 46, United States Code, is 
amended--
            (1) in the analysis for chapter 541, by striking the item 
        relating to section 54102; and
            (2) in the analysis for chapter 517, by striking the item 
        relating to section 51705 and inserting the following:

``51705. Training for use of force against piracy.
``51706. Center of excellence for domestic maritime workforce training 
                            and education''.

SEC. 3. MERCHANT MARINER EDUCATION LOAN PROGRAM.

    (a) In General.--Chapter 517 of title 46, United States Code, as 
amended by section 2 of this Act, is further amended by adding at the 
end the following:
``Sec. 51707. Merchant mariner career training loan program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish the Elijah E. Cummings Merchant Mariner Career Training Loan 
Program (in this section referred to as the `program') in accordance 
with the requirements of this section.
    ``(b) Purpose.--The purpose of the program shall be to make 
merchant mariner career training loans available to eligible students 
to provide for the training of United States merchant mariners, 
including those working to receive a Standards of Training, 
Certification and Watchkeeping endorsement under subchapter B of 
chapter I of title 46, Code of Federal Regulations.
    ``(c) Administration.--The program shall be carried out by the 
Secretary, acting through the Administrator of the Maritime 
Administration.
    ``(d) Duties.--The Secretary shall--
            ``(1) allocate, on an annual basis, the award of loans 
        under the program based on the needs of students;
            ``(2) develop an application process and eligibility 
        criteria for the award of loans under the program;
            ``(3) approve applications for loans under the program 
        based on the eligibility criteria and allocations made under 
        paragraph (1); and
            ``(4) designate maritime training institutions at which 
        loans made under the program may be used.
    ``(e) Designation of Maritime Training Institutions.--
            ``(1) In general.--In designating maritime training 
        institutions under subsection (d)(4), the Secretary--
                    ``(A) may include Federal, State, and commercial 
                training institutions and nonprofit training 
                organizations, including centers of excellence 
                designated under section 51706;
                    ``(B) shall designate institutions based on 
                geographic diversity and scope of classes offered;
                    ``(C) shall ensure that designated institutions 
                have the ability to administer the program; and
                    ``(D) shall ensure that designated institutions 
                meet requirements to provide training instruction for 
                appropriate Coast Guard-approved training instruction.
            ``(2) Exclusions.--The Secretary--
                    ``(A) may exclude from participation in the program 
                a maritime training institution that has had severe 
                performance deficiencies, including deficiencies 
                demonstrated by audits or program reviews conducted 
                during the 5 calendar years immediately preceding the 
                present year;
                    ``(B) shall exclude from participation in the 
                program a maritime training institution that has 
                delinquent or outstanding debts to the United States, 
                unless such debts are being repaid under or in 
                accordance with a repayment arrangement satisfactory to 
                the United States, or the Secretary in the Secretary's 
                discretion determines that the existence or amount of 
                any such debts has not been finally determined by the 
                appropriate Federal agency;
                    ``(C) may exclude from participation in the program 
                a maritime training institution that has failed to 
                comply with quality standards established by the 
                Department of Labor, the Coast Guard, or a State; and
                    ``(D) may establish such other criteria as the 
                Secretary determines will protect the financial 
                interest of the United States and promote the purposes 
                of this section.
    ``(f) State Maritime Academies.--
            ``(1) Use of funds for loans to students attending state 
        maritime academies.--The Secretary may obligate not more than 
        50 percent of the amounts appropriated to carry out this 
        section for a fiscal year for loans to undergraduate students 
        attending State maritime academies receiving assistance under 
        chapter 515 of this title.
            ``(2) Academic standards for students.--Students at State 
        maritime academies receiving loans under the program shall 
        maintain satisfactory progress toward the completion of their 
        course of study as evidenced by the maintenance of a cumulative 
        C average, or its equivalent, or academic standing consistent 
        with the requirements for graduation, as determined by the 
        institution.
    ``(g) Loan Amounts and Use.--
            ``(1) Maximum amounts.--
                    ``(A) In general.--The Secretary may not make loans 
                to a student under the program in an amount that 
                exceeds $30,000 in a calendar year or $120,000 in the 
                aggregate.
                    ``(B) Adjustment for inflation.--The Secretary 
                shall, every 5 years for the life of a loan under the 
                program, adjust the maximum amounts described in 
                subparagraph (A) in accordance with any change in the 
                Consumer Price Index for All Urban Consumers published 
                by the Bureau of Labor Statistics of the Department of 
                Labor that occurs since the previous adjustment.
            ``(2) Use of loan proceeds.--A student who receives a loan 
        under the program may use the proceeds of the loan only for 
        postsecondary expenses incurred at an institution designated by 
        the Secretary under subsection (d)(4) for books, tuition, 
        required fees, travel to and from training facilities, and room 
        and board.
    ``(h) Student Eligibility.--
            ``(1) In general.--Subject to paragraph (2), to be eligible 
        to receive a loan under the program, a student shall--
                    ``(A) be eligible to hold a license or merchant 
                mariner document issued by the Coast Guard;
                    ``(B) provide to the Secretary such information as 
                the Secretary may require, including all current Coast 
                Guard documents, certifications, proof of United States 
                citizenship or permanent legal status, and a statement 
                of intent to enter a maritime career;
                    ``(C) meet the enrollment requirements of a 
                maritime training institution designated by the 
                Secretary under subsection (d)(4); and
                    ``(D) sign an agreement to--
                            ``(i) complete a course of instruction at 
                        such a maritime training institution; and
                            ``(ii) maintain a license or document and 
                        work under the authority of the license or 
                        document and any associated endorsements for at 
                        least 18 months following the date of 
                        graduation from the maritime program for which 
                        the loan proceeds will be used.
            ``(2) Limitation.--An undergraduate student at the United 
        States Merchant Marine Academy shall not be eligible for a loan 
        under the program.
    ``(i) Administration of Loans.--
            ``(1) Contents of loan agreements.--Any agreement between 
        the Secretary and a student borrower for a loan under the 
        program shall--
                    ``(A) be evidenced by a note or other written 
                instrument that provides for the repayment of the 
                principal amount of the loan and any origination fee, 
                together with interest thereon, in equal installments 
                (or, if the student borrower so requests, in graduated 
                periodic installments determined in accordance with 
                such schedules as may be approved by the Secretary) 
                payable quarterly, bimonthly, or monthly, at the option 
                of the student borrower, over a period beginning 9 
                months from the date on which the student borrower 
                completes study or discontinues attendance at the 
                maritime program for which the loans are used at the 
                institution approved by the Secretary and not exceeding 
                10 years;
                    ``(B) include provision for acceleration of 
                repayment of the whole, or any part, of such loan, at 
                the option of the student borrower;
                    ``(C) provide the loan without security and without 
                endorsement;
                    ``(D) provide that the liability to repay the loan 
                shall be canceled upon the death of the student 
                borrower, or if the student borrower becomes 
                permanently and totally disabled, as determined in 
                accordance with regulations to be issued by the 
                Secretary;
                    ``(E) contain a notice of the system of disclosure 
                of information concerning default on such loan to 
                credit bureau organizations; and
                    ``(F) include provisions for deferral of repayment, 
                as determined by the Secretary.
            ``(2) Rate of interest.--A student borrower who receives a 
        loan under the program shall be obligated to repay the loan 
        amount to the Secretary, together with interest beginning in 
        the period referred to in paragraph (1)(A), at a rate of 
        interest determined by the Secretary, in consultation with the 
        Secretary of Education, in accordance with section 455 of the 
        Higher Education Act of 1965 (20 U.S.C. 1087e).
            ``(3) Disclosure required prior to disbursement.--
                    ``(A) In general.--The Secretary shall at or prior 
                to the time the Secretary makes a loan to a student 
                borrower under the program, provide thorough and 
                adequate loan information on such loan to the student 
                borrower. The disclosures required by this paragraph 
                may be made as part of the written application material 
                provided to the student borrower, as part of the 
                promissory note evidencing the loan, or on a separate 
                written form provided to the student borrower.
                    ``(B) Contents.--The disclosures shall include--
                            ``(i) the address to which communications 
                        and payments should be sent;
                            ``(ii) the principal amount of the loan;
                            ``(iii) the amount of any charges collected 
                        at or prior to the disbursal of the loan and 
                        whether such charges are to be deducted from 
                        the proceeds of the loan or paid separately by 
                        the student borrower;
                            ``(iv) the stated interest rate on the 
                        loan;
                            ``(v) the yearly and cumulative maximum 
                        amounts that may be borrowed;
                            ``(vi) an explanation of when repayment of 
                        the loan will be required and when the student 
                        borrower will be obligated to pay interest that 
                        accrues on the loan;
                            ``(vii) a statement as to the minimum and 
                        maximum repayment term that the Secretary may 
                        impose, and the minimum monthly payment 
                        required by law and a description of any 
                        penalty imposed as a consequence of default, 
                        such as liability for expenses reasonably 
                        incurred in attempts by the Secretary to 
                        collect on a loan;
                            ``(viii) a statement of the total 
                        cumulative balance, including the loan applied 
                        for, owed by the student borrower to the 
                        Secretary, and an estimate of the projected 
                        monthly payment, given such cumulative balance;
                            ``(ix) an explanation of any special 
                        options the student borrower may have for loan 
                        consolidation or other refinancing of the loan;
                            ``(x) a statement that the student borrower 
                        has the right to prepay all or part of the 
                        loan, at any time, without penalty;
                            ``(xi) a statement summarizing 
                        circumstances in which repayment of the loan or 
                        interest that accrues on the loan may be 
                        deferred, and a brief notice of the program for 
                        repayment of loans, on the basis of military 
                        service, pursuant to the Department of Defense 
                        educational loan repayment program (10 U.S.C. 
                        16302);
                            ``(xii) a definition of default and the 
                        consequences to the student borrower if the 
                        student borrower defaults, together with a 
                        statement that the disbursement of, and the 
                        default on, a loan under this part shall be 
                        reported to a credit bureau or credit reporting 
                        agency;
                            ``(xiii) to the extent practicable, the 
                        effect of accepting the loan on the eligibility 
                        of the student borrower for other forms of 
                        student assistance; and
                            ``(xiv) an explanation of any cost the 
                        student borrower may incur in the making or 
                        collection of the loan.
                    ``(C) Information to be provided without cost.--The 
                information provided under this paragraph shall be 
                available to the Secretary without cost to the student 
                borrower.
            ``(4) Repayment after default.--The Secretary may require 
        any student borrower who has defaulted on a loan made under the 
        program to--
                    ``(A) pay all reasonable collection costs 
                associated with such loan; and
                    ``(B) repay the loan pursuant to an income 
                contingent repayment plan.
            ``(5) Authorization to reduce rates and fees.--
        Notwithstanding any other provision of this section, the 
        Secretary may prescribe by regulation any reductions in the 
        interest rate or origination fee paid by a student borrower of 
        a loan made under the program as the Secretary determines 
        appropriate to encourage ontime repayment of the loan. Such 
        reductions may be offered only if the Secretary determines the 
        reductions are cost neutral and in the best financial interest 
        of the United States.
            ``(6) Collection of repayments.--The Secretary shall 
        collect repayments made under the program and exercise due 
        diligence in such collection, including maintenance of all 
        necessary records to ensure that maximum repayments are made. 
        Collection and servicing of repayments under the program shall 
        be pursued to the full extent of the law, including wage 
        garnishment if necessary. The Secretary of the Department in 
        which the Coast Guard is operating shall provide the Secretary 
        of Transportation with any information regarding a merchant 
        mariner that may aid in the collection of repayments under this 
        section.
            ``(7) Repayment schedule.--A student borrower who receives 
        a loan under the program shall repay the loan quarterly, 
        bimonthly, or monthly, at the option of the student borrower, 
        over a period beginning 9 months from the date the student 
        borrower completes study or discontinues attendance at the 
        maritime program for which the loan proceeds are used and 
        ending not more than 10 years after the date repayment begins. 
        Provisions for deferral of repayment shall be determined by the 
        Secretary.
            ``(8) Contracts for servicing and collection of loans.--The 
        Secretary may--
                    ``(A) enter into a contract or other arrangement 
                with State or nonprofit agencies and, on a competitive 
                basis, with collection agencies for servicing and 
                collection of loans under this section; and
                    ``(B) conduct litigation necessary to carry out 
                this section.
    ``(j) Revolving Loan Fund.--
            ``(1) Establishment.--The Secretary shall establish a 
        revolving loan fund consisting of amounts deposited in the fund 
        under paragraph (2).
            ``(2) Deposits.--The Secretary shall deposit in the fund--
                    ``(A) receipts from the payment of principal and 
                interest on loans made under the program; and
                    ``(B) any other monies paid to the Secretary by or 
                on behalf of individuals under the program.
            ``(3) Availability of amounts.--Amounts in the fund shall 
        be available to the Secretary, without further appropriation--
                    ``(A) to cover the administrative costs of the 
                program, including the maintenance of records and 
                making collections under this section; and
                    ``(B) to the extent that amounts remain available 
                after paying such administrative costs, to make loans 
                under the program.
            ``(4) Maintenance of records.--The Secretary shall maintain 
        accurate records of the administrative costs referred to in 
        paragraph (3)(A).
    ``(k) Annual Report.--The Secretary, on an annual basis, shall 
submit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the program, including--
            ``(1) the total amount of loans made under the program in 
        the preceding year;
            ``(2) the number of students receiving loans under the 
        program in the preceding year; and
            ``(3) the total amount of loans made under program that are 
        in default as of the date of the report.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2021 through 2026--
            ``(1) $10,000,000 for making loans under the program; and
            ``(2) $1,000,000 for administrative expenses of the 
        Secretary in carrying out the program.
``Sec. 51708. Merchant mariner recruitment, training, and retention 
              program
    ``(a) Strategic Plan.--
            ``(1) In general.--Not later than one year after the date 
        of enactment of this section, and at least once every 3 years 
        thereafter, the Secretary of Transportation, acting through the 
        Administrator of the Maritime Administration, shall publish in 
        the Federal Register a plan to recruit, train, and retain 
        merchant mariners for the 5-year period following the date of 
        publication of the most recently published plan under this 
        paragraph.
            ``(2) Contents.--A plan published under paragraph (1) shall 
        contain--
                    ``(A) a strategy to address merchant mariner 
                recruitment, training, and retention issues in the 
                United States; and
                    ``(B) demonstration and research priorities 
                concerning merchant mariner recruitment, training, and 
                retention.
            ``(3) Factors.--In developing a plan under paragraph (1), 
        the Secretary shall take into account, at a minimum--
                    ``(A) the availability of existing research (as of 
                the date of publication of the plan); and
                    ``(B) the need to ensure results that have broad 
                applicability.
            ``(4) Consultation.--In developing a plan under paragraph 
        (1), the Secretary shall consult with representatives of the 
        maritime industry, labor organizations, including the Commander 
        of the Transportation Command and the Commander of the Military 
        Sealift Command, and other governmental entities and persons 
        with an interest in the maritime industry.
            ``(5) Transmittal to congress.--The Secretary shall 
        transmit copies of a plan published under paragraph (1) to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate.
    ``(b) Demonstration and Research Projects.--
            ``(1) In general.--The Secretary may award grants to, or 
        enter into contracts or cooperative agreements with, a maritime 
        training institutions designated under section 51607(e) or a 
        consortium such institutions, to carry out demonstration and 
        research projects that implement the priorities identified in 
        the plan prepared under subsection (a)(1), for the purpose of 
        recruiting, training, or retaining United States merchant 
        mariners.
            ``(2) Competitive awards.--Grants shall be awarded. and 
        contracts and cooperative agreements shall be entered into, 
        under this subsection on a competitive basis under guidelines 
        and requirements to be established by the Secretary.
            ``(3) Applications.--To be eligible to receive a grant or 
        enter into a contract or cooperative agreement under this 
        section for a project under this subsection, a maritime 
        training institution shall submit to the Secretary a proposal 
        that includes, at a minimum--
                    ``(A) a description of the project; and
                    ``(B) a method for evaluating the effectiveness of 
                the project.
            ``(4) Eligible projects.--Projects eligible for grants, 
        contracts, and cooperative agreements under this subsection--
                    ``(A) shall carry out the demonstration and 
                research priorities included in the plan published 
                under subsection (a)(1); and
                    ``(B) may--
                            ``(i) provide training to upgrade the 
                        skills of United States merchant mariners, 
                        including training to acquire a Standards of 
                        Training, Certification and Watchkeeping 
                        endorsement under subchapter B of chapter I of 
                        title 46, Code of Federal Regulations;
                            ``(ii) promote the use of distance learning 
                        that enables students to take courses through 
                        the use of teleconferencing, the Internet, and 
                        other media technology;
                            ``(iii) assist in providing services to 
                        address merchant mariner recruitment and 
                        training of youth residing in targeted high 
                        poverty areas within empowerment zones and 
                        enterprise communities;
                            ``(iv) implement partnerships with national 
                        and regional organizations with special 
                        expertise in developing, organizing, and 
                        administering merchant mariner recruitment and 
                        training services;
                            ``(v) design, develop, and test an array of 
                        approaches to providing recruitment, training, 
                        or retention services, including to one or more 
                        targeted populations;
                            ``(vi) in conjunction with employers, 
                        organized labor, other groups (such as 
                        community coalitions), and Federal, State, or 
                        local agencies, design, develop, and test 
                        various training approaches in order to 
                        determine effective practices; or
                            ``(vii) assist in the development and 
                        replication of effective service delivery 
                        strategies for the national maritime industry 
                        as a whole.
``Sec. 51709. Authorization of appropriations
    ``There are authorized to be appropriated for each of fiscal years 
2021 through 2026--
            ``(1) $10,000,000 for making grants and entering into 
        cooperative agreements under sections 51707 and 51708; and
            ``(2) $1,000,000 for administrative expenses of the 
        Secretary in carrying out such sections.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

``51707. Merchant mariner career training loan program.
``51708. Merchant mariner recruitment, training, and retention program.
``51709. Authorization of appropriations.''.
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