I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Elijah E. Cummings 

5 Merchant Mariner Workforce Development Act’’. 


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1 SEC. 2. CENTERS OF EXCELLENCE FOR DOMESTIC MARI2 TIME WORKFORCE TRAINING AND EDU3 CATION: TECHNICAL AMENDMENTS. 

4 (a) REDESIGNATION AND TRANSFER OF SECTION.— 

5 Section 54102 of title 46, United States Code, is redesig6 nated as section 51706 of such title and transferred to 

7 appear after section 51705 of such title. 

8 (b) CLERICAL AMENDMENTS.—Title 46, United 

9 States Code, is amended— 

10 (1) in the analysis for chapter 541, by striking 

11 the item relating to section 54102; and 

12 (2) in the analysis for chapter 517, by striking 

13 the item relating to section 51705 and inserting the 

14 following: 

‘‘51705. Training for use of force against piracy. 

‘‘51706. Center of excellence for domestic maritime workforce training and education’’. 

15 SEC. 3. MERCHANT MARINER EDUCATION LOAN PROGRAM. 

16 (a) IN GENERAL.—Chapter 517 of title 46, United 

17 States Code, as amended by section 2 of this Act, is fur18 ther amended by adding at the end the following: 

19 ‘‘§ 51707. Merchant mariner career training loan pro20 gram 

21 ‘‘(a) ESTABLISHMENT.—The Secretary of Transpor22 tation shall establish the Elijah E. Cummings Merchant 

23 Mariner Career Training Loan Program (in this section 


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1 referred to as the ‘program’) in accordance with the re2 quirements of this section. 

3 ‘‘(b) PURPOSE.—The purpose of the program shall 

4 be to make merchant mariner career training loans avail5 able to eligible students to provide for the training of 

6 United States merchant mariners, including those working 

7 to receive a Standards of Training, Certification and 

8 Watchkeeping endorsement under subchapter B of chapter 

9 I of title 46, Code of Federal Regulations. 

10 ‘‘(c) ADMINISTRATION.—The program shall be car11 ried out by the Secretary, acting through the Adminis12 trator of the Maritime Administration. 

13 ‘‘(d) DUTIES.—The Secretary shall— 

14 ‘‘(1) allocate, on an annual basis, the award of 

15 loans under the program based on the needs of stu16 dents; 

17 ‘‘(2) develop an application process and eligi18 bility criteria for the award of loans under the pro19 gram; 

20 ‘‘(3) approve applications for loans under the 

21 program based on the eligibility criteria and alloca22 tions made under paragraph (1); and 

23 ‘‘(4) designate maritime training institutions at 

24 which loans made under the program may be used. 


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1 ‘‘(e) DESIGNATION OF MARITIME TRAINING INSTITU2 TIONS.— 

3 ‘‘(1) IN GENERAL.—In designating maritime 

4 training institutions under subsection (d)(4), the 

5 Secretary— 

6 ‘‘(A) may include Federal, State, and com7 mercial training institutions and nonprofit 

8 training organizations, including centers of ex9 cellence designated under section 51706; 

10 ‘‘(B) shall designate institutions based on 

11 geographic diversity and scope of classes of12 fered; 

13 ‘‘(C) shall ensure that designated institu14 tions have the ability to administer the pro15 gram; and 

16 ‘‘(D) shall ensure that designated institu17 tions meet requirements to provide training in18 struction for appropriate Coast Guard-approved 

19 training instruction. 

20 ‘‘(2) EXCLUSIONS.—The Secretary— 

21 ‘‘(A) may exclude from participation in the 

22 program a maritime training institution that 

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1 gram reviews conducted during the 5 calendar 

2 years immediately preceding the present year; 

3 ‘‘(B) shall exclude from participation in 

4 the program a maritime training institution 

5 that has delinquent or outstanding debts to the 

6 United States, unless such debts are being re7 paid under or in accordance with a repayment 

8 arrangement satisfactory to the United States, 

9 or the Secretary in the Secretary’s discretion 

10 determines that the existence or amount of any 

11 such debts has not been finally determined by 

12 the appropriate Federal agency; 

13 ‘‘(C) may exclude from participation in the 

14 program a maritime training institution that 

15 has failed to comply with quality standards es16 tablished by the Department of Labor, the 

17 Coast Guard, or a State; and 

18 ‘‘(D) may establish such other criteria as 

19 the Secretary determines will protect the finan20 cial interest of the United States and promote 

21 the purposes of this section. 

22 ‘‘(f) STATE MARITIME ACADEMIES.— 

23 ‘‘(1) USE OF FUNDS FOR LOANS TO STUDENTS

24 ATTENDING STATE MARITIME ACADEMIES.—The 

25 Secretary may obligate not more than 50 percent of 


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1 the amounts appropriated to carry out this section 

2 for a fiscal year for loans to undergraduate students 

3 attending State maritime academies receiving assist4 ance under chapter 515 of this title. 

5 ‘‘(2) ACADEMIC STANDARDS FOR STUDENTS.— 

6 Students at State maritime academies receiving 

7 loans under the program shall maintain satisfactory 

8 progress toward the completion of their course of 

9 study as evidenced by the maintenance of a cumu10 lative C average, or its equivalent, or academic 

11 standing consistent with the requirements for grad12 uation, as determined by the institution. 

13 ‘‘(g) LOAN AMOUNTS AND USE.— 

14 ‘‘(1) MAXIMUM AMOUNTS.— 

15 ‘‘(A) IN GENERAL.—The Secretary may 

16 not make loans to a student under the program 

17 in an amount that exceeds $30,000 in a cal18 endar year or $120,000 in the aggregate. 

19 ‘‘(B) ADJUSTMENT FOR INFLATION.—The 

20 Secretary shall, every 5 years for the life of a 

21 loan under the program, adjust the maximum 

22 amounts described in subparagraph (A) in ac23 cordance with any change in the Consumer 

24 Price Index for All Urban Consumers published 

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1 partment of Labor that occurs since the pre2 vious adjustment. 

3 ‘‘(2) USE OF LOAN PROCEEDS.—A student who 

4 receives a loan under the program may use the pro5 ceeds of the loan only for postsecondary expenses in6 curred at an institution designated by the Secretary 

7 under subsection (d)(4) for books, tuition, required 

8 fees, travel to and from training facilities, and room 

9 and board. 

10 ‘‘(h) STUDENT ELIGIBILITY.— 

11 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

12 to be eligible to receive a loan under the program, 

13 a student shall— 

14 ‘‘(A) be eligible to hold a license or mer15 chant mariner document issued by the Coast 

16 Guard; 

17 ‘‘(B) provide to the Secretary such infor18 mation as the Secretary may require, including 

19 all current Coast Guard documents, certifi20 cations, proof of United States citizenship or 

21 permanent legal status, and a statement of in22 tent to enter a maritime career; 

23 ‘‘(C) meet the enrollment requirements of 

24 a maritime training institution designated by 

25 the Secretary under subsection (d)(4); and 


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1 ‘‘(D) sign an agreement to— 

2 ‘‘(i) complete a course of instruction 

3 at such a maritime training institution; 

4 and 

5 ‘‘(ii) maintain a license or document 

6 and work under the authority of the license 

7 or document and any associated endorse8 ments for at least 18 months following the 

9 date of graduation from the maritime pro10 gram for which the loan proceeds will be 

11 used. 

12 ‘‘(2) LIMITATION.—An undergraduate student 

13 at the United States Merchant Marine Academy 

14 shall not be eligible for a loan under the program. 

15 ‘‘(i) ADMINISTRATION OF LOANS.— 

16 ‘‘(1) CONTENTS OF LOAN AGREEMENTS.—Any 

17 agreement between the Secretary and a student bor18 rower for a loan under the program shall— 

19 ‘‘(A) be evidenced by a note or other writ20 ten instrument that provides for the repayment 

21 of the principal amount of the loan and any 

22 origination fee, together with interest thereon, 

23 in equal installments (or, if the student bor24 rower so requests, in graduated periodic install25 ments determined in accordance with such 


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1 schedules as may be approved by the Secretary) 

2 payable quarterly, bimonthly, or monthly, at the 

3 option of the student borrower, over a period 

4 beginning 9 months from the date on which the 

5 student borrower completes study or discon6 tinues attendance at the maritime program for 

7 which the loans are used at the institution ap8 proved by the Secretary and not exceeding 10 

9 years; 

10 ‘‘(B) include provision for acceleration of 

11 repayment of the whole, or any part, of such 

12 loan, at the option of the student borrower; 

13 ‘‘(C) provide the loan without security and 

14 without endorsement; 

15 ‘‘(D) provide that the liability to repay the 

16 loan shall be canceled upon the death of the 

17 student borrower, or if the student borrower be18 comes permanently and totally disabled, as de19 termined in accordance with regulations to be 

20 issued by the Secretary; 

21 ‘‘(E) contain a notice of the system of dis22 closure of information concerning default on 

23 such loan to credit bureau organizations; and 

24 ‘‘(F) include provisions for deferral of re25 payment, as determined by the Secretary. 


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1 ‘‘(2) RATE OF INTEREST.—A student borrower 

2 who receives a loan under the program shall be obli3 gated to repay the loan amount to the Secretary, to4 gether with interest beginning in the period referred 

5 to in paragraph (1)(A), at a rate of interest deter6 mined by the Secretary, in consultation with the 

7 Secretary of Education, in accordance with section 

8 455 of the Higher Education Act of 1965 (20 

9 U.S.C. 1087e). 

10 ‘‘(3) DISCLOSURE REQUIRED PRIOR TO DIS11 BURSEMENT.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall at 

13 or prior to the time the Secretary makes a loan 

14 to a student borrower under the program, pro15 vide thorough and adequate loan information on 

16 such loan to the student borrower. The disclo17 sures required by this paragraph may be made 

18 as part of the written application material pro19 vided to the student borrower, as part of the 

20 promissory note evidencing the loan, or on a 

21 separate written form provided to the student 

22 borrower. 

23 ‘‘(B) CONTENTS.—The disclosures shall 

24 include— 


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1 ‘‘(i) the address to which communica2 tions and payments should be sent; 

3 ‘‘(ii) the principal amount of the loan; 

4 ‘‘(iii) the amount of any charges col5 lected at or prior to the disbursal of the 

6 loan and whether such charges are to be 

7 deducted from the proceeds of the loan or 

8 paid separately by the student borrower; 

9 ‘‘(iv) the stated interest rate on the 

10 loan; 

11 ‘‘(v) the yearly and cumulative max12 imum amounts that may be borrowed; 

13 ‘‘(vi) an explanation of when repay14 ment of the loan will be required and when 

15 the student borrower will be obligated to 

16 pay interest that accrues on the loan; 

17 ‘‘(vii) a statement as to the minimum 

18 and maximum repayment term that the 

19 Secretary may impose, and the minimum 

20 monthly payment required by law and a 

21 description of any penalty imposed as a 

22 consequence of default, such as liability for 

23 expenses reasonably incurred in attempts 

24 by the Secretary to collect on a loan; 


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1 ‘‘(viii) a statement of the total cumu2 lative balance, including the loan applied 

3 for, owed by the student borrower to the 

4 Secretary, and an estimate of the projected 

5 monthly payment, given such cumulative 

6 balance; 

7 ‘‘(ix) an explanation of any special op8 tions the student borrower may have for 

9 loan consolidation or other refinancing of 

10 the loan; 

11 ‘‘(x) a statement that the student bor12 rower has the right to prepay all or part 

13 of the loan, at any time, without penalty; 

14 ‘‘(xi) a statement summarizing cir15 cumstances in which repayment of the loan 

16 or interest that accrues on the loan may be 

17 deferred, and a brief notice of the program 

18 for repayment of loans, on the basis of 

19 military service, pursuant to the Depart20 ment of Defense educational loan repay21 ment program (10 U.S.C. 16302); 

22 ‘‘(xii) a definition of default and the 

23 consequences to the student borrower if 

24 the student borrower defaults, together 

25 with a statement that the disbursement of, 


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1 and the default on, a loan under this part 

2 shall be reported to a credit bureau or 

3 credit reporting agency; 

4 ‘‘(xiii) to the extent practicable, the 

5 effect of accepting the loan on the eligi6 bility of the student borrower for other 

7 forms of student assistance; and 

8 ‘‘(xiv) an explanation of any cost the 

9 student borrower may incur in the making 

10 or collection of the loan. 

11 ‘‘(C) INFORMATION TO BE PROVIDED

12 WITHOUT COST.—The information provided 

13 under this paragraph shall be available to the 

14 Secretary without cost to the student borrower. 

15 ‘‘(4) REPAYMENT AFTER DEFAULT.—The Sec16 retary may require any student borrower who has 

17 defaulted on a loan made under the program to— 

18 ‘‘(A) pay all reasonable collection costs as19 sociated with such loan; and 

20 ‘‘(B) repay the loan pursuant to an income 

21 contingent repayment plan. 

22 ‘‘(5) AUTHORIZATION TO REDUCE RATES AND

23 FEES.—Notwithstanding any other provision of this 

24 section, the Secretary may prescribe by regulation 

25 any reductions in the interest rate or origination fee 


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1 paid by a student borrower of a loan made under the 

2 program as the Secretary determines appropriate to 

3 encourage ontime repayment of the loan. Such re4 ductions may be offered only if the Secretary deter5 mines the reductions are cost neutral and in the best 

6 financial interest of the United States. 

7 ‘‘(6) COLLECTION OF REPAYMENTS.—The Sec8 retary shall collect repayments made under the pro9 gram and exercise due diligence in such collection, 

10 including maintenance of all necessary records to en11 sure that maximum repayments are made. Collection 

12 and servicing of repayments under the program shall 

13 be pursued to the full extent of the law, including 

14 wage garnishment if necessary. The Secretary of the 

15 Department in which the Coast Guard is operating 

16 shall provide the Secretary of Transportation with 

17 any information regarding a merchant mariner that 

18 may aid in the collection of repayments under this 

19 section. 

20 ‘‘(7) REPAYMENT SCHEDULE.—A student bor21 rower who receives a loan under the program shall 

22 repay the loan quarterly, bimonthly, or monthly, at 

23 the option of the student borrower, over a period be24 ginning 9 months from the date the student bor25 rower completes study or discontinues attendance at 


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1 the maritime program for which the loan proceeds 

2 are used and ending not more than 10 years after 

3 the date repayment begins. Provisions for deferral of 

4 repayment shall be determined by the Secretary. 

5 ‘‘(8) CONTRACTS FOR SERVICING AND COLLEC6 TION OF LOANS.—The Secretary may— 

7 ‘‘(A) enter into a contract or other ar8 rangement with State or nonprofit agencies 

9 and, on a competitive basis, with collection 

10 agencies for servicing and collection of loans 

11 under this section; and 

12 ‘‘(B) conduct litigation necessary to carry 

13 out this section. 

14 ‘‘(j) REVOLVING LOAN FUND.— 

15 ‘‘(1) ESTABLISHMENT.—The Secretary shall es16 tablish a revolving loan fund consisting of amounts 

17 deposited in the fund under paragraph (2). 

18 ‘‘(2) DEPOSITS.—The Secretary shall deposit in 

19 the fund— 

20 ‘‘(A) receipts from the payment of prin21 cipal and interest on loans made under the pro22 gram; and 

23 ‘‘(B) any other monies paid to the Sec24 retary by or on behalf of individuals under the 

25 program. 


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1 ‘‘(3) AVAILABILITY OF AMOUNTS.—Amounts in 

2 the fund shall be available to the Secretary, without 

3 further appropriation— 

4 ‘‘(A) to cover the administrative costs of 

5 the program, including the maintenance of 

6 records and making collections under this sec7 tion; and 

8 ‘‘(B) to the extent that amounts remain 

9 available after paying such administrative costs, 

10 to make loans under the program. 

11 ‘‘(4) MAINTENANCE OF RECORDS.—The Sec12 retary shall maintain accurate records of the admin13 istrative costs referred to in paragraph (3)(A). 

14 ‘‘(k) ANNUAL REPORT.—The Secretary, on an an15 nual basis, shall submit to the Committee on Transpor16 tation and Infrastructure of the House of Representatives 

17 and the Committee on Commerce, Science, and Transpor18 tation of the Senate a report on the program, including— 

19 ‘‘(1) the total amount of loans made under the 

20 program in the preceding year; 

21 ‘‘(2) the number of students receiving loans 

22 under the program in the preceding year; and 

23 ‘‘(3) the total amount of loans made under pro24 gram that are in default as of the date of the report. 


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1 ‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated for each of fiscal years 

3 2021 through 2026— 

4 ‘‘(1) $10,000,000 for making loans under the 

5 program; and 

6 ‘‘(2) $1,000,000 for administrative expenses of 

7 the Secretary in carrying out the program. 

8 ‘‘§ 51708. Merchant mariner recruitment, training, 

9 and retention program 

10 ‘‘(a) STRATEGIC PLAN.— 

11 ‘‘(1) IN GENERAL.—Not later than one year 

12 after the date of enactment of this section, and at 

13 least once every 3 years thereafter, the Secretary of 

14 Transportation, acting through the Administrator of 

15 the Maritime Administration, shall publish in the 

16 Federal Register a plan to recruit, train, and retain 

17 merchant mariners for the 5-year period following 

18 the date of publication of the most recently pub19 lished plan under this paragraph. 

20 ‘‘(2) CONTENTS.—A plan published under para21 graph (1) shall contain— 

22 ‘‘(A) a strategy to address merchant mar23 iner recruitment, training, and retention issues 

24 in the United States; and 


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1 ‘‘(B) demonstration and research priorities 

2 concerning merchant mariner recruitment, 

3 training, and retention. 

4 ‘‘(3) FACTORS.—In developing a plan under 

5 paragraph (1), the Secretary shall take into account, 

6 at a minimum— 

7 ‘‘(A) the availability of existing research 

8 (as of the date of publication of the plan); and 

9 ‘‘(B) the need to ensure results that have 

10 broad applicability. 

11 ‘‘(4) CONSULTATION.—In developing a plan 

12 under paragraph (1), the Secretary shall consult 

13 with representatives of the maritime industry, labor 

14 organizations, including the Commander of the 

15 Transportation Command and the Commander of 

16 the Military Sealift Command, and other govern17 mental entities and persons with an interest in the 

18 maritime industry. 

19 ‘‘(5) TRANSMITTAL TO CONGRESS.—The Sec20 retary shall transmit copies of a plan published 

21 under paragraph (1) to the Committee on Transpor22 tation and Infrastructure of the House of Represent23 atives and the Committee on Commerce, Science, 

24 and Transportation of the Senate. 

25 ‘‘(b) DEMONSTRATION AND RESEARCH PROJECTS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary may award 

2 grants to, or enter into contracts or cooperative 

3 agreements with, a maritime training institutions 

4 designated under section 51607(e) or a consortium 

5 such institutions, to carry out demonstration and re6 search projects that implement the priorities identi7 fied in the plan prepared under subsection (a)(1), 

8 for the purpose of recruiting, training, or retaining 

9 United States merchant mariners. 

10 ‘‘(2) COMPETITIVE AWARDS.—Grants shall be 

11 awarded. and contracts and cooperative agreements 

12 shall be entered into, under this subsection on a 

13 competitive basis under guidelines and requirements 

14 to be established by the Secretary. 

15 ‘‘(3) APPLICATIONS.—To be eligible to receive a 

16 grant or enter into a contract or cooperative agree17 ment under this section for a project under this sub18 section, a maritime training institution shall submit 

19 to the Secretary a proposal that includes, at a min20 imum— 

21 ‘‘(A) a description of the project; and 

22 ‘‘(B) a method for evaluating the effective23 ness of the project. 


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1 ‘‘(4) ELIGIBLE PROJECTS.—Projects eligible for 

2 grants, contracts, and cooperative agreements under 

3 this subsection— 

4 ‘‘(A) shall carry out the demonstration and 

5 research priorities included in the plan pub6 lished under subsection (a)(1); and 

7 ‘‘(B) may— 

8 ‘‘(i) provide training to upgrade the 

9 skills of United States merchant mariners, 

10 including training to acquire a Standards 

11 of Training, Certification and 

12 Watchkeeping endorsement under sub13 chapter B of chapter I of title 46, Code of 

14 Federal Regulations; 

15 ‘‘(ii) promote the use of distance 

16 learning that enables students to take 

17 courses through the use of teleconfer18 encing, the Internet, and other media tech19 nology; 

20 ‘‘(iii) assist in providing services to 

21 address merchant mariner recruitment and 

22 training of youth residing in targeted high 

23 poverty areas within empowerment zones 

24 and enterprise communities; 


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1 ‘‘(iv) implement partnerships with na2 tional and regional organizations with spe3 cial expertise in developing, organizing, 

4 and administering merchant mariner re5 cruitment and training services; 

6 ‘‘(v) design, develop, and test an array 

7 of approaches to providing recruitment, 

8 training, or retention services, including to 

9 one or more targeted populations; 

10 ‘‘(vi) in conjunction with employers, 

11 organized labor, other groups (such as 

12 community coalitions), and Federal, State, 

13 or local agencies, design, develop, and test 

14 various training approaches in order to de15 termine effective practices; or 

16 ‘‘(vii) assist in the development and 

17 replication of effective service delivery 

18 strategies for the national maritime indus19 try as a whole. 

20 ‘‘§ 51709. Authorization of appropriations 

21 ‘‘There are authorized to be appropriated for each of 

22 fiscal years 2021 through 2026— 

23 ‘‘(1) $10,000,000 for making grants and enter24 ing into cooperative agreements under sections 

25 51707 and 51708; and 


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1 ‘‘(2) $1,000,000 for administrative expenses of 

2 the Secretary in carrying out such sections.’’. 

3 (b) CONFORMING AMENDMENT.—The analysis for 

4 such chapter is amended by adding at the end the fol5 lowing: 

‘‘51707. Merchant mariner career training loan program. 

‘‘51708. Merchant mariner recruitment, training, and retention program. 

‘‘51709. Authorization of appropriations.’’. 

Æ 


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