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103D CONGRESS

2D SESSION H. R. 3821

To promote construction and operation of passenger vessels in the United

States, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 9, 1994

Mrs. UNSOELD (for herself, Mr. STUDDS, Mr. LIPINSKI, Mr. DICKS, Ms.

CANTWELL, Ms. DUNN, Mr. KREIDLER, Mr. SWIFT, Mr. MANTON, Mr.

BORSKI, Mr. HOYER, Mr. CUNNINGHAM, and Mr. JOHNSON of South Dakota) introduced the following bill; which was referred jointly to the Committees on Merchant Marine and Fisheries and Natural Resources

A BILL

To promote construction and operation of passenger vessels

in the United States, 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 ‘‘United States Pas5 senger Vessel Development Act’’.

6 SEC. 2. PURPOSE.

7 The purpose of this Act is to promote construction

8 and operation of United States flag passenger vessels in

9 the United States.
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1 SEC. 3. INTERIM COASTWISE PASSENGER TRADE ENDORSE2 MENT.

3 (a) ENDORSEMENT AUTHORIZED.—Chapter 121 of

4 title 46, United States Code, is amended by inserting after

5 section 12112 the following new section:

6 ‘‘§ 12113. Interim coastwise passenger trade endorse7 ment

8 ‘‘(a) Before December 31, 2000, a certificate of docu9 mentation for a passenger vessel may be endorsed with

10 an interim coastwise passenger trade endorsement, if the

11 vessel is—

12 ‘‘(1) eligible for documentation under section

13 12102;

14 ‘‘(2) owned by, or demise chartered for at least

15 18 months to, a citizen of the United States for pur16 poses of issuing a certificate of documentation with

17 an interim coastwise passenger trade endorsement

18 under section 2(e) of the Shipping Act, 1916 (46

19 App. U.S.C. 802(e));

20 ‘‘(3) at least 250 gross tons (as measured

21 under chapter 143 of this title) and has at least 175

22 berths; and

23 ‘‘(4) not a ferry.

24 ‘‘(b) As a condition of issuing an interim coastwise

25 passenger trade endorsement for a vessel, the Secretary

26 shall require the owner or charterer of the vessel to enter
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1 into one or more contracts for the construction in the

2 United States of one or more vessels having a total berth3 ing capacity that is at least 80 percent of the capacity

4 of the vessel for which the endorsement is issued.

5 ‘‘(c) A vessel with a certificate of documentation with

6 an interim coastwise passenger trade endorsement may be

7 employed in the coastwise trade in the carriage of pas8 sengers.

9 ‘‘(d) On termination of a demise charter required

10 under subsection (a)(2)(B) for a vessel, an interim coast11 wise passenger trade endorsement for the vessel may be

12 continued for a period not to exceed 6 months on any

13 terms and conditions that the Secretary of Transportation

14 may prescribe.

15 ‘‘(e)(1) An interim coastwise passenger trade en16 dorsement issued for a vessel under subsection (a) ex17 pires—

18 ‘‘(A) on the date that is 12 months after the

19 date of issuance of the endorsement, if the owner or

20 demise charter of the vessel fails to submit to the

21 Secretary before the end of that 12-month period a

22 letter that—

23 ‘‘(i) states the interest of the owner or de24 mise charter, respectively, and a representative

25 of a shipyard in the United States to enter into
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1 a contract for the construction in the shipyard

2 of at least one passenger vessel that has a total

3 berthing capacity that is at least equivalent to

4 80 percent of the berthing capacity of the vessel

5 for which the endorsement is issued; and

6 ‘‘(ii) is signed by the owner or demise

7 charterer, respectively, and the representative;

8 ‘‘(B) on the date that is 24 months after the

9 date of issuance of the endorsement, if the owner or

10 demise charterer of the vessel does not enter into a

11 contract before the end of that 24-month period for

12 the construction in the United States of one or more

13 passenger vessels described in subparagraph (A)(i);

14 ‘‘(C) on the date that is 3 years after the date

15 of issuance of the endorsement, if construction of

16 such a vessel under the contract is not begun before

17 the end of that 3-year period; and

18 ‘‘(D) on the date that is 180 days after the

19 date of delivery of a vessel for which construction is

20 completed pursuant to the contract.

21 ‘‘(2) The Secretary may extend the period applicable

22 under paragraph (1)(B) or (C), or both, for not more than

23 6 months.

24 ‘‘(f) An interim coastwise passenger trade endorse25 ment for a vessel shall prohibit the operation of the vessel
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1 in any trade that is served by another passenger vessel

2 of at least 250 gross tons and having at least 175 berths

3 that is documented under section 12106 of this title, un4 less the owner or charterer of the vessel so operated is

5 also the owner of the other vessel having the endorsement.

6 ‘‘(g) Except as provided in this section, section

7 2113(b) of this title, or section 2(e) or 9(e) of the Ship8 ping Act, 1916, a vessel with an interim coastwise pas9 senger trade endorsement shall comply with all require10 ments applicable to a comparable passenger vessel that is

11 otherwise documented under the laws of the United

12 States.’’.

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

14 at the beginning of chapter 121 of title 46, United States

15 Code, is amended by inserting after the item relating to

16 section 12112 the following:

‘‘12113. Interim coastwise trade endorsement.’’.

17 (c) NOTICE TO SECRETARY OF REFLAGGING.—Sec18 tion 9 of the Shipping Act, 1916 (46 App. U.S.C. 808)

19 is amended—

20 (1) in subsection (c) by inserting ‘‘subsection

21 (e),’’ after ‘‘Except as provided in’’; and

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

23 ‘‘(e) Notwithstanding subsection (c), a person may

24 place under a foreign registry or operate under the author25 ity of a foreign country, without approval of the Secretary
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1 of Transportation, any vessel with an interim coastwise

2 passenger trade endorsement under section 12113 of title

3 46, United States Code, if the person notifies the Sec4 retary of that action—

5 ‘‘(1) before the 60-day period ending on the

6 date that action is taken; and

7 ‘‘(2) within 12 months after—

8 ‘‘(A) the issuance of the interim coastwise

9 passenger trade endorsement, or

10 ‘‘(B) the beginning of construction of the

11 replacement vessels required for that issuance

12 under section 12113 of title 46, United States

13 Code.’’.

14 SEC. 4. SOLAS CONSTRUCTION STANDARDS.

15 Section 2113 of title 46, United States Code, is

16 amended—

17 (1) by inserting ‘‘(a)’’ before ‘‘If’’; and

18 (2) by adding at the end the following new sub19 section:

20 ‘‘(b) A documented vessel with an interim coastwise

21 passenger trade endorsement—

22 ‘‘(1) is deemed to comply with parts B, C, and

23 J of this title if the vessel meets the standards for

24 passenger vessel construction for safety of life at sea

25 issued under the International Maritime Organiza-
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1 tion convention to which the United States is a

2 party; and

3 ‘‘(2) shall be issued by the Secretary the appro4 priate inspection, load line, and tonnage certificates

5 if that vessel meets those standards.’’.

6 SEC. 5. CITIZENSHIP FOR PURPOSES OF DOCUMENTATION.

7 Section 2 of the Shipping Act, 1916 (46 App. U.S.C.

8 802), is amended by adding at the end the following:

9 ‘‘(e) For purposes of issuing a certificate of docu10 mentation with an interim coastwise passenger trade en11 dorsement or a coastwise endorsement for transporting

12 passengers in the coastwise trade under chapter 121 of

13 title 46, United States Code, the controlling interest in

14 a corporation is deemed to be owned or demise chartered

15 by citizens of the United States if at least 51 percent of

16 its stock is vested in citizens of the United States free

17 from any trust or fiduciary obligation in favor of any per18 son not a citizen of the United States.’’.

19 SEC. 6. AMENDMENT TO TITLE XI OF THE MERCHANT MA20 RINE ACT, 1936.

21 Section 1101(b) of the Merchant Marine Act, 1936

22 (46 App. U.S.C. 1271(b)) is amended by striking ‘‘pas23 senger cargo’’ and inserting ‘‘passenger, cargo,’’.
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1 SEC. 7. PERMITS FOR VESSELS ENTERING UNITS OF NA2 TIONAL PARK SYSTEM.

3 (a) PRIORITY.—Notwithstanding any other provision

4 of law, the Secretary of Commerce may not permit a per5 son to operate a vessel in any unit of the National Park

6 System except in accordance with the following priority:

7 (1) First, any person that will operate a vessel

8 that is documented under the laws of, and the home

9 port of which is located in, the United States.

10 (2) Second, any person that will operate a ves11 sel—

12 (A) that is documented under the laws of

13 a foreign country, and

14 (B) which on the date of the enactment of

15 this Act is permitted to be so operated.

16 (3) Third, any person that will operate a vessel

17 other than a vessel described in paragraph (1) or

18 (2).

19 (b) REVOCATION OF PERMITS FOR FOREIGN-DOCU20 MENTED VESSELS.—The Secretary of Commerce shall re21 voke permission granted by the Secretary for the operation

22 of a vessel documented under the laws of a foreign country

23 in a unit of the National Park System, if—

24 (1) a person requests permission to operate a

25 vessel documented under the laws of the United

26 States in that unit;
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1 (2) the permission may not be granted because

2 of a limit on the number of permits that may be is3 sued for that operation.

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