Union Calendar No. 344

103D CONGRESS

2D SESSION H. R. 4003

[Report No. 103–544, Parts I and II]

A BILL

To authorize appropriations for fiscal year 1995 for

poses.States-flag merchant marine, and for other purAct, 1936, as amended, to revitalize the UnitedTransportation, to amend the Merchant Marinecertain maritime programs of the Department of

JULY 29, 1994

Reported from the Committee on Ways and Means with

to be printedWhole House on the State of the Union and orderedan amendment, committed to the Committee of the
IB

Union Calendar No. 344

103D CONGRESS

2D SESSION H. R. 4003

[Report No. 103–544, Parts I and II]

To authorize appropriations for fiscal year 1995 for certain maritime programs of the Department of Transportation, to amend the Merchant

Marine Act, 1936, as amended, to revitalize the United States-flag

merchant marine, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 10, 1994

Mr. STUDDS (for himself, Mr. FIELDS of Texas, Mr. LIPINSKI, and Mr. MANTON) (all by request) introduced the following bill; which was referred to

the Committee on Merchant Marine and Fisheries

JUNE 13, 1994

Reported with an amendment, referred to the Committee on the Ways and

Means for a period ending not later than July 15, 1994, for consideration

of such provisions contained in the bill and amendment as fall within the

jurisdiction of that committee pursuant to clause 1(v), rule X

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

JULY 12, 1994

Referral to the Committee on the Ways and Means extended for a period

ending not later than July 22, 1994

JULY 21, 1994

Referral to the Committee on the Ways and Means extended for a period

ending not later than July 28, 1994

JULY 28, 1994

Referral to the Committee on the Ways and Means extended for a period

ending not later than July 29, 1994

JULY 29, 1994

Additional sponsor: Mr. DARDEN
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JULY 29, 1994

Reported from the Committee on the Ways and Means with an amendment,

committed to the Committee of the Whole House on the State of the

Union and ordered to be printed

[Omit the part in black brackets and insert the part in boldface roman]

[For text of introduced bill, see copy of bill as introduced on March 10, 1994]

A BILL

To authorize appropriations for fiscal year 1995 for certain

maritime programs of the Department of Transportation,

to amend the Merchant Marine Act, 1936, as amended,

to revitalize the United States-flag merchant marine, 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 ‘‘Maritime Administra5 tion and Promotional Reform Act of 1994’’.

6 TITLE I—MARITIME

7 ADMINISTRATION

8 SEC. 101. SHORT TITLE.

9 This title may be cited as the ‘‘Maritime Administra10 tion Authorization Act for Fiscal Year 1995’’.

11 SEC. 102. AUTHORIZATIONS FOR THE MARITIME ADMINIS12 TRATION.

13 (a) AUTHORIZATIONS.—For fiscal year 1995, there are

14 authorized to be appropriated to the Secretary of Transpor-
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1 tation for use for the Maritime Administration the follow2 ing amounts:

3 (1) Any amounts necessary to liquidate obliga4 tions under operating-differential subsidy contracts

5 for the fiscal year 1995 portion of the total contract

6 authority.

7 (2) $43,076,000 for expenses related to man8 power, education, and training, including—

9 (A) $30,701,000 for maritime training at

10 the United States Merchant Marine Academy at

11 Kings Point, New York;

12 (B) $10,525,000 for assistance to the State

13 maritime academies (including reimbursement of

14 fuel costs associated with the operation of train15 ing vessels), of which $1,200,000 may be used for

16 training simulators for the State maritime acad17 emies; and

18 (C) $1,850,000 for manpower and addi19 tional training.

20 (3) $35,124,000 for operating programs, includ21 ing—

22 (A) $20,866,000 for general administration;

23 (B) $9,216,000 for development and use of

24 water transportation systems;
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1 (C) $3,627,000 for research, technology, and

2 analysis; and

3 (D) $1,415,000 for national security sup4 port capabilities.

5 (4)(A) $248,800,000 for the National Defense Re6 serve Fleet (including the Ready Reserve Force com7 ponent of that fleet), including—

8 (i) $228,448,000 for maintenance and oper9 ations in support of the Ready Reserve Force;

10 (ii) $6,352,000 for maintenance and oper11 ations in support of the National Defense Re12 serve Fleet;

13 (iii) $4,000,000 for facilities; and

14 (iv) $10,000,000 to repair and convert the

15 vessel T–AGS 39 MAURY for use as a training

16 vessel at the California Maritime Academy.

17 (B) As a condition of making any payment from

18 amounts appropriated under subparagraph (A)(iv),

19 the Secretary shall require that the California Mari20 time Academy agree to make the T–AGS 39 MAURY

21 available to the Ready Reserve Force of the National

22 Defense Reserve Fleet upon request by the Secretary

23 and the Secretary of Defense.

24 (5) $4,000,000 to pay administrative costs relat25 ed to new loan guarantee commitments under title XI
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1 of the Merchant Marine Act, 1936 (46 App. U.S.C.

2 1271 et seq.), relating to Federal ship mortgage insur3 ance.

4 (6) $50,000,000 for costs (as that term is defined

5 in section 502 of the Federal Credit Reform Act of

6 1990 (2 U.S.C. 661a)) of new loan guarantee commit7 ments under title XI of the Merchant Marine Act,

8 1936 (46 App. U.S.C. 1271 et seq.).

9 (b) USE OF PROCEEDS OF SALES.—Notwithstanding

10 any other provision of law, the Secretary of Transportation

11 may use proceeds derived from the sale or disposal of

12 National Defense Reserve Fleet vessels, that are currently

13 collected and retained by the Maritime Administration, as

14 follows:

15 (1) For facility and ship maintenance, mod16 ernization and repair, acquisition of equipment,

17 training simulators, and fuel costs necessary to main18 tain training at the United States Merchant Marine

19 Academy and the State maritime academies.

20 (2) The Secretary shall pay from those proceeds

21 $4,000,000 to the California Maritime Academy to re22 pair and convert the vessel T–AGS 39 MAURY for

23 use as a training vessel at the Academy.
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1 (3) The Secretary shall pay from those proceeds

2 up to $50,000 to the Great Lakes Maritime Academy

3 for operation of the training vessel of the Academy.

4 SEC. 103. REIMBURSEMENT OF CERTAIN FEES BY STATE

5 MARITIME ACADEMIES.

6 (a) CONDITION OF ASSISTANCE.—Section 1304(d) of

7 the Merchant Marine Act, 1936 (46 App. U.S.C. 1295(d))

8 is amended by adding at the end the following:

9 ‘‘(3)(A) Subject to subparagraph (B), an agreement

10 under this subsection shall require a State maritime acad11 emy to reimburse each qualified individual for any fee or

12 charge for which the individual is liable to the United

13 States for—

14 ‘‘(i) the issuance of an entry level license under

15 chapter 71 of title 46, United States Code;

16 ‘‘(ii) the first issuance of a merchant mariner’s

17 document under chapter 73 of that title;

18 ‘‘(iii) an evaluation or examination for such a

19 license or merchant mariner’s document conducted be20 fore the end of the period described in subparagraph

21 (D)(ii); or

22 ‘‘(iv) an application for such a license, merchant

23 mariner’s document, evaluation, or examination.
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1 ‘‘(B) A State maritime academy shall reimburse quali2 fied individuals under subparagraph (A) to the extent

3 amounts are available under subparagraph (C).

4 ‘‘(C) In addition to annual payments under para5 graph (1)(A) and subject to the availability of appropria6 tions, the Secretary shall pay annually to each State mari7 time academy that enters into an agreement under para8 graph (1) amounts to reimburse qualified individuals under

9 subparagraph (A).

10 ‘‘(D) In this paragraph, the term ‘qualified individual’

11 means an individual who—

12 ‘‘(i) is attending or is a graduate of a State

13 maritime academy;

14 ‘‘(ii) fulfills the requirements for a license or

15 merchant mariner’s document described in subpara16 graph (A) not later than 3 months after the date the

17 individual graduates from a State maritime acad18 emy; and

19 ‘‘(iii) is liable for a fee or charge described in

20 subparagraph (A).’’.

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a) is effective October 1, 1994.

23 (c) AMENDMENT OF EXISTING AGREEMENTS.—As soon

24 as practicable after the date of the enactment of this Act,

25 the Secretary of Transportation shall amend agreements
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1 under section 1304(d) of the Merchant Marine Act, 1936

2 (46 App. U.S.C. 1295c(d)) pursuant to the amendment

3 made by subsection (a).

4 (d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—In

5 addition to amounts authorized to be appropriated in sec6 tion 102 for assistance to State maritime academies, there

7 is authorized to be appropriated $300,000 for fiscal year

8 1995 to reimburse qualified individuals pursuant to the

9 amendment made by subsection (a).

10 SEC. 104. TERMINATION OF CONDITION FOR STATE MARI11 TIME ACADEMY ASSISTANCE.

12 (a) IN GENERAL.—Section 1304(f)(1) of the Merchant

13 Marine Act, 1936 (46 App. U.S.C. 1295c(f)(1)) is amended

14 to read as if section 3 of the Act of October 13, 1989 (Public

15 Law 101–115; 103 Stat. 692), had not been enacted.

16 (b) EFFECTIVE DATE.—The amendment made by sub17 section (a) shall be effective October 13, 1989.

18 (c) CLERICAL AMENDMENTS.—

19 (1) Section 3 of the Act of October 13, 1989

20 (Public Law 101–115; 103 Stat. 692), is repealed.

21 (2) Section 706 of the Federal Maritime Com22 mission Authorization Act of 1990 (46 App. U.S.C.

23 1295c note) is repealed.
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1 SEC. 105. MAINTENANCE CONTRACTS FOR NATIONAL DE2 FENSE RESERVE FLEET VESSELS.

3 The Secretary of Transportation may enter into a con4 tract for the maintenance of the National Defense Reserve

5 Fleet, including the Ready Reserve Force, only for—

6 (1) the repair, activation, operation, berthing,

7 towing, or lay-up of a vessel;

8 (2) a vessel used by a State maritime academy;

9 or

10 (3) obtaining maintenance technical services

11 when—

12 (A) the technical expertise required for that

13 service is beyond the capabilities of the Fleet

14 staff or when the Fleet has insufficient personnel

15 resources to adequately maintain the Fleet; and

16 (B) the contract does not result in reducing

17 employment at the Fleet site.

18 SEC. 106. MAINTENANCE OF READY RESERVE FORCE VES19 SELS IN REDUCED OPERATING STATUS.

20 The Secretary shall, during fiscal year 1995, maintain

21 in a reduced operating status—

22 (1) at least 29 vessels in the Ready Reserve Force

23 component of the National Defense Reserve Fleet, or

24 (2) a lesser number of those vessels that the Sec25 retary determines to be practicable based on the ap-
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1 propriations available for that fiscal year for mainte2 nance of vessels in that force.

3 SEC. 107. VESSEL REPAIR AND MAINTENANCE PILOT PRO4 GRAM.

5 (a) IN GENERAL.—The Secretary of Transportation

6 shall conduct a pilot program to evaluate the feasibility of

7 using long-term contracts for the maintenance and repair

8 of outported vessels in the Ready Reserve Force to enhance

9 the readiness of those vessels. Under the pilot program, the

10 Secretary, subject to the availability of appropriations and

11 within 6 months after the date of the enactment of this Act,

12 shall award 9 contracts for this purpose.

13 (b) USE OF VARIOUS CONTRACTING ARRANGE14 MENTS.—In conducting a pilot program under this section,

15 the Secretary of Transportation shall use contracting ar16 rangements similar to those used by the Department of De17 fense for procuring maintenance and repair of its vessels.

18 (c) CONTRACT REQUIREMENTS.—Each contract with

19 a shipyard under this section shall—

20 (1) subject to subsection (d), provide for the pro21 curement from the shipyard of all repair and mainte22 nance (including activation, deactivation, and

23 drydocking) for 1 vessel in the Ready Reserve Force

24 that is outported in the geographical vicinity of the

25 shipyard; and
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1 (2) be effective for 3 years.

2 (d) LIMITATION OF WORK UNDER CONTRACTS.—A

3 contract under this section may not provide for the procure4 ment of operation or manning for a vessel that may be pro5 cured under another contract for the vessel to which section

6 11(d)(2) of the Merchant Ship Sales Act of 1946 (50 App.

7 U.S.C. 1774(d)(2)) applies.

8 (e) GEOGRAPHIC DISTRIBUTION.—The Secretary shall

9 seek to distribute contract awards under this section to ship10 yards located throughout the United States.

11 (f) REPORTS.—The Secretary shall submit to the

12 Congress—

13 (1) an interim report on the effectiveness of each

14 contract under this section in providing for economic

15 and efficient repair and maintenance of the vessel

16 covered by the contract, no later than 20 months after

17 the date of the enactment of this Act; and

18 (2) a final report on that effectiveness no later

19 than 6 months after the termination of all contracts

20 awarded pursuant to this section.

21 SEC. 108. AMENDMENTS RELATING TO COAST GUARD MARI22 TIME ACADEMY RESERVE TRAINING PRO23 GRAM.

24 (a) NAVAL RESERVE STATUS.—Section 1304(g)(2) of

25 the Merchant Marine Act, 1936 (46 App. U.S.C.
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1 1295c(g)(2)) is amended by inserting before the period the

2 following: ‘‘, unless the individual participates in the Coast

3 Guard Maritime Academy Reserve Training Program’’.

4 (b) RESERVE SERVICE OBLIGATION.—Section

5 1304(g)(3)(D) of the Merchant Marine Act, 1936 (46 App.

6 U.S.C. 1295c(g)(3)(D)) is amended by—

7 (1) inserting ‘‘(i)’’ after ‘‘commissioned officer’’;

8 (2) inserting ‘‘(except as provided in clause

9 (ii))’’ after ‘‘the United States Coast Guard Reserve’’;

10 and

11 (3) inserting before the semicolon at the end the

12 following: ‘‘; or (ii) in the United States Coast Guard

13 Reserve for such period following that date of gradua14 tion as may be established by the Secretary of the de15 partment in which the Coast Guard is operating, in

16 the case of an individual that participates in the

17 Coast Guard Maritime Academy Reserve Training

18 Program’’.

19 (c) PENALTIES FOR FAILURE TO FULFILL INCENTIVE

20 PAYMENT AGREEMENT.—Section 1304(g) of the Merchant

21 Marine Act, 1936 (46 App. U.S.C. 1295c(g)) is amended—

22 (1) in paragraph (4) by inserting ‘‘, except as

23 provided in paragraph (8),’’ after ‘‘such individual

24 may’’;
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1 (2) in paragraph (5) by inserting ‘‘, except as

2 provided in paragraph (8),’’ after ‘‘such individual

3 may’’; and

4 (3) by adding at the end the following:

5 ‘‘(8)(A) Paragraphs (4) and (5) shall not apply to a

6 failure to fulfill a part of an agreement, by an individual

7 who—

8 ‘‘(i) is enlisted in the United States Coast Guard

9 Reserve; and

10 ‘‘(ii) participates in the Coast Guard Maritime

11 Academy Reserve Training Program.

12 ‘‘(B) If the Secretary determines that an individual

13 described in subparagraph (A) has failed to fulfill any part

14 of the agreement (required by paragraph (1)) described in

15 paragraph (3), the individual may be ordered to active duty

16 in the Coast Guard to serve for a period of time determined

17 by the Commandant of the Coast Guard, not to exceed 2

18 years. In cases of hardship as determined by the Secretary,

19 the Secretary may waive this subparagraph.’’.

20 (d) COAST GUARD MARITIME ACADEMY RESERVE

21 TRAINING PROGRAM DEFINED.—Section 1304(g) of the

22 Merchant Marine Act, 1936 (46 App. U.S.C. 1295c(g)), as

23 amended by this section, is further amended by adding at

24 the end the following:
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1 ‘‘(9) In this subsection, the term ‘Coast Guard Mari2 time Academy Reserve Training Program’ means that pro3 gram established by the Commandant of the Coast Guard,

4 as in effect on the date of the enactment of the Maritime

5 Administration Authorization Act for Fiscal Year 1995.’’.

6 SEC. 109. MERCHANT SHIP SALES ACT OF 1946 AMENDMENT.

7 Section 11 of the Merchant Ship Sales Act of 1946 (50

8 App. U.S.C. 1744) is amended as follows:

9 (1) In subsection (b)(2) by striking ‘‘Secretary of

10 the Navy,’’ and inserting ‘‘Secretary of Defense,’’.

11 (2) By striking subsection (c) and redesignating

12 subsection (d) as subsection (c).

13 SEC. 110. REEMPLOYMENT RIGHTS FOR CERTAIN MER14 CHANT SEAMEN.

15 (a) IN GENERAL.—Title III of the Merchant Marine

16 Act, 1936 (46 App. U.S.C. 1131) is amended by inserting

17 after section 301 the following new section:

18 ‘‘SEC. 302. (a) An individual who is certified by the

19 Secretary of Transportation under subsection (c) shall be

20 entitled to reemployment rights and other benefits substan21 tially equivalent to the rights and benefits provided for by

22 chapter 43 of title 38, United States Code, for any member

23 of a Reserve component of the Armed Forces of the United

24 States who is ordered to active duty.
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1 ‘‘(b) An individual may submit an application for cer2 tification under subsection (c) to the Secretary of Transpor3 tation not later than 45 days after the date the individual

4 completes a period of employment described in subsection

5 (c)(1)(A) with respect to which the application is submitted.

6 ‘‘(c) Not later than 20 days after the date the Secretary

7 of Transportation receives from an individual an applica8 tion for certification under this subsection, the Secretary

9 shall—

10 ‘‘(1) determine whether or not the individual—

11 ‘‘(A) was employed in the activation or op12 eration of a vessel—

13 ‘‘(i) in the National Defense Reserve

14 Fleet maintained under section 11 of the

15 Merchant Ship Sales Act of 1946, in a pe16 riod in which that vessel was in use or

17 being activated for use under subsection (b)

18 of that section;

19 ‘‘(ii) that is requisitioned or purchased

20 under section 902 of this Act; or

21 ‘‘(iii) that is owned, chartered, or con22 trolled by the United States and used by the

23 United States for a war, armed conflict, na24 tional emergency, or maritime mobilization

25 need (including for training purposes or
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1 testing for readiness and suitability for mis2 sion performance); and

3 ‘‘(B) during the period of that employment,

4 possessed a valid license, certificate of registry,

5 or merchant mariner’s document issued under

6 chapter 71 or chapter 73 (as applicable) of title

7 46, United States Code; and

8 ‘‘(2) if the Secretary makes affirmative deter9 minations under paragraph (1) (A) and (B), certify

10 that individual under this subsection.

11 ‘‘(d) For purposes of reemployment rights and benefits

12 provided by this section, a certification under subsection (c)

13 shall be considered to be the equivalent of a certificate re14 ferred to in paragraph (1) of section 4301(a) of title 38,

15 United States Code.’’.

16 (b) APPLICATION.—The amendment made by sub17 section (a) shall apply to employment described in section

18 302(c)(1)(A) of the Merchant Marine Act, 1936, as amended

19 by subsection (a), occurring after August 2, 1990.

20 (c) EMPLOYMENT ENDING BEFORE ENACTMENT.—

21 Notwithstanding subsection (b) of section 302 of the Mer22 chant Marine Act, 1936, as amended by this Act, an indi23 vidual who, in the period beginning August 2, 1990, and

24 ending on the date of the enactment of this Act, completed

25 a period of employment described in subsection (c)(1)(A)
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1 of that section may submit an application for certification

2 under subsection (c) of that section with respect to that em3 ployment not later than 45 days after the date of the enact4 ment of this Act.

5 (d) REGULATION.—Not later than 120 days after the

6 date of the enactment of this Act, the Secretary of Transpor7 tation shall issue regulations implementing this section.

8 SEC. 111. PILOT PROGRAM ON SEALIFT TRAINING.

9 The Secretary of Transportation shall establish, subject

10 to the availability of appropriations in addition to the

11 amount authorized to be appropriated under section

12 102(a)(2), a 3-year period pilot program for Sealift Train13 ing at the Massachusetts Maritime Academy.

14 SEC. 112. MASSACHUSETTS CENTER FOR MARINE ENVIRON15 MENTAL PROTECTION.

16 The Secretary of Transportation shall pay, subject to

17 the availability of appropriations in addition to the

18 amount authorized to be appropriated under section 102,

19 $242,000 to the Massachusetts Maritime Academy for as20 sistance to the Massachusetts Center for Marine Environ21 mental Protection.
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1 SEC. 113. REPORT ON SEALIFT MANPOWER MOBILIZATION

2 PROGRAM.

3 Not later than 6 months after the date of the enactment

4 of this Act, the Secretary of Transportation shall submit

5 a report to the Congress on—

6 (1) the feasibility of conducting on Ready Re7 serve Force vessels a program to familiarize civilian

8 merchant mariners with the operation of those vessels,

9 for the purpose of facilitating national defense mobili10 zations involving those vessels; and

11 (2) the ability of the Coast Guard to track the

12 availability of qualified civilian merchant mariners

13 for service on those vessels during those mobilizations.

14 SEC. 114. VESSEL DOCUMENTATION.

15 Notwithstanding section 12108 of title 46, United

16 States Code, the Secretary of Transportation may issue a

17 certificate of documentation with appropriate endorsement

18 for employment in the fisheries for the vessel ABORIGINAL

19 (United States official number 942118).

20 SEC. 115. MARITIME POLICY REPORT.

21 (a) REPORT.—The Secretary of Transportation shall

22 transmit to the Congress a report setting forth the Depart23 ment of Transportation’s policies for the 5-year period

24 beginning October 1, 1994, with respect to—
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1 (1) fostering and maintaining a United States

2 merchant marine capable of meeting economic and

3 national security requirements;

4 (2) improving the vitality and competitiveness of

5 the United States merchant marine and the maritime

6 industrial base, including ship repairers, ship7 builders, ship manning, ship operators, and ship

8 suppliers;

9 (3) reversing the precipitous decrease in the

10 number of ships in the United States-flag fleet and

11 the Nation’s shipyard and repair capability;

12 (4) stabilizing and eventually increasing the

13 number of mariners available to crew United States

14 merchant vessels;

15 (5) achieving adequate manning of merchant

16 vessels for national security needs during a mobiliza17 tion;

18 (6) ensuring that sufficient civil maritime re19 sources will be available to meet defense deployment

20 and essential economic requirements in support of our

21 national security strategy;

22 (7) ensuring that the United States maintains

23 the capability to respond unilaterally to security

24 threats in geographic areas not covered by alliance
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1 commitments and otherwise meets sealift requirements

2 in the event of crisis or war;

3 (8) ensuring that international agreements and

4 practices do not place United States maritime indus5 tries at an unfair competitive disadvantage in world

6 markets;

7 (9) ensuring that Federal agencies promote,

8 through efficient application of laws and regulations,

9 the readiness of the United States merchant marine

10 and supporting industries; and

11 (10) any other relevant maritime policies.

12 (b) DATE OF TRANSMITTAL.—The report required

13 under subsection (a) shall be transmitted along with the

14 President’s budget submission, pursuant to section 1105 of

15 title 31, United States Code, for fiscal year 1996.

16 SEC. 116. TITLE XI LOAN GUARANTEES.

17 Title XI of the Merchant Marine Act, 1936 (46 App.

18 U.S.C. 1271 et seq.) is amended—

19 (1) in section 1101(b), by striking ‘‘owned by

20 citizens of the United States’’;

21 (2) in section 1104B(a), in the material preced22 ing paragraph (1), by striking ‘‘owned by citizens of

23 the United States’’; and

24 (3) in section 1110(a), by striking ‘‘owned by

25 citizens of the United States’’.
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1 SEC. 117. STUDY OF FEASIBILITY OF SHIP REPAIR DIF2 FERENTIAL ASSISTANCE PROGRAM.

3 (a) STUDY.—The Secretary of Transportation shall

4 conduct a study of the feasibility of establishing a program

5 of financial assistance to qualified ship repair yards, to

6 make those yards more competitive in international ship

7 repair markets by paying to those yards the difference be8 tween the cost of repairing vessels in those yards and the

9 cost of repairing vessels in foreign ship repair yards.

10 (b) REPORT.—The Secretary of Transportation shall

11 submit to the Congress by not later than 1 year after the

12 date of the enactment of this Act a report on the findings

13 and recommendations of the study required by subsection

14 (a).

15 (c) QUALIFIED SHIP REPAIR YARD DEFINED.—For

16 purposes of this section, the term ‘‘qualified ship repair

17 yard’’ has the meaning given that term in section 118(d).

18 SEC. 118. QUALIFIED SHIP REPAIR YARD MODERNIZATION

19 ASSISTANCE.

20 (a) GRANT AUTHORITY.—The Secretary of Transpor21 tation may use available amounts to make grants to quali22 fied ship repair yards to pay 75 percent of the cost of ac23 quiring advanced ship repair technology and modern ship

24 repair technology.

25 (b) CONDITION OF ASSISTANCE.—As a condition of re26 ceiving a grant under this section, the Secretary shall re-
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1 quire that a qualified ship repair yard provide, in cash

2 contributions, 25 percent of the costs incurred in acquiring

3 advanced ship repair technology and modern ship repair

4 technology with the grant.

5 (c) PRIORITY.—In making grants under this section,

6 the Secretary shall give priority to qualified ship repair

7 yards for which assistance under this section will permit

8 the performance of ship repairs more efficiently and in a

9 manner that is more competitive with foreign ship repair

10 yards.

11 (d) DEFINITIONS.—For purposes of this section:

12 (1) ADVANCED SHIP REPAIR TECHNOLOGY.—The

13 term ‘‘advanced ship repair technology’’ includes—

14 (A) numerically controlled machine tools,

15 robots, automated process control equipment,

16 computerized flexible manufacturing systems, as17 sociated computer software, and other technology

18 for improving ship repair and related industrial

19 production which advance the state-of-the-art;

20 and

21 (B) novel techniques and processes designed

22 to improve ship repair quality, productivity,

23 and practice, and to promote sustainable devel24 opment, including engineering design, quality

25 assurance, concurrent engineering, continuous
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1 process production technology, energy efficiency,

2 waste minimization, design for recyclability or

3 parts reuse, inventory management, upgraded

4 worker skills, and communications with cus5 tomers and suppliers.

6 (2) MODERN SHIP REPAIR TECHNOLOGY.—The

7 term ‘‘modern ship repair technology’’ means the best

8 available proven technology, techniques, and processes

9 appropriate to enhancing the productivity of ship re10 pair yards.

11 (3) QUALIFIED SHIP REPAIR YARD DEFINED.—

12 The term ‘‘qualified ship repair yard’’ means a ship13 yard located in the United States that meets the eligi14 bility qualification requirements for obtaining and

15 retaining a Master Ship Repair Agreement with the

16 United States Navy.

17 (e) AUTHORIZATION OF APPROPRIATIONS.—For grants

18 under this section there are authorized to be appropriated

19 to the Secretary of Transportation $17,500,000 for fiscal

20 year 1995, to remain available until expended.

21 SEC. 119. GREAT LAKES ENDORSEMENTS.

22 (a) REPEAL OF GREAT LAKES ENDORSEMENT.—

23 (1) Section 12107 of title 46, United States

24 Code, is repealed.
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1 (2) The analysis at the beginning of chapter 121

2 of title 46, United States Code, is amended by strik3 ing the item relating to section 12107.

4 (3) Section 12101(b)(3) of title 46, United States

5 Code, is repealed.

6 (b) CONFORMING AMENDMENT.—Section 4370(a) of

7 the Revised Statutes of the United States (46 App. U.S.C.

8 316(a)) is amended by striking ‘‘or 12107’’.

9 (c) ADDITIONAL CONFORMING AMENDMENTS.—

10 (1) Section 2793 of the Revised Statutes of

11 the United States (46 App. U.S.C. 111, 123) is

12 amended—

13 (A) by striking ‘‘coastwise, Great Lakes en14 dorsement’’ and all that follows through ‘‘foreign

15 ports,’’ and inserting ‘‘registry endorsement, en16 gaged in foreign trade on the Great Lakes or

17 their tributary or connecting waters in trade

18 with Canada,’’; and

19 (B) by striking ‘‘, as if from or to foreign

20 ports’’.

21 (2) The Act of March 8, 1910 (46 App. U.S.C.

22 132; 32 Stat. 234, chapter 86), is amended by strik23 ing ‘‘shall be exempt’’ and all that follows through the

24 end of the section and inserting ‘‘shall be exempt from
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1 section 36(a) of the Act of August 5, 1909 (36 Stat.

2 111).’’.

3 (d) EFFECTIVE DATE.—The amendments made by this

4 section shall take effect October 1, 1994.

5 ƒTITLE II—TONNAGE DUTIES

6 ƒSEC. 201. FINDINGS AND PURPOSES.

7 ƒ(a) FINDINGS.—The Congress finds the following:

8 ƒ(1) The Coast Guard—

9 ƒ(A) will spend over $400,000,000 in fiscal

10 year 1995 conducting search and rescue oper11 ations far into the Atlantic and Pacific Oceans

12 and the Gulf of Mexico to protect life and prop13 erty on United States and foreign-flag vessels;

14 ƒ(B) inspects vessels of all nations to ensure

15 their compliance with international treaties and

16 conventions;

17 ƒ(C) will spend over $470,000,000 in fiscal

18 year 1995 providing navigational aids to vessels

19 from around the world through the operation

20 of—

21 ƒ(i) LORAN, OMEGA, and the Dif22 ferential Global Positioning System; and

23 ƒ(ii) over 46,000 lighthouses, buoys,

24 daybeacons, fog signals, radar reflectors and

25 Vessel Traffic Service systems; and
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1 ƒ(D) will spend over $86,000,000 in fiscal

2 year 1995 providing icebreaking services for ves3 sels from all nations.

4 ƒ(2) It is reasonable for vessel owners of all na5 tions that benefit from these services, including own6 ers of United States-flag vessels, to pay tonnage duties

7 to help offset the cost of providing these services.

8 ƒ(b) PURPOSE.—The purpose of this title is to increase

9 the tonnage duties imposed on vessels entering the United

10 States to help offset the cost of providing Coast Guard serv11 ices to those vessels.

12 SEC. 202. INCREASE IN TONNAGE DUTIES.

13 ƒ(a) INCREASED DUTIES.—Section 36 of the Act of

14 August 5, 1909 (46 App. U.S.C. 121, 36 Stat. 111), is

15 amended—

16 ƒ(1) by designating the first paragraph as sub17 section (a) and amending it to read as follows:

18 ƒ‘‘(a) TONNAGE DUTY IMPOSED ON CERTAIN EN19 TRIES.—

20 ƒ‘‘(1) DUTY IMPOSED.—There is imposed on a

21 vessel making an entry described in paragraph (2) be22 fore fiscal year 2005 a duty of 53 cents per ton, ex23 cept that the duty for a vessel under this paragraph

24 shall not exceed in the aggregate $6.36 per ton in any

25 12-month period.
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1 ƒ‘‘(2) ENTRY DESCRIBED.—An entry referred to

2 in subparagraph (A) is any of the following:

3 ƒ‘‘(A) FORMAL ENTRY FROM FOREIGN PORT

4 OR PLACE.—A formal entry in any port of the

5 United States from any foreign port or place,

6 other than an entry by a vessel that is in distress

7 or is not engaged in trade.

8 ƒ‘‘(B) OTHER ENTRY.—An entry by a ves9 sel that departs a United States port or place

10 and returns to the same port or place without

11 being entered in the United States from another

12 port or place, other than—

13 ƒ‘‘(i) an entry by a vessel of the Unit14 ed States, a recreational vessel, or a barge

15 (as those terms are defined in section 2101

16 of title 46, United States Code); and

17 ƒ‘‘(ii) an entry by a vessel that is in

18 distress or is not engaged in trade.

19 ƒ‘‘(3) OFFSETTING RECEIPTS OF COAST

20 GUARD.—Amounts received by the United States as

21 duty imposed under this subsection shall be deposited

22 in the general fund of the Treasury as offsetting re23 ceipts of the department in which the Coast Guard is

24 operating and ascribed to Coast Guard activities.’’;

25 and
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1 ƒ(2) by designating the remainder of the section

2 as subsection (b).

3 ƒ(b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall take effect October 1, 1994.≈

5 TITLE II—REVENUE PROVISIONS

6 Subtitle A—Tonnage Duties

7 SEC. 201. FINDINGS AND PURPOSES.

8 (a) FINDINGS.—The Congress finds the fol9 lowing:

10 (1) The Coast Guard—

11 (A) will spend over $400,000,000 in

12 fiscal year 1995 conducting search

13 and rescue operations far into the At14 lantic and Pacific Oceans and the

15 Gulf of Mexico to protect life and

16 property on United States and for17 eign-flag vessels;

18 (B) inspects vessels of all nations

19 to ensure their compliance with

20 international treaties and conven21 tions;

22 (C) will spend over $470,000,000 in

23 fiscal year 1995 providing naviga24 tional aids to vessels from around the

25 world through the operation of—
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1 (i) LORAN, OMEGA, and the

2 Differential Global Positioning

3 System; and

4 (ii) over 46,000 lighthouses,

5 buoys, daybeacons, fog signals,

6 radar reflectors and Vessel Traf7 fic Service systems; and

8 (D) will spend over $86,000,000

9 in fiscal year 1995 providing

10 icebreaking services for vessels from

11 all nations.

12 (2) It is reasonable for vessel owners

13 of all nations that benefit from these

14 services, including owners of United

15 States-flag vessels, to pay tonnage duties

16 to help offset the cost of providing these

17 services.

18 (b) PURPOSE.—The purpose of this subtitle

19 is to increase the tonnage duties imposed on

20 vessels entering the United States to help off21 set the cost of providing Coast Guard services

22 to those vessels.
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1 SEC. 202. INCREASE IN TONNAGE DUTIES.

2 (a) INCREASED DUTIES.—Section 36 of the

3 Act of August 5, 1909 (46 App. U.S.C. 121, 36

4 Stat. 111), is amended—

5 (1) by designating the first paragraph

6 as subsection (a) and amending it to read

7 as follows:

8 ‘‘(a) TONNAGE DUTY IMPOSED ON CERTAIN

9 ENTRIES.—

10 ‘‘(1) DUTY IMPOSED.—There is imposed

11 on a vessel making an entry described in

12 paragraph (2) before fiscal year 2005 a

13 duty of 22 cents per ton, except that the

14 duty for a vessel under this paragraph

15 shall not exceed in the aggregate $2.64

16 per ton in any 12-month period.

17 ‘‘(2) ENTRY DESCRIBED.—An entry re18 ferred to in subparagraph (A) is any of

19 the following:

20 ‘‘(A) FORMAL ENTRY FROM FOREIGN

21 PORT OR PLACE.—A formal entry in

22 any port of the United States from

23 any foreign port or place, other than

24 an entry by a vessel that is in distress

25 or is not engaged in trade.
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1 ‘‘(B) OTHER ENTRY.—An entry by a

2 vessel that departs a United States

3 port or place and returns to the same

4 port or place without being entered

5 in the United States from another

6 port or place, other than—

7 ‘‘(i) an entry by a vessel of the

8 United States, a recreational ves9 sel, or a barge (as those terms are

10 defined in section 2101 of title 46,

11 United States Code); and

12 ‘‘(ii) an entry by a vessel that

13 is in distress or is not engaged in

14 trade.

15 ‘‘(3) OFFSETTING RECEIPTS OF COAST

16 GUARD.—Amounts received by the United

17 States as duty imposed under this sub18 section shall be deposited in the general

19 fund of the Treasury as offsetting re20 ceipts of the department in which the

21 Coast Guard is operating and ascribed to

22 Coast Guard activities.’’; and

23 (2) by designating the remainder of

24 the section as subsection (b).
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1 (b) EFFECTIVE DATE.—The amendments

2 made by subsection (a) shall take effect Octo3 ber 1, 1994.

4 Subtitle B—Other Revenue

5 Provisions

6 SEC. 211. INCREASE IN PER PASSENGER TAX ON TRANS7 PORTATION BY WATER.

8 (a) IN GENERAL.—Subsection (a) of section

9 4471 of the Internal Revenue Code of 1986 (re10 lating to imposition of tax on transportation

11 by water) is amended by adding at the end the

12 following new sentence: ‘‘If the value (as de13 termined under section 4462(a)(5)(B)) of the

14 covered voyage is $150 or more, the preceding

15 sentence shall be applied by substituting ‘$5’

16 for ‘$3’.’’

17 (b) EFFECTIVE DATE.—The amendment

18 made by subsection (a) shall apply to voyages

19 beginning after December 31, 1994.

20 SEC. 212. TAX ON FUEL USED IN INTERNATIONAL COMMER21 CIAL WATER TRANSPORTATION.

22 (a) IN GENERAL.—Subchapter B of chapter

23 31 of the Internal Revenue Code of 1986 (relat24 ing to retail excise taxes) is amended by add25 ing at the end the following new section:
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1 ‘‘SEC. 4043. FUEL USED IN INTERNATIONAL COMMERCIAL

2 WATER TRANSPORTATION.

3 ‘‘(a) IN GENERAL.—There is hereby im4 posed a tax on any liquid—

5 ‘‘(1) sold in the United States by any

6 person to an owner, lessee, or other oper7 ator of a taxable commercial vessel for

8 use as a fuel in such vessel, or

9 ‘‘(2) purchased in the United States

10 and used by any person as a fuel in such

11 a vessel during foreign transportation

12 unless there was a taxable sale of such

13 fuel under paragraph (1).

14 ‘‘(b) RATE OF TAX.—The rate of the tax

15 imposed by subsection (a) shall be 1 cent per

16 gallon.

17 ‘‘(c) EXEMPTION FROM TAX FOR VESSELS NOT

18 ENGAGED IN INTERNATIONAL SHIPPING.—

19 ‘‘(1) EXEMPTION WHERE TAX IMPOSED AT

20 TIME FUEL LOADED IN VESSEL.—In the case

21 of fuel which is loaded into the bunker of

22 a vessel at the time of the sale on which

23 tax is imposed by subsection (a), if the

24 purchaser reasonably estimates the

25 amount of fuel to be used in foreign

26 transportation before the next purchase
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1 of fuel for such vessel, the tax imposed by

2 subsection (a) shall apply only to fuel

3 purchased at such time in the amount

4 certified by the purchaser to the seller as

5 being equal to the excess of such estimate

6 over the fuel in the bunker at such time

7 on which tax was imposed by subsection

8 (a).

9 ‘‘(2) OTHER CASES.—In any case in

10 which tax is imposed by subsection (a)

11 before the time referred to in paragraph

12 (1), a rule similar to the rule of para13 graph (1) shall apply under regulations

14 prescribed by the Secretary.

15 ‘‘(3) ORDERING RULE ON FUEL USE.—For

16 purposes of determining, at the time of

17 purchase of fuel, the amount of tax-paid

18 fuel which is in the bunker of the vessel,

19 the vessel shall be treated as having used

20 tax-paid fuel (to the extent thereof) when

21 in foreign transportation.

22 ‘‘(d) DEFINITIONS.—For purposes of this

23 section—

24 ‘‘(1) FOREIGN TRANSPORTATION.—
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1 ‘‘(A) IN GENERAL.—The term ‘for2 eign transportation’ means transpor3 tation by water—

4 ‘‘(i) from any point within the

5 United States,

6 ‘‘(ii) to any point outside the

7 United States where passengers

8 or cargo are loaded or unloaded,

9 and

10 ‘‘(iii) to any point thereafter

11 (whether or not outside the Unit12 ed States).

13 ‘‘(B) INCLUSION OF CERTAIN TRANS14 PORTATION BETWEEN 2 POINTS WITHIN

15 THE UNITED STATES.—The term ‘foreign

16 transportation’ includes transpor17 tation between 2 points within the

18 United States if any of the passengers

19 or cargo being transported by the

20 vessel between such 2 points is to be

21 transported by such vessel in foreign

22 transportation (as defined in sub23 paragraph (A)).

24 ‘‘(C) EXCLUSION FOR TRANSPOR25 TATION EXCLUSIVELY WITHIN THE GREAT
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1 LAKES.—Notwithstanding subpara2 graphs (A) and (B), the term ‘foreign

3 transportation’ does not include

4 transportation exclusively within the

5 Great Lakes.

6 ‘‘(2) TAXABLE COMMERCIAL VESSEL.—

7 The term ‘taxable commercial vessel’

8 means any commercial vessel (as defined

9 in section 4462(a)(4)) which is designed

10 primarily for use on the high seas and

11 which has a draft of more than 12 feet.

12 ‘‘(3) UNITED STATES.—The term ‘United

13 States’ has the meaning given such term

14 by section 4612(a)(4)(A).

15 ‘‘(e) SPECIAL RULES.—

16 ‘‘(1) TREATMENT OF OFFSHORE FUEL17 ING.—For purposes of this section, the de18 livery of fuel into the bunker of a vessel

19 by pipeline or another vessel shall be

20 treated as occurring in the United States

21 if such fuel was removed from the United

22 States for such delivery.

23 ‘‘(2) NO PENALTY FOR SALE OF DYED

24 FUEL.—Section 6715 shall not apply to any
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1 liquid on which tax is imposed by this

2 section.’’

3 (b) CREDIT OR REFUND FOR TAX-PAID FUEL

4 NOT USED IN INTERNATIONAL COMMERCIAL

5 WATER TRANSPORTATION.—Subchapter B of

6 chapter 65 of such Code is amended by adding

7 at the end the following new section:

8 ‘‘SEC. 6428. FUEL NOT USED IN INTERNATIONAL COMMER9 CIAL WATER TRANSPORTATION.

10 ‘‘(a) IN GENERAL.—If tax has been imposed

11 by section 4043 on the sale of any fuel and the

12 purchaser establishes to the satisfaction of

13 the Secretary that such fuel was not used in

14 foreign transportation (as defined in section

15 4043(d)), the Secretary shall pay (without in16 terest) to the purchaser an amount equal to

17 the tax imposed by section 4043 on such fuel.

18 ‘‘(b) APPLICABLE LAWS.—Rules similar to

19 the rules of section 6427(j) shall apply for pur20 poses of this section, and any reference in

21 subtitle F to such section shall be treated as

22 including a reference to this subsection.’’

23 (c) CONFORMING AMENDMENTS.—

24 (1) Subsection (a) of section 6675 of

25 such Code is amended by striking ‘‘or’’
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1 before ‘‘6427’’ and by inserting after ‘‘pur2 poses)’’ the following ‘‘or 6428 (relating to

3 fuel not used in international commercial

4 water transportation)’’.

5 (2) Subsection (b) of section 6675 of

6 such Code is amended by striking ‘‘or

7 6427’’ and inserting ‘‘6427, or 6428’’.

8 (3) The section 6714 of such Code

9 added by section 13242 of Public Law

10 103–66 is redesignated as section 6715.

11 (4) The table of sections for part I of

12 subchapter B of chapter 68 of such Code

13 is amended by redesignating the item re14 lating to the section 6714 that was added

15 by such section 13242 as relating to sec16 tion 6715.

17 (5) The table of sections for sub18 chapter B of chapter 31 of such Code is

19 amended by adding at the end the follow20 ing new item:

‘‘Sec. 4043. Fuel used in international commercial

water transportation.’’

21 (6) The table of sections for sub22 chapter B of chapter 65 of such Code is

23 amended by adding at the end the follow24 ing new item:
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‘‘Sec. 6428. Fuel not used in international commercial water transportation.’’

1 (d) EFFECTIVE DATE.—The amendments

2 made by this section shall apply to fuel sold

3 on or after January 1, 1995.

4 SEC. 213. LIMITATION ON CONTRACT AUTHORITY.

5 (a) LIMITATION ON CONTRACT AUTHORITY.—

6 The Secretary of Transportation may not obli7 gate more than $1,000,000,000 in total con8 tracts under the Maritime Security and Com9 petitiveness Act of 1993 or this Act between

10 October 1, 1994, and September 30, 2004.

11 (b) LIMITATION ON OUTLAYS.—The Sec12 retary of Transportation shall not enter into

13 any agreements under the Maritime Security

14 and Competitiveness Act of 1993 or this Act

15 that would result in total payments under

16 such agreements for any fiscal year in excess

17 of the limitations in the following table.

In the case of The limitation

fiscal year: (in millions) is:

1995 ........................................................................ $56

1996 ........................................................................ $70

1997 ........................................................................ $70

1998 ........................................................................ $72

1999 ........................................................................ $121

2000 ........................................................................ $123

2001 ........................................................................ $124

2002 ........................................................................ $124

2003 ........................................................................ $126

2004 ........................................................................ $126.
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1 (c) COORDINATION WITH TITLE III.—Sub2 sections (a) and (b) shall apply notwithstand3 ing title III of this Act; except that such sub4 sections shall not apply to the extent addi5 tional amounts are provided by appropriation

6 laws (including section 302 of this Act).

7 TITLE III—FUNDING FOR MARI8 TIME PROMOTIONAL PRO9 GRAMS

10 SEC. 301. CONTRACT AUTHORITY.

11 The Secretary of Transportation shall expeditiously

12 enter into agreements under the Maritime Security and

13 Competitiveness Act of 1993. However, the Secretary may

14 not obligate more than $1,700,000,000 in total contracts

15 between October 1, 1994, and September 30, 2004, except

16 to the extent additional amounts are provided by appro17 priations laws (including section 302).

18 SEC. 302. TRANSFER.

19 The Secretary of Transportation shall use any

20 amounts appropriated for acquisition of vessels for the

21 Ready Reserve Force that are unobligated on October 1,

22 1994, to enter into agreements under the Maritime Secu23 rity and Competitiveness Act of 1993.
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1 SEC. 303. AUTHORIZATION OF ADDITIONAL APPROPRIA2 TIONS.

3 In addition to amounts otherwise available, there are

4 authorized to be appropriated to the Secretary of Trans5 portation such amounts as may be necessary for entering

6 into and making payments under agreements under the

7 Maritime Security and Competitiveness Act of 1993.

8 SEC. 304. CONTINUING AVAILABILITY.

9 Amounts available or authorized to be appropriated

10 under this title shall remain available until expended.

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