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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 937 Reported in Senate (RS)]

                                                       Calendar No. 220

106th CONGRESS

  1st Session

                                 S. 937

                          [Report No. 106-111]

_______________________________________________________________________

                                 A BILL

To authorize appropriations for fiscal years 2000 and 2001 for certain 
 maritime programs of the Department of Transportation, and for other 
                               purposes.

_______________________________________________________________________

                             July 20, 1999

        Reported with an amendment and an amendment to the title
                                                       Calendar No. 220
106th CONGRESS
  1st Session
                                 S. 937

                          [Report No. 106-111]

To authorize appropriations for fiscal years 2000 and 2001 for certain 
 maritime programs of the Department of Transportation, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 3, 1999

Mrs. Hutchison (for herself, Mr. McCain, Mr. Hollings, and Mr. Inouye) 
introduced the following bill; which was read twice and referred to the 
           Committee on Commerce, Science, and Transportation

                             July 20, 1999

Reported by Mr. McCain, with an amendment and an amendment to the title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To authorize appropriations for fiscal years 2000 and 2001 for certain 
 maritime programs of the Department of Transportation, and for other 
                               purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Maritime Administration 
Authorization Act for Fiscal Years 2000 and 2001''.</DELETED>

<DELETED>SECTION 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 
              2000 AND 2001.</DELETED>

<DELETED>    There are authorized to be appropriated to the Secretary 
of Transportation for the Maritime Administration as follows:</DELETED>
        <DELETED>    (1) For expenses necessary for operations and 
        training activities, not to exceed $72,164,000 for the fiscal 
        year ending September 30, 2000.</DELETED>
        <DELETED>    (2) For the costs, as defined in section 502 of 
        the Federal Credit Reform Act of 1990, of guaranteed loans 
        authorized by Title XI of the Merchant Marine Act, 1936, (46 
        U.S.C. App. 1271 et seq.), $6,000,000, to be available until 
        expended. In addition, for administrative expenses related to 
        loan guarantee commitments under Title XI of the Merchant 
        Marine Act, 1936, (46 U.S.C. App. 1271 et seq.), 
        $3,893,000.</DELETED>
        <DELETED>    (3) For the fiscal year ending September 30, 2001, 
        such sums as may be necessary.</DELETED>

<DELETED>SECTION 3. AMENDMENTS TO TITLE XI OF THE MERCHANT MARINE ACT, 
              1936.</DELETED>

<DELETED>    (a) Section 1108(a) of the Merchant Marine Act, 1936 (46 
U.S.C. App. 1279a(a)) is amended by striking from ``If the proceeds'' 
through ``require: Provided, That in the event'' and inserting ``If the 
proceeds of an obligation guaranteed under this title are to be used to 
finance the construction, reconstruction, or reconditioning of a vessel 
or vessels which will serve as security for the guarantee of the 
Secretary, the Secretary is authorized to accept and hold, in escrow 
under an escrow agreement with the obligor, proceeds of that obligation 
(together with such interest as may be earned thereon and, if required 
by the Secretary, an amount equal to 6 month's interest on the 
obligation). The Secretary may not release funds from the escrow until 
the Secretary first determines that the obligor has paid its portion of 
the actual cost of constructing, reconstructing, or reconditioning the 
vessel or vessels and, second, determines that the funds to be released 
are needed to pay, or make reimbursements in connection with payments 
previously made to the shipyard or other contractors for work 
performed, or to pay for other approved costs, with respect to the 
vessel or vessels. If''.</DELETED>
<DELETED>    (b) Title XI of the Merchant Marine Act, 1936, (46 U.S.C. 
App. 1271 et seq.) is amended by inserting after section 1108 the 
following:</DELETED>

<DELETED>``SEC. 1109. RESERVE FUNDS AND COLLATERAL ACCOUNTS.</DELETED>

<DELETED>    ``(a) Creation of Funds and Accounts.--There is hereby 
established in the Treasury a deposit fund into which the Secretary is 
authorized to deposit cash belonging to an obligor so long as the 
Secretary has a security interest in such cash. The account shall be 
governed by the terms of an agreement, as described hereunder, to be 
entered into by the Secretary and an obligor.</DELETED>
<DELETED>    ``(b) Terms of Agreement.--The Secretary and an obligor 
shall enter into a reserve fund or other collateral account agreement 
to govern the making of deposits and withdrawals and the retention, 
use, and reinvestment of the cash deposited under subsection (a). The 
agreement shall contain such terms and conditions as are further 
required hereunder and as are considered by the Secretary to be 
necessary to protect fully the interests of the United 
States.</DELETED>
<DELETED>    ``(c) Investment.--The Secretary is authorized to invest 
and reinvest any part of the cash of a reserve fund or collateral 
account in obligations of the United States with such maturities that 
these funds and accounts will be available as required for purposes of 
the agreement. Cash balances of the deposit fund in excess of current 
requirements shall be maintained in a form of uninvested funds and the 
Secretary of the Treasury shall pay interest on these funds.</DELETED>
<DELETED>    ``(d) Income.--The cash deposited in a reserve fund or 
collateral account may not be withdrawn without the consent of the 
Secretary. The Secretary may retain and offset any or all of the cash 
on deposit in a reserve fund or collateral account, and any income 
realized thereon, as part of the Secretary's recovery against an 
obligor that has defaulted on an obligation. In the absence of a 
default on an obligation, the Secretary may pay any income realized on 
a reserve fund or collateral account in accordance with the terms of 
the agreement.''.</DELETED>

<DELETED>SECTION 4. AMENDMENTS TO TITLE IX OF THE MERCHANT MARINE ACT, 
              1936.</DELETED>

<DELETED>    (a) Title IX of the Merchant Marine Act, 1936, (46 U.S.C. 
App. 1241 et seq.) is amended by inserting after section 902 the 
following:</DELETED>

<DELETED>``SEC. 903. DOCUMENTATION OF CERTAIN DRY CARGO 
              VESSELS.</DELETED>

<DELETED>    ``(a) In General.--The restrictions of section 901(b)(1) 
of this Act concerning the building, rebuilding, or documentation of a 
vessel in a foreign country shall not apply to dry bulk vessels and 
breakbulk vessels over 5,000 deadweight tons constructed, 
reconstructed, or acquired in a foreign shipyard within 1 year after 
the date of enactment of the Maritime Administration Authorization Act 
for Fiscal Years 2000 and 2001 and before the date of enactment of the 
OECD Shipbuilding Trade Agreement Act, and transferred to U.S.-flag 
registry under section 12105 of title 46, United States Code, if--
</DELETED>
        <DELETED>    ``(1) the vessels have non-emergency shipyard 
        repairs, and other shipyard work necessary to conform the 
        vessel to U.S.-flag standards, performed in a shipyard of the 
        United States;</DELETED>
        <DELETED>    ``(2) the vessels comply with the standards set 
        forth in section 1137 of the Coast Guard Authorization Act of 
        1996 (46 U.S.C. App. 1187 note); and</DELETED>
        <DELETED>    ``(3) the vessels have not be granted approval 
        under section 9(e) of the Shipping Act, 1916 (as amended by 
        section 1136(b) of the Coast Guard Authorization Act of 
        1996).</DELETED>
<DELETED>    ``(b) Application of Section 607.--Section 607 of this Act 
does not apply to vessels the construction, reconstruction, 
modification, or acquisition of which is described in subsection 
(a).''.</DELETED>
<DELETED>     (b) Section 901b(c)(2) of the Merchant Marine Act, 1936, 
(46 U.S.C. App. 1241f(c)(2)) is amended by striking ``1986.'' and 
inserting ``1986, the 18-month period commencing April 1, 1999, and the 
12-month period beginning on the first day of October in the year 2000 
and each year thereafter.''.</DELETED>

<DELETED>SECTION 5. EXTENSION OF WAR RISK INSURANCE 
              AUTHORITY.</DELETED>

<DELETED>    Section 1214 of the Merchant Marine Act, 1936, (46 App. 
U.S.C. 1294) is amended by striking ``June 30, 2000.'' and inserting 
``June 30, 2005''.</DELETED>

<DELETED>SECTION 6. TRANSPORTATION REPORT ON MARITIME 
              ACTIVITIES.</DELETED>

<DELETED>    Section 208 of the Merchant Marine Act, 1936, (46 U.S.C. 
App. 1118) is amended by striking ``1 each'' and inserting ``1st of 
each odd-numbered''.</DELETED>

<DELETED>SECTION 7. OWNERSHIP OF THE JEREMIAH O'BRIEN.</DELETED>

<DELETED>    Section 3302(l)(1)(C) of title 46, United States Code, is 
amended by striking ``United States Maritime Administration.'' and 
inserting ``National Liberty Ship Memorial, Inc.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Maritime Administration 
Authorization Act for Fiscal Year 2000''.

SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 2000.

    There are authorized to be appropriated to the Secretary of 
Transportation for the Maritime Administration as follows:
            (1) For expenses necessary for operations and training 
        activities, not to exceed $79,764,000 for the fiscal year 
        ending September 30, 2000.
            (2) For the costs, as defined in section 502 of the Federal 
        Credit Reform Act of 1990, of guaranteed loans authorized by 
        title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 
        et seq.), $6,000,000, to be available until expended. In 
        addition, for administrative expenses related to loan guarantee 
        commitments under title XI of the Merchant Marine Act, 1936 (46 
        U.S.C. App. 1271 et seq.), $3,893,000.

SEC. 3. AMENDMENTS TO TITLE XI OF THE MERCHANT MARINE ACT, 1936.

    (a) Authority To Hold Obligation Proceeds in Escrow.--Section 
1108(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 1279a(a)) is 
amended by striking so much as precedes ``guarantee of an obligation'' 
and inserting the following:
    ``(a) Authority To Hold Obligation Proceeds in Escrow.--(1) If the 
proceeds of an obligation guaranteed under this title are to be used to 
finance the construction, reconstruction, or reconditioning of a vessel 
that will serve as security for the guarantee, the Secretary may accept 
and hold, in escrow under an escrow agreement with the obligor--
            ``(A) the proceeds of that obligation, including such 
        interest as may be earned thereon; and
            ``(B) if required by the Secretary, an amount equal to 6 
        month's interest on the obligation.
    ``(2) The Secretary may release funds held in escrow under 
paragraph (1) only if the Secretary determines that the funds released 
are needed--
            ``(A) to pay, or make reimbursements in connection with 
        payments previously made for work performed in that 
        construction, reconstruction, or reconditioning; or
            ``(B) to pay for other costs approved by the Secretary, 
        with respect to the vessel or vessels.
    ``(3) If the security for the''.
    (b) Authority To Hold Obligor's Cash as Collateral.--Title XI of 
the Merchant Marine Act, 1936 is amended by inserting after section 
1108 the following:

``SEC. 1109. DEPOSIT FUND.

    ``(a) Establishment of Deposit Fund.--There is established in the 
Treasury a deposit fund for purposes of this section. The Secretary 
may, in accordance with an agreement under subsection (b), deposit into 
and hold in the deposit fund cash belonging to an obligor to serve as 
collateral for a guarantee under this title made with respect to the 
obligor.
    ``(b) Agreement.--
            ``(1) In general.--The Secretary and an obligor shall enter 
        into a reserve fund or other collateral account agreement to 
        govern the deposit, withdrawal, retention, use, and 
        reinvestment of cash of the obligor held in the deposit fund 
        established by subsection (a).
            ``(2) Terms.--The agreement shall contain such terms and 
        conditions as are required under this section and such 
        additional terms as are considered by the Secretary to be 
        necessary to protect fully the interests of the United States.
            ``(3) Security interest of united states.--The agreement 
        shall include terms that grant to the United States a security 
        interest in all amounts deposited into the deposit fund.
    ``(c) Investment.--The Secretary may invest and reinvest any part 
of the amounts in the deposit fund established by subsection (a) in 
obligations of the United States with such maturities as ensure that 
amounts in the deposit fund will be available as required for purposes 
of agreements under subsection (b). Cash balances of the deposit fund 
in excess of current requirements shall be maintained in a form of 
uninvested funds and the Secretary of the Treasury shall pay interest 
on these funds.
    ``(d) Withdrawals.--
            ``(1) In general.--The cash deposited into the deposit fund 
        established by subsection (a) may not be withdrawn without the 
        consent of the Secretary.
            ``(2) Use of income.--Subject to paragraph (3), the 
        Secretary may pay any income earned on cash of an obligor 
        deposited into the deposit fund in accordance with the terms of 
        the agreement with the obligor under subsection (b).
            ``(3) Retention against default.--The Secretary may retain 
        and offset any or all of the cash of an obligor in the deposit 
        fund, and any income realized thereon, as part of the 
        Secretary's recovery against the obligor in case of a default 
        by the obligor on an obligation.''.

SEC. 4. AMENDMENTS TO TITLE IX OF THE MERCHANT MARINE ACT, 1936.

    (a) Title IX of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241 
et seq.), is amended by inserting after section 902 the following:

``SEC. 903. DOCUMENTATION OF CERTAIN DRY CARGO VESSELS.

    ``(a) In General.--The restrictions of section 901(b)(1) of this 
Act concerning the building, rebuilding, or documentation of a vessel 
in a foreign country shall not apply to dry bulk vessels and breakbulk 
vessels over 5,000 deadweight tons constructed, reconstructed, or 
acquired in a foreign shipyard within 1 year after the date of 
enactment of the Maritime Administration Authorization Act for Fiscal 
Year 2000 and before the date on which the OECD Shipbuilding Trade 
Agreement enters into force, and transferred to U.S.-flag registry 
under section 12105 of title 46, United States Code, if--
            ``(1) the vessels have non-emergency shipyard repairs, and 
        other shipyard work necessary to conform the vessel to U.S.-
        flag standards, performed in a shipyard of the United States;
            ``(2) the vessels comply with the standards set forth in 
        section 1137 of the Coast Guard Authorization Act of 1996 (46 
        U.S.C. App. 1187 note); and
            ``(3) the vessels have not be granted approval under 
        section 9(e) of the Shipping Act, 1916 (as amended by section 
        1136(b) of the Coast Guard Authorization Act of 1996).
    ``(b) Application of Section 607.--Section 607 of this Act does not 
apply to vessels the construction, reconstruction, modification, or 
acquisition of which is described in subsection (a).''.
     (b) Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 U.S.C. 
App. 1241f(c)(2)), is amended by striking ``1986.'' and inserting 
``1986, the 18-month period commencing April 1, 1999, and the 12-month 
period beginning on the first day of October in the year 2000 and each 
year thereafter.''.

SEC. 5. EXTENSION OF WAR RISK INSURANCE AUTHORITY.

    Section 1214 of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1294), is amended by striking ``June 30, 2000.'' and inserting ``June 
30, 2005''.

SEC. 6. TRANSPORTATION REPORT ON MARITIME ACTIVITIES.

    Section 208 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1118), 
is amended by striking ``1 each'' and inserting ``1st of each odd-
numbered''.

SEC. 7. OWNERSHIP OF THE JEREMIAH O'BRIEN.

    Section 3302(l)(1)(C) of title 46, United States Code, is amended 
by striking ``United States Maritime Administration.'' and inserting 
``National Liberty Ship Memorial, Inc.''.

SEC. 8. MARITIME RESEARCH AND TECHNOLOGY DEVELOPMENT.

    (a) In General.--The Maritime Administration shall conduct a study 
of maritime research and technology development, and report its 
findings and conclusions, together with any recommendations it finds 
appropriate, to the Congress within 9 months after the date of 
enactment of this Act.
    (b) Required Areas of Study.--The Administration shall include the 
following items in the report required by subsection (a):
            (1) The approximate dollar values appropriated by the 
        Congress for each of the 5 fiscal years ending before the study 
        is commenced for each of the following modes of transportation:
                    (A) Highway.
                    (B) Rail.
                    (C) Aviation.
                    (D) Public transit.
                    (E) Maritime.
            (2) A description of how Federal funds appropriated for 
        research in the different transportation modes are utilized.
            (3) A summary and description of current research and 
        technology development funds appropriated for each of those 
        fiscal years for maritime research initiatives, with separate 
        categories for funds provided to the Coast Guard for marine 
        safety research purposes.
            (4) A description of cooperative mechanisms that could be 
        used to attract and leverage non-federal investments in United 
        States maritime research and technology development and 
        application programs.
            (5) Proposals for research and technology development 
        funding to facilitate the evolution of Maritime Transportation 
        System.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $100,000 to carry out this section.
            Amend the title so as to read: ``A bill to authorize 
        appropriations for fiscal year 2000 for certain maritime 
        programs of the Department of Transportation, and for other 
        purposes.''.
```