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

106th CONGRESS
  1st Session
                                 S. 937

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

_______________________________________________________________________

                                 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,

SECTION 1. SHORT TITLE.

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

SEC. 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 2000 AND 2001.

    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 $72,164,000 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.
            (3) For the fiscal year ending September 30, 2001, such 
        sums as may be necessary.

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

    (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''.
    (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:

``SEC. 1109. RESERVE FUNDS AND COLLATERAL ACCOUNTS.

    ``(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.
    ``(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.
    ``(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.
    ``(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.''.

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 
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--
            ``(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 App. U.S.C. 
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.''.
                                 <all>
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