II

103D CONGRESS

2D SESSION S. 2014

To amend the coastwise trade laws to clarify their application to certain

passenger vessels, and for other purposes.

IN THE SENATE OF THE UNITED STATES

APRIL 13 (legislative day, April 11), 1994

Mr. HEFLIN introduced the following bill; which was read twice and referred

to the Committee on Commerce, Science, and Transportation

A BILL

To amend the coastwise trade laws to clarify their application

to certain passenger vessels, 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-Flag

5 Passenger Vessel Act of 1994’’.

6 SEC. 2. COASTWISE TRANSPORTATION OF PASSENGERS.

7 (a) IN GENERAL.—Section 8 of the Act of June 19,

8 1886 (46 U.S.C. App. 289), is amended to read as follows:
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1 ‘‘SEC. 8. COASTWISE TRANSPORTATION OF PASSENGERS.

2 ‘‘(a) IN GENERAL.—Except as otherwise provided by

3 law, a vessel may transport passengers in coastwise trade

4 only if—

5 ‘‘(1) the vessel meets the requirements of sec6 tion 27 of the Merchant Marine Act, 1920, and sec7 tion 2 of the Shipping Act, 1916, for engaging in

8 coastwise trade; and

9 ‘‘(2) in the case of a vessel that is at least 5

10 net tons, the vessel is documented under chapter

11 121 of title 46, United States Code, with a coastwise

12 endorsement.

13 ‘‘(b) PENALTIES.—

14 ‘‘(1) CIVIL PENALTY.—A person operating a

15 vessel in violation of this section shall be subject to

16 a civil penalty of $1,000 for each passenger trans17 ported in violation of this section.

18 ‘‘(2) FORFEITURE.—A vessel operated in know19 ing violation of this section, and its equipment, shall

20 be subject to seizure by, and forfeiture to, the Unit21 ed States.

22 ‘‘(c) DEFINITIONS.—For purposes of this section—

23 ‘‘(1) the term ‘coastwise trade’ includes—

24 ‘‘(A) transportation of a passenger from a

25 place in any State or possession of the United

26 States and returning to that place, if during the
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1 transportation no passenger departs from the

2 vessel in a foreign country; and

3 ‘‘(B) transportation of a passenger be4 tween points in the United States, either di5 rectly or by way of a foreign port; and

6 ‘‘(2) the term ‘passenger’ does not include a

7 travel agent on a voyage if—

8 ‘‘(A) the purpose of the voyage is to pro9 mote future trips on the vessel;

10 ‘‘(B) money is not paid to the vessel owner

11 or charterer for the voyage; and

12 ‘‘(C) the voyage goes beyond the territorial

13 sea of the United States.’’.

14 (b) EXCEPTION.—

15 (1) IN GENERAL.—Notwithstanding the amend16 ment made by subsection (a), an ineligible vessel

17 may engage in the transport of passengers in coast18 wise trade (as those terms are defined in that

19 amendment) on a trade route, if—

20 (A) the vessel engaged, in the period begin21 ning January 1, 1990, and ending March 9,

22 1993, in the transport of passengers in coast23 wise trade on the trade route; and

24 (B) not later than 1 year after the date of

25 enactment of this Act, the owner files with the
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1 Secretary of Transportation an affidavit certify2 ing compliance with subparagraph (A) and list3 ing each trade route on which the vessel en4 gaged in transport of passengers in coastwise

5 trade in the period described in subparagraph

6 (A).

7 (2) SCHEDULED EXPIRATION OF EXCEPTION.—

8 Paragraph (1) does not apply to an ineligible vessel

9 after the latest of—

10 (A) January 1, 2000;

11 (B) the date that is 15 years after the date

12 of completion of construction of the vessel; or

13 (C) the date that is 15 years after the date

14 of completion of any major conversion of the

15 vessel that is begun before the date of enact16 ment of this Act.

17 (3) EXPIRATION OF EXCEPTION FOR FAILURE

18 TO RECREW.—Paragraph (1) does not apply to an

19 ineligible vessel after the date that is 5 years after

20 the date of enactment of this Act, unless—

21 (A) each individual employed on the vessel

22 after the 1-year period beginning on the date of

23 enactment of this Act is either a citizen of the

24 United States or an alien lawfully admitted to

25 the United States for permanent residence; and
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1 (B) not more than 25 percent of the total

2 number of individuals employed on the vessel

3 after the 1-year period beginning on the date of

4 enactment of this Act are aliens lawfully admit5 ted to the United States for permanent

6 residence.

7 (4) TERMINATION OF EXCEPTION UPON ENTRY

8 OF REPLACEMENT.—Paragraph (1) does not apply

9 to an ineligible vessel with respect to a trade route

10 after the date of entry into service on the trade

11 route of an eligible vessel, if—

12 (A) the eligible vessel has a passenger car13 rying capacity that is equal to not less than 75

14 percent of the passenger carrying capacity of

15 the ineligible vessel, as determined by the Sec16 retary of the department in which the Coast

17 Guard is operating;

18 (B) the person that is the owner or

19 charterer of the eligible vessel submits to the

20 Secretary of Transportation, not later than 270

21 days before the date of entry into service—

22 (i) a notice of the intent of the person

23 to enter into that service; and
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1 (ii) such evidence as the Secretary

2 may require that the person is offering and

3 advertising the service;

4 (C) any individual employed on the ineli5 gible vessel after the 1-year period beginning on

6 the date of enactment of this Act—

7 (i) is not a citizen of the United

8 States; and

9 (ii) is not an alien lawfully admitted

10 to the United States for permanent resi11 dence; and

12 (D) more than 25 percent of the total

13 number of individuals employed on the ineligible

14 vessel after the 1-year period beginning on the

15 date of enactment of this Act are aliens lawfully

16 admitted to the United States for permanent

17 residence.

18 (5) TERMINATION OF EXCEPTION UPON SALE

19 OF VESSEL.—Paragraph (1) does not apply to an in20 eligible vessel after any date on which the vessel is

21 sold after the date of enactment of this Act.

22 (6) DEFINITIONS.—For purposes of this sub23 section—

24 (A) the term ‘‘eligible vessel’’ means a ves25 sel that is eligible under chapter 121 of title 46,
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1 United States Code, for a certificate of docu2 mentation authorizing the vessel to engage in

3 coastwise trade;

4 (B) the term ‘‘ineligible vessel’’ means a

5 vessel that is not eligible under chapter 121 of

6 title 46, United States Code, for a certificate of

7 documentation authorizing the vessel to engage

8 in coastwise trade; and

9 (C) the term ‘‘major conversion’’ has the

10 same meaning given such term by section

11 2101(14a) of title 46, United States Code.

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