II

105TH CONGRESS

1ST SESSION S. 1138

To reform the coastwise, intercoastal, and noncontiguous trade shipping laws,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 31, 1997

Mr. HELMS (for himself, Mr. BROWNBACK, Mr. BURNS, Mr. HAGEL, and Mr.

ROBERTS) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

A BILL

To reform the coastwise, intercoastal, and noncontiguous

trade shipping laws, 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 ‘‘Freedom to Ship Act

5 of 1997’’.

6 SEC. 2. MISCELLANEOUS AMENDMENTS TO DEFINITIONS IN

7 TITLE 46, UNITED STATES CODE.

8 Section 2101 of title 46, United States Code, is

9 amended—
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1 (1) in each of paragraphs (1) through (45), by

2 striking the period at the end and inserting a semi3 colon;

4 (2) in paragraph (46), by striking the period at

5 the end and inserting ‘‘; and’’;

6 (3) by striking paragraph (3a) and inserting

7 the following:

8 ‘‘(3a) ‘citizen of the United States’ means—

9 ‘‘(A)(i) a national of the United States, as

10 defined in section 101(a)(22) of the Immigra11 tion and Nationality Act (8 U.S.C.

12 1101(a)(22));

13 ‘‘(ii) a corporation established under the

14 laws of the United States or under the laws of

15 a State, territory, district, or possession of the

16 United States, that has—

17 ‘‘(I) a president or other chief execu18 tive officer and chairman of the board of

19 directors of that corporation who are citi20 zens of the United States; and

21 ‘‘(II) a board of directors, on which

22 two-thirds of the number of directors nec23 essary to constitute a quorum are citizens

24 of the United States;
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1 ‘‘(iii) a partnership existing under the laws

2 of a State, territory, district, or possession of

3 the United States that has at least two-thirds

4 of the general partners who are citizens of the

5 United States;

6 ‘‘(iv) a trust that has at least two-thirds of

7 the trustees who are citizens of the United

8 States; or

9 ‘‘(v) an association, joint venture, limited

10 liability company or partnership, or other entity

11 that has at least two-thirds of the members who

12 are citizens of the United States; but

13 ‘‘(B) such term does not include—

14 ‘‘(i) with respect to a person or entity

15 under clause (ii), (iii), or (v) of subpara16 graph (A), any parent corporation, part17 nership, or other person (other than an in18 dividual) or entity that is a second-tier

19 owner (as that term is defined by the Sec20 retary) of the person or entity involved; or

21 ‘‘(ii) with respect to a trust under

22 clause (iv), any beneficiary of the trust.’’;

23 (4) by inserting after paragraph (4) the follow24 ing new paragraph:

25 ‘‘(4a) ‘coastwise trade’—
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1 ‘‘(A) subject to subparagraph (B), means

2 the transportation by water of merchandise or

3 passengers, the towing of a vessel by a towing

4 vessel, or dredging operations embraced within

5 the coastwise laws of the United States—

6 ‘‘(i) between points in the United

7 States (including any district, territory, or

8 possession of the United States);

9 ‘‘(ii) on the Great Lakes (including

10 any tributary or connecting waters of the

11 Great Lakes and the Saint Lawrence Sea12 way);

13 ‘‘(iii) on the subjacent waters of the

14 Outer Continental Shelf subject to the

15 Outer Continental Shelf Lands Act (43

16 U.S.C. 1331 et seq.); and

17 ‘‘(iv) in the noncontiguous trade; and

18 ‘‘(B) does not include the activities speci19 fied in subparagraph (A) on the navigable wa20 ters included in the inland waterways trade ex21 cept for activities specified in subparagraph (A)

22 that occur on mixed waters.’’;

23 (5) by inserting after paragraph (11c) the fol24 lowing new paragraph:
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1 ‘‘(11d) ‘foreign qualified vessel’ means a ves2 sel—

3 ‘‘(A) registered in a foreign country; and

4 ‘‘(B) the owner, operator, or charterer of

5 which is a citizen of the United States or—

6 ‘‘(i) has qualified to engage in busi7 ness in a State and has an agent in that

8 State upon whom service of process may be

9 made;

10 ‘‘(ii) is subject to the laws of the

11 United States in the same manner as any

12 foreign person doing business in the Unit13 ed States; and

14 ‘‘(iii) either—

15 ‘‘(I) employs vessels in the coast16 wise trade regularly or from time to

17 time as part of a regularly scheduled

18 freight service in the foreign ocean

19 (including the Great Lakes) trades of

20 the United States; or

21 ‘‘(II) offers passage or cruises on

22 passenger vessels the owner, operator,

23 or charterer employs in the coastwise

24 trade or in the coastwise trade as part

25 of those cruises offered in the foreign
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1 ocean (including the Great Lakes)

2 trades of the United States.’’;

3 (6) by redesignating paragraph (14a) as para4 graph (14b);

5 (7) by inserting after paragraph (14) the fol6 lowing new paragraph:

7 ‘‘(14a) ‘inland waterways trade’—

8 ‘‘(A) means—

9 ‘‘(i) the transportation of merchandise

10 or passengers on the navigable rivers, ca11 nals, lakes other than the Great Lakes, or

12 other waterways inside the Boundary Line;

13 ‘‘(ii) the towing of barges by towing

14 vessels in the waters specified in clause (i);

15 or

16 ‘‘(iii) engaging in dredging operations

17 in the waters specified in clause (i); and

18 ‘‘(B) includes any activity specified in sub19 paragraph (A) that is conducted in mixed wa20 ters.’’;

21 (8) by redesignating paragraph (15a) as para22 graph (15b);

23 (9) by inserting after paragraph (15) the fol24 lowing:

25 ‘‘(15a) ‘mixed waters’ means—
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1 ‘‘(A) the harbors and ports on the coasts

2 and Great Lakes of the United States; and

3 ‘‘(B) the rivers, canals, and other water4 ways tributary to the Great Lakes or to the

5 coastal harbors and coasts of the United States

6 inside the Boundary Line,

7 that the Secretary of Transportation determines to

8 be navigable by oceangoing vessels.’’;

9 (10) by redesignating paragraph (17a) as para10 graph (17b);

11 (11) by inserting after paragraph (17) the fol12 lowing:

13 ‘‘(17a) ‘noncontiguous trade’ means transpor14 tation by water of merchandise or passengers, or

15 towing by towing vessels—

16 ‘‘(A) between—

17 ‘‘(i) a point in the 48 continental

18 States and the District of Columbia; and

19 ‘‘(ii) a point in Hawaii, Alaska, Puer20 to Rico, Guam, the Virgin Islands, Amer21 ican Samoa, the Northern Mariana Is22 lands, or any other noncontiguous territory

23 or possession of the United States, as em24 braced within the coastwise laws of the

25 United States; or
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1 ‘‘(B) between 2 points described in sub2 paragraph (A)(ii).’’;

3 (12) in paragraph (21)(A)—

4 (A) in clause (ii), by striking ‘‘or’’ after

5 the semicolon;

6 (B) in clause (iii), by inserting ‘‘or’’ after

7 the semicolon; and

8 (C) by adding at the end the following new

9 clause:

10 ‘‘(iv) an individual who—

11 ‘‘(I) is a member of the family or

12 a guest of the owner or charterer; and

13 ‘‘(II) is not a passenger for

14 hire;’’;

15 (13) by striking paragraph (40) and inserting

16 the following:

17 ‘‘(40) ‘towing vessel’ means any commercial

18 vessel engaged in, or that a person intends to use to

19 engage in, the service of—

20 ‘‘(A) towing, pulling, pushing, or hauling

21 alongside (or any combination thereof); or

22 ‘‘(B) assisting in towing, pulling, pushing,

23 or hauling alongside;’’; and

24 (14) by inserting after paragraph (40) the fol25 lowing new paragraphs:
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1 ‘‘(40a) ‘towing of a vessel by a towing vessel be2 tween points’ means attaching a towing vessel to a

3 towed vessel (including any barge) at 1 point and re4 leasing the towed vessel from the towing vessel at

5 another point, regardless of the origin or ultimate

6 destination of either the towed vessel or the towing

7 vessel; and

8 ‘‘(40b) ‘transportation of merchandise or pas9 sengers by water between points’ means, without re10 gard to the origin or ultimate destination of the

11 merchandise or passengers involved—

12 ‘‘(A) in the case of merchandise, loading

13 merchandise at 1 point and permanently un14 loading the merchandise at another point; or

15 ‘‘(B) in the case of passengers, embarking

16 passengers at 1 point and permanently dis17 embarking the passengers at another point.’’.

18 SEC. 3. DOCUMENTATION.

19 (a) DEFINITIONS.—Section 12101(b)(2) of title 46,

20 United States Code, is amended—

21 (1) by striking paragraph (2) and inserting the

22 following:

23 ‘‘(2) ‘license’, ‘enrollment and license’, ‘license

24 for the coastwise (or coasting) trade’, ‘enrollment

25 and license for the coastwise (or coasting) trade’,
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1 and ‘enrollment and license to engage in the foreign

2 and coastwise (or coasting) trade on the northern,

3 northeastern, and northwestern frontiers, otherwise

4 than by sea’ mean a coastwise endorsement provided

5 in section 12106.’’;

6 (2) by striking paragraph (3); and

7 (3) by redesignating paragraph (4) as para8 graph (3).

9 (b) VESSELS ELIGIBLE FOR DOCUMENTATION.—Sec10 tion 12102(a) of title 46, United States Code, is amend11 ed—

12 (1) by striking all that precedes paragraph (5)

13 and inserting the following:

14 ‘‘(a) A vessel of at least 5 net tons that is not reg15 istered under the laws of a foreign country or that is not

16 titled in a State is eligible for documentation if—

17 ‘‘(1)(A) the vessel is owned by an individual

18 who is a citizen of the United States, or a corpora19 tion, association, trust, joint venture, partnership,

20 limited liability company, or other entity that is a

21 citizen of the United States; and

22 ‘‘(B) the owner of the vessel is capable of hold23 ing title to a vessel under the laws of the United

24 States or under the laws of a State;’’; and
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1 (2) by redesignating paragraphs (5) and (6) as

2 paragraphs (2) and (3), respectively.

3 (c) COASTWISE ENDORSEMENTS.—Section 12106 of

4 title 46, United States Code, is amended to read as fol5 lows:

6 ‘‘§ 12106. Coastwise endorsements and certificates

7 ‘‘(a) IN GENERAL.—A certificate of documentation

8 may be endorsed with a coastwise endorsement for a vessel

9 that is eligible for documentation.

10 ‘‘(b) ELIGIBILITY.—

11 ‘‘(1) IN GENERAL.—Any of the following vessels

12 may be issued a certificate to engage in the coast13 wise trade if the Secretary of Transportation makes

14 a finding, pursuant to information obtained and fur15 nished by the Secretary of State, that the govern16 ment of the nation of registry of such vessel extends

17 reciprocal privileges to vessels of the United States

18 to engage in the transportation of merchandise or

19 passengers (or both) in its coastwise trade:

20 ‘‘(A) A foreign qualified vessel (as defined

21 in section 2101(11d)).

22 ‘‘(B) A vessel of foreign registry—

23 ‘‘(i) if the vessel is subject to a demise

24 or bareboat charter, for the duration of

25 that charter, to a person or entity that
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1 would be eligible to document that vessel if

2 that person or entity were the owner of the

3 vessel; or

4 ‘‘(ii) that engages irregularly in the

5 coastwise trade of the United States.

6 ‘‘(2) VESSEL ENGAGING IRREGULARLY IN THE

7 COASTWISE TRADE.—For purposes of this sub8 section, a vessel engages irregularly in the coastwise

9 trade of the United States if that vessel—

10 ‘‘(A) during any 60-day period does not

11 make, in the aggregate, more than 4 calls to

12 United States ports; and

13 ‘‘(B) during any calendar year does not

14 make, in the aggregate, more than 6 calls to

15 United States ports.

16 ‘‘(c) EMPLOYMENT IN THE COASTWISE TRADE.—

17 Subject to the applicable laws of the United States regu18 lating the coastwise trade and trade with Canada, only

19 a vessel with a certificate of documentation endorsed with

20 a coastwise endorsement or with a certificate issued under

21 subsection (b) may be employed in the coastwise trade.’’.

22 (d) INLAND WATERWAYS ENDORSEMENTS.—Section

23 12107 of title 46, United States Code, is amended to read

24 as follows:
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1 ‘‘§ 12107. Inland waterways endorsements

2 ‘‘A certificate of documentation may be endorsed with

3 an inland waterways endorsement for a vessel that—

4 ‘‘(1) is eligible for documentation; and

5 ‘‘(2)(A) was built in the United States; or

6 ‘‘(B) was not built in the United States; but

7 was—

8 ‘‘(i) captured in war by citizens of the

9 United States and lawfully condemned as prize;

10 ‘‘(ii) adjudged to be forfeited for a breach

11 of the laws of the United States; or

12 ‘‘(iii) is qualified for documentation under

13 section 4136 of the Revised Statutes (46 App.

14 U.S.C. 14).’’.

15 (e) LIMITATIONS ON OPERATIONS AUTHORIZED BY

16 CERTIFICATES.—Section 12110(b) of title 46, United

17 States Code, is amended—

18 (1) by striking ‘‘coastwise trade’’ and inserting

19 ‘‘coastwise trade or inland waterways trade’’; and

20 (2) by striking ‘‘that trade’’ and inserting

21 ‘‘those trades’’.
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1 SEC. 4. TRANSPORTATION OF MERCHANDISE IN THE

2 COASTWISE AND INLAND WATERWAYS

3 TRADES.

4 (a) IN GENERAL.—Section 27 of the Merchant Ma5 rine Act, 1920 (46 U.S.C. App. 883) is amended to read

6 as follows:

7 ‘‘SEC. 27. PROHIBITION.

8 ‘‘No merchandise, including merchandise owned by

9 the United States Government, a State (as defined in sec10 tion 2101 of title 46, United States Code), or a political

11 subdivision of a State, and including material without

12 value, shall be transported by water, on penalty of forfeit13 ure of the merchandise (or a monetary amount not to ex14 ceed the value of the merchandise, as determined by the

15 Secretary of the Treasury, or the actual cost of the trans16 portation, whichever is greater, to be recovered from any

17 cosigner, seller, owner, importer, consignee, agent, or

18 other person that transports or causes the merchandise

19 to be transported by water)—

20 ‘‘(1) in the coastwise trade, in any vessel other

21 than—

22 ‘‘(A) a vessel documented with a coastwise

23 endorsement under section 12106(a) of title 46,

24 United States Code; or

25 ‘‘(B) a vessel that has been issued coast26 wise certification under section 12106(b) of title
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1 46, United States Code, that is in effect for en2 gaging in the transportation of merchandise; or

3 ‘‘(2) in the inland waterways trade in any vessel

4 other than a vessel documented with an inland wa5 terways endorsement under section 12107 of title

6 46, United States Code.’’.

7 (b) REPEAL.—Section 27A of the Merchant Marine

8 Act, 1920 (46 App. U.S.C. 883–1) is repealed.

9 SEC. 5. TRANSPORTATION OF PASSENGERS.

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

11 1886 (24 Stat. 81, chapter 421; 46 U.S.C. App. 289) is

12 amended to read as follows:

13 ‘‘SEC. 8. PROHIBITION.

14 ‘‘No passengers shall be transported by water, on

15 penalty of $200 for each passenger so transported or the

16 actual cost of the transportation, whichever is greater, to

17 be recovered from the vessel so transporting the pas18 senger—

19 ‘‘(1) in the coastwise trade, in any vessel other

20 than—

21 ‘‘(A) a vessel documented with a coastwise

22 endorsement under section 12106 of title 46,

23 United States Code; or

24 ‘‘(B) a vessel that has been issued a coast25 wise certification under section 12106(b) of title
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1 46, United States Code, that is in effect for en2 gaging in the transportation of merchandise;

3 and

4 ‘‘(2) in the inland waterways trade, in any ves5 sel other than a vessel documented with an inland

6 waterways endorsement under section 12107 of title

7 46, United States Code.’’.

8 (b) REPEALS.—The following provisions are repealed:

9 (1) The Act of April 26, 1938 (52 Stat. 223,

10 chapter 174; 46 U.S.C. App. 289a).

11 (2) Section 12(22) of the Maritime Act of 1981

12 (46 U.S.C. App. 289b).

13 (3) Public Law 98–563 (46 U.S.C. App. 289c).

14 SEC. 6. TOWING AND SALVAGING OPERATIONS.

15 Section 4370(a) of the Revised Statutes (46 U.S.C.

16 App. 316(a)) is amended to read as follows:

17 ‘‘(a)(1) No vessel (including any barge), other than

18 a vessel in distress, may be towed—

19 ‘‘(A) in the coastwise trade by any vessel other

20 than—

21 ‘‘(i) a vessel documented with a coastwise

22 endorsement under section 12106(a) of title 46,

23 United States Code; or

24 ‘‘(ii) a vessel registered in a foreign coun25 try, if the Secretary of the Treasury finds, pur-
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1 suant to information furnished by the Secretary

2 of State, that the government of that foreign

3 country and the government of the country of

4 which each ultimate owner of the towing vessel

5 is a citizen extend reciprocal privileges to ves6 sels of the United States to tow vessels (includ7 ing barges) in the coastal waters of that coun8 try; or

9 ‘‘(B) in the inland waterways trade by any ves10 sel other than a vessel documented with an inland

11 waterways endorsement under section 12107 of title

12 46, United States Code.

13 ‘‘(2)(A) The owner and master of any vessel that

14 tows another vessel (including a barge) in violation of this

15 section shall each be liable to the United States Govern16 ment for a civil penalty in an amount not less than $250

17 and not greater than $1,000. The penalty shall be enforce18 able through the district court of the United States for

19 any district in which the offending vessel is found.

20 ‘‘(B) A penalty specified in subparagraph (A) shall

21 constitute a lien upon the offending vessel, and that vessel

22 shall not be granted clearance until that penalty is paid.

23 ‘‘(C) In addition to the penalty specified in subpara24 graph (A), the offending vessel shall be liable to the Unit25 ed States Government for a civil penalty in an amount
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1 equal to $50 per ton of the measurement of the vessel

2 towed in violation of this section, which shall be recover3 able in a libel or other enforcement action conducted

4 through the district court for the United States for the

5 district in which the offending vessel is found.’’.

6 SEC. 7. CITIZENSHIP AND TRANSFER PROVISIONS.

7 (a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS,

8 AND ASSOCIATIONS.—Section 2 of the Shipping Act, 1916

9 (46 U.S.C. App. 802) is amended—

10 (1) in subsection (a)—

11 (A) by inserting a period after ‘‘possession

12 thereof’’; and

13 (B) by striking all that follows the period

14 inserted in subparagraph (A) through the end

15 of the subsection; and

16 (2) by striking subsection (c).

17 (b) APPROVAL OF TRANSFER OF REGISTRY OR OP18 ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR

19 FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.—

20 Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808)

21 is amended—

22 (1) by striking subsection (c) and inserting the

23 following:

24 ‘‘(c) Except as provided in section 611 of the Mer25 chant Marine Act, 1936 (46 U.S.C. App. 1181) and sec-
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1 tion 31322(a)(1)(D) of title 46, United States Code, a

2 person may not, without the approval of the Secretary of

3 Transportation—

4 ‘‘(1) place under foreign registry—

5 ‘‘(A) a documented vessel; or

6 ‘‘(B) a vessel with respect to which the last

7 documentation was made under the laws of the

8 United States;

9 ‘‘(2) operate a vessel referred to in paragraph

10 (1) under the authority of a foreign government; or

11 ‘‘(3) scrap or transfer for scrapping a vessel re12 ferred to in paragraph (1) in a foreign country.’’;

13 and

14 (2) by striking subsection (d) and inserting the

15 following:

16 ‘‘(d)(1) A person that places a documented vessel

17 under foreign registry, operates that vessel under the au18 thority of a foreign country, or scraps or transfers for

19 scrapping that vessel in a foreign country—

20 ‘‘(A) in violation of this section and knowing

21 that that placement, operation, scrapping, or trans22 fer for scrapping is a violation of this section shall,

23 upon conviction, be fined under title 18, United

24 States Code, imprisoned for not more than 5 years,

25 or both; or
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1 ‘‘(B) otherwise in violation of this section shall

2 be liable to the United States Government for a civil

3 penalty of not more than $10,000 for each violation.

4 ‘‘(2) A documented vessel may be seized by, and for5 feited to, the United States Government if that vessel is

6 placed under foreign registry, operated under the author7 ity of a foreign country, or scrapped or transferred for

8 scrapping in a foreign country in violation of this sec9 tion.’’.

10 SEC. 8. LABOR PROVISIONS.

11 (a) LIABILITY FOR INJURY OR DEATH OF MASTER

12 OR CREW MEMBER.—Section 20(a) of the Act of March

13 4, 1915 (38 Stat. 1185, chapter 153; 46 U.S.C. App.

14 688(a)), is amended—

15 (1) by inserting ‘‘(1)’’ after ‘‘(a)’’;

16 (2) by adding at the end of paragraph (1) (as

17 designated under paragraph (1) of this subsection)

18 the following new sentence: ‘‘In an action brought

19 under this subsection against a defendant employer

20 that does not reside or maintain an office in the

21 United States (including any territory or possession

22 of the United States) and that engages in any enter23 prise that makes use of 1 or more ports in the Unit24 ed States (as defined in section 2101 of title 46,

25 United States Code), jurisdiction shall be under the
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1 district court most proximate to the place of the oc2 currence of the personal injury or death that is the

3 subject of the action.’’; and

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

5 paragraph:

6 ‘‘(2)(A) The employer of a master or member of the

7 crew of a vessel—

8 ‘‘(i) may, at the election of the employer, par9 ticipate in an authorized compensation plan under

10 the Longshore and Harbor Workers’ Compensation

11 Act (33 U.S.C. 901 et seq.); and

12 ‘‘(ii) if the employer makes an election under

13 clause (i), notwithstanding section 2(3)(G) of the

14 Longshore and Harbor Workers’ Compensation Act

15 (33 U.S.C. 902(3)(G)), shall be subject to that Act.

16 ‘‘(B) If an employer makes an election, in accordance

17 with subparagraph (A), to participate in an authorized

18 compensation plan under the Longshore and Harbor

19 Workers’ Compensation Act—

20 ‘‘(i) a master or crew member employed by that

21 employer shall be considered to be an employee for

22 the purposes of that Act; and

23 ‘‘(ii) the liability of that employer under that

24 Act to the master or crew member, or to any person

25 otherwise entitled to recover damages from the em-
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1 ployer based on the injury, disability, or death of the

2 master or crew member, shall be exclusive and in

3 lieu of all other liability.’’.

4 (b) MINIMUM REQUIREMENTS.—All vessels, whether

5 documented in the United States or not, operating in the

6 coastwise trade of the United States shall be subject to

7 minimum international labor standards for seafarers

8 under international agreements in force for the United

9 States, as determined by the Secretary of Transportation

10 on the advice of the Secretaries of Labor and Defense.

11 SEC. 9. REGULATIONS REGARDING VESSELS.

12 (a) APPLICABLE MINIMUM REQUIREMENTS.—Except

13 as provided in paragraph (2), the minimum requirements

14 for vessels engaging in the transportation of cargo or mer15 chandise in the United States coastwise trade shall be the

16 recognized international standards in force for the United

17 States (as determined by the Secretary of the department

18 in which the Coast Guard is operating, in consultation

19 with any other official of the Federal Government that the

20 Secretary determines to be appropriate).

21 (b) CONSISTENCY IN APPLICATION OF STAND22 ARDS.—In any case in which any minimum requirement

23 for vessels referred to in paragraph (1) is inconsistent with

24 a minimum that is applicable to vessels that are docu25 mented in a foreign country and that are admitted to en-
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1 gage in the transportation of cargo and merchandise in

2 the United States coastwise trade, the standard applicable

3 to United States documented vessels shall be deemed to

4 be the standard applicable to vessels that are documented

5 in a foreign country.

6 (c) MINIMUM REQUIREMENTS FOR VESSELS.—As

7 used in this subsection, the term ‘‘minimum requirements

8 for vessels’’ means, with respect to vessels (including Unit9 ed States documented vessels and foreign documented ves10 sels), all safety, manning, inspection, construction, and

11 equipment requirements applicable to those vessels in

12 United States coastwise passenger trade, to the extent

13 that those requirements are consistent with applicable

14 international law and treaties to which the United States

15 is a signatory.

16 SEC. 10. ENVIRONMENT.

17 All vessels, whether documented under the laws of the

18 United States or not, regularly engaging in the United

19 States coastwise trade shall comply with all applicable

20 State and Federal environmental statutes.

21 SEC. 11. GENERAL REQUIREMENTS.

22 Each person or entity that is not a citizen of the

23 United States, as defined in section 2101(3a) of title 46,

24 United States Code, that owns or operates vessels that
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1 regularly engage in the United States domestic coastwise

2 trade shall—

3 (1) establish a corporation or other corporate

4 entity and qualify under the laws of that State

5 where the corporation or corporate entity is estab6 lished to do business in the United States;

7 (2) name an officer of the corporation or cor8 porate entity upon whom process may be served;

9 (3) abide by all applicable laws of the United

10 States and the State where the corporation or cor11 porate entity is established; and

12 (4) post evidence of—

13 (A) financial responsibility in amounts as

14 considered necessary by the Secretary of Trans15 portation for the business activities of the cor16 poration or corporate entity; and

17 (B) compliance with all applicable United

18 States laws.

Æ