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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1510 Reported in Senate (RS)]

                                                       Calendar No. 786
106th CONGRESS
  2d Session
                                S. 1510

                          [Report No. 106-396]

 To revise the laws of the United States appertaining to United States 
                cruise vessels, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 9, 1999

Mr. McCain (for himself, Mrs. Hutchison, Mrs. Feinstein, Mr. Murkowski, 
Mr. Burns, Mr. Thurmond, Mr. Coverdell, and Mrs. Boxer) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

                           September 6, 2000

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

_______________________________________________________________________

                                 A BILL

 
 To revise the laws of the United States appertaining to United States 
                cruise vessels, 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; TABLE OF SECTIONS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``United 
States Cruise Ship Tourism Development Act of 1999''.</DELETED>
<DELETED>    (b) Table of Sections.--The table of sections for this Act 
is as follows:</DELETED>
<DELETED>Sec. 1. Short title; table of sections.
<DELETED>Sec. 2. Definitions.
                              <DELETED>Title I--Operations Under Permit
<DELETED>Sec. 101. Domestic cruise vessel.
<DELETED>Sec. 102. Domestic itinerary operating requirements.
<DELETED>Sec. 103. Certain operations prohibited.
<DELETED>Sec. 104. Limited employment of eligible cruise vessels in the 
                            coastwise trade of the United States.
<DELETED>Sec. 105. Priorities within domestic markets.
<DELETED>Sec. 106. Construction standards.
                              <DELETED>Title II--Post-Permit Operations 
                                        of Eligible Cruise Vessels
<DELETED>Sec. 201. Continued operation in domestic itinerary 
                            requirements.
                              <DELETED>Title III--Other Provisions
<DELETED>Sec. 301. Amendment of title XI of the Merchant Marine Act, 
                            1936
<DELETED>Sec. 302. Application with Jones Act and other Acts.
<DELETED>Sec. 303. Glacier Bay and other National Park Service area 
                            permits.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Eligible cruise vessel.--The term ``eligible 
        cruise vessel'' means a cruise vessel that--</DELETED>
                <DELETED>    (A) is documented under the laws of the 
                United States or the laws of another country;</DELETED>
                <DELETED>    (B) is not otherwise qualified to engage 
                in the coastwise trade between ports in the United 
                States;</DELETED>
                <DELETED>    (C) was delivered after January 1, 
                1980;</DELETED>
                <DELETED>    (D) provides a full range of overnight 
                accommodations, entertainment, dining, and other 
                services for its passengers;</DELETED>
                <DELETED>    (E) has a fixed smoke detection and 
                sprinkler system installed throughout the accommodation 
                and service spaces, or will have such a system 
                installed within the time period required by the 1992 
                Amendments to the Safety of Life at Sea Convention of 
                1974; and</DELETED>
                <DELETED>    (F) displaces--</DELETED>
                        <DELETED>    (i) greater than 20,000 gross 
                        registered tons; or</DELETED>
                        <DELETED>    (ii) more than 9,000 gross 
                        registered tons and has an all-suites luxury 
                        configuration with a minimum of 240 square feet 
                        per revenue room.</DELETED>
        <DELETED>    (2) Itinerary.--The term ``itinerary'' means the 
        route travelled by a cruise vessel on a single voyage that 
        begins at the first port of embarkation for passengers on that 
        voyage, includes each port at which the vessel docks before the 
        last port of disembarkation for such passengers, and ends at 
        that last port of disembarkation.</DELETED>
        <DELETED>    (3) Operating day.--The term ``operating day'' 
        means a day of the week on which a vessel embarks, transports, 
        or disembarks passengers.</DELETED>
        <DELETED>    (4) Operator.--The term ``operator'' means the 
        owner, operator, or charterer.</DELETED>
        <DELETED>    (5) Secretary.--The term ``Secretary'' means the 
        Secretary of Transportation.</DELETED>
        <DELETED>    (6) United States-flag vessel.--The term ``United 
        States-flag vessel'' means a vessel documented under subsection 
        (a) or (d) of section 12102 of title 46, United States 
        Code.</DELETED>

          <DELETED>TITLE I--OPERATIONS UNDER PERMIT</DELETED>

<DELETED>SEC. 101. DOMESTIC CRUISE VESSEL.</DELETED>

<DELETED>    (a) In General.--Notwithstanding the provisions of section 
8 of the Act of June 19, 1886 (46 U.S.C. App. 289), or any other 
provision of law, the Secretary may issue a permit for an eligible 
cruise vessel to operate in domestic itineraries in the transportation 
of passengers in the coastwise trade between ports in the United 
States.</DELETED>
<DELETED>    (b) Maximum Operating Days.--An eligible cruise vessel not 
documented under the laws of the United States that is operated under a 
permit issued by the Secretary under subsection (a) may not be operated 
under that permit for more than 200 operating days.</DELETED>
<DELETED>    (c) Expiration of Permit Authority.--Except as otherwise 
provided in section 201 of this Act, a permit issued by the Secretary 
under subsection (a) shall terminate December 31, 2006.</DELETED>
<DELETED>    (d) Operating Window.--The authority of the Secretary to 
issue a permit under subsection (a) begins on the day after the date of 
enactment of this Act and terminates on the day that is 3 years after 
that date.</DELETED>

<DELETED>SEC. 102. DOMESTIC ITINERARY OPERATING REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--Except as provided in section 104 of this 
Act, the Secretary may not approve an itinerary for a voyage commencing 
less than 1 year after the date of enactment of this Act requested by 
an eligible cruise vessel that is not documented under the laws of the 
United States.</DELETED>
<DELETED>    (b) Regulatory Requirements.--The Secretary may not issue 
a permit under section 101(a) for an eligible cruise vessel not 
documented under the laws of the United States unless the operator 
establishes to the satisfaction of the Secretary that, except as 
otherwise provided in this Act, the vessel will be operated in full 
compliance with all rules, regulations, and operating requirements 
relating to health, safety, environmental protection and other 
appropriate operational standards (as determined by the Secretary), 
that would apply to any United States-flag cruise vessel operating in 
domestic itineraries in the transportation of passengers under a permit 
issued under section 101(a). The Secretary shall issue final rules 
under this section within 180 days after the date of enactment of this 
Act.</DELETED>
<DELETED>    (c) Repairs.--</DELETED>
        <DELETED>    (1) In general.--The Secretary may not issue a 
        permit under section 101(a) for an eligible cruise vessel 
        unless the operator establishes to the satisfaction of the 
        Secretary that--</DELETED>
                <DELETED>    (A) any repair, maintenance, alteration, 
                or other preparation of the vessel for operation under 
                a permit issued under section 101(a) has been, or will 
                be, performed in a United States shipyard; 
                and</DELETED>
                <DELETED>    (B) any repair or maintenance of the 
                vessel after a permit is issued under that section and 
                before the expiration of the operating limitation 
                period in section 101(b) will be performed in a United 
                States shipyard.</DELETED>
        <DELETED>    (2) Waiver.--The Secretary may waive the 
        requirements of paragraph (1) if the Secretary finds that the 
        repair, maintenance, alterations, or other preparation services 
        are not available in the United States or if an emergency 
        dictates that the ship proceed to a foreign port.</DELETED>
<DELETED>    (d) Escrow Account.--The Secretary may not issue a permit 
under section 101(a) for an eligible cruise vessel unless the operator 
agrees to deposit $5 for each passenger embarking on that vessel while 
operating under the permit into the escrow fund established under 
section 1108 of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1270a).</DELETED>
<DELETED>    (e) Compliance.--If the Secretary determines that an 
eligible cruise vessel is not in compliance with any commitment made to 
the Secretary by its operator under this Act, the permit issued for 
that vessel under section 101(a) shall be null and void.</DELETED>

<DELETED>SEC. 103. CERTAIN OPERATIONS PROHIBITED.</DELETED>

<DELETED>    An eligible cruise vessel operating in domestic 
itineraries under a permit issued under section 101(a) may not--
</DELETED>
        <DELETED>    (1) operate as a ferry;</DELETED>
        <DELETED>    (2) regularly carry for hire both passengers and 
        vehicles or other cargo; or</DELETED>
        <DELETED>    (3) operate between or among the islands of 
        Hawaii.</DELETED>

<DELETED>SEC. 104. LIMITED EMPLOYMENT OF FOREIGN-FLAG CRUISE SHIPS IN 
              THE COASTWISE TRADE OF THE UNITED STATES.</DELETED>

<DELETED>    (a) In general.--Notwithstanding section 12106 of title 
46, United States Code, section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 883), and section 8 of the Act of June 19, 1886 (46 U.S.C. 
App. 289), the Secretary may approve the employment in the coastwise 
trade of the United States of an eligible cruise vessel operating under 
a permit issued under section 101(a) of this Act for repositioning as 
provided by under subsection (b) or for charter as provided by 
subsection (c).</DELETED>
<DELETED>    (b) Repositioning.--An eligible cruise vessel not 
documented under the laws of the United States operating under a permit 
issued under section 101(a) of this Act may be employed in the 
coastwise trade during the first year after the date of enactment of 
this Act for not more than 2 voyages, the coastwise trade portion of 
which does not exceed 2 weeks and includes transportation of passengers 
for hire--</DELETED>
        <DELETED>    (1) from one coast of the United States through 
        the Panama Canal to another coast of the United States; 
        or</DELETED>
        <DELETED>    (2) along one coast of the United States during a 
        voyage between 2 foreign countries.</DELETED>
<DELETED>    (c) Charters.--An eligible cruise vessel not documented 
under the laws of the United States operating under a permit issued 
under section 101(a) of this Act may be employed in the coastwise trade 
during the first year after the date of enactment of this Act if it is 
time-chartered to a charterer that--</DELETED>
        <DELETED>    (1) does not own or operate a cruise ship; 
        and</DELETED>
        <DELETED>    (2) is not affiliated with an owner or operator of 
        a cruise ship.</DELETED>
<DELETED>    (d) Priorities.--Section 105 applies to vessels employed 
in the coastwise trade under this section.</DELETED>

<DELETED>SEC. 105. PRIORITIES WITHIN DOMESTIC MARKETS.</DELETED>

<DELETED>    (a) In General.--The Secretary shall, by regulation, 
establish a priority system for cruise vessels providing passenger 
service in domestic itineraries within 180 days after the date of 
enactment of this Act.</DELETED>
<DELETED>    (b) Priority to U.S.-Built or U.S.-Rebuilt Vessels.--Under 
the regulations to be prescribed by the Secretary, a cruise vessel 
built or rebuilt in the United States and documented under the laws of 
the United States shall have priority over any other cruise vessel of 
comparable size operating in a comparable market under a permit issued 
under section 101(a).</DELETED>
<DELETED>    (c) Priority to U.S.-Flag Vessels.--The Secretary shall 
prescribe regulations under which a cruise vessel documented under the 
laws of the United States that is not built or rebuilt in the United 
States has priority over an eligible cruise vessel of comparable size 
not documented under the laws of the United States that is operating in 
a comparable market.</DELETED>
<DELETED>    (d) Factors Considered.--In determining and assigning 
priorities under the regulations, the Secretary shall consider, among 
other factors determined by the Secretary to be appropriate--</DELETED>
                <DELETED>    (A) the scope of a vessel's 
                itinerary;</DELETED>
                <DELETED>    (B) the time frame within which the vessel 
                will serve a particular itinerary; and</DELETED>
                <DELETED>    (C) the size of the vessel.</DELETED>
<DELETED>    (e) Implementation.--</DELETED>
        <DELETED>    (1) Intinerary submission required.--An eligible 
        cruise vessel may not be operated in a domestic itinerary 
        unless the operator has submitted a proposed itinerary for that 
        vessel, in accordance with this subsection, for cruise 
        itineraries for the calendar year beginning 2 years after the 
        date on which the itinerary is required to be submitted under 
        paragraph (2).</DELETED>
        <DELETED>    (2) Time and manner of submission.--Each operator 
        of an eligible cruise vessel to be operated in a domestic 
        itinerary shall submit a proposed itinerary to the Secretary in 
        the form required by the Secretary in February of each year 
        beginning after the date of enactment of this Act.</DELETED>
        <DELETED>    (3) Revisions and later submissions.--The 
        Secretary shall permit late submissions and revisions of 
        submissions after the final list of approved itineraries is 
        published under paragraph (4)(C) and before the date that is 90 
        days before the start date of a requested itinerary, but a late 
        submission or revision by a higher priority cruise vessel may 
        not displace a priority assigned on the basis of timely 
        submission by a lower priority cruise vessel. If operators of 
        comparable vessels submit comparable requests within 30 days of 
        each other, the priorities of this section apply at the 
        discretion of the Secretary.</DELETED>
        <DELETED>    (4) Scheduling.--</DELETED>
                <DELETED>    (A) Action by secretary.--Within 60 days 
                after receiving an itinerary submitted under this 
                subsection, the Secretary shall--</DELETED>
                        <DELETED>    (i) review the schedule for 
                        compliance with the priorities established by 
                        this section;</DELETED>
                        <DELETED>    (ii) advise affected cruise ship 
                        operators of any specific itinerary that is not 
                        available and the reason it is not available; 
                        and</DELETED>
                        <DELETED>    (iii) publish a proposed list of 
                        approved itineraries.</DELETED>
                <DELETED>    (B) Operators response.--If the Secretary 
                advises an operator under subparagraph (A)(ii) that a 
                requested itinerary is not available, the operator may 
                respond to the Secretary's advice within 30 days after 
                it is received by the operator by appealing the 
                Secretary's decision or by submitting a new itinerary 
                proposal.</DELETED>
                <DELETED>    (C) Resolution of conflicts.--As soon as 
                practicable after the end of the 30-day period 
                described in subparagraph (B), the Secretary shall--
                </DELETED>
                        <DELETED>    (i) resolve any appeals and 
                        consider new itinerary proposals;</DELETED>
                        <DELETED>    (ii) advise cruise ship operators 
                        who responded under subparagraph (B) of the 
                        Secretary's decision with respect to the appeal 
                        or the new itinerary proposal; and</DELETED>
                        <DELETED>    (iii) publish a final list of 
                        approved itineraries.</DELETED>
<DELETED>    (f) Itineraries Before Final List Is First Published.--
</DELETED>
        <DELETED>    (1) Requests.--For itineraries before the first 
        calendar year for which the Secretary publishes a final list of 
        approved itineraries under subsection (e), the operator of a 
        cruise vessel may submit a request for an itinerary to be 
        sailed before that calendar year.</DELETED>
        <DELETED>    (2) Conflicting higher priority use.--If the 
        itinerary submitted by an operator under paragraph (1) 
        conflicts with an itinerary in use by a vessel with a higher 
        priority under this section, the Secretary shall disapprove the 
        request and notify the operator of the disapproval and the 
        reason for the disapproval within 5 days (Saturdays, Sundays, 
        and legal public holidays (as defined in section 6103 of title 
        5, United States Code, excepted) after the request is 
        received.</DELETED>
        <DELETED>    (3) No initial conflict.--If the itinerary 
        submitted by an operator under paragraph (1) does not conflict 
        with an itinerary in use by a vessel with a higher priority 
        under this section, the Secretary shall publish the request and 
        the requested itinerary immediately. If, within 30 days after 
        the request is published, the operator of a cruise vessel with 
        a higher priority under this section requests the use of the 
        published itinerary, then the Secretary shall deny the 
        published request and approve the request for the higher 
        priority vessel. If no operator of a cruise vessel with a 
        higher priority under this section requests the use of the 
        published itinerary within 30 days after it is published, the 
        Secretary shall approve the requested itinerary and publish 
        notice of the approval.</DELETED>
        <DELETED>    (4) Publication of interim itineraries.--Until the 
        first publication of a final list of approved itineraries under 
        subsection (e), the Secretary shall publish, on a quarterly 
        basis, a list of itineraries approved under this 
        subsection.</DELETED>
<DELETED>    (g) Report.--The Secretary shall issue an annual report on 
the number of operating days used by each cruise vessel assigned a 
priority under this section.</DELETED>

<DELETED>SEC. 106. CONSTRUCTION STANDARDS.</DELETED>

<DELETED>    An eligible cruise vessel for which the Secretary has 
issued a permit under section 101(a) is deemed to be in compliance with 
the requirements of section 3309 of title 46, United States Code, if it 
meets the standards and conditions for the issuance of a control 
verification certificate for a cruise vessel documented under the laws 
of a foreign country embarking passengers in the United 
States.</DELETED>

     <DELETED>TITLE II--POST-PERMIT OPERATIONS OF ELIGIBLE CRUISE 
                           VESSELS</DELETED>

<DELETED>SEC. 201. CONTINUED OPERATION IN DOMESTIC ITINERARY 
              REQUIREMENTS.</DELETED>

<DELETED>    (a) In General.--After the expiration of its period of 
operations under a permit issued under section 101(a), an eligible 
cruise vessel not documented under the laws of the United States may 
not operate in domestic itineraries unless it meets the following 
conditions:</DELETED>
        <DELETED>    (1) Documentation.--The vessel has been issued a 
        certificate of documentation with a coastwise 
        endorsement.</DELETED>
        <DELETED>    (2) Operating crew; support staff.--Each member of 
        the vessel's operating crew licensed or certified by the United 
        States Coast Guard is a citizen or resident alien of the United 
        States as required by section 8103 of title 46, United States 
        Code, and each individual employed aboard the vessel who is not 
        a member of the operating crew is a citizen or permanent 
        resident of the United States.</DELETED>
<DELETED>    (b) Construction plan.--The operator of an eligible cruise 
vessel issued a permit under section 101(a) of this Act shall 
demonstrate to the satisfaction of the Secretary that, as of the date 
on which the vessel is documented under the laws of the United States--
</DELETED>
        <DELETED>    (1) it has a plan for the construction of a cruise 
        vessel in the United States; or</DELETED>
        <DELETED>    (2) it is a party to, or has made substantial 
        progress toward entering into, an enforceable contract for the 
        construction of such a vessel in the United States.</DELETED>
<DELETED>    (c) Expiration of Coastwise Endorsement.--The coastwise 
endorsement for an eligible cruise vessel operating under subsection 
(a) shall expire 24 months after the date on which construction is 
completed on the last vessel the operator of the eligible cruise vessel 
is obligated to construct in the United States under the contract 
described in subsection (b).</DELETED>
<DELETED>    (d) Reflagging under Foreign Registry.--Notwithstanding 
section 9(c) of the Shipping Act, 1916 (46 U.S.C. App. 808), the 
operator of an eligible cruise ship issued a certificate of 
documentation with a coastwise endorsement, or a cruise vessel 
constructed under a contract described in subsection (a)(4), may place 
that vessel under foreign registry. The Secretary shall revoke the 
coastwise endorsement for any such vessel placed under foreign registry 
under this subsection permanently. Any vessel the coastwise endorsement 
for which is revoked under this subsection is not eligible thereafter 
for coastwise endorsement.</DELETED>

             <DELETED>TITLE III--OTHER PROVISIONS</DELETED>

<DELETED>SEC. 301. AMENDMENT OF TITLE XI OF THE MERCHANT MARINE ACT, 
              1936.</DELETED>

<DELETED>    (a) Risk Factor.--Section 1103(h) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1103(h)) is amended by adding at the end 
thereof the following:</DELETED>
        <DELETED>    ``(5) For purposes of the risk factor described in 
        paragraph (3)(I), the Secretary shall consider an applicant for 
        a guarantee, or a commitment to guarantee, under subsection (a) 
        an obligation in connection with a contract described in 
        section 201(a)(4) of the United States Cruise Ship Tourism 
        Development Act of 1999 to possess the necessary operating 
        ability, experience, and expertise required if the applicant 
        demonstrates to satisfaction of the Secretary that its 
        personnel have the experience and ability to operate cruise 
        vessels.''.</DELETED>
<DELETED>    (b) Qualifications.--Section 1104A(b) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1274(b)) is amended by adding at the 
end thereof the following:</DELETED>
        <DELETED>    ``For purposes of paragraph (1), the Secretary 
        shall consider an obligor with a contract described in section 
        201(b)(2) of the United States Cruise Ship Tourism Development 
        Act of 1999 to possess the ability necessary to the adequate 
        operation and maintenance of the cruise vessel that serves as 
        security for the guarantee of the Secretary if the obligor 
        demonstrates to the satisfaction of the Secretary that its 
        personnel have the experience and ability to operate cruise 
        vessels.''.</DELETED>

<DELETED>SEC. 302. APPLICATION WITH JONES ACT AND OTHER ACTS.</DELETED>

<DELETED>    (a) In General.--Nothing in this Act affects or otherwise 
modifies the authority contained in--</DELETED>
        <DELETED>    (1) Public Law 87-77 (46 U.S.C. App. 289b) 
        authorizing the transportation of passengers and merchandise in 
        Canadian vessels between ports in Alaska and the United States; 
        or</DELETED>
        <DELETED>    (2) Public Law 98-563 (46 U.S.C. App. 289c) 
        permitting the transportation of passengers between Puerto Rico 
        and other United States ports.</DELETED>
<DELETED>    (b) Jones Act.--Nothing in this Act affects or modifies 
the Merchant Marine Act, 1920 (46 U.S.C. App. 861 et seq.).</DELETED>

<DELETED>SEC. 303. GLACIER BAY AND OTHER NATIONAL PARK SERVICE AREA 
              PERMITS.</DELETED>

<DELETED>    Notwithstanding the last sentence of section 3(g) of 
Public Law 91-383 (16 U.S.C. 1a-2(g)), the Secretary of the Interior, 
after consultation with the Secretary of Transportation, may issue new 
or otherwise available permits to United States-flag vessels carrying 
passengers for hire to enter Glacier Bay or any other area within the 
jurisdiction of the National Park Service. Any such permit shall not 
affect the rights of any person that, on the date of enactment of this 
Act, holds a valid permit to enter Glacier Bay or such other 
area.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

    (a) Short Title.--This Act may be cited as the ``United States 
Cruise Vessel Act''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Definitions.
                              Title I--Operations under Certificate of 
                                        Documentation
Sec. 101. Domestic cruise vessel.
Sec. 102. Repairs requirement.
Sec. 103. Construction requirement.
Sec. 104. Certain operations prohibited.
Sec. 105. Priorities within domestic markets.
Sec. 106. Report.
Sec. 107. Enforcement
                              Title II--Other Provisions
Sec. 201. Application with Jones Act and other Acts.
Sec. 202. Glacier Bay and other National Park Service area permits.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible cruise vessel.--The term ``eligible cruise 
        vessel'' means a cruise vessel that--
                    (A) was delivered after January 1, 1980;
                    (B) is at least 20,000 gross registered tons;
                    (C) has no fewer than 800 passenger berths;
                    (D) is owned by a person that is a citizen of the 
                United States for the purpose of operating a vessel in 
                the coastwise trade within the meaning of section 2 of 
                the Shipping Act, 1916 (46 U.S.C. 802) or section 
                12106(e) of title 46, United States Code;
                    (E) provides a full range of overnight 
                accommodations, entertainment, dining, and other 
                services for its passengers;
                    (F) has a fixed smoke detection and sprinkler 
                system installed throughout the accommodation and 
                service spaces, or will have such a system installed 
                within the time period required by the 1992 Amendments 
                to the Safety of Life at Sea Convention of 1974; and
                    (G) meets the eligibility requirements for a 
                certificate of inspection under section 1137(a) of the 
                Coast Guard Authorization Act of 1996 (46 U.S.C. App. 
                1187 nt.), and complies with the applicable 
                international agreements and associated guidelines 
                referred to in section 1137(a)(2) of that Act (46 
                U.S.C. 1187 nt.).
            (2) Itinerary.--The term ``itinerary'' means the route 
        travelled by a cruise vessel on a single voyage that begins at 
        the first port at which passengers on that voyage embark, 
        includes each port at which the vessel calls before the last 
        port at which passengers on that voyage disembark, and ends at 
        that last port of disembarkation. For purposes of this 
        paragraph, the term ``embark'' and ``disembark'' have the 
        meaning given those terms in section 4.80a(a)(4) of title 19, 
        Code of Federal Regulations (as such section is in effect on 
        the date of enactment of this Act).
            (3) Operator.--The term ``operator'' means the owner, 
        operator, or charterer.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (5) United States shipyard.--The term ``United States 
        shipyard'' means a shipyard located in the United States.
            (6) United States.--The term ``United States'' has the 
        meaning given that term in section 2101(44) of title 46, United 
        States Code.

         TITLE I--OPERATIONS UNDER CERTIFICATE OF DOCUMENTATION

SEC. 101. DOMESTIC CRUISE VESSEL.

    (a) In General.--Notwithstanding the provisions of section 8 of the 
Act of June 19, 1886 (46 U.S.C. App. 289), section 27 of the Act of 
June 5, 1920, commonly known as the Jones Act, (46 U.S.C. App. 883), 
section 27A of that Act, (46 U.S.C. App. 883-1), and section 12106 of 
title 46, United States Code, the Secretary shall issue a certificate 
of documentation with a temporary coastwise endorsement for an eligible 
cruise vessel not built in the United States to operate in domestic 
itineraries in the transportation of passengers in the coastwise trade 
between ports in the United States if the vessel meets the requirements 
of this title.
    (b) Termination of Authority.--The authority of the Secretary to 
issue a certificate of documentation under subsection (a) begins on the 
day after the date of enactment of this Act and terminates on the day 
that is 24 months after that date.
    (c) Application Only Required.--Notwithstanding subsection (b), the 
Secretary may issue a certificate of documentation under subsection (a) 
more than 24 months after the date of enactment of this Act if--
            (1) the Secretary received the application for the 
        certificate of documentation before the end of that 24-month 
        period; and
            (2) the vessel otherwise meets the requirements of this 
        title.
    (d) Rights Under Application Not Transferrable.--The right to 
receive a certification of documentation pursuant to an application 
described in subsection (c) may not be transferred by the applicant to 
any other person. For purposes of this subsection, the transfer of that 
right to a successor in interest to the applicant in connection with 
the reorganization, restructuring, acquisition, or sale of the 
applicant's business shall not be considered another person.

SEC. 102. REPAIRS REQUIREMENT.

    (a) In General.--The Secretary may not issue a certificate of 
documentation under section 101(a) for an eligible cruise vessel unless 
the operator establishes to the satisfaction of the Secretary that--
            (1) any repair, maintenance, alteration, or other 
        preparation of the vessel for operation under a certificate of 
        documentation issued under section 101(a) have been, or will 
        be, performed in a United States shipyard; and
            (2) any repair, maintenance, or alteration of the vessel 
        after a certificate of documentation is issued under that 
        section will be performed in a United States shipyard.
    (b) Waiver.--The Secretary may waive the requirements of subsection 
(a) if the Secretary finds that the repair, maintenance, alterations, 
or other preparation services are not available in the United States or 
if an emergency dictates that the vessel proceed to a foreign port.

SEC. 103. CONSTRUCTION REQUIREMENT.

    (a) Construction Contract Required.--
            (1) In general.--Except as provided in paragraph (2), a 
        vessel for which a certificate of documentation has been issued 
        under section 101(a) may not commence operations in the 
        coastwise trade until the operator of that vessel executes a 
        contract with one or more United States shipyards for the 
        construction of a total of 2 or more cruise vessels with a 
        total combined berth or stateroom capacity equal to at least 
        the total combined berth or stateroom capacity of that vessel. 
        If certificates of documentation are issued under section 
        101(a) for more than 1 vessel for an operator, the construction 
        contract required by the preceding sentence shall provide for 
        the construction of 1 more vessel than the number of vessels 
        for which certificates of documentation are issued with a total 
        combined berth or stateroom capacity equal to at least the 
        total combined berth or stateroom capacity of the vessels for 
        which the certificates of documentation are issued.
            (2) Demonstration of Capability Required.--For purposes of 
        this subsection, a construction contract for which financing is 
        not provided under title XI of the Merchant Marine Act, 1936 
        (46 U.S.C. App. 1101 et seq.) shall not be recognized as 
        meeting the requirements of paragraph (1) unless both the 
        operator and the shipyard are capable of completing the 
        contract. For purposes of this paragraph--
                    (A) an operator shall be considered to be capable 
                of completing such a contract if the operator meets the 
                standards set forth in sections 298.12, 298.13, and 
                298.14 of title 46, Code of Federal Regulations; and
                    (B) a shipyard shall be considered to be capable of 
                completing such a contract if the shipyard meets the 
                standards set forth in section 298.32(a) of that title.
    (b) Minimum Size Requirement.--For purposes of this section, a 
contract for the construction of a vessel shall be disregarded if that 
vessel--
            (1) will be less than 20,000 gross registered tons; or
            (2) will have fewer than 800 passenger berths.
    (c) Contract Terms.--
            (1) In general.--The contract required by subsection (a) 
        shall provide for delivery of the first such vessel not later 
        than 60 months after the date on which operations of the vessel 
        for which the certificate of documentation was issued commence, 
        and shall contain any other provisions required by the 
        Secretary for purposes of this subsection. If the contract 
        provides for the construction of more than 1 vessel, it shall 
        provide for delivery of each vessel subsequent to the first not 
        later than 24 months after delivery of the immediately 
        preceding vessel.
            (2) Extension of time periods for impossibility of 
        performance.--If the commencement of construction or the 
        completion of construction is prevented or delayed by 
        circumstances that would be recognized as providing a defense 
        of impossibility-of-performance by the shipyard under 
        applicable contract law, each time period in this Act related 
        to delivery of a vessel by that shipyard shall be extended for 
        whatever period of time the circumstance on which the defense 
        is predicated continues to exist.
    (d) Expiration of Coastwise Endorsement.--The coastwise endorsement 
for an eligible cruise vessel under section 101(a) shall expire 24 
months after the delivery date for the replacement vessel or vessels 
for that eligible cruise vessel. For purposes of this subsection, the 
term ``replacement vessel or vessels'' means 1 or more vessels the 
operator of the eligible cruise vessel is obligated to construct in the 
United States under the contract described in subsection (a) with 
respect to the eligible cruise vessel that have at least the same 
number of passenger berths as the eligible cruise vessel, or they, 
replace.
    (e) Reflagging Under Foreign Registry.--Notwithstanding section 
9(c) of the Shipping Act, 1916 (46 U.S.C. App. 808), the operator of an 
eligible cruise vessel issued a certificate of documentation with a 
temporary coastwise endorsement under section 101(a), or a cruise 
vessel constructed under a contract described in subsection (a) of this 
section, may place that vessel under foreign registry.

SEC. 104. CERTAIN OPERATIONS PROHIBITED.

    Neither an eligible cruise vessel operating in domestic itineraries 
under a certificate of documentation issued under section 101(a) nor a 
vessel constructed under a contract described in section 103(a) may--
            (1) operate as a ferry;
            (2) regularly carry for hire both passengers and vehicles 
        or other cargo; or
            (3) operate between or among the islands of Hawaii.

SEC. 105. PRIORITIES WITHIN DOMESTIC MARKETS.

    (a) Notification of Secretary.--
            (1) New vessels.--Any person eligible under section 12102 
        of title 46, United States Code, to document a vessel under 
        chapter 121 of that title that enters into a contract with a 
        United States shipyard for the construction of a cruise vessel 
        that--
                    (A) will be at least 20,000 gross registered tons,
                    (B) will have no fewer than 800 passenger berths, 
                and
                    (C) is otherwise eligible for a certificate of 
                documentation and a coastwise trade endorsement,
        shall notify the Secretary, at such time and in such manner and 
        form as the Secretary may require, of the construction of that 
        vessel not less than 2 full calendar years before the earliest 
        date on which the vessel is intended to commence operations.
            (2) Reconstruction.--The notification requirement of 
        paragraph (1) also applies to any such person that enters into 
        a contract with a United States shipyard for the reconstruction 
        of any vessel, including a vessel that has a certificate of 
        documentation under chapter 121 of title 46, United States 
        Code, will, after reconstruction, will be that size and 
        capacity and be eligible for such an endorsement.
    (b) Priority to U.S.-Built Vessels.--The Secretary shall give 
priority to any cruise vessel described in subsection (a) over any 
other cruise vessel of comparable operations in a comparable market 
under a certificate of documentation issued under section 101(a) if the 
Secretary, after notice and an opportunity for public comment, 
determines that the employment in the coastwise trade of the vessel 
issued a certificate of documentation under section 101(a) will 
adversely affect the coastwise trade business of any person operating a 
vessel not documented under section 101(a) in the coastwise trade.
    (c) Factors Considered.--In determining and assigning priorities, 
the Secretary shall consider, among other factors determined by the 
Secretary to be appropriate--
                    (A) the scope of a vessel's itinerary, including--
                            (i) the ports between which it operates; 
                        and
                            (ii) the duration of the cruise;
                    (B) the time frame within which the vessel will 
                serve a particular itinerary;
                    (C) the size of the vessel; and
                    (D) the retail per diem of the vessel.
    (d) Implementation.--
            (1) Intinerary submission required.--The Secretary shall 
        require the operator of each vessel issued a certificate of 
        documentation under section 101(a) to submit, in April of each 
        year, a proposed itinerary for that vessel for cruise 
        itineraries for the calendar year beginning 20 months after the 
        date on which the itinerary is required to be submitted.
            (2) Publication and Comment.--
                    (A) Publication.--The Secretary shall cause any 
                itinerary submitted under paragraph (1), and any late 
                submission or revision submitted under paragraph (3), 
                to be published in the Federal Register.
                    (B) Comment Period.--The Secretary shall receive 
                and consider comments from the public on any itinerary 
                published under subparagraph (A) for a period of 30 
                days after the date on which the itinerary is 
                published.
            (3) Revisions and later submissions.--The Secretary shall 
        permit late submissions and revisions of submissions after the 
        final list of approved itineraries is published under paragraph 
        (4)(C)(iii) and before the start date of a requested itinerary.
            (4) Scheduling.--
                    (A) Action by secretary.--Within 30 days after the 
                close of the comment period on an itinerary published 
                under paragraph (2)(A), the Secretary shall--
                            (i) review the itineraries submitted to the 
                        Secretary for compliance with the priorities 
                        established by this section;
                            (ii) advise affected cruise vessel 
                        operators of any specific itinerary that is not 
                        available and the reason it is not available; 
                        and
                            (iii) publish a proposed list of approved 
                        itineraries.
                    (B) Operators' appeals.--The operator of any 
                eligible cruise vessel may appeal the Secretary's 
                decision under subparagraph (A)(ii) within 30 days 
                after the Secretary advises the operator of the 
                decision.
                    (C) Resolution of conflicts.--As soon as 
                practicable after the end of the 30-day period 
                described in subparagraph (B), the Secretary shall--
                            (i) resolve any appeals and consider new 
                        itinerary proposals;
                            (ii) advise cruise vessel operators who 
                        responded under subparagraph (B) of the 
                        Secretary's decision with respect to the appeal 
                        or the new itinerary proposal; and
                            (iii) publish a final list of approved 
                        itineraries.

SEC. 106. REPORT.

    The Secretary shall issue an annual report on the number of vessels 
operating under certificate of documentations granted under section 
101(a), and on the progress of construction on vessels to replace those 
vessels under section 103.

SEC. 107. ENFORCEMENT.

    (a) Breach of Construction Contract by Operator.--The Secretary 
shall revoke a temporary coastwise endorsement issued under section 
101(a)(2) for a vessel if the operator of that vessel commits a serious 
breach of the construction contract required by section 103(a). The 
revocation shall take effect at the conclusion of the last voyage on 
the last cruise itinerary approved by the Secretary before the 
Secretary made the determination to revoke the endorsement.
    (b) Breach of Construction Contract by Shipyard.--
            (1) In general.--If a shipyard commits a serious breach of 
        a construction contract required by section 103(a) with an 
        operator of a vessel for which a certificate of documentation 
        granted under section 101(a)--
                    (A) the operator shall notify the Secretary 
                immediately of the breach; and
                    (B) the operator may continue to operate that 
                vessel as if the contract were in effect for a period 
                of 24 months after notification of the Secretary on the 
                condition that the operator will make good faith 
                efforts during that 24-month period to execute a 
                contract with a United States shipyard for the 
                construction of the vessels that were to have been 
                constructed under that contract.
            (2) Good faith effort required.--If the Secretary 
        determines at any time during that 24-month period that the 
        operator has ceased to make good faith efforts to execute such 
        a contract, then the Secretary shall immediately terminate the 
        operator's authority to continue operations under this 
        paragraph.
    (c) Substantial Breaches Only.--For purposes of subsections (a) and 
(b), the term ``serious breach of contract'' means a breach of contract 
for which an appropriate remedy under section 2-703 or 2-711 of the 
Uniform Commercial Code, as promulgated by the National Conference of 
Commissioners on Uniform State Law, is cancellation by the seller or 
buyer, respectively.

                       TITLE II--OTHER PROVISIONS

SEC. 201. APPLICATION WITH JONES ACT AND OTHER ACTS.

    (a) In General.--Nothing in this Act affects or otherwise modifies 
the authority contained in--
            (1) Public Law 87-77 (46 U.S.C. App. 289b) authorizing the 
        transportation of passengers and merchandise in Canadian 
        vessels between ports in Alaska and the United States; or
            (2) Public Law 98-563 (46 U.S.C. App. 289c) permitting the 
        transportation of passengers between Puerto Rico and other 
        United States ports.
            (3) Section 27A of the Act of the Merchant Marine Act, 1920 
        (46 U.S.C. App. 883-1).
            (4) Section 8109 of the Department of Defense 
        Appropriations Act, 1998.
    (b) Jones Act.--Except as in section 101(a), nothing in this Act 
affects or modifies the Merchant Marine Act, 1920 (46 U.S.C. App. 861 
et seq.).

SEC. 202. GLACIER BAY AND OTHER NATIONAL PARK SERVICE AREA PERMITS.

    (a) In General.--The Secretary of the Interior, after consultation 
with the Secretary of Transportation, shall issue new or otherwise 
available permits to United States-flag vessels carrying passengers for 
hire to enter Glacier Bay or any other area within the jurisdiction of 
the National Park Service. Any such permit shall not affect the rights 
of any person that, on the date of enactment of this Act, holds a valid 
permit to enter Glacier Bay or such other area.
    (b) New Permits Not Authorized.--Subsection (a) does not authorize 
the Secretary of the Interior to issue new permits, but, if new permits 
are authorized under any other provision of law, they shall be awarded 
in accordance with subsection (a).

                                                       Calendar No. 786

106th CONGRESS

  2d Session

                                S. 1510

                          [Report No. 106-396]

_______________________________________________________________________

                                 A BILL

 To revise the laws of the United States appertaining to United States 
                cruise vessels, and for other purposes.

_______________________________________________________________________

                           September 6, 2000

                       Reported with an amendment
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