IIA

103D CONGRESS

1ST SESSION H. R. 1964

IN THE SENATE OF THE UNITED STATES

JULY 30 (legislative day, JUNE 30), 1993

Received; read twice and referred to the Committee on Commerce, Science,

and Transportation

AN ACT

To authorize appropriations for the Maritime Administration

for fiscal year 1994, 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 ‘‘Maritime Administra5 tion Authorization Act for Fiscal Year 1994’’.

6 SEC. 2. AUTHORIZATIONS FOR MARITIME ADMINISTRA7 TION.

8 (a) AUTHORIZATIONS.—In fiscal year 1994, the fol9 lowing amounts are authorized to be appropriated for the

10 Maritime Administration (Department of Transportation):
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1 (1) Any amounts necessary to liquidate obliga2 tions under operating-differential subsidy contracts

3 for the fiscal year 1994 portion of the total contract

4 authority.

5 (2) $41,013,000 for expenses related to man6 power, education, and training, including—

7 (A) $28,877,000 for maritime training at

8 the United States Merchant Marine Academy at

9 Kings Point, New York;

10 (B) $10,344,000 for assistance to the

11 State maritime academies (including for reim12 bursement of fuel costs associated with the op13 eration of training vessels), of which

14 $1,200,000 may be used for training simulators

15 for the State maritime academies; and

16 (C) $1,792,000 for manpower and addi17 tional training.

18 (3) $30,713,000 for operating programs, in19 cluding—

20 (A) $19,989,000 for general administra21 tion;

22 (B) $8,983,000 for development and use of

23 water transportation systems; and

24 (C) $1,741,000 for research, technology,

25 and analysis.
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1 (4) $254,355,000 for expenses related to na2 tional security support capabilities, including—

3 (A) $6,937,000 for the National Defense

4 Reserve Fleet;

5 (B) $1,418,000 for emergency planning

6 and operations; and

7 (C) $246,000,000 for the Ready Reserve

8 Force, including—

9 (i) $242,000,000 for maintenance and

10 operations programs in support of the

11 Ready Reserve Force; and

12 (ii) $4,000,000 for Ready Reserve

13 Force facilities.

14 (5) $4,000,000 to pay administrative costs re15 lated to new loan guarantee commitments under title

16 XI of the Merchant Marine Act, 1936 (46 App.

17 U.S.C. 1271 et seq.), relating to Federal ship mort18 gage insurance.

19 (6) $50,000,000 for costs (as that term is de20 fined in section 502 of the Federal Credit Reform

21 Act of 1990 (2 U.S.C. 661a)) of new loan guarantee

22 commitments under title XI of the Merchant Marine

23 Act, 1936 (46 App. U.S.C. 1271 et seq.).
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1 (7) $242,000 for assistance to the Massachu2 setts Center for Marine Environmental Protection

3 located at the Massachusetts Maritime Academy.

4 (b) USE OF PROCEEDS OF SALES.—Notwithstanding

5 any other provision of law, the Secretary of Transpor6 tation may use proceeds derived from the sale or disposal

7 of National Defense Reserve Fleet vessels that are cur8 rently collected and retained by the Maritime Administra9 tion for facility and ship maintenance, modernization and

10 repair, acquisition of equipment, training simulators, and

11 fuel costs necessary to maintain training at the United

12 States Merchant Marine Academy and the State maritime

13 academies.

14 SEC. 3. NATIONAL SHIPBUILDING ENHANCEMENT INSTI15 TUTES.

16 (a) DESIGNATION BY SECRETARY OF TRANSPOR17 TATION.—The Secretary of Transportation may designate

18 National Shipbuilding Enhancement Institutes.

19 (b) ACTIVITIES.—Activities undertaken by such an

20 Institute may include—

21 (1) vessel construction and repair technology

22 development with an emphasis on improving the pro23 ductivity of United States shipyards through innova24 tive design, engineering, or operations;
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1 (2) enhancing the international competitiveness

2 of domestic shipyards in ship construction and re3 pair;

4 (3) documenting and forecasting international

5 and domestic trends in ship construction and repair;

6 (4) fostering innovations in the domestic ship7 building marketing system; and

8 (5) providing technical support on shipbuilding

9 practices.

10 (c) SUBMISSION OF APPLICATIONS.—An institution

11 seeking designation as a National Shipbuilding Enhance12 ment Institute shall submit an application under regula13 tions prescribed by the Secretary.

14 (d) DESIGNATION CRITERIA.—The Secretary shall

15 designate an Institute under this section on the basis of

16 the following criteria:

17 (1) The research and extension resources avail18 able to the designee for carrying out the activities

19 specified in subsection (b).

20 (2) The existence of an established program of

21 the designee encompassing research, education, and

22 training directed to enhancing shipbuilding indus23 tries.

24 (3) The ability of the designee to assemble and

25 evaluate pertinent information from national and
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1 international sources and to disseminate results of

2 shipbuilding industry research and educational pro3 grams.

4 (4) The qualification of the designee as a non5 profit institution of maritime or higher education.

6 (e) GRANTS.—The Secretary may make an award, on

7 a matching basis, to any institute designated under sub8 section (a), from amounts appropriated.

9 SEC. 4. REIMBURSEMENT OF CERTAIN FEES BY STATE

10 MARITIME ACADEMIES.

11 (a) CONDITION OF ASSISTANCE.—Section 1304(d) of

12 the Merchant Marine Act, 1936 (46 App. U.S.C.

13 1295c(d)) is amended by adding at the end the following:

14 ‘‘(3)(A) Subject to subparagraph (B), an agreement

15 under this subsection shall require a State maritime acad16 emy to reimburse each qualified individual for any fee or

17 charge for which the individual is liable to the United

18 States for—

19 ‘‘(i) the issuance of an entry level license under

20 chapter 71 of title 46, United States Code;

21 ‘‘(ii) the first issuance of a merchant mariner’s

22 document under chapter 73 of that title;

23 ‘‘(iii) an evaluation or examination for such a li24 cense or merchant mariner’s document conducted
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1 before the end of the period described in subpara2 graph (D)(ii); or

3 ‘‘(iv) an application for such a license, mer4 chant mariner’s document, evaluation, or examina5 tion.

6 ‘‘(B) A State maritime academy shall reimburse

7 qualified individuals under subparagraph (A) to the extent

8 amounts are available under subparagraph (C).

9 ‘‘(C) In addition to annual payments under para10 graph (1)(A) and subject to the availability of appropria11 tions, the Secretary shall annually pay to each State mari12 time academy that enters into an agreement under para13 graph (1) amounts to reimburse qualified individuals

14 under subparagraph (A).

15 ‘‘(D) In this paragraph, the term ‘qualified individ16 ual’ means an individual who—

17 ‘‘(i) is attending or is a graduate of a State

18 maritime academy;

19 ‘‘(ii) fulfills the requirements for a license or

20 merchant mariner’s document described in subpara21 graph (A) not later than three months after the date

22 the individual graduates from a State maritime

23 academy; and

24 ‘‘(iii) is liable for a fee or charge described in

25 subparagraph (A).’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) is effective October 1, 1993.

3 (c) AMENDMENT OF EXISTING AGREEMENTS.—As

4 soon as practicable after the date of the enactment of this

5 Act, the Secretary of Transportation shall amend agree6 ments under section 1304(d) of the Merchant Marine Act,

7 1936 (46 App. U.S.C. 1295c(d)) pursuant to the amend8 ment made by subsection (a).

9 (d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—

10 In addition to amounts authorized to be appropriated for

11 assistance to State maritime academies, there is author12 ized to be appropriated $300,000 for fiscal year 1994 to

13 reimburse qualified individuals pursuant to the amend14 ment made by subsection (a).

15 SEC. 5. NATIONAL MARITIME ENHANCEMENT INSTITUTES.

16 Section 8(e) of the Act of October 13, 1989 (46 App.

17 U.S.C. 1121–2(e)), is amended to read as follows:

18 ‘‘(e) The Secretary may make awards on an equal

19 or partial matching basis to an Institute designated under

20 subsection (a) from amounts appropriated.’’.

21 SEC. 6. TERMINATION OF CONDITION FOR STATE MARI22 TIME ACADEMY ASSISTANCE.

23 (a) IN GENERAL.—Section 1304(f)(1) of the Mer24 chant Marine Act, 1936 (46 App. U.S.C. 1295c(f)(1)) is

25 amended to read as if section 3 of the Act of October 13,
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1 1989 (Public Law 101–115; 103 Stat. 692), had not been

2 enacted.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall be effective October 13, 1989.

5 (c) CLERICAL AMENDMENTS.—

6 (1) Section 3 of the Act of October 13, 1989

7 (Public Law 101–115; 103 Stat. 692), is repealed.

8 (2) Section 706 of the Federal Maritime Com9 mission Authorization Act of 1990 (46 App. U.S.C.

10 1295c note) is repealed.

11 SEC. 7. MAINTENANCE CONTRACTS FOR NATIONAL DE12 FENSE RESERVE FLEET VESSELS.

13 The Secretary of Transportation may enter into a

14 contract for the maintenance of the National Defense Re15 serve Fleet, including the Ready Reserve Force, only for—

16 (1) the repair, activation, operation, berthing,

17 towing, or lay-up of a vessel;

18 (2) a vessel used by a State maritime academy;

19 or

20 (3) obtaining maintenance technical services

21 when—

22 (A) the technical expertise required for

23 that service is beyond the capabilities of the

24 Fleet staff or when the Fleet has insufficient
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1 personnel resources to adequately maintain the

2 Fleet; and

3 (B) the contract does not result in reduc4 ing employment at the Fleet site.

5 SEC. 8. MAINTENANCE OF READY RESERVE FORCE VES6 SELS IN REDUCED OPERATING STATUS.

7 The Secretary shall, during fiscal year 1994, main8 tain in a reduced operating status—

9 (1) at least 29 vessels in the Ready Reserve

10 Force component of the National Defense Reserve

11 Fleet, or

12 (2) a lesser number of those vessels that the

13 Secretary determines to be practicable based on the

14 appropriations available for that fiscal year for

15 maintenance of vessels in that Force.

16 SEC. 9. VESSEL REPAIR AND MAINTENANCE PILOT PRO17 GRAM.

18 (a) IN GENERAL.—The Secretary of Transportation

19 shall conduct a pilot program to evaluate the feasibility

20 of using long-term contracts for the maintenance and re21 pair of outported vessels in the Ready Reserve Force to

22 enhance the readiness of those vessels. Under the pilot

23 program, the Secretary, subject to the availability of ap24 propriations and within 6 months after the date of the
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1 enactment of this Act, shall award 9 contracts for this

2 purpose.

3 (b) USE OF VARIOUS CONTRACTING ARRANGE4 MENTS.—In conducting a pilot program under this sec5 tion, the Secretary of Transportation shall use contracting

6 arrangements similar to those used by the Department of

7 Defense for procuring maintenance and repair of its

8 vessels.

9 (c) CONTRACT REQUIREMENTS.—Each contract with

10 a shipyard under this section shall—

11 (1) subject to subsection (d), provide for the

12 procurement from the shipyard of all repair and

13 maintenance (including activation, deactivation, and

14 drydocking) for one vessel in the Ready Reserve

15 Force that is outported in the geographical vicinity

16 of the shipyard; and

17 (2) be effective for 3 years.

18 (d) LIMITATION ON WORK UNDER CONTRACTS.—A

19 contract under this section may not provide for the pro20 curement of operation or manning for a vessel that may

21 be procured under another contract for the vessel to which

22 section 11(d)(2) of the Merchant Ship Sales Act of 1946

23 (50 App. U.S.C. 1744(d)(2)) applies.
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1 (e) GEOGRAPHIC DISTRIBUTION.—The Secretary

2 shall seek to award contracts under this section to ship3 yards that are distributed throughout the United States.

4 (f) REPORTS.—The Secretary shall submit to the

5 Congress—

6 (1) an interim report on the effectiveness of

7 each contract under this section in providing for eco8 nomic and efficient repair and maintenance of the

9 vessel covered by the contract, by not later than 20

10 months after the date of the enactment of this Act;

11 and

12 (2) a final report on that effectiveness, by not

13 later than 6 months after the termination of all con14 tracts awarded pursuant to this section.

15 SEC. 10. GEOGRAPHIC DISTRIBUTION OF READY RESERVE

16 FORCE VESSELS.

17 (a) REPORT.—Not later than 60 days after the date

18 of the enactment of this Act, the Secretary of Transpor19 tation shall submit a report to the Congress which de20 scribes where vessels in the Ready Reserve Force will be

21 located in fiscal year 1994.

22 (b) CONSIDERATION OF PORTS IN LOCATING VES23 SELS.—In selecting locations where Ready Reserve Force

24 vessels will be outported, the Secretary of Transportation
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1 shall consider ports that have historically been involved in

2 outporting of those vessels.

3 SEC. 11. MARITIME POLICY REPORT.

4 (a) REPORT.—The Secretary of Transportation shall

5 transmit to the Congress a report setting forth the De6 partment of Transportation’s policies for the 5-year period

7 beginning October 1, 1993, with respect to—

8 (1) fostering and maintaining a United States

9 merchant marine capable of meeting economic and

10 national security requirements;

11 (2) improving the vitality and competitiveness

12 of the United States merchant marine and the mari13 time industrial base, including ship repairers, ship14 builders, ship manning, ship operators, and ship

15 suppliers;

16 (3) reversing the precipitous decrease in the

17 number of ships in the United States-flag fleet and

18 the Nation’s shipyard and repair capability;

19 (4) stabilizing and eventually increasing the

20 number of mariners available to crew United States

21 merchant vessels;

22 (5) achieving adequate manning of merchant

23 vessels for national security needs during a mobiliza24 tion;
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1 (6) ensuring that sufficient civil maritime re2 sources will be available to meet defense deployment

3 and essential economic requirements in support of

4 our national security strategy;

5 (7) ensuring that the United States maintains

6 the capability to respond unilaterally to security

7 threats in geographic areas not covered by alliance

8 commitments and otherwise meets sealift require9 ments in the event of crisis or war;

10 (8) ensuring that international agreements and

11 practices do not place United States maritime indus12 tries at an unfair competitive disadvantage in world

13 markets;

14 (9) ensuring that Federal agencies promote,

15 through efficient application of laws and regulations,

16 the readiness of the United States merchant marine

17 and supporting industries; and

18 (10) any other relevant maritime policies.

19 (b) DATE OF TRANSMITTAL.—The report required

20 under subsection (a) shall be transmitted along with the

21 President’s budget submission, pursuant to section 1105

22 of title 31, United States Code, for fiscal year 1995.
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1 SEC. 12. PILOT PROGRAM ON SEALIFT TRAINING.

2 The Secretary of Transportation shall establish a 3-

3 year pilot program for Sealift Training at the Massachu4 setts Maritime Academy.

5 SEC. 13. SPECIAL RULE FOR VESSEL CONSTRUCTION GUAR6 ANTEES.

7 (a) IN GENERAL.—Notwithstanding any provision of

8 title XI of the Merchant Marine Act, 1936 (46 App.

9 U.S.C. 1271 et seq.), in guaranteeing an obligation under

10 that title with amounts appropriated for fiscal year 1994,

11 the Secretary of Transportation shall guarantee an

12 amount of principal or interest (or both) that is equal to

871 13 ⁄2 percent of the actual cost or depreciated actual cost

14 (as those terms are defined in that title) of the vessel or

15 facility that is used as security for the guarantee.

16 (b) EXCEPTION.—Subsection (a) shall not apply to

17 the guarantee of an obligation if the Secretary determines

18 that—

19 (1) special economic circumstances exist; and

20 (2) there is good cause for guaranteeing a less21 er percentage of principal or interest (or both) au22 thorized by that title.

23 SEC. 14. WAIVERS FOR CERTAIN VESSELS.

24 (a) IN GENERAL.—Notwithstanding sections 12106,

25 12107, and 12108 of title 46, United States Code, and

26 section 27 of the Merchant Marine Act, 1920 (46 App.
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1 U.S.C. 883), the Secretary of Transportation may issue

2 a certificate of documentation for the following vessels:

3 (1) AFTERSAIL (United States official num4 ber 689427).

5 (2) ALEXANDRIA (United States official

6 number 586490).

7 (3) ARIEL (United States official number

8 954762).

9 (4) BRANDARIS (Rhode Island registration

10 number 2848N; former United States official num11 ber 263174).

12 (5) COMPASS ROSE (United States official

13 number 695865).

14 (6) DIXIE (United States official number

15 513159).

16 (7) GRAY (Connecticut State vessel number

17 CT5944AJ).

18 (8) GYPSY COWBOY (United States official

19 number 550771).

20 (9) IMPATIENT LADY (United States official

21 number 553952).

22 (10) ISLAND GIRL (United States official

23 number 674840).

24 (11) LAURISA (United States official number

25 924052).
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1 (12) MARINER (United States official number

2 285452).

3 (13) MOONSHINE (United States official

4 number 974226).

5 (14) MYSTIQUE (United States official num6 ber 921194).

7 (15) NORTHERN LIGHT (United States offi8 cial number 237510).

9 (16) PLAY PRETTY (United States official

10 number 975346).

11 (17) PRINCE OF TIDES II (United States of12 ficial number 903858).

13 (18) SHILOH (United States official number

14 902675).

15 (19) SWELL DANCER (United States official

16 number 622046).

17 (20) TESSA (United States official number

18 675130).

19 (21) TOP DUCK (United States official num20 ber 990973).

21 SEC. 15. PROHIBITION ON TRANSFER.

22 Notwithstanding any other provision of law, the Sec23 retary of Transportation may not approve the transfer of

24 a United States-documented oceangoing merchant vessel

25 that is of 3,000 gross tons or more (or that type of a
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1 vessel the last documentation of which was under the laws

2 of the United States) to a foreign registry under section

3 9(c) of the Shipping Act, 1916 (46 App. U.S.C. 808)

4 through December 31, 1994.

5 SEC. 16. AMENDMENTS RELATING TO COAST GUARD MARI6 TIME ACADEMY RESERVE TRAINING PRO7 GRAM.

8 (a) NAVAL RESERVE STATUS.—Section 1304(g)(2)

9 of the Merchant Marine Act, 1936 (46 App. U.S.C.

10 1304(g)(2)) is amended by inserting before the period the

11 following: ‘‘, unless the individual participates in the Coast

12 Guard Maritime Academy Reserve Training Program’’.

13 (b) RESERVE SERVICE OBLIGATION.—Section

14 1304(g)(3)(D) of the Merchant Marine Act, 1936 (46

15 App. U.S.C. 1304(g)(3)(D)) is amended by—

16 (1) inserting ‘‘(i)’’ after ‘‘commissioned officer’’;

17 (2) inserting ‘‘(except as provided in clause

18 (ii))’’ after ‘‘the United States Coast Guard Re19 serve’’; and

20 (3) inserting before the semicolon at the end

21 the following: ‘‘; or (ii) in the United States Coast

22 Guard Reserve for such period following that date of

23 graduation as may be established by the Secretary

24 of the department in which the Coast Guard is oper25 ating, in the case of an individual that participates
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1 in the Coast Guard Maritime Academy Reserve

2 Training Program;’’.

3 (c) PENALTIES FOR FAILURE TO FULFILL INCEN4 TIVE PAYMENT AGREEMENT.—Section 1304(g) of the

5 Merchant Marine Act, 1936 (46 App. U.S.C. 1304(g)) is

6 amended—

7 (1) in paragraph (4) by inserting ‘‘, except as

8 provided in paragraph (8),’’ after ‘‘such individual

9 may’’;

10 (2) in paragraph (5) by inserting ‘‘, except as

11 provided in paragraph (8),’’ after ‘‘such individual

12 may’’; and

13 (3) by adding at the end the following:

14 ‘‘(8)(A) Paragraphs (4) and (5) shall not apply to

15 a failure to fulfill a part of an agreement, by an individual

16 who—

17 ‘‘(i) is enlisted in the United States Coast

18 Guard Reserve; and

19 ‘‘(ii) participates in the Coast Guard Maritime

20 Academy Reserve Training Program.

21 ‘‘(B) If the Secretary determines that an individual

22 described in subparagraph (A) has failed to fulfill any part

23 of the agreement (required by paragraph (1)) described

24 in paragraph (3), the individual may be ordered to active

25 duty in the Coast Guard to serve for a period of time de-
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1 termined by the Commandant of the Coast Guard, not to

2 exceed 2 years. In cases of hardship as determined by the

3 Secretary, the Secretary may waive this subparagraph.’’.

4 (d) COAST GUARD MARITIME ACADEMY RESERVE

5 TRAINING PROGRAM DEFINED.—Section 1304(g) of the

6 Merchant Marine Act, 1936 (46 App. U.S.C. 1304(g)), as

7 amended by this section, is further amended by adding

8 at the end the following:

9 ‘‘(9) In this subsection, the term ‘Coast Guard Mari10 time Academy Reserve Training Program’ means that

11 program established by the Commandant of the Coast

12 Guard, as in effect on the date of the enactment of the

13 Maritime Administration Authorization Act for Fiscal

14 Year 1994.’’.

15 SEC. 17. COMPLIANCE WITH BUY AMERICAN ACT.

16 No funds appropriated pursuant to this Act may be

17 expended by an entity unless the entity agrees that in ex18 pending the assistance the entity will comply with sections

19 2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–

20 10c, popularly known as the ‘‘Buy American Act’’).

21 SEC. 18. SENSE OF CONGRESS; REQUIREMENT REGARDING

22 NOTICE.

23 (a) PURCHASE OF AMERICAN-MADE EQUIPMENT

24 AND PRODUCTS.—In the case of any equipment or prod25 ucts that may be authorized to be purchased with financial
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1 assistance provided under this Act, it is the sense of the

2 Congress that entities receiving such assistance should, in

3 expending the assistance, purchase only American-made

4 equipment and products.

5 (b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In

6 providing financial assistance under this Act, the head of

7 each Federal agency shall provide to each recipient of the

8 assistance a notice describing the statement made in sub9 section (a) by the Congress.

10 SEC. 19. PROHIBITION OF CONTRACTS.

11 If it has been finally determined by a court or Federal

12 agency that any person intentionally affixed a label bear13 ing a ‘‘Made in America’’ inscription, or any inscription

14 with the same meaning, to any product sold in or shipped

15 to the United States that is not made in the United

16 States, such person shall be ineligible to receive any con17 tract or subcontract made with funds provided pursuant

18 to this Act, pursuant to the debarment, suspension, and

19 ineligibility procedures described in section 9.400 through

20 9.409 of title 48, Code of Federal Regulations.

Passed the House of Representatives July 29, 1993.

Attest: DONNALD K. ANDERSON,

Clerk.

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