Union Calendar No. 104

103D CONGRESS

1ST SESSION H. R. 1964

[Report No. 103–182]

A BILL

To authorize appropriations for the Maritime Adpurposes. ministration for fiscal year 1994, and for other

JULY 19, 1993

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 104

103D CONGRESS

1ST SESSION H. R. 1964

[Report No. 103–182]

To authorize appropriations for the Maritime Administration for fiscal year

1994, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 4, 1993

Mr. LIPINSKI (for himself, Mr. STUDDS, Mr. BATEMAN, Mr. FIELDS of Texas,

and Mr. TAUZIN) introduced the following bill; which was referred to the

Committee on Merchant Marine and Fisheries

JULY 19, 1993

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 4, 1993]

A BILL

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,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Maritime Administra3 tion Authorization Act for Fiscal Year 1994’’.

4 SEC. 2. AUTHORIZATIONS FOR MARITIME ADMINISTRA5 TION.

6 (a) AUTHORIZATIONS.—In fiscal year 1994, the follow7 ing amounts are authorized to be appropriated for the Mar8 itime Administration (Department of Transportation):

9 (1) Any amounts necessary to liquidate obliga10 tions under operating-differential subsidy contracts

11 for the fiscal year 1994 portion of the total contract

12 authority.

13 (2) $41,013,000 for expenses related to man14 power, education, and training, including—

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

16 the United States Merchant Marine Academy at

17 Kings Point, New York;

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

19 maritime academies (including for reimburse20 ment of fuel costs associated with the operation

21 of training vessels), of which $1,200,000 may be

22 used for training simulators for the State mari23 time academies; and

24 (C) $1,792,000 for manpower and addi25 tional training.
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1 (3) $30,713,000 for operating programs, includ2 ing—

3 (A) $19,989,000 for general administration;

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

5 water transportation systems; and

6 (C) $1,741,000 for research, technology, and

7 analysis.

8 (4) $254,355,000 for expenses related to national

9 security support capabilities, including—

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

11 Reserve Fleet;

12 (B) $1,418,000 for emergency planning and

13 operations; and

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

15 Force, including—

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

17 operations programs in support of the

18 Ready Reserve Force; and

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

20 Force facilities.

21 (5) $4,000,000 to pay administrative costs relat22 ed to new loan guarantee commitments under title XI

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

24 1271 et seq.), relating to Federal ship mortgage insur25 ance.
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1 (6) $50,000,000 for costs (as that term is defined

2 in section 502 of the Federal Credit Reform Act of

3 1990 (2 U.S.C. 661a)) of new loan guarantee commit4 ments under title XI of the Merchant Marine Act,

5 1936 (46 App. U.S.C. 1271 et seq.).

6 (7) $242,000 for assistance to the Massachusetts

7 Center for Marine Environmental Protection located

8 at the Massachusetts Maritime Academy.

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

10 any other provision of law, the Secretary of Transportation

11 may use proceeds derived from the sale or disposal of Na12 tional Defense Reserve Fleet vessels that are currently col13 lected and retained by the Maritime Administration for fa14 cility and ship maintenance, modernization and repair, ac15 quisition of equipment, training simulators, and fuel costs

16 necessary to maintain training at the United States Mer17 chant Marine Academy and the State maritime academies.

18 SEC. 3. NATIONAL SHIPBUILDING ENHANCEMENT INSTI19 TUTES.

20 (a) DESIGNATION BY SECRETARY OF TRANSPOR21 TATION.—The Secretary of Transportation may designate

22 National Shipbuilding Enhancement Institutes.

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

24 Institute may include—
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1 (1) vessel construction and repair technology de2 velopment with an emphasis on improving the pro3 ductivity of United States shipyards through innova4 tive design, engineering, or operations;

5 (2) enhancing the international competitiveness

6 of domestic shipyards in ship construction and re7 pair;

8 (3) documenting and forecasting international

9 and domestic trends in ship construction and repair;

10 (4) fostering innovations in the domestic ship11 building marketing system; and

12 (5) providing technical support on shipbuilding

13 practices.

14 (c) SUBMISSION OF APPLICATIONS.—An institution

15 seeking designation as a National Shipbuilding Enhance16 ment Institute shall submit an application under regula17 tions prescribed by the Secretary.

18 (d) DESIGNATION CRITERIA.—The Secretary shall des19 ignate an Institute under this section on the basis of the

20 following criteria:

21 (1) The research and extension resources avail22 able to the designee for carrying out the activities

23 specified in subsection (b).

24 (2) The existence of an established program of

25 the designee encompassing research, education, and
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1 training directed to enhancing shipbuilding indus2 tries.

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

4 evaluate pertinent information from national and

5 international sources and to disseminate results of

6 shipbuilding industry research and educational pro7 grams.

8 (4) The qualification of the designee as a non9 profit institution of maritime or higher education.

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

11 a matching basis, to any institute designated under sub12 section (a), from amounts appropriated.

13 SEC. 4. REIMBURSEMENT OF CERTAIN FEES BY STATE MAR14 ITIME ACADEMIES.

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

16 the Merchant Marine Act, 1936 (46 App. U.S.C. 1295c(d))

17 is amended by adding at the end the following:

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

19 under this subsection shall require a State maritime acad20 emy to reimburse each qualified individual for any fee or

21 charge for which the individual is liable to the United

22 States for—

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

24 chapter 71 of title 46, United States Code;
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1 ‘‘(ii) the first issuance of a merchant mariner’s

2 document under chapter 73 of that title;

3 ‘‘(iii) an evaluation or examination for such a

4 license or merchant mariner’s document conducted be5 fore the end of the period described in subparagraph

6 (D)(ii); or

7 ‘‘(iv) an application for such a license, merchant

8 mariner’s document, evaluation, or examination.

9 ‘‘(B) A State maritime academy shall reimburse quali10 fied individuals under subparagraph (A) to the extent

11 amounts are available under subparagraph (C).

12 ‘‘(C) In addition to annual payments under para13 graph (1)(A) and subject to the availability of appropria14 tions, the Secretary shall annually pay to each State mari15 time academy that enters into an agreement under para16 graph (1) amounts to reimburse qualified individuals under

17 subparagraph (A).

18 ‘‘(D) In this paragraph, the term ‘qualified individual’

19 means an individual who—

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

21 maritime academy;

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

23 merchant mariner’s document described in subpara24 graph (A) not later than three months after the date
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1 the individual graduates from a State maritime acad2 emy; and

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

4 subparagraph (A).’’.

5 (b) EFFECTIVE DATE.—The amendment made by sub6 section (a) is effective October 1, 1993.

7 (c) AMENDMENT OF EXISTING AGREEMENTS.—As soon

8 as practicable after the date of the enactment of this Act,

9 the Secretary of Transportation shall amend agreements

10 under section 1304(d) of the Merchant Marine Act, 1936

11 (46 App. U.S.C. 1295c(d)) pursuant to the amendment

12 made by subsection (a).

13 (d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—In

14 addition to amounts authorized to be appropriated for as15 sistance to State maritime academies, there is authorized

16 to be appropriated $300,000 for fiscal year 1994 to reim17 burse qualified individuals pursuant to the amendment

18 made by subsection (a).

19 SEC. 5. NATIONAL MARITIME ENHANCEMENT INSTITUTES.

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

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

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

23 partial matching basis to an Institute designated under

24 subsection (a) from amounts appropriated.’’.
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1 SEC. 6. TERMINATION OF CONDITION FOR STATE MARITIME

2 ACADEMY ASSISTANCE.

3 (a) IN GENERAL.—Section 1304(f)(1) of the Merchant

4 Marine Act, 1936 (46 App. U.S.C. 1295c(f)(1)) is amended

5 to read as if section 3 of the Act of October 13, 1989 (Public

6 Law 101–115; 103 Stat. 692), had not been enacted.

7 (b) EFFECTIVE DATE.—The amendment made by sub8 section (a) shall be effective October 13, 1989.

9 (c) CLERICAL AMENDMENTS.—

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

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

12 (2) Section 706 of the Federal Maritime Com13 mission Authorization Act of 1990 (46 App. U.S.C.

14 1295c note) is repealed.

15 SEC. 7. MAINTENANCE CONTRACTS FOR NATIONAL DE16 FENSE RESERVE FLEET VESSELS.

17 The Secretary of Transportation may enter into a con18 tract for the maintenance of the National Defense Reserve

19 Fleet, including the Ready Reserve Force, only for—

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

21 towing, or lay-up of a vessel;

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

23 or

24 (3) obtaining maintenance technical services

25 when—
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1 (A) the technical expertise required for that

2 service is beyond the capabilities of the Fleet

3 staff or when the Fleet has insufficient personnel

4 resources to adequately maintain the Fleet; and

5 (B) the contract does not result in reducing

6 employment at the Fleet site.

7 SEC. 8. MAINTENANCE OF READY RESERVE FORCE VESSELS

8 IN REDUCED OPERATING STATUS.

9 The Secretary shall, during fiscal year 1994, maintain

10 in a reduced operating status—

11 (1) at least 29 vessels in the Ready Reserve Force

12 component of the National Defense Reserve Fleet, or

13 (2) a lesser number of those vessels that the Sec14 retary determines to be practicable based on the ap15 propriations available for that fiscal year for mainte16 nance of vessels in that Force.

17 SEC. 9. VESSEL REPAIR AND MAINTENANCE PILOT PRO18 GRAM.

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

20 shall conduct a pilot program to evaluate the feasibility of

21 using long-term contracts for the maintenance and repair

22 of outported vessels in the Ready Reserve Force to enhance

23 the readiness of those vessels. Under the pilot program, the

24 Secretary, subject to the availability of appropriations and
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1 within 6 months after the date of the enactment of this Act,

2 shall award 9 contracts for this purpose.

3 (b) USE OF VARIOUS CONTRACTING ARRANGE4 MENTS.—In conducting a pilot program under this section,

5 the Secretary of Transportation shall use contracting ar6 rangements similar to those used by the Department of De7 fense for procuring maintenance and repair of its vessels.

8 (c) CONTRACT REQUIREMENTS.—Each contract with

9 a shipyard under this section shall—

10 (1) subject to subsection (d), provide for the pro11 curement from the shipyard of all repair and mainte12 nance (including activation, deactivation, and

13 drydocking) for one vessel in the Ready Reserve Force

14 that is outported in the geographical vicinity of the

15 shipyard; and

16 (2) be effective for 3 years.

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

18 contract under this section may not provide for the procure19 ment of operation or manning for a vessel that may be pro20 cured under another contract for the vessel to which section

21 11(d)(2) of the Merchant Ship Sales Act of 1946 (50 App.

22 U.S.C. 1744(d)(2)) applies.

23 (e) GEOGRAPHIC DISTRIBUTION.—The Secretary shall

24 seek to award contracts under this section to shipyards that

25 are distributed throughout the United States.
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1 (f) REPORTS.—The Secretary shall submit to the Con2 gress—

3 (1) an interim report on the effectiveness of each

4 contract under this section in providing for economic

5 and efficient repair and maintenance of the vessel

6 covered by the contract, by not later than 20 months

7 after the date of the enactment of this Act; and

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

9 later than 6 months after the termination of all con10 tracts awarded pursuant to this section.

11 SEC. 10. GEOGRAPHIC DISTRIBUTION OF READY RESERVE

12 FORCE VESSELS.

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

14 of the enactment of this Act, the Secretary of Transpor15 tation shall submit a report to the Congress which describes

16 where vessels in the Ready Reserve Force will be located

17 in fiscal year 1994.

18 (b) CONSIDERATION OF PORTS IN LOCATING VES19 SELS.—In selecting locations where Ready Reserve Force

20 vessels will be outported, the Secretary of Transportation

21 shall consider ports that have historically been involved in

22 outporting of those vessels.

23 SEC. 11. MARITIME POLICY REPORT.

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

25 transmit to the Congress a report setting forth the Depart-
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1 ment of Transportation’s policies for the 5-year period

2 beginning October 1, 1993, with respect to—

3 (1) fostering and maintaining a United States

4 merchant marine capable of meeting economic and

5 national security requirements;

6 (2) improving the vitality and competitiveness of

7 the United States merchant marine and the maritime

8 industrial base, including ship repairers, ship9 builders, ship manning, ship operators, and ship sup10 pliers;

11 (3) reversing the precipitous decrease in the

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

13 the Nation’s shipyard and repair capability;

14 (4) stabilizing and eventually increasing the

15 number of mariners available to crew United States

16 merchant vessels;

17 (5) achieving adequate manning of merchant

18 vessels for national security needs during a mobiliza19 tion;

20 (6) ensuring that sufficient civil maritime re21 sources will be available to meet defense deployment

22 and essential economic requirements in support of our

23 national security strategy;

24 (7) ensuring that the United States maintains

25 the capability to respond unilaterally to security
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1 threats in geographic areas not covered by alliance

2 commitments and otherwise meets sealift requirements

3 in the event of crisis or war;

4 (8) ensuring that international agreements and

5 practices do not place United States maritime indus6 tries at an unfair competitive disadvantage in world

7 markets;

8 (9) ensuring that Federal agencies promote,

9 through efficient application of laws and regulations,

10 the readiness of the United States merchant marine

11 and supporting industries; and

12 (10) any other relevant maritime policies.

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

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

15 President’s budget submission, pursuant to section 1105 of

16 title 31, United States Code, for fiscal year 1995.

17 SEC. 12. PILOT PROGRAM ON SEALIFT TRAINING.

18 The Secretary of Transportation shall establish a 3-

19 year pilot program for Sealift Training at the Massachu20 setts Maritime Academy.

21 SEC. 13. SPECIAL RULE FOR VESSEL CONSTRUCTION GUAR22 ANTEES.

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

24 title XI of the Merchant Marine Act, 1936 (46 App. U.S.C.

25 1271 et seq.), in guaranteeing an obligation under that title
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1 with amounts appropriated for fiscal year 1994, the Sec2 retary of Transportation shall guarantee an amount of

principal or interest (or both) that is equal to 871 3 ⁄2 percent

4 of the actual cost or depreciated actual cost (as those terms

5 are defined in that title) of the vessel or facility that is used

6 as security for the guarantee.

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

8 guarantee of an obligation if the Secretary determines

9 that—

10 (1) special economic circumstances exist; and

11 (2) there is good cause for guaranteeing a lesser

12 percentage of principal or interest (or both) author13 ized by that title.

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