100 
for any Level 1 or Level 2 acquisition program or project 
of the Coast Guard, the Commandant shall include in the 
report a written certification, with a supporting expla-
nation, that— 
(1) the capability or asset or capability or asset 
class to be acquired under the program or project is 
essential to the accomplishment of Coast Guard mis-
sions; 
(2) there are no alternatives to such capability 
or asset or capability or asset class which will provide 
equal or greater capability in both a more cost-effec-
tive and timely manner; 
(3) the new acquisition schedule and estimates 
for total acquisition cost are reasonable; and 
(4) the management structure for the acquisition 
program is adequate to manage and control perform-
ance, cost, and schedule. 
SEC. 531. REPORT ON FORMER COAST GUARD OFFICIALS 
EMPLOYED BY CONTRACTORS TO THE AGEN-
CY. 
(a) REPORT REQUIRED.—Not later than December 31, 
2009, and annually thereafter, the Comptroller General of 
the United States shall submit a report to the appropriate 
congressional committees on the employment during the 
preceding year by Coast Guard contractors of individuals 
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who were Coast Guard officials in the previous 5-year pe-
riod. The report shall assess the extent to which former 
Coast Guard officials were provided compensation by Coast 
Guard contractors in the preceding calendar year. 
(b) OBJECTIVES OF REPORT.—At a minimum, the re-
port required by this section shall assess the extent to which 
former Coast Guard officials who receive compensation from 
Coast Guard contractors have been assigned by those con-
tractors to work on contracts or programs between the con-
tractor and the Coast Guard, including contracts or pro-
grams for which the former official personally had oversight 
responsibility or decisionmaking authority when they 
served in or worked for the Coast Guard. 
(c) CONFIDENTIALITY REQUIREMENT.—The report re-
quired by this subsection shall not include the names of the 
former Coast Guard officials who receive compensation from 
Coast Guard contractors. 
(d) ACCESS TO INFORMATION.—A Coast Guard con-
tractor shall provide the Comptroller General access to in-
formation requested by the Comptroller General for the pur-
pose of conducting the study required by this section. 
(e) DEFINITIONS.—In this section: 
(1) COAST
GUARD
CONTRACTOR.—The term 
‘‘Coast Guard contractor’’ includes any person that 
received at least $10,000,000 in contractor awards 
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from the Coast Guard in the calendar year covered by 
the annual report. 
(2) COAST GUARD OFFICIAL.—The term ‘‘Coast 
Guard official’’ includes former officers of the Coast 
Guard who were compensated at a rate of pay for 
grade O–7 or above during the calendar year prior to 
the date on which they separated from the Coast 
Guard, and former civilian employees of the Coast 
Guard who served at any level of the Senior Executive 
Service under subchapter VIII of chapter 53 of title 
5, United States Code, during the calendar year prior 
to the date on which they separated from the Coast 
Guard. 
SEC. 532. DEPARTMENT OF DEFENSE CONSULTATION. 
(a) IN GENERAL.—The Commandant shall make ar-
rangements as appropriate with the Secretary of Defense 
for support in contracting and management of Coast Guard 
acquisition programs. The Commandant shall also seek op-
portunities to make use of Department of Defense contracts, 
and contracts of other appropriate agencies, to obtain the 
best possible price for capabilities and assets acquired for 
the Coast Guard. 
(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 
Commandant may enter into a memorandum of under-
standing or a memorandum of agreement with the Sec-
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retary of the Navy to obtain the assistance of the Office of 
the Assistant Secretary of the Navy for Research, Develop-
ment, and Acquisition, including the Navy Systems Com-
mands, with the oversight of Coast Guard major acquisition 
programs. Such memorandum of understanding or memo-
randum of agreement shall, at a minimum, provide for— 
(1) the exchange of technical assistance and sup-
port that the Coast Guard Chief Acquisition Officer, 
Coast Guard Chief Engineer, and the Coast Guard 
Chief Information Officer may identify; 
(2) the use, as appropriate, of Navy technical ex-
pertise; and 
(3) the temporary assignment or exchange of per-
sonnel between the Coast Guard and the Office of the 
Assistant Secretary of the Navy for Research, Devel-
opment, and Acquisition, including Naval Systems 
Commands, to facilitate the development of organic 
capabilities in the Coast Guard. 
(c) TECHNICAL REQUIREMENT APPROVAL PROCE-
DURES.—The Coast Guard Chief Acquisition Officer shall 
adopt, to the extent practicable, procedures that are similar 
to those used by the senior procurement executive of the De-
partment of the Navy to approve all technical requirements. 
(d) ASSESSMENT.—Within 180 days after the date of 
enactment of this Act, the Comptroller General shall trans-
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mit a report to the appropriate congressional committees 
that— 
(1) contains an assessment of current Coast 
Guard acquisition and management capabilities to 
manage Level 1 and Level 2 acquisitions; 
(2) includes recommendations as to how the 
Coast Guard can improve its acquisition manage-
ment, either through internal reforms or by seeking 
acquisition expertise from the Department of Defense; 
and 
(3) addresses specifically the question of whether 
the Coast Guard can better leverage Department of 
Defense or other agencies’ contracts that would meet 
the needs of Level 1 or Level 2 acquisitions in order 
to obtain the best possible price. 
Subtitle C—Coast Guard Personnel 
SEC. 541. CHIEF ACQUISITION OFFICER. 
(a) IN GENERAL.—Chapter 3 of title 14, United States 
Code, is further amended by adding at the end the following: 
‘‘§ 56. Chief Acquisition Officer 
‘‘(a) ESTABLISHMENT OF CHIEF ACQUISITION OFFI-
CER.—There shall be in the Coast Guard a Chief Acquisi-
tion Officer selected by the Commandant who shall be a 
Rear Admiral or civilian from the Senior Executive Service 
(career reserved) and who meets the qualifications set forth 
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under subsection (b). The Chief Acquisition Officer shall 
serve at the Assistant Commandant level and have acquisi-
tion management as that individual’s primary duty. 
‘‘(b) QUALIFICATIONS.— 
‘‘(1) The Chief Acquisition Officer and any Flag 
Officer serving in the Acquisitions Directorate shall 
be an acquisition professional with a program man-
ager level III certification and must have at least 10 
years experience in an acquisition position, of which 
at least 4 years were spent in one of the following 
qualifying positions: 
‘‘(A) Program executive officer. 
‘‘(B) Program manager of a Level 1 or 
Level 2 acquisition. 
‘‘(C) Deputy program manager of a Level 1 
or Level 2 acquisition. 
‘‘(D) Project manager for a Level 1 or Level 
2 acquisition. 
‘‘(E) Any other acquisition position of sig-
nificant responsibility in which the primary du-
ties are supervisory or management duties. 
‘‘(2) The Commandant shall periodically publish 
a list of the positions designated under this sub-
section. 
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‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC-
QUISITION OFFICER.—The functions of the Chief Acquisi-
tion Officer shall include— 
‘‘(1) monitoring the performance of programs 
and projects on the basis of applicable performance 
measurements 
and 
advising 
the 
Commandant, 
through the chain of command, regarding the appro-
priate business strategy to achieve the missions of the 
Coast Guard; 
‘‘(2) maximizing the use of full and open com-
petition at the prime contract and subcontract levels 
in the acquisition of property, capabilities, assets, 
and services by the Coast Guard by establishing poli-
cies, procedures, and practices that ensure that the 
Coast Guard receives a sufficient number of sealed 
bids or competitive proposals from responsible sources 
to fulfill the Government’s requirements, including 
performance and delivery schedules, at the lowest cost 
or best value considering the nature of the property, 
capability, asset, or service procured; 
‘‘(3) making acquisition decisions in concurrence 
with the technical authority of the Coast Guard, as 
designated by the Commandant, and consistent with 
all other applicable laws and decisions establishing 
procedures within the Coast Guard; 
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‘‘(4) ensuring the use of detailed performance 
specifications in instances in which performance 
based contracting is used; 
‘‘(5) managing the direction of acquisition policy 
for the Coast Guard, including implementation of the 
unique acquisition policies, regulations, and stand-
ards of the Coast Guard; 
‘‘(6) developing and maintaining an acquisition 
career management program in the Coast Guard to 
ensure that there is an adequate acquisition work-
force; 
‘‘(7) assessing the requirements established for 
Coast Guard personnel regarding knowledge and skill 
in acquisition resources and management and the 
adequacy of such requirements for facilitating the 
achievement of the performance goals established for 
acquisition management; 
‘‘(8) developing strategies and specific plans for 
hiring, training, and professional development; and 
‘‘(9) reporting to the Commandant, through the 
chain of command, on the progress made in improv-
ing acquisition management capability.’’. 
(b) 
APPLICATION
OF
QUALIFICATION
REQUIRE-
MENT.—Section 56(b) of title 14, United States Code, as 
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amended by this section, shall apply beginning October 1, 
2011. 
(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is further amended by adding 
at the end the following: 
‘‘56. Chief Acquisition Officer.’’. 
(d) ELEVATION OF DISPUTES TO THE CHIEF ACQUISI-
TION OFFICER.—Within 45 days after the elevation to the 
Chief Acquisition Officer of any design or other dispute re-
garding a Level 1 or Level 2 acquisition, the Commandant 
shall provide to the appropriate congressional committees 
a detailed description of the issue and the rationale under-
lying the decision taken by the Chief Acquisition Officer 
to resolve the issue. 
(e) SPECIAL RATE SUPPLEMENTS.— 
(1) REQUIREMENT
TO
ESTABLISH.—Not later 
than 1 year after the date of enactment of this Act 
and in accordance with part 9701.333 of title 5, Code 
of Federal Regulations, the Commandant shall estab-
lish special rate supplements that provide higher pay 
levels for employees necessary to carry out the amend-
ment made by this section. 
(2) SUBJECT TO APPROPRIATIONS.—The require-
ment under paragraph (1) is subject to the avail-
ability of appropriations. 
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SEC. 542. IMPROVEMENTS IN COAST GUARD ACQUISITION 
MANAGEMENT. 
(a) PROGRAM AND PROJECT MANAGERS.—An indi-
vidual may not be assigned as the program manager for 
a Level 1 or Level 2 acquisition unless the individual holds 
a Level III acquisition certification as a program manager. 
(b) INTEGRATED PRODUCT TEAMS.—Integrated prod-
uct teams, and all teams that oversee integrated product 
teams, shall be chaired by officers, members, or employees 
of the Coast Guard. 
(c) TECHNICAL AUTHORITY.—The Commandant shall 
maintain or designate the technical authority to establish, 
approve, and maintain technical requirements. Any such 
designation shall be made in writing and may not be dele-
gated to the authority of the Chief Acquisition Officer estab-
lished by section 55 of title 14, United States Code. 
(d) DESIGNATION OF POSITIONS IN THE ACQUISITION 
WORKFORCE.— 
(1) IN GENERAL.—The Commandant shall des-
ignate a sufficient number of positions to be in the 
Coast Guard’s acquisition workforce to perform acqui-
sition-related functions at Coast Guard headquarters 
and field activities. 
(2) REQUIRED POSITIONS.—In designating posi-
tions under subsection (a), the Commandant shall in-
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clude, at a minimum, positions encompassing the fol-
lowing competencies and functions: 
(A) Program management. 
(B) Systems planning, research, develop-
ment, engineering, and testing. 
(C) Procurement, including contracting. 
(D) Industrial and contract property man-
agement. 
(E) Life-cycle logistics. 
(F) Quality control and assurance. 
(G) Manufacturing and production. 
(H) Business, cost estimating, financial 
management, and auditing. 
(I) Acquisition education, training, and ca-
reer development. 
(J) Construction and facilities engineering. 
(K) Testing and evaluation. 
(3) ACQUISITION
MANAGEMENT
HEADQUARTER 
ACTIVITIES.—The Commandant shall also designate 
as positions in the acquisition workforce under para-
graph (1) those acquisition-related positions located 
at Coast Guard headquarters units. 
(4) APPROPRIATE EXPERTISE REQUIRED.—The 
Commandant shall ensure that each individual as-
signed to a position in the acquisition workforce has 
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the appropriate expertise to carry out the responsibil-
ities of that position. 
(e) MANAGEMENT INFORMATION SYSTEM.— 
(1) IN GENERAL.—The Commandant shall estab-
lish a management information system capability to 
improve acquisition workforce management and re-
porting. 
(2) 
INFORMATION
MAINTAINED.—Information 
maintained with such capability shall include the fol-
lowing standardized information on individuals as-
signed to positions in the workforce: 
(A) Qualifications, assignment history, and 
tenure of those individuals assigned to positions 
in the acquisition workforce or holding acquisi-
tion-related certifications. 
(B) Promotion rates for officers and mem-
bers of the Coast Guard in the acquisition work-
force. 
(f) REPORT ON ADEQUACY OF ACQUISITION WORK-
FORCE.— 
(1) IN GENERAL.—The Commandant shall report 
to the Congress by July 1 of each year on the scope 
of the acquisition activities to be performed in the 
next fiscal year and on the adequacy of the current 
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acquisition workforce to meet that anticipated work-
load. 
(2) CONTENTS.—The report shall— 
(A) specify the number of officers, members, 
and employees of the Coast Guard currently and 
planned to be assigned to each position des-
ignated under subsection (d); and 
(B) identify positions that are understaffed 
to meet the anticipated acquisition workload, 
and actions that will be taken to correct such 
understaffing. 
(g) APPOINTMENTS TO ACQUISITION POSITIONS.—The 
Commandant shall ensure that no requirement or preference 
for officers or members of the Coast Guard is used in the 
consideration of persons for positions in the acquisition 
workforce. 
(h) CAREER PATHS.— 
(1) IDENTIFICATION OF CAREER PATHS.—To es-
tablish acquisition management as a core competency 
of the Coast Guard, the Commandant shall— 
(A) ensure that career paths for officers, 
members, and employees of the Coast Guard who 
wish to pursue careers in acquisition are identi-
fied in terms of the education, training, experi-
ence, and assignments necessary for career pro-
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gression of those officers, members, and employ-
ees to the most senior positions in the acquisition 
workforce; and 
(B) publish information on such career 
paths. 
(2) PROMOTION
PARITY.—The Commandant 
shall ensure that promotion parity is established for 
officers and members of the Coast Guard who have 
been assigned to the acquisition workforce relative to 
officers and members who have not been assigned to 
the acquisition workforce. 
(i) BALANCED WORKFORCE POLICY.—In the develop-
ment of acquisition workforce policies under this section 
with respect to any civilian employees or applicants for em-
ployment, the Commandant shall, consistent with the merit 
system principles set out in paragraphs (1) and (2) of sec-
tion 2301(b) of title 5, United States Code, take into consid-
eration the need to maintain a balanced workforce in which 
women and members of racial and ethnic minority groups 
are appropriately represented in Government service. 
(j) GUIDANCE ON TENURE AND ACCOUNTABILITY OF 
PROGRAM MANAGERS.— 
(1) ISSUANCE OF GUIDANCE.—Not later than 1 
year after the date of enactment of this Act, the Com-
mandant shall issue guidance to address the quali-
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fications, resources, responsibilities, tenure, and ac-
countability of program managers for the manage-
ment of acquisition programs and projects. The guid-
ance shall address, at a minimum— 
(A) the qualifications that shall be required 
of program managers, including the number of 
years of acquisition experience and the profes-
sional training levels to be required of those ap-
pointed to program management positions; 
(B) authorities available to program man-
agers, including, to the extent appropriate, the 
authority to object to the addition of new pro-
gram requirements that would be inconsistent 
with the parameters established for an acquisi-
tion program; and 
(C) the extent to which a program manager 
who initiates a new program or project will con-
tinue in management of that program or project 
without interruption until the delivery of the 
first production units of the program. 
(2) STRATEGY.— 
(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of this Act, 
the Commandant shall develop a comprehensive 
strategy for enhancing the role of Coast Guard 
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program managers in developing and carrying 
out acquisition programs. 
(B) MATTERS
TO
BE
ADDRESSED.—The 
strategy required by this section shall address, at 
a minimum— 
(i) the creation of a specific career 
path and career opportunities for individ-
uals who are or may become program man-
agers, including the rotational assignments 
that will be provided to program managers; 
(ii) the provision of enhanced training 
and educational opportunities for individ-
uals who are or may become program man-
agers; 
(iii) the provision of mentoring sup-
port to current and future program man-
agers by experienced senior executives and 
program managers within the Coast Guard, 
and through rotational assignments to the 
Department of Defense; 
(iv) the methods by which the Coast 
Guard will collect and disseminate best 
practices and lessons learned on systems ac-
quisition to enhance program management 
throughout the Coast Guard; 
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(v) the templates and tools that will be 
used to support improved data gathering 
and analysis for program management and 
oversight purposes, including the metrics 
that will be utilized to assess the effective-
ness of Coast Guard program managers in 
managing systems acquisition efforts; 
(vi) a description in detail of how the 
Coast Guard will promote a balanced work-
force in which women and members of ra-
cial and ethnic minority groups are appro-
priately represented in Government service; 
and 
(vii) the methods by which the account-
ability of program managers for the results 
of acquisition programs will be increased. 
SEC. 543. RECOGNITION OF COAST GUARD PERSONNEL FOR 
EXCELLENCE IN ACQUISITION. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Commandant shall com-
mence implementation of a program to recognize excellent 
performance by individuals and teams comprised of officers, 
members, and employees of the Coast Guard that contrib-
uted to the long-term success of a Coast Guard acquisition 
program or project. 
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(b) ELEMENTS.—The program required by subsection 
(a) shall include the following: 
(1) Specific award categories, criteria, and eligi-
bility and manners of recognition. 
(2) Procedures for the nomination by personnel 
of the Coast Guard of individuals and teams com-
prised of officers, members, and employees of the 
Coast Guard for recognition under the program. 
(3) Procedures for the evaluation of nominations 
for recognition under the program by one or more 
panels of individuals from the Government, academia, 
and the private sector who have such expertise and 
are appointed in such manner as the Commandant 
shall establish for the purposes of this program. 
(c) AWARD OF CASH BONUSES.—As part of the pro-
gram required by subsection (a), the Commandant, subject 
to the availability of appropriations, may award to any 
individual recognized pursuant to the program a cash 
bonus to the extent that the performance of such individual 
so recognized warrants the award of such bonus. 
SEC. 544. COAST GUARD ACQUISITION WORKFORCE EXPE-
DITED HIRING AUTHORITY. 
(a) IN GENERAL.—For purposes of sections 3304, 
5333, and 5753 of title 5, United States Code, the Com-
mandant may— 
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(1) designate any category of acquisition posi-
tions within the Coast Guard as shortage category po-
sitions; and 
(2) use the authorities in such sections to recruit 
and appoint highly qualified persons directly to posi-
tions so designated. 
(b) LIMITATION.—The Commandant may not appoint 
a person to a position of employment under this subsection 
after September 30, 2012. 
TITLE VI—MARITIME 
WORKFORCE DEVELOPMENT 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Maritime Workforce 
Development Act’’. 
SEC. 602. MARITIME EDUCATION LOAN PROGRAM. 
(a) IN GENERAL.—Chapter 517 of title 46, United 
States Code, is amended by adding at the end the following: 
‘‘§ 51705. Maritime career training loan program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a maritime career training loan pro-
gram (in this section referred to as the ‘program’) in ac-
cordance with the requirements of this section. 
‘‘(b) PURPOSE.—The purpose of the program shall be 
to make maritime career training loans available to eligible 
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students to provide for the training of United States mari-
ners. 
‘‘(c) ADMINISTRATION.—The program shall be carried 
out by the Secretary, acting through the Administrator of 
the Maritime Administration. 
‘‘(d) DUTIES.—The Secretary shall— 
‘‘(1) allocate, on an annual basis, the award of 
loans under the program based on the needs of stu-
dents; 
‘‘(2) develop an application process and eligi-
bility criteria for the award of loans under the pro-
gram; 
‘‘(3) approve applications for loans under the 
program based on the eligibility criteria and alloca-
tions made under paragraph (1); and 
‘‘(4) designate maritime training institutions at 
which loans made under the program may be used. 
‘‘(e) DESIGNATION OF MARITIME TRAINING INSTITU-
TIONS.— 
‘‘(1) IN
GENERAL.—In designating maritime 
training institutions under subsection (d)(4), the Sec-
retary— 
‘‘(A) may include Federal, State, and com-
mercial training institutions and nonprofit 
training 
organizations, 
except 
that 
under-
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graduate students at the United States Merchant 
Marine Academy shall not be eligible for loans 
under the program; 
‘‘(B) shall designate institutions based on 
geographic diversity and scope of classes offered; 
‘‘(C) shall ensure that designated institu-
tions have the ability to administer the program; 
and 
‘‘(D) shall ensure that designated institu-
tions meet requirements to provide training in-
struction for appropriate Coast Guard-approved 
training instruction. 
‘‘(2) EXCLUSIONS.—The Secretary— 
‘‘(A) may exclude from participation in the 
program a maritime training institution that 
has had severe performance deficiencies, includ-
ing deficiencies demonstrated by audits or pro-
gram reviews conducted during the 5 calendar 
years immediately preceding the present year; 
‘‘(B) shall exclude from participation in the 
program a maritime training institution that 
has delinquent or outstanding debts to the 
United States, unless such debts are being repaid 
under or in accordance with a repayment ar-
rangement satisfactory to the United States, or 
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the Secretary in the Secretary’s discretion deter-
mines that the existence or amount of any such 
debts has not been finally determined by the ap-
propriate Federal agency; 
‘‘(C) may exclude from participation in the 
program a maritime training institution that 
has failed to comply with quality standards es-
tablished by the Department of Labor, the Coast 
Guard, or a State; and 
‘‘(D) may establish such other criteria as 
the Secretary determines will protect the finan-
cial interest of the United States and promote 
the purposes of this section. 
‘‘(f) STATE MARITIME ACADEMIES.— 
‘‘(1) USE OF FUNDS FOR LOANS TO STUDENTS 
ATTENDING STATE MARITIME ACADEMIES.—The Sec-
retary may obligate not more than 50 percent of the 
amounts appropriated to carry out this section for a 
fiscal year for loans to undergraduate students at-
tending State maritime academies receiving assist-
ance under chapter 515 of this title. 
‘‘(2) ACADEMIC
STANDARDS
FOR
STUDENTS.— 
Students at State maritime academies receiving loans 
under the program shall maintain satisfactory 
progress toward the completion of their course of 
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study as evidenced by the maintenance of a cumu-
lative C average, or its equivalent, or academic stand-
ing consistent with the requirements for graduation, 
as determined by the institution. 
‘‘(g) LOAN AMOUNTS AND USE.— 
‘‘(1) MAXIMUM AMOUNTS.—The Secretary may 
not make loans to a student under the program in an 
amount that exceeds $15,000 in a calendar year or 
$60,000 in the aggregate. 
‘‘(2) USE OF LOAN PROCEEDS.—A student who 
receives a loan under the program may use the pro-
ceeds of the loan only for postsecondary expenses in-
curred at an institution designated by the Secretary 
under subsection (d)(4) for books, tuition, required 
fees, travel to and from training facilities, and room 
and board. 
‘‘(h) STUDENT ELIGIBILITY.—To be eligible to receive 
a loan under the program, a student shall— 
‘‘(1) be eligible to hold a license or merchant 
mariner document issued by the Coast Guard; 
‘‘(2) provide to the Secretary such information 
as the Secretary may require, including all current 
Coast Guard documents, certifications, proof of 
United States citizenship or permanent legal status, 
and a statement of intent to enter a maritime career; 
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‘‘(3) meet the enrollment requirements of a mari-
time training institution designated by the Secretary 
under subsection (d)(4); and 
‘‘(4) sign an agreement to— 
‘‘(A) complete a course of instruction at 
such a maritime training institution; and 
‘‘(B)(i) maintain a license and serve as an 
officer in the merchant marine on a documented 
vessel or a vessel owned and operated by the 
United States for at least 18 months of service 
at sea following the date of graduation from the 
maritime program for which the loan proceeds 
will be used; or 
‘‘(ii) serve as an unlicensed merchant mar-
iner on a documented vessel or a vessel owned 
and operated by the United States for at least 18 
months of service at sea following the date of 
graduation from the maritime program for 
which the loan proceeds will be used. 
‘‘(i) ADMINISTRATION OF LOANS.— 
‘‘(1) CONTENTS
OF
LOAN
AGREEMENTS.—Any 
agreement between the Secretary and a student bor-
rower for a loan under the program shall— 
‘‘(A) be evidenced by a note or other written 
instrument that provides for the repayment of 
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the principal amount of the loan and any origi-
nation fee, together with interest thereon, in 
equal installments (or, if the student borrower so 
requests, in graduated periodic installments de-
termined in accordance with such schedules as 
may be approved by the Secretary) payable 
quarterly, bimonthly, or monthly, at the option 
of the student borrower, over a period beginning 
9 months from the date on which the student bor-
rower completes study or discontinues attendance 
at the maritime program for which the loans are 
used at the institution approved by the Secretary 
and not exceeding 10 years; 
‘‘(B) include provision for acceleration of 
repayment of the whole, or any part, of such 
loan, at the option of the student borrower; 
‘‘(C) provide the loan without security and 
without endorsement; 
‘‘(D) provide that the liability to repay the 
loan shall be canceled upon the death of the stu-
dent borrower, or if the student borrower becomes 
permanently and totally disabled, as determined 
in accordance with regulations to be issued by 
the Secretary; 
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125 
‘‘(E) contain a notice of the system of dis-
closure of information concerning default on such 
loan to credit bureau organizations; and 
‘‘(F) include provisions for deferral of re-
payment, as determined by the Secretary. 
‘‘(2) RATE OF INTEREST.—A student borrower 
who receives a loan under the program on or after 
January 1, 2010, and before October 1, 2015, shall be 
obligated to repay the loan amount to the Secretary, 
together with interest beginning in the period referred 
to in paragraph (1)(A), at a rate to be determined as 
follows: 
‘‘(A) For a loan for which the first disburse-
ment is made on or after January 1, 2010, and 
before October 1, 2011, 5.6 percent on the unpaid 
principal balance of the loan. 
‘‘(B) For a loan for which the first disburse-
ment is made on or after October 1, 2011, and 
before October 1, 2012, 4.5 percent on the unpaid 
principal balance of the loan. 
‘‘(C) For a loan for which the first disburse-
ment is made on or after October 1, 2012, 3.4 
percent on the unpaid principal balance of the 
loan. 
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126 
‘‘(3) DISCLOSURE
REQUIRED
PRIOR
TO
DIS-
BURSEMENT.— 
‘‘(A) IN GENERAL.—The Secretary shall at 
or prior to the time the Secretary makes a loan 
to a student borrower under the program, pro-
vide thorough and adequate loan information on 
such loan to the student borrower. The disclo-
sures required by this paragraph may be made 
as part of the written application material pro-
vided to the student borrower, as part of the 
promissory note evidencing the loan, or on a sep-
arate written form provided to the student bor-
rower. 
‘‘(B) CONTENTS.—The disclosures shall in-
clude— 
‘‘(i) the address to which communica-
tions and payments should be sent; 
‘‘(ii) the principal amount of the loan; 
‘‘(iii) the amount of any charges col-
lected at or prior to the disbursal of the 
loan and whether such charges are to be de-
ducted from the proceeds of the loan or paid 
separately by the student borrower; 
‘‘(iv) the stated interest rate on the 
loan; 
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127 
‘‘(v) the yearly and cumulative max-
imum amounts that may be borrowed; 
‘‘(vi) an explanation of when repay-
ment of the loan will be required and when 
the student borrower will be obligated to 
pay interest that accrues on the loan; 
‘‘(vii) a statement as to the minimum 
and maximum repayment term that the 
Secretary may impose, and the minimum 
monthly payment required by law and a 
description of any penalty imposed as a 
consequence of default, such as liability for 
expenses reasonably incurred in attempts by 
the Secretary to collect on a loan; 
‘‘(viii) a statement of the total cumu-
lative balance, including the loan applied 
for, owed by the student borrower to the 
Secretary, and an estimate of the projected 
monthly payment, given such cumulative 
balance; 
‘‘(ix) an explanation of any special op-
tions the student borrower may have for 
loan consolidation or other refinancing of 
the loan; 
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128 
‘‘(x) a statement that the student bor-
rower has the right to prepay all or part of 
the loan, at any time, without penalty; 
‘‘(xi) a statement summarizing cir-
cumstances in which repayment of the loan 
or interest that accrues on the loan may be 
deferred, and a brief notice of the program 
for repayment of loans, on the basis of mili-
tary service, pursuant to the Department of 
Defense educational loan repayment pro-
gram (10 U.S.C. 16302); 
‘‘(xii) a definition of default and the 
consequences to the student borrower if the 
student borrower defaults, together with a 
statement that the disbursement of, and the 
default on, a loan under this part shall be 
reported to a credit bureau or credit report-
ing agency; 
‘‘(xiii) to the extent practicable, the ef-
fect of accepting the loan on the eligibility 
of the student borrower for other forms of 
student assistance; and 
‘‘(xiv) an explanation of any cost the 
student borrower may incur in the making 
or collection of the loan. 
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129 
‘‘(C) INFORMATION TO BE PROVIDED WITH-
OUT
COST.—The information provided under 
this paragraph shall be available to the Sec-
retary without cost to the student borrower. 
‘‘(4) REPAYMENT
AFTER
DEFAULT.—The Sec-
retary may require any student borrower who has de-
faulted on a loan made under the program to— 
‘‘(A) pay all reasonable collection costs asso-
ciated with such loan; and 
‘‘(B) repay the loan pursuant to an income 
contingent repayment plan. 
‘‘(5) AUTHORIZATION
TO
REDUCE
RATES
AND 
FEES.—Notwithstanding any other provision of this 
section, the Secretary may prescribe by regulation 
any reductions in the interest rate or origination fee 
paid by a student borrower of a loan made under the 
program as the Secretary determines appropriate to 
encourage ontime repayment of the loan. Such reduc-
tions may be offered only if the Secretary determines 
the reductions are cost neutral and in the best finan-
cial interest of the United States. 
‘‘(6) COLLECTION
OF
REPAYMENTS.—The Sec-
retary shall collect repayments made under the pro-
gram and exercise due diligence in such collection, in-
cluding maintenance of all necessary records to ensure 
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130 
that maximum repayments are made. Collection and 
servicing of repayments under the program shall be 
pursued to the full extent of the law, including wage 
garnishment if necessary. The Secretary of the De-
partment in which the Coast Guard is operating shall 
provide the Secretary of Transportation with any in-
formation regarding a mariner that may aid in the 
collection of repayments under this section. 
‘‘(7) REPAYMENT
SCHEDULE.—A student bor-
rower who receives a loan under the program shall 
repay the loan quarterly, bimonthly, or monthly, at 
the option of the student borrower, over a period be-
ginning 9 months from the date the student borrower 
completes study or discontinues attendance at the 
maritime program for which the loan proceeds are 
used and ending not more than 10 years after the 
date repayment begins. Provisions for deferral of re-
payment shall be determined by the Secretary. 
‘‘(8) CONTRACTS FOR SERVICING AND COLLEC-
TION OF LOANS.—The Secretary may— 
‘‘(A) enter into a contract or other arrange-
ment with State or nonprofit agencies and, on a 
competitive basis, with collection agencies for 
servicing and collection of loans under this sec-
tion; and 
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131 
‘‘(B) conduct litigation necessary to carry 
out this section. 
‘‘(j) REVOLVING LOAN FUND.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a revolving loan fund consisting of amounts 
deposited in the fund under paragraph (2). 
‘‘(2) DEPOSITS.—The Secretary shall deposit in 
the fund— 
‘‘(A) receipts from the payment of principal 
and interest on loans made under the program; 
and 
‘‘(B) any other monies paid to the Sec-
retary by or on behalf of individuals under the 
program. 
‘‘(3) AVAILABILITY OF AMOUNTS.—Amounts in 
the fund shall be available to the Secretary, without 
further appropriation— 
‘‘(A) to cover the administrative costs of the 
program, including the maintenance of records 
and making collections under this section; and 
‘‘(B) to the extent that amounts remain 
available after paying such administrative costs, 
to make loans under the program. 
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132 
‘‘(4) MAINTENANCE
OF
RECORDS.—The Sec-
retary shall maintain accurate records of the admin-
istrative costs referred to in paragraph (3)(A). 
‘‘(k) ANNUAL REPORT.—The Secretary, on an annual 
basis, shall submit to the Committee on Transportation and 
Infrastructure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a report on the program, including— 
‘‘(1) the total amount of loans made under the 
program in the preceding year; 
‘‘(2) the number of students receiving loans 
under the program in the preceding year; and 
‘‘(3) the total amount of loans made under pro-
gram that are in default as of the date of the report. 
‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated for each of fiscal years 2010 
through 2015— 
‘‘(1) $10,000,000 for making loans under the 
program; and 
‘‘(2) $1,000,000 for administrative expenses of 
the Secretary in carrying out the program. 
‘‘§ 51706. Maritime recruitment, training, and reten-
tion grant program 
‘‘(a) STRATEGIC PLAN.— 
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133 
‘‘(1) IN GENERAL.—Not later than one year after 
the date of enactment of this section, and at least once 
every 3 years thereafter, the Secretary of Transpor-
tation, acting through the Administrator of the Mari-
time Administration, shall publish in the Federal 
Register a plan that describes the demonstration, re-
search, and multistate project priorities of the De-
partment of Transportation concerning merchant 
mariner recruitment, training, and retention for the 
3-year period following the date of publication of the 
plan. 
‘‘(2) CONTENTS.—A plan published under para-
graph (1) shall contain strategies and identify poten-
tial projects to address merchant mariner recruit-
ment, training, and retention issues in the United 
States. 
‘‘(3) FACTORS.—In developing a plan under 
paragraph (1), the Secretary shall take into account, 
at a minimum— 
‘‘(A) the availability of existing research (as 
of the date of publication of the plan); 
‘‘(B) the need to ensure results that have 
broad applicability; 
‘‘(C) the benefits of economies of scale and 
the efficiency of potential projects; and 
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134 
‘‘(D) the likelihood that the results of poten-
tial projects will be useful to policymakers and 
stakeholders in addressing merchant mariner re-
cruitment, training, and retention issues. 
‘‘(4) CONSULTATION.—In developing a plan 
under paragraph (1), the Secretary shall consult with 
representatives of the maritime industry, labor orga-
nizations, and other governmental entities and par-
ties with an interest in the maritime industry. 
‘‘(5) TRANSMITTAL
TO
CONGRESS.—The Sec-
retary shall transmit copies of a plan published under 
paragraph (1) to the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Trans-
portation of the Senate. 
‘‘(b) DEMONSTRATION PROJECTS.— 
‘‘(1) IN GENERAL.—The Secretary may award 
grants to a maritime training institution to carry 
out demonstration projects that implement the prior-
ities identified in the plan prepared under subsection 
(a)(1), for the purpose of developing and imple-
menting methods to address merchant mariner re-
cruitment, training, and retention issues. 
‘‘(2) GRANT AWARDS.—Grants shall be awarded 
under this subsection on a competitive basis under 
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135 
guidelines and requirements to be established by the 
Secretary. 
‘‘(3) APPLICATIONS.—To be eligible to receive a 
grant for a project under this subsection, a maritime 
training institution shall submit to the Secretary a 
grant proposal that includes, at a minimum— 
‘‘(A) information demonstrating the esti-
mated effectiveness of the project; and 
‘‘(B) a method for evaluating the effective-
ness of the project. 
‘‘(4) ELIGIBLE PROJECTS.—Projects eligible for 
grants under this subsection may include— 
‘‘(A) the establishment of maritime tech-
nology skill centers developed through local part-
nerships of industry, labor, education, commu-
nity-based organizations, economic development 
organizations, or Federal, State, and local gov-
ernment agencies to meet unmet skills needs of 
the maritime industry; 
‘‘(B) projects that provide training to up-
grade the skills of workers who are employed in 
the maritime industry; 
‘‘(C) projects that promote the use of dis-
tance learning, enabling students to take courses 
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136 
through the use of media technology, such as vid-
eos, teleconferencing, and the Internet; 
‘‘(D) projects that assist in providing serv-
ices to address maritime recruitment and train-
ing of youth residing in targeted high poverty 
areas within empowerment zones and enterprise 
communities; 
‘‘(E) the establishment of partnerships with 
national and regional organizations with special 
expertise in developing, organizing, and admin-
istering merchant mariner recruitment and 
training services; and 
‘‘(F) the establishment of maritime training 
programs that foster technical skills and oper-
ational productivity in communities in which 
economies are related to or dependent upon the 
maritime industry. 
‘‘(c) PROJECTS AUTHORIZED.— 
‘‘(1) PROJECTS.—The Secretary may award 
grants to carry out projects identified in a plan pub-
lished under subsection (a)(1) under which the project 
sponsor will— 
‘‘(A) design, develop, and test an array of 
approaches to providing recruitment, training, 
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137 
or retention services to one or more targeted pop-
ulations; 
‘‘(B) in conjunction with employers, orga-
nized labor, other groups (such as community 
coalitions), and Federal, State, or local agencies, 
design, develop, and test various training ap-
proaches in order to determine effective practices; 
or 
‘‘(C) assist in the development and replica-
tion of effective service delivery strategies for the 
national maritime industry as a whole. 
‘‘(2) RESEARCH PROJECTS.—The Secretary may 
award grants to carry out research projects identified 
in a plan published under subsection (a)(1) that will 
contribute to the solution of maritime industry re-
cruitment, training, and retention issues in the 
United States. 
‘‘(3) MULTISTATE OR REGIONAL PROJECTS.—The 
Secretary may award grants to carry out multistate 
or regional projects identified in a plan published 
under subsection (a)(1) to effectively disseminate best 
practices and models for implementing maritime re-
cruitment, training, and retention services designed to 
address industry-wide skill shortages. 
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144 
(h) TREATMENT OF INCUMBENTS; TRANSITION.— 
(1) VICE
COMMANDANT.—Notwithstanding any 
other provision of law, the officer who, on the date of 
enactment of this Act, is serving in the Coast Guard 
as Vice Commandant— 
(A) shall continue to serve as Vice Com-
mandant; 
(B) shall have the grade of admiral with 
pay and allowances of that grade; and 
(C) shall not be required to be reappointed 
by reason of the enactment of this Act. 
(2) CHIEF
OF
STAFF, COMMANDER, ATLANTIC 
AREA, OR
COMMANDER, PACIFIC
AREA.—Notwith-
standing any other provision of law, an officer who, 
on the date of enactment of this Act, is serving in the 
Coast Guard as Chief of Staff, Commander, Atlantic 
Area, or Commander, Pacific Area— 
(A) shall continue to have the grade of vice 
admiral with pay and allowance of that grade 
until such time that the officer is relieved of his 
or her duties and appointed and confirmed to 
another position as a vice admiral or admiral; 
and 
(B) for the purposes of transition, may con-
tinue, for not more than one year after the date 
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145 
of enactment of this Act, to perform the duties of 
the officer’s former position and any other such 
duties that the Commandant prescribes. 
(i) CLERICAL AMENDMENTS.— 
(1) The table of sections at the beginning of 
chapter 3 of title 14, United States Code, is amend-
ed— 
(A) by striking the item relating to section 
47 and inserting the following: 
‘‘47. Vice Commandant; appointment.’’; 
(B) by striking the item relating to section 
50 and inserting the following: 
‘‘50. Vice admirals.’’; 
(C) by striking the item relating to section 
50a; and 
(D) by striking the item relating to section 
52 and inserting the following: 
‘‘52. Vice admirals and admirals, continuity of grade.’’. 
(j) TECHNICAL CORRECTION.—Section 47 of title 14, 
United States Code, is further amended in the fifth sentence 
by striking ‘‘subsection’’ and inserting ‘‘section’’. 
Subtitle B—Marine Safety 
Administration 
SEC. 721. MARINE SAFETY. 
(a) ESTABLISH MARINE SAFETY AS A COAST GUARD 
FUNCTION.—Chapter 5 of title 14, United States Code, is 
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146 
further amended by adding at the end the following new 
section: 
‘‘§ 101. Marine safety 
‘‘To protect life, property, and the environment on, 
under, and over waters subject to the jurisdiction of the 
United States and on vessels subject to the jurisdiction of 
the United States, the Commandant shall promote mari-
time safety as follows: 
‘‘(1) By taking actions necessary and in the pub-
lic interest to protect such life, property, and the envi-
ronment. 
‘‘(2) Based on the following priorities: 
‘‘(A) Preventing marine casualties and 
threats to the environment. 
‘‘(B) Minimizing the impacts of marine 
casualties and environmental threats. 
‘‘(C) Maximizing lives and property saved 
and environment protected in the event of a ma-
rine casualty.’’. 
(b) CLERICAL AMENDMENT.—The analysis at the be-
ginning of such chapter is further amended by adding at 
the end the following new item: 
‘‘101. Marine safety.’’. 
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