‘‘(i) that begins and ends in the same
State;
‘‘(ii) that is part of a voyage to an-
other State or to a foreign country; and
‘‘(iii) in which the vessel reaches the
other State or foreign country within 3
days after leaving the State in which it be-
gins.’’.
SEC. 409. VESSEL FINANCING.
(a) ELIMINATION OF MORTGAGEE RESTRICTIONS.—
Section 31322(a) of title 46, United States Code, is amend-
ed to read as follows:
‘‘(a) A preferred mortgage is a mortgage, whenever
made, that—
‘‘(1) includes the whole of the vessel;
‘‘(2) is filed in substantial compliance with sec-
tion 31321 of this title; and
‘‘(3)(A) covers a documented vessel; or
‘‘(B) covers a vessel for which an application for
documentation is filed that is in substantial compli-
ance with the requirements of chapter 121 of this title
and the regulations prescribed under that chapter.’’.
(b) ELIMINATION OF TRUSTEE RESTRICTIONS.—
(1) REPEAL.—Section 31328 of title 46, United
States Code, is repealed.
(2) 
CONFORMING
AMENDMENTS.—Section
31330(b) of title 46, United States Code, is amended
in paragraphs (1), (2), and (3) by striking ‘‘31328
or’’ each place it appears.
(3) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 313 of title 46,
United States Code, is amended by striking the item
relating to section 31328.
(c) REMOVAL OF MORTGAGE RESTRICTIONS.—Section
9 of the Shipping Act, 1916 (46 App. U.S.C. 808) is
amended—
(1) in subsection (c)—
(A) by striking ‘‘31328’’ and inserting
‘‘12106(e)’’; and
(B) in paragraph (1) by striking ‘‘mort-
gage,’’ each place it appears; and
(2) in subsection (d)—
(A) in paragraph (1) by striking ‘‘transfer,
or mortgage’’ and inserting ‘‘or transfer’’;
(B) in paragraph (2) by striking ‘‘transfers,
or mortgages’’ and inserting ‘‘or transfers’’;
(C) in paragraph (3)(B) by striking ‘‘trans-
fers, or mortgages’’ and inserting ‘‘or transfers’’;
and
(D) in paragraph (4) by striking ‘‘transfers,
or mortgages’’ and inserting ‘‘or transfers’’.
(d) LEASE FINANCING.—Section 12106 of title 46,
United States Code, is amended by adding at the end the
following new subsections:
‘‘(e)(1) A certificate of documentation for a vessel may
be endorsed with a coastwise endorsement if—
‘‘(A) the vessel is eligible for documentation
under section 12102;
‘‘(B) the vessel is otherwise qualified under this
section to be employed in the coastwise trade;
‘‘(C) the person that owns the vessel, a parent
entity of that person, or a subsidiary of a parent en-
tity of that person, is engaged in leasing;
‘‘(D) the vessel is under a demise charter to a
person qualifying as a citizen of the United States for
engaging in the coastwise trade under section 2 of the
Shipping Act, 1916; and
‘‘(E) the demise charter is for—
‘‘(i) a period of at least 3 years; or
‘‘(ii) such shorter period as may be pre-
scribed by the Secretary.
‘‘(2) On termination of a demise charter required
under paragraph (1)(D), the coastwise endorsement may be
continued for a period not to exceed 6 months on any terms
and conditions that the Secretary of Transportation may
prescribe.
‘‘(f) For purposes of the first proviso of section 27 of
the Merchant Marine Act, 1920, section 2 of the Shipping
Act, 1916, and section 12102(a) of this title, a vessel meet-
ing the criteria of subsection (d) or (e) is deemed to be
owned exclusively by citizens of the United States.’’.
SEC. 410. SENSE OF CONGRESS; REQUIREMENT REGARDING
NOTICE.
(a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS.—It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products pur-
chased with funds made available under this Act should be
American-made.
(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In pro-
viding financial assistance under this Act, the official re-
sponsible for providing the assistance, to the greatest extent
practicable, shall provide to each recipient of the assistance
a notice describing the statement made in subsection (a)
by the Congress.
SEC. 411. SPECIAL SELECTION BOARDS.
(a) REQUIREMENT.—Chapter 21 of title 14, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 747. Special selection boards
‘‘(a) The Secretary shall provide for special selection
boards to consider the case of any officer who is eligible
for promotion who—
‘‘(1) was not considered for selection for pro-
motion by a selection board because of administrative
error; or
‘‘(2) was considered for selection for promotion
by a selection board but not selected because—
‘‘(A) the action of the board that considered
the officer was contrary to law or involved a ma-
terial error of fact or material administrative
error; or
‘‘(B) the board that considered the officer
did not have before it for its consideration mate-
rial information.
‘‘(b) Not later than 6 months after the date of the en-
actment of the Coast Guard Authorization Act For Fiscal
Year 1996, the Secretary shall issue regulations to imple-
ment this section. The regulations shall conform, as appro-
priate, to the regulations and procedures issued by the Sec-
retary of Defense for special selection boards under section
628 of title 10, United States Code.’’.
(b) CLERICAL AMENDMENT.—The table of sections for
chapter 21 of title 14, United States Code, is amended by
adding after the item for section 746 the following: