response shall be provided in the form and within the time specified by the 
Commission. 
‘‘(b) SUBPOENAS.—In an investigation under section 42302 of this title, 
the Commission may subpoena witnesses and evidence. 
‘‘(c) NONDISCLOSURE.—Notwithstanding any other provision of law, the 
Commission may determine that any information submitted to it in response 
to a request under this section, or otherwise, shall not be disclosed to the 
public. 
‘‘§ 42304. Action against foreign carriers 
‘‘(a) IN GENERAL.—Subject to section 42306 of this title, whenever the 
Federal Maritime Commission, after notice and opportunity for comment or 
hearing, determines that the conditions specified in section 42302(a) of this 
title exist, the Commission shall take such action to offset those conditions 
as it considers necessary and appropriate against any foreign carrier that 
is a contributing cause, or whose government is a contributing cause, to 
those conditions. The action may include— 
‘‘(1) limitations on voyages to and from United States ports or on 
the amount or type of cargo carried; 
‘‘(2) suspension, in whole or in part, of any or all tariffs and service 
contracts, including an ocean common carrier’s right to use any or all 
tariffs and service contracts of conferences in United States trades of 
which it is a member for any period the Commission specifies; 
‘‘(3) suspension, in whole or in part, of an ocean common carrier’s 
right to operate under any agreement filed with the Commission, in-
cluding any agreement authorizing preferential treatment at terminals, 
preferential terminal leases, space chartering, or pooling of cargo or 
revenue with other ocean common carriers; and 
‘‘(4) a fee not to exceed $1,000,000 per voyage. 
‘‘(b) CONSULTATION.—The Commission may consult with, seek the co-
operation of, or make recommendations to other appropriate agencies of the 
United States Government prior to taking any action under subsection (a). 
‘‘§ 42305. Refusal of clearance and entry 
‘‘Subject to section 42306 of this title, whenever the Federal Maritime 
Commission determines that the conditions specified in section 42302(a) of 
this title exist, then at the request of the Commission— 
‘‘(1) the Secretary of Homeland Security shall refuse the clearance 
required by section 60105 of this title to a vessel of a foreign carrier 
that is identified by the Commission under section 42304 of this title; 
and 
‘‘(2) the Secretary of the department in which the Coast Guard is 
operating shall— 
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‘‘(A) deny entry, for purposes of oceanborne trade, of a vessel 
of a foreign carrier that is identified by the Commission under sec-
tion 42304 of this title, to a port or place in the United States 
or the navigable waters of the United States; or 
‘‘(B) detain the vessel at the port or place in the United States 
from which it is about to depart for another port or place in the 
United States. 
‘‘§ 42306. Submission of determinations to President 
‘‘Before a determination under section 42304 of this title becomes effec-
tive or a request is made under section 42305 of this title, the determina-
tion shall be submitted immediately to the President. The President, within 
10 days after receiving it, may disapprove it in writing, setting forth the 
reasons for the disapproval, if the President finds that disapproval is re-
quired for reasons of national defense or foreign policy. 
‘‘§ 42307. Review of regulations and orders 
‘‘A regulation or final order of the Federal Maritime Commission under 
this chapter is reviewable exclusively in the same forum and in the same 
manner as provided in section 2342(3)(B) of title 28. 
‘‘PART C—MISCELLANEOUS 
‘‘CHAPTER 441—EVIDENCE OF FINANCIAL 
RESPONSIBILITY FOR PASSENGER TRANSPORTATION 
‘‘Sec. 
‘‘44101.
Application. 
‘‘44102.
Financial responsibility to indemnify passengers for nonperformance of transpor-
tation. 
‘‘44103.
Financial responsibility to pay liability for death or injury. 
‘‘44104.
Civil penalty. 
‘‘44105.
Refusal of clearance. 
‘‘44106.
Conduct of proceedings. 
‘‘§ 44101. Application 
‘‘This chapter applies to a vessel that— 
‘‘(1) has berth or stateroom accommodations for at least 50 pas-
sengers; and 
‘‘(2) boards passengers at a port in the United States. 
‘‘§ 44102. Financial responsibility to indemnify passengers 
for nonperformance of transportation 
‘‘(a) FILING REQUIREMENT.—A person in the United States may not ar-
range, offer, advertise, or provide transportation on a vessel to which this 
chapter applies unless the person has filed with the Federal Maritime Com-
mission evidence of financial responsibility to indemnify passengers for non-
performance of the transportation. 
‘‘(b) SATISFACTORY EVIDENCE.—To satisfy subsection (a), a person must 
file— 
‘‘(1) information the Commission considers necessary; or 
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‘‘(2) a copy of a bond or other security, in such form as the Commis-
sion by regulation may require. 
‘‘(c) AUTHORIZED ISSUER OF BOND.—If a bond is filed, it must be 
issued by a bonding company authorized to do business in the United 
States. 
‘‘§ 44103. Financial responsibility to pay liability for death 
or injury 
‘‘(a) GENERAL REQUIREMENT.—The owner or charterer of a vessel to 
which this chapter applies shall establish, under regulations prescribed by 
the Federal Maritime Commission, financial responsibility to meet liability 
for death or injury to passengers or other individuals on a voyage to or from 
a port in the United States. 
‘‘(b) AMOUNTS.— 
‘‘(1) IN GENERAL.—The amount of financial responsibility required 
under subsection (a) shall be based on the number of passenger accom-
modations as follows: 
‘‘(A) $20,000 for each of the first 500 passenger accommoda-
tions. 
‘‘(B) $15,000 for each additional passenger accommodation be-
tween 501 and 1,000. 
‘‘(C) $10,000 for each additional passenger accommodation be-
tween 1,001 and 1,500. 
‘‘(D) $5,000 for each additional passenger accommodation over 
1,500. 
‘‘(2) MULTIPLE VESSELS.—If the owner or charterer is operating 
more than one vessel subject to this chapter, the amount of financial 
responsibility shall be based on the number of passenger accommoda-
tions on the vessel with the largest number of passenger accommoda-
tions. 
‘‘(c) AVAILABILITY TO PAY JUDGMENT.—The amount determined under 
subsection (b) shall be available to pay a judgment for damages (whether 
less than or more than $20,000) for death or injury to a passenger or other 
individual on a voyage to or from a port in the United States. 
‘‘(d) MEANS OF ESTABLISHING.—Financial responsibility under this sec-
tion may be established by one or more of the following if acceptable to the 
Commission: 
‘‘(1) Insurance. 
‘‘(2) Surety bond issued by a bonding company authorized to do 
business in the United States. 
‘‘(3) Qualification as a self-insurer. 
‘‘(4) Other evidence of financial responsibility. 
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‘‘§ 44104. Civil penalty 
‘‘A person that violates section 44102 or 44103 of this title is liable to 
the United States Government for a civil penalty of not more than $5,000, 
plus $200 for each passage sold, to be assessed by the Federal Maritime 
Commission. The Commission may remit or mitigate the penalty on terms 
the Commission considers proper. 
‘‘§ 44105. Refusal of clearance 
‘‘The Secretary of Homeland Security shall refuse the clearance required 
by section 60105 of this title, at the port or place of departure from the 
United States, of a vessel that is subject to this chapter and does not have 
evidence issued by the Federal Maritime Commission of compliance with 
sections 44102 and 44103 of this title. 
‘‘§ 44106. Conduct of proceedings 
‘‘Part A of this subtitle applies to proceedings conducted by the Federal 
Maritime Commission under this chapter.’’. 
SEC. 8. SUBTITLE V OF TITLE 46. 
(a) SUBTITLE ANALYSIS.—The analysis of subtitle V of title 46, United 
States Code, is amended to read as follows: 
‘‘PART A—GENERAL 
‘‘Chapter 
Sec. 
‘‘501. Policy, Studies, and Reports .................................................................
50101 
‘‘503. Administrative ...........................................................................................
50301 
‘‘505. Other General Provisions ......................................................................
50501 
‘‘PART B—MERCHANT MARINE SERVICE 
‘‘511. General ..........................................................................................................
51101 
‘‘513. United States Merchant Marine Academy ......................................
51301 
‘‘515. State Maritime Academy Support Program ...................................
51501 
‘‘517. Other Support for Merchant Marine Training ..............................
51701 
‘‘519. Merchant Marine Awards ......................................................................
51901 
‘‘521. Miscellaneous .............................................................................................
52101 
‘‘PART C—FINANCIAL ASSISTANCE PROGRAMS 
‘‘531. Maritime Security Fleet .........................................................................
53101 
‘‘533. Construction Reserve Funds ................................................................
53301 
‘‘535. Capital Construction Funds .................................................................
53501 
‘‘537. Loans and Guarantees ............................................................................
53701 
‘‘539. War Risk Insurance ..................................................................................
53901 
‘‘PART D—PROMOTIONAL PROGRAMS 
‘‘551. Coastwise Trade ........................................................................................
55101 
‘‘553. Passenger and Cargo Preferences ......................................................
55301 
‘‘555. Miscellaneous .............................................................................................
55501 
‘‘PART E—CONTROL OF MERCHANT MARINE CAPABILITIES 
‘‘561. Restrictions on Transfers ......................................................................
56101 
‘‘563. Emergency Acquisition of Vessels ......................................................
56301 
‘‘565. Essential Vessels Affected by Neutrality Act .................................
56501 
‘‘PART F—GOVERNMENT-OWNED MERCHANT VESSELS 
‘‘571. General Authority .....................................................................................
57101 
‘‘573. Vessel Trade-In Program .......................................................................
57301 
‘‘575. Construction, Charter, and Sale of Vessels ....................................
57501 
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‘‘PART G—RESTRICTIONS AND PENALTIES 
‘‘581. Restrictions and Penalties ....................................................................
58101’’. 
(b) CHAPTERS PRECEDING CHAPTER 531.—Subtitle V of title 46, United 
States Code, is amended by inserting after the subtitle analysis the fol-
lowing: 
‘‘PART A—GENERAL 
‘‘CHAPTER 501—POLICY, STUDIES, AND REPORTS 
‘‘Sec. 
‘‘50101.
Objectives and policy. 
‘‘50102.
Survey of merchant marine. 
‘‘50103.
Determinations of essential services. 
‘‘50104.
Studies of general maritime problems. 
‘‘50105.
Studies and cooperation relating to the construction of vessels. 
‘‘50106.
Studies on the operation of vessels. 
‘‘50107.
Studies on marine insurance. 
‘‘50108.
Studies on cargo carriage and cargo containers. 
‘‘50109.
Miscellaneous studies. 
‘‘50110.
Securing preference to vessels of the United States. 
‘‘50111.
Reports to Congress. 
‘‘50112.
National Maritime Enhancement Institutes. 
‘‘50113.
Use and performance reports by operators of vessels. 
‘‘§ 50101. Objectives and policy 
‘‘(a) OBJECTIVES.—It is necessary for the national defense and the devel-
opment of the domestic and foreign commerce of the United States that the 
United States have a merchant marine— 
‘‘(1) sufficient to carry the waterborne domestic commerce and a 
substantial part of the waterborne export and import foreign commerce 
of the United States and to provide shipping service essential for main-
taining the flow of the waterborne domestic and foreign commerce at 
all times; 
‘‘(2) capable of serving as a naval and military auxiliary in time of 
war or national emergency; 
‘‘(3) owned and operated as vessels of the United States by citizens 
of the United States; 
‘‘(4) composed of the best-equipped, safest, and most suitable types 
of vessels and manned with a trained and efficient citizen personnel; 
and 
‘‘(5) supplemented by efficient facilities for building and repairing 
vessels. 
‘‘(b) POLICY.—It is the policy of the United States to encourage and aid 
the development and maintenance of a merchant marine satisfying the ob-
jectives described in subsection (a). 
‘‘§ 50102. Survey of merchant marine 
‘‘(a) IN GENERAL.—The Secretary of Transportation shall survey the 
merchant marine of the United States to determine whether replacements 
and additions are required to carry out the objectives and policy of section 
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50101 of this title. The Secretary shall study, perfect, and adopt a long- 
range program for replacements and additions that will result, as soon as 
practicable, in— 
‘‘(1) an adequate and well-balanced merchant fleet, including vessels 
of all types, that will provide shipping service essential for maintaining 
the flow of foreign commerce by vessels designed to be readily and 
quickly convertible into transport and supply vessels in a time of na-
tional emergency; 
‘‘(2) ownership and operation of the fleet by citizens of the United 
States insofar as practicable; 
‘‘(3) vessels designed to afford the best and most complete protection 
for passengers and crew against fire and all marine perils; and 
‘‘(4) an efficient capacity for building and repairing vessels in the 
United States with an adequate number of skilled personnel to provide 
an adequate mobilization base. 
‘‘(b) COOPERATION WITH SECRETARY OF NAVY.—In carrying out sub-
section (a)(1), the Secretary of Transportation shall cooperate closely with 
the Secretary of the Navy as to national defense requirements. 
‘‘§ 50103. Determinations of essential services 
‘‘(a) ESSENTIAL SERVICES, ROUTES, AND LINES.— 
‘‘(1) IN GENERAL.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the ocean services, 
routes, and lines from ports in the United States, or in the territories 
and possessions of the United States, to foreign markets, which the 
Secretary determines to be essential for the promotion, development, 
expansion, and maintenance of the foreign commerce of the United 
States. In making such a determination, the Secretary shall consider 
and give due weight to— 
‘‘(A) the cost of maintaining each line; 
‘‘(B) the probability that a line cannot be maintained except at 
a heavy loss disproportionate to the benefit to foreign trade; 
‘‘(C) the number of voyages and types of vessels that should be 
employed in a line; 
‘‘(D) the intangible benefit of maintaining a line to the foreign 
commerce of the United States, the national defense, and other 
national requirements; and 
‘‘(E) any other facts and conditions a prudent business person 
would consider when dealing with the person’s own business. 
‘‘(2) SAINT LAWRENCE SEAWAY.—For purposes of paragraph (1), 
the Secretary shall establish services, routes, and lines that reflect the 
seasonal closing of the Saint Lawrence Seaway and provide for alter-
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nate routing of vessels through a different range of ports during that 
closing to maintain continuity of service on a year-round basis. 
‘‘(b) BULK CARGO CARRYING SERVICES.—The Secretary shall inves-
tigate, determine, and keep current records of the bulk cargo carrying serv-
ices that should be provided by vessels of the United States (whether or not 
operating on particular services, routes, or lines) for the promotion, develop-
ment, expansion, and maintenance of the foreign commerce of the United 
States and the national defense or other national requirements. 
‘‘(c) TYPES OF VESSELS.—The Secretary shall investigate, determine, 
and keep current records of the type, size, speed, method of propulsion, and 
other requirements of the vessels, including express-liner or super-liner ves-
sels, that should be employed in— 
‘‘(1) the services, routes, or lines described in subsection (a), and the 
frequency and regularity of the voyages of the vessels, with a view to 
furnishing adequate, regular, certain, and permanent service; and 
‘‘(2) the bulk cargo carrying services described in subsection (b). 
‘‘§ 50104. Studies of general maritime problems 
‘‘The Secretary of Transportation shall study all maritime problems aris-
ing in carrying out the policy in section 50101 of this title. 
‘‘§ 50105. Studies and cooperation relating to the construc-
tion of vessels 
‘‘(a) RELATIVE COSTS AND NEW DESIGNS.—The Secretary of Transpor-
tation shall investigate, determine, and keep current records of— 
‘‘(1) the relative cost of construction of comparable vessels in the 
United States and in foreign countries; and 
‘‘(2) new designs, new methods of construction, and new types of 
equipment for vessels. 
‘‘(b) RULES, CLASSIFICATIONS, AND RATINGS.—The Secretary shall ex-
amine the rules under which vessels are constructed abroad and in the 
United States and the methods of classifying and rating the vessels. 
‘‘(c) COLLABORATION WITH OWNERS AND BUILDERS.—The Secretary 
shall collaborate with vessel owners and shipbuilders in developing plans for 
the economical construction of vessels and their propelling machinery, of 
most modern economical types, giving thorough consideration to all well-rec-
ognized means of propulsion and taking into account the benefits from 
standardized production where practicable and desirable. 
‘‘(d) EXPRESS-LINER AND SUPER-LINER VESSELS.—The Secretary shall 
study and cooperate with vessel owners in devising means by which there 
may be constructed, by or with the aid of the United States Government, 
express-liner or super-liner vessels comparable to those of other nations, es-
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pecially with a view to their use in a national emergency, and the use of 
transoceanic aircraft service in connection with or in lieu of those vessels. 
‘‘§ 50106. Studies on the operation of vessels 
‘‘(a) RELATIVE COSTS.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the relative cost of marine 
insurance, maintenance, repairs, wages and subsistence of officers and 
crews, and all other items of expense, in the operation of comparable vessels 
under the laws and regulations of the United States and those of the foreign 
countries whose vessels are substantial competitors of American vessels. 
‘‘(b) SHIPYARDS.—The Secretary shall investigate, determine, and keep 
current records of the number, location, and efficiency of shipyards in the 
United States. 
‘‘(c) NAVIGATION LAWS.—The Secretary shall examine the navigation 
laws and regulations of the United States and make such recommendations 
to Congress as the Secretary considers proper for the amendment, improve-
ment, and revision of those laws and for the development of the merchant 
marine of the United States. 
‘‘§ 50107. Studies on marine insurance 
‘‘The Secretary of Transportation shall— 
‘‘(1) examine into the subject of marine insurance, the number of 
companies in the United States, domestic and foreign, engaging in ma-
rine insurance, the extent of the insurance on hulls and cargoes placed 
or written in the United States, and the extent of reinsurance of Amer-
ican maritime risks in foreign companies; and 
‘‘(2) ascertain what steps may be necessary to develop an ample ma-
rine insurance system as an aid in the development of the merchant 
marine of the United States. 
‘‘§ 50108. Studies on cargo carriage and cargo containers 
‘‘(a) STUDIES.—The Secretary of Transportation shall study— 
‘‘(1) the methods of encouraging the development and implementa-
tion of new concepts for the carriage of cargo in the domestic and for-
eign commerce of the United States; and 
‘‘(2) the economic and technological aspects of the use of cargo con-
tainers as a method of carrying out the policy in section 50101 of this 
title. 
‘‘(b) RESTRICTION.—In carrying out subsection (a) and the policy in sec-
tion 50101 of this title, the United States Government may not give pref-
erence as between carriers based on the length, height, or width of cargo 
containers or the length, height, or width of cargo container cells. This re-
striction applies to all existing container vessels and any container vessel to 
be constructed or rebuilt. 
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‘‘§ 50109. Miscellaneous studies 
‘‘(a) FOREIGN SUBSIDIES.—The Secretary of Transportation shall inves-
tigate, determine, and keep current records of the extent and character of 
the governmental aid and subsidies granted by foreign governments to their 
merchant marine. 
‘‘(b) LAWS APPLICABLE TO AIRCRAFT.—The Secretary shall investigate, 
determine, and keep current records of the provisions of law relating to 
shipping that should be made applicable to aircraft engaged in foreign com-
merce to further the policy in section 50101 of this title, and any appro-
priate legislation in this regard. 
‘‘(c) AID FOR COTTON, COAL, LUMBER, AND CEMENT.—The Secretary 
shall investigate, determine, and keep current records of the advisability of 
enactment of suitable legislation authorizing the Secretary, in an economic 
or commercial emergency, to aid farmers and producers of cotton, coal, lum-
ber, and cement in any section of the United States in the transportation 
and landing of their products in any foreign port, which products can be 
carried in dry-cargo vessels by reducing rates, by supplying additional ton-
nage to any American operator, or by operation of vessels directly by the 
Secretary, until the Secretary considers the special rate reduction and oper-
ation unnecessary for the benefit of those farmers and producers. 
‘‘(d) INTERCOASTAL AND INLAND WATER TRANSPORTATION.—The Sec-
retary shall investigate, determine, and keep current records of intercoastal 
and inland water transportation, including their relation to transportation 
by land and air. 
‘‘(e) OBSOLETE TONNAGE AND TRAMP SERVICE.—The Secretary shall 
make studies and reports to Congress on— 
‘‘(1) the scrapping or removal from service of old or obsolete mer-
chant tonnage owned by the United States Government or in use in 
the merchant marine; and 
‘‘(2) tramp shipping service and the advisability of citizens of the 
United States participating in that service with vessels under United 
States registry. 
‘‘(f) MORTGAGE LOANS.—The Secretary shall investigate the legal status 
of mortgage loans on vessel property, with a view to the means of improving 
the security of those loans and of encouraging investment in American ship-
ping. 
‘‘§ 50110. Securing preference to vessels of the United States 
‘‘(a) POSSIBILITIES OF PROMOTING CARRIAGE.—The Secretary of Trans-
portation shall investigate, determine, and keep current records of the possi-
bilities of promoting the carriage of United States foreign trade in vessels 
of the United States. 
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