I 
115TH CONGRESS 
1ST SESSION H. R. 3201 
To amend and enhance certain maritime programs of the Department of 
Transportation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2017 
Mr. BACON introduced the following bill; which was referred to the Committee 
on Armed Services 
A BILL 
To amend and enhance certain maritime programs of the 
Department of Transportation, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Maritime Administration Authorization and Enhance-
ment Act for Fiscal Year 2018’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Authorization of the Maritime Administration. 
Sec. 3. Removal adjunct professor limit at United States Merchant Marine 
Academy. 
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Sec. 4. Acceptance of guarantees in conjunction with partial donations for 
major projects of the United States Merchant Marine Acad-
emy. 
Sec. 5. Authority to pay conveyance or transfer expenses in connection with ac-
ceptance of a gift to the United States Merchant Marine Acad-
emy. 
Sec. 6. Authority to participate in Federal, State or other research grants. 
Sec. 7. Continuing funding for the United States Merchant Marine Academy. 
Sec. 8. Access to satellite phone during Sea Year program. 
Sec. 9. Assistance for small shipyards and maritime communities. 
SEC. 2. AUTHORIZATION OF THE MARITIME ADMINISTRA-
TION. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Department of Transportation for fiscal 
year 2018, to be available without fiscal year limitation 
if so provided in appropriations Acts, for programs associ-
ated with maintaining the United States merchant marine, 
the following amounts: 
(1) For expenses necessary for operations of the 
United 
States 
Merchant 
Marine 
Academy, 
$99,902,000, of which— 
(A) $74,851,000 shall be for Academy op-
erations, including— 
(i) the implementation of section 
3514(b) of the National Defense Author-
ization Act for Fiscal Year 2017, as added 
by section 8; and 
(ii) staffing, training, and other ac-
tions necessary to prevent and respond to 
sexual harassment and sexual assault; and 
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(B) $25,051,000 shall remain available 
until expended for capital asset management at 
the Academy. 
(2) For expenses necessary to support the State 
maritime academies, $29,550,000, of which— 
(A) $2,400,000 shall remain available until 
September 30, 2018, for the Student Incentive 
Program; 
(B) $3,000,000 shall remain available until 
expended for direct payments to such acad-
emies; 
(C) $22,000,000 shall remain available 
until expended for maintenance and repair of 
State maritime academy training vessels; 
(D) $1,800,000 shall remain available until 
expended for training ship fuel assistance; and 
(E) $350,000 shall remain available until 
expended for expenses to improve the moni-
toring of the service obligations of graduates. 
(3) For expenses necessary to support the Na-
tional Security Multi-Mission Vessel Program, 
$36,000,000, which shall remain available until ex-
pended. 
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(4) For expenses necessary to support Maritime 
Administration 
operations 
and 
programs, 
$58,694,000. 
(5) For expenses necessary to dispose of vessels 
in the National Defense Reserve Fleet, $20,000,000, 
which shall remain available until expended. 
(6) For administrative expenses associated with 
the program authorized under chapter 537 of title 
46, United States Code, $3,000,000, which shall re-
main available until expended. 
(b) ASSISTANCE FOR SMALL SHIPYARDS AND MARI-
TIME COMMUNITIES.—Section 54101(i) of title 46, United 
States Code, is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘2015 through 2017’’ and inserting ‘‘2018 
through 2020’’; 
(2) in paragraph (1), by striking ‘‘$5,000,000’’ 
and inserting ‘‘$7,500,00’’; and 
(3) 
in 
paragraph 
(2), 
by 
striking 
‘‘$25,000,000’’ and inserting ‘‘$27,500,000’’. 
SEC. 3. REMOVAL ADJUNCT PROFESSOR LIMIT AT UNITED 
STATES MERCHANT MARINE ACADEMY. 
Section 51317 of title 46, United States Code, is 
amended— 
(1) in subsection (b)— 
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(A) in paragraph (1), by striking ‘‘and’’ at 
the end; and 
(B) in paragraph (2), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(2) by striking subsections (c) and (d). 
SEC. 4. ACCEPTANCE OF GUARANTEES IN CONJUNCTION 
WITH 
PARTIAL 
DONATIONS 
FOR 
MAJOR 
PROJECTS OF THE UNITED STATES MER-
CHANT MARINE ACADEMY. 
(a) GUARANTEES.—Chapter 513 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 51320. Acceptance of guarantees with gifts for 
major projects 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) 
MAJOR
PROJECT.—The 
term 
‘major 
project’ means a project estimated to cost at least 
$1,000,000 for— 
‘‘(A) the purchase or other procurement of 
real or personal property; or 
‘‘(B) the construction, renovation, or re-
pair of real or personal property. 
‘‘(2) MAJOR
UNITED
STATES
COMMERCIAL 
BANK.—The term ‘major United States commercial 
bank’ means a commercial bank that— 
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‘‘(A) is an insured bank (as defined in sec-
tion 3(h) of the Federal Deposit Insurance Act 
(12 U.S.C. 1813(h))); 
‘‘(B) is headquartered in the United 
States; and 
‘‘(C) has total net assets of an amount 
considered by the Maritime Administrator to 
qualify the bank as a major bank. 
‘‘(3) MAJOR UNITED STATES INVESTMENT MAN-
AGEMENT FIRM.—The term ‘major United States in-
vestment management firm’ means— 
‘‘(A) any broker or dealer (as such terms 
are defined in section 3 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c)); 
‘‘(B) any investment adviser or provider of 
investment supervisory services (as such terms 
are defined in section 202 of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–2)); or 
‘‘(C) a major United States commercial 
bank that— 
‘‘(i) is headquartered in the United 
States; and 
‘‘(ii) holds for the account of others 
investment assets in a total amount consid-
ered by the Maritime Administrator to 
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qualify the bank as a major investment 
management firm. 
‘‘(4) 
QUALIFIED
GUARANTEE.—The 
term 
‘qualified guarantee’, with respect to a major 
project, means a guarantee that— 
‘‘(A) is made by one or more persons in 
connection with a donation for the project of a 
total amount in cash or securities that the Mar-
itime Administrator determines is sufficient to 
defray a substantial portion of the total cost of 
the project; 
‘‘(B) is made to facilitate or expedite the 
completion of the project in reasonable anticipa-
tion that other donors will contribute sufficient 
funds or other resources in amounts sufficient 
to pay for completion of the project; 
‘‘(C) is set forth as a written agreement 
providing that the donor will furnish in cash or 
securities, in addition to the donor’s other gift 
or gifts for the project, any additional amount 
that may become necessary for paying the cost 
of completing the project by reason of a failure 
to obtain from other donors or sources funds or 
other resources in amounts sufficient to pay the 
cost of completing the project; and 
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‘‘(D) is accompanied by— 
‘‘(i) an irrevocable and unconditional 
standby letter of credit for the benefit of 
the United States Merchant Marine Acad-
emy that is in the amount of the guarantee 
and is issued by a major United States 
commercial bank; or 
‘‘(ii) a qualified account control agree-
ment. 
‘‘(5) QUALIFIED
ACCOUNT
CONTROL
AGREE-
MENT.—The term ‘qualified account control agree-
ment’, with respect to a guarantee of a donor, means 
an agreement among the donor, the Maritime Ad-
ministrator, and a major United States investment 
management firm that— 
‘‘(A) ensures the availability of sufficient 
funds or other financial resources to pay the 
amount guaranteed during the period of the 
guarantee; 
‘‘(B) provides for the perfection of a secu-
rity interest in the assets of the account for the 
United States for the benefit of the United 
States Merchant Marine Academy with the 
highest priority available for liens and security 
interests under applicable law; 
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‘‘(C) requires the donor to maintain in an 
account with the investment management firm 
assets having a total value that is not less than 
130 percent of the amount guaranteed; and 
‘‘(D) requires the investment management 
firm, whenever the value of the account is less 
than the value required to be maintained under 
subparagraph (C), to liquidate any noncash as-
sets in the account and reinvest the proceeds in 
Treasury bills issued under section 3104 of title 
31. 
‘‘(b) ACCEPTANCE AUTHORITY.—Subject to sub-
section (d), the Maritime Administrator may accept a 
qualified guarantee from a donor or donors for the comple-
tion of a major project for the benefit of the United States 
Merchant Marine Academy. 
‘‘(c) OBLIGATION AUTHORITY.—The amount of a 
qualified guarantee accepted under this section shall be 
considered as contract authority to provide obligation au-
thority for purposes of Federal fiscal and contractual re-
quirements. Funds available for a project for which such 
a guarantee has been accepted may be obligated and ex-
pended for the project without regard to whether the total 
amount of funds and other resources available for the 
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project (not taking into account the amount of the guar-
antee) is sufficient to pay for completion of the project. 
‘‘(d) NOTICE.—The Maritime Administrator may not 
accept a qualified guarantee under this section for the 
completion of a major project until 30 days after the date 
on which a report of the facts concerning the proposed 
guarantee is submitted to Congress. 
‘‘(e) PROHIBITION ON COMMINGLING FUNDS.—The 
Maritime Administrator may not enter into any contract 
or other transaction involving the use of a qualified guar-
antee and appropriated funds in the same contract or 
transaction.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 513 of title 46, United States Code, is amend-
ed by adding at the end the following: 
‘‘51320. Acceptance of guarantees with gifts for major projects.’’. 
SEC. 5. AUTHORITY TO PAY CONVEYANCE OR TRANSFER 
EXPENSES IN CONNECTION WITH ACCEPT-
ANCE OF A GIFT TO THE UNITED STATES 
MERCHANT MARINE ACADEMY. 
Section 51315 of title 46, United States Code, is 
amended by inserting at the end the following: 
‘‘(f) PAYMENT OF EXPENSES.—The Maritime Ad-
ministrator may pay all necessary expenses in connection 
with the conveyance or transfer of a gift, devise, or be-
quest accepted under this section.’’. 
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SEC. 6. AUTHORITY TO PARTICIPATE IN FEDERAL, STATE 
OR OTHER RESEARCH GRANTS. 
(a) RESEARCH GRANTS.—Chapter 513 of title 46, 
United States Code, as amended by section 3 through 5, 
is further amended by adding at the end the following: 
‘‘§ 51321. Grants for scientific and educational re-
search 
‘‘(a) DEFINED TERM.—In this section, the term 
‘qualifying research grant’ is a grant that— 
‘‘(1) is awarded on a competitive basis by the 
Federal Government (except for the Department of 
Transportation), a State, a corporation, a fund, a 
foundation, an educational institution, or a similar 
entity that is organized and operated primarily for 
scientific or educational purposes; and 
‘‘(2) is to be used to carry out a research 
project with a scientific or educational purpose. 
‘‘(b) ACCEPTANCE
OF
QUALIFYING
RESEARCH 
GRANTS.—Notwithstanding any other provision of law, 
the United States Merchant Marine Academy may com-
pete for and accept qualifying research grants if the work 
under the grant is to be carried out by a professor or in-
structor of the United States Merchant Marine Academy. 
‘‘(c) ADMINISTRATION OF GRANT FUNDS.— 
‘‘(1) ESTABLISHMENT OF ACCOUNT.—The Mar-
itime Administrator shall establish a separate ac-
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