I
105TH CONGRESS
1ST SESSION
H. R. 2420
To permit the transportation of passengers between United States ports
by certain foreign-flag vessels and to encourage United States-flag vessels
to participate in such transportation.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 5, 1997
Mr. SANFORD introduced the following bill; which was referred to the
Committee on National Security
A BILL
To permit the transportation of passengers between United
States ports by certain foreign-flag vessels and to encour-
age United States-flag vessels to participate in such
transportation.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘United States Cruise
Tourism Act of 1997’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) It is in the interest of the United States to
maximize economic return from the growing indus-
try of pleasure cruises—
(A) by encouraging the growth of new
cruise itineraries between coastal cities in the
United States, and
(B) by encouraging the use of United
States goods, labor, and support services.
(2) In maximizing the economic benefits to the
United States from increased cruise vessel tourism,
there is a need to ensure that existing employment
and economic activity associated with United States-
flag vessels (including tour boats, river boats, intra-
coastal waterway cruise vessels, and ferries) are pro-
tected and to provide for the reemergence of a Unit-
ed States-flag cruise vessel industry.
(3) The pleasure cruise industry is one of the
fastest growing segments of the tourism industry
and is expected to grow at a rate of 5 percent a year
over the next few years.
(4) The United States-flag ocean cruise vessel
fleet consists of only a single vessel that tours the
Hawaiian Islands. As a result, all the cruise vessels
carrying passengers to and from United States ports
are foreign-flag vessels and the United States ports
served are mostly ports that are close enough to for-
eign ports to allow intermediate calls.
(5) Prohibiting cruises between United States
ports by foreign-flag vessels results in the loss of
tourist dollars and revenue for United States ports
and greatly disadvantages United States ports and
coastal communities.
SEC. 3. FOREIGN-FLAG CRUISE VESSELS.
(a) DEFINITIONS.—In this Act:
(1) COASTWISE TRADE.—The term ‘‘coastwise
trade’’ means the coastwise trade provided for in
section 12106 of title 46, United States Code, and
includes trade in the Great Lakes.
(2) CRUISE VESSEL.—The term ‘‘cruise vessel’’
means a passenger vessel of greater than 4,000
gross registered tons which provides a full range of
luxury accommodations, entertainment, dining, and
other services for its passengers.
(3) FOREIGN-FLAG CRUISE VESSEL.—The term
‘‘foreign-flag cruise vessel’’ does not include a vessel
which—
(A) provides ferry services or intracoastal
waterway cruises;
(B) regularly carries for hire both pas-
sengers and vehicles or other cargo; or
(C) serves residents of the vessel’s ports of
call in the United States as a common or fre-
quently used means of transportation between
United States ports.
(4) REPAIR AND MAINTENANCE SERVICE.—The
term ‘‘repair and maintenance service’’ includes al-
terations and upgrades.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(b) WAIVER.—Notwithstanding the provisions of sec-
tion 8 of the Act of June 19, 1886 (24 Stat. 81, ch. 421;
46 U.S.C. App. 289), or any other provision of law, and
except as otherwise provided by this section, the Secretary
may approve the transportation of passengers on foreign-
flag cruise vessels not otherwise qualified to engage in the
coastwise trade between ports in the United States, di-
rectly or by way of a foreign port.
(c) EXCEPTIONS.—
(1) IN GENERAL.—The Secretary may not ap-
prove the transportation of passengers on a foreign-
flag cruise vessel pursuant to this section with re-
spect to any coastwise trade that is being served by
a United States-flag cruise vessel.
(2) UNITED STATES-FLAG SERVICE INITIATED
AFTER
APPROVAL
OF
FOREIGN-FLAG
VESSEL.—
Upon a showing to the Secretary, by a United
States-flag cruise vessel owner or charterer, that
service aboard a cruise vessel qualified to engage in
the coastwise trade is being offered or advertised
pursuant to a Certificate of Financial Responsibility
for Indemnification of Passengers for Nonperform-
ance of Transportation from the Federal Maritime
Commission (issued pursuant to section 3 of Public
Law 89–777 (46 U.S.C. App. 817e) for service in
the coastwise trade on an itinerary substantially
similar to that of a foreign-flag cruise vessel trans-
porting passengers under authority of this section,
the Secretary shall, in accordance with subsection
(d)(2), notify the owner or charterer of the foreign-
flag cruise vessel that the Secretary will, within 3
years after the date of notification, terminate such
service.
(d) TERMINATION.—
(1) IN
GENERAL.—Coastwise trade privileges
granted to such owner or charterer of a foreign-flag
cruise vessel under this section shall expire on the
date that is 3 years after the date of the Secretary’s
notification described in subsection (c)(2).
(2) ORDER OF TERMINATION.—Any notification
issued by the Secretary under this subsection shall
be issued to the owner or charterer of a foreign-flag
cruise vessel—
(A) in the reverse order in which the for-
eign-flag cruise vessel entered service in the
coastwise trade under this section, determined
by the date of the vessel’s first coastwise sail-
ing; and
(B) in the minimum number necessary to
ensure that the passenger-carrying capacity
thereby removed from the coastwise trade serv-
ice exceeds the passenger-carrying capacity of
the United States-flag cruise vessel entering the
service.
(3) EXCEPTION.—If, at the expiration of the 3-
year period specified in paragraph (1), the United
States-flag cruise vessel that has been offering or
advertising service pursuant to a certificate de-
scribed in subsection (c)(2) has not entered the
coastwise trade described in subsection (c)(2), then
the termination of service required by paragraph (1)
shall not take effect until 180 days after the date of
the entry into that coastwise trade service by the
United States-flag cruise vessel.
(e) REQUIREMENT FOR REPAIRS IN UNITED STATES
SHIPYARDS.—
(1) IN GENERAL.—The owner or charterer of a
foreign-flag cruise vessel that is qualified to provide
coastwise trade service under this section is required
to have repair and maintenance service for the vessel
performed in the United States during the period
that such vessel is qualified for such coastwise trade
service, except in a case in which the vessel requires
repair and maintenance service while at a distant
foreign port (as defined in section 4.80a(a) of title
19, Code of Federal Regulations (or any correspond-
ing similar regulation or ruling)).
(2) ACTION IF REQUIREMENT NOT MET.—
(A) GENERAL RULE.—If the Secretary de-
termines that the owner or charterer has not
met the repair and maintenance service require-
ment described in paragraph (1), the Secretary
shall terminate the coastwise trade privileges
granted to the owner or charterer under this
section.
(B) WAIVER.—The Secretary may waive
the repair and maintenance service requirement
if the Secretary finds that—
(i) the repair and maintenance service
is not available in the United States, or
(ii) an emergency prevented the owner
or charterer from obtaining the service in
the United States.
(f) ALIEN CREWMEN.—Section 252 of the Immigra-
tion and Nationality Act (8 U.S.C. 1282) is amended—
(1) in subsection (a), by redesignating para-
graphs (1) and (2) as subparagraphs (A) and (B);
(2) by inserting ‘‘(1)’’ immediately after ‘‘(a)’’;
(3) in subsection (a)(1) (as redesignated), in
the second sentence, by inserting ‘‘, except as pro-
vided in paragraph (2), and’’ after ‘‘subsection (b),’’;
(4) by adding at the end of subsection (a)(1)
(as redesignated), the following:
‘‘(2) An immigration officer may extend for a period
or periods of up to 6 months each a conditional permit
to land that is granted under paragraph (1) to an alien
crewman employed on a vessel if the owner or charterer
of the vessel requests the extension and the immigration
officer determines that the extension is necessary to main-
tain the vessel in the coastwise trade between ports in the
United States, directly or by way of a foreign port.’’; and
(5) in subsection (b), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’.
(g) DISCLAIMER.—
(1) IN GENERAL.—Nothing in this Act shall be
construed as affecting or otherwise modifying the
authority contained in—
(A) Public Law 87–77 (46 U.S.C. App.
289b) authorizing the transportation of pas-
sengers and merchandise in Canadian vessels
between ports in Alaska and the United States;
or
(B) Public Law 98–563 (46 U.S.C. App.
289c) permitting the transportation of pas-
sengers between Puerto Rico and other United
States ports.
(2) JONES ACT.—Except as otherwise expressly
provided in this Act, nothing in this Act shall be
construed as affecting or modifying the provisions of
the Merchant Marine Act, 1920.
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