Union Calendar No. 344
103D CONGRESS
2D SESSION
H. R. 4003
[Report No. 103–544, Parts I and II]
A BILL
To authorize appropriations for fiscal year 1995 for
certain maritime programs of the Department of
Transportation, to amend the Merchant Marine
Act, 1936, as amended, to revitalize the United
States-flag merchant marine, and for other pur-
poses.
JULY 29, 1994
Reported from the Committee on Ways and Means with
an amendment, committed to the Committee of the
Whole House on the State of the Union and ordered
to be printed
IB
Union Calendar No. 344
103D CONGRESS
2D SESSION
H. R. 4003
[Report No. 103–544, Parts I and II]
To authorize appropriations for fiscal year 1995 for certain maritime pro-
grams of the Department of Transportation, to amend the Merchant
Marine Act, 1936, as amended, to revitalize the United States-flag
merchant marine, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 1994
Mr. STUDDS (for himself, Mr. FIELDS of Texas, Mr. LIPINSKI, and Mr. MAN-
TON) (all by request) introduced the following bill; which was referred to
the Committee on Merchant Marine and Fisheries
JUNE 13, 1994
Reported with an amendment, referred to the Committee on the Ways and
Means for a period ending not later than July 15, 1994, for consideration
of such provisions contained in the bill and amendment as fall within the
jurisdiction of that committee pursuant to clause 1(v), rule X
[Strike out all after the enacting clause and insert the part printed in italic]
JULY 12, 1994
Referral to the Committee on the Ways and Means extended for a period
ending not later than July 22, 1994
JULY 21, 1994
Referral to the Committee on the Ways and Means extended for a period
ending not later than July 28, 1994
JULY 28, 1994
Referral to the Committee on the Ways and Means extended for a period
ending not later than July 29, 1994
JULY 29, 1994
Additional sponsor: Mr. DARDEN
JULY 29, 1994
Reported from the Committee on the Ways and Means with an amendment,
committed to the Committee of the Whole House on the State of the
Union and ordered to be printed
[Omit the part in black brackets and insert the part in boldface roman]
[For text of introduced bill, see copy of bill as introduced on March 10, 1994]
A BILL
To authorize appropriations for fiscal year 1995 for certain
maritime programs of the Department of Transportation,
to amend the Merchant Marine Act, 1936, as amended,
to revitalize the United States-flag merchant marine, 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.
This Act may be cited as the ‘‘Maritime Administra-
tion and Promotional Reform Act of 1994’’.
TITLE I—MARITIME
ADMINISTRATION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Maritime Administra-
tion Authorization Act for Fiscal Year 1995’’.
SEC. 102. AUTHORIZATIONS FOR THE MARITIME ADMINIS-
TRATION.
(a) AUTHORIZATIONS.—For fiscal year 1995, there are
authorized to be appropriated to the Secretary of Transpor-
tation for use for the Maritime Administration the follow-
ing amounts:
(1) Any amounts necessary to liquidate obliga-
tions under operating-differential subsidy contracts
for the fiscal year 1995 portion of the total contract
authority.
(2) $43,076,000 for expenses related to man-
power, education, and training, including—
(A) $30,701,000 for maritime training at
the United States Merchant Marine Academy at
Kings Point, New York;
(B) $10,525,000 for assistance to the State
maritime academies (including reimbursement of
fuel costs associated with the operation of train-
ing vessels), of which $1,200,000 may be used for
training simulators for the State maritime acad-
emies; and
(C) $1,850,000 for manpower and addi-
tional training.
(3) $35,124,000 for operating programs, includ-
ing—
(A) $20,866,000 for general administration;
(B) $9,216,000 for development and use of
water transportation systems;
(C) $3,627,000 for research, technology, and
analysis; and
(D) $1,415,000 for national security sup-
port capabilities.
(4)(A) $248,800,000 for the National Defense Re-
serve Fleet (including the Ready Reserve Force com-
ponent of that fleet), including—
(i) $228,448,000 for maintenance and oper-
ations in support of the Ready Reserve Force;
(ii) $6,352,000 for maintenance and oper-
ations in support of the National Defense Re-
serve Fleet;
(iii) $4,000,000 for facilities; and
(iv) $10,000,000 to repair and convert the
vessel T–AGS 39 MAURY for use as a training
vessel at the California Maritime Academy.
(B) As a condition of making any payment from
amounts appropriated under subparagraph (A)(iv),
the Secretary shall require that the California Mari-
time Academy agree to make the T–AGS 39 MAURY
available to the Ready Reserve Force of the National
Defense Reserve Fleet upon request by the Secretary
and the Secretary of Defense.
(5) $4,000,000 to pay administrative costs relat-
ed to new loan guarantee commitments under title XI
of the Merchant Marine Act, 1936 (46 App. U.S.C.
1271 et seq.), relating to Federal ship mortgage insur-
ance.
(6) $50,000,000 for costs (as that term is defined
in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) of new loan guarantee commit-
ments under title XI of the Merchant Marine Act,
1936 (46 App. U.S.C. 1271 et seq.).
(b) USE OF PROCEEDS OF SALES.—Notwithstanding
any other provision of law, the Secretary of Transportation
may use proceeds derived from the sale or disposal of
National Defense Reserve Fleet vessels, that are currently
collected and retained by the Maritime Administration, as
follows:
(1) For facility and ship maintenance, mod-
ernization and repair, acquisition of equipment,
training simulators, and fuel costs necessary to main-
tain training at the United States Merchant Marine
Academy and the State maritime academies.
(2) The Secretary shall pay from those proceeds
$4,000,000 to the California Maritime Academy to re-
pair and convert the vessel T–AGS 39 MAURY for
use as a training vessel at the Academy.
(3) The Secretary shall pay from those proceeds
up to $50,000 to the Great Lakes Maritime Academy
for operation of the training vessel of the Academy.
SEC. 103. REIMBURSEMENT OF CERTAIN FEES BY STATE
MARITIME ACADEMIES.
(a) CONDITION OF ASSISTANCE.—Section 1304(d) of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1295(d))
is amended by adding at the end the following:
‘‘(3)(A) Subject to subparagraph (B), an agreement
under this subsection shall require a State maritime acad-
emy to reimburse each qualified individual for any fee or
charge for which the individual is liable to the United
States for—
‘‘(i) the issuance of an entry level license under
chapter 71 of title 46, United States Code;
‘‘(ii) the first issuance of a merchant mariner’s
document under chapter 73 of that title;
‘‘(iii) an evaluation or examination for such a
license or merchant mariner’s document conducted be-
fore the end of the period described in subparagraph
(D)(ii); or
‘‘(iv) an application for such a license, merchant
mariner’s document, evaluation, or examination.
‘‘(B) A State maritime academy shall reimburse quali-
fied individuals under subparagraph (A) to the extent
amounts are available under subparagraph (C).
‘‘(C) In addition to annual payments under para-
graph (1)(A) and subject to the availability of appropria-
tions, the Secretary shall pay annually to each State mari-
time academy that enters into an agreement under para-
graph (1) amounts to reimburse qualified individuals under
subparagraph (A).
‘‘(D) In this paragraph, the term ‘qualified individual’
means an individual who—
‘‘(i) is attending or is a graduate of a State
maritime academy;
‘‘(ii) fulfills the requirements for a license or
merchant mariner’s document described in subpara-
graph (A) not later than 3 months after the date the
individual graduates from a State maritime acad-
emy; and
‘‘(iii) is liable for a fee or charge described in
subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) is effective October 1, 1994.
(c) AMENDMENT OF EXISTING AGREEMENTS.—As soon
as practicable after the date of the enactment of this Act,
the Secretary of Transportation shall amend agreements
under section 1304(d) of the Merchant Marine Act, 1936
(46 App. U.S.C. 1295c(d)) pursuant to the amendment
made by subsection (a).
(d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—In
addition to amounts authorized to be appropriated in sec-
tion 102 for assistance to State maritime academies, there
is authorized to be appropriated $300,000 for fiscal year
1995 to reimburse qualified individuals pursuant to the
amendment made by subsection (a).
SEC. 104. TERMINATION OF CONDITION FOR STATE MARI-
TIME ACADEMY ASSISTANCE.
(a) IN GENERAL.—Section 1304(f)(1) of the Merchant
Marine Act, 1936 (46 App. U.S.C. 1295c(f)(1)) is amended
to read as if section 3 of the Act of October 13, 1989 (Public
Law 101–115; 103 Stat. 692), had not been enacted.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall be effective October 13, 1989.
(c) CLERICAL AMENDMENTS.—
(1) Section 3 of the Act of October 13, 1989
(Public Law 101–115; 103 Stat. 692), is repealed.
(2) Section 706 of the Federal Maritime Com-
mission Authorization Act of 1990 (46 App. U.S.C.
1295c note) is repealed.
SEC. 105. MAINTENANCE CONTRACTS FOR NATIONAL DE-
FENSE RESERVE FLEET VESSELS.
The Secretary of Transportation may enter into a con-
tract for the maintenance of the National Defense Reserve
Fleet, including the Ready Reserve Force, only for—
(1) the repair, activation, operation, berthing,
towing, or lay-up of a vessel;
(2) a vessel used by a State maritime academy;
or
(3) obtaining maintenance technical services
when—
(A) the technical expertise required for that
service is beyond the capabilities of the Fleet
staff or when the Fleet has insufficient personnel
resources to adequately maintain the Fleet; and
(B) the contract does not result in reducing
employment at the Fleet site.
SEC. 106. MAINTENANCE OF READY RESERVE FORCE VES-
SELS IN REDUCED OPERATING STATUS.
The Secretary shall, during fiscal year 1995, maintain
in a reduced operating status—
(1) at least 29 vessels in the Ready Reserve Force
component of the National Defense Reserve Fleet, or
(2) a lesser number of those vessels that the Sec-
retary determines to be practicable based on the ap-
propriations available for that fiscal year for mainte-
nance of vessels in that force.
SEC. 107. VESSEL REPAIR AND MAINTENANCE PILOT PRO-
GRAM.
(a) IN GENERAL.—The Secretary of Transportation
shall conduct a pilot program to evaluate the feasibility of
using long-term contracts for the maintenance and repair
of outported vessels in the Ready Reserve Force to enhance
the readiness of those vessels. Under the pilot program, the
Secretary, subject to the availability of appropriations and
within 6 months after the date of the enactment of this Act,
shall award 9 contracts for this purpose.
(b) USE
OF
VARIOUS
CONTRACTING
ARRANGE-
MENTS.—In conducting a pilot program under this section,
the Secretary of Transportation shall use contracting ar-
rangements similar to those used by the Department of De-
fense for procuring maintenance and repair of its vessels.
(c) CONTRACT REQUIREMENTS.—Each contract with
a shipyard under this section shall—
(1) subject to subsection (d), provide for the pro-
curement from the shipyard of all repair and mainte-
nance 
(including 
activation, 
deactivation, 
and
drydocking) for 1 vessel in the Ready Reserve Force
that is outported in the geographical vicinity of the
shipyard; and
(2) be effective for 3 years.
(d) LIMITATION OF WORK UNDER CONTRACTS.—A
contract under this section may not provide for the procure-
ment of operation or manning for a vessel that may be pro-
cured under another contract for the vessel to which section
11(d)(2) of the Merchant Ship Sales Act of 1946 (50 App.
U.S.C. 1774(d)(2)) applies.
(e) GEOGRAPHIC DISTRIBUTION.—The Secretary shall
seek to distribute contract awards under this section to ship-
yards located throughout the United States.
(f) REPORTS.—The Secretary shall submit to the
Congress—
(1) an interim report on the effectiveness of each
contract under this section in providing for economic
and efficient repair and maintenance of the vessel
covered by the contract, no later than 20 months after
the date of the enactment of this Act; and
(2) a final report on that effectiveness no later
than 6 months after the termination of all contracts
awarded pursuant to this section.
SEC. 108. AMENDMENTS RELATING TO COAST GUARD MARI-
TIME ACADEMY RESERVE TRAINING PRO-
GRAM.
(a) NAVAL RESERVE STATUS.—Section 1304(g)(2) of
the Merchant Marine Act, 1936 (46 App. U.S.C.
1295c(g)(2)) is amended by inserting before the period the
following: ‘‘, unless the individual participates in the Coast
Guard Maritime Academy Reserve Training Program’’.
(b) 
RESERVE
SERVICE
OBLIGATION.—Section
1304(g)(3)(D) of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1295c(g)(3)(D)) is amended by—
(1) inserting ‘‘(i)’’ after ‘‘commissioned officer’’;
(2) inserting ‘‘(except as provided in clause
(ii))’’ after ‘‘the United States Coast Guard Reserve’’;
and
(3) inserting before the semicolon at the end the
following: ‘‘; or (ii) in the United States Coast Guard
Reserve for such period following that date of gradua-
tion as may be established by the Secretary of the de-
partment in which the Coast Guard is operating, in
the case of an individual that participates in the
Coast Guard Maritime Academy Reserve Training
Program’’.
(c) PENALTIES FOR FAILURE TO FULFILL INCENTIVE
PAYMENT AGREEMENT.—Section 1304(g) of the Merchant
Marine Act, 1936 (46 App. U.S.C. 1295c(g)) is amended—
(1) in paragraph (4) by inserting ‘‘, except as
provided in paragraph (8),’’ after ‘‘such individual
may’’;
(2) in paragraph (5) by inserting ‘‘, except as
provided in paragraph (8),’’ after ‘‘such individual
may’’; and
(3) by adding at the end the following:
‘‘(8)(A) Paragraphs (4) and (5) shall not apply to a
failure to fulfill a part of an agreement, by an individual
who—
‘‘(i) is enlisted in the United States Coast Guard
Reserve; and
‘‘(ii) participates in the Coast Guard Maritime
Academy Reserve Training Program.
‘‘(B) If the Secretary determines that an individual
described in subparagraph (A) has failed to fulfill any part
of the agreement (required by paragraph (1)) described in
paragraph (3), the individual may be ordered to active duty
in the Coast Guard to serve for a period of time determined
by the Commandant of the Coast Guard, not to exceed 2
years. In cases of hardship as determined by the Secretary,
the Secretary may waive this subparagraph.’’.
(d) COAST GUARD MARITIME ACADEMY RESERVE
TRAINING PROGRAM DEFINED.—Section 1304(g) of the
Merchant Marine Act, 1936 (46 App. U.S.C. 1295c(g)), as
amended by this section, is further amended by adding at
the end the following:
‘‘(9) In this subsection, the term ‘Coast Guard Mari-
time Academy Reserve Training Program’ means that pro-
gram established by the Commandant of the Coast Guard,
as in effect on the date of the enactment of the Maritime
Administration Authorization Act for Fiscal Year 1995.’’.
SEC. 109. MERCHANT SHIP SALES ACT OF 1946 AMENDMENT.
Section 11 of the Merchant Ship Sales Act of 1946 (50
App. U.S.C. 1744) is amended as follows:
(1) In subsection (b)(2) by striking ‘‘Secretary of
the Navy,’’ and inserting ‘‘Secretary of Defense,’’.
(2) By striking subsection (c) and redesignating
subsection (d) as subsection (c).
SEC. 110. REEMPLOYMENT RIGHTS FOR CERTAIN MER-
CHANT SEAMEN.
(a) IN GENERAL.—Title III of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1131) is amended by inserting
after section 301 the following new section:
‘‘SEC. 302. (a) An individual who is certified by the
Secretary of Transportation under subsection (c) shall be
entitled to reemployment rights and other benefits substan-
tially equivalent to the rights and benefits provided for by
chapter 43 of title 38, United States Code, for any member
of a Reserve component of the Armed Forces of the United
States who is ordered to active duty.
‘‘(b) An individual may submit an application for cer-
tification under subsection (c) to the Secretary of Transpor-
tation not later than 45 days after the date the individual
completes a period of employment described in subsection
(c)(1)(A) with respect to which the application is submitted.
‘‘(c) Not later than 20 days after the date the Secretary
of Transportation receives from an individual an applica-
tion for certification under this subsection, the Secretary
shall—
‘‘(1) determine whether or not the individual—
‘‘(A) was employed in the activation or op-
eration of a vessel—
‘‘(i) in the National Defense Reserve
Fleet maintained under section 11 of the
Merchant Ship Sales Act of 1946, in a pe-
riod in which that vessel was in use or
being activated for use under subsection (b)
of that section;
‘‘(ii) that is requisitioned or purchased
under section 902 of this Act; or
‘‘(iii) that is owned, chartered, or con-
trolled by the United States and used by the
United States for a war, armed conflict, na-
tional emergency, or maritime mobilization
need (including for training purposes or
testing for readiness and suitability for mis-
sion performance); and
‘‘(B) during the period of that employment,
possessed a valid license, certificate of registry,
or merchant mariner’s document issued under
chapter 71 or chapter 73 (as applicable) of title
46, United States Code; and
‘‘(2) if the Secretary makes affirmative deter-
minations under paragraph (1) (A) and (B), certify
that individual under this subsection.
‘‘(d) For purposes of reemployment rights and benefits
provided by this section, a certification under subsection (c)
shall be considered to be the equivalent of a certificate re-
ferred to in paragraph (1) of section 4301(a) of title 38,
United States Code.’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall apply to employment described in section
302(c)(1)(A) of the Merchant Marine Act, 1936, as amended
by subsection (a), occurring after August 2, 1990.
(c) EMPLOYMENT ENDING BEFORE ENACTMENT.—
Notwithstanding subsection (b) of section 302 of the Mer-
chant Marine Act, 1936, as amended by this Act, an indi-
vidual who, in the period beginning August 2, 1990, and
ending on the date of the enactment of this Act, completed
a period of employment described in subsection (c)(1)(A)
of that section may submit an application for certification
under subsection (c) of that section with respect to that em-
ployment not later than 45 days after the date of the enact-
ment of this Act.
(d) REGULATION.—Not later than 120 days after the
date of the enactment of this Act, the Secretary of Transpor-
tation shall issue regulations implementing this section.
SEC. 111. PILOT PROGRAM ON SEALIFT TRAINING.
The Secretary of Transportation shall establish, subject
to the availability of appropriations in addition to the
amount authorized to be appropriated under section
102(a)(2), a 3-year period pilot program for Sealift Train-
ing at the Massachusetts Maritime Academy.
SEC. 112. MASSACHUSETTS CENTER FOR MARINE ENVIRON-
MENTAL PROTECTION.
The Secretary of Transportation shall pay, subject to
the availability of appropriations in addition to the
amount authorized to be appropriated under section 102,
$242,000 to the Massachusetts Maritime Academy for as-
sistance to the Massachusetts Center for Marine Environ-
mental Protection.
SEC. 113. REPORT ON SEALIFT MANPOWER MOBILIZATION
PROGRAM.
Not later than 6 months after the date of the enactment
of this Act, the Secretary of Transportation shall submit
a report to the Congress on—
(1) the feasibility of conducting on Ready Re-
serve Force vessels a program to familiarize civilian
merchant mariners with the operation of those vessels,
for the purpose of facilitating national defense mobili-
zations involving those vessels; and
(2) the ability of the Coast Guard to track the
availability of qualified civilian merchant mariners
for service on those vessels during those mobilizations.
SEC. 114. VESSEL DOCUMENTATION.
Notwithstanding section 12108 of title 46, United
States Code, the Secretary of Transportation may issue a
certificate of documentation with appropriate endorsement
for employment in the fisheries for the vessel ABORIGINAL
(United States official number 942118).
SEC. 115. MARITIME POLICY REPORT.
(a) REPORT.—The Secretary of Transportation shall
transmit to the Congress a report setting forth the Depart-
ment of Transportation’s policies for the 5-year period
beginning October 1, 1994, with respect to—
(1) fostering and maintaining a United States
merchant marine capable of meeting economic and
national security requirements;
(2) improving the vitality and competitiveness of
the United States merchant marine and the maritime
industrial base, including ship repairers, ship-
builders, ship manning, ship operators, and ship
suppliers;
(3) reversing the precipitous decrease in the
number of ships in the United States-flag fleet and
the Nation’s shipyard and repair capability;
(4) stabilizing and eventually increasing the
number of mariners available to crew United States
merchant vessels;
(5) achieving adequate manning of merchant
vessels for national security needs during a mobiliza-
tion;
(6) ensuring that sufficient civil maritime re-
sources will be available to meet defense deployment
and essential economic requirements in support of our
national security strategy;
(7) ensuring that the United States maintains
the capability to respond unilaterally to security
threats in geographic areas not covered by alliance
commitments and otherwise meets sealift requirements
in the event of crisis or war;
(8) ensuring that international agreements and
practices do not place United States maritime indus-
tries at an unfair competitive disadvantage in world
markets;
(9) ensuring that Federal agencies promote,
through efficient application of laws and regulations,
the readiness of the United States merchant marine
and supporting industries; and
(10) any other relevant maritime policies.
(b) DATE
OF TRANSMITTAL.—The report required
under subsection (a) shall be transmitted along with the
President’s budget submission, pursuant to section 1105 of
title 31, United States Code, for fiscal year 1996.
SEC. 116. TITLE XI LOAN GUARANTEES.
Title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) is amended—
(1) in section 1101(b), by striking ‘‘owned by
citizens of the United States’’;
(2) in section 1104B(a), in the material preced-
ing paragraph (1), by striking ‘‘owned by citizens of
the United States’’; and
(3) in section 1110(a), by striking ‘‘owned by
citizens of the United States’’.
SEC. 117. STUDY OF FEASIBILITY OF SHIP REPAIR DIF-
FERENTIAL ASSISTANCE PROGRAM.
(a) STUDY.—The Secretary of Transportation shall
conduct a study of the feasibility of establishing a program
of financial assistance to qualified ship repair yards, to
make those yards more competitive in international ship
repair markets by paying to those yards the difference be-
tween the cost of repairing vessels in those yards and the
cost of repairing vessels in foreign ship repair yards.
(b) REPORT.—The Secretary of Transportation shall
submit to the Congress by not later than 1 year after the
date of the enactment of this Act a report on the findings
and recommendations of the study required by subsection
(a).
(c) QUALIFIED SHIP REPAIR YARD DEFINED.—For
purposes of this section, the term ‘‘qualified ship repair
yard’’ has the meaning given that term in section 118(d).
SEC. 118. QUALIFIED SHIP REPAIR YARD MODERNIZATION
ASSISTANCE.
(a) GRANT AUTHORITY.—The Secretary of Transpor-
tation may use available amounts to make grants to quali-
fied ship repair yards to pay 75 percent of the cost of ac-
quiring advanced ship repair technology and modern ship
repair technology.
(b) CONDITION OF ASSISTANCE.—As a condition of re-
ceiving a grant under this section, the Secretary shall re-
quire that a qualified ship repair yard provide, in cash
contributions, 25 percent of the costs incurred in acquiring
advanced ship repair technology and modern ship repair
technology with the grant.
(c) PRIORITY.—In making grants under this section,
the Secretary shall give priority to qualified ship repair
yards for which assistance under this section will permit
the performance of ship repairs more efficiently and in a
manner that is more competitive with foreign ship repair
yards.
(d) DEFINITIONS.—For purposes of this section:
(1) ADVANCED SHIP REPAIR TECHNOLOGY.—The
term ‘‘advanced ship repair technology’’ includes—
(A) numerically controlled machine tools,
robots, automated process control equipment,
computerized flexible manufacturing systems, as-
sociated computer software, and other technology
for improving ship repair and related industrial
production which advance the state-of-the-art;
and
(B) novel techniques and processes designed
to improve ship repair quality, productivity,
and practice, and to promote sustainable devel-
opment, including engineering design, quality
assurance, concurrent engineering, continuous
process production technology, energy efficiency,
waste minimization, design for recyclability or
parts reuse, inventory management, upgraded
worker skills, and communications with cus-
tomers and suppliers.
(2) MODERN SHIP REPAIR TECHNOLOGY.—The
term ‘‘modern ship repair technology’’ means the best
available proven technology, techniques, and processes
appropriate to enhancing the productivity of ship re-
pair yards.
(3) QUALIFIED SHIP REPAIR YARD DEFINED.—
The term ‘‘qualified ship repair yard’’ means a ship-
yard located in the United States that meets the eligi-
bility qualification requirements for obtaining and
retaining a Master Ship Repair Agreement with the
United States Navy.
(e) AUTHORIZATION OF APPROPRIATIONS.—For grants
under this section there are authorized to be appropriated
to the Secretary of Transportation $17,500,000 for fiscal
year 1995, to remain available until expended.
SEC. 119. GREAT LAKES ENDORSEMENTS.
(a) REPEAL OF GREAT LAKES ENDORSEMENT.—
(1) Section 12107 of title 46, United States
Code, is repealed.
(2) The analysis at the beginning of chapter 121
of title 46, United States Code, is amended by strik-
ing the item relating to section 12107.
(3) Section 12101(b)(3) of title 46, United States
Code, is repealed.
(b) CONFORMING AMENDMENT.—Section 4370(a) of
the Revised Statutes of the United States (46 App. U.S.C.
316(a)) is amended by striking ‘‘or 12107’’.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 2793 of the Revised Statutes of
the United States (46 App. U.S.C. 111, 123) is
amended—
(A) by striking ‘‘coastwise, Great Lakes en-
dorsement’’ and all that follows through ‘‘foreign
ports,’’ and inserting ‘‘registry endorsement, en-
gaged in foreign trade on the Great Lakes or
their tributary or connecting waters in trade
with Canada,’’; and
(B) by striking ‘‘, as if from or to foreign
ports’’.
(2) The Act of March 8, 1910 (46 App. U.S.C.
132; 32 Stat. 234, chapter 86), is amended by strik-
ing ‘‘shall be exempt’’ and all that follows through the
end of the section and inserting ‘‘shall be exempt from
section 36(a) of the Act of August 5, 1909 (36 Stat.
111).’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect October 1, 1994.
ƒTITLE II—TONNAGE DUTIES
ƒSEC. 201. FINDINGS AND PURPOSES.
ƒ(a) FINDINGS.—The Congress finds the following:
ƒ(1) The Coast Guard—
ƒ(A) will spend over $400,000,000 in fiscal
year 1995 conducting search and rescue oper-
ations far into the Atlantic and Pacific Oceans
and the Gulf of Mexico to protect life and prop-
erty on United States and foreign-flag vessels;
ƒ(B) inspects vessels of all nations to ensure
their compliance with international treaties and
conventions;
ƒ(C) will spend over $470,000,000 in fiscal
year 1995 providing navigational aids to vessels
from around the world through the operation
of—
ƒ(i) LORAN, OMEGA, and the Dif-
ferential Global Positioning System; and
ƒ(ii) over 46,000 lighthouses, buoys,
daybeacons, fog signals, radar reflectors and
Vessel Traffic Service systems; and
ƒ(D) will spend over $86,000,000 in fiscal
year 1995 providing icebreaking services for ves-
sels from all nations.
ƒ(2) It is reasonable for vessel owners of all na-
tions that benefit from these services, including own-
ers of United States-flag vessels, to pay tonnage duties
to help offset the cost of providing these services.
ƒ(b) PURPOSE.—The purpose of this title is to increase
the tonnage duties imposed on vessels entering the United
States to help offset the cost of providing Coast Guard serv-
ices to those vessels.
SEC. 202. INCREASE IN TONNAGE DUTIES.
ƒ(a) INCREASED DUTIES.—Section 36 of the Act of
August 5, 1909 (46 App. U.S.C. 121, 36 Stat. 111), is
amended—
ƒ(1) by designating the first paragraph as sub-
section (a) and amending it to read as follows:
ƒ‘‘(a) TONNAGE DUTY IMPOSED
ON CERTAIN EN-
TRIES.—
ƒ‘‘(1) DUTY IMPOSED.—There is imposed on a
vessel making an entry described in paragraph (2) be-
fore fiscal year 2005 a duty of 53 cents per ton, ex-
cept that the duty for a vessel under this paragraph
shall not exceed in the aggregate $6.36 per ton in any
12-month period.
ƒ‘‘(2) ENTRY DESCRIBED.—An entry referred to
in subparagraph (A) is any of the following:
ƒ‘‘(A) FORMAL ENTRY FROM FOREIGN PORT
OR PLACE.—A formal entry in any port of the
United States from any foreign port or place,
other than an entry by a vessel that is in distress
or is not engaged in trade.
ƒ‘‘(B) OTHER ENTRY.—An entry by a ves-
sel that departs a United States port or place
and returns to the same port or place without
being entered in the United States from another
port or place, other than—
ƒ‘‘(i) an entry by a vessel of the Unit-
ed States, a recreational vessel, or a barge
(as those terms are defined in section 2101
of title 46, United States Code); and
ƒ‘‘(ii) an entry by a vessel that is in
distress or is not engaged in trade.
ƒ‘‘(3) 
OFFSETTING
RECEIPTS
OF
COAST
GUARD.—Amounts received by the United States as
duty imposed under this subsection shall be deposited
in the general fund of the Treasury as offsetting re-
ceipts of the department in which the Coast Guard is
operating and ascribed to Coast Guard activities.’’;
and
ƒ(2) by designating the remainder of the section
as subsection (b).
ƒ(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect October 1, 1994.≈
TITLE II—REVENUE PROVISIONS
Subtitle A—Tonnage Duties
SEC. 201. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the fol-
lowing:
(1) The Coast Guard—
(A) will spend over $400,000,000 in
fiscal year 1995 conducting search
and rescue operations far into the At-
lantic and Pacific Oceans and the
Gulf of Mexico to protect life and
property on United States and for-
eign-flag vessels;
(B) inspects vessels of all nations
to 
ensure 
their 
compliance 
with
international treaties and conven-
tions;
(C) will spend over $470,000,000 in
fiscal year 1995 providing naviga-
tional aids to vessels from around the
world through the operation of—
(i) LORAN, OMEGA, and the
Differential 
Global 
Positioning
System; and
(ii) over 46,000 lighthouses,
buoys, daybeacons, fog signals,
radar reflectors and Vessel Traf-
fic Service systems; and
(D) will spend over $86,000,000
in 
fiscal 
year 
1995 
providing
icebreaking services for vessels from
all nations.
(2) It is reasonable for vessel owners
of all nations that benefit from these
services, including owners of United
States-flag vessels, to pay tonnage duties
to help offset the cost of providing these
services.
(b) PURPOSE.—The purpose of this subtitle
is to increase the tonnage duties imposed on
vessels entering the United States to help off-
set the cost of providing Coast Guard services
to those vessels.
SEC. 202. INCREASE IN TONNAGE DUTIES.
(a) INCREASED DUTIES.—Section 36 of the
Act of August 5, 1909 (46 App. U.S.C. 121, 36
Stat. 111), is amended—
(1) by designating the first paragraph
as subsection (a) and amending it to read
as follows:
‘‘(a) TONNAGE DUTY IMPOSED ON CERTAIN
ENTRIES.—
‘‘(1) DUTY IMPOSED.—There is imposed
on a vessel making an entry described in
paragraph (2) before fiscal year 2005 a
duty of 22 cents per ton, except that the
duty for a vessel under this paragraph
shall not exceed in the aggregate $2.64
per ton in any 12-month period.
‘‘(2) ENTRY
DESCRIBED.—An entry re-
ferred to in subparagraph (A) is any of
the following:
‘‘(A) FORMAL ENTRY FROM FOREIGN
PORT
OR
PLACE.—A formal entry in
any port of the United States from
any foreign port or place, other than
an entry by a vessel that is in distress
or is not engaged in trade.
‘‘(B) OTHER ENTRY.—An entry by a
vessel that departs a United States
port or place and returns to the same
port or place without being entered
in the United States from another
port or place, other than—
‘‘(i) an entry by a vessel of the
United States, a recreational ves-
sel, or a barge (as those terms are
defined in section 2101 of title 46,
United States Code); and
‘‘(ii) an entry by a vessel that
is in distress or is not engaged in
trade.
‘‘(3) OFFSETTING
RECEIPTS
OF
COAST
GUARD.—Amounts received by the United
States as duty imposed under this sub-
section shall be deposited in the general
fund of the Treasury as offsetting re-
ceipts of the department in which the
Coast Guard is operating and ascribed to
Coast Guard activities.’’; and
(2) by designating the remainder of
the section as subsection (b).
(b) EFFECTIVE
DATE.—The amendments
made by subsection (a) shall take effect Octo-
ber 1, 1994.
Subtitle B—Other Revenue
Provisions
SEC. 211. INCREASE IN PER PASSENGER TAX ON TRANS-
PORTATION BY WATER.
(a) IN GENERAL.—Subsection (a) of section
4471 of the Internal Revenue Code of 1986 (re-
lating to imposition of tax on transportation
by water) is amended by adding at the end the
following new sentence: ‘‘If the value (as de-
termined under section 4462(a)(5)(B)) of the
covered voyage is $150 or more, the preceding
sentence shall be applied by substituting ‘$5’
for ‘$3’.’’
(b) EFFECTIVE
DATE.—The amendment
made by subsection (a) shall apply to voyages
beginning after December 31, 1994.
SEC. 212. TAX ON FUEL USED IN INTERNATIONAL COMMER-
CIAL WATER TRANSPORTATION.
(a) IN GENERAL.—Subchapter B of chapter
31 of the Internal Revenue Code of 1986 (relat-
ing to retail excise taxes) is amended by add-
ing at the end the following new section:
‘‘SEC. 4043. FUEL USED IN INTERNATIONAL COMMERCIAL
WATER TRANSPORTATION.
‘‘(a) IN GENERAL.—There is hereby im-
posed a tax on any liquid—
‘‘(1) sold in the United States by any
person to an owner, lessee, or other oper-
ator of a taxable commercial vessel for
use as a fuel in such vessel, or
‘‘(2) purchased in the United States
and used by any person as a fuel in such
a vessel during foreign transportation
unless there was a taxable sale of such
fuel under paragraph (1).
‘‘(b) RATE
OF TAX.—The rate of the tax
imposed by subsection (a) shall be 1 cent per
gallon.
‘‘(c) EXEMPTION FROM TAX FOR VESSELS NOT
ENGAGED IN INTERNATIONAL SHIPPING.—
‘‘(1) EXEMPTION WHERE TAX IMPOSED AT
TIME FUEL LOADED IN VESSEL.—In the case
of fuel which is loaded into the bunker of
a vessel at the time of the sale on which
tax is imposed by subsection (a), if the
purchaser 
reasonably 
estimates 
the
amount of fuel to be used in foreign
transportation before the next purchase
of fuel for such vessel, the tax imposed by
subsection (a) shall apply only to fuel
purchased at such time in the amount
certified by the purchaser to the seller as
being equal to the excess of such estimate
over the fuel in the bunker at such time
on which tax was imposed by subsection
(a).
‘‘(2) OTHER
CASES.—In any case in
which tax is imposed by subsection (a)
before the time referred to in paragraph
(1), a rule similar to the rule of para-
graph (1) shall apply under regulations
prescribed by the Secretary.
‘‘(3) ORDERING RULE ON FUEL USE.—For
purposes of determining, at the time of
purchase of fuel, the amount of tax-paid
fuel which is in the bunker of the vessel,
the vessel shall be treated as having used
tax-paid fuel (to the extent thereof) when
in foreign transportation.
‘‘(d) DEFINITIONS.—For purposes of this
section—
‘‘(1) FOREIGN TRANSPORTATION.—
‘‘(A) IN
GENERAL.—The term ‘for-
eign transportation’ means transpor-
tation by water—
‘‘(i) from any point within the
United States,
‘‘(ii) to any point outside the
United States where passengers
or cargo are loaded or unloaded,
and
‘‘(iii) to any point thereafter
(whether or not outside the Unit-
ed States).
‘‘(B) INCLUSION OF CERTAIN TRANS-
PORTATION
BETWEEN
POINTS
WITHIN
THE UNITED STATES.—The term ‘foreign
transportation’ 
includes 
transpor-
tation between 2 points within the
United States if any of the passengers
or cargo being transported by the
vessel between such 2 points is to be
transported by such vessel in foreign
transportation (as defined in sub-
paragraph (A)).
‘‘(C) 
EXCLUSION
FOR
TRANSPOR-
TATION EXCLUSIVELY WITHIN THE GREAT
LAKES.—Notwithstanding 
subpara-
graphs (A) and (B), the term ‘foreign
transportation’ 
does 
not 
include
transportation exclusively within the
Great Lakes.
‘‘(2) TAXABLE
COMMERCIAL
VESSEL.—
The term ‘taxable commercial vessel’
means any commercial vessel (as defined
in section 4462(a)(4)) which is designed
primarily for use on the high seas and
which has a draft of more than 12 feet.
‘‘(3) UNITED STATES.—The term ‘United
States’ has the meaning given such term
by section 4612(a)(4)(A).
‘‘(e) SPECIAL RULES.—
‘‘(1) TREATMENT
OF
OFFSHORE
FUEL-
ING.—For purposes of this section, the de-
livery of fuel into the bunker of a vessel
by pipeline or another vessel shall be
treated as occurring in the United States
if such fuel was removed from the United
States for such delivery.
‘‘(2) NO
PENALTY
FOR
SALE
OF
DYED
FUEL.—Section 6715 shall not apply to any
liquid on which tax is imposed by this
section.’’
(b) CREDIT OR REFUND FOR TAX-PAID FUEL
NOT
USED
IN
INTERNATIONAL
COMMERCIAL
WATER
TRANSPORTATION.—Subchapter B of
chapter 65 of such Code is amended by adding
at the end the following new section:
‘‘SEC. 6428. FUEL NOT USED IN INTERNATIONAL COMMER-
CIAL WATER TRANSPORTATION.
‘‘(a) IN GENERAL.—If tax has been imposed
by section 4043 on the sale of any fuel and the
purchaser establishes to the satisfaction of
the Secretary that such fuel was not used in
foreign transportation (as defined in section
4043(d)), the Secretary shall pay (without in-
terest) to the purchaser an amount equal to
the tax imposed by section 4043 on such fuel.
‘‘(b) APPLICABLE LAWS.—Rules similar to
the rules of section 6427(j) shall apply for pur-
poses of this section, and any reference in
subtitle F to such section shall be treated as
including a reference to this subsection.’’
(c) CONFORMING AMENDMENTS.—
(1) Subsection (a) of section 6675 of
such Code is amended by striking ‘‘or’’
before ‘‘6427’’ and by inserting after ‘‘pur-
poses)’’ the following ‘‘or 6428 (relating to
fuel not used in international commercial
water transportation)’’.
(2) Subsection (b) of section 6675 of
such Code is amended by striking ‘‘or
6427’’ and inserting ‘‘6427, or 6428’’.
(3) The section 6714 of such Code
added by section 13242 of Public Law
103–66 is redesignated as section 6715.
(4) The table of sections for part I of
subchapter B of chapter 68 of such Code
is amended by redesignating the item re-
lating to the section 6714 that was added
by such section 13242 as relating to sec-
tion 6715.
(5) The table of sections for sub-
chapter B of chapter 31 of such Code is
amended by adding at the end the follow-
ing new item:
‘‘Sec. 4043. Fuel used in international commercial
water transportation.’’
(6) The table of sections for sub-
chapter B of chapter 65 of such Code is
amended by adding at the end the follow-
ing new item:
‘‘Sec. 6428. Fuel not used in international commer-
cial water transportation.’’
(d) EFFECTIVE
DATE.—The amendments
made by this section shall apply to fuel sold
on or after January 1, 1995.
SEC. 213. LIMITATION ON CONTRACT AUTHORITY.
(a) LIMITATION ON CONTRACT AUTHORITY.—
The Secretary of Transportation may not obli-
gate more than $1,000,000,000 in total con-
tracts under the Maritime Security and Com-
petitiveness Act of 1993 or this Act between
October 1, 1994, and September 30, 2004.
(b) LIMITATION
ON
OUTLAYS.—The Sec-
retary of Transportation shall not enter into
any agreements under the Maritime Security
and Competitiveness Act of 1993 or this Act
that would result in total payments under
such agreements for any fiscal year in excess
of the limitations in the following table.
In the case of
The limitation
fiscal year:
(in millions) is:
1995 ........................................................................
$56
1996 ........................................................................
$70
1997 ........................................................................
$70
1998 ........................................................................
$72
1999 ........................................................................
$121
2000 ........................................................................
$123
2001 ........................................................................
$124
2002 ........................................................................
$124
2003 ........................................................................
$126
2004 ........................................................................
$126.
(c) COORDINATION WITH TITLE III.—Sub-
sections (a) and (b) shall apply notwithstand-
ing title III of this Act; except that such sub-
sections shall not apply to the extent addi-
tional amounts are provided by appropriation
laws (including section 302 of this Act).
TITLE III—FUNDING FOR MARI-
TIME 
PROMOTIONAL 
PRO-
GRAMS
SEC. 301. CONTRACT AUTHORITY.
The Secretary of Transportation shall expeditiously
enter into agreements under the Maritime Security and
Competitiveness Act of 1993. However, the Secretary may
not obligate more than $1,700,000,000 in total contracts
between October 1, 1994, and September 30, 2004, except
to the extent additional amounts are provided by appro-
priations laws (including section 302).
SEC. 302. TRANSFER.
The Secretary of Transportation shall use any
amounts appropriated for acquisition of vessels for the
Ready Reserve Force that are unobligated on October 1,
1994, to enter into agreements under the Maritime Secu-
rity and Competitiveness Act of 1993.
SEC. 303. AUTHORIZATION OF ADDITIONAL APPROPRIA-
TIONS.
In addition to amounts otherwise available, there are
authorized to be appropriated to the Secretary of Trans-
portation such amounts as may be necessary for entering
into and making payments under agreements under the
Maritime Security and Competitiveness Act of 1993.
SEC. 304. CONTINUING AVAILABILITY.
Amounts available or authorized to be appropriated
under this title shall remain available until expended.
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