United States Code, is amended by striking the item
relating to section 12106 and inserting the follow-
ing:
‘‘12106. Coastwise endorsements and certificates.’’.
(d) INLAND WATERWAYS ENDORSEMENTS.—
(1) IN
GENERAL.—Chapter 121 of title 46,
United States Code, is amended by inserting after
section 12106 the following new section:
‘‘§ 12107. Inland waterways endorsements
‘‘A certificate of documentation may be endorsed with
an inland waterways endorsement for a vessel that—
‘‘(1) is eligible for documentation; and
‘‘(2)(A) was built in the United States; or
‘‘(B) was not built in the United States, but—
‘‘(i) was captured in war by citizens of the
United States and lawfully condemned as prize;
‘‘(ii) was adjudged to be forfeited for a
breach of the laws of the United States; or
‘‘(iii) is qualified for documentation under
section 4136 of the Revised Statutes (46 App.
U.S.C. 14).’’.
(2) CONFORMING AMENDMENT.—The table of
sections at the beginning of chapter 121 of title 46,
United States Code, is amended by inserting after
the item relating to section 12106 the following:
‘‘12107. Inland waterways endorsements.’’.
(e) LIMITATIONS ON OPERATIONS AUTHORIZED BY
CERTIFICATES.—Section 12110(b) of title 46, United
States Code, is amended—
(1) by striking ‘‘coastwise trade’’ and inserting
‘‘coastwise trade or inland waterways trade’’; and
(2) by striking ‘‘that trade’’ and inserting
‘‘those trades’’.
SEC. 4. TRANSPORTATION OF MERCHANDISE IN THE
COASTWISE 
AND 
INLAND 
WATERWAYS
TRADES.
(a) IN GENERAL.—Section 27 of the Merchant Ma-
rine Act, 1920 (46 U.S.C. App. 883) is amended to read
as follows:
‘‘SEC. 27. PROHIBITION.
‘‘No merchandise, including merchandise owned by
the United States Government, a State (as defined in sec-
tion 2101 of title 46, United States Code), or a political
subdivision of a State, and including material without
value, shall be transported by water, on penalty of forfeit-
ure of the merchandise (or a monetary amount not to ex-
ceed the value of the merchandise, as determined by the
Secretary of the Treasury, or the actual cost of the trans-
portation, whichever is greater, to be recovered from any
cosigner, seller, owner, importer, consignee, agent, or
other person that transports or causes the merchandise
to be transported by water)—
‘‘(1) in the coastwise trade, in any vessel other
than—
‘‘(A) a vessel documented with a coastwise
endorsement under section 12106(a) of title 46,
United States Code; or
‘‘(B) a vessel that has been issued a coast-
wise certificate under section 12106(b) of title
46, United States Code, that is in effect for en-
gaging in the transportation of merchandise; or
‘‘(2) in the inland waterways trade in any vessel
other than a vessel documented with an inland wa-
terways endorsement under section 12107 of title
46, United States Code.’’.
(b) REPEAL.—Section 27A of the Merchant Marine
Act, 1920 (46 App. U.S.C. 883–1) is repealed.
SEC. 5. TRANSPORTATION OF PASSENGERS.
(a) IN GENERAL.—Section 8 of the Act of June 19,
1886 (24 Stat. 81, chapter 421; 46 U.S.C. App. 289) is
amended to read as follows:
‘‘SEC. 8. PROHIBITION.
‘‘No passengers shall be transported by water, on
penalty of $200 for each passenger so transported or the
actual cost of the transportation, whichever is greater, to
be recovered from the vessel so transporting the pas-
senger—
‘‘(1) in the coastwise trade, in any vessel other
than—
‘‘(A) a vessel documented with a coastwise
endorsement under section 12106 of title 46,
United States Code; or
‘‘(B) a vessel that has been issued a coast-
wise certificate under section 12106(b) of title
46, United States Code, that is in effect for en-
gaging in the transportation of merchandise;
and
‘‘(2) in the inland waterways trade, in any ves-
sel other than a vessel documented with an inland
waterways endorsement under section 12107 of title
46, United States Code.’’.
(b) REPEALS.—The following provisions are repealed:
(1) The Act of April 26, 1938 (52 Stat. 223,
chapter 174; 46 U.S.C. App. 289a).
(2) Section 12(22) of the Maritime Act of 1981
(46 U.S.C. App. 289b).
(3) Public Law 98–563 (46 U.S.C. App. 289c).
SEC. 6. TOWING AND SALVAGING OPERATIONS.
Section 4370 of the Revised Statutes (46 U.S.C. App.
316) is amended—
(1) by striking subsection (b), and by redesig-
nating subsections (c), (d), and (e) as subsections
(b), (c), and (d);
(2) by amending subsections (a), (b), and (c) to
read as follows:
‘‘(a) No vessel (including any barge), other than a
vessel in distress, may be towed—
‘‘(1) in the coastwise trade or, when the towed
vessel is transporting valueless material or any
dredged material, regardless of whether it has com-
mercial value, from a point or place in the United
States or a point or place on the high seas within
the Exclusive Economic Zone as defined in the Pres-
idential Proclamation of March 10, 1983, to another
point or place in the United States or a point or
place on the high seas within the Exclusive Eco-
nomic Zone, by any vessel other than—
‘‘(A) a vessel documented with a coastwise
endorsement under section 12106(a) of title 46,
United States Code;
‘‘(B) a vessel registered in a foreign coun-
try, if the Secretary of Transportation makes a
finding, pursuant to information obtained and
furnished by the Secretary of State, that the
governments of the nations of registry and of
the citizenship or nationality of each owner of
record (and if such owner is not an individual,
than the individual at the ultimate tier of own-
ership) of such vessel extend reciprocal privi-
leges to vessels of the United States to tow ves-
sels (including barges) in the coastal waters of
those countries; or
‘‘(2) in the inland waterways trade by any ves-
sel other than a vessel documented with an inland
waterways endorsement under section 12107 of title
46, United States Code.
‘‘(b)(1) The owner and master of any vessel that tows
another vessel (including a barge) in violation of this sec-
tion shall each be liable to the United States Government
for a civil penalty in an amount not less than $250 and
not greater than $1,000. The penalty shall be enforceable
through the district court of the United States for any
district in which the offending vessel is found.
‘‘(2) A penalty specified in paragraph (1) shall con-
stitute a lien upon the offending vessel, and that vessel
shall not be granted clearance until that penalty is paid.
‘‘(3) In addition to the penalty specified in paragraph
(1), the offending vessel shall be liable to the United
States Government for a civil penalty in an amount equal
to $50 per ton of the measurement of the vessel towed
in violation of this section, which shall be recoverable in
a libel or other enforcement action conducted through the
district court for the United States for the district in
which the offending vessel is found.
‘‘(c)(1) No vessel shall engage in salvaging operations
on the Atlantic or Pacific coast of the United States, in
any portion of the Great Lakes or their connecting or trib-
utary waters, including any portion of the Saint Lawrence
River through which the international boundary line ex-
tends, or in territorial waters of the United States on the
Gulf of Mexico, except—
‘‘(A) a vessel that is documented under the laws
of the United States;
‘‘(B) a vessel registered in a foreign country, if
the Secretary of Transportation makes a finding,
pursuant to information obtained and furnished by
the Secretary of State, that the governments of the
nations of registry and the citizenship or nationality
of each owner of record (and if such owner is not
an individual, than the individual at the ultimate tier
of ownership) of such vessel extend reciprocal privi-
leges to vessels of the United States to engage in
salvaging operations in the coastal waters of those
countries;
‘‘(1) on the navigable waters included in the
coastwise trade, if—
‘‘(A) the vessel is documented with a coast-
wise endorsement under section 12106(a) of
title 46, United States Code; or
‘‘(B) the vessel is registered in a foreign
country and the Secretary of Transportation
makes a finding, pursuant to information ob-
tained and furnished by the Secretary of State,
that the governments of the nations of registry
and the citizenship or nationality of each owner
of record (and if such owner is not an individ-
ual, than the individual at the ultimate tier of
ownership) of such vessel extend reciprocal
privileges to vessels of the United States to en-
gage in dredging operations in the coastal wa-
ters of those countries;
‘‘(2) on the navigable waters included in the in-
land waterways trade, if—
‘‘(A) the vessel is documented with an in-
land waterways endorsement under section
12107 of title 46, United States Code; or
‘‘(B) the vessel would be qualified to be
documented under the laws of the United
States with a coastwise endorsement under sec-
tion 12106(a) of title 46, United States Code,
except that the vessel was not built in the Unit-
ed States.
‘‘(b) PENALTIES.—When a vessel is operated in
knowing violation of this section, that vessel and its equip-
ment are liable to seizure by and forfeiture to the United
States Government.’’.
SEC. 8. CITIZENSHIP AND TRANSFER PROVISIONS.
(a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS,
AND ASSOCIATIONS.—Section 2 of the Shipping Act, 1916
(46 U.S.C. App. 802) is amended—
(1) in subsection (a)—
(A) by inserting a period after ‘‘possession
thereof’’; and
(B) by striking all that follows the period
inserted in subparagraph (A) through the end
of the subsection; and
(2) by striking subsection (c).
(b) APPROVAL OF TRANSFER OF REGISTRY OR OP-
ERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR
FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES.—
Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808)
is amended—
(1) by amending subsection (d)(4) to read as
follows:
‘‘(4) A person that charters, sells, or transfers
a vessel, or interest in or control of a vessel, or
places a documented vessel under foreign registry, or
operates that vessel under the authority of a foreign
country, in violation of this section is liable to the
United States Government for a civil penalty of not
more than $10,000 for each violation.’’; and
(2) by adding at the end the following:
‘‘(e) To promote the transfer of foreign vessels to be
documented under chapter 121 of title 46, United States
Code, the Secretary may grant approval under subsection
(c) before the date the vessel is documented.’’.
SEC. 9. LABOR PROVISIONS.
(a) LIABILITY FOR INJURY OR DEATH OF MASTER
OR CREW MEMBER.—Section 20(a) of the Act of March
4, 1915 (38 Stat. 1185, chapter 153; 46 U.S.C. App.
688(a)), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by adding at the end of paragraph (1) (as
designated under paragraph (1) of this subsection)
the following new sentence: ‘‘In an action brought
under this subsection against a defendant employer
that does not reside or maintain an office in the
United States (including any territory or possession
of the United States) and that engages in any enter-
prise that makes use of one or more ports in the
United States (as defined in section 2101 of title 46,
United States Code), jurisdiction shall be under the
district court most proximate to the place of the oc-
currence of the personal injury or death that is the
subject of the action.’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2)(A) The employer of a master or member of the
crew of a vessel—
‘‘(i) may, at the election of the employer, par-
ticipate in an authorized compensation plan under
the Longshore and Harbor Workers’ Compensation
Act (33 U.S.C. 901 et seq.); and
‘‘(ii) if the employer makes an election under
clause (i), notwithstanding section 2(3)(G) of the
Longshore and Harbor Workers’ Compensation Act
(33 U.S.C. 902(3)(G)), shall be subject to that Act.
‘‘(B) If an employer makes an election, in accordance
with subparagraph (A), to participate in an authorized
compensation plan under the Longshore and Harbor
Workers’ Compensation Act—
‘‘(i) a master or crew member employed by that
employer shall be considered to be an employee for
the purposes of that Act; and
‘‘(ii) the liability of that employer under that
Act to the master or crew member, or to any person
otherwise entitled to recover damages from the em-
ployer based on the injury, disability, or death of the
master or crew member, shall be exclusive and in
lieu of all other liability.’’.
(b) MINIMUM REQUIREMENTS.—All vessels, whether
documented in the United States or not, operating in the
coastwise trade of the United States shall be subject to
minimum international labor standards for seafarers
under international agreements in force for the United
States, as determined by the Secretary of Transportation
on the advice of the Secretaries of Labor and Defense.
SEC. 10. REGULATIONS REGARDING VESSELS.
(a) APPLICABLE MINIMUM REQUIREMENTS.—Except
as provided in subsection (b), the minimum requirements
for vessels engaging in the transportation of cargo or mer-
chandise in the United States coastwise trade shall be the
recognized international standards in force for the United
States (as determined by the Secretary of the department
in which the Coast Guard is operating, in consultation
with any other official of the Federal Government that the
Secretary determines to be appropriate).
(b) CONSISTENCY
IN
APPLICATION
OF
STAND-
ARDS.—In any case in which any minimum requirement
for vessels referred to in subsection (a) is inconsistent with
a minimum that is applicable to vessels that are docu-
mented in a foreign country and that are admitted to en-
gage in the transportation of cargo and merchandise in
the United States coastwise trade, the standard applicable
to such vessels that are documented in a foreign country
shall be the standard to be applied to United States docu-
mented vessels.
(c) MINIMUM REQUIREMENTS FOR PASSENGER VES-
SELS.—The minimum requirements for all vessels engag-
ing in carriage of passengers in the United States in coast-
wise trade (including United States documented vessels
and foreign documented vessels) shall be all safety, man-
ning, inspection, construction, and equipment require-
ments applicable to United States vessels documented
under the laws of the United States to engage in coastwise
passenger trade, to the extent that those requirements are
consistent with applicable international law and treaties
to which the United States is a signatory.
SEC. 11. ENVIRONMENTAL STANDARDS.
All vessels, whether documented under the laws of the
United States or not, engaging in the United States coast-
wise trade shall comply with all applicable United States
and international environmental standards in force for the
United States.
SEC. 12. NATIONAL SECURITY REQUISITION OR CHARTER
OF VESSELS THAT REGULARLY ENGAGE IN
COASTWISE TRADE.
Section 902(a) of the Merchant Marine Act, 1936 (46
App. U.S.C. 1242(a)) is amended in the first sentence by
inserting ‘‘any vessel that regularly engages in coastwise
trade (as that term is defined in section 2101 of title 46,
United States Code),’’ after ‘‘documented vessel,’’.
SEC. 13. REQUIREMENTS FOR CERTAIN NONCITIZENS IR-
REGULARLY ENGAGING IN DOMESTIC COAST-
WISE TRADE.
Each person or entity that is not a citizen of the
United States, as defined in section 2101(3a) of title 46,
United States Code, that owns or operates vessels that ir-
regularly engage in the United States domestic coastwise
trade shall—
(1) name an agent upon whom process may be
served;
(2) abide by all applicable laws of the United
States, including applicable environmental and tax
laws; and
(3) post evidence of documentation and en-
dorsements aboard such vessel indicating the owner
or owners of such vessel, including any person con-
trolling vessels and the number of port calls and
coastwise trips made during that calendar year.
For purposes of paragraph (3), all persons treated
as a single employer under subsection (a) or (b) of section
52 of the Internal Revenue Code of 1986 shall be treated
as 1 person.
Æ