I
106TH CONGRESS
2D SESSION
H. R. 5337
To revise the laws of the United States relating to United States cruise
vessels, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr. GILCHREST (for himself and Mr. DEFAZIO) introduced the following bill;
which was referred to the Committee on Transportation and Infrastruc-
ture, and in addition to the Committee on Armed Services, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To revise the laws of the United States relating to United
States cruise vessels, 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 SECTIONS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘United States Cruise Vessel Act’’.
(b) TABLE OF SECTIONS.—The table of sections for
this Act is as follows:
Sec. 1. Short title; table of sections.
Sec. 2. Definitions.
Title I—Operations under Certificate of Documentation
Sec. 101. Domestic cruise vessel.
Sec. 102. Repairs requirement.
Sec. 103. Construction requirement.
Sec. 104. Certain operations prohibited.
Sec. 105. Priorities within domestic markets.
Sec. 106. Report.
Sec. 107. Enforcement
Title II—Other Provisions
Sec. 201. Application with Jones Act and other Acts.
Sec. 202. Glacier Bay and other National Park Service area permits.
SEC. 2. DEFINITIONS.
In this Act:
(1) ELIGIBLE CRUISE VESSEL.—The term ‘‘eli-
gible cruise vessel’’ means a cruise vessel that—
(A) was delivered after January 1, 1980;
(B) is at least 20,000 gross registered
tons;
(C) has no fewer than 800 passenger
berths;
(D) is owned by a person that is a citizen
of the United States for the purpose of oper-
ating a vessel in the coastwise trade within the
meaning of section 2 of the Shipping Act, 1916
(46 U.S.C. App. 802) or section 12106(e) of
title 46, United States Code;
(E) provides a full range of overnight ac-
commodations, entertainment, dining, and other
services for its passengers;
(F) has a fixed smoke detection and sprin-
kler system installed throughout the accommo-
dation and service spaces, or will have such a
system installed within the time period required
by the 1992 Amendments to the Safety of Life
at Sea Convention of 1974; and
(G) meets the eligibility requirements for a
certificate of inspection under section 1137(a)
of the Coast Guard Authorization Act of 1996
(46 U.S.C. App. 1187 nt.), and complies with
the applicable international agreements and as-
sociated guidelines referred to in section
1137(a)(2) of that Act (46 U.S.C. App. 1187
nt.).
(2) ITINERARY.—The term ‘‘itinerary’’ means
the route travelled by a cruise vessel on a single voy-
age that begins at the first port at which passengers
on that voyage embark, includes each port at which
the vessel calls before the last port at which pas-
sengers on that voyage disembark, and ends at that
last port of disembarkation. For purposes of this
paragraph, the term ‘‘embark’’ and ‘‘disembark’’
have the meaning given those terms in section
4.80a(a)(4) of title 19, Code of Federal Regulations
(as such section is in effect on the date of enactment
of this Act).
(3) OPERATOR.—The term ‘‘operator’’ means
the owner, operator, or charterer.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
(5) UNITED
STATES
SHIPYARD.—The term
‘‘United States shipyard’’ means a shipyard located
in the United States.
(6) 
UNITED
STATES.—The 
term 
‘‘United
States’’ has the meaning given that term in section
2101(44) of title 46, United States Code.
TITLE 
I—OPERATIONS 
UNDER
CERTIFICATE 
OF 
DOCU-
MENTATION
SEC. 101. DOMESTIC CRUISE VESSEL.
(a) IN GENERAL.—Notwithstanding the provisions of
section 8 of the Act of June 19, 1886 (46 U.S.C. App.
289), section 27 of the Act of June 5, 1920, commonly
known as the Jones Act, (46 U.S.C. App. 883), section
27A of that Act, (46 U.S.C. App. 883–1), and section
12106 of title 46, United States Code, the Secretary shall
issue a certificate of documentation with a temporary
coastwise endorsement for an eligible cruise vessel not
built in the United States to operate in domestic
itineraries in the transportation of passengers in the coast-
wise trade between ports in the United States if the vessel
meets the requirements of this title.
(b) TERMINATION OF AUTHORITY.—The authority of
the Secretary to issue a certificate of documentation under
subsection (a) begins on the day after the date of enact-
ment of this Act and terminates on the day that is 24
months after that date.
(c) 
APPLICATION
ONLY
REQUIRED.—Notwith-
standing subsection (b), the Secretary may issue a certifi-
cate of documentation under subsection (a) more than 24
months after the date of enactment of this Act if—
(1) the Secretary received the application for
the certificate of documentation before the end of
that 24-month period; and
(2) the vessel otherwise meets the requirements
of this title.
(d) RIGHTS UNDER APPLICATION NOT TRANSFER-
ABLE.—The right to receive a certification of documenta-
tion pursuant to an application described in subsection (c)
may not be transferred by the applicant to any other per-
son. For purposes of this subsection, the transfer of that
right to a successor in interest to the applicant in connec-
tion with the reorganization, restructuring, acquisition, or
sale of the applicant’s business shall not be considered to
be a transfer to another person.
SEC. 102. REPAIRS REQUIREMENT.
(a) IN GENERAL.—The Secretary may not issue a
certificate of documentation under section 101(a) for an
eligible cruise vessel unless the operator establishes to the
satisfaction of the Secretary that—
(1) any repair, maintenance, alteration, or other
preparation of the vessel for operation under a cer-
tificate of documentation issued under section
101(a) have been, or will be, performed in a United
States shipyard; and
(2) any repair, maintenance, or alteration of the
vessel after a certificate of documentation is issued
under that section will be performed in a United
States shipyard.
(b) WAIVER.—The Secretary may waive the require-
ments of subsection (a) if the Secretary finds that the re-
pair, maintenance, alteration, or other preparation serv-
ices are not available in the United States or if an emer-
gency dictates that the vessel proceed to a foreign port.
SEC. 103. CONSTRUCTION REQUIREMENT.
(a) CONSTRUCTION CONTRACT REQUIRED.—
(1) IN GENERAL.—Except as provided in para-
graph (2), a vessel for which a certificate of docu-
mentation has been issued under section 101(a) may
not commence operations in the coastwise trade until
the operator of that vessel executes a contract with
erator meets the standards set forth in sections
298.12, 298.13, and 298.14 of title 46, Code of
Federal Regulations; and
(B) a shipyard shall be considered to be
capable of completing such a contract if the
shipyard meets the standards set forth in sec-
tion 298.32(a) of that title.
(b) MINIMUM SIZE REQUIREMENT.—For purposes of
this section, a contract for the construction of a vessel
shall be disregarded if that vessel—
(1) will be less than 20,000 gross registered
tons; or
(2) will have fewer than 800 passenger berths.
(c) CONTRACT TERMS.—
(1) IN
GENERAL.—The contract required by
subsection (a) shall provide for delivery of the first
such vessel not later than 60 months after the date
on which operations of the vessel for which the cer-
tificate of documentation was issued commence, and
shall contain any other provisions required by the
Secretary for purposes of this subsection. If the con-
tract provides for the construction of more than 1
vessel, it shall provide for delivery of each vessel sub-
sequent to the first not later than 24 months after
delivery of the immediately preceding vessel.
(2) EXTENSION OF TIME PERIODS FOR IMPOS-
SIBILITY OF PERFORMANCE.—If the commencement
of construction or the completion of construction is
prevented or delayed by circumstances that would be
recognized as providing a defense of impossibility-of-
performance by the shipyard under applicable con-
tract law, each time period in this Act related to de-
livery of a vessel by that shipyard shall be extended
for whatever period of time the circumstance on
which the defense is predicated continues to exist.
(d) EXPIRATION OF COASTWISE ENDORSEMENT.—
The coastwise endorsement for an eligible cruise vessel
under section 101(a) shall expire 24 months after the de-
livery date for the replacement vessel or vessels for that
eligible cruise vessel. For purposes of this subsection, the
term ‘‘replacement vessel or vessels’’ means 1 or more ves-
sels the operator of the eligible cruise vessel is obligated
to construct in the United States under the contract de-
scribed in subsection (a) with respect to the eligible cruise
vessel that have at least the same number of passenger
berths as the eligible cruise vessel, or they, replace.
(e) REFLAGGING UNDER FOREIGN REGISTRY.—Not-
withstanding section 9(c) of the Shipping Act, 1916 (46
U.S.C. App. 808), the operator of an eligible cruise vessel
issued a certificate of documentation with a temporary
coastwise endorsement under section 101(a), or a cruise
vessel constructed under a contract described in subsection
(a) of this section, may place that vessel under foreign
registry.
SEC. 104. CERTAIN OPERATIONS PROHIBITED.
Neither an eligible cruise vessel operating in domestic
itineraries under a certificate of documentation issued
under section 101(a) nor a vessel constructed under a con-
tract described in section 103(a) may—
(1) operate as a ferry;
(2) regularly carry for hire both passengers and
vehicles or other cargo; or
(3) operate between or among the islands of
Hawaii.
SEC. 105. PRIORITIES WITHIN DOMESTIC MARKETS.
(a) NOTIFICATION OF SECRETARY.—
(1) NEW VESSELS.—Any person eligible under
section 12102 of title 46, United States Code, to
document a vessel under chapter 121 of that title
that enters into a contract with a United States
shipyard for the construction of a cruise vessel
that—
(A) will be at least 20,000 gross registered
tons,
(B) will have no fewer than 800 passenger
berths, and
(C) is otherwise eligible for a certificate of
documentation and a coastwise trade endorse-
ment,
shall notify the Secretary, at such time and in such
manner and form as the Secretary may require, of
the construction of that vessel not less than 2 full
calendar years before the earliest date on which the
vessel is intended to commence operations.
(2) RECONSTRUCTION.—The notification re-
quirement of paragraph (1) also applies to any such
person that enters into a contract with a United
States shipyard for the reconstruction of any vessel,
including a vessel that has a certificate of docu-
mentation under chapter 121 of title 46, United
States Code, and that will, after reconstruction, will
be that size and capacity and be eligible for such an
endorsement.
(b) PRIORITY TO U.S.-BUILT VESSELS.—The Sec-
retary shall give priority to any cruise vessel described in
subsection (a) over any other cruise vessel of comparable
operations in a comparable market under a certificate of
documentation issued under section 101(a) if the Sec-
retary, after notice and an opportunity for public com-
ment, determines that the employment in the coastwise
trade of the vessel issued a certificate of documentation
under section 101(a) will adversely affect the coastwise
trade business of any person operating a vessel not docu-
mented under section 101(a) in the coastwise trade.
(c) FACTORS CONSIDERED.—In determining and as-
signing priorities, the Secretary shall consider, among
other factors determined by the Secretary to be
appropriate—
(1) the scope of a vessel’s itinerary, including—
(A) the ports between which it operates;
and
(B) the duration of the cruise;
(2) the time frame within which the vessel will
serve a particular itinerary;
(3) the size of the vessel; and
(4) the retail per diem of the vessel.
(d) IMPLEMENTATION.—
(1) INTINERARY SUBMISSION REQUIRED.—The
Secretary shall require the operator of each vessel
issued a certificate of documentation under section
101(a) to submit, in April of each year, a proposed
itinerary for that vessel for cruise itineraries for the
calendar year beginning 20 months after the date on
which the itinerary is required to be submitted.
(2) PUBLICATION AND COMMENT.—
(A) PUBLICATION.—The Secretary shall
cause any itinerary submitted under paragraph
(1), and any late submission or revision sub-
mitted under paragraph (3), to be published in
the Federal Register.
(B) COMMENT
PERIOD.—The Secretary
shall receive and consider comments from the
public on any itinerary published under sub-
paragraph (A) for a period of 30 days after the
date on which the itinerary is published.
(3) REVISIONS AND LATER SUBMISSIONS.—The
Secretary shall permit late submissions and revisions
of submissions after the final list of approved
itineraries is published under paragraph (4)(C)(iii)
and before the start date of a requested itinerary.
(4) SCHEDULING.—
(A) ACTION
BY
SECRETARY.—Within 30
days after the close of the comment period on
an itinerary published under paragraph (2)(A),
the Secretary shall—
(i) review the itineraries submitted to
the Secretary for compliance with the pri-
orities established by this section;
(ii) advise affected cruise vessel opera-
tors of any specific itinerary that is not
available and the reason it is not available;
and
(iii) publish a proposed list of ap-
proved itineraries.
(B) OPERATORS’ APPEALS.—The operator
of any eligible cruise vessel may appeal the Sec-
retary’s decision under subparagraph (A)(ii)
within 30 days after the Secretary advises the
operator of the decision.
(C) RESOLUTION OF CONFLICTS.—As soon
as practicable after the end of the 30-day pe-
riod described in subparagraph (B), the Sec-
retary shall—
(i) resolve any appeals and consider
new itinerary proposals;
(ii) advise cruise vessel operators who
responded under subparagraph (B) of the
Secretary’s decision with respect to the ap-
peal or the new itinerary proposal; and
(iii) publish a final list of approved
itineraries.
SEC. 106. REPORT.
The Secretary shall issue an annual report on the
number of vessels operating under certificate of
documentations granted under section 101(a), and on the
progress of construction on vessels to replace those vessels
under section 103.
SEC. 107. ENFORCEMENT.
(a) BREACH OF CONSTRUCTION CONTRACT BY OP-
ERATOR.—The Secretary shall revoke a temporary coast-
wise endorsement issued under section 101(a) for a vessel
if the operator of that vessel commits a serious breach of
the construction contract required by section 103(a). The
revocation shall take effect at the conclusion of the last
voyage on the last cruise itinerary approved by the Sec-
retary before the Secretary made the determination to re-
voke the endorsement.
(b) BREACH OF CONSTRUCTION CONTRACT BY SHIP-
YARD.—
(1) IN GENERAL.—If a shipyard commits a se-
rious breach of a construction contract required by
section 103(a) with an operator of a vessel for which
a certificate of documentation is granted under sec-
tion 101(a), then—
(A) the operator shall notify the Secretary
immediately of the breach; and
(B) the operator may continue to operate
that vessel as if the contract were in effect for
a period of 24 months after notification of the
Secretary on the condition that the operator
will make good faith efforts during that 24-
month period to execute a contract with a
United States shipyard for the construction of
the vessels that were to have been constructed
under that contract.
(2) GOOD FAITH EFFORT REQUIRED.—If the
Secretary determines at any time during that 24-
month period that the operator has ceased to make
good faith efforts to execute such a contract, then
the Secretary shall immediately terminate the opera-
tor’s authority to continue operations under this
subsection.
(c) SERIOUS BREACH OF CONTRACT DEFINED.—For
purposes of subsections (a) and (b), the term ‘‘serious
breach of contract’’ means a breach of contract for which
an appropriate remedy under section 2–703 or 2–711 of
the Uniform Commercial Code, as promulgated by the Na-
tional Conference of Commissioners on Uniform State
Law, is cancellation by the seller or buyer, respectively.
TITLE II—OTHER PROVISIONS
SEC. 201. APPLICATION WITH JONES ACT AND OTHER ACTS.
(a) IN GENERAL.—Nothing in this Act affects or oth-
erwise modifies the authority contained in—
(1) Public Law 87–77 (46 U.S.C. App. 289b)
(authorizing the transportation of passengers and
merchandise in Canadian vessels between ports in
Alaska and the United States);
(2) Public Law 98–563 (46 U.S.C. App. 289c)
(authorizing the transportation of passengers be-
tween Puerto Rico and other United States ports);
(3) section 27A of the Act of the Merchant Ma-
rine Act, 1920 (46 U.S.C. App. 883–1); or
(4) section 8109 of the Department of Defense
Appropriations Act, 1998.
(b) JONES ACT.—Except as provided in section
101(a), nothing in this Act affects or modifies the Mer-
chant Marine Act, 1920 (46 U.S.C. App. 861 et seq.).
SEC. 202. GLACIER BAY AND OTHER NATIONAL PARK SERV-
ICE AREA PERMITS.
(a) IN GENERAL.—The Secretary of the Interior,
after consultation with the Secretary of Transportation,
shall issue new or otherwise available permits to United
States-flag vessels carrying passengers for hire to enter
Glacier Bay or any other area within the jurisdiction of
the National Park Service. Any such permit shall not af-
fect the rights of any person that, on the date of enact-
ment of this Act, holds a valid permit to enter Glacier
Bay or such other area.
(b) NEW PERMITS NOT AUTHORIZED.—Subsection
(a) does not authorize the Secretary of the Interior to
issue new permits, but, if new permits are authorized
under any other provision of law, they shall be awarded
in accordance with subsection (a).
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