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103D CONGRESS
2D SESSION
H. R. 3821
To promote construction and operation of passenger vessels in the United
States, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 9, 1994
Mrs. UNSOELD (for herself, Mr. STUDDS, Mr. LIPINSKI, Mr. DICKS, Ms.
CANTWELL, Ms. DUNN, Mr. KREIDLER, Mr. SWIFT, Mr. MANTON, Mr.
BORSKI, Mr. HOYER, Mr. CUNNINGHAM, and Mr. JOHNSON of South Da-
kota) introduced the following bill; which was referred jointly to the Com-
mittees on Merchant Marine and Fisheries and Natural Resources
A BILL
To promote construction and operation of passenger vessels
in the United States, 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 ‘‘United States Pas-
senger Vessel Development Act’’.
SEC. 2. PURPOSE.
The purpose of this Act is to promote construction
and operation of United States flag passenger vessels in
the United States.
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SEC. 3. INTERIM COASTWISE PASSENGER TRADE ENDORSE-
MENT.
(a) ENDORSEMENT AUTHORIZED.—Chapter 121 of
title 46, United States Code, is amended by inserting after
section 12112 the following new section:
‘‘§ 12113. Interim coastwise passenger trade endorse-
ment
‘‘(a) Before December 31, 2000, a certificate of docu-
mentation for a passenger vessel may be endorsed with
an interim coastwise passenger trade endorsement, if the
vessel is—
‘‘(1) eligible for documentation under section
12102;
‘‘(2) owned by, or demise chartered for at least
18 months to, a citizen of the United States for pur-
poses of issuing a certificate of documentation with
an interim coastwise passenger trade endorsement
under section 2(e) of the Shipping Act, 1916 (46
App. U.S.C. 802(e));
‘‘(3) at least 250 gross tons (as measured
under chapter 143 of this title) and has at least 175
berths; and
‘‘(4) not a ferry.
‘‘(b) As a condition of issuing an interim coastwise
passenger trade endorsement for a vessel, the Secretary
shall require the owner or charterer of the vessel to enter
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into one or more contracts for the construction in the
United States of one or more vessels having a total berth-
ing capacity that is at least 80 percent of the capacity
of the vessel for which the endorsement is issued.
‘‘(c) A vessel with a certificate of documentation with
an interim coastwise passenger trade endorsement may be
employed in the coastwise trade in the carriage of pas-
sengers.
‘‘(d) On termination of a demise charter required
under subsection (a)(2)(B) for a vessel, an interim coast-
wise passenger trade endorsement for the vessel may be
continued for a period not to exceed 6 months on any
terms and conditions that the Secretary of Transportation
may prescribe.
‘‘(e)(1) An interim coastwise passenger trade en-
dorsement issued for a vessel under subsection (a) ex-
pires—
‘‘(A) on the date that is 12 months after the
date of issuance of the endorsement, if the owner or
demise charter of the vessel fails to submit to the
Secretary before the end of that 12-month period a
letter that—
‘‘(i) states the interest of the owner or de-
mise charter, respectively, and a representative
of a shipyard in the United States to enter into
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a contract for the construction in the shipyard
of at least one passenger vessel that has a total
berthing capacity that is at least equivalent to
80 percent of the berthing capacity of the vessel
for which the endorsement is issued; and
‘‘(ii) is signed by the owner or demise
charterer, respectively, and the representative;
‘‘(B) on the date that is 24 months after the
date of issuance of the endorsement, if the owner or
demise charterer of the vessel does not enter into a
contract before the end of that 24-month period for
the construction in the United States of one or more
passenger vessels described in subparagraph (A)(i);
‘‘(C) on the date that is 3 years after the date
of issuance of the endorsement, if construction of
such a vessel under the contract is not begun before
the end of that 3-year period; and
‘‘(D) on the date that is 180 days after the
date of delivery of a vessel for which construction is
completed pursuant to the contract.
‘‘(2) The Secretary may extend the period applicable
under paragraph (1)(B) or (C), or both, for not more than
6 months.
‘‘(f) An interim coastwise passenger trade endorse-
ment for a vessel shall prohibit the operation of the vessel
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in any trade that is served by another passenger vessel
of at least 250 gross tons and having at least 175 berths
that is documented under section 12106 of this title, un-
less the owner or charterer of the vessel so operated is
also the owner of the other vessel having the endorsement.
‘‘(g) Except as provided in this section, section
2113(b) of this title, or section 2(e) or 9(e) of the Ship-
ping Act, 1916, a vessel with an interim coastwise pas-
senger trade endorsement shall comply with all require-
ments applicable to a comparable passenger vessel that is
otherwise documented under the laws of the United
States.’’.
(b) CLERICAL 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 12112 the following:
‘‘12113. Interim coastwise trade endorsement.’’.
(c) NOTICE TO SECRETARY OF REFLAGGING.—Sec-
tion 9 of the Shipping Act, 1916 (46 App. U.S.C. 808)
is amended—
(1) in subsection (c) by inserting ‘‘subsection
(e),’’ after ‘‘Except as provided in’’; and
(2) by adding at the end the following:
‘‘(e) Notwithstanding subsection (c), a person may
place under a foreign registry or operate under the author-
ity of a foreign country, without approval of the Secretary
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of Transportation, any vessel with an interim coastwise
passenger trade endorsement under section 12113 of title
46, United States Code, if the person notifies the Sec-
retary of that action—
‘‘(1) before the 60-day period ending on the
date that action is taken; and
‘‘(2) within 12 months after—
‘‘(A) the issuance of the interim coastwise
passenger trade endorsement, or
‘‘(B) the beginning of construction of the
replacement vessels required for that issuance
under section 12113 of title 46, United States
Code.’’.
SEC. 4. SOLAS CONSTRUCTION STANDARDS.
Section 2113 of title 46, United States Code, is
amended—
(1) by inserting ‘‘(a)’’ before ‘‘If’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) A documented vessel with an interim coastwise
passenger trade endorsement—
‘‘(1) is deemed to comply with parts B, C, and
J of this title if the vessel meets the standards for
passenger vessel construction for safety of life at sea
issued under the International Maritime Organiza-