IIA
103D CONGRESS
1ST SESSION
H. R. 1964
IN THE SENATE OF THE UNITED STATES
JULY 30 (legislative day, JUNE 30), 1993
Received; read twice and referred to the Committee on Commerce, Science,
and Transportation
AN ACT
To authorize appropriations for the Maritime Administration
for fiscal year 1994, 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 Authorization Act for Fiscal Year 1994’’.
SEC. 2. AUTHORIZATIONS FOR MARITIME ADMINISTRA-
TION.
(a) AUTHORIZATIONS.—In fiscal year 1994, the fol-
lowing amounts are authorized to be appropriated for the
Maritime Administration (Department of Transportation):
(1) Any amounts necessary to liquidate obliga-
tions under operating-differential subsidy contracts
for the fiscal year 1994 portion of the total contract
authority.
(2) $41,013,000 for expenses related to man-
power, education, and training, including—
(A) $28,877,000 for maritime training at
the United States Merchant Marine Academy at
Kings Point, New York;
(B) $10,344,000 for assistance to the
State maritime academies (including for reim-
bursement of fuel costs associated with the op-
eration 
of 
training 
vessels), 
of 
which
$1,200,000 may be used for training simulators
for the State maritime academies; and
(C) $1,792,000 for manpower and addi-
tional training.
(3) $30,713,000 for operating programs, in-
cluding—
(A) $19,989,000 for general administra-
tion;
(B) $8,983,000 for development and use of
water transportation systems; and
(C) $1,741,000 for research, technology,
and analysis.
(4) $254,355,000 for expenses related to na-
tional security support capabilities, including—
(A) $6,937,000 for the National Defense
Reserve Fleet;
(B) $1,418,000 for emergency planning
and operations; and
(C) $246,000,000 for the Ready Reserve
Force, including—
(i) $242,000,000 for maintenance and
operations programs in support of the
Ready Reserve Force; and
(ii) $4,000,000 for Ready Reserve
Force facilities.
(5) $4,000,000 to pay administrative costs re-
lated 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 mort-
gage insurance.
(6) $50,000,000 for costs (as that term is de-
fined in section 502 of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a)) of new loan guarantee
commitments under title XI of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1271 et seq.).
(7) $242,000 for assistance to the Massachu-
setts Center for Marine Environmental Protection
located at the Massachusetts Maritime Academy.
(b) USE OF PROCEEDS OF SALES.—Notwithstanding
any other provision of law, the Secretary of Transpor-
tation may use proceeds derived from the sale or disposal
of National Defense Reserve Fleet vessels that are cur-
rently collected and retained by the Maritime Administra-
tion for facility and ship maintenance, modernization and
repair, acquisition of equipment, training simulators, and
fuel costs necessary to maintain training at the United
States Merchant Marine Academy and the State maritime
academies.
SEC. 3. NATIONAL SHIPBUILDING ENHANCEMENT INSTI-
TUTES.
(a) DESIGNATION
BY SECRETARY
OF TRANSPOR-
TATION.—The Secretary of Transportation may designate
National Shipbuilding Enhancement Institutes.
(b) ACTIVITIES.—Activities undertaken by such an
Institute may include—
(1) vessel construction and repair technology
development with an emphasis on improving the pro-
ductivity of United States shipyards through innova-
tive design, engineering, or operations;
(2) enhancing the international competitiveness
of domestic shipyards in ship construction and re-
pair;
(3) documenting and forecasting international
and domestic trends in ship construction and repair;
(4) fostering innovations in the domestic ship-
building marketing system; and
(5) providing technical support on shipbuilding
practices.
(c) SUBMISSION OF APPLICATIONS.—An institution
seeking designation as a National Shipbuilding Enhance-
ment Institute shall submit an application under regula-
tions prescribed by the Secretary.
(d) DESIGNATION CRITERIA.—The Secretary shall
designate an Institute under this section on the basis of
the following criteria:
(1) The research and extension resources avail-
able to the designee for carrying out the activities
specified in subsection (b).
(2) The existence of an established program of
the designee encompassing research, education, and
training directed to enhancing shipbuilding indus-
tries.
(3) The ability of the designee to assemble and
evaluate pertinent information from national and
international sources and to disseminate results of
shipbuilding industry research and educational pro-
grams.
(4) The qualification of the designee as a non-
profit institution of maritime or higher education.
(e) GRANTS.—The Secretary may make an award, on
a matching basis, to any institute designated under sub-
section (a), from amounts appropriated.
SEC. 4. 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.
1295c(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 li-
cense or merchant mariner’s document conducted
before the end of the period described in subpara-
graph (D)(ii); or
‘‘(iv) an application for such a license, mer-
chant mariner’s document, evaluation, or examina-
tion.
‘‘(B) A State maritime academy shall reimburse
qualified 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 annually pay 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 individ-
ual’ 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 three months after the date
the individual graduates from a State maritime
academy; and
‘‘(iii) is liable for a fee or charge described in
subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) is effective October 1, 1993.
(c) AMENDMENT OF EXISTING AGREEMENTS.—As
soon as practicable after the date of the enactment of this
Act, the Secretary of Transportation shall amend agree-
ments under section 1304(d) of the Merchant Marine Act,
1936 (46 App. U.S.C. 1295c(d)) pursuant to the amend-
ment made by subsection (a).
(d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—
In addition to amounts authorized to be appropriated for
assistance to State maritime academies, there is author-
ized to be appropriated $300,000 for fiscal year 1994 to
reimburse qualified individuals pursuant to the amend-
ment made by subsection (a).
SEC. 5. NATIONAL MARITIME ENHANCEMENT INSTITUTES.
Section 8(e) of the Act of October 13, 1989 (46 App.
U.S.C. 1121–2(e)), is amended to read as follows:
‘‘(e) The Secretary may make awards on an equal
or partial matching basis to an Institute designated under
subsection (a) from amounts appropriated.’’.
SEC. 6. TERMINATION OF CONDITION FOR STATE MARI-
TIME ACADEMY ASSISTANCE.
(a) IN GENERAL.—Section 1304(f)(1) of the Mer-
chant 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
subsection (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. 7. MAINTENANCE CONTRACTS FOR NATIONAL DE-
FENSE RESERVE FLEET VESSELS.
The Secretary of Transportation may enter into a
contract for the maintenance of the National Defense Re-
serve 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 reduc-
ing employment at the Fleet site.
SEC. 8. MAINTENANCE OF READY RESERVE FORCE VES-
SELS IN REDUCED OPERATING STATUS.
The Secretary shall, during fiscal year 1994, main-
tain 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
Secretary determines to be practicable based on the
appropriations available for that fiscal year for
maintenance of vessels in that Force.
SEC. 9. 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 re-
pair 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 ap-
propriations 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 sec-
tion, the Secretary of Transportation shall use contracting
arrangements similar to those used by the Department of
Defense 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
procurement from the shipyard of all repair and
maintenance (including activation, deactivation, and
drydocking) for one 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 ON WORK UNDER CONTRACTS.—A
contract under this section may not provide for the pro-
curement of operation or manning for a vessel that may
be procured 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. 1744(d)(2)) applies.
(e) GEOGRAPHIC
DISTRIBUTION.—The Secretary
shall seek to award contracts under this section to ship-
yards that are distributed 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 eco-
nomic and efficient repair and maintenance of the
vessel covered by the contract, by not later than 20
months after the date of the enactment of this Act;
and
(2) a final report on that effectiveness, by not
later than 6 months after the termination of all con-
tracts awarded pursuant to this section.
SEC. 10. GEOGRAPHIC DISTRIBUTION OF READY RESERVE
FORCE VESSELS.
(a) REPORT.—Not later than 60 days after the date
of the enactment of this Act, the Secretary of Transpor-
tation shall submit a report to the Congress which de-
scribes where vessels in the Ready Reserve Force will be
located in fiscal year 1994.
(b) CONSIDERATION OF PORTS IN LOCATING VES-
SELS.—In selecting locations where Ready Reserve Force
vessels will be outported, the Secretary of Transportation
shall consider ports that have historically been involved in
outporting of those vessels.
SEC. 11. MARITIME POLICY REPORT.
(a) REPORT.—The Secretary of Transportation shall
transmit to the Congress a report setting forth the De-
partment of Transportation’s policies for the 5-year period
beginning October 1, 1993, 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 mari-
time 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 require-
ments 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 1995.
SEC. 12. PILOT PROGRAM ON SEALIFT TRAINING.
The Secretary of Transportation shall establish a 3-
year pilot program for Sealift Training at the Massachu-
setts Maritime Academy.
SEC. 13. SPECIAL RULE FOR VESSEL CONSTRUCTION GUAR-
ANTEES.
(a) IN GENERAL.—Notwithstanding any provision of
title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.), in guaranteeing an obligation under
that title with amounts appropriated for fiscal year 1994,
the Secretary of Transportation shall guarantee an
amount of principal or interest (or both) that is equal to
871⁄2 percent of the actual cost or depreciated actual cost
(as those terms are defined in that title) of the vessel or
facility that is used as security for the guarantee.
(b) EXCEPTION.—Subsection (a) shall not apply to
the guarantee of an obligation if the Secretary determines
that—
(1) special economic circumstances exist; and
(2) there is good cause for guaranteeing a less-
er percentage of principal or interest (or both) au-
thorized by that title.
SEC. 14. WAIVERS FOR CERTAIN VESSELS.
(a) IN GENERAL.—Notwithstanding sections 12106,
12107, and 12108 of title 46, United States Code, and
section 27 of the Merchant Marine Act, 1920 (46 App.