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ject to the availability of appropriations for that pur-
pose. 
(2) FISCAL YEAR 2007.—Of the amount author-
ized to be appropriated pursuant to section 201(2) 
for research, development, test, and evaluation for 
the Navy for fiscal year 2007— 
(A) $50,000,000 shall be available to the 
Secretary of the Navy only to make grants 
under this section; and 
(B) $50,000,000 shall be available only for 
the cost (as defined in subsection (e)(6)(B)) of 
loan guarantees under this section. 
(h) IDENTIFICATION
IN
BUDGET
OF
ANNUAL 
AMOUNT FOR SUPPORT OF NSRP ACTIVITIES.—Amounts 
in the budget of the President for any fiscal year for re-
search, development, test, and evaluation for the Navy 
that are intended to be made available for the National 
Shipbuilding Research Program shall be separately identi-
fied and set forth in budget justification materials sub-
mitted to Congress for that fiscal year in support of that 
budget. 
(i) DEFINITION OF SHIPYARD.—In this section, the 
term ‘‘shipyard’’ means a private shipyard located in the 
United States the business of which includes the construc-
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HR 5122 PCS 
tion, repair, and maintenance of United States naval ves-
sels. 
SEC. 1015. TRANSFER OF OPERATIONAL CONTROL OF CER-
TAIN PATROL COASTAL SHIPS TO COAST 
GUARD. 
Not later than September 30, 2008, the Secretary of 
the Navy shall enter into an agreement with the Com-
mandant of the Coast Guard for the transfer by the Sec-
retary of the Navy to the Coast Guard of operational con-
trol of not less than five 179-foot Cyclone-class patrol 
coastal ships for a period extending at least through Sep-
tember 30, 2012. 
SEC. 1016. LIMITATION ON LEASING OF FOREIGN-BUILT 
VESSELS. 
(a) IN GENERAL.—(1) Chapter 141 of title 10, 
United States Code, is amended by inserting after section 
2401a the following new section: 
‘‘§ 2401b. Limitation on lease of foreign-built vessels 
‘‘(a) LIMITATION.—The Secretary of a military de-
partment may not make a contract for a lease or charter 
of a vessel for a term of more than 24 months (including 
all options to renew or extend the contract) if the hull, 
or a component of the hull and superstructure of the ves-
sel, is constructed in a foreign shipyard. 
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HR 5122 PCS 
‘‘(b) PRESIDENTIAL WAIVER FOR NATIONAL SECU-
RITY INTEREST.—(1) The President may authorize excep-
tions to the limitation in subsection (a) when the President 
determines that it is in the national security interest of 
the United States to do so. 
‘‘(2) The President shall transmit notice to Congress 
of any such determination, and no contract may be made 
pursuant to the exception authorized until the end of the 
30-day period beginning on the date on which the notice 
of the determination is received by Congress.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 2401a the following new item: 
‘‘2401b. Limitation on lease of foreign-built vessels.’’. 
(b) EFFECTIVE DATE.—Section 2401b of title 10, 
United States Code, as added by subsection (a), shall 
apply with respect to contracts entered into after the date 
of the enactment of this Act. 
SEC. 1017. OVERHAUL, REPAIR, AND MAINTENANCE OF VES-
SELS CARRYING DEPARTMENT OF DEFENSE 
CARGO. 
The Secretary of Defense may not award any con-
tract for the carriage by vessel of cargo for the Depart-
ment of Defense, unless the contract includes a require-
ment under which the contractor shall— 
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HR 5122 PCS 
(1) ensure that all overhaul, repair, and mainte-
nance performed on the vessel during the period of 
the contract is performed in a shipyard located in 
the United States; or 
(2) report to the Secretary every fiscal year 
quarter all overhaul, repair, and maintenance per-
formed on the vessel in a shipyard located outside 
the United States during the period covered by the 
report. 
SEC. 1018. RIDING GANG MEMBER DOCUMENTATION RE-
QUIREMENT. 
(a) REQUIREMENT.—The Secretary of Defense may 
not award any charter of a vessel for the Department of 
Defense, or contract for the carriage of cargo by vessel 
for the Department of Defense, unless the charter or con-
tract, respectively, requires that each riding gang member 
that performs any work on the vessel during the effective 
period of the charter or contract holds a merchant mari-
ner’s document issued under chapter 73 of title 46, United 
States Code. 
(b) RIDING GANG MEMBER DEFINED.—In this sec-
tion the term ‘‘riding gang member’’ means an individual 
who— 
(1) does not perform— 
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HR 5122 PCS 
(A) watchstanding, automated engine room 
duty watch, or personnel safety functions; or 
(B) cargo handling functions, including 
any activity relating to the loading or unloading 
of cargo, the operation of cargo-related equip-
ment (whether or not integral to the vessel), 
and the handling of mooring lines on the dock 
when the vessel is made fast or let go; 
(2) does not serve as part of the crew com-
plement required under section 8101 of title 46, 
United States Code; 
(3) is not a member of the steward’s depart-
ment; and 
(4) is not a citizen or temporary or permanent 
resident of a country designated by the United 
States as a sponsor of terrorism or any other coun-
try that the Secretary of Defense, in consultation 
with the Secretary of State and the heads of other 
appropriate United States agencies, determines to be 
a security threat to the United States. 
(c) LIMITATIONS ON APPLICATION.— 
(1) VESSEL
OPERATING
UNDER
EXISTING 
CHARTER
OR
CONTRACT.—This section does not 
apply with respect to a vessel operating under a 
charter or contract in effect on the date of the en-
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