I
107TH CONGRESS
1ST SESSION
H. R. 2046
To reform the coastwise, intercoastal, and noncontiguous trade shipping laws,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 26 (legislative day, MAY 25), 2001
Mr. SMITH of Michigan introduced the following bill; which was referred to
the Committee on Transportation and Infrastructure, and in addition to
the Committee on Armed Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To reform the coastwise, intercoastal, and noncontiguous
trade shipping laws, 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; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Coastal Shipping Competition Act’’.
(b) FINDINGS.—The Congress finds the following:
(1) Efficient, competitive, broadly available wa-
terborne cargo transportation service is an essential
component of a national intermodal transportation
system, and such services should be promoted by the
United States.
(2) The cost of building ships in the United
States is so uncompetitive with international ship-
builders that it is effectively prohibiting the growth
and modernization of the Jones Act fleet.
(3) The decline of ships of over 1,000 tons in
the Jones Act fleet as well as the resulting decrease
in the number of sailors represents a diminution in
emergency sealift capacity in times of national emer-
gency.
(4) In the last several decades, the size of the
active United States domestic deepwater fleet has
shrunk substantially, to a total today of only 130
self-propelled oceangoing vessels of over 1,000 tons
and 59 vessels in the Great Lakes.
(5) The result has been shipping shortages,
higher prices, and significant commercial transpor-
tation inefficiencies, all of which can be alleviated,
without any cost to the taxpayer, by increasing com-
petition in domestic deepwater shipping.
(6) Such inefficiencies reduce our ability to
move good, such as agriculture and petroleum prod-
ucts, and undermine the competitive position of a
broad range of American businesses, particularly in
potential domestic markets, versus their foreign
competition. These shipping shortages and higher-
than-market prices have led to the loss of American
jobs to overseas competitors able to purchase trans-
portation services on the international market.
(7) Lack of access to adequate deepwater com-
mercial waterborne transportation alternatives sup-
presses economic activity in an amount of between
$4,200,000,000 and $10,000,000,000 annually and
causes the loss of associated tax revenue, according
to a study by the United States International Trade
Commission.
(8) American mariners and water carriers are
dedicated to providing the high-quality service that
their customers deserve, but flexibility in capital in-
vestment is needed to acquire the modern equipment
essential to satisfy the current and potential demand
for superior deepwater domestic cargo transportation
service.
(9) Eliminating international capital investment
restrictions on the deepwater domestic transpor-
tation industry will help American ocean transpor-
tation companies to provide the world class service
American manufacturers, farmers, consumers, and
taxpayers deserve.
(10) Similarly, permitting domestic transpor-
tation service providers to purchase their vessels on
the international market without penalty will lower
their operating expenses, creating savings which they
can pass on to their customers in the form of lower
prices and improved efficiency.
(11) Allowing American domestic deepwater
commercial carriers to comply with appropriate
international operating and construction standards
to which the United States is a party through trea-
ties and conventions will further lower operating ex-
penses and reduce the cost of the service provided by
those companies.
(12) Rationalizing the tort and liability provi-
sions governing the maritime industry will help re-
duce the insurance costs of employers and diminish
the need for costly and contentious litigation to set-
tle worker injury claims.
(13) Liberalizing the regulations currently gov-
erning the domestic deepwater transportation of
cargo will encourage a renaissance in the Nation’s
waterborne coastal trades, reducing highway conges-
tion, road damage, and air and noise pollution, and
will substantially contribute to the ability of Amer-
ican commercial enterprise to compete against for-
eign companies.
SEC. 2. MISCELLANEOUS AMENDMENTS TO DEFINITIONS IN
TITLE 46, UNITED STATES CODE.
Section 2101 of title 46, United States Code, is
amended—
(1) by striking paragraph (3a) and inserting
the following:
‘‘(3a) ‘citizen of the United States’ means—
‘‘(A)(i) a national of the United States, as
defined in section 101(a)(22) of the Immigra-
tion 
and 
Nationality 
Act 
(8 
U.S.C.
1101(a)(22));
‘‘(ii) a corporation established under the
laws of the United States or under the laws of
a State, territory, district, or possession of the
United States, that has—
‘‘(I) a president or other chief execu-
tive officer and chairman of the board of
directors of that corporation who are citi-
zens of the United States; and
‘‘(II) a board of directors on which no
more of its directors than a minority of the
number necessary to constitute a quorum
are noncitizens;
‘‘(iii) a partnership existing under the laws
of a State, territory, district, or possession of
the United States that has at least one general
partner who is a citizen of the United States;
‘‘(iv) a trust that has at least one trustee
who is a citizen of the United States; or
‘‘(v) an association, joint venture, limited
liability company, or other entity that has at
least one member who is a citizen of the United
States; but
‘‘(B) such term does not include—
‘‘(i) with respect to a person or entity
under clause (ii), (iii), (iv), or (v) of sub-
paragraph (A), any parent corporation,
partnership, or other person (other than
an individual) or entity that is a second- or
higher-tier owner (as that term is defined
by the Secretary) of the person or entity
described in clauses (ii), (iii), or (v), as ap-
plicable; or
‘‘(ii) with respect to a trust under
clause (iv), any beneficiary of the trust.’’;
(2) by inserting after paragraph (4) the fol-
lowing new paragraph:
‘‘(4a) ‘coastwise trade’—
‘‘(A) subject to subparagraph (B), means
the transportation by water of merchandise or
passengers, or the towing of a vessel between
points, or dredging operations embraced within
the coastwise laws of the United States—
‘‘(i) in the United States (including
any district, territory, or possession of the
United States);
‘‘(ii) on the Great Lakes (including
any tributary or connecting waters of the
Great Lakes and the Saint Lawrence Sea-
way);
‘‘(iii) on the subjacent waters of the
Outer Continental Shelf subject to the
Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.); and
‘‘(iv) in the noncontiguous trade; and
‘‘(B) does not include the activities speci-
fied in subparagraph (A) on the navigable wa-
ters included in the inland waterways trade ex-
cept for activities specified in subparagraph (A)
that occur on mixed waters.’’;
(3) by inserting after paragraph (11c) the fol-
lowing new paragraph:
‘‘(B) includes any activity specified in sub-
paragraph (A) that is conducted in mixed wa-
ters.’’;
(6) by redesignating paragraph (15a) as para-
graph (15b);
(7) by inserting after paragraph (15) the fol-
lowing:
‘‘(15a) ‘mixed waters’ means—
‘‘(A) the waters of the harbors and ports
both on the coasts and on the Great Lakes of
the United States; and
‘‘(B) the rivers, canals, and other water-
ways tributary to the Great Lakes or to the
coastal harbors and coasts of the United States
inside the Boundary Line,
that the Secretary of Transportation determines to
be navigable by oceangoing vessels.’’;
(8) by redesignating paragraph (17b) as para-
graph (17c);
(9) by inserting after paragraph (17a) the fol-
lowing:
‘‘(17b) ‘noncontiguous trade’ means transpor-
tation by water of merchandise or passengers, or
towing by towing vessels—
‘‘(A) between—
‘‘(i) a point in the 48 continental
States and the District of Columbia; and
‘‘(ii) a point in Hawaii, Alaska, Puer-
to Rico, Guam, the Virgin Islands, Amer-
ican Samoa, the Northern Mariana Is-
lands, or any other noncontiguous territory
or possession of the United States, as em-
braced within the coastwise laws of the
United States; or
‘‘(B) between two points described in sub-
paragraph (A)(ii).’’;
(10) in paragraph (21)(A)—
(A) in clause (ii), by striking ‘‘or’’ after
the semicolon;
(B) in clause (iii), by inserting ‘‘or’’ after
the semicolon; and
(C) by adding at the end the following new
clause:
‘‘(iv) an individual who—
‘‘(I) is a member of the family or
a guest of the owner or charterer; and
‘‘(II) is not a passenger for
hire;’’;
(11) by striking paragraph (40) and inserting
the following:
‘‘(40) ‘towing vessel’ means any commercial
vessel engaged in, or that a person intends to use to
engage in, the service of—
‘‘(A) towing, pulling, pushing, or hauling
alongside (or any combination thereof); or
‘‘(B) assisting in towing, pulling, pushing,
or hauling alongside.’’; and
(12) by inserting after paragraph (40) the fol-
lowing new paragraphs:
‘‘(40a) ‘towing of a vessel by a towing vessel be-
tween points’ means attaching a towing vessel to a
towed vessel (including any barge) at one point and
releasing the towed vessel from the towing vessel at
another point, regardless of the origin or ultimate
destination of either the towed vessel or the towing
vessel.
‘‘(40b) ‘transportation of merchandise or pas-
sengers by water between points’ means, without re-
gard to the origin or ultimate destination of the
merchandise or passengers involved—
‘‘(A) in the case of merchandise, loading
merchandise at one point and permanently un-
loading the merchandise at another point; or
‘‘(B) in the case of passengers, embarking
passengers at one point and permanently dis-
embarking the passengers at another point.’’.
SEC. 3. DOCUMENTATION.
(a) DEFINITIONS.—Section 12101(b)(2) of title 46,
United States Code, is amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) ‘license’, ‘enrollment and license’, ‘license
for the coastwise (or coasting) trade’, ‘enrollment
and license for the coastwise (or coasting) trade’,
and ‘enrollment and license to engage in the foreign
and coastwise (or coasting) trade on the northern,
northeastern, and northwestern frontiers, otherwise
than by sea’ mean a coastwise endorsement as pro-
vided in section 12106.’’; and
(2) by redesignating paragraph (4) as para-
graph (3).
(b) VESSELS ELIGIBLE FOR DOCUMENTATION.—Sec-
tion 12102(a) of title 46, United States Code, is
amended—
(1) by striking all that precedes paragraph (5)
and inserting the following:
‘‘(a) A vessel of at least 5 net tons that is not reg-
istered under the laws of a foreign country or that is not
titled in a State is eligible for documentation if—
‘‘(1)(A) the vessel is owned by an individual
who is a citizen of the United States, or by a cor-
poration, association, trust, joint venture, partner-
ship, limited liability company, or other entity that
is a citizen of the United States; and
‘‘(B) the owner of the vessel is capable of hold-
ing title to a vessel under the laws of the United
States or under the laws of a State;’’; and
(2) by redesignating paragraphs (5) and (6) as
paragraphs (2) and (3), respectively.
(c) COASTWISE ENDORSEMENTS.—
(1) IN GENERAL.—Section 12106 of title 46,
United States Code, is amended—
(A) by amending the section heading to
read as follows:
‘‘§ 12106. Coastwise endorsements and certificates’’;
(B) by redesignating subsections (c), (d),
and (e) as subsections (d), (e), and (f); and
(C) by striking subsections (a) and (b) and
inserting the following:
‘‘(a) COASTWISE ENDORSEMENTS.—A certificate of
documentation may be endorsed with a coastwise endorse-
ment for a vessel that is eligible for documentation.
‘‘(b) COASTWISE CERTIFICATES.—
‘‘(1) IN GENERAL.—Any of the following vessels
may be issued a certificate to engage in the coast-
wise trade if the Secretary of Transportation makes
a finding, pursuant to information obtained and fur-
nished by the Secretary of State, that the govern-
ments of the nations of registry and of the citizen-
ship or nationality of each owner of record (and, if
that owner is not an individual or individuals, then
the individual or individuals at the ultimate tier of
ownership) of such vessel extend reciprocal privileges
to vessels of the United States to engage in the
transportation of merchandise or passengers (or
both) in its or their coastwise trades:
‘‘(A) A foreign qualified vessel.
‘‘(B) A vessel of foreign registry if that
vessel engages irregularly in the coastwise trade
of the United States.
‘‘(2) VESSEL ENGAGING IRREGULARLY IN THE
COASTWISE
TRADE.—For purposes of this sub-
section, a vessel engages irregularly in the coastwise
trade of the United States if that vessel—
‘‘(A) during any 60-day period does not
make, in the aggregate, more than four calls to
United States ports;
‘‘(B) during any calendar year does not
make, in the aggregate, more than six calls to
United States ports; and
‘‘(C) is owned by any person whose vessels
make not more than 18 calls to United States
ports during any calendar year.
For purposes of subparagraph (C), all persons treat-
ed 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 for purposes of the pre-
ceding sentence.
‘‘(c) EMPLOYMENT OF A VESSEL IN THE COASTWISE
TRADE.—Subject to the applicable laws of the United
States regulating the coastwise trade and trade with Can-
ada, only a vessel with a certificate of documentation en-
dorsed with a coastwise endorsement or with a certificate
issued under subsection (b) may be employed in the coast-
wise trade.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 121 of title 46,
United States Code, is amended by striking the item
relating to section 12106 and inserting the fol-
lowing:
‘‘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 for-
feiture of the merchandise (or a monetary amount not to
exceed 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
passenger—
‘‘(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;
‘‘(C) a vessel that is authorized by a treaty or
in accordance with the provisions of section 725 of
this title;
‘‘(D) a vessel that is aiding or saving vessels or
lives in distress; or
‘‘(E) a vessel for which the Commissioner of
Customs is satisfied that no suitable vessel wholly
owned by a person or persons who are citizens of the
United States and documented under the laws of the
United States is available in any particular locality
and authorizes the use of a foreign vessel or vessels
in salvaging operation or operations in that locality.
‘‘(2) A vessel operated in violation of this subsection
is subject to seizure and forfeiture by and to the United
States Government in a libel or other enforcement action
in the district court of the United States for the district
in which the offending vessel is found.’’.
SEC. 7. DREDGING OPERATIONS.
The first section of the Act of May 28, 1906 (34 Stat.
204, chapter 2566; 46 U.S.C. App. 292), is amended to
read as follows:
‘‘SECTION 1. VESSELS THAT MAY ENGAGE IN DREDGING.
‘‘(a) IN GENERAL.—A vessel may engage in dredging
operations—
‘‘(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 indi-
vidual, 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
United 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-
‘‘(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.
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