H. R. 1442—68
‘‘(3) MARITIME-RELATED
SERVICES.—The term ‘maritime-
related services’ means intermodal operations, terminal oper-
ations, cargo solicitation, agency services, ocean transportation 
intermediary services and operations, and all other activities 
and services integral to total transportation systems of ocean 
common carriers and their foreign domiciled affiliates for them-
selves and others. 
‘‘(4) UNITED STATES CARRIER.—The term ‘United States car-
rier’ means an ocean common carrier operating vessels docu-
mented under the laws of the United States. 
‘‘(5) UNITED STATES OCEANBORNE TRADE.—The term ‘United 
States oceanborne trade’ means the carriage of cargo between 
the United States and a foreign country, whether directly or 
indirectly, by an ocean common carrier. 
‘‘§ 42302. Investigations 
‘‘(a) IN GENERAL.—The Federal Maritime Commission shall 
investigate whether any laws, rules, regulations, policies, or prac-
tices of a foreign government, or any practices of a foreign carrier 
or other person providing maritime or maritime-related services 
in a foreign country, result in the existence of conditions that—
‘‘(1) adversely affect the operations of United States carriers 
in United States oceanborne trade; and 
‘‘(2) do not exist for foreign carriers of that country in 
the United States under the laws of the United States or 
as a result of acts of United States carriers or other persons 
providing maritime or maritime-related services in the United 
States. 
‘‘(b) INITIATION OF INVESTIGATION.—An investigation under sub-
section (a) may be initiated by the Commission on its own motion 
or on the petition of any person, including another component 
of the United States Government. 
‘‘(c) TIME FOR DECISION.—The Commission shall complete an 
investigation under this section and render a decision within 120 
days after it is initiated. However, the Commission may extend 
this 120-day period for an additional 90 days if the Commission 
is unable to obtain sufficient information to determine whether 
a condition specified in subsection (a) exists. A notice providing 
an extension shall state clearly the reasons for the extension. 
‘‘§ 42303. Information requests 
‘‘(a) IN GENERAL.—To further the purposes of section 42302(a) 
of this title, the Federal Maritime Commission may order any 
person (including a common carrier, shipper, shippers’ association, 
ocean transportation intermediary, or marine terminal operator, 
or an officer, receiver, trustee, lessee, agent or employee thereof) 
to file with the Commission any periodic or special report, answers 
to questions, documentary material, or other information the 
Commission considers necessary or appropriate. The Commission 
may require the response to any such order to be made under 
oath. The response shall be provided in the form and within the 
time specified by the Commission. 
‘‘(b) SUBPOENAS.—In an investigation under section 42302 of 
this title, the Commission may subpoena witnesses and evidence. 
‘‘(c) NONDISCLOSURE.—Notwithstanding any other provision of 
law, the Commission may determine that any information submitted
H. R. 1442—69
to it in response to a request under this section, or otherwise, 
shall not be disclosed to the public. 
‘‘§ 42304. Action against foreign carriers 
‘‘(a) IN GENERAL.—Subject to section 42306 of this title, when-
ever the Federal Maritime Commission, after notice and opportunity 
for comment or hearing, determines that the conditions specified 
in section 42302(a) of this title exist, the Commission shall take 
such action to offset those conditions as it considers necessary 
and appropriate against any foreign carrier that is a contributing 
cause, or whose government is a contributing cause, to those condi-
tions. The action may include—
‘‘(1) limitations on voyages to and from United States ports 
or on the amount or type of cargo carried; 
‘‘(2) suspension, in whole or in part, of any or all tariffs 
and service contracts, including an ocean common carrier’s 
right to use any or all tariffs and service contracts of con-
ferences in United States trades of which it is a member for 
any period the Commission specifies; 
‘‘(3) suspension, in whole or in part, of an ocean common 
carrier’s right to operate under any agreement filed with the 
Commission, including any agreement authorizing preferential 
treatment at terminals, preferential terminal leases, space char-
tering, or pooling of cargo or revenue with other ocean common 
carriers; and 
‘‘(4) a fee not to exceed $1,000,000 per voyage. 
‘‘(b) CONSULTATION.—The Commission may consult with, seek 
the cooperation of, or make recommendations to other appropriate 
agencies of the United States Government prior to taking any 
action under subsection (a). 
‘‘§ 42305. Refusal of clearance and entry 
‘‘Subject to section 42306 of this title, whenever the Federal 
Maritime Commission determines that the conditions specified in 
section 42302(a) of this title exist, then at the request of the 
Commission—
‘‘(1) the Secretary of Homeland Security shall refuse the 
clearance required by section 60105 of this title to a vessel 
of a foreign carrier that is identified by the Commission under 
section 42304 of this title; and 
‘‘(2) the Secretary of the department in which the Coast 
Guard is operating shall—
‘‘(A) deny entry, for purposes of oceanborne trade, of 
a vessel of a foreign carrier that is identified by the 
Commission under section 42304 of this title, to a port 
or place in the United States or the navigable waters 
of the United States; or 
‘‘(B) detain the vessel at the port or place in the United 
States from which it is about to depart for another port 
or place in the United States. 
‘‘§ 42306. Submission of determinations to President 
‘‘Before a determination under section 42304 of this title 
becomes effective or a request is made under section 42305 of 
this title, the determination shall be submitted immediately to 
the President. The President, within 10 days after receiving it, 
may disapprove it in writing, setting forth the reasons for the
H. R. 1442—70
disapproval, if the President finds that disapproval is required 
for reasons of national defense or foreign policy. 
‘‘§ 42307. Review of regulations and orders 
‘‘A regulation or final order of the Federal Maritime Commis-
sion under this chapter is reviewable exclusively in the same forum 
and in the same manner as provided in section 2342(3)(B) of title 
28. 
‘‘PART C—MISCELLANEOUS 
‘‘CHAPTER 441—EVIDENCE OF FINANCIAL 
RESPONSIBILITY FOR PASSENGER TRANSPORTATION
‘‘Sec. 
‘‘44101.
Application. 
‘‘44102.
Financial responsibility to indemnify passengers for nonperformance of 
transportation. 
‘‘44103.
Financial responsibility to pay liability for death or injury. 
‘‘44104.
Civil penalty. 
‘‘44105.
Refusal of clearance. 
‘‘44106.
Conduct of proceedings.
‘‘§ 44101. Application 
‘‘This chapter applies to a vessel that—
‘‘(1) has berth or stateroom accommodations for at least 
50 passengers; and 
‘‘(2) boards passengers at a port in the United States. 
‘‘§ 44102. Financial responsibility to indemnify passengers 
for nonperformance of transportation 
‘‘(a) FILING REQUIREMENT.—A person in the United States may 
not arrange, offer, advertise, or provide transportation on a vessel 
to which this chapter applies unless the person has filed with 
the Federal Maritime Commission evidence of financial responsi-
bility to indemnify passengers for nonperformance of the transpor-
tation. 
‘‘(b) SATISFACTORY EVIDENCE.—To satisfy subsection (a), a per-
son must file—
‘‘(1) information the Commission considers necessary; or 
‘‘(2) a copy of a bond or other security, in such form as 
the Commission by regulation may require. 
‘‘(c) AUTHORIZED ISSUER OF BOND.—If a bond is filed, it must 
be issued by a bonding company authorized to do business in 
the United States. 
‘‘§ 44103. Financial responsibility to pay liability for death 
or injury 
‘‘(a) GENERAL REQUIREMENT.—The owner or charterer of a 
vessel to which this chapter applies shall establish, under regula-
tions prescribed by the Federal Maritime Commission, financial 
responsibility to meet liability for death or injury to passengers 
or other individuals on a voyage to or from a port in the United 
States. 
‘‘(b) AMOUNTS.—
‘‘(1) IN GENERAL.—The amount of financial responsibility 
required under subsection (a) shall be based on the number 
of passenger accommodations as follows: 
‘‘(A) $20,000 for each of the first 500 passenger accom-
modations.
H. R. 1442—71
‘‘(B) $15,000 for each additional passenger accommoda-
tion between 501 and 1,000. 
‘‘(C) $10,000 for each additional passenger accommoda-
tion between 1,001 and 1,500. 
‘‘(D) $5,000 for each additional passenger accommoda-
tion over 1,500. 
‘‘(2) MULTIPLE VESSELS.—If the owner or charterer is oper-
ating more than one vessel subject to this chapter, the amount 
of financial responsibility shall be based on the number of 
passenger accommodations on the vessel with the largest 
number of passenger accommodations. 
‘‘(c) AVAILABILITY TO PAY JUDGMENT.—The amount determined 
under subsection (b) shall be available to pay a judgment for dam-
ages (whether less than or more than $20,000) for death or injury 
to a passenger or other individual on a voyage to or from a port 
in the United States. 
‘‘(d) MEANS OF ESTABLISHING.—Financial responsibility under 
this section may be established by one or more of the following 
if acceptable to the Commission: 
‘‘(1) Insurance. 
‘‘(2) Surety bond issued by a bonding company authorized 
to do business in the United States. 
‘‘(3) Qualification as a self-insurer. 
‘‘(4) Other evidence of financial responsibility. 
‘‘§ 44104. Civil penalty 
‘‘A person that violates section 44102 or 44103 of this title 
is liable to the United States Government for a civil penalty of 
not more than $5,000, plus $200 for each passage sold, to be 
assessed by the Federal Maritime Commission. The Commission 
may remit or mitigate the penalty on terms the Commission con-
siders proper. 
‘‘§ 44105. Refusal of clearance 
‘‘The Secretary of Homeland Security shall refuse the clearance 
required by section 60105 of this title, at the port or place of 
departure from the United States, of a vessel that is subject to 
this chapter and does not have evidence issued by the Federal 
Maritime Commission of compliance with sections 44102 and 44103 
of this title. 
‘‘§ 44106. Conduct of proceedings 
‘‘Part A of this subtitle applies to proceedings conducted by 
the Federal Maritime Commission under this chapter.’’.
SEC. 8. SUBTITLE V OF TITLE 46. 
(a) SUBTITLE ANALYSIS.—The analysis of subtitle V of title 
46, United States Code, is amended to read as follows: 
‘‘PART A—GENERAL
‘‘Chapter 
Sec. 
‘‘501. Policy, Studies, and Reports ................................................................ 50101
‘‘503. Administrative ......................................................................................... 50301
‘‘505. Other General Provisions ..................................................................... 50501
‘‘PART B—MERCHANT MARINE SERVICE
‘‘511. General ....................................................................................................... 51101
H. R. 1442—72
‘‘513. United States Merchant Marine Academy ........................................ 51301
‘‘515. State Maritime Academy Support Program ..................................... 51501
‘‘517. Other Support for Merchant Marine Training ................................ 51701
‘‘519. Merchant Marine Awards ..................................................................... 51901
‘‘521. Miscellaneous ........................................................................................... 52101
‘‘PART C—FINANCIAL ASSISTANCE PROGRAMS
‘‘531. Maritime Security Fleet ........................................................................ 53101
‘‘533. Construction Reserve Funds ................................................................ 53301
‘‘535. Capital Construction Funds ................................................................. 53501
‘‘537. Loans and Guarantees ........................................................................... 53701
‘‘539. War Risk Insurance ................................................................................ 53901
‘‘PART D—PROMOTIONAL PROGRAMS
‘‘551. Coastwise Trade ...................................................................................... 55101
‘‘553. Passenger and Cargo Preferences ...................................................... 55301
‘‘555. Miscellaneous ........................................................................................... 55501
‘‘PART E—CONTROL OF MERCHANT MARINE CAPABILITIES
‘‘561. Restrictions on Transfers ..................................................................... 56101
‘‘563. Emergency Acquisition of Vessels ...................................................... 56301
‘‘565. Essential Vessels Affected by Neutrality Act ................................... 56501
‘‘PART F—GOVERNMENT-OWNED MERCHANT VESSELS
‘‘571. General Authority ................................................................................... 57101
‘‘573. Vessel Trade-In Program ...................................................................... 57301
‘‘575. Construction, Charter, and Sale of Vessels ...................................... 57501
‘‘PART G—RESTRICTIONS AND PENALTIES
‘‘581. Restrictions and Penalties ....................................................................58101’’.
(b) CHAPTERS PRECEDING CHAPTER 531.—Subtitle V of title 
46, United States Code, is amended by inserting after the subtitle 
analysis the following:
‘‘PART A—GENERAL 
‘‘CHAPTER 501—POLICY, STUDIES, AND REPORTS
‘‘Sec. 
‘‘50101.
Objectives and policy. 
‘‘50102.
Survey of merchant marine. 
‘‘50103.
Determinations of essential services. 
‘‘50104.
Studies of general maritime problems. 
‘‘50105.
Studies and cooperation relating to the construction of vessels. 
‘‘50106.
Studies on the operation of vessels. 
‘‘50107.
Studies on marine insurance. 
‘‘50108.
Studies on cargo carriage and cargo containers. 
‘‘50109.
Miscellaneous studies. 
‘‘50110.
Securing preference to vessels of the United States. 
‘‘50111.
Reports to Congress. 
‘‘50112.
National Maritime Enhancement Institutes. 
‘‘50113.
Use and performance reports by operators of vessels.
‘‘§ 50101. Objectives and policy 
‘‘(a) OBJECTIVES.—It is necessary for the national defense and 
the development of the domestic and foreign commerce of the United 
States that the United States have a merchant marine—
‘‘(1) sufficient to carry the waterborne domestic commerce 
and a substantial part of the waterborne export and import
H. R. 1442—73
foreign commerce of the United States and to provide shipping 
service essential for maintaining the flow of the waterborne 
domestic and foreign commerce at all times; 
‘‘(2) capable of serving as a naval and military auxiliary 
in time of war or national emergency; 
‘‘(3) owned and operated as vessels of the United States 
by citizens of the United States; 
‘‘(4) composed of the best-equipped, safest, and most suit-
able types of vessels and manned with a trained and efficient 
citizen personnel; and 
‘‘(5) supplemented by efficient facilities for building and 
repairing vessels. 
‘‘(b) POLICY.—It is the policy of the United States to encourage 
and aid the development and maintenance of a merchant marine 
satisfying the objectives described in subsection (a). 
‘‘§ 50102. Survey of merchant marine 
‘‘(a) IN GENERAL.—The Secretary of Transportation shall survey 
the merchant marine of the United States to determine whether 
replacements and additions are required to carry out the objectives 
and policy of section 50101 of this title. The Secretary shall study, 
perfect, and adopt a long-range program for replacements and addi-
tions that will result, as soon as practicable, in—
‘‘(1) an adequate and well-balanced merchant fleet, 
including vessels of all types, that will provide shipping service 
essential for maintaining the flow of foreign commerce by ves-
sels designed to be readily and quickly convertible into trans-
port and supply vessels in a time of national emergency; 
‘‘(2) ownership and operation of the fleet by citizens of 
the United States insofar as practicable; 
‘‘(3) vessels designed to afford the best and most complete 
protection for passengers and crew against fire and all marine 
perils; and 
‘‘(4) an efficient capacity for building and repairing vessels 
in the United States with an adequate number of skilled per-
sonnel to provide an adequate mobilization base. 
‘‘(b) COOPERATION WITH SECRETARY OF NAVY.—In carrying out 
subsection (a)(1), the Secretary of Transportation shall cooperate 
closely with the Secretary of the Navy as to national defense 
requirements. 
‘‘§ 50103. Determinations of essential services 
‘‘(a) ESSENTIAL SERVICES, ROUTES, AND LINES.—
‘‘(1) IN GENERAL.—The Secretary of Transportation shall 
investigate, determine, and keep current records of the ocean 
services, routes, and lines from ports in the United States, 
or in the territories and possessions of the United States, 
to foreign markets, which the Secretary determines to be essen-
tial for the promotion, development, expansion, and mainte-
nance of the foreign commerce of the United States. In making 
such a determination, the Secretary shall consider and give 
due weight to—
‘‘(A) the cost of maintaining each line; 
‘‘(B) the probability that a line cannot be maintained 
except at a heavy loss disproportionate to the benefit to 
foreign trade;
H. R. 1442—74
‘‘(C) the number of voyages and types of vessels that 
should be employed in a line; 
‘‘(D) the intangible benefit of maintaining a line to 
the foreign commerce of the United States, the national 
defense, and other national requirements; and 
‘‘(E) any other facts and conditions a prudent business 
person would consider when dealing with the person’s own 
business. 
‘‘(2) SAINT LAWRENCE SEAWAY.—For purposes of paragraph 
(1), the Secretary shall establish services, routes, and lines 
that reflect the seasonal closing of the Saint Lawrence Seaway 
and provide for alternate routing of vessels through a different 
range of ports during that closing to maintain continuity of 
service on a year-round basis. 
‘‘(b) BULK CARGO CARRYING SERVICES.—The Secretary shall 
investigate, determine, and keep current records of the bulk cargo 
carrying services that should be provided by vessels of the United 
States (whether or not operating on particular services, routes, 
or lines) for the promotion, development, expansion, and mainte-
nance of the foreign commerce of the United States and the national 
defense or other national requirements. 
‘‘(c) TYPES OF VESSELS.—The Secretary shall investigate, deter-
mine, and keep current records of the type, size, speed, method 
of propulsion, and other requirements of the vessels, including 
express-liner or super-liner vessels, that should be employed in—
‘‘(1) the services, routes, or lines described in subsection 
(a), and the frequency and regularity of the voyages of the 
vessels, with a view to furnishing adequate, regular, certain, 
and permanent service; and 
‘‘(2) the bulk cargo carrying services described in subsection 
(b). 
‘‘§ 50104. Studies of general maritime problems 
‘‘The Secretary of Transportation shall study all maritime prob-
lems arising in carrying out the policy in section 50101 of this 
title. 
‘‘§ 50105. Studies and cooperation relating to the construc-
tion of vessels 
‘‘(a) RELATIVE COSTS
AND NEW DESIGNS.—The Secretary of 
Transportation shall investigate, determine, and keep current 
records of—
‘‘(1) the relative cost of construction of comparable vessels 
in the United States and in foreign countries; and 
‘‘(2) new designs, new methods of construction, and new 
types of equipment for vessels. 
‘‘(b) RULES, CLASSIFICATIONS, AND RATINGS.—The Secretary 
shall examine the rules under which vessels are constructed abroad 
and in the United States and the methods of classifying and rating 
the vessels. 
‘‘(c) COLLABORATION WITH OWNERS AND BUILDERS.—The Sec-
retary shall collaborate with vessel owners and shipbuilders in 
developing plans for the economical construction of vessels and 
their propelling machinery, of most modern economical types, giving 
thorough consideration to all well-recognized means of propulsion 
and taking into account the benefits from standardized production 
where practicable and desirable.
H. R. 1442—75
‘‘(d) EXPRESS-LINER AND SUPER-LINER VESSELS.—The Secretary 
shall study and cooperate with vessel owners in devising means 
by which there may be constructed, by or with the aid of the 
United States Government, express-liner or super-liner vessels com-
parable to those of other nations, especially with a view to their 
use in a national emergency, and the use of transoceanic aircraft 
service in connection with or in lieu of those vessels. 
‘‘§ 50106. Studies on the operation of vessels 
‘‘(a) RELATIVE COSTS.—The Secretary of Transportation shall 
investigate, determine, and keep current records of the relative 
cost of marine insurance, maintenance, repairs, wages and subsist-
ence of officers and crews, and all other items of expense, in the 
operation of comparable vessels under the laws and regulations 
of the United States and those of the foreign countries whose 
vessels are substantial competitors of American vessels. 
‘‘(b) SHIPYARDS.—The Secretary shall investigate, determine, 
and keep current records of the number, location, and efficiency 
of shipyards in the United States. 
‘‘(c) NAVIGATION
LAWS.—The Secretary shall examine the 
navigation laws and regulations of the United States and make 
such recommendations to Congress as the Secretary considers 
proper for the amendment, improvement, and revision of those 
laws and for the development of the merchant marine of the United 
States. 
‘‘§ 50107. Studies on marine insurance 
‘‘The Secretary of Transportation shall—
‘‘(1) examine into the subject of marine insurance, the 
number of companies in the United States, domestic and for-
eign, engaging in marine insurance, the extent of the insurance 
on hulls and cargoes placed or written in the United States, 
and the extent of reinsurance of American maritime risks in 
foreign companies; and 
‘‘(2) ascertain what steps may be necessary to develop 
an ample marine insurance system as an aid in the development 
of the merchant marine of the United States. 
‘‘§ 50108. Studies on cargo carriage and cargo containers 
‘‘(a) STUDIES.—The Secretary of Transportation shall study—
‘‘(1) the methods of encouraging the development and 
implementation of new concepts for the carriage of cargo in 
the domestic and foreign commerce of the United States; and 
‘‘(2) the economic and technological aspects of the use of 
cargo containers as a method of carrying out the policy in 
section 50101 of this title. 
‘‘(b) RESTRICTION.—In carrying out subsection (a) and the policy 
in section 50101 of this title, the United States Government may 
not give preference as between carriers based on the length, height, 
or width of cargo containers or the length, height, or width of 
cargo container cells. This restriction applies to all existing con-
tainer vessels and any container vessel to be constructed or rebuilt. 
‘‘§ 50109. Miscellaneous studies 
‘‘(a) FOREIGN SUBSIDIES.—The Secretary of Transportation shall 
investigate, determine, and keep current records of the extent and
H. R. 1442—76
character of the governmental aid and subsidies granted by foreign 
governments to their merchant marine. 
‘‘(b) LAWS APPLICABLE TO AIRCRAFT.—The Secretary shall inves-
tigate, determine, and keep current records of the provisions of 
law relating to shipping that should be made applicable to aircraft 
engaged in foreign commerce to further the policy in section 50101 
of this title, and any appropriate legislation in this regard. 
‘‘(c) AID FOR COTTON, COAL, LUMBER, AND CEMENT.—The Sec-
retary shall investigate, determine, and keep current records of 
the advisability of enactment of suitable legislation authorizing 
the Secretary, in an economic or commercial emergency, to aid 
farmers and producers of cotton, coal, lumber, and cement in any 
section of the United States in the transportation and landing 
of their products in any foreign port, which products can be carried 
in dry-cargo vessels by reducing rates, by supplying additional 
tonnage to any American operator, or by operation of vessels directly 
by the Secretary, until the Secretary considers the special rate 
reduction and operation unnecessary for the benefit of those farmers 
and producers. 
‘‘(d) INTERCOASTAL AND INLAND WATER TRANSPORTATION.—The 
Secretary shall investigate, determine, and keep current records 
of intercoastal and inland water transportation, including their 
relation to transportation by land and air. 
‘‘(e) OBSOLETE TONNAGE AND TRAMP SERVICE.—The Secretary 
shall make studies and reports to Congress on—
‘‘(1) the scrapping or removal from service of old or obsolete 
merchant tonnage owned by the United States Government 
or in use in the merchant marine; and 
‘‘(2) tramp shipping service and the advisability of citizens 
of the United States participating in that service with vessels 
under United States registry. 
‘‘(f) MORTGAGE LOANS.—The Secretary shall investigate the 
legal status of mortgage loans on vessel property, with a view 
to the means of improving the security of those loans and of encour-
aging investment in American shipping. 
‘‘§ 50110. Securing preference to vessels of the United States 
‘‘(a) POSSIBILITIES
OF PROMOTING CARRIAGE.—The Secretary 
of Transportation shall investigate, determine, and keep current 
records of the possibilities of promoting the carriage of United 
States foreign trade in vessels of the United States. 
‘‘(b) INDUCEMENTS TO IMPORTERS AND EXPORTERS.—The Sec-
retary shall study and cooperate with vessel owners in devising 
means by which the importers and exporters of the United States 
can be induced to give preference to vessels of the United States. 
‘‘(c) LIAISON WITH AGENCIES AND ORGANIZATIONS.—The Sec-
retary shall establish and maintain liaison with such other agencies 
of the United States Government, and with such representative 
trade organizations throughout the United States, as may be con-
cerned, directly or indirectly, with any movement of commodities 
in the waterborne export and import foreign commerce of the United 
States, for the purpose of securing preference to vessels of the 
United States in the shipment of those commodities. 
‘‘§ 50111. Reports to Congress 
‘‘(a) IN GENERAL.—Not later than April 1 of each year, the 
Secretary of Transportation shall submit a report to Congress.