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SEC. 204. 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(Public Law 101–115; 103 Stat. 692), is repealed.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1295c note) is repealed.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. 205. 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—
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(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. 206. MAINTENANCE OF READY RESERVE FORCE VES-
SELS IN REDUCED OPERATING STATUS.
The Secretary shall, during fiscal year 1995, 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. 207. 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
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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 ves-
sels.
(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 1 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 OF 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. 1774(d)(2)) applies.
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(e) GEOGRAPHIC
DISTRIBUTION.—The Secretary
shall seek to distribute contract awards under this section
to shipyards located 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, no later than 20
months after the date of the enactment of this Act;
and
(2) a final report on that effectiveness no later
than 6 months after the termination of all contracts
awarded pursuant to this section.
SEC. 208. AMENDMENTS RELATING TO COAST GUARD MARI-
TIME ACADEMY RESERVE TRAINING PRO-
GRAM.
(a) NAVAL RESERVE STATUS.—Section 1304(g)(2)
of the Merchant Marine Act, 1936 (46 App. U.S.C.
1295c(g)(2)) is amended by inserting before the period the
following: ‘‘, unless the individual participates in the Coast
Guard Maritime Academy Reserve Training Program’’.
(b) 
RESERVE
SERVICE
OBLIGATION.—Section
1304(g)(3)(D) of the Merchant Marine Act, 1936 (46
App. U.S.C. 1295c(g)(3)(D)) is amended by—
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(1) inserting ‘‘(i)’’ after ‘‘commissioned officer’’;
(2) inserting ‘‘(except as provided in clause
(ii))’’ after ‘‘the United States Coast Guard Re-
serve’’; and
(3) inserting before the semicolon at the end
the following: ‘‘; or (ii) in the United States Coast
Guard Reserve for such period following that date of
graduation as may be established by the Secretary
of the department in which the Coast Guard is oper-
ating, in the case of an individual that participates
in the Coast Guard Maritime Academy Reserve
Training Program’’.
(c) PENALTIES FOR FAILURE TO FULFILL INCEN-
TIVE PAYMENT AGREEMENT.—Section 1304(g) of the
Merchant Marine Act, 1936 (46 App. U.S.C. 1295c(g))
is amended—
(1) in paragraph (4) by inserting ‘‘, except as
provided in paragraph (8),’’ after ‘‘such individual
may’’;
(2) in paragraph (5) by inserting ‘‘, except as
provided in paragraph (8),’’ after ‘‘such individual
may’’; and
(3) by adding at the end the following:
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‘‘(8)(A) Paragraphs (4) and (5) shall not apply to
a failure to fulfill a part of an agreement, by an individual
who—
‘‘(i) is enlisted in the United States Coast
Guard Reserve; and
‘‘(ii) participates in the Coast Guard Maritime
Academy Reserve Training Program.
‘‘(B) If the Secretary determines that an individual
described in subparagraph (A) has failed to fulfill any part
of the agreement (required by paragraph (1)) described
in paragraph (3), the individual may be ordered to active
duty in the Coast Guard to serve for a period of time de-
termined by the Commandant of the Coast Guard, not to
exceed 2 years. In cases of hardship as determined by the
Secretary, the Secretary may waive this subparagraph.’’.
(d) COAST GUARD MARITIME ACADEMY RESERVE
TRAINING PROGRAM DEFINED.—Section 1304(g) of the
Merchant Marine Act, 1936 (46 App. U.S.C. 1295c(g)),
as amended by this section, is further amended by adding
at the end the following:
‘‘(9) In this subsection, the term ‘Coast Guard Mari-
time Academy Reserve Training Program’ means that
program established by the Commandant of the Coast
Guard, as in effect on the date of the enactment of the
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Maritime Administration Authorization Act for Fiscal
Year 1995.’’.
SEC. 209. MERCHANT SHIP SALES ACT OF 1946 AMEND-
MENT.
Section 11 of the Merchant Ship Sales Act of 1946
(50 App. U.S.C. 1744) is amended as follows:
(1) In subsection (b)(2) by striking ‘‘Secretary
of the Navy,’’ and inserting ‘‘Secretary of Defense,’’.
(2) By striking subsection (c) and redesignating
subsection (d) as subsection (c).
SEC. 210. REEMPLOYMENT RIGHTS FOR CERTAIN MER-
CHANT SEAMEN.
(a) IN GENERAL.—Title III of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1131) is amended by inserting
after section 301 the following new section:
‘‘SEC. 302. (a) An individual who is certified by the
Secretary of Transportation under subsection (c) shall be
entitled to reemployment rights and other benefits sub-
stantially equivalent to the rights and benefits provided
for by chapter 43 of title 38, United States Code, for any
member of a Reserve component of the Armed Forces of
the United States who is ordered to active duty.
‘‘(b) An individual may submit an application for cer-
tification under subsection (c) to the Secretary of Trans-
portation not later than 45 days after the date the individ-
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ual completes a period of employment described in sub-
section (c)(1)(A) with respect to which the application is
submitted.
‘‘(c) Not later than 20 days after the date the Sec-
retary of Transportation receives from an individual an
application for certification under this subsection, the Sec-
retary shall—
‘‘(1) determine whether or not the individual—
‘‘(A) was employed in the activation or op-
eration of a vessel—
‘‘(i) in the National Defense Reserve
Fleet maintained under section 11 of the
Merchant Ship Sales Act of 1946, in a pe-
riod in which that vessel was in use or
being activated for use under subsection
(b) of that section;
‘‘(ii) that is requisitioned or pur-
chased under section 902 of this Act; or
‘‘(iii) that is owned, chartered, or con-
trolled by the United States and used by
the United States for a war, armed con-
flict, national emergency, or maritime mo-
bilization need (including for training pur-
poses or testing for readiness and suit-
ability for mission performance); and
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‘‘(B) during the period of that employ-
ment, possessed a valid license, certificate of
registry, or merchant mariner’s document is-
sued under chapter 71 or chapter 73 (as appli-
cable) of title 46, United States Code; and
‘‘(2) if the Secretary makes affirmative deter-
minations under paragraph (1) (A) and (B), certify
that individual under this subsection.
‘‘(d) For purposes of reemployment rights and bene-
fits provided by this section, a certification under sub-
section (c) shall be considered to be the equivalent of a
certificate referred to in paragraph (1) of section 4301(a)
of title 38, United States Code.’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall apply to employment described in section
302(c)(1)(A) of the Merchant Marine Act, 1936, as
amended by subsection (a), occurring after August 2,
1990.
(c) EMPLOYMENT ENDING BEFORE ENACTMENT.—
Notwithstanding subsection (b) of section 302 of the Mer-
chant Marine Act, 1936, as amended by this Act, an indi-
vidual who, in the period beginning August 2, 1990, and
ending on the date of the enactment of this Act, completed
a period of employment described in subsection (c)(1)(A)
of that section may submit an application for certification
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under subsection (c) of that section with respect to that
employment not later than 45 days after the date of the
enactment of this Act.
(d) REGULATION.—Not later than 120 days after the
date of the enactment of this Act, the Secretary of Trans-
portation shall issue regulations implementing this section.
SEC. 211. PILOT PROGRAM ON SEALIFT TRAINING.
The Secretary of Transportation shall establish, sub-
ject to the availability of appropriations in addition to the
amount authorized to be appropriated under section
102(a)(2), a 3-year period pilot program for Sealift Train-
ing at the Massachusetts Maritime Academy.
SEC. 212. MASSACHUSETTS CENTER FOR MARINE ENVIRON-
MENTAL PROTECTION.
The Secretary of Transportation shall pay, subject to
the availability of appropriations in addition to the amount
authorized to be appropriated under section 102,
$242,000 to the Massachusetts Maritime Academy for as-
sistance to the Massachusetts Center for Marine Environ-
mental Protection.
SEC. 213. REPORT ON SEALIFT MANPOWER MOBILIZATION
PROGRAM.
Not later than 6 months after the date of the enact-
ment of this Act, the Secretary of Transportation shall
submit a report to the Congress on—
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(1) the feasibility of conducting on Ready Re-
serve Force vessels a program to familiarize civilian
merchant mariners with the operation of those ves-
sels, for the purpose of facilitating national defense
mobilizations involving those vessels; and
(2) the ability of the Coast Guard to track the
availability of qualified civilian merchant mariners
for service on those vessels during those mobiliza-
tions.
SEC. 214. VESSEL DOCUMENTATION.
Notwithstanding section 12108 of title 46, United
States Code, the Secretary of Transportation may issue
a certificate of documentation with appropriate endorse-
ment for employment in the fisheries for the vessel
ABORIGINAL (United States official number 942118).
SEC. 215. 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, 1994, 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-
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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;
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(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 1996.
SEC. 216. TITLE XI LOAN GUARANTEES.
Title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) is amended—
(1) in section 1101(b), by striking ‘‘owned by
citizens of the United States’’;
(2) in section 1104B(a), in the material preced-
ing paragraph (1), by striking ‘‘owned by citizens of
the United States’’; and
(3) in section 1110(a), by striking ‘‘owned by
citizens of the United States’’.
SEC. 217. STUDY OF FEASIBILITY OF SHIP REPAIR DIF-
FERENTIAL ASSISTANCE PROGRAM.
(a) STUDY.—The Secretary of Transportation shall
conduct a study of the feasibility of establishing a program
of financial assistance to qualified ship repair yards, to
make those yards more competitive in international ship
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repair markets by paying to those yards the difference be-
tween the cost of repairing vessels in those yards and the
cost of repairing vessels in foreign ship repair yards.
(b) REPORT.—The Secretary of Transportation shall
submit to the Congress by not later than 1 year after the
date of the enactment of this Act a report on the findings
and recommendations of the study required by subsection
(a).
(c) QUALIFIED SHIP REPAIR YARD DEFINED.—For
purposes of this section, the term ‘‘qualified ship repair
yard’’ has the meaning given that term in section 118(d).
SEC. 218. QUALIFIED SHIP REPAIR YARD MODERNIZATION
ASSISTANCE.
(a) GRANT AUTHORITY.—The Secretary of Transpor-
tation may use available amounts to make grants to quali-
fied ship repair yards to pay 75 percent of the cost of
acquiring advanced ship repair technology and modern
ship repair technology.
(b) CONDITION OF ASSISTANCE.—As a condition of
receiving a grant under this section, the Secretary shall
require that a qualified ship repair yard provide, in cash
contributions, 25 percent of the costs incurred in acquir-
ing advanced ship repair technology and modern ship re-
pair technology with the grant.
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(c) PRIORITY.—In making grants under this section,
the Secretary shall give priority to qualified ship repair
yards for which assistance under this section will permit
the performance of ship repairs more efficiently and in a
manner that is more competitive with foreign ship repair
yards.
(d) DEFINITIONS.—For purposes of this section:
(1) ADVANCED SHIP REPAIR TECHNOLOGY.—
The term ‘‘advanced ship repair technology’’ in-
cludes—
(A) numerically controlled machine tools,
robots, automated process control equipment,
computerized flexible manufacturing systems,
associated computer software, and other tech-
nology for improving ship repair and related in-
dustrial production which advance the state-of-
the-art; and
(B) novel techniques and processes de-
signed to improve ship repair quality, productiv-
ity, and practice, and to promote sustainable
development, 
including 
engineering 
design,
quality assurance, concurrent engineering, con-
tinuous process production technology, energy
efficiency, 
waste 
minimization, 
design 
for
recyclability or parts reuse, inventory manage-
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ment, upgraded worker skills, and communica-
tions with customers and suppliers.
(2) MODERN SHIP REPAIR TECHNOLOGY.—The
term ‘‘modern ship repair technology’’ means the
best available proven technology, techniques, and
processes appropriate to enhancing the productivity
of ship repair yards.
(3) QUALIFIED SHIP REPAIR YARD DEFINED.—
The term ‘‘qualified ship repair yard’’ means a ship-
yard located in the United States that meets the eli-
gibility qualification requirements for obtaining and
retaining a Master Ship Repair Agreement with the
United States Navy.
(e) AUTHORIZATION
OF
APPROPRIATIONS.—For
grants under this section there are authorized to be appro-
priated to the Secretary of Transportation $17,500,000
for fiscal year 1995, to remain available until expended.
SEC. 219. GREAT LAKES ENDORSEMENTS.
(a) REPEAL OF GREAT LAKES ENDORSEMENT.—
(1) Section 12107 of title 46, United States
Code, is repealed.
(2) The analysis at the beginning of chapter
121 of title 46, United States Code, is amended by
striking the item relating to section 12107.
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(3) Section 12101(b)(3) of title 46, United
States Code, is repealed.
(b) CONFORMING AMENDMENT.—Section 4370(a) of
the Revised Statutes of the United States (46 App. U.S.C.
316(a)) is amended by striking ‘‘or 12107’’.
(c) ADDITIONAL CONFORMING AMENDMENTS.—
(1) Section 2793 of the Revised Statutes of
the United States (46 App. U.S.C. 111, 123) is
amended—
(A) by striking ‘‘coastwise, Great Lakes
endorsement’’ and all that follows through ‘‘for-
eign ports,’’ and inserting ‘‘registry endorse-
ment, engaged in foreign trade on the Great
Lakes or their tributary or connecting waters in
trade with Canada,’’; and
(B) by striking ‘‘, as if from or to foreign
ports’’.
(2) The Act of March 8, 1910 (46 App. U.S.C.
132; 32 Stat. 234, chapter 86), is amended by strik-
ing ‘‘shall be exempt’’ and all that follows through
the end of the section and inserting ‘‘shall be exempt
from section 36(a) of the Act of August 5, 1909 (36
Stat. 111).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect October 1, 1994.
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TITLE III—TONNAGE DUTIES
SEC. 301. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) The Coast Guard—
(A) will spend over $400,000,000 in fiscal
year 1995 conducting search and rescue oper-
ations far into the Atlantic and Pacific Oceans
and the Gulf of Mexico to protect life and prop-
erty on United States and foreign-flag vessels;
(B) inspects vessels of all nations to ensure
their compliance with international treaties and
conventions;
(C) will spend over $470,000,000 in fiscal
year 1995 providing navigational aids to vessels
from around the world through the operation
of—
(i) LORAN, OMEGA, and the Dif-
ferential Global Positioning System; and
(ii) over 46,000 lighthouses, buoys,
daybeacons, fog signals, radar reflectors
and Vessel Traffic Service systems; and
(D) will spend over $86,000,0000 in fiscal
year 1995 providing icebreaking services for
vessels from all nations.