IB
Union Calendar No. 104
103D CONGRESS
1ST SESSION
H. R. 1964
[Report No. 103–182]
To authorize appropriations for the Maritime Administration for fiscal year
1994, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 4, 1993
Mr. LIPINSKI (for himself, Mr. STUDDS, Mr. BATEMAN, Mr. FIELDS of Texas,
and Mr. TAUZIN) introduced the following bill; which was referred to the
Committee on Merchant Marine and Fisheries
JULY 19, 1993
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on May 4, 1993]
A BILL
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 follow-
ing amounts are authorized to be appropriated for the Mar-
itime 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 reimburse-
ment of fuel costs associated with the operation
of training vessels), of which $1,200,000 may be
used for training simulators for the State mari-
time academies; and
(C) $1,792,000 for manpower and addi-
tional training.
(3) $30,713,000 for operating programs, includ-
ing—
(A) $19,989,000 for general administration;
(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 national
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 relat-
ed 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 mortgage insur-
ance.
(6) $50,000,000 for costs (as that term is defined
in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) of new loan guarantee commit-
ments under title XI of the Merchant Marine Act,
1936 (46 App. U.S.C. 1271 et seq.).
(7) $242,000 for assistance to the Massachusetts
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 Transportation
may use proceeds derived from the sale or disposal of Na-
tional Defense Reserve Fleet vessels that are currently col-
lected and retained by the Maritime Administration for fa-
cility and ship maintenance, modernization and repair, ac-
quisition of equipment, training simulators, and fuel costs
necessary to maintain training at the United States Mer-
chant 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 de-
velopment 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 des-
ignate 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 MAR-
ITIME 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;
the individual graduates from a State maritime acad-
emy; and
‘‘(iii) is liable for a fee or charge described in
subparagraph (A).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (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 agreements
under section 1304(d) of the Merchant Marine Act, 1936
(46 App. U.S.C. 1295c(d)) pursuant to the amendment
made by subsection (a).
(d) ADDITIONAL APPROPRIATIONS AUTHORIZED.—In
addition to amounts authorized to be appropriated for as-
sistance to State maritime academies, there is authorized
to be appropriated $300,000 for fiscal year 1994 to reim-
burse qualified individuals pursuant to the amendment
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 MARITIME
ACADEMY ASSISTANCE.
(a) IN GENERAL.—Section 1304(f)(1) of the Merchant
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 sub-
section (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 con-
tract for the maintenance of the National Defense Reserve
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 reducing
employment at the Fleet site.
SEC. 8. MAINTENANCE OF READY RESERVE FORCE VESSELS
IN REDUCED OPERATING STATUS.
The Secretary shall, during fiscal year 1994, maintain
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 Sec-
retary determines to be practicable based on the ap-
propriations available for that fiscal year for mainte-
nance 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 repair
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 appropriations 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 section,
the Secretary of Transportation shall use contracting ar-
rangements similar to those used by the Department of De-
fense 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 pro-
curement from the shipyard of all repair and mainte-
nance 
(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 procure-
ment of operation or manning for a vessel that may be pro-
cured 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 shipyards that
are distributed throughout the United States.
(f) REPORTS.—The Secretary shall submit to the Con-
gress—
(1) an interim report on the effectiveness of each
contract under this section in providing for economic
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 describes
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 Depart-
ment 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 maritime
industrial base, including ship repairers, ship-
builders, ship manning, ship operators, and ship sup-
pliers;
(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 requirements
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 Sec-
retary 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 lesser
percentage of principal or interest (or both) author-
ized by that title.
HR 1964 RH——2