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soever, shall be placed in such depositories as the
National Maritime Trust shall determine and shall
be subject to expenditure by the National Maritime
Trust for its corporate purposes;
(6) To acquire by gift, devise, purchase, or oth-
erwise, absolutely or on trust, and to hold and, un-
less otherwise restricted by the terms of the gift or
devise, to encumber, convey, or otherwise dispose of,
any real property, or any estate or interest therein
(except property within the exterior boundaries of
national parks and national monuments), as may be
necessary and proper in carrying into effect the pur-
poses of the National Maritime Trust;
(7) To contract and make cooperative agree-
ments with Federal, State, or municipal departments
or agencies, corporations, associations, or individ-
uals, under such terms and conditions as it deems
advisable, respecting the protection, preservation,
maintenance, or operation of any maritime historic
site, building, object, or other property used in con-
nection therewith for public use, regardless of wheth-
er the National Maritime Trust has acquired title to
the properties, or any interest therein;
(8) To enter into contracts generally and to
execute all instruments necessary or appropriate to
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carry out its corporate purposes, which instruments
shall include such concession contracts, leases, or
permits for the use of lands, buildings, or other
property deemed desirable either to accommodate
the public or to facilitate administration;
(9) To appoint and prescribe the duties of such
officers, agents, and employees as may be necessary
to carry out its functions, and to fix and pay such
compensation to them for their services as the Na-
tional Maritime Trust may determine; and
(10) Generally to do any and all lawful acts
necessary or appropriate to carry out the purposes
for which the National Maritime Trust is created.
SEC. 5. NATIONAL MARITIME HERITAGE GRANTS PRO-
GRAM.
(a) ESTABLISHMENT.—
(1) There is established within the Department
of the Interior a National Maritime Heritage Grants
Program to foster in the American public a greater
awareness and appreciation of the role of maritime
endeavors in our Nation’s history and culture.
(2) Within ninety days after the date of enact-
ment of this Act, the Secretary, acting through the
Director of the National Park Service, may enter
into a cooperative agreement with the National Mar-
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itime Trust for assistance in the administration of
the grants program.
(3) The Secretary shall administer a program
of matching grants-in-aid to carry out the purposes
of this Act.
(4)(A) In addition to the programs under para-
graph (3) of this subsection, the Secretary may,
through the National Maritime Initiative, administer
a program of direct grants for the preservation of
maritime resources. Funds to support this direct
grants program annually shall not exceed 10 percent
of the amount derived under section 6 of this Act.
(B) These grants may be made by the Sec-
retary—
(i) for the preservation of national mari-
time historic resources which are threatened
with demolition or impairment and for the pres-
ervation of maritime historic resources of sig-
nificance;
(ii) for maritime demonstration projects
which will provide information concerning pro-
fessional methods and techniques having appli-
cation to maritime historic resources;
(iii) for the training and development of
skilled labor in trades and crafts, and in analy-
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sis, marine survey, and curation, relating to
maritime historic preservation; and
(iv) for educational programs to increase
the awareness by the American public of our
maritime heritage.
(b) GRANTS PROCESS.—
(1) The Secretary shall publish annually a
grants solicitation, together with grant priorities and
other relevant information, in the Federal Register
and otherwise as the Secretary deems appropriate.
(2) Each fiscal year, the Secretary, acting
through the National Maritime Trust, shall receive
and process applications for grants under the regula-
tions promulgated pursuant to section 11 of this
Act.
(c) NATIONAL
MARITIME
TRUST
RESPONSIBIL-
ITIES.—Under the cooperative agreement executed under
subsection (a) of this section, the National Maritime Trust
shall be responsible for administration of the grants pro-
gram, including—
(1) publicizing the program to prospective
grantees in accordance with the regulations promul-
gated by the Secretary;
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(2) answering inquiries from the public, includ-
ing providing information on the program as re-
quested;
(3) distributing grant applications;
(4) collecting proposals and ensuring their com-
pleteness;
(5) forwarding the proposals to the Committee
for review;
(6) transmitting the recommendations of the
Committee to the Secretary;
(7) keeping records of all grant awards and ex-
penditures of funds;
(8) monitoring progress of grants;
(9) providing progress reports to the Secretary
as requested; and
(10) any other responsibilities that the Sec-
retary deems appropriate.
(d) REPORT TO CONGRESS.—The National Maritime
Trust shall submit an annual report on the program to
the Secretary for transmittal to Congress. The report shall
include—
(1) a description of each project funded;
(2) the results or accomplishments of each
project;
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(3) a detailed review of the National Maritime
Trust’s operations, activities and financial condition;
(4) recommended priorities for achieving the
purposes of the Act under section 5(c)(4); and
(5) the audit report required under section 8.
(e) CRITERIA FOR GRANT ELIGIBILITY.—To qualify
for a grant under this section, a grantee must—
(1) demonstrate that the project for which
funding is being sought—
(A) has the potential for reaching a broad
audience with an effective educational program
based on American maritime history, tech-
nology, or the role of maritime endeavors in
American culture; and
(B) has the ability to garner support from
non-Federal sources;
(2) match the grant award with non-Federal as-
sets, including cash, as appropriate;
(3) demonstrate organizational viability;
(4) exhibit the existence of approved business
and operation plans;
(5) maintain records as may be reasonably nec-
essary to fully disclose—
(A) the amount and the disposition of the
proceeds of the grant;
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(B) the total cost of the project for which
the grant is given or used;
(C) the amount and nature of that portion
of the cost of the project supplied by other
sources; and
(D) other records as will facilitate an effec-
tive audit required in regulation by the Sec-
retary;
(6) provide access for the purposes of any re-
quired audit and examination of any books, docu-
ments, papers, and records of the recipient under
this Act; and
(7) be a unit of Federal, State, or local govern-
ment, or a nonprofit organization that has applied
for, or has been granted, 501(c)(3) status.
(f) GRANTS.—Grants will be available for projects
of—
(1) national, regional, and local maritime his-
toric significance, including restoration of vessels,
small craft, lighthouses, and other sites, structures,
or objects listed on the National Register of Historic
Places; and
(2) significant educational or cultural value, in-
cluding museums, fishing villages, maritime edu-
cational waterborne-experience programs, construc-
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tion or purchase of educational facilities, structures
or vessels, and other projects that the Secretary
deems appropriate.
(g) TERMS AND CONDITIONS.—
(1) No part of any grant made under this sec-
tion may be used to compensate any person inter-
vening in any proceeding under this Act.
(2) An application must be submitted in accord-
ance with regulations and procedures prescribed by
the Secretary;
(3) No grant may be awarded—
(A) unless the grantee has agreed to as-
sume, after completion of the project for which
the grant is awarded, the total cost of the con-
tinued maintenance, repair, and administration
of the property in a manner satisfactory to the
Secretary; and
(B) until the grantee has complied with
such further terms and conditions as the Sec-
retary may deem necessary or advisable.
(4) Except as permitted by other law, the State
share of the costs referred to in paragraph (3) of
this subsection shall be contributed by non-Federal
sources.
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(5) Notwithstanding any other law, no grant
made pursuant to this Act shall be treated as tax-
able income for purposes of the Internal Revenue
Code of 1986.
(6) The Secretary shall make funding available
as soon as practicable after execution of a grant
agreement.
(7) The total administrative costs, direct and
indirect, charged for carrying out projects and pro-
grams may not exceed 25 percent of the aggregate
costs.
(8) The amount of funds expended on Federal
projects shall not exceed 20 percent of the amount
appropriated annually under this Act for the fund.
(h) REVIEW OF PROPOSALS.—
(1) 
COMMITTEE
RECOMMENDATIONS.—The
committee established under section 7 of this Act
shall review the grant proposals and make rec-
ommendations to the Secretary as to which projects
should receive funding.
(2) SECRETARIAL APPROVAL.—Within one hun-
dred and twenty days of the deadline for submission,
the Secretary shall approve applications for grants
under this subsection recommended by the commit-
tee if the Secretary is satisfied that—
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(A) the applicant has the requisite tech-
nical and financial capability to carry out the
project; and
(B) the project adequately implements the
objectives of the Act and will comply with sub-
section (g) of this section.
(i) WAIVER.—The Secretary may waive the require-
ments of this section for any grant under this Act.
SEC. 6. CONVEYANCE OF NDRF VESSEL FOR SCRAPPING BY
NATIONAL MARITIME TRUST
(a) VESSEL CONVEYANCE AUTHORITY.—
(1) IN GENERAL.—Notwithstanding any other
law, the Secretary of Transportation may convey to
the National Maritime Trust, without consideration,
all right, title, and interest of the United States
Government in each vessel which—
(A) is in the National Defense Reserve
Fleet on the date of the enactment of this sec-
tion;
(B) has no usefulness to the Government;
and
(C) is scheduled to be scrapped.
(2) CONDITION.—As a condition of conveying a
vessel to the National Maritime Trust pursuant to
this section, the Secretary shall require that the Na-
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tional Maritime Trust enter into an agreement with
the Secretary which requires that the National Mari-
time Trust—
(A) sell the vessel for scrap purposes;
(B) use the proceeds of that scrapping for
expenses directly related to the purposes of this
Act; and
(C) comply with any other conditions the
Secretary considers appropriate.
(b) DELIVERY.—The Secretary shall deliver a vessel
conveyed under this section to the National Maritime
Trust—
(1) at the place where the vessel is located on
the date of the approval of the conveyance;
(2) in its condition on that date; and
(3) without cost to the Government.
(c) MINIMUM VESSEL SALE.—The National Mari-
time Trust shall sell a sufficient quantity of vessels annu-
ally to ensure that the amount derived is not less than
$5,000,000 for each fiscal year beginning in fiscal year
1994 and ending in fiscal year 2000, and amounts as may
be required thereafter.
(d) TREATMENT OF AMOUNTS AVAILABLE TO THE
TRUST.—Amounts available to, or used by, the National
Maritime Trust pursuant to this subsection shall not be
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considered in any determination of the amounts available
to the Department of the Interior.
(e) ADMINISTRATIVE EXPENDITURES.—
(1) MINIMUM
AMOUNT.—Not more than 15
percent or $250,000, whichever is greater, of the
amount derived under this section in any fiscal year
may be used for administering the program under
the cooperative agreement executed under section 5
of this Act.
(2) ALLOCATION.—Of the amount used for ad-
ministering the program in any fiscal year, two-
thirds shall be allocated to the National Maritime
Trust and one-third allocated to the National Park
Service.
(f) DISBURSEMENT CRITERIA.—In expending the
funds derived under this section, the Secretary shall give
due consideration to the following factors:
(1) the national significance of a project;
(2) its maritime historical and educational value
to the community;
(3) the imminence of its destruction or loss;
and
(4) the expressed intentions of the donor.
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SEC. 7. MARITIME HERITAGE PROGRAM GRANTS COMMIT-
TEE.
(a) ESTABLISHMENT.—There is established a Mari-
time Heritage Grants Committee.
(b) MEMBERSHIP.—Within one hundred and twenty
days of enactment of this Act, and biennially thereafter,
the Secretary shall appoint the members of the Commit-
tee. The Committee shall consist of eleven members rep-
resenting various sectors of the maritime community who
are knowledgeable and experienced in maritime heritage
and preservation, and showing regional geographic bal-
ance, as follows:
(1) one representative from the field of small
craft preservation;
(2) one representative from the field of large
vessel preservation;
(3) one representative from the field of sail
training;
(4) one representative from the field of preser-
vation architecture;
(5) one representative from the field of under-
water archeology;
(6) one representative from the field of light-
house preservation;
(7) one representative from the field of mari-
time education;
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(8) one representative having a military naval
history background;
(9) one representative from a maritime museum
or maritime historical society; and
(10) two representatives from the general pub-
lic.
(c) DUTIES OF THE COMMITTEE.—The duties of the
Committee include—
(1) providing oversight of the grants program
on a continuing basis;
(2) reviewing grant proposals;
(3) making funding recommendations to the
Secretary;
(4) identifying and advising the Secretary re-
garding priorities for achieving the purposes of the
Act;
(5) reviewing the National Maritime Trust’s an-
nual grants report to the Secretary; and
(6) performing any other duties as the Sec-
retary deems appropriate.
(d) REPORT.—The Committee shall submit annually
a comprehensive report of its activities and the results of
its studies to the Secretary and Congress and shall from
time to time submit additional and special reports as it
deems advisable. Each report shall propose legislative en-
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actments and other actions as, in the judgment of the
Committee, are necessary and appropriate to carry out its
recommendations and shall provide the Committee’s as-
sessment of current and emerging problems in the field
of maritime historic preservation and an evaluation of the
effectiveness of the programs of Federal agencies, State
and local governments, and the private sector in carrying
out the purposes of this Act.
(e) QUORUM.—Seven members of the Committee
shall constitute a quorum.
(f) APPOINTMENTS PROCESS.—
(1) DUTIES
OF
THE
SECRETARY.—The Sec-
retary shall—
(A) publicize annually in the Federal Reg-
ister a call for nominations with a statement
that the applications for nomination shall be
submitted to the National Maritime Trust;
(B) make the appointments to the Com-
mittee giving due consideration to the rec-
ommendations of the National Maritime Trust;
and
(C) designate a Chairman and a Vice
Chairman, from the members appointed under
this section. The Vice Chairman may act in
place of the Chairman during the absence or
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disability of the Chairman or when the office is
vacant.
(2) DUTIES
OF
THE
NATIONAL
MARITIME
TRUST.—The National Maritime Trust shall—
(A) widely publicize the call for nomina-
tions in its newsletter and by any other appro-
priate means;
(B) collect nominations and categorize the
nominations as set forth in subsection (b); and
(C) submit the nominations to the Sec-
retary with recommendations as to appoint-
ments by category as set forth in subsection
(b).
(3) TERMS OF APPOINTMENTS.—The members
of the Committee shall be appointed for staggered
terms of not more than three years. If a vacancy oc-
curs, the Secretary shall appoint a replacement for
the balance of the vacated term within sixty days.
(g) GOVERNMENT REPRESENTATIVES.—There shall
be nonvoting government representatives appointed to
serve as advisors to the Committee as follows—
(1) at least one representative from the Na-
tional Maritime Initiative of the National Park Serv-
ice;
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(2) one representative each from the Depart-
ment of Transportation, Department of Navy, and
the National Oceanographic and Atmospheric Ad-
ministration; and
(3) other representatives from interested gov-
ernment agencies as the Secretary deems appro-
priate.
(h) COMMITTEE
INDEPENDENCE.—No officer or
agency of the United States shall have any authority to
require the Committee to submit its legislative rec-
ommendations, or testimony, or comments on legislation
to any officer or agency of the United States for approval,
comments, or review, prior to the submission of rec-
ommendations, testimony, or comments to Congress. In
instances in which the Committee voluntarily seeks to ob-
tain the comments or review of any officer or agency of
the United States, the Committee shall include a descrip-
tion of those actions in its legislative recommendations,
testimony, or comments on legislation that it transmits to
Congress.
(i) SECRETARIAL ASSISTANCE.—To assist the Com-
mittee in discharging its responsibilities under this Act,
the Secretary at the request of the Chairman, shall provide
a report to the Committee detailing the significance of any
maritime historic resource, describing the effects of any
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proposed undertaking on the affected resource, and rec-
ommending measures to avoid, minimize, or mitigate ad-
verse effects.
(j) COMPENSATION.—A member of the Committee
who is not an officer or employee of the United States
shall serve without pay, and a member of the Committee
who is an officer or employee of the United States shall
receive no additional pay, on account of the member’s
service on the Committee. While away from home or regu-
lar place of business in the performance of service for the
Committee, a member of the Committee shall be allowed
travel expenses, including per diem in lieu of subsistence,
in the same manner as a person employed intermittently
in the Government service is allowed expenses under sec-
tion 5703 of title 5, United States Code.
(k) FACA EXEMPTION.—The Committee is exempt
from the provisions of the Federal Advisory Committee
Act (86 Stat. 770).
SEC. 8. INTERIM PROJECTS.
(a) DETERMINATION BY COMMITTEE.—Within six
months of the date of enactment of this Act, the Commit-
tee, in consultation with the Secretary, shall determine if
any projects exist that meet the criteria under subsection
(d) of this section.
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(b) DESIGNATION BY SECRETARY.—The Secretary
shall designate those projects determined qualified under
subsection (a) of this section to receive a grant prior to
issuance of the implementing regulations.
(c) ISSUANCE OF GRANTS.—Upon scrapping of a ves-
sel under section 6 of this Act, the Secretary shall disburse
funds derived under that section to those projects des-
ignated in subsection (b) of this section in the amounts
approved in the grant for each project.
(d) INTERIM CRITERIA.—To qualify for an interim
grant, a grantee must meet the criteria under section 5(e)
of this Act and—
(1) be a 501(c)(3) organization;
(2) demonstrate that the project needs acceler-
ated consideration to contribute to a significant na-
tional event relating to the maritime heritage of the
United States;
(3) establish that one-half of the matching
funds are in cash;
(4) demonstrate that the project for which
funding is sought is national in scope and edu-
cational in nature; and
(5) show that the proposed project is supported
by a broad-based membership program or group of
donors.
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SEC. 9. AUDITS OF ACCOUNTS.
(a) INDEPENDENT AUDIT.—The accounts of the Na-
tional Maritime Trust shall be audited annually in accord-
ance with generally accepted auditing standards by inde-
pendent certified public accountants or independent li-
censed public accountants certified or licensed by a regu-
latory authority of a State or other political subdivision
of the United States. The audits shall be conducted at a
place or places where the accounts of the organization are
normally kept. All books, accounts, financial records, re-
ports, files, and all other papers, things, or property be-
longing to or in use by the Alliance and necessary to facili-
tate the audits, and full facilities for verifying transactions
with any assets held by depositories, fiscal agents, and
custodians, shall be afforded to that person or persons.
The report of this independent audit shall be included in
the report to Congress required by section 3 of this Act.
(b) GENERAL ACCOUNTING OFFICE AUDIT.—The fi-
nancial transactions of the National Maritime Trust for
each fiscal year may be audited by the General Accounting
Office in accordance with the principles and procedures
and under rules and regulations as may be prescribed by
the Comptroller General of the United States. Any audit
shall be conducted at the place or places where accounts
of the organization are normally kept. The representatives
of the General Accounting Office shall have access to all