To authorize appropriations for fiscal year 1990 for the Maritime Administration and for other purposes.
PL 101-115 (H.R.1486), enacted 10/13/1989

PUBLIC LAW 101-115—OCT. 13, 1989 
103 STAT. 691 
Public Law 101-115 
101st Congress 
An Act 
To authorize appropriations for fiscal year 1990 for the Maritime Administration, 
Oct. 13, 1989 
and for other purposes. 
[H.R. 1486] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
AUTHORIZATIONS FOR MARITIME ADMINISTRATION 
SECTION 1. In fiscal year 1990, the following amounts are au-
thorized to be appropriated for the Maritime Administration: 
(1) any amounts necessary to liquidate obligations under 
operating-differential subsidy contracts for the fiscal year 1990 
portion of the total of current contract authority; 
(2) $3,750,000 for research and development activities, to 
remain available until expended, including— 
(A) $2,250,000 for vessel design and shipyard studies; and 
(B) $1,500,000 for other research; 
(3) $33,205,000 for expenses related to manpower, education, 
and training, including— 
(A) $23,157,000 for maritime training at the Merchant 
Marine Academy at Kings Point, New York; 
(B) $8,670,000 for assistance to the State maritime acad-
emies and the current fleet of five training ships; and 
(C) $1,378,000 for manpower and additional training; 
(4) $25,966,000 for operating programs, including— 
(A) $17,853,000 for general administration; 
(B) $957,000 for development of water transportation sys-
tems; and 
(C) $7,156,000 for use of water transportation systems; 
and 
(5) such sums as are necessary for expenses related to na-
tional security support capabilities, including— 
(A) fleet additions, replacements, acquisitions, and up-
grading of vessels for the Ready Reserve Force, mainte-
nance and operations programs in support of the Ready 
Reserve Force, Ready Reserve Force facilities. Ready Re-
serve Force vessel conversions, and other programs in the 
National Defense Reserve Fleet; and 
(B) emergency planning operations. 
STUDENT INCENTIVE PAYMENT AGREEMENTS 
SEC. 2. (a) Section 1304(gKl) of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1295c(gXl)), is amended— 
(1) in subparagraph (B), by striking "and" the second place it 
appears; 
(2) by striking subparagraph (C); and 
(3) by adding at the end the following new subparagraphs: 
103 STAT. 692 
PUBLIC LAW 101-115—OCT. 13, 1989 
"(C) paid by the Secretary to the individual for the first 
complete or partial academic year of attendance in a lump sum 
of $1,200 or in amounts prorated on the basis of actual attend-
ance, and at a time during the second academic year when the 
individual enters into an agreement accepting midshipman and 
enlisted reserve status as required under paragraph (2); and 
"(D) paid by the Secretary, for the academic years after those 
years specified in subparagraph (C), as the Secretary shall 
prescribe while the individual is attending the academy. . 
(b) Section 1304(g)(2) of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1295c(g)(2)), is amended by striking "apply for midshipman" 
and inserting in lieu thereof "accept midshipman and enlisted 
reserve". 
(c) Section 1304(gX3)(D) of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1295c(g)(3)(D)), is amended by striking "to apply for an 
appointment as,". 
(d) Section 1304(g)(4) of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1295c(g)(4)), is amended by striking "has attended a State 
maritime academy for not less than 2 years" and inserting in lieu 
thereof "has accepted the payment described in paragraph (1)(C) of 
this subsection". 
46 use app. 
(e) The amendments made by this section apply to individuals who 
1295c note. 
commence attendance after December 31, 1989, at a State maritime 
academy in accordance with section 1304 of the Merchant Marine 
Act, 1936 (46 App. U.S.C. 1295c). 
COAST GUARD EXAMINATION REQUIREMENT 
SEC. 3. (a) Section 1304(f)(1) of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1295c(f)(l)), is amended— 
(1) by striking "and" at the end of subparagraph (A); 
(2) by striking the period at the end of subparagraph (B) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end the following new subparagraph: 
"(C) agree in writing to require, as a condition for graduation, 
that each individual who is a citizen of the United States and 
who is attending the academy in a merchant marine officer 
preparation program shall pass the examination administered 
by the Coast Guard required for issuance of a license under 
section 7101 of title 46, United States Code.". 
46 use app. 
(b) The requirement set forth in subsection (D(1)(C) of section 1304 
1295c note. 
of the Merchant Marine Act, 1936, as added by subsection (a) of this 
section, shall be a condition to any payment or use of any vessel 
received by a State maritime academy under such section 1304 after 
December 31,1989. 
STUDY 
46 use app. 
SEC. 4. With the funds authorized under this Act, the Secretary of 
1295c note. 
Transportation, after consultation with other agencies in the execu-
tive branch and the State, regional, and Federal maritime acad-
emies, shall submit to the Congress a study within one year to 
determine how currently employed training vessels, United States-
flag commercial vessels, vessels in the Ready Reserve Force, and 
other vessels under the control of the United States Government 
may be used to provide training opportunities for State, regional, 
and Federal maritime academy students that will produce licensed 
graduate officers. The study shall include data on the cost effective-
PUBLIC LAW 101-115—OCT. 13, 1989 
103 STAT. 693 
ness to the United States Government; the cost impact on the 
affected State governments; the safety of any vessels involved; the 
safety of the students; the operational and scheduling impact upon 
the several entities involved; liability exposure; and the impact on 
national security sealift. The Secretary shall not implement any 
ship sharing program until not less than sixty days after the 
submission of the study to the Congress. 
PAYMENTS TO MARITIME ACADEMIES 
SEC. 5. Section 1304(d)(1) of the Merchant Marine Act, 1936 i46 
App. U.S.C. 1295c(d)(l)) is amended— 
(1) by redesignating the existing text as subparagraph (A); 
(2) by striking the second sentence of subparagraph (A) as so 
redesignated; and 
(3) by adding at the end the following new subparagraphs: 
"(B) Subject to subparagraph (C), the annual payment to such 
State maritime academy shall be at least equal to the amount given 
to the academy for its maintenance and support by the State in 
which it is located, and to such regional maritime academy shall be 
at least equal to the amount given the academy by all States and 
territories cooperating to sponsor the academy. 
"(C) The amount under subparagraph (B) may not be more than 
$25,000, except that the amount shall be— 
"(i) $100,000 to such State maritime academy if the academy 
meets the condition set forth in subsection (f)(2); or 
"(ii) $200,000 to such regional maritime academy if the acad-
emy meets the condition set forth in subsection (f)(2),". 
NATIONAL DEFENSE RESERVE FLEET 
Armed Forces. 
SEC. 6. Section 11 of the Merchant Ship Sales Act of 1946 (50 App. 
U.S.C. 1744) is amended to read as follows: 
"NATIONAL DEFENSE RESERVE FLEET 
"SEC. 11. (a) The Secretary of Transportation shall maintain a 
National Defense Reserve Fleet, including any vessel assigned by 
the Secretary to the Ready Reserve Force component of the fleet, 
consisting of those vessels owned or acquired by the United States 
Government that the Secretary of Transportation, after consulta-
tion with the Secretary of the Navy, determines are of value for 
national defense purposes and that the Secretary of Transportation 
decides to place and maintain in the fleet. 
"(b) Except as otherwise provided by law, a vessel in the fleet may 
be used— 
"(1) for an account of an agency of the United States Govern-
ment in a period during which vessels may be requisitioned 
under section 902 of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1242); or 
"(2) on the request of the Secretary of the Navy, and in 
accordance with memoranda of agreement between the Sec-
retary of Transportation and the Secretary of Defense, for— 
"(A) testing for readiness and suitability for mission 
performance; 
"(B) defense sealift functions for which other sealift 
assets are not reasonably available; and 
103 STAT. 694 
PUBLIC LAW 101-115—OCT. 13, 1989 
"(C) support of the deployment of the United States 
armed forces in a military contingency, for military contin-
gency operations, or for civil contingency operations upon 
orders from the National Command Authority; 
"(3) for otherwise lawfully permitted storage or transpor-
tation of non-defense-related cargo as directed by the Secretary 
of Transportation with the concurrence of the Secretary of 
Defense; or 
"(4) for training purposes to the extent authorized by the 
Secretary of Transportation with the concurrence of the Sec-
retary of Defense. 
"(c) The Secretary of Transportation shall not require bid, pay-
ment, performance, payment and performance, or completion bonds 
from contractors for repair, alteration, or maintenance of vessels of 
the National Defense Reserve Fleet unless— 
"(1) required by law; or 
"(2) the Secretary determines, after investigation, that the 
imposition of such bonding requirements would not preclude 
any responsible potential bidder or offeror from competing for 
award of the contract.". 
WAR RISK INSURANCE 
SEC. 7. (a) Section 1202 of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1282), is amended by adding at the end the following new 
subsection: 
"(c) Insurance and reinsurance for vessels may be provided by the 
Secretary under this title only on the condition that such vessels be 
available for the United States in time of war or national emer-
gency.". 
(b) Section 1214 of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1294), is amended by striking "1990" and substituting "1995'^ 
NATIONAL MARITIME ENHANCEMENT INSTITUTES 
46 use app. 
SEC. 8. (a) The Secretary of Transportation may designate Na-
1121-2. 
tional Maritime Enhancement Institutes, 
(b) Activities undertaken by such an Institute may include— 
(1) conducting research concerning methods for improving the 
performance of maritime industries; 
(2) enhancing the competitiveness of domestic maritime in-
dustries in international trade; 
(3) forecasting trends in maritime trade; 
(4) assessing technological advancements; 
(5) developing management initiatives and training; 
(6) analyzing economic and operational impacts of regulatory 
policies and international negotiations or agreements pending 
before international bodies; 
(7) assessing the compatibility of domestic maritime infra-
structure systems with overseas transport systems; 
(8) fostering innovations in maritime transportation pricing; 
and 
(9) improving maritime economics and finance. 
Regulations. 
(c) An institution seeking designation as a National Maritime 
Enhancement Institute shall submit an application under regula-
tions prescribed by the Secretary. 
PUBLIC LAW 101-115—OCT. 13, 1989 
103 STAT. 695 
(d) The Secretary shall designate an Institute under this section 
on the basis of the following criteria: 
(1) the demonstrated research and extension resources avail-
able to the designee for carrying out the activities specified in 
subsection (b); 
(2) the capability of the designee to provide leadership in 
making national and regional contributions to the solution of 
both long-range and immediate problems of the domestic mari-
time industry; 
(3) the existence of an established program of the designee 
encompassing research and training directed to enhancing 
maritime industries; 
(4) the demonstrated ability of the designee to assemble and 
evaluate pertinent information from national and international 
sources and to disseminate results of maritime industry re-
search and educational programs through a continuing edu-
cation program; and 
(5) the qualification of the designee as a nonprofit institution 
of higher learning. 
(e) The Secretary may make research grants, on an equal match-
ing basis, to an institute from amounts appropriated pursuant to 
section 1(2)(B). The aggregate amount of such grants shall not 
exceed $100,000. 
Approved October 13, 1989. 
LEGISLATIVE HISTORY—H.R. 1486: 
HOUSE REPORTS: No. 101-39 (Ck)mm. on Merchant Marine and Fisheries). 
SENATE REPORTS: No. 101-119 (Comm. on Ck)mmerce, Science, and Transporta-
tion). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
May 2, considered and passed House. 
Sept. 21, considered and passed Senate, amended. 
Oct. 2, House concurred in Senate amendments.