An Act to require operators of ocean cruises by water between the United States, its possessions and territories, and foreign countries to file evidence of financial security and other information
PL 89-777 (H.R.10327), enacted 11/06/1966

1356 
PUBLIC LAW 89-777-NOV. 6, 1966 
[80 
STAT. 
November 6, 1966 
[H. R. 10327] 
Public Law 89-777 
AN ACT 
.;-,-. w.-^^ 
To require evidence of adequate financial responsibility to pay judgments for per-
sonal injury or death, or to repay fares in the event of nonperformance of voy-
ages, to establish minimum standards for passenger vessels and to require 
disclosure of construction details on passenger vessels, and for other purposes. 
Vessels. 
Safety stand-
ards. 
Promulgation 
of regulations. 
16 UST 185. 
Death or injury 
to passengers. 
Financial re-
sponsibility of • 
owners, etc. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 4400 of 
the Revised Statutes, as amended (46 U.S.C. 362) is hereby further 
amended by designating the existing section as subsection (a) and by 
adding new subsections (b) and (c) as follows: 
" (b) Owners, operators, agents, or any persons selling passage on a 
foreign or domestic passenger vessel of one hundred gross tons or over 
having berth or stateroom accommodations for fifty or more pas-
sengers and embarking passengers at United States ports for a coast-
wise or an international voyage shall notify each prospective pas-
senger of the safety standards with which the vessel complies or does 
not comply in a manner prescribed by regulations promulgated in 
accordance with this subsection. In addition, all promotional litera-
ture or advertising in or over any medium of communication within 
the United States offering passage or soliciting passengers for ocean 
voyages anywhere in the world shall include similar information as a 
part of the advertisement or description of the voyage in a manner 
prescribed by the same regulations. 
The Secretary of the Depart-
ment in which the Coast Guard is operating is authorized to promul-
gate regulations to implement the provisions of this subsection. 
For 
each violation of regulations so promulgated, the owner, operator, 
agent, or other person involved shall be subject to a civil penalty of 
not more than $10,000 for which the vessel on which passage is to be 
or is sold shall be liable. If tickets are sold, the owner, operator, agent, 
or any other person involved in each violation of regulations so pro-
mulgated shall also be subject to a civil penalty of $500 for each ticket 
sold for which the vessel on which passage is sold shall be liable. 
"(c) Notwithstanding the provisions of subsection (a) of this sec-
tion, any foreign or domestic vessel of over 100 gross tons having berth 
or stateroom accommodations for 50 or more passengers, shall not 
depart a ITnited States port with passengers who are LTnited States 
nationals, and who embarked at that port, if the Secretary of the 
Department in which the Coast Guard is operating finds that such 
vessel does not comply with the standards set forth in the Inter-
national Convention for the Safety of Life at Sea, 1960, as modified by 
the amendments proposed by the thirteenth session of the Maritime 
Safety Committee of the Inter-governmental Maritime Consultative 
Organization contained in Annexes I through IV of the Note Verbale 
of the Secretary General of the Organization dated 17 May 1966, No. 
Al/C/3.07 (NV.l)." 
SEC. 2. (a) Each owner or charterer of an American or foreign 
vessel having berth or stateroom accommodations for fifty or more 
passengers, and embarking passengers at United States ports, shall 
establish, under regulations prescribed by the Federal Maritime Com-
mission, his financial responsibility to meet any liability he may incur 
for death or injury to passengers or other persons on voyages to or 
from United States ports, in an amount based upon the number of pas-
senger accommodations aboard the vessel, calculated as follows: 
$20,000 for each passenger accommodation up to and including 
five hundred; plus 
$15,000 for each additional passenger accommodation between 
five hundred and one and one thousand; plus 
80 STAT.] 
PUBLIC LAW 89-777-NOV. 6, 1966 
1357 
$10,000 for each additional passenger accommodation between 
one thousand and one and one thousand five hundred; plus 
$5,000 for each passenger accommodation in excess of one thou-
sand five hundred: 
Provided^ however^ That if such owner or charterer is operating more 
than one vessel subject to this section, the foregoing amount shall be 
based upon the number of passenger accommodations on the vessel 
being so operated which has the largest number of passenger accom-
modations. This amount shall be available to pay any judgment for 
damages, whether in amount less than or more than $20,000 for death 
or injury occurring on such voyages to any passenger or other person. 
Such financial responsibility may be established by any one of, or a 
combination of, the following methods which is acceptable to the 
Commission: (1) policies of insurance, (2) surety bonds, (3) qualifica-
(ions as a self-insurer, or (4) other evidence of financial responsibility. 
(b) If a bond is filed with the Commission, then such bond shall be 
'^^^^"^ °^ ^°"'^^-
issued by a bonding company authorized to do business in the United 
States or any State thereof or the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands, or any territory or posses-
sion of the United States. 
(c) Any person who shall violate this section shall be subject to a 
Penalties. 
civil penalty of not more than $5,000 in addition to a civil penalty of 
$200 for each passage sold, such penalties to be assessed by the Federal 
Maritime Commission. These penalties may be remitted or mitigated 
by the Federal Maritime Commission upon such terms as they in their 
discretion shall deem proper. 
(d) The Federal Maritime Commission is authorized to prescribe 
such regulations as may be necessary to carry out the provisions of this 
section. The provisions of the Shipping Act, 1916, shall apply with 
^^ use 342' 
respect to proceedings conducted by the Commission under this sec-
tion. 
(e) The collector of customs at the port or place of departure from 
Refusal o
f 
the United States of any vessel described in subsection (a) of this sec- "^ 
tion shall refuse the clearance required by section 4197 of the Revised 
Statutes (46 U.S.C. 91) to any such vessel which does not have evi-
dence furnished by the Federal Maritime Commission that the provi-
sions of this section have been complied with. 
SEC. 3. (a) No person in the United States shall arrange, offer, ^f^JaTsportaUon! 
advertise, or provide passage on a vessel having berth or stateroom 
indemnification 
accommodations for fifty or more passengers and w^hich is to embark °^ passengers. 
passengers at United States ports without there first having been 
filed w'ith the Federal Maritime Commission such information as the 
Commission may deem necessary to establish the financial respon-
sibility of the person arranging, offering, advertising, or providing 
such transportation, or in lieu thereof a copy of a bond or other 
security, in such form as the Commission, by rule or regulation, may 
require and accept, for indemnification of passengers for nonper-
formance of the transportation. 
(b) If a bond is filed with the Commission, such bond shall be 
issued by a bonding company autht)rized to do business in the United 
States or any State thereof, or the District of Columbia, the Common-
wealth of Puerto Rico, the Virgin Islands or any territory or posses-
sion of the United States and such bond or other security shall be 
in an amount paid equal to the estimated total revenue for the particu-
lar transportation. 
(c) Any person who shall violate this section shall be subject to 
Penalties. 
a civil penalty of not more than $5,000 in addition to a civil penalty 
of $200 for each passage sold, such penalties to be assessed by the 
65-300 0-67—88 
1358 
PUBLIC LAW 89-778-NOV. 6, 1966 
[80 STAT. 
39 Stat. 728. 
46 u s e 842. 
U.S. passenger 
vessels. 
Construction 
with fire-retardant 
material. 
Effective dates. 
Federal Maritime Commission. These penalties may be remitted or 
mitigated by the Federal Maritime Commission upon such terms as 
they in their discretion sliall deem proper, 
(d) The Federal Maritime Commission is authorized to prescribe 
such regulations as may be necessary to carry out the provisions of this 
section. The provisions of the Shipping Act, 1916, shall apply with 
respect to proceedings conducted by the Commission under this section. 
(e) The collector of customs at the port or place of departure from 
the United States of any vessel described in subsection (a) of this 
section shall refuse the clearance required by section 4197 of the Ke-
vised Statutes (46 U.S.C. 91) to any such vessel which does not have 
evidence furnished by tlie Federal Maritime Commission that the 
provisions of this section have been complied with. 
SEC. 4. Subsection (b) of section 5 of the Act of May 27, 1936 (49 
Stat. 1384; 46 U.S.C. 369), is amended by adding at the end thereof 
the following: "After November 1, 1968, no passenger vessel of the 
United States of one hundred gross tons or over, having berth or 
stateroom accommodations for fifty or more passengers, shall be 
granted a certificate of inspection by the Coast Guard unless the vessel 
is constructed of fire-retai'dant material. 
The structural fire protec-
tion provided on these vessels shall conform to the requirements set 
forth in regulations for a vessel contracted for on or after May 28, 
1936." 
SEC. 5. The new subsection (b) of section 4400 of the Revised 
Statutes and section 3 of this Act shall become effective one hundred 
and eighty days after enactment of this Act. The new subsection (c) 
of section 4400 of the Eevised Statutes shall become effective on the 
date Avhen the recommended amendments to the International Con-
vention for the Safety of Life at Sea, 1960, come into force, but in 
any case not later than November 2, 1968. Section 2 of this Act shall 
become effective nine months after enactment of this Act. 
Section 
4 of this Act shall become effective on November 2, 1968, 
Approved November 6, 1966. 
Public Law 89-778 
November 6, 1966 
A N 
A C T 
[S.3391] 
j , ^ amend the Shippiiijr Act, 1916, as amended, to authorize exemption from the 
provisions of the Act. 
Shipping Act, 
1916, amendment. 
39 Stat. 728. 
47 Stat. 1425. 
46 u s e 848. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America In Congress assembled^ That the Shipping 
Act, 1916 (46 U.S.C. 801 et seq.), is amended by adding thereto the 
following new section: 
"SEC. 35. The Federal Maritime Commission, upon application or 
on its own motion, may by order or rule exempt for the future any 
class of agreements between persons subject to this Act or any specified 
activity of such persons from any requirement of the Shipping Act, 
1916, or Intercoastal Shipping Act, 1933, where it finds that such 
exemption will not substantially impair effective regulation by the 
Federal Maritime (Commission, be unjustly discriminatory, or be 
detrimental to commerce. 
"The Commission may attach conditions to any such exemptions and 
may, by order, revoke any such exemption. 
"No order or rule of exemption or revocation of exemption shall be 
issued unless opportunity for hearing has been afforded interested 
persons," 
Approved November 6, 1966.