SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Cruise Ship Tourism 
Act of 1998''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coastwise trade.--The term ``coastwise trade'' means 
        transportation of a passenger between points in the United 
        States, either directly or by way of a foreign point.
            (2) Cruise ship.--The term ``cruise ship'' means a self-
        propelled ship that--
                    (A) is of at least 9,000 gross tons (as measured 
                under chapter 143 of title 46, United States Code) and 
                has a stateroom or berth capacity of at least 200 
                passengers;
                    (B) provides a full range of accommodations, 
                entertainment, dining, and other services for its 
                passengers; and
                    (C) does not operate as a ferry providing 
                intrastate or interstate commuter service for 
                passengers, vehicles or other cargo for compensation.
            (3) Documented vessel.--The term ``documented vessel'' has 
        the same meaning as that term is defined in section 2101 of 
        title 46, United States Code.
            (4) Person.--The term ``person'' means a corporation, 
        partnership, limited liability company, association, or other 
        entity, the controlling interest of which is owned by citizens 
        of the United States within the meaning of section 2(a) of the 
        Shipping Act, 1916 (46 U.S.C. App. 802(a)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 3. EMPLOYMENT OF FOREIGN-BUILT, U.S.-FLAG CRUISE SHIPS IN THE 
              COASTWISE TRADE.

    (a) In General.--Notwithstanding section 12106(a)(2) of title 46, 
United States Code, section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 883), and section 8 of the Act of June 19, 1886 (46 U.S.C. 
App. 289), the Secretary may issue a certificate of documentation with 
coastwise endorsement for a cruise ship not built in the United States, 
or if rebuilt, not rebuilt in the United States, to a person that is an 
owner or operator of such cruise ship.
    (b) Limitations.--
            (1) A certificate of documentation with coastwise 
        endorsement may be issued pursuant to subsection (a) of this 
        section only for a cruise ship that was built or rebuilt not 
        more than 10 years before the date of enactment of this Act.
            (2) A certificate of documentation with coastwise 
        endorsement may be issued pursuant to subsection (a) of this 
        section only for a cruise ship that--
                    (A) is of at least 20,000 gross tons (as measured 
                under chapter 143 of title 46, United States Code); or
                    (B) has a stateroom or berth capacity of at least 
                800 passengers.
            (3) Certificates of documentation with coastwise 
        endorsement may be issued pursuant to subsection (a) of this 
        section for not more than 3 cruise ships.
            (4) The Secretary may require any additional appropriate 
        conditions the Secretary deems necessary.
    (b) Construction Standards.--
            (1) Certificate of inspection.--A cruise ship issued a 
        certificate of documentation with coastwise endorsement 
        pursuant to subsection (a) of this section shall be eligible 
        for a certificate of inspection (as prescribed by 46 U.S.C. 
        3309) if the Secretary determines that--
                    (A) the cruise ship is classed by and designed in 
                accordance with the rules of a classification society 
                accepted by the Secretary;
                    (B) the cruise ship complies with applicable 
                international agreements and associated guidelines, as 
                determined by the Secretary. Additionally, such cruise 
                ship shall be equipped with automatic sprinkler and 
fire detection systems meeting the requirements of the 1992 Amendments 
to the Safety of Life at Sea Convention of 1974 (SOLAS 74) throughout 
all service and accommodation spaces; and
            (2) Continued eligibility for certificate.--Paragraph (1) 
        of this subsection does not apply to any cruise ship after any 
        date on which the cruise ship fails to comply with the 
        applicable international agreements and associated guidelines 
        described in paragraph (1)(B) of this subsection.
            (3) Reliance on classification society.--The Secretary may 
        rely on a certification from a classification society accepted 
        by the Secretary to establish that the cruise ship is in 
        compliance with the requirements of paragraphs (1) and (2) of 
        this subsection.
    (d) Foreign transfer.--Notwithstanding section 9(c) of the Shipping 
Act, 1916 (46 U.S.C. App. 808), a coastwise qualified United States-
flag, foreign-built cruise ship may be placed under foreign registry 
without the approval of the Secretary any time after its documentation 
under subsection (a)(1) of this section. The Secretary shall revoke the 
coastwise endorsement of any such cruise ship when it is placed under 
foreign registry.

SEC. 4. LIMITED EMPLOYMENT OF FOREIGN-FLAG CRUISE SHIPS IN THE 
              COASTWISE TRADE OF THE UNITED STATES.

    (a) In General.--Notwithstanding section 12106 of title 46, United 
States Code, section 27 of the Merchant Marine Act, 1920 (46 U.S.C. 
App. 883), and section 8 of the Act of June 19, 1886 (46 U.S.C. App. 
289), the Secretary may approve the employment in the coastwise trade 
of the United States of a cruise ship that is not a documented vessel 
(hereinafter referred to as a ``coast-wise qualified foreign-flag 
cruise ship'')
    (b) Limitations.--
            (1) Repositionings. A coastwise qualified foreign-flag 
        cruise ship may be employed in the coastwise trade during each 
        calendar year for not more than 2 voyages, the coastwise trade 
        portion of which does not exceed 2 weeks and includes 
        transportation of passengers for hire--
                    (A) from one coast of the United States through the 
                Panama Canal to another coast of the United States; or
                    (B) along one coast of the United States during a 
                voyage between 2 foreign countries.
            (2) Charters.--
                    (A) 30-day limit.--Not more than 30 coastwise 
                qualified foreign-flag cruise ships may be employed in 
                the coastwise trade for not more than 30 days per 
                cruise ship during a calendar year.
                    (B) Eligible charterers.--A coastwise qualified 
                foreign-flag cruise ship may only be employed in the 
                coastwise trade under subparagraph (A) if such 
                coastwise qualified foreign-flag cruise ship is time-
                chartered to a charterer that--
                            (i) does not own or operate a cruise ship; 
                        or
                            (ii) is not affiliated with an owner or 
                        operator of a cruise ship.
                    (C) Exception to 30-day limit.--A coastwise 
                qualified foreign-flag cruise ship may be authorized to 
                be employed in the coastwise trade for more than 30 
                days during a calendar year if fewer than 30 requests 
                for coastwise trade employment authority under 
                subparagraph (A) are received by the Secretary for a 
                calendar year.

SEC. 5. REPORT.

    Not later than January 1, 2004, the Secretary shall report to the 
Committee on Commerce, Science, and Transportation of the Senate and 
the Committee on Transportation and Infrastructure of the House of 
Representatives on the development of the domestic cruise ship trade 
since the date of enactment of this Act and make recommendations 
concerning the expansion or termination of authorities enacted by this 
Act.
Output: United States Cruise Ship Tourism Act of 1998 - Authorizes the Secretary of Transportation to issue to an owner or operator a certificate of documentation with coastwise endorsement for up to three cruise ships of specified tonnage and passenger capacity which were not built or rebuilt in the United States. 
Makes a cruise ship with such a certificate eligible for a certificate of inspection if the Secretary determines that:  (1) the cruise ship is classed by and designed in accordance with the rules of a classification society accepted by the Secretary; and (2) the cruise ship complies with applicable international agreements and associated guidelines, including being equipped with automatic sprinkler and fire detection systems that meet certain standards. 
Authorizes a coastwise qualified U.S.-flag, foreign-built cruise ship to be placed under foreign registry without the approval of the Secretary any time after its certificate of documentation.  Requires the Secretary to revoke the coastwise endorsement of such cruise ship when it is placed under foreign registry. 
Authorizes the Secretary to approve the employment in the U.S. coastwise trade of a cruise ship that is not a documented vessel (coastwise qualified foreign-flag cruise ship).  Sets forth certain limitations with respect to such cruise ships.  Directs the Secretary to report to specified congressional committees on the development of the domestic cruise ship trade since the enactment of this Act, and make recommendations concerning the expansion or termination of authorities it enacts.