SECTION 1. FINDINGS.

    Congress finds the following:
            (1) It is in the interest of the United States to maximize 
        economic return from the growing trade in cruise ship sailings 
        to and from Alaska by encouraging the use of United States 
        berthing and repair facilities, labor, supplies, and other 
        services, as well as the growth of new enterprises such as the 
        carriage of passengers on luxury cruises between ports in 
        Alaska.
            (2) In promoting additional economic benefits to the United 
        States from the cruise ship industry, there is a need to ensure 
        that existing employment and economic activity associated with 
        the Alaska Marine Highway System, United States-flag tour boats 
        operating from Alaska ports, and similar efforts are protected 
        from adverse impacts.
            (3) Cruise ship sailings to Alaska comprise a vital and 
        growing segment of the United States travel industry. The 
        number of passengers entering or leaving Alaska via cruise ship 
        increased by 14 percent in the last two years alone, and is 
        expected to continue increasing at a similar or higher rate.
            (4) No United States-flag cruise ships are presently 
        available to enter the Alaska trade. Thus, all cruise ships 
        carrying passengers to and from Alaska destinations are 
        foreign-flag vessels which are precluded, under current law, 
        from carrying passengers from other United States ports to 
        ports in Alaska, and from carrying passengers between ports in 
        Alaska.
            (5) The City of Vancouver, British Columbia receives 
        substantial economic benefit through providing services to 
        cruise ships in the Alaska trade, including direct and indirect 
        employment of 2,435 persons in 1992, and direct and indirect 
        payments for goods and services of $119,700,000.
            (6) The transfer of cruise ship-based economic activity 
        from Vancouver, British Columbia to United States ports could, 
        at 1992 spending levels, yield additional Federal Government 
        revenues of $97,600,000 per annum, and additional State and 
        local government revenues of $29,700,000.

SEC. 2. FOREIGN FLAG CRUISE VESSELS.

    (a) Waiver.--Notwithstanding provisions of section 8 of the Act of 
June 19, 1886 (46 U.S.C. 289), or any other provision of law, 
passengers may be transported in foreign-flag cruise vessels between 
ports in Alaska and between ports in Alaska and other United States 
ports, except as otherwise provided by this section.
    (b) Coastwise Trade.--Upon a showing satisfactory to the Secretary 
of Transportation, by the owner or charterer of a United States cruise 
vessel, that service aboard such vessel qualified to engage in the 
coastwise trade is being offered or advertised pursuant to a 
Certificate of Financial Responsibility for Indemnification of 
Passengers for Nonperformance of Transportation (46 App. U.S.C. 817e) 
from the Federal Maritime Commission for service in the coastwise trade 
between ports in Alaska or between ports in Alaska and other ports in 
the United States, or both, the Secretary shall notify the owner or 
operator of one or more foreign-flag cruise vessels transporting 
passengers under authority of this section, if any, that he shall, 
within one year from the date of notification, terminate such service. 
Coastwise privileges granted to any owner or operator of a foreign-flag 
cruise vessel under this section shall expire on the 365th day 
following receipt of the Secretary's notification.
    (c) Notification.--Notifications issued by the Secretary under 
subsection (b) of this section shall be issued to the owners or 
operators of foreign-flag cruise vessels--
            (1) in the reverse of the order in which foreign-flag 
        cruise vessels  entered the coastwise service under this 
        section determined by the date of the vessels' first coastwise 
        sailing; and
            (2) in the minimum number as to ensure that the passenger-
        carrying capacity thereby removed from coastwise service 
        exceeds the passenger-carrying capacity of the United States 
        cruise vessel which is entering the service.
    (d) Termination.--If, at the expiration of the 365-day period 
specified in subsection (b) of this section, the United States cruise 
vessel that has offered service has not entered the coastwise passenger 
trade between ports in Alaska or between ports in Alaska and other 
ports in the United States, then the termination of service required by 
subsection (b) shall not take effect until 90 days following the entry 
into trade by the United States vessel.
    (e) Definitions.--For the purposes of this section, the term--
            (1) ``cruise vessel'' means a vessel of greater than 5,000 
        deadweight tons which provides a full range of luxury 
        entertainment, personal care and food services for its 
        passengers; and
            (2) ``foreign-flag cruise vessels'' does not apply to 
        vessels which regularly carry for hire both passengers and 
        vehicles or other cargo.
    (f) Disclaimer.--Nothing in this Act shall be construed as 
affecting or otherwise modifying the authority contained in the Act of 
June 30, 1961 (46 U.S.C. 289b) authorizing the transportation of 
passengers and merchandise in Canadian vessels between ports in Alaska 
and the United States.
Output: Prescribes guidelines under which passengers may be transported in foreign-flag cruise vessels between ports in Alaska and between ports in Alaska and other U.S. ports.