[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1964 Engrossed in House (EH)]

103d CONGRESS

  1st Session

                               H. R. 1964

_______________________________________________________________________

                                 AN ACT

To authorize appropriations for the Maritime Administration for fiscal 
                   year 1994, and for other purposes.
103d CONGRESS
  1st Session
                                H. R. 1964

_______________________________________________________________________

                                 AN ACT


 
To authorize appropriations for the Maritime Administration for fiscal 
                   year 1994, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Maritime Administration 
Authorization Act for Fiscal Year 1994''.

SEC. 2. AUTHORIZATIONS FOR MARITIME ADMINISTRATION.

    (a) Authorizations.--In fiscal year 1994, the following amounts are 
authorized to be appropriated for the Maritime Administration 
(Department of Transportation):
            (1) Any amounts necessary to liquidate obligations under 
        operating-differential subsidy contracts for the fiscal year 
        1994 portion of the total contract authority.
            (2) $41,013,000 for expenses related to manpower, 
        education, and training, including--
                    (A) $28,877,000 for maritime training at the United 
                States Merchant Marine Academy at Kings Point, New 
                York;
                    (B) $10,344,000 for assistance to the State 
                maritime academies (including for reimbursement of fuel 
                costs associated with the operation of training 
                vessels), of which $1,200,000 may be used for training 
                simulators for the State maritime academies; and
                    (C) $1,792,000 for manpower and additional 
                training.
            (3) $30,713,000 for operating programs, including--
                    (A) $19,989,000 for general administration;
                    (B) $8,983,000 for development and use of water 
                transportation systems; and
                    (C) $1,741,000 for research, technology, and 
                analysis.
            (4) $254,355,000 for expenses related to national security 
        support capabilities, including--
                    (A) $6,937,000 for the National Defense Reserve 
                Fleet;
                    (B) $1,418,000 for emergency planning and 
                operations; and
                    (C) $246,000,000 for the Ready Reserve Force, 
                including--
                            (i) $242,000,000 for maintenance and 
                        operations programs in support of the Ready 
                        Reserve Force; and
                            (ii) $4,000,000 for Ready Reserve Force 
                        facilities.
            (5) $4,000,000 to pay administrative costs related to new 
        loan guarantee commitments under title XI of the Merchant 
        Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), relating to 
        Federal ship mortgage insurance.
            (6) $50,000,000 for costs (as that term is defined in 
        section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a)) of new loan guarantee commitments under title XI of the 
        Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.).
            (7) $242,000 for assistance to the Massachusetts Center for 
        Marine Environmental Protection located at the Massachusetts 
        Maritime Academy.
    (b) Use of Proceeds of Sales.--Notwithstanding any other provision 
of law, the Secretary of Transportation may use proceeds derived from 
the sale or disposal of National Defense Reserve Fleet vessels that are 
currently collected and retained by the Maritime Administration for 
facility and ship maintenance, modernization and repair, acquisition of 
equipment, training simulators, and fuel costs necessary to maintain 
training at the United States Merchant Marine Academy and the State 
maritime academies.

SEC. 3. NATIONAL SHIPBUILDING ENHANCEMENT INSTITUTES.

    (a) Designation by Secretary of Transportation.--The Secretary of 
Transportation may designate National Shipbuilding Enhancement 
Institutes.
    (b) Activities.--Activities undertaken by such an Institute may 
include--
            (1) vessel construction and repair technology development 
        with an emphasis on improving the productivity of United States 
        shipyards through innovative design, engineering, or 
        operations;
            (2) enhancing the international competitiveness of domestic 
        shipyards in ship construction and repair;
            (3) documenting and forecasting international and domestic 
        trends in ship construction and repair;
            (4) fostering innovations in the domestic shipbuilding 
        marketing system; and
            (5) providing technical support on shipbuilding practices.
    (c) Submission of Applications.--An institution seeking designation 
as a National Shipbuilding Enhancement Institute shall submit an 
application under regulations prescribed by the Secretary.
    (d) Designation Criteria.--The Secretary shall designate an 
Institute under this section on the basis of the following criteria:
            (1) The research and extension resources available to the 
        designee for carrying out the activities specified in 
        subsection (b).
            (2) The existence of an established program of the designee 
        encompassing research, education, and training directed to 
        enhancing shipbuilding industries.
            (3) The ability of the designee to assemble and evaluate 
        pertinent information from national and international sources 
        and to disseminate results of shipbuilding industry research 
        and educational programs.
            (4) The qualification of the designee as a nonprofit 
        institution of maritime or higher education.
    (e) Grants.--The Secretary may make an award, on a matching basis, 
to any institute designated under subsection (a), from amounts 
appropriated.

SEC. 4. REIMBURSEMENT OF CERTAIN FEES BY STATE MARITIME ACADEMIES.

    (a) Condition of Assistance.--Section 1304(d) of the Merchant 
Marine Act, 1936 (46 App. U.S.C. 1295c(d)) is amended by adding at the 
end the following:
    ``(3)(A) Subject to subparagraph (B), an agreement under this 
subsection shall require a State maritime academy to reimburse each 
qualified individual for any fee or charge for which the individual is 
liable to the United States for--
            ``(i) the issuance of an entry level license under chapter 
        71 of title 46, United States Code;
            ``(ii) the first issuance of a merchant mariner's document 
        under chapter 73 of that title;
            ``(iii) an evaluation or examination for such a license or 
        merchant mariner's document conducted before the end of the 
        period described in subparagraph (D)(ii); or
            ``(iv) an application for such a license, merchant 
        mariner's document, evaluation, or examination.
    ``(B) A State maritime academy shall reimburse qualified 
individuals under subparagraph (A) to the extent amounts are available 
under subparagraph (C).
    ``(C) In addition to annual payments under paragraph (1)(A) and 
subject to the availability of appropriations, the Secretary shall 
annually pay to each State maritime academy that enters into an 
agreement under paragraph (1) amounts to reimburse qualified 
individuals under subparagraph (A).
    ``(D) In this paragraph, the term `qualified individual' means an 
individual who--
            ``(i) is attending or is a graduate of a State maritime 
        academy;
            ``(ii) fulfills the requirements for a license or merchant 
        mariner's document described in subparagraph (A) not later than 
        three months after the date the individual graduates from a 
        State maritime academy; and
            ``(iii) is liable for a fee or charge described in 
        subparagraph (A).''.
    (b) Effective Date.--The amendment made by subsection (a) is 
effective October 1, 1993.
    (c) Amendment of Existing Agreements.--As soon as practicable after 
the date of the enactment of this Act, the Secretary of Transportation 
shall amend agreements under section 1304(d) of the Merchant Marine 
Act, 1936 (46 App. U.S.C. 1295c(d)) pursuant to the amendment made by 
subsection (a).
    (d) Additional Appropriations Authorized.--In addition to amounts 
authorized to be appropriated for assistance to State maritime 
academies, there is authorized to be appropriated $300,000 for fiscal 
year 1994 to reimburse qualified individuals pursuant to the amendment 
made by subsection (a).

SEC. 5. NATIONAL MARITIME ENHANCEMENT INSTITUTES.

    Section 8(e) of the Act of October 13, 1989 (46 App. U.S.C. 1121-
2(e)), is amended to read as follows:
    ``(e) The Secretary may make awards on an equal or partial matching 
basis to an Institute designated under subsection (a) from amounts 
appropriated.''.

SEC. 6. TERMINATION OF CONDITION FOR STATE MARITIME ACADEMY ASSISTANCE.

    (a) In General.--Section 1304(f)(1) of the Merchant Marine Act, 
1936 (46 App. U.S.C. 1295c(f)(1)) is amended to read as if section 3 of 
the Act of October 13, 1989 (Public Law 101-115; 103 Stat. 692), had 
not been enacted.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective October 13, 1989.
    (c) Clerical Amendments.--
            (1) Section 3 of the Act of October 13, 1989 (Public Law 
        101-115; 103 Stat. 692), is repealed.
            (2) Section 706 of the Federal Maritime Commission 
        Authorization Act of 1990 (46 App. U.S.C. 1295c note) is 
        repealed.

SEC. 7. MAINTENANCE CONTRACTS FOR NATIONAL DEFENSE RESERVE FLEET 
              VESSELS.

    The Secretary of Transportation may enter into a contract for the 
maintenance of the National Defense Reserve Fleet, including the Ready 
Reserve Force, only for--
            (1) the repair, activation, operation, berthing, towing, or 
        lay-up of a vessel;
            (2) a vessel used by a State maritime academy; or
            (3) obtaining maintenance technical services when--
                    (A) the technical expertise required for that 
                service is beyond the capabilities of the Fleet staff 
                or when the Fleet has insufficient personnel resources 
                to adequately maintain the Fleet; and
                    (B) the contract does not result in reducing 
                employment at the Fleet site.

SEC. 8. MAINTENANCE OF READY RESERVE FORCE VESSELS IN REDUCED OPERATING 
              STATUS.

    The Secretary shall, during fiscal year 1994, maintain in a reduced 
operating status--
            (1) at least 29 vessels in the Ready Reserve Force 
        component of the National Defense Reserve Fleet, or
            (2) a lesser number of those vessels that the Secretary 
        determines to be practicable based on the appropriations 
        available for that fiscal year for maintenance of vessels in 
        that Force.

SEC. 9. VESSEL REPAIR AND MAINTENANCE PILOT PROGRAM.

    (a) In General.--The Secretary of Transportation shall conduct a 
pilot program to evaluate the feasibility of using long-term contracts 
for the maintenance and repair of outported vessels in the Ready 
Reserve Force to enhance the readiness of those vessels. Under the 
pilot program, the Secretary, subject to the availability of 
appropriations and within 6 months after the date of the enactment of 
this Act, shall award 9 contracts for this purpose.
    (b) Use of Various Contracting Arrangements.--In conducting a pilot 
program under this section, the Secretary of Transportation shall use 
contracting arrangements similar to those used by the Department of 
Defense for procuring maintenance and repair of its vessels.
    (c) Contract Requirements.--Each contract with a shipyard under 
this section shall--
            (1) subject to subsection (d), provide for the procurement 
        from the shipyard of all repair and maintenance (including 
        activation, deactivation, and drydocking) for one vessel in the 
        Ready Reserve Force that is outported in the geographical 
        vicinity of the shipyard; and
            (2) be effective for 3 years.
    (d) Limitation on Work Under Contracts.--A contract under this 
section may not provide for the procurement of operation or manning for 
a vessel that may be procured under another contract for the vessel to 
which section 11(d)(2) of the Merchant Ship Sales Act of 1946 (50 App. 
U.S.C. 1744(d)(2)) applies.
    (e) Geographic Distribution.--The Secretary shall seek to award 
contracts under this section to shipyards that are distributed 
throughout the United States.
    (f) Reports.--The Secretary shall submit to the Congress--
            (1) an interim report on the effectiveness of each contract 
        under this section in providing for economic and efficient 
        repair and maintenance of the vessel covered by the contract, 
        by not later than 20 months after the date of the enactment of 
        this Act; and
            (2) a final report on that effectiveness, by not later than 
        6 months after the termination of all contracts awarded 
        pursuant to this section.

SEC. 10. GEOGRAPHIC DISTRIBUTION OF READY RESERVE FORCE VESSELS.

    (a) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary of Transportation shall submit a report to 
the Congress which describes where vessels in the Ready Reserve Force 
will be located in fiscal year 1994.
    (b) Consideration of Ports in Locating Vessels.--In selecting 
locations where Ready Reserve Force vessels will be outported, the 
Secretary of Transportation shall consider ports that have historically 
been involved in outporting of those vessels.

SEC. 11. MARITIME POLICY REPORT.

    (a) Report.--The Secretary of Transportation shall transmit to the 
Congress a report setting forth the Department of Transportation's 
policies for the 5-year period beginning October 1, 1993, with respect 
to--
            (1) fostering and maintaining a United States merchant 
        marine capable of meeting economic and national security 
        requirements;
            (2) improving the vitality and competitiveness of the 
        United States merchant marine and the maritime industrial base, 
        including ship repairers, shipbuilders, ship manning, ship 
        operators, and ship suppliers;
            (3) reversing the precipitous decrease in the number of 
        ships in the United States-flag fleet and the Nation's shipyard 
        and repair capability;
            (4) stabilizing and eventually increasing the number of 
        mariners available to crew United States merchant vessels;
            (5) achieving adequate manning of merchant vessels for 
        national security needs during a mobilization;
            (6) ensuring that sufficient civil maritime resources will 
        be available to meet defense deployment and essential economic 
        requirements in support of our national security strategy;
            (7) ensuring that the United States maintains the 
        capability to respond unilaterally to security threats in 
        geographic areas not covered by alliance commitments and 
        otherwise meets sealift requirements in the event of crisis or 
        war;
            (8) ensuring that international agreements and practices do 
        not place United States maritime industries at an unfair 
        competitive disadvantage in world markets;
            (9) ensuring that Federal agencies promote, through 
        efficient application of laws and regulations, the readiness of 
        the United States merchant marine and supporting industries; 
        and
            (10) any other relevant maritime policies.
    (b) Date of Transmittal.--The report required under subsection (a) 
shall be transmitted along with the President's budget submission, 
pursuant to section 1105 of title 31, United States Code, for fiscal 
year 1995.

SEC. 12. PILOT PROGRAM ON SEALIFT TRAINING.

    The Secretary of Transportation shall establish a 3-year pilot 
program for Sealift Training at the Massachusetts Maritime Academy.

SEC. 13. SPECIAL RULE FOR VESSEL CONSTRUCTION GUARANTEES.

    (a) In General.--Notwithstanding any provision of title XI of the 
Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.), in 
guaranteeing an obligation under that title with amounts appropriated 
for fiscal year 1994, the Secretary of Transportation shall guarantee 
an amount of principal or interest (or both) that is equal to 87\1/2\ 
percent of the actual cost or depreciated actual cost (as those terms 
are defined in that title) of the vessel or facility that is used as 
security for the guarantee.
    (b) Exception.--Subsection (a) shall not apply to the guarantee of 
an obligation if the Secretary determines that--
            (1) special economic circumstances exist; and
            (2) there is good cause for guaranteeing a lesser 
        percentage of principal or interest (or both) authorized by 
        that title.

SEC. 14. WAIVERS FOR CERTAIN VESSELS.

    (a) In General.--Notwithstanding sections 12106, 12107, and 12108 
of title 46, United States Code, and section 27 of the Merchant Marine 
Act, 1920 (46 App. U.S.C. 883), the Secretary of Transportation may 
issue a certificate of documentation for the following vessels:
            (1) AFTERSAIL (United States official number 689427).
            (2) ALEXANDRIA (United States official number 586490).
            (3) ARIEL (United States official number 954762).
            (4) BRANDARIS (Rhode Island registration number 2848N; 
        former United States official number 263174).
            (5) COMPASS ROSE (United States official number 695865).
            (6) DIXIE (United States official number 513159).
            (7) GRAY (Connecticut State vessel number CT5944AJ).
            (8) GYPSY COWBOY (United States official number 550771).
            (9) IMPATIENT LADY (United States official number 553952).
            (10) ISLAND GIRL (United States official number 674840).
            (11) LAURISA (United States official number 924052).
            (12) MARINER (United States official number 285452).
            (13) MOONSHINE (United States official number 974226).
            (14) MYSTIQUE (United States official number 921194).
            (15) NORTHERN LIGHT (United States official number 237510).
            (16) PLAY PRETTY (United States official number 975346).
            (17) PRINCE OF TIDES II (United States official number 
        903858).
            (18) SHILOH (United States official number 902675).
            (19) SWELL DANCER (United States official number 622046).
            (20) TESSA (United States official number 675130).
            (21) TOP DUCK (United States official number 990973).

SEC. 15. PROHIBITION ON TRANSFER.

    Notwithstanding any other provision of law, the Secretary of 
Transportation may not approve the transfer of a United States-
documented oceangoing merchant vessel that is of 3,000 gross tons or 
more (or that type of a vessel the last documentation of which was 
under the laws of the United States) to a foreign registry under 
section 9(c) of the Shipping Act, 1916 (46 App. U.S.C. 808) through 
December 31, 1994.

SEC. 16. AMENDMENTS RELATING TO COAST GUARD MARITIME ACADEMY RESERVE 
              TRAINING PROGRAM.

    (a) Naval Reserve Status.--Section 1304(g)(2) of the Merchant 
Marine Act, 1936 (46 App. U.S.C. 1304(g)(2)) is amended by inserting 
before the period the following: ``, unless the individual participates 
in the Coast Guard Maritime Academy Reserve Training Program''.
    (b) Reserve Service Obligation.--Section 1304(g)(3)(D) of the 
Merchant Marine Act, 1936 (46 App. U.S.C. 1304(g)(3)(D)) is amended 
by--
            (1) inserting ``(i) after ``commissioned officer'';
            (2) inserting ``(except as provided in clause (ii))'' after 
        ``the United States Coast Guard Reserve''; and
            (3) inserting before the semicolon at the end the 
        following: ``; or (ii) in the United States Coast Guard Reserve 
        for such period following that date of graduation as may be 
        established by the Secretary of the department in which the 
        Coast Guard is operating, in the case of an individual that 
        participates in the Coast Guard Maritime Academy Reserve 
        Training Program;''.
    (c) Penalties for Failure to Fulfill Incentive Payment Agreement.--
Section 1304(g) of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1304(g)) is amended--
            (1) in paragraph (4) by inserting ``, except as provided in 
        paragraph (8),'' after ``such individual may'';
            (2) in paragraph (5) by inserting ``, except as provided in 
        paragraph (8),'' after ``such individual may''; and
            (3) by adding at the end the following:
    ``(8)(A) Paragraphs (4) and (5) shall not apply to a failure to 
fulfill a part of an agreement, by an individual who--
            ``(i) is enlisted in the United States Coast Guard Reserve; 
        and
            ``(ii) participates in the Coast Guard Maritime Academy 
        Reserve Training Program.
    ``(B) If the Secretary determines that an individual described in 
subparagraph (A) has failed to fulfill any part of the agreement 
(required by paragraph (1)) described in paragraph (3), the individual 
may be ordered to active duty in the Coast Guard to serve for a period 
of time determined by the Commandant of the Coast Guard, not to exceed 
2 years. In cases of hardship as determined by the Secretary, the 
Secretary may waive this subparagraph.''.
    (d) Coast Guard Maritime Academy Reserve Training Program 
Defined.--Section 1304(g) of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1304(g)), as amended by this section, is further amended by 
adding at the end the following:
    ``(9) In this subsection, the term `Coast Guard Maritime Academy 
Reserve Training Program' means that program established by the 
Commandant of the Coast Guard, as in effect on the date of the 
enactment of the Maritime Administration Authorization Act for Fiscal 
Year 1994.''.

SEC. 17. COMPLIANCE WITH BUY AMERICAN ACT

    No funds appropriated pursuant to this Act may be expended by an 
entity unless the entity agrees that in expending the assistance the 
entity will comply with sections 2 through 4 of the Act of March 3, 
1933 (41 U.S.C. 10a-10c, popularly known as the ``Buy American Act'').

SEC. 18. SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE

    (a) Purchase of American-Made Equipment and Products.--In the case 
of any equipment or products that may be authorized to be purchased 
with financial assistance provided under this Act, it is the sense of 
the Congress that entities receiving such assistance should, in 
expending the assistance, purchase only American-made equipment and 
products.
    (b) Notice to Recipients of Assistance.--In providing financial 
assistance under this Act, the head of each Federal agency shall 
provide to each recipient of the assistance a notice describing the 
statement made in subsection (a) by the Congress.

SEC. 19. PROHIBITION OF CONTRACTS.

    If it has been finally determined by a court or Federal agency that 
any person intentionally affixed a label bearing a ``Made in America'' 
inscription, or any inscription with the same meaning, to any product 
sold in or shipped to the United States that is not made in the United 
States, such person shall be ineligible to receive any contract or 
subcontract made with funds provided pursuant to this Act, pursuant to 
the debarment, suspension, and ineligibility procedures described in 
section 9.400 through 9.409 of title 48, Code of Federal Regulations.

            Passed the House of Representatives July 29, 1993.

            Attest:






                                                                 Clerk.

HR 1964 EH----2