[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4003 Reported in House (RH)]

                                                 Union Calendar No. 344

103d CONGRESS

  2d Session

                               H. R. 4003

                  [Report No. 103-544, Parts I and II]

_______________________________________________________________________

                                 A BILL

 To authorize appropriations for fiscal year 1995 for certain maritime 
  programs of the Department of Transportation, to amend the Merchant 
  Marine Act, 1936, as amended, to revitalize the United States-flag 
                merchant marine, and for other purposes.

_______________________________________________________________________

                             July 29, 1994

   Reported from the Committee on Ways and Means with an amendment, 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
                                                 Union Calendar No. 344
103d CONGRESS
  2d Session
                                H. R. 4003

                  [Report No. 103-544, Parts I and II]

 To authorize appropriations for fiscal year 1995 for certain maritime 
  programs of the Department of Transportation, to amend the Merchant 
  Marine Act, 1936, as amended, to revitalize the United States-flag 
                merchant marine, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 10, 1994

  Mr. Studds (for himself, Mr. Fields of Texas, Mr. Lipinski, and Mr. 
   Manton) (all by request) introduced the following bill; which was 
       referred to the Committee on Merchant Marine and Fisheries

                             June 13, 1994

 Reported with an amendment, referred to the Committee on the Ways and 
      Means for a period ending not later than July 15, 1994, for 
consideration of such provisions contained in the bill and amendment as 
fall within the jurisdiction of that committee pursuant to clause 1(v), 
                                 rule X
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             July 12, 1994

 Referral to the Committee on the Ways and Means extended for a period 
                  ending not later than July 22, 1994

                             July 21, 1994

 Referral to the Committee on the Ways and Means extended for a period 
                  ending not later than July 28, 1994

                             July 28, 1994

 Referral to the Committee on the Ways and Means extended for a period 
                  ending not later than July 29, 1994

                             July 29, 1994

                     Additional sponsor: Mr. Darden

                             July 29, 1994

 Reported from the Committee on the Ways and Means with an amendment, 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
[Omit the part in black brackets and insert the part in boldface roman]
 [For text of introduced bill, see copy of bill as introduced on March 
                               10, 1994]

_______________________________________________________________________

                                 A BILL


 
 To authorize appropriations for fiscal year 1995 for certain maritime 
  programs of the Department of Transportation, to amend the Merchant 
  Marine Act, 1936, as amended, to revitalize the United States-flag 
                merchant marine, 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 and 
Promotional Reform Act of 1994''.

                    TITLE I--MARITIME ADMINISTRATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Maritime Administration 
Authorization Act for Fiscal Year 1995''.

SEC. 102. AUTHORIZATIONS FOR THE MARITIME ADMINISTRATION.

    (a) Authorizations.--For fiscal year 1995, there are authorized to 
be appropriated to the Secretary of Transportation for use for the 
Maritime Administration the following amounts:
            (1) Any amounts necessary to liquidate obligations under 
        operating-differential subsidy contracts for the fiscal year 
        1995 portion of the total contract authority.
            (2) $43,076,000 for expenses related to manpower, 
        education, and training, including--
                    (A) $30,701,000 for maritime training at the United 
                States Merchant Marine Academy at Kings Point, New 
                York;
                    (B) $10,525,000 for assistance to the State 
                maritime academies (including 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) $1,850,000 for manpower and additional 
                training.
            (3) $35,124,000 for operating programs, including--
                    (A) $20,866,000 for general administration;
                    (B) $9,216,000 for development and use of water 
                transportation systems;
                    (C) $3,627,000 for research, technology, and 
                analysis; and
                    (D) $1,415,000 for national security support 
                capabilities.
            (4)(A) $248,800,000 for the National Defense Reserve Fleet 
        (including the Ready Reserve Force component of that fleet), 
        including--
                    (i) $228,448,000 for maintenance and operations in 
                support of the Ready Reserve Force;
                    (ii) $6,352,000 for maintenance and operations in 
                support of the National Defense Reserve Fleet;
                    (iii) $4,000,000 for facilities; and
                    (iv) $10,000,000 to repair and convert the vessel 
                T-AGS 39 MAURY for use as a training vessel at the 
                California Maritime Academy.
            (B) As a condition of making any payment from amounts 
        appropriated under subparagraph (A)(iv), the Secretary shall 
        require that the California Maritime Academy agree to make the 
        T-AGS 39 MAURY available to the Ready Reserve Force of the 
        National Defense Reserve Fleet upon request by the Secretary 
        and the Secretary of Defense.
            (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.).
    (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, as 
follows:
            (1) 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.
            (2) The Secretary shall pay from those proceeds $4,000,000 
        to the California Maritime Academy to repair and convert the 
        vessel T-AGS 39 MAURY for use as a training vessel at the 
        Academy.
            (3) The Secretary shall pay from those proceeds up to 
        $50,000 to the Great Lakes Maritime Academy for operation of 
        the training vessel of the Academy.

SEC. 103. 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. 1295(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 pay 
annually 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 
        3 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, 1994.
    (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 in section 102 for assistance to State 
maritime academies, there is authorized to be appropriated $300,000 for 
fiscal year 1995 to reimburse qualified individuals pursuant to the 
amendment made by subsection (a).

SEC. 104. 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. 105. 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. 106. MAINTENANCE OF READY RESERVE FORCE VESSELS IN REDUCED 
              OPERATING STATUS.

    The Secretary shall, during fiscal year 1995, 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. 107. 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 1 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 of 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. 1774(d)(2)) applies.
    (e) Geographic Distribution.--The Secretary shall seek to 
distribute contract awards under this section to shipyards located 
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, 
        no later than 20 months after the date of the enactment of this 
        Act; and
            (2) a final report on that effectiveness no later than 6 
        months after the termination of all contracts awarded pursuant 
        to this section.

SEC. 108. 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. 1295c(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. 1295c(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. 
1295c(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. 1295c(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 1995.''.

SEC. 109. MERCHANT SHIP SALES ACT OF 1946 AMENDMENT.

    Section 11 of the Merchant Ship Sales Act of 1946 (50 App. U.S.C. 
1744) is amended as follows:
            (1) In subsection (b)(2) by striking ``Secretary of the 
        Navy,'' and inserting ``Secretary of Defense,''.
            (2) By striking subsection (c) and redesignating subsection 
        (d) as subsection (c).

SEC. 110. REEMPLOYMENT RIGHTS FOR CERTAIN MERCHANT SEAMEN.

    (a) In General.--Title III of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1131) is amended by inserting after section 301 the 
following new section:
    ``Sec. 302. (a) An individual who is certified by the Secretary of 
Transportation under subsection (c) shall be entitled to reemployment 
rights and other benefits substantially equivalent to the rights and 
benefits provided for by chapter 43 of title 38, United States Code, 
for any member of a Reserve component of the Armed Forces of the United 
States who is ordered to active duty.
    ``(b) An individual may submit an application for certification 
under subsection (c) to the Secretary of Transportation not later than 
45 days after the date the individual completes a period of employment 
described in subsection (c)(1)(A) with respect to which the application 
is submitted.
    ``(c) Not later than 20 days after the date the Secretary of 
Transportation receives from an individual an application for 
certification under this subsection, the Secretary shall--
            ``(1) determine whether or not the individual--
                    ``(A) was employed in the activation or operation 
                of a vessel--
                            ``(i) in the National Defense Reserve Fleet 
                        maintained under section 11 of the Merchant 
                        Ship Sales Act of 1946, in a period in which 
                        that vessel was in use or being activated for 
                        use under subsection (b) of that section;
                            ``(ii) that is requisitioned or purchased 
                        under section 902 of this Act; or
                            ``(iii) that is owned, chartered, or 
                        controlled by the United States and used by the 
                        United States for a war, armed conflict, 
                        national emergency, or maritime mobilization 
                        need (including for training purposes or 
                        testing for readiness and suitability for 
                        mission performance); and
                    ``(B) during the period of that employment, 
                possessed a valid license, certificate of registry, or 
                merchant mariner's document issued under chapter 71 or 
                chapter 73 (as applicable) of title 46, United States 
                Code; and
            ``(2) if the Secretary makes affirmative determinations 
        under paragraph (1) (A) and (B), certify that individual under 
        this subsection.
    ``(d) For purposes of reemployment rights and benefits provided by 
this section, a certification under subsection (c) shall be considered 
to be the equivalent of a certificate referred to in paragraph (1) of 
section 4301(a) of title 38, United States Code.''.
    (b) Application.--The amendment made by subsection (a) shall apply 
to employment described in section 302(c)(1)(A) of the Merchant Marine 
Act, 1936, as amended by subsection (a), occurring after August 2, 
1990.
    (c) Employment Ending Before Enactment.--Notwithstanding subsection 
(b) of section 302 of the Merchant Marine Act, 1936, as amended by this 
Act, an individual who, in the period beginning August 2, 1990, and 
ending on the date of the enactment of this Act, completed a period of 
employment described in subsection (c)(1)(A) of that section may submit 
an application for certification under subsection (c) of that section 
with respect to that employment not later than 45 days after the date 
of the enactment of this Act.
    (d) Regulation.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Transportation shall issue 
regulations implementing this section.

SEC. 111. PILOT PROGRAM ON SEALIFT TRAINING.

    The Secretary of Transportation shall establish, subject to the 
availability of appropriations in addition to the amount authorized to 
be appropriated under section 102(a)(2), a 3-year period pilot program 
for Sealift Training at the Massachusetts Maritime Academy.

SEC. 112. MASSACHUSETTS CENTER FOR MARINE ENVIRONMENTAL PROTECTION.

    The Secretary of Transportation shall pay, subject to the 
availability of appropriations in addition to the amount authorized to 
be appropriated under section 102, $242,000 to the Massachusetts 
Maritime Academy for assistance to the Massachusetts Center for Marine 
Environmental Protection.

SEC. 113. REPORT ON SEALIFT MANPOWER MOBILIZATION PROGRAM.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary of Transportation shall submit a report to the 
Congress on--
            (1) the feasibility of conducting on Ready Reserve Force 
        vessels a program to familiarize civilian merchant mariners 
        with the operation of those vessels, for the purpose of 
        facilitating national defense mobilizations involving those 
        vessels; and
            (2) the ability of the Coast Guard to track the 
        availability of qualified civilian merchant mariners for 
        service on those vessels during those mobilizations.

SEC. 114. VESSEL DOCUMENTATION.

    Notwithstanding section 12108 of title 46, United States Code, the 
Secretary of Transportation may issue a certificate of documentation 
with appropriate endorsement for employment in the fisheries for the 
vessel ABORIGINAL (United States official number 942118).

SEC. 115. 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, 1994, 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 1996.

SEC. 116. TITLE XI LOAN GUARANTEES.

    Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et 
seq.) is amended--
            (1) in section 1101(b), by striking ``owned by citizens of 
        the United States'';
            (2) in section 1104B(a), in the material preceding 
        paragraph (1), by striking ``owned by citizens of the United 
        States''; and
            (3) in section 1110(a), by striking ``owned by citizens of 
        the United States''.

SEC. 117. STUDY OF FEASIBILITY OF SHIP REPAIR DIFFERENTIAL ASSISTANCE 
              PROGRAM.

    (a) Study.--The Secretary of Transportation shall conduct a study 
of the feasibility of establishing a program of financial assistance to 
qualified ship repair yards, to make those yards more competitive in 
international ship repair markets by paying to those yards the 
difference between the cost of repairing vessels in those yards and the 
cost of repairing vessels in foreign ship repair yards.
    (b) Report.--The Secretary of Transportation shall submit to the 
Congress by not later than 1 year after the date of the enactment of 
this Act a report on the findings and recommendations of the study 
required by subsection (a).
    (c) Qualified Ship Repair Yard Defined.--For purposes of this 
section, the term ``qualified ship repair yard'' has the meaning given 
that term in section 118(d).

SEC. 118. QUALIFIED SHIP REPAIR YARD MODERNIZATION ASSISTANCE.

    (a) Grant Authority.--The Secretary of Transportation may use 
available amounts to make grants to qualified ship repair yards to pay 
75 percent of the cost of acquiring advanced ship repair technology and 
modern ship repair technology.
    (b) Condition of Assistance.--As a condition of receiving a grant 
under this section, the Secretary shall require that a qualified ship 
repair yard provide, in cash contributions, 25 percent of the costs 
incurred in acquiring advanced ship repair technology and modern ship 
repair technology with the grant.
    (c) Priority.--In making grants under this section, the Secretary 
shall give priority to qualified ship repair yards for which assistance 
under this section will permit the performance of ship repairs more 
efficiently and in a manner that is more competitive with foreign ship 
repair yards.
    (d) Definitions.--For purposes of this section:
            (1) Advanced ship repair technology.--The term ``advanced 
        ship repair technology'' includes--
                    (A) numerically controlled machine tools, robots, 
                automated process control equipment, computerized 
                flexible manufacturing systems, associated computer 
                software, and other technology for improving ship 
                repair and related industrial production which advance 
                the state-of-the-art; and
                    (B) novel techniques and processes designed to 
                improve ship repair quality, productivity, and 
                practice, and to promote sustainable development, 
                including engineering design, quality assurance, 
                concurrent engineering, continuous process production 
                technology, energy efficiency, waste minimization, 
                design for recyclability or parts reuse, inventory 
                management, upgraded worker skills, and communications 
                with customers and suppliers.
            (2) Modern ship repair technology.--The term ``modern ship 
        repair technology'' means the best available proven technology, 
        techniques, and processes appropriate to enhancing the 
        productivity of ship repair yards.
            (3) Qualified ship repair yard defined.--The term 
        ``qualified ship repair yard'' means a shipyard located in the 
        United States that meets the eligibility qualification 
        requirements for obtaining and retaining a Master Ship Repair 
        Agreement with the United States Navy.
    (e) Authorization of Appropriations.--For grants under this section 
there are authorized to be appropriated to the Secretary of 
Transportation $17,500,000 for fiscal year 1995, to remain available 
until expended.

SEC. 119. GREAT LAKES ENDORSEMENTS.

    (a) Repeal of Great Lakes Endorsement.--
            (1) Section 12107 of title 46, United States Code, is 
        repealed.
            (2) The analysis at the beginning of chapter 121 of title 
        46, United States Code, is amended by striking the item 
        relating to section 12107.
            (3) Section 12101(b)(3) of title 46, United States Code, is 
        repealed.
    (b) Conforming Amendment.--Section 4370(a) of the Revised Statutes 
of the United States (46 App. U.S.C. 316(a)) is amended by striking 
``or 12107''.
    (c) Additional Conforming Amendments.--
            (1) Section 2793 of the Revised Statutes of the United 
        States (46 App. U.S.C. 111, 123) is amended--
                    (A) by striking ``coastwise, Great Lakes 
                endorsement'' and all that follows through ``foreign 
                ports,'' and inserting ``registry endorsement, engaged 
                in foreign trade on the Great Lakes or their tributary 
                or connecting waters in trade with Canada,''; and
                    (B) by striking ``, as if from or to foreign 
                ports''.
            (2) The Act of March 8, 1910 (46 App. U.S.C. 132; 32 Stat. 
        234, chapter 86), is amended by striking ``shall be exempt'' 
        and all that follows through the end of the section and 
        inserting ``shall be exempt from section 36(a) of the Act of 
        August 5, 1909 (36 Stat. 111).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect October 1, 1994.

                       [TITLE II--TONNAGE DUTIES

[SEC. 201. FINDINGS AND PURPOSES.

    [(a) Findings.--The Congress finds the following:
            [(1) The Coast Guard--
                    [(A) will spend over $400,000,000 in fiscal year 
                1995 conducting search and rescue operations far into 
                the Atlantic and Pacific Oceans and the Gulf of Mexico 
                to protect life and property on United States and 
                foreign-flag vessels;
                    [(B) inspects vessels of all nations to ensure 
                their compliance with international treaties and 
                conventions;
                    [(C) will spend over $470,000,000 in fiscal year 
                1995 providing navigational aids to vessels from around 
                the world through the operation of--
                            [(i) LORAN, OMEGA, and the Differential 
                        Global Positioning System; and
                            [(ii) over 46,000 lighthouses, buoys, 
                        daybeacons, fog signals, radar reflectors and 
                        Vessel Traffic Service systems; and
                    [(D) will spend over $86,000,000 in fiscal year 
                1995 providing icebreaking services for vessels from 
                all nations.
            [(2) It is reasonable for vessel owners of all nations that 
        benefit from these services, including owners of United States-
        flag vessels, to pay tonnage duties to help offset the cost of 
        providing these services.
    [(b) Purpose.--The purpose of this title is to increase the tonnage 
duties imposed on vessels entering the United States to help offset the 
cost of providing Coast Guard services to those vessels.

SEC. 202. INCREASE IN TONNAGE DUTIES.

    [(a) Increased Duties.--Section 36 of the Act of August 5, 1909 (46 
App. U.S.C. 121, 36 Stat. 111), is amended--
            [(1) by designating the first paragraph as subsection (a) 
        and amending it to read as follows:
    [``(a) Tonnage Duty Imposed on Certain Entries.--
            [``(1) Duty imposed.--There is imposed on a vessel making 
        an entry described in paragraph (2) before fiscal year 2005 a 
        duty of 53 cents per ton, except that the duty for a vessel 
        under this paragraph shall not exceed in the aggregate $6.36 
        per ton in any 12-month period.
            [``(2) Entry described.--An entry referred to in 
        subparagraph (A) is any of the following:
                    [``(A) Formal entry from foreign port or place.--A 
                formal entry in any port of the United States from any 
                foreign port or place, other than an entry by a vessel 
                that is in distress or is not engaged in trade.
                    [``(B) Other entry.--An entry by a vessel that 
                departs a United States port or place and returns to 
                the same port or place without being entered in the 
                United States from another port or place, other than--
                            [``(i) an entry by a vessel of the United 
                        States, a recreational vessel, or a barge (as 
                        those terms are defined in section 2101 of 
                        title 46, United States Code); and
                            [``(ii) an entry by a vessel that is in 
                        distress or is not engaged in trade.
            [``(3) Offsetting receipts of coast guard.--Amounts 
        received by the United States as duty imposed under this 
        subsection shall be deposited in the general fund of the 
        Treasury as offsetting receipts of the department in which the 
        Coast Guard is operating and ascribed to Coast Guard 
        activities.''; and
            [(2) by designating the remainder of the section as 
        subsection (b).
    [(b) Effective Date.--The amendments made by subsection (a) shall 
take effect October 1, 1994.]

                      TITLE II--REVENUE PROVISIONS

                       Subtitle A--Tonnage Duties

SEC. 201. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) The Coast Guard--
                    (A) will spend over $400,000,000 in fiscal year 
                1995 conducting search and rescue operations far into 
                the Atlantic and Pacific Oceans and the Gulf of Mexico 
                to protect life and property on United States and 
                foreign-flag vessels;
                    (B) inspects vessels of all nations to ensure their 
                compliance with international treaties and conventions;
                    (C) will spend over $470,000,000 in fiscal year 
                1995 providing navigational aids to vessels from around 
                the world through the operation of--
                            (i) LORAN, OMEGA, and the Differential 
                        Global Positioning System; and
                            (ii) over 46,000 lighthouses, buoys, 
                        daybeacons, fog signals, radar reflectors and 
                        Vessel Traffic Service systems; and
                    (D) will spend over $86,000,000 in fiscal year 1995 
                providing icebreaking services for vessels from all 
                nations.
            (2) It is reasonable for vessel owners of all nations that 
        benefit from these services, including owners of United States-
        flag vessels, to pay tonnage duties to help offset the cost of 
        providing these services.
    (b) Purpose.--The purpose of this subtitle is to increase the 
tonnage duties imposed on vessels entering the United States to help 
offset the cost of providing Coast Guard services to those vessels.

SEC. 202. INCREASE IN TONNAGE DUTIES.

    (a) Increased Duties.--Section 36 of the Act of August 5, 1909 (46 
App. U.S.C. 121, 36 Stat. 111), is amended--
            (1) by designating the first paragraph as subsection (a) 
        and amending it to read as follows:
    ``(a) Tonnage Duty Imposed on Certain Entries.--
            ``(1) Duty imposed.--There is imposed on a vessel making an 
        entry described in paragraph (2) before fiscal year 2005 a duty 
        of 22 cents per ton, except that the duty for a vessel under 
        this paragraph shall not exceed in the aggregate $2.64 per ton 
        in any 12-month period.
            ``(2) Entry described.--An entry referred to in 
        subparagraph (A) is any of the following:
                    ``(A) Formal entry from foreign port or place.--A 
                formal entry in any port of the United States from any 
                foreign port or place, other than an entry by a vessel 
                that is in distress or is not engaged in trade.
                    ``(B) Other entry.--An entry by a vessel that 
                departs a United States port or place and returns to 
                the same port or place without being entered in the 
                United States from another port or place, other than--
                            ``(i) an entry by a vessel of the United 
                        States, a recreational vessel, or a barge (as 
                        those terms are defined in section 2101 of 
                        title 46, United States Code); and
                            ``(ii) an entry by a vessel that is in 
                        distress or is not engaged in trade.
            ``(3) Offsetting receipts of coast guard.--Amounts received 
        by the United States as duty imposed under this subsection 
        shall be deposited in the general fund of the Treasury as 
        offsetting receipts of the department in which the Coast Guard 
        is operating and ascribed to Coast Guard activities.''; and
            (2) by designating the remainder of the section as 
        subsection (b).
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect October 1, 1994.

                  Subtitle B--Other Revenue Provisions

SEC. 211. INCREASE IN PER PASSENGER TAX ON TRANSPORTATION BY WATER.

    (a) In General.--Subsection (a) of section 4471 of the Internal 
Revenue Code of 1986 (relating to imposition of tax on transportation 
by water) is amended by adding at the end the following new sentence: 
``If the value (as determined under section 4462(a)(5)(B)) of the 
covered voyage is $150 or more, the preceding sentence shall be applied 
by substituting `$5' for `$3'.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to voyages beginning after December 31, 1994.

SEC. 212. TAX ON FUEL USED IN INTERNATIONAL COMMERCIAL WATER 
              TRANSPORTATION.

    (a) In General.--Subchapter B of chapter 31 of the Internal Revenue 
Code of 1986 (relating to retail excise taxes) is amended by adding at 
the end the following new section:

``SEC. 4043. FUEL USED IN INTERNATIONAL COMMERCIAL WATER 
              TRANSPORTATION.

    ``(a) In General.--There is hereby imposed a tax on any liquid--
            ``(1) sold in the United States by any person to an owner, 
        lessee, or other operator of a taxable commercial vessel for 
        use as a fuel in such vessel, or
            ``(2) purchased in the United States and used by any person 
        as a fuel in such a vessel during foreign transportation unless 
        there was a taxable sale of such fuel under paragraph (1).
    ``(b) Rate of Tax.--The rate of the tax imposed by subsection (a) 
shall be 1 cent per gallon.
    ``(c) Exemption From Tax for Vessels Not Engaged in International 
Shipping.--
            ``(1) Exemption where tax imposed at time fuel loaded in 
        vessel.--In the case of fuel which is loaded into the bunker of 
        a vessel at the time of the sale on which tax is imposed by 
        subsection (a), if the purchaser reasonably estimates the 
        amount of fuel to be used in foreign transportation before the 
        next purchase of fuel for such vessel, the tax imposed by 
        subsection (a) shall apply only to fuel purchased at such time 
        in the amount certified by the purchaser to the seller as being 
        equal to the excess of such estimate over the fuel in the 
        bunker at such time on which tax was imposed by subsection (a).
            ``(2) Other cases.--In any case in which tax is imposed by 
        subsection (a) before the time referred to in paragraph (1), a 
        rule similar to the rule of paragraph (1) shall apply under 
        regulations prescribed by the Secretary.
            ``(3) Ordering rule on fuel use.--For purposes of 
        determining, at the time of purchase of fuel, the amount of 
        tax-paid fuel which is in the bunker of the vessel, the vessel 
        shall be treated as having used tax-paid fuel (to the extent 
        thereof) when in foreign transportation.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Foreign transportation.--
                    ``(A) In general.--The term `foreign 
                transportation' means transportation by water--
                            ``(i) from any point within the United 
                        States,
                            ``(ii) to any point outside the United 
                        States where passengers or cargo are loaded or 
                        unloaded, and
                            ``(iii) to any point thereafter (whether or 
                        not outside the United States).
                    ``(B) Inclusion of certain transportation between 2 
                points within the united states.--The term `foreign 
                transportation' includes transportation between 2 
                points within the United States if any of the 
                passengers or cargo being transported by the vessel 
                between such 2 points is to be transported by such 
                vessel in foreign transportation (as defined in 
                subparagraph (A)).
                    ``(C) Exclusion for transportation exclusively 
                within the great lakes.--Notwithstanding subparagraphs 
                (A) and (B), the term `foreign transportation' does not 
                include transportation exclusively within the Great 
                Lakes.
            ``(2) Taxable commercial vessel.--The term `taxable 
        commercial vessel' means any commercial vessel (as defined in 
        section 4462(a)(4)) which is designed primarily for use on the 
        high seas and which has a draft of more than 12 feet.
            ``(3) United states.--The term `United States' has the 
        meaning given such term by section 4612(a)(4)(A).
    ``(e) Special Rules.--
            ``(1) Treatment of offshore fueling.--For purposes of this 
        section, the delivery of fuel into the bunker of a vessel by 
        pipeline or another vessel shall be treated as occurring in the 
        United States if such fuel was removed from the United States 
        for such delivery.
            ``(2) No penalty for sale of dyed fuel.--Section 6715 shall 
        not apply to any liquid on which tax is imposed by this 
        section.''
    (b) Credit or Refund for Tax-Paid Fuel Not Used in International 
Commercial Water Transportation.--Subchapter B of chapter 65 of such 
Code is amended by adding at the end the following new section:

``SEC. 6428. FUEL NOT USED IN INTERNATIONAL COMMERCIAL WATER 
              TRANSPORTATION.

    ``(a) In General.--If tax has been imposed by section 4043 on the 
sale of any fuel and the purchaser establishes to the satisfaction of 
the Secretary that such fuel was not used in foreign transportation (as 
defined in section 4043(d)), the Secretary shall pay (without interest) 
to the purchaser an amount equal to the tax imposed by section 4043 on 
such fuel.
    ``(b) Applicable Laws.--Rules similar to the rules of section 
6427(j) shall apply for purposes of this section, and any reference in 
subtitle F to such section shall be treated as including a reference to 
this subsection.''
    (c) Conforming Amendments.--
            (1) Subsection (a) of section 6675 of such Code is amended 
        by striking ``or'' before ``6427'' and by inserting after 
        ``purposes)'' the following ``or 6428 (relating to fuel not 
        used in international commercial water transportation)''.
            (2) Subsection (b) of section 6675 of such Code is amended 
        by striking ``or 6427'' and inserting ``6427, or 6428''.
            (3) The section 6714 of such Code added by section 13242 of 
        Public Law 103-66 is redesignated as section 6715.
            (4) The table of sections for part I of subchapter B of 
        chapter 68 of such Code is amended by redesignating the item 
        relating to the section 6714 that was added by such section 
        13242 as relating to section 6715.
            (5) The table of sections for subchapter B of chapter 31 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Sec. 4043. Fuel used in international 
                                        commercial water 
                                        transportation.''
            (6) The table of sections for subchapter B of chapter 65 of 
        such Code is amended by adding at the end the following new 
        item:

                              ``Sec. 6428. Fuel not used in 
                                        international commercial water 
                                        transportation.''
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold on or after January 1, 1995.

SEC. 213. LIMITATION ON CONTRACT AUTHORITY.

    (a) Limitation on Contract Authority.--The Secretary of 
Transportation may not obligate more than $1,000,000,000 in total 
contracts under the Maritime Security and Competitiveness Act of 1993 
or this Act between October 1, 1994, and September 30, 2004.
    (b) Limitation on Outlays.--The Secretary of Transportation shall 
not enter into any agreements under the Maritime Security and 
Competitiveness Act of 1993 or this Act that would result in total 
payments under such agreements for any fiscal year in excess of the 
limitations in the following table.

        In the case of
                                                         The limitation
        fiscal year:
                                                      (in millions) is:
          1995.......................................           $56    
          1996.......................................           $70    
          1997.......................................           $70    
          1998.......................................           $72    
          1999.......................................          $121    
          2000.......................................          $123    
          2001.......................................          $124    
          2002.......................................          $124    
          2003.......................................          $126    
          2004.......................................         $126.    
    (c) Coordination With Title III.--Subsections (a) and (b) shall 
apply notwithstanding title III of this Act; except that such 
subsections shall not apply to the extent additional amounts are 
provided by appropriation laws (including section 302 of this Act).

          TITLE III--FUNDING FOR MARITIME PROMOTIONAL PROGRAMS

SEC. 301. CONTRACT AUTHORITY.

    The Secretary of Transportation shall expeditiously enter into 
agreements under the Maritime Security and Competitiveness Act of 1993. 
However, the Secretary may not obligate more than $1,700,000,000 in 
total contracts between October 1, 1994, and September 30, 2004, except 
to the extent additional amounts are provided by appropriations laws 
(including section 302).

SEC. 302. TRANSFER.

    The Secretary of Transportation shall use any amounts appropriated 
for acquisition of vessels for the Ready Reserve Force that are 
unobligated on October 1, 1994, to enter into agreements under the 
Maritime Security and Competitiveness Act of 1993.

SEC. 303. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS.

    In addition to amounts otherwise available, there are authorized to 
be appropriated to the Secretary of Transportation such amounts as may 
be necessary for entering into and making payments under agreements 
under the Maritime Security and Competitiveness Act of 1993.

SEC. 304. CONTINUING AVAILABILITY.

    Amounts available or authorized to be appropriated under this title 
shall remain available until expended.
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