[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1727 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1727

   To establish a National Maritime Heritage Program to make grants 
  available for educational programs and the restoration of America's 
 cultural resources for the purpose of preserving America's endangered 
                           maritime heritage.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            November 19 (legislative day, November 2), 1993

   Mr. Cohen introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To establish a National Maritime Heritage Program to make grants 
  available for educational programs and the restoration of America's 
 cultural resources for the purpose of preserving America's endangered 
                           maritime heritage.

    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 ``National Maritime Heritage Act of 
1993''.

SEC. 2. FINDINGS.

    Congress finds and declares that--
            (1) the United States is a maritime nation with rich 
        maritime history, and it is desirable to foster in the American 
        public a greater awareness and appreciation of the role of 
        maritime endeavors in our Nation's history and culture;
            (2) the maritime historical and cultural foundations of the 
        Nation should be preserved as a part of our community life and 
        development;
            (3) national, State, and local groups have been working 
        independently to preserve the maritime heritage of the United 
        States;
            (4) historic resources significant to the Nation's maritime 
        heritage are being lost or substantially altered, often 
        inadvertently, with increasing frequency;
            (5) the preservation of this irreplaceable maritime 
        heritage is in the public interest so that its vital legacy of 
        cultural, educational, aesthetic, inspirational, and economic 
        benefits will be maintained and enriched for future generations 
        of Americans;
            (6) in the face of ever-increasing development, the present 
        governmental and nongovernmental historic preservation programs 
        and activities are inadequate to ensure future generations a 
        genuine opportunity to appreciate and enjoy the rich maritime 
        heritage of our Nation;
            (7) a coordinated national program is needed to immediately 
        redress the adverse consequences of a period of indifference 
        during which the heritage of the United States has become 
        endangered and to ensure the future preservation of the 
        Nation's maritime heritage;
            (8) a national maritime heritage policy would greatly 
        increase public awareness of the educational, recreational, and 
        preservation values of maritime heritage; and
            (9) the creation of a National Maritime Trust for Historic 
        Preservation in the United States would greatly enhance 
        maritime preservation.

SEC. 3. NATIONAL MARITIME HERITAGE POLICY.

    It shall be the policy of the Federal Government in partnership 
with the States and local governments and private organizations and 
individuals to--
            (1) use measures, including financial and technical 
        assistance, to foster conditions under which our modern society 
        and our historic maritime resources can exist in productive 
        harmony and fulfill the social, economic, and other 
        requirements of present and future generations;
            (2) provide leadership in the preservation of the historic 
        maritime resources of the United States;
            (3) contribute to the preservation historic maritime 
        resources and give maximum encouragement to organizations and 
        individuals undertaking preservation by private means; and
            (4) assist State and local governments to expand and 
        accelerate their maritime historic preservation programs and 
        activities.

SEC. 4. NATIONAL MARITIME TRUST.

    (a) Creation.--To further the policy enunciated in this Act to 
facilitate public participation in the preservation of maritime sites, 
buildings, and objects of significance or interest, and to further the 
education of the American public about the importance of our maritime 
heritage, there is hereby created a charitable, educational, and 
nonprofit corporation, to be known as the National Maritime Trust.
    (b) Purpose.--The purposes of the National Maritime Trust shall be 
to--
            (1) receive donations of real property and objects 
        significant in American maritime history and culture;
            (2) preserve and administer them for public benefits;
            (3) accept, hold, and administer gifts of money, 
        securities, or other property of whatsoever character for the 
        purpose of carrying out a maritime preservation and education 
        program; and
            (4) execute other functions as are vested in it by this 
        Act.
    (c) Principal Office.--The National Maritime Trust shall have its 
principal office in the District of Columbia and shall be deemed, for 
purposes of venue in civil actions, to be an inhabitant and resident 
thereof. The National Maritime Trust may establish offices in other 
places as it may deem necessary or appropriate in the conduct of its 
business.
    (d) Administration of National Trust.--
            (1) Composition of board of trustees.--
                    (A) The affairs of the National Maritime Trust 
                shall be under the administration of a board composed 
                as follows: the Secretary of Transportation, the 
                Secretary of Commerce, and the Secretary of the Navy, 
                ex officio; and not less than six general trustees who 
                shall be citizens of the United States (one of whom 
                shall be a State Historic Preservation officer whose 
                State has an agreement with the Secretary under section 
                5 of the Act), to be chosen as hereinafter provided.
                    (B) The Secretary of Transportation, the Secretary 
                of Commerce, and the Secretary of the Navy, when it 
                appears desirable in the interest of the conduct of the 
                business of the board and to the extent as they deem it 
                advisable, may, by written notice to the National 
                Maritime Trust, designate any officer of their 
                respective departments to act for them in the discharge 
                of their duties as a member of the board of trustees.
                    (C) The number of general trustees shall be--
                            (i) fixed by the Board of Trustees of the 
                        National Maritime Trust;
                            (ii) chosen by the members of the National 
                        Maritime Trust from its members at any regular 
                        meeting of the National Maritime Trust; and
                            (iii) appointed by the Secretary of 
                        Transportation.
            (2) Terms of office.--The respective terms of office of the 
        general trustees shall be as prescribed by the said board of 
        trustees but in no case shall exceed a period of five years 
        from the date of election. A successor to a general trustee 
        shall be chosen in the same manner and shall have a term 
        expiring five years from the date of the expiration of the term 
        for which the trustees predecessor was chosen, except that a 
        successor chosen to fill a vacancy occurring prior to the 
        expiration of such term shall be chosen only for the remainder 
        of that term. The chairman of the board of trustees shall be 
        elected by a majority vote of the member of the board.
            (3) Compensation and expenses.--No compensation shall be 
        paid to the members of the board of trustees for their services 
        as such members, but they shall be reimbursed for travel and 
        actual expenses necessary incurred by them in attending board 
        meetings and performing other official duties on behalf of the 
        National Maritime Trust at the direction of the board.
    (e) Powers and Duties of National Maritime Trust.--To the extent 
necessary to enable it to carry out the functions vested in it by this 
Act, the National Maritime Trust shall have the following general 
powers:
            (1) To have succession until dissolved by Act of Congress, 
        in which event title to the properties of the National Maritime 
        Trust, both real and personal, shall, insofar as consistent 
        with existing contractual obligations and subject to all other 
        legally enforceable claims or demands by or against the 
        National Maritime Trust, at the discretion of the Secretary of 
        the Interior, pass to and become vested in the United States of 
        America.
            (2) To sue and be sued in its corporate name.
            (3) To adopt, alter, and use a corporate seal which shall 
        be judicially noticed.
            (4) To adopt a constitution and to make such bylaws, rules, 
        and regulations, not inconsistent with the laws of the United 
        States or of any State, as it deems necessary for the 
        administration of its functions under this Act, including among 
        other matter, bylaws, rules, and regulations governing 
        visitation to maritime historic properties, administration of 
        corporate funds, and the organization and procedure of the 
        board of trustees.
            (5) To accept, hold, and administer gifts and bequests of 
        money, securities, or other personal property of whatsoever 
        character, absolutely or in trust, for the purposes for which 
        the National Maritime Trust is created. Unless otherwise 
        restricted by the terms of the gift or bequest, the National 
        Maritime Trust is authorized to sell, exchange, or otherwise 
        dispose of and to invest or reinvest in such investments as it 
        may determine from time to time the moneys, securities, or 
        other property given or bequeathed to it. The principal of such 
        corporate funds, together with the income therefrom and all 
        other revenues received by it from any source whatsoever, shall 
        be placed in such depositories as the National Maritime Trust 
        shall determine and shall be subject to expenditure by the 
        National Maritime Trust for its corporate purposes.
            (6) To acquire by gift, devise, purchase, or otherwise, 
        absolutely or on trust, and to hold and, unless otherwise 
        restricted by the terms of the gift or devise, to encumber, 
        convey, or otherwise dispose of, any real property, or any 
        estate or interest therein (except property within the exterior 
        boundaries of national parks and national monuments), as may be 
        necessary and proper in carrying into effect the purposes of 
        the National Maritime Trust.
            (7) To contract and make cooperative agreements with 
        Federal, State, or municipal departments or agencies, 
        corporations, associations, or individuals, under such terms 
        and conditions as it deems advisable, respecting the 
        protection, preservation, maintenance, or operation of any 
        maritime historic site, building, object, or other property 
        used in connection them-with for public use, regardless of 
        whether the National Maritime Trust has acquired title to the 
        properties, or any interest therein.
            (8) To enter into contracts generally and to execute all 
        instruments necessary or appropriate to carry out its corporate 
        purposes, which instruments shall include such concession 
        contracts, leases, or permits for the use of lands, buildings, 
        or other property deemed desirable either to accommodate the 
        public or to facilitate administration.
            (9) To appoint and prescribe the duties of such officers, 
        agents, and employees as may be necessary to carry out its 
        functions, and to fix and pay such compensation to them for 
        their services as the National Maritime Trust may determine.
            (10) Generally to do any and all lawful acts necessary or 
        appropriate to carry out the purposes for which the National 
        Maritime Trust is created.

SEC. 5. NATIONAL HERITAGE GRANTS PROGRAM.

    (a) Establishment.--
            (1) There is established within the Department of 
        Transportation a National Maritime Heritage Grants Program to 
        foster in the American public a greater awareness and 
        appreciation of the role of maritime endeavors in our Nation's 
        history and culture.
            (2) Within ninety days after the date of enactment of this 
        Act, the Secretary may enter into a cooperative agreement with 
        the National Maritime Trust for assistance in the 
        administration of the grants program.
            (3) The Secretary shall administer a program of matching 
        grants-in-aid to carry out the purposes of this Act.
            (4)(A) In addition to the programs under paragraph (3) of 
        this subsection, the Secretary may administer a program of 
        direct grants for the preservation of maritime resources. Funds 
        to support this direct grants program annually shall not exceed 
        10 percent of the amount derived under section 6 of this Act.
            (B) These grants may be made by the Secretary--
                    (i) for the preservation of national maritime 
                historic resources which are threatened with demolition 
                or impairment and for the preservation of maritime 
                historic resources of significance;
                    (ii) for maritime demonstration projects which will 
                provide information concerning professional methods and 
                techniques having application to maritime historic 
                resources;
                    (iii) for the training and development of skilled 
                labor in trades and crafts, and in analysis, marine 
                survey, and curation, relating to maritime historic 
                preservation; and
                    (iv) for educational programs to increase the 
                awareness by the American public of our maritime 
                heritage.
    (b) Grants Process.--
            (1) The Secretary shall publish annually a grants 
        solicitation, together with grant priorities and other relevant 
        information, in the Federal Register and otherwise as the 
        Secretary deems appropriate.
            (2) Each fiscal year, the Secretary, acting through the 
        National Maritime Trust, shall receive and process applications 
        for grants under the regulations promulgated pursuant to 
        section 11 of this Act.
    (c) National Maritime Trust Responsibilities.--Under the 
cooperative agreement executed under subsection (a) of this section, 
the National Maritime Trust shall be responsible for administration of 
the grants program, including--
            (1) publicizing the program to prospective grantees in 
        accordance with the regulations promulgated by the Secretary;
            (2) answering inquiries from the public, including 
        providing information on the program as requested;
            (3) distributing grant applications;
            (4) collecting proposals and ensuring their completeness;
            (5) forwarding the proposals to the Committee for review;
            (6) transmitting the recommendations of the Committee to 
        the Secretary;
            (7) keeping records of all grant awards and expenditures of 
        funds;
            (8) monitoring progress of grants;
            (9) providing progress reports to the Secretary as 
        requested;
            (10) delegating responsibility of administering a project 
        to the appropriate State Historic Preservation officer for the 
        State in which the project or program is principally located to 
        the maximum extent possible consistent with the purposes of 
        this Act; and
            (11) any other responsibilities that the Secretary deems 
        appropriate.
    (d) Report to Congress.--The National Maritime Trust shall submit 
an annual report on the program to the Secretary for transmittal to 
Congress. The report shall include--
            (1) a description of each project funded;
            (2) the results or accomplishments of each project;
            (3) a detailed review of the National Maritime Trust's 
        operations, activities, and financial condition;
            (4) recommended priorities for achieving the purposes of 
        the Act under section 5(c)(4); and
            (5) the audit report required under section 8.
    (e) Criteria For Grant Eligibility.--To qualify for a grant under 
this section, a grantee must--
            (1) demonstrate that the project for which funding is being 
        sought--
                    (A) has the potential for reaching a broad audience 
                with an effective educational program based on American 
                maritime history, technology, or the role of maritime 
                endeavors in American culture; and
                    (B) has the ability to garner support from non-
                Federal sources;
            (2) match the grant award with non-Federal assets, 
        including cash, as appropriate;
            (3) demonstrate organizational viability;
            (4) exhibit the existence of approved business and 
        operation plans;
            (5) maintain records as may be reasonably necessary to 
        fully disclose--
                    (A) the amount and the disposition of the proceeds 
                of the grant;
                    (B) the total cost of the project for which the 
                grant is given or used;
                    (C) the amount and nature of that portion of the 
                cost of the project supplied by other sources; and
                    (D) other records as will facilitate an effective 
                audit required in regulation by the Secretary;
            (6) provide access for the purposes of any required audit 
        and examination of any books, documents, papers, and records of 
        the recipient under this Act;
            (7) be principally located in a State whose State Historic 
        Preservation Officer enters into an agreement with the 
        Secretary regarding the delegations of the administration of 
        the project or program under this Act; and
            (8) be a unit of Federal, State, or local government, or a 
        nonprofit organization that has applied for, or has been 
        granted, 501(c)(3) status.
    (f) Grants.--Grants will be available for projects of--
            (1) national, regional, and local maritime historic 
        significance, including restoration of vessels, small craft, 
        lighthouses, and other sites, structures, or objects listed on 
        the National Register of Historic Places; and
            (2) significant educational or cultural value, including 
        museums, fishing, villages, maritime educational waterborne-
        experience programs, construction or purchase of educational 
        facilities, structures or vessels, and other projects that the 
        Secretary deems appropriate.
    (g) Terms and Conditions.--
            (1) No part of any grant made under this section may be 
        used to compensate any person intervening in any proceedings 
        under this Act.
            (2) An application must be submitted in accordance with 
        regulations and procedures prescribed by the Secretary.
            (3) No grant may be awarded--
                    (A) unless the grantee has agreed to assume, after 
                completion of the project for which the grant is 
                awarded, the total cost of the continued maintenance, 
                repair, and administration of the property in a manner 
                satisfactory to the Secretary; and
                    (B) until the grantee has complied with such 
                further terms and conditions as the Secretary may deem 
                necessary or advisable.
            (4) Except as permitted by other law, the State share of 
        the costs referred to in paragraph (3) of this subsection shall 
        be contributed by non-Federal sources.
            (5) Notwithstanding any other law, no grant made pursuant 
        to this Act shall be treated as taxable income for purposes of 
        the Internal Revenue Code of 1986.
            (6) The Secretary shall make funding available as soon as 
        practicable after execution of a grant agreement through the 
        State Historic Preservation Officer for the State in which the 
        project or program is principally located.
            (7) The State Historic Preservation Officer shall 
        administer grants for projects and programs as provided by this 
        Act.
            (8) The total administrative costs, direct and indirect, 
        charged for carrying out projects and programs may not exceed 
        25 percent of the aggregate costs.
            (9) The amount of funds expended on Federal projects shall 
        not exceed 20 percent of the amount appropriated annually under 
        this Act for the fund.
    (h) Review of Proposals.--
            (1) Committee recommendations.--The committee established 
        under section 7 of this Act shall review the grant proposals 
        and make recommendations to the Secretary as to which projects 
        should receive funding.
            (2) Secretarial approval.--Within one hundred and twenty 
        days of the deadline for submission, the Secretary shall 
        approve applications for grants under this subsection 
        recommended by the committee if the Secretary is satisfied 
        that--
                    (A) the applicant has the requisite technical and 
                financial capability to carry out the project; and
                    (B) the project adequately implements the 
                objectives of the Act and will comply with subsection 
                (g) of this section.
    (i) Waiver.--The Secretary may waive the requirements of this 
section for any grant under this Act.

SEC. 6. CONEYANCE OF NDRF VESSEL FOR SCRAPPING BY NATIONAL MARITIME 
              TRUST.

    (a) Vessel Conveyance Authority.--
            (1) In general.--Notwithstanding any other law, the 
        Secretary may convey to the National Maritime Trust, without 
        consideration, all right, title, and interest of the United 
        States Government in each vessel which--
                    (A) is in the National Defense Reserve Fleet on the 
                date of the enactment of this section;
                    (B) has no usefulness to the Government; and
                    (C) is scheduled to be scrapped.
            (2) Condition.--As a condition of conveying a vessel to the 
        National Maritime Trust pursuant to this section, the Secretary 
        shall require that the National Maritime Trust enter into an 
        agreement with the Secretary which requires that the National 
        Maritime Trust--
                    (A) sell the vessel for scrap purposes;
                    (B) use the proceeds of that scrapping for expenses 
                directly related to the purposes of this Act; and
                    (C) comply with any other conditions the Secretary 
                considers appropriate.
    (b) Delivery.--The Secretary shall deliver a vessel conveyed under 
this section to the National Maritime Trust.--
            (1) at the place where the vessel is located on the date of 
        the approval of the conveyance;
            (2) in its condition on that date; and
            (3) without cost to the Government.
    (c) Minimum Vessel Sale.--The National Maritime Trust shall sell a 
sufficient quantity of vessels annually to ensure that the amount 
derived is not less than $5,000,000 for each fiscal year beginning in 
fiscal year 1994 and ending in fiscal year 2000, and amounts as may be 
required thereafter.
    (d) Treatment of Amounts Available to the Trust.--Amounts available 
to, or used by, the National Maritime Trust pursuant to this subsection 
shall not be considered in any determination of the amounts available 
to the Department of the Interior.
    (e) Administrative Expenditures.--
            (1) Minimum amount.--Not more than 15 percent or $250,000, 
        whichever is greater, of the amount derived under this section 
        in any fiscal year may be used for administering the program 
        under the cooperative agreement executed under section 5 of 
        this Act.
            (2) Allocation.--Of the amount used for administering the 
        program in any fiscal year, two thirds shall be allocated to 
        the National Maritime Trust and one-third allocated to the 
        Secretary.
    (f) Disbursement Criteria.--In expending the funds derived under 
this section, the Secretary shall give due consideration to the 
following factors:
            (1) the national significance of a project;
            (2) its maritime historical and educational value to the 
        community;
            (3) the imminence of its destruction or loss; and
            (4) the expressed intentions of the donor.

SEC. 7. MARITIME HERITAGE PROGRAM GRANTS COMMITTEE.

    (a) Establishment.--There is established a Maritime Heritage Grants 
Committee.
    (b) Membership.--Within one hundred twenty days of enactment of 
this Act, and biennially thereafter, the Secretary shall appoint the 
members of the Committee. The Committee shall consist of eleven members 
representing various sectors of the maritime community who are 
knowledgeable and experienced in maritime heritage and preservation, 
and showing regional geographic balance, as follows:
            (1) one representative from the field of small craft 
        preservation;
            (2) one representative from the field of large vessel 
        preservation;
            (3) one representative from the field of sail training;
            (4) one representative from the field of preservation 
        architecture;
            (5) one representative from the field of underwater 
        archeology;
            (6) one representative from the field of lighthouse 
        preservation;
            (7) one representative from the field of maritime 
        education;
            (8) one representative having a military naval history 
        background;
            (9) one representative from a maritime museum or maritime 
        historical society;
            (10) one representative who is a State Historic 
        Preservation Officer whose State has an agreement with the 
        Secretary under section 5 of this Act; and
            (11) one representative from the general public.
    (c) Duties of the Committee.--The duties of the Committee include--
            (1) providing oversight of the grants program on a 
        continuing basis;
            (2) reviewing grant proposals;
            (3) making funding recommendations to the Secretary;
            (4) identifying and advising the Secretary regarding 
        priorities for achieving the purposes of the Act;
            (5) reviewing the National Maritime Trust's annual grants 
        report to the Secretary; and
            (6) performing any other duties as the Secretary deems 
        appropriate.
    (d) Report.--The Committee shall submit annually a comprehensive 
report of its activities and the results of its studies to the 
Secretary and Congress and shall from time to time submit additional 
and special reports as it deems advisable. Each report shall propose 
legislative enactments and other actions as, in the judgment of the 
Committee, are necessary and appropriate to carry out its 
recommendations and shall provide the Committee's assessment of current 
and emerging problems in the field of maritime historic preservation 
and an evaluation of the effectiveness of the programs of Federal 
agencies, State and local governments, and the private sector in 
carrying out the purposes of this Act.
    (e) Quorum.--Seven members of the Committee shall constitute a 
quorum.
    (f) Appointments Process.--
            (1) Duties of the secretary.--The Secretary shall--
                    (A) publicize annually in the Federal Register a 
                call for nominations with a statement that the 
                applications for nomination shall be submitted to the 
                National Maritime Trust;
                    (B) make the appointments to the Committee giving 
                due consideration to the recommendations of the 
                National Maritime Trust; and
                    (C) designate a Chairman and a Vice Chairman, from 
                the members appointed under this section. The Vice 
                Chairman may act in place of the Chairman during the 
                absence or disability of the Chairman or when the 
                office is vacant.
            (2) Duties of the national maritime trust.--The National 
        Maritime Trust shall--
                    (A) widely publicize the call for nominations in 
                its newsletter and by any other appropriate means;
                    (B) collect nominations and categorize the 
                nominations as set forth in subsection (b); and
                    (C) submit the nominations to the Secretary with 
                recommendations as to appointments by category as set 
                forth in subsection (b).
            (3) Terms of appointments.--The members of the Committee 
        shall be appointed for staggered terms of not more than three 
        years. If a vacancy occurs, the Secretary shall appoint a 
        replacement for the balance of the vacated term within sixty 
        days.
    (g) Government Representatives.--There shall be nonvoting 
government representatives appointed to serve as advisors to the 
Committee as follows--
            (1) one representative each from the Department of 
        Transportation, Department of the Navy, and the National 
        Oceanographic and Atmospheric Administration;
            (2) at least one representative from the National Maritime 
        Initiative of the National Park Service; and
            (3) other representatives from interested government 
        agencies as the Secretary deems appropriate.
    (h) Committee Independence.--No officer or agency of the United 
States shall have any authority to require the Committee to submit its 
legislative recommendations, or testimony, or comments on legislation 
to any officer or agency of the United States for approval, comments, 
or review, prior to the submission of recommendations, testimony, or 
comments to Congress. In instances in which the Committee voluntarily 
seeks to obtain the comments or review of any officer or agency of the 
United States, the Committee shall include a description of those 
actions in its legislative recommendations, testimony, or comments on 
legislation that it transmits to Congress.
    (i) Secretary Assistance.--To assist the Committee in discharging 
its responsibilities under this Act, the Secretary at the request of 
the Chairman, shall provide a report to the Committee detailing the 
significance of any maritime historic resource, describing the effects 
of any proposed undertaking on the affecting resource, and recommending 
measure to avoid, minimize, or mitigate adverse effects.
    (j) Compensation.--A member of the Committee who is not an officer 
or employee of the United States shall serve without pay, and a member 
of the Committee who is an officer or employee of the United States 
shall receive no additional pay, on account of the member's service on 
the Committee. While away from home or regular place of business in the 
performance of service for the Committee, a member of the Committee 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, in the same manner as a person employed intermittently in 
the Government service is allowed expenses under section 5703 of title 
5, United States Code.
    (k) FACA Exemption.--The Committee is exempt from the provisions of 
the Federal Advisory Committee Act (86 Stat. 770).

SEC. 8. INTERIM PROJECTS.

    (a) Determination by Committee.--Within six months of the date of 
enactment of this Act, the Committee, in consultation with the 
Secretary, shall determine if any projects exist that meet the criteria 
under subsection (d) of this section.
    (b) Designation by Secretary.--The Secretary shall designate those 
projects determined qualified under subsection (a) of this section to 
receive a grant prior to issuance of the implementing regulations.
    (c) Issuance of Grants.--Upon scrapping of a vessel under section 6 
of this Act, the Secretary shall disburse funds derived under that 
section to those projects designated in subsection (b) of this section 
in the amounts approved in the grant for each project.
    (d) Interim Criteria.--To qualify for an interim grant, a grantee 
must meet the criteria under section 5(e) of this Act and--
            (1) be a 501(c)(3) organization;
            (2) demonstrate that the project needs accelerated 
        consideration to contribute to a significant national event 
        relating to the maritime heritage of the United States;
            (3) establish that one-half of the matching funds are in 
        cash;
            (4) demonstrate that the project for which funding is 
        sought is national in scope and educational in nature; and
            (5) show that the proposed project is supported by a 
        broadbased membership program or group of donors.

SEC. 9. AUDITS OF ACCOUNTS.

    (a) Independent Audit.--The accounts of the National Maritime Trust 
shall be audited annually in accordance with generally accepted 
auditing standards by independent certified public accountants or 
independent licensed public accountants certified or licensed by a 
regulatory authority of a State or other political subdivision of the 
United States. The audits shall be conducted at a place or places where 
the accounts of the organization are nominally kept. All books, 
accounts, financial records, reports, files, and all other papers, 
things, or property belonging to or in use by the Alliance and 
necessary to facilitate the audits, and full facilities for verifying 
transactions with any assets held by depositories, fiscal agents, and 
custodians, shall be afforded to that person or persons. The report of 
this independent audit shall be included in the report to Congress 
required by section 3 of this Act.
    (b) General Accounting Office Audit.--The financial transactions of 
the National Maritime Trust for each fiscal year may be audited by the 
General Accounting Office in accordance with the principles and 
procedures and under rules and regulations as may be prescribed by the 
Comptroller General of the United States. Any audit shall be conducted 
at the place or places where accounts of the organization are normally 
kept. The representatives of the General Accounting Office shall have 
access to all books, accounts, records, reports, and files, and all 
other papers, things, or property belonging to or in use by the Trust, 
pertaining to its financial transactions and necessary to facilitate 
the audit, and shall be afforded full facilities for verifying 
transactions with any assets held by depositories, fiscal agents, and 
custodians. All books, accounts, records, reports, files, papers, and 
property of the organization shall remain in the possession and custody 
of the organization.

SEC. 10. DEFINITIONS.

    (a) ``Committee'' means the Maritime Heritage Grants Committee 
established under section 5.
    (b) ``Secretary'' means the Secretary of Transportation.

SEC. 11. REGULATIONS.

    The Secretary, after consultation with the maritime community, 
shall promulgate regulations within one year of the date of enactment 
of this Act to establish terms of office for committee membership, 
granting priorities, the method of solicitation and review of grant 
proposals, criteria for review of grant proposals, administrative 
requirements, reporting and record keeping requirements, delegation of 
project and program administration to State Historic Preservation 
officers, and any other requirements as the Secretary deems 
appropriate.

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