[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2124 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2124

   To authorize appropriations for fiscal year 1999 for the Maritime 
                 Administration and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 1998

 Mrs. Hutchison (for herself and Mr. Inouye) introduced the following 
 bill; which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To authorize appropriations for fiscal year 1999 for the Maritime 
                 Administration and for other purposes.

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

SEC. 1. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1999.

    Funds are hereby authorized to be appropriated for fiscal year 
1999, to be available without fiscal year limitation if so provided in 
appropriations Acts, for the use of the Department of Transportation 
for the Maritime Administration as follows:
            (1) For expenses necessary for operations and training 
        activities, $70,978,000.
            (2) For expenses under the loan guarantee program 
        authorized by title XI of the Merchant Marine Act, 1936 (46 
        U.S.C. App. 1271 et seq.), $20,000,000, of which--
                    (A) $16,000,000 is for the cost (as defined in 
                section 502(5) of the Federal Credit Reform Act of 1990 
                (2 U.S.C. 661a(5))) of loan guarantees under the 
                program; and
                    (B) $4,000,000 is for administrative expenses 
                related to loan guarantee commitments under the 
                program.

SEC. 2. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

    (a) Authority To Convey.--Not withstanding any other law, the 
Secretary of Transportation may convey all right, title, and interest 
of the United States Government in and to the vessel M/V BAYAMON 
(United States official number 530007) to the Trade Fair Ship Company, 
a corporation established under the laws of the State of Delaware and 
having its principal offices located in New York, New York (in this 
section referred to as the ``recipient''), for use as floating trade 
exposition to showcase United States technology, industrial products, 
and services.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection (a), 
        the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is located on the 
                date of conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the United States Government.
            (2) Required conditions.--The Secretary may not convey a 
        vessel under this section unless--
                    (A) the recipient pays consideration equal to the 
                domestic fair market value of the vessel as determined 
                by the Secretary;
                    (B) the recipient agrees that any repair, except 
                for emergency repairs, restoration, or reconstruction 
                work for the vessel will be performed in the United 
                States;
                    (C) the recipient agrees to hold the Government 
                harmless for any claims arising from exposure to 
                hazardous material, including asbestos and 
                polychlorinated biphenyls, after the conveyance of the 
                vessel, except for claims arising before the date of 
                the conveyance or from use of the vessel by the 
                Government after that date; and
                    (D) the recipient provides sufficient evidence to 
                the Secretary that it has adequate financial resources 
                in the form of cash, liquid assets, or a written loan 
                commitment to complete the reconstruction of the 
                vessel.
            (3) Additional terms.--The Secretary may require such 
        additional terms in connection with the conveyance authorized 
        by this section as the Secretary considers appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of the M/V BAYAMON shall be deposited in the 
Vessel Operations Revolving Fund established by the Act of June 2, 1951 
(chapter 121; 46 U.S.C. App. 1241a) and shall be available and expended 
in accordance with section 6(a) of the National Maritime Heritage Act 
(16 U.S.C. App. 5405(a)).

SEC. 3. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE RESERVE FLEET 
              VESSELS.

    (a) Authority To Convey.--Notwithstanding any other law, except as 
described in subsection (b), the Secretary of Transportation may convey 
all right, title, and interest of the United States Government in and 
to the vessels BENJAMIN ISHERWOOD (TAO-191) and HENRY ECKFORD (TAO-192) 
to a purchaser for the purpose of reconstruction of those vessels for 
sale or charter.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection (a), 
        the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is located on the 
                date of the conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the United States Government.
            (2) Required conditions.--The Secretary may not convey a 
        vessel under this section unless--
                    (A) competitive procedures are used for sales under 
                this section. The purchaser or purchasers shall be 
                selected on the basis of sealed bids solicited and 
                evaluated in accordance with those procedures, except 
                that a sale of a vessel may not be made for less than 
                the fair market value of the vessel in the United 
                States, as determined by the Secretary of 
                Transportation;
                    (B) with respect to the vessel, the recipient 
                remains subject to all laws and regulations governing 
                the export of military items, including the 
                requirements administered by the Department of State 
                regarding export licenses and certification of 
                nontransfer end use;
                    (C) the recipient provides sufficient evidence to 
                the Secretary that it has adequate financial resources 
                in the form of cash, liquid assets, or a written loan 
                commitment to complete the reconstruction of the 
                vessel;
                    (D) the recipient agrees that any repair, except 
                for emergency repairs, restoration, or reconstruction 
                work for the vessel will be performed in the United 
                States; and
                    (E) the recipient agrees to hold the Government 
                harmless for any claims arising from defects in the 
                vessel or from exposure to hazardous material, 
                including asbestos and polychlorinated biphenyls, after 
                the conveyance of the vessel, except for claims arising 
                before the date of the conveyance or from use of the 
                vessel by the Government after that date.
            (3) Additional terms.--The Secretary may require such 
        additional terms in connection with a conveyance authorized by 
        this section as the Secretary considers appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of a vessel under this section shall be 
deposited in the Vessel Operations Revolving Fund established by 
section 801 of the Act of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 
1241a) and shall be available and expended in accordance with section 
6(a) of the national Maritime Heritage Act (16 U.S.C. App. 5405(a)).
    (d) Duration of Authority.--The authority of the Secretary under 
this section may only be exercised during the one-year period beginning 
on the date of the enactment of this Act.

SEC. 4. CLEARINGHOUSE FOR MARITIME INFORMATION.

    Of the amount authorized to be appropriated pursuant to section 
1(1) for operations of the Maritime Administration, $75,000 may be 
available for the establishment at a State Maritime Academy of a 
clearinghouse for maritime information that makes that information 
publicly available, including by use of the Internet.

SEC. 5. SHIP SCRAPPING EXPENSES.

    (a) Proceeds of Sale.--Section 508 of the Merchant Marine Act of 
1936 (46 U.S.C. App. 1158) is amended by adding at the end thereof the 
following: ``Proceeds of sale under this section, net expenses of sale 
(as defined in section 801 of the Act of June 2, 1951 (65 Stat. 59; 46 
U.S.C. App. 1241a)), shall be credited to the Vessels Operation 
Revolving Fund established by that section.''.
    (b) Costs of Sale.--Section 510(i) of the Merchant Marine Act of 
1936 (46 U.S.C. App. 1160(i)), is amended by inserting before 
``Notwithstanding'' the following: ``All costs incident to the sale of 
an obsolete vessel under this subsection and not covered by the gross 
proceeds of the sale may be paid from balances in the Fund derived from 
the sale of obsolete vessels. Proceeds to be credited to the Fund from 
the sale of a vessel under this subsection shall be net of the expenses 
of sale (as defined in section 801 of the Act of June 2, 1951 (65 Stat. 
59; 46 U.S.C. App. 1241a)).''.
    (c) Vessel Operations Revolving Fund.--
            (1) The first sentence of section 801 of the Act of June 2, 
        1951 (65 Stat. 59; 46 U.S.C. App. 1241a) is amended by striking 
        ``and betterment'' and inserting ``betterment, husbanding, and 
        sale''.
            (2) The second paragraph of such section is amended by 
        striking ``stated therein:'' and inserting ``stated therein; 
        Provided further, That such sums as may be determined to be 
        necessary by the Secretary of Transportation and that have not 
        been recovered from the gross proceeds from the sale of a 
        obsolete vessel in the National Defense Reserve Fleet, may be 
        transferred from this fund, but only if derived from the sale 
        of obsolete vessels, to the operations and training account of 
        the Maritime Administration for the purpose of paying all 
        expenses of sale including, but not limited to, cost of 
        administration, personnel, and travel related to the review of 
        bids, inspection of bidders' facilities, surveys for hazardous 
        materials, removal and disposal of hazardous materials, and 
        oversight of the scrapping account.''.

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