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






                                                       Calendar No. 556
105th CONGRESS
  2d Session
                                S. 2124

                          [Report No. 105-317]

   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

                           September 9, 1998

                Reported by Mr. McCain, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 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.

<DELETED>    (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.</DELETED>
    (a) Authority To Convey.--Notwithstanding 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 a purchaser for use as a 
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--
                <DELETED>    (A) the recipient pays consideration equal 
                to the domestic fair market value of the vessel as 
                determined by the Secretary;</DELETED>
                    (A) competitive procedures are used for sales under 
                this section, and the purchaser is selected on the 
                basis of sealed bids solicited and evaluated in 
                accordance with those procedures;
                    (B) the vessel is sold for not less than the fair 
                market value of the vessel in the United States, as 
                determined by the Secretary of Transportation;
                    <DELETED>(B) </DELETED>(C) The recipient agrees 
                that any repair, except for emergency repairs, 
                restoration, or reconstruction work for the vessel will 
                be performed in the United States;
                    <DELETED>(C) </DELETED>(D) 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
                    <DELETED>(D) </DELETED>(E) 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--
                <DELETED>    (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;</DELETED>
                    (A) competitive procedures are used for sales under 
                this section, and the purchaser is selected on the 
                basis of sealed bids solicited and evaluated in 
                accordance with those procedures;
                    (B) the vessel is sold for not less than the fair 
                market value of the vessel in the United States, as 
                determined by the Secretary of Transportation;
                    <DELETED>(B) </DELETED>(C) 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;
                    <DELETED>(C) </DELETED>(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;
                    <DELETED>(D) </DELETED>(E) 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
                    <DELETED>(E) </DELETED>(F) 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 <DELETED>national </DELETED>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) of this Act 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.

<DELETED>SEC. 5. SHIP SCRAPPING EXPENSES.</DELETED>

<DELETED>    (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.''.</DELETED>
<DELETED>    (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)).''.</DELETED>
<DELETED>    (c) Vessel Operations Revolving Fund.--</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (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.''.</DELETED>

SEC. 5. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
              INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    Section 1205(b) of the Merchant Marine Act of 1936 (46 U.S.C. App. 
1285(b)) is amended by adding at the end the following: ``The signature 
of the President (or of an official designated by the President) on the 
agreement shall be treated as an expression of the approval required 
under section 1202(a) to provide the insurance.''.

SEC. 6. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.

    (a) Authority To Convey.--The Secretary of Transportation may 
convey all right, title, and interest of the Federal Government in and 
to the vessel ex-USS LORAIN COUNTY (LST-1177) to the Ohio War Memorial, 
Inc., located in Sandusky, Ohio (in this section referred to as the 
``recipient''), for use as memorial to Ohio veterans.
    (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 Federal Government.
            (2) Required conditions.--The Secretary may not convey a 
        vessel under this section unless--
                    (A) the recipient agrees to hold the Government 
                harmless for any claims arising from exposure to 
                hazardous materials, including asbestos and 
                polychlorinated biphenyls, after 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
                    (B) the recipient has available, for use to restore 
                the vessel, in the form of cash, liquid assets, or a 
                written loan commitment, financial resources of at 
                least $100,000.
            (3) Additional terms.--The Secretary may require such 
        additional terms and conditions in connection with the 
        conveyance authorized by this section as the Secretary 
        considers appropriate.
    (c) Other Unneeded Equipment.--The Secretary may convey to the 
recipient of the vessel conveyed under this section any unneeded 
equipment from other vessels in the National Defense Reserve Fleet, for 
use to restore the vessel conveyed under this section to museum 
quality.




                                                       Calendar No. 556

105th CONGRESS

  2d Session

                                S. 2124

                          [Report No. 105-317]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 9, 1998

                        Reported with amendments