[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 668 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 668

To increase economic benefits to the United States from the activities 
                    of cruise ships visiting Alaska.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 1997

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

_______________________________________________________________________

                                 A BILL


 
To increase economic benefits to the United States from the activities 
                    of cruise ships visiting Alaska.

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

SECTION 1. FINDINGS.

    Congress finds the following:
            (1) It is in the interest of the United States--
                    (A) to maximize economic return from the growing 
                trade in cruise ships sailings to and from Alaska by 
                encouraging the use of United States labor, supplies, 
                berthing and repair facilities, and other services, and
                    (B) to encourage the growth of new enterprises 
                including the transportation of passengers on luxury 
                cruise ships between ports in Alaska.
            (2) In promoting additional economic benefits to the United 
        States from the cruise ship industry, there is a need to ensure 
        that existing employment and economic activity associated with 
        the Alaska Marine Highway System, United States-flag tour boats 
        operating from Alaskan ports, and similar United States 
        enterprises are protected from adverse impact.
            (3) Cruise ship sailings to Alaska comprise a vital and 
        growing segment of the United States travel industry. Since 
        1989, the number of tourists coming to Alaska via cruise ships 
        has increased by 86 percent. With almost 500,000 passengers per 
        year, Alaska has become the third most popular cruise 
        destination in the world, after the Caribbean and Europe.
            (4) The cruise ship industry is expected to grow at a rate 
        of 15 percent per year over the next several years. In 1996, 7 
        new cruise ships having a combined capacity to carry over 
        13,000 passengers entered the market.
            (5) The only United States-flag ocean cruise ship in 
        service is an aging vessel operating cruises only between the 
        Hawaiian Islands. No United States-flag cruise ships are 
        presently available to enter the Alaskan trade. Thus, all 
        cruise ships carrying passengers to and from Alaskan 
        destinations are foreign-flag vessels which are precluded, 
        under current law, from carrying passengers between United 
        States ports.
            (6) The City of Vancouver, British Columbia receives 
        substantial economic benefit by providing services to cruise 
        ships in the Alaskan trade. In 1996, there were 487 Alaska-
        related voyages, with over 445,000 passengers, up from 389,000 
        in 1995. Most of the voyages stopped in Vancouver. Vancouver 
        has benefited from the cruise ship industry through the direct 
        and indirect employment of almost 2,500 people, and through 
        revenues from goods and services of approximately $120,000,000 
        a year.
            (7) The transfer of cruise ship-based economic activity 
        from Vancouver, British Columbia to United States ports could 
        yield additional Federal revenues of nearly $100,000,000 a year 
        and additional State and local government revenues of 
        approximately $30,000,000.

SEC. 2. FOREIGN-FLAG CRUISE VESSELS.

    (a) Definitions.--For the purposes of this section:
            (1) Cruise vessel.--The term ``cruise vessel'' means a 
        vessel of greater than 5,000 deadweight tons which provides a 
        full range of luxury accommodations, entertainment, dining, and 
        other services for its passengers.
            (2) Foreign-flag cruise vessel.--The term ``foreign-flag 
        cruise vessel'' does not apply to a vessel which--
                    (A) regularly carries for hire both passengers and 
                vehicles or other cargo, or
                    (B) serves residents of their ports of call in 
                Alaska or other ports in the United States as a common 
                or frequently used means of transportation between 
                United States ports.
    (b) Waiver.--Notwithstanding the provisions of section 8 of the Act 
of June 19, 1886 (46 U.S.C. 289) or any other provision of law, 
passengers may be transported in foreign-flag cruise vessels between 
ports in Alaska and between ports in Alaska and other ports on the west 
coast of the contiguous States, except as otherwise provided by this 
section.
    (c) Coastwise Trade.--Upon a showing satisfactory to the Secretary 
of Transportation, by the owner or charterer of a United States-flag 
cruise vessel, that service aboard such vessel qualified to engage in 
the coastwise trade is being offered or advertised pursuant to a 
Certificate of Financial Responsibility for Indemnification of 
Passengers for Nonperformance of Transportation (46 App. U.S.C. 817(e)) 
for service in the coastwise trade between ports in Alaska or between 
ports in Alaska and other ports on the west coast of the contiguous 
States, or both, the Secretary shall notify the owner or charterer of 
one or more foreign-flag cruise vessels transporting passengers under 
authority of this section, if any, that the Secretary shall, within 1 
year from the date of notification, terminate such service. Coastwise 
privileges granted to any owner or charterer of a foreign-flag cruise 
vessel under this section shall expire on the 365th day following 
receipt of the Secretary's notification.
    (d) Notification.--Notifications issued by the Secretary under 
subsection (c) shall be issued to the owners or charterers of foreign-
flag cruise vessels--
            (1) in the reverse order in which foreign-flag cruise 
        vessels entered the coastwise service pursuant to this section 
        determined by the date of each vessel's first coastwise 
        sailing; and
            (2) in the minimum number needed to ensure that the 
        passenger-carrying capacity thereby removed from coastwise 
        service exceeds the passenger-carrying capacity of the United 
        States-flag cruise vessel which is entering the service.
    (e) Termination.--If, at the expiration of the 365-day period 
specified in subsection (c), the United States-flag cruise vessel that 
has offered or advertised service pursuant to a Certificate of 
Financial Responsibility for Indemnification of Passengers for 
Nonperformance of Transportation has not entered the coastwise 
passenger trade between ports in Alaska or between ports in Alaska and 
other ports on the west coast of the contiguous States, then the 
termination of service required by subsection (c) shall not take effect 
until 180 days following the entry into the trade by the United States-
flag cruise vessel.
    (f) Disclaimer.--Nothing in this section shall be construed as 
affecting or otherwise modifying the authority contained in the Act of 
June 30, 1961 (46 U.S.C. 289b) authorizing the transportation of 
passengers and merchandise in Canadian vessels between ports in Alaska 
and the United States.
                                 <all>