[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 803 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 803

To permit the transportation of passengers between United States ports 
  by certain foreign-flag vessels and to encourage United States-flag 
             vessels to participate in such transportation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 1997

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

_______________________________________________________________________

                                 A BILL


 
To permit the transportation of passengers between United States ports 
  by certain foreign-flag vessels and to encourage United States-flag 
             vessels to participate in such transportation.

    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 ``United States Cruise Tourism Act of 
1997''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) It is in the interest of the United States to maximize 
        economic return from the growing industry of pleasure cruises--
                    (A) by encouraging the growth of new cruise 
                itineraries between coastal cities in the United 
                States, and
                    (B) by encouraging the use of United States goods, 
                labor, and support services.
            (2) In maximizing the economic benefits to the United 
        States from increased cruise vessel tourism, there is a need to 
        ensure that existing employment and economic activity 
        associated with United States-flag vessels (including tour 
        boats, river boats, intracoastal waterway cruise vessels, and 
        ferries) are protected and to provide for the reemergence of a 
        United States-flag cruise vessel industry.
            (3) The pleasure cruise industry is one of the fastest 
        growing segments of the tourism industry and is expected to 
        grow at a rate of 5 percent a year over the next few years.
            (4) The United States-flag ocean cruise vessel fleet 
        consists of only a single vessel that tours the Hawaiian 
        Islands. As a result, all the cruise vessels carrying 
        passengers to and from United States ports are foreign-flag 
        vessels and the United States ports served are mostly ports 
        that are close enough to foreign ports to allow intermediate 
        calls.
            (5) Prohibiting cruises between United States ports by 
        foreign-flag vessels results in the loss of tourist dollars and 
        revenue for United States ports and greatly disadvantages 
        United States ports and coastal communities.

SEC. 3. FOREIGN-FLAG CRUISE VESSELS.

    (a) Definitions.--In this Act:
            (1) Coastwise trade.--The term ``coastwise trade'' means 
        the coastwise trade provided for in section 12106 of title 46, 
        United States Code and includes trade in the Great Lakes.
            (2) Cruise vessel.--The term ``cruise vessel'' means a 
        vessel of greater than 4,000 gross registered tons which 
        provides a full range of luxury accommodations, entertainment, 
        dining, and other services for its passengers.
            (3) Foreign-flag cruise vessel.--The term ``foreign-flag 
        cruise vessel'' does not apply to a vessel which--
                    (A) provides ferry services or intracoastal 
                waterway cruises;
                    (B) regularly carries for hire both passengers and 
                vehicles or other cargo; or
                    (C) serves residents of the vessel's ports of call 
                in the United States as a common or frequently used 
                means of transportation between United States ports.
            (4) Repair and maintenance service.--The term ``repair and 
        maintenance service'' includes alterations and upgrades.
    (b) Waiver.--Notwithstanding the provisions of section 8 of the Act 
of June 19, 1886 (24 Stat. 81, Chapter 421; 46 U.S.C. App. 289), or any 
other provision of law, and except as otherwise provided by this 
section, the Secretary of Transportation (in this Act referred to as 
the ``Secretary'') may approve the transportation of passengers on 
foreign-flag cruise vessels not otherwise qualified to engage in the 
coastwise trade between ports in the United States, directly or by way 
of a foreign port.
    (c) Exceptions.--
            (1) In general.--The Secretary may not approve the 
        transportation of passengers on a foreign-flag cruise vessel 
        pursuant to this section with respect to any coastwise trade 
        that is being served by a United States-flag cruise vessel.
            (2) United states-flag service initiated after approval of 
        foreign-flag vessel.--Upon a showing to the Secretary, by a 
        United States-flag cruise vessel owner or charterer, that 
        service aboard a cruise 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 from the 
        Federal Maritime Commission (issued pursuant to section 3 of 
        Public Law 89-777; 46 U.S.C. App. 817e) for service in the 
        coastwise trade on an itinerary substantially similar to that 
        of a foreign-flag cruise vessel transporting passengers under 
        authority of this section, the Secretary shall, in accordance 
        with subsection (d)(2), notify the owner or charterer of the 
        foreign-flag cruise vessel that the Secretary will, within 3 
        years after the date of notification, terminate such service.
    (d) Termination.--
            (1) In general.--Coastwise trade privileges granted to such 
        owner or charterer of a foreign-flag cruise vessel under this 
        section shall expire on the date that is 3 years after the date 
        of the Secretary's notification described in subsection (c)(2).
            (2) Order of termination.--Any notification issued by the 
        Secretary under this subsection shall be issued to the owner or 
        charterer of a foreign-flag cruise vessel--
                    (A) in the reverse order in which the foreign-flag 
                cruise vessel entered service in the coastwise trade 
                under this section, determined by the date of the 
                vessel's first coastwise sailing; and
                    (B) in the minimum number necessary to ensure that 
                the passenger-carrying capacity thereby removed from 
                the coastwise trade service exceeds the passenger-
                carrying capacity of the United States-flag cruise 
                vessel entering the service.
            (3) Exception.--If, at the expiration of the 3-year period 
        specified in paragraph (1), the United States-flag cruise 
        vessel that has been offering or advertising service pursuant 
        to a certificate described in subsection (c)(2) has not entered 
        the coastwise trade described in subsection (c)(2), then the 
        termination of service required by paragraph (1) shall not take 
        effect until 180 days after the date of the entry into that 
        coastwise trade service by the United States-flag cruise 
        vessel.
    (e) Requirement For Repairs In United States Shipyards.--
            (1) In general.--The owner or charterer of a foreign-flag 
        cruise vessel that is qualified to provide coastwise trade 
        service under this section is required to have repair and 
        maintenance service for the vessel performed in the United 
        States during the period that such vessel is qualified for such 
        coastwise trade service, except in a case in which the vessel 
        requires repair and maintenance service while at a distant 
        foreign port (as defined in section 4.80a(a) of title 19, Code 
        of Federal Regulations (or any corresponding similar regulation 
        or ruling)).
            (2) Action if requirement not met.--
                    (A) General rule.--If the Secretary determines that 
                the owner or charterer has not met the repair and 
                maintenance service requirement described in paragraph 
                (1), the Secretary shall terminate the coastwise trade 
                privileges granted to the owner or charterer under this 
                section.
                    (B) Waiver.--The Secretary may waive the repair and 
                maintenance service requirement if the Secretary finds 
                that--
                            (i) the repair and maintenance service is 
                        not available in the United States, or
                            (ii) an emergency prevented the owner or 
                        charterer from obtaining the service in the 
                        United States.
    (f) Alien Crewmen.--Section 252 of the Immigration and Nationality 
Act (8 U.S.C. 1282) is amended--
            (1) in subsection (a), by redesignating paragraphs (1) and 
        (2) as subparagraphs (A) and (B);
            (2) by inserting ``(1)'' immediately after ``(a)'';
            (3) in subsection (a)(1) (as redesignated), in the second 
        sentence, by inserting ``, except as provided in paragraph (2), 
        and'' after ``subsection (b),'';
            (4) by adding at the end of subsection (a)(1) (as 
        redesignated), the following:
    ``(2) An immigration officer may extend for a period or periods of 
up to 6 months each a conditional permit to land that is granted under 
paragraph (1) to an alien crewman employed on a vessel if the owner or 
charterer of the vessel requests the extension and the immigration 
officer determines that the extension is necessary to maintain the 
vessel in the coastwise trade between ports in the United States, 
directly or by way of a foreign port.''; and
            (5) in subsection (b), by striking ``subsection (a)(1)'' 
        and inserting ``subsection (a)(1)(A)''.
    (g) Disclaimer.--
            (1) In general.--Nothing in this Act shall be construed as 
        affecting or otherwise modifying the authority contained in--
                    (A) Public Law 87-77 (46 U.S.C. App. 289b) 
                authorizing the transportation of passengers and 
                merchandise in Canadian vessels between ports in Alaska 
                and the United States; or
                    (B) Public Law 98-563 (46 U.S.C. App. 289c) 
                permitting the transportation of passengers between 
                Puerto Rico and other United States ports.
            (2) Jones act.--Except as otherwise expressly provided in 
        this Act, nothing in this Act shall be construed as affecting 
        or modifying the provisions of the Merchant Marine Act, 1920.
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