[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1510 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1510

 To revise the laws of the United States appertaining to United States 
                cruise vessels, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 1999

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

_______________________________________________________________________

                                 A BILL


 
 To revise the laws of the United States appertaining to United States 
                cruise vessels, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

    (a) Short Title.--This Act may be cited as the ``United States 
Cruise Ship Tourism Development Act of 1999''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Definitions.
                              TITLE I--OPERATIONS UNDER PERMIT
Sec. 101. Domestic cruise vessel.
Sec. 102. Domestic itinerary operating requirements.
Sec. 103. Certain operations prohibited.
Sec. 104. Limited employment of eligible cruise vessels in the 
                            coastwise trade of the United States.
Sec. 105. Priorities within domestic markets.
Sec. 106. Construction standards.
                              TITLE II--POST-PERMIT OPERATIONS OF 
                                        ELIGIBLE CRUISE VESSELS
Sec. 201. Continued operation in domestic itinerary requirements.
                              TITLE III--OTHER PROVISIONS
Sec. 301. Amendment of title XI of the Merchant Marine Act, 1936.
Sec. 302. Application with Jones Act and other Acts.
Sec. 303. Glacier Bay and other National Park Service area permits.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Eligible cruise vessel.--The term ``eligible cruise 
        vessel'' means a cruise vessel that--
                    (A) is documented under the laws of the United 
                States or the laws of another country;
                    (B) is not otherwise qualified to engage in the 
                coastwise trade between ports in the United States;
                    (C) was delivered after January 1, 1980;
                    (D) provides a full range of overnight 
                accommodations, entertainment, dining, and other 
                services for its passengers;
                    (E) has a fixed smoke detection and sprinkler 
                system installed throughout the accommodation and 
                service spaces, or will have such a system installed 
                within the time period required by the 1992 Amendments 
                to the Safety of Life at Sea Convention of 1974; and
                    (F) displaces--
                            (i) greater than 20,000 gross registered 
                        tons; or
                            (ii) more than 9,000 gross registered tons 
                        and has an all-suites luxury configuration with 
                        a minimum of 240 square feet per revenue room.
            (2) Itinerary.--The term ``itinerary'' means the route 
        travelled by a cruise vessel on a single voyage that begins at 
        the first port of embarkation for passengers on that voyage, 
        includes each port at which the vessel docks before the last 
        port of disembarkation for such passengers, and ends at that 
        last port of disembarkation.
            (3) Operating day.--The term ``operating day'' means a day 
        of the week on which a vessel embarks, transports, or 
        disembarks passengers.
            (4) Operator.--The term ``operator'' means the owner, 
        operator, or charterer.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
            (6) United states-flag vessel.--The term ``United States-
        flag vessel'' means a vessel documented under subsection (a) or 
        (d) of section 12102 of title 46, United States Code.

                    TITLE I--OPERATIONS UNDER PERMIT

SEC. 101. DOMESTIC CRUISE VESSEL.

    (a) In General.--Notwithstanding the provisions of section 8 of the 
Act of June 19, 1886 (46 U.S.C. App. 289), or any other provision of 
law, the Secretary may issue a permit for an eligible cruise vessel to 
operate in domestic itineraries in the transportation of passengers in 
the coastwise trade between ports in the United States.
    (b) Maximum Operating Days.--An eligible cruise vessel not 
documented under the laws of the United States that is operated under a 
permit issued by the Secretary under subsection (a) may not be operated 
under that permit for more than 200 operating days.
    (c) Expiration of Permit Authority.--Except as otherwise provided 
in section 201 of this Act, a permit issued by the Secretary under 
subsection (a) shall terminate December 31, 2006.
    (d) Operating Window.--The authority of the Secretary to issue a 
permit under subsection (a) begins on the day after the date of 
enactment of this Act and terminates on the day that is 3 years after 
that date.

SEC. 102. DOMESTIC ITINERARY OPERATING REQUIREMENTS.

    (a) In General.--Except as provided in section 104 of this Act, the 
Secretary may not approve an itinerary for a voyage commencing less 
than 1 year after the date of enactment of this Act requested by an 
eligible cruise vessel that is not documented under the laws of the 
United States.
    (b) Regulatory Requirements.--The Secretary may not issue a permit 
under section 101(a) for an eligible cruise vessel not documented under 
the laws of the United States unless the operator establishes to the 
satisfaction of the Secretary that, except as otherwise provided in 
this Act, the vessel will be operated in full compliance with all 
rules, regulations, and operating requirements relating to health, 
safety, environmental protection and other appropriate operational 
standards (as determined by the Secretary), that would apply to any 
United States-flag cruise vessel operating in domestic itineraries in 
the transportation of passengers under a permit issued under section 
101(a). The Secretary shall issue final rules under this section within 
180 days after the date of enactment of this Act.
    (c) Repairs.--
            (1) In general.--The Secretary may not issue a permit under 
        section 101(a) for an eligible cruise vessel unless the 
operator establishes to the satisfaction of the Secretary that--
                    (A) any repair, maintenance, alteration, or other 
                preparation of the vessel for operation under a permit 
                issued under section 101(a) has been, or will be, 
                performed in a United States shipyard; and
                    (B) any repair or maintenance of the vessel after a 
                permit is issued under that section and before the 
                expiration of the operating limitation period in 
                section 101(b) will be performed in a United States 
                shipyard.
            (2) Waiver.--The Secretary may waive the requirements of 
        paragraph (1) if the Secretary finds that the repair, 
        maintenance, alterations, or other preparation services are not 
        available in the United States or if an emergency dictates that 
        the ship proceed to a foreign port.
    (d) Escrow Account.--The Secretary may not issue a permit under 
section 101(a) for an eligible cruise vessel unless the operator agrees 
to deposit $5 for each passenger embarking on that vessel while 
operating under the permit into the escrow fund established under 
section 1108 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1270a).
    (e) Compliance.--If the Secretary determines that an eligible 
cruise vessel is not in compliance with any commitment made to the 
Secretary by its operator under this Act, the permit issued for that 
vessel under section 101(a) shall be null and void.

SEC. 103. CERTAIN OPERATIONS PROHIBITED.

    An eligible cruise vessel operating in domestic itineraries under a 
permit issued under section 101(a) may not--
            (1) operate as a ferry;
            (2) regularly carry for hire both passengers and vehicles 
        or other cargo; or
            (3) operate between or among the islands of Hawaii.

SEC. 104. LIMITED EMPLOYMENT OF FOREIGN-FLAG CRUISE SHIPS IN THE 
              COASTWISE TRADE OF THE UNITED STATES.

    (a) In General.--Notwithstanding section 12106 of title 46, United 
States Code, section 27 of the Merchant Marine Act, 1920 (46 U.S.C. 
App. 883), and section 8 of the Act of June 19, 1886 (46 U.S.C. App. 
289), the Secretary may approve the employment in the coastwise trade 
of the United States of an eligible cruise vessel operating under a 
permit issued under section 101(a) of this Act for repositioning as 
provided by under subsection (b) or for charter as provided by 
subsection (c).
    (b) Repositioning.--An eligible cruise vessel not documented under 
the laws of the United States operating under a permit issued under 
section 101(a) of this Act may be employed in the coastwise trade 
during the first year after the date of enactment of this Act for not 
more than 2 voyages, the coastwise trade portion of which does not 
exceed 2 weeks and includes transportation of passengers for hire--
            (1) from one coast of the United States through the Panama 
        Canal to another coast of the United States; or
            (2) along one coast of the United States during a voyage 
        between 2 foreign countries.
    (c) Charters.--An eligible cruise vessel not documented under the 
laws of the United States operating under a permit issued under section 
101(a) of this Act may be employed in the coastwise trade during the 
first year after the date of enactment of this Act if it is time-
chartered to a charterer that--
            (1) does not own or operate a cruise ship; and
            (2) is not affiliated with an owner or operator of a cruise 
        ship.
    (d) Priorities.--Section 105 applies to vessels employed in the 
coastwise trade under this section.

SEC. 105. PRIORITIES WITHIN DOMESTIC MARKETS.

    (a) In General.--The Secretary shall, by regulation, establish a 
priority system for cruise vessels providing passenger service in 
domestic itineraries within 180 days after the date of enactment of 
this Act.
    (b) Priority to U.S.-Built or U.S.-Rebuilt Vessels.--Under the 
regulations to be prescribed by the Secretary, a cruise vessel built or 
rebuilt in the United States and documented under the laws of the 
United States shall have priority over any other cruise vessel of 
comparable size operating in a comparable market under a permit issued 
under section 101(a).
    (c) Priority to U.S.-Flag Vessels.--The Secretary shall prescribe 
regulations under which a cruise vessel documented under the laws of 
the United States that is not built or rebuilt in the United States has 
priority over an eligible cruise vessel of comparable size not 
documented under the laws of the United States that is operating in a 
comparable market.
    (d) Factors Considered.--In determining and assigning priorities 
under the regulations, the Secretary shall consider, among other 
factors determined by the Secretary to be appropriate--
                    (A) the scope of a vessel's itinerary;
                    (B) the time frame within which the vessel will 
                serve a particular itinerary; and
                    (C) the size of the vessel.
    (e) Implementation.--
            (1) Itinerary submission required.--An eligible cruise 
        vessel may not be operated in a domestic itinerary unless the 
        operator has submitted a proposed itinerary for that vessel, in 
        accordance with this subsection, for cruise itineraries for the 
        calendar year beginning 2 years after the date on which the 
        itinerary is required to be submitted under paragraph (2).
            (2) Time and manner of submission.--Each operator of an 
        eligible cruise vessel to be operated in a domestic itinerary 
        shall submit a proposed itinerary to the Secretary in the form 
        required by the Secretary in February of each year beginning 
        after the date of enactment of this Act.
            (3) Revisions and later submissions.--The Secretary shall 
        permit late submissions and revisions of submissions after the 
        final list of approved itineraries is published under paragraph 
        (4)(C) and before the date that is 90 days before the start 
        date of a requested itinerary, but a late submission or 
        revision by a higher priority cruise vessel may not displace a 
        priority assigned on the basis of timely submission by a lower 
        priority cruise vessel. If operators of comparable vessels 
        submit comparable requests within 30 days of each other, the 
        priorities of this section apply at the discretion of the 
        Secretary.
            (4) Scheduling.--
                    (A) Action by secretary.--Within 60 days after 
                receiving an itinerary submitted under this subsection, 
                the Secretary shall--
                            (i) review the schedule for compliance with 
                        the priorities established by this section;
                            (ii) advise affected cruise ship operators 
                        of any specific itinerary that is not available 
                        and the reason it is not available; and
                            (iii) publish a proposed list of approved 
                        itineraries.
                    (B) Operators response.--If the Secretary advises 
                an operator under subparagraph (A)(ii) that a requested 
                itinerary is not available, the operator may respond to 
                the Secretary's advice within 30 days after it is 
                received by the operator by appealing the Secretary's 
                decision or by submitting a new itinerary proposal.
                    (C) Resolution of conflicts.--As soon as 
                practicable after the end of the 30-day period 
                described in subparagraph (B), the Secretary shall--
                            (i) resolve any appeals and consider new 
                        itinerary proposals;
                            (ii) advise cruise ship operators who 
                        responded under subparagraph (B) of the 
                        Secretary's decision with respect to the appeal 
                        or the new itinerary proposal; and
                            (iii) publish a final list of approved 
                        itineraries.
    (f) Itineraries Before Final List Is First Published.--
            (1) Requests.--For itineraries before the first calendar 
        year for which the Secretary publishes a final list of approved 
        itineraries under subsection (e), the operator of a cruise 
        vessel may submit a request for an itinerary to be sailed 
        before that calendar year.
            (2) Conflicting higher priority use.--If the itinerary 
        submitted by an operator under paragraph (1) conflicts with an 
        itinerary in use by a vessel with a higher priority under this 
        section, the Secretary shall disapprove the request and notify 
        the operator of the disapproval and the reason for the 
        disapproval within 5 days (Saturdays, Sundays, and legal public 
        holidays (as defined in section 6103 of title 5, United States 
        Code, excepted) after the request is received.
            (3) No initial conflict.--If the itinerary submitted by an 
        operator under paragraph (1) does not conflict with an 
        itinerary in use by a vessel with a higher priority under this 
        section, the Secretary shall publish the request and the 
        requested itinerary immediately. If, within 30 days after the 
        request is published, the operator of a cruise vessel with a 
        higher priority under this section requests the use of the 
        published itinerary, then the Secretary shall deny the 
        published request and approve the request for the higher 
        priority vessel. If no operator of a cruise vessel with a 
        higher priority under this section requests the use of the 
        published itinerary within 30 days after it is published, the 
        Secretary shall approve the requested itinerary and publish 
        notice of the approval.
            (4) Publication of interim itineraries.--Until the first 
        publication of a final list of approved itineraries under 
        subsection (e), the Secretary shall publish, on a quarterly 
        basis, a list of itineraries approved under this subsection.
    (g) Report.--The Secretary shall issue an annual report on the 
number of operating days used by each cruise vessel assigned a priority 
under this section.

SEC. 106. CONSTRUCTION STANDARDS.

    An eligible cruise vessel for which the Secretary has issued a 
permit under section 101(a) is deemed to be in compliance with the 
requirements of section 3309 of title 46, United States Code, if it 
meets the standards and conditions for the issuance of a control 
verification certificate for a cruise vessel documented under the laws 
of a foreign country embarking passengers in the United States.

      TITLE II--POST-PERMIT OPERATIONS OF ELIGIBLE CRUISE VESSELS

SEC. 201. CONTINUED OPERATION IN DOMESTIC ITINERARY REQUIREMENTS.

    (a) In General.--After the expiration of its period of operations 
under a permit issued under section 101(a), an eligible cruise vessel 
not documented under the laws of the United States may not operate in 
domestic itineraries unless it meets the following conditions:
            (1) Documentation.--The vessel has been issued a 
        certificate of documentation with a coastwise endorsement.
            (2) Operating crew; support staff.--Each member of the 
        vessel's operating crew licensed or certified by the United 
        States Coast Guard is a citizen or resident alien of the United 
        States as required by section 8103 of title 46, United States 
        Code, and each individual employed aboard the vessel who is not 
        a member of the operating crew is a citizen or permanent 
        resident of the United States.
    (b) Construction Plan.--The operator of an eligible cruise vessel 
issued a permit under section 101(a) of this Act shall demonstrate to 
the satisfaction of the Secretary that, as of the date on which the 
vessel is documented under the laws of the United States--
            (1) it has a plan for the construction of a cruise vessel 
        in the United States; or
            (2) it is a party to, or has made substantial progress 
        toward entering into, an enforceable contract for the 
        construction of such a vessel in the United States.
    (c) Expiration of Coastwise Endorsement.--The coastwise endorsement 
for an eligible cruise vessel operating under subsection (a) shall 
expire 24 months after the date on which construction is completed on 
the last vessel the operator of the eligible cruise vessel is obligated 
to construct in the United States under the contract described in 
subsection (b).
    (d) Reflagging Under Foreign Registry.--Notwithstanding section 
9(c) of the Shipping Act, 1916 (46 U.S.C. App. 808), the operator of an 
eligible cruise ship issued a certificate of documentation with a 
coastwise endorsement, or a cruise vessel constructed under a contract 
described in subsection (a)(4), may place that vessel under foreign 
registry. The Secretary shall revoke the coastwise endorsement for any 
such vessel placed under foreign registry under this subsection 
permanently. Any vessel the coastwise endorsement for which is revoked 
under this subsection is not eligible thereafter for coastwise 
endorsement.

                      TITLE III--OTHER PROVISIONS

SEC. 301. AMENDMENT OF TITLE XI OF THE MERCHANT MARINE ACT, 1936.

    (a) Risk Factor.--Section 1103(h) of the Merchant Marine Act, 1936 
(46 U.S.C. App. 1103(h)) is amended by adding at the end thereof the 
following:
            ``(5) For purposes of the risk factor described in 
        paragraph (3)(I), the Secretary shall consider an applicant for 
        a guarantee, or a commitment to guarantee, under subsection (a) 
        an obligation in connection with a contract described in 
        section 201(a)(4) of the United States Cruise Ship Tourism 
        Development Act of 1999 to possess the necessary operating 
        ability, experience, and expertise required if the applicant 
        demonstrates to satisfaction of the Secretary that its 
        personnel have the experience and ability to operate cruise 
        vessels.''.
    (b) Qualifications.--Section 1104A(b) of the Merchant Marine Act, 
1936 (46 U.S.C. App. 1274(b)) is amended by adding at the end thereof 
the following:
            ``For purposes of paragraph (1), the Secretary shall 
        consider an obligor with a contract described in section 
        201(b)(2) of the United States Cruise Ship Tourism Development 
        Act of 1999 to possess the ability necessary to the adequate 
        operation and maintenance of the cruise vessel that serves as 
        security for the guarantee of the Secretary if the obligor 
        demonstrates to the satisfaction of the Secretary that its 
        personnel have the experience and ability to operate cruise 
        vessels.''.

SEC. 302. APPLICATION WITH JONES ACT AND OTHER ACTS.

    (a) In General.--Nothing in this Act affects or otherwise modifies 
the authority contained in--
            (1) 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
            (2) Public Law 98-563 (46 U.S.C. App. 289c) permitting the 
        transportation of passengers between Puerto Rico and other 
        United States ports.
    (b) Jones Act.--Nothing in this Act affects or modifies the 
Merchant Marine Act, 1920 (46 U.S.C. App. 861 et seq.).

SEC. 303. GLACIER BAY AND OTHER NATIONAL PARK SERVICE AREA PERMITS.

    Notwithstanding the last sentence of section 3(g) of Public Law 91-
383 (16 U.S.C. 1a-2(g)), the Secretary of the Interior, after 
consultation with the Secretary of Transportation, may issue new or 
otherwise available permits to United States-flag vessels carrying 
passengers for hire to enter Glacier Bay or any other area within the 
jurisdiction of the National Park Service. Any such permit shall not 
affect the rights of any person that, on the date of enactment of this 
Act, holds a valid permit to enter Glacier Bay or such other area.
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