[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2046 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2046

To reform the coastwise, intercoastal, and noncontiguous trade shipping 
                     laws, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                 May 26 (legislative day, May 25), 2001

Mr. Smith of Michigan introduced the following bill; which was referred 
to the Committee on Transportation and Infrastructure, and in addition 
  to the Committee on Armed Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To reform the coastwise, intercoastal, and noncontiguous trade shipping 
                     laws, 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; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Coastal Shipping 
Competition Act''.
    (b) Findings.--The Congress finds the following:
            (1) Efficient, competitive, broadly available waterborne 
        cargo transportation service is an essential component of a 
        national intermodal transportation system, and such services 
        should be promoted by the United States.
            (2) The cost of building ships in the United States is so 
        uncompetitive with international shipbuilders that it is 
        effectively prohibiting the growth and modernization of the 
        Jones Act fleet.
            (3) The decline of ships of over 1,000 tons in the Jones 
        Act fleet as well as the resulting decrease in the number of 
        sailors represents a diminution in emergency sealift capacity 
        in times of national emergency.
            (4) In the last several decades, the size of the active 
        United States domestic deepwater fleet has shrunk 
        substantially, to a total today of only 130 self-propelled 
        oceangoing vessels of over 1,000 tons and 59 vessels in the 
        Great Lakes.
            (5) The result has been shipping shortages, higher prices, 
        and significant commercial transportation inefficiencies, all 
        of which can be alleviated, without any cost to the taxpayer, 
        by increasing competition in domestic deepwater shipping.
            (6) Such inefficiencies reduce our ability to move good, 
        such as agriculture and petroleum products, and undermine the 
        competitive position of a broad range of American businesses, 
        particularly in potential domestic markets, versus their 
        foreign competition. These shipping shortages and higher-than-
        market prices have led to the loss of American jobs to overseas 
        competitors able to purchase transportation services on the 
        international market.
            (7) Lack of access to adequate deepwater commercial 
        waterborne transportation alternatives suppresses economic 
        activity in an amount of between $4,200,000,000 and 
        $10,000,000,000 annually and causes the loss of associated tax 
        revenue, according to a study by the United States 
        International Trade Commission.
            (8) American mariners and water carriers are dedicated to 
        providing the high-quality service that their customers 
        deserve, but flexibility in capital investment is needed to 
        acquire the modern equipment essential to satisfy the current 
        and potential demand for superior deepwater domestic cargo 
        transportation service.
            (9) Eliminating international capital investment 
        restrictions on the deepwater domestic transportation industry 
        will help American ocean transportation companies to provide 
        the world class service American manufacturers, farmers, 
        consumers, and taxpayers deserve.
            (10) Similarly, permitting domestic transportation service 
        providers to purchase their vessels on the international market 
        without penalty will lower their operating expenses, creating 
        savings which they can pass on to their customers in the form 
        of lower prices and improved efficiency.
            (11) Allowing American domestic deepwater commercial 
        carriers to comply with appropriate international operating and 
        construction standards to which the United States is a party 
        through treaties and conventions will further lower operating 
        expenses and reduce the cost of the service provided by those 
        companies.
            (12) Rationalizing the tort and liability provisions 
        governing the maritime industry will help reduce the insurance 
        costs of employers and diminish the need for costly and 
        contentious litigation to settle worker injury claims.
            (13) Liberalizing the regulations currently governing the 
        domestic deepwater transportation of cargo will encourage a 
        renaissance in the Nation's waterborne coastal trades, reducing 
        highway congestion, road damage, and air and noise pollution, 
        and will substantially contribute to the ability of American 
        commercial enterprise to compete against foreign companies.

SEC. 2. MISCELLANEOUS AMENDMENTS TO DEFINITIONS IN TITLE 46, UNITED 
              STATES CODE.

    Section 2101 of title 46, United States Code, is amended--
            (1) by striking paragraph (3a) and inserting the following:
            ``(3a) `citizen of the United States' means--
                    ``(A)(i) a national of the United States, as 
                defined in section 101(a)(22) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(22));
                    ``(ii) a corporation established under the laws of 
                the United States or under the laws of a State, 
                territory, district, or possession of the United 
                States, that has--
                            ``(I) a president or other chief executive 
                        officer and chairman of the board of directors 
                        of that corporation who are citizens of the 
                        United States; and
                            ``(II) a board of directors on which no 
                        more of its directors than a minority of 
the number necessary to constitute a quorum are noncitizens;
                    ``(iii) a partnership existing under the laws of a 
                State, territory, district, or possession of the United 
                States that has at least one general partner who is a 
                citizen of the United States;
                    ``(iv) a trust that has at least one trustee who is 
                a citizen of the United States; or
                    ``(v) an association, joint venture, limited 
                liability company, or other entity that has at least 
                one member who is a citizen of the United States; but
                    ``(B) such term does not include--
                            ``(i) with respect to a person or entity 
                        under clause (ii), (iii), (iv), or (v) of 
                        subparagraph (A), any parent corporation, 
                        partnership, or other person (other than an 
                        individual) or entity that is a second- or 
                        higher-tier owner (as that term is defined by 
                        the Secretary) of the person or entity 
                        described in clauses (ii), (iii), or (v), as 
                        applicable; or
                            ``(ii) with respect to a trust under clause 
                        (iv), any beneficiary of the trust.'';
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(4a) `coastwise trade'--
                    ``(A) subject to subparagraph (B), means the 
                transportation by water of merchandise or passengers, 
                or the towing of a vessel between points, or dredging 
                operations embraced within the coastwise laws of the 
                United States--
                            ``(i) in the United States (including any 
                        district, territory, or possession of the 
                        United States);
                            ``(ii) on the Great Lakes (including any 
                        tributary or connecting waters of the Great 
                        Lakes and the Saint Lawrence Seaway);
                            ``(iii) on the subjacent waters of the 
                        Outer Continental Shelf subject to the Outer 
                        Continental Shelf Lands Act (43 U.S.C. 1331 et 
                        seq.); and
                            ``(iv) in the noncontiguous trade; and
                    ``(B) does not include the activities specified in 
                subparagraph (A) on the navigable waters included in 
                the inland waterways trade except for activities 
                specified in subparagraph (A) that occur on mixed 
                waters.'';
            (3) by inserting after paragraph (11c) the following new 
        paragraph:
            ``(11d) `foreign qualified vessel' means a vessel--
                    ``(A) registered in a foreign country;
                    ``(B) the owner of which is a citizen of the United 
                States; and
                    ``(C) employs United States citizens to the extent 
                required of vessels registered under section 12102 of 
                this title.'';
            (4) by redesignating paragraph (14a) as paragraph (14b);
            (5) by inserting after paragraph (14) the following new 
        paragraph:
            ``(14a) `inland waterways trade'--
                    ``(A) means--
                            ``(i) the transportation of merchandise or 
                        passengers on the navigable rivers, canals, 
                        lakes other than the Great Lakes, or other 
                        waterways inside the Boundary Line;
                            ``(ii) the towing of barges by towing 
                        vessels in the waters specified in clause (i); 
                        or
                            ``(iii) engaging in dredging operations in 
                        the waters specified in clause (i); and
                    ``(B) includes any activity specified in 
                subparagraph (A) that is conducted in mixed waters.'';
            (6) by redesignating paragraph (15a) as paragraph (15b);
            (7) by inserting after paragraph (15) the following:
            ``(15a) `mixed waters' means--
                    ``(A) the waters of the harbors and ports both on 
                the coasts and on the Great Lakes of the United States; 
                and
                    ``(B) the rivers, canals, and other waterways 
                tributary to the Great Lakes or to the coastal harbors 
                and coasts of the United States inside the Boundary 
                Line,
        that the Secretary of Transportation determines to be navigable 
        by oceangoing vessels.'';
            (8) by redesignating paragraph (17b) as paragraph (17c);
            (9) by inserting after paragraph (17a) the following:
            ``(17b) `noncontiguous trade' means transportation by water 
        of merchandise or passengers, or towing by towing vessels--
                    ``(A) between--
                            ``(i) a point in the 48 continental States 
                        and the District of Columbia; and
                            ``(ii) a point in Hawaii, Alaska, Puerto 
                        Rico, Guam, the Virgin Islands, American Samoa, 
                        the Northern Mariana Islands, or any other 
                        noncontiguous territory or possession of the 
                        United States, as embraced within the coastwise 
                        laws of the United States; or
                    ``(B) between two points described in subparagraph 
                (A)(ii).'';
            (10) in paragraph (21)(A)--
                    (A) in clause (ii), by striking ``or'' after the 
                semicolon;
                    (B) in clause (iii), by inserting ``or'' after the 
                semicolon; and
                    (C) by adding at the end the following new clause:
                            ``(iv) an individual who--
                                    ``(I) is a member of the family or 
                                a guest of the owner or charterer; and
                                    ``(II) is not a passenger for 
                                hire;'';
            (11) by striking paragraph (40) and inserting the 
        following:
            ``(40) `towing vessel' means any commercial vessel engaged 
        in, or that a person intends to use to engage in, the service 
        of--
                    ``(A) towing, pulling, pushing, or hauling 
                alongside (or any combination thereof); or
                    ``(B) assisting in towing, pulling, pushing, or 
                hauling alongside.''; and
            (12) by inserting after paragraph (40) the following new 
        paragraphs:
            ``(40a) `towing of a vessel by a towing vessel between 
        points' means attaching a towing vessel to a towed vessel 
        (including any barge) at one point and releasing the towed 
        vessel from the towing vessel at another point, regardless of 
        the origin or ultimate destination of either the towed vessel 
        or the towing vessel.
            ``(40b) `transportation of merchandise or passengers by 
        water between points' means, without regard to the origin or 
        ultimate destination of the merchandise or passengers 
        involved--
                    ``(A) in the case of merchandise, loading 
                merchandise at one point and permanently unloading the 
                merchandise at another point; or
                    ``(B) in the case of passengers, embarking 
                passengers at one point and permanently disembarking 
                the passengers at another point.''.

SEC. 3. DOCUMENTATION.

    (a) Definitions.--Section 12101(b)(2) of title 46, United States 
Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) `license', `enrollment and license', `license for the 
        coastwise (or coasting) trade', `enrollment and license for the 
        coastwise (or coasting) trade', and `enrollment and license to 
        engage in the foreign and coastwise (or coasting) trade on the 
        northern, northeastern, and northwestern frontiers, otherwise 
        than by sea' mean a coastwise endorsement as provided in 
        section 12106.''; and
            (2) by redesignating paragraph (4) as paragraph (3).
    (b) Vessels Eligible for Documentation.--Section 12102(a) of title 
46, United States Code, is amended--
            (1) by striking all that precedes paragraph (5) and 
        inserting the following:
    ``(a) A vessel of at least 5 net tons that is not registered under 
the laws of a foreign country or that is not titled in a State is 
eligible for documentation if--
            ``(1)(A) the vessel is owned by an individual who is a 
        citizen of the United States, or by a corporation, association, 
        trust, joint venture, partnership, limited liability company, 
        or other entity that is a citizen of the United States; and
            ``(B) the owner of the vessel is capable of holding title 
        to a vessel under the laws of the United States or under the 
        laws of a State;''; and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (2) and (3), respectively.
    (c) Coastwise Endorsements.--
            (1) In general.--Section 12106 of title 46, United States 
        Code, is amended--
                    (A) by amending the section heading to read as 
                follows:
``Sec. 12106. Coastwise endorsements and certificates'';
                    (B) by redesignating subsections (c), (d), and (e) 
                as subsections (d), (e), and (f); and
                    (C) by striking subsections (a) and (b) and 
                inserting the following:
    ``(a) Coastwise Endorsements.--A certificate of documentation may 
be endorsed with a coastwise endorsement for a vessel that is eligible 
for documentation.
    ``(b) Coastwise Certificates.--
            ``(1) In general.--Any of the following vessels may be 
        issued a certificate to engage in the coastwise trade if the 
        Secretary of Transportation makes a finding, pursuant to 
        information obtained and furnished by the Secretary of State, 
        that the governments of the nations of registry and of the 
        citizenship or nationality of each owner of record (and, if 
        that owner is not an individual or individuals, then the 
        individual or individuals at the ultimate tier of ownership) of 
        such vessel extend reciprocal privileges to vessels of the 
        United States to engage in the transportation of merchandise or 
        passengers (or both) in its or their coastwise trades:
                    ``(A) A foreign qualified vessel.
                    ``(B) A vessel of foreign registry if that vessel 
                engages irregularly in the coastwise trade of the 
                United States.
            ``(2) Vessel engaging irregularly in the coastwise trade.--
        For purposes of this subsection, a vessel engages irregularly 
        in the coastwise trade of the United States if that vessel--
                    ``(A) during any 60-day period does not make, in 
                the aggregate, more than four calls to United States 
                ports;
                    ``(B) during any calendar year does not make, in 
                the aggregate, more than six calls to United States 
                ports; and
                    ``(C) is owned by any person whose vessels make not 
                more than 18 calls to United States ports during any 
                calendar year.
        For purposes of subparagraph (C), all persons treated as a 
        single employer under subsection (a) or (b) of section 52 of 
        the Internal Revenue Code of 1986 shall be treated as 1 person 
        for purposes of the preceding sentence.
    ``(c) Employment of a Vessel in the Coastwise Trade.--Subject to 
the applicable laws of the United States regulating the coastwise trade 
and trade with Canada, only a vessel with a certificate of 
documentation endorsed with a coastwise endorsement or with a 
certificate issued under subsection (b) may be employed in the 
coastwise trade.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 121 of title 46, United States Code, is 
amended by striking the item relating to section 12106 and inserting 
the following:

``12106. Coastwise endorsements and certificates.''.
    (d) Inland Waterways Endorsements.--
            (1) In general.--Chapter 121 of title 46, United States 
        Code, is amended by inserting after section 12106 the following 
        new section:
``Sec. 12107. Inland waterways endorsements
    ``A certificate of documentation may be endorsed with an inland 
waterways endorsement for a vessel that--
            ``(1) is eligible for documentation; and
            ``(2)(A) was built in the United States; or
            ``(B) was not built in the United States, but--
                    ``(i) was captured in war by citizens of the United 
                States and lawfully condemned as prize;
                    ``(ii) was adjudged to be forfeited for a breach of 
                the laws of the United States; or
                    ``(iii) is qualified for documentation under 
                section 4136 of the Revised Statutes (46 App. U.S.C. 
                14).''.
            (2) Conforming amendment.--The table of sections at the 
        beginning of chapter 121 of title 46, United States Code, is 
        amended by inserting after the item relating to section 12106 
        the following:

``12107. Inland waterways endorsements.''.
    (e) Limitations on Operations Authorized by Certificates.--Section 
12110(b) of title 46, United States Code, is amended--
            (1) by striking ``coastwise trade'' and inserting 
        ``coastwise trade or inland waterways trade''; and
            (2) by striking ``that trade'' and inserting ``those 
        trades''.

SEC. 4. TRANSPORTATION OF MERCHANDISE IN THE COASTWISE AND INLAND 
              WATERWAYS TRADES.

    (a) In General.--Section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 883) is amended to read as follows:

``SEC. 27. PROHIBITION.

    ``No merchandise, including merchandise owned by the United States 
Government, a State (as defined in section 2101 of title 46, United 
States Code), or a political subdivision of a State, and including 
material without value, shall be transported by water, on penalty of 
forfeiture of the merchandise (or a monetary amount not to exceed the 
value of the merchandise, as determined by the Secretary of the 
Treasury, or the actual cost of the transportation, whichever is 
greater, to be recovered from any cosigner, seller, owner, importer, 
consignee, agent, or other person that transports or causes the 
merchandise to be transported by water)--
            ``(1) in the coastwise trade, in any vessel other than--
                    ``(A) a vessel documented with a coastwise 
                endorsement under section 12106(a) of title 46, United 
                States Code; or
                    ``(B) a vessel that has been issued a coastwise 
                certificate under section 12106(b) of title 46, United 
                States Code, that is in effect for engaging in the 
                transportation of merchandise; or
            ``(2) in the inland waterways trade in any vessel other 
        than a vessel documented with an inland waterways endorsement 
        under section 12107 of title 46, United States Code.''.
    (b) Repeal.--Section 27A of the Merchant Marine Act, 1920 (46 App. 
U.S.C. 883-1) is repealed.

SEC. 5. TRANSPORTATION OF PASSENGERS.

    (a) In General.--Section 8 of the Act of June 19, 1886 (24 Stat. 
81, chapter 421; 46 U.S.C. App. 289) is amended to read as follows:

``SEC. 8. PROHIBITION.

    ``No passengers shall be transported by water, on penalty of $200 
for each passenger so transported or the actual cost of the 
transportation, whichever is greater, to be recovered from the vessel 
so transporting the passenger--
            ``(1) in the coastwise trade, in any vessel other than--
                    ``(A) a vessel documented with a coastwise 
                endorsement under section 12106 of title 46, United 
                States Code; or
                    ``(B) a vessel that has been issued a coastwise 
                certificate under section 12106(b) of title 46, United 
                States Code, that is in effect for engaging in the 
                transportation of merchandise; and
            ``(2) in the inland waterways trade, in any vessel other 
        than a vessel documented with an inland waterways endorsement 
        under section 12107 of title 46, United States Code.''.
    (b) Repeals.--The following provisions are repealed:
            (1) The Act of April 26, 1938 (52 Stat. 223, chapter 174; 
        46 U.S.C. App. 289a).
            (2) Section 12(22) of the Maritime Act of 1981 (46 U.S.C. 
        App. 289b).
            (3) Public Law 98-563 (46 U.S.C. App. 289c).

SEC. 6. TOWING AND SALVAGING OPERATIONS.

    Section 4370 of the Revised Statutes (46 U.S.C. App. 316) is 
amended--
            (1) by striking subsection (b), and by redesignating 
        subsections (c), (d), and (e) as subsections (b), (c), and (d);
            (2) by amending subsections (a), (b), and (c) to read as 
        follows:
    ``(a) No vessel (including any barge), other than a vessel in 
distress, may be towed--
            ``(1) in the coastwise trade or, when the towed vessel is 
        transporting valueless material or any dredged material, 
        regardless of whether it has commercial value, from a point or 
        place in the United States or a point or place on the high seas 
        within the Exclusive Economic Zone as defined in the 
        Presidential Proclamation of March 10, 1983, to another point 
        or place in the United States or a point or place on the high 
        seas within the Exclusive Economic Zone, by any vessel other 
        than--
                    ``(A) a vessel documented with a coastwise 
                endorsement under section 12106(a) of title 46, United 
                States Code;
                    ``(B) a vessel registered in a foreign country, if 
                the Secretary of Transportation makes a finding, 
                pursuant to information obtained and furnished by the 
                Secretary of State, that the governments of the nations 
                of registry and of the citizenship or nationality of 
                each owner of record (and if such owner is not an 
                individual, than the individual at the ultimate tier of 
                ownership) of such vessel extend reciprocal privileges 
                to vessels of the United States to tow vessels 
                (including barges) in the coastal waters of those 
                countries; or
            ``(2) in the inland waterways trade by any vessel other 
        than a vessel documented with an inland waterways endorsement 
        under section 12107 of title 46, United States Code.
    ``(b)(1) The owner and master of any vessel that tows another 
vessel (including a barge) in violation of this section shall each be 
liable to the United States Government for a civil penalty in an amount 
not less than $250 and not greater than $1,000. The penalty shall be 
enforceable through the district court of the United States for any 
district in which the offending vessel is found.
    ``(2) A penalty specified in paragraph (1) shall constitute a lien 
upon the offending vessel, and that vessel shall not be granted 
clearance until that penalty is paid.
    ``(3) In addition to the penalty specified in paragraph (1), the 
offending vessel shall be liable to the United States Government for a 
civil penalty in an amount equal to $50 per ton of the measurement of 
the vessel towed in violation of this section, which shall be 
recoverable in a libel or other enforcement action conducted through 
the district court for the United States for the district in which the 
offending vessel is found.
    ``(c)(1) No vessel shall engage in salvaging operations on the 
Atlantic or Pacific coast of the United States, in any portion of the 
Great Lakes or their connecting or tributary waters, including any 
portion of the Saint Lawrence River through which the international 
boundary line extends, or in territorial waters of the United States on 
the Gulf of Mexico, except--
            ``(A) a vessel that is documented under the laws of the 
        United States;
            ``(B) a vessel registered in a foreign country, if the 
        Secretary of Transportation makes a finding, pursuant to 
        information obtained and furnished by the Secretary of State, 
        that the governments of the nations of registry and the 
        citizenship or nationality of each owner of record (and if such 
        owner is not an individual, than the individual at the ultimate 
        tier of ownership) of such vessel extend reciprocal privileges 
        to vessels of the United States to engage in salvaging 
        operations in the coastal waters of those countries;
            ``(C) a vessel that is authorized by a treaty or in 
        accordance with the provisions of section 725 of this title;
            ``(D) a vessel that is aiding or saving vessels or lives in 
        distress; or
            ``(E) a vessel for which the Commissioner of Customs is 
        satisfied that no suitable vessel wholly owned by a person or 
        persons who are citizens of the United States and documented 
        under the laws of the United States is available in any 
        particular locality and authorizes the use of a foreign vessel 
        or vessels in salvaging operation or operations in that 
        locality.
    ``(2) A vessel operated in violation of this subsection is subject 
to seizure and forfeiture by and to the United States Government in a 
libel or other enforcement action in the district court of the United 
States for the district in which the offending vessel is found.''.

SEC. 7. DREDGING OPERATIONS.

    The first section of the Act of May 28, 1906 (34 Stat. 204, chapter 
2566; 46 U.S.C. App. 292), is amended to read as follows:

``SECTION 1. VESSELS THAT MAY ENGAGE IN DREDGING.

    ``(a) In General.--A vessel may engage in dredging operations--
            ``(1) on the navigable waters included in the coastwise 
        trade, if--
                    ``(A) the vessel is documented with a coastwise 
                endorsement under section 12106(a) of title 46, United 
                States Code; or
                    ``(B) the vessel is registered in a foreign country 
                and the Secretary of Transportation makes a finding, 
                pursuant to information obtained and furnished by the 
                Secretary of State, that the governments of the nations 
                of registry and the citizenship or nationality of each 
                owner of record (and if such owner is not an 
                individual, than the individual at the ultimate tier of 
                ownership) of such vessel extend reciprocal privileges 
                to vessels of the United States to engage in dredging 
                operations in the coastal waters of those countries;
            ``(2) on the navigable waters included in the inland 
        waterways trade, if--
                    ``(A) the vessel is documented with an inland 
                waterways endorsement under section 12107 of title 46, 
                United States Code; or
                    ``(B) the vessel would be qualified to be 
                documented under the laws of the United States with a 
                coastwise endorsement under section 12106(a) of title 
                46, United States Code, except that the vessel was not 
                built in the United States.
    ``(b) Penalties.--When a vessel is operated in knowing violation of 
this section, that vessel and its equipment are liable to seizure by 
and forfeiture to the United States Government.''.

SEC. 8. CITIZENSHIP AND TRANSFER PROVISIONS.

    (a) Citizenship of Corporations, Partnerships, and Associations.--
Section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802) is amended--
            (1) in subsection (a)--
                    (A) by inserting a period after ``possession 
                thereof''; and
                    (B) by striking all that follows the period 
                inserted in subparagraph (A) through the end of the 
                subsection; and
            (2) by striking subsection (c).
    (b) Approval of Transfer of Registry or Operation Under Authority 
of a Foreign Country or for Scrapping in a Foreign Country; 
Penalties.--Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808) is 
amended--
            (1) by amending subsection (d)(4) to read as follows:
            ``(4) A person that charters, sells, or transfers a vessel, 
        or interest in or control of a vessel, or places a documented 
        vessel under foreign registry, or operates that vessel under 
        the authority of a foreign country, in violation of this 
        section is liable to the United States Government for a civil 
        penalty of not more than $10,000 for each violation.''; and
            (2) by adding at the end the following:
    ``(e) To promote the transfer of foreign vessels to be documented 
under chapter 121 of title 46, United States Code, the Secretary may 
grant approval under subsection (c) before the date the vessel is 
documented.''.

SEC. 9. LABOR PROVISIONS.

    (a) Liability for Injury or Death of Master or Crew Member.--
Section 20(a) of the Act of March 4, 1915 (38 Stat. 1185, chapter 153; 
46 U.S.C. App. 688(a)), is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by adding at the end of paragraph (1) (as designated 
        under paragraph (1) of this subsection) the following new 
        sentence: ``In an action brought under this subsection against 
        a defendant employer that does not reside or maintain an office 
        in the United States (including any territory or possession of 
        the United States) and that engages in any enterprise that 
makes use of one or more ports in the United States (as defined in 
section 2101 of title 46, United States Code), jurisdiction shall be 
under the district court most proximate to the place of the occurrence 
of the personal injury or death that is the subject of the action.''; 
and
            (3) by adding at the end the following new paragraph:
    ``(2)(A) The employer of a master or member of the crew of a 
vessel--
            ``(i) may, at the election of the employer, participate in 
        an authorized compensation plan under the Longshore and Harbor 
        Workers' Compensation Act (33 U.S.C. 901 et seq.); and
            ``(ii) if the employer makes an election under clause (i), 
        notwithstanding section 2(3)(G) of the Longshore and Harbor 
        Workers' Compensation Act (33 U.S.C. 902(3)(G)), shall be 
        subject to that Act.
    ``(B) If an employer makes an election, in accordance with 
subparagraph (A), to participate in an authorized compensation plan 
under the Longshore and Harbor Workers' Compensation Act--
            ``(i) a master or crew member employed by that employer 
        shall be considered to be an employee for the purposes of that 
        Act; and
            ``(ii) the liability of that employer under that Act to the 
        master or crew member, or to any person otherwise entitled to 
        recover damages from the employer based on the injury, 
        disability, or death of the master or crew member, shall be 
        exclusive and in lieu of all other liability.''.
    (b) Minimum Requirements.--All vessels, whether documented in the 
United States or not, operating in the coastwise trade of the United 
States shall be subject to minimum international labor standards for 
seafarers under international agreements in force for the United 
States, as determined by the Secretary of Transportation on the advice 
of the Secretaries of Labor and Defense.

SEC. 10. REGULATIONS REGARDING VESSELS.

    (a) Applicable Minimum Requirements.--Except as provided in 
subsection (b), the minimum requirements for vessels engaging in the 
transportation of cargo or merchandise in the United States coastwise 
trade shall be the recognized international standards in force for the 
United States (as determined by the Secretary of the department in 
which the Coast Guard is operating, in consultation with any other 
official of the Federal Government that the Secretary determines to be 
appropriate).
    (b) Consistency in Application of Standards.--In any case in which 
any minimum requirement for vessels referred to in subsection (a) is 
inconsistent with a minimum that is applicable to vessels that are 
documented in a foreign country and that are admitted to engage in the 
transportation of cargo and merchandise in the United States coastwise 
trade, the standard applicable to such vessels that are documented in a 
foreign country shall be the standard to be applied to United States 
documented vessels.
    (c) Minimum Requirements for Passenger Vessels.--The minimum 
requirements for all vessels engaging in carriage of passengers in the 
United States in coastwise trade (including United States documented 
vessels and foreign documented vessels) shall be all safety, manning, 
inspection, construction, and equipment requirements applicable to 
United States vessels documented under the laws of the United States to 
engage in coastwise passenger trade, to the extent that those 
requirements are consistent with applicable international law and 
treaties to which the United States is a signatory.

SEC. 11. ENVIRONMENTAL STANDARDS.

    All vessels, whether documented under the laws of the United States 
or not, engaging in the United States coastwise trade shall comply with 
all applicable United States and international environmental standards 
in force for the United States.

SEC. 12. NATIONAL SECURITY REQUISITION OR CHARTER OF VESSELS THAT 
              REGULARLY ENGAGE IN COASTWISE TRADE.

    Section 902(a) of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1242(a)) is amended in the first sentence by inserting ``any vessel 
that regularly engages in coastwise trade (as that term is defined in 
section 2101 of title 46, United States Code),'' after ``documented 
vessel,''.

SEC. 13. REQUIREMENTS FOR CERTAIN NONCITIZENS IRREGULARLY ENGAGING IN 
              DOMESTIC COASTWISE TRADE.

    Each person or entity that is not a citizen of the United States, 
as defined in section 2101(3a) of title 46, United States Code, that 
owns or operates vessels that irregularly engage in the United States 
domestic coastwise trade shall--
            (1) name an agent upon whom process may be served;
            (2) abide by all applicable laws of the United States, 
        including applicable environmental and tax laws; and
            (3) post evidence of documentation and endorsements aboard 
        such vessel indicating the owner or owners of such vessel, 
        including any person controlling vessels and the number of port 
        calls and coastwise trips made during that calendar year.
    For purposes of paragraph (3), all persons treated as a single 
employer under subsection (a) or (b) of section 52 of the Internal 
Revenue Code of 1986 shall be treated as 1 person.
                                 <all>