[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 127 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 127
To give American companies, American workers, and American ports the
opportunity to compete in the United States cruise market.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 22, 2001
Mr. McCain (for himself, Mr. Cleland, Mrs. Hutchison, and Mr.
Murkowski) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To give American companies, American workers, and American ports the
opportunity to compete in the United States cruise market.
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 Vessel Act''.
(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 CERTIFICATE OF DOCUMENTATION
Sec. 101. Domestic cruise vessel.
Sec. 102. Repairs requirement.
Sec. 103. Construction requirement.
Sec. 104. Certain operations prohibited.
Sec. 105. Priorities within domestic markets.
Sec. 106. Report.
Sec. 107. Enforcement
TITLE II--OTHER PROVISIONS
Sec. 201. Application with Jones Act and other Acts.
Sec. 202. 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) was delivered after January 1, 1980;
(B) is at least 20,000 gross registered tons;
(C) has no fewer than 800 passenger berths;
(D) is owned by a person that is a citizen of the
United States for the purpose of operating a vessel in
the coastwise trade within the meaning of section 2 of
the Shipping Act, 1916 (46 U.S.C. 802) or section
12106(e) of title 46, United States Code;
(E) provides a full range of overnight
accommodations, entertainment, dining, and other
services for its passengers;
(F) 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
(G) meets the eligibility requirements for a
certificate of inspection under section 1137(a) of the
Coast Guard Authorization Act of 1996 (46 U.S.C. App.
1187 nt.), and complies with the applicable
international agreements and associated guidelines
referred to in section 1137(a)(2) of that Act (46
U.S.C. 1187 nt.).
(2) Itinerary.--The term ``itinerary'' means the route
travelled by a cruise vessel on a single voyage that begins at
the first port at which passengers on that voyage embark,
includes each port at which the vessel calls before the last
port at which passengers on that voyage disembark, and ends at
that last port of disembarkation. For purposes of this
paragraph, the term ``embark'' and ``disembark'' have the
meaning given those terms in section 4.80a(a)(4) of title 19,
Code of Federal Regulations (as such section is in effect on
the date of enactment of this Act).
(3) Operator.--The term ``operator'' means the owner,
operator, or charterer.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Transportation.
(5) United states shipyard.--The term ``United States
shipyard'' means a shipyard located in the United States.
(6) United states.--The term ``United States'' has the
meaning given that term in section 2101(44) of title 46, United
States Code.
TITLE I--OPERATIONS UNDER CERTIFICATE OF DOCUMENTATION
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), section 27 of the Act of
June 5, 1920, commonly known as the Jones Act (46 U.S.C. App. 883),
section 27A of that Act (46 U.S.C. App. 883-1), and section 12106 of
title 46, United States Code, the Secretary shall issue a certificate
of documentation with a temporary coastwise endorsement for an eligible
cruise vessel not built in the United States to operate in domestic
itineraries in the transportation of passengers in the coastwise trade
between ports in the United States if the vessel meets the requirements
of this title.
(b) Termination of Authority.--The authority of the Secretary to
issue a certificate of documentation under subsection (a) begins on the
day after the date of enactment of this Act and terminates on the day
that is 24 months after that date.
(c) Application Only Required.--Notwithstanding subsection (b), the
Secretary may issue a certificate of documentation under subsection (a)
more than 24 months after the date of enactment of this Act if--
(1) the Secretary received the application for the
certificate of documentation before the end of that 24-month
period; and
(2) the vessel otherwise meets the requirements of this
title.
(d) Rights Under Application Not Transferrable.--The right to
receive a certification of documentation pursuant to an application
described in subsection (c) may not be transferred by the applicant to
any other person. For purposes of this subsection, the transfer of that
right to a successor in interest to the applicant in connection with
the reorganization, restructuring, acquisition, or sale of the
applicant's business shall not be considered another person.
SEC. 102. REPAIRS REQUIREMENT.
(a) In General.--The Secretary may not issue a certificate of
documentation under section 101(a) for an eligible cruise vessel unless
the operator establishes to the satisfaction of the Secretary that--
(1) any repair, maintenance, alteration, or other
preparation of the vessel for operation under a certificate of
documentation issued under section 101(a) have been, or will
be, performed in a United States shipyard; and
(2) any repair, maintenance, or alteration of the vessel
after a certificate of documentation is issued under that
section will be performed in a United States shipyard.
(b) Waiver.--The Secretary may waive the requirements of subsection
(a) 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 vessel proceed to a foreign port.
SEC. 103. CONSTRUCTION REQUIREMENT.
(a) Construction Contract Required.--
(1) In general.--Except as provided in paragraph (2), a
vessel for which a certificate of documentation has been issued
under section 101(a) may not commence operations in the
coastwise trade until the operator of that vessel executes a
contract with one or more United States shipyards for the
construction of a total of 2 or more cruise vessels with a
total combined berth or stateroom capacity equal to at least
the total combined berth or stateroom capacity of that vessel.
If certificates of documentation are issued under section
101(a) for more than 1 vessel for an operator, the construction
contract required by the preceding sentence shall provide for
the construction of 1 more vessel than the number of vessels
for which certificates of documentation are issued with a total
combined berth or stateroom capacity equal to at least the
total combined berth or stateroom capacity of the vessels for
which the certificates of documentation are issued.
(2) Demonstration of capability required.--For purposes of
this subsection, a construction contract for which financing is
not provided under title XI of the Merchant Marine Act, 1936
(46 U.S.C. App. 1101 et seq.) shall not be recognized as
meeting the requirements of paragraph (1) unless both the
operator and the shipyard are capable of completing the
contract. For purposes of this paragraph--
(A) an operator shall be considered to be capable
of completing such a contract if the operator meets the
standards set forth in sections 298.12, 298.13, and
298.14 of title 46, Code of Federal Regulations; and
(B) a shipyard shall be considered to be capable of
completing such a contract if the shipyard meets the
standards set forth in section 298.32(a) of that title.
(b) Minimum Size Requirement.--For purposes of this section, a
contract for the construction of a vessel shall be disregarded if that
vessel--
(1) will be less than 20,000 gross registered tons; or
(2) will have fewer than 800 passenger berths.
(c) Contract Terms.--
(1) In general.--The contract required by subsection (a)
shall provide for delivery of the first such vessel not later
than 60 months after the date on which operations of the vessel
for which the certificate of documentation was issued commence,
and shall contain any other provisions required by the
Secretary for purposes of this subsection. If the contract
provides for the construction of more than 1 vessel, it shall
provide for delivery of each vessel subsequent to the first not
later than 24 months after delivery of the immediately
preceding vessel.
(2) Extension of time periods for impossibility of
performance.--If the commencement of construction or the
completion of construction is prevented or delayed by
circumstances that would be recognized as providing a defense
of impossibility-of-performance by the shipyard under
applicable contract law, each time period in this Act related
to delivery of a vessel by that shipyard shall be extended for
whatever period of time the circumstance on which the defense
is predicated continues to exist.
(d) Expiration of Coastwise Endorsement.--The coastwise endorsement
for an eligible cruise vessel under section 101(a) shall expire 24
months after the delivery date for the replacement vessel or vessels
for that eligible cruise vessel. For purposes of this subsection, the
term ``replacement vessel or vessels'' means 1 or more vessels the
operator of the eligible cruise vessel is obligated to construct in the
United States under the contract described in subsection (a) with
respect to the eligible cruise vessel that have at least the same
number of passenger berths as the eligible cruise vessel, or they,
replace.
(e) 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 vessel issued a certificate of documentation with a
temporary coastwise endorsement under section 101(a), or a cruise
vessel constructed under a contract described in subsection (a) of this
section, may place that vessel under foreign registry.
SEC. 104. CERTAIN OPERATIONS PROHIBITED.
Neither an eligible cruise vessel operating in domestic itineraries
under a certificate of documentation issued under section 101(a) nor a
vessel constructed under a contract described in section 103(a) may--
(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. 105. PRIORITIES WITHIN DOMESTIC MARKETS.
(a) Notification of Secretary.--
(1) New vessels.--Any person eligible under section 12102
of title 46, United States Code, to document a vessel under
chapter 121 of that title that enters into a contract with a
United States shipyard for the construction of a cruise vessel
that--
(A) will be at least 20,000 gross registered tons,
(B) will have no fewer than 800 passenger berths,
and
(C) is otherwise eligible for a certificate of
documentation and a coastwise trade endorsement,
shall notify the Secretary, at such time and in such manner and
form as the Secretary may require, of the construction of that
vessel not less than 2 full calendar years before the earliest
date on which the vessel is intended to commence operations.
(2) Reconstruction.--The notification requirement of
paragraph (1) also applies to any such person that enters into
a contract with a United States shipyard for the reconstruction
of any vessel, including a vessel that has a certificate of
documentation under chapter 121 of title 46, United States
Code, will, after reconstruction, will be that size and
capacity and be eligible for such an endorsement.
(b) Priority to U.S.-Built Vessels.--The Secretary shall give
priority to any cruise vessel described in subsection (a) over any
other cruise vessel of comparable operations in a comparable market
under a certificate of documentation issued under section 101(a) if the
Secretary, after notice and an opportunity for public comment,
determines that the employment in the coastwise trade of the vessel
issued a certificate of documentation under section 101(a) will
adversely affect the coastwise trade business of any person operating a
vessel not documented under section 101(a) in the coastwise trade.
(c) Factors Considered.--In determining and assigning priorities,
the Secretary shall consider, among other factors determined by the
Secretary to be appropriate--
(A) the scope of a vessel's itinerary, including--
(i) the ports between which it operates;
and
(ii) the duration of the cruise;
(B) the time frame within which the vessel will
serve a particular itinerary;
(C) the size of the vessel; and
(D) the retail per diem of the vessel.
(d) Implementation.--
(1) Intinerary submission required.--The Secretary shall
require the operator of each vessel issued a certificate of
documentation under section 101(a) to submit, in April of each
year, a proposed itinerary for that vessel for cruise
itineraries for the calendar year beginning 20 months after the
date on which the itinerary is required to be submitted.
(2) Publication and comment.--
(A) Publication.--The Secretary shall cause any
itinerary submitted under paragraph (1), and any late
submission or revision submitted under paragraph (3),
to be published in the Federal Register.
(B) Comment period.--The Secretary shall receive
and consider comments from the public on any itinerary
published under subparagraph (A) for a period of 30
days after the date on which the itinerary is
published.
(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)(iii) and before the start date of a requested itinerary.
(4) Scheduling.--
(A) Action by secretary.--Within 30 days after the
close of the comment period on an itinerary published
under paragraph (2)(A), the Secretary shall--
(i) review the itineraries submitted to the
Secretary for compliance with the priorities
established by this section;
(ii) advise affected cruise vessel
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' appeals.--The operator of any
eligible cruise vessel may appeal the Secretary's
decision under subparagraph (A)(ii) within 30 days
after the Secretary advises the operator of the
decision.
(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 vessel 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.
SEC. 106. REPORT.
The Secretary shall issue an annual report on the number of vessels
operating under certificate of documentations granted under section
101(a), and on the progress of construction on vessels to replace those
vessels under section 103.
SEC. 107. ENFORCEMENT.
(a) Breach of Construction Contract by Operator.--The Secretary
shall revoke a temporary coastwise endorsement issued under section
101(a)(2) for a vessel if the operator of that vessel commits a serious
breach of the construction contract required by section 103(a). The
revocation shall take effect at the conclusion of the last voyage on
the last cruise itinerary approved by the Secretary before the
Secretary made the determination to revoke the endorsement.
(b) Breach of Construction Contract by Shipyard.--
(1) In general.--If a shipyard commits a serious breach of
a construction contract required by section 103(a) with an
operator of a vessel for which a certificate of documentation
granted under section 101(a)--
(A) the operator shall notify the Secretary
immediately of the breach; and
(B) the operator may continue to operate that
vessel as if the contract were in effect for a period
of 24 months after notification of the Secretary on the
condition that the operator will make good faith
efforts during that 24-month period to execute a
contract with a United States shipyard for the
construction of the vessels that were to have been
constructed under that contract.
(2) Good faith effort required.--If the Secretary
determines at any time during that 24-month period that the
operator has ceased to make good faith efforts to execute such
a contract, then the Secretary shall immediately terminate the
operator's authority to continue operations under this
paragraph.
(c) Substantial Breaches Only.--For purposes of subsections (a) and
(b), the term ``serious breach of contract'' means a breach of contract
for which an appropriate remedy under section 2-703 or 2-711 of the
Uniform Commercial Code, as promulgated by the National Conference of
Commissioners on Uniform State Law, is cancellation by the seller or
buyer, respectively.
TITLE II--OTHER PROVISIONS
SEC. 201. 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.
(3) Section 27A of the Act of the Merchant Marine Act, 1920
(46 U.S.C. App. 883-1).
(4) Section 8109 of the Department of Defense
Appropriations Act, 1998.
(b) Jones Act.--Except as in section 101(a), nothing in this Act
affects or modifies the Merchant Marine Act, 1920 (46 U.S.C. App. 861
et seq.).
SEC. 202. GLACIER BAY AND OTHER NATIONAL PARK SERVICE AREA PERMITS.
(a) In General.--The Secretary of the Interior, after consultation
with the Secretary of Transportation, shall 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.
(b) New Permits Not Authorized.--Subsection (a) does not authorize
the Secretary of the Interior to issue new permits, but, if new permits
are authorized under any other provision of law, they shall be awarded
in accordance with subsection (a).
<all>