[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 127 Reported in Senate (RS)]






                                                       Calendar No. 106
107th CONGRESS
  1st Session
                                 S. 127

                          [Report No. 107-47]

 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, Mr. Murkowski, 
Mr. Miller, Mrs. Boxer, Ms. Mikulski, Mr. Sarbanes, Mr. Thurmond, Mrs. 
Feinstein, Mr. Inouye, Mr. Breaux, Mr. Burns, Mr. Smith of Oregon, Mr. 
    Hollings, Mr. Kerry, Mr. Schumer, and Mr. Reid) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

                             July 27, 2001

              Reported by Mr. Hollings, without amendment

_______________________________________________________________________

                                 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--
            (1) the scope of a vessel's itinerary, including--
                    (A) the ports between which it operates; and
                    (B) the duration of the cruise;
            (2) the time frame within which the vessel will serve a 
        particular itinerary;
            (3) the size of the vessel; and
            (4) 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).




                                                       Calendar No. 106

107th CONGRESS

  1st Session

                                 S. 127

                          [Report No. 107-47]

_______________________________________________________________________

                                 A BILL

 To give American companies, American workers, and American ports the 
       opportunity to compete in the United States cruise market.

_______________________________________________________________________

                             July 27, 2001

                       Reported without amendment