[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2845 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2845

  To amend the Merchant Marine Act, 1920, to allow transportation of 
  merchandise in noncontiguous trade on foreign-flag vessels, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2003

   Mr. Case 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 amend the Merchant Marine Act, 1920, to allow transportation of 
  merchandise in noncontiguous trade on foreign-flag 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.

    This Act may be cited as the ``United States Noncontiguous Shipping 
Open Market Act of 2003''.

SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE.

    (a) In General.--Section 27 of the Merchant Marine Act, 1929 (46 
App. U.S.C. 883) is amended by inserting ``(a) In General.--'' before 
the first sentence, and by adding at the end the following:
    ``(b) Noncontiguous Trade Exemption.--Subsection (a) shall not 
apply with respect to transportation in noncontiguous trade of 
merchandise on a foreign qualified freight vessel for which the 
Secretary of Transportation has issued a certificate of documentation.
    ``(c) Definitions.--In this section:
            ``(1) Foreign qualified freight vessel.--The term `foreign 
        qualified freight vessel' means a freight vessel (as that term 
        is defined in section 2101 of title 46, United States Code) of 
        not less than 1,000 gross tons that--
                    ``(A) was not built in the United States (or if 
                rebuilt, not rebuilt in the United States);
                    ``(B) is registered in a foreign country; and
                    ``(C) employs United States citizens to the extent 
                required of vessels registered under section 12102 of 
                this title.
            ``(2) Noncontiguous trade.--The term `noncontiguous trade' 
        means--
                    ``(A) trade between a point in the contiguous 48 
                States and a point in Alaska, Hawaii, Puerto Rico, or 
                the insular territories or possessions of the United 
                States; or
                    ``(B) trade between a point in Alaska, Hawaii, 
                Puerto Rico, or the insular territories or possessions 
                of the United States and another point in Alaska, 
                Hawaii, Puerto Rico, or the insular territories and 
                possessions of the United States.''.
    (b) Coastwise Endorsements.--12106(b) of title 46, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(b)'';
            (2) by inserting ``to paragraph (2) and'' after 
        ``Subject''; and
            (3) by adding at the end the following:
    ``(2)(A) Paragraph (1) shall not apply with respect to a foreign 
qualified freight vessel used for transportation referred to in section 
27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), for 
which the Secretary of Transportation has issued a certificate of 
documentation.
    ``(B) In subparagraph (A) the term `foreign qualified freight 
vessel' has the meaning given that term in section 27(c) of the 
Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).''.
    (c) Foreign Transfer.--Section 9(c) of the Shipping Act, 1916 (46 
App. U.S.C. 808) is amended by inserting ``(1)'' before the first 
sentence, and by adding at the end the following:
    ``(2)(A) Notwithstanding paragraph (1), a foreign qualified freight 
vessel for which the Secretary has issued a certificate of 
documentation after the date of enactment of this Act and that is used 
solely for transportation referred to in section 27(b) of the Merchant 
Marine Act, 1920 (46 App. U.S.C. 883(b)) may be placed under foreign 
registry without the approval of the Secretary at any time after that 
vessel is issued a certificate of documentation. At such time as that 
vessel is placed under foreign registry, the Secretary shall revoke the 
certificate of documentation issued by the Secretary.
    ``(B) In subparagraph (A) the term `foreign qualified freight 
vessel' has the meaning given that term in section 27(c) of the 
Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).''.

SEC. 3. 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 by 
adding at the end the following:
    ``(d)(1) The following provisions of this section shall not apply 
to a foreign qualified freight vessel used for transportation referred 
to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 
883(b)):
            ``(A) The text of subparagraph after `possession thereof'.
            ``(B) subsection (c).
    ``(2) In paragraph (1) the term `foreign qualified freight vessel' 
has the meaning given that term in section 27(c) of the Merchant Marine 
Act, 1920 (46 App. U.S.C. 883(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 by adding at the end the following:
    ``(e)(1) In lieu of the penalty under subsection (d), a person that 
commits an act described in paragraph (2) 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.
    ``(2) The acts referred to in paragraph (1) are the following:
            ``(A) Charter, sell, or transfer a foreign qualified 
        freight vessel used for transportation referred to in section 
27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), or 
interest in or control of such a vessel.
            ``(B) Place under foreign registry a foreign qualified 
        freight vessel used for transportation referred to in section 
        27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), 
        that is documented in the United States.
            ``(C) Operate under the authority of a foreign country a 
        foreign qualified freight vessel used for transportation 
        referred to in section 27(b) of the Merchant Marine Act, 1920 
        (46 App. U.S.C. 883(b)).
    ``(f) To promote the transfer of foreign vessels to be documented 
under chapter 121 of title 46, United States Code, for use for 
transportation referred to in section 27(b) of the Merchant Marine Act, 
1920 (46 App. U.S.C. 883(b)), the Secretary may grant approval under 
subsection (c) with respect to such a vessel before the date the vessel 
is documented.''.
    ``(g) In subsections (e) and (f), the term `foreign qualified 
freight vessel' has the meaning given that term in section 27(c) of the 
Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).''.

SEC. 4. 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. 5. 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) 
establishes a lower standard than 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.

SEC. 6. 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. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IRREGULARLY ENGAGING IN 
              DOMESTIC COASTWISE TRADE.

    (a) In General.--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.
    (b) Persons Treated as Single Employer.--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>