[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2651 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2651

   To amend title 46, United States Code, to direct the Secretary of 
 Transportation to establish a maritime career training loan program, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 2, 2009

 Mr. Cummings (for himself, Mr. Oberstar, Mr. Mica, and Mr. LoBiondo) 
 introduced the following bill; which was referred to the Committee on 
                   Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
   To amend title 46, United States Code, to direct the Secretary of 
 Transportation to establish a maritime career training loan program, 
                        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 ``Maritime Workforce Development 
Act''.

SEC. 2. MARITIME EDUCATION LOAN PROGRAM.

    (a) In General.--Chapter 517 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 51705. Maritime career training loan program
    ``(a) Establishment.--The Secretary of Transportation shall 
establish a maritime career training loan program (in this section 
referred to as the `program') in accordance with the requirements of 
this section.
    ``(b) Purpose.--The purpose of the program shall be to make 
maritime career training loans available to eligible students to 
provide for the training of United States mariners.
    ``(c) Administration.--The program shall be carried out by the 
Secretary, acting through the Administrator of the Maritime 
Administration.
    ``(d) Duties.--The Secretary shall--
            ``(1) allocate, on an annual basis, the award of loans 
        under the program based on the needs of students;
            ``(2) develop an application process and eligibility 
        criteria for the award of loans under the program;
            ``(3) approve applications for loans under the program 
        based on the eligibility criteria and allocations made under 
        paragraph (1); and
            ``(4) designate maritime training institutions at which 
        loans made under the program may be used.
    ``(e) Designation of Maritime Training Institutions.--
            ``(1) In general.--In designating maritime training 
        institutions under subsection (d)(4), the Secretary--
                    ``(A) may include Federal, State, and commercial 
                training institutions and nonprofit training 
                organizations, except that undergraduate students at 
                the United States Merchant Marine Academy shall not be 
                eligible for loans under the program;
                    ``(B) shall designate institutions based on 
                geographic diversity and scope of classes offered;
                    ``(C) shall ensure that designated institutions 
                have the ability to administer the program; and
                    ``(D) shall ensure that designated institutions 
                meet requirements to provide training instruction for 
                appropriate Coast Guard-approved training instruction.
            ``(2) Exclusions.--The Secretary--
                    ``(A) may exclude from participation in the program 
                a maritime training institution that has had severe 
                performance deficiencies, including deficiencies 
                demonstrated by audits or program reviews conducted 
                during the 5 calendar years immediately preceding the 
                present year;
                    ``(B) shall exclude from participation in the 
                program a maritime training institution that has 
                delinquent or outstanding debts to the United States, 
                unless such debts are being repaid under or in 
                accordance with a repayment arrangement satisfactory to 
                the United States, or the Secretary in the Secretary's 
                discretion determines that the existence or amount of 
                any such debts has not been finally determined by the 
                appropriate Federal agency;
                    ``(C) may exclude from participation in the program 
                a maritime training institution that has failed to 
                comply with quality standards established by the 
                Department of Labor, the Coast Guard, or a State; and
                    ``(D) may establish such other criteria as the 
                Secretary determines will protect the financial 
                interest of the United States and promote the purposes 
                of this section.
    ``(f) State Maritime Academies.--
            ``(1) Use of funds for loans to students attending state 
        maritime academies.--The Secretary may obligate not more than 
        50 percent of the amounts appropriated to carry out this 
        section for a fiscal year for loans to undergraduate students 
        attending State maritime academies receiving assistance under 
        chapter 515 of this title.
            ``(2) Academic standards for students.--Students at State 
        maritime academies receiving loans under the program shall 
        maintain satisfactory progress toward the completion of their 
        course of study as evidenced by the maintenance of a cumulative 
        C average, or its equivalent, or academic standing consistent 
        with the requirements for graduation, as determined by the 
        institution.
    ``(g) Loan Amounts and Use.--
            ``(1) Maximum amounts.--The Secretary may not make loans to 
        a student under the program in an amount that exceeds $15,000 
        in a calendar year or $60,000 in the aggregate.
            ``(2) Use of loan proceeds.--A student who receives a loan 
        under the program may use the proceeds of the loan only for 
        postsecondary expenses incurred at an institution designated by 
        the Secretary under subsection (d)(4) for books, tuition, 
        required fees, travel to and from training facilities, and room 
        and board.
    ``(h) Student Eligibility.--To be eligible to receive a loan under 
the program, a student shall--
            ``(1) be eligible to hold a license or merchant mariner 
        document issued by the Coast Guard;
            ``(2) provide to the Secretary such information as the 
        Secretary may require, including all current Coast Guard 
        documents, certifications, proof of United States citizenship 
        or permanent legal status, and a statement of intent to enter a 
        maritime career;
            ``(3) meet the enrollment requirements of a maritime 
        training institution designated by the Secretary under 
        subsection (d)(4); and
            ``(4) sign an agreement to--
                    ``(A) complete a course of instruction at such a 
                maritime training institution; and
                    ``(B)(i) maintain a license and serve as an officer 
                in the merchant marine on a documented vessel or a 
                vessel owned and operated by the United States for at 
                least 18 months of service at sea following the date of 
                graduation from the maritime program for which the loan 
                proceeds will be used; or
                    ``(ii) serve as an unlicensed merchant mariner on a 
                documented vessel or a vessel owned and operated by the 
                United States for at least 18 months of service at sea 
                following the date of graduation from the maritime 
                program for which the loan proceeds will be used.
    ``(i) Administration of Loans.--
            ``(1) Contents of loan agreements.--Any agreement between 
        the Secretary and a student borrower for a loan under the 
        program shall--
                    ``(A) be evidenced by a note or other written 
                instrument that provides for the repayment of the 
                principal amount of the loan and any origination fee, 
                together with interest thereon, in equal installments 
                (or, if the student borrower so requests, in graduated 
                periodic installments determined in accordance with 
                such schedules as may be approved by the Secretary) 
                payable quarterly, bimonthly, or monthly, at the option 
                of the student borrower, over a period beginning 9 
                months from the date on which the student borrower 
                completes study or discontinues attendance at the 
                maritime program for which the loans are used at the 
                institution approved by the Secretary and not exceeding 
                10 years;
                    ``(B) include provision for acceleration of 
                repayment of the whole, or any part, of such loan, at 
                the option of the student borrower;
                    ``(C) provide the loan without security and without 
                endorsement;
                    ``(D) provide that the liability to repay the loan 
                shall be canceled upon the death of the student 
                borrower, or if the student borrower becomes 
                permanently and totally disabled, as determined in 
                accordance with regulations to be issued by the 
                Secretary;
                    ``(E) contain a notice of the system of disclosure 
                of information concerning default on such loan to 
                credit bureau organizations; and
                    ``(F) include provisions for deferral of repayment, 
                as determined by the Secretary.
            ``(2) Rate of interest.--A student borrower who receives a 
        loan under the program on or after January 1, 2010, and before 
        October 1, 2015, shall be obligated to repay the loan amount to 
        the Secretary, together with interest beginning in the period 
        referred to in paragraph (1)(A), at a rate to be determined as 
        follows:
                    ``(A) For a loan for which the first disbursement 
                is made on or after January 1, 2010, and before October 
                1, 2011, 5.6 percent on the unpaid principal balance of 
                the loan.
                    ``(B) For a loan for which the first disbursement 
                is made on or after October 1, 2011, and before October 
                1, 2012, 4.5 percent on the unpaid principal balance of 
                the loan.
                    ``(C) For a loan for which the first disbursement 
                is made on or after October 1, 2012, 3.4 percent on the 
                unpaid principal balance of the loan.
            ``(3) Disclosure required prior to disbursement.--
                    ``(A) In general.--The Secretary shall at or prior 
                to the time the Secretary makes a loan to a student 
                borrower under the program, provide thorough and 
                adequate loan information on such loan to the student 
                borrower. The disclosures required by this paragraph 
                may be made as part of the written application material 
                provided to the student borrower, as part of the 
                promissory note evidencing the loan, or on a separate 
                written form provided to the student borrower.
                    ``(B) Contents.--The disclosures shall include--
                            ``(i) the address to which communications 
                        and payments should be sent;
                            ``(ii) the principal amount of the loan;
                            ``(iii) the amount of any charges collected 
                        at or prior to the disbursal of the loan and 
                        whether such charges are to be deducted from 
                        the proceeds of the loan or paid separately by 
                        the student borrower;
                            ``(iv) the stated interest rate on the 
                        loan;
                            ``(v) the yearly and cumulative maximum 
                        amounts that may be borrowed;
                            ``(vi) an explanation of when repayment of 
                        the loan will be required and when the student 
                        borrower will be obligated to pay interest that 
                        accrues on the loan;
                            ``(vii) a statement as to the minimum and 
                        maximum repayment term that the Secretary may 
                        impose, and the minimum monthly payment 
                        required by law and a description of any 
                        penalty imposed as a consequence of default, 
                        such as liability for expenses reasonably 
                        incurred in attempts by the Secretary to 
                        collect on a loan;
                            ``(viii) a statement of the total 
                        cumulative balance, including the loan applied 
                        for, owed by the student borrower to the 
                        Secretary, and an estimate of the projected 
                        monthly payment, given such cumulative balance;
                            ``(ix) an explanation of any special 
                        options the student borrower may have for loan 
                        consolidation or other refinancing of the loan;
                            ``(x) a statement that the student borrower 
                        has the right to prepay all or part of the 
                        loan, at any time, without penalty;
                            ``(xi) a statement summarizing 
                        circumstances in which repayment of the loan or 
                        interest that accrues on the loan may be 
                        deferred, and a brief notice of the program for 
                        repayment of loans, on the basis of military 
                        service, pursuant to the Department of Defense 
                        educational loan repayment program (10 U.S.C. 
                        16302);
                            ``(xii) a definition of default and the 
                        consequences to the student borrower if the 
                        student borrower defaults, together with a 
                        statement that the disbursement of, and the 
                        default on, a loan under this part shall be 
                        reported to a credit bureau or credit reporting 
                        agency;
                            ``(xiii) to the extent practicable, the 
                        effect of accepting the loan on the eligibility 
                        of the student borrower for other forms of 
                        student assistance; and
                            ``(xiv) an explanation of any cost the 
                        student borrower may incur in the making or 
                        collection of the loan.
                    ``(C) Information to be provided without cost.--The 
                information provided under this paragraph shall be 
                available to the Secretary without cost to the student 
                borrower.
            ``(4) Repayment after default.--The Secretary may require 
        any student borrower who has defaulted on a loan made under the 
        program to--
                    ``(A) pay all reasonable collection costs 
                associated with such loan; and
                    ``(B) repay the loan pursuant to an income 
                contingent repayment plan.
            ``(5) Authorization to reduce rates and fees.--
        Notwithstanding any other provision of this section, the 
        Secretary may prescribe by regulation any reductions in the 
        interest rate or origination fee paid by a student borrower of 
        a loan made under the program as the Secretary determines 
        appropriate to encourage ontime repayment of the loan. Such 
        reductions may be offered only if the Secretary determines the 
        reductions are cost neutral and in the best financial interest 
        of the United States.
            ``(6) Collection of repayments.--The Secretary shall 
        collect repayments made under the program and exercise due 
        diligence in such collection, including maintenance of all 
        necessary records to ensure that maximum repayments are made. 
        Collection and servicing of repayments under the program shall 
        be pursued to the full extent of the law, including wage 
        garnishment if necessary. The Secretary of the Department in 
        which the Coast Guard is operating shall provide the Secretary 
        of Transportation with any information regarding a mariner that 
        may aid in the collection of repayments under this section.
            ``(7) Repayment schedule.--A student borrower who receives 
        a loan under the program shall repay the loan quarterly, 
        bimonthly, or monthly, at the option of the student borrower, 
        over a period beginning 9 months from the date the student 
        borrower completes study or discontinues attendance at the 
        maritime program for which the loan proceeds are used and 
        ending not more than 10 years after the date repayment begins. 
        Provisions for deferral of repayment shall be determined by the 
        Secretary.
            ``(8) Contracts for servicing and collection of loans.--The 
        Secretary may--
                    ``(A) enter into a contract or other arrangement 
                with State or nonprofit agencies and, on a competitive 
                basis, with collection agencies for servicing and 
                collection of loans under this section; and
                    ``(B) conduct litigation necessary to carry out 
                this section.
    ``(j) Revolving Loan Fund.--
            ``(1) Establishment.--The Secretary shall establish a 
        revolving loan fund consisting of amounts deposited in the fund 
        under paragraph (2).
            ``(2) Deposits.--The Secretary shall deposit in the fund--
                    ``(A) receipts from the payment of principal and 
                interest on loans made under the program; and
                    ``(B) any other monies paid to the Secretary by or 
                on behalf of individuals under the program.
            ``(3) Availability of amounts.--Amounts in the fund shall 
        be available to the Secretary, without further appropriation--
                    ``(A) to cover the administrative costs of the 
                program, including the maintenance of records and 
                making collections under this section; and
                    ``(B) to the extent that amounts remain available 
                after paying such administrative costs, to make loans 
                under the program.
            ``(4) Maintenance of records.--The Secretary shall maintain 
        accurate records of the administrative costs referred to in 
        paragraph (3)(A).
    ``(k) Annual Report.--The Secretary, on an annual basis, shall 
submit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the program, including--
            ``(1) the total amount of loans made under the program in 
        the preceding year;
            ``(2) the number of students receiving loans under the 
        program in the preceding year; and
            ``(3) the total amount of loans made under program that are 
        in default as of the date of the report.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2010 through 2015--
            ``(1) $10,000,000 for making loans under the program; and
            ``(2) $1,000,000 for administrative expenses of the 
        Secretary in carrying out the program.
``Sec. 51706. Maritime recruitment, training, and retention grant 
              program
    ``(a) Strategic Plan.--
            ``(1) In general.--Not later than one year after the date 
        of enactment of this section, and at least once every 3 years 
        thereafter, the Secretary of Transportation, acting through the 
        Administrator of the Maritime Administration, shall publish in 
        the Federal Register a plan that describes the demonstration, 
        research, and multistate project priorities of the Department 
        of Transportation concerning merchant mariner recruitment, 
        training, and retention for the 3-year period following the 
        date of publication of the plan.
            ``(2) Contents.--A plan published under paragraph (1) shall 
        contain strategies and identify potential projects to address 
        merchant mariner recruitment, training, and retention issues in 
        the United States.
            ``(3) Factors.--In developing a plan under paragraph (1), 
        the Secretary shall take into account, at a minimum--
                    ``(A) the availability of existing research (as of 
                the date of publication of the plan);
                    ``(B) the need to ensure results that have broad 
                applicability;
                    ``(C) the benefits of economies of scale and the 
                efficiency of potential projects; and
                    ``(D) the likelihood that the results of potential 
                projects will be useful to policymakers and 
                stakeholders in addressing merchant mariner 
                recruitment, training, and retention issues.
            ``(4) Consultation.--In developing a plan under paragraph 
        (1), the Secretary shall consult with representatives of the 
        maritime industry, labor organizations, and other governmental 
        entities and parties with an interest in the maritime industry.
            ``(5) Transmittal to congress.--The Secretary shall 
        transmit copies of a plan published under paragraph (1) to the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate.
    ``(b) Demonstration Projects.--
            ``(1) In general.--The Secretary may award grants to a 
        maritime training institution to carry out demonstration 
        projects that implement the priorities identified in the plan 
        prepared under subsection (a)(1), for the purpose of developing 
        and implementing methods to address merchant mariner 
        recruitment, training, and retention issues.
            ``(2) Grant awards.--Grants shall be awarded under this 
        subsection on a competitive basis under guidelines and 
        requirements to be established by the Secretary.
            ``(3) Applications.--To be eligible to receive a grant for 
        a project under this subsection, a maritime training 
        institution shall submit to the Secretary a grant proposal that 
        includes, at a minimum--
                    ``(A) information demonstrating the estimated 
                effectiveness of the project; and
                    ``(B) a method for evaluating the effectiveness of 
                the project.
            ``(4) Eligible projects.--Projects eligible for grants 
        under this subsection may include--
                    ``(A) the establishment of maritime technology 
                skill centers developed through local partnerships of 
                industry, labor, education, community-based 
                organizations, economic development organizations, or 
                Federal, State, and local government agencies to meet 
                unmet skills needs of the maritime industry;
                    ``(B) projects that provide training to upgrade the 
                skills of workers who are employed in the maritime 
                industry;
                    ``(C) projects that promote the use of distance 
                learning, enabling students to take courses through the 
                use of media technology, such as videos, 
                teleconferencing, and the Internet;
                    ``(D) projects that assist in providing services to 
                address maritime recruitment and training of youth 
                residing in targeted high poverty areas within 
                empowerment zones and enterprise communities;
                    ``(E) the establishment of partnerships with 
                national and regional organizations with special 
                expertise in developing, organizing, and administering 
                merchant mariner recruitment and training services; and
                    ``(F) the establishment of maritime training 
                programs that foster technical skills and operational 
                productivity in communities in which economies are 
                related to or dependent upon the maritime industry.
    ``(c) Projects Authorized.--
            ``(1) Projects.--The Secretary may award grants to carry 
        out projects identified in a plan published under subsection 
        (a)(1) under which the project sponsor will--
                    ``(A) design, develop, and test an array of 
                approaches to providing recruitment, training, or 
                retention services to one or more targeted populations;
                    ``(B) in conjunction with employers, organized 
                labor, other groups (such as community coalitions), and 
                Federal, State, or local agencies, design, develop, and 
                test various training approaches in order to determine 
                effective practices; or
                    ``(C) assist in the development and replication of 
                effective service delivery strategies for the national 
                maritime industry as a whole.
            ``(2) Research projects.--The Secretary may award grants to 
        carry out research projects identified in a plan published 
        under subsection (a)(1) that will contribute to the solution of 
        maritime industry recruitment, training, and retention issues 
        in the United States.
            ``(3) Multistate or regional projects.--The Secretary may 
        award grants to carry out multistate or regional projects 
        identified in a plan published under subsection (a)(1) to 
        effectively disseminate best practices and models for 
        implementing maritime recruitment, training, and retention 
        services designed to address industry-wide skill shortages.
            ``(4) Grant awards.--Grants shall be awarded under this 
        subsection on a competitive basis under guidelines and 
        requirements to be established by the Secretary.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2010 through 2015--
            ``(1) $10,000,000 for making grants under this section; and
            ``(2) $1,000,000 for administrative expenses of the 
        Secretary in carrying out this section.''.
    (b) Conforming Amendment.--The analysis for such chapter is amended 
by adding at the end the following:

``51705. Maritime career training loan program.
``51706. Maritime recruitment, training, and retention grant 
                            program.''.
                                 <all>