1.This Act may be cited as the
Maritime Workforce Development
Act
.
2.Maritime
education loan program
(a)Chapter 517 of title
46, United States Code, is amended by adding at the end the following:
51705.Maritime
career training loan program
(a)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)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)The program shall be carried out by the
Secretary, acting through the Administrator of the Maritime
Administration.
(d)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 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)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)
(1)Use of funds for
loans to students attending State maritime academiesThe
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 studentsStudents 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)
(1)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)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)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)maintain a license or document and work
under the authority of the license or document and any associated endorsements
for at least 18 months following the date of graduation from the maritime
program for which the loan proceeds will be used.
(i)
(1)Contents of loan
agreementsAny 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)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)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)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 costThe information provided under this
paragraph shall be available to the Secretary without cost to the student
borrower.
(4)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 feesNotwithstanding 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)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)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 loansThe 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)
(1)The
Secretary shall establish a revolving loan fund consisting of amounts deposited
in the fund under paragraph (2).
(2)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)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)The Secretary shall maintain accurate records of the
administrative costs referred to in paragraph (3)(A).
(k)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
appropriationsThere 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.
51706.Maritime
recruitment, training, and retention grant program
(a)
(1)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)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)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)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)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)
(1)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)Grants shall be awarded under this subsection on a
competitive basis under guidelines and requirements to be established by the
Secretary.
(3)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)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)
(1)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)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 projectsThe 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)Grants shall be awarded under this subsection on a
competitive basis under guidelines and requirements to be established by the
Secretary.
(d)Authorization of
appropriationsThere 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)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.
.
Passed the House of
Representatives October 14, 2009.
Lorraine C. Miller,
Clerk.