[Congressional Record Volume 141, Number 184 (Saturday, November 18, 1995)]
[Senate]
[Page S17466]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 COAST GUARD AUTHORIZATION ACT OF 1995

  Mrs. BOXER. Mr. President, late last night the Senate passed 
unanimously the Coast Guard Authorization Act of 1995, including my 
legislation, the California Cruise Industry Revitalization Act.
  At long last, this legislation has left the dock, and once we work 
out differences with the House on other provisions, we will finally put 
my State's cruise industry back on track, providing jobs and tourist 
revenue for California.
  I would like to express my appreciation to the bipartisan leadership 
of the Commerce, Science, and Transportation Committee for their work 
in moving this important authorization bill for the U.S. Coast Guard to 
the Senate floor for passage. I particularly wish to thank my 
Environment and Public Works Committee chairman, Senator Chafee, for 
his diligent effort to fashion a compromise on the difficult issues 
raised in the House version of this legislation that fall within his 
committee's jurisdiction.
  This Coast Guard bill includes a provision that is critical to a key 
element of my State's economy, California tourism, particularly our 
cruise ship industry and the jobs that depend on it.
  On the first day of the 104th Congress, I introduced legislation, the 
California Cruise Industry Revitalization Act, S. 138, to amend the law 
passed by the 102d Congress which allowed gambling on U.S.-flag cruise 
ships but that also allowed States to outlaw gambling on ships involved 
in intrastate cruises. My legislation would lift the ban on gaming on 
cruise ships traveling between consecutive California ports. The 
Commerce Committee this summer agreed to include my legislation as 
section 1106 in the Coast Guard Authorization Act of 1995.
  Let me explain why this provision is so important to my State.
  In 1992, subsequent to the congressional action, the California 
Legislature dealt the State's tourism industry a severe blow by passing 
a law prohibiting on-board gambling. However, it failed to distinguish 
between cruise ships making multiple ports of call in the State while 
on an interstate voyage, and the so-called cruises to nowhere whose 
only purpose is shipboard gambling.
  Consequently, California's cruise ship industry, which had been 
growing at an average annual rate of 17 percent since 1989, began to 
run aground because cruise lines immediately revised their itineraries. 
The State's share of the global cruise ship business has dropped from 
10 percent to 7 percent at the same time growth in the cruise ship 
business overall has climbed 10 percent a year.
  My legislation is essential to restoring California's cruise ship 
industry which has lost hundreds of jobs and more than $250 million in 
tourist revenue since the State law's enactment. Many California cruise 
ship companies have bypassed second and third ports of call within 
California.
  The law to prohibit gambling cruises to nowhere has had the effect of 
discouraging cruise ships from traveling between California ports, even 
if the voyage is part of an interstate or international journey. In 
effect, a cruise ship traveling from Los Angeles to San Diego could no 
longer open its casinos, even in international waters. But if the ship 
bypassed San Diego and sailed directly to a foreign port, it could open 
its casinos as soon as it was in international waters.
  According to the Port of San Diego, that port alone has lost $78 
million in economic impact, hundreds of jobs and over 300 cruise ship 
calls. That is more than two-thirds of its cruise ship business.
  Los Angeles has lost business as well, with the projected loss of 
port revenue is $3 million, with 118 annual vessel calls at risk. 
Beyond the port, the economic impact to the city amounts to $14 million 
in tourism and $26 million in retail sales. The total impact estimated 
by the Port of Los Angeles is an estimated $159 million and 2,400 
direct and indirect jobs.
  Ports all along the coast from Humboldt Bay to San Diego have 
suffered economic losses. For a State still recovering from an economic 
recession, defense downsizing and back-to-back natural disasters, a 
blow to a major industry in the State--tourism--is unfathomable.
  Section 1106 would resolve this problem by allowing a cruise ship 
with gambling devices to make multiple ports of call in one State and 
still be considered to be on an interstate or international voyage, if 
the ship reaches an out-of-State or foreign port within 3 days.
  Gambling operations still would be permitted only in international 
waters. The effect would expand only the non-gambling aspects of cruise 
ship tourism by permitting more ports of call within the State. 
California is the only State affected by this bill.
  Mr. President, former Congresswoman Lynn Schenk had labored 
tirelessly to include this legislation in the House Coast Guard bill. 
Unfortunately, the bill died in the Senate last year when the Coast 
Guard bill was lumped together with other maritime legislation that 
stalled.
  The future of California's cruise industry rides on this provision. 
An identical provision is contained in the House version of the Coast 
Guard authorization bill. I urge my colleagues to swiftly resolve the 
other issues in conference and send the bill to the President for his 
signature.

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