[Congressional Record Volume 142, Number 131 (Friday, September 20, 1996)]
[Senate]
[Pages S11094-S11096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

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                   THE MARITIME SECURITY ACT OF 1996

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                   GRASSLEY AMENDMENTS NOS. 5393-5395

  Mr. GRASSLEY proposed three amendments to the bill (H.R. 1350) to 
amend the Merchant Marine Act, 1936

[[Page S11095]]

to revitalize the U.S.-flag merchant marine, and for other purposes; as 
follows:

                           Amendment No. 5393

       On page 23, after line 25, insert the following:
       ``(7) Fair and reasonable compensation.--The term `fair and 
     reasonable compensation' means that charges for 
     transportation provided by a vessel under section 653 do not 
     exceed by more than 6 percent the lowest charges for the 
     transportation of similar volumes of containerized or break 
     bulk cargoes for private persons.
       At the end of the bill, insert the following:

     SEC. 18. MERCHANT MARINE ACT, 1936.

       Section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1241(b)) is amended by adding at the end the following 
     new paragraph:
       ``(3) For the purposes of this subsection, the Secretary of 
     Transportation shall consider the rates of privately owned 
     United States-flag commercial vessels that are available to 
     an agency to transport cargo pursuant to paragraph (1) not to 
     be fair and reasonable if, at the time the agency arranges 
     for the transportation of the cargo, the lowest acceptable 
     rate offered for the transportation by a privately owned 
     United States-flag commercial vessel exceeds the lowest 
     acceptable rate offered for the transportation by a foreign-
     flag commercial vessel by more than 6 percent.''.

     SEC. 19. MILITARY SUPPLIES.

       (a) In General.--Section 2631 of title 10, United States 
     Code, is amended--
       (1) is subsection (a)--
       (A) in the second sentence, by striking ``is excessive or 
     otherwise unreasonable'' and inserting ``is not fair and 
     reasonable''; and
       (B) in the third sentence, by striking ``by those vessels 
     may not be higher than the charges made for transporting like 
     goods for private persons'' and inserting ``by those vessels 
     as containerized or break bulk cargoes may not be higher than 
     the charges made for transporting similar volumes of 
     containerized or break bulk cargoes for private persons''. 
     (2) in subsection (b)--
       (A) by redesignating paragraph (3) as paragraph (4); and
       (B) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) For purposes of this section, the President shall 
     consider the rates charged by a vessel referred to in this 
     section not to be fair and reasonable if, at the time the 
     arrangement is made for the transportation by sea of supplies 
     referred to in subsection (a), the lowest acceptable freight 
     offered for the transportation by any such vessel exceeds by 
     more than 6 percent the lowest acceptable freight charged by 
     a foreign-flag commercial vessel for transporting similar 
     volumes of containerized or break bulk cargoes between the 
     same geographic trade areas of origin and destination.''.
       (b) Motor Vehicles for Member on Charge of Permanent 
     Station.--Section 2634 of title 10, United States Code, is 
     amended--
       (1) in subsection (a)(3), by inserting ``or if the freight 
     charged by a vessel, referred to in clause (1) or (2) is not 
     fair and reasonable'' after ``available''; and
       (2) by adding at the end of subsection (b) the following 
     new clause:
       ``(3) The term `fair and reasonable' means with respect to 
     the transportation of a motor vehicle by a vessel referred to 
     in clause (1) or (2) of subsection (a) that the freight 
     charged for such transportation does not exceed, by more than 
     6 percent, the lowest freight charged for such transportation 
     by a vessel referred to in clause (3).''.
                                                                    ____


                           Amendment No. 5394

       On page 16, between lines 23 and 24, insert the following:
       ``(q) Prohibition on the Use of Funds for Lobbying or 
     Public Education.--
       ``(1) In general.--An operating agreement under this 
     subtitle shall provide that no payment received by an owner 
     or operator under the operating agreement may be used for the 
     purpose of lobbying or public education.
       ``(2) Definitions.--For purposes of this subsection, the 
     terms `lobbying' and `public education' shall have the 
     meanings provided those terms by the Secretary of 
     Transportation.''
       On page 18, between lines 21 and 22, insert the following:
       ``(4) Prohibition on the use of funds for lobbying or 
     public education.--
       ``(A) In general.--An Emergency Preparedness Agreement 
     under this section shall provide that no payment received by 
     a contractor under this section may be used for the purpose 
     of lobbying or public education.
       ``(B) Definitions.--For purposes of this paragraph, the 
     terms `lobbying' and `public education' shall have the 
     meanings provided those terms by the Secretary of 
     Transportation.''
       On page 26, between lines 17 and 18, insert the following 
     new subsection:
       ``(c) Prohibition of the Use of Funds for Lobbying or 
     Public Education.--Section 603 of the Merchant Marine Act, 
     1936 (46 U.S.C. App. 1173) is amended by adding at the end 
     the following new subsection:
       `` `(g) Prohibition on the Use of Funds for Lobbying or 
     Public Education.--
       `` `(1) In general.--No subsidy received by a contractor 
     under a contract under this section may be used for the 
     purpose of lobbying or public education.
       `` `(2) Definitions.--For purposes of this subsection, the 
     terms, ``lobbying'' and ``public education'' shall have the 
     meanings provided those terms by the Secretary of 
     Transportation'.''
       On page 16, between lines 23 and 24, insert the following:
       ``(q) Prohibition on the Use of Funds to Influence an 
     Election.--An operating agreement under this subtitle shall 
     provide that no payment received by an owner or operator 
     under the operating agreement may be used for the purpose of 
     influencing an election.''.
       On page 18, between lines 21 and 22, insert the following:
       ``(4) Prohibition on the use of funds to influence an 
     election.--An Emergency Preparedness Agreement under this 
     section shall provide that no payment received by a 
     contractor under this section may be used for the purpose of 
     influencing an election.''.
       On page 26, between lines 17 and 18, insert the following:
       ``(c) Prohibition on the Use of Funds To Influence an 
     Election.--Section 603 of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1173) is amended by adding at the end the 
     following:
       `` `(g) Prohibition on the Use of Funds To Influence an 
     Election.--No subsidy received by a contractor under a 
     contract under this section may be used for the purpose of 
     influencing an election.''.
                                                                    ____


                           Amendment No. 5395

       At the appropriate place, insert the following new section:

     SEC   . IMPLEMENTATION OF VOLUNTARY INTERMODAL SEALIFT 
                   AGREEMENT.

       (a) In General.--In any national emergency covered under 
     the Voluntary Intermodal Sealift Agreement described in the 
     notice issued by the Maritime Administration on October 19, 
     1995, at 60 Fed. Reg. 54144, the Secretary of Transportation 
     shall ensure that, to the maximum extend practicable, United 
     States-flag vessels are called into service to satisfy 
     Department of Defense contingency sealift requirements under 
     a Stage III activation of the Agreement (as described in the 
     notice) before foreign flag vessels are used to satisfy any 
     such requirements.
       (b) Level of Participation.--
       (1) In general.--Notwithstanding any other provision of 
     law, United States-flag vessels that are the subject to a 
     payment or subsidy under title VI of the Merchant Marine Act, 
     1936, as amended by section 2 of this Act, shall be required 
     to participate under the Voluntary Intermodal Sealift 
     Agreement in accordance with this section.
       (2) Stage iii level of participants.--In a Stage III 
     activation of the Voluntary Intermodal Sealift Agreement, a 
     carrier shall make available for satisfying Department of 
     Defense contingency sealift requirements 100 percent of the 
     carrier's United States-flag vessels that are subject to a 
     payment or subsidy referred to in paragraph (1).
       (3) Stage i or ii level of participation.--In a Stage I or 
     II activation of the Voluntary Intermodal Sealift Agreement, 
     a carrier shall make available for satisfying Department of 
     Defense contingency sealift requirements the maximum 
     percentage practicable for the carrier's United States-flag 
     vessels that are subject to a payment or subsidy referred to 
     in paragraph (1).
       (c) Requirement for Certain Stage III Participants.--
       (1) Requirement.--Notwithstanding any other provision of 
     law, in the provision of sealift services in accordance with 
     a Stage III activation of the Voluntary Intermodal Sealift 
     Agreement, a United States-flag vessel referred to in 
     subsection (b) shall be operated by a crew composed entirely 
     of United States citizens--
       (A) whenever the vessel is in a combat zone; and
       (B) during any other activity under Stage III of such 
     agreement.
       (2) Prohibition.--A carrier may not use any vessel other 
     than a United States-flag vessel operated by a crew composed 
     entirely of citizens of the United States to provide any part 
     of sealift services that the carrier is obligated to provide 
     under a Stage III activation of the Voluntary Intermodal 
     Sealift Agreement.
       (d) Consultation.--The Administrator of the Maritime 
     Administration, in consultation with the Secretary of 
     Defense, shall establish procedures to ensure that the 
     requirements of this section are met.
       (e) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (1) Combat zone.--The term ``combat zone'' shall have the 
     meaning provided that term in section 112(c)(2) of the 
     Internal Revenue Code of 1986.
       (2) National emergency.--The term ``national emergency'' 
     means a general declaration of emergency with respect to the 
     national defense made by the President or by the Congress.
                                 ______
                                 

                       HARKIN AMENDMENT NO. 5396

  Mr. INOUYE (for Mr. Harkin) proposed an amendment to amendment No. 
5393 proposed by Mr. Grassley to the bill, H.R. 1350, supra; as 
follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC.   . OCEAN FREIGHT CHARGES.

       (a) In General.--Notwithstanding any other provision of 
     law, the Secretary of Transportation shall finance any ocean

[[Page S11096]]

     freight charges for food or export assistance provided by the 
     Federal Government for any fiscal year, to the extent that 
     such charges are greater than would otherwise be the case 
     because of the application of a requirement that agricultural 
     commodities be transported in United States-flag vessels.
       (b) Application of Other Acts.--Subsections (c), (d), and 
     (e) of section 901d of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1241h) shall apply to reimbursements required 
     under subsection (a).
       (c) Definitions.--As used in this section:
       (1) Agricultural commodity.--Ther term ``agricultural 
     commodity'' has the same meaning given to such term by 
     section 402 of the Agricultural Trade Development and 
     Assistance Act of 1954.
       (2) Food assistance.--The term ``food assistance'' means 
     any export activity described in section 901b(b) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1241f(b)).

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