[Congressional Record Volume 144, Number 91 (Friday, July 10, 1998)]
[Senate]
[Pages S7958-S7959]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BREAUX:
  S. 2290. A bill to promote the construction and operation of cruise 
ships in the United States; to the Committee on Commerce, Science, and 
Transportation.


                  u.s. flag cruise vessels legislation

 Mr. BREAUX. Mr. President, today I introduce legislation which 
I believe will help achieve the development of a United States cruise 
vessel industry and generate numerous economic benefits for our country 
through the operation of United States-flag cruise vessels between 
American ports.
  There is little doubt that we should take significant and innovative 
action so that American ports, businesses and workers can share in the 
economic benefits that can be realized through the operation of cruise 
vessels in the United States domestic trade.
  Recently, the Subcommittee on Surface Transportation and Merchant 
Marine held an oversight hearing on the need to generate cruise vessel 
operations between American ports. In fact, as a result of the hearing, 
many of our colleagues, including the Chairman of our Commerce 
Committee Senator McCain, are committed to moving forward on cruise 
vessel legislation this year so our port economies throughout the 
country can begin to benefit through cruise vessel operations.
  As strongly as I am committed to helping ports in my state of 
Louisiana and throughout our country to attract and benefit from 
increased cruise vessel operations, I am equally convinced that we will 
not achieve the full measure of these economic benefits if we simply 
allow foreign flag passenger vessels to operate between America's 
ports. Rather, I believe we should be directing our efforts to develop 
a large, modern and competitive cruise vessel fleet comprised of 
vessels built in the United States, operated under the United States-
flag, and crewed by United States citizens. Otherwise, we would simply 
be allowing foreign companies and foreign workers to receive all the 
privileges and benefits that come with operating in the United States 
domestic trade without any of the associated and resultant obligations 
and responsibilities we impose on American companies and American 
workers.
  The legislation I am introducing today is intended to reflect the 
economic realities facing companies seeking to enter the domestic 
cruise trade and the desire of American ports to attract cruise vessels 
as quickly as possible. It will jumpstart the domestic cruise vessel 
industry by allowing American companies to acquire foreign built cruise 
vessels and operate those ships in the domestic cruise trade under very 
specific and limited circumstances. These vessels will be documented 
under the laws of the United States, run with American citizen crews, 
and operated in compliance with all applicable United States laws, 
regulations and tax obligations.
  My legislation reflects the principles embodied in our Nation's 
cabotage laws while recognizing that a waiver of the Passenger Vessel 
Services Act, under specific terms and conditions, is absolutely 
necessary to attract United States-flag cruise vessels into our 
domestic trades.
  Especially significant is the fact that in order to take advantage of 
the authority to operate such vessels in the domestic trades, the owner 
must agree, and my legislation requires, that they will first enter 
into a contract to build a replacement vessel or vessels in a United 
States shipyard.
  I share the desire of Senator McCain and our colleagues to develop 
legislation that will immediately and dramatically increase domestic 
cruise vessel operations. However, I am convinced that we should not 
let this present opportunity pass by--we have a legitimate opportunity 
to increase the size of the oceangoing United States-flag cruise vessel 
fleet and to greatly increase the opportunity for American ports to 
attract and benefit from cruise vessel activity. I am aware of at least 
one American company ready to take advantage of this legislation, 
acquire two modern, attractive, large cruise vessels and operate them 
under the United States-flag under the terms and conditions set forth 
in my proposal.
  I ask all my colleagues to join with me in support of this proposal 
so we can achieve the operation and construction of United States-flag 
cruise vessels.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2290

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PURPOSE.

       The purpose of this Act is to allow foreign-constructed 
     vessels to be documented as vessels of the United States with 
     the right to engage in the domestic coastwise cruise trade in 
     connection with the construction of cruise vessels in the 
     United States.

     SEC. 2. COASTWISE TRANSPORTATION OF PASSENGERS.

       (a) Reflagging.--
       (1) In general.--Notwithstanding section 12106(a)(2) of 
     title 46, United States Code, section 27 of the Merchant 
     Marine Act, 1920 (46 U.S.C. App. 883), the Act of June 19, 
     1886 (46 U.S.C. App. 289), or any other provision of law, the 
     Secretary of Transportation may issue a certificate of 
     documentation with a coastwise endorsement for a cruise 
     vessel not constructed in the United States to a person who 
     enters into a binding contract for construction in the United 
     States of a cruise vessel or vessels with a total combined 
     berth or stateroom capacity equal to at least 75 percent of 
     the total combined berth or stateroom capacity of the cruise 
     vessel or vessels for which the certificate is to be issued 
     under this paragraph.
       (2) Certificate sunset.--A certificate of documentation 
     issued to a vessel under paragraph (1) shall terminate 2 
     years after the date on which all vessels constructed under 
     the binding contract have been delivered.

[[Page S7959]]

       (b) Limitations.--
       (1) No competition with u.s.-built vessels.--A vessel 
     issued a certificate of documentation under subsection (a)(1) 
     may not operate in the coastwise cruise trade on a route 
     served by a cruise vessel built in the United States 
     operating under the authority of section 27 of the Merchant 
     Marine Act, 1920 (46 U.S.C. App. 883), the Act of June 19, 
     1886 (46 U.S.C. App. 289), section 12106(a)(2) of title 46, 
     United States Code, or any other authority of law in effect 
     on or before the date of enactment of this Act.
       (2) Hawaiian routes prohibited.--A vessel issued a 
     certificate of documentation under subsection (a)(1), or 
     constructed under a binding contract referred to in that 
     subsection, may not operate between or among the islands of 
     Hawaii.

     SEC. 3. CONSTRUCTION STANDARDS.

       A vessel issued a certificate of documentation under 
     subsection (a)(1) that meets the standards and conditions for 
     the issuance of a control verification certificate for a 
     cruise vessel documented under the laws of a foreign country 
     embarking passengers in the United States is deemed to be in 
     compliance with section 3309 of title 46, United States Code.

     SEC. 4. FOREIGN TRANSFER.

       Notwithstanding section 9(c) of the Shipping Act, 1916 (46 
     U.S.C. App. 808), a cruise vessel issued a certificate of 
     documentation under subsection (a)(1), or constructed under a 
     binding contract referred to in that subsection, may be 
     placed under foreign registry after its documentation under 
     subsection (a) or its initial documentation (in the case of a 
     vessel so constructed), but the Secretary shall revoke the 
     coastwise endorsement issued for any such vessel when it is 
     placed under foreign registry.

     SEC. 5. DEFINITIONS.

       In this Act:
       (1) Coastwise cruise trade.--The term ``coastwise cruise 
     trade'' means the transportation of passengers in coastwise 
     trade between points in the United States, either directly or 
     by way of a foreign point, or originating and terminating at 
     the same point in the United States.
       (2) Cruise vessel.--The term ``cruise vessel'' means a 
     vessel that--
       (A) is at least 10,000 gross tons as measured under chapter 
     142 of title 46, United States Code; and
       (B) has berth or stateroom accommodations for at least 275 
     passengers.
                                 ______