[Congressional Record Volume 145, Number 9 (Wednesday, January 20, 1999)]
[Senate]
[Pages S763-S764]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE:
  S. 259. A bill to increase the role of the Secretary of 
Transportation in administering section 901 of the Merchant Marine Act, 
1936, and for other purposes; to the Committee on Commerce, Science, 
and Transportation.


transportation in American vessels of government personnel and certain 
                                cargoes

  Mr. INOUYE. Mr. President, the legislation I am introducing today 
would centralize the authority to administer our nation's cargo 
preference laws in the Department of Transportation. Cargo preference 
statutes assure U.S.-flag ships a minimum share of cargoes produced by 
U.S. government programs. They play an important role in ensuring our 
nation's economic security and the existence of a U.S.-flag merchant 
fleet to assist in national security during times of national 
emergencies. This tremendous benefit is achieved at a minimal cost. 
Under present law, cargo reservation is the only direct support a 
majority of the U.S. merchant fleet receives. I would also like to 
point out that a cargo preference policy is not unique. Other nations 
also provide their merchant fleet preference in carrying cargoes their 
governments generate.
  The Maritime Administration, which is part of the Department of 
Transportation, has been tasked with the difficult duty of monitoring 
the administration of and compliance with U.S. cargo preference laws 
and regulations by federal agencies with regard to programs generating 
ocean-born cargoes.

[[Page S764]]

Major programs monitored include humanitarian aid shipments provided by 
the U.S. Department of Agriculture and the U.S. Agency for 
International Development, commodities financed by the Export-Import 
Bank, foreign military sales, and Department of Defense cargo shipped 
by commercial ocean carriers. These are cargoes generated exclusively 
by our government.
  In the past, compliance by federal agencies with the requirements of 
the cargo reservation laws has been chaotic, uneven and varied from 
agency to agency. In 1962, President John F. Kennedy, in issuing a 
directive to all executive branch departments and agencies, recognized 
the importance of our cargo preference policy in fostering a modern, 
privately owned, merchant marine capable of serving as a naval and 
military auxiliary in time of war or national emergency. At the time, 
President Kennedy stated that, ``the achievement of this national 
policy is even more essential now because of the worldwide economic and 
defense burdens facing the United States.'' Never has this sentiment 
been more true than now.
  Mr. President, this legislation will merely make certain that federal 
agencies adhere to existing cargo preference laws, and give the 
Maritime Administration authority to respond to violations with the 
proper penalties or sanctions. I ask unanimous consent that the text of 
this bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 259

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

     SECTION 1. TRANSPORTATION IN AMERICAN VESSELS OF GOVERNMENT 
                   PERSONNEL AND CERTAIN CARGOES.

       Section 901(b)(2) of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 2141 (b)(2)), is amended to read as follows:
       ``(2)(A) Notwithstanding any other provision of law, the 
     Secretary of Transportation shall have the sole 
     responsibility for determining and designating the programs 
     that are subject to the requirements of this subsection. Each 
     department or agency that has responsibility for a program 
     that is designated by the Secretary of Transportation 
     pursuant to the preceding sentence shall, for the purposes of 
     this subsection, administer such program pursuant to 
     regulations promulgated by such Secretary.
       ``(B) The Secretary of Transportation shall--
       ``(i) review the administration of the programs referred to 
     in subparagraph (A);
       ``(ii) resolve any question concerning the administration 
     of those programs with respect to this section;
       ``(iii) provide for penalties and sanctions for violation 
     of this Act; and
       ``(iv) on an annual basis, submit a report to Congress 
     concerning the administration of such programs.''.

     SEC. 2. CONFORMING CARGO PREFERENCE YEAR TO FEDERAL FISCAL 
                   YEAR.

       Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 
     U.S.C App. 1241f(c)(2)) is amended by striking ``1986.'' and 
     inserting ``1986, the 18-month period commencing April 1, 
     1999, and the 12-month period beginning on the first day of 
     October in the year 2000 and each year thereafter.''.
                                 ______