[Congressional Record Volume 145, Number 62 (Monday, May 3, 1999)]
[Senate]
[Pages S4579-S4580]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON (for herself, Mr. McCain, Mr. Hollings, and Mr. 
        Inouye):
  S. 937. A bill to authorize appropriations for fiscal years 2000 and 
2001 for certain maritime programs of the Department of Transportation, 
and for other purposes; to the Committee on Commerce, Science, and 
Transportation.


  maritime administration authorization act for fiscal years 2000 and 
                                  2001

 Mrs. HUTCHISON. Mr. President, today I rise to introduce 
legislation on behalf of myself, Senator McCain, chairman of the Senate 
Commerce Committee, Senator Hollings, the ranking member of the 
Commerce Committee and Senator Inouye, Surface Transportation and 
Merchant Marine Subcommittee ranking member. This legislation 
authorizes appropriations for fiscal year 2000 for the Maritime 
Administration.
  The introduction of this bill demonstrates our firm commitment to our 
nation's maritime industry and our willingness to work with the 
Maritime Administration to provide effective leadership on a wide range 
of maritime issues. The bill was developed along with Administration 
officials and provides a base to build upon in coming weeks.
  There are several aspects of this measure that will require 
interested members of the Senate to work together to come to a 
consensus. Therefore, this bill can be viewed as a starting point for 
reauthorizing the agency and making changes to U.S. maritime policy. I 
look forward to working with members of the Committee and the 
administration to find common ground for a final legislation.
  The bill authorizes appropriations for the Maritime Administration 
[MarAd] for fiscal year 2000 and covers two appropriated accounts: (1) 
operations and training and (2) the shipbuilding loan guarantee program 
authorized by Title XI of the Merchant Marine Act, 1936.
  MarAd oversees the operations of U.S. Government-supported maritime 
promotion programs, such as the Maritime Security Program, the state 
maritime academies and the U.S. Merchant Marine Academy. I am a strong 
supporter of the state maritime academies, in particular, and want to 
ensure that they are adequately funded.
  Title XI shipbuilding loan guarantee program is important to ensuring 
critical shipbuilding capacity in the United States. This legislation 
provides $6 million in loan guarantee funds for Title XI in FY2000. 
However, this program has received substantially more in previous 
years, and I look forward to working with the Administration to 
determine the appropriate level of funding.
  This bill codifies the administrative process associated with Title 
XI. The measure provides the Secretary the authority to hold all bond 
proceeds generated under Title XI during the construction period in 
escrow. Currently, the Secretary must administratively establish a 
separate construction fund with a private bond agent for a portion of 
the bond proceeds not captured in escrow. This will eliminate the cost 
associated with the establishment of the

[[Page S4580]]

separate construction fund and better protect the government's 
interest.

  Futher, the measure provides the Secretary authority under Title XI 
to collect and hold cash collateral in the U.S. Treasury, under certain 
circumstances associated with a guaranteed transaction. This will 
relieve the obligors and the agency from spending the time and money 
associated with negotiating depository agreements and legal opinions in 
Title XI transactions.
  Additionally, the bill amends Title IX to provide a waiver of the 
three year period bulk and breakbulk vessels newly registered under the 
U.S. flag must wait in order to carry government-impelled cargo. The 
waiver would be in effect for one year beginning on the date of 
enactment.
  Finally, the bill would reauthorize the War Risk Insurance Program 
through June 30, 2005, change the requirement for an annual report to 
Congress by the Maritime Administration detailing its's activities to a 
biennial report, and make clear the ownership status of the vessel 
named the Jeremiah O'Brien.
  I look forward to working on this important legislation and hope my 
colleagues will join me and the other sponsors in expeditiously moving 
this authorization through the legislative process.
 Mr. McCAIN. Mr. President, I am pleased to join Senator 
Hutchison, Chairman of the Surface Transportation and Merchant Marine 
Subcommittee in the introducing the Maritime Administration 
Authorization Act for Fiscal Year 2000.
  The bill was developed along with administration officials and 
provides a firm base to build on in coming weeks. While I do not fully 
agree with all aspects of this measure. I look forward to an open 
debate in formulating final legislation.
  The bill authorizes appropriations for the Maritime 
Administration[MarAd] for fiscal year 2000 covering operations and 
training along with the loan guarantee program authorized by title XI 
of the Merchant Marine Act, 1936. MarAd's oversight of the operations 
of U.S. Government-suppored maritime promotion programs are as 
important toady as ever. With increasing pressure on our nation's 
military resources, MarAd's administration of the Martime Security 
Program provides an important link in insuring that our troops world 
wide receive essential supplies in a timely and efficient manor.
  This bill will streamline several administrative processes associated 
with the Title XI Loan Guarantee Program. The measure provides the 
Secretary of Transportation with additional authority to secure loan 
guaranteed by allowing collateral collected to be held in the U.S. 
Treasury. This will not only save time and money associated with 
negotiating depository agreements but will provide greater security for 
tax payers funds appropriated for this program.
  Further, the bill amends Title IX of the Merchant Marine At of 1936 
to provide a waiver for eliminating the three year period bulk and 
breakbulk vessels newly registered under the U.S. flag must wait in 
order to carry government-impelled cargo; reauthorize the War Risk 
Insurance Program through June 30, 2005; reduces the requirement for an 
annual report to Congress by the Maritime Administration detailing 
its's activities to be a biennial report; and makes clear the ownership 
status of the vessel names the Jeremian O'Brien.
  I am pleased that the Subcommittee is taking this action today and 
will join Senator Hutchison and the other sponsors in expeditiously 
moving this authorization through the legislative proceeds.
                                 ______