[Congressional Record Volume 145, Number 114 (Thursday, August 5, 1999)]
[Senate]
[Pages S10407-S10409]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCain (for himself, Mrs. Hutchison, Mrs. Feinstein, and 
        Mr. Murkowski):
  S. 1510. A bill to revise the laws of the United States appertaining 
to United States cruise vessels, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.


         THE UNITED STATES ship TOURISM DEVELOPMENT ACT OF 1999

  Mr. McCain. Mr. President, today I, with Senators Hutchison, 
Feinstein, and Murkowski, are introducing the United States Cruise Ship 
Tourism Development Act of 1999. The purposes of this bill is to 
provide increased domestic cruise opportunities for the American 
cruising public by temporarily reducing barriers to operation in the 
domestic cruise market. I want to start by thanking Senator Hutchison, 
who as Chairman of the Surface Transportation and Merchant Marine 
Subcommittee is continuing her efforts to help rebuild our nation's 
cruise ship industry. She along with Senators Feinstein and Murkowski 
are great partners to have as this legislation moves forward.
  Americans today have a wide variety of choices when it comes to 
vacationing on large oceangoing cruise ships. However, due to barriers 
to entry that were created in 1886, the itineraries, with few 
exceptions, do not include domestic trade. Large cruise ship domestic 
trade options are currently limited to one ocean going cruise vessel in 
Hawaii. Also, the U.S. port calls on international itineraries are 
heavily concentrated in Florida and Alaska due to the proximity of 
these states to neighboring countries. This means that America's 
cruising public is denied the opportunity to cruise to many attractive 
U.S. port destinations, and those ports are denied the economic 
benefits of those visits.
  We have an opportunity in this Congress to temporarily reduce 
barriers for entry into the domestic cruise ship trade, creating new 
U.S. jobs, and generating millions of dollars in new U.S. business 
without any cost to existing U.S. jobs. During the 105th Congress three 
separate bills addressing the domestic cruise ship trade were referred 
to the Commerce Committee. Unfortunately, we were not able to reach a 
consensus on any measure that would remove the barriers created in the 
law measure that would remove the barriers created in the law commonly 
referred to as the Passenger Vessel Services Act. I am hopeful that the 
bill that we are introducing today will see more success.
  While I have made it clear in the past that I would like to do away 
with the trade barriers contained in the Passenger Vessel Services Act, 
this bill does not do that. What this bill does do is allow the 
Secretary of Transportation a limited time to waive certain coastwise 
trade restrictions. It is my strong belief that this will stimulate 
growth and opportunity within the domestice cruise ship trade with the 
beneficiaries being U.S. port cities and business, and more 
importantly, the millions of American citizens who want to be able to 
enjoy cruising between U.S. ports. I expect some of my colleagues on 
the on the Commerce Committee may want to make additional changes to 
this bill in Committee. I look forward to working these issues out with 
them in the coming months.
  I believe it is important for this Congress to take action on this 
issue in order to maximize the economic growth potential of the 
domestic cruise ship trade and the cruising opportunities for America's 
public.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.

                                S. 1510

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

     SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

       (a) Short Title.--This Act may be cited as the ``United 
     States Cruise Ship Tourism Development Act of 1999''.
       (b) Table of Sections.--The table of sections for this Act 
     is as follows:
Sec. 1. Short title; table of sections.
Sec. 2. Definitions.

[[Page S10408]]

                    Title I--Operations Under Permit

Sec. 101. Domestic cruise vessel.
Sec. 102. Domestic itinerary operating requirements.
Sec. 103. Certain operations prohibited.
Sec. 104. Limited employment of eligible cruise vessels in the 
              coastwise trade of the United States.
Sec. 105. Priorities within domestic markets.
Sec. 106. Construction standards.

      Title II--Post-Permit Operations of Eligible Cruise Vessels

Sec. 201. Continued operation in domestic itinerary requirements.

                      Title III--Other Provisions

Sec. 301. Amendment of title XI of the Merchant Marine Act, 1936
Sec. 302. Application with Jones Act and other Acts.
Sec. 303. Glacier Bay and other National Park Service area permits.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Eligible cruise vessel.--The term ``eligible cruise 
     vessel'' means a cruise vessel that--
       (A) is documented under the laws of the United States or 
     the laws of another country;
       (B) is not otherwise qualified to engage in the coastwise 
     trade between ports in the United States;
       (C) was delivered after January 1, 1980;
       (D) provides a full range of overnight accommodations, 
     entertainment, dining, and other services for its passengers;
       (E) has a fixed smoke detection and sprinkler system 
     installed throughout the accommodation and service spaces, or 
     will have such a system installed within the time period 
     required by the 1992 Amendments to the Safety of Life at Sea 
     Convention of 1974; and
       (F) displaces--
       (i) greater than 20,000 gross registered tons; or
       (ii) more than 9,000 gross registered tons and has an all-
     suites luxury configuration with a minimum of 240 square feet 
     per revenue room.
       (2) Itinerary.--The term ``itinerary'' means the route 
     travelled by a cruise vessel on a single voyage that begins 
     at the first port of embarkation for passengers on that 
     voyage, includes each port at which the vessel docks before 
     the last port of disembarkation for such passengers, and ends 
     at that last port of disembarkation.
       (3) Operating day.--The term ``operating day'' means a day 
     of the week on which a vessel embarks, transports, or 
     disembarks passengers.
       (4) Operator.--The term ``operator'' means the owner, 
     operator, or charterer.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (6) United states-flag vessel.--The term ``United States-
     flag vessel'' means a vessel documented under subsection (a) 
     or (d) of section 12102 of title 46, United States Code.

                    TITLE I--OPERATIONS UNDER PERMIT

     SEC. 101. DOMESTIC CRUISE VESSEL.

       (a) In General.--Notwithstanding the provisions of section 
     8 of the Act of June 19, 1886 (46 U.S.C. App. 289), or any 
     other provision of law, the Secretary may issue a permit for 
     an eligible cruise vessel to operate in domestic itineraries 
     in the transportation of passengers in the coastwise trade 
     between ports in the United States.
       (b) Maximum Operating Days.--An eligible cruise vessel not 
     documented under the laws of the United States that is 
     operated under a permit issued by the Secretary under 
     subsection (a) may not be operated under that permit for more 
     than 200 operating days.
       (c) Expiration of Permit Authority.--Except as otherwise 
     provided in section 201 of this Act, a permit issued by the 
     Secretary under subsection (a) shall terminate December 31, 
     2006.
       (d) Operating Window.--The authority of the Secretary to 
     issue a permit under subsection (a) begins on the day after 
     the date of enactment of this Act and terminates on the day 
     that is 3 years after that date.

     SEC. 102. DOMESTIC ITINERARY OPERATING REQUIREMENTS.

       (a) In General.--Except as provided in section 104 of this 
     Act, the Secretary may not approve an itinerary for a voyage 
     commencing less than 1 year after the date of enactment of 
     this Act requested by an eligible cruise vessel that is not 
     documented under the laws of the United States.
       (b) Regulatory Requirements.--The Secretary may not issue a 
     permit under section 101(a) for an eligible cruise vessel not 
     documented under the laws of the United States unless the 
     operator establishes to the satisfaction of the Secretary 
     that, except as otherwise provided in this Act, the vessel 
     will be operated in full compliance with all rules, 
     regulations, and operating requirements relating to health, 
     safety, environmental protection and other appropriate 
     operational standards (as determined by the Secretary), that 
     would apply to any United States-flag cruise vessel operating 
     in domestic itineraries in the transportation of passengers 
     under a permit issued under section 101(a). The Secretary 
     shall issue final rules under this section within 180 days 
     after the date of enactment of this Act.
       (c) Repairs.--
       (1) In general.--The Secretary may not issue a permit under 
     section 101(a) for an eligible cruise vessel unless the 
     operator establishes to the satisfaction of the Secretary 
     that--
       (A) any repair, maintenance, alteration, or other 
     preparation of the vessel for operation under a permit issued 
     under section 101(a) has been, or will be, performed in a 
     United States shipyard; and
       (B) any repair or maintenance of the vessel after a permit 
     is issued under that section and before the expiration of the 
     operating limitation period in section 101(b) will be 
     performed in a United States shipyard.
       (2) Waiver.--The Secretary may waive the requirements of 
     paragraph (1) if the Secretary finds that the repair, 
     maintenance, alterations, or other preparation services are 
     not available in the United States or if an emergency 
     dictates that the ship proceed to a foreign port.
       (d) Escrow Account.--The Secretary may not issue a permit 
     under section 101(a) for an eligible cruise vessel unless the 
     operator agrees to deposit $5 for each passenger embarking on 
     that vessel while operating under the permit into the escrow 
     fund established under section 1108 of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1270a).
       (e) Compliance.--If the Secretary determines that an 
     eligible cruise vessel is not in compliance with any 
     commitment made to the Secretary by its operator under this 
     Act, the permit issued for that vessel under section 101(a) 
     shall be null and void.

     SEC. 103. CERTAIN OPERATIONS PROHIBITED.

       An eligible cruise vessel operating in domestic itineraries 
     under a permit issued under section 101(a) may not--
       (1) operate as a ferry;
       (2) regularly carry for hire both passengers and vehicles 
     or other cargo; or
       (3) operate between or among the islands of Hawaii.

     SEC. 104. LIMITED EMPLOYMENT OF FOREIGN-FLAG CRUISE SHIPS IN 
                   THE COASTWISE TRADE OF THE UNITED STATES.

       (a) In General.--Notwithstanding section 12106 of title 46, 
     United States Code, section 27 of the Merchant Marine Act, 
     1920 (46 U.S.C. App. 883), and section 8 of the Act of June 
     19, 1886 (46 U.S.C. App. 289), the Secretary may approve the 
     employment in the coastwise trade of the United States of an 
     eligible cruise vessel operating under a permit issued under 
     section 101(a) of this Act for repositioning as provided by 
     under subsection (b) or for charter as provided by subsection 
     (c).
       (b) Repositioning.--An eligible cruise vessel not 
     documented under the laws of the United States operating 
     under a permit issued under section 101(a) of this Act may be 
     employed in the coastwise trade during the first year after 
     the date of enactment of this Act for not more than 2 
     voyages, the coastwise trade portion of which does not exceed 
     2 weeks and includes transportation of passengers for hire--
       (1) from one coast of the United States through the Panama 
     Canal to another coast of the United States; or
       (2) along one coast of the United States during a voyage 
     between 2 foreign countries.
       (c) Charters.--An eligible cruise vessel not documented 
     under the laws of the United States operating under a permit 
     issued under section 101(a) of this Act may be employed in 
     the coastwise trade during the first year after the date of 
     enactment of this Act if it is time-chartered to a charterer 
     that--
       (1) does not own or operate a cruise ship; and
       (2) is not affiliated with an owner or operator of a cruise 
     ship.
       (d) Priorities.--Section 105 applies to vessels employed in 
     the coastwise trade under this section.

     SEC. 105. PRIORITIES WITHIN DOMESTIC MARKETS.

       (a) In General.--The Secretary shall, by regulation, 
     establish a priority system for cruise vessels providing 
     passenger service in domestic itineraries within 180 days 
     after the date of enactment of this Act.
       (b) Priority to U.S.-Built or U.S.-Rebuilt Vessels.--Under 
     the regulations to be prescribed by the Secretary, a cruise 
     vessel built or rebuilt in the United States and documented 
     under the laws of the United States shall have priority over 
     any other cruise vessel of comparable size operating in a 
     comparable market under a permit issued under section 101(a).
       (c) Priority to U.S.-Flag Vessels.--The Secretary shall 
     prescribe regulations under which a cruise vessel documented 
     under the laws of the United States that is not built or 
     rebuilt in the United States has priority over an eligible 
     cruise vessel of comparable size not documented under the 
     laws of the United States that is operating in a comparable 
     market.
       (d) Factors Considered.--In determining and assigning 
     priorities under the regulations, the Secretary shall 
     consider, among other factors determined by the Secretary to 
     be appropriate--
       (A) the scope of a vessel's itinerary;
       (B) the time frame within which the vessel will serve a 
     particular itinerary; and
       (C) the size of the vessel.
       (e) Implementation.--
       (1) Intinerary submission required.--An eligible cruise 
     vessel may not be operated in a domestic itinerary unless the 
     operator has submitted a proposed itinerary for that vessel, 
     in accordance with this subsection, for cruise itineraries 
     for the calendar year beginning 2 years after the date on 
     which the itinerary is required to be submitted under 
     paragraph (2).
       (2) Time and manner of submission.--Each operator of an 
     eligible cruise vessel to be operated in a domestic itinerary 
     shall submit a proposed itinerary to the Secretary in the 
     form required by the Secretary in February

[[Page S10409]]

     of each year beginning after the date of enactment of this 
     Act.
       (3) Revisions and later submissions.--The Secretary shall 
     permit late submissions and revisions of submissions after 
     the final list of approved itineraries is published under 
     paragraph (4)(C) and before the date that is 90 days before 
     the start date of a requested itinerary, but a late 
     submission or revision by a higher priority cruise vessel may 
     not displace a priority assigned on the basis of timely 
     submission by a lower priority cruise vessel. If operators of 
     comparable vessels submit comparable requests within 30 days 
     of each other, the priorities of this section apply at the 
     discretion of the Secretary.
       (4) Scheduling.--
       (A) Action by secretary.--Within 60 days after receiving an 
     itinerary submitted under this subsection, the Secretary 
     shall--
       (i) review the schedule for compliance with the priorities 
     established by this section;
       (ii) advise affected cruise ship operators of any specific 
     itinerary that is not available and the reason it is not 
     available; and
       (iii) publish a proposed list of approved itineraries.
       (B) Operators response.--If the Secretary advises an 
     operator under subparagraph (A)(ii) that a requested 
     itinerary is not available, the operator may respond to the 
     Secretary's advice within 30 days after it is received by the 
     operator by appealing the Secretary's decision or by 
     submitting a new itinerary proposal.
       (C) Resolution of conflicts.--As soon as practicable after 
     the end of the 30-day period described in subparagraph (B), 
     the Secretary shall--
       (i) resolve any appeals and consider new itinerary 
     proposals;
       (ii) advise cruise ship operators who responded under 
     subparagraph (B) of the Secretary's decision with respect to 
     the appeal or the new itinerary proposal; and
       (iii) publish a final list of approved itineraries.
       (f) Itineraries Before Final List Is First Published.--
       (1) Requests.--For itineraries before the first calendar 
     year for which the Secretary publishes a final list of 
     approved itineraries under subsection (e), the operator of a 
     cruise vessel may submit a request for an itinerary to be 
     sailed before that calendar year.
       (2) Conflicting higher priority use.--If the itinerary 
     submitted by an operator under paragraph (1) conflicts with 
     an itinerary in use by a vessel with a higher priority under 
     this section, the Secretary shall disapprove the request and 
     notify the operator of the disapproval and the reason for the 
     disapproval within 5 days (Saturdays, Sundays, and legal 
     public holidays (as defined in section 6103 of title 5, 
     United States Code, excepted) after the request is received.
       (3) No initial conflict.--If the itinerary submitted by an 
     operator under paragraph (1) does not conflict with an 
     itinerary in use by a vessel with a higher priority under 
     this section, the Secretary shall publish the request and the 
     requested itinerary immediately. If, within 30 days after the 
     request is published, the operator of a cruise vessel with a 
     higher priority under this section requests the use of the 
     published itinerary, then the Secretary shall deny the 
     published request and approve the request for the higher 
     priority vessel. If no operator of a cruise vessel with a 
     higher priority under this section requests the use of the 
     published itinerary within 30 days after it is published, the 
     Secretary shall approve the requested itinerary and publish 
     notice of the approval.
       (4) Publication of interim itineraries.--Until the first 
     publication of a final list of approved itineraries under 
     subsection (e), the Secretary shall publish, on a quarterly 
     basis, a list of itineraries approved under this subsection.
       (g) Report.--The Secretary shall issue an annual report on 
     the number of operating days used by each cruise vessel 
     assigned a priority under this section.

     SEC. 106. CONSTRUCTION STANDARDS.

       An eligible cruise vessel for which the Secretary has 
     issued a permit under section 101(a) is deemed to be in 
     compliance with the requirements of section 3309 of title 46, 
     United States Code, if it 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.

      TITLE II--POST-PERMIT OPERATIONS OF ELIGIBLE CRUISE VESSELS

     SEC. 201. CONTINUED OPERATION IN DOMESTIC ITINERARY 
                   REQUIREMENTS.

       (a) In General.--After the expiration of its period of 
     operations under a permit issued under section 101(a), an 
     eligible cruise vessel not documented under the laws of the 
     United States may not operate in domestic itineraries unless 
     it meets the following conditions:
       (1) Documentation.--The vessel has been issued a 
     certificate of documentation with a coastwise endorsement.
       (2) Operating crew; support staff.--Each member of the 
     vessel's operating crew licensed or certified by the United 
     States Coast Guard is a citizen or resident alien of the 
     United States as required by section 8103 of title 46, United 
     States Code, and each individual employed aboard the vessel 
     who is not a member of the operating crew is a citizen or 
     permanent resident of the United States.
       (b) Construction plan.--The operator of an eligible cruise 
     vessel issued a permit under section 101(a) of this Act shall 
     demonstrate to the satisfaction of the Secretary that, as of 
     the date on which the vessel is documented under the laws of 
     the United States--
       (1) it has a plan for the construction of a cruise vessel 
     in the United States; or
       (2) it is a party to, or has made substantial progress 
     toward entering into, an enforceable contract for the 
     construction of such a vessel in the United States.
       (c) Expiration of Coastwise Endorsement.--The coastwise 
     endorsement for an eligible cruise vessel operating under 
     subsection (a) shall expire 24 months after the date on which 
     construction is completed on the last vessel the operator of 
     the eligible cruise vessel is obligated to construct in the 
     United States under the contract described in subsection (b).
       (d) Reflagging under Foreign Registry.--Notwithstanding 
     section 9(c) of the Shipping Act, 1916 (46 U.S.C. App. 808), 
     the operator of an eligible cruise ship issued a certificate 
     of documentation with a coastwise endorsement, or a cruise 
     vessel constructed under a contract described in subsection 
     (a)(4), may place that vessel under foreign registry. The 
     Secretary shall revoke the coastwise endorsement for any such 
     vessel placed under foreign registry under this subsection 
     permanently. Any vessel the coastwise endorsement for which 
     is revoked under this subsection is not eligible thereafter 
     for coastwise endorsement.

                      TITLE III--OTHER PROVISIONS

     SEC. 301. AMENDMENT OF TITLE XI OF THE MERCHANT MARINE ACT, 
                   1936.

       (a) Risk Factor.--Section 1103(h) of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1103(h)) is amended by adding at 
     the end thereof the following:
       ``(5) For purposes of the risk factor described in 
     paragraph (3)(I), the Secretary shall consider an applicant 
     for a guarantee, or a commitment to guarantee, under 
     subsection (a) an obligation in connection with a contract 
     described in section 201(a)(4) of the United States Cruise 
     Ship Tourism Development Act of 1999 to possess the necessary 
     operating ability, experience, and expertise required if the 
     applicant demonstrates to satisfaction of the Secretary that 
     its personnel have the experience and ability to operate 
     cruise vessels.''.
       (b) Qualifications.--Section 1104A(b) of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1274(b)) is amended by 
     adding at the end thereof the following:
       ``For purposes of paragraph (1), the Secretary shall 
     consider an obligor with a contract described in section 
     201(b)(2) of the United States Cruise Ship Tourism 
     Development Act of 1999 to possess the ability necessary to 
     the adequate operation and maintenance of the cruise vessel 
     that serves as security for the guarantee of the Secretary if 
     the obligor demonstrates to the satisfaction of the Secretary 
     that its personnel have the experience and ability to operate 
     cruise vessels.''.

     SEC. 302. APPLICATION WITH JONES ACT AND OTHER ACTS.

       (a) In General.--Nothing in this Act affects or otherwise 
     modifies the authority contained in--
       (1) Public Law 87-77 (46 U.S.C. App. 289b) authorizing the 
     transportation of passengers and merchandise in Canadian 
     vessels between ports in Alaska and the United States; or
       (2) Public Law 98-563 (46 U.S.C. App. 289c) permitting the 
     transportation of passengers between Puerto Rico and other 
     United States ports.
       (b) Jones Act.--Nothing in this Act affects or modifies the 
     Merchant Marine Act, 1920 (46 U.S.C. App. 861 et seq.).

     SEC. 303. GLACIER BAY AND OTHER NATIONAL PARK SERVICE AREA 
                   PERMITS.

       Notwithstanding the last sentence of section 3(g) of Public 
     Law 91-383 (16 U.S.C. 1a-2(g)), the Secretary of the 
     Interior, after consultation with the Secretary of 
     Transportation, may issue new or otherwise available permits 
     to United States-flag vessels carrying passengers for hire to 
     enter Glacier Bay or any other area within the jurisdiction 
     of the National Park Service. Any such permit shall not 
     affect the rights of any person that, on the date of 
     enactment of this Act, holds a valid permit to enter Glacier 
     Bay or such other area.
                                 ______