[Congressional Record Volume 153, Number 96 (Thursday, June 14, 2007)]
[Senate]
[Pages S7749-S7751]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 1632. A bill to ensure that vessels of the United States conveyed 
to eligible recipients for educational, cultural, historical, 
charitable, recreational, or other public purposes are maintained and 
utilized for the purposes for which they were conveyed; to the 
Committee on Commerce, Science, and Transportation.
  Ms. SNOWE. Mr. President, I rise today to introduce the Vessel 
Conveyance Act, a bill which would prevent inappropriate transfers of 
surplus United States vessels to nongovernmental organizations.
  It has recently come to my attention that two decommissioned U.S. 
Coast Guard ships that had been conveyed in legislation to a certain 
charitable organization are no longer being used for the purpose 
explicitly stated by law. In fact, the ships are no longer in the 
organization's possession. Unaware of the costs affiliated with 
maintenance of the ships, the recipient found itself unable to afford 
the upkeep. Against the spirit, if not the letter, of the law, the 
charity sold first one, and then the second ship, and pocketed the 
proceeds, which totaled $415,000.
  Though the U.S. General Services Administration has a process in 
place for disposal of surplus vessels, I understand the value of 
dedicated vessel conveyances under certain circumstances. But we must 
recognize that these assets are the property of the American people, 
and they represent a significant investment of public funds. When 
Congress acts to convey such valuable items to a private entity, it 
also conveys the responsibility to use the vessel for a specific 
purpose. In cases where that responsibility has not been carried out, 
we must be able to seek recourse, and this bill would provide that 
tool.

[[Page S7750]]

  Specifically, this legislation would expressly prohibit the recipient 
of a conveyed vessel from either selling it, or using it for commercial 
purposes. It would require the Administrator of the GSA to monitor 
conveyed vessels the same way he monitors ships dispersed under the 
standard GSA process to ensure that they are being used appropriately, 
and it gives her the power to reclaim the ship if she determines that 
those conditions have been violated. The bill would also eliminate the 
possibility of transfer to an organization lacking sufficient financial 
stability to maintain a given vessel. Finally, it includes civil 
enforcement provisions making recipients liable for fines of up to 
$10,000 per day that they are in violation of their conveyance 
agreement.
  On the rare occasions when Congress determines that a certain asset 
is uniquely suited to assist a worthy and capable organization, I do 
not oppose a legislative conveyance. But I will not allow any 
organization to fleece the American taxpayers by biting the hand that 
has provided such a generous gift. I am pleased to introduce this bill 
today, and I urge my colleagues to support it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no ojection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1632

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Vessel Conveyance Act''.

     SEC. 2. CONVEYANCE OF UNITED STATES VESSELS FOR PUBLIC 
                   PURPOSES.

       (a) In General.--The conveyance of a United States 
     Government vessel to an eligible entity for use as an 
     educational, cultural, historical, charitable, or 
     recreational or other public purpose shall be made subject to 
     any conditions, including the reservation of such rights on 
     behalf of the United States, as the Secretary considers 
     necessary to ensure that the vessel will be maintained and 
     used in accordance with the purposes for which it was 
     conveyed, including conditions necessary to ensure that 
     unless approved by the Secretary--
       (1) the eligible entity to which the vessel is conveyed may 
     not sell, convey, assign, exchange, or encumber the vessel, 
     any part thereof, or any associated historic artifact 
     conveyed to the eligible entity in conjunction with the 
     vessel; and
       (2) the eligible entity to which the vessel is conveyed may 
     not conduct any commercial activities at the vessel, any part 
     thereof, or in connection with any associated historic 
     artifact conveyed to the eligible entity in conjunction with 
     the vessel, in any manner.
       (b) Reversion.--In addition to any term or condition 
     established pursuant to this section, the conveyance of a 
     United States Government vessel shall include a condition 
     that the vessel, or any associated historic artifact conveyed 
     to the eligible entity in conjunction with the vessel, at the 
     option of the Secretary, shall revert to the United States 
     and be placed under the administrative control of the 
     Administrator if, without approval of the Secretary--
       (1) the vessel, any part thereof, or any associated 
     historic artifact ceases to be available for the educational, 
     cultural, historical, charitable, or recreational or other 
     public purpose for which it was conveyed under reasonable 
     conditions which shall be set forth in the eligible entity's 
     application;
       (2) the vessel or any part thereof ceases to be maintained 
     in a manner consistent with the commitments made by the 
     eligible entity to which it was conveyed;
       (3) the eligible entity to which the vessel is conveyed, 
     sells, conveys, assigns, exchanges, or encumbers the vessel, 
     any part thereof, or any associated historic artifact; or
       (4) the eligible entity to which the vessel is conveyed, 
     conducts any commercial activities at the vessel, any part 
     thereof, or in conjunction with any associated historic 
     artifact.
       (c) Agreement Required.--Except as may be otherwise 
     explicitly provided by statute, a United States Government 
     vessel may not be conveyed to an entity unless that entity 
     agrees to comply with any terms or conditions imposed on the 
     conveyance under this section.
       (d) Records and Monitoring.--
       (1) Compilation and transfer.--The Secretary shall provide 
     a written or electronic record for each vessel conveyed 
     pursuant to the Secretary's authority, including the vessel 
     registration, the application for conveyance, the terms and 
     conditions of conveyance, and any other documents associated 
     with the conveyance, and any post-conveyance correspondence 
     or other documentation, to the Administrator.
       (2) Monitoring.--For a period not less than 5 years after 
     the date of conveyance the Administrator shall monitor the 
     eligible entity's use of the vessel conveyed to ensure that 
     the vessel is being used in accordance with the purpose for 
     which it was conveyed. The Administrator shall create a 
     written or electronic record of such monitoring activities 
     and their findings.
       (3) Maintenance.--The Administrator shall maintain vessel 
     conveyance records provided under paragraph (1), and 
     monitoring records created under paragraph (2), on each 
     vessel conveyed until such time as the vessel is destroyed, 
     scuttled, recycled, or otherwise disposed of. The 
     Administrator may make the records available to the public.
       (e) Cost Estimates.--The Secretary may provide an estimate 
     to an eligible entity of the cost of maintaining and 
     operating any vessel to be conveyed to that entity.
       (f) Guidance.--The Secretary may issue guidance concerning 
     the types and extent of commercial activities, including the 
     sale of goods or services incidental to, and consistent with, 
     the purposes for which a vessel was conveyed, that are 
     approved by the Secretary for purposes of subsections (a)(2) 
     and (b)(4) of this section.

     SEC. 3. WORKING GROUP ON CONVEYANCE OF UNITED STATES VESSELS.

       Within 180 days after the date of enactment of this Act, 
     the Secretary of Transportation shall convene a working 
     group, composed of representatives from the Maritime 
     Administration, the Coast Guard, and the United States Navy 
     to review and to make recommendations on a common set of 
     conditions for the conveyance of vessels of the United States 
     to eligible entities (as defined in section 2(d)(2)). The 
     Secretary may request the participation of senior 
     representatives of any other Federal department or agency, as 
     appropriate.

     SEC. 4. CIVIL ENFORCEMENT OF CONVEYANCE CONDITIONS.

       (a) Civil Administrative Penalties.--
       (1) Any eligible entity found by the Secretary, after 
     notice and opportunity for a hearing in accordance with 
     section 554 of title 5, United States Code, to have failed to 
     comply with the terms and conditions under which a vessel was 
     conveyed to it shall be liable to the United States for a 
     civil penalty. The amount of the civil penalty under this 
     paragraph shall not exceed $10,000 for each violation. Each 
     day of a continuing violation shall constitute a separate 
     violation.
       (2) Compromise or other action by the secretary.--The 
     Secretary may compromise, modify, or remit, with or without 
     conditions, any civil administrative penalty imposed under 
     this section that has not been referred to the Attorney 
     General for further enforcement action.
       (b) Hearing.--For the purposes of conducting any 
     investigation or hearing under this section, the Secretary 
     may issue subpoenas for the attendance and testimony of 
     witnesses and the production of relevant papers, books, and 
     documents, and may administer oaths. Witnesses summoned shall 
     be paid the same fees and mileage that are paid to witnesses 
     in the courts of the United States. In case of contempt or 
     refusal to obey a subpoena served upon any person pursuant to 
     this subsection, the district court of the United States for 
     any district in which such person is found, resides, or 
     transacts business, upon application by the United States and 
     after notice to such person, shall have jurisdiction to issue 
     an order requiring such person to appear and give testimony 
     before the Secretary or to appear and produce documents 
     before the Secretary, or both, and any failure to obey such 
     order of the court may be punished by such court as a 
     contempt thereof. Nothing in this Act shall be construed to 
     grant jurisdiction to a district court to entertain an 
     application for an order to enforce a subpoena issued by the 
     Secretary of Commerce to the Federal Government or any entity 
     thereof.
       (c) Jurisdiction.--The United States district courts shall 
     have original jurisdiction of any action under this section 
     arising out of or in connection with the operation, 
     maintenance, or disposition of a conveyed vessel, and 
     proceedings with respect to any such action may be instituted 
     in the judicial district in which any defendant resides or 
     may be found. For the purpose of this section, American Samoa 
     shall be included within the judicial district of the 
     District Court of the United States for the District of 
     Hawaii.
       (d) Collection.--If an eligible entity fails to pay an 
     assessment of a civil penalty after it has become a final and 
     unappealable order, or after the appropriate court has 
     entered final judgment in favor of the Secretary, the matter 
     may be referred to the Attorney General, who may recover the 
     amount (plus interest at currently prevailing rates from the 
     date of the final order). In such action the validity, 
     amount, and appropriateness of the final order imposing the 
     civil penalty shall not be subject to review. Any eligible 
     entity that fails to pay, on a timely basis, the amount of an 
     assessment of a civil penalty shall be required to pay, in 
     addition to such amount and interest, attorney's fees and 
     costs for collection proceedings and a quarterly nonpayment 
     penalty for each quarter during which such failure to pay 
     persists. Such nonpayment penalty shall be in an amount equal 
     to 20 percent of the aggregate amount of such the entity's 
     penalties and nonpayment penalties which are unpaid as of the 
     beginning of such quarter.
       (e) Nationwide Service of Process.--In any action by the 
     United States under this Act, process may be served in any 
     district where the defendant is found, resides, transacts 
     business or has appointed an agent for the service of 
     process, and for civil cases may also be served in a place 
     not within the United States in accordance with Rule 4 of the 
     Federal Rules of Civil Procedure.

[[Page S7751]]

     SEC. 5. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) Eligible entity.--The term ``eligible entity'' means a 
     State or local government, nonprofit corporation, educational 
     agency, community development organization, or other entity 
     that agrees to comply with the conditions established under 
     this section.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the department or agency on whose authority a vessel is 
     conveyed to an eligible entity.
       (4) United states government vessel.--The term ``United 
     States government vessel'' means a vessel owned by the United 
     States Government.
                                 ______