[Congressional Record Volume 155, Number 148 (Wednesday, October 14, 2009)]
[House]
[Pages H11341-H11347]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   MARITIME WORKFORCE DEVELOPMENT ACT

  Mr. CUMMINGS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2651) to amend title 46, United States Code, to direct the 
Secretary of Transportation to establish a maritime career training 
loan program, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2651

       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 ``Maritime Workforce 
     Development Act''.

     SEC. 2. MARITIME EDUCATION LOAN PROGRAM.

       (a) In General.--Chapter 517 of title 46, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 51705. Maritime career training loan program

       ``(a) Establishment.--The Secretary of Transportation shall 
     establish a maritime career training loan program (in this 
     section referred to as the `program') in accordance with the 
     requirements of this section.
       ``(b) Purpose.--The purpose of the program shall be to make 
     maritime career training loans available to eligible students 
     to provide for the training of United States mariners.
       ``(c) Administration.--The program shall be carried out by 
     the Secretary, acting through the Administrator of the 
     Maritime Administration.
       ``(d) Duties.--The Secretary shall--
       ``(1) allocate, on an annual basis, the award of loans 
     under the program based on the needs of students;
       ``(2) develop an application process and eligibility 
     criteria for the award of loans under the program;
       ``(3) approve applications for loans under the program 
     based on the eligibility criteria and allocations made under 
     paragraph (1); and
       ``(4) designate maritime training institutions at which 
     loans made under the program may be used.
       ``(e) Designation of Maritime Training Institutions.--
       ``(1) In general.--In designating maritime training 
     institutions under subsection (d)(4), the Secretary--
       ``(A) may include Federal, State, and commercial training 
     institutions and nonprofit training organizations, except 
     that undergraduate students at the United States Merchant 
     Marine Academy shall not be eligible for loans under the 
     program;
       ``(B) shall designate institutions based on geographic 
     diversity and scope of classes offered;
       ``(C) shall ensure that designated institutions have the 
     ability to administer the program; and
       ``(D) shall ensure that designated institutions meet 
     requirements to provide training instruction for appropriate 
     Coast Guard-approved training instruction.

[[Page H11342]]

       ``(2) Exclusions.--The Secretary--
       ``(A) may exclude from participation in the program a 
     maritime training institution that has had severe performance 
     deficiencies, including deficiencies demonstrated by audits 
     or program reviews conducted during the 5 calendar years 
     immediately preceding the present year;
       ``(B) shall exclude from participation in the program a 
     maritime training institution that has delinquent or 
     outstanding debts to the United States, unless such debts are 
     being repaid under or in accordance with a repayment 
     arrangement satisfactory to the United States, or the 
     Secretary in the Secretary's discretion determines that the 
     existence or amount of any such debts has not been finally 
     determined by the appropriate Federal agency;
       ``(C) may exclude from participation in the program a 
     maritime training institution that has failed to comply with 
     quality standards established by the Department of Labor, the 
     Coast Guard, or a State; and
       ``(D) may establish such other criteria as the Secretary 
     determines will protect the financial interest of the United 
     States and promote the purposes of this section.
       ``(f) State Maritime Academies.--
       ``(1) Use of funds for loans to students attending state 
     maritime academies.--The Secretary may obligate not more than 
     50 percent of the amounts appropriated to carry out this 
     section for a fiscal year for loans to undergraduate students 
     attending State maritime academies receiving assistance under 
     chapter 515 of this title.
       ``(2) Academic standards for students.--Students at State 
     maritime academies receiving loans under the program shall 
     maintain satisfactory progress toward the completion of their 
     course of study as evidenced by the maintenance of a 
     cumulative C average, or its equivalent, or academic standing 
     consistent with the requirements for graduation, as 
     determined by the institution.
       ``(g) Loan Amounts and Use.--
       ``(1) Maximum amounts.--The Secretary may not make loans to 
     a student under the program in an amount that exceeds $15,000 
     in a calendar year or $60,000 in the aggregate.
       ``(2) Use of loan proceeds.--A student who receives a loan 
     under the program may use the proceeds of the loan only for 
     postsecondary expenses incurred at an institution designated 
     by the Secretary under subsection (d)(4) for books, tuition, 
     required fees, travel to and from training facilities, and 
     room and board.
       ``(h) Student Eligibility.--To be eligible to receive a 
     loan under the program, a student shall--
       ``(1) be eligible to hold a license or merchant mariner 
     document issued by the Coast Guard;
       ``(2) provide to the Secretary such information as the 
     Secretary may require, including all current Coast Guard 
     documents, certifications, proof of United States citizenship 
     or permanent legal status, and a statement of intent to enter 
     a maritime career;
       ``(3) meet the enrollment requirements of a maritime 
     training institution designated by the Secretary under 
     subsection (d)(4); and
       ``(4) sign an agreement to--
       ``(A) complete a course of instruction at such a maritime 
     training institution; and
       ``(B) maintain a license or document and work under the 
     authority of the license or document and any associated 
     endorsements for at least 18 months following the date of 
     graduation from the maritime program for which the loan 
     proceeds will be used.
       ``(i) Administration of Loans.--
       ``(1) Contents of loan agreements.--Any agreement between 
     the Secretary and a student borrower for a loan under the 
     program shall--
       ``(A) be evidenced by a note or other written instrument 
     that provides for the repayment of the principal amount of 
     the loan and any origination fee, together with interest 
     thereon, in equal installments (or, if the student borrower 
     so requests, in graduated periodic installments determined in 
     accordance with such schedules as may be approved by the 
     Secretary) payable quarterly, bimonthly, or monthly, at the 
     option of the student borrower, over a period beginning 9 
     months from the date on which the student borrower completes 
     study or discontinues attendance at the maritime program for 
     which the loans are used at the institution approved by the 
     Secretary and not exceeding 10 years;
       ``(B) include provision for acceleration of repayment of 
     the whole, or any part, of such loan, at the option of the 
     student borrower;
       ``(C) provide the loan without security and without 
     endorsement;
       ``(D) provide that the liability to repay the loan shall be 
     canceled upon the death of the student borrower, or if the 
     student borrower becomes permanently and totally disabled, as 
     determined in accordance with regulations to be issued by the 
     Secretary;
       ``(E) contain a notice of the system of disclosure of 
     information concerning default on such loan to credit bureau 
     organizations; and
       ``(F) include provisions for deferral of repayment, as 
     determined by the Secretary.
       ``(2) Rate of interest.--A student borrower who receives a 
     loan under the program on or after January 1, 2010, and 
     before October 1, 2015, shall be obligated to repay the loan 
     amount to the Secretary, together with interest beginning in 
     the period referred to in paragraph (1)(A), at a rate to be 
     determined as follows:
       ``(A) For a loan for which the first disbursement is made 
     on or after January 1, 2010, and before October 1, 2011, 5.6 
     percent on the unpaid principal balance of the loan.
       ``(B) For a loan for which the first disbursement is made 
     on or after October 1, 2011, and before October 1, 2012, 4.5 
     percent on the unpaid principal balance of the loan.
       ``(C) For a loan for which the first disbursement is made 
     on or after October 1, 2012, 3.4 percent on the unpaid 
     principal balance of the loan.
       ``(3) Disclosure required prior to disbursement.--
       ``(A) In general.--The Secretary shall at or prior to the 
     time the Secretary makes a loan to a student borrower under 
     the program, provide thorough and adequate loan information 
     on such loan to the student borrower. The disclosures 
     required by this paragraph may be made as part of the written 
     application material provided to the student borrower, as 
     part of the promissory note evidencing the loan, or on a 
     separate written form provided to the student borrower.
       ``(B) Contents.--The disclosures shall include--
       ``(i) the address to which communications and payments 
     should be sent;
       ``(ii) the principal amount of the loan;
       ``(iii) the amount of any charges collected at or prior to 
     the disbursal of the loan and whether such charges are to be 
     deducted from the proceeds of the loan or paid separately by 
     the student borrower;
       ``(iv) the stated interest rate on the loan;
       ``(v) the yearly and cumulative maximum amounts that may be 
     borrowed;
       ``(vi) an explanation of when repayment of the loan will be 
     required and when the student borrower will be obligated to 
     pay interest that accrues on the loan;
       ``(vii) a statement as to the minimum and maximum repayment 
     term that the Secretary may impose, and the minimum monthly 
     payment required by law and a description of any penalty 
     imposed as a consequence of default, such as liability for 
     expenses reasonably incurred in attempts by the Secretary to 
     collect on a loan;
       ``(viii) a statement of the total cumulative balance, 
     including the loan applied for, owed by the student borrower 
     to the Secretary, and an estimate of the projected monthly 
     payment, given such cumulative balance;
       ``(ix) an explanation of any special options the student 
     borrower may have for loan consolidation or other refinancing 
     of the loan;
       ``(x) a statement that the student borrower has the right 
     to prepay all or part of the loan, at any time, without 
     penalty;
       ``(xi) a statement summarizing circumstances in which 
     repayment of the loan or interest that accrues on the loan 
     may be deferred, and a brief notice of the program for 
     repayment of loans, on the basis of military service, 
     pursuant to the Department of Defense educational loan 
     repayment program (10 U.S.C. 16302);
       ``(xii) a definition of default and the consequences to the 
     student borrower if the student borrower defaults, together 
     with a statement that the disbursement of, and the default 
     on, a loan under this part shall be reported to a credit 
     bureau or credit reporting agency;
       ``(xiii) to the extent practicable, the effect of accepting 
     the loan on the eligibility of the student borrower for other 
     forms of student assistance; and
       ``(xiv) an explanation of any cost the student borrower may 
     incur in the making or collection of the loan.
       ``(C) Information to be provided without cost.--The 
     information provided under this paragraph shall be available 
     to the Secretary without cost to the student borrower.
       ``(4) Repayment after default.--The Secretary may require 
     any student borrower who has defaulted on a loan made under 
     the program to--
       ``(A) pay all reasonable collection costs associated with 
     such loan; and
       ``(B) repay the loan pursuant to an income contingent 
     repayment plan.
       ``(5) Authorization to reduce rates and fees.--
     Notwithstanding any other provision of this section, the 
     Secretary may prescribe by regulation any reductions in the 
     interest rate or origination fee paid by a student borrower 
     of a loan made under the program as the Secretary determines 
     appropriate to encourage ontime repayment of the loan. Such 
     reductions may be offered only if the Secretary determines 
     the reductions are cost neutral and in the best financial 
     interest of the United States.
       ``(6) Collection of repayments.--The Secretary shall 
     collect repayments made under the program and exercise due 
     diligence in such collection, including maintenance of all 
     necessary records to ensure that maximum repayments are made. 
     Collection and servicing of repayments under the program 
     shall be pursued to the full extent of the law, including 
     wage garnishment if necessary. The Secretary of the 
     Department in which the Coast Guard is operating shall 
     provide the Secretary of Transportation with any information 
     regarding a mariner that may aid in the collection of 
     repayments under this section.
       ``(7) Repayment schedule.--A student borrower who receives 
     a loan under the program shall repay the loan quarterly, 
     bimonthly, or monthly, at the option of the student borrower, 
     over a period beginning 9 months from the date the student 
     borrower completes study or discontinues attendance at the 
     maritime program for which the loan proceeds are used and 
     ending not more than 10 years after the date repayment 
     begins. Provisions for deferral of repayment shall be 
     determined by the Secretary.
       ``(8) Contracts for servicing and collection of loans.--The 
     Secretary may--

[[Page H11343]]

       ``(A) enter into a contract or other arrangement with State 
     or nonprofit agencies and, on a competitive basis, with 
     collection agencies for servicing and collection of loans 
     under this section; and
       ``(B) conduct litigation necessary to carry out this 
     section.
       ``(j) Revolving Loan Fund.--
       ``(1) Establishment.--The Secretary shall establish a 
     revolving loan fund consisting of amounts deposited in the 
     fund under paragraph (2).
       ``(2) Deposits.--The Secretary shall deposit in the fund--
       ``(A) receipts from the payment of principal and interest 
     on loans made under the program; and
       ``(B) any other monies paid to the Secretary by or on 
     behalf of individuals under the program.
       ``(3) Availability of amounts.--Amounts in the fund shall 
     be available to the Secretary, without further 
     appropriation--
       ``(A) to cover the administrative costs of the program, 
     including the maintenance of records and making collections 
     under this section; and
       ``(B) to the extent that amounts remain available after 
     paying such administrative costs, to make loans under the 
     program.
       ``(4) Maintenance of records.--The Secretary shall maintain 
     accurate records of the administrative costs referred to in 
     paragraph (3)(A).
       ``(k) Annual Report.--The Secretary, on an annual basis, 
     shall submit to the Committee on Transportation and 
     Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report on the program, including--
       ``(1) the total amount of loans made under the program in 
     the preceding year;
       ``(2) the number of students receiving loans under the 
     program in the preceding year; and
       ``(3) the total amount of loans made under program that are 
     in default as of the date of the report.
       ``(l) Authorization of Appropriations.--There are 
     authorized to be appropriated for each of fiscal years 2010 
     through 2015--
       ``(1) $10,000,000 for making loans under the program; and
       ``(2) $1,000,000 for administrative expenses of the 
     Secretary in carrying out the program.

     ``Sec. 51706. Maritime recruitment, training, and retention 
       grant program

       ``(a) Strategic Plan.--
       ``(1) In general.--Not later than one year after the date 
     of enactment of this section, and at least once every 3 years 
     thereafter, the Secretary of Transportation, acting through 
     the Administrator of the Maritime Administration, shall 
     publish in the Federal Register a plan that describes the 
     demonstration, research, and multistate project priorities of 
     the Department of Transportation concerning merchant mariner 
     recruitment, training, and retention for the 3-year period 
     following the date of publication of the plan.
       ``(2) Contents.--A plan published under paragraph (1) shall 
     contain strategies and identify potential projects to address 
     merchant mariner recruitment, training, and retention issues 
     in the United States.
       ``(3) Factors.--In developing a plan under paragraph (1), 
     the Secretary shall take into account, at a minimum--
       ``(A) the availability of existing research (as of the date 
     of publication of the plan);
       ``(B) the need to ensure results that have broad 
     applicability;
       ``(C) the benefits of economies of scale and the efficiency 
     of potential projects; and
       ``(D) the likelihood that the results of potential projects 
     will be useful to policymakers and stakeholders in addressing 
     merchant mariner recruitment, training, and retention issues.
       ``(4) Consultation.--In developing a plan under paragraph 
     (1), the Secretary shall consult with representatives of the 
     maritime industry, labor organizations, and other 
     governmental entities and parties with an interest in the 
     maritime industry.
       ``(5) Transmittal to congress.--The Secretary shall 
     transmit copies of a plan published under paragraph (1) to 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate.
       ``(b) Demonstration Projects.--
       ``(1) In general.--The Secretary may award grants to a 
     maritime training institution to carry out demonstration 
     projects that implement the priorities identified in the plan 
     prepared under subsection (a)(1), for the purpose of 
     developing and implementing methods to address merchant 
     mariner recruitment, training, and retention issues.
       ``(2) Grant awards.--Grants shall be awarded under this 
     subsection on a competitive basis under guidelines and 
     requirements to be established by the Secretary.
       ``(3) Applications.--To be eligible to receive a grant for 
     a project under this subsection, a maritime training 
     institution shall submit to the Secretary a grant proposal 
     that includes, at a minimum--
       ``(A) information demonstrating the estimated effectiveness 
     of the project; and
       ``(B) a method for evaluating the effectiveness of the 
     project.
       ``(4) Eligible projects.--Projects eligible for grants 
     under this subsection may include--
       ``(A) the establishment of maritime technology skill 
     centers developed through local partnerships of industry, 
     labor, education, community-based organizations, economic 
     development organizations, or Federal, State, and local 
     government agencies to meet unmet skills needs of the 
     maritime industry;
       ``(B) projects that provide training to upgrade the skills 
     of workers who are employed in the maritime industry;
       ``(C) projects that promote the use of distance learning, 
     enabling students to take courses through the use of media 
     technology, such as videos, teleconferencing, and the 
     Internet;
       ``(D) projects that assist in providing services to address 
     maritime recruitment and training of youth residing in 
     targeted high poverty areas within empowerment zones and 
     enterprise communities;
       ``(E) the establishment of partnerships with national and 
     regional organizations with special expertise in developing, 
     organizing, and administering merchant mariner recruitment 
     and training services; and
       ``(F) the establishment of maritime training programs that 
     foster technical skills and operational productivity in 
     communities in which economies are related to or dependent 
     upon the maritime industry.
       ``(c) Projects Authorized.--
       ``(1) Projects.--The Secretary may award grants to carry 
     out projects identified in a plan published under subsection 
     (a)(1) under which the project sponsor will--
       ``(A) design, develop, and test an array of approaches to 
     providing recruitment, training, or retention services to one 
     or more targeted populations;
       ``(B) in conjunction with employers, organized labor, other 
     groups (such as community coalitions), and Federal, State, or 
     local agencies, design, develop, and test various training 
     approaches in order to determine effective practices; or
       ``(C) assist in the development and replication of 
     effective service delivery strategies for the national 
     maritime industry as a whole.
       ``(2) Research projects.--The Secretary may award grants to 
     carry out research projects identified in a plan published 
     under subsection (a)(1) that will contribute to the solution 
     of maritime industry recruitment, training, and retention 
     issues in the United States.
       ``(3) Multistate or regional projects.--The Secretary may 
     award grants to carry out multistate or regional projects 
     identified in a plan published under subsection (a)(1) to 
     effectively disseminate best practices and models for 
     implementing maritime recruitment, training, and retention 
     services designed to address industry-wide skill shortages.
       ``(4) Grant awards.--Grants shall be awarded under this 
     subsection on a competitive basis under guidelines and 
     requirements to be established by the Secretary.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated for each of fiscal years 2010 
     through 2015--
       ``(1) $10,000,000 for making grants under this section; and
       ``(2) $1,000,000 for administrative expenses of the 
     Secretary in carrying out this section.''.
       (b) Conforming Amendment.--The analysis for such chapter is 
     amended by adding at the end the following:

``51705. Maritime career training loan program.
``51706. Maritime recruitment, training, and retention grant 
              program.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Maryland (Mr. Cummings) and the gentleman from Wisconsin (Mr. Petri) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Maryland.


                             General Leave

  Mr. CUMMINGS. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and to include extraneous material on H.R. 2651.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Maryland?
  There was no objection.
  Mr. CUMMINGS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, as chairman of the Subcommittee on the Coast Guard and 
Maritime Transportation, I rise today in strong support of the Maritime 
Work Force Development Act, H.R. 2651, legislation which I authored to 
address the education and training needs of our Nation's merchant 
mariners. I thank Congressman Oberstar, the chairman of the full 
committee on Transportation and Infrastructure, Congressman Mica, the 
ranking member on the full committee, and Congressman LoBiondo, the 
ranking member of the Coast Guard Subcommittee, for working with me to 
support our maritime work force.
  H.R. 2651 would amend title 46 of the United States Codes to direct 
the Secretary of Transportation to establish a student loan program to 
attract the next generation of workers to the good paying jobs 
available in the maritime industry.

[[Page H11344]]

                              {time}  1415

  The loan program will also help those already in the industry obtain 
the certifications and the training they need to move ahead in their 
careers.
  In October of 2007, I convened a hearing in the Coast Guard 
Subcommittee to examine trends in the maritime workforce. According to 
the Bureau of Transportation Statistics, in 2006, there were more than 
38,000 on-the-water jobs in sea, coastal, and Great Lakes 
transportation, and nearly 23,000 jobs in the inland water 
transportation industry. Many of those who currently work in the 
industry are nearing retirement age. Thus, the Maritime Administration 
has indicated that at the time of our hearing, the average age of a 
mariner with a master's license was 51, while the average age of a 
chief engineer was 50.
  Additionally, significant new standards for training and continuing 
education have been applied to mariners through the 1995 amendments to 
the Convention on Standards of Training, Certification and 
Watchkeeping. These standards have rightly been set to improve safety 
in the maritime industry by reducing human factors as the causes of 
maritime accidents, but they have also imposed expensive and very time-
consuming training requirements on mariners, particularly on those who 
are looking to upgrade a document or license to move up the career 
ladder.
  While there are many facilities in the United States that provide 
outstanding training programs for those seeking to enter or advance in 
the maritime field, tuition can be extremely expensive. Further, the 
types of training programs in which mariners enroll are unique and are 
not easily served by existing loan programs. Mariners who have already 
begun their careers rarely enroll in 2- or 4-year educational programs. 
Instead, typically, they enroll in multiweek courses to obtain a 
specific new certification, and they enroll in such courses several 
times a year.
  I drafted H.R. 2651 in an effort to provide to individuals in the 
maritime industry a loan program that is tailored to their specific 
needs and to the types of training programs that serve them. Using the 
model of existing student loan programs, H.R. 2651 creates a maritime-
focused student loan program through which individuals can receive up 
to $60,000 in loans over the course of a lifetime. H.R. 2651 also 
authorizes the appropriation of $10 million in each of fiscal years 
2010 through 2015 to support these loans.
  Additionally, H.R. 2651 authorizes the appropriation of $10 million 
in each of fiscal years 2010 through 2015 to enable the Department of 
Transportation to award grants to maritime training institutions to 
support their efforts to develop and implement programs to address 
mariner recruitment, training, and retention issues.
  In my district in Baltimore, I have been working closely with the 
Maritime Industries Academy, a public high school with a maritime 
theme. I have assembled a board of maritime and education professionals 
who have worked in an advisory capacity with the school for 2 years and 
who are now creating a formal foundation to support the school, which 
opened this current 2009-2010 school year in a new location and with an 
enrollment level that has tripled in the last 2 years.
  The grant program that is authorized by H.R. 2651 would support the 
growing number of maritime-themed educational institutions, including 
high schools, throughout the country as they work to expand maritime 
education opportunities and attract new individuals to a field critical 
to the success of our national economy.
  Finally, Mr. Speaker, I again want to thank Chairman Oberstar, 
Ranking Member Mica, Ranking Member LoBiondo, and all of our 
subcommittee for their hard work on H.R. 2651 and urge the adoption of 
this legislation by the House today.
  And with that, Mr. Speaker, I reserve the balance of my time.
  Mr. PETRI. Mr. Speaker, I yield myself such time as I might consume.
  I rise in support of H.R. 2651, the Maritime Workforce Development 
Act. The bill will provide needed training and educational 
opportunities for merchant mariners and those interested in working in 
the maritime trades. The U.S. Merchant Marine is an important component 
to our national and economic security, and I support this effort to 
strengthen this important sector of our workforce.
  The bill directs the Maritime Administration to establish a program 
to support continuing education at approved maritime training 
institutes and undergraduate training at the five State maritime 
academies. Loan recipients would be required to commit at least 18 
months of service at sea as a condition of participation in the 
program. This program will improve the opportunities available to those 
currently serving as merchant mariners and attract new entrants to the 
maritime workforce.
  The bill also directs the Maritime Administration to develop a 
strategic plan to enhance merchant mariner recruitment, training, and 
retention, and to fund demonstration projects to further the goals 
outlined in the plan.
  This measure is an important component of the House's ongoing work to 
support the U.S. Merchant Marine. I strongly support the bill and ask 
all Members to do the same.
  At this point, I would yield 5 minutes to our colleague from North 
Carolina, Virginia Foxx.
  Ms. FOXX. Mr. Speaker, I want to thank my colleague, Mr. Petri, for 
yielding me some time.
  When I was going over the bills for this week, this bill sort of flew 
out at me. It seems like a very innocuous bill, like motherhood and 
apple pie, the kind of thing that we should be doing here. We know that 
there are a lot of people needed in the maritime industry.
  I visited the Merchant Marine Academy last year. I had a wonderful 
visit there and was told by the administrators there that there is a 
huge demand for their graduates, that they have about 10 job offers for 
every graduate and that we need more people who have excellent 
education and training in the maritime skills.
  However, this bill I think is not doing what we would like for it to 
do, and it raises more questions, I think, than it answers. I have 
asked some of the questions of the staff, and I don't get the kind of 
answers that I think we need to be getting.
  I'm very keen on our having accountability for any way that we 
authorize or spend money, and there is really no accountability in this 
bill at all. There is no statement of the demand. It says that there 
were 162,000 jobs in the U.S. water transportation sector in 2006, up 
from nearly 148,000 jobs reported in 2002, and it says, in the summary, 
there's a perceived future shortage of workers, not an actual one. So 
we are going to authorize a program for a perceived need.
  The headlines out this week are that our military has gone way beyond 
its goals in recruiting people, and I suspect that with unemployment as 
high as it is right now, many, many people are going into skilled 
trades programs trying to get the kind of licensure they need to get 
jobs. But again, this bill doesn't present that information. It doesn't 
say that there are people being turned away from these State programs 
that are helping these people get the skills they need. It doesn't tell 
how many people are being turned away from the Merchant Marine Academy.
  I am very much concerned that this program is going to be a lot like 
the program that was funded in 2004 with an earmark requested by David 
Price which gave $10 million in the Federal budget to a program at UNC 
Chapel Hill for a new effort to help deployed soldiers of the National 
Guard and Army Reserves.
  An article has said, 5 years later, the citizen-soldiers support 
program has spent $7.3 million, but the money has accomplished little 
for the people it was supposed to help. And, Mr. Speaker, I would like 
to enter into the Record the complete article that I'm referencing. Mr. 
Speaker, it goes on to say that an internal review found that the 
program produced reams of paperwork but few concrete results.
  Because there's no accountability in this bill, we are giving huge 
discretion to the Secretary to handle this money. We are not outlining 
the kinds of things that we, as a Congress, should be outlining. We are 
not demanding any kind of results from the money that is being spent. 
And it's a lot of money. It's $110 million over 2010 to 2014, $22 
million in 2014.
  There's a program to give $10 million for grants to maritime training 
institutions to establish demonstration projects and other programs to 
increase mariner recruitment, training,

[[Page H11345]]

and retention. There is no evidence that such programs need to be out 
there. Again, we don't know how many people are already applying for 
such programs.
  This money also is going to be available to unions and to community 
action groups such as ACORN. It's going to very nebulous groups of 
people.
  I have a great concern, again, about how we are going to have any 
accountability from this program. We, in Congress, have an obligation 
to make sure that any money that we are spending is being spent as well 
as it could be spent. We have an almost 10 percent unemployment rate in 
the country. We are taxing people who are working for a living, and we 
are taxing them to give the money to programs like this for which, 
again, there is no accountability and no idea that we are going to get 
our money's worth out of it. I just think it's very unfair to the 
American public.
  We may need to do this kind of program. I know that the Merchant 
Marine people told me that we need better educated, better trained 
people, but I don't think this is the right program.

                 [From the Raleigh News and Observer, 
                            Sept. 25, 2009]

               Program Provides Little Help for Soldiers


                               CORRECTION

       A Sept. 25 front-page article on the Citizen Soldier 
     Support Program stated four of the program's eight employees 
     earned more than $100,000. Only three employees do: One 
     employee reduced her work schedule to three-quarter time and 
     earns $77,250. October 6, 2009.
       In 2004, U.S. Rep. David Price inserted a $10 million 
     program into the federal budget, sending the money to UNC--
     Chapel Hill for a new effort to help deployed soldiers of the 
     National Guard and Army Reserves.
       Five years later, the Citizen Soldier Support Program has 
     spent $7.3 million, but the money has accomplished little for 
     the people it was supposed to help. One-quarter of the money 
     has gone to the university for overhead, and a large part of 
     the rest has been spent on well-paid consultants, six-figure 
     salaries and travel.
       Half of the eight full-time employees are paid more than 
     $100,000 a year, including a deputy director who has been 
     reimbursed $76,000 for food, travel and lodging when she 
     commutes from her home in northern Virginia to North 
     Carolina.
       An internal review found that the program produced reams of 
     paperwork but few concrete results.
       ``The program has produced volumes of documentation, but 
     the vast majority of this documentation is devoted to 
     conceptual verbiage about how the program will function,'' 
     the review said. ``The CSSP is vulnerable to the accusation 
     that it spends too much money on administrative overhead and 
     low-priority, `nice-to-do' activities and not enough time on 
     activities directly relevant to its mission.''
       The head of the N.C. National Guard, Major Gen. William 
     Ingram, has worked with the program since its inception. He 
     said he has experienced many meetings, lots of discussion and 
     stacks of paperwork.
       ``We're feeding you ideas, we're working with you, but 
     we're not seeing any results,'' Ingram said in an interview. 
     ``We're not seeing a whole lot of action; there's a lot of 
     discussion, but . . . no results.''
       Ingram said that after four years, the National Guard 
     recently received the first tangible service from the 
     program: a database of North Carolina mental health providers 
     experienced with the military and problems such as post-
     traumatic stress disorder or traumatic brain injury.
       On Thursday, UNC--Chapel Hill Chancellor Holden Thorp told 
     the UNC Board of Trustees that he has ordered the program to 
     shape up.
       ``The program has serious flaws,'' Thorp said. ``We need 
     the program to show drastic improvement in a short period of 
     time.''


                            16,000 warriors

       In 2004, as the U.S. military ramped up operations in Iraq 
     and continued the war in Afghanistan, more and more members 
     of the National Guard and Army Reserves were being mobilized. 
     In all, 16,000 members of the N.C. Guard have been deployed, 
     some of them two or three times.
       Price, a Chapel Hill Democrat, saw a need, and he used a 
     controversial method to address it. He inserted an 
     ``earmark,'' an appropriation for a specific project that a 
     member of Congress can include in the budget.
       The program was to help soldiers in the North Carolina 
     National Guard and Army Reserves, with the idea that it could 
     serve as a model and eventually be expanded to other states.
       Citizen soldiers are scattered around the state in civilian 
     communities. They arid their families lack the institutional 
     support and military community available to soldiers 
     stationed at bases such as Camp Lejeune or Fort Bragg.
       ``The new program aims to better address challenges Guard 
     and Reserve members and their families face both when they 
     are deployed into duty and when they return home,'' according 
     to an UNC news release from August 2004.
       Price said that the program is worthy of federal funding 
     and that he still supports its goals.
       ``The check isn't just sent out and forgotten about,'' 
     Price said. ``If these funds haven't been utilized in the 
     most effective way, we need to correct it.''


                          Anonymous complaint

       The program started in March 2005; the current end date is 
     December 2009, though UNC has asked for a one-year extension 
     but no more money.
       In June 2008, Rep. Sue Myrick received an anonymous fax 
     complaining that the program spent millions with nothing to 
     show for it. Myrick forwarded it to Erskine Bowles, president 
     of the UNC system.
       One month later, Peter Leousis, who oversees the program, 
     assured Myrick in a letter that the program had accomplished 
     much.
       ``We have been and will continue to be good stewards of the 
     taxpayers' dollars in accomplishing CSSP's mission,'' Leousis 
     wrote.
       Reached by telephone recently, Leousis said he would like 
     to discuss the program, but he and his staff have been told 
     by his superiors not to talk to reporters.


                            Scathing review

       On Feb. 17, seven months after Leousis assured Myrick all 
     was well, Tony Waldrop, vice chancellor for research and 
     economic development, ordered a committee to review the 
     organization.
       The university redacted substantial parts of that review 
     and a related internal audit before release, citing personnel 
     laws. Thorp said the removed sections discuss the actions and 
     job performance of specific employees.
       The report listed a host of problems with the program: 
     overpaid employees; employees performing below expectations; 
     an excessive reliance on outside consultants; an unclear 
     chain of command that creates confusion inside and outside 
     the program; few practical results; little or no evaluation; 
     and disproportionate administrative costs.
       The review committee said it could neither confirm nor 
     refute the suspicion that ``the CSSP may have squandered a 
     substantial portion of its funding on overpaid, under-
     supervised staffers who spent too much of the time attending 
     to the organization and its shifting priorities and too 
     little time providing real value to groups serving soldiers 
     and their families.''
       The deputy director for military relations, Susann Kerner-
     Hoeg, earns a salary of $129,600. Kerner-Hoeg works from her 
     home in northern Virginia, and the program pays for her 
     travel, lodging and meals when she comes to Chapel Hill. The 
     program has spent $76,558 over the past three years for 
     Kerner-Hoeg's flights, rental cars, hotel rooms and meals.
       During the same period, the program paid $313,600 to Kent 
     Peterson & Associates of Kansas City, KA. Peterson, a 
     consultant, served as the director of community relations.
       It is routine for the university to get a cut of grant 
     money. Academic institutions, which provide administrative 
     support and office space, routinely receive portions of 
     grants for administrative overhead. The figure often runs as 
     high as 46 percent.


                           Turning it around?

       Waldrop, the vice chancellor in charge of the program, said 
     the review and audit have put it on the right footing.
       Waldrop said the program can list some accomplishments: the 
     database of mental health providers; one-day training for 
     2,000 mental health providers on military culture and the 
     after-effects of war-related injuries; and consulting with 
     the Army Reserve's Yellow Ribbon program.
       Neil Caudle, an associate vice chancellor who headed the 
     review committee, said the program is still committed to 
     helping soldiers.
       ``In six months to a year, we'll be in the right place,'' 
     Caudle said.
                                  ____


               [From the Carolina Journal, Oct. 9, 2009]

        Delegation Denounces Excesses in Citizen-Soldier Program

                           (By David N. Bass)

       Raleigh.--An embattled university program meant to assist 
     soldiers returning from Iraq and Afghanistan must shape up or 
     lose its taxpayer funding, say many of the same North 
     Carolina congressional lawmakers who supported the program's 
     initial federal commitment five years ago.
       The Citizen-Soldier Support Program, housed at the Odum 
     Institute for Research in Social Sciences at the University 
     of North Carolina at Chapel Hill, is meant to connect 
     veterans and their families with support systems in local 
     communities. But the program has drawn criticism in recent 
     weeks after an internal UNC-CH review flagged a series of 
     management, personnel, and financial problems.
       As Carolina Journal and the News & Observer of Raleigh 
     reported, CSSP has burned through most of its $10 million in 
     federal funding with little to show for it. Over half of Kits 
     employees earn six-figure salaries, and some have racked up 
     extensive traveling expenses, laying the groundwork for 
     rumors that CSSP ``may have squandered a substantial portion 
     of its funding on overpaid, under-supervised staffers,'' 
     according to the internal review.
       The program has also faced criticism for agreeing to pay a 
     Kansas-based consultant

[[Page H11346]]

     up to $340,000 and for reimbursing its deputy director, who 
     lives in northern Virginia, for travel between her home and 
     CSSP's offices in Carrboro.
       Those expenses, mixed with other problems identified by the 
     university review, have raised objections among North 
     Carolina's congressional delegation.
       ``This program appears to have produced almost no results--
     other than nice salaries for consultants and bureaucrats,'' 
     said Rep. Virginia Foxx, R-5th District.
       ``Many of our guardsmen have been deployed two or three 
     times to Iraq and Afghanistan, and that takes a heavy toll on 
     their families back home,'' said Rep. Brad Miller, a Democrat 
     from the 13th District. ``But worthy goals do not excuse poor 
     performance. I won't support the program again unless the 
     program fixes the problems that the university's internal 
     review found.''
       Miller's colleague in the House, 4th District Democrat 
     David Price, was responsible for securing the largest chunk 
     of federal funding--$5 million in 2005. In a statement e-
     mailed to CJ in late August, Price acknowledged problems 
     in the program but said that UNC--Chapel Hill ``has taken 
     concrete steps to address these issues.''
       The $5-million earmark had unanimous support from the 
     state's congressional delegation, according to a UNC-CH press 
     release from June 2005. A number of lawmakers are now having 
     second thoughts, however.
       ``I will not continue to support federally funded programs 
     that do not reach the goals originally intended for the 
     recipients. The American taxpayers deserve better,'' said 
     Rep. Walter Jones, R-3rd.
       ``The program has failed to put the needs of our Reserve 
     Component members and their families first, and I do not 
     think that the program should be allowed to continue as it 
     currently is administered,'' said 9th District GOP Rep. Sue 
     Myrick.
       Myrick said she received an anonymous complaint in 2008 
     about abuses in. the CSSP and subsequently contacted UNC 
     system President Erskine Bowles.
       ``In his response he gave me assurance that each of the 
     allegations would be reviewed,'' Myrick said. ``Now, I'm 
     again receiving anonymous faxes about the program, and with 
     the results of the latest audit now public--it's not good.''
       Foxx said excesses in the program are an example of why she 
     took a no-earmark pledge in 2007. ``Too much taxpayer money 
     gets frittered away like this with little to no oversight,'' 
     she said.
       Calls and e-mails to spokesmen for Reps. G.K. Butterfield, 
     D-1st; Mike McIntyre, D-7th; Larry Kissell, D-8th; and 
     Patrick McHenry, R-10th, were not returned by press time.
       Reached by phone, Doug Abrahms, spokesman for 11th District 
     Democratic Congressman Heath Shuler, noted that Shuler was 
     not in Congress when funding for CSSP was first authorized. 
     Asked if Shuler would support continued funding, Abrahms 
     said, ``It's not something that's on his agenda right now.''


                              Deadline set

       Since reports on the internal review first surfaced in late 
     August, university officials have said that improvements need 
     to be made or else CSSP should be terminated.
       ``We need this program to show dramatic improvement in a 
     short period of time to remain viable'' said UNC-CH 
     Chancellor Holden Thorp at a Board of Trustees meeting Sept. 
     24.
       Kimrey Rhinehardt, vice president for federal relations at 
     UNC General Administration, sent an e-mail dated Aug. 17 to 
     Bowles recommending that CSSP's behavioral health initiative 
     be terminated.
       As for the entire program, Rhinehardt wrote, ``I think that 
     the CSSP leadership should be permitted a supervised 
     opportunity to dramatically improve the Program subject to 
     review by their National Advisory Committee and Review 
     Committee. If momentum does not tend toward progress by 
     October 23, 2009, then remaining federal funds should be 
     returned and the program should be terminated.''
       The review committee that authored the internal report is 
     continuing to monitor the program, said UNC-CH spokesman Mike 
     McFarland.

  Mr. CUMMINGS. I yield myself such time as I may consume.
  I'm sitting here and I'm amazed what I just heard. We spend 
phenomenal amounts of money on so many things, and we are talking about 
many young people simply trying to have an opportunity to be all that 
God meant for them to be.
  We've got a situation where we have an industry that is growing, and 
the question that has arisen many times is whether we are, as a 
country, being innovative. Are we preparing our people for the 
opportunities that come forth or are we sitting back and allowing them 
to get to a certain point, and then when they try to enter the doors 
that will allow them to rise up to go into the fields that they want to 
go into, then we say, ``Sorry. Too bad. All the money is gone''?
  There's something absolutely incredibly wrong with that picture. It's 
very easy to come down and say, oh, the mariners don't need this money, 
when, in fact, the costs of the mariner's education has gone up 
tremendously. It is very easy to say that we don't need this when the 
age of our folks who are in the industry is at 50 and we need to begin 
to bring in new people, and we are constantly talking about jobs in 
America and making sure that our people have the opportunities that 
they deserve. Something is wrong with the picture when their 
opportunity comes up and, the next thing you know, we take a hike on 
them.
  One of the things I will say is that this industry is growing. We've 
had a little bit of a slowdown here recently because of the economic 
situation, but anybody who knows anything about the maritime industry 
knows that after this economic situation is over, we will be increasing 
at a very rapid pace and to a very large extent.
  And so while I respect the gentlelady for her comments, what I will 
say is that this is money that is needed, and it is money that--as I 
have often said, our children are the living messages that we send to a 
future we will never see. The question is what kind of message do we 
send to the future if our children are unprepared, if they are 
unprepared to take on the responsibilities that lie in front of them? 
Must we always go overseas to get people to come to do these jobs? We 
are trying to educate our own, and that is what this is all about.
  Mr. Speaker, I have no other speakers, and I would assume that the 
gentleman would have a closing statement.
  I reserve the balance of my time.
  Mr. PETRI. I have no further requests for time and yield back the 
balance of my time.
  Ms. RICHARDSON. Madam Speaker, as a member of the Transportation and 
Infrastructure Committee I rise to lend my strong support to H.R. 2651, 
The Maritime Workforce Development Act which will help strengthen our 
maritime industry by providing loans to students who are pursuing a 
maritime education. I want to thank my colleague Representative 
Cummings for bringing this bill to the floor and bringing attention to 
this important issue.
  Having the port of Long Beach in my district, I know the importance 
of a well educated maritime industry. I also know how few Americans now 
pursue careers in the maritime industry and we should do what we can to 
make maritime education possible and affordable to all.
  This bill goes a long way towards rectifying problems in our maritime 
training and I want to thank Mr. Cummings for his work rectifying this 
important issue. I ask that my colleagues today support this bill, and 
continue to support our maritime industry.
  Mr. OBERSTAR. Mr. Speaker, I rise today in strong support of H.R. 
2651, the ``Maritime Workforce Development Act''. H.R. 2651 directs the 
Secretary of Transportation to establish a maritime career training and 
loan program. I thank the gentleman from Maryland (Mr. Cummings) for 
working on this important piece of legislation.
  The maritime industry anticipates a continuing shortage of qualified 
merchant mariners. Due to projected increases in commercial maritime 
traffic and a maritime workforce that is approaching retirement age, a 
maritime training program is needed to help ensure that our nation will 
continue to have skilled and experienced U.S. citizen merchant 
mariners. Such a program can begin in high schools by creating maritime 
training curriculum for students to obtain the basic knowledge of the 
maritime industry and skills to gain an entry-level job.
  H.R. 2651 also creates a maritime loan program that meets the needs 
and training requirements of mariners, which they may not get through a 
traditional two- or four-year educational institution.
  Mariners have certification courses that can last from two weeks to 
several months and their courses are typically taken between voyages. 
When mariners seek to enhance their credentials, they need a loan 
program that helps them with expenses while they are taking the time 
off to pursue certifications or licenses. H.R. 2651 creates a loan 
program to help mariners pay for their books, tuition, fees, room and 
board, and travel to and from their training facilities.
  In these tough economic times with high unemployment rates, it is 
critical for there to be a mechanism to aid people interested in a 
maritime career, whether they are recent high school graduates or if 
they graduated from high school 10 or 20 years ago. There is a shortage 
of maritime workers and a high percentage of mariners are approaching 
retirement age. Something must be done now to fill the gap and help 
sustain an adequate number of qualified mariners. To that end, H.R. 
2651

[[Page H11347]]

authorizes $10 million for each of fiscal years 2010 to 2015 to fund 
the education of mariners, and sustain our vital maritime industry.
  H.R. 2651 also requires the Secretary of Transportation to establish 
a maritime recruitment, training, and retention grant program. The 
Secretary is directed to consult with representatives of the maritime 
industry, labor organizations, other governmental entities and maritime 
industry interests. This program will be imperative to the maritime 
industry in recruiting new mariners, keeping current mariners, and 
assisting them with training and upgrading their licenses. H.R. 2651 
authorizes $10 million for each of fiscal years 2010 to 2015 to fund 
grants to support this program.
  The nation's maritime cargo volumes are expected to double by 2020. 
As waterborne commerce expands in the United States, there is a great 
need to meet the labor demands that the continued growth in the 
maritime industry is expected to create. H.R. 2651 creates mechanisms 
to ensure that our nation will be well equipped to handle the welcomed 
maritime growth.
  I urge my colleagues to join me in supporting H.R. 2651.
  Mr. CUMMINGS. Mr. Speaker, I yield back.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Maryland (Mr. Cummings) that the House suspend the rules 
and pass the bill, H.R. 2651, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________