[Congressional Record Volume 157, Number 158 (Thursday, October 20, 2011)]
[Senate]
[Pages S6877-S6879]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Mrs. Boxer, Mr. Reed, and Mr. 
        Whitehouse):
  S. 1759. A bill to facilitate the hosting in the United States of the 
34th America's Cup by authorizing certain eligible vessels to 
participate in activities related to the competition, to the Committee 
on Commerce, Science, and Transportation.
  Mrs. FEINSTEIN. Mr. President, today I wish to introduce the 
America's Cup Act of 2011. This legislation will enable foreign ships 
to compete for the 34th America's Cup, scheduled to begin in November.
  I am happy to be joined by Senators Barbara Boxer, Jack Reed, and 
Sheldon Whitehouse as original cosponsors.
  The America's Cup is one of the oldest global sporting competitions. 
Its economic impact is surpassed only by the Olympics and the World Cup 
of soccer.
  The event will begin in San Diego on November 12th. Next year the 
events continue in Italy and Newport, Rhode Island, and they conclude 
in San Francisco in September 2013.
  But the events in San Diego, Newport and San Francisco cannot take 
place unless we waive certain laws that prohibit foreign vessels from 
operating in U.S. waters.
  My legislation waives the Jones Act and the Passenger Vessel Services 
Act for all vessels participating in or supporting the America's Cup 
events.
  However, this waiver is limited and narrow. It was carefully crafted 
to protect our domestic industry and passenger service operators. The 
legislation specifically states that the authority to operate in U.S. 
waters is strictly limited to activities that occur during and related 
to America's Cup Events.
  The vessels are prohibited from transporting more than 25 individuals 
or from receiving compensation for transportation.
  The vessels are prohibited from transporting merchandise between 
ports.
  I understand that Jones Act waivers can be sensitive subjects for 
many, but I want to assure my colleagues that this is a 
noncontroversial bill.
  The waiver is widely supported by local governments and business 
groups in California and Rhode Island.
  Equally important, it is not opposed by the American Maritime 
Partnership, AMP. Like many of us, the AMP's neutrality was critical to 
me before I decided to pursue this legislation.
  As many of my colleagues know, the American Maritime Partnership, 
formerly called the American Cabotage Task Force, is the voice of the 
U.S. domestic maritime industry. The group represents more than 450 
member organizations ranging from vessel owners and shipboard unions to 
shipbuilders and equipment manufacturers.
  These diverse interests recognize the importance of a strong domestic 
maritime industry and share my belief that the continued success of 
this industry is critical for America's economic security and 
independence.
  Needless to say, Jones Act waivers are not an issue the AMP takes 
lightly, so I thank them for their willingness to work with me to bring 
this great event back to the United States.
  The reason the American Maritime Partnership and so many other 
organizations support this legislation is that it will create jobs and 
stimulate the economy.
  As I mentioned, the first event in the America's Cup World Series 
will occur in San Diego. This event alone is expected to bring $20 
million to local businesses.
  When the larger America's Cup Finals take place in San Francisco, the 
economic impacts are expected to be far greater. According to a recent 
study by Beacon Economics and the Bay Area Council the increase in 
economic activity in San Francisco could be nearly $1.4 billion. This 
is three times the estimated impact of hosting a Super Bowl, $300-$500 
million.
  The event could create as many as 8,840 jobs in San Francisco.
  Local Governments could generate an additional $85 million in 
revenue.
  Nationwide, the event is expected to increase domestic economic 
activity by $1.9 billion and create 11,978 jobs.
  The economic impacts of these events are significant.
  The waiver is widely supported by labor, business and members of both 
parties.
  This is straightforward, common sense legislation that will 
facilitate international participation in a globally recognized 
sporting event.
  I urge my colleagues to support this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1759

       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 ``America's Cup Act of 2011''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) 34th america's cup.--The term ``34th America's Cup''--
       (A) means the sailing competitions, commencing in 2011, to 
     be held in the United States in response to the challenge to 
     the defending team from the United States, in accordance with 
     the terms of the America's Cup governing Deed of Gift, dated 
     October 24, 1887; and
       (B) if a United States yacht club successfully defends the 
     America's Cup, includes additional sailing competitions 
     conducted by America's Cup Race Management during the 1-year 
     period beginning on the last date of such defense.
       (2) America's cup race management.--The term ``America's 
     Cup Race Management'' means the entity established to provide 
     for independent, professional, and neutral race management of 
     the America's Cup sailing competitions.
       (3) Eligibility certification.--The term ``Eligibility 
     Certification'' means a certification issued under section 4.
       (4) Eligible vessel.--The term ``eligible vessel'' means a 
     competing vessel or supporting vessel of any registry that--
       (A) is recognized by America's Cup Race Management as an 
     official competing vessel, or supporting vessel of, the 34th 
     America's Cup, as evidenced in writing to the Administrator 
     of the Maritime Administration of the Department of 
     Transportation;
       (B) transports not more than 25 individuals, in addition to 
     the crew;
       (C) is not a ferry (as defined under section 2101(10b) of 
     title 46, United States Code;
       (D) does not transport individuals in point-to-point 
     service for hire; and
       (E) does not transport merchandise between ports in the 
     United States.
       (5) Supporting vessel.--The term ``supporting vessel'' 
     means a vessel that is operating in support of the 34th 
     America's Cup by--
       (A) positioning a competing vessel on the race course;
       (B) transporting equipment and supplies utilized for the 
     staging, operations, or broadcast of the competition; or
       (C) transporting individuals who--
       (i) have not purchased tickets or directly paid for their 
     passage; and
       (ii) who are engaged in the staging, operations, or 
     broadcast of the competition, race team personnel, members of 
     the media, or event sponsors.

[[Page S6879]]

     SEC. 3. AUTHORIZATION OF ELIGIBLE VESSELS.

       Notwithstanding sections 55102, 55103, and 55111 of title 
     46, United States Code, an eligible vessel, operating only in 
     preparation for, or in connection with, the 34th America's 
     Cup competition, may position competing vessels and may 
     transport individuals and equipment and supplies utilized for 
     the staging, operations, or broadcast of the competition from 
     and around the ports in the United States.

     SEC. 4. CERTIFICATION.

       (a) Requirement.--A vessel may not operate under section 3 
     unless the vessel has received an Eligibility Certification.
       (b) Issuance.--The Administrator of the Maritime 
     Administration of the Department of Transportation is 
     authorized to issue an Eligibility Certification with respect 
     to any vessel that the Administrator determines, in his or 
     her sole discretion, meets the requirements set forth in 
     section 2(4).

     SEC. 5. ENFORCEMENT.

       Notwithstanding sections 55102, 55103, and 55111 of title 
     46, United States Code, an Eligibility Certification shall be 
     conclusive evidence to the Secretary of the Department of 
     Homeland Security of the qualification of the vessel for 
     which it has been issued to participate in the 34th America's 
     Cup as a competing vessel or a supporting vessel.

     SEC. 6. PENALTY.

       Any vessel participating in the 34th America's Cup as a 
     competing vessel or supporting vessel that has not received 
     an Eligibility Certification or is not in compliance with 
     section 12112 of title 46, United States Code, shall be 
     subject to the applicable penalties provided in chapters 121 
     and 551 of title 46, United States Code.

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