[Congressional Record (Bound Edition), Volume 156 (2010), Part 6]
[Senate]
[Pages 7619-7638]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3910. Mr. PRYOR submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 1013, line 18, strike ``and'' and all that follows 
     through line 20 and insert the following:
       ``(ii) a description of any internal review of rating 
     procedures and methodologies conducted by the nationally 
     recognized statistical rating organization; and
       ``(iii) an evaluation of how well the nationally recognized 
     statistical rating organization adheres to the rating 
     procedures and methodologies of the nationally recognized 
     statistical rating organization;
       ``(iv) a narrative response agreeing or disagreeing with 
     the results of the most recent annual examination of the 
     nationally recognized statistical rating organization carried 
     out by the Commission under subsection (p)(3); and
       ``(v) a certification that the report is accurate and 
     complete.
       On page 1016, line 18, strike ``and'' and all that follows 
     through line 23 and insert the following:
       ``(viii) the policies of the nationally recognized 
     statistical rating organization governing the post-employment 
     activities of former staff of the nationally recognized 
     statistical rating organization; and
       ``(ix) whether the nationally recognized statistical rating 
     organization fully complies with the public disclosure 
     requirements under this section regarding rating procedures 
     and methodologies.
                                 ______
                                 
  SA 3911. Mr. CASEY submitted an amendment intended to be proposed to 
amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself and 
Mrs. Lincoln)) to the bill S. 3217, to promote the financial stability 
of the United States by improving accountability and transparency in 
the financial system, to end ``too big to fail'', to protect the 
American taxpayer by ending bailouts, to protect consumers from abusive 
financial services practices, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 40, between lines 12 and 13, insert the following:
       (5) Disclosure of reasons for determination.--
       (A) Statement.--Following an affirmative determination by 
     the Council with respect to any nonbank financial company 
     that is registered pursuant to the Investment Company Act of 
     1940, the primary financial regulatory agency may request the 
     Council to provide a detailed statement of--
       (i) reasons for the determination by the Council that 
     material financial distress at that particular company would 
     pose a threat to the financial stability of the United 
     States; and
       (ii) why prudential regulation by the primary financial 
     regulatory agency would be inadequate to prevent such a 
     threat.
       (B) Requests for reconsideration.--If the primary financial 
     regulatory agency disagrees with the detailed statement of 
     reasons provided under subparagraph (A), the agency may 
     request the Council to reconsider its determination, or may 
     propose its own prudential standards to address the concerns 
     identified in the statement of reasons in lieu of prudential 
     standards imposed by the Board of Governors, which prudential 
     standards the Council shall accept, unless it determines, by 
     a vote of not fewer than 2/3 of the members then serving, 
     including an affirmative vote by the Chairperson, that such 
     prudential standards would be inadequate to prevent such a 
     threat.
       On page 40, line 23, insert after ``company,'' the 
     following: ``including all procedures under subsection 
     (e)(5),''.
                                 ______
                                 
  SA 3912. Mr. WHITEHOUSE (for Ms. Cantwell) proposed an amendment to 
the bill H.R. 3619, to authorize appropriations for the Coast Guard for 
fiscal year 2010, and for other purposes; as follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Coast Guard Authorization 
     Act for Fiscal Years 2010 and 2011''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Authorized levels of military strength and training.

                        TITLE II--ADMINISTRATION

Sec. 201. Authority to distribute funds through grants, cooperative 
              agreements, and contracts to maritime authorities and 
              organizations.
Sec. 202. Assistance to foreign governments and maritime authorities.
Sec. 203. Cooperative agreements for industrial activities.
Sec. 204. Defining Coast Guard vessels and aircraft.

                        TITLE III--ORGANIZATION

Sec. 301. Vice commandant; vice admirals.
Sec. 302. Number and distribution of commissioned officers on the 
              active duty promotion list.

                          TITLE IV--PERSONNEL

Sec. 401. Leave retention authority.
Sec. 402. Legal assistance for Coast Guard reservists.
Sec. 403. Reimbursement for certain medical related expenses.
Sec. 404. Reserve commissioned warrant officer to lieutenant program.
Sec. 405. Enhanced status quo officer promotion system.
Sec. 406. Appointment of civilian Coast Guard judges.
Sec. 407. Coast Guard participation in the Armed Forces Retirement Home 
              system.
Sec. 408. Crew wages on passenger vessels.
Sec. 409. Protection and fair treatment of seafarers.

                      TITLE V--ACQUISITION REFORM

Sec. 501. Chief Acquisition Officer.
Sec. 502. Acquisitions.

                       ``CHAPTER 15--ACQUISITIONS

                   ``Subchapter 1--General Provisions

  ``Sec.
  ``561. Acquisition directorate
  ``562. Senior acquisition leadership team
  ``563. Improvements in Coast Guard acquisition management
  ``564. Recognition of Coast Guard personnel for excellence in 
              acquisition
  ``565. Prohibition on use of lead systems integrators
  ``566. Required contract terms
  ``567. Department of Defense consultation
  ``568. Undefinitized contractual actions

      ``Subchapter 2--Improved Acquisition Process and Procedures

  ``Sec.
  ``571. Identification of major system acquisitions

[[Page 7620]]

  ``572. Acquisition
  ``573. Preliminary development and demonstration
  ``574. Acquisition, production, deployment, and support
  ``575. Acquisition program baseline breach

                      ``Subchapter 3--Definitions

  ``Sec.
  ``581. Definitions''

Sec. 503. Report and guidance on excess pass-through charges.

                   TITLE VI--SHIPPING AND NAVIGATION

Sec. 601. Technical amendments to chapter 313 of title 46, United 
              States Code.
Sec. 602. Clarification of rulemaking authority.
Sec. 603. Icebreakers.
Sec. 604. Phaseout of vessels supporting oil and gas development.

                      TITLE VII--VESSEL CONVEYANCE

Sec. 701. Short title.
Sec. 702. Conveyance of Coast Guard vessels for public purposes.

                  TITLE VIII--OIL POLLUTION PREVENTION

Sec. 801. Rulemakings.
Sec. 802. Oil transfers from vessels.
Sec. 803. Improvements to reduce human error and near miss incidents.
Sec. 804. Olympic coast national marine sanctuary.
Sec. 805. Prevention of small oil spills.
Sec. 806. Improved coordination with tribal governments.
Sec. 807. Report on availability of technology to detect the loss of 
              oil.
Sec. 808. Use of oil spill liability trust fund.
Sec. 809. International efforts on enforcement.
Sec. 810. Higher volume port area regulatory definition change.
Sec. 811. Tug escorts for laden oil tankers.
Sec. 812. Extension of financial responsibility.
Sec. 813. Oil spill liability trust fund investment amount.
Sec. 814. Liability for use of single-hull vessels.

                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Vessel determination.
Sec. 902. Conveyance of the Presque Isle Light Station Fresnel Lens to 
              Presque Isle Township, Michigan.
Sec. 903. Land conveyance, Coast Guard property in Marquette County, 
              Michigan, to the city of Marquette, Michigan.
Sec. 904. Offshore supply vessels.
Sec. 905. Assessment of certain aids to navigation and traffic flow.
Sec. 906. Alternative licensing program for operators of uninspected 
              passenger vessels on Lake Texoma in Texas and Oklahoma.

                       TITLE X--BUDGETARY EFFECTS

Sec. 1001. Budgetary effects.

                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are authorized to be appropriated for necessary 
     expenses of the Coast Guard for each of fiscal years 2010 and 
     2011 as follows:
       (1) For the operation and maintenance of the Coast Guard, 
     $6,556,188,000, of which $24,500,000 is authorized to be 
     derived from the Oil Spill Liability Trust Fund to carry out 
     the purposes of section 1012(a)(5) of the Oil Pollution Act 
     of 1990.
       (2) For the acquisition, construction, renovation, and 
     improvement of aids to navigation, shore and offshore 
     facilities, vessels, and aircraft, including equipment 
     related thereto, $1,383,980,000, of which $20,000,000 shall 
     be derived from the Oil Spill Liability Trust Fund to carry 
     out the purposes of section 1012(a)(5) of the Oil Pollution 
     Act of 1990, to remain available until expended; such funds 
     appropriated for personnel compensation and benefits and 
     related costs of acquisition, construction, and improvements 
     shall be available for procurement of services necessary to 
     carry out the Integrated Deepwater Systems program.
       (3) For retired pay (including the payment of obligations 
     otherwise chargeable to lapsed appropriations for this 
     purpose), payments under the Retired Serviceman's Family 
     Protection and Survivor Benefit Plans, and payments for 
     medical care of retired personnel and their dependents under 
     chapter 55 of title 10, United States Code, $1,361,245,000.
       (4) For environmental compliance and restoration functions 
     under chapter 19 of title 14, United States Code, 
     $13,198,000.
       (5) For research, development, test, and evaluation 
     programs related to maritime technology, $19,745,000.
       (6) For operation and maintenance of the Coast Guard 
     reserve program, $133,632,000.

     SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH AND 
                   TRAINING.

       (a) Active Duty Strength.--The Coast Guard is authorized an 
     end-of-year strength of active duty personnel of 49,954 as of 
     September 30, 2010, and 52,452 as of September 30, 2011.
       (b) Military Training Student Loads.--The Coast Guard is 
     authorized average military training student loads as 
     follows:
       (1) For recruit and special training, 2,500 student years 
     for fiscal year 2010, and 2,625 student years for fiscal year 
     2011.
       (2) For flight training, 170 student years for fiscal year 
     2010 and 179 student years for fiscal year 2011.
       (3) For professional training in military and civilian 
     institutions, 350 student years for fiscal year 2010 and 368 
     student years for fiscal year 2011.
       (4) For officer acquisition, 1,300 student years for fiscal 
     year 2010 and 1,365 student years for fiscal year 2011.

                        TITLE II--ADMINISTRATION

     SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH GRANTS, 
                   COOPERATIVE AGREEMENTS, AND CONTRACTS TO 
                   MARITIME AUTHORITIES AND ORGANIZATIONS.

       Section 149 of title 14, United States Code, is amended by 
     adding at the end the following:
       ``(c) Grants to International Maritime Organizations.--The 
     Commandant may, after consultation with the Secretary of 
     State, make grants to, or enter into cooperative agreements, 
     contracts, or other agreements with, international maritime 
     organizations for the purpose of acquiring information or 
     data about merchant vessel inspections, security, safety and 
     environmental requirements, classification, and port state or 
     flag state law enforcement or oversight.''.

     SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND MARITIME 
                   AUTHORITIES.

       Section 149 of title 14, United States Code, as amended by 
     section 201, is further amended by adding at the end the 
     following:
       ``(d) Authorized Activities.--
       ``(1) The Commandant may transfer or expend funds from any 
     appropriation available to the Coast Guard for--
       ``(A) the activities of traveling contact teams, including 
     any transportation expense, translation services expense, or 
     administrative expense that is related to such activities;
       ``(B) the activities of maritime authority liaison teams of 
     foreign governments making reciprocal visits to Coast Guard 
     units, including any transportation expense, translation 
     services expense, or administrative expense that is related 
     to such activities;
       ``(C) seminars and conferences involving members of 
     maritime authorities of foreign governments;
       ``(D) distribution of publications pertinent to engagement 
     with maritime authorities of foreign governments; and
       ``(E) personnel expenses for Coast Guard civilian and 
     military personnel to the extent that those expenses relate 
     to participation in an activity described in subparagraph (C) 
     or (D).
       ``(2) An activity may not be conducted under this 
     subsection with a foreign country unless the Secretary of 
     State approves the conduct of such activity in that foreign 
     country.''.

     SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL ACTIVITIES.

       Section 151 of title 14, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``All 
     orders''; and
       (2) by adding at the end the following:
       ``(b) Orders and Agreements for Industrial Activities.--
     Under this section, the Coast Guard industrial activities may 
     accept orders and enter into reimbursable agreements with 
     establishments, agencies, and departments of the Department 
     of Defense and the Department of Homeland Security.''.

     SEC. 204. DEFINING COAST GUARD VESSELS AND AIRCRAFT.

       (a) In General.--Chapter 17 of title 14, United States 
     Code, is amended by inserting after section 638 the following 
     new section:

     ``Sec. 638a. Coast Guard vessels and aircraft defined

       ``For the purposes of sections 637 and 638 of this title, 
     the term Coast Guard vessels and aircraft means--
       ``(1) any vessel or aircraft owned, leased, transferred to, 
     or operated by the Coast Guard and under the command of a 
     Coast Guard member; or
       ``(2) any other vessel or aircraft under the tactical 
     control of the Coast Guard on which one or more members of 
     the Coast Guard are assigned and conducting Coast Guard 
     missions.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     17 of such title is amended by inserting after the item 
     relating to section 638 the following:

``638a. Coast Guard vessels and aircraft defined.''.

                        TITLE III--ORGANIZATION

     SEC. 301. VICE COMMANDANT; VICE ADMIRALS.

        (a) Vice Commandant.--
       (1) Section 41 of title 14, United States Code, is amended 
     by striking ``an admiral,'' and inserting ``admirals,''.
       (2) The fourth sentence of section 47 of title 14, United 
     States Code, is amended by striking ``vice admiral'' and 
     inserting ``admiral''.
       (b) Vice Admirals.--Section 50 of such title is amended to 
     read as follows:

     ``Sec. 50. Vice admirals

       ``(a)(1) The President may designate no more than 4 
     positions of importance and responsibility that shall be held 
     by officers who--
       ``(A) while so serving, shall have the grade of vice 
     admiral, with the pay and allowances of that grade; and

[[Page 7621]]

       ``(B) shall perform such duties as the Commandant may 
     prescribe.
       ``(2) The President may appoint, by and with the advice and 
     consent of the Senate, and reappoint, by and with the advice 
     and consent of the Senate, to any such position an officer of 
     the Coast Guard who is serving on active duty above the grade 
     of captain. The Commandant shall make recommendations for 
     such appointments.
       ``(b)(1) The appointment and the grade of vice admiral 
     shall be effective on the date the officer assumes that duty 
     and, except as provided in paragraph (2) of this subsection 
     or in section 51(d) of this title, shall terminate on the 
     date the officer is detached from that duty.
       ``(2) An officer who is appointed to a position designated 
     under subsection (a) shall continue to hold the grade of vice 
     admiral--
       ``(A) while under orders transferring the officer to 
     another position designated under subsection (a), beginning 
     on the date the officer is detached from that duty and 
     terminating on the date before the day the officer assumes 
     the subsequent duty, but not for more than 60 days;
       ``(B) while hospitalized, beginning on the day of the 
     hospitalization and ending on the day the officer is 
     discharged from the hospital, but not for more than 180 days; 
     and
       ``(C) while awaiting retirement, beginning on the date the 
     officer is detached from duty and ending on the day before 
     the officer's retirement, but not for more than 60 days.
       ``(c)(1) An appointment of an officer under subsection (a) 
     does not vacate the permanent grade held by the officer.
       ``(2) An officer serving in a grade above rear admiral who 
     holds the permanent grade of rear admiral (lower half) shall 
     be considered for promotion to the permanent grade of rear 
     admiral as if the officer was serving in the officer's 
     permanent grade.
       ``(d) Whenever a vacancy occurs in a position designated 
     under subsection (a), the Commandant shall inform the 
     President of the qualifications needed by an officer serving 
     in that position or office to carry out effectively the 
     duties and responsibilities of that position or office.''.
       (c) Repeal.--Section 50a of such title is repealed.
       (d) Conforming Amendments.--Section 51 of such title is 
     amended--
       (1) by striking subsections (a), (b), and (c) and inserting 
     the following:
       ``(a) An officer, other than the Commandant, who, while 
     serving in the grade of admiral or vice admiral, is retired 
     for physical disability shall be placed on the retired list 
     with the highest grade in which that officer served.
       ``(b) An officer, other than the Commandant, who is retired 
     while serving in the grade of admiral or vice admiral, or 
     who, after serving at least 2\1/2\ years in the grade of 
     admiral or vice admiral, is retired while serving in a lower 
     grade, may in the discretion of the President, be retired 
     with the highest grade in which that officer served.
        ``(c) An officer, other than the Commandant, who, after 
     serving less than 2\1/2\ years in the grade of admiral or 
     vice admiral, is retired while serving in a lower grade, 
     shall be retired in his permanent grade.''; and
       (2) by striking ``Area Commander, or Chief of Staff'' in 
     subsection (d)(2) and inserting ``or Vice Admiral''.
       (e) Continuity of Grade.--Section 52 of title 14, United 
     States Code, is amended by inserting ``or admiral'' after 
     ``vice admiral'' the first place it appears.
       (f) Continuation on Active Duty.--The second sentence of 
     section 290(a) of title 14, United States Code, is amended to 
     read as follows: ``Officers, other than the Commandant, 
     serving for the time being or who have served in the grade of 
     vice admiral or admiral are not subject to consideration for 
     continuation under this subsection, and as to all other 
     provisions of this section shall be considered as having been 
     continued at the grade of rear admiral.''.
       (g) Clerical Amendments.--
       (1) The section caption for section 47 of such title is 
     amended to read as follows:

     ``Sec. 47. Vice commandant; appointment''.

       (2) The section caption for section 52 of title 14, United 
     States Code, is amended to read as follows:

     ``Sec. 52. Vice admirals and admiral, continuity of grade''.

       (3) The table of contents for chapter 3 of such title is 
     amended--
       (A) by striking the item relating to section 47 and 
     inserting the following:

``47. Vice Commandant; appointment.'';

       (B) by striking the item relating to section 50a;
       (C) by striking the item relating to section 50 and 
     inserting the following:

``50. Vice admirals.''; and

       (D) by striking the item relating to section 52 and 
     inserting the following:

``52. Vice admirals and admiral, continuity of grade.''.

       (h) Technical Correction.--Section 47 of such title is 
     further amended by striking ``subsection'' in the fifth 
     sentence and inserting ``section''.
       (i) Treatment of Incumbents; Transition.--
       (1) Notwithstanding any other provision of law, the officer 
     who, on the date of enactment of this Act, is serving as Vice 
     Commandant--
       (A) shall continue to serve as Vice Commandant;
       (B) shall have the grade of admiral with pay and allowances 
     of that grade; and
       (C) shall not be required to be reappointed by reason of 
     the enactment of that Act.
       (2) Notwithstanding any other provision of law, an officer 
     who, on the date of enactment of this Act, is serving as 
     Chief of Staff, Commander, Atlantic Area, or Commander, 
     Pacific Area--
       (A) shall continue to have the grade of vice admiral with 
     pay and allowance of that grade until such time that the 
     officer is relieved of his duties and appointed and confirmed 
     to another position as a vice admiral or admiral; or
       (B) for the purposes of transition, may continue at the 
     grade of vice admiral with pay and allowance of that grade, 
     for not more than 1 year after the date of enactment of this 
     Act, to perform the duties of the officer's former position 
     and any other such duties that the Commandant prescribes.

     SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED OFFICERS ON 
                   THE ACTIVE DUTY PROMOTION LIST.

       (a) In General.--Section 42 of title 14, United States 
     Code, is amended--
       (1) by striking subsections (a), (b), and (c) and inserting 
     the following:
       ``(a) The total number of Coast Guard commissioned officers 
     on the active duty promotion list, excluding warrant 
     officers, shall not exceed 7,200. This total number may be 
     temporarily increased up to 2 percent for no more than the 60 
     days that follow the commissioning of a Coast Guard Academy 
     class.
        ``(b) The total number of commissioned officers authorized 
     by this section shall be distributed in grade not to exceed 
     the following percentages:
       ``(1) 0.375 percent for rear admiral.
       ``(2) 0.375 percent for rear admiral (lower half).
       ``(3) 6.0 percent for captain.
       ``(4) 15.0 percent for commander.
       ``(5) 22.0 percent for lieutenant commander.

     The Secretary shall prescribe the percentages applicable to 
     the grades of lieutenant, lieutenant (junior grade), and 
     ensign. The Secretary may, as the needs of the Coast Guard 
     require, reduce any of the percentages set forth in 
     paragraphs (1) through (5) and apply that total percentage 
     reduction to any other lower grade or combination of lower 
     grades.
       ``(c) The Secretary shall, at least once a year, compute 
     the total number of commissioned officers authorized to serve 
     in each grade by applying the grade distribution percentages 
     of this section to the total number of commissioned officers 
     listed on the current active duty promotion list. In making 
     such calculations, any fraction shall be rounded to the 
     nearest whole number. The number of commissioned officers on 
     the active duty promotion list serving with other departments 
     or agencies on a reimbursable basis or excluded under the 
     provisions of section 324(d) of title 49, shall not be 
     counted against the total number of commissioned officers 
     authorized to serve in each grade.'';
       (2) by striking subsection (e) and inserting the following:
       ``(e) The number of officers authorized to be serving on 
     active duty in each grade of the permanent commissioned 
     teaching staff of the Coast Guard Academy and of the Reserve 
     serving in connection with organizing, administering, 
     recruiting, instructing, or training the reserve components 
     shall be prescribed by the Secretary.''; and
       (3) by striking the caption of such section and inserting 
     the following:

     ``Sec. 42. Number and distribution of commissioned officers 
       on the active duty promotion list''.

       (b) Clerical Amendment.--The table of contents for chapter 
     3 of such title is amended by striking the item relating to 
     section 42 and inserting the following:

``42. Number and distribution of commissioned officers on the active 
              duty promotion list''.

                          TITLE IV--PERSONNEL

     SEC. 401. LEAVE RETENTION AUTHORITY.

       Section 701(f)(2) of title 10, United States Code, is 
     amended by inserting ``or a declaration of a major disaster 
     or emergency by the President under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (Public Law 93-
     288, 42 U.S.C. 5121 et seq.)'' after ``operation''.

     SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERVISTS.

       Section 1044(a)(4) of title 10, United States Code, is 
     amended--
       (1) by striking ``(as determined by the Secretary of 
     Defense),'' and inserting ``(as determined by the Secretary 
     of Defense and the Secretary of the department in which the 
     Coast Guard is operating, with respect to the Coast Guard 
     when it is not operating as a service of the Navy),''; and
       (2) by striking ``prescribed by the Secretary of Defense,'' 
     and inserting ``prescribed by Secretary of Defense and the 
     Secretary of the department in which the Coast Guard is 
     operating, with respect to the Coast Guard when it is not 
     operating as a service of the Navy,''.

[[Page 7622]]



     SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RELATED TRAVEL 
                   EXPENSES.

       Section 1074i(a) of title 10, United States Code, is 
     amended--
       (1) by striking ``In General.--In'' and inserting ``In 
     General.--(1) In''; and
       (2) by adding at the end the following:
       ``(2) In any case in which a covered beneficiary resides on 
     an INCONUS island that lacks public access roads to the 
     mainland and is referred by a primary care physician to a 
     specialty care provider on the mainland who provides services 
     less than 100 miles from the location in which the 
     beneficiary resides, the Secretary shall reimburse the 
     reasonable travel expenses of the covered beneficiary, and, 
     when accompaniment by an adult is necessary, for a parent or 
     guardian of the covered beneficiary or another member of the 
     covered beneficiary's family who is at least 21 years of 
     age.''.

     SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO LIEUTENANT 
                   PROGRAM.

       Section 214(a) of title 14, United States Code, is amended 
     to read as follows:
       ``(a) The President may appoint temporary commissioned 
     officers--
       ``(1) in the Regular Coast Guard in a grade, not above 
     lieutenant, appropriate to their qualifications, experience, 
     and length of service, as the needs of the Coast Guard may 
     require, from among the commissioned warrant officers, 
     warrant officers, and enlisted members of the Coast Guard, 
     and from licensed officers of the United States merchant 
     marine; and
       ``(2) in the Coast Guard Reserve in a grade, not above 
     lieutenant, appropriate to their qualifications, experience, 
     and length of service, as the needs of the Coast Guard may 
     require, from among the commissioned warrant officers of the 
     Coast Guard Reserve.''.

     SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION SYSTEM.

       (a) Section 253(a) of title 14, United States Code, is 
     amended--
       (1) by inserting ``and'' after ``considered,''; and
       (2) by striking ``consideration, and the number of officers 
     the board may recommend for promotion'' and inserting 
     ``consideration''.
       (b) Section 258 of such title is amended--
       (1) by inserting ``(a)'' before ``The Secretary''; and
       (2) by adding at the end the following:
       ``(b) In addition to the information provided pursuant to 
     subsection (a), the Secretary may furnish the selection 
     board--
       ``(1) specific direction relating to the needs of the 
     service for officers having particular skills, including 
     direction relating to the need for a minimum number of 
     officers with particular skills within a specialty; and
       ``(2) such other guidance that the Secretary believes may 
     be necessary to enable the board to properly perform its 
     functions.
     Selections made based on the direction and guidance provided 
     under this subsection shall not exceed the maximum percentage 
     of officers who may be selected from below the announced 
     promotion zone at any given selection board convened under 
     section 251 of this title.''.
       (c) Section 259(a) of such title is amended by striking 
     ``board'' the second place it appears and inserting ``board, 
     giving due consideration to the needs of the service for 
     officers with particular skills so noted in the specific 
     direction furnished pursuant to section 258 of this title,''.
       (d) Section 260(b) of such title is amended by inserting 
     ``to meet the needs of the service (as noted in the specific 
     direction furnished the board under section 258 of this 
     title)'' after ``qualified for promotion''.

     SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD JUDGES.

       Section 875 of the Homeland Security Act of 2002 (6 U.S.C. 
     455) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Appointment of Judges.--The Secretary may appoint 
     civilian employees of the Department of Homeland Security as 
     appellate military judges, available for assignment to the 
     Coast Guard Court of Criminal Appeals as provided for in 
     section 866(a) of title 10, United States Code.''.

     SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED FORCES 
                   RETIREMENT HOME SYSTEM.

       (a) Eligibility under the Armed Forces Retirement Home 
     Act.--Section 1502 of the Armed Forces Retirement Home Act of 
     1991 (24 U.S.C. 401) is amended--
       (1) by striking ``does not include the Coast Guard when it 
     is not operating as a service of the Navy.'' in paragraph (4) 
     and inserting ``has the meaning given such term in section 
     101(4) of title 10.'';
       (2) by striking ``and'' in paragraph (5)(C);
       (3) by striking ``Affairs.'' in paragraph (5)(D) and 
     inserting ``Affairs; and'';
       (4) by adding at the end of paragraph (5) the following:
       ``(E) the Assistant Commandant of the Coast Guard for Human 
     Resources.''; and
       (5) by adding at the end of paragraph (6) the following:
       ``(E) The Master Chief Petty Officer of the Coast Guard.''.
       (b) Deductions.--
       (1) Section 2772 of title 10, United States Code, is 
     amended--
       (A) by striking ``of the military department'' in 
     subsection (a);
       (B) by striking ``Armed Forces Retirement Home Board'' in 
     subsection (b) and inserting ``Chief Operating Officer of the 
     Armed Forces Retirement Home''; and
       (C) by striking subsection (c).
       (2) Section 1007(i) of title 37, United States Code, is 
     amended--
       (A) by striking ``Armed Forces Retirement Home Board,'' in 
     paragraph (3) and inserting ``Chief Operating Officer of the 
     Armed Forces Retirement Home,''; and
       (B) by striking ``does not include the Coast Guard when it 
     is not operating as a service of the Navy.'' in paragraph (4) 
     and inserting ``has the meaning given such term in section 
     101(4) of title 10.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first pay period 
     beginning on or after January 1, 2010.

     SEC. 408. CREW WAGES ON PASSENGER VESSELS.

       (a) Foreign and Intercoastal Voyages.--
       (1) Cap on penalty wages.--Section 10313(g) of title 46, 
     United States Code, is amended--
       (A) by striking ``When'' and inserting ``(1) Subject to 
     paragraph (2), when''; and
       (B) by adding at the end the following:
       ``(2) The total amount required to be paid under paragraph 
     (1) with respect to all claims in a class action suit by 
     seamen on a passenger vessel capable of carrying more than 
     500 passengers for wages under this section against a vessel 
     master, owner, or operator or the employer of the seamen 
     shall not exceed 10 times the unpaid wages that are the 
     subject of the claims.
       ``(3) A class action suit for wages under this subsection 
     must be commenced within 3 years after the later of--
       ``(A) the date of the end of the last voyage for which the 
     wages are claimed; or
       ``(B) the receipt, by a seaman who is a claimant in the 
     suit, of a payment of wages that are the subject of the suit 
     that is made in the ordinary course of employment.''.
       (2) Deposits.--Section 10315 of such title is amended by 
     adding at the end the following:
       ``(f) Deposits in Seaman Account.--By written request 
     signed by the seaman, a seaman employed on a passenger vessel 
     capable of carrying more than 500 passengers may authorize 
     the master, owner, or operator of the vessel, or the employer 
     of the seaman, to make deposits of wages of the seaman into a 
     checking, savings, investment, or retirement account, or 
     other account to secure a payroll or debit card for the 
     seaman if--
       ``(1) the wages designated by the seaman for such deposit 
     are deposited in a United States or international financial 
     institution designated by the seaman;
       ``(2) such deposits in the financial institution are fully 
     guaranteed under commonly accepted international standards by 
     the government of the country in which the financial 
     institution is licensed;
       ``(3) a written wage statement or pay stub, including an 
     accounting of any direct deposit, is delivered to the seaman 
     no less often than monthly; and
       ``(4) while on board the vessel on which the seaman is 
     employed, the seaman is able to arrange for withdrawal of all 
     funds on deposit in the account in which the wages are 
     deposited.''.
       (b) Coastwise Voyages.--
       (1) Cap on penalty wages.--Section 10504(c) of such title 
     is amended--
       (A) by striking ``When'' and inserting ``(1) Subject to 
     subsection (d), and except as provided in paragraph (2), 
     when''; and
       (B) by adding at the end the following:
       ``(2) The total amount required to be paid under paragraph 
     (1) with respect to all claims in a class action suit by 
     seamen on a passenger vessel capable of carrying more than 
     500 passengers for wages under this section against a vessel 
     master, owner, or operator or the employer of the seamen 
     shall not exceed 10 times the unpaid wages that are the 
     subject of the claims.
       ``(3) A class action suit for wages under this subsection 
     must be commenced within 3 years after the later of--
       ``(A) the date of the end of the last voyage for which the 
     wages are claimed; or
       ``(B) the receipt, by a seaman who is a claimant in the 
     suit, of a payment of wages that are the subject of the suit 
     that is made in the ordinary course of employment.''.
       (2) Deposits.--Section 10504 of such title is amended by 
     adding at the end the following:
       ``(f) Deposits in Seaman Account.--By written request 
     signed by the seaman, a seaman employed on a passenger vessel 
     capable of carrying more than 500 passengers may authorize 
     the master, owner, or operator of the vessel, or the employer 
     of the seaman, to make deposits of wages of the seaman into a 
     checking, savings, investment, or retirement account, or 
     other account to secure a payroll or debit card for the 
     seaman if--
       ``(1) the wages designated by the seaman for such deposit 
     are deposited in a United States or international financial 
     institution designated by the seaman;
       ``(2) such deposits in the financial institution are fully 
     guaranteed under commonly accepted international standards by 
     the government of the country in which the financial 
     institution is licensed;

[[Page 7623]]

       ``(3) a written wage statement or pay stub, including an 
     accounting of any direct deposit, is delivered to the seaman 
     no less often than monthly; and
       ``(4) while on board the vessel on which the seaman is 
     employed, the seaman is able to arrange for withdrawal of all 
     funds on deposit in the account in which the wages are 
     deposited.''.

     SEC. 409. PROTECTION AND FAIR TREATMENT OF SEAFARERS.

       (a) In General.--Chapter 111 of title 46, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``11113. Protection and fair treatment of seafarers

       ``(a) Purpose.--The purpose of this section is to ensure 
     the protection and fair treatment of seafarers.
       ``(b) Fund.--
       ``(1) Establishment.--There is established in the Treasury 
     a special fund known as the `Support of Seafarers Fund'.
       ``(2) Use of amounts in fund.--The amounts covered into the 
     Fund shall be available to the Secretary, without further 
     appropriation and without fiscal year limitation, to--
       ``(A) pay necessary support, pursuant to subsection 
     (c)(1)(A) of this section; and
       ``(B) reimburse a shipowner for necessary support, pursuant 
     to subsection (c)(1)(B) of this section.
       ``(3) Amounts credited to fund.--Notwithstanding any other 
     provision of law, the Fund may receive--
       ``(A) any moneys ordered to be paid to the Fund in the form 
     of community service pursuant to section 3563(b) of title 18;
       ``(B) amounts reimbursed or recovered pursuant to 
     subsection (d) of this section;
       ``(C) amounts appropriated to the Fund pursuant to 
     subsection (g) of this section; and
       ``(D) appropriations available to the Secretary for 
     transfer.
       ``(4) Prerequisite for community service credits.--The Fund 
     may receive credits pursuant to paragraph (3)(A) of this 
     subsection only when the unobligated balance of the Fund is 
     less than $5,000,000.
       ``(5) Report required.--
       ``(A) Except as provided in subparagraph (B) of this 
     paragraph, the Secretary shall not obligate any amount in the 
     Fund in a given fiscal year unless the Secretary has 
     submitted to Congress, concurrent with the President's budget 
     submission for that fiscal year, a report that describes--
       ``(i) the amounts credited to the Fund, pursuant to 
     paragraph (3) of this subsection, for the preceding fiscal 
     year;
       ``(ii) a detailed description of the activities for which 
     amounts were charged; and
       ``(iii) the projected level of expenditures from the Fund 
     for the coming fiscal year, based on--

       ``(I) on-going activities; and
       ``(II) new cases, derived from historic data.

       ``(B) The limitation in subparagraph (A) of this paragraph 
     shall not apply to obligations during the first fiscal year 
     during which amounts are credited to the Fund.
       ``(6) Fund manager.--The Secretary shall designate a Fund 
     manager, who shall--
       ``(A) ensure the visibility and accountability of 
     transactions utilizing the Fund;
       ``(B) prepare the report required by paragraph (5); and
       ``(C) monitor the unobligated balance of the Fund and 
     provide notice to the Secretary and the Attorney General 
     whenever the unobligated balance of the Fund is less than 
     $5,000,000.
       ``(c) In General.--
       ``(1) Authority.--The Secretary is authorized--
       ``(A) to pay, in whole or in part, without further 
     appropriation and without fiscal year limitation, from 
     amounts in the Fund, necessary support of--
       ``(i) any seafarer who enters, remains, or has been paroled 
     into the United States and is involved in an investigation, 
     reporting, documentation, or adjudication of any matter that 
     is related to the administration or enforcement of any 
     treaty, law, or regulation by the Coast Guard; and
       ``(ii) any seafarer whom the Secretary finds to have been 
     abandoned in the United States; and
       ``(B) to reimburse, in whole or in part, without further 
     appropriation and without fiscal year limitation, from 
     amounts in the Fund, a shipowner, who has filed a bond or 
     surety satisfactory pursuant to subparagraph (A) and provided 
     necessary support of a seafarer who has been paroled into the 
     United States to facilitate an investigation, reporting, 
     documentation, or adjudication of any matter that is related 
     to the administration or enforcement of any treaty, law, or 
     regulation by the Coast Guard, for costs of necessary 
     support, when the Secretary deems reimbursement necessary to 
     avoid serious injustice.
       ``(2) Limitation.--Nothing in this section shall be 
     construed--
       ``(A) to create a right, benefit, or entitlement to 
     necessary support; or
       ``(B) to compel the Secretary to pay, or reimburse the cost 
     of, necessary support.
       ``(d) Reimbursements; Recovery.--
       ``(1) In general.--Any shipowner shall reimburse the Fund 
     an amount equal to the total amount paid from the Fund for 
     necessary support of the seafarer, plus a surcharge of 25 
     percent of such total amount if--
       ``(A)(i) the shipowner, during the course of an 
     investigation, reporting, documentation, or adjudication of 
     any matter that the Coast Guard referred to a United States 
     Attorney or the Attorney General, fails to provide necessary 
     support of a seafarer who has been paroled into the United 
     States to facilitate the investigation, reporting, 
     documentation, or adjudication; and
       ``(ii) a criminal penalty is subsequently imposed against 
     the shipowner; or
       ``(B) the shipowner, under any circumstance, abandons a 
     seafarer in the United States, as decided by the Secretary.
       ``(2) Enforcement.--If a shipowner fails to reimburse the 
     Fund as required under paragraph (1) of this subsection, the 
     Secretary may--
       ``(A) proceed in rem against any vessel of the shipowner in 
     the Federal district court for the district in which such 
     vessel is found; and
       ``(B) withhold or revoke the clearance, required by section 
     60105 of this title, of any vessel of the shipowner wherever 
     such vessel is found.
       ``(3) Whenever clearance is withheld or revoked pursuant to 
     paragraph (2)(B) of this subsection, clearance may be granted 
     if the shipowner reimburses the Fund the amount required 
     under paragraph (1) of this subsection.
       ``(e) Surety; Enforcement of Treaties, Laws, and 
     Regulations.--
       ``(1) Bond and surety authority.--The Secretary is 
     authorized to require a bond or surety satisfactory as an 
     alternative to withholding or revoking clearance required 
     under section 60105 of this title if, in the opinion of the 
     Secretary, such bond or surety satisfactory is necessary to 
     facilitate an investigation, reporting, documentation, or 
     adjudication of any matter that is related to the 
     administration or enforcement of any treaty, law, or 
     regulation by the Coast Guard if the surety corporation 
     providing the bond is authorized by the Secretary of the 
     Treasury under section 9305 of title 31 to provide surety 
     bonds under section 9304 of that title.
       ``(2) Application.--The authority to require a bond or a 
     surety satisfactory or to request the withholding or 
     revocation of the clearance required under section 60105 of 
     this title applies to any investigation, reporting, 
     documentation, or adjudication of any matter that is related 
     to the administration or enforcement of any treaty, law, or 
     regulation by the Coast Guard.
       ``(f) Definitions.--In this section:
       ``(1) Abandons; abandoned.--The term `abandons' or 
     `abandoned' means a shipowner's unilateral severance of ties 
     with a seafarer or the shipowner's failure to provide 
     necessary support of a seafarer.
       ``(2) Bond or surety satisfactory.--The term `bond or 
     surety satisfactory' means a negotiated instrument, the terms 
     of which may, at the discretion of the Secretary, include 
     provisions that require the shipowner to--
       ``(A) provide necessary support of a seafarer who has or 
     may have information pertinent to an investigation, 
     reporting, documentation, or adjudication of any matter that 
     is related to the administration or enforcement of any 
     treaty, law, or regulation by the Secretary;
       ``(B) facilitate an investigation, reporting, 
     documentation, or adjudication of any matter that is related 
     to the administration or enforcement of any treaty, law, or 
     regulation by the Secretary;
       ``(C) stipulate to certain incontrovertible facts, 
     including, but not limited to, the ownership or operation of 
     the vessel, or the authenticity of documents and things from 
     the vessel;
       ``(D) facilitate service of correspondence and legal 
     papers;
       ``(E) enter an appearance in United States district court;
       ``(F) comply with directions regarding payment of funds;
       ``(G) name an agent in the United States for service of 
     process;
       ``(H) make stipulations as to the authenticity of certain 
     documents in United States district court;
       ``(I) provide assurances that no discriminatory or 
     retaliatory measures will be taken against a seafarer 
     involved in an investigation, reporting, documentation, or 
     adjudication of any matter that is related to the 
     administration or enforcement of any treaty, law, or 
     regulation by the Secretary;
       ``(J) provide financial security in the form of cash, bond, 
     or other means acceptable to the Secretary; and
       ``(K) provide for any other appropriate measures as the 
     Secretary considers necessary to ensure the Government is not 
     prejudiced by granting the clearance required by section 
     60105 of title 46.
       ``(3) Fund.--The term `Fund' means the Support of Seafarers 
     Fund, established pursuant to this section.
       ``(4) Necessary support.--The term `necessary support' 
     means normal wages, lodging, subsistence, clothing, medical 
     care (including hospitalization), repatriation, and any other 
     expense the Secretary deems appropriate.

[[Page 7624]]

       ``(5) Seafarer.--The term `seafarer' means an alien crewman 
     who is employed or engaged in any capacity on board a vessel 
     subject to the jurisdiction of the United States.
       ``(6) Shipowner.--The term `shipowner' means the individual 
     or entity that owns, has an ownership interest in, or 
     operates a vessel subject to the jurisdiction of the United 
     States.
       ``(7) Vessel subject to the jurisdiction of the united 
     states.--The term `vessel subject to the jurisdiction of the 
     United States' has the same meaning it has in section 
     70502(c) of this title, except that it excludes a vessel 
     owned or bareboat chartered and operated by the United 
     States, by a State or political subdivision thereof, or by a 
     foreign nation, except when that vessel is engaged in 
     commerce.
       ``(g) Regulations.--The Secretary may prescribe regulations 
     to implement this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Fund $1,500,000 for each 
     of fiscal years 2010, 2011, and 2012.''.
       (b) Clerical Amendment.--The chapter analysis for chapter 
     111 of title 46, United States Code, is amended by adding at 
     the end the following new item:

``11113. Protection and fair treatment of seafarers''.

                      TITLE V--ACQUISITION REFORM

     SEC. 501. CHIEF ACQUISITION OFFICER.

       (a) In General.--Chapter 3 of title 14, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 55. Chief Acquisition Officer

       ``(a) In General.--There shall be in the Coast Guard a 
     Chief Acquisition Officer selected by the Commandant who 
     shall be a Rear Admiral or civilian from the Senior Executive 
     Service (career reserved). The Chief Acquisition Officer 
     shall serve at the Assistant Commandant level and have 
     acquisition management as that individual's primary duty.
       ``(b) Qualifications.--The Chief Acquisition Officer shall 
     be an acquisition professional with a Level III certification 
     and must have at least 10 years experience in an acquisition 
     position, of which at least 4 years were spent as--
       ``(1) the program executive officer;
       ``(2) the program manager of a Level 1 or Level 2 
     acquisition project or program;
       ``(3) the deputy program manager of a Level 1 or Level 2 
     acquisition; or
       ``(4) a combination of such positions.
       ``(c) Functions of the Chief Acquisition Officer.--The 
     functions of the Chief Acquisition Officer include--
       ``(1) monitoring the performance of programs and projects 
     on the basis of applicable performance measurements and 
     advising the Commandant, through the chain of command, 
     regarding the appropriate business strategy to achieve the 
     missions of the Coast Guard;
       ``(2) maximizing the use of full and open competition at 
     the prime contract and subcontract levels in the acquisition 
     of property, capabilities, and services by the Coast Guard by 
     establishing policies, procedures, and practices that ensure 
     that the Coast Guard receives a sufficient number of 
     competitive proposals from responsible sources to fulfill the 
     Government's requirements, including performance and delivery 
     schedules, at the lowest cost or best value considering the 
     nature of the property or service procured;
       ``(3) making acquisition decisions in concurrence with the 
     technical authority, or technical authorities, as 
     appropriate, of the Coast Guard, as designated by the 
     Commandant, consistent with all other applicable laws and 
     decisions establishing procedures within the Coast Guard;
       ``(4) ensuring the use of detailed performance 
     specifications in instances in which performance based 
     contracting is used;
       ``(5) managing the direction of acquisition policy for the 
     Coast Guard, including implementation of the unique 
     acquisition policies, regulations, and standards of the Coast 
     Guard;
       ``(6) developing and maintaining an acquisition career 
     management program in the Coast Guard to ensure that there is 
     an adequate acquisition workforce;
       ``(7) assessing the requirements established for Coast 
     Guard personnel regarding knowledge and skill in acquisition 
     resources and management and the adequacy of such 
     requirements for facilitating the achievement of the 
     performance goals established for acquisition management;
       ``(8) developing strategies and specific plans for hiring, 
     training, and professional development; and
       ``(9) reporting to the Commandant, through the chain of 
     command, on the progress made in improving acquisition 
     management capability.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     3 of title 14, United States Code, is amended by adding at 
     the end the following:

``55. Chief Acquisition Officer''.

       (c) Selection Deadline.--As soon as practicable after the 
     date of enactment of this Act, but no later than October 1, 
     2011, the Commandant of the Coast Guard shall select a Chief 
     Acquisition Officer under section 55 of title 14, United 
     States Code.

     SEC. 502. ACQUISITIONS.

       (a) In General.--Part I of title 14, United States Code, is 
     amended by inserting after chapter 13 the following:

                       ``CHAPTER 15. ACQUISITIONS

                   ``Subchapter 1--General Provisions

``Sec.
``561. Acquisition directorate
``562. Senior acquisition leadership team
``563. Improvements in Coast Guard acquisition management
``564. Recognition of Coast Guard personnel for excellence in 
              acquisition
``565. Prohibition on use of lead systems integrators
``566. Required contract terms
``567. Department of Defense consultation
``568. Undefinitized contractual actions

      ``Subchapter 2--Improved Acquisition Process and Procedures

``Sec.
``571. Identification of major system acquisitions
``572. Acquisition
``573. Preliminary development and demonstration
``574. Acquisition, production, deployment, and support
``575. Acquisition program baseline breach

                      ``Subchapter 3--Definitions

``Sec.
``581. Definitions

                   ``Subchapter 1--General Provisions

     ``561. Acquisition directorate

       ``(a) Establishment.--The Commandant of the Coast Guard 
     shall establish an acquisition directorate to provide 
     guidance and oversight for the implementation and management 
     of all Coast Guard acquisition processes, programs, and 
     projects.
       ``(b) Mission.--The mission of the acquisition directorate 
     is--
       ``(1) to acquire and deliver assets and systems that 
     increase operational readiness, enhance mission performance, 
     and create a safe working environment; and
       ``(2) to assist in the development of a workforce that is 
     trained and qualified to further the Coast Guard's missions 
     and deliver the best value products and services to the 
     Nation.

     ``562. Senior acquisition leadership team

       ``(a) Establishment.--The Commandant shall establish a 
     senior acquisition leadership team within the Coast Guard 
     comprised of--
       ``(1) the Vice Commandant;
       ``(2) the Deputy and Assistant Commandants;
       ``(3) appropriate senior staff members of each Coast Guard 
     directorate;
       ``(4) appropriate senior staff members for each assigned 
     field activity or command; and
       ``(5) any other Coast Guard officer or employee designated 
     by the Commandant.
       ``(b) Function.--The senior acquisition leadership team 
     shall--
       ``(1) meet at the call of the Commandant at such places and 
     such times as the Commandant may require;
       ``(2) provide advice and information on operational and 
     performance requirements of the Coast Guard;
       ``(3) identify gaps and vulnerabilities in the operational 
     readiness of the Coast Guard;
       ``(4) make recommendations to the Commandant and the Chief 
     Acquisition Officer to remedy the identified gaps and 
     vulnerabilities in the operational readiness of the Coast 
     Guard; and
       ``(5) contribute to the development of a professional, 
     experienced acquisition workforce by providing acquisition-
     experience tours of duty and educational development for 
     officers and employees of the Coast Guard.

     ``563. Improvements in Coast Guard acquisition management

       ``(a) Project and Program Managers.--
       ``(1) Project or program manager defined.--In this section, 
     the term `project or program manager' means an individual 
     designated--
       ``(A) to develop, produce, and deploy a new asset to meet 
     identified operational requirements; and
       ``(B) to manage cost, schedule, and performance of the 
     acquisition or project or program.
       ``(2) Level 1 projects.-- An individual may not be assigned 
     as the project or program manager for a Level 1 acquisition 
     unless the individual holds a Level III acquisition 
     certification as a program manager.
       ``(3) Level 2 projects.--An individual may not be assigned 
     as the project or program manager for a Level 2 acquisition 
     unless the individual holds a Level II acquisition 
     certification as a program manager.
       ``(b) Guidance on Tenure and Accountability of Program and 
     Project Managers.--Not later than one year after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     years 2010 and 2011, the Commandant shall issue guidance to 
     address the qualifications, resources, responsibilities, 
     tenure, and accountability of program and project managers 
     for the management of acquisition programs and projects. The 
     guidance shall address, at a minimum--
       ``(1) the qualifications required for project or program 
     managers, including the number of years of acquisition 
     experience and the

[[Page 7625]]

     professional training levels to be required of those 
     appointed to project or program management positions; and
       ``(2) authorities available to project or program managers, 
     including, to the extent appropriate, the authority to object 
     to the addition of new program requirements that would be 
     inconsistent with the parameters established for an 
     acquisition program.
       ``(c) Acquisition Workforce.--
       ``(1) In general.--The Commandant shall designate a 
     sufficient number of positions to be in the Coast Guard's 
     acquisition workforce to perform acquisition-related 
     functions at Coast Guard headquarters and field activities.
       ``(2) Required positions.--The Commandant shall ensure that 
     members of the acquisition workforce have expertise, 
     education, and training in at least 1 of the following 
     acquisition career fields:
       ``(A) Acquisition logistics.
       ``(B) Auditing.
       ``(C) Business, cost estimating, and financial management.
       ``(D) Contracting.
       ``(E) Facilities engineering.
       ``(F) Industrial or contract property management.
       ``(G) Information technology.
       ``(H) Manufacturing, production, and quality assurance.
       ``(I) Program management.
       ``(J) Purchasing.
       ``(K) Science and technology.
       ``(L) Systems planning, research, development, and 
     engineering.
       ``(M) Test and evaluation.
       ``(3) Acquisition workforce expedited hiring authority.--
       ``(A) In general.--For purposes of sections 3304, 5333, and 
     5753 of title 5, the Commandant may--
       ``(i) designate any category of acquisition positions 
     within the Coast Guard as shortage category positions; and
       ``(ii) use the authorities in such sections to recruit and 
     appoint highly qualified person directly to positions so 
     designated.
       ``(B) Limitation.--The Commandant may not appoint a person 
     to a position of employment under this paragraph after 
     September 30, 2012.
       ``(d) Management Information System.--
       ``(1) In general.--The Commandant shall establish a 
     management information system capability to improve 
     acquisition workforce management and reporting.
       ``(2) Information maintained.--Information maintained with 
     such capability shall include the following standardized 
     information on individuals assigned to positions in the 
     workforce:
       ``(A) Qualifications, assignment history, and tenure of 
     those individuals assigned to positions in the acquisition 
     workforce or holding acquisition-related certifications.
       ``(B) Promotion rates for officers and members of the Coast 
     Guard in the acquisition workforce.
       ``(e) Career Paths.--To establish acquisition management as 
     a core competency of the Coast Guard, the Commandant shall--
       ``(1) ensure that career paths for officers, members, and 
     employees of the Coast Guard who wish to pursue careers in 
     acquisition are identified in terms of the education, 
     training, experience, and assignments necessary for career 
     progression of those officers, members, and employees to the 
     most senior positions in the acquisition workforce; and
       ``(2) publish information on such career paths.

     ``564. Recognition of Coast Guard personnel for excellence 
       in acquisition

       ``(a) In General.--Not later than 180 days after the date 
     of enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011, the Commandant shall commence 
     implementation of a program to recognize excellent 
     performance by individuals and teams comprised of officers, 
     members, and employees of the Coast Guard that contributed to 
     the long-term success of a Coast Guard acquisition project or 
     program.
       ``(b) Elements.--The program shall include--
       ``(1) specific award categories, criteria, and eligibility 
     and manners of recognition;
       ``(2) procedures for the nomination by personnel of the 
     Coast Guard of individuals and teams comprised of officers, 
     members, and employees of the Coast Guard for recognition 
     under the program; and
       ``(3) procedures for the evaluation of nominations for 
     recognition under the program by one or more panels of 
     individuals from the Government, academia, and the private 
     sector who have such expertise and are appointed in such 
     manner as the Commandant shall establish for the purposes of 
     this program.
       ``(c) Award of Cash Bonuses.--As part of the program 
     required by subsection (a), the Commandant, subject to the 
     availability of appropriations, may award to any civilian 
     employee recognized pursuant to the program a cash bonus to 
     the extent that the performance of such individual so 
     recognized warrants the award of such bonus.

     ``565. Prohibition on use of lead systems integrators

       ``(a) In General.--
       ``(1) Use of lead systems integrator.--Except as provided 
     in subsection (b), the Commandant may not use a private 
     sector entity as a lead systems integrator for an acquisition 
     contract awarded or delivery order or task order issued after 
     the date of enactment of the Coast Guard Authorization Act 
     for Fiscal Years 2010 and 2011.
       ``(2) Full and open competition.--The Commandant and any 
     lead systems integrator engaged by the Coast Guard, pursuant 
     to the exceptions described in subsection (b), shall use full 
     and open competition for any acquisition contract awarded 
     after the date of enactment of that Act, unless otherwise 
     excepted in accordance with the Competition in Contracting 
     Act of 1984 (41 U.S.C. 251 note), the amendments made by that 
     Act, and the Federal Acquisition Regulations.
       ``(3) No effect on small business act.--Nothing in this 
     subsection shall be construed to supersede or otherwise 
     affect the authorities provided by and under the Small 
     Business Act (15 U.S.C. 631 et seq.).
       ``(b) Exceptions.--
       ``(1) National distress and response system modernization 
     program; national security cutters 2 and 3.--Notwithstanding 
     subsection (a), the Commandant may use a private sector 
     entity as a lead systems integrator for the Coast Guard to 
     complete the National Distress and Response System 
     Modernization Program, the C4ISR projects directly related to 
     the Integrated Deepwater Program, and National Security 
     Cutters 2 and 3 if the Secretary of Homeland Security 
     certifies that--
       ``(A) the acquisition is in accordance with the Competition 
     in Contracting Act of 1984 (41 U.S.C. 251 note), the 
     amendments made by that Act, and the Federal Acquisition 
     Regulations; and
       ``(B) the acquisition and the use of a private sector 
     entity as a lead systems integrator for the acquisition is in 
     the best interest of the Federal Government.
       ``(2) Termination date for exceptions.--Except for the 
     modification of delivery or task orders pursuant to Parts 4 
     and 42 of the Federal Acquisition Regulations, the Commandant 
     may not use a private sector entity as a lead systems 
     integrator after the earlier of--
       ``(A) September 30, 2012; or
       ``(B) the date on which the Commandant certifies in writing 
     to the appropriate congressional committees that the Coast 
     Guard has available and can retain sufficient contracting 
     personnel and expertise within the Coast Guard, through an 
     arrangement with other Federal agencies, or through contracts 
     or other arrangements with private sector entities, to 
     perform the functions and responsibilities of the lead system 
     integrator in an efficient and cost-effective manner.

     ``566. Required contract terms

       ``(a) In General.--The Commandant shall ensure that a 
     contract awarded or a delivery order or task order issued for 
     an acquisition of a capability or an asset with an expected 
     service life of 10 years and with a total acquisition cost 
     that is equal to or exceeds $10,000,000 awarded or issued by 
     the Coast Guard after the date of enactment of the Coast 
     Guard Authorization Act for Fiscal Years 2010 and 2011--
       ``(1) provides that all certifications for an end-state 
     capability or asset under such contract, delivery order, or 
     task order, respectively, will be conducted by the Commandant 
     or an independent third party, and that self-certification by 
     a contractor or subcontractor is not allowed;
       ``(2) requires that the Commandant shall maintain the 
     authority to establish, approve, and maintain technical 
     requirements;
       ``(3) requires that any measurement of contractor and 
     subcontractor performance be based on the status of all work 
     performed, including the extent to which the work performed 
     met all performance, cost, and schedule requirements;
       ``(4) specifies that, for the acquisition or upgrade of 
     air, surface, or shore capabilities and assets for which 
     compliance with TEMPEST certification is a requirement, the 
     standard for determining such compliance will be the air, 
     surface, or shore standard then used by the Department of the 
     Navy for that type of capability or asset; and
       ``(5) for any contract awarded to acquire an Offshore 
     Patrol Cutter, includes provisions specifying the service 
     life, fatigue life, and days underway in general Atlantic and 
     North Pacific Sea conditions, maximum range, and maximum 
     speed the cutter will be built to achieve.
       ``(b) Prohibited Contract Provisions.--The Commandant shall 
     ensure that any contract awarded or delivery order or task 
     order issued by the Coast Guard after the date of enactment 
     of the Coast Guard Authorization Act for Fiscal Years 2010 
     and 2011 does not include any provision allowing for 
     equitable adjustment that is not consistent with the Federal 
     Acquisition Regulations.
       ``(c) Integrated Product Teams.--Integrated product teams, 
     and all teams that oversee integrated product teams, shall be 
     chaired by officers, members, or employees of the Coast 
     Guard.
       ``(d) Deepwater Technical Authorities.--The Commandant 
     shall maintain or designate the technical authorities to 
     establish, approve, and maintain technical requirements. Any 
     such designation shall be made in writing and may not be 
     delegated to the authority of the Chief Acquisition Officer 
     established by section 55 of this title.

[[Page 7626]]



     ``567. Department of Defense consultation

       ``(a) In General.--The Commandant shall make arrangements 
     as appropriate with the Secretary of Defense for support in 
     contracting and management of Coast Guard acquisition 
     programs. The Commandant shall also seek opportunities to 
     make use of Department of Defense contracts, and contracts of 
     other appropriate agencies, to obtain the best possible price 
     for assets acquired for the Coast Guard.
       ``(b) Inter-service Technical Assistance.--The Commandant 
     shall seek to enter into a memorandum of understanding or a 
     memorandum of agreement with the Secretary of the Navy to 
     obtain the assistance of the Office of the Assistant 
     Secretary of the Navy for Research, Development, and 
     Acquisition, including the Navy Systems Command, with the 
     oversight of Coast Guard major acquisition programs. The 
     memorandum of understanding or memorandum of agreement shall, 
     at a minimum, provide for--
       ``(1) the exchange of technical assistance and support that 
     the Assistant Commandants for Acquisition, Human Resources, 
     Engineering, and Information technology may identify;
       ``(2) the use, as appropriate, of Navy technical expertise; 
     and
       ``(3) the exchange of personnel between the Coast Guard and 
     the Office of the Assistant Secretary of the Navy for 
     Research, Development, and Acquisition, including Naval 
     Systems Commands, to facilitate the development of organic 
     capabilities in the Coast Guard.
       ``(c) Technical Requirement Approval Procedures.--The Chief 
     Acquisition Officer shall adopt, to the extent practicable, 
     procedures modeled after those used by the Navy Senior 
     Acquisition Official to approve all technical requirements.

     ``568. Undefinitized contractual actions

       ``(a) In General.--The Coast Guard may not enter into an 
     undefinitized contractual action unless such action is 
     directly approved by the Head of Contracting Activity of the 
     Coast Guard.
       ``(b) Requests for Undefinitized Contractual Actions.--Any 
     request to the Head of Contracting Activity for approval of 
     an undefinitized contractual action shall include a 
     description of the anticipated effect on requirements of the 
     Coast Guard if a delay is incurred for the purposes of 
     determining contractual terms, specifications, and price 
     before performance is begun under the contractual action.
       ``(c) Requirements for Undefinitized Contractual Actions.--
       ``(1) Deadline for agreement on terms, specifications, and 
     price.--A contracting officer of the Coast Guard may not 
     enter into an undefinitized contractual action unless the 
     contractual action provides for agreement upon contractual 
     terms, specification, and price by the earlier of--
       ``(A) the end of the 180-day period beginning on the date 
     on which the contractor submits a qualifying proposal to 
     definitize the contractual terms, specifications, and price; 
     or
       ``(B) the date on which the amount of funds obligated under 
     the contractual action is equal to more than 50 percent of 
     the negotiated overall ceiling price for the contractual 
     action.
       ``(2) Limitation on obligations.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the contracting officer for an undefinitized contractual 
     action may not obligate under such contractual action an 
     amount that exceeds 50 percent of the negotiated overall 
     ceiling price until the contractual terms, specifications, 
     and price are definitized for such contractual action.
       ``(B) Exception.--Notwithstanding subparagraph (A), if a 
     contractor submits a qualifying proposal to definitize an 
     undefinitized contractual action before an amount that 
     exceeds 50 percent of the negotiated overall ceiling price is 
     obligated on such action, the contracting officer for such 
     action may not obligate with respect to such contractual 
     action an amount that exceeds 75 percent of the negotiated 
     overall ceiling price until the contractual terms, 
     specifications, and price are definitized for such 
     contractual action.
       ``(3) Waiver.--The Commandant may waive the application of 
     this subsection with respect to a contract if the Commandant 
     determines that the waiver is necessary to support--
       ``(A) a contingency operation (as that term is defined in 
     section 101(a)(13) of title 10);
       ``(B) operations to prevent or respond to a transportation 
     security incident (as defined in section 70101(6) of title 
     46);
       ``(C) an operation in response to an emergency that poses 
     an unacceptable threat to human health or safety or to the 
     marine environment; or
       ``(D) an operation in response to a natural disaster or 
     major disaster or emergency designated by the President under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       ``(4) Limitation on application.--This subsection does not 
     apply to an undefinitized contractual action for the purchase 
     of initial spares.
       ``(d) Inclusion of Nonurgent Requirements.--Requirements 
     for spare parts and support equipment that are not needed on 
     an urgent basis may not be included in an undefinitized 
     contractual action by the Coast Guard for spare parts and 
     support equipment that are needed on an urgent basis unless 
     the Commandant approves such inclusion as being--
       ``(1) good business practice; and
       ``(2) in the best interests of the United States.
       ``(e) Modification of Scope.--The scope of an undefinitized 
     contractual action under which performance has begun may not 
     be modified unless the Commandant approves such modification 
     as being--
       ``(1) good business practice; and
       ``(2) in the best interests of the United States.
       ``(f) Allowable Profit.--The Commandant shall ensure that 
     the profit allowed on an undefinitized contractual action for 
     which the final price is negotiated after a substantial 
     portion of the performance required is completed reflects--
       ``(1) the possible reduced cost risk of the contractor with 
     respect to costs incurred during performance of the contract 
     before the final price is negotiated; and
       ``(2) the reduced cost risk of the contractor with respect 
     to costs incurred during performance of the remaining portion 
     of the contract.
       ``(g) Definitions.--In this section:
       ``(1) Undefinitized contractual action.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `undefinitized contractual action' means a new 
     procurement action entered into by the Coast Guard for which 
     the contractual terms, specifications, or price are not 
     agreed upon before performance is begun under the action.
       ``(B) Exclusion.--The term `undefinitized contractual 
     action' does not include contractual actions with respect 
     to--
       ``(i) foreign military sales;
       ``(ii) purchases in an amount not in excess of the amount 
     of the simplified acquisition threshold; or
       ``(iii) special access programs.
       ``(2) Qualifying proposal.--The term `qualifying proposal' 
     means a proposal that contains sufficient information to 
     enable complete and meaningful audits of the information 
     contained in the proposal as determined by the contracting 
     officer.

      ``Subchapter 2--Improved Acquisition Process and Procedures

     ``571. Identification of major system acquisitions

       ``(a) In General.--
       ``(1) Support mechanisms.--The Commandant shall develop and 
     implement mechanisms to support the establishment of mature 
     and stable operational requirements for acquisitions under 
     this subchapter.
       ``(2) Mission analysis; affordability assessment.--The 
     Commandant may not initiate a Level 1 or Level 2 acquisition 
     project or program until the Commandant--
       ``(A) completes a mission analysis that--
       ``(i) identifies any gaps in capability; and
       ``(ii) develops a clear mission need; and
       ``(B) prepares a preliminary affordability assessment for 
     the project or program.
       ``(b) Elements.--
       ``(1) Requirements.--The mechanisms required by subsection 
     (a) shall ensure the implementation of a formal process for 
     the development of a mission-needs statement, concept-of-
     operations document, capability development plan, and 
     resource proposal for the initial project or program funding, 
     and shall ensure the project or program is included in the 
     Coast Guard Capital Investment Plan.
       ``(2) Assessment of trade-offs.--In conducting an 
     affordability assessment under subsection (a)(2)(B), the 
     Commandant shall develop and implement mechanisms to ensure 
     that trade-offs among cost, schedule, and performance are 
     considered in the establishment of preliminary operational 
     requirements for development and production of new assets and 
     capabilities for Level 1 and Level 2 acquisitions projects 
     and programs.
       ``(c) Human Resource Capital Planning.--The Commandant 
     shall develop staffing predictions, define human capital 
     performance initiatives, and identify preliminary training 
     needs for any such project or program.
       ``(d) DHS Acquisition Approval.--A Level 1 or Level 2 
     acquisition project or program may not be implemented unless 
     it is approved by the Department of Homeland Security 
     Acquisition Review Board or the Joint Review Board.

     ``572. Acquisition

       ``(a) In General.--The Commandant may not establish a Level 
     1 or Level 2 acquisition project or program approved under 
     section 571(d) until the Commandant--
       ``(1) clearly defines the operational requirements for the 
     project or program;
       ``(2) establishes the feasibility of alternatives;
       ``(3) develops an acquisition project or program baseline;
       ``(4) produces a life-cycle cost estimate; and
       ``(5) assesses the relative merits of alternatives to 
     determine a preferred solution in accordance with the 
     requirements of this section.
       ``(b) Analysis of Alternatives.--

[[Page 7627]]

       ``(1) In general.--The Commandant shall conduct an analysis 
     of alternatives for the asset or capability to be acquired in 
     an analyze and select phase of the acquisition process.
       ``(2) Requirements.--The analysis of alternatives shall be 
     conducted by a federally funded research and development 
     center, a qualified entity of the Department of Defense, or a 
     similar independent third party entity that has appropriate 
     acquisition expertise and has no substantial financial 
     interest in any part of the acquisition project or program 
     that is the subject of the analysis. At a minimum, the 
     analysis of alternatives shall include--
       ``(A) an assessment of the technical maturity, and 
     technical and other risks;
       ``(B) an examination of capability, interoperability, and 
     other disadvantages;
       ``(C) an evaluation of whether different combinations or 
     quantities of specific assets or capabilities could meet the 
     Coast Guard's overall performance needs;
       ``(D) a discussion of key assumptions and variables, and 
     sensitivity to change in such assumptions and variables;
       ``(E) when an alternative is an existing asset or 
     prototype, an evaluation of relevant safety and performance 
     records and costs;
       ``(F) a calculation of life-cycle costs including--
       ``(i) an examination of likely research and development 
     costs and the levels of uncertainty associated with such 
     estimated costs;
       ``(ii) an examination of likely production and deployment 
     costs and levels of uncertainty associated with such 
     estimated costs;
       ``(iii) an examination of likely operating and support 
     costs and the levels of uncertainty associated with such 
     estimated costs;
       ``(iv) if they are likely to be significant, an examination 
     of likely disposal costs and the levels of uncertainty 
     associated with such estimated costs; and
       ``(v) such additional measures as the Commandant or the 
     Secretary of Homeland Security determines to be necessary for 
     appropriate evaluation of the asset; and
       ``(G) the business case for each viable alternative.
       ``(c) Test and Evaluation Master Plan.--
       ``(1) In general.--For any Level 1 or Level 2 acquisition 
     project or program the Chief Acquisition Officer shall 
     approve a test and evaluation master plan specific to the 
     acquisition project or program for the capability, asset, or 
     subsystems of the capability or asset and intended to 
     minimize technical, cost, and schedule risk as early as 
     practicable in the development of the project or program.
       ``(2) Test and evaluation strategy.--The master plan 
     shall--
       ``(A) set forth an integrated test and evaluation strategy 
     that will verify that capability-level or asset-level and 
     subsystem-level design and development, including performance 
     and supportability, have been sufficiently proven before the 
     capability, asset, or subsystem of the capability or asset is 
     approved for production; and
       ``(B) require that adequate developmental tests and 
     evaluations and operational tests and evaluations established 
     under subparagraph (A) are performed to inform production 
     decisions.
       ``(3) Other components of the master plan.--At a minimum, 
     the master plan shall identify--
       ``(A) the key performance parameters to be resolved through 
     the integrated test and evaluation strategy;
       ``(B) critical operational issues to be assessed in 
     addition to the key performance parameters;
       ``(C) specific development test and evaluation phases and 
     the scope of each phase;
       ``(D) modeling and simulation activities to be performed, 
     if any, and the scope of such activities;
       ``(E) early operational assessments to be performed, if 
     any, and the scope of such assessments;
       ``(F) operational test and evaluation phases;
       ``(G) an estimate of the resources, including funds, that 
     will be required for all test, evaluation, assessment, 
     modeling, and simulation activities; and
       ``(H) the Government entity or independent entity that will 
     perform the test, evaluation, assessment, modeling, and 
     simulation activities.
       ``(4) Update.--The Chief Acquisition Officer shall approve 
     an updated master plan whenever there is a revision to 
     project or program test and evaluation strategy, scope, or 
     phasing.
       ``(5) Limitation.--The Coast Guard may not--
       ``(A) proceed beyond that phase of the acquisition process 
     that entails approving the supporting acquisition of a 
     capability or asset before the master plan is approved by the 
     Chief Acquisition Officer; or
       ``(B) award any production contract for a capability, 
     asset, or subsystem for which a master plan is required under 
     this subsection before the master plan is approved by the 
     Chief Acquisition Officer.
       ``(d) Life-Cycle Cost Estimates.--
       ``(1) In general.--The Commandant shall implement 
     mechanisms to ensure the development and regular updating of 
     life-cycle cost estimates for each Level 1 or Level 2 
     acquisition to ensure that these estimates are considered in 
     decisions to develop or produce new or enhanced capabilities 
     and assets.
       ``(2) Types of estimates.--In addition to life-cycle cost 
     estimates that may be developed by acquisition program 
     offices, the Commandant shall require that an independent 
     life-cycle cost estimate be developed for each Level 1 or 
     Level 2 acquisition project or program.
       ``(3) Required updates.--For each Level 1 or Level 2 
     acquisition project or program the Commandant shall require 
     that life-cycle cost estimates shall be updated before each 
     milestone decision is concluded and the project or program 
     enters a new acquisition phase.
       ``(e) DHS Acquisition Approval.--A project or program may 
     not enter the obtain phase under section 573 unless the 
     Department of Homeland Security Acquisition Review Board or 
     the Joint Review Board (or other entity to which such 
     responsibility is delegated by the Secretary of Homeland 
     Security) has approved the analysis of alternatives for the 
     project. The Joint Review Board may also approve the low 
     rates initial production quantity for the project or program 
     if such an initial production quantity is planned by the 
     acquisition project or program and deemed appropriate by the 
     Joint Review Board.

     ``573. Preliminary development and demonstration

       ``(a) In General.--The Commandant shall ensure that 
     developmental test and evaluation, operational test and 
     evaluation, life cycle cost estimates, and the development 
     and demonstration requirements are met to confirm that the 
     projects or programs meet the requirements described in the 
     mission-needs statement and the operational-requirements 
     document and the following development and demonstration 
     objectives:
       ``(1) To demonstrate that the most promising design, 
     manufacturing, and production solution is based upon a 
     stable, producible, and cost-effective product design.
       ``(2) To ensure that the product capabilities meet contract 
     specifications, acceptable operational performance 
     requirements, and system security requirements.
       ``(3) To ensure that the product design is mature enough to 
     commit to full production and deployment.
       ``(b) Tests and Evaluations.--
       ``(1) In general.--The Commandant shall ensure that the 
     Coast Guard conducts developmental tests and evaluations and 
     operational tests and evaluations of a capability or asset 
     and the subsystems of the capability or asset for which a 
     master plan has been prepared under section 572(c)(1).
       ``(2) Use of third parties.--The Commandant shall ensure 
     that the Coast Guard uses independent third parties with 
     expertise in testing and evaluating the capabilities or 
     assets and the subsystems of the capabilities or assets being 
     acquired to conduct developmental tests and evaluations and 
     operational tests and evaluations whenever the Coast Guard 
     lacks the capability to conduct the tests and evaluations 
     required by a master plan.
       ``(3) Communication of safety concerns.--The Commandant 
     shall require that safety concerns identified during 
     developmental or operational tests and evaluations or through 
     independent or Government-conducted design assessments of 
     capabilities or assets and subsystems of capabilities or 
     assets to be acquired by the Coast Guard shall be 
     communicated as soon as practicable, but not later than 30 
     days after the completion of the test or assessment event or 
     activity that identified the safety concern, to the program 
     manager for the capability or asset and the subsystems 
     concerned and to the Chief Acquisition Officer.
       ``(4) Asset already in low, initial, or full-rate 
     production.--If operational test and evaluation on a 
     capability or asset already in low, initial, or full-rate 
     production identifies a safety concern with the capability or 
     asset or any subsystems of the capability or asset not 
     previously identified during developmental or operational 
     test and evaluation, the Commandant shall--
       ``(A) notify the program manager and the Chief Acquisition 
     Officer of the safety concern as soon as practicable, but not 
     later than 30 days after the completion of the test and 
     evaluation event or activity that identified the safety 
     concern; and
       ``(B) notify the Chief Acquisition Officer and include in 
     such notification--
       ``(i) an explanation of the actions that will be taken to 
     correct or mitigate the safety concern in all capabilities or 
     assets and subsystems of the capabilities or assets yet to be 
     produced, and the date by which those actions will be taken;
       ``(ii) an explanation of the actions that will be taken to 
     correct or mitigate the safety concern in previously produced 
     capabilities or assets and subsystems of the capabilities or 
     assets, and the date by which those actions will be taken; 
     and
       ``(iii) an assessment of the adequacy of current funding to 
     correct or mitigate the safety concern in capabilities or 
     assets and subsystems of the capabilities or assets and in 
     previously produced capabilities or assets and subsystems.
       ``(c) Technical Certification.--

[[Page 7628]]

       ``(1) In general.--The Commandant shall ensure that any 
     Level 1 or Level 2 acquisition project or program is 
     certified by the technical authority of the Coast Guard after 
     review by an independent third party with capabilities in the 
     mission area, asset, or particular asset component.
       ``(2) TEMPEST testing.--The Commandant shall--
       ``(A) cause all electronics on all aircraft, surface, and 
     shore assets that require TEMPEST certification and that are 
     delivered after the date of enactment of the Coast Guard 
     Authorization Act for Fiscal Years 2010 and 2011 to be tested 
     in accordance with master plan standards and communications 
     security standards by an independent third party that is 
     authorized by the Federal Government to perform such testing; 
     and
       ``(B) certify that the assets meet all applicable TEMPEST 
     requirements.
       ``(3) Vessel classification.--The Commandant shall cause 
     each cutter, other than the National Security Cutter, 
     acquired by the Coast Guard and delivered after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011 is to be classed by the American Bureau 
     of Shipping before final acceptance.
       ``(d) Acquisition Decision.--The Commandant may not proceed 
     to full scale production, deployment, and support of a Level 
     1 or Level 2 acquisition project or program unless the 
     Department of Homeland Security Acquisition Review Board has 
     verified that the delivered asset or system meets the project 
     or program performance and cost goals.

     ``574. Acquisition, production, deployment, and support

       ``(a) In General.--The Commandant shall--
       ``(1) ensure there is a stable and efficient production and 
     support capability to develop an asset or system;
       ``(2) conduct follow on testing to confirm and monitor 
     performance and correct deficiencies; and
       ``(3) conduct acceptance tests and trails upon the delivery 
     of each asset or system to ensure the delivered asset or 
     system achieves full operational capability.
       ``(b) Elements.--The Commandant shall--
       ``(1) execute the productions contracts;
       ``(2) ensure the delivered products meet operational cost 
     and schedules requirements established in the acquisition 
     program baseline;
       ``(3) validate manpower and training requirements to meet 
     system needs to operate, maintain, support, and instruct the 
     system; and
       ``(4) prepare a project or program transition plan to enter 
     into programmatic sustainment, operations, and support.

     ``575. Acquisition program baseline breach

       ``(a) In General.--The Commandant shall submit a report to 
     the appropriate congressional committees as soon as possible, 
     but not later than 30 days, after the Chief Acquisition 
     Officer of the Coast Guard becomes aware of the breach of an 
     acquisition program baseline for any Level 1 or Level 2 
     acquisition program, by--
       ``(1) a likely cost overrun greater than 15 percent of the 
     acquisition program baseline for that individual capability 
     or asset or a class of capabilities or assets;
       ``(2) a likely delay of more than 180 days in the delivery 
     schedule for any individual capability or asset or class of 
     capabilities or assets; or
       ``(3) an anticipated failure for any individual capability 
     or asset or class of capabilities or assets to satisfy any 
     key performance threshold or parameter under the acquisition 
     program baseline.
       ``(b) Content.--The report submitted under subsection (a) 
     shall include--
       ``(1) a detailed description of the breach and an 
     explanation of its cause;
       ``(2) the projected impact to performance, cost, and 
     schedule;
       ``(3) an updated acquisition program baseline and the 
     complete history of changes to the original acquisition 
     program baseline;
       ``(4) the updated acquisition schedule and the complete 
     history of changes to the original schedule;
       ``(5) a full life-cycle cost analysis for the capability or 
     asset or class of capabilities or assets;
       ``(6) a remediation plan identifying corrective actions and 
     any resulting issues or risks; and
       ``(7) a description of how progress in the remediation plan 
     will be measured and monitored.
       ``(c) Substantial Variances in Costs or Schedule.--If a 
     likely cost overrun is greater than 25 percent or a likely 
     delay is greater than 12 months from the costs and schedule 
     described in the acquisition program baseline for any Level 1 
     or Level 2 acquisition project or program of the Coast Guard, 
     the Commandant shall include in the report a written 
     certification, with a supporting explanation, that--
       ``(1) the capability or asset or capability or asset class 
     to be acquired under the project or program is essential to 
     the accomplishment of Coast Guard missions;
       ``(2) there are no alternatives to such capability or asset 
     or capability or asset class which will provide equal or 
     greater capability in both a more cost-effective and timely 
     manner;
       ``(3) the new acquisition schedule and estimates for total 
     acquisition cost are reasonable; and
       ``(4) the management structure for the acquisition program 
     is adequate to manage and control performance, cost, and 
     schedule.

                      ``Subchapter 3--Definitions

     ``581. Definitions

       ``In this chapter:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means the House of 
     Representatives Committee on Transportation and 
     Infrastructure and the Senate Committee on Commerce, Science, 
     and Transportation.
       ``(2) Chief acquisition officer.--The term `Chief 
     Acquisition Officer' means the officer appointed under 
     section 55 of this title.
       ``(3) Commandant.--The term `Commandant' means the 
     Commandant of the Coast Guard.
       ``(4) Joint review board.--The term `Joint Review Board' 
     means the Department of Homeland Security's Investment Review 
     Board, Joint Requirements Council, or other entity within the 
     Department designated by the Secretary as the Joint Review 
     Board for purposes of this chapter.
       ``(5) Level 1 acquisition.--The term `Level 1 acquisition' 
     means--
       ``(A) an acquisition by the Coast Guard--
       ``(i) the estimated life-cycle costs of which exceed 
     $1,000,000,000; or
       ``(ii) the estimated total acquisition costs of which 
     exceed $300,000,000; or
       ``(B) any acquisition that the Chief Acquisition Officer of 
     the Coast Guard determines to have a special interest--
       ``(i) due to--

       ``(I) the experimental or technically immature nature of 
     the asset;
       ``(II) the technological complexity of the asset;
       ``(III) the commitment of resources; or
       ``(IV) the nature of the capability or set of capabilities 
     to be achieved; or

       ``(ii) because such acquisition is a joint acquisition.
       ``(6) Level 2 acquisition.--The term `Level 2 acquisition' 
     means an acquisition by the Coast Guard--
       ``(A) the estimated life-cycle costs of which are equal to 
     or less than $1,000,000,000, but greater than $300,000,000; 
     or
       ``(B) the estimated total acquisition costs of which are 
     equal to or less than $300,000,0000, but greater than 
     $100,000,000.
       ``(7) Life-cycle cost.--The term `life-cycle cost' means 
     all costs for development, procurement, construction, and 
     operations and support for a particular capability or asset, 
     without regard to funding source or management control.
       ``(8) Safety concern.--The term `safety concern' means any 
     hazard associated with a capability or asset or a subsystem 
     of a capability or asset that is likely to cause serious 
     bodily injury or death to a typical Coast Guard user in 
     testing, maintaining, repairing, or operating the capability, 
     asset, or subsystem or any hazard associated with the 
     capability, asset, or subsystem that is likely to cause major 
     damage to the capability, asset, or subsystem during the 
     course of its normal operation by a typical Coast Guard 
     user.''.
       (b) Conforming Amendment.--The part analysis for part I of 
     title 14, United States Code, is amended by inserting after 
     the item relating to chapter 13 the following:

    ``15. Acquisitions...........................................561''.

     SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS-THROUGH CHARGES.

       (a) Comptroller General Report.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General shall issue a 
     report on pass-through charges on contracts, subcontracts, 
     delivery orders, and task orders that were executed by a lead 
     systems integrator under contract to the Coast Guard during 
     the 3 full calendar years preceding the date of enactment of 
     this Act.
       (2) Matters covered.--The report under this subsection--
       (A) shall assess the extent to which the Coast Guard paid 
     excessive pass-through charges to contractors or 
     subcontractors that provided little or no value to the 
     performance of a contract or the production of a procured 
     asset; and
       (B) shall assess the extent to which the Coast Guard has 
     been particularly vulnerable to excessive pass-through 
     charges on any specific category of contracts or by any 
     specific category of contractors.
       (b) Guidance Required.--
        (1) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Commandant shall prescribe 
     guidance to ensure that pass-through charges on contracts, 
     subcontracts, delivery orders, and task orders that are 
     executed with a private entity acting as a lead systems 
     integrator by or on behalf of the Coast Guard are not 
     excessive in relation to the cost of work performed by the 
     relevant contractor or subcontractor. The guidance shall, at 
     a minimum--
       (A) set forth clear standards for determining when no, or 
     negligible, value has been added to a contract by a 
     contractor or subcontractor;
       (B) set forth procedures for preventing the payment by the 
     Government of excessive pass-through charges; and

[[Page 7629]]

       (C) identify any exceptions determined by the Commandant to 
     be in the best interest of the Government.
       (2) Scope of guidance.--The guidance prescribed under this 
     subsection--
       (A) shall not apply to any firm, fixed-price contract or 
     subcontract, delivery order, or task order that is--
       (i) awarded on the basis of adequate price competition, as 
     determined by the Commandant; or
       (ii) for the acquisition of a commercial item, as defined 
     in section 4(12) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403(12)); and
       (B) may include such additional exceptions as the 
     Commandant determines to be necessary in the interest of the 
     United States.
       (c) Excessive Pass-Through Charge Defined.--In this section 
     the term ``excessive pass-through charge'', with respect to a 
     contractor or subcontractor that adds no, or negligible, 
     value to a contract or subcontract, means a charge to the 
     Government by the contractor or subcontractor that is for 
     overhead or profit on work performed by a lower-tier 
     contractor or subcontractor, other than reasonable charges 
     for the direct costs of managing lower-tier contractors and 
     subcontracts and overhead and profit based on such direct 
     costs.
       (d) Application of Guidance.--The guidance prescribed under 
     this section shall apply to contracts awarded to a private 
     entity acting as a lead systems integrator by or on behalf of 
     the Coast Guard on or after the date that is 360 days after 
     the date of enactment of this Act.

                   TITLE VI--SHIPPING AND NAVIGATION

     SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF TITLE 46, 
                   UNITED STATES CODE.

       (a) In General.--Chapter 313 of title 46, United States 
     Code, is amended--
       (1) by striking ``of Transportation'' in sections 31302, 
     31306, 31321, 31330, and 31343 each place it appears;
       (2) by striking ``and'' after the semicolon in section 
     31301(5)(F);
       (3) by striking ``office.'' in section 31301(6) and 
     inserting ``office; and''; and
       (4) by adding at the end of section 31301 the following:
       ``(7) `Secretary' means the Secretary of the Department of 
     Homeland Security, unless otherwise noted.''.
       (b) Secretary as Mortgagee.--Section 31308 of such title is 
     amended by striking ``When the Secretary of Commerce or 
     Transportation is a mortgagee under this chapter, the 
     Secretary'' and inserting ``The Secretary of Commerce or 
     Transportation, as a mortgagee under this chapter,''.
       (c) Secretary of Transportation.--Section 31329(d) of such 
     title is amended by striking ``Secretary.'' and inserting 
     ``Secretary of Transportation.''.
       (d) Mortgagee.--
       (1) Section 31330(a)(1) of such title, as amended by 
     subsection (a)(1) of this section, is amended--
       (A) by inserting ``or'' after the semicolon in subparagraph 
     (B);
       (B) by striking ``Secretary; or'' in subparagraph (C) and 
     inserting ``Secretary.''; and
       (C) by striking subparagraph (D).
       (2) Section 31330(a)(2) is amended--
       (A) by inserting ``or'' after the semicolon in subparagraph 
     (B);
       (B) by striking ``faith; or'' in subparagraph (C) and 
     inserting ``faith.''; and
       (C) by striking subparagraph (D).

     SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 70122. Regulations

       ``Unless otherwise provided, the Secretary may issue 
     regulations necessary to implement this chapter.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     701 of such title is amended by adding at the end the 
     following new item:

``70122. Regulations''.

     SEC. 603. ICEBREAKERS.

       (a) Analyses.--Not later than 90 days after the date of 
     enactment of this Act or the date of completion of the 
     ongoing High Latitude Study to assess polar ice-breaking 
     mission requirements, whichever occurs later, the Commandant 
     of the Coast Guard shall require a nongovernmental, 
     independent third party (other than the National Academy of 
     Sciences) which has extensive experience in the analysis of 
     military procurements to--
       (1) conduct a comparative cost-benefit analysis, taking 
     into account future Coast Guard budget projections (which 
     assume Coast Guard budget growth of no more than inflation) 
     and other recapitalization needs, of--
       (A) rebuilding, renovating, or improving the existing fleet 
     of polar icebreakers for operation by the Coast Guard,
       (B) constructing new polar icebreakers for operation by the 
     Coast Guard,
       (C) construction of new polar icebreakers by the National 
     Science Foundation for operation by the Foundation,
       (D) rebuilding, renovating, or improving the existing fleet 
     of polar icebreakers by the National Science Foundation for 
     operation by the Foundation, and
       (E) any combination of the activities described in 
     subparagraph (A), (B), (C), or (D) to carry out the missions 
     of the Coast Guard and the National Science Foundation;
       (2) conduct an analysis of the impact on mission capacity 
     and the ability of the United States to maintain a presence 
     in the polar regions through the year 2020 if 
     recapitalization of the polar icebreaker fleet, either by 
     constructing new polar icebreakers or rebuilding, renovating, 
     or improving the existing fleet of polar icebreakers, is not 
     fully funded; and
       (3) conduct a comprehensive analysis of the impact on all 
     Coast Guard activities, including operations, maintenance, 
     procurements, and end strength, of the acquisition of polar 
     icebreakers described in paragraph (1) by the Coast Guard or 
     the National Science Foundation assuming that total Coast 
     Guard funding will not increase more than the annual rate of 
     inflation.
       (b) Reports to Congress.--
       (1) Not later than one year and 90 days after the date of 
     enactment of this Act or the date of completion of the 
     ongoing High Latitude Study to assess polar ice-breaking 
     mission requirements, whichever occurs later, the Commandant 
     of the Coast Guard shall submit a report containing the 
     results of the study, together with recommendations the 
     Commandant deems appropriate under section 93(a)(24) of title 
     14, United States Code, to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.
       (2) Not later than 1 year after the date of enactment of 
     this Act, the Commandant shall submit reports containing the 
     results of the analyses required under paragraphs (1) and (2) 
     of subsection (a), together with recommendations the 
     Commandant deems appropriate under section 93(a)(24) of title 
     14, United States Code, to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.

     SEC. 604. PHASEOUT OF VESSELS SUPPORTING OIL AND GAS 
                   DEVELOPMENT.

       Section 705 of the Security and Accountability for Every 
     Port Act of 2006 (Public Law 109-347; 120 Stat. 1945) is 
     amended to read as follows:

     ``SEC. 705. PHASEOUT OF VESSELS SUPPORTING OIL AND GAS 
                   DEVELOPMENT.

       ``(a) In General.--Notwithstanding section 12111(d) of 
     title 46, United States Code, a foreign-flag vessel may be 
     chartered by, or on behalf of, a lessee to be employed for 
     the setting, relocation, or recovery of anchors or other 
     mooring equipment of a mobile offshore drilling unit that is 
     located over the Outer Continental Shelf (as defined in 
     section 2(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331(a)) for operations in support of exploration, or 
     flow-testing and stimulation of wells, for offshore mineral 
     or energy resources in the Beaufort Sea or the Chukchi Sea 
     adjacent to Alaska--
       ``(1) until December 31, 2012, if the Secretary of 
     Transportation determines, after publishing notice in the 
     Federal Register, that insufficient vessels documented under 
     section 12111(d) of title 46, United States Code, are 
     reasonably available and suitable for these support 
     operations and all such reasonably available and suitable 
     vessels are employed in support of such operations; and
       ``(2) for an additional 2-year period beginning January 1, 
     2013, if the Secretary of Transportation determines--
       ``(A) that, as of December 31, 2012, the lessee has entered 
     into a binding agreement to employ a suitable vessel or 
     vessels to be documented under such section 12111(d) in 
     sufficient numbers and with sufficient suitability to replace 
     any foreign-flag vessel or vessels operating under this 
     section; and
       ``(B) after publishing notice in the Federal Register, that 
     insufficient vessels documented under such section 12111(d) 
     are reasonably available and suitable for these support 
     operations and all such reasonably available and suitable 
     vessels are employed in support of such operations.
       ``(b) Lessee Defined.--In this section, the term `lessee' 
     means the holder of a lease (defined in section 2(c) of the 
     Outer Continental Shelf Lands Act (43 U.S.C. 1331(c)), who 
     has entered into a binding agreement to employ a suitable 
     vessel documented or to be documented under section 12111(d) 
     of title 46, United States Code.
       ``(c) Rule of Construction.--Nothing in subsection (a) 
     shall be construed to authorize employment in the coastwise 
     trade of a vessel that does not meet the requirements set 
     forth in section 12112 of title 46, United States Code.''.

                      TITLE VII--VESSEL CONVEYANCE

     SEC. 701. SHORT TITLE.

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

     SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR PUBLIC 
                   PURPOSES.

       (a) In General.--Whenever the transfer of ownership of a 
     Coast Guard vessel to an eligible entity for use for 
     educational, cultural, historical, charitable, recreational, 
     or other public purposes is authorized by law, the Coast 
     Guard shall transfer the vessel to the General Services 
     Administration for conveyance to the eligible entity.

[[Page 7630]]

       (b) Conditions of Conveyance.--The General Services 
     Administration may not convey a vessel to an eligible entity 
     as authorized by law unless the eligible entity agrees--
       (1) to provide the documentation needed by the General 
     Services Administration to process a request for aircraft or 
     vessels under section 102.37.225 of title 41, Code of Federal 
     Regulations;
       (2) to comply with the special terms, conditions, and 
     restrictions imposed on aircraft and vessels under section 
     102-37.460 of such title;
       (3) to make the vessel available to the United States 
     Government if it is needed for use by the Commandant of the 
     Coast Guard in time of war or a national emergency; and
       (4) to hold the United States Government harmless for any 
     claims arising from exposure to hazardous materials, 
     including asbestos and polychlorinated biphenyls, after 
     conveyance of the vessel, except for claims arising from use 
     of the vessel by the United States Government under paragraph 
     (3).
       (c) Eligible Entity Defined.--In this section, 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.

                  TITLE VIII--OIL POLLUTION PREVENTION

     SEC. 801. RULEMAKINGS.

       (a) Status Report.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall provide a report 
     to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on the status of all Coast 
     Guard rulemakings required (but for which no final rule has 
     been issued as of the date of enactment of this Act) under 
     section 311 of the Federal Water Pollution Control Act (33 
     U.S.C. 1321).
       (2) Information required.--The Secretary shall include in 
     the report required in paragraph (1)--
       (A) a detailed explanation with respect to each such 
     rulemaking as to--
       (i) what steps have been completed;
       (ii) what areas remain to be addressed; and
       (iii) the cause of any delays; and
       (B) the date by which a final rule may reasonably be 
     expected to be issued.
       (b) Final Rules.--The Secretary shall issue a final rule in 
     each pending rulemaking described in subsection (a) as soon 
     as practicable, but in no event later than 18 months after 
     the date of enactment of this Act.
       (c) Towing vessels.--No later than 1 year after the date of 
     enactment of this Act, the Secretary shall issue a notice of 
     proposed rulemaking regarding inspection requirements for 
     towing vessels required under section 3306(j) of title 46, 
     United States Code. The Secretary shall issue a final rule 
     pursuant to that rulemaking no later than 2 years after the 
     date of enactment of this Act.

     SEC. 802. OIL TRANSFERS FROM VESSELS.

       (a) Regulations.--Within 1 year after the date of enactment 
     of this Act, the Secretary shall promulgate regulations to 
     reduce the risks of oil spills in operations involving the 
     transfer of oil from or to a tank vessel. The regulations--
       (1) shall focus on operations that have the highest risks 
     of discharge, including operations at night and in inclement 
     weather;
       (2) shall consider--
       (A) requirements for the use of equipment, such as putting 
     booms in place for transfers, safety, and environmental 
     impacts;
       (B) operational procedures such as manning standards, 
     communications protocols, and restrictions on operations in 
     high-risk areas; or
       (C) both such requirements and operational procedures; and
       (3) shall take into account the safety of personnel and 
     effectiveness of available procedures and equipment for 
     preventing or mitigating transfer spills.
       (b) Application with State Laws.--The regulations 
     promulgated under subsection (a) do not preclude the 
     enforcement of any State law or regulation the requirements 
     of which are at least as stringent as requirements under the 
     regulations (as determined by the Secretary) that--
       (1) applies in State waters;
       (2) does not conflict with, or interfere with the 
     enforcement of, requirements and operational procedures under 
     the regulations; and
       (3) has been enacted or promulgated before the date of 
     enactment of this Act.

     SEC. 803. IMPROVEMENTS TO REDUCE HUMAN ERROR AND NEAR MISS 
                   INCIDENTS.

       (a) Report.--Within 1 year after the date of enactment of 
     this Act, the Secretary shall transmit a report to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House Committee on Transportation and Infrastructure that, 
     using available data--
       (1) identifies the types of human errors that, combined, 
     account for over 50 percent of all oil spills involving 
     vessels that have been caused by human error in the past 10 
     years;
       (2) identifies the most frequent types of near-miss oil 
     spill incidents involving vessels such as collisions, 
     allisions, groundings, and loss of propulsion in the past 10 
     years;
       (3) describes the extent to which there are gaps in the 
     data with respect to the information required under 
     paragraphs (1) and (2) and explains the reason for those 
     gaps; and
       (4) includes recommendations by the Secretary to address 
     the identified types of errors and incidents to address any 
     such gaps in the data.
       (b) Measures.--Based on the findings contained in the 
     report required by subsection (a), the Secretary shall take 
     appropriate action, both domestically and at the 
     International Maritime Organization, to reduce the risk of 
     oil spills caused by human error.
       (c) Confidentiality of Voluntarily Submitted Information.--
     The identity of a person making a voluntary disclosure under 
     this section, and any information obtained from any such 
     voluntary disclosure, shall be treated as confidential.
       (d) Discovery of Voluntarily Submitted Information.--
       (1) In general.--Except as provided in this subsection, a 
     party in a judicial proceeding may not use discovery to 
     obtain information or data collected or received by the 
     Secretary for use in the report required in subsection (a).
       (2) Exception.--
       (A) Notwithstanding paragraph (1), a court may allow 
     discovery by a party in a judicial proceeding of information 
     or data described in paragraph (1) if, after an in camera 
     review of the information or data, the court decides that 
     there is a compelling reason to allow the discovery.
       (B) When a court allows discovery in a judicial proceeding 
     as permitted under this paragraph, the court shall issue a 
     protective order--
       (i) to limit the use of the information or data to the 
     judicial proceeding; and
       (ii) to prohibit dissemination of the information or data 
     to any person who does not need access to the information or 
     data for the proceeding.
       (C) A court may allow information or data it has decided is 
     discoverable under this paragraph to be admitted into 
     evidence in a judicial proceeding only if the court places 
     the information or data under seal to prevent the use of the 
     information or data for a purpose other than for the 
     proceeding.
       (3) Application.--Paragraph (1) shall not apply to--
       (A) any disclosure made with actual knowledge that the 
     disclosure was false, inaccurate, or misleading; or
       (B) any disclosure made with reckless disregard as to the 
     truth or falsity of that disclosure.

     SEC. 804. OLYMPIC COAST NATIONAL MARINE SANCTUARY.

       (a) Olympic Coast National Marine Sanctuary Area To Be 
     Avoided.--The Secretary of the Department in which the Coast 
     Guard is operating and the Under Secretary of Commerce for 
     Oceans and Atmosphere shall revise the area to be avoided off 
     the coast of the State of Washington so that restrictions 
     apply to all vessels required to prepare a response plan 
     pursuant to section 311(j) of the Federal Water Pollution 
     Control Act (33 U.S.C. 1321(j)) (other than fishing or 
     research vessels while engaged in fishing or research within 
     the area to be avoided).

     SEC. 805. PREVENTION OF SMALL OIL SPILLS.

       The Under Secretary of Commerce for Oceans and Atmosphere, 
     in consultation with the Secretary of the Department in which 
     the Coast Guard is operating and other appropriate agencies, 
     shall establish an oil spill prevention and education program 
     for small vessels. The program shall provide for assessment, 
     outreach, and training and voluntary compliance activities to 
     prevent and improve the effective response to oil spills from 
     vessels and facilities not required to prepare a vessel 
     response plan under the Federal Water Pollution Control Act 
     (33 U.S.C. 1251 et seq.), including recreational vessels, 
     commercial fishing vessels, marinas, and aquaculture 
     facilities. The Under Secretary may provide grants to sea 
     grant colleges and institutes designated under section 207 of 
     the National Sea Grant College Program Act (33 U.S.C. 1126) 
     and to State agencies, tribal governments, and other 
     appropriate entities to carry out--
       (1) regional assessments to quantify the source, incidence 
     and volume of small oil spills, focusing initially on regions 
     in the country where, in the past 10 years, the incidence of 
     such spills is estimated to be the highest;
       (2) voluntary, incentive-based clean marina programs that 
     encourage marina operators, recreational boaters, and small 
     commercial vessel operators to engage in environmentally 
     sound operating and maintenance procedures and best 
     management practices to prevent or reduce pollution from oil 
     spills and other sources;
       (3) cooperative oil spill prevention education programs 
     that promote public understanding of the impacts of spilled 
     oil and provide useful information and techniques to minimize 
     pollution, including methods to remove oil and reduce oil 
     contamination of bilge water, prevent accidental spills 
     during maintenance and refueling and properly cleanup and 
     dispose of oil and hazardous substances; and
       (4) support for programs, including outreach and education 
     to address derelict vessels and the threat of such vessels 
     sinking

[[Page 7631]]

     and discharging oil and other hazardous substances, including 
     outreach and education to involve efforts to the owners of 
     such vessels.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Under Secretary of Commerce for 
     Oceans and Atmosphere to carry out this section, $10,000,000 
     for each of fiscal years 2010 through 2014.

     SEC. 806. IMPROVED COORDINATION WITH TRIBAL GOVERNMENTS.

       (a) In General.--Within 6 months after the date of 
     enactment of this Act, the Secretary of the Department in 
     which the Coast Guard is operating shall complete the 
     development of a tribal consultation policy, which recognizes 
     and protects to the maximum extent practicable tribal treaty 
     rights and trust assets in order to improve the Coast Guard's 
     consultation and coordination with the tribal governments of 
     federally recognized Indian tribes with respect to oil spill 
     prevention, preparedness, response and natural resource 
     damage assessment.
       (b) Inclusion of Tribal Government.--The Secretary of the 
     Department in which the Coast Guard is operating shall ensure 
     that, as soon as practicable after identifying an oil spill 
     that is likely to have a significant impact on natural or 
     cultural resources owned or directly utilized by a federally 
     recognized Indian tribe, the Coast Guard will--
       (1) ensure that representatives of the tribal government of 
     the affected tribes are included as part of the incident 
     command system established by the Coast Guard to respond to 
     the spill;
       (2) share information about the oil spill with the tribal 
     government of the affected tribe; and
       (3) to the extent practicable, involve tribal governments 
     in deciding how to respond to the spill.
       (c) Cooperative Arrangements.--The Coast Guard may enter 
     into memoranda of agreement and associated protocols with 
     Indian tribal governments in order to establish cooperative 
     arrangements for oil pollution prevention, preparedness, and 
     response. Such memoranda may be entered into prior to the 
     development of the tribal consultation and coordination 
     policy to provide Indian tribes grant and contract 
     assistance. Such memoranda of agreement and associated 
     protocols with Indian tribal governments may include--
       (1) arrangements for the assistance of the tribal 
     government to participate in the development of the National 
     Contingency Plan and local Area Contingency Plans to the 
     extent they affect tribal lands, cultural and natural 
     resources;
       (2) arrangements for the assistance of the tribal 
     government to develop the capacity to implement the National 
     Contingency Plan and local Area Contingency Plans to the 
     extent they affect tribal lands, cultural and natural 
     resources;
       (3) provisions on coordination in the event of a spill, 
     including agreements that representatives of the tribal 
     government will be included as part of the regional response 
     team co-chaired by the Coast Guard and the Environmental 
     Protection Agency to establish policies for responding to oil 
     spills;
       (4) arrangements for the Coast Guard to provide training of 
     tribal incident commanders and spill responders for oil spill 
     preparedness and response;
       (5) demonstration projects to assist tribal governments in 
     building the capacity to protect tribal treaty rights and 
     trust assets from oil spills; and
       (6) such additional measures the Coast Guard determines to 
     be necessary for oil pollution prevention, preparedness, and 
     response.
       (d) Funding for Tribal Participation.--Subject to the 
     availability of appropriations, the Commandant of the Coast 
     Guard shall provide assistance to participating tribal 
     governments in order to facilitate the implementation of 
     cooperative arrangements under subsection (c) and ensure the 
     participation of tribal governments in such arrangements. 
     There are authorized to be appropriated to the Commandant 
     $500,000 for each of fiscal years 2010 through 2014 to be 
     used to carry out this section.

     SEC. 807. REPORT ON AVAILABILITY OF TECHNOLOGY TO DETECT THE 
                   LOSS OF OIL.

       Within 1 year after the date of enactment of this Act, the 
     Secretary of the Department in which the Coast Guard is 
     operating shall submit a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Energy and Commerce on the 
     availability, feasibility, and potential cost of technology 
     to detect the loss of oil carried as cargo or as fuel on tank 
     and non-tank vessels greater than 400 gross tons.

     SEC. 808. USE OF OIL SPILL LIABILITY TRUST FUND.

       (a) In General.--Section 1012(a)(5) of the Oil Pollution 
     Act of 1990 (33 U.S.C. 2712(a)(5)) is amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively; and
       (2) by inserting after subparagraph (A) the following:
       ``(B) not more than $15,000,000 in each fiscal year shall 
     be available to the Under Secretary of Commerce for Oceans 
     and Atmosphere for expenses incurred by, and activities 
     related to, response and damage assessment capabilities of 
     the National Oceanic and Atmospheric Administration;''.
       (b) Audits; Annual Reports.--Section 1012 of the Oil 
     Pollution Act of 1990 (33 U.S.C. 2712) is amended--
       (1) by striking subsection (g) and inserting the following:
       ``(g) Audits.--
       ```(1) In general.--The Comptroller General of the United 
     States shall conduct an audit, including a detailed 
     accounting of each disbursement from the Fund in excess of 
     $500,000 that is--
       ``(A) disbursed by the National Pollution Fund Center; and
       ``(B) administered and managed by the receiving Federal 
     agencies, including final payments made to agencies and 
     contractors and, to the extent possible, subcontractors.
       ``(2) Frequency.--The audits shall be conducted--
       ``(A) at least once every 3 years after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011 until 2016; and
       ``(B) at least once every 5 years after the last audit 
     conducted under subparagraph (A).
       ``(3) Submission of results.--The Comptroller shall submit 
     the results of each audit conducted under paragraph (1) to--
       ``(A) the Senate Committee on Commerce, Science, and 
     Transportation;
       ``(B) the House of Representatives Committee on 
     Transportation and Infrastructure; and
       ``(C) the Secretary or Administrator of each agency 
     referred to in paragraph (1)(B).''; and
       (2) by adding at the end thereof the following:
       ``(h) Reports.--
       ``(1) In general.--Within one year after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011, and annually thereafter, the President, 
     through the Secretary of the Department in which the Coast 
     Guard is operating, shall--
       ``(A) provide a report on disbursements for the preceding 
     fiscal year from the Fund, regardless of whether those 
     disbursements were subject to annual appropriations, to--
       ``(i) the Senate Committee on Commerce, Science, and 
     Transportation; and
       ``(ii) the House of Representatives Committee on 
     Transportation and Infrastructure: and
       ``(B) make the report available to the public on the 
     National Pollution Funds Center Internet website.
       ``(2) Contents.--The report shall include--
       ``(A) a list of each disbursement of $250,000 or more from 
     the Fund during the preceding fiscal year; and
       ``(B) a description of how each such use of the Fund meets 
     the requirements of subsection (a).
       ``(3) Agency recordkeeping.--Each Federal agency that 
     receives amounts from the Fund shall maintain records 
     describing the purposes for which such funds were obligated 
     or expended in such detail as the Secretary may require for 
     purposes of the report required under paragraph (1).
       ``(i) Authorizations.--There are authorized to be 
     appropriated such sums as may be necessary to carry out 
     subsections (g) and (h).''.

     SEC. 809. INTERNATIONAL EFFORTS ON ENFORCEMENT.

       The Secretary, in consultation with the heads of other 
     appropriate Federal agencies, shall ensure that the Coast 
     Guard pursues stronger enforcement in the International 
     Maritime Organization of agreements related to oil 
     discharges, including joint enforcement operations, training, 
     and stronger compliance mechanisms.

     SEC. 810. HIGHER VOLUME PORT AREA REGULATORY DEFINITION 
                   CHANGE.

       (a) In General.--Within 1 year after the date of enactment 
     of this Act, the Commandant shall initiate a rulemaking 
     proceeding to modify the definition of the term ``higher 
     volume port area'' in section 155.1020 of the Coast Guard 
     regulations (33 C.F.R. 155.1020) by striking ``Port Angeles, 
     WA'' in paragraph (13) of that section and inserting ``Cape 
     Flattery, WA''.
       (b) Emergency Response Plan Reviews.--Within 5 years after 
     the date of enactment of this Act, the Coast Guard shall 
     complete its review of any changes to emergency response 
     plans under the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.) resulting from the modification of the 
     higher volume port area definition required by subsection 
     (a).

     SEC. 811. TUG ESCORTS FOR LADEN OIL TANKERS.

       (a) Comparability Analysis.--
       (1) In general.--Within 1 year after the date of enactment 
     of this Act, the Commandant, in consultation with the 
     Secretary of State, shall enter into negotiations with the 
     Government of Canada to update the comparability analysis 
     which serves as the basis for the Cooperative Vessel Traffic 
     Service agreement between the United States and Canada for 
     the management of maritime traffic in Puget Sound, the Strait 
     of Georgia, Haro Strait, Rosario Strait, and the Strait of 
     Juan de Fuca. The updated analysis shall, at a minimum, 
     consider--
       (A) requirements for laden tank vessels to be escorted by 
     tug boats;

[[Page 7632]]

       (B) vessel emergency response towing capability at the 
     entrance to the Strait of Juan de Fuca; and
       (C) spill response capability throughout the shared water, 
     including oil spill response planning requirements for 
     vessels bound for one nation transiting in innocent passage 
     through the waters of the other nation.
       (2) Consultation requirement.--In conducting the analysis 
     required under this subsection, the Commandant shall consult 
     with the State of Washington and affected tribal governments.
       (3) Recommendations.--Within 18 months after the date of 
     enactment of this Act, the Commandant shall submit 
     recommendations based on the analysis required under this 
     subsection to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure. The recommendations shall 
     consider a full range of options for the management of 
     maritime traffic, including Federal legislation, promulgation 
     of Federal rules, and the establishment of cooperative 
     agreements for shared funding of spill prevention and 
     response systems.
       (b) Dual Escort Vessels for Double Hulled Tankers in Prince 
     William Sound, Alaska.--
       (1) In general.--Section 4116(c) of the Oil Pollution Act 
     of 1990 (46 U.S.C. 3703 note) is amended--
       (A) by striking ``Not later than 6 months after the date of 
     the enactment of this Act, the'' and inserting ``(1) In 
     general.--The''; and
       (B) by adding at the end the following:
       ``(2) Prince william sound, alaska.--
       ``(A) In general.--The requirement in paragraph (1) 
     relating to single hulled tankers in Prince William Sound, 
     Alaska, described in that paragraph being escorted by at 
     least 2 towing vessels or other vessels considered to be 
     appropriate by the Secretary (including regulations 
     promulgated in accordance with section 3703(a)(3) of title 
     46, United States Code, as set forth in part 168 of title 33, 
     Code of Federal Regulations (as in effect on March 1, 2009) 
     implementing this subsection with respect to those tankers) 
     shall apply to double hulled tankers over 5,000 gross tons 
     transporting oil in bulk in Prince William Sound, Alaska.
       ``(B) Implementation of requirements.--The Secretary of the 
     Federal agency with jurisdiction over the Coast Guard shall 
     carry out subparagraph (A) by order without notice and 
     hearing pursuant to section 553 of title 5 of the United 
     States Code.''.
       (2) Effective Date.--The amendments made by subsection (b) 
     take effect on the date that is 90 days after the date of 
     enactment of this Act.
       (c) Preservation of State Authority.--Nothing in this Act 
     or in any other provision of Federal law related to the 
     regulation of maritime transportation of oil shall affect, or 
     be construed or interpreted as preempting, the laws or 
     regulations of any State or political subdivision thereof in 
     effect on the date of enactment of this Act which require the 
     escort by one or more tugs of laden oil tankers in the areas 
     other than Prince William Sound which are specified in 
     section 4116(c) of the Oil Pollution Act of 1990 (46 U.S.C. 
     3703 note).

     SEC. 812. EXTENSION OF FINANCIAL RESPONSIBILITY.

       Section 1016(a) of the Oil Pollution Act of 1990 (33 U.S.C. 
     2716(a)) is amended--
       (1) by striking ``or'' after the semicolon in paragraph 
     (1);
       (2) by inserting ``or'' after the semicolon in paragraph 
     (2); and
       (3) by inserting after paragraph (2) the following:
       ``(3) any tank vessel over 100 gross tons (except a non-
     self-propelled vessel that does not carry oil as cargo) using 
     any place subject to the jurisdiction of the United 
     States;''.

     SEC. 813. OIL SPILL LIABILITY TRUST FUND INVESTMENT AMOUNT.

       Within 30 days after the date of enactment of this Act, the 
     Secretary of the Treasury shall increase the amount invested 
     in income producing securities under section 5006(b) of the 
     Oil Pollution Act of 1990 (33 U.S.C. 2736(b)) by $12,851,340.

     SEC. 814. LIABILITY FOR USE OF SINGLE-HULL VESSELS.

       Section 1001(32)(A) of the Oil Pollution Act of 1990 (33 
     U.S.C. 2701(32)(A)) is amended by inserting ``In the case of 
     a vessel, the term `responsible party' also includes the 
     owner of oil being transported in a tank vessel with a single 
     hull after December 31, 2010 (other than a vessel described 
     in section 3703a(b)(3) of title 46, United States Code).'' 
     after ``vessel.''.

                   TITLE IX--MISCELLANEOUS PROVISIONS

     SEC. 901. VESSEL DETERMINATION.

       (a) Vessels Deemed To Be New Vessels.--The vessel with 
     United States official number 981472 and the vessel with 
     United States official number 988333 shall each be deemed to 
     be a new vessel effective upon the date of delivery after 
     January 1, 2008, from a privately-owned United States 
     shipyard if no encumbrances are on record with the United 
     States Coast Guard at the time of the issuance of the new 
     vessel certificate of documentation for such vessel.
       (b) Safety Inspection.--Each vessel shall be subject to the 
     vessel safety and inspection requirements of title 46, United 
     States Code, applicable to any such vessel as of the day 
     before the date of enactment of this Act.

     SEC. 902. CONVEYANCE OF THE PRESQUE ISLE LIGHT STATION 
                   FRESNEL LENS TO PRESQUE ISLE TOWNSHIP, 
                   MICHIGAN.

       (a) Conveyance of Lens Authorized.--
       (1) Transfer of possession.--Notwithstanding any other 
     provision of law, the Commandant of the Coast Guard may 
     transfer to Presque Isle Township, a township in Presque Isle 
     County in the State of Michigan (in this section referred to 
     as the ``Township''), possession of the Historic Fresnel Lens 
     (in this section referred to as the ``Lens'') from the 
     Presque Isle Light Station Lighthouse, Michigan (in this 
     section referred to as the ``Lighthouse'').
       (2) Condition.--As a condition of the transfer of 
     possession authorized by paragraph (1), the Township shall, 
     not later than one year after the date of transfer, install 
     the Lens in the Lighthouse for the purpose of operating the 
     Lens and Lighthouse as a Class I private aid to navigation 
     pursuant to section 85 of title 14, United States Code, and 
     the applicable regulations under that section.
       (3) Conveyance of lens.--Upon the certification of the 
     Commandant that the Township has installed the Lens in the 
     Lighthouse and is able to operate the Lens and Lighthouse as 
     a private aid to navigation as required by paragraph (2), the 
     Commandant shall convey to the Township all right, title, and 
     interest of the United States in and to the Lens.
       (4) Cessation of united states operations of aids to 
     navigation at lighthouse.--Upon the making of the 
     certification described in paragraph (3), all active Federal 
     aids to navigation located at the Lighthouse shall cease to 
     be operated and maintained by the United States.
       (b) Reversion.--
       (1) Reversion for failure of aid to navigation.--If the 
     Township does not comply with the condition set forth in 
     subsection (a)(2) within the time specified in that 
     subsection, the Township shall, except as provided in 
     paragraph (2), return the Lens to the Commandant at no cost 
     to the United States and under such conditions as the 
     Commandant may require.
       (2) Exception for historical preservation.--Notwithstanding 
     the lack of compliance of the Township as described in 
     paragraph (1), the Township may retain possession of the Lens 
     for installation as an artifact in, at, or near the 
     Lighthouse upon the approval of the Commandant. The Lens 
     shall be retained by the Township under this paragraph under 
     such conditions for the preservation and conservation of the 
     Lens as the Commandant shall specify for purposes of this 
     paragraph. Installation of the Lens under this paragraph 
     shall occur, if at all, not later than two years after the 
     date of the transfer of the Lens to the Township under 
     subsection (a)(1).
       (3) Reversion for failure of historical preservation.--If 
     retention of the Lens by the Township is authorized under 
     paragraph (2) and the Township does not install the Lens in 
     accordance with that paragraph within the time specified in 
     that paragraph, the Township shall return the lens to the 
     Coast Guard at no cost to the United States and under such 
     conditions as the Commandant may require.
       (c) Conveyance of Additional Personal Property.--
       (1) Transfer and conveyance of personal property.--
     Notwithstanding any other provision of law, the Commandant 
     may transfer to the Township any additional personal property 
     of the United States related to the Lens that the Commandant 
     considers appropriate for conveyance under this section. If 
     the Commandant conveys the Lens to the Township under 
     subsection (a)(3), the Commandant may convey to the Township 
     any personal property previously transferred to the Township 
     under this subsection.
       (2) Reversion.--If the Lens is returned to the Coast Guard 
     pursuant to subsection (b), the Township shall return to the 
     Coast Guard all personal property transferred or conveyed to 
     the Township under this subsection except to the extent 
     otherwise approved by the Commandant.
       (d) Conveyance Without Consideration.--The conveyance of 
     the Lens and any personal property under this section shall 
     be without consideration.
       (e) Delivery of Property.--The Commandant shall deliver 
     property conveyed under this section--
       (1) at the place where such property is located on the date 
     of the conveyance;
       (2) in condition on the date of conveyance; and
       (3) without cost to the United States.
       (f) Maintenance of Property.--As a condition of the 
     conveyance of any property to the Township under this 
     section, the Commandant shall enter into an agreement with 
     the Township under which the Township agrees--
       (1) to operate the Lens as a Class I private aid to 
     navigation under section 85 of title 14, United States Code, 
     and application regulations under that section; and
       (2) to hold the United States harmless for any claim 
     arising with respect to personal property conveyed under this 
     section.

[[Page 7633]]

       (g) Limitation on Future Conveyance.--The instruments 
     providing for the conveyance of property under this section 
     shall--
       (1) require that any further conveyance of an interest in 
     such property may not be made without the advance approval of 
     the Commandant; and
       (2) provide that, if the Commandant determines that an 
     interest in such property was conveyed without such 
     approval--
       (A) all right, title, and interest in such property shall 
     revert to the United States, and the United States shall have 
     the right to immediate possession of such property; and
       (B) the recipient of such property shall pay the United 
     States for costs incurred by the United States in recovering 
     such property.
       (h) Additional Terms and Conditions.--The Commandant may 
     require such additional terms and conditions in connection 
     with the conveyances authorized by this section as the 
     Commandant considers appropriate to protect the interests of 
     the United States.

     SEC. 903. LAND CONVEYANCE, COAST GUARD PROPERTY IN MARQUETTE 
                   COUNTY, MICHIGAN, TO THE CITY OF MARQUETTE, 
                   MICHIGAN.

       (a) Conveyance Authorized.--The Commandant of the Coast 
     Guard may convey, without consideration, to the City of 
     Marquette, Michigan (in this section referred to as the 
     ``City''), all right, title, and interest of the United 
     States in and to a parcel of real property, together with any 
     improvements thereon, located in Marquette County, Michigan, 
     that is under the administrative control of the Coast Guard, 
     consists of approximately 5.5 acres, and is commonly 
     identified as Coast Guard Station Marquette and Lighthouse 
     Point.
       (b) Retention of Certain Easements.--In conveying the 
     property under subsection (a), the Commandant of the Coast 
     Guard may retain such easements over the property as the 
     Commandant considers appropriate for access to aids to 
     navigation.
       (c) Limitations.--The property to be conveyed by subsection 
     (a) may not be conveyed under that subsection until--
       (1) the Coast Guard has relocated Coast Guard Station 
     Marquette to a newly constructed station;
       (2) any environmental remediation required under Federal 
     law with respect to the property has been completed; and
       (3) the Commandant of the Coast Guard determines that 
     retention of the property by the United States is not 
     required to carry out Coast Guard missions or functions.
       (d) Conditions of Transfer.--All conditions placed within 
     the deed of title of the property to be conveyed under 
     subsection (a) shall be construed as covenants running with 
     the land.
       (e) Inapplicability of Screening or Other Requirements.--
     The conveyance of property authorized by subsection (a) shall 
     be made without regard to the following:
       (1) Section 2696 of title 10, United States Code.
       (2) Chapter 5 of title 40, United States Code.
       (3) Any other provision of law relating to the screening, 
     evaluation, or administration of excess or surplus Federal 
     property prior to conveyance by the Administrator of General 
     Services.
       (f) Expiration of Authority.--The authority in subsection 
     (a) shall expire on the date that is five years after the 
     date of the enactment of this Act.
       (g) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Commandant of the Coast Guard. The cost of the survey shall 
     be borne by the United States.
       (h) Additional Terms and Conditions.--The Commandant of the 
     Coast Guard may require such additional terms and conditions 
     in connection with the conveyance authorized by subsection 
     (a) as the Commandant considers appropriate to protect the 
     interests of the United States.

     SEC. 904. OFFSHORE SUPPLY VESSELS.

       (a) Removal of Tonnage Limits.--
       (1) Definition.--
       (A) Section 2101(19) of title 46, United States Code, is 
     amended by striking ``of more than 15 gross tons but less 
     than 500 gross tons as measured under section 14502 of this 
     title, or an alternate tonnage measured under section 14302 
     of this title as prescribed by the Secretary under section 
     14104 of this title''.
       (B) Exemption.--Section 5209(b)(1) of the Oceans Act of 
     1992 (Public Law 102-587; 46 U.S.C. 2101 note) is amended by 
     striking ``vessel.'' and inserting ``vessel of less than 500 
     gross tons as measured under section 14502 of title 46, 
     United States Code, or an alternate tonnage measured under 
     section 14302 of such title as prescribed by the Secretary 
     under section 14104 of such title.''.
       (2) Application.--Section 3702(b) of title 46, United 
     States Code, is amended by striking paragraph (1) and 
     redesignating paragraphs (2) and (3) as paragraphs (1) and 
     (2), respectively.
       (b) Scale of Employment: Able Seamen.--Section 7312(d) of 
     title 46, United States Code, is amended to read as follows:
       ``(d) Individuals qualified as able seamen--offshore supply 
     vessels under section 7310 of this title may constitute all 
     of the able seamen required on board a vessel of less than 
     500 gross tons as measured under section 14502 of this title 
     or an alternate tonnage as measured under section 14302 of 
     this title as prescribed by the Secretary under section 14104 
     of this title engaged in support of exploration, 
     exploitation, or production of offshore mineral or energy 
     resources. Individuals qualified as able seamen--limited 
     under section 7308 of this title may constitute all of the 
     able seamen required on board a vessel of at least 500 gross 
     tons as measured under section 14502 of this title or an 
     alternate tonnage measured under section 14302 of this title 
     as prescribed by the Secretary under section 14104 of this 
     title engaged in support of exploration, exploitation, or 
     production of offshore mineral or energy resources.''.
       (c) Minimum Number of Licensed Individuals.--Section 
     8301(b) of title 46, United States Code, is amended to read 
     as follows:
       ``(b)(1) An offshore supply vessel of less than 500 gross 
     tons as measured under section 14502 of this title or 6,000 
     gross tons as measured under section 14302 of this title on a 
     voyage of less than 600 miles shall have a licensed mate. If 
     the vessel is on a voyage of at least 600 miles, however, the 
     vessel shall have 2 licensed mates.
       ``(2) An offshore supply vessel shall have at least one 
     mate. Additional mates on an offshore supply vessel of at 
     least 6,000 gross tons as measured under section 14302 of 
     this title shall be prescribed in accordance with hours of 
     service requirements (including recording and record keeping 
     of that service) prescribed by the Secretary.
       ``(3) An offshore supply vessel of more than 200 gross tons 
     as measured under section 14502 of this title, or an 
     alternate tonnage measured under section 14302 of this title 
     as prescribed by the Secretary under section 14104 of this 
     title, may not be operated without a licensed engineer.''.
       (d) Watches.--Section 8104(g) of title 46, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``(g)''; and
       (2) by adding at the end the following:
       ``(2) Paragraph (1) applies to an offshore supply vessel of 
     at least 6,000 gross tons as measured under section 14302 of 
     this title if the individuals engaged on the vessel are in 
     compliance with hours of service requirements (including 
     recording and record-keeping of that service) as prescribed 
     by the Secretary.''.
       (e) Oil Fuel Tank Protection.--
       (1) Application.--An offshore supply vessel of at least 
     6,000 gross tons as measured under section 14302 of this 
     title that is constructed under a contract entered into after 
     the date of enactment of this Act, or that is delivered after 
     August 1, 2010, with an aggregate capacity of 600 cubic 
     meters or more of oil fuel, shall comply with the 
     requirements of Regulation 12A under Annex I to the Protocol 
     of 1978 relating to the International Convention for the 
     Prevention of Pollution from Ships, 1973, entitled Oil Fuel 
     Tank Protection, regardless of whether such vessel is engaged 
     in the coastwise trade or on an international voyage.
       (2) Definition.--In this subsection the term ``oil fuel'' 
     means any oil used as fuel in connection with the propulsion 
     and auxiliary machinery of the vessel in which such oil is 
     carried.
       (f) Regulations.--
       (1) In general.--Not later than January 1, 2012, the 
     Secretary of the department in which the Coast Guard is 
     operating shall promulgate regulations to implement the 
     amendments and authorities enacted by this section for 
     offshore supply vessels of at least 6,000 gross tons as 
     measured under section 14302 of title 46, United States Code, 
     and to ensure the safe carriage of oil, hazardous substances, 
     and individuals in addition to the crew on such vessels. The 
     final rule issued pursuant to such rulemaking may supersede 
     the interim final rule promulgated under paragraph (2) of 
     this subsection. In promulgating regulations under this 
     subsection, the Secretary shall take into consideration the 
     characteristics of offshore supply vessels, their methods of 
     operation, and their service in support of exploration, 
     exploitation, or production of offshore mineral or energy 
     resources.
       (2) Interim final rule authority.--As soon as is 
     practicable and without regard to the provisions of chapters 
     5 and 6 of title 5, United States Code, the Secretary shall 
     issue an interim final rule as a temporary regulation 
     implementing this section (including the amendments made by 
     this section) for offshore supply vessels of at least 6,000 
     gross tons as measured under section 14302 of title 46, 
     United States Code, and to ensure the safe carriage of oil, 
     hazardous substances, and individuals in addition to the crew 
     on such vessels.
       (3) Interim period.--After the effective date of this Act, 
     prior to the effective date of the regulations prescribed by 
     paragraph (2) of this subsection, and without regard to the 
     provisions of chapters 5 and 6 of title 5, United States 
     Code, and the offshore supply vessel tonnage limits of 
     applicable regulations and policy guidance promulgated prior 
     to the date of enactment of this Act, the Secretary may--
       (A) issue a certificate of inspection under section 3309 of 
     title 46, United States Code, to an offshore supply vessel of 
     at least 6,000 gross tons as measured under section 14302 of

[[Page 7634]]

     this title if the Secretary determines that such vessel's 
     arrangements and equipment meet the current Coast Guard 
     requirements for certification as a cargo and miscellaneous 
     vessel; and
       (B) authorize a master, mate or engineer who possesses an 
     ocean or near coastal license under part 10 of subchapter B 
     of title 46, Code of Federal Regulations, (or any successor 
     regulation) which qualifies the licensed officer for service 
     on offshore supply vessels of more than 3,000 gross tons, as 
     measured under section 14302 of title 46, United States Code, 
     to operate offshore supply vessels of 6,000 gross tons or 
     greater, as measured under such section.

     SEC. 905. ASSESSMENT OF CERTAIN AIDS TO NAVIGATION AND 
                   TRAFFIC FLOW.

       (a) Information on Usage.--Within 60 days after the date of 
     enactment of this Act, the Commandant of the Coast Guard 
     shall--
       (1) determine the types and numbers of vessels typically 
     transiting or utilizing that portion of the Atlantic 
     Intracoastal Waterway beginning at a point that is due East 
     of the outlet of the Cutler Drain Canal C-100 in Dade County, 
     Florida, and ending at the Dade County line, during a period 
     of 30 days; and
       (2) provide the information on usage compiled under this 
     subsection to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure.
       (b) Assessment of Certain Aids to Navigation.--Within 90 
     days after the date of enactment of this Act, the Commandant 
     of the Coast Guard shall--
       (1) review and assess the buoys, markers, and other aids to 
     navigation in and along that portion of the Atlantic 
     Intracoastal Waterway specified in subsection (a), to 
     determine the adequacy and sufficiency of such aids, and the 
     need to replace such aids, install additional aids, or both; 
     and
       (2) submit a report on the assessment required by this 
     section to the committees.
       (c) Submission of Plan.--Within 180 days after the date of 
     enactment of this Act, the Commandant shall submit a plan to 
     the committees to address the needs identified under 
     subsection (b).

     SEC. 906. ALTERNATIVE LICENSING PROGRAM FOR OPERATORS OF 
                   UNINSPECTED PASSENGER VESSELS ON LAKE TEXOMA IN 
                   TEXAS AND OKLAHOMA.

       (a) In General.--Upon the request of the Governor of the 
     State of Texas or the Governor of the State of Oklahoma, the 
     Secretary of the department in which the Coast Guard is 
     operating shall enter into an agreement with the Governor of 
     the State whereby the State shall license operators of 
     uninspected passenger vessels operating on Lake Texoma in 
     Texas and Oklahoma in lieu of the Secretary issuing the 
     license pursuant to section 8903 of title 46, United States 
     Code, and the regulations issued thereunder, but only if the 
     State plan for licensing the operators of uninspected 
     passenger vessels--
       (1) meets the equivalent standards of safety and protection 
     of the environment as those contained in subtitle II of title 
     46, United States Code, and regulations issued thereunder;
       (2) includes--
       (A) standards for chemical testing for such operators;
       (B) physical standards for such operators;
       (C) professional service and training requirements for such 
     operators; and
       (D) criminal history background check for such operators;
       (3) provides for the suspension and revocation of State 
     licenses;
       (4) makes an individual, who is ineligible for a license 
     issued under title 46, United States Code, ineligible for a 
     State license; and
       (5) provides for a report that includes--
       (A) the number of applications that, for the preceding 
     year, the State rejected due to failure to--
       (i) meet chemical testing standards;
       (ii) meet physical standards;
       (iii) meet professional service and training requirements; 
     and
       (iv) pass criminal history background check for such 
     operators;
       (B) the number of licenses that, for the preceding year, 
     the State issued;
       (C) the number of license investigations that, for the 
     preceding year, the State conducted;
       (D) the number of licenses that, for the preceding year, 
     the State suspended or revoked, and the cause for such 
     suspensions or revocations; and
       (E) the number of injuries, deaths, collisions, and loss or 
     damage associated with uninspected passenger vessels 
     operations that, for the preceding year, the State 
     investigated.
       (b) Administration.--
       (1) The Governor of the State may delegate the execution 
     and enforcement of the State plan, including the authority to 
     license and the duty to report information pursuant to 
     subsection (a), to any subordinate State officer. The 
     Governor shall provide, to the Secretary, written notice of 
     any delegation.
       (2) The Governor (or the Governor's designee) shall provide 
     written notice of any amendment to the State plan no less 
     than 45 days prior to the effective date of such amendment.
       (3) At the request of the Secretary, the Governor of the 
     State (or the Governor's designee) shall grant, on a biennial 
     basis, the Secretary access to State records and State 
     personnel for the purpose of auditing State execution and 
     enforcement of the State plan.
       (c) Application.--
       (1) The requirements of section 8903 of title 46, United 
     States Code, and the regulations issued thereunder shall not 
     apply to any person operating under the authority of a State 
     license issued pursuant to an agreement under this section.
       (2) The State shall not compel a person, operating under 
     the authority of a license issued either by another State, 
     pursuant to a valid agreement under this section, or by the 
     Secretary, pursuant to section 8903 of title 46, United 
     States Code, to--
       (A) hold a license issued by the State, pursuant to an 
     agreement under this section; or
       (B) pay any fee, associated with licensing, because the 
     person does not hold a license issued by the State, pursuant 
     to an agreement under this section.

     Nothing in this paragraph shall limit the authority of the 
     State to impose requirements or fees for privileges, other 
     than licensing, that are associated with the operation of 
     uninspected passenger vessels on Lake Texoma.
       (3) For the purpose of enforcement, if an individual is 
     issued a license--
       (A) by a State, pursuant to an agreement entered into under 
     to this section, or
       (B) by the Secretary, pursuant to section 8903 of title 46, 
     United States Code,

     then the individual shall be entitled to lawfully operate an 
     uninspected passenger vessel on Lake Texoma in Texas and 
     Oklahoma without further requirement to hold an additional 
     operator's license.
       (d) Termination.--
       (1) If--
       (A) the Secretary finds that the State plan for the 
     licensing the operators of uninspected passenger vessels--
       (i) does not meet the equivalent standards of safety and 
     protection of the environment as those contained in subtitle 
     II of title 46, United States Code, and regulations issued 
     thereunder,
       (ii) does not include--

       (I) standards for chemical testing for such operators,
       (II) physical standards for such operators,
       (III) professional service and training requirements for 
     such operators, or
       (IV) background and criminal investigations for such 
     operators,

       (iii) does not provide for the suspension and revocation of 
     State licenses, or
       (iv) does not make an individual, who is ineligible for a 
     license issued under title 46, United States Code, ineligible 
     for a State license, or
       (B) the Governor (or the Governor's designee) fails to 
     report pursuant to subsection (b),

     the Secretary shall terminate the agreement authorized by 
     this section, if the Secretary provides written notice to the 
     Governor of the State 60 days in advance of termination. The 
     findings of fact and conclusions of the Secretary, if based 
     on a preponderance of the evidence, shall be conclusive.
       (2) The Governor of the State may terminate the agreement 
     authorized by this section, if the Governor provides written 
     notice to the Secretary 60 days in advance of the termination 
     date.
       (e) Existing Authority.--Nothing in this section shall 
     affect or diminish the authority or jurisdiction of any 
     Federal or State officer to investigate, or require reporting 
     of, marine casualties.
       (f) Uninspected Passenger Vessel Defined.--In this section 
     the term ``uninspected passenger vessel'' has the meaning 
     that term has in section 2101(42)(B) of title 46, United 
     States Code.

                       TITLE X--BUDGETARY EFFECTS

     SEC. 1001. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 3913. Mr. WHITEHOUSE (for Mr. Gregg) proposed an amendment to the 
resolution S. Res. 480, condemning the continued detention of Burmese 
democracy leader Daw Aung San Suu Kyi and calling on the military 
regime in Burma to permit a credible and fair election process and the 
transition to civilian, democratic rule; as follows:

       On page 2, beginning on line 7, strike ``the National 
     League for Democracy and other opposition groups,'' and 
     insert ``all political groups and individuals dedicated to 
     democratic ideals,''.
       On page 3, beginning on line 9, strike ``(including the 
     People's Republic of China, the Association of Southeast 
     Asian Nations, and the United Nations Security Council)'' and 
     insert ``, as appropriate, in order''.

[[Page 7635]]

       On page 3, line 17, strike ``the National League for 
     Democracy and''.
                                 ______
                                 
  SA 3914. Mr. CHAMBLISS submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 539, strike line 14 and all that follows 
     through page 541, line 24, and insert the following:
       ``(33) Major swap participant.--
       ``(A) In general.--The term `major swap participant' means 
     any person who is not a swap dealer, and--
       ``(i)(I) maintains a substantial net position in swaps for 
     any of the major swap categories as determined by the 
     Commission, excluding--

       ``(aa) positions held for hedging or mitigating commercial 
     risk, including operating risk and balance sheet risk, of 
     such person or its affiliates; and
       ``(bb) positions maintained by any employee benefit plan 
     (or any contract held by such a plan) as defined in 
     paragraphs (3) and (32) of section 3 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1002) for 
     the primary purpose of hedging or mitigating any risk 
     directly associated with the operation of the plan; and

       ``(II) whose outstanding swaps create substantial net 
     counterparty exposure that could have serious adverse effects 
     on the financial stability of the United States banking 
     system or financial markets; or
       ``(ii)(I) is a financial entity, other than an entity 
     predominantly engaged in providing customer financing for the 
     purchase of an affiliate's merchandise or manufactured goods, 
     that is highly leveraged relative to the amount of capital it 
     holds;
       ``(II) maintains a substantial net position in outstanding 
     swaps in any major swap category as determined by the 
     Commission; and
       ``(III) whose outstanding swaps create substantial net 
     counterparty exposure that could have serious adverse effects 
     on the financial stability of the United States banking 
     system or financial markets.
       ``(B) Definition of substantial net position.--For purposes 
     of subparagraph (A), the Commission shall define by rule or 
     regulation the term `substantial net position' to mean a 
     position after application of legally enforceable netting or 
     collateral arrangements that meets a threshold the Commission 
     determines to be prudent for the effective monitoring, 
     management, and oversight of entities that are systemically 
     important or can significantly impact the financial system of 
     the United States.
       ``(C) Scope of designation.--For purposes of subparagraph 
     (A), a person may be designated as a major swap participant 
     for 1 or more categories of swaps without being classified as 
     a major swap participant for all classes of swaps.
       ``(D) Capital.--In setting capital requirements for a 
     person that is designated as a major swap participant for a 
     single type or single class or category of swaps or 
     activities, the prudential regulator and the Commission shall 
     take into account the risks associated with other types of 
     swaps or classes of swaps or categories of swaps engaged in 
     by virtue of the status of the person as a major swap 
     participant.'';
                                 ______
                                 
  SA 3915. Mr. CHAMBLISS submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 555, strike line 16 and all that follows 
     through page 557, line 2, and insert the following:
       ``(49) Swap dealer.--
       ``(A) In general.--The term `swap dealer' means any person 
     who--
       ``(i) holds itself out as a dealer in swaps;
       ``(ii) makes a market in swaps;
       ``(iii) regularly engages in the purchase and sale of swaps 
     to customers as its ordinary course of business; and
       ``(iv) engages in any activity causing the person to be 
     commonly known in the trade as a dealer or market maker in 
     swaps.
       ``(B) Inclusion.--A person may be designated as a swap 
     dealer for a single type or single class or category of swap 
     or activities and considered not to be a swap dealer for 
     other types, classes, or categories of swaps or activities.
       ``(C) Capital.--In setting capital requirements for a 
     person that is designated as a swap dealer for a single type 
     or single class or category of swap or activities, the 
     prudential regulator and the Commission shall take into 
     account the risks associated with other types of swaps or 
     classes of swaps or categories of swaps engaged in by virtue 
     of the status of the person as a swap dealer.
       ``(D) Exception.--The term `swap dealer' does not include a 
     person that buys or sells swaps for such person's own 
     account, either individually or in a fiduciary capacity, or 
     on behalf of any affiliates of such person, unless it does so 
     as a market maker and as a part of a regular business.
                                 ______
                                 
  SA 3916. Mr. CHAMBLISS submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail,'' to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       Beginning on page 566, strike line 8 and all that follows 
     through page 584, line 7, and insert the following:
       (3) Mandatory clearing of swaps.--Section 2 of the 
     Commodity Exchange Act (7 U.S.C. 2) is amended by inserting 
     after subsection (g) (as redesignated by paragraph (1)(B)) 
     the following:
       ``(h) Clearing Requirement.--
       ``(1) Open access.--The rules of a registered derivatives 
     clearing organization shall--
       ``(A) prescribe that all swaps with the same terms and 
     conditions are economically equivalent and may be offset with 
     each other within the derivatives clearing organization; and
       ``(B) provide for nondiscriminatory clearing of a swap 
     executed bilaterally or on or through the rules of an 
     unaffiliated designated contract market or swap execution 
     facility, subject to the requirements of section 5(b).
       ``(2) Swaps subject to mandatory clearing requirement.--
       ``(A) In general.--In accordance with subparagraph (B), the 
     Commission shall, jointly with the Securities and Exchange 
     Commission and the Federal Reserve Board of Governors, adopt 
     rules to establish criteria for determining that a swap or 
     group, category, type, or class of swap is required to be 
     cleared.
       ``(B) Factors.--In carrying out subparagraph (A), the 
     following factors shall be considered:
       ``(i) Whether 1 or more derivatives clearing organizations 
     or clearing agencies accepts the swap or group, category, 
     type, or class of swap for clearing.
       ``(ii) Whether the swap or group, category, type, or class 
     of swap is traded pursuant to standard documentation and 
     terms.
       ``(iii) The liquidity of the swap or group, category, type, 
     or class of swap and its underlying commodity, security, 
     security of a reference entity, or group or index thereof.
       ``(iv) The ability to value the swap or group, category, 
     type, or class of swap and its underlying commodity, 
     security, security of a reference entity, or group or index 
     thereof consistent with an accepted pricing methodology, 
     including the availability of intraday prices.
       ``(v) The size of the market for the swap or group, 
     category, type, or class of swap and the available capacity, 
     operational expertise, and resources of the derivatives 
     clearing organization or clearing agency that accepts it for 
     clearing.
       ``(vi) Whether a clearing mandate would mitigate risk to 
     the financial system or whether it would unduly concentrate 
     risk in a clearing participant, derivatives clearing 
     organization, or clearing agency in a manner that could 
     threaten the solvency of that clearing participant, the 
     derivatives clearing organization, or the clearing agency.
       ``(vii) Such other factors as the Commission, the 
     Securities and Exchange Commission, and the Federal Reserve 
     Board of Governors jointly may determine are relevant.
       ``(C) Swaps subject to clearing requirement.--The 
     Commission--
       ``(i) shall review each swap, or any group, category, type, 
     or class of swap that is currently listed for clearing and 
     those which a derivatives clearing organization notifies the 
     Commission that the derivatives clearing organization plans 
     to list for clearing after the date of enactment of this 
     subsection;
       ``(ii) except as provided in paragraph (3), may require, 
     pursuant to the rules adopted under subparagraph (A) and 
     through notice-and-comment rulemaking, that a particular 
     swap, group, category, type, or class of swap must be 
     cleared; and
       ``(iii) shall rely on economic analysis provided by 
     economists of the Commission in making any determination 
     under clause (ii).

[[Page 7636]]

       ``(D) Effect.--
       ``(i) In general.--Nothing in this paragraph affects the 
     ability of a derivatives clearing organization to list for 
     permissive clearing any swap, or group, category, type, or 
     class of swaps.
       ``(ii) Prohibition.--The Commission shall not compel a 
     derivatives clearing organization to list a swap, group, 
     category, type, or class of swap for clearing if the 
     derivatives clearing organization determines that the swap, 
     group, category, type, or class of swap would adversely 
     impact its business operations, or impair the financial 
     integrity of the derivatives clearing organization.
       ``(iii) Required exemption.--The Commission shall exempt a 
     swap from the requirements of subparagraph (C), if no 
     derivatives clearing organization registered under this Act 
     or no derivatives clearing organization that is exempt from 
     registration under section 5b(j) of this Act will accept the 
     swap for clearing.
       ``(E) Prevention of evasion.--The Commission may prescribe 
     rules, or issue interpretations of such rules, as necessary 
     to prevent evasions of any requirement to clear under 
     subparagraph (C). In issuing such rules or interpretations, 
     the Commission shall consider--
       ``(i) the extent to which the terms of the swap, group, 
     category, type, or class of swap are similar to the terms of 
     other swaps, groups, categories, types, or classes of swap 
     that are required to be cleared by swap participants under 
     subparagraph (C); and
       ``(ii) whether there is an economic purpose for any 
     differences in the terms of the swap or group, category, 
     type, or class of swap that are required to be cleared by 
     swap participants under subparagraph (C).
       ``(F) Elimination of requirement to clear.--The Commission 
     may, pursuant to the rules adopted under subparagraph (A) and 
     through notice-and-comment rulemaking, rescind a requirement 
     imposed under subparagraph (C) with respect to a swap, group, 
     category, type, or class of swap.
       ``(G) Petition for rulemaking.--Any person may file a 
     petition, pursuant to the rules of practice of the 
     Commission, requesting that the Commission use its authority 
     under subparagraph (C) to require clearing of a particular 
     swap, group, category, type, or class of swap or to use its 
     authority under subparagraph (F) to rescind a requirement for 
     swap participants to clear a particular swap, group, 
     category, type, or class of swap.
       ``(H) Foreign exchange forwards, swaps, and options.--
     Foreign exchange forwards, swaps, and options shall not be 
     subject to a clearing requirement under subparagraph (C) 
     unless the Department of the Treasury and the Board of 
     Governors determine that such a requirement is appropriate 
     after considering whether there exists an effective 
     settlement system for such foreign exchange forwards, swaps, 
     and options and any other factors that the Department of the 
     Treasury and the Board of Governors deem to be relevant.
       ``(3) End user clearing exemption.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Commercial end user.--The term `commercial end user' 
     means any person who, as its primary business activity owns, 
     operates, uses, produces, processes, develops, leases, 
     manufacturers, distributes, merchandises, provides or markets 
     goods, services, physical assets, or commodities (which shall 
     include but not be limited to coal, natural gas, electricity, 
     biofuels, crude oil, gasoline, propane, distillates, and 
     other hydrocarbons) either individually or in a fiduciary 
     capacity.
       ``(ii) Financial entity end user.--

       ``(I) In general.--The term `financial entity end user' 
     means any person predominately engaged in activities that are 
     financial in nature, as determined by the Commission.
       ``(II) Exclusions.--The term `financial entity end user' 
     does not include--

       ``(aa) any person who is a swap dealer, security-based swap 
     dealer, major swap participant, major security-based swap 
     participant;
       ``(bb) an investment fund that would be an investment 
     company (as defined in section 3 of the Investment Company 
     Act o f 1940 (15 U.S.C. 80a-3)) but for paragraph (1) or (7) 
     of section 3(c) of that Act (15 U.S.C. 80a-3(c)); and is not 
     a partnership or other entity or any subsidiary that is 
     primarily invested in physical assets (which shall include 
     but not be limited to commercial real estate) directly or 
     through interests in partnerships or limited liability 
     companies that own such assets;
       ``(cc) entities defined in section 1303(20) of the Federal 
     Housing Enterprises Financial Safety and Soundness Act of 
     1992 (12 U.S.C. 4502(20));
       ``(dd) a commodity pool; or
       ``(ee) a commercial end user.
       ``(B) End user clearing exemption.--
       ``(i) In general.--Subject to clause (ii), in the event 
     that a swap is subject to the mandatory clearing requirement 
     under paragraph (2), and 1 of the counterparties to the swap 
     is a commercial end user or a financial entity end user, that 
     counterparty--

       ``(I)(aa) may elect not to clear the swap, as required 
     under paragraph (2); or
       ``(bb) may elect, prior to entering into the swap 
     transaction, to require clearing of the swap; and
       ``(II) if the end user makes an election under subclause 
     (I)(bb), shall have the sole right to select the derivatives 
     clearing organization at which the swap will be cleared.

       ``(ii) Limitation.--A commercial end user or a financial 
     entity end user may only make an election under clause (i) if 
     the end user is using the swap to hedge commercial risk, 
     including operating risk and balance sheet risk.
       ``(C) Treatment of affiliates.--
       ``(i) In general.--An affiliate of a commercial end user 
     (including affiliate entities predominated engaged in 
     providing financing for the purchase of merchandise or 
     manufactured goods of the commercial end user) or a financial 
     entity end user may make an election under subparagraph 
     (B)(i) only if the affiliate uses the swap to hedge or 
     mitigate the commercial risk, including operating risk and 
     balance sheet risk, of the commercial end user or the 
     financial entity end user or other affiliate of the 
     commercial end user or financial entity end user.
       ``(ii) Prohibition relating to certain affiliates.--An 
     affiliate of a commercial end user or a financial entity end 
     user shall not use the exemption under subparagraph (B) if 
     the affiliate is--

       ``(I) a swap dealer;
       ``(II) a security-based swap dealer;
       ``(III) a major swap participant;
       ``(IV) a major security-based swap participant;
       ``(V) an investment fund that would be an investment 
     company (as defined in section 3 of the Investment Company 
     Act o f 1940 (15 U.S.C. 80a-3)) but for paragraph (1) or (7) 
     of section 3(c) of that Act (15 U.S.C. 80a-3(c)); and is not 
     a partnership or other entity or any subsidiary that is 
     primarily invested in physical assets (which shall include 
     but not be limited to commercial real estate) directly or 
     through interests in partnerships or limited liability 
     companies that own such assets; or
       ``(VI) a commodity pool.

       ``(D) Abuse of exemption.--The Commission may prescribe 
     such rules or issue interpretations of the rules as the 
     Commission determines to be necessary to prevent abuse of the 
     exemption described in subparagraph (B). The Commission may 
     also request information from those entities claiming the 
     clearing exemption as necessary to prevent abuse of the 
     exemption described in subparagraph (B).
       ``(4) Required reporting.--Each swap that is not cleared by 
     any derivatives clearing organization shall be reported 
     either to a registered swap repository described in section 
     21 or, if there is no repository that would accept the swap, 
     to the Commission pursuant to section 4r.
       ``(5) Transition rules.--
       ``(A) Reporting transition rules.--The Commission shall 
     provide for the reporting of data, as follows:
       ``(i) Swaps entered into before date of enactment of this 
     subsection.--Swaps entered into before the date of the 
     enactment of this subsection shall be reported to a 
     registered swap repository or the Commission not later than 
     180 days after the effective date of this subsection.
       ``(ii) Swaps entered into on or after date of enactment of 
     this subsection.--Swaps entered into on or after such date of 
     enactment shall be reported to a registered swap repository 
     or the Commission not later than such time period as the 
     Commission prescribe.
       ``(B) Clearing transition rules.--Swaps entered into before 
     the effective date of any requirement under paragraph (2)(C) 
     are exempt from the clearing requirements of this subsection.
       ``(6) Reporting obligations.--
       ``(A) Swaps in which only 1 counterparty is a swap dealer 
     or major swap participant.--With respect to a swap in which 
     only 1 counterparty is a swap dealer or major swap 
     participant, the swap dealer or major swap participant shall 
     report the swap as required under paragraphs (4) and (5).
       ``(B) Swaps in which 1 counterparty is a swap dealer and 
     the other a major swap participant.--With respect to a swap 
     in which 1 counterparty is a swap dealer and the other a 
     major swap participant, the swap dealer shall report the swap 
     as required under paragraphs (4) and (5).
       ``(C) Other swaps.--With respect to any other swap not 
     described in subparagraph (A) or (B), the counterparties to 
     the swap shall select a counterparty to report the swap as 
     required under paragraphs (4) and (5).''.
                                 ______
                                 
  SA 3917. Mr. CHAMBLISS submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 580, line 1, insert after ``commercial end user'' 
     the following: ``or a lending

[[Page 7637]]

     institution cooperatively owned by and primarily serving 
     agricultural producers, agricultural cooperatives, or rural 
     electric cooperatives''.
                                 ______
                                 
  SA 3918. Ms. SNOWE (for herself and Ms. Landrieu) submitted an 
amendment intended to be proposed to amendment SA 3739 proposed by Mr. 
Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) to the bill S. 3217, 
to promote the financial stability of the United States by improving 
accountability and transparency in the financial system, to end ``too 
big to fail'', to protect the American taxpayer by ending bailouts, to 
protect consumers from abusive financial services practices, and for 
other purposes; which was ordered to lie on the table; as follows:

       On page 1272, line 2, strike ``services who'' and insert 
     ``services, but only to the extent that such person''.
       On page 1272, line 22, strike ``(C)'' and insert 
     ``(C)(i)''.
       On page 1273, strike line 19 and insert the following:
       ``(C) Limitations.--
       ``(i) In general.--Notwithstanding sub-''.
       On page 1273, line 20, after ``subparagraph (B)'' insert 
     ``, and except as provided in clause (ii)''.
       On page 1274, between lines 2 and 3, insert the following:
       ``(ii) Exception.--Subparagraph (A) and clause (i) of this 
     subparagraph do not apply to any merchant, retailer, or 
     seller of nonfinancial goods or services, to the extent that 
     such person is subject to any enumerated consumer law or any 
     law for which authorities are transferred under subtitle F or 
     H.''.
       On page 1274, strike line 3 and all that follows through 
     ``may'' on line 4 and insert the following:
       ``(D) Rules.--
       ``(i) Authority of other agencies.--No provision of this 
     title shall''.
       On page 1274, between lines 13 and 14, insert the 
     following:
       ``(ii) Small businesses.--A merchant, retailer, or seller 
     of nonfinancial goods or services that would otherwise be 
     subject to the authority of the Bureau solely by virtue of 
     the application of subparagraph (B)(iii) shall be deemed not 
     to be engaged significantly in offering or providing consumer 
     financial products or services under subparagraph (C)(i), if 
     such person--

       ``(I) only extends credit for the sale of nonfinancial 
     goods or services, as described in subparagraph (A)(i);
       ``(II) retains such credit on its own accounts (except to 
     sell or convey such debt that is delinquent or otherwise in 
     default); and
       ``(III) meets the relevant industry size threshold to be a 
     small business concern, based on annual receipts, pursuant to 
     section 3 of the Small Business Act (15 U.S.C. 632) and the 
     implementing rules thereunder.

       ``(iii) Initial year.--A merchant, retailer, or seller of 
     nonfinancial goods or services shall be deemed to meet the 
     relevant industry size threshold described in clause 
     (ii)(III) during the first year of operations of that 
     business concern if, during that year, the receipts of that 
     business concern reasonably are expected to meet that size 
     threshold.
       ``(E) Exception from state enforcement.--To the extent that 
     the Bureau may not exercise authority under this subsection 
     with respect to a merchant, retailer, or seller of 
     nonfinancial goods or services, no action by a State attorney 
     general or State regulator with respect to a claim made under 
     this title may be brought under subsection 1042(a), with 
     respect to an activity described in any of clauses (i) 
     through (iii) of subparagraph (A) by such merchant, retailer, 
     or seller of nonfinancial goods or services.''.
                                 ______
                                 
  SA 3919. Mr. CONRAD (for himself, Mr. Crapo, Mr. Barrasso, Mr. Kerry, 
Mr. Brown of Massachusetts, Ms. Snowe, Ms. Landrieu, Mr. Dorgan, Mr. 
Roberts, Mr. Enzi, Mrs. McCaskill, Ms. Collins, Ms. Cantwell, and Mrs. 
Murray) submitted an amendment intended to be proposed to amendment SA 
3739 proposed by Mr. Reid (for Mr. Dodd (for himself and Mrs. Lincoln)) 
to the bill S. 3217, to promote the financial stability of the United 
States by improving accountability and transparency in the financial 
system, to end ``too big to fail,'' to protect the American taxpayer by 
ending bailouts, to protect consumers from abusive financial services 
practices, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 466, line 13, strike ``bank'' and all that follows 
     through ``association'' on line 15 and insert the following: 
     ``bank having total assets of more than $10,000,000,000, in 
     the same manner and to the same extent as if the insured 
     State bank were a national banking association. For purposes 
     of determining total assets under this subsection, the 
     Corporation shall rely on the same regulations and interim 
     methodologies specified in section 312(e) of the Restoring 
     American Financial Stability Act of 2010''.
                                 ______
                                 
  SA 3920. Mr. HARKIN (for himself, Mr. Grassley, Mr. Nelson of 
Nebraska, Mr. Johanns, and Mr. Leahy) submitted an amendment intended 
to be proposed by him to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of title V, add the following:

   Subtitle C--Fixed Annuities and Insurance Products Classification

     SEC. 551. SHORT TITLE.

       This subtitle may be cited as the ``Fixed Indexed Annuities 
     and Insurance Products Classification Act of 2010''.

     SEC. 552. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Primary jurisdiction for regulating life insurance and 
     annuities is vested with the States and Territories of the 
     United States and the District of Columbia.
       (2) Indexed insurance and annuity products offered by 
     insurance companies are subject to a wide array of laws and 
     regulations enforced by States and applicable jurisdictions, 
     including nonforfeiture requirements that provide for minimum 
     guaranteed values, thereby protecting consumers against 
     market related losses.
       (3) Adoption of Rule 151A by the Securities and Exchange 
     Commission, entitled ``Indexed Annuities and Certain Other 
     Insurance Products'', 74 Fed. Reg. 3138 (January 16, 2009), 
     interferes with State insurance regulation, harms the 
     insurance industry, reduces competition, restricts consumer 
     choice, creates unnecessary and excessive regulatory burdens, 
     and diverts Commission resources, all of which outweighs any 
     perceived benefits.
       (b) Purpose.--The purpose of this subtitle is to nullify 
     rule 151A and clarify the scope of the exemption for 
     annuities and insurance contracts from Federal regulation 
     under the Securities Act of 1933.

     SEC. 553. SCOPE OF EXEMPTION FROM FEDERAL SECURITIES 
                   REGULATION.

       Section 3(a)(8) of the Securities Act of 1933 (15 U.S.C. 
     77c(a)(8)) is amended by inserting before the semicolon the 
     following: ``, and any insurance or endowment policy or 
     annuity contract or optional annuity contract--
       ``(A) the value of which does not vary according to the 
     performance of a separate account; and
       ``(B) which satisfies standard nonforfeiture laws or 
     similar requirements of the applicable State, Territory, or 
     District of Columbia at time of issue, or in the absence of 
     applicable standard nonforfeiture laws or requirements, 
     satisfies the Model Standard Nonforfeiture Law for Life 
     Insurance or Model Standard Nonforfeiture Law for Individual 
     Deferred Annuities, or any successor model law, as published 
     by the National Association of Insurance Commissioners''.

     SEC. 554. NULLIFICATION OF CERTAIN FEDERAL SECURITIES 
                   REGULATIONS.

       Rule 151A promulgated by the Securities and Exchange 
     Commission and entitled ``Indexed Annuities and Certain Other 
     Insurance Contracts'', 74 Fed. Reg. 3138 (January 16, 2009), 
     shall have no force or effect.
                                 ______
                                 
  SA 3921. Mr. BROWNBACK submitted an amendment intended to be proposed 
to amendment SA 3739 proposed by Mr. Reid (for Mr. Dodd (for himself 
and Mrs. Lincoln)) to the bill S. 3217, to promote the financial 
stability of the United States by improving accountability and 
transparency in the financial system, to end ``too big to fail'', to 
protect the American taxpayer by ending bailouts, to protect consumers 
from abusive financial services practices, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 1267, line 18, insert before the semicolon ``, as 
     such amount is indexed for inflation''.
       On page 1267, line 20, insert before the period ``, as such 
     amount is indexed for inflation''.
       On page beginning on line 24, strike ``, to support its 
     examination activities under subsection (c), and''.
       On page 1268, strike line 24 and all that follows through 
     page 1269, line 19 and insert the following:
       (c) Enforcement.--
       On page 1270, line 13, strike ``(e)'' and insert ``(d)''.
       On page 1345, beginning on line 1, strike ``, 1025, and 
     1026'' and insert ``and 1025''.

[[Page 7638]]



                          ____________________