[Senate Report 104-215]
[From the U.S. Government Publishing Office]



104th Congress 2d Session        SENATE                 Report
                                                       104-215
_______________________________________________________________________

                                     

                                                       Calendar No. 317


 
 EXTENSION OF DEADLINE FOR CONVERSION OF THE VESSEL MV ``TWIN DRILL''

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 808




                January 26, 1996.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             second session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director

                                  (ii)
                                                       Calendar No. 317
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-215
_______________________________________________________________________


  EXTENSION OF DEADLINE FOR CONVERSION OF THE VESSEL MV ``TWIN DRILL''

                                _______


                January 26, 1996.--Ordered to be printed

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 808]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 808) ``A bill to extend the 
deadline for the conversion of the vessel MV Twin Drill, and 
for other purposes'', having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                          Purpose of the Bill

    S. 808, as reported, grants coastwise trading privileges to 
the vessel MV Twin Drill.

                          Background and Needs

    Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act, 1920) and 
sections 12106 through 12108 of title 46, U.S. Code, provide 
that only those vessels built in the United States, 
continuously documented under the laws of the United States and 
continuously owned by U.S. citizens may transport merchandise 
or passengers in the coastwise trade, or engage in the 
fisheries, of the United States.
    Where the facts applicable to a particular vessel suggest 
the U.S.-built or U.S.-owned requirements have not been 
satisfied, the Coast Guard may not issue a document granting 
coastwise trading or fisheries privileges for that vessel 
unless the requirements of the Jones Act and the title 46 
provisions are statutorily waived.
    The vessel MV Twin Drill is a small waterplane area twin 
hull (Swath) vessel that was granted a conditional waiver of 
sections 12106, 12107, and 12108 of title 46, U.S. Code, and 
section 27 of the Merchant Marine Act, 1920 (46 U.S.C. App. 
883) by section 601(d) of Public Law 103-206. The vessel MV 
Twin Drill was granted full coastwise privileges provided that 
the cost of major conversion work on the vessel in a U.S. 
shipyard was more than three times the purchase value of the 
vessel. Furthermore, the owners were required to commit to 
build a new vessel entirely within a U.S. shipyard. These 
requirements were to have been completed by June 30, 1995.
    Due to a number of delays that have resulted from the 
discovery of additional work that was necessary because of 
unknown conditions on the vessel, the project has slowed to the 
point where the deadline has elapsed before completion. 
Therefore, the owner is seeking a statutory one-year extension 
of the time to comply with the conditions of the previously 
granted waiver.

                          Legislative History

    S. 808 was introduced in the Senate on May 16, 1995, by 
Senator Breaux. In open executive session on July 20, 1995, the 
Committee considered S. 808, and ordered the legislation 
reported favorably without objection and without amendment.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and Section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 2, 1995.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed the following bills, which were ordered reported by 
the Senate Committee on Commerce, Science, and Transportation 
on July 20, 1995:
          S. 583, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for two vessels;
          S. 653, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with the appropriate endorsement for employment in the 
        coastwise trade for the vessel Aura;
          S. 654, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with the appropriate endorsement for employment in the 
        coastwise trade for the vessel Sunrise;
          S. 655, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with the appropriate endorsement for employment in the 
        coastwise trade for the vessel Marantha;
          S. 656, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with the appropriate endorsement for employment in the 
        coastwise trade for the vessel Quietly;
          S. 739, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Sisu, and for other 
        purposes;
          S. 763, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for the vessel Evening 
        Star, and for other purposes;
          S. 802, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for the vessel Royal 
        Affaire;
          S. 808, a bill to extend the deadline for the 
        conversion of the vessel MV Twin Drill, and for other 
        purposes;
          S. 826, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and with appropriate endorsement for employment in the 
        coastwise trade for the vessel Prime Time, and for 
        other purposes;
          S. 869, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Dragonessa, and for 
        other purposes;
          S. 889, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Wolf Gang II, and for 
        other purposes;
          S. 911, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Sea Mistress;
          S. 975, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Jajo, and for other 
        purposes;
          S. 1016, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Magic Carpet;
          S. 1017, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Chrissy;
          S. 1040, a bill to authorize the Secretary of 
        transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Onrust;
          S. 1041, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment in the 
        coastwise trade for the vessel Explorer;
          S. 1046, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and with appropriate endorsements for employment in the 
        coastwise trade of the United States for fourteen 
        former United States hovercraft; and
          S. 1047, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        for employment and coastwise trade endorsements for the 
        vessels Enchanted Isles and Enchanted Seas.
    Enactment of these bills would have no impact on the 
federal budget or on those of state or local governments. The 
bills would not affect direct spending or receipts; therefore, 
pay-as-you-go procedures would not apply.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                         June E. O'Neill, Director.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.
    Because S. 808 does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                      Section-by-Section Analysis

    The bill consists of one section. It amends section 601(d) 
of the Coast Guard Authorization Act of 1993 (Public Law 103-
206, 107 Stat. 2445) to change the deadline for completing the 
major conversion work on the MV Twin Drill from June 30, 1995 
to June 30, 1996.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                 Coast Guard Authorization Act of 1993

                   TITLE VI--DOCUMENTATION OF VESSELS

SEC. 601. DOCUMENTATION OF VESSELS.

          * * * * * * *
    (d) Notwithstanding section 27 of the Merchant Marine Act, 
1920 (46 App. U.S.C. 883), the Act of June 19, 1886 (46 App. 
U.S.C. 289), and section 12106 of title 46, United States Code, 
the Secretary of Transportation may issue certificates of 
documentation with a coastwise endorsement for the vessel MV 
Twin Drill (Panama official number 8536--PEXT--2) if--
          (1) the vessel undergoes a major conversion (as 
        defined in section 2101 of title 46, United States 
        Code) in a United States shipyard;
          (2) the cost of the major conversion is more than 
        three times the purchase value of the vessel before the 
        major conversion;
          (3) the major conversion is completed and the vessel 
        is documented under chapter 121 of title 46, United 
        States Code, with a coastwise endorsement before [June 
        30, 1995] June 30, 1996;
          (4) the person documenting the vessel contracts with 
        a United States shipyard to construct an additional 
        vessel of equal or greater capacity within [12 months] 
        24 months of the date of enactment of this Act, for 
        delivery within 36 months of the date of such contract; 
        and
          (5) the additional vessel is documented under chapter 
        121 of title 46, United States Code, immediately after 
        it is constructed.
          * * * * * * *

                                
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