[Senate Report 104-225]
[From the U.S. Government Publishing Office]




104th Congress 2d Session        SENATE                 Report
                                                       104-225
_______________________________________________________________________



                                                       Calendar No. 327

 
CERTIFICATE OF DOCUMENTATION FOR FOURTEEN FORMER UNITED STATES ARMY HOVERCRAFT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1046




                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
                                                       Calendar No. 327
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-225
_______________________________________________________________________



  CERTIFICATE OF DOCUMENTATION FOR FOURTEEN FORMER UNITED STATES ARMY 
                               HOVERCRAFT

                                _______


                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. 1046]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1046) ``A bill to authorize the 
Secretary of Transportation to issue a certificate of 
documentation with appropriate endorsement for employment in 
the coastwise trade of the United States for fourteen former 
United States Army hovercraft'', having considered the same, 
reports favorably thereon without amendment and recommends that 
the bill do pass.

                          purpose of the bill

    S. 1046, as reported, grants coastwise trading privileges 
to 14 former U.S. Army hovercraft.

                          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 14 unnamed former U.S. Army vessels, serial numbers 
LACV-30-04, LACV-30-05, LACV-30-07, LACV-30-09, LACV-30-10, 
LACV-30-13, LACV-30-14, LACV-30-15, LACV-30-16, LACV-30-22, 
LACV-30-23, LACV-30-24, LACV-30-25, and LACV-30-26, are 76-foot 
hovercraft that were assembled in Canada and Fort Story, 
Virginia between 1982 and 1986. They were purchased by Champion 
Contractors, Inc. of Anchorage, Alaska. The vessels' owner 
intends to use them for passenger and cargo service between 
points in Alaska.
    Because certain superstructure modules were assembled in 
Canada, the owner has not been able to obtain coastwise trade 
privileges for these 14 hovercraft. Therefore, the owner is 
seeking a statutory waiver of the Jones Act and the title 46 
provisions for the vessels.

                          legislative history

    S. 1046 was introduced in the Senate on July 18, 1995, by 
Senator Stevens. In open executive session on July 20, 1995, 
the Committee considered S. 1046, 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 Enchanged 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. 1046 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 provides that, 
notwithstanding 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), as applicable on the date of enactment of 
this bill, 14 unnamed former U.S. Army vessels, serial numbers 
LACV-30-04, LACV-30-05, LACV-30-07, LACV-30-09, LACV-30-10, 
LACV-30-13, LACV-30-14, LACV-30-15, LACV-30-16, LACV-30-22, 
LACV-30-23, LACV-30-24, LACV-30-25, and LACV-30-26, are 
eligible to engage in the coastwise trade and the Secretary of 
Transportation may issue certificates of documentation for such 
vessels.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill as reported would make no change to existing law.

                                
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