[Senate Report 104-66]
[From the U.S. Government Publishing Office]



   104th Congress 1st            SENATE                 Report
         Session
                                                        104-66
_______________________________________________________________________

                                     

                                                        Calendar No. 88


  CERTIFICATE OF DOCUMENTATION FOR THE VESSELS ``IDUN VIKING'', ``LIV 
                     VIKING'', AND ``FREJA VIKING''

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 528




                 April 18, 1995.--Ordered to be printed

      Filed under authority of the order of the Senate of April 6 
                    (legislative day, April 5), 1995

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      One Hundred Fourth Congress
                             first session

  LARRY PRESSLER, South Dakota, 
             Chairman
                                     BOB PACKWOOD, Oregon
                                     TED STEVENS, Alaska
                                     JOHN McCAIN, Arizona
                                     CONRAD BURNS, Montana
                                     SLADE GORTON, Washington
                                     TRENT LOTT, Mississippi
                                     KAY BAILEY HUTCHISON, Texas
                                     OLYMPIA SNOWE, Maine
ERNEST F. HOLLINGS, South Carolina   JOHN ASHCROFT, Missouri
DANIEL K. INOUYE, Hawaii
WENDELL H. FORD, Kentucky
J. JAMES EXON, Nebraska
JOHN D. ROCKEFELLER IV, West Virginia
JOHN F. KERRY, Massachusetts
JOHN B. BREAUX, Louisiana
RICHARD H. BRYAN, Nevada
BYRON L. DORGAN, North Dakota
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director
                                                        Calendar No. 88
104th Congress                                                   Report
                                 SENATE

 1st Session                                                     104-66
_______________________________________________________________________


 
  CERTIFICATE OF DOCUMENTATION FOR THE VESSELS ``IDUN VIKING'', ``LIV 
                     VIKING'', AND ``FREJA VIKING''

                                _______


                 April 18, 1995.--Ordered to be printed

      Filed under authority of the order of the Senate of April 6 
                    (legislative day, April 5), 1995

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 528]
    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 528) to authorize the Secretary 
of Transportation to issue a certificate of documentation and 
coastwise trade endorsement for the vessels Idun Viking, Liv 
Viking, and Freja Viking, and for other purposes, having 
considered the same, reports favorably thereon and recommends 
that the bill do pass.
                       purpose of the legislation

    S. 528, as reported, grants coastwise trading privileges to 
the vessels Idun Viking, Liv Viking, and Freja Viking.

                          background and needs

    Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act of 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 Act are statutorily waived.
    The vessels Idun Viking (Danish Registration number A433), 
Liv Viking (Danish Registration number A394), and Freja Viking 
(Danish Registration number A395) are hovercraft that were 
constructed in Denmark in 1984. They were purchased by Wallace 
Rinz of Miami, Florida. The vessels' owner intends to use them 
for passenger service in Florida.
    Because the vessels were foreign built and foreign owned, 
the owner has not been able to obtain coastwise trade 
privileges for the Idun Viking, Liv Viking, and Freja Viking. 
Therefore, he is seeking statutory waivers of the Jones Act for 
the vessels. These waivers are contingent on:
          (a) all ship repair and alteration work necessary for 
        these vessels' operation in the U.S. being conducted in 
        U.S. shipyards;
          (b) the owner entering into a binding contract within 
        6 months of the date of enactment with a U.S. shipyard 
        to build replacement vessels; and
          (c) the replacement vessels being delivered within 3 
        years of the date of entering into that contract.

                          legislative history

    S. 528 was introduced in the Senate on March 9, 1995, by 
Senator Lott. In open executive session on March 23, 1995, the 
Committee considered S. 528 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, March 30, 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 March 23, 1995:
          S. 84, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for vessel Bagger, and 
        for other purposes;
          S. 172, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        for the vessel L.R. Beattie;
          S. 212, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        with appropriate endorsement for employment is the 
        coastwise trade for the vessel Shamrock V;
          S. 213, 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 Endeavour;
          S. 278, a bill to authorize a certificate of 
        documentation for the vessel Serenity;
          S. 279, a bill to authorize a certificate of 
        documentation for the vessel Why Knot;
          S. 475, a bill to authorize a certificate of 
        documentation for the vessel Lady Hawk;
          S. 480, 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 Gleam;
          S. 482, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for the vessel Emerald 
        Ayes;
          S. 492, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        for the vessel Intrepid;
          S. 493, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        for the vessel Consortium;
          S. 528, a bill to authorize the Secretary of 
        Transportation to issue a certificate of documentation 
        and coastwise trade endorsement for three vessels;
          S. 535, a bill to authorize the Secretary of 
        Transportation to issue a certificates of documentation 
        with appropriate endorsement for employment in 
        coastwise trade for each of two vessels named Gallant 
        Lady, subject to certain conditions, and for other 
        purposes; and
          S. 561, 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 Isabelle, and for other 
        purposes.
    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. 528 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 and 12107 of title 46, U.S. 
Code, and section 27 of the Merchant Marine Act, 1920 (46 App. 
U.S.C. 883) as applicable on the date of enactment of this Act, 
the vessels Idun Viking (Danish Registration number A433), Liv 
Viking (Danish Registration number A394), and Freja Viking 
(Danish Registration number A395) are eligible to engage in the 
coastwise trade and the Secretary of the department in which 
the Coast Guard is operating may issue certificates of 
documentation for such vessels if:
          (a) all ship repair and alteration work necessary for 
        these vessels' operation in the U.S. is conducted in 
        U.S. shipyards;
          (b) the owner enters into a binding contract within 6 
        months of the date of enactment with a U.S. shipyard to 
        build replacement vessels; and
          (c) the replacement vessels are to be delivered 
        within 3 years of the date of entering into that 
        contract.

                        changes in existing law

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