[Senate Report 104-67]
[From the U.S. Government Publishing Office]



   104th Congress 1st            SENATE                 Report
         Session
                                                        104-67
_______________________________________________________________________

                                     

                                                        Calendar No. 89


 CERTIFICATE OF DOCUMENTATION FOR EACH OF TWO VESSELS NAMED ``GALLANT 
                                 LADY''

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                 S. 535




                 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. 89
104th Congress                                                   Report
                                 SENATE

 1st Session                                                     104-67
_______________________________________________________________________


 
   CERTIFICATE OF DOCUMENTATION FOR EACH TWO VESSELS NAMED ``GALLANT 
                                 LADY''

                                _______


                 April 18, 1995.--Ordered to be printed

      Field under authority of the order of the Senate of April 6 
                   (legislative day, April 15), 1995

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 535]
    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 535) to authorize the Secretary 
of Transportation to issue a certificate of documentation and 
coastwise trade endorsement for each of two vessels named 
Gallant Lady, and for other purposes, having considered the 
same, reports favorably thereon and recommends that the bill do 
pass.
                       purpose of the legislation

    S. 535, as reported, grants coastwise trading privileges to 
two vessels named Gallant Lady.

                          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 first vessel named Gallant Lady, Feadship hull number 
645, is a 130-foot motor yacht that was constructed in the 
Netherlands in 1992. It was purchased by Southeast Toyota 
Distributors, Inc. of Deerfield Beach, Florida. The second 
vessel named Gallant Lady, Feadship hull number 651, is a 172-
foot motor yacht currently under construction in the 
Netherlands. It was ordered by James M. Moran, Inc. of 
Deerfield Beach, Florida. The vessels' owners intend to use 
them for charity cruises.
    Because the vessels were foreign built, the owners have not 
been able to obtain coastwise trade privileges for the two 
vessels named Gallant Lady. Therefore, they are seeking 
statutory waivers of the Jones Act for the vessels. These 
waivers will be rescinded if:
          (a) the vessels named Gallant Lady are sold;
          (b) on April 1, 1997, if by that date Mr. Moran fails 
        to enter into a contract with a U.S. shipyard to build 
        a 130-foot passenger vessel; or
          (c) Mr. Moran breaches, rescinds, or terminates such 
        vessel construction contract (other than for completion 
        of the vessel).

                          legislative history

    S. 535 was introduced in the Senate on March 10, 1995, by 
Senator Graham. In open executive session on March 23, 1995, 
the Committee considered S. 535 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 the 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 in 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 certificate 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. 535 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 section 12106 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 
two vessels named Gallant Lady, Feadship hull number 645 and 
Feadship hull number 651, 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. This coastwise trade 
endorsement is limited to the carriage of passengers in 
association with contributions to charitable organizations, no 
portion of which is received, directly or indirectly, by the 
vessel's owners. Such certificates of documentation shall 
expire if:
          (a) the vessels named Gallant Lady are sold;
          (b) on April 1, 1997, if by that date Mr. Moran fails 
        to enter into a contract with a U.S. shipyard to build 
        a 130-foot passenger vessel; or
          (c) Mr. Moran breaches, rescinds, or terminates such 
        vessel construction contract (other than for completion 
        of the vessel).

                        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.