[House Report 105-236]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-236
_______________________________________________________________________


 
                 COAST GUARD AUTHORIZATION ACT OF 1997

                                _______
                                

 July 31, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2204]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2204) to authorize appropriations 
for fiscal years 1998 and 1999 for the Coast Guard, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Coast Guard Authorization Act of 
1997''.

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--AUTHORIZATION

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

                    TITLE II--COAST GUARD MANAGEMENT

Sec. 201. Removal of cap on warrant officer severance pay.
Sec. 202. Authority to implement awards programs.

                        TITLE III--MARINE SAFETY

Sec. 301. Extension of territorial sea for certain laws.
Sec. 302. Penalties for interfering with the safe operation of a 
vessel.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Vessel identification system amendments.
Sec. 402. Conveyance of Coast Guard Reserve training facility, 
Jacksonville, Florida.
Sec. 403. Documentation of certain vessels.
Sec. 404. Conveyance of Coast Guard facility in Nahant, Massachusetts.
Sec. 405. Unreasonable obstruction to navigation.
Sec. 406. Financial responsibility for oil spill response vessels.
Sec. 407. Conveyance of Coast Guard property to Jacksonville University 
in Jacksonville, Florida.
Sec. 408. Penalty for violation of international safety convention.
Sec. 409. Coast Guard City, USA.
Sec. 410. Conveyance of Communication Station Boston Marshfield 
Receiver Site, Massachusetts.

                         TITLE I--AUTHORIZATION

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

  Funds are authorized to be appropriated for necessary expenses of the 
Coast Guard, as follows:
          (1) For the operation and maintenance of the Coast Guard--
                  (A) for fiscal year 1998, $2,790,700,000; and
                  (B) for fiscal year 1999, $2,854,700,000; of which 
                $25,000,000 shall be derived each fiscal year 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, rebuilding, and 
        improvement of aids to navigation, shore and offshore 
        facilities, vessels, and aircraft, including equipment related 
        thereto--
                  (A) for fiscal year 1998, $401,000,000, of which 
                $2,000,000 shall be made available for concept 
                evaluation for a replacement vessel for the Coast Guard 
                icebreaker MACKINAW, which concept evaluation shall be 
                transmitted to the Congress not later than April 1, 
                1998; and
                  (B) for fiscal year 1999, $440,000,000;
        to remain available until expended, of which $20,000,000 shall 
        be derived each fiscal year from the Oil Spill Liability Trust 
        Fund to carry out the purposes of section 1012(a)(5) of the Oil 
        Pollution Act of 1990.
          (3) For research, development, test, and evaluation of 
        technologies, materials, and human factors directly relating to 
        improving the performance of the Coast Guard's mission in 
        support of search and rescue, aids to navigation, marine 
        safety, marine environmental protection, enforcement of laws 
        and treaties, ice operations, oceanographic research, and 
        defense readiness--
                  (A) for fiscal year 1998, $19,500,000; and
                  (B) for fiscal year 1999, $19,000,000;
        to remain available until expended, of which $1,000,000 may be 
        made available in fiscal year 1998 for fuel cell research, and 
        of which $3,500,000 shall be derived each fiscal year from the 
        Oil Spill Liability Trust Fund to carry out the purposes of 
        section 1012(a)(5) of the Oil Pollution Act of 1990.
          (4) 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--
                  (A) for fiscal year 1998, $652,000,000; and
                  (B) for fiscal year 1999, $692,000,000.
          (5) For alteration or removal of bridges over navigable 
        waters of the United States constituting obstructions to 
        navigation, and for personnel and administrative costs 
        associated with the Bridge Alteration Program--
                  (A) for fiscal year 1998, $17,300,000; and
                  (B) for fiscal year 1999, $20,000,000,
        to remain available until expended.
          (6) For environmental compliance and restoration at Coast 
        Guard facilities (other than parts and equipment associated 
        with operations and maintenance), $21,000,000 for each of 
        fiscal years 1998 and 1999, to remain available until expended.

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

  (a) Active Duty Strength.--The Coast Guard is authorized an end-of-
year strength for active duty personnel of--
          (1) 37,944 as of September 30, 1998; and
          (2) 38,038 as of September 30, 1999.
  (b) Military Training Student Loads.--The Coast Guard is authorized 
average military training student loads as follows:
          (1) For recruit and special training--
                  (A) for fiscal year 1998, 1,424 student years; and
                  (B) for fiscal year 1999, 1,424 student years.
          (2) For flight training--
                  (A) for fiscal year 1998, 98 student years; and
                  (B) for fiscal year 1999, 98 student years.
          (3) For professional training in military and civilian 
        institutions--
                  (A) for fiscal year 1998, 283 student years; and
                  (B) for fiscal year 1999, 283 student years.
          (4) For officer acquisition--
                  (A) for fiscal year 1998, 814 student years; and
                  (B) for fiscal year 1999, 810 student years.

                    TITLE II--COAST GUARD MANAGEMENT

SEC. 201. REMOVAL OF CAP ON WARRANT OFFICER SEVERANCE PAY.

  Section 286a(d) of title 14, United States Code, is amended by 
striking the last sentence.

SEC. 202. AUTHORITY TO IMPLEMENT AWARDS PROGRAMS.

  Section 93 of title 14, United States Code, is amended--
          (1) in paragraph (s), by striking the comma at the end and 
        inserting a semicolon;
          (2) in paragraph (t), by redesignating subparagraphs (1) and 
        (2) as subparagraphs (A) and (B), respectively;
          (3) by redesignating paragraphs (a) through (v) in order as 
        paragraphs (1) through (21);
          (4) by redesignating the existing text (as so amended) as 
        subsection (a); and
          (5) by adding at the end the following new subsection:
  ``(b) The Commandant may provide for the honorary recognition of 
individuals and organizations, including State and local governments 
and commercial and nonprofit organizations, that significantly 
contribute to Coast Guard programs, missions, or operations, by 
awarding plaques, medals, trophies, badges, and similar items to 
acknowledge that contribution.''.

                        TITLE III--MARINE SAFETY

SEC. 301. EXTENSION OF TERRITORIAL SEA FOR CERTAIN LAWS.

  (a) Ports and Waterways Safety Act.--Section 3 of the Ports and 
Waterways Safety Act (33 U.S.C. 1222) is amended by adding at the end 
the following:
          ``(5) `Navigable waters of the United States' includes all 
        waters of the territorial sea of the United States as described 
        in Presidential Proclamation 5928 of December 27, 1988.''.
  (b) Title 46, United States Code.--Subtitle II of title 46, United 
States Code, is amended as follows:
          (1) In section 2101--
                  (A) by redesignating paragraph (17a) as paragraph 
                (17b); and
                  (B) by inserting after paragraph (17) the following:
          ``(17a) `navigable waters of the United States' includes all 
        waters of the territorial sea of the United States as described 
        in Presidential Proclamation 5928 of December 27, 1988.''.
          (2) In section 2301, by inserting ``(including the 
        territorial sea of the United States as described in 
        Presidential Proclamation 5928 of December 27, 1988)'' after 
        ``of the United States''.
          (3) In section 4102(e), by striking ``on the high seas'' and 
        inserting ``beyond 3 nautical miles from the baseline from 
        which the territorial sea of the United States is measured''.
          (4) In section 4301(a), by inserting ``(including the 
        territorial sea of the United States as described in 
        Presidential Proclamation 5928 of December 27, 1988)'' after 
        ``of the United States''.
          (5) In section 4502(a)(7), by striking ``on vessels that 
        operate on the high seas'' and inserting ``beyond 3 nautical 
        miles from the baseline from which the territorial sea of the 
        United States is measured''.
          (6) In section 4506(b), by striking paragraph (2) and 
        inserting the following:
          ``(2) is operating--
                  ``(A) in internal waters of the United States, or
                  ``(B) within 3 nautical miles from the baseline from 
                which the territorial sea of the United States is 
                measured.''.
          (7) In section 8502(a)(3), by striking ``not on the high 
        seas'' and inserting: ``not beyond 3 nautical miles from the 
        baseline from which the territorial sea of the United States is 
        measured''.
          (8) In section 8503(a), by striking paragraph (2) and 
        inserting the following:
          ``(2) is operating--
                  ``(A) in internal waters of the United States, or
                  ``(B) within 3 nautical miles from the baseline from 
                which the territorial sea of the United States is 
                measured.''.

SEC. 302. PENALTIES FOR INTERFERING WITH THE SAFE OPERATION OF A 
                    VESSEL.

  (a) In General.--Section 2302 of title 46, United States Code, is 
amended--
          (1) by amending the section heading to read as follows:

``Sec. 2302. Penalties for negligent operations and interfering with 
                    safe operation'';

          and
          (2) in subsection (a) by striking ``that endangers'' and 
        inserting ``or interfering with the safe operation of a vessel, 
        so as to endanger''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 23 of title 46, United States Code, is amended by striking the 
item relating to section 2302 and inserting the following:

``2302. Penalties for negligent operations and interfering with safe 
operation.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. VESSEL IDENTIFICATION SYSTEM AMENDMENTS.

  Title 46, United States Code, is amended--
          (1) in section 12102(a), by striking ``or is not titled in a 
        State'';
          (2) in section 12301, by adding at the end the following:
  ``(c) A documented vessel shall not be titled or required to display 
numbers under this chapter by a State, and any certificate of title 
issued by a State for a documented vessel shall be surrendered in 
accordance with regulations prescribed by the Secretary.
  ``(d) The Secretary may approve the surrender under subsection (c) of 
a certificate of title covered by a preferred mortgage under section 
31322(d) of this title only if the mortgagee consents.'';
          (3) in section 31322--
                  (A) by amending subsection (b) to read as follows:
  ``(b) Any indebtedness secured by a preferred mortgage that is filed 
or recorded under this chapter, or that is subject to a mortgage or 
instrument that is deemed to be a preferred mortgage under subsection 
(d) of this section, may have any rate of interest to which the parties 
agree.''; and
                  (B) in subsection (d), by amending paragraph (3) to 
                read as follows:
  ``(3) A preferred mortgage under this subsection continues to be a 
preferred mortgage even if the vessel is no longer titled in the State 
where the mortgage or instrument granting a security interest became a 
preferred mortgage under this subsection.''; and
          (4) in section 31325--
                  (A) in subsection (b)(1), by inserting ``a vessel 
                titled in a State,'' after ``a vessel to be documented 
                under chapter 121 of this title,'';
                  (B) in subsection (b)(3), by inserting ``a vessel 
                titled in a State,'' after ``a vessel for which an 
                application for documentation is filed under chapter 
                121 of this title,''; and
                  (C) in subsection (c), by inserting ``a vessel titled 
                in a State,'' after ``a vessel to be documented under 
                chapter 121 of this title,''.

SEC. 402. CONVEYANCE OF COAST GUARD RESERVE TRAINING FACILITY, 
                    JACKSONVILLE, FLORIDA.

  (a) In General.--Notwithstanding any other provision of law--
          (1) the land and improvements thereto comprising the Coast 
        Guard Reserve training facility in Jacksonville, Florida, is 
        deemed to be surplus property; and
          (2) the Commandant of the Coast Guard shall dispose of all 
        right, title, and interest of the United States in and to that 
        property, by sale, at fair market value.
  (b) Right of First Refusal.--Before a sale is made under subsection 
(a) to any other person, the Commandant of the Coast Guard shall give 
to the city of Jacksonville, Florida, the right of first refusal to 
purchase all or any part of the property required to be sold under that 
subsection.

SEC. 403. DOCUMENTATION OF CERTAIN VESSELS.

  (a) General Waiver.--Notwithstanding section 27 of the Merchant 
Marine Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of June 19, 
1886 (46 App. U.S.C. 289), and sections 12106 and 12108 of title 46, 
United States Code, the Secretary of Transportation may issue a 
certificate of documentation with appropriate endorsement for each of 
the following vessels:
          (1) SEAGULL (United States official number 1038605).
          (2) BAREFOOT CONTESA (United States official number 285410).
          (3) PRECIOUS METAL (United States official number 596316).
          (4) BLUE HAWAII (State of Florida registration number 
        FL0466KC).
          (5) SOUTHERN STAR (United States official number 650774).
          (6) KEEWAYDIN (United States official number 662066).
          (7) W.G. JACKSON (United States official number 1047199).
          (8) The vessel known as hopper barge E-15 (North Carolina 
        State official number 264959).
          (9) MIGHTY JOHN III (formerly the NIAGARA QUEEN, Canadian 
        registration number 318746).
          (10) MAR Y PAZ (United States official number 668179).
          (11) SAMAKEE (State of New York registration number NY 4108 
        FK).
          (12) NAWNSENSE (United States official number 977593).
  (b) Ownership of Vessel PHILADELPHIA.--Notwithstanding section 2 of 
the Shipping Act, 1916 (46 App. U.S.C. 802, 803) and section 
12102(a)(4) of title 46, United States Code, the parent corporation of 
the corporation holding title to the vessel PHILADELPHIA (United States 
official number 654192) on May 3, 1995, is deemed on that date and 
thereafter to be a citizen of the United States for purposes of owning 
corporations whose vessels are eligible for documentation under chapter 
121 of title 46, United States Code, with a coastwise endorsement, if--
          (1) the chief executive officer of the parent corporation is 
        a citizen of the United States;
          (2) the chairman of the board of directors of the parent 
        corporation is a citizen of the United States, and the number 
        of its directors who are noncitizens does not exceed a minority 
        of the number necessary to constitute a quorum;
          (3) the parent corporation meets the stock ownership 
        requirements of section 2 of the Shipping Act, 1916, for 
        operating a vessel in the coastwise trade;
          (4) the corporation holding title is otherwise eligible to 
        own a vessel operated in the coastwise trade; and
          (5) the vessel is otherwise eligible to be operated in the 
        coastwise trade.
  (c) SUNMAR SKY.--Section 1120(g) of the Coast Guard Authorization Act 
of 1996 (Public Law 104-324; 110 Stat. 3978) is amended by inserting 
``SUNMAR SKY (United States official number 683227),'' after 
``vessels''.

SEC. 404. CONVEYANCE OF COAST GUARD FACILITY IN NAHANT, MASSACHUSETTS.

  (a) Authority To Convey.--
          (1) In general.--The Secretary of Transportation may convey, 
        by an appropriate means of conveyance, all right, title, and 
        interest of the United States in and to the property comprising 
        United States Coast Guard Recreation Facility Nahant, 
        Massachusetts, to the town of Nahant, Massachusetts.
          (2) Identification of property.--The Secretary may identify, 
        describe, and determine the property to be conveyed under this 
        section.
  (b) Terms and Conditions.--Any conveyance of property under this 
section shall be made--
          (1) without payment of consideration; and
          (2) subject to the terms and conditions the Secretary 
        considers appropriate.

SEC. 405. UNREASONABLE OBSTRUCTION TO NAVIGATION.

  Notwithstanding any other provision of law, the liftbridge over the 
back channel of the Schuylkill River in Philadelphia, Pennsylvania, is 
deemed to unreasonably obstruct navigation for purposes of the Act 
entitled ``An Act to provide for the alteration of certain bridges over 
navigable waters of the United States, for the apportionment of the 
cost of such alterations between the United States and the owners of 
such bridges, and for other purposes'', approved June 21, 1940 (chapter 
409; 33 U.S.C. 511-523), popularly known as the ``Hobbs Bridge Act'' 
and the ``Truman-Hobbs Bridge Act''.

SEC. 406. FINANCIAL RESPONSIBILITY FOR OIL SPILL RESPONSE VESSELS.

  Section 1004(a)(2) of the Oil Pollution Act of 1990 (33 U.S.C. 
2704(a)(2)) is amended by inserting ``including a vessel responding to 
a discharge of substantial threat of a discharge of oil,'' after 
``vessel,''.

SEC. 407. CONVEYANCE OF COAST GUARD PROPERTY TO JACKSONVILLE UNIVERSITY 
                    IN JACKSONVILLE, FLORIDA.

  (a) Authority To Convey.--
          (1) In general.--The Secretary of Transportation may convey 
        to Jacksonville University, located in Jacksonville, Florida, 
        without consideration, all right, title, and interest of the 
        United States in and to the property comprising the Long Branch 
        Rear Range Light, Jacksonville, Florida.
          (2) Identification of property.--The Secretary may identify, 
        describe, and determine the property to be conveyed under this 
        section.
  (b) Terms and Conditions.--Any conveyance of any property under this 
section shall be made--
          (1) subject to the terms and conditions the Commandant may 
        consider appropriate; and
          (2) subject to the condition that all right, title, and 
        interest in and to property conveyed shall immediately revert 
        to the United States if the property, or any part thereof, 
        ceases to be used by Jacksonville University.

SEC. 408. PENALTY FOR VIOLATION OF INTERNATIONAL SAFETY CONVENTION.

  (a) In General.--Section 2302 of title 46, United States Code, is 
amended by adding at the end the following new subsection:
  ``(e)(1) A vessel may not transport cargoes sponsored by the United 
States Government if--
          ``(A) the vessel has been detained by the Secretary for 
        violation of an international safety convention to which the 
        United States is a party, and the Secretary has published 
        notice of that detention in an electronic form, including the 
        name of the owner of the vessel; or
          ``(B) the owner of the vessel has had more than one vessel 
        detained by the Secretary for violation of an international 
        safety convention to which the United States is a party, and 
        the Secretary has published notice of that detention in an 
        electronic form, including the name of the owner of the vessel.
  ``(2) The prohibition in paragraph (1) expires for a vessel 1 year 
after the date of the publication in electronic form on which the 
prohibition is based.''.
  (b) Effective Date.--The amendment made by subsection (a) takes 
effect January 1, 1998.

SEC. 409. COAST GUARD CITY, USA.

  The community of Grand Haven, Michigan, shall be recognized as 
``Coast Guard City, USA''.

SEC. 410. CONVEYANCE OF COMMUNICATION STATION BOSTON MARSHFIELD 
                    RECEIVER SITE, MASSACHUSETTS.

  (a) Authority To Convey.--
          (1) In general.--The Secretary of Transportation may convey, 
        by an appropriate means of conveyance, all right, title, and 
        interest of the United States in and to the Coast Guard 
        Communication Station Boston Marshfield Receiver Site, 
        Massachusetts, to the Town of Marshfield, Massachusetts.
          (2) Limitation.--The Secretary shall not convey under this 
        section the land on which is situated the communications tower 
        and the microwave building facility of that station.
          (3) Identification of property.--(A) The Secretary may 
        identify, describe, and determine the property to be conveyed 
        to the Town under this section.
          (B) The Secretary shall determine the exact acreage and legal 
        description of the property to be conveyed under this section 
        by a survey satisfactory to the Secretary. The cost of the 
        survey shall be borne by the Town.
  (b) Terms and Conditions.--Any conveyance of property under this 
section shall be made--
          (1) without payment of consideration; and
          (2) subject to the following terms and conditions:
                  (A) The Secretary may reserve utility, access, and 
                any other appropriate easements on the property 
                conveyed for the purpose of operating, maintaining, and 
                protecting the communications tower and the microwave 
                building facility.
                  (B) The Town and its successors and assigns shall, at 
                their own cost and expense, maintain the property 
                conveyed under this section in a proper, substantial, 
                and workmanlike manner as necessary to ensure the 
                operation, maintenance, and protection of the 
                communications tower and the microwave building 
                facility.
                  (C) Any other terms and conditions the Secretary 
                considers appropriate to protect the interests of the 
                United States.

                          Purpose of the Bill

    The primary purpose of H.R. 2204 is to authorize funds for 
the United States Coast Guard for fiscal years 1998 and 1999. 
Funding is authorized for the following accounts within the 
Coast Guard's budget: Operations and Maintenance; Acquisition, 
Construction and Improvement; Research and Development; Retired 
Pay; Alteration of Bridges; and Environmental Compliance.
    This bill also:
          Sets end-of-year strength levels for active duty 
        military personnel and establishes military training 
        levels;
          Removes the $15,000 cap on severance pay for regular 
        Coast Guard warrant officers;
          Allows the Commandant of the Coast Guard to provide 
        for the honorary recognition of individuals and 
        organizations that significantly contribute to Coast 
        Guard programs, missions, or operations;
          Amends the Ports and Waterways Safety Act, and 
        subtitle II of title 46, United States Code, to extend 
        the territorial seas for the purposes of these laws 
        from three to 12 nautical miles from shore;
          Establishes a new civil penalty of $1,000 for a 
        person who interferes with the safe operation of a 
        vessel;
          Amends title 46, United States Code, to enhance the 
        effectiveness of the Coast Guard Vessel Identification 
        System;
          Requires the Secretary of Transportation to sell the 
        Coast Guard Reserve Training Facility in Jacksonville, 
        Florida;
          Waives certain U.S. coastwise trade laws for various 
        vessels;
          Authorizes the Secretary of Transportation to convey 
        the United States Coast Guard Recreation Facility in 
        Nahant, Massachusetts, to the town of Nahant, 
        Massachusetts;
          Deems the Bridge Street Liftbridge in Philadelphia, 
        Pennsylvania, to be an obstruction to navigation;
          Requires that vessels engaged in oil spill response 
        maintain oil spill financial responsibility at the 
        level required for vessels that are not tank vessels;
          Authorizes the Secretary of Transportation to convey 
        the property comprising the Long Branch Rear Range 
        Light in Jacksonville, Florida, to Jacksonville 
        University;
          Recognizes the community of Grand Haven, Michigan as 
        ``Coast Guard City, USA''; and
          Authorizes the Secretary of Transportation to convey 
        the Coast Guard Communication Station Boston Marshfield 
        Receiver Site in Massachusetts to the Town of 
        Marshfield, Massachusetts.

                               Background

    The United States Coast Guard, established in 1915 as part 
of the Department of the Treasury, is responsible for 
performing Federal functions that trace their beginnings back 
to the founding of this country. The Coast Guard assumed the 
duties of five previously established agencies: the Lighthouse 
service, established in 1789; the Revenue Cutter Service, 
established in 1790; the Steamboat Inspection Service, 
established in 1838; the Life-Saving Service, established in 
1848; and the Bureau of Navigation, established in 1884.
    The Coast Guard remained a part of the Department of 
Treasury until 1967, when it was transferred to the newly 
created Department of Transportation.
    Today's Coast Guard has primary responsibility for the 
promotion of safety of life and property at sea; the 
enforcement of all applicable Federal laws on, over, and under 
the high seas and United States waters; the maintenance of aids 
to navigation, the protection of the marine environment; 
icebreaking activities; and the safety and security of vessels, 
ports, waterways, and their related facilities.
    As a military service and a branch of the Armed Forces, the 
Coast Guard also maintains a readiness to operate as a 
specialized service in the Navy upon the declaration of war or 
when the President directs. The Coast Guard has defended our 
Nation in every war since 1790, including the 1990-1991 
conflict in the Persian Gulf.
    The Coast Guard's legal responsibilities have expanded 
enormously over the past 20 years. Many of the laws the Coast 
Guard administers are codified in subtitle II of title 46, 
United States Code. Beyond the broad responsibilities described 
above, the Coast Guard enforces the following laws:
    The Anti-Drug Abuse Acts of 1986 and 1988, which expand the 
Coast Guard's role in waterborne and airborne marine drug 
interdiction.
    The Maritime Drug Law Enforcement Act, which authorizes the 
Coast Guard to search and seize any vessel that is 
manufacturing, distributing, or possessing with the intent to 
manufacture or distribute, any controlled substance in the 
United States.
    The Deepwater Port Act of 1974, which directs the Coast 
Guard to oversee offshore oil port operation and construction.
    The Port and Waterways Safety Act of 1974, which directs 
the Coast Guard to ensure port and merchant vessel safety.
    The Port and Tanker Safety Act of 1978, which authorizes 
the Coast Guard to inspect foreign tankers, evaluate crew 
standards, and monitor offshore lightering activities in U.S. 
waters.
    The Omnibus Diplomatic Security and Antiterrorism Act of 
1986, which requires the Coast Guard to maintain and improve 
port, harbor, and coastal facilities security.
    The Federal Boating Safety Act of 1971, which authorized 
the Coast Guard to prescribe standards for the manufacture of 
pleasure boats and associated equipment.
    The Recreational Boating Safety and Facilities Improvement 
Act of 1980, which established the Recreational Boating and 
Facilities Improvement Fund, which the Coast Guard uses to 
promote recreational boating safety and access through a state 
grant program.
    The Federal Water Pollution Control Act of 1972 (popularly 
know as the Clean Water Act), which requires the Coast Guard to 
regulate discharges of oil and sewage from vessels.
    The Oil Pollution Act of 1990 (POA 90), which expands the 
Coast Guard's authority over oil spills, and establishes a 
comprehensive regime for oil spill compensation, liability, 
response, and research and development.
    The Marine Protection, Research and Sanctuaries Act of 
1972, which gives the Coast Guard enforcement authority over 
ocean dumping and marine sanctuaries.
    The Act to Prevent Pollution from Ships, which requires the 
Coast Guard to administer and enforce international 
environmental pollution agreements through vessel and port 
certification and inspections.
    The Marine Plastic Pollution Research and Control Act of 
1987, which requires the Coast Guard to enforce prohibitions on 
the disposal of plastic materials and other garbage at sea and 
to establish regulations for vessel wastes management.
    The Hazardous Materials Transportation Act, which requires 
the Coat Guard to enforce safety standards for the waterborne 
transportation on hazardous materials.
    The Intervention on the High Seas Act, which authorizes the 
Coast Guard to intervene in situations involving pollution 
discharges on the high seas that pose a threat to the United 
States and its territorial waters.
    The Fishery Conservation and Management Act of 1976, which 
assigns joint responsibility to the Coast Guard and the 
National Marine Fisheries Services to enforce U.S. Fisheries 
laws within the 200-mile Exclusive Economic Zone of the United 
States.
    The Outer Continental Shelf Lands Act Amendments of 1978, 
which authorizes the Coast Guard to enforce environmental and 
safety regulations governing oil and gas development activities 
on the outer Continental Shelf.
    The National Invasive Species Act of 1996, which amended 
the Nonindigenous Aquatic Nuisance Prevention and Control Act 
of 1990 to strengthen and improve the nation's response to 
threats posed by aquatic nuisance species.

                            Committee Action

    On March 19, 1997, the Subcommittee on Coast Guard and 
Maritime Transportation held a hearing on the Clinton 
Administration's fiscal years 1998 and 1999 budget requests for 
the United States Coast Guard and the fiscal year 1998 budget 
request for the Federal Maritime Commission. The Subcommittee 
received testimony from Admiral Robert Kramek, Commandant, U.S. 
Coast Guard; Eric A. Trent, Master Chief Petty Officer, U.S. 
Coast Guard; Everette L. Tucker, Jr., Commodore, U.S. Coast 
Guard Auxiliary; Captain Fred R. Becker, Jr. (Ret.), Reserve 
Officers Association of the U.S.; Cornel Martin, Corporate Vice 
President, American Classic Voyages, and Chairman of the 
Legislative Committee for the Passenger Vessel Association; 
John Schneider, President, National Marine Bankers Association; 
and The Honorable Harold J. Creel, Jr., Chairman, Federal 
Maritime Commission.
    In his testimony, Admiral Kramek explained the importance 
of the Coast Guard's Maritime Safety, Maritime Law Enforcement, 
Marine Environmental Protection, and National Security 
missions. Admiral Kramek stressed the importance of the Coast 
Guard's drug interdiction mission and detailed the success of 
the Coast Guard's Operation FRONTIER SHIELD which denied drug 
smugglers the transit routes into Puerto Rico. As part of this 
operation, the Coast Guard, in coordination with other law 
enforcement agencies, seized seven vessels, arrested 19 people, 
seized over 13,000 pounds of cocaine, and disrupted the 
delivery of an additional 17,000 pounds of cocaine.
    Admiral Kramek's testimony also explained the President's 
FY 1998 budget request. The request represents an increase in 
the Coast Guard's budget of less than two percent over the FY 
1997 appropriated level. The Admiral also discussed the other 
parts of the President's Coast Guard legislative program. This 
proposal included removing the Coast Guard's Chief Warrant 
Officer severance pay cap, giving the Coast Guard enhanced 
tools to attract minority candidates to the Coast Guard 
Academy, using rental automobiles for funerals of eligible 
retired personnel, improving procedures for managing the Coast 
Guard Supply Fund, allowing the expenditure of funds for 
programs that formally recognize individuals and organizations 
who make significant contributions to the Coast Guard, changing 
the procedures for the release of marine casualty reports, and 
extending the territorial seas of the United States from three 
to 12 miles under certain Federal laws.
    Master Chief Petty Officer Eric Trent, who represents the 
34,000 Coast Guard reserve and active-duty enlisted personnel, 
stated that the biggest issue affecting enlisted quality of 
life involves the increased workload of enlisted Coast Guard 
personnel. The enlisted Coast Guard force has decreased more 
than 11 percent, or 3,500 members, in the past three years 
forcing some enlisted members to regularly work 70 to 90 hours 
a week. The Master Chief later discussed what the Coast Guard 
has done in an attempt to mitigate this increased workload such 
as allowing members who have been deployed more than 60 
consecutive days during the previous year, or members denied 
leave due to mission requirements, to carry forward up to 90 
days of leave at the end of the fiscal year and delegating more 
award authority to Commanding Officers to improve the 
timeliness and benefits of personal recognition. Master Chief 
Trent also stressed the importance of Coast Guard parity of 
benefits to the other armed forces.
    National Commodore Everette L. Tucker, Jr., testified about 
the vital function performed by the 34,000 volunteers who serve 
in the U.S. Coast Guard Auxiliary. The Commodore thanked the 
Subcommittee for supporting legislation during the last 
Congress which grants the Commandant of the Coast Guard broad 
authority in using the Auxiliary, while providing adequate 
liability protection to Auxiliary members during the 
performance of their duties. The Commodore also discussed the 
Auxiliary's new program targeting the safety of rental personal 
watercraft. Finally, he stated that the Coast Guard Auxiliary 
is an extremely cost-effective resource for the Coast Guard.
    Captain Fred R. Becker, Jr. (Ret.), from the Reserve 
Officers Association (ROA) of the U.S., expressed his 
organization's strong support for the FY 1998 authorization 
request to maintain the Coast Guard Selected Reserve end-
strength at the 8,000 level. However, he also express the ROA's 
serious concerns that the size of the Coast Guard Reserve is 
only 7,600 members. Captain Becker attributes the end-strength 
shortfall to a failure to devote the requisite assets to 
recruiting Coast Guard Reservists. The ROA believes that the 
Coast Guard active duty force must step forward and take a pro-
active leadership role and direct responsibility for officer 
and enlisted Reservists including important recruiting 
activities.
    Mr. Cornel Martin, representing the Passenger Vessel 
Association, expressed his concerns about the long range cost 
of the Coast Guard's alternative compliance programs. Mr. 
Martin also expressed his support of the Coast Guard's 
Streamlined Inspection Program and the Partnership Action Team. 
He requested that the Subcommittee include provisions in the 
Coast Guard Authorization Act of 1997 which would make 
activities by third parties, who endanger the safe operation of 
a commercial passenger vessel carrying passengers for hire, a 
Federal offense. He also suggested that the Subcommittee direct 
the Coast Guard to develop a data gathering and management 
system which segregates marine incidents by those which are 
directly linked to the operation of a documented commercial 
passenger vessel.
    Mr. John Schneider, president of the National Marine 
Bankers Association, discussed his organization's support for 
enhancing the effectiveness of the Vessel Identification System 
which is currently being developed by the U.S. Coast Guard. The 
Coast Guard is in the prototype stage of developing a Vessel 
Identification System, and has been working closely with the 
system's potential users, including marine law enforcement 
officials and marine bankers. The Coast Guard plans to begin 
operation of the information system in four pilot states in the 
Fall of 1997.
    Federal Maritime Commission Chairman Harold J. Creel, Jr. 
discussed the President's request for the Commission. The FY 
1998 budget request for the Federal Maritime Commission is 
$14.3 million, a $300,000 increase over the FY 1997 
appropriated level. Chairman Creel discussed the Commission's 
authority to level sanctions and other measures to break down 
discriminatory barriers to U.S. companies by foreign countries. 
He explained that on February 26, 1997, the Commission issued a 
final rule imposing fees of $100,000 per voyage on Japanese 
liner operators, effective April 14, 1997, in response to 
unfavorable practices in Japanese ports. The Commission found a 
series of restrictive conditions involving the dominance of the 
harbor services industry in Japan by the Japan Harbor 
Transportation Association (JHTA), an association of Japanese 
waterfront employers. As a result of these conditions, U.S. 
carriers and U.S.-Japan trade are burdened with unreasonably 
high costs and inefficiencies.
    The Commission also found unfavorable conditions with 
regard to the Government of Japan's licensing requirement for 
terminal operators and stevedoring companies, which blocks new 
entrants from entering those industries in Japan and ensures 
that the stevedoring market remains entirely Japanese. Because 
of the restrictivelicensing requirement, U.S. carriers cannot 
perform stevedoring or terminal operating services for themselves or 
third parties in Japan, forcing them to submit their shoreside 
operations to JHTA control. Chairman Creel testifies that, in contrast, 
Japanese carriers (or their related companies or subsidiaries) 
currently perform stevedoring and terminal operating services in Japan 
and the United States. Chairman Creel also stated that he hoped that 
decisive action by the Japanese Government will bring about meaningful 
and comprehensive reforms in the Japanese port services market.
    Finally, Chairman Creel discussed the Commission's concerns 
about the developing maritime policies of the People's Republic 
of China. The Chinese Government recently began implementing 
strict new rate filing and regulation rules, through the newly 
founded ``Shangai Shipping Exchange'' on shipping lines in the 
non-U.S. trades. Chairman Creel stated that the Commission is 
concerned that the Chinese Government may extend this non-
market-oriented approach to shipping regulation to the China-
U.S. trades. He also explained that the Commission is concerned 
that rates charged by U.S. operators may be subject to review 
and disapproval by the same Chinese Government that owns and 
operates the China Overseas Shipping Company (COSCO), one of 
the world's largest and fastest growing liner companies. 
Chairman Creel stated that the Commission intended to use all 
available resources to ensure that Chinese practices do not 
have a discriminatory or destabilizing effect on U.S. shipping 
and commerce.
    On July 16, 1997, the Subcommittee on Coast Guard and 
Maritime Transportation met to mark up a Discussion Draft of 
the Coast Guard Authorization Act of 1997. The Subcommittee 
considered one amendment to the Discussion Draft which was 
offered by Mr. Clement. The amendment prohibits vessels 
detained by the Secretary of Transportation for a violation of 
an international safety standard from carrying U.S. Government-
sponsored cargoes for one year. The provision also prohibits 
all vessels owned by a company that has had more than one 
vessel detained by the Secretary from carrying U.S. Government-
sponsored cargoes for one year. The Clement amendment was 
agreed to by voice vote. The Discussion Draft bill, as amended, 
was ordered reported to the full Committee by voice vote in the 
presence of a quorum.
    The Discussion Draft bill, as amended by the Subcommittee, 
was introduced as H.R. 2204 by Chairman Shuster on July 21, 
1997, with Mr. Oberstar, Mr. Gilchrest, and Mr. Clement as 
cosponsors. The bill was referred to the Committee on 
Transportation and Infrastructure.
    On July 23, 1997, the Transportation and Infrastructure 
Committee met to consider H.R. 2204. The Committee considered 
six amendments. Mr. Oberstar offered an amendment to require 
that the concept evaluation for a replacement vessel for the 
Coast Guard icebreaker Mackinaw, which is authorized in section 
101(2)(A) of the bill, be transmitted to Congress not later 
than April 1, 1998. The Oberstar amendment was agreed to by 
voice vote.
    Mr. Gilchrest offered an amendment to strike section 403(b) 
of H.R. 2204 which would have granted a U.S. coastwise trade 
waiver to the vessel Juan Patricio. The Gilchrest amendment was 
agreed to by voice vote.
    Mr. Metcalf offered an amendment to deem the coastwise 
qualified vessel Sunmar Sky to have been constructed in the 
United States. The Metcalf amendment was agreed to by voice 
vote.
    Mr. McGovern offered an amendment to convey the Coast Guard 
Communication Station Boston Marshfield Receiver Site in 
Massachusetts to the Town of Marshfield, Massachusetts. The 
McGovern amendment was agreed to by voice vote.
    Mr. Ehlers offered an amendment to recognize the community 
of Grand Haven, Michigan, as ``Coast Guard City, USA''. The 
Ehlers amendment was agreed to by voice vote.
    Mr. Taylor offered an amendment to strike five paragraphs 
of section 403(a) of the bill which grant waivers of U.S. 
coastwise trade laws for specific vessels. The Taylor amendment 
was defeated by a show of hands of 40 to 11.
    H.R. 2204, as amended, was ordered reported to the House of 
Representatives by a voice vote in the presence of a quorum.

                Section by Section Analysis of H.R. 2204

                         Section 1. Short Title

    This section states that the Act may be cited as the Coast 
Guard Authorization Act of 1997.

                        Title I--Authorizations

              Section 101. Authorization of Appropriations

    The Administration requests approximately $3.9 billion for 
FY 1998 to fund Coast Guard activities and programs, of which 
approximately $3.8 billion request an authorization. This 
funding level is approximately $150 million more than the 
amounts appropriated for these programs in FY 1997.
    Section 101 of this bill authorizes $3.9 billion for Coast 
Guard activities in FY 1998, which is the level requested by 
the President with an additional $70 million for Coast Guard 
drug interdiction resources, $2 million for the concept design 
of the replacement for the Coast Guard Lakes icebreaker 
MACKINAW, and $6.3 million to correct a discrepancy in an 
earlier calculation of Coast Guard retired pay. Section 101 
also authorizes $4.05 billion for Coast Guard programs in FY 
1999, an increase over the FY 1998 authorized level for drug 
interdiction resources and other Coast Guard operating costs.

Operating expenses

    Section 101(1) of H.R. 2204 authorizes $2.79 billion for 
Coast Guard operating expenses for fiscal year 1998. This is 
the amount requested by the President, with an additional $50 
million for illegal drug interdiction operations. Section 101 
also authorizes $2.85 billion for Coast Guard operating 
expenses for fiscal year 1999. This amount includes the level 
authorized for FY 1998, plus an additional $15 million in 
Operating Expenses for drug interdiction activities, and $49 
million for pay increases and other Coast Guard operating 
costs.
    The President's budget request for Coast Guard operating 
expenses for FY 1998 authorized by this bill is $2.74 billion, 
an increase of $122.3 million over the FY 1997 appropriated 
level, to fund continued operation and maintenance of a wide 
range of multi-mission vessels, aircraft, shore units, and 
aids-to-navigation. The operating expense request includes a 
transfer of $36 million from the Office of the Secretary for 
decentralization of General Services Administration (GSA) rent, 
and net funding increases of $86.3 million (3.3%) for certain 
programs. Increases include funds for the FY 1998 pay raise of 
2.8 percent, other cost of living allowances, and operational 
cost increases including funds to operate new Coast Guard 
cutters, aircraft, and facilities. Specifically, the request 
for Coast Guard activities and programs contains increases of 
$11.3 million to operate new cutters and facilities, $24.6 
million for workforce support initiatives, and $34.3 million in 
Coast Guard drug interdiction activities. The drug interdiction 
initiatives include increased deployments of helicopters aboard 
high endurance cutters and medium endurance cutters, increased 
patrol hours for shore-based aircraft, additional patrol boat 
maintenance to support increased patrol hours, reactivation of 
two jet intercept aircraft, satellite communications for patrol 
boats, and increased intelligence gathering and training.
    The Administration's FY 1998 proposal also includes 
operating expense reductions of $54.8 million for other 
programs. The reduction is composed of $23.8 million in Coast 
Guard program reductions and $31 million in additional 
streamlining initiatives, beyond those sustained in FY 1997. 
These reductions include: (1) the annualization of part-year 
savings arising from the reduction of about 850 military and 
civilian full-time equivalent (FTE) positions in FY 1997; (2) 
decommissioning of five buoy tenders; (3) additional savings 
from the move from Governors Island; (4) additional logistics 
and management savings; and, (5) savings from the completion of 
a comprehensive reorganization of the structure at Coast Guard 
Headquarters, district, and field offices.
    The Committee is concerned that the level of Coast Guard 
drug interdiction has fallen well below the level necessary to 
effectively fight the War on Drugs. The Committee believes that 
the $34 million increase in drug interdiction resources 
requested by the President is not adequate to respond to the 
alarming rise in teenage drug use in this country. H.R. 
contains an increase of approximately $100 million over fiscal 
years 1998 and 1999, which will restore the resources cut from 
the Coast Guard interdiction mission in the early 1990's.
    The Committee is convinced by recent evidence that 
effective drug interdiction raises the street price of drugs, 
driving drug use down. Federal programs that get at the problem 
before the drugs arrive in this country by sea and air routes 
only account for about twelve percent of the President's 
Federal drug spending budget of about $15 billion. Working with 
foreign nations, these expenditures result in the seizure of 
about a third of the world's illicit drug production. Some 
experts doubt that relationship exists between drug seizures 
and price on the street, a correlation expected from the law of 
supply and demand. To examine this issue, the President 
commissioned a study about the effectiveness of cocaine 
interdiction from the Institute for Defense Analysis. The 
study, released this January, found a clear, strong link 
between supply disruptions and rising street prices for cocaine 
in the United States. When street prices rise, use falls, 
especially among casual users. The Committee believes that the 
results of this study are especially significant, especially as 
we focus on ways to eliminate teenage drug use. The Committee 
has concluded that the level of drug interdiction provided in 
this bill will ensure that sufficient Federal resources are 
devoted to this valuable mission to fight and win the War on 
Drugs.

Acquisition, construction, and improvements

    Section 101(2) of this bill authorizes the President's 1998 
request for the Coast Guard's acquisition, construction, and 
improvement account, with an additional $20 million for the 
acquisition of additional drug interdiction assets and $2 
million for the redesign work for the Coast Guard Great Lakes 
Icebreaker Mackinaw. This section also authorizes $440 million 
for FY 1999 to provide addition drug interdiction assets and 
$11 million for the Mackinaw replacement project.
    The Committee is pleased that the Coast Guard is ready to 
enter the concept evaluation phase of determining the best 
method of providing long-term heavy icebreaking capability on 
the Great Lakes, consistent with the Commandant's commitment to 
this critical service. Despite a half-century of superior 
performance, the 53-year old Mackinaw either needs to be 
replaced or re-engined. This evaluation will consider which of 
the following four options will provide the best heavy 
icebreaking capability: (1) re-engine and retrofit the 
Mackinaw; (2) build a new icebreaker to the Mackinaw's 
specifications and capabilities; (3) build a new multi-mission 
icebreaker that can break heavy ice in the winter and tend 
aids-to-navigation in the Great Lakes during the other seasons; 
or (4) strengthening the new Juniper class buoy tender to also 
break heavy ice. Given the icebreaking experiments that have 
been conducted to date, the Committee does not believe that 
Juniper class buoy tenders, even with ice strengthening, have 
the capability to meet the heavy icebreaking needs of the Great 
Lakes. The Great Lakes icebreaking mission is vital to 
supplying the U.S. steel industry, the automobile industry, 
public utilities, and State governments with coal, raw 
materials, salt, during the beginning and end of the Great 
Lakes shipping season. Given the long lead-time it takes to 
build a new ship, this project must not be delayed another 
year. Construction of a multi-mission heavy icebreaker will 
decrease the Coast Guard's operating cost by having a vessel 
that can carry out important missions on a year-round basis and 
by having lower personnel levels on the vessel than on the 
Mackinaw. Therefore, the Committee has authorized $2 million 
for fiscal year 1998 for the concept evaluation phase and $11 
million in fiscal year 1999 to begin the actual engineering and 
design of the replacement vessel. The concept evaluation is 
required to be submitted to Congress by April 1, 1998 to ensure 
that sufficient information is available to provide funding for 
the engineering and design phase of this project in fiscal year 
1999.
    The Administration's request for Coast Guard acquisitions 
for FY 1998 authorized by this bill is $379 million, a $4.2 
million (1.1%) increase over the amount appropriated in FY 
1997, to build and improve the Coast Guard's vessel, aircraft 
and boat fleets, shore facilities, and information management 
resources. The FY 1998 request includes $88 million for the 
production of replacement coastal and seagoing buoy tenders and 
small buoy servicing boats, $37.3 million for replacement of 
coastal patrol boats, $21.6 million for the 47-foot motor 
lifeboat replacement project, $26.4 million for aircraft 
replacement and maintenance, and $69 million for the 
improvement and construction of shore facilities and aids to 
navigation. The budget also calls for spending $49.7 million on 
the Coast Guard's communications and information processing 
systems, including a Fleet Logistics System, a Ports and 
Waterways Safety System, and the Marine Information for Safety 
and Law Enforcement System. Approximately $47 million is 
requested to fund 675 military and civilian acquisition 
personnel.
    Also authorized by this bill is the Administration's 
proposal to spend $5.5 million during FY 1998 on the new Ports 
and Waterways Safety System (PAWSS). PAWSS is a latest version 
of the project formerly know as Vessel Traffic Service (VTS) 
2000, which was terminated last year. The Committee supports 
the process that the Coast Guard has employed to develop the 
PAWSS project. By working closely with industry stakeholders in 
developing a general consensus, the Coast Guard has determined 
that Automated Information System (AIS) technology should be 
the foundation on any future VTS system. The AIS technology 
employs on-board transponders, electronic charts, and 
Differential Global Positioning System technology to provide 
direct, vessel-to-vessel, voiceless electronic data 
communications. The Committee strongly believes that this 
technology will significantly improve navigational safety, not 
just in select VTS target ports, but throughout the navigable 
waters of the United States. The Committee encourages the Coast 
Guard to continue working with its PAWSS stakeholders, during 
the development and implementation of this national system, to 
ensure that it provides the greatest amount of navigational and 
environmental safety for the broadest geographical area at the 
lowest cost to the American taxpayers.

Research and development

    Section 101(3) authorizes $19.5 million for Coast Guard 
research and development for FY 1998 and $19 million for FY 
1999. This is the level requested by the President for Coast 
Guard Research and Development, with an additional $500,000 in 
FY 1998 to accelerate the Coast Guard's ongoing fuel cell 
research efforts.

Retired pay

    Section 101(4) authorizes $652 in FY 1998 and $692 in FY 
1999 for Coast Guard retired pay. These funds provide annuities 
and medical care for retired military personnel and former 
Lighthouse Service members, their dependents, and survivors.

Alteration of bridges

    The Coast Guard's alteration of bridges program provides 
the Federal government's share of the costs for altering or 
removing bridges determined to be obstructions to navigation. 
Under the Truman-Hobbs Act of 1940, (33 U.S.C. 511 et seq.), 
the Coast Guard shares, with the bridge owner, the cost of 
altering railroad and publicy-owned highway bridges which 
obstruct the free movement of vessel traffic.
    The Administration's Intermodal Surface Transportation 
Efficiency Act (ISTEA) reauthorization proposal recommends that 
the funding for the alteration of obstructive highway and 
railroad bridges be provided by the Federal Highway 
Administration. Under the proposal, the Secretary would make 
available $17 million in FY 1998 for the alteration of two 
railroad and four highway bridges which have been determined to 
be unreasonable obstructions to navigation.
    Section 101(5) of H.R. 2204 authorizes $17.3 million in FY 
1998 and $20 million in FY 1999 for the Coast Guard's current 
bridge program. The FY 1998 authorization includes funds for 
the removal of the Sooline and Milwaukee Road Swing Bridge in 
Oshkosh, Wisconsin.

Environmental compliance

    Section 101(6) authorizes $21 million for FY 1998 to 
mitigate environmental problems resulting from the operation of 
former and current Coast Guard facilities, and to ensure that 
Coast Guard facilities are in compliance with applicable 
environmental laws and regulations. This is the amount 
requested by the President, and is $1 million belowthe level 
appropriated in FY 1997. Section 101 further authorizes $21 million for 
environmental compliance and restoration in FY 1999.

Other matters

            Merchant mariners' documents
    The Committee is concerned with how the Coast Guard is 
implementing the Merchant Mariners' Document (MMD) 
requirements, particularly in the Great Lakes area. Although 
there is a question as to whether MMDs are necessary for 
personnel in positions other than those relating to navigation 
and safety, the Committee does not believe that legislation is 
necessary, at this time, to address the problems resulting from 
delays in issuing MMDs. Rather, the Committee believes that an 
administrative solution proposed by the Coast Guard should 
first be attempted.
    Current law requires all employees working onboard U.S. 
vessels (except those operating on inland rivers) to have MMDs 
(46 U.S.C. Sec. 8701). The Committee believes that the recent 
sharp increase in these non-navigation employees working 
onboard vessels on the Great Lakes has overtaxed Coast Guard 
resources and has resulted in a huge backlog in the issuance of 
statutorily required MMDs to these personnel and to merchant 
mariners serving aboard other commercial vessels. This backlog, 
especially at the Coast Guard's Regional Examination Center in 
Toledo, Ohio, has led to serious hiring and compliance problems 
for both employers and employees.
    At present, processing time for an entry level MMD, for 
which the Coast Guard assesses a $35 user fee, is approximately 
four to six weeks from the date of application to receipt of 
the temporary MMD. This places an undue hardship on employees 
who cannot afford to wait up to six weeks to begin to work and 
on employers who must fill positions in a timely manner to 
operate effectively. To expedite the processing of this 
increased workload the Coast Guard is issuing temporary ``MMD 
Letters'' in lieu of issuing a permanent, laminated card. Even 
so, issuance of a temporary MMD letter still takes four to six 
weeks. While these temporary MMD letters enable employees to 
work onboard a casino vessel (but no other vessel), the letters 
have created an administrative burden for employers, employees, 
and also the Coast Guard, which checks for compliance with MMD 
requirements during quarterly, annual, and random Coast Guard 
inspections. The letters also have created a compliance problem 
for employers stemming from the Coast Guard's interpretation of 
the statutory requirement for an individual to ``have'' an MMD.
    The Coast Guard has interpreted the statutory requirement 
for an individual to ``have'' an MMD to mean having the MMD 
``physically on the person'' and has threatened civil penalties 
for failure to do so. The Committee believes that this 
interpretation is incorrect--MMDs need not be carried on one's 
person to comply with the law. Regardless, a permanent MMD 
typically would be worn with an employee's identification badge 
and thus would be readily available for verification. However, 
because permanent MMD cards are not being timely issued, the 
Coast Guard has taken the position that the letters (which 
cannot be affixed to an employee's identification badge) must 
be carried on the employee's person or otherwise kept on file 
by the employers so that the Coast Guard can verify that the 
employees have MMDs. Carrying a letter on one's person is often 
difficult for onboard personnel as most casino uniforms do not 
have pockets due to casino regulations and the failure to do so 
should not subject an individual to enforcement action. 
Further, by law, the Coast Guard, not the employer, is required 
to maintain records on each MMD issued (46 U.S.C. Sec. 7319). 
Thus, the Coast Guard may not impose or threaten to impose 
civil penalties for failure to have an MMD on one's person. 
Penalties may only be imposed if the individual has not 
properly obtained an MMD.
    After numerous discussions with the Coast Guard, the 
Committee intends to give the Coast Guard the opportunity to 
solve the MMD problem administratively. First, the Coast Guard 
will ensure that temporary MMDs are issued within two to three 
days of application. Second, the Coast Guard will establish a 
system to eliminate the backlog currently at the Regional 
Examination Center in Toledo, Ohio. This includes eliminating 
the backlog in MMD applications and in issuing permanent MMD 
cards. Third, the Coast Guard will continue its efforts to 
develop long-term solutions relating to problems with licensing 
and documentation procedures. The Committee expects this 
administrative solution to be fully and quickly implemented. 
The Committee, however, will monitor the Coast Guard's progress 
and then determine whether a legislative solution is necessary 
and appropriate.
            Vegetable oil regulatory relief
    In enacting the Edible Oil Regulatory Reform Act (P.L. 104-
55), Congress intended that Federal agencies recognize the 
differences between animal fats and vegetable oils from other 
oils and provide regulatory relief from the burdens of various 
environmental statutes, such as the Oil Pollution Act of 1990 
and the Federal Water Pollution Control Act. Those statutes 
were enacted to regulate petroleum oil and other toxic oils and 
hazardous substances. Because of the broad definition of oil 
those statutes apply to animal fats and vegetable oils as well. 
The Edible Oil Regulatory Reform Act was enacted to clarify 
Congressional intent that agencies responsible for the 
regulation of animal fats and vegetable oils, under those laws, 
should consider and recognize the differences in these oils and 
structure different regulatory requirements based on those 
differences. The Act did not provide an exemption for animal 
fats and vegetable oils from any laws, but merely clarified 
Congressional intent that the agencies exercise common sense in 
prescribing regulations that apply to these oils.
    Last year, because the Coast Guard had taken no regulatory 
action to implement the requirements of the Edible Oil 
Regulatory Reform Act, Congress included a sense of Congress in 
the Coast Guard Authorization Act of 1996 (P.L. 104-324, Sec. 
1130) which specifically provided that (1) agencies must 
recognize differences between animal fats and vegetable oils 
and other oils in regulations and (2) the Secretary of 
Transportation must submit annual reports to Congress on the 
Coast Guard's differentiation efforts. Despite Congress' 
repeated efforts, the Coast Guard has still not developed and 
finalized regulations under the OPA 90-mandated oil spill 
response planning requirement that properly recognize the 
differences between animal fats and vegetable oils with other 
oils.
    The Coast Guard has been working with industry to develop 
regulations that meet the requirements of both OPA 90 and the 
Edible Oil Regulatory Reform Act. On March 14, 1997, the 
industry filed with the Coast Guard a petition for rulemaking, 
with a draft regulation that would satisfy Congressional 
intent. A response was received on June 3, 1997, which stated 
that the Coast Guard ``agreed, in concept, to revisit the 
issue'' of animal fat/vegetable oil differentiation. Although 
the Coast Guard letter indicated that a rulemaking would be 
initiated ``without delay,'' a Notice of Proposed Rulemaking is 
not expected to be published until later in the Fall of 1997, 
with a final rule not being issued until after consideration of 
the comments received on the docket. While the Coast Guard 
should be complimented for the work it has done to date, a 
prolonged rulemaking processdoes not serve the interests of 
Congress, the industry, or the environment. The Coast Guard is strongly 
urged to work expeditiously to finalize regulations that meet the clear 
intent of Congress as expressed in the Edible Oil Regulatory Reform Act 
and the Coast Guard Authorization Act of 1996.

    SECTION 102. AUTHORIZED LEVELS OF MILITARY STRENGTH AND TRAINING

    This section authorizes a Coast Guard end-of-year strength 
of 37,994 active duty military personnel at the end of FY 1998 
and 38,038 active duty military personnel at the end of FY 
1999.
    The Committee notes the unique capabilities of the Coast 
Guard Reserve and the value of the Coast Guard Reserve to 
augment the active duty Coast Guard and the Department of 
Defense in times of national emergency, and is concerned that 
the Coast Guard Reserve's end-strength has fallen significantly 
below the authorized and appropriated levels for FY 1996 and FY 
1997.
    Although the Coast Guard has made an effort to recruit 
Reservists, it has recruited only 65 percent of the authorized 
Reserve force in FY 1996 and only 32 percent of its month 
Reserve goals in FY 1997. In addition, the Coast Guard has not 
applied the existing bonus programs to recruit Reservists at 
authorized levels.
    The Committee directs that a report on the Coast Guard's 
Reserve recruiting efforts be submitted to the Committee, no 
later than January 1, 1998, addressing the difficulties 
encountered in recruiting Reservists and recommending any 
additional initiatives that may require Congressional action to 
facilitate the recruitment of Coast Guard Reservists at 
authorized levels.

                    Title II--Coast Guard Management

      SECTION 201. REMOVAL OF CAP ON WARRANT OFFICER SEVERANCE PAY

    This section removes the $15,000 cap on severance pay for 
regular Coast Guard warrant officers. Currently, the severance 
pay for other regular Coast Guard officers, Coast Guard 
enlisted members, and all members of the Department of Defense 
(DOD) services, including DOD warrant officers, is based on a 
formula consisting of rank and years of service, with no 
explicit cap. This provision will provide for adequate 
separation compensation for Coast Guard warrant officers, as 
well as provide Coast Guard warrant officers with equity and 
parity within the Coast Guard and with the other military 
services.

          SECTION 202. AUTHORITY TO IMPLEMENT AWARDS PROGRAMS

    Section 202 of this bill allows the Commandant of the Coast 
Guard to provide for the honorary recognition of individuals 
and organizations that significantly contribute to Coast Guard 
programs, missions or operations. Specifically, this section 
allows the Commandant to purchase nominal award items, 
authorize other means of honorary recognition, and pay for 
reasonable ceremony and presentation expenses.

                        Title III--Marine Safety

       SECTION 301. EXTENSION OF TERRITORIAL SEA FOR CERTAIN LAWS

    This section amends the Ports and Waterways Safety Act, and 
subtitle II of title 46, U.S. Code, by extending the 
territorial sea for these laws from three to 12 nautical miles 
from shore. Presidential Proclamation 5928 of December 27, 
1988, issued by President Reagan, extended the territorial seas 
to 12 nautical miles to advance important U.S. national 
security interests. This section conforms the application of 
the territorial seas in these two domestic maritime laws with 
Presidential Proclamation 5928.
    Section 301 of this bill expands the jurisdiction of the 
Ports and Waterways Safety Act (PWSA) (33 U.S.C. 1222 et seq.) 
and subtitle II of title 46 by broadening the scope of 
application of these laws from three to 12 nautical miles as 
measured from the baselines of the United States. This is 
accomplished by making definition changes to the applicable 
statutes which amend the terms ``navigable waters'' and 
``territorial sea'' to include the definition of ``territorial 
sea'' contained in Presidential Proclamation 5928 of December 
27, 1988. Presidential Proclamation 5928 was issued by 
President Reagan and extended the territorial sea of the United 
States from three nautical miles to 12 nautical miles, although 
only for international purposes. This action was consistent 
with the now widely ratified 1982 United Nations Convention on 
the Law of the Sea which allows States (nations) to establish a 
territorial sea not to exceed 12 nautical miles. However, the 
Proclamation specifically disclaimed any intention to ``extend 
or otherwise alter existing Federal or State law or any 
jurisdictional rights, legal interests, or obligations derived 
therefrom.'' Prior to the Proclamation, the United States 
claimed a three nautical mile territorial sea over which it 
exercised sovereignty. With the Proclamation, our sovereignty 
was extended to 12 nautical miles. The disclaimer, however, 
appears to be a recognition that while the President has the 
authority to expand our territory and sovereignty, only 
Congress has the authority to exercise legislative 
jurisdiction. Thus, to date, each of the laws being amended 
here have been enforced only to the limit of the three nautical 
mile territorial sea. Important environmental protection and 
safety matters would be advanced if the Coast Guard had 
authority to enforce these laws out to 12 nautical miles.
    Recent events have emphasized the need for expanding the 
scope of application of various laws primarily enforced by the 
U.S. Coast Guard. Congress has indicated that it wants the 
Coast Guard to board potentially unsafe foreign vessels before 
they enter our ports and harbors. Extension of the U.S. Coast 
Guard's authority to 12 nautical miles, under the Ports and 
Waterways Safety Act and other shipping laws under subtitle II 
of title 46, will allow the Coast Guard to board substandard 
foreign vessels farther from our shore than under current 
authority. An expanded territorial area would improve our 
ability to intercept maritime traffic when necessary for 
reasons of safety or environmental protection. It is emphasized 
that these amendments do not impose additional or new 
requirements for the maritime community. Rather, the scope of 
application of existing requirements is simply being expanded 
from three to 12 nautical miles.
    Congress exercised similar legislative jurisdiction when it 
passed the Antiterrorism and Effective Death Penalty Act of 
1996. In that Act, Congress expanded the territorial sea out to 
12 nautical miles for purposes of criminal jurisdiction. 
Similarly, with regard to the two laws referenced above, the 
definition changes constitute a further exercise of legislative 
jurisdiction extending coverage out to 12 nautical miles in a 
mannerthat is consistent with the Presidential Proclamation and 
generally accepted international law. It is further noted that each of 
the two laws being amended contain criminal provisions. It is 
inconsistent to have the ability to exercise criminal jurisdiction out 
to 12 nautical miles for the criminal laws included by Congress in 
1996, but not have the authority to issue vessel movement orders which 
themselves are subject to criminal sanctions under the laws we are 
proposing to amend in this section.
    Subsection (a) of section 301 of this bill adds a new 
definition of ``navigable waters of the United States'' to the 
definition sections, section 102, of the Ports and Waterways 
Safety Act. This new definition will indicate that the 
navigable waters extend to 12 nautical miles from the baseline 
by including in this definition the definition of ``territorial 
sea'' as set forth in Presidential Proclamation 5928 of 
December 27, 1988. This will enable the Coast Guard to 
establish vessel operating requirements including vessel 
traffic systems, for all U.S. and foreign vessels within the 
12-mile territorial sea. This will also clarify the area in 
which the Captain of the Port can direct a vessel to operate or 
anchor, establish safety zones to protect the navigable waters, 
protect the nation from terrorism, and investigate vessel 
casualties. In addition, the Coast Guard will be able to keep 
out of the expanded territorial sea vessels with a history of 
accidents, pollution incidents, or serious repair problems and 
vessels that discharge oil or hazardous substances or that are 
improperly manned. Currently, these substandard vessels may 
approach as close as three nautical miles to our coast before 
they can be instructed not to enter our waters. This additional 
area of legislative jurisdiction will enable the Cost Guard, 
through its Port State Control Program, to deal more 
effectively with substandard foreign flag vessels seeking to 
enter our ports.
    Because of the Ports and Waterways Safety Act's application 
to just three nautical miles, the Coast Guard has, on occasion, 
been limited in its ability to take all necessary steps to 
ensure maritime safety in situations just off our coasts. For 
example, in 1995, two freight vessels, the N/V ENIF and the M/V 
ALEXIA collided four and one-half miles off the Louisiana 
coast. Unable to free themselves, the two vessels posed a 
threat to nearby offshore platforms. They also discharged 
bunker fuel that threatened the nearby coastline. While the 
Coast Guard responded, it had no authority to establish a 
safety zone to protect those involved in the operation. 
Instead, the Coast Guard was limited to simply issuing a Notice 
to Mariners which had no enforcement authority. In addition, 
the Coast Guard relied upon the Ports and Waterways Safety Act 
to investigate this marine casualty (primarily because it had 
no authority under subtitle II of title 46). The Coast Guard's 
authority to investigate this marine accident under the Ports 
and Waterways Safety Act was successfully challenged in 
District Court but this decision was subsequently reversed by 
the Circuit Court of Appeals. Had the Act clearly applied to 
all marine casualties within 12 nautical miles, this issue 
would never have arisen and this costly litigation would have 
been avoided. In addition, rescue operations similar to TWA 
Flight 800 that occur between three and 12 nautical miles will 
also benefit from the expanded scope of application of the 
Ports and Waterways Safety Act. By clarifying the Coast Guard's 
authority under the Ports and Waterways Safety Act, maritime 
safety and marine environmental protection will be enhanced.
    Expanding the definition of navigable waters for purposes 
of the Ports and Waterways Safety Act will not affect innocent 
passage through our territorial sea or transit passage through 
the navigable waters of the United States which form part of an 
international strait.
    Subsection (b) of section 301 of this bill amends subtitle 
II of title 46 to apply, unless specifically exempted as a 
result of an amendment in this subsection, the extended 
territorial sea to all the vessel safety and shipping laws in 
subtitle II. These amendments do not impose any new or 
additional requirements but merely expand the application of 
current requirements from 3 to 12 nautical miles. Subtitle II 
covers negligent vessel operations, marine casualty 
investigations, manning of commercial vessels, and recreational 
boating safety programs. Expanding the application of subtitle 
II out to 12 nautical miles will enhance the Coast Guard's 
ability to fully implement its Port State Control Program. the 
specific amendments are discussed below.
    Paragraph (1) inserts a new definition of ``navigable 
waters of the United States'' in section 2101 of title 46, 
United States Code. As amended, the term will include all 
waters of the 12 nautical mile territorial sea of the United 
States.
    Paragraph (2) amends section 2301 of title 46 by declaring 
that ``waters subject to the jurisdiction of the United 
States'' include all waters of the 12 nautical mile territorial 
sea of the United States. This amendment expands the authority 
of the Coast Guard to control and assess civil penalties and 
criminal sanctions against persons operating foreign vessels 
negligently in U.S. waters.
    Paragraph (3) amends section 4102(e) of title 46 to ensure 
that the Coast Guard regulations for manned uninspected 
vessels, including the number and type of emergency locating 
equipment required, will continue to apply beyond three miles 
from the baseline of the United States, an area which is no 
longer considered high seas.
    Paragraph (4) amends section 4301(a) of title 46 by 
including within a new definition of ``waters subject to the 
jurisdiction of the United States'' all waters of the 12 
nautical mile territorial sea. The amendment enhances the 
current authority of the Coast Guard to regulate recreational 
vessel safety in the expanded U.S. waters, such as enforcing 
carriage requirements and terminating unsafe operations.
    Paragraph (5) amends section 4502(a)(7) of title 46 by 
striking ``on vessels that operate on the high seas'' and 
inserting ``beyond 3 nautical miles from the baselines from 
which the territorial sea of the United States is measured''. 
The amendment enables the Coast Guard to continue to require 
emergency position indicating radio beacons on vessels which 
operate beyond three nautical miles from the baseline from 
which the territorial sea measured, thus enhancing navigation 
safety.
    Paragraph (6) amends section 4506(b) of title 46 by 
inserting new language to indicate that commercial fishing 
vessels are only exempt from Coast Guard regulations under this 
chapter if they are operating in internal waters of the United 
States or within 3 nautical miles from the baseline of the 
United States, but are not exempt if they are operating between 
3 and 12 nautical miles, formerly, but no longer, an area of 
the high seas.
    Paragraph (7) amends section 8502(a)(3) of title 46 to 
indicate that the requirement for federal pilots on coastwise 
seagoing vessels continues to apply to vessels operating within 
three nautical miles from the baseline of the United States.
    Paragraph (8) amends section 8503(a)(2) of title 46 to 
indicate that the Coast Guard may continue to require a federal 
pilot on a self-propelled vessel if a pilot is not required by 
state law and the vessel is operating within three nautical 
miles from the baseline of the United States.

  section 302. penalties for interfering with the safe operation of a 
                                 vessel

    Section 302 of this bill amends section 2302(a) of title 
46, United States Code, to establish a new civil penalty of 
$1,000 for a person who interferes with the safe operation of a 
vessel, so as to endanger the life, limb, or property of a 
person. Activities subject to this penalty may include jumping 
off a commercial passenger vessel while the vessel is in 
operation, interfering with the duties of the master or other 
crew members, or operating a vessel in a manner which 
interferes with the safe operation of another vessel.
    The Committee is concerned about the lack of enforcement 
action against persons who ``jump the wakes'' of passenger 
vessels in violation of the existing prohibition under section 
2302(a) of title 46 against operating a vessel in a negligent 
manner. While the Committee is aware of numerous efforts by the 
Coast Guard Auxiliary and others to educate the boating public 
about the dangers of these practices, direct enforcement action 
against this activity should be taken by the Coast Guard if 
this unsafe activity is to be curtailed. The Committee urges 
the Coast Guard to make a concerted effort to improve the 
safety of our nation's waterways by enhancing its enforcement 
action against this activity.
    The Committee is also concerned that the existing Coast 
Guard marine casualty reporting system, by failing to segregate 
marine casualties directly tied to the operation of a 
commercial passenger vessel, has led to an incomplete and 
inaccurate picture of the industry's safety record. The 
Committee directs the Coast Guard to develop a marine casualty 
reporting system that segregates marine casualties so that the 
data accurately reflects the safety record of the passenger 
vessel industry and other regulated segments of the merchant 
vessel industry.

                        Title IV--Miscellaneous

          section 401. vessel identification system amendments

    Section 401, of this bill amends several sections in title 
46, United States Code, to enhance the effectiveness of the 
Vessel Identification System currently being developed by the 
Coast Guard. Under chapter 125 of title 46, the Secretary of 
Transportation is required to establish a vessel identification 
system to make available certain information for use in law 
enforcement and for other purposes relating to the ownership of 
vessels in the United States. The Coast Guard is in the 
prototype stage of developing a Vessel Identification System 
(VIS), and has been working closely with the system's potential 
users, including marine law enforcement officials and marine 
bankers. The Coast Guard plans to begin operation of the 
information system in four pilot states in the fall of this 
year.
    Originally conceived as a crime prevention initiative, the 
VIS ultimately will aid law enforcement, provide a higher level 
of protection for consumers, and promote financing for 
recreational vessels in this country. The system will record 
key data on every recreational vessel registered in or imported 
into the country, and will make this information available 
``on-line'' to authorized users.
    Section 401(1) of this bill amends section 12102(a) of 
title 46 to delete language that makes a vessel titled in a 
state ineligible for Federal documentation. Section 401(2) of 
this bill requires that a State title be surrendered to the 
Secretary of Transportation when a vessel receives a Federal 
document. Section 403(3)(A) of this section provides that 
mortgages deemed to be preferred under section 31322(d) of 
title 46 may have the rate of interest to which the parties 
agree. Section 403(3)(B) ensures that a mortgage deemed to be 
preferred under section 31322(d) of title 46 does not lose that 
status simply because the vessel is no longer titled in the 
state where the mortgage became preferred. Finally, section 
403(4) of this bill extends the ability of a vessel mortgagee 
to enforce a preferred mortgage covering a vessel titled in a 
State in a civil action ``in rem''.
    The Committee is pleased to note that the Coast Guard has 
appointed a project coordinator, Captain Michael Rosecrans, to 
coordinate the various Coast Guard rulemakings related to the 
implementation of the VIS. It is necessary for the various 
branches within the Coast Guard to work together and with 
interested parties outside the Coast Guard to implement the 
VIS, including State boating law administrators, the marine 
manufacturing and retailing industry, recreational boaters, and 
the maritime bar. In order for the public to derive the 
benefits contemplated by the VIS project, it is imperative that 
the Coast Guard move forward with the implementing regulations 
promptly and in a coordinated manner. This approach will gain 
the State support necessary to implement the VIS successfully.

   SECTION 402. CONVEYANCE OF COAST GUARD RESERVE TRAINING FACILITY, 
                         JACKSONVILLE, FLORIDA

    Section 402 of this bill requires the Secretary of 
Transportation to dispose of by sale, at fair market value, the 
land and improvements comprising the Coast Guard Reserve 
Training Facility in Jacksonville, Florida. The section also 
gives the right of first refusal to purchase the property to 
the city of Jacksonville.

             SECTION 403. DOCUMENTATION OF CERTAIN VESSELS

    Section 403(a) of this bill waives certain U.S. coastwise 
trade laws for the following vessels:

                          Seagull (H.R. 1899)

    H.R. 1899 was introduced by the Honorable Joe Scarborough 
on June 16, 1997, to authorize the Secretary of Transportation 
to issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Seagull.
    The Seagull, U.S. official number 1038605, is a 47-foot 
vessel for which no information concerning the place of 
construction is available. The vessel owner plans to employ the 
vessel in conducting commercial fishing tours carrying a 
maximum of six passengers.

                     Barefoot Contessa (H.R. 1750)

    H.R. 1750 was introduced by the Honorable Tillie Fowler on 
May 22, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Barefoot Contessa.
    The Barefoot Contessa, U.S. official number 285410, is a 
62.9-foot, 48-ton yacht. The vessel is custom designed and was 
built in 1961. While the vessel's hull was manufactured in 
England, 90 percent of the vessel was completed in the U.S. at 
Hodgeon Brothers in East Boothday, Maine. The vessel's current 
remodeling and refurbishing is being done in Jacksonville, 
Florida. The vessel owner plans to charter the vessel as a 
passenger yacht.

                       Precious Metal (H.R. 1589)

    H.R. 1589 was introduced by the Honorable Michael Forbes on 
May 13, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade and fisheries 
for the vessel Precious Metal.
    Precious Metal, U.S. official number 596316, is a 32-foot 
recreational fishing boat which was constructed in Canada. The 
owner plans to use the vessel to begin a small fishing charter 
boat business.

                        Blue Hawaii (H.R. 1552)

    H.R. 1552 was introduced by the Honorable Bill Young on May 
7, 1997, 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 Blue 
Hawaii.
    Blue Hawaii, State of Florida registration number FL0466KC, 
is a 39-foot vessel built in Taiwan in 1978. The owner plans to 
use the vessel on the Great Lakes to carry passengers to fish 
and sightsee.

                       Southern Star (H.R. 1528)

    H.R. 1528 was introduced by the Honorable Carolyn Maloney 
on May 1, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Southern Star.
    The Southern Star, U.S. official number 650774, is a 42-
foot sailing vessel constructed in Italy. The owner plans to 
charter the vessel as a passenger vessel.

                         Keewaydin (H.R. 1314)

    H.R. 1314 was introduced by the Honorable Porter Goss on 
April 10, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Keewaydin.
    The Keewaydin, U.S. official number 662066, is a sailboat 
built in New Zealand. The owner plans to charter this passenger 
sailing vessel.

                        W.G. Jackson (H.R. 1030)

    H.R. 1030 was introduced by the Honorable Peter Hoekstra on 
March 11, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel, W.G. Jackson.
    The W.G. Jackson, U.S. official number 1047199, is a 64-
foot research vessel which was built in Canada. This floating 
laboratory vessel is owned and operated by Grand Valley State 
University. It is used as a floating laboratory for the 
University's outreach education program involving students, 
youth groups, civic groups and others in the community with 
interest in the Great Lakes' aquatic environment.

                      Hopper Barge E-15 (H.R. 999)

    H.R. 999 was introduced by the Honorable Walter Jones on 
March 6, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for a hopper 
barge.
    Hopper barge E-15, North Carolina State official number 
264959, is a commercial barge which was built in Maryland in 
1952. The vessel lost its trading privileges because at some 
point the barge had been sold to individuals who were not U.S. 
citizens. The small marine contractor who owns the barge plans 
to use this vessel in North Carolina.

                      Mighty John III (H.R. 1825)

    H.R. 1825 was introduced by the Honorable Marcy Kaptur on 
June 5, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Mighty John III.
    The Mighty John III, Canadian registration number 318746, 
is a 43.9-foot, 25 ton, self-propelled tug which was built in 
Toronto, Canada, in 1962. Geo. Gradel Company, a marine 
construction contractor headquartered in Ohio, purchased this 
vessel in 1993 unaware that the vessel could not be registered 
in the United States. The vessel has been laid up since 
1994.The company intends to use this tug to move barges loaded 
with construction materials and equipment.

                         Mar Y Paz (H.R. 2008)

    H.R. 2008 was introduced by the Honorable Jerry Weller on 
June 21, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Mar Y Paz.
    The Mar Y Paz, U.S. official number 668179, is a 57-foot 
sailboat which was built in New Zealand in 1972. The owner 
plans to operate vessel as a passenger charter vessel.

                          Samakee (H.R. 2033)

    H.R. 2033 was introduced by the Honorable Jack Quinn on 
June 24, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the coastwise trade for the 
vessel Samakee.
    The Samakee, State of New York registration number NY 4108 
FK, is a 34-foot passenger vessel which was built in Taiwan. 
The owner plans to operate the vessel as a two person passenger 
cruise vessel on the New York State Canal.

                         Nawnsense (H.R. 1618)

    H.R. 1618 was introduced by the Honorable Martin Meehan on 
May 14, 1997, to authorize the Secretary of Transportation to 
issue a certificate of documentation with appropriate 
endorsement for employment in the fisheries for the vessel 
Nawnsense.
    The Nawnsense, U.S. official number 977593, is a 40-foot 
vessel which was built in Taiwan. The owners plan to continue 
to use this vessel as a recreational vessel, but would like the 
authority to engage in commercial fisheries activities.
    Section 403(b) of this bill clarifies an ambiguity with 
respect to the citizenship of certain officers of the parent of 
the corporation holding title to the U.S. flag vessel, 
Philadelphia (United States official number 654192). The 
applicable statutes require, in the case of a corporation, that 
the ``president or other chief executive officer'' be a U.S. 
citizen. The Coast Guard has interpreted the conjunction ``or'' 
to mean ``and'' by requiring that both a corporation's 
president and chief executive officer be U.S. citizens. 
Although the chief executive officer of the parent company of 
the owner of the Philadelphia is a U.S. citizen, the president 
is not. Section 403(b) provides that the subsidiaries of this 
parent company may continue to document vessels notwithstanding 
the citizenship of the president of the parent, provided that 
the chief executive officer of the parent is a citizen of the 
United States, and that the customary requirements are met.
    Section 403(c) deems the coastwise qualified vessel Sunmark 
Sky to have been constructed in the United States.

      section 404. conveyance of coast guard property in nahant, 
                             massachusetts

    Section 404 of this bill authorizes the Secretary of 
Transportation to convey the property comprising the United 
States Coast Guard Recreation Facility in Nahant, 
Massachusetts, to the town of Nahant, Massachusetts.

          section 405. unreasonable obstruction and navigation

    Section 405 of this bill deems the Bridge Street Liftbridge 
in Philadelphia, Pennsylvania, to be an obstruction to 
navigation, eligible for funding under the Coast Guard's 
Truman-Hobbs bridge alteration program.

  SECTION 406. FINANCIAL RESPONSIBILITY FOR OIL SPILL RESPONSE VESSELS

    Section 406 of this bill requires that vessels engaged in 
oil spill response must maintain financial responsibility at 
the level required for vessels other than oil tank vessels.

    SECTION 407. CONVEYANCE OF COAST GUARD PROPERTY TO JACKSONVILLE 
                  UNIVERSITY IN JACKSONVILLE, FLORIDA

    Section 407 of this bill authorizes the Secretary of 
Transportation to convey the property comprising the Long 
Branch Rear Range Light in Jacksonville, Florida, to 
Jacksonville University.

 SECTION 408. PENALTY FOR VIOLATION OF INTERNATIONAL SAFETY CONVENTION

    Section 408 of this bill prohibits a vessel from 
transporting government-impelled cargoes if the vessel had been 
detained by the Coast Guard for violation of an international 
safety convention to which the United States is a party or if 
the vessel is owned by a person that has had more than one 
vessel detained by the Secretary in the previous year. Notice 
of these detentions must be made available in an electronic 
form, including the name of the owner or the vessel. The vessel 
will be prohibited from transporting cargoes for one year from 
the date of electronic publication of the detention of that 
vessel or the publication of the last vessel owned by that 
company that was detained. The Coast Guard currently maintains 
a Port State Control Web page on the Internet that lists all of 
the foreign-flag vessels to which this section applies.
    According to the Coast Guard, 69 of the 476 vessels 
detained in 1996 (14%) carried U.S. Government preference 
cargoes between 1992-1997 and 22 of the owners or operators 
that had multiple vessels detained in 1996 also transported 
government cargoes between 1992-1997. Why should one Federal 
agency be detaining a vessel for violation of an international 
safety convention, while another agency hires that vessel to 
transport its good?
    The Committee believes it will be very easy for Government 
agencies to examine these lists when transportation services 
are being acquired to transport Government cargoes. By making 
this information readily available on the World Wide Web, all 
shippers will be able to review the safety record before they 
hire the vessel to transport their goods. The Committee urges 
the Coast Guard to develop an international list of such 
vessels through the International Maritime Organization. In the 
meantime, the Coast Guard should look at similar Web pages 
sponsored by foreign governments that list vessels they have 
detained, and modify the Coast Guard's Port State Control 
matrix to factor in vessels that have been detained by a 
foreign-government for violation of an international safety 
convention when they decide which vessels entering the United 
States they are going to inspect. For example, if a vessel was 
detained by Great Britain, the Coast Guard may want to conduct 
a follow-up inspection when the vessel arrives in the United 
States.

                   section 409. coast guard city, usa

    Section 409 of this bill recognizes the community of Grand 
Haven, Michigan, as ``Coast Guard City, USA''. Grand Haven 
first demonstrated its affection for the Coast Guard with a 
small community picnic welcoming the Coast Guard Cutter 
Escanaba in 1932. On August 4, 1943, the citizens of Grand 
Haven assembled not only to celebrate Coast Guard Day, but also 
to remember and pay tribute to those who lost their lives in 
service to their country when the Escanaba was sunk in the 
North Atlantic during World War II. The people of Grand Haven 
pay their continuing respect to the Coast Guard with an annual 
Grand Haven Coast Guard Festival, and with a memorial service 
for Coast Guard men and women who died in service aboard the 
Escanaba and performing Coast Guard missions. The Coast Guard 
has expressed its support for official recognition of Grand 
Haven as ``Coast Guard City, USA'' because of its continuing 
close relationship with the community of Grand Haven.

  section 410. conveyance of communication station boston marshfield 
                      receiver site, massachusetts

    Section 410 of this bill authorizes the Secretary of 
Transportation to convey the Coast Guard Communication Station 
Boston Marshfield Receiver Site in Massachusetts to the Town of 
Marshfield, Massachusetts.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives, and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Subcommittee on Coast Guard and Maritime Transportation of 
the Committee on Transportation and Infrastructure held a 
hearing on the Administration's fiscal year 1998 budget request 
for the Coast Guard on March 19, 1997, and the Committee's 
oversight findings and recommendations are reflected in this 
report.

                        Cost of the Legislation

    Clause 7(a) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred by enactment of 
H.R. 2204. However, clause 7(d) of that Rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budge Office 
under section 403 of the Congressional Budget Act of 1974.

                   Constitutional Authority Statement

    Artile 1, section 8 of the Constitution of the United 
States grants Congress the authority to enact H.R. 2204.

                     Compliance with House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, H.R. 
2204 does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2204.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2204 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 31, 1997.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2204, the Coast 
Guard Authorization Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for federal costs), Karen McVey (for the state and local 
impact), and Jean Wooster (for the private-sector impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

H.R. 2204--Coast Guard Authorization Act of 1997

    Summary: H.R. 2204 would authorize appropriations for 
discretionary programs of the U.S. Coast Guard (USCG) for 
fiscal years 1998 and 1999. For 1998, the bill would authorize 
about $3.3 billion, including about $2.8 billion for operating 
expenses, $401 million for acquisition and other capital 
projects, $19.5 million for research activities, $17 million 
for bridge alterations, and $21 million for environmental 
compliance. Fiscal year 1999 authorizations would total about 
$3.4 billion, including $2.9 billion for operations, $440 
million for capital projects, $19 million for research, $20 
million for bridge alterations and $21 million for 
environmental compliance. Of the amounts authorized for each 
year, $48.5 million would be derived from the Oil Spill 
Liability Trust Fund (OSLTF). The bill also would authorize the 
appropriation of $652 million and $692 million, respectively, 
for retirement benefits in 1998 and 1999.
    H.R. 2204 contains no new intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Act of 1995 
(UMRA) and would impose no significant costs on state, local, 
or tribal governments.
    Two provisions of H.R. 2204 could increase federal revenues 
from civil penalties; therefore, pay-as-you-go procedures would 
apply. The budgetary effect of these provisions, however, would 
be negligible. The bill would have no significant effect on 
direct spending.
    Estimated cost to the Federal Government: Assuming 
appropriation of the entire amounts authorized for 
discretionary programs, fiscal year 1998 funding would be $198 
million (or 6 percent) more than the 1997 appropriation.Funding 
for 1999 would grow by an additional 3 percent. The estimated budgetary 
effects of the legislation are summarized in the following table:

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
USCG spending under current law:                                                                                
    Authorization level \1\...................      3,052         29         29          0          0          0
    Estimated outlays.........................      2,807        867        455        120         54         40
Proposed changes:                                                                                               
    Authorization level.......................          0      3,221      3,326          0          0          0
    Estimated outlays.........................          0      2,288      2,797        822        455        117
USCG spending under H.R. 2204:                                                                                  
    Authorization level \1\...................      3,052      3,250      3,355          0          0          0
    Estimated outlays.........................      2,807      3,155      3,251        942        509        157
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 figure is the amount appropriated for programs authorized by this bill. The $29 million shown for  
  1998 and 1999 is the amount already authorized by the Oil Pollution Act of 1990 for appropriations from the   
  OSLTF.                                                                                                        

    The costs of this legislation fall within budget functions 
300 (natural resources and environment) and 400 
(transportation).
    Amounts provided in the bill for Coast Guard retirement 
have not been included in the above table because such pay is 
an entitlement under current law, requiring no annual 
authorization of appropriations.
    Basis of estimate: For purposes of this estimate, CBO 
assumes that H.R. 2204 will be enacted by October 1, 1997, and 
that the full amounts authorized for USCG programs will be 
appropriated for each fiscal year.
    The additional authorizations for 1998 and 1999 are the 
amounts stated in the bill for discretionary accounts, 
excluding $28.5 million of the $48.5 million to be derived from 
the OSLTF. (These amounts, which consist of $25 million for 
Coast Guard operations and $3.5 million for research, have been 
excluded because such amounts are already authorized under 
existing law.) Outlays are estimated on the basis of historical 
spending patterns for Coast Guard programs.
    Two provisions of H.R. 2204 would increase future costs of 
Coast Guard operations and other discretionary programs, 
assuming appropriation of the necessary amounts. First, section 
201 of the bill would increase annual operating expenses by 
removing the $15,000 cap on severance payments for warrant 
officers. In total, CBO estimates the cost of this provision to 
be less than $200,000 per year.
    In addition, section 405 would deem a liftbridge over the 
Schuykill River in Philadelphia, Pennsylvania to be an 
unreasonable obstruction to navigation for purposes of the 
Truman-Hobbs Act, making alteration of the bridge eligible for 
federal funding. In the absence of this provision, the bridge 
probably would be demolished by its current owner, the U.S. 
Navy, at minimal cost to the federal government. Reconstruction 
of the bridge under the Truman-Hobbs Act would cost 
considerably more than demolition--an estimated $20 million to 
$25 million.
    Several other provisions of Title IV would direct the Coast 
Guard to convey certain real property to nonfederal parties. 
With the exception of section 402, all of these would provide 
for the donation of federal property to various units of local 
government or nonprofit organizations. Because none of these 
sites are likely to be sold under current Administration plans, 
their donation would have no effect on the federal budget. 
Section 402 would direct the USCG to sell at fair market value 
a former reserve training facility in Jacksonville, Florida. 
The city of Jacksonville, which currently leases the site from 
the Coast Guard, would be given the right of first refusal. CBO 
estimates that the value of the 3.4-acre site is less than 
$500,000. We further expect that sale of this property also 
would have no effect on the federal budget because the site 
probably would be sold as surplus property in the absence of 
any legislation.
    Other provisions of H.R. 2204 are not expected to have any 
significant impact on the federal budget.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts through 1998.Two provisions of H.R. 2204 could 
affect receipts by increasing civil penalties, but CBO estimates that 
the amount of any new revenues would not be significant.
    Estimated impact on State, local, and tribal governments: 
H.R. 2204 contains no intergovernmental mandates as defined in 
UMRA; however, several provisions would affect state and local 
governments. CBO estimates that, on the whole, the bill's 
provisions, including those discussed above, would benefit 
state and local governments.
    The bill's amendments to the federal Vessel Identification 
System could result in more vessel owners seeking state 
numbering and titling of their boats. It would also shift a 
small number of vessel-related court cases from state to U.S. 
district courts. CBO estimates the budgetary impact of these 
changes would be negligible. Participation of states in vessel 
numbering and titling is voluntary, and states generally charge 
fees to cover the costs of administering the program. CBO 
estimates the changes in court jurisdiction would not 
significantly affect state court costs. Finally, a provision in 
H.R. 2204 would lower the financial responsibility requirements 
for certain oil spill response vessels, some of which are owned 
by state and local governments.
    Estimated impact on the private sector: H.R. 2204 would 
extend from 3 miles to 12 miles the territorial sea of the 
United States for purposes of enforcing the Ports and Waterways 
Safety Act and portions of Title 46 of the United States Code 
(Shipping). Thus, H.R. 2204 would extend the geographical 
coverage of existing private-sector mandates, regarding marine 
safety, on owners or operators of vessels visiting U.S. ports. 
Based on information provided by the Coast Guard, CBO estimates 
that this bill should impose no additional costs on the private 
sector because the same number of ships would be affected as 
under current law.
    Estimate prepared by: Federal Costs: Deborah Reis; Impact 
on State, Local, and Tribal Governments: Karen McVey; and 
Impact on the Private Sector: Jean Wooster.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                    Compliance With Public Law 104-4

    H.R. 2204 contains no unfunded mandates, as defined under 
Public Law 104-4.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, 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 matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 14, UNITED STATES CODE

          * * * * * * *

                      PART I--REGULAR COAST GUARD

          * * * * * * *

                    CHAPTER 5--FUNCTIONS AND POWERS

          * * * * * * *

Sec. 93. Commandant; general powers

  (a) For the purpose of executing the duties and functions of 
the Coast Guard the Commandant may:
          [(a)] (1) maintain water, land, and air patrols, and 
        ice-breaking facilities;
          [(b)] (2) establish and prescribe the purpose of, 
        change the location of, consolidate, discontinue, re-
        establish, maintain, operate, and repair Coast Guard 
        shore establishments;
          [(c)] (3) assign vessels, aircraft, vehicles, aids to 
        navigation, equipment, appliances, and supplies to 
        Coast Guard districts and shore establishments, and 
        transfer any of the foregoing from one district or 
        shore establishment to another;
          [(d)] (4) conduct experiments, investigate, or cause 
        to be investigated, plans, devices, and inventions 
        relating to the performance of any Coast Guard function 
        and cooperate and coordinate such activities with other 
        Government agencies and with private agencies;
          [(e)] (5) conduct any investigations or studies that 
        may be of assistance to the Coast Guard in the 
        performance of any of its powers, duties, or functions;
          [(f)] (6) collect, publish, and distribute 
        information concerning Coast Guard operations;
          [(g)] (7) conduct or make available to personnel of 
        the Coast Guard such specialized training and courses 
        of instruction, including correspondence courses, as 
        may be necessary or desirable for the good of the 
        service;
          [(h)] (8) design or cause to be designed, cause to be 
        constructed, accept as gift, or otherwise acquire 
        patrol boats and other small craft, equip, operate, 
        maintain, supply, and repair such patrol boats, other 
        small craft, aircraft, and vehicles, and subject to 
        applicable regulations under the Federal 
PropertyAdministrative Services Act of 1949 (40 U.S.C. 471 et seq.) 
dispose of them;
          [(i)] (9) acquire, accept as gift, maintain, repair, 
        and discontinue aids to navigation, appliances, 
        equipment, and supplies;
          [(j)] (10) equip, operate, maintain, supply, and 
        repair Coast Guard districts and shore establishments;
          [(l)] (11) establish, equip, operate, and maintain 
        shops, depots, and yards for the manufacture and 
        construction of aids to navigation, equipment, 
        apparatus, vessels, vehicles, and aircraft not normally 
        or economically obtainable from private contractors, 
        and for the maintenance and repair of any property used 
        by the Coast Guard;
          [(m)] (12) accept and utilize, in times of emergency 
        in order to save life or protect property, such 
        voluntary services as may be offered to the Coast 
        Guard;
          [(n)] (13) rent or lease, under such terms and 
        conditions as are deemed advisable, for a period not 
        exceeding five years, such real property under the 
        control of the Coast Guard as may not be required for 
        immediate use by the Coast Guard, the monies received 
        from any such rental or lease, less amount of expenses 
        incurred (exclusive of governmental personal services), 
        to be deposited in the Treasury;
          [(o)] (14) grant, under such terms and conditions as 
        are deemed advisable, permits, licenses, easements, and 
        rights-of-way over, across, in, and upon lands under 
        the control of the Coast Guard when in the public 
        interest and without substantially injuring the 
        interests of the United States in the property thereby 
        affected;
          [(p)] (15) establish, install, abandon, re-establish, 
        reroute, operate, maintain, repair, purchase, or lease 
        such telephone and telegraph lines and cables, together 
        with all facilities, apparatus, equipment, structures, 
        appurtenances, accessories, and supplies used or useful 
        in connection with the installation, operation, 
        maintenance, or repair of such lines and cables, 
        including telephones in residences leased or owned by 
        the Government of the United States when appropriate to 
        assure efficient response to extraordinary operational 
        contingencies of a limited duration, and acquire such 
        real property rights of way, easements, or attachment 
        privileges as may be required for the installation, 
        operation, and maintenance of such lines, cables, and 
        equipment;
          [(q)] (16) establish, install, abandon, reestablish, 
        change the location of, operate, maintain, and repair 
        radio transmitting and receiving stations;
          [(r)] (17) provide medical and dental care for 
        personnel entitled thereto by law or regulation, 
        including care in private facilities;
          [(s)] (18) accept, under terms and conditions the 
        Commandant establishes, the service of an individual 
        ordered to perform community service under the order of 
        a Federal, State, or municipal court[,];
          [(t)] (19) notwithstanding any other law, enter into 
        cooperative agreements with States, local governments, 
        non-governmental organizations, and individuals, to 
        accept and utilize voluntary services for the 
        maintenance and improvement of natural and historic 
        resources on, or to benefit natural and historic 
        research on, Coast Guard facilities, subject to the 
        requirement that--
                  [(1)] (A) the cooperative agreements shall 
                each provide for the parties to contribute 
                funds or services on a matching basis to defray 
                the costs of such programs, projects, and 
                activities under the agreement; and
                  [(2)] (B) a person providing voluntary 
                services under this subsection shall not be 
                considered a Federal employee except for 
                purposes of chapter 81 of title 5, United 
                States Code, with respect to compensation for 
                work-related injuries, and chapter 171 of title 
                28, United States Code, with respect to tort 
                claims;
          [(u)] (20) enter into cooperative agreements with 
        other Government agencies and the National Academy of 
        Sciences; and
          [(v)] (21) require that any member of the Coast Guard 
        or Coast Guard Reserve (including a cadet or an 
        applicant for appointment or enlistment to any of the 
        foregoing and any member of a uniformed service who is 
        assigned to the Coast Guard) request that all 
        information contained in the National Driver Register 
        pertaining to the individual, as described in section 
        30304(a) of title 49, be made available to the 
        Commandant under section 30305(a) of title 49, may 
        receive that information, and upon receipt, shall make 
        the information available to the individual.
  (b) The Commandant may provide for the honorary recognition 
of individuals and organizations, including State and local 
governments and commercial and nonprofit organizations, that 
significantly contribute to Coast Guard programs, missions, or 
operations, by awarding plaques, medals, trophies, badges, and 
similar items to acknowledge that contribution.
          * * * * * * *

                         CHAPTER 11--PERSONNEL

          * * * * * * *

Sec. 286a. Regular warrant officers: severance pay

  (a) * * *
          * * * * * * *
  (d) The acceptance of severance pay under this section does 
not deprive a person of any retirement benefits from the United 
States. However, there shall be deducted from each of his 
retirement payments so much thereof as is based on the service 
for which he has received severance pay under this section, 
until the total deductions equal the amount of such severance 
pay. [However, no person is entitled to severance pay under 
this section in an amount that is more than $15,000.]
          * * * * * * *
                              ----------                              


            SECTION 3 OF THE PORTS AND WATERWAYS SAFETY ACT

  Sec. 3. Definitions.--As uses in this Act, unless the context 
otherwise requires--
          (1) * * *
          * * * * * * *
          (5) ``Navigable waters of the United States'' 
        includes all waters of the territorial sea of the 
        United States as described in Presidential Proclamation 
        5928 of December 27, 1988.
                              ----------                              


                      TITLE 46, UNITED STATES CODE

          * * * * * * *

                    Subtitle II--Vessels and Seamen

                       Part A--General Provisions

          * * * * * * *

                          CHAPTER 21--GENERAL

Sec. 2101. General definitions

  In this subtitle--
          (1) ``associated equipment''--
          * * * * * * *
          (17a) ``navigable waters of the United States'' 
        includes all waters of the territorial sea of the 
        United States as described in Presidential Proclamation 
        5928 of December 27, 1988.
          [(17a)] (17b) ``numbered vessel'' means a vessel for 
        which a number has been issued under chapter 123 of 
        this title.
          * * * * * * *

               CHAPTER 23--OPERATION OF VESSELS GENERALLY

Sec.
2301.  Application.
[2302.  Penalties for negligent operations.]
2302.  Penalties for negligent operations and interfering with safe 
          operation.
     * * * * * * *

Sec. 2301. Application

  Except as provided in section 2306 of this title, this 
chapter applies to a vessel operated on waters subject to the 
jurisdiction of the United States (including the territorial 
sea of the United States as described in Presidential 
Proclamation 5928 of December 27, 1988) and, for a vessel owned 
in the United States, on the high seas.

[Sec. 2302. Penalties for negligent operations]

Sec. 2302. Penalties for negligent operations and interfering with safe 
                    operation

  (a) A person operating a vessel in a negligent manner [that 
endangers] or interfering with the safe operation of a vessel, 
so as to endanger the life, limb, or property of a person is 
liable to the United States Government for a civil penalty of 
not more than $1,000.
          * * * * * * *
  (e)(1) A vessel may not transport cargoes sponsored by the 
United States Government if--
          (A) the vessel has been detained by the Secretary for 
        violation of an international safety convention to 
        which the United States is a party, and the Secretary 
        has published notice of that detention in an electronic 
        form, including the name of the owner of the vessel; or
          (B) the owner of the vessel has had more than one 
        vessel detained by the Secretary for violation of an 
        international safety convention to which the United 
        States is a party, and the Secretary has published 
        notice of that detention in an electronic form, 
        including the name of the owner of the vessel.
  (2) The prohibition in paragraph (1) expires for a vessel 1 
year after the date of the publication in electronic form on 
which the prohibition is based.
          * * * * * * *

              Part B--Inspection and Regulation of Vessels

          * * * * * * *

               CHAPTER 41--UNINSPECTED VESSELS GENERALLY

          * * * * * * *

Sec. 4102. Safety equipment

  (a) * * *
          * * * * * * *
  (e) Each manned uninspected vessel operating [on the high 
seas] beyond 3 nautical miles from the baseline from which the 
territorial sea of the United States is measured or beyond 
three nautical miles from the coastline of the Great Lakes 
shall be equipped with the number and type of alerting and 
locating equipment, including emergency position indicating 
radio beacons, prescribed by the Secretary.
          * * * * * * *

                    CHAPTER 43--RECREATIONAL VESSELS

          * * * * * * *

Sec. 4301. Application

  (a) This chapter applies to a recreational vessel and 
associated equipment carried in the vessel on waters subject to 
the jurisdiction of the United States (including the 
territorial sea of the UnitedStates as described in 
Presidential Proclamation 5928 of December 27, 1988) and, for a vessel 
owned in the United States, on the high seas.
          * * * * * * *

      CHAPTER 45--UNINSPECTED COMMERCIAL FISHING INDUSTRY VESSELS

          * * * * * * *

Sec. 4502. Safety standards

  (a) The Secretary shall prescribe regulations which require 
that each vessel to which this chapter applies shall be 
equipped with--
          (1) * * *
          * * * * * * *
          (7) alerting and locating equipment, including 
        emergency position indicating radio beacons, [on 
        vessels that operate on the high seas] beyond 3 
        nautical miles from the baseline from which the 
        territorial sea of the United States is measured or 
        beyond 3 nautical miles from the coastline of the Great 
        Lakes; and
          * * * * * * *

Sec. 4506. Exemptions

  (a) * * *
  (b) A vessel to which this chapter applies is exempt from 
section 4502(b)(2)(B) of this title if it--
          (1) is less than 36 feet in length; and
          [(2) is not operating on the high seas.]
          (2) is operating--
                  (A) in internal waters of the United States, 
                or
                  (B) within 3 nautical miles from the baseline 
                from which the territorial sea of the United 
                States is measured.
          * * * * * * *

                       Part F--Manning of Vessels

          * * * * * * *

                           CHAPTER 85--PILOTS

          * * * * * * *

Sec. 8502. Federal pilots required

  (a) Except as provided in subsections (g) and (i) of this 
section, a coastwise seagoing vessel shall be under the 
direction and control of a pilot licensed under section 7101 of 
this title if the vessel is--
          (1) not sailing on register;
          (2) underway;
          (3) [not on the high seas] not beyond 3 nautical 
        miles from the baseline from which the territorial sea 
        of the United States is measured; and
          * * * * * * *

Sec. 8503. Federal pilots authorized

  (a) The Secretary may require a pilot licensed under section 
7101 of this title on a self-propelled vessel when a pilot is 
not required by State law and the vessel is--
          (1) engaged in foreign commerce; and
          [(2) operating on the navigable waters of the United 
        States.]
          (2) is operating--
                  (A) in internal waters of the United States, 
                or
                  (B) within 3 nautical miles from the baseline 
                from which the territorial sea of the United 
                States is measured.
          * * * * * * *

                   Part H--Identification of Vessels

                 CHAPTER 121--DOCUMENTATION OF VESSELS

          * * * * * * *

Sec. 12102. Vessels eligible for documentation

  (a) A vessel of at least 5 net tons that is not registered 
under the laws of a foreign country [or is not titled in a 
State] is eligible for documentation if the vessel is owned 
by--
          (1) * * *
          * * * * * * *

              CHAPTER 123--NUMBERING UNDOCUMENTED VESSELS

          * * * * * * *

Sec. 12301. Numbering vessels

  (a) * * *
          * * * * * * *
  (c) A documented vessel shall not be titled or required to 
display numbers under this chapter by a State, and any 
certificate of title issued by a State for a documented vessel 
shall be surrendered in accordance with regulations prescribed 
by the Secretary.
  (d) The Secretary may approve the surrender under subsection 
(c) of a certificate of title covered by a preferred mortgage 
under section 31322(d) of this title only if the mortgagee 
consents.
          * * * * * * *

                    Subtitle III--Maritime Liability

          * * * * * * *

         CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS

          * * * * * * *

Sec. 31322. Preferred mortgages

  (a) * * *
  [(b) A preferred mortgage filed or recorded under this 
chapter may have any rate of interest that the parties to the 
mortgage agree to.]
  (b) Any indebtedness secured by a preferred mortgage that is 
filed or recorded under this chapter, or that is subject to a 
mortgage or instrument that is deemed to be a preferred 
mortgage under subsection (d) of this section, may have any 
rate of interest to which the parties agree.
          * * * * * * *
  (d)(1) A mortgage or instrument granting a security interest 
perfected under State law covering the whole of a vessel titled 
in a State is deemed to be a preferred mortgage if--
          (A) * * *
          * * * * * * *
  [(3) A preferred mortgage under this subsection continues to 
be a preferred mortgage if the vessel is no longer titled in 
the State where the mortgage was made.]
  (3) A preferred mortgage under this subsection continues to 
be a preferred mortgage even if the vessel is no longer titled 
in the State where the mortgage or instrument granting a 
security interest became a preferred mortgage under this 
subsection.
          * * * * * * *

Sec. 31325. Preferred mortgage liens and enforcement

  (a) * * *
  (b) On default of any term of the preferred mortgage, the 
mortgagee may--
          (1) enforce the preferred mortgage lien in a civil 
        action in rem for a documented vessel, a vessel to be 
        documented under chapter 121 of this title, a vessel 
        titled in a State, or a foreign vessel;
          (2) * * *
          (3) enforce the preferred mortgage lien or a claim 
        for the outstanding indebtedness secured by the 
        mortgaged vessel, or both, by exercising any other 
        remedy (including an extrajudicial remedy) against a 
        documented vessel, a vessel for which an application 
        for documentation is filed under chapter 121 of this 
        title, a vessel titled in a State, a foreign vessel, or 
        a mortgagor, maker, comaker, or guarantor for the 
        amount of the outstanding indebtedness or any 
        deficiency in full payment of that indebtedness, if--
                  (A) the remedy is allowed under applicable 
                law; and
                  (B) the exercise of the remedy will not 
                result in a violation of section 9 or 37 of the 
                Shipping Act, 1916 (46 App. U.S.C. 808, 835).
  (c) The district courts have original jurisdiction of a civil 
action brought under subsection (b)(1) or (2) of this section. 
However, for a documented vessel, a vessel to be documented 
under chapter 121 of this title, a vessel titled in a State, or 
a foreign vessel, this jurisdiction is exclusive of the courts 
of the States for a civil action brought under subsection 
(b)(1) of this section.
          * * * * * * *
                              ----------                              


       SECTION 1120 OF THE COAST GUARD AUTHORIZATION ACT OF 1996

SEC. 1120. DOCUMENTATION OF CERTAIN VESSELS.

  (a) * * *
          * * * * * * *
  (g) Vessels Deemed Constructed in United States.--
Notwithstanding any other provision of law, the coastwise 
qualified vessels SUNMAR SKY (United States official number 
683227), COASTAL SEA (United States official number 666754), 
COASTAL NOMAD (United States official number 686157), and 
COASTAL MERCHANT (United States official number 1038382) are 
deemed to have been constructed in the United States as of the 
date of their original delivery.
          * * * * * * *
                              ----------                              


             SECTION 1004 OF THE OIL POLLUTION ACT OF 1990

SEC. 1004. LIMITS ON LIABILITY.

  (a) General Rule.--Except as otherwise provided in this 
section, the total of the liability of a responsible party 
under section 1002 and any removal costs incurred by, or on 
behalf of, the responsible party, with respect to each incident 
shall not exceed--
          (1) * * *
          (2) for any other vessel, including a vessel 
        responding to a discharge of substantial threat of a 
        discharge of oil, $600 per gross ton or $500,000, 
        whichever is greater;
          * * * * * * *