[Senate Report 105-162]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 308
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-162
_______________________________________________________________________


 
                                ARCELLA

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1272





               February 12, 1998.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred fifth congress
                             second session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon
                       John Raidt, Staff Director
                       Mark Buse, Policy Director
     Ivan A. Schlager, Democratic Chief Counsel and Staff Director
             James S. W. Drewry, Democratic General Counsel



                                                       Calendar No. 308
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-162
_______________________________________________________________________


                                ARCELLA

                                _______
                                

               February 12, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 1272]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1272) ``A Bill to authorize the 
Secretary of Transportation to issue a certificate of 
documentation with appropriate endorsement for employment in 
the coastwise trade for the vessel Arcella'', having considered 
the same, reports favorably thereon without an amendment and 
recommends that the bill do pass.

                          Purpose of the bill

    S. 1272, as reported, grants coastwise trading privileges 
to the vessel Arcella.

                          Background and Needs

    Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 883)), section 8 of the Act of June 19, 1886 (46 
U.S.C. App. 289), and sections 12106 and 12108 of title 46, 
United States Code, provide that only those vessels built in 
the United States, continuously documented under the laws of 
the United States and continuously owned by United States 
citizens may transport merchandise or passengers in the 
coastwise trade, or engage in the fisheries, of the United 
States.
    Where the facts applicable to a particular vessel suggest 
the United States-built or United States-owned requirements 
have not been satisfied, the Coast Guard may not issue a 
document granting coastwise trading or fisheries privileges for 
that vessel unless the requirements of the Jones Act and title 
46 are statutorily waived.
    The vessel, United States official number 1025983, is a 52-
foot motor vessel that was constructed in Taiwan in 1988. It is 
owned by Mr. Christos Erinakes of West Warwick, Rhode Island. 
The owner intends to use it for charters out of Narragansett 
Bay, Rhode Island. The vessel would carry no more than 12 
passengers for hire.
    Because the vessel is partially foreign-built, the owner 
has not been able to obtain coastwise trade privileges for the 
Arcella. Therefore, he is seeking a statutory waiver of the 
coastwise trade laws for the vessel.

                          Legislative History

    S. 1272 was introduced in the Senate on October 8, 1997, by 
Senator Reed. In open executive session on November 4, 1997, 
the Committee considered S. 1272, and ordered the legislation 
reported favorably without objection and without amendment.

                            Estimated Costs

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, November 7, 1997.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed S. 1272, a bill to authorize the Secretary of 
Transportation to issue a certificate of documentation with 
appropriate endorsement for employment in the coastwise trade 
for the vessel Arcella. S. 1272 was ordered reported by the 
Senate Committee on Commerce, Science, and Transportation on 
November 4, 1997.
    CBO estimates that enacting S. 1272 would have no 
significant impact on the federal budget. Because the bill 
would not affect direct spending or receipts, pay-as-you-go 
procedures would not apply. S. 1272 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 and would not affect the 
budgets of state, local, or tribal governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis.
            Sincerely,
                                         June E. O'Neill, Director.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.
  Because S. 1272 does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                      Section-by-Section Analysis

  The bill consists of one section. It provides that, 
notwithstanding sections 12106 and 12108 of title 46, United 
States Code, section 8 of the Act of June 19, 1886 (46 U.S.C. 
App. 289) and section 27 of the Merchant Marine Act, 1920 (46 
U.S.C. App. 883), the vessel Arcella, United States official 
number 1025983, is eligible to engage in the coastwise trade 
and the Secretary of Transportation may issue a certificate of 
documentation for such vessel.

                        Changes in Existing Law

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

                                
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