[Senate Report 105-262]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 492
105th Congress                                                   Report
                                  SENATE

 2d Session                                                     105-262
_______________________________________________________________________


 
                               VESTERHAVET

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 1732





                 July 23, 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. 492
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-262
_______________________________________________________________________


                               VESTERHAVET

                                _______
                                

                 July 23, 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. 1732]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1732) ``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 VESTERHAVEN'', having 
considered the same, reports favorably thereon with an 
amendment and an amendment to the title and recommends that the 
bill do pass.

                          Purpose of the Bill

  S. 1732, as reported, grants coastwise trading privileges to 
the vessel VESTERHAVEN.

                          Background and Needs

  Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act of 1920), 
section 8 of the Act of June 19, 1886, and sections 12106 and 
12108 of title 46, U.S. Code, provide that only those vessels 
built in the United States, continuously documented under the 
laws of the United States and continuously owned by U.S. 
citizens may transport merchandise or passengers in the 
coastwise trade, or engage in the fisheries, of the United 
States.
  Where the facts applicable to a particular vessel suggest the 
U.S.-built or U.S.-owned requirements have not been satisfied, 
the Coast Guard may not issue a document granting coastwise 
trading or fisheries privileges for that vessel unless the 
requirements of those Acts are statutorily waived.
  The vessel VESTERHAVEN, United States official number 979206, 
is a 57-foot sailing trawler that was constructed in Denmark in 
1927. It is owned by Mr. Brett C. Snow of Seattle, WA. The 
owners intend to use the vessel for charters out of west coast 
ports.
  Because the vessel is foreign-built, the owners have not been 
able to obtain coastwise trade privileges for it. Therefore, 
the owners are seeking a statutory waiver of the Jones Act for 
the vessel.

                          Legislative History

  S. 1732 was introduced in the Senate on March 9, 1998, by 
Senator Gorton. In open executive session on March 12, 1998, 
the Committee considered S. 1732, and ordered the legislation 
reported favorably without objection and amended to correct the 
misspelled name of the vessel.

                            Estimated Costs

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

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 27, 1998.
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. 1732, 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 VESTERHAVET. S. 1732 was ordered reported by the 
Senate Committee on Commerce, Science, and Transportation on 
March 12, 1998.
    CBO estimates that enacting S. 1732 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. 1732 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. 1732 does not create any new programs, the 
legislation will have no additional regulatory impact, and will 
result in no additional reporting requirements. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                      Section-by-Section Analysis

  The bill consists of one section. It provides that, 
notwithstanding section 27 of the Merchant Marine Act, 1920 (46 
App. U.S.C. 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, the Secretary of Transportation may issue a 
certificate of documentation with appropriate endorsement for 
employment in the coastwise trade for the vessel VESTERHAVEN, 
United States official number 979206.

                        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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