[Senate Report 105-316]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 555
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-316
_______________________________________________________________________


 
                                FOILCAT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2096





               September 9, 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 Virginia
KAY BAILEY HUTCHISON, Texas      JOHN F. KERRY, Massachusetts         
OLYMPIA SNOWE, Maine             JOHN B. BREAUX, Louisiana            
JOHN ASHCROFT, Missouri          RICHARD H. BRYAN, Nevada             
BILL FRIST, Tennessee            BYRON L. DORGAN, North Dakota        
SPENCER ABRAHAM, Michigan        RON WYDEN, Oregon                    
SAM BROWNBACK, Kansas                                                 

                     John Raidt, Staff Director
                     Mark Buse, Policy Director
                Martha P. Allbright, General  Counsel
                 Ivan A. Schlager, Democratic Chief 
                      Counsel and Staff Director
            James S. W. Drewry, Democratic General Counsel


                                                       Calendar No. 555
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-316
_______________________________________________________________________


                                 FOILCAT
                                _______
                                

               September 9, 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. 2096]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2096) ``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 FOILCAT'', having considered 
the same, reports favorably thereon with an amendment and 
recommends the bill as amended do pass.

                          purpose of the bill

  S. 2096, as reported, grants coastwise trading privileges to 
the vessel FOILCAT.

                          background and needs

  Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act, 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 FOILCAT, United States official number 1063892, is 
an 82-foot hydrofoil ferry that was constructed in Norway in 
1992. It is owned by Mr. Steven Loui of Honolulu, Hawaii. The 
owner intends to use the vessel for ferry service in Hawaii.
  Because the vessel is foreign-built, the owner has not been 
able to obtain coastwise trade privileges for it. Therefore, 
the owner is seeking a statutory waiver of the Jones Act and 
other laws for the vessel.

                          legislative history

  S. 2096 was introduced in the Senate on May 20, 1998, by 
Senator Inouye. In open executive session on July 9, 1998, the 
Committee considered S. 2096, and ordered the legislation 
reported favorably without objection and with an 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, August 3, 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. 2096, 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 FOILCAT. S. 2096 was ordered reported by the 
Senate Committee on Commerce, Science, and Transportation on 
July 9, 1998.
    CBO estimates that enacting S. 2096 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.
    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. 2096 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 divided into two 
subsections.
    Subsection (a) 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 App. U.S.C. 883), the 
Secretary of Transportation may issue a certificate of 
documentation with appropriate endorsement for employment in 
the coastwise trade for the vessel FOILCAT, United States 
official number 1063892.
    Subsection (b), as amended, provides that the endorsement 
issued under subsection (a) shall terminate on the last day of 
the 36th month beginning after the date on which it was issued. 
As introduced, subsection (b) would have authorized the 
endorsement to be in effect beginning on the date the vessel is 
placed in service to initiate a high-speed marine ferry 
demonstration project and terminating on the last day of the 
36th month beginning after that date. Subsection (b) was 
amended to facilitate the tracking of the vessel's coastwise 
trade employment eligibility by the United States Coast Guard.

                        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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