[Senate Report 105-65]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 147
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-65
_______________________________________________________________________


 
                              FAR HORIZONS

                               __________

                              R E P O R T

                                 of the

                  COMMITTEE ON COMMERCE, SCIENCE, AND

                             TRANSPORTATION

                                   on

                                 S. 542





               September 2, 1997.--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             first 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
     Ivan A. Schlager, Democratic Chief Counsel and Staff Director


                                                       Calendar No. 147
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-65
_______________________________________________________________________


                              FAR HORIZONS

                                _______
                                

               September 2, 1997.--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. 542]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 542) ``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 ``Far Horizons,'' having 
considered the same, reports favorably thereon without an 
amendment and recommends that the bill do pass.


                          purpose of the bill


    S. 542, as reported, grants coastwise trading privileges to 
the vessel Far Horizon.


                          background and needs


    Subject to certain limited exceptions, the law known as the 
Jones Act (section 27 of the Merchant Marine Act, 1920), of the 
Act of June 19, 1886, and sections 12106 and 12108 of section 8 
of title 46, U.S. Code provide that only those vessels built in 
the United States, continuously documented under the laws of 
the United States and continuously owned by U.S. citizens may 
transport merchandise or passengers in the coastwise trade, or 
engage in the fisheries, of the United States. Where the facts 
applicable to a particular vessel suggest the U.S.-built or 
U.S.-owned requirements have not been satisfied, the Coast 
Guard may not issue a document granting coastwise trading or 
fisheries privileges for that vessel unless the requirements of 
the Jones Act and title 46 are statutorily waived. The vessel, 
Far Horizons, U.S. official number 1044011, is a 46-foot 
sailing vessel that was constructed in South Africa in 1993. It 
is being purchased by Far Horizons, Inc. of South Freeport, 
Maine. The vessel's owner intends to use it as a kayak training 
school vessel out of Portland, Maine and the west coast of 
Florida. The vessel would carry no more than 12 passengers for 
hire.
    Because the vessel was foreign-built, the owner has not 
been able to obtain coastwise trade privileges for the Far 
Horizons. Therefore, the owner is seeking a statutory waiver of 
the coastwise trade laws for the vessel.


                          legislative history


    S. 542 was introduced in the Senate on April 9, 1997, by 
Senator Snowe. In open executive session on May 1, 1997, the 
Committee considered S. 542, 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, July 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. 542, 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 Far Horizons. S. 542 was ordered reported by the 
Senate Committee on Commerce, Science, and Transportation on 
May 1, 1997.
    CBO estimates that enacting S. 542 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. 542 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,
                                              James L. Blum
                                   (For 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. 542 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 (24 
Stat. 81, chapter 421, 46 U.S. Code App. 289), and sections 
12106 through 12108 of title 46, U.S. Code, the vessel Far 
Horizons, U.S. official number 1044011, 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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