[Senate Report 105-66]
[From the U.S. Government Publishing Office]
Calendar No. 148
105th Congress Report
SENATE
1st Session 105-66
_______________________________________________________________________
VORTICE
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND
TRANSPORTATION
on
S. 662
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 BRYON 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. 148
105th Congress Report
SENATE
1st Session 105-66
_______________________________________________________________________
VORTICE
_______
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. 662]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 662) to authorize a certificate
of documentation with appropriate endorsement for employment in
the coastwise trade for the vessel Vortice, having considered
the same, reports favorably thereon with an amendment in the
nature of a substitute and recommends that the bill as amended
do pass.
PURPOSE OF THE BILL
S. 662 as reported, grants coastwise trading privileges to
the vessel Vortice.
BACKGROUND AND NEEDS
Subject to certain limited exceptions, the law know 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 the Jones Act and title 46 are
statutorily waived. The vessel, Vortice, Bari, Italy
registration number 256, is a 149-foot tug that was constructed
in Houston, Texas in 1976. It is being purchased by Hartley
Marine Services, Inc. of Boothbay Harbor, Maine. Hartley Marine
Services, Inc. intends to use it for commercial tug and barge
operations out of Boothbay Harbor, Maine. Because the vessel is
foreign-owned and foreign-registered, Hartley Marine Services,
Inc. has not been able to obtain coastwise trade privileges for
the Vortice. Therefore, the owner is seeking a statutory waiver
of the coastwise trade laws for the vessel.
LEGISLATIVE HISTORY
S. 662 was introduced in the Senate on March 28, 1996, by
Senator Snowe. In open executive session on June 19, 1997, the
Committee considered S. 662, and ordered the legislation
reported favorably without objection with an amendment in the
nature of a substitute offered by Senator Snowe. The amendment
added the condition that the waiver is not effective until the
vessel meets the ownership requirement of section 2 of the
Shipping Act, 1916 (46 U.S.C. App. 802). This amendment is
necessary because the vessel is currently owned by a Canadian
company.
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. 662, 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 Vortice. S. 662 was ordered reported by the
Senate Committee on Commerce, Science and Transportation on
June 19, 1997.
CBO estimates that enacting S. 662 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. 662 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 provided the
following evaluation of the regulatory impact of the
legislation, as reported.
Because S. 662 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, as amended, consists of one section. It provides
that, notwithstanding sections 12106, 12107, and 12108 of title
46, U.S. Code, and 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 Vortice, Bari, Italy
registration number 256, is eligible to engage in the coastwise
trade and the Secretary of Transportation may issue a
certificate of documentation with appropriate endorsement for
such vessel, if the vessel meets the ownership requirement of
section 2 of the Shipping Act, 1916, (46 U.S.C. App. 802).
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.