[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.

                                
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