[Senate Report 110-457]
[From the U.S. Government Publishing Office]
110th Congress
2d Session SENATE Report
110-457
_______________________________________________________________________
Calendar No. 955
MARITIME ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEAR 2009
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2997
September 11, 2008.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
second session
DANIEL K. INOUYE, Hawaii, Chairman
JOHN D. ROCKEFELLER IV, West KAY BAILEY HUTCHISON, Texas
Virginia TED STEVENS, Alaska
JOHN F. KERRY, Massachusetts JOHN McCAIN, Arizona
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California GORDON H. SMITH, Oregon
BILL NELSON, Florida JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey JIM DeMINT, South Carolina
MARK PRYOR, Arkansas DAVID VITTER, Louisiana
THOMAS CARPER, Delaware JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri ROGER F. WICKER, Mississippi
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Advisor and Deputy Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Paul J. Nagle, Republican Chief Counsel
Mimi Braniff, Republican Deputy Chief Counsel
Calendar No. 955
110th Congress Report
SENATE
2d Session 110-457
======================================================================
MARITIME ADMINISTRATION AUTHORIZATION ACT FOR FISCAL YEAR 2009
_______
September 11, 2008.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 2997]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2997) to reauthorize the
Maritime Administration and for other purposes, having
considered the same, reports favorably thereon with amendments
and recommends that the bill (as amended) do pass.
Purpose of the Bill
This legislation is the annual authorization act for the
Maritime Administration (MARAD) within the Department of
Transportation (DOT). The bill would authorize funds for fiscal
year 2009 and amend laws governing the activities of the MARAD.
The bill would improve the Student Incentive Program (SIP),
streamline the application process for the Small Shipyard
Assistance (SSA) Program, and strengthen the enforcement of
cargo preference laws.
Background and Needs
The MARAD was authorized through fiscal year 2008 in the
Department of Defense Authorization Act for FY 2008 (P.L. 110-
181). The MARAD administers U.S. merchant marine support
programs within the DOT, including the Maritime Security
Program (MSP); the Title XI guaranteed loan program; various
cargo preference programs; the SSA program; the maintenance of
the Ready Reserve Force (RRF) and the National Defense Reserve
Fleet (NDRF); and operation of the U.S. Merchant Marine Academy
(USMMA) at Kings Point, New York.
Summary of Provisions
The Maritime Administration Authorization Act for fiscal year
2009 would authorize the USMMA to hire adjunct professors and
would require the USMMA to prescribe a policy on sexual
harassment and sexual violence similar to such policies in the
Department of Defense (DOD) military academies. Also, the bill
would authorize the MARAD to increase the annual payments to
cadets of state maritime academies for the SIP program, as well
as adjust the timing of the award and the terms for which the
payments may be used. Approximately 70 percent of all licensed
officer graduates come from the state maritime academies. There
is a compelling need to assist both the USMMA and the state
maritime academies to meet growing demands for the U.S. armed
forces and the commercial maritime industry.
In addition to authorizing fiscal year 2009 funds for the
MARAD, the bill would modify the provisions under title 46
relating to riding gangs on commercial cargo vessels that are
under DOD contract. This measure would also make improvements
to the SSA program by streamlining grant making processes and
expanding eligibility assistance to medium and small shipyards
that are engaged in the vessel repair and vessel construction
industries. The bill would extend the duration of the marine
war risk insurance program. The bill would place in statute
existing administrative procedures for waivers to the Jones Act
during times of an actual or imminent energy shortage, or when
it is in the interest of national security. Lastly, the bill
would provide the MARAD with appropriate enforcement authority
for the administration of our cargo preference laws.
Legislative History
S. 2997 was introduced by Senator Lautenberg, Senator Smith
and Senator Stevens on May 8, 2008. Senator Inouye was added as
a cosponsor to the bill on May 14, 2008. The Senate Committee
on Commerce, Science and Transportation reported the bill
favorably as amended by a manager's amendment sponsored by
Senator Inouye, Senator Stevens, Senator Lautenberg, and
Senator Smith on May 15, 2008. The staff members assigned to
this legislation are: Dabney Hegg, Democratic Senior
Professional Staff; Todd Bertoson, Senior Republican Counsel;
and Betsy McDonnell, Republican Professional Staff.
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, June 5, 2008.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2997, the Maritime
Administration Act for Fiscal Year 2009.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
S. 2997--Maritime Administration Act for Fiscal Year 2009
Summary: S. 2997 would amend various laws governing the
activities of the Maritime Administration (MARAD) and would
authorize appropriations for that agency for fiscal year 2009.
Assuming appropriation of the amounts authorized for 2009, CBO
estimates that implementing S. 2997 would result in
discretionary outlays of $163 million over the 2009-2013
period. Enacting the bill also could change revenues (primarily
from civil fines) and direct spending (for benefits to certain
longshoremen), but we estimate that any such changes would be
minimal.
The bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no significant costs on state, local, or
tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2997 is shown in the following table.
The costs of this legislation fall within budget function 400
(transportation).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------
2009-
2009 2010 2011 2012 2013 2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level................................. 163 0 0 0 0 163
Estimated Outlays................................... 131 20 13 0 0 163
----------------------------------------------------------------------------------------------------------------
Notes: As discussed below, the authorization levels do not include amounts specifically authorized by the bill
for programs that are already authorized under current law.
Enacting S. 2997 could result in changes in revenues and direct spending, but CBO estimates that such changes
would be insignificant in any year.
Basis of estimate: For this estimate, CBO assumes that S.
2997 will be enacted near the end of fiscal year 2008 and that
the amounts newly authorized by the bill will be appropriated
for 2009. Estimated outlays are based on historical spending
patterns for MARAD activities.
The authorization level shown in the table includes $143
million for MARAD operations, $18 million for the agency's
program to dispose of obsolete vessels in the National Defense
Reserve Fleet, and $2 million for the U.S. Coast Guard to
perform assessments of vessel traffic risk in Alaska. The bill
also would authorize appropriations for other MARAD programs,
including $174 million for subsidies to U.S. flag vessels under
the maritime security program, $19.5 million for reimbursements
to vessel owners for repairs made in U.S. shipyards, $30
million for the cost of making maritime loan guarantees, and $6
million for related administrative costs. Those amounts are not
shown in the table, however, because they are already
authorized under current law.
The bill would strengthen existing rules that govern cargo
preference requirements, clarifying that all federally financed
cargoes are subject to cargo preference laws (which require
that certain percentages of government-sponsored freight be
transported on U.S. flag vessels). Also, the bill would
establish civil penalties for violations of such laws by
shipping companies.
Enacting the bill could result in an increase in civil
penalties collected by MARAD from violators of cargo preference
laws, but CBO estimates that any such increases would be
minimal. Based on information provided by MARAD and other
federal agencies, we estimate that other changes to the cargo
preference law would have no significant impact on the federal
budget because most federal agencies already comply with the
law.
Finally, section 12 would expand an exemption in the
Longshore and Harbor Workers' Compensation Act for individuals
who manufacture, repair, or dismantle recreational vessels.
Enacting this provision could reduce revenues (from fines and
penalties on the shipbuilding industry) and direct spending
(for compensation to individuals), but CBO estimates that such
changes would be insignificant.
Intergovernmental and private-sector impact: S. 2997
contains no intergovernmental or private-sector mandates as
defined in UMRA would impose no significant costs on state,
local, or tribal governments.
Previous CBO estimates: CBO has transmitted several cost
estimates for bills that contained authorizations for
assessments of vessel traffic risk in Alaska, including S.
1892, the Coast Guard Authorization Act for Fiscal Year 2008,
as ordered reported by the Senate Committee on Commerce,
Science, and Transportation on August 2, 2007, and three
versions of H.R. 2830, the Coast Guard Authorization Act of
2007, as ordered reported by the House Committee on
Transportation and Infrastructure (June 28, 2007), the House
Committee on the Homeland Security (September 25, 2007), and
the House Committee on the Judiciary (October 30, 2007). All
four versions of the legislation would authorize the
appropriation of about $2 million for each of fiscal years 2008
and 2009 for assessments of vessel traffic risk in Alaska. The
cost estimate for S. 2997 only includes the 2009 authorization
for the program because CBO assumes that the bill will not be
enacted in time for the 2008 authorization to be appropriated.
On May 20, 2008, CBO transmitted a cost estimate for H.R.
5658, the National Defense Authorization Act for 2009, as
ordered reported by the House Committee on Armed Services on
May 16, 2008. H.R. 5658 also would authorize funding for MARAD
for 2009 but at a lower level than S. 2997. The CBO cost
estimates reflect that difference.
Estimate prepared by: Federal costs: Deborah Reis; Impact
on state, local, and tribal governments: Elizabeth Cove; Impact
on the private sector: Jacob Kuipers.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
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:
NUMBER OF PERSONS COVERED
The number of persons affected by this bill is consistent
with previous MARAD reauthorizations with the exception of
Section 12, which is expected to benefit the repair and boat
manufacturing sectors of the marine recreational industry
consisting of 500,000 workers. Any changes to the personnel at
the USMMA are intended to improve the quality of the experience
for the students and the long-term health of the U.S. merchant
marine.
ECONOMIC IMPACT
Section 12 is expected to have a positive impact on the
economy, particularly the boat repair and boat manufacturing
sectors of the marine recreational industry. In the state of
Florida alone, this industry supports 220,000 jobs and
contributes $18.4 billion to the economy. In recognition of the
modest injury profile of the marine recreational industry, this
section allows thousands of small businesses to cover all or
most of their employees with State workers' compensation
insurance rather than having to pay the considerably higher
premiums required under the Longshore and Harbor Workers'
Compensation Act. These companies would be able to use the
money saved by these considerably lower insurance rates for
their employees benefit, and to compete more effectively with
foreign-based boat repair and manufacturing businesses, helping
to keep jobs in the United States.
PRIVACY
S. 2997 would have minimal effect on the privacy rights of
individuals.
PAPERWORK
The Committee does not anticipate a major increase in
paperwork burdens for individuals or business resulting from
the passage of this legislation.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides the
following identification of congressionally directed spending
items contained in the bill, as reported:
------------------------------------------------------------------------
Section Provision Member
------------------------------------------------------------------------
Section 9................... Vessel traffic Sen. Stevens
risk assessments.
------------------------------------------------------------------------
Section-by-Section Analysis
Section 1. Short title
Section 1 would provide that the legislation may be cited as
the ``Maritime Administration Authorization Act for Fiscal Year
2009.''
Section 2. Adjunct professors at the Merchant Marine Academy
The USMMA uses between 20 and 25 percent adjunct professors
during any one academic trimester. As part of improving the
budget submission process, the USMMA proposes to transition
most of these adjunct professors to direct USMMA employment.
Some adjunct professors may continue to be governed by personal
service contracts. This proposal would clarify the USMMA's
authority to retain the adjunct professors under existing
contracts until their employment is transferred for the 2008-
2009 school year.
Section 3. Actions to address sexual harassment and violence at the
United States Merchant Marine Academy
Section 3 would require the USMMA to prescribe a policy on
sexual harassment and sexual violence applicable to the cadets
and other personnel of the Academy. This requirement would
bring the USMMA into parity with the military academies of the
DOD.
Section 4. Riding gang member requirements
Section 8106 of title 46, United States Code, limits the use
of non-U.S. citizen riding gang members on U.S. flagged
merchant vessels. Section 2101 of title 46, United States Code,
defines a riding gang member as an individual who does not hold
a merchant mariner document, and who is not a regular member of
the ship's crew who performs watch standing duties. The riding
gang member may perform limited functions aboard the ship and
must at all times be supervised by a crew member holding a
merchant mariner document (MMD).
Section 1018 of the John Warner National Defense
Authorization Act for Fiscal Year 2007 prohibited the use of
riding gangs on board vessels under contract by the DOD unless
the Secretary of Defense complied with the limitations for
riding gangs under section 8106 of title 46.
The FY 2007 Defense Authorization Act provided four
exceptions to the contractual requirements: (1) for personnel
associated with the cargo; (2) force protection personnel; (3)
repair technicians; and (4) other personnel required by the
Secretary of Defense to be aboard the vessel other than for
maintenance or operation of the vessel. However, there was no
parallel exception under section 8106.
In order for the DOD to use the exceptions authorized in the
FY 2007 Defense Authorization Act effectively, those exceptions
also must apply to the requirements of title 46. Therefore,
this section would authorize the Secretary of Defense to invoke
the exceptions both under contract and under section 8106 of
title 46. This provision was requested by the DOD.
Section 5. Assistance for small shipyards and maritime communities
Section 5 would make technical modifications to the existing
SSA program established under Section 3506 of the National
Defense Authorization Act for Fiscal Year 2006, P.L. 109-163,
in order to improve the functionality of the grant making
process and to expand the eligibility of small shipyards that
may qualify for assistance under the program.
Section 6. Student Incentive Payment (SIP) program
The SIP program provides financial assistance to qualified
cadets at the six state maritime academies. The SIP program is
voluntary, and it is designed to assist cadets in defraying the
cost of uniforms, books, and subsistence in return for certain
obligations on the part of the cadet. Upon graduation from the
Academy, SIP participants are required to: maintain maritime-
related employment for at least three years; maintain a U.S.
Coast Guard license; maintain a Commission in the Military
Reserve for six years, which includes two active drill weeks
per year; and report employment status annually to the Maritime
Administration. As such, SIP participants help the military
maintain a ready pool of qualified mariners during times of
national emergency. This section would amend section 51509 of
title 46, United States Code, to increase the authorized annual
payments to cadets, adjust the timing of the award, and expand
the terms for which the payments may be used.
Section 7. Marine War Risk Insurance
The MARAD administers a War Risk Insurance Program under 46
U.S.C. 53901 et seq. If commercial war risk insurance is not
available on reasonable terms and conditions from commercial
insurance companies, then the Secretary, with the approval of
the President, may provide two basic types of insurance: (1)
written for commercial vessels that are deemed necessary to
move cargo for a national emergency, and if a vessel was
damaged or lost, the claim is paid out of the DOT's funds; and
(2) written for both U.S. and foreign flag commercial vessels
that are under charter to the military, and if a vessel were
damaged or lost, the DOD indemnifies the DOT for payment of the
claim. The latter authority under 46 U.S.C. 53912 expires
December 31, 2010. Section 7 of the reported bill would extend
war risk insurance authority under section 53912 of title 46,
United States Code, until December 31, 2015.
Section 8. MARAD consultation on Jones Act Waivers
In 1950, a process was authorized in statute to allow for the
DOD to request a waiver of the Jones Act for the transportation
of domestic cargo during times of an actual or imminent energy
shortage, or when it is in the interest of national security.
To facilitate the consideration of waiver requests, the U.S.
Customs Service (now the U.S. Customs and Border Protection
(CBP)), the MARAD, and the Department of Energy (DOE) entered
into a Memorandum of Agreement (MOA). Under the MOA, the MARAD
is responsible for certifying and granting Jones Act waivers
for U.S. flagged vessels when it is in the interest of national
security. The MOA remains in effect today and helps ensure that
waiver decisions are processed timely and efficiently to meet
the demand for emergency transportation of energy products.
This section would amend 46 U.S.C. 501 to apply the terms of
the existing MOA to all waiver requests originating from
outside the DOD. This ensures that national defense interests
are met in the most efficient manner possible. It remains
consistent with the stated U.S. policy, to encourage and aid in
the development and maintenance of a U.S. merchant marine as
necessary for the national defense, and for the development of
the domestic and foreign commerce of the United States.
Section 9. Vessel traffic risk assessments
Section 9 would require the Commandant of the Coast Guard to
prepare two vessel traffic risk assessments; one for Cook
Inlet, Alaska, within one year after the date of enactment of
this Act, and the second for the Aleutian Islands, within two
years after the date of enactment of this Act. Each assessment
would describe both the level of shipping traffic, and the
current and projected routing measures used, including long-
range vessel tracking systems, and the Automatic Identification
System. The assessments also would provide recommendations for
enhancing safety and security of marine shipping. This
provision would authorize $1,800,000 for both fiscal year 2008
and fiscal year 2009 to conduct these assessments.
Section 10. Small Vessel Exception from Definition of Fish Processing
Vessel
Section 10, titled `Small Vessel Exception From Definition of
Fish Processing Vessel,' would modify section 2101 (11b) of
title 46, United States Code, to exclude certain fishing
vessels operating in Alaskan waters that fillet only salmon
taken by that vessel, and fillet less than five metric tons of
such salmon during any seven day period.
Section 11. Transportation in American vessels of government personnel
and certain cargoes
Section 11 would clarify that cargo preference applies to any
person or organization receiving federal funding, unless they
are otherwise exempted. This clarification eliminates confusion
over the application of cargo preference, and it would provide
the Secretary of the DOT with the appropriate enforcement
authority for administrative oversight of cargo preference laws
under subsection 55305(d) of title 46, United States Code. This
section only applies to agencies, organizations, or persons
subject to section 55305, and it makes a technical correction
by conforming the cargo preference year to the fiscal year in
46 U.S.C. 55314(a).
Section 12. Exclusion of certain employee benefits for individuals in
the recreational marine industry
Section 12 would extend the current Longshore and Harbor
Workers' Compensation Act exemption for recreational marine
workers employed to manufacture any recreational vehicle under
165 feet in length, or to repair any recreational vehicle,
including the dismantling of any part of such a vessel
connected to its repair.
Section 13. Authorization of appropriations for fiscal year 2009
Section 13 describes the authorization of appropriations for
the MARAD for fiscal year 2009.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
JOHN WARNER NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2007
SEC. 1018. RIDING GANG MEMBER REQUIREMENTS.
(a) Requirement for Charters and Contracts.--
(1) In general.--The Secretary of Defense may not
award, renew, extend, or exercise an option to extend
any charter of a vessel documented under chapter 121 of
title 46, United States Code, for the Department of
Defense, or any contract for the carriage of cargo by a
vessel documented under that chapter for the Department
of Defense, unless the charter or contract,
respectively, includes provisions that allow riding
gang members to perform work on the vessel during the
effective period of the charter or contract only under
terms, conditions, restrictions, and [requirements
that, except as provided in paragraphs (2) and (3), are
substantially the same as those that apply under
section 8106 of title 46, United States Code, as in
effect immediately before the enactment of this Act,
with respect to a vessel referred to in that section.]
requirements as provided in section 8106 of title 46,
United States Code.
[(2) Limitation.--For purposes of paragraph (1) of
this subsection, subsections (a)(1)(A)(ii), (c), and
(d) of section 8106 of title 46, United States Code,
shall not apply with respect to a charter or contract
referred to in paragraph (1).
[(3) Merchant mariner's document required.--The
Secretary of Defense shall include in the provisions
required under paragraph (1) a requirement that each
riding gang member who performs work on the vessel must
hold a merchant mariner's document issued under chapter
73 of title 46, United States Code.]
[(4)] (2) Riding gang member defined.--In this
subsection the term ``riding gang member'' has the
meaning that term has in section [8106] 2101 of title
46, United States Code, as in effect immediately before
the enactment of this Act.
(b) Exemptions by Secretary of Defense.--
[(1) In general.--The Secretary of Defense may issue
regulations that exempt from the charter or contract
provisions required under subsection (a) any individual
who is on a vessel for purposes other than engaging in
the operation or maintenance of the vessel, including
an individual who is--
[(A) one of the personnel who accompany,
supervise, guard, and maintain unit equipment
aboard a ship, commonly referred to as
supercargo personnel;
[(B) one of the force protection personnel of
the vessel;
[(C) a specialized repair technician; or
[(D) otherwise required by the Secretary of
Defense to be aboard the vessel.]
(1) In general.--Pursuant to regulations issued by
the Secretary of Defense, an individual--
(A) who is aboard a vessel, which is under
charter or contract for the carriage of cargo
for the Department of Defense, for purposes
other than engaging in the operation or
maintenance of the vessel, and
(B) who--
(i) accompanies, supervises, guards,
or maintains unit equipment aboard a
ship, commonly referred to as
supercargo personnel,
(ii) is one of the force protection
personnel of the vessel,
(iii) is a specialized repair
technician, or
(iv) is otherwise required by the
Secretary of Defense to be aboard the
vessel,
shall not be deemed a riding gang member for purposes
of title 46, United States Code.
(2) Background check.--Such regulations shall include
a requirement that any individual who is exempt under
the regulations must pass a background check before
going aboard the vessel, unless the individual holds a
merchant mariner's document issued under chapter 73 of
title 46, United States Code.
(3) Exempted individual not treated as in addition to
the crew.--An individual exempted under paragraph (1)
shall not be counted as an individual in addition to
the crew for the purposes of section 3304 of title 46,
United States Code.
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2006
[SEC. 3506. ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME COMMUNITIES.
[(a) Establishment of Program.--Subject to the availability
of appropriations, the Administrator of the Maritime
Administration shall establish a program to provide assistance
to State and local governments--
[(1) to provide assistance in the form of grants,
loans, and loan guarantees to small shipyards for
capital improvements; and
[(2) for maritime training programs in communities
whose economies are substantially related to the
maritime industry.
[(b) Awards.--In providing assistance under the program, the
Administrator shall--
[(1) take into account--
[(A) the economic circumstances and
conditions of maritime communities; and
[(B) the local, State, and regional economy
in which the communities are located; and
[(2) strongly encourage State, local, and regional
efforts to promote economic development and training
that will enhance the economic viability of and quality
of life in maritime communities.
[(c) Use of Funds.--Assistance provided under this section
may be used--
[(1) to make capital and related improvements in
small shipyards located in or near maritime
communities;
[(2) to encourage, assist in, or provide training for
residents of maritime communities that will enhance the
economic viability of those communities; and
[(3) for such other purposes as the Administrator
determines to be consistent with and supplemental to
such activities.
[(d) Prohibited Uses.--Grants awarded under this section may
not be used to construct buildings or other physical facilities
or to acquire land unless such use is specifically approved by
the Administrator in support of subsection (c)(3).
[(e) Matching Requirements.--
[(1) Federal funding.--Except as provided in
paragraph (2), Federal funds for any eligible project
under this section shall not exceed 75 percent of the
total cost of such project.
[(2) Exceptions.--
[(A) Small projects.--Paragraph (1) shall not
apply to grants under this section for stand
alone projects costing not more than $25,000.
The amount under this subparagraph shall be
indexed to the consumer price index and
modified each fiscal year after the annual
publication of the consumer price index.
[(B) Reduction in matching requirement.--If
the Administrator determines that a proposed
project merits support and cannot be undertaken
without a higher percentage of Federal
financial assistance, the Administrator may
award a grant for such project with a lesser
matching requirement than is described in
paragraph (1).
[(f) Application.--
[(1) In general.--The Administrator shall determine
who, as an eligible applicant, may submit an
application, at such time, in such form, and containing
such information and assurances as the Administrator
may require.
[(2) Minimum standards for payment or
reimbursement.--Each application submitted under
paragraph (1) shall include--
[(A) a comprehensive description of--
[(i) the need for the project;
[(ii) the methodology for
implementing the project; and
[(iii) any existing programs or
arrangements that can be used to
supplement or leverage assistance under
the program.
[(3) Procedural safeguards.--The Administrator, in
consultation with the Office of the Inspector General,
shall issue guidelines to establish appropriate
accounting, reporting, and review procedures to ensure
that--
[(A) grant funds are used for the purposes
for which they were made available;
[(B) grantees have properly accounted for all
expenditures of grant funds; and
[(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned.
[(4) Project approval required.--The Administrator
may not award a grant under this section unless the
Administrator determines that--
[(A) sufficient funding is available to meet
the matching requirements of subsection (e);
[(B) the project will be completed without
unreasonable delay; and
[(C) the recipient has authority to carry out
the proposed project.
[(g) Audits and Examinations.--All grantees under this
section shall maintain such records as the Administrator may
require and make such records available for review and audit by
the Administrator.
[(h) Small Shipyard Defined.--In this section, the term
``small shipyard'' means a shipyard that--
[(1) is a small business concern (within the meaning
of section 3 of the Small Business Act (15 U.S.C. 632);
and
[(2) does not have more than 600 employees.
[(i) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator of the Maritime
Administration for each of fiscal years 2006 through 2010 to
carry out this section--
[(1) $5,000,000 for training grants; and
[(2) $25,000,000 for capital and related improvement
grants.]
TITLE 46. SHIPPING
SUBTITLE I. GENERAL
CHAPTER 5. OTHER GENERAL PROVISIONS
Sec. 501. Waiver of navigation and vessel-inspection laws
(a) On Request of Secretary of Defense.--On request of the
Secretary of Defense, the head of an agency responsible for the
administration of the navigation or vessel-inspection laws
shall waive compliance with those laws to the extent the
Secretary considers necessary in the interest of national
defense.
[(b) By Head of Agency.--When the head of an agency
responsible for the administration of the navigation or vessel-
inspection laws considers it necessary in the interest of
national defense, the individual may waive compliance with
those laws to the extent, in the manner, and on the terms the
individual prescribes.]
(b) By Head of Agency.--When the head of an agency
responsible for the administration of the navigation or vessel-
inspection laws considers it necessary in the interest of
national defense, the individual, following a determination by
the Maritime Administrator, acting in the Administrator's
capacity as Director, National Shipping Authority, of the non-
availability of qualified United States flag capacity to meet
national defense requirements, may waive compliance with those
laws to the extent, in the manner, and on the terms the
individual, in consultation with the Administrator, acting in
that capacity, prescribes.
(c) Termination of Authority.--The authority granted by this
section shall terminate at such time as the Congress by
concurrent resolution or the President may designate.
SUBTITLE II. VESSELS AND SEAMEN
PART A. GENERAL PROVISIONS
CHAPTER 21. GENERAL
Sec. 2101. General definitions
In this subtitle--
(1) ``associated equipment''--
(A) means--
(i) a system, accessory, component,
or appurtenance of a recreational
vessel; or
(ii) a marine safety article intended
for use on board a recreational vessel;
but
(B) does not include radio equipment.
(2) (3a) [repealed]
(4) ``Coast Guard'' means the organization
established and continued under section 1 of title 14.
(5) ``commercial service'' includes any type of trade
or business involving the transportation of goods or
individuals, except service performed by a combatant
vessel.
(5a) ``consideration'' means an economic benefit,
inducement, right, or profit including pecuniary
payment accruing to an individual, person, or entity,
but not including a voluntary sharing of the actual
expenses of the voyage, by monetary contribution or
donation of fuel, food, beverage, or other supplies.
(6)
(7) ``crude oil'' means a liquid hydrocarbon mixture
occurring naturally in the earth, whether or not
treated to render it suitable for transportation, and
includes crude oil from which certain distillate
fractions may have been removed, and crude oil to which
certain distillate fractions may have been added.
(8) ``crude oil tanker'' means a tanker engaged in
the trade of carrying crude oil.
(8a) ``dangerous drug'' means a narcotic drug, a
controlled substance, or a controlled substance analog
(as defined in section 102 of the Comprehensive Drug
Abuse Prevention and Control Act of 1970 (21 U.S.C.
802)).
(9) ``discharge'', when referring to a substance
discharged from a vessel, includes spilling, leaking,
pumping, pouring, emitting, emptying, or dumping,
however caused.
(10), (10a) [repealed]
(10b) ``ferry'' means a vessel that is used on a
regular schedule--
(A) to provide transportation only between
places that are not more than 300 miles apart;
and
(B) to transport only--
(i) passengers; or
(ii) vehicles, or railroad cars, that
are being used, or have been used, in
transporting passengers or goods.
(11) ``fish'' means finfish, mollusks, crustaceans,
and all other forms of marine animal and plant life,
except marine mammals and birds.
(11a) ``fishing vessel'' means a vessel that
commercially engages in the catching, taking, or
harvesting of fish or an activity that can reasonably
be expected to result in the catching, taking, or
harvesting of fish.
(11b) ``fish processing vessel'' means a vessel that
commercially prepares fish or fish products other than
by gutting, decapitating, gilling, skinning, shucking,
icing, freezing, or brine [chilling.] chilling, but
does not include a fishing vessel operating in Alaskan
waters under a permit or license issued by Alaska
that--
(A) fillets only salmon taken by that vessel;
(B) fillets less than 5 metric tons of such
salmon during any 7-day period.
(11c) ``fish tender vessel'' means a vessel that
commercially supplies, stores, refrigerates, or
transports fish, fish products, or materials directly
related to fishing or the preparation of fish to or
from a fishing, fish processing, or fish tender vessel
or a fish processing facility.
(12) [repealed]
(13) ``freight vessel'' means a motor vessel of more
than 15 gross tons as measured under section 14502 of
this title, or an alternate tonnage measured under
section 14302 of this title as prescribed by the
Secretary under section 14104 of this title that
carries freight for hire, except an oceanographic
research vessel or an offshore supply vessel.
(13a) ``Great Lakes barge'' means a non-self-
propelled vessel of at least 3,500 gross tons as
measured under section 14502 of this title, or an
alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section
14104 of this title operating on the Great Lakes.
(14) ``hazardous material'' means a liquid material
or substance that is--
(A) flammable or combustible;
(B) designated a hazardous substance under
section 311(b) of the Federal Water Pollution
Control Act (33 U.S.C. 1321); or
(C) designated a hazardous material under
section 5103(a) of title 49;
(14a) ``major conversion'' means a conversion of a
vessel that--
(A) substantially changes the dimensions or
carrying capacity of the vessel;
(B) changes the type of the vessel;
(C) substantially prolongs the life of the
vessel; or
(D) otherwise so changes the vessel that it
is essentially a new vessel, as decided by the
Secretary.
(15) ``marine environment'' means--
(A) the navigable waters of the United States
and the land and resources in and under those
waters;
(B) the waters and fishery resources of an
area over which the United States asserts
exclusive fishery management authority;
(C) the seabed and subsoil of the outer
Continental Shelf of the United States, the
resources of the Shelf, and the waters
superjacent to the Shelf; and
(D) the recreational, economic, and scenic
values of the waters and resources referred to
in subclauses (A)-(C) of this clause.
(15a) ``mobile offshore drilling unit'' means a
vessel capable of engaging in drilling operations for
the exploration or exploitation of subsea resources.
(16) ``motor vessel'' means a vessel propelled by
machinery other than steam.
(17) ``nautical school vessel'' means a vessel
operated by or in connection with a nautical school or
an educational institution under section 558 of title
40.
(17a) ``navigable waters of the United States''
includes all waters of the territorial sea of the
United States as described in Presidential Proclamation
No. 5928 of December 27, 1988.
(17b) [repealed]
(18) ``oceanographic research vessel'' means a vessel
that the Secretary finds is being employed only in
instruction in oceanography or limnology, or both, or
only in oceanographic or limnological research,
including studies about the sea such as seismic,
gravity meter, and magnetic exploration and other
marine geophysical or geological surveys, atmospheric
research, and biological research.
(19) ``offshore supply vessel'' means a motor vessel
of more than 15 gross tons but less than 500 gross tons
as measured under section 14502 of this title, or an
alternate tonnage measured under section 14302 of this
title as prescribed by the Secretary under section
14104 of this title that regularly carries goods,
supplies, individuals in addition to the crew, or
equipment in support of exploration, exploitation, or
production of offshore mineral or energy resources.
(20) ``oil'' includes oil of any type or in any form,
including petroleum, fuel oil, sludge, oil refuse, and
oil mixed with wastes except dredged spoil.
(20a) ``oil spill response vessel'' means a vessel
that is designated in its certificate of inspection as
such a vessel, or that is adapted to respond to a
discharge of oil or a hazardous material.
(20b) ``overall in length'' means--
(A) for a foreign vessel or a vessel engaged
on a foreign voyage, the greater of--
(i) 96 percent of the length on a
waterline at 85 percent of the least
molded depth measured from the top of
the keel (or on a vessel designed with
a rake of keel, on a waterline parallel
to the designed waterline); or
(ii) the length from the fore side of
the stem to the axis of the rudder
stock on that waterline; and
(B) for any other vessel, the horizontal
distance of the hull between the foremost part
of the stem and the aftermost part of the
stern, excluding fittings and attachments.
(21) ``passenger''--
(A) means an individual carried on the vessel
except--
(i) the owner or an individual
representative of the owner or, in the
case of a vessel under charter, an
individual charterer or individual
representative of the charterer;
(ii) the master; or
(iii) a member of the crew engaged in
the business of the vessel who has not
contributed consideration for carriage
and who is paid for on board services;
(B) on an offshore supply vessel, means an
individual carried on the vessel except--
(i) an individual included in clause
(i), (ii), or (iii) of subparagraph (A)
of this paragraph;
(ii) an employee of the owner, or of
a subcontractor to the owner, engaged
in the business of the owner;
(iii) an employee of the charterer,
or of a subcontractor to the charterer,
engaged in the business of the
charterer; or
(iv) an individual employed in a
phase of exploration, exploitation, or
production of offshore mineral or
energy resources served by the vessel;
(C) on a fishing vessel, fish processing
vessel, or fish tender vessel, means an
individual carried on the vessel except--
(i) an individual included in clause
(i), (ii), or (iii) of subparagraph (A)
of this paragraph;
(ii) a managing operator;
(iii) an employee of the owner, or of
a subcontractor to the owner, engaged
in the business of the owner;
(iv) an employee of the charterer, or
of a subcontractor to the charterer,
engaged in the business of the
charterer; or
(v) an observer or sea sampler on
board the vessel pursuant to a
requirement of State or Federal law; or
(D) on a sailing school vessel, means an
individual carried on the vessel except--
(i) an individual included in clause
(i), (ii), or (iii) of subparagraph (A)
of this paragraph;
(ii) an employee of the owner of the
vessel engaged in the business of the
owner, except when the vessel is
operating under a demise charter;
(iii) an employee of the demise
charterer of the vessel engaged in the
business of the demise charterer; or
(iv) a sailing school instructor or
sailing school student.
(21a) ``passenger for hire'' means a passenger for
whom consideration is contributed as a condition of
carriage on the vessel, whether directly or indirectly
flowing to the owner, charterer, operator, agent, or
any other person having an interest in the vessel.
(22) ``passenger vessel'' means a vessel of at least
100 gross tons as measured under section 14502 of this
title, or an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary
under section 14104 of this title--
(A) carrying more than 12 passengers,
including at least one passenger for hire;
(B) that is chartered and carrying more than
12 passengers;
(C) that is a submersible vessel carrying at
least one passenger for hire; or
(D) that is a ferry carrying a passenger.
(23) ``product carrier'' means a tanker engaged in
the trade of carrying oil except crude oil.
(24) ``public vessel'' means a vessel that--
(A) is owned, or demise chartered, and
operated by the United States Government or a
government of a foreign country; and
(B) is not engaged in commercial service.
(25) ``recreational vessel'' means a vessel--
(A) being manufactured or operated primarily
for pleasure; or
(B) leased, rented, or chartered to another
for the latter's pleasure.
(26) ``recreational vessel manufacturer'' means a
person engaged in the manufacturing, construction,
assembly, or importation of recreational vessels,
components, or associated equipment.
(26a) ``riding gang member'' means an individual
who--
(A) has not been issued a merchant mariner
document under chapter 73;
(B) does not perform--
(i) watchstanding, automated engine
room duty watch, or personnel safety
functions; or
(ii) cargo handling functions,
including any activity relating to the
loading or unloading of cargo, the
operation of cargo-related equipment
(whether or not integral to the
vessel), and the handling of mooring
lines on the dock when the vessel is
made fast or let go;
(C) does not serve as part of the crew
complement required under section 8101;
(D) is not a member of the steward's
department; and
(E) is not a citizen or temporary or
permanent resident of a country designated by
the United States as a sponsor of terrorism or
any other country that the Secretary, in
consultation with the Secretary of State and
the heads of other appropriate United States
agencies, determines to be a security threat to
the United States.
(27) ``sailing instruction'' means teaching,
research, and practical experience in operating vessels
propelled primarily by sail and may include--
(A) any subject related to that operation and
to the sea, including seamanship, navigation,
oceanography, other nautical and marine
sciences, and maritime history and literature;
and
(B) only when in conjunction with a subject
referred to in subclause (A) of this clause,
instruction in mathematics and language arts
skills to sailing school students having
learning disabilities.
(28) ``sailing school instructor'' means an
individual who is on board a sailing school vessel to
provide sailing instruction, but does not include an
operator or crewmember who is among those required to
be on board the vessel to meet a requirement
established under part F of this subtitle
(29) ``sailing school student'' means an individual
who is on board a sailing school vessel to receive
sailing instruction.
(30) ``sailing school vessel'' means a vessel--
(A) that is less than 500 gross tons as
measured under section 14502 of this title, or
an alternate tonnage measured under section
14302 of this title as prescribed by the
Secretary under section 14104 of this title;
(B) carrying more than 6 individuals who are
sailing school instructors or sailing school
students;
(C) principally equipped for propulsion by
sail, even if the vessel has an auxiliary means
of propulsion; and
(D) owned or demise chartered, and operated
by an organization described in section
501(c)(3) of the Internal Revenue Code of 1954
(26 U.S.C. 501(c)(3)) and exempt from tax under
section 501(a) of that Code, or by a State or
political subdivision of a State, during times
that the vessel is operated by the
organization, State, or political subdivision
only for sailing instruction.
(31) ``scientific personnel'' means individuals on
board an oceanographic research vessel only to engage
in scientific research, or to instruct or receive
instruction in oceanography or limnology.
(32) ``seagoing barge'' means a non-self-propelled
vessel of at least 100 gross tons as measured under
section 14502 of this title, or an alternate tonnage
measured under section 14302 of this title as
prescribed by the Secretary under section 14104 of this
title making voyages beyond the Boundary Line.
(33) ``seagoing motor vessel'' means a motor vessel
of at least 300 gross tons as measured under section
14502 of this title, or an alternate tonnage measured
under section 14302 of this title as prescribed by the
Secretary under section 14104 of this title making
voyages beyond the Boundary Line.
(34) ``Secretary'' means the Secretary of the
department in which the Coast Guard is operating.
(35) ``small passenger vessel'' means a wing-in-
ground craft, regardless of tonnage, carrying at least
one passenger for hire, and a vessel of less than 100
gross tons as measured under section 14502 of this
title, or an alternate tonnage measured under section
14302 of this title as prescribed by the Secretary
under section 14104 of this title--
(A) carrying more than 6 passengers,
including at least one passenger for hire;
(B) that is chartered with the crew provided
or specified by the owner or the owner's
representative and carrying more than 6
passengers;
(C) that is chartered with no crew provided
or specified by the owner or the owner's
representative and carrying more than 12
passengers;
(D) that is a submersible vessel carrying at
least one passenger for hire; or
(E) that is a ferry carrying more than 6
passengers.
(36) [repealed]
(37) ``steam vessel'' means a vessel propelled in
whole or in part by steam, except a recreational vessel
of not more than 40 feet in length.
(37a) ``submersible vessel'' means a vessel that is
capable of operating below the surface of the water.
(38) ``tanker'' means a self-propelled tank vessel
constructed or adapted primarily to carry oil or
hazardous material in bulk in the cargo spaces.
(39) ``tank vessel'' means a vessel that is
constructed or adapted to carry, or that carries, oil
or hazardous material in bulk as cargo or cargo
residue, and that--
(A) is a vessel of the United States;
(B) operates on the navigable waters of the
United States; or
(C) transfers oil or hazardous material in a
port or place subject to the jurisdiction of
the United States.
(40) ``towing vessel'' means a commercial vessel
engaged in or intending to engage in the service of
pulling, pushing, or hauling along side, or any
combination of pulling, pushing, or hauling along side.
(41) [repealed]
(42) ``uninspected passenger vessel'' means an
uninspected vessel--
(A) of at least 100 gross tons as measured
under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title--
(i) carrying not more than 12
passengers, including at least one
passenger for hire; or
(ii) that is chartered with the crew
provided or specified by the owner or
the owner's representative and carrying
not more than 12 passengers; and
(B) of less than 100 gross tons as measured
under section 14502 of this title, or an
alternate tonnage measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title--
(i) carrying not more than 6
passengers, including at least one
passenger for hire; or
(ii) that is chartered with the crew
provided or specified by the owner or
the owner's representative and carrying
not more than 6 passengers.
(43) ``uninspected vessel'' means a vessel not
subject to inspection under section 3301 of this title
that is not a recreational vessel.
(44) (46) [repealed]
(47) ``vessel of war'' means a vessel--
(A) belonging to the armed forces of a
country;
(B) bearing the external marks distinguishing
vessels of war of that country;
(C) under the command of an officer
commissioned by the government of that country
and whose name appears in the appropriate
service list or its equivalent; and
(D) staffed by a crew under regular armed
forces discipline.
(48) ``wing-in-ground craft'' means a vessel that is
capable of operating completely above the surface of
the water on a dynamic air cushion created by
aerodynamic lift due to the ground effect between the
vessel and the water's surface.
SUBTITLE V. MERCHANT MARINE
PART B. MERCHANT MARINE SERVICE
CHAPTER 515. STATE MARITIME ACADEMY SUPPORT PROGRAM
Sec. 51509. Student incentive payment agreements
(a) General Authority.--If a State maritime academy has an
agreement with the Secretary of Transportation under section
51505 of this title, the Secretary may make an agreement with a
student at the academy who is a citizen of the United States to
make student incentive payments [to the individual.] to the
individual or the academy, as determined by the Secretary. An
agreement with a student may not be effective for more than 4
academic years. The Secretary shall allocate payments under
this section among the various State maritime academies in an
equitable manner.
(b) Payments.--Payments under an agreement under this section
shall be equal to [$4,000] $8,000 each academic year and be
paid, [as prescribed by the Secretary, while the individual is
attending the academy.] subject to such conditions as may be
prescribed by the Secretary. The payments shall be used for
uniforms, tuition, books, and subsistence.
[(c) Enlisted Reserve Status.--An agreement under this
section shall require the student to accept enlisted reserve
status in the Navy Reserve (including the Merchant Marine
Reserve, Navy Reserve) or the Coast Guard Reserve before
receiving any payments under the agreement.]
(c) Midshipman and Enlisted Reserve Status.--Each agreement
entered into under this section shall require the individual to
accept midshipman and enlisted reserve status in the United
States Navy Reserve (including the Merchant Marine Reserve) or
the United States Coast Guard Reserve before any payments are
made under the agreement.
(d) Agreement Requirements.--An agreement under this section
shall require the student to--
(1) complete the course of instruction at the academy
the individual is attending;
(2) take the examination for a license as an officer
in the merchant marine of the United States before
graduation from the academy and fulfill the
requirements for such a license within 3 months after
graduation from the academy;
(3) maintain a valid license as an officer in the
merchant marine of the United States for at least 6
years after graduation from the academy, accompanied by
the appropriate national and international endorsements
and certification required by the Coast Guard for
service aboard vessels on domestic and international
voyages;
(4) accept, if tendered, an appointment as a
commissioned officer in the Navy Reserve (including the
Merchant Marine Reserve, Navy Reserve), the Coast Guard
Reserve, or any other reserve unit of an armed force of
the United States, and, if tendered the appointment, to
serve for at least 6 years after graduation from the
academy;
(5) serve the foreign and domestic commerce and the
national defense of the United States for at least 3
years after graduation from the academy--
(A) as a merchant marine officer on a
documented vessel or a vessel owned and
operated by the United States Government or by
a State;
(B) as an employee in a United States
maritime-related industry, profession, or
marine science (as determined by the
Secretary), if the Secretary determines that
service under subparagraph (A) is not available
to the individual;
(C) as a commissioned officer on active duty
in an armed force of the United States, as a
commissioned officer in the National Oceanic
and Atmospheric Administration, or in other
maritime-related Federal employment which
serves the national security interests of the
United States, as determined by the Secretary;
or
(D) by a combination of the service
alternatives referred to in subparagraphs (A)-
(C); and
(6) report to the Secretary on compliance with this
subsection.
(e) Failure To Complete Course of Instruction.--
(1) Active duty.--If the Secretary of Transportation
determines that an individual who has accepted the
payments described in subsection (b) for a minimum of 2
academic years has failed to fulfill the part of the
agreement described in subsection (d)(1), the
individual may be ordered by the Secretary of Defense
to serve on active duty in the armed forces of the
United States for a period of not more than 2 years. In
cases of hardship as determined by the Secretary of
Transportation, the Secretary of Transportation may
waive this paragraph in whole or in part.
(2) Recovery of cost.--If the Secretary of Defense is
unable or unwilling to order an individual to serve on
active duty under paragraph (1), or if the Secretary of
Transportation determines that reimbursement of the
cost of education provided would better serve the
interests of the United States, the Secretary of
Transportation may recover from the individual the
amount of student incentive payments, plus interest and
attorney fees. The Secretary may reduce the amount to
be recovered to reflect partial performance of service
obligations and other factors the Secretary determines
merit a reduction.
(f) Failure To Carry Out Other Requirements.--
(1) Active duty.--If the Secretary of Transportation
determines that an individual has failed to fulfill any
part of the agreement described in subsection (d)(2)-
(6), the individual may be ordered to serve on active
duty for a period of at least 2 years but not more than
the unexpired period (as determined by the Secretary)
of the service required by subsection (d)(5). The
Secretary of Transportation, in consultation with the
Secretary of Defense, shall determine in which service
the individual shall serve. In cases of hardship as
determined by the Secretary of Transportation, the
Secretary of Transportation may waive this paragraph in
whole or in part.
(2) Recovery of cost.--If the Secretary of Defense is
unable or unwilling to order an individual to serve on
active duty under paragraph (1), or if the Secretary of
Transportation determines that reimbursement of the
cost of education provided would better serve the
interests of the United States, the Secretary of
Transportation may recover from the individual the
amount of student incentive payments, plus interest and
attorney fees. The Secretary may reduce the amount to
be recovered to reflect partial performance of service
obligations and other factors the Secretary determines
merit a reduction.
(g) Actions To Recover Cost.--To aid in the recovery of the
cost of education provided by the Government under a commitment
agreement under this section, the Secretary of Transportation
may--
(1) request the Attorney General to bring a civil
action against the individual; and
(2) make use of the Federal debt collection
procedures in chapter 176 of title 28 or other
applicable administrative remedies.
SUBTITLE V. MERCHANT MARINE
PART C. FINANCIAL ASSISTANCE PROGRAMS
CHAPTER 539. WAR RISK INSURANCE
Sec. 53912. Expiration date
The authority of the Secretary of Transportation to provide
insurance and reinsurance under this chapter expires on
[December 31, 2010.] December 31, 2015.
CHAPTER 541--MISCELLANEOUS
Sec.
Sec. 54101. Assistance for small shipyards and maritime communities
Sec. 54101. Assistance for small shipyards and maritime communities
(a) Establishment of Program.--Subject to the availability of
appropriations, the Administrator of the Maritime
Administration shall execute agreements with shipyards to
provide assistance--
(1) in the form of grants, loans, and loan guarantees
to small shipyards for capital improvements; and
(2) for maritime training programs to foster
technical skills and operational productivity in
communities whose economies are related to or dependent
upon the maritime industry.
(b) Awards.--In providing assistance under the program, the
Administrator shall--
(1) take into account--
(A) the economic circumstances and conditions
of maritime communities;
(B) projects that would be effective in
fostering efficiency, competitive operations,
and quality ship construction, repair, and
reconfiguration; and
(C) projects that would be effective in
fostering employee skills and enhancing
productivity; and
(2) make grants within 120 days after the date of
enactment of the appropriations Act for the fiscal year
concerned.
(c) Use of Funds.--
(1) In general.--Assistance provided under this
section may be used--
(A) to make capital and related improvements
in small shipyards located in or near maritime
communities;
(B) to provide training for workers in
communities whose economies are related to the
maritime industry; and
(C) for such other purposes as the
Administrator determines to be consistent with
and supplemental to such activities.
(2) Administrative costs.--Not more than 2 percent of
amounts made available to carry out the program may be
used for the necessary costs of grant administration.
(d) Prohibited Uses.--Grants awarded under this section may
not be used to construct buildings or other physical facilities
or to acquire land unless such use is specifically approved by
the Administrator in support of subsection (c)(1)(C).
(e) Matching Requirements; Allocation.--
(1) Federal funding.--Except as provided in paragraph
(2), Federal funds for any eligible project under this
section shall not exceed 75 percent of the total cost
of such project.
(2) Exception.--If the Administrator determines that
a proposed project merits support and cannot be
undertaken without a higher percentage of Federal
financial assistance, the Administrator may award a
grant for such project with a lesser matching
requirement than is described in paragraph (1).
(3) Allocation of funds.--The Administrator may not
award more than 25 percent of the funds appropriated to
carry out this section for any fiscal year to any small
shipyard in one geographic location that has more than
600 employees.
(f) Applications.--
(1) In general.--To be eligible for assistance under
this section, an applicant shall submit an application,
in such form, and containing such information and
assurances as the Administrator may require, within 60
days after the date of enactment of the appropriations
Act for the fiscal year concerned.
(2) Minimum standards for payment or reimbursement.--
Each application submitted under paragraph (1) shall
include--
(A) a comprehensive description of--
(i) the need for the project;
(ii) the methodology for implementing
the project; and
(iii) any existing programs or
arrangements that can be used to
supplement or leverage assistance under
the program.
(3) Procedural safeguards.--The Administrator, in
consultation with the Office of the Inspector General,
shall issue guidelines to establish appropriate
accounting, reporting, and review procedures to ensure
that--
(A) grant funds are used for the purposes for
which they were made available;
(B) grantees have properly accounted for all
expenditures of grant funds; and
(C) grant funds not used for such purposes
and amounts not obligated or expended are
returned.
(4) Project approval required.--The Administrator may
not award a grant under this section unless the
Administrator determines that--
(A) sufficient funding is available to meet
the matching requirements of subsection (e);
(B) the project will be completed without
unreasonable delay; and
(C) the recipient has authority to carry out
the proposed project.
(g) Audits and Examinations.--All grantees under this section
shall maintain such records as the Administrator may require
and make such records available for review and audit by the
Administrator.
(h) Small Shipyard Defined.--In this section, the term `small
shipyard' means a shipyard facility in one geographic location
that does not have more than 1,200 employees.
(i) Authorization of Appropriations.--There are authorized to
be appropriated to the Administrator of the Maritime
Administration for each of fiscal years 2006 through 2010 to
carry out this section--
(1) $5,000,000 for training grants; and
(2) $25,000,000 for capital and related
improvements.''.
PART D. PROMOTIONAL PROGRAMS
CHAPTER 553. PASSENGER AND CARGO PREFERENCES
SUBCHAPTER I. GENERAL
Sec. 55305. Cargoes procured, furnished, or financed by the United
States Government
(a) Definition.--In this section, the term `privately-owned
commercial vessel of the United States' does not include a
vessel that, after September 21, 1961, was built or rebuilt
outside the United States or documented under the laws of a
foreign country, until the vessel has been documented under the
laws of the United States for at least 3 years.
(b) Minimum Tonnage.--When the United States Government
procures, contracts for, or otherwise obtains for its own
account, or furnishes to or for the account of a foreign
[country] country, organization, or persons without provision
for reimbursement, any equipment, materials, or [commodities,]
commodities, or provides financing in any way with Federal
funds for the account of any persons unless otherwise exempted,
within or without the United States, or advances funds or
credits, or guarantees the convertibility of foreign currencies
in connection with the furnishing or obtaining of the
equipment, materials, or commodities, the appropriate agencies
shall take steps necessary and practicable to ensure that at
least 50 percent of the gross tonnage of the equipment,
materials, or commodities (computed separately for dry bulk
carriers, dry cargo liners, and tankers) which may be
transported on ocean vessels is transported on privately-owned
commercial vessels of the United States, to the extent those
vessels are available at fair and reasonable rates for
commercial vessels of the United States, in a manner that will
ensure a fair and reasonable participation of commercial
vessels of the United States in those cargoes by geographic
areas.
(c) Waivers.--The President, the Secretary of Defense, or
Congress (by concurrent resolution or otherwise) may waive this
section temporarily by--
(1) declaring the existence of an emergency
justifying a waiver; and
(2) notifying the appropriate agencies of the waiver.
[(d) Programs of Other Agencies.--An agency having
responsibility under this section shall administer its programs
with respect to this section under regulations prescribed by
the Secretary of Transportation. The Secretary shall review the
administration of those programs and report annually to
Congress on their administration.]
(d) Programs of Other Agencies.--
(1) Each department or agency that has responsibility
for a program under this section shall administer that
program with respect to this section under regulations
and guidance issued by the Secretary of Transportation.
The Secretary, after consulting with the department or
agency or organization or person involved, shall have
the sole responsibility for determining if a program is
subject to the requirements of this section.
(2) The Secretary--
(A) shall conduct an annual review of the
administration of programs determined pursuant
to paragraph (1) as subject to the requirements
of this section;
(B) may direct agencies to require the
transportation on United States-flagged vessels
of cargo shipments not otherwise subject to
this section in equivalent amounts to cargo
determined to have been shipped on foreign
carriers in violation of this section;
(C) may impose on any person that violates
this section, or a regulation prescribed under
this section, a civil penalty of not more than
$25,000 for each violation willfully and
knowingly committed, with each day of a
continuing violation following the date of
shipment to be a separate violation; and
(D) may take other measures as appropriate
under the Federal Acquisition Regulations
issued pursuant to section 25(c)(1) of the
Office of Federal Procurement Policy Act (41
U.S.C. 421(c)(1) or contract with respect to
each violation.
SUBCHAPTER II. EXPORT TRANSPORTATION OF AGRICULTURAL COMMODITIES
Sec. 55314. Transportation requirements for certain exports sponsored
by the Secretary of Agriculture
(a) Minimum Tonnage.--
(1) In general.--In addition to the requirement under
section 55305 of this title for the transportation of a
percentage of gross tonnage on commercial vessels of
the United States, 25 percent of the gross tonnage of
agricultural commodities or their products specified in
subsection (b) shall be transported each [calendar]
fiscal year on commercial vessels of the United States
that--
(A) are necessary for national security; and
(B) if more than 25 years old, were rebuilt
within the last 5 years and certified by the
Secretary of Transportation as having a useful
life of at least 5 years after that rebuilding.
(2) [Calendar] Fiscal year.--To provide for effective
and equitable administration of the cargo preference
laws, the [calendar] fiscal year for the purpose of
compliance with minimum percentage requirements is the
12-month period beginning October 1 of each year.
(b) Applicable Export Activity.--This section applies to
export activity (except inspection or weighing activities,
other activities carried out for health or safety, or technical
assistance provided in the handling of commercial transactions)
of the Secretary of Agriculture or the Commodity Credit
Corporation--
(1) carried out under the Food for Peace Act (7
U.S.C. 1691 et seq.);
(2) carried out under section 416 of the Agricultural
Act of 1949 (7 U.S.C. 1431);
(3) carried out under the Bill Emerson Humanitarian
Trust Act (7 U.S.C. 1736f-1);
(4) under which agricultural commodities or their
products are--
(A) donated through foreign governments or
private or public agencies, including
intergovernmental organizations; or
(B) sold for foreign currencies or for
dollars on credit terms of more than 10 years;
(5) under which agricultural commodities or their
products are made available for emergency food relief
at less than prevailing world market prices;
(6) under which a cash grant is made directly or
through an intermediary to a foreign purchaser to
enable the purchaser to obtain United States
agricultural commodities or their products in an amount
greater than the difference between the prevailing
world market price and the United States market price,
free along side vessel at a United States port; or
(7) under which agricultural commodities owned or
controlled by or under loan from the Corporation are
exchanged or bartered for materials, goods, equipment,
or services produced in foreign countries, except
export activities described in section 55313(5) of this
title.
(c) Additional Requirements.--
(1) Application of section 55305.--The requirement
for transportation on vessels of the United States
under subsection (a) is subject to the same terms and
conditions as provided in section 55305 of this title.
(2) Allocation of commodities.--Subject to paragraph
(3), in carrying out this section and section 55305 of
this title, the Corporation shall take steps necessary
and practicable, and consistent with this section and
section 55305, without detriment to any port range to
allocate, on the principle of lowest landed cost
without regard to the country of registry of the
vessel, 25 percent of the bagged, processed, or
fortified commodities provided under title II of the
Food for Peace Act (7 U.S.C. 1721 et seq.).
(3) Calculations.--In carrying out paragraph (2),
first there shall be calculated the allocation of 100
percent of the quantity to be procured on an overall
lowest landed cost basis without regard to the country
of registry of the vessel, and then there shall be
allocated to the Great Lakes port range any cargoes for
which it has the lowest landed cost under that
calculation. The requirements for transportation on
vessels of the United States under this section and
section 55305 of this title do not apply to commodities
allocated to the Great Lakes port range under paragraph
(2). Commodities allocated to the Great Lakes port
range under paragraph (2) may not be reallocated or
diverted to another port range to meet those
requirements to the extent that the total tonnage of
commodities to which paragraph (2) applies that is
furnished and transported from the Great Lakes port
range is less than 25 percent of the total annual
tonnage of the commodities furnished.
(4) Awarding contracts.--In awarding a contract for
the transportation by vessel of commodities from the
Great Lakes port range pursuant to an export activity
referred to in subsection (b), an agency--
(A) shall consider expressions of freight
interest for any vessel from a vessel operator
who meets reasonable requirements for financial
and operational integrity; and
(B) may not deny award of the contract to a
person based on the type of vessel on which the
transportation would be provided (including on
the basis that the transportation would not be
provided on a liner vessel, as that term is
used in the Shipping Act of 1984, as in effect
on November 14, 1995), if the person otherwise
satisfies reasonable requirements for financial
and operational integrity.
(5) Nonavailability of vessels.--A determination of
nonavailability of vessels of the United States
resulting from the application of this subsection may
not reduce the gross tonnage of commodities required by
this section and section 55305 of this title to be
transported on vessels of the United States.
LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT
SEC. 2. DEFINITIONS.
[33 U.S.C. 902]
When used in this Act--
(1) The term ``person'' means individual,
partnership, corporation, or association.
(2) The term ``injury'' means accidental injury or
death arising out of and in the course of employment,
and such occupational disease or infection as arises
naturally out of such employment or as naturally or
unavoidably results from such accidental injury, and
includes an injury caused by the willful act of a third
person directed against an employee because of his
employment.
(3) The term ``employee'' means any person engaged in
maritime employment, including any longshoreman or
other person engaged in longshoring operations, and any
harbor-worker including a ship repairman, shipbuilder,
and ship-breaker, but such term does not include--
(A) individuals employed exclusively to
perform office clerical, secretarial, security,
or data processing work;
(B) individuals employed by a club, camp,
recreational operation, restaurant, museum, or
retail outlet;
(C) individuals employed by a marina and who
are not engaged in construction, replacement,
or expansion of such marina (except for routine
maintenance);
(D) individuals who (i) are employed by
suppliers, transporters, or vendors, (ii) are
temporarily doing business on the premises of
an employer described in paragraph (4), and
(iii) are not engaged in work normally
performed by employees of that employer under
this Act;
(E) acquaculture workers;
[(F) individuals employed to build, repair,
or dismantle any recreational vessel under
sixty-five feet in length;]
(F) individuals who--
(i) are employed to manufacture any
recreational vessel under 165 feet in
length; or
(ii) are employed to repair any
recreational vessel or to dismantle any
part of any recreational vessel in
connection with repair of the vessel;
(G) a master or member of a crew of any
vessel; or
(H) any person engaged by a master to load or
unload or repair any small vessel under
eighteen tons net; if individuals described in
clauses (A) through (F) are subject to coverage
under a State workers' compensation law.
(4) The term ``employer'' means an employer any of
whose employees are employed in maritime employment, in
whole or in part, upon the navigable waters of the
United States (including any adjoining pier, wharf, dry
dock, terminal, building way, marine railway, or other
adjoining area customarily used by an employer in
loading, unloading, repairing, or building a vessel).
(5) The term ``carrier'' means any person or fund
authorized under section 32 to insure under this Act
and includes self-insurers.
(6) The term ``Secretary'' means the Secretary of
Labor.
(7) The term ``deputy commissioner'' means the deputy
commissioner having jurisdiction in respect of an
injury or death.
(8) The term ``State'' includes a Territory and the
District of Columbia.
(9) The term ``United States'' when used in a
geographical sense means the several States and
Territories and the District of Columbia, including the
territorial waters thereof.
(10) ``Disability'' means incapacity because of
injury to earn the wages which the employee was
receiving at the time of injury in the same or any
other employment; but such term shall mean permanent
impairment, determined (to the extent covered thereby)
under the guides to the evaluation of permanent
impairment promulgated and modified from time to time
by the American Medical Association, in the case of an
individual whose claim is described in section
10(d)(2).
(11) ``Death'' as a basis for a right to compensation
means only death resulting from an injury.
(12) ``Compensation'' means the money allowance
payable to an employee or to his dependents as provided
for in this Act, and includes funeral benefits provided
therein.
(13) The term ``wages'' means the money rate at which
the service rendered by an employee is compensated by
an employer under the contract of hiring in force at
the time of the injury, including the reasonable value
of any advantage which is received from the employer
and included for purposes of any withholding of tax
under subtitle C of the Internal Revenue Code of 1954
(relating to employment taxes). The term wages does not
include fringe benefits, including (but not limited to)
employer payments for or contributions to a retirement,
pension, health and welfare, life insurance, training,
social security or other employee or dependent benefit
plan for the employee's or dependent's benefit, or any
other employee's dependent entitlement.
(14) ``Child'' shall include a posthumous child, a
child legally adopted prior to the injury of the
employee, a child in relation to whom the deceased
employee stood in loco parentis for at least one year
prior to the time of injury, and a stepchild or
acknowledged illegitimate child dependent upon the
deceased, but does not include married children unless
wholly dependent on him. ``Grandchild'' means a child
as above defined of a child as above defined.
``Brother'' and ``sister'' include stepbrothers and
stepsisters, half brothers and half sisters, and
brothers and sisters by adoption, but does not include
married brothers nor married sisters unless wholly
dependent on the employee. ``Child'', ``grandchild'',
``brother'', and ``sister'' include only a person who
is under eighteen years of age, or who, though eighteen
years of age or over, is (1) wholly dependent upon the
employee and incapable of self-support by reason of
mental or physical disability, or (2) a student as
defined in paragraph (19) of this section.
(15) The term ``parent'' includes step-parents and
parents by adoption, parents-in-law, and any person who
for more than three years prior to the death of the
deceased employee stood in the place of a parent to
him, if dependent on the injured employee.
(16) The terms ``widow or widower'' includes only the
decedent's wife or husband living with or dependent for
support upon him or her at the time of his or her
death; or living apart for justifiable cause or by
reason of his or her desertion at such time.
(17) The terms ``adoption'' or ``adopted'' mean legal
adoption prior to the time of the injury.
(18) The term ``student'' means a person regularly
pursuing a full-time course of study or training at an
institution which is--
(A) a school or college or university
operated or directly supported by the United
States, or by any State or local government or
political subdivision thereof,
(B) a school or college or university which
has been accredited by a State or by a State
recognized or nationally recognized accrediting
agency or body,
(C) a school or college or university not so
accredited but whose credits are accepted, on
transfer, by not less than three institutions
which are so accredited, for credit on the same
basis as if transferred from an institution so
accredited, or
(D) an additional type of educational or
training institution as defined by the
Secretary, but not after he reaches the age of
twenty-three or has completed four years of
education beyond the high school level, except
that, where his twenty-third birthday occurs
during a semester or other enrollment period,
he shall continue to be considered a student
until the end of such semester or other
enrollment period. A child shall not be deemed
to have ceased to be a student during any
interim between school years if the interim
does not exceed five months and if he shows to
the satisfaction of the Secretary that he has a
bona fide intention of continuing to pursue a
full-time course of education or training
during the semester or other enrollment period
immediately following the interim or during
periods of reasonable duration during which, in
the judgment of the Secretary, he is prevented
by factors beyond his control from pursuing his
education. A child shall not be deemed to be a
student under this Act during a period of
service in the Armed Forces of the United
States.
(19) The term ``national average weekly wage'' means
the national average weekly earnings of production or
nonsupervisory workers on private nonagricultural
payrolls.
(20) The term ``Board'' shall mean the Benefits
Review Board.
(21) Unless the context requires otherwise, the term
``vessel'' means any vessel upon which or in connection
with which any person entitled to benefits under this
Act suffers injury or death arising out of or in the
course of his employment, and said vessel's owner,
owner pro hac vice, agent, operator, charter or bare
boat charterer, master, officer, or crew member.
(22) The singular includes the plural and the
masculine includes the feminine and neuter.