[Senate Report 107-48]
[From the U.S. Government Publishing Office]
Calendar No. 107
107th Congress Report
SENATE
1st Session 107-48
======================================================================
MARITIME POLICY IMPROVEMENT ACT OF 2001
_______
July 27, 2001.--Ordered to be printed
_______
Mr. Hollings, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany H.R. 1098]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (H.R. 1098) to improve the
recording and discharging of maritime liens and expand the
American Merchant Marine Memorial Wall of Honor, and for other
purposes, having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
Purpose of the Bill
The purpose of the bill is to: expand the American Merchant
Marine Memorial Wall of Honor; clarify the regulation of
agriculture residue from hold washings; improve the recording
and discharging of maritime liens; clarify the measurement of
the research vessel DAVIDSON; grant waivers to a number of
vessels with regards to operations in the coastwise trade; and,
allow the owner of the vessel ASPHALT COMMANDER to place the
vessel under foreign registry.
Background and Needs
The bill is comprised of several smaller pieces of
legislation that were not acted upon during the last Congress
along with a number of new provisions that were developed
during the conference negotiations on the Coast Guard
Authorization Act of 2000, but were not enacted. Further
explanation of the background and needs of each provision is
contained in the summary of major provisions below.
Summary of Major Provisions
The bill is comprised of several smaller pieces of
legislation that were not acted upon during the last Congress
along with several new provisions. The following provides a
brief background and analysis of the major sections of the
bill:
Section 3 of the bill amends section 1120(g) of the Coast
Guard Authorization Act of 1996 (Public Law 104-324) to add the
vessel COASTAL VENTURE to a list of vessels deemed to have been
constructed in the United States for the limited purpose of the
Merchant Marine Act of 1936. The company which owns the COASTAL
VENTURE obtained this foreign-built vessel and its coastwise
trading privileges through a government forfeiture sale. The
Department of Commerce later determined that even though this
foreign-built vessel is considered a U.S. vessel under U.S.
coastwise trading laws, it cannot participate in its company's
Capital Construction Fund Agreement with the U.S. Government.
This section would allow funds generated by the COASTAL VENTURE
to be deposited in its owner's Capital Construction Fund
account. These funds must subsequently be spent in a U.S.
shipyard.
Section 4 adopts the American Merchant Marine Memorial Wall
of Honor Expansion Act which was introduced during the last
Congress in the House, but not acted upon. It would authorize
the Secretary of Transportation to make grants to the American
Merchant Marine Veterans Memorial Committee to construct an
addition to the American Merchant Marine Memorial Wall of Honor
in San Pedro, California.
Section 5 reaffirms Congressional intent to govern the
discharge of any agricultural cargo residue material from a
vessel in the form of hold washings exclusively under the
provisions of MARPOL Annex V (MARPOL V) as implemented by the
Act to Prevent Pollution from Ships (APFS) (33 U.S.C. Sec.
1901, et seq.). Agricultural cargo residue material refers to
materials such as corn, wheat, rice, soybeans, grams, and other
agricultural material and their residues routinely carried on
vessels. Last year, the Coast Guard announced a plan to change
its enforcement policy to apply other laws to regulate the
discharge of agriculture cargo residue material that has
traditionally been governed by MARPOL V. This proposed policy
change would place an unwarranted burden on U.S.-flag bulk
grain vessels which are required by agricultural inspection
rules to wash their cargo holds at sea while underway en route
to the next loading port. This discharge of agricultural cargo
residue material is consistent with MARPOL V which specifically
contemplates the discharge of such cargo residue.
Section 6 of the bill provides equal treatment for all
vessels documented under the laws of the United States in
matters regarding the recording and discharging of liens. Under
the current section 31343 of title 46, United States Code, any
person with a valid lien against the title of a vessel with a
preferred mortgage may file the notice of claim of lien with
the Secretary of Transportation. The Secretary is then required
to record the lien filing providing notice to any subsequent
creditor of the existence of the claim of lien. This process
provides the necessary transparency to all potential
creditors,buyers, and owners of the vessel to make informed commercial
decisions regarding a particular vessel.
However, under current law, if a vessel is not covered by a
preferred mortgage, the Secretary has no authority to record
the notice of claim of lien. This legislation would extend the
provisions of current law for preferred mortgages to a person
with a valid lien against a vessel not covered by a preferred
mortgage.
This provision is not intended to change any provision of
current law related to preferences given to any type of lien.
All aspects of admiralty law, including any relevant case law
applicable to chapter 313 of title 46, apply to this provision.
This provision is not intended to affect the rights of any
party in a bankruptcy proceeding.
The provision is designed to make maritime liens as
transparent as possible and to provide as much notice as
possible to existing and potential creditors. If not renewed,
notice of maritime liens recorded under this section will
expire after three years. The expiration provision reduces the
administrative burden on the Coast Guard in determining which
liens remain in effect at any given time.
The effective date of this section is delayed until July 1,
2002, in order to give all of the parties adequate time to
become familiar with these changes and to allow the Coast Guard
to change their regulations to reflect these changes. The Coast
Guard may immediately prescribe regulations to reflect the
change in law concerning the new authority to record notice of
claim of lien on documented vessels that do not have a
preferred mortgage.
Section 7 of the bill deems the research vessel DAVIDSON to
be less than 100 gross tons, as measured under chapter 145 of
title 46, United States Code, for purposes of applying the
optional regulatory measurement under section 14305 of title
46. The optional measurement provision allows the vessel owner
to select any method to tonnage measurement prescribed under
chapter 145 of title 46. Currently, chapter 145 allows tonnage
to be measured pursuant to the International Convention of
Tonnage Measurement of Ships, 1969, and alternate tonnage, if
prescribed by section 14104(b) of title 46. While the United
States Coast Guard has implemented some regulations detailing
alternate tonnage measurement for certain classes of vessels,
they have not completed full regulations on all classes of
vessels.
The DAVIDSON is a former National Oceanographic and
Atmospheric Administration research vessel. This section will
allow the vessel to be used as part of an advanced marine
sciences technical training program developed by the vessel's
owners in conjunction with higher education and training
institutions in the Pacific Northwest and Alaska.
Sections 8, 10, and 11 of the bill grants coastwise waivers
for the operation (and in some cases, the restricted operation)
of otherwise not qualified vessels in the coastwise trade.
Subject to certain limited exceptions, the provisions of law
known as the Jones Act (Section 27 of the Merchant Marine Act,
1920) and sections 12106-12108 of title 46, U.S. Code, provide
that only those vessels built in the United States and
continuously owned by U.S. citizens and documented in the U.S.
may transport merchandise or passengers in the coastwise trade
or engage in the domestic fisheries of the United States. The
Jones Act was amended during the 104th Congress to waive the
requirement that a vessel be continuously owned by U.S.
citizens and documented in the U.S. for small passenger vessels
or uninspected passenger vessels authorized to carry no more
than 12 passengers for hire. Where the facts applicable to a
particular vessel suggest that the U.S.-built, U.S.-documented,
or U.S.-owned requirements have not been satisfied, the Coast
Guard may not issue a document permitting coastwise trading or
domestic fishing privileges for such vessel unless the
requirements of the law are statutorily waived.
Section 9 of the bill adds the vessels SS RED OAK VICTORY and
SS AMERICAN VICTORY to a list of three other vessels subject to
section 3302(l) of title 46, United States Code. The Secretary
of Transportation may issue a permit exempting any of these
vessels from the inspection requirements for passenger vessels
so long as the vessels are owned by nonprofit organizations and
operated as nonprofit memorials to merchant mariners. Most of
these vessels do not meet the physical requirements for vessel
safety, because they were built during World War II when
inspection requirements were different. The Coast Guard will
still be authorized to regulate safety.
Section 12 of the bill allows vessels participating in the
New World Challenge to carry passengers in domestic waters as
part of the promotional activities associated with the race.
The race is being organized by Challenge Business International
and will start and conclude in San Francisco. Organizers hope
to allow press, corporate sponsors and their guests the
opportunity to sail on the vessels. However, the Passenger
Services Vessel Act prohibits foreign-built vessels from
transporting passengers in the domestic trade. This provision
would permit the vessels involved in the race to transport
passengers for up to 60 days after the end of the race.
Section 13 of the bill allows the owner of the vessel ASPHALT
COMMANDER to place this U.S.-flag vessel under a foreign
registry. The ASPHALT COMMANDER is an older single hull tanker
designed and built for the Military Sealift Command (MSC).
After the vessel was no longer needed by the MSC, the U.S.
Maritime Administration (MARAD) foreclosed and took possession
of the vessel. The current U.S. owner purchased the vessel from
MARAD and converted it into an asphalt carrier. Due to the
vessel's design and small cargo capacity, the owner is no
longer able to economically operate the vessel as a U.S.-flag
vessel.
Legislative History
The bill was introduced in the House of Representatives by
Mr. Young of Alaska on March 20, 2001, and referred to the
House Committee on Transportation and Infrastructure. The bill
was not considered by the Committee but was passed by the House
under suspension of the rules by a vote of 415-3 (Roll Call no.
55) on March 21, 2001. On March 22, 2001, the bill was received
in the Senate and read twice and referred to the Committee on
Commerce, Science, and Transportation. The Committee reported
H.R. 1098 without amendment favorably on May 3, 2001.
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, May 11, 2001.
Hon. John McCain,
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 H.R. 1098, the Maritime
Policy Improvement Act of 2001.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts for this
estimate are Deborah Reis (for federal spending), and Carolyn
Lynch (for revenues).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 1098--Maritime Policy Improvement Act of 2001
H.R. 1098 would authorize appropriations for a merchant
marine memorial and would modify the regulatory status of
certain vessels. Assuming appropriation of the specified
amounts, CBO estimates that implementing this bill would cost
$500,000 in fiscal year 2002. Provisions regarding the
designation of the vessel COASTAL VENTURE could result in a
reduction in federal tax revenues, but we estimate that any
such reduction would be negligible. Because the bill would
affect receipts, pay-as-you-go procedures would apply.
H.R. 1098 would authorize the appropriation of $500,000 for
2002 to the Secretary of Transportation to make matching grants
to the American Merchant Marine Veterans Memorial Committee,
Inc. The committee would use the grants to construct an
addition to the American Merchant Marine Memorial Wall of Honor
in San Pedro, California. Assuming appropriation of the
authorized amount, CBO estimates that the Department of
Transportation's Maritime Administration would spend $500,000
in fiscal year 2002 to provide the matching grant to the
committee.
Section 3 would deem the vessel COASTAL VENTURE to be a
U.S. flagship qualified for employment in coastal trade,
enabling its owner to establish a capital construction account
for the purposes of constructing, acquiring, leasing, or paying
off the indebtedness of the ship. Because such deposits and
their earnings are tax-deferred and withdrawals of these funds
are tax-exempt if used for qualifying purposes, corporate
income tax revenues could be affected. As a result, pay-as-you
go procedures would apply. Given the historical use of these
accounts and the addition of only one vessel, CBO estimates
that this provision would have a negligible effect on revenues.
Other provisions of H.R. 1098 would have no effect on the
federal budget. Most of these provisions would allow certain
ships to receive certificates of documentation or waivers from
various federal regulations.
H.R. 1098 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The act would authorize the appropriation of $500,000 in fiscal
year 2002 for a grant to construct an addition to the American
Merchant Marine Wall of Honor. The federal share of the project
would be 50 percent; any cost incurred by state or local
governments for the project would be voluntary.
The CBO staff contacts for this estimate are Deborah Reis
(for federal spending), and Carolyn Lynch (for revenues). The
estimate was approved by Peter H. Fontaine, 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 covered should be consistent with
current levels.
ECONOMIC IMPACT
The bill does not create any new programs, the legislation
should have no additional economic impact.
PRIVACY
The bill as reported would have no adverse impact on the
personal privacy of individuals.
PAPERWORK
There should be minimal change to paperwork requirements as a
result of the bill. Under Section 6, the Coast Guard Vessel
Documentation Center would be responsible for receiving,
recording, and discharging an increased number of vessels
liens. It is impossible to accurately forecast the full impact
on the center, as no data is available on the number of
recordable liens. However, it is believed that the increase in
paperwork will be negligible.
Section-by-Section Analysis
Section 1. Short title
This section states that the Act may be cited as the Maritime
Policy Improvement Act of 2001.
Section 2. Table of contents
Defines the contents of the bill.
Section 3. Vessel COASTAL VENTURE
Section 3 of the bill amends section 1120(g) of the Coast
Guard Authorization Act of 1996 (Public Law 104-324) to add the
vessel COASTAL VENTURE to a list of vessels, deemed to have
been constructed in the United States for the limited purpose
of the Merchant Marine Act of 1936.
Section 4. Expansion of American Merchant Marine Memorial Wall of Honor
Section 4 of the bill authorizes the Secretary of
Transportation to make grants to the American Merchant Marine
Veterans MemorialCommittee to construct an addition to the
American Merchant Marine Memorial Wall of Honor in San Pedro,
California.
Section 5. Discharge of agricultural cargo residue
Section 5 of the bill requires the discharge from a vessel of
any agricultural cargo residue material in the form of hold
washings to be governed exclusively under the provisions of
MARPOL Annex V (MARPOL V) as implemented by the Act to Prevent
Pollution from Ships (APPS). Agricultural cargo residue
material refers to materials such as corn, wheat, rice,
soybeans, grains, and other agricultural material and their
residues routinely carried on vessels.
Section 6. Recording and discharging maritime liens
Under current law, if a vessel is not covered by a preferred
mortgage, the Secretary has no authority to record the notice
of claim of lien. Section 6 of this bill would extend the
provisions of current law for preferred mortgages to a valid
lien against a vessel not covered by a preferred mortgage.
This provision is not intended to change any provision of
current law related to preferences given to any type of lien.
All aspects of admiralty law, including any relevant case law
applicable to chapter 313 of title 46, United States Code,
apply to this provision. This provision is not intended to
affect the rights of any party in a bankruptcy proceeding.
The effective date of this section is delayed until July 1,
2002, in order to give the public adequate time to become
familiar with these changes and to allow the Coast Guard to
change their regulations to reflect these changes.
Section 7. Tonnage of R/V DAVIDSON
Section 7 of the bill deems the research vessel DAVIDSON to
be less than 100 gross tons, as measured under chapter 145 of
title 46, United States Code, for purposes of applying the
optional regulatory measurement under section 14305 of title
46. The DAVIDSON is a former National Oceanographic and
Atmospheric Administration research vessel. This section will
allow the vessel to be used as part of an advanced marine
sciences technical training program developed by the vessel's
owners in conjunction with higher education and training
institutions in the Pacific Northwest and Alaska.
Section 8. Miscellaneous certificates of documentation
Section 8 of the bill waives certain coastwise trade laws for
20 individually listed vessels.
Section 9. Exemption for victory ships
Section 9 of the bill adds the vessels SS RED OAK VICTORY and
SS AMERICAN VICTORY to a list of three vessels subject to
section 3302(l) of title 46, United States Code. The Secretary
of Transportation may issue a permit exempting any of these
vessels from the inspection requirements for passenger vessels
so long as the vessels are owned by nonprofit organizations and
operated as nonprofit memorials to merchant mariners.
Section 10. Certificates of documentation for 3 barges
Section 10 of the bill waives the coastwise trade laws of the
United States for three barges as long as these barges are only
used in firework displays.
Section 11. Certificate of documentation for the EAGLE
Section 11 of the bill waives certain U.S. coastwise trade
laws for the vessel EAGLE for specific purposes.
Section 12. Waiver for vessels in New World Challenge Race
Section 12 of the bill allows ten sailboats participating in
the New World Challenge Race to transport non-paying guests,
from and around the ports of San Francisco and San Diego,
California, before and during stops of that race. The section
expires on either December 31, 2003, or 60 days after the last
competing sailboat reaches the end of that race in San
Francisco, whichever is earliest. For the purpose of this
section, the term ``guests'' is defined to include corporate
sponsors, their employees and guests, members of the media and
press, and any other supporter of the race.
Section 13. Vessel ASPHALT COMMANDER
Section 13 of the bill allows the owner of the vessel ASPHALT
COMMANDER to place this U.S.-flag vessel under a foreign
registry. The ASPHALT COMMANDER is an older single hull tanker
designed and built for the Military Sealift Command (MSC).
After the vessel was no longer needed by the MSC, the U.S.
Maritime Administration (MARAD) foreclosed and took possession
of the vessel. The current U.S. owner purchased the vessel from
MARAD and converted it into an asphalt carrier. Due to the
vessel's design and small cargo capacity, the owner is no
longer able to economically operate the vessel as a U.S.-flag
vessel.
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):
Coast Guard Authorization Act of 1996
SEC. 1120. DOCUMENTATION OF CERTAIN VESSELS.
(a) General Certificates.--Notwithstanding sections 12106,
12107, and 12108 of title 46, United States Code, section 8 of
the Act of June 19, 1886 (24 Stat. 81; chapter 421; 46 App.
U.S.C. 289), and section 27 of the Merchant Marine Act, 1920
(46 App. U.S.C. 883), as applicable on the date of enactment of
this Act, the Secretary of Transportation may issue a
certificate of documentation with appropriate endorsement for
employment in the coastwise trade for the following vessels:
(1) ABORIGINAL (United States official number
942118).
(2) ALPHA TANGO (United States official number
945782).
(3) ANNAPOLIS (United States official number 999008).
(4) ARK (United States official number 912726).
(5) AURA (United States official number 1027807).
(6) BABS (United States official number 1030028).
(7) BAGGER (State of Hawaii registration number
HA1809E).
(8) BAREFOOT'N (United States official number
619766).
(9) BARGE 76 (United States official number 1030612).
(10) BARGE 77 (United States official number
1030613).
(11) BARGE 78 (United States official number
1030614).
(12) BARGE 100 (United States official number
1030615).
(13) BEACON (United States official number 501539).
(14) BEAR (United States official number 695002).
(15) BEULA LEE (United States official number
928211).
(16) BEWILDERED (United States official number
902354).
(17) BIG DAD (United States official number 565022).
(18) BILLY BUCK (United States official number
939064).
(19) BROKEN PROMISE (United States official number
904435).
(20) CAPTAIN DARYL (United States official number
580125).
(21) CAROLYN (State of Tennessee registration number
TN1765C).
(22) CHARLOTTE (State of Maryland certification
number MD1397AM).
(23) CHESAPEAKE (United States official number
999010).
(24) CHRISSY (State of Maine registration
certification number ME4778B).
(25) COLT INTERNATIONAL (United States official
number 913637).
(26) CONSORT (United States official number 999005).
(27) CONSORTIUM (British registration number 303328).
(28) COURIER SERVICE (Vanuatu registration number
688).
(29) CURTIS BAY (United States official number
999007).
(30) DAMN YANKEE (United States official number
263611).
(31) DANTE (United States official number 556188).
(32) DELTA KING (United States official number
225874).
(33) DORDY III (United States official number
286553).
(34) DRAGONESSA (United States official number
646512).
(35) EAGLE MAR (United States official number
575349).
(36) EMERALD AYES (United States official number
986099)
(37) EMMA (United States official number 946449).
(38) EMPRESS (United States official number 975018).
(39) ENDEAVOUR (United States official number
947869).
(40) EVENING STAR (State of Hawaii registration
number HA8337D).
(41) EXPLORER (United States official number 918080).
(42) EXTREME (United States official number 1022278).
(43) EXUBERANCE (United States official number
698516).
(44) FIFTY ONE (United States official number
1020419).
(45) FINESSE (State of Florida registration number
7148).
(46) FOCUS (United States official number 909293).
(47) FREJA VIKING (Danish registration number A395).
(48) 3 barges owned by the Harbor Maine Corporation
(a corporation organized under the laws of the State of
Rhode Island) and referred to by that company as Harbor
221, Harbor 223, and Gene Elizabeth.
(49) GIBRALTAR (United States official number
668634).
(50) GLEAM (United States official number 921594).
(51) GOD'S GRACE II (State of Alaska registration
number AK5916B).
(52) HALCYON (United States official number 690219).
(53) HAMPTON ROADS (United States official number
999009).
(54) HERCO TYME (United States official number
911599).
(55) HER WEIGH (United States official number
919074).
(56) HIGH HOPES (United States official number
935174).
(57) HIGH HOPES II (United States official number
959439).
(58) HOPTOAD (Hull Identification number 528162 NET
12).
(59) HOT WATER (United States official number
965985).
(60) IDUN VIKING (Danish registration number A433).
(61) INTREPID (United States official number 508185).
(62) ISABELLE (United States official number 600655).
(63) ISLAND STAR (United States official number
673537).
(64) JAJO (Hull ID number R1Z200207H280).
(65) JAMESTOWN (United States official number
999006).
(66) JIVE DEVIL (United States official number
685348).
(67) JOAN MARIE (State of North Carolina registration
number NC2319AV).
(68) KALYPSO (United States official number 566349).
(69) KARMA (United States official number 661709).
(70) LADY HAWK (United States official number
961095).
(71) LIBERTY (United States official number 375248).
(72) LIV VIKING (Danish registration number A394).
(73) M/V MARION C II (United States official number
570892).
(74) MAGIC CARPET (United States official number
278971).
(75) MAGIC MOMENTS (United States official number
653689).
(76) MADRINE (United States official number 663842).
(77) MARALINDA (State of Florida registration number
C023203-97).
(78) MARANTHA (United States official number 638787).
(79) MARSH GRASS II (Hull ID number AUKEV51139K690).
(80) MEMORY MAKER (Hull No. 3151059, State of
Maryland registration number MD8867AW).
(81) MOONRAKER (United States official number
645981).
(82) MORGAN (State of Ohio registration number OH-
0358-EA).
(83) MOVIN ON (United States official number 585100).
(84) MY LITTLE SHIP (State of Washington registration
number WN9979MF5).
(85) NAMASTE (United States official number 594472).
(86) OLD HAT (United States official number 508299).
(87) ONRUST (United States official number 515058).
(88) PAUL JOHANSEN (United States official number
1033607).
(89) PHOENIX (United States official number 940997).
(90) PLAY HARD (State of North Carolina registration
number NC1083CE).
(91) POLICY MAKER III (United States official number
569223).
(92) PRIME TIME (United States official number
660944).
(93) QUIET SQUAW (United States official number
998717).
(94) QUIETLY (United States official number 658315).
(95) QUINTESSENCE (United States official number
934393).
(96) RAFFLES LIGHT (United States official number
501584).
(97) RAINBOW'S END (United States official number
1026899; Hull ID number MY13708C787).
(98) RATTLESNAKE (Canadian registration number
802702).
(99) REEL TOY (United States official number 698383).
(100) RELENTLESS (United States official number
287008).
(101) 2 barges owned by Roen Salvage (a corporation
organized under the laws of the State of Wisconsin) and
numbered by that company as barge 103 and barge 203.
(102) ROYAL AFFAIRE (United States official number
649292).
(103) SALLIE D (State of Maryland registration number
MD2655A).
(104) SARAH-CHRISTEN (United States official number
342195).
(105) SEA MISTRESS (United States official number
696806).
(106) SEA SISTER (United States official number
951817).
(107) SERENITY (United States official number
1021393).
(108) SHAKA MARU (United States official number
983176).
(109) SHAMROCK V (United States official number
900936).
(110) SHOGUN (United States official number 577839).
(111) SISU (United States official number 293648).
(112) SMALLEY (6808 Amphibious Dredge: State of
Florida registration number FL1855FF).
(113) SNOW HAWK (United States official number 955-
637).
(114) SOUTHERN CRUZ (United States official number
556797).
(115) SUNDOWN (United States official number 293434).
(116) SUNRISE (United States official number 950381).
(117) TECUMSEH (United States official number
668633).
(118) THE SUMMER WIND (United States official number
905819).
(119) TIVOLI (United States official number 582516).
(120) TOO MUCH FUN (United States official number
936565).
(121) TOP GUN (United States official number 623642).
(122) TRIAD (United States official number 988602).
(123) TWO CAN (United States official number 932361).
(124) VICTORIA CLIPPER II (United States official
number 725338).
(125) WATERFRONT PROPERTY (United States official
number 987686).
(126) WESTFJORD (Hull ID number X-53-109).
(127) WESTERN ATLANTIC (Panamanian registration
number 10484-80-CEO).
(128) WHITE WING (United States official number
283818).
(129) WHY KNOT (United States official number
688570).
(130) WOLF GANG II (United States official number
984934).
(131) YES DEAR (United States official number
578550).
(132) Former United States military vessels, as
follows:
(A) LACV-30 hovercraft hulls numbered 1
through 26.
(B) AP-188 hovercraft hulls numbered 8701 and
8901.
For the purposes of chapter 121 of title 46, United
States Code, and section 27 of the Merchant Marine Act,
1920 (46 App. U.S.C. 883), the engine twin paks, the
thrust and lift engines, and all spare parts,
appurtenances, and accessories transferred by the
United States with the vessels referred to in this
paragraph are deemed to have been built in the United
States.
(b) M/V Twin Drill.--Section 601(d) of the Coast Guard
Authorization Act of 1993 (Public Law 103-206) is amended--
(1) in paragraph (3) by striking ``June 30, 1995''
and inserting ``June 30, 1998''; and
(2) in paragraph (4)--
(A) by striking ``12 months'' and inserting
``36 months''; and
(B) by inserting ``or convert under the same
terms and conditions as provided in paragraphs
(1) and (2)'' after ``construct''; and
(3) in paragraph (5) by striking ``constructed'' and
inserting ``delivered''.
(c) Certificates of Documentation for Gallant Lady.--
(1) In general.--Notwithstanding section 27 of the
Merchant Marine Act, 1920 (46 App. U.S.C. 883), section
8 of the Act of June 19, 1886 (24 Stat. 81, chapter
421; 46 App. U.S.C. 289), and section 12106 of title
46, United States Code, and subject to paragraph (2),
the Secretary of Transportation may issue a certificate
of documentation with an appropriate endorsement for
employment in coastwise trade for each of the following
vessels:
(A) GALLANT LADY (Feadship hull number 645,
approximately 130 feet in length).
(B) GALLANT LADY (Feadship hull number 651,
approximately 172 feet in length).
(2) Limitation on operation.--Coastwise trade
authorized under a certificate of documentation issued
for a vessel under this section shall be limited to the
carriage of passengers in association with
contributions to charitable organizations no portion of
which is received, directly or indirectly, by the owner
of the vessel.
(3) Condition.--The Secretary may not issue a
certificate of documentation for a vessel under
paragraph (1) unless, not later than 90 days after the
date of enactment of this Act, the owner of the vessel
referred to in paragraph (1)(B) submits to the
Secretary a letter expressing the intent of the owner
to, before April 1, 1998, enter into a contract for the
construction inthe United States of a passenger vessel
of at least 130 feet in length.
(4) Effective date of certificates.--A certificate of
documentation issued under paragraph (1) shall take
effect--
(A) for the vessel referred to in paragraph
(1)(A), on the date of the issuance of the
certificate; and
(B) for the vessel referred to in paragraph
(1)(B), on the date of delivery of the vessel
to the owner.
(5) Termination of effectiveness of certificates.--A
certificate of documentation issued for a vessel under
paragraph
(1) shall expire--
(A) on the date of the sale of the vessel by
the owner;
(B) on April 1, 1998, if the owner of the
vessel referred to in paragraph (1)(B) has not
entered into a contract for construction of a
vessel in accordance with the letter of intent
submitted to the Secretary under paragraph (3);
or
(C) on such date as a contract referred to in
paragraph (2) is breached, rescinded, or
terminated (other than for completion of
performance of the contract) by the owner of
the vessel referred to in paragraph (1)(B).
(d) Certificates of Documentation for Enchanted Isle and
Enchanted Seas.--Notwithstanding section 27 of the Merchant
Marine Act, 1920 (46 App. U.S.C. 883), the Act of June 19, 1886
(46 App. U.S.C. 289), section 12106 of title 46, United States
Code, section 506 of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1156), and any agreement with the United States
Government, the Secretary of Transportation may issue
certificates of documentation with a coastwise endorsement for
the vessels ENCHANTED ISLE (Panamanian official number 14087-
84B) and ENCHANTED SEAS (Panamanian official number 14064-84D),
except that the vessels may not operate between or among
islands in the State of Hawaii.
(e) Exception to Chain of Title Restriction.--Section 27 of
the Merchant Marine Act, 1920 (46 App. U.S.C. 883) is amended
in the first proviso after ''no vessel'' by inserting ''of more
than 200 gross tons (as measured under chapter 143 of title 46,
United States Code)''.
(f) Certificate of Documentation for a Liquified Gas
Tanker.--Notwithstanding section 27 of the Merchant Marine Act,
1920 (46 App. U.S.C. 883), section 12106 of title 46, United
States Code, section 506 of the Merchant Marine Act, 1936 (46
App. U.S.C. 1156) and any agreement with the United States
Government, the Secretary of Transportation may issue a
certificate of documentation with a coastwise endorsement for a
vessel to transport liquified natural gas or liquified
petroleum gas to the Commonwealth of Puerto Rico from other
ports in the United States, if the vessel--
(1) is a foreign-built vessel that was built prior to
the date of enactment of this Act; or
(2) is documented under chapter 121 of title 46,
United States Code, before the date of enactment of
this Act, even if the vessel is placed under a foreign
registry and subsequently redocumented under that
chapter for operation under this section.
(g) Vessels Deemed Constructed in United States.--
Notwithstanding any other provision of law, the coastwise
qualified vessels COASTAL VENTURE (United States official
number 971086), COASTAL SEA (United States official number
666754), COASTAL NOMAD (United States official number 686157),
and COASTAL MERCHANT (United States official number 1038382)
are deemed to have been constructed in the United States as of
the date of their original delivery.
(h) Limited Waiver for the Tug MV Janis Guzzle.--
Notwithstanding any other law or any agreement with the United
States Government, the tug MV JANIS GUZZLE (ex-G.R. MOIR;
United States official number 608018) may be permanently
operated in the domestic trade of the United States upon the
repayment of
$1,140,619 to the Secretary of Transportation.
(i) Regent Rainbow.--Notwithstanding section 27 of the
Merchant Marine Act, 1920 (46 App. U.S.C. 883), section 8 of
the Act of June 19, 1886 (46 App. U.S.C. 289), section 12106 of
title 46, United States Code, section 506 of the Merchant
Marine Act, 1936 (46 App. U.S.C. 1156), and any agreement with
the United States Government, the Secretary of Transportation
may issue a certificate of documentation with appropriate
endorsement for employment in the coastwise trade for the
vessel REGENT RAINBOW (Bahamas official number 715557), after
the completion of the sale of the REGENT RAINBOW to an operator
of another passenger vessel measuring more that 20,000 gross
tons that on the day before the date of the enactment of this
Act is in operation with a coastwise endorsement.
(j) Military Hovercraft.--Notwithstanding any other provision
of law, the Administrator of General Services shall waive all
conditions and restrictions relating to transfer or use of the
property described in subsection (a)(132) (including the engine
twin paks, the thrust and lift engines, and all spare parts,
appurtenances, and accessories referred to in that subsection)
and shall transfer unconditional and unrestricted title to all
such property to the recipient eligible donee.
TITLE 46. SHIPPING
SUBTITLE II. VESSELS AND SEAMEN
PART B. INSPECTION AND REGULATION OF VESSELS
CHAPTER 33. INSPECTION GENERALLY
Sec. 3302. Exemptions
(a) A vessel is not excluded from one category only because
the vessel is--
(1) included in another category of section 3301 of
this title; or
(2) excluded by this section from another category of
section 3301 of this title.
(b) Except as provided in subsection (c)(3) of this section,
a fishing vessel, including a vessel chartered part-time as a
fish tender vessel, is exempt from section 3301(1), (7), (11),
and (12) of this title.
(c)(1) Except as provided in paragraph (3) of this
subsection, a fish processing vessel of not more than 5,000
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
is exempt from section 3301(1), (6), (7), (11), and (12) of
this title.
(2) Except as provided in paragraphs (3) and (4) of this
subsection, a fish tender vessel of not more 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
is exempt from section 3301(1), (6), (7), (11), and (12) of
this title.
(3)(A) A fishing vessel or fish processing vessel is exempt
from section 3301 (1), (6), and (7) of this title when
transporting cargo (including fisheries-related cargo) to or
from a place in Alaska if--
(i) that place does not receive weekly common carrier
service by water from a place in the United States;
(ii) that place receives such common carrier service
and the cargo is of a type not accepted by that common
carrier service; or
(iii) the cargo is proprietary cargo owned by the
owner of the vessel or any affiliated entity or
subsidiary.
(B) A fish tender vessel of not more 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,
which is qualified to engage in the Aleutian trade is exempt
from section 3301 (1), (6), and (7) of this title when
transporting cargo (including fisheries-related cargo) to or
from a place in Alaska outside the Aleutian trade geographic
area if--
(i) that place does not receive weekly common carrier
service by water from a place in the United States;
(ii) that place receives such common carrier service
and the cargo is of a type not accepted by that common
carrier service; or
(iii) the cargo is proprietary cargo owned by the
owner of the vessel or any affiliated entity or
subsidiary.
(C) In this paragraph, the term ``proprietary cargo'' means
cargo that--
(i) is used by the owner of the vessel or any
affiliated entity or subsidiary in activities directly
related to fishing or the processing of fish;
(ii) is consumed by employees of the owner of the
vessel or any affiliated entity or subsidiary who are
engaged in fishing or in the processing of fish; or
(iii) consists of fish or fish products harvested or
processed by the owner of the vessel or any affiliated
entity or subsidiary.
(D) Notwithstanding the restrictions in subparagraph (B) of
this paragraph, vessels qualifying under subparagraph (B) may
transport cargo (including fishery-related products) from a
place in Alaska receiving weekly common carrier service by
water to a final destination in Alaska not receiving weekly
service by water from common carriers.
(4) A fish tender vessel is exempt from section 3301 (1),
(6), and (7) of this title when engaged in the Aleutian trade
if the vessel--
(A) is not more 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) has an incline test performed by a marine
surveyor; and
(C) has written stability instructions posted on
board the vessel.
(d)(1) A motor vessel of less than 150 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, constructed before
August 23, 1958, is not subject to inspection under section
3301(1) of this title if the vessel is owned or demise
chartered to a cooperative or association that only transports
cargo owned by at least one of its members on a nonprofit basis
between places within the waters of--
(A) southeastern Alaska shoreward of the Boundary
Line; or
(B) southeastern Alaska shoreward of the Boundary
Line and--
(i) Prince Rupert, British Columbia; or
(ii) waters of Washington shoreward of the
Boundary Line, via sheltered waters, as defined
in article I of the treaty dated December 9,
1933, between the United States and Canada
defining certain waters as sheltered waters.
(2) The transportation authorized under this subsection is
limited to and from places not receiving annual weekly
transportation service from any part of the United States by an
established water common carrier. However, the limitation does
not apply to transporting cargo of a character not accepted for
transportation by that carrier.
(e) A vessel laid up, dismantled, or out of commission is
exempt from inspection.
(f) Section 3301 (4) and (8) of this title does not apply to
an oceanographic research vessel because it is carrying
scientific personnel.
(g)(1) Except when compliance with major structural or major
equipment requirements is necessary to remove an especially
hazardous condition, an offshore supply vessel is not subject
to regulations or standards for those requirements if the
vessel--
(A) was operating as an offshore supply vessel before
January 2, 1979; or
(B) was contracted for before January 2, 1979, and
entered into service as an offshore supply vessel
before October 6, 1980.
(2) After December 31, 1988, this subsection does not apply
to an offshore supply vessel that is at least 20 years of age.
(h) An offshore supply vessel operating on January 1, 1979,
under a certificate of inspection issued by the Secretary, is
subject to an inspection standard or requirement only if the
standard or requirement could have been prescribed for the
vessel under authority existing under law on October 5, 1980.
(i)(1) The Secretary may issue a permit exempting a vessel
from any part of the requirements of this part for vessels
transportingcargo, including bulk fuel, from one place in
Alaska to another place in Alaska only if the vessel--
(A) is not more than 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;
(B) is in a condition that does not present an
immediate threat to the safety of life or the
environment; and
(C) was operating in the waters off Alaska as of June
1, 1976, or the vessel is a replacement for a vessel
that was operating in the waters off Alaska as of June
1, 1976, if the vessel being replaced is no longer in
service.
(2) Except in a situation declared to be an emergency by the
Secretary, a vessel operating under a permit may not transport
cargo to or from a place if the cargo could be transported by
another commercial vessel that is reasonably available and that
does not require exemptions to operate legally or if the cargo
could be readily transported by overland routes.
(3) A permit may be issued for a specific voyage or for not
more than one year. The permit may impose specific requirements
about the amount or type of cargo to be carried, manning, the
areas or specific routes over which the vessel may operate, or
other similar matters. The duration of the permit and
restrictions contained in the permit shall be at the sole
discretion of the Secretary.
(4) A designated Coast Guard official who has reason to
believe that a vessel issued a permit is in a condition or is
operated in a manner that creates an immediate threat to the
safety of life or the environment or is operated in a manner
that is inconsistent with the terms of the permit, may direct
the master or individual in charge to take immediate and
reasonable steps to safeguard life and the environment,
including directing the vessel to a port or other refuge.
(5) If a vessel issued a permit creates an immediate threat
to the safety of life or the environment, or is operated in a
manner inconsistent with the terms of the permit or the
requirements of paragraph (2) of this subsection, the permit
may be revoked. The owner, charterer, managing operator, agent,
master, or individual in charge of a vessel issued a permit,
that willfully permits the vessel to be operated, or operates,
the vessel in a manner inconsistent with the terms of the
permit, is liable to the United States Government for a civil
penalty of not more than $1,000.
(j) Notwithstanding another provision of this chapter, the
Secretary is not required to inspect or prescribe regulations
for a nautical school vessel of not 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--
(1) when used in connection with a course of
instruction dealing with any aspect of maritime
education or study; and
(2) operated by--
(A) the United States Merchant Marine
Academy; or
(B) a State maritime academy assisted under
section 1304 of the Merchant Marine Act, 1936
(46 App. U.S.C. 1295c).
(k) Only the boiler, engine, and other operating machinery of
a steam vessel that is a recreational vessel of not more than
65 feet overall in length are subject to inspection under
section 3301(9) of this title.
(l)(1) The Secretary may issue a permit exempting the
following vessels from the requirements of this part for
passenger vessels so long as the vessels are owned by nonprofit
organizations and operated as nonprofit memorials to merchant
mariners:
(A) The steamship John W. Brown (United States
official number 242209), owned by Project Liberty Ship
Baltimore, Incorporated, located in Baltimore,
Maryland.
(B) The steamship Lane Victory (United States
official number 248094), owned by the United States
Merchant Marine Veterans of World War II, located in
San Pedro, California.
(C) The steamship Jeremiah O'Brien (United States
official number 243622), owned by the National Liberty
Ship Memorial, Inc.
(D) The steamship SS Red Oak Victory (United states
official number 249410), owned by the Richmond Museum
Association, located in Richmond, California.
(E) The SS American Victory (United states official
number 248005), owned by Victory Ship, Inc., of Tampa,
Florida.
(2) The Secretary may issue a permit for a specific voyage or
for not more than one year. The Secretary may impose specific
requirements about the number of passengers to be carried,
manning, the areas or specific routes over which the vessel may
operate, or other similar matters.
(3) A designated Coast Guard official who has reason to
believe that a vessel operating under this subsection is in a
condition or is operated in a manner that creates an immediate
threat to life or the environment or is operated in a manner
that is inconsistent with this section, may direct the master
or individual in charge to take immediate and reasonable steps
to safeguard life and the environment, including directing the
vessel to a port or other refuge.
(m) A seagoing barge is not subject to inspection under
section 3301(6) of this title if the vessel is unmanned and
does not carry--
(1) a hazardous material as cargo; or
(2) a flammable or combustible liquid, including oil,
in bulk.
TITLE 46. SHIPPING
SUBTITLE II. VESSELS AND SEAMEN
PART H. IDENTIFICATION OF VESSELS
CHAPTER 121. DOCUMENTATION OF VESSELS
Sec. 12111. Surrender and invalidation of certificates of
documentation
(a) A certificate of documentation is invalid if the vessel
for which it is issued--
(1) no longer meets the requirements of this chapter
and regulations prescribed under this chapter
applicable to that certificate of documentation; or
(2) is placed under the command of a person not a
citizen of the United States in violation of section
12110(d) of this title.
(b) An invalid certificate of documentation must be
surrendered as provided by regulations prescribed by the
Secretary of Transportation.
(c)(1) Notwithstanding subsection (a) of this section, until
the certificate of documentation is surrendered with the
approval of the Secretary, a documented vessel is deemed to
continue to be documented under this chapter for purposes of--
(A) chapter 313 of this title for an instrument filed
or recorded before the date of invalidation and an
assignment after that date;
(B) sections 9 and 37(b) of the Shipping Act, 1916
(46 App. U.S.C. 808, 835(b));
(C) section 902 of the Merchant Marine Act, 1936 (46
App. U.S.C. 1242); and
(D) any other law of the United States identified by
the Secretary by regulation as a law to which the
Secretary applies this subsection.
(2) This subsection does not apply when a vessel is forfeited
or sold by order of a district court of the United States.
(3) The Secretary may approve the surrender of the
certificate of documentation of a documented vessel covered by
a mortgage filed or recorded under section 31321 of this title
only if the mortgagee consents.
(d)(1) The Secretary shall not refuse to approve the
surrender of the certificate of documentation for a vessel
solely on the basis that a notice of a claim of a lien on the
vessel has been recorded under section 31343(a) of this title.
(2) The Secretary may condition approval of the surrender of
the certificate of documentation for a vessel over 1,000 gross
tons.
TITLE 46. SHIPPING
SUBTITLE III. MARITIME LIABILITY
CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS
SUBCHAPTER II. COMMERCIAL INSTRUMENTS
Sec. 31325. Preferred mortgage liens and enforcement
(a) A preferred mortgage is a lien on the mortgaged vessel in
the amount of the outstanding mortgage indebtedness secured by
the vessel.
(b) On default of any term of the preferred mortgage, the
mortgagee may--
(1) enforce the preferred mortgage lien in a civil
action in rem for a documented vessel, a vessel to be
documented under chapter 121 of this title, a vessel
titled in a State, or a foreign vessel;
(2) enforce a claim for the outstanding indebtedness
secured by the mortgaged vessel in--
(A) a civil action in personam in admiralty
against the mortgagor, maker, comaker, or
guarantor for the amount of the outstanding
indebtedness or any deficiency in full payment
of that indebtedness; and
(B) a civil action against the mortgagor,
maker, comaker, or guarantor for the amount of
the outstanding indebtedness or any deficiency
in full payment of that indebtedness; and
(3) enforce the preferred mortgage lien or a claim
for the outstanding indebtedness secured by the
mortgaged vessel, or both, by exercising any other
remedy (including an extrajudicial remedy) against a
documented vessel, a vessel for which an application
for documentation is filed under chapter 121 of this
title, a vessel titled in a State, a foreign vessel, or
a mortgagor, maker, comaker, or guarantor for the
amount of the outstanding indebtedness or any
deficiency in full payment of that indebtedness, if--
(A) the remedy is allowed under applicable
law; and
(B) the exercise of the remedy will not
result in a violation of section 9 or 37 of the
Shipping Act, 1916 (46 App. U.S.C. 808, 835).
(c) The district courts have original jurisdiction of a civil
action brought under subsection (b)(1) or (2) of this section.
However, for a documented vessel, a vessel to be documented
under chapter 121 of this title, a vessel titled in a State, or
a foreign vessel, this jurisdiction is exclusive of the courts
of the States for a civil action brought under subsection
(b)(1) of this section.
(d)(1) Actual notice of a civil action brought under
subsection (b)(1) of this section, or to enforce a maritime
lien, must be given in the manner directed by the court to--
(A) the master or individual in charge of the vessel;
(B) any person that recorded under section 31343(a)
or (d) of this title [a notice of a claim] an unexpired
notice of a claim of an undischarged lien on the
vessel; and
(C) a mortgagee of a mortgage filed or recorded under
section 31321 of this title that is an undischarged
mortgage on the vessel.
(2) Notice under paragraph (1) of this subsection is not
required if, after search satisfactory to the court, the person
entitled to the notice has not been found in the United States.
(3) Failure to give notice required by this subsection does
not affect the jurisdiction of the court in which the civil
action is brought. However, unless notice is not required under
paragraph (2) of this subsection, the party required to give
notice is liable to the person not notified for damages in the
amount of that person's interest in the vessel terminated by
the action brought under subsection (b)(1) of this section. A
civil action may be brought to recover the amount of the
terminated interest. The district courts have original
jurisdiction of the action, regardless of the amount in
controversy or the citizenship of the parties. If the plaintiff
prevails, the court may award costs and attorney fees to the
plaintiff.
(e) In a civil action brought under subsection (b)(1) of this
section--
(1) the court may appoint a receiver and authorize
the receiver to operate the mortgaged vessel and shall
retain in rem jurisdiction over the vessel even if the
receiver operates the vessel outside the district in
which the court is located; and
(2) when directed by the court, a United States
marshal may take possession of a mortgaged vessel even
if the vessel is inthe possession or under the control
of a person claiming a possessory common law lien.
(f)(1) Before title to the documented vessel or vessel for
which an application for documentation is filed under chapter
121 is transferred by an extrajudicial remedy, the person
exercising the remedy shall give notice of the proposed
transfer to the Secretary, to the mortgagee of any mortgage on
the vessel filed in substantial compliance with section 31321
of this title before notice of the proposed transfer is given
to the Secretary, and to any person that recorded [a notice of
a claim] an unexpired notice of a claim of an undischarged lien
on the vessel under section 31343(a) or (d) of this title
before notice of the proposed transfer is given to the
Secretary.
(2) Failure to give notice as required by this subsection
shall not affect the transfer of title to a vessel. However,
the rights of any holder of a maritime lien or a preferred
mortgage on the vessel shall not be affected by a transfer of
title by an extrajudicial remedy exercised under this section,
regardless of whether notice is required by this subsection or
given.
(3) The Secretary shall prescribe regulations establishing
the time and manner for providing notice under this subsection.
TITLE 46. SHIPPING
SUBTITLE III. MARITIME LIABILITY
CHAPTER 313. COMMERCIAL INSTRUMENTS AND MARITIME LIENS
SUBCHAPTER III. MARITIME LIENS
[Sec. 31343. Recording and discharging liens on preferred mortgage
vessels]
Sec. 33143. Recording and discharging liens
(a) Except as provided under subsection (d) of this section,
a person claiming a lien on a vessel [covered by a preferred
mortgage filed or recorded under this chapter] documented, or
for which an application for documentation has been filed,
under chapter 121 may record with the Secretary of
Transportation a notice of that person's lien claim on the
vessel. To be recordable, the notice must--
(1) state the nature of the lien;
(2) state the date the lien was established;
(3) state the amount of the lien;
(4) state the name and address of the person; and
(5) be signed and acknowledged.
[(b) The Secretary shall record a notice complying with
subsection (a) of this section.]
(b)(1) The Secretary shall record a notice complying with
subsection (a) of this section if, when the notice is presented
to the Secretary for recording, the person having the claim
files with the notice a declaration stating the following:
(A) The information in the notice is true and correct
to the best of the knowledge, information, and belief
of the individual who signed it.
(B) A copy of the notice, as presented for
recordation, has been sent to each of the following:
(i) The owner of the vessel.
(ii) Each person that recorded under section
31343(a) of this title an unexpired notice of a
claim of an undischarged lien on the vessel.
(iii) The mortgagee of each mortgage filed or
recorded under section 31321 of this title that
is an undischarged mortgage on the vessel.
(2) A declaration under this subsection filed by a person
that is not an individual must be signed by the president,
member, partner, trustee, or other official authorized to
execute the declaration on behalf of the person.
[(c) On full and final discharge of the indebtedness that is
the basis for a claim recorded under subsection (b) of this
section, on request of the Secretary or owner, the person
having the claim shall provide the Secretary with an
acknowledged certificate of discharge of the indebtedness. The
Secretary shall record the certificate.]
(c)(1) On full and final discharge of the indebtedness that
is the basis for a notice of claim of lien recorded under
subsection (b) of this section, the person having the claim
shall provide the Secretary with an acknowledged certificate of
discharge of the indebtedness. The Secretary shall record the
certificate.
(2) The district courts of the United States shall have
jurisdiction over a civil action to declare that a vessel is
not subject to a lien claimed under subsection (b) of this
section, or that the vessel is not subject to the notice of
claim of lien, or both, regardless of the amount in controversy
or the citizenship of the parties. Venue in such an action
shall be in the district where the vessel is found, or where
the claimant resides, or where the notice of claim of lien is
recorded. The court may award costs and attorneys fees to the
prevailing party, unless the court finds that the position of
the other party was substantially justified or other
circumstances make an award of costs and attorneys fees unjust.
(d) A person claiming a lien on a vessel covered by a
preferred mortgage under section 31322(d) of this title must
record and discharge the lien as provided by the law of the
State in which the vessel is titled.
(e) A notice of claim of lien recorded under subsection (b)
of this section shall expire 3 years after the date specified
in the notice under subsection (b) of this section.
(f) This section does not alter in any respect the law
pertaining to the establishment of a maritime lien, the remedy
provided by such a lien, or the defenses thereto, including any
defense under the doctrine of laches.
SHIPPING ACT, 1916
[46 U.S.C. APP. 808]
Sec. 9. Registration, enrollment, and licensing of vessels purchased,
chartered, or leased; regulations; coastwise trade
(a) [Repealed].
(b) Every vessel purchased, chartered, or leased from the
Secretary of Transportation shall, unless otherwise authorized
by the
Secretary of Transportation, be operated only under such
registry or enrollment and license. Such vessels while employed
solely as merchant vessels shall be subject to all laws,
regulations, and liabilities governing merchant vessels,
whether the United States be interested therein as owner, in
whole or in part, or hold any mortgage, lien, or other interest
therein.
(c) [Except as provided in section 611 of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1181), and sections 12106(e),
31322(a)(1)(D) of title 46,] Except as provided in section 611
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1181) and in
sections 12106(e) and 31322(a)(1)(D) of title 46, United States
Code, a person may not, without the approval of the Secretary
of Transportation--
(1) sell, lease, charter, deliver, or in any manner
transfer, or agree to sell, lease, charter, deliver, or
in any manner transfer, to a person not a citizen of
the United States, any interest in or control of a
documented vessel (except in a vessel that has been
operated only as a fishing vessel, fish processing
vessel, or fish tender vessel (as defined in section
2101 of title 46, United States Code) or in a vessel
that has been operated only for pleasure) owned by a
citizen of the United States or the last documentation
of which was under the laws of the United States; or
(2) place a documented vessel, or a vessel the last
documentation of which was under the laws of the United
States, under foreign registry or operate that vessel
under the authority of a foreign country.
(d)(1) Any charter, sale, or transfer of a vessel, or
interest in or control of that vessel, contrary to this section
is void.
(2) A person that knowingly charters, sells, or transfers a
vessel, or interest in or control of that vessel, contrary to
this section shall be fined under title 18, United States Code,
imprisoned for not more than 5 years, or both.
(3) A documented vessel may be seized by, and forfeited to,
the United States Government if--
(A) the vessel is placed under foreign registry or
operated under the authority of a foreign country
contrary to this section; or
(B) a person knowingly charters, sells, or transfers
a vessel, or interest or control in that vessel,
contrary to this section.
(4) A person that charters, sells, or transfers a vessel, or
an interest in or control of a vessel, in violation of this
section is liable to the United States Government for a civil
penalty of not more than $ 10,000 for each violation.
(e) Notwithstanding subsection (c)(2), the Merchant Marine
Act, 1936, or any contract entered into with the Secretary of
Transportation under that Act, a vessel may be placed under a
foreign registry, without approval of the Secretary, if--
(1)(A) the Secretary determines that at least one
replacement vessel of a capacity that is equivalent or
greater, as measured by deadweight tons, gross tons, or
container equivalent units, as appropriate, is
documented under chapter 121 of title 46, United States
Code, by the owner of the vessel placed under the
foreign registry; and
(B) the replacement vessel is not more than 10 years
of age on the date of that documentation;
(2)(A) an application for an operating agreement
under subtitle B of title VI of the Merchant Marine
Act, 1936 has been filed with respect to a vessel which
is eligible to be included in the Maritime Security
Fleet under section 651(b)(1) of that Act; and
(B) the Secretary has not awarded an operating
agreement with respect to that vessel within 90 days
after the date of that application;
(3) a contract covering the vessel under subtitle A
of title VI of the Merchant Marine Act, 1936 has
expired, and that vessel is more than 15 years of age
on the date the contract expires; or
(4) an operating agreement covering the vessel under
subtitle B of title VI of the Merchant Marine Act, 1936
has expired.
(e) To promote financing with respect to a vessel to be
documented under chapter 121 of title 46, United States Code,
the Secretary may grant approval under subsection (c) before
the date the vessel is documented.