[Senate Report 109-327]
[From the U.S. Government Publishing Office]
109th Congress Report
SENATE
2nd Session 109-327
_______________________________________________________________________
Calendar No. 591
MARITIME ADMINISTRATION IMPROVEMENT ACT OF 2006
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3852
DATE deg.September 6, 2006.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred ninth congress
second session
TED STEVENS, Alaska, Chairman
DANIEL K. INOUYE, Hawaii, Co-Chairman
JOHN McCAIN, Arizona JOHN D. ROCKEFELLER IV, West
CONRAD BURNS, Montana Virginia
TRENT LOTT, Mississippi JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas 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
GEORGE ALLEN, Virginia FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire E. BENJAMIN NELSON, Nebraska
JIM DeMINT, South Carolina MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
Lisa Sutherland, Staff Director
Christine Kurth, Deputy Staff Director
Kenneth Nahigian, Chief Counsel
Margaret Cummisky, Democratic Staff Director and Chief Counsel
Samuel Whitehorn, Democratic Deputy Staff Director and General Counsel
Calendar No. 591
109th Congress Report
SENATE
2nd Session 109-327
======================================================================
MARITIME ADMINISTRATION IMPROVEMENT ACT OF 2006
_______
September 6, 2006.--Ordered to be printed
_______
Mr. Stevens, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 3852]
The Committee on Commerce, Science, and Transportation
reports favorably an original bill to enhance certain maritime
programs of the Department of Transportation, and for other
purposes, and recommends that the bill joint
resolution deg. do pass.
Purpose of the Bill
The bill includes several provisions designed to clarify what
is expected of cadets and graduates of the USMMA, as well as
some of the functions and programs overseen by MARAD. Several
provisions of the bill would authorize MARAD to retain a
portion of the fees it charges and collects for certain duties
the agency performs. In addition, the bill includes technical
corrections which would restore vessel transfer authority to
the Secretary of Transportation, and would clarify the use of
funds in excess of those necessary for merchant marine vessel
war risk insurance.
Background and Needs
The mission of MARAD is to promote the development and
maintenance of an adequate, well-balanced U.S. merchant marine,
sufficient to carry the Nation's domestic waterborne commerce
and a substantial portion of its waterborne foreign commerce,
and capable of serving as a naval and military auxiliary in
time of war or national emergency. MARAD also works to ensure
that the United States enjoys adequate shipbuilding and repair
service, efficient ports, effective intermodal water and land
transportation systems, and adequate reserve shipping capacity
in times of national emergency.
To meet its mission, MARAD administers various U.S. merchant
marine support programs within the Department of Transportation
(DOT). These programs include the Maritime Security Program
(MSP), title XI maritime loan guarantee program, a small
shipyard and maritime community assistance program, various
cargo preference programs, maintenance of the Ready Reserve
Force (RRF)--often used in domestic disaster relief efforts--
and the National Defense Reserve Force (NDRF), and operation of
the USMMA at Kings Point, NY. MARAD has approximately 825
employees, including the RRF and the USMMA staff.
The MSP is an element of the U.S. maritime transportation
system, which provides funded operating agreements to privately
owned, U.S.-flagged, and U.S.-crewed vessels in international
trade. This fleet also is available to support the Department
of Defense (DOD) sustainment in a contingency. Currently, the
MSP is authorized through fiscal year 2015 and subject to a
separate annual appropriation.
MARAD's operations and training account funds the
administration and staffing of MARAD programs (other than the
title XI guaranteed loan program and RRF costs), the USMMA,
State maritime school costs associated with Federal training
ships, training courses for merchant mariners, various
operating programs, and research and development. The USMMA
educates young men and women to become officers in the U.S.
merchant marine.
The Global Maritime and Transportation School (GMATS) is a
private, tuition-funded graduate school housed at the USMMA,
which offers advanced mariner training, and logistics and
supply chain management courses. The primary mission of GMATS
is to offer leading edge education and training programs that
will benefit maritime and transportation professionals from
government agencies, the military, and private industry. Funds
to operate GMATS are generated through tuition, meal, and
lodging fees. It is not an appropriated instrumentality of the
DOT. The current process through which some applicants are
accepted is cumbersome and this legislation would reduce that
burden and clarify GMATS's role.
Summary of Provisions
Several provisions of the bill are designed to clarify what
is expected of cadets at the USMMA, and provide greater choice
for its graduates. The bill would require students entering the
USMMA to meet the same physical and mental standards required
by the DOD to ensure that students admitted to the Academy are
capable of fulfilling the requirements of their service
commitment agreement upon graduation. The bill also would
require DOD, the U.S. Coast Guard, and the National Oceanic and
Atmospheric Administration (NOAA) to certify annually to MARAD
which Academy graduates have remained on active duty or in
ready reserve status, thus confirming the fulfillment of a
graduate's service commitment agreement. This would provide
MARAD a mechanism to recover tuition from graduates who fail to
perform their duties or are found in noncompliance with their
commitment agreement.
The bill would exempt Academy graduates who choose to serve
on active duty in the Armed Forces from certain requirements
otherwise required of graduates who do not serve on active
duty. Those cadets who chose to serve on active duty instead
would be obligated to the terms of service of the branch under
which they serve. Individuals attending a State maritime
academy would be required to enlist in either the U.S. Naval
Reserve (including the Merchant Marine Reserve), or the U.S.
Coast Guard Reserve as a prerequisite for receiving student
incentive payments. An additional provision clarifies that
GMATS is a non-appropriated fund instrumentality which is
operated under the jurisdiction of DOT.
The bill would authorize MARAD to retain fees collected to
process applications for deepwater port licenses, as well as
those collected on its administrative process for coastwise
trade law waivers, subject to certain limits.
The bill would authorize MARAD to use a portion of the fees
collected for the operation of the NDRF vessels and proceeds
recovered from vessel accident litigation and arbitration to
cover the costs of vessel maintenance, repairs, and
replacements. The bill also would provide an alternative
approach for operators of the MSP product tankers to meet U.S.-
built replacement vessel requirements. The alternative approach
would include the construction and operation of equivalent
domestic trade tank vessels. Certain non-resident alien visa
holders also would be authorized for temporary employment on
U.S.-flag large passenger vessels.
In addition, the bill would include several technical
corrections, including a provision to restore vessel transfer
authority to the DOT, which was inadvertently stripped when the
Coast Guard was transferred to the Department of Homeland
Security (DHS) with enactment of the Homeland Security Act of
2002, P.L. 107-296, and reinserts an improperly deleted
sentence which would clarify the Secretary of Transportation's
role in the investment of funds in excess of that necessary for
war risk insurance for merchant marine vessels.
Legislative History
The original Committee bill was ordered reported to the
Senate by voice vote on July 19, 2006, in the presence of a
quorum.
Estimated Costs
In compliance with subsection (a)(3) of paragraph 11
of rule XXVI of the Standing Rules of the Senate, the Committee
states that, in its opinion, it is necessary to dispense with
the requirements of paragraphs (1) and (2) of that subsection
in order to expedite the business of the Senate. deg.
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:
August 17, 2006.
Hon. Ted Stevens,
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 the Maritime
Administration Enhancement Act of 2005.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah Reis.
Sincerely,
Donald B. Marron,
Acting Director.
Enclosure.
Maritime Administration Improvement Act of 2006
Summary: The Maritime Administration Improvement Act would
amend various laws governing the activities of the Maritime
Administration (MARAD). Several provisions of the bill would
allow MARAD to spend, without further appropriation actions,
certain collections from regulatory fees and legal damages. CBO
estimates that enacting these provisions would increase direct
spending by $5 million over the 2007-2011 period and by $10
million over the 2007-2016 period. We estimate that
implementing other provisions would have no significant impact
on the federal budget because they would not change MARAD's
responsibilities under maritime laws.
The legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA) and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effects of the legislation are shown in the following
table. The costs of this legislation fall within budget
function 400 (transportation).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------------------------
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated budget authority.................................... 1 1 1 1 1 1 1 1 1 1
Estimated outlays............................................. 1 1 1 1 1 1 1 1 1 1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Enacting the bill also would change the classification of about $1 million a year in revenues by directing that those collections be recorded in
the budget as an offset to spending. Following scorekeeping rule 13, such reclassifications in legislation are not counted for purposes of
Congressional scorekeeping.
Basis of estimate: Several provisions of the legislation
would provide a total of about $1 million of new budget
authority for MARAD each year by allowing the agency to spend,
without further appropriation, certain amounts it currently
collects and deposits in the U.S. Treasury as revenues.
Section 11 would allow MARAD to spend payments for damages
received for accidents that involve vessels that it owns or
manages. Based on recent judgments and settlements for damages
collected as a result of such incidents, CBO estimates that
this new authority would increase direct spending by an average
of $500,000 a year.
Sections 9 and 10 would authorize the agency to spend,
without further appropriations action, certain administrative
and regulatory fees. Amounts collected each year from such
fees, including up to $400,000 annually from licences on
deepwater port applications and up to $50,000 annually on
waivers of coastwise trade restrictions, would be spent by
MARAD on related regulatory programs. Based on the level of
historical collections, CBO estimates that enacting these
provisions would increase annual direct spending by less than
$500,000 a year.
The bill also would change the budgetary classification of
those administrative and regulatory fees. Such collections are
currently considered revenues but under the legislation would
become offsetting receipts (an offset to direct spending). The
resulting decrease in revenues and corresponding decrease in
outlays are not counted for purposes of Congressional
consideration, however, pursuant to scorekeeping rule 13, which
states that reclassifications are not counted for purposes of
enforcing the budget resolution (see House Report 105-217, the
conference report on the Balanced Budget Act of 1997, page
1011).
Intergovernmental and private-sector impact: The
legislation contains no intergovernmental or private-sector
mandates as defined in UMRA. Section 14 would provide Hawaii
with additional flexibility in spending federal funds. Other
provisions of the bill would not affect the budgets of state,
local, or tribal governments.
Previous CBO Estimate: On November 15, 2005, CBO
transmitted a cost estimate for the Maritime Administration
Enhancement Act of 2005, as ordered reported by the Senate
Committee on Commerce, Science, and Transportation on July 21,
2006. The 2005 bill would authorize appropriations for MARAD
programs for 2006; the 2006 bill contains no authorizations.
Also, the 2005 bill would exempt MARAD from paying ad valorem
taxes on certain materials and repairs for vessels that it
operates, while the 2006 bill would not. Other provisions of
the two bills are similar, as are the CBO cost estimates.
Estimate prepared by: Federal spending: Deborah Reis;
Impact on state, local, and tribal governments: Sarah Puro;
Impact on the private sector: Craig Cammarata.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
Because S. 3852 does not create any new programs, the
legislation will have no additional regulatory impact, and will
result in no additional reporting requirements. The legislation
will have no further effect on the number or types of
individuals and businesses regulated, the economic impact of
such regulation, the personal privacy of affected individuals,
or the paperwork required from such individuals and businesses.
Section-by-Section Analysis
Section 1. Short title; table of contents
Section 1 states the short title of the legislation, the
``Maritime Administration Improvement Act of 2006''.
Section 2. Vessel transfer authority
This section would restore vessel transfer authority to DOT
that was inadvertently lost when the Coast Guard was
transferred to DHS.
Section 3. War risk insurance for merchant marine vessels
This is a technical correction to section 3502(b) of P.L.
108-375, the National Defense Authorization Act for Fiscal Year
2005.
Section 4. Requirements for admission to the USMMA
This section would require students entering the USMMA to
meet the same physical and mental standards required by DOD.
Any cadet not meeting such standards could be expelled. This
change is necessary to ensure that students admitted to the
Academy are capable of fulfilling the requirements of their
commitment agreements upon graduation. If students do not meet
these DOD standards, they would not be eligible to obtain a
Merchant Marine license or to accept an appointment in a
reserve unit of the Armed Forces of the United States, two key
commitment agreement service requirements.
Section 5. Reserve training compliance and Armed Forces performance
reporting requirements for graduates
Current law requires Academy graduates to become commissioned
officers on active duty in an armed force of the United States
or to become commissioned officers in the reserves of the Armed
Forces for at least 6 years following graduation. The Privacy
Act impedes MARAD from readily verifying with DOD, the Coast
Guard, and NOAA that graduates are serving their commitment to
the Armed Forces. This section would require DOD, the U.S.
Coast Guard, and NOAA to certify annually to MARAD that Academy
graduates have remained on active duty or in ready reserve
status, thus confirming the fulfillment of a graduate's service
commitment agreement. In addition, this provision would provide
a mechanism for MARAD to recover tuition from graduates who
fail to perform their duties and that are found in
noncompliance with their commitment agreement.
Section 6. Service in the Armed Forces and alternate service
requirements
This section would require Academy graduates who serve on
active duty in the Armed Forces to abide by the obligations of
service of the branch under which they serve, and exempts them
from having to maintain a U.S. Coast Guard-issued merchant
mariner license and from having to fulfill an armed service
reserve service requirement. This provision is intended to
exempt graduates from the reserve requirement of the commitment
agreement they sign as a condition to admission to the Academy.
It would not exempt graduates from any reserve obligation
imposed on them by the Armed Forces branch in which they serve
on active duty. Finally, this section would provide the
Secretary with waiver and alternate service requirement
authority for individuals who may be unable to perform their
service requirements.
Section 7. Qualifying reserve duty for receipt of student incentive
payments
This provision would require individuals attending a State
Maritime Academy to accept enlisted reserve status in either
the U.S. Naval Reserve, including the Merchant Marine Reserve,
or the U.S. Coast Guard Reserve as a prerequisite for receiving
student incentive payments.
Section 8. GMATS
This section would clarify the role of GMATS located on the
campus at Kings Point as a non-appropriated fund
instrumentality operating under the jurisdiction of DOT.
Section 9. Availability of funds from application fees for deepwater
port licenses
This section would allow MARAD to retain fees assessed
pursuant to applications for licenses for ownership,
construction, and operation of deepwater ports, up to $400,000
per fiscal year.
Section 10. Availability of funds from administrative waivers of
coastwise trade restrictions
This section would authorize MARAD to retain funds routinely
collected through the agency's program for the Administrative
Waiver of Coastwise Trade Laws for Eligible Vessels, up to
$50,000 per fiscal year.
Section 11. Amendments to the Vessel Operations Revolving Fund (VORF)
The VORF was created in 1951 to carry out vessel operating
functions under the jurisdiction of the Secretary of
Transportation, including the charter, operation, maintenance,
repair, reconditioning, and betterment of merchant vessels. At
present, such functions come at the expense of the operating
repairs and maintenance budgeted for other NDRF vessels. In
addition, all recoveries from litigation are deposited into the
Treasury after payment to the Department of Justice for the
costs of litigation. This section would allow MARAD to use a
portion of the fee paid for the operation of the NDRF vessels
and proceeds recovered from vessel accident litigation and
arbitration. Funds would be placed in a reserve fund to cover
the costs of vessel maintenance, repairs, and replacements.
Section 12. Right to use MARAD decoration
Current law allows for the Secretary to sanction the use,
manufacture, sale, possession, or display of a decoration or
medal, such as the merchant marine seal. This provision would
permit the Secretary, through the Maritime Administrator, to
authorize the use of maritime emblems for purposes and events
he deems meritorious, such as commemorative ceremonies or
events. This section would make a technical correction to
current law (46 U.S.C. App 2007) to clarify the Secretary means
the Secretary of Transportation.
Section 13. MSP tank vessels
This section would provide an alternative approach for
operators of the MSP product tankers to meet U.S.-built
replacement vessel requirements. The alternative approach would
include the construction and operation of equivalent domestic
trade tank vessels.
Section 14. Intermodal centers
This provision would authorize funding provided under section
5833 (m)(6)(B) from Public Law 109-59 to be used for projects.
Public Law 109-59 also authorizes MARAD to set the requirements
for the Hawaii Port Intermodal Expansion Pilot Project.
Section 15. Large passenger ship crew requirements
This section would expand the pool of non-citizens that can
be employed on U.S.-flag large passenger vessels to include
certain non-resident alien visa holders.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law. deg.
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that, in its
opinion, it is necessary to dispense with the requirements of
that paragraph in order to expedite the business of the
Senate. deg.
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):
UNITED STATES CODE
TITLE 10. ARMED FORCES
SUBTITLE A. GENERAL MILITARY LAW
PART IV. SERVICE, SUPPLY, AND PROCUREMENT
CHAPTER 153. EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR
UNCLAIMED PROPERTY
[Sec. 2578. Vessels: transfer between departments
[A vessel under the jurisdiction of a military department may
be transferred or otherwise made available without
reimbursement to another military department or to the
Department of Homeland Security, and a vessel under the
jurisdiction of the Department of Homeland Security may be
transferred or otherwise made available without reimbursement
to a military department. Any such transfer may be made only
upon the request of the Secretary of the military department
concerned or the Secretary of Homeland Security, as the case
may be, and with the approval of the Secretary of the
department having jurisdiction of the vessel.]
Sec. 2578. Transfer of vessels between departments
A vessel under the jurisdiction of a military department may
be transferred or otherwise made available without
reimbursement to another military department, the Department of
Transportation, or the Department of Homeland Security.
Notwithstanding the provisions of the section 11 of the Foreign
Ship Sales Act of 1946, (50 App. U.S.C. 1744), a vessel under
the jurisdiction of the Department of Transportation may be
transferred or otherwise made available with or without
reimbursement to any military department or the Department of
Homeland Security. A vessel under the jurisdiction of the
Department of Homeland Security may be transferred or otherwise
made available without reimbursement to any military department
or the Department of Transportation. Any such transfer shall be
made only upon the request of the Secretary of the military
department to receive the vessel, the Secretary of
Transportation, or the Secretary of Homeland Security, and with
the approval of the Secretary of the department having
jurisdiction of the vessel.
UNITED STATES CODE
TITLE 46. SHIPPING
SUBTITLE II. VESSELS AND SEAMEN
PART F. MANNING OF VESSELS
CHAPTER 81. GENERAL
Sec. 8103. Citizenship and Navy Reserve requirements
(a) Only a citizen of the United States may serve as master,
chief engineer, radio officer, or officer in charge of a deck
watch or engineering watch on a documented vessel.
(b)(1) Except as otherwise provided in this section, on a
documented vessel--
(A) each unlicensed seaman must be--
(i) a citizen of the United States;
(ii) an alien lawfully admitted to the United
States for permanent residence; or
(iii) a foreign national who is enrolled in
the United States Merchant Marine Academy.
(B) not more than 25 percent of the total number of
unlicensed seamen on the vessel may be aliens lawfully
admitted to the United States for permanent residence.
(2) Paragraph (1) of this subsection does not apply to--
(A) a yacht;
(B) a fishing vessel fishing exclusively for highly
migratory species (as that term is defined in section 3
of the Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1802)); and
(C) a fishing vessel fishing outside of the exclusive
economic zone.
(3) The Secretary may waive a citizenship requirement under
this section, other than a requirement that applies to the
master of a documented vessel, with respect to--
(A) an offshore supply vessel or other similarly
engaged vessel of less than 1,600 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 operates from a foreign port;
(B) a mobile offshore drilling unit or other vessel
engaged in support of exploration, exploitation, or
production of offshore mineral energy resources
operating beyond the water above the outer Continental
Shelf (as that term is defined in section 2(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331(a));
and
(C) any other vessel if the Secretary determines,
after an investigation, that qualified seamen who are
citizens of the United States are not available.
(c) On each departure of a vessel (except a passenger vessel)
for which a construction or operating differential subsidy has
been granted, all of the seamen of the vessel must be citizens
of the United States.
(d)(1) On each departure of a passenger vessel for which a
construction or operating differential subsidy has been
granted, at least 90 percent of the entire complement
(including licensed individuals) must be citizens of the United
States.
(2) An individual not required by this subsection to be a
citizen of the United States may be engaged only if the
individual has a declaration of intention to become a citizen
of the United States or other evidence of admission to the
United States for permanent residence. An alien may be employed
only in the steward's department of the passenger vessel.
(e) If a documented vessel is deprived for any reason of the
services of an individual (except the master and the radio
officer) when on a foreign voyage and a vacancy consequently
occurs, until the vessel's return to a port at which in the
most expeditious manner a replacement who is a citizen of the
United States can be obtained, an individual not a citizen of
the United States may serve in--
(1) the vacancy; or
(2) a vacancy resulting from the promotion of another
individual to fill the original vacancy.
(f) A person employing an individual in violation of this
section or a regulation prescribed under this section is liable
to the United States Government for a civil penalty of $500 for
each individual so employed.
(g) A deck or engineer officer employed on a vessel on which
an operating differential subsidy is paid, or employed on a
vessel (except a vessel of the Coast Guard or Saint Lawrence
Seaway Development Corporation) owned or operated by the
Department of Transportation or by a corporation organized or
controlled by the Department, if eligible, shall be a member of
the Navy Reserve.
(h) The President may--
(1) suspend any part of this section during a
proclaimed national emergency; and
(2) when the needs of commerce require, suspend as
far and for a period the President considers desirable,
subsection (a) of this section for crews of vessels of
the United States documented for foreign trade.
(i)(1) Except as provided in paragraph (3) of this
subsection, each unlicensed seaman on a fishing, fish
processing, or fish tender vessel that is engaged in the
fisheries in the navigable waters of the United States or the
exclusive economic zone must be--
(A) a citizen of the United States;
(B) an alien lawfully admitted to the United States
for permanent residence;
(C) any other alien allowed to be employed under the
Immigration and Nationality Act (8 U.S.C. 1101 et
seq.); or
(D) an alien allowed to be employed under the
immigration laws of the Commonwealth of the Northern
Mariana Islands if the vessel is permanently stationed
at a port within the Commonwealth and the vessel is
engaged in the fisheries within the exclusive economic
zone surrounding the Commonwealth or another United
States territory or possession.
(2) Not more than 25 percent of the unlicensed seamen on a
vessel subject to paragraph (1) of this subsection may be
aliens referred to in clause (C) of that paragraph.
(3) This subsection does not apply to a fishing vessel
fishing exclusively for highly migratory species (as that term
is defined in section 3 of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1802)).
(j) Riding gang member. This section does not apply to an
individual who is a riding gang member.
(k)(1) Each unlicensed seaman on a passenger vessel of more
than 70,000 gross tons as measured under section 14302 of this
title, with capacity for at least 2,000 passengers and
documented with a coastwise endorsement under chapter 121 of
this title, shall be--
(A) a citizen of the United States;
(B) an alien lawfully admitted to the United States
for permanent residence,
(C) an alien allowed to be employed under the
Immigration and Nationality Act (8 U.S.C. 1101 et.
seq.), including an alien crewman under Section 1101
(15)(D) (i) of that Act; or
(D) a foreign national who is enrolled in the United
States Merchant Marine Academy.
(2) Not more than 25 percent of the unlicensed seamen on a
vessel subject to paragraph (1) of this subsection may be
aliens referred to in subparagraph (B) or (C) of that
paragraph.
(3) An unlicensed seaman referred to in paragraph (1)(C) of
this subsection--
(A) shall have been employed, for a period of not
less than 1 year, on a passenger vessel under the same
common ownership or control as the vessel referred to
in paragraph (1) of this subsection, as certified by
the owner or managing operator of such vessel;
(B) may be employed only in the steward's department,
as defined in the vessel security plan approved by the
Secretary pursuant to section 70103(c) of this title,
of the vessel; and
(C) shall have successfully completed a
security check of the relevant domestic and
international databases, as appropriate, or any
other national security-related information or
database.
NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004
SEC. 3543. AWARD OF ASSISTANCE.
[46 U.S.C. 53101 note]
(a) In General.--If after review of a proposal, the Secretary
determines that the proposal fulfills the requirements under
this subtitle, the Secretary [shall, to the extent of the
availability of appropriations,] may enter into a contract with
the proposed purchaser and the proposed shipyard for the
construction of a product tank vessel with assistance under
this subtitle.
(b) Amount of Assistance.--The contract shall provide that
the Secretary shall pay, subject to the availability of
appropriations, the actual construction cost of the vessel, but
in no case more than $50,000,000 per vessel.
(c) Construction in United States.--A contract under this
section shall require that construction of a vessel with
assistance under this subtitle shall be performed in a shipyard
in the United States.
(d) Documentation of Vessel.--
(1) Contract requirement.--A contract under this
section shall require that, upon delivery of a vessel
constructed with assistance under the contract, the
vessel shall be documented under chapter 121 of title
46, United States Code, with a registry endorsement
only.
(2) Restriction on coastwise endorsement.--A vessel
constructed with assistance under this subtitle shall
not be eligible for a certificate of documentation with
a coastwise endorsement.
(3) Authority to reflag not applicable.--Section 9(g)
of the Shipping Act, 1916, (46 U.S.C. App. 808(g))
shall not apply to a vessel constructed with assistance
under this subtitle.
(e) Emergency Preparedness Agreement.--
(1) In general.--A contract under this section shall
require that the person who will be the operator of a
vessel constructed with assistance under the contract
shall enter into an Emergency Preparedness Agreement
for the vessel under section 53107 of title 46, United
States Code, as amended by this Act.
(2) Treatment as contractor.--For purposes of the
application, under paragraph (1), of section 53107 of
title 46, United States Code, to a vessel constructed
with assistance under this subtitle, the term
``contractor'' as used in that section means the person
who will be the operator of a vessel constructed with
assistance under this subtitle.
(f) Additional Terms.--The Secretary shall incorporate in the
contract the requirements set forth in this subtitle, and may
incorporate in the contract any additional terms the Secretary
considers necessary.
TITLE 46. SHIPPING
SUBTITLE V. MERCHANT MARINE
CHAPTER 531. MARITIME SECURITY FLEET
Sec. 53103. Award of operating agreements
(a) In General.--The Secretary shall require, as a
condition of including any vessel in the Fleet, that the person
that is the owner or operator of the vessel for purposes of
section 53102(c) enter into an operating agreement with the
Secretary under this section.
(b) Procedure for Applications.--
(1) Acceptance of applications.--Beginning no later
than 30 days after the effective date of this chapter,
the Secretary shall accept applications for enrollment
of vessels in the Fleet.
(2) Action on applications.--Within 90 days after
receipt of an application for enrollment of a vessel in
the Fleet, the Secretary shall approve the application
in conjunction with the Secretary of Defense, and shall
enter into an operating agreement with the applicant,
or provide in writing the reason for denial of that
application.
(3) Participating fleet vessels.--
(A) In general.--The Secretary shall accept
an application for an operating agreement for a
participating fleet vessel under the priority
under subsection (c)(1)(B) only from a person
that has authority to enter into an operating
agreement for the vessel with respect to the
full term of the operating agreement.
(B) Vessel under demise charter.--For
purposes of subparagraph (A), in the case of a
vessel that is subject to a demise charter that
terminates by its terms on September 30, 2005
(without giving effect to any extension
provided therein for completion of a voyage or
to effect the actual redelivery of the vessel),
or that is terminable at will by the owner of
the vessel after such date, only the owner of
the vessel shall be treated as having the
authority referred to in paragraph (1).
(C) Vessel owned by united states citizen
trust.--For purposes of subparagraph (B), in
the case of a vessel owned by a United States
citizen trust, the term ``owner of the vessel''
includes a beneficial owner of the vessel with
respect to such trust.
(c) Priority for Awarding Agreements.--
(1) In general.--Subject to the availability of
appropriations, the Secretary shall enter into
operating agreements according to the following
priority:
(A) New tank vessels.--First, for any tank
vessel that--
(i) is constructed in the United
States after the effective date of this
chapter;
(ii) is eligible to be included in
the Fleet under section 53102(b); and
(iii) during the period of an
operating agreement under this chapter
that applies to the vessel, will be
owned and operated by one or more
persons that are citizens of the United
States under section 2 of the Shipping
Act, 1916 (46 U.S.C. App. 802), except
that the Secretary shall not enter into
operating agreements under this
subparagraph for more than 5 such
vessels.
(B) Participating fleet vessels.--Second,
to the extent amounts are available after
applying subparagraphs (A), for any
participating fleet vessel, except that the
Secretary shall not enter into operating
agreements under this subparagraph for more
than 47 vessels.
(C) Certain vessels operated by section 2
citizens.--Third, to the extent amounts are
available after applying subparagraphs (A) and
(B), for any other vessel that is eligible to
be included in the Fleet under section
53102(b), and that, during the period of an
operating agreement under this chapter that
applies to the vessel, will be--
(i) owned and operated by one or
more persons that are citizens of the
United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App.
802); or
(ii) owned by a person that is
eligible to document the vessel under
chapter 121 of this title, and operated
by a person that is a citizen of the
United States under section 2 of the
Shipping Act, 1916 (46 U.S.C. App.
802).
(D) Other eligible vessels.--Fourth, to the
extent amounts are available after applying
subparagraphs (A), (B), and (C), for any other
vessel that is eligible to be included in the
Fleet under section 53102(b).
(2) Reduction in number of slots for participating
fleet vessels.--The number in paragraph (1)(B) shall be
reduced by 1--
(A) for each participating fleet vessel for
which an application for enrollment in the
Fleet is not received by the Secretary within
the 90-day period beginning on the effective
date of this chapter; and
(B) for each participating fleet vessel for
which an application for enrollment in the
Fleet received by the Secretary is not approved
by the Secretary and the Secretary of Defense
within the 90-day period beginning on the date
of such receipt.
(3) Discretion within priority.--The Secretary--
(A) subject to subparagraph (B), may award
operating agreements within each priority under
paragraph (1) as the Secretary considers
appropriate; and
(B) shall award operating agreement within
a priority--
(i) in accordance with operational
requirements specified by the Secretary
of Defense;
(ii) in the case of operating
agreements awarded under subparagraph
(C) or (D) of paragraph (1), according
to applicants' records of owning and
operating vessels; and
(iii) subject to the approval of
the Secretary of Defense.
(4) Treatment of tank vessel to be replaced.--
(A) For purposes of the application of
paragraph (1)(A) with respect to the award of
an operating agreement, the Secretary may treat
an existing tank vessel that is eligible to be
included in the Fleet under section 53102(b) as
a vessel that is constructed in the United
States after the effective date of this
chapter, if--
[(i)] (i)(I) a binding contract for
construction in the United States of a
replacement vessel to be operated under
the operating agreement is executed by
not later than 9 months after the first
date amounts are available to carry out
this chapter; and
[(ii)] (II) the replacement vessel
is eligible to be included in the Fleet
under section [53102(b).] 53102(b); or
(ii)(I) not later than 9 months after
the first date amounts are to available
to carry out this chapter, the operator
of the existing tank vessel enters into
an agreement to charter one or more
tank vessels to be built in the United
States and operated as a documented
vessel or documented vessels; and
(II) the combined tonnage of the
documented vessel or vessels to be
constructed under clause (I) is equal
to or greater than the tonnage of the
existing tank vessel subject to an
operating agreement.
If the person that is the owner or
operator of the existing tank vessel
owns or operates more than one existing
tank vessel subject to an operating
agreement, the combined tonnage of all
documented vessels to be built under
clause (ii)(I) for that owner or
operator shall be equal to or greater
than the combined tonnage of all such
existing tank vessels owned or operated
by such person that are subject to
operating agreements. For the purpose
of clause (ii), tonnage shall be
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) No payment under this chapter may be
made for an existing tank vessel subject to
subparagraph (A)(i) for which an operating
agreement is awarded under this paragraph after
the earlier of--
(i) 4 years after the first date
amounts are available to carry out this
chapter; or
(ii) the date of delivery of the
replacement tank vessel.
(C) Subparagraph (A)(ii) applies only for the
period that the operator of the existing tank
vessel charters the United States-built vessel
or vessels described in such subparagraph. No
payment under this chapter may be made for an
existing tank vessel subject to subparagraph
(A)(ii) for any period that the United States-
built vessel or vessels described in such
subparagraph are not chartered by the operator
of the existing tank vessel.
(d) Limitation.--The Secretary may not award operating
agreements under this chapter that require payments under
section 53106 for a fiscal year for more than 60 vessels.
ACT OF JUNE 2, 1951
[SEC. 801. VESSEL OPERATIONS REVOLVING FUND; ESTABLISHMENT; USES;
LIMITATIONS.
[46 U.S.C. App. 1241a]
[For working capital for the ``Vessel Operations Revolving
Fund'', which is hereby created for the purpose of carrying out
vessel operating functions of the Secretary of Transportation,
including charter, operation, maintenance, repair,
reconditioning, and betterment of merchant vessels under the
jurisdiction of the Secretary of Transportation, $20,000,000,
to remain available until expended. Notwithstanding any other
provision of law, rates for shipping services rendered under
said Fund shall be prescribed by the Secretary of
Transportation and the Fund shall be credited with all receipts
from vessel operating activities conducted thereunder:
Provided, That the provisions of sections 1(a), 1(c), 3(c) and
4 of Public Law 17, Seventy-eighth Congress (57 Stat. 45), as
amended, shall be applicable in connection with such operations
and to seamen employed through general agents as employees of
the United States, who may be employed in accordance with
customary commercial practices in the maritime industry,
notwithstanding the provisions of any law applicable in terms
to the employment of persons by the United States: Provided
further, That such sums as may be determined to be necessary by
the Secretary of Transportation, with the approval of the
Bureau of the Budget, but not exceeding 2 per centum of vessel
operating expenses, may be advanced from this Fund to the
appropriation ``Salaries and expenses'' for the purposes of
that appropriation in connection with vessel operating
functions, but without regard to the limitations on amounts as
stated therein: Provided further, That notwithstanding any
other provisions of law, the unexpended balances of any working
funds or of allocation accounts established, subsequent to
January 1, 1951, for the activities provided for under this
appropriation, together with receipts heretofore and hereafter
received from such activities, may be transferred to and
consolidated with this Fund, which shall be available for the
purposes of such working funds or allocation accounts. No money
made available to the Department of Transportation, for
Maritime Activities, by this or any other Act shall be used in
payment for a vessel the title to which is acquired by the
Government either by requisition or purchase, or the use of
which is taken either by requisition or agreement, or which is
insured by the Government and lost while so insured, unless the
price or hire to be paid therefor, (except in cases where
section 802 of the Merchant Marine Act, 1936, as amended, is
applicable) is computed in accordance with subsection 902(a) of
said Act, as that subsection is interpreted by the General
Accounting Office.]
SEC. 801. VESSEL OPERATIONS REVOLVING FUND.
(a) In General.--There is established in the Treasury, for
the purposes set forth in subsection (b), a Vessel Operations
Revolving Fund which shall be available without appropriation
to the Secretary of Transportation. All amounts and all
receipts and proceeds received by the Fund shall be deposited
into the Fund, become available for the purposes of the Fund,
and shall remain available until expended.
(b) Uses.--Amounts in the Fund shall be available for--
(1) all expenses and charges relating to the
maintenance, repair, and operation of vessels under the
jurisdiction of the Secretary;
(2) all expenses and charges relating to the
maintenance, repair, and operation of the facilities
necessary to preserve and maintain such vessels;
(3) payment of all costs of, and indirect costs that
are reasonably related to, contracting, procurement,
inspection, storage, management, distribution, and
accountability of vessels under the jurisdiction of the
Secretary and such property, facilities, and
nonpersonal services as the Secretary deems necessary
for the operation and maintenance of such vessels;
(4) expenses incurred in activating, repairing, and
deactivating vessels under the jurisdiction of the
Secretary;
(5) the acquisition of such vessels for the National
Defense Reserve Fleet as both the Secretary and the
Secretary of Navy deem necessary;
(6) necessary expenses incurred in the protection,
preservation, maintenance, acquisition, or use of
vessels of the National Defense Reserve Fleet involved
in mortgage foreclosure or forfeiture proceedings
instituted by the United States Government, including
payment of prior claims and liens, expenses of sale,
and other related charges; and
(7) costs and expenses incurred to repair damages to
Government property under the jurisdiction or control
of the Secretary that is used in connection with the
National Defense Reserve Fleet.
(c) Credits to the Fund.--
(1) In general.--There shall be credited to and
retained by the Fund--
(A) all amounts received in connection with
vessel operations for vessels under the
jurisdiction of the Secretary; except that
there shall be no surcharge on charter hire or
similar collection in connection with vessel
operations for the purpose of the reserve
described in subsection (c)(2); and
(B) any reimbursements, advances, setoffs,
refunds, or recoveries arising out of or
relating to the operation and maintenance of
vessels of the National Defense Reserve Fleet
under the jurisdiction of the Secretary,
including any recoveries from litigation,
arbitration, or otherwise.
(2) Reserve.--There shall be established and retained
in the Fund from litigation and arbitration recoveries
a reserve, not to exceed $30,000,000 at any one time,
for use as a reserve for unscheduled repairs and other
necessary expenses in connection with casualties to
vessels in the National Reserve Fleet.
(d) Laws Relating to Seamen.--Subject to the provisions of
sections 1(a) and (c), 3(c), and 4 of the Act of March 24, 1943
(50 U.S.C. App. 1291(a) and (c), 1293(c), 1294), seamen
employed on vessels in the custody of the Secretary and
operated through the Secretary's ship managers or general
agents may be so employed by such ship managers or agents in
accordance with customary commercial practices in the maritime
industry without regard to any of the laws on employment of
persons by the United States.
(e) Advancements.--With the approval of the Director of the
Office of Management and Budget, the Secretary may advance
amounts the Secretary considers necessary from the Fund to the
Maritime Administration Operations and Training appropriation
account for purposes of carrying out duties and powers related
to the maintenance, repair, and operation of vessels under the
jurisdiction of the Secretary, without regard to the
limitations on amounts stated in the Operations and Training
appropriation.''
(f) Limitations.--
(1) In general.--Amounts made available to the
Secretary for purposes of this section or any other law
may not be used to pay for a vessel described in
paragraph (2) unless the compensation to be paid is
computed under section 56303 of title 46, United States
Code, as that section is interpreted by the Comptroller
General.
(2) Applicable vessels.--Paragraph (1) applies to a
vessel--
(A) the title to which is acquired by the
Government by requisition or purchase;
(B) the use of which is taken by requisition
or agreement; or
(C) that is lost while insured by the
Government.
(3) Nonapplicable vessels.--Subparagraph (1) of this
section does not apply to a vessel operating under a
construction-differential subsidy contract.
MERCHANT MARINE ACT
TITLE XII--WAR RISK INSURANCE
SEC. 1208. INSURANCE FUND; INVESTMENTS; APPROPRIATIONS.
[46 U.S.C. App. 1288]
(a) The Secretary shall create an insurance fund in the
Treasury to enable him to carry out the provisions of this
title. Moneys appropriated by Congress to carry out the
provisions of this title and all moneys received from premiums,
salvage, or other recoveries and all receipts in connection
with this title shall be deposited in the Treasury to the
credit of such fund. The Secretary of Transportation may
request the Secretary of the Treasury to invest such portion of
the Fund as is not, in the judgment of the Secretary of
Transportation, required to meet the current needs of the fund.
Such investments shall be made by the Secretary of the Treasury
in public debt securities of the United States, with maturities
suitable to the needs of the fund, and bearing interest rates
determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturity. [Upon
the request of the Secretary of Transportation, the Secretary
of the Treasury may invest or reinvest all or any part of the
fund in securities of the United States or in securities
guaranteed as to principal and interest by the United States.]
The Secretary of Transportation may request the Secretary of
the Treasury to invest such portion of the fund as is not, in
the judgment of the Secretary of Transportation, required to
meet the current needs of the fund. Such investments shall be
made by the Secretary of the Treasury in public debt securities
of the United States, with maturities suitable to the needs of
the fund, and bearing interest rates determined by the
Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the
United States of comparable maturity. The interest and benefits
accruing from such securities shall be deposited to the credit
of the fund.
(b) Such sums as shall be necessary to carry out the
provisions of this title are authorized to be appropriated to
such fund.
MERCHANT MARINE ACT, 1936
TITLE XIII--MARITIME EDUCATION AND TRAINING
SEC. 1303. MAINTENANCE OF ACADEMY.
[46 U.S.C. App. 1295b]
(a) Duty of Secretary.--The Secretary shall maintain the
Academy for providing instruction to individuals to prepare
them for service in the merchant marine of the United States.
(b) Nomination and Appointment of Cadets; Designation and
Licensing of Individuals From the Trust Territory of the
Pacific Islands, Western Hemisphere Nations and Nations Other
Than the United States.--
(1) Each Senator and Member of the House of
Representatives, the Panama Canal Commission, the
Governor of the Northern Mariana Islands, and the
Delegate from American Samoa. may nominate for
appointment as a cadet at the Academy any individual
who is--
(A) a citizen of the United States or a
national of the United States; and
(B) a resident of the State represented by
such Senator if the individual is nominated by
a Senator, a resident of the State in which the
congressional district represented by such
Member of the House of Representatives is
located if the individual is nominated by a
Member of the House of Representatives (or a
resident of Guam, the Virgin Islands, the
District of Columbia, the Commonwealth of
Puerto Rico, or American Samoa if the
individual is nominated by a Member of the
House of Representatives representing such
area), a resident of the area or installation
described in paragraph (3)(A)(ii), or a son or
daughter of the personnel described in such
paragraph, if the individual is nominated by
the Panama Canal Commission, or a resident of
the Northern Mariana Islands if the individual
is nominated by the Governor of the Northern
Mariana Islands.
(2)(A) The Secretary shall establish minimum
requirements for the individuals nominated pursuant to
paragraph (1) and shall establish a system of
competition for the selection of individuals qualified
for appointment as cadets at the Academy.
(B) Such system of competition shall determine the
relative merit of appointing each such individual to
the Academy through the use of competitive
examinations, an assessment of the academic background
of the individual, and such other factors as are
considered effective indicators of motivation and the
probability of successful completion of training at the
Academy.
(C) Notwithstanding the Rehabilitation Act (29 U.S.C.
701 et seq.) or any other provision of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1101 et seq.), an
individual appointed as a cadet may not be admitted to
the Academy as a student, unless at the time of the
taking of the official oath upon entry into the
Merchant Marine Academy, that individual satisfies the
physical and mental requirements of the Department of
Defense to be appointed or enlisted as a Midshipman,
United States Naval Reserve. Following admission to the
Academy, notwithstanding the Rehabilitation Act or any
other provision of the Merchant Marine Act, 1936 (46
U.S.C. App. 1101 et seq.), such individual may continue
as a student only if that individual continues to
satisfy the physical and mental standards set forth in
this subparagraph unless the Secretary of
Transportation waives the standards for such individual
upon good cause shown. The decision of the Secretary as
to whether to grant such waiver shall be final.
(3)(A) Qualified individuals nominated pursuant to
paragraph (1) shall be selected each year for
appointment as cadets at the Academy to fill positions
allocated as follows:
(i) Positions shall be allocated each year
for individuals who are residents of each State
and are nominated by the Members of the
Congress from such State in proportion to the
representation in Congress from that State.
(ii) Two positions shall be allocated each
year for individuals nominated by the Panama
Canal Commission who are sons or daughters of
residents of any area or installation located
in the Republic of Panama which is made
available to the United States pursuant to the
Panama Canal Treaty of 1977, the agreements
relating to and implementing that Treaty,
signed September 7, 1977, and the Agreement
Between the United States of America and the
Republic of Panama Concerning Air Traffic
Control and Related Services, concluded January
8, 1979, and sons or daughters of personnel of
the United States Government and the Panama
Canal Commission residing in the Republic of
Panama, nominated by the Panama Canal
Commission.
(iii) One position shall be allocated each
year for an individual who is a resident of
Guam and is nominated by the Delegate to the
House of Representatives from Guam.
(iv) One position shall be allocated each
year for an individual who is a resident of the
Virgin Islands and is nominated by the Delegate
to the House of Representatives from the Virgin
Islands.
(v) One position shall be allocated each year
for an individual who is a resident of the
Northern Mariana Islands and is nominated by
the Governor of the Northern Mariana Islands.
(vi) One position shall be allocated each
year for an individual who is a resident of
American Samoa and is nominated by the Delegate
to the House of Representatives from American
Samoa.
(vii) Four positions shall be allocated each
year for individuals who are residents of the
District of Columbia and are nominated by the
Delegate to the House of Representatives from
the District of Columbia.
(viii) One position shall be allocated each
year for an individual who is a resident of the
Commonwealth of Puerto Rico and is nominated by
the Resident Commissioner to the United States
from Puerto Rico.
(B) The Secretary shall make appointments of
qualified individuals to fill the positions allocated
pursuant to subparagraph (A) (from among the
individuals nominated pursuant to paragraph (1)) in the
order of merit determined pursuant to paragraph (2)(B)
among residents of each State, Guam, the Virgin
Islands, the Northern Mariana Islands, American Samoa,
the District of Columbia, and the Commonwealth of
Puerto Rico and among individuals nominated by the
Panama Canal Commission.
(C) If positions are not filled after the
appointments are made pursuant to subparagraph (B), the
Secretary shall make appointments of qualified
individuals to fill such positions from among all
individuals nominated pursuant to paragraph (1) in the
order of merit determined pursuant to paragraph (2)(B)
among all such individuals.
(D) In addition, the Secretary may each year appoint
without competition as cadets at the Academy not more
than 40 qualified individuals possessing qualities
deemed to be of special value to the Academy. In making
such appointments the Secretary shall attempt to
achieve a national demographic balance at the Academy.
(E) No preference shall be granted in selecting
individuals for appointment as cadets at the Academy
because one or more members of the immediate family of
any such individual are alumni of the Academy.
(F) Any citizen of the United States selected for
appointment pursuant to this paragraph must agree to
apply for midshipman status in the United States Navy
Reserve (including the Merchant Marine Reserve, United
States Navy Reserve) before being appointed as a cadet
at the Academy.
(G) For purposes of this paragraph, the term
``State'' means the several States.
(4)(A) In addition to paragraph (3), the Secretary
may permit, upon designation by the Secretary of the
Interior, individuals from the Trust Territory of the
Pacific Islands to receive instruction at the Academy.
(B) Not more than 4 individuals may receive
instruction under this paragraph at any one time.
(C) Any individual receiving instruction under the
authority of this paragraph shall receive the same
allowances and shall be subject to the same rules and
regulations governing admission, attendance,
discipline, resignation, discharge, dismissal, and
graduation as cadets at the Academy appointed from the
United States, subject to such exceptions as shall be
jointly agreed upon by the Secretary and the Secretary
of the Interior.
(5)(A) In addition to paragraphs (3) and (4), the
President may designate individuals from nations
located in the Western Hemisphere other than the United
States to receive instruction at the Academy.
(B) Not more than 12 individuals may receive
instruction under this paragraph at any one time, and
not more than 2 individuals receiving instruction under
this paragraph at any one time may be from the same
nation. (C) Any individual receiving instruction under
this subparagraph is entitled to the same allowances
and shall be subject to the same rules and regulations
governing admission, attendance, discipline,
resignation, discharge, dismissal, and graduation as
cadets at the Academy appointed from the United States.
(6)(A) In addition to paragraphs (3), (4), and (5),
the Secretary may permit, upon approval of the
Secretary of State, individuals from nations other than
the United States to receive instruction at the
Academy.
(B) Not more than 30 individuals may receive
instruction under this paragraph at any one time.
(C) The Secretary shall insure that each nation from
which an individual comes to receive instruction under
this paragraph shall reimburse the Secretary for the
cost of such instruction (including the same allowances
as received by cadets at the Academy appointed from the
United States) as determined by the Secretary.
(D) Any individual receiving instruction at the
Academy under this paragraph shall be subject to the
same rules and regulations governing admission,
attendance, discipline, resignation, discharge,
dismissal, and graduation as cadets at the Academy
appointed from the United States.
(7)(A) The Secretary may permit, upon approval of the
Secretary of State, additional individuals from the
Republic of Panama to receive instruction at the
Academy, in addition to those individuals appointed
under paragraphs (3), (4), (5), and (6) of this
subsection.
(B) The Secretary shall be reimbursed for the cost of
that instruction (including the same allowances as
received by cadets at the Academy appointed from the
United States) as determined by the Secretary.
(C) An individual receiving instructions at the
Academy under this paragraph shall be subject to the
same rules and regulations governing admission,
attendance, discipline, resignation, discharge,
dismissal, and graduation as cadets at the Academy
appointed from the United States.
(8) An individual appointed as a cadet under
paragraph (3), or receiving instruction under paragraph
(4), (5), (6), or (7) of this subsection is not
entitled to hold a license authorizing service on a
merchant marine vessel of the United States solely by
reason of graduation from the Academy.
(c) Appointment of cadet as midshipman in the United States
Navy Reserve.--
(1) Any citizen of the United States who is appointed
as a cadet at the Academy shall be appointed by the
Secretary of the Navy as a midshipman in the United
States Navy Reserve (including the Merchant Marine
Reserve, United States Navy Reserve).
(2) The Secretary of the Navy shall provide for
cadets of the Academy who are midshipmen in the United
States Navy Reserve to be issued an identification card
(referred to as a "military ID card") and to be
entitled to all rights and privileges in accordance
with the same eligibility criteria as apply to other
members of the Ready Reserve of the reserve components
of the Armed Forces.
(3) The Secretary of the Navy shall carry out
paragraphs (1) and (2) in coordination with the
Secretary.
(d) Uniforms, Textbooks, and Transportation Allowances.--The
Secretary shall provide to any cadet at the Academy all
required uniforms and textbooks and allowances for
transportation (including reimbursement of traveling expenses)
while traveling under orders as a cadet of the Academy.
(e) Commitment Agreements.--
(1) Each individual appointed as a cadet at the
Academy after the date occurring 6 months after the
effective date of the Maritime Education and Training
Act of 1980, who is a citizen of the United States,
shall as a condition of appointment to the Academy sign
an agreement committing such individual--
(A) to complete the course of instruction at
the Academy;
(B) to fulfill the requirements for a license
as an officer in the merchant marine of the
United States on or before the date of
graduation from the Academy of such individual;
(C) to maintain a valid license as an officer
in the merchant marine of the United States for
at least 6 years following the date of
graduation from the Academy of such individual,
accompanied by the appropriate national and
international endorsements and certification as
required by the United States Coast Guard for
service aboard vessels on domestic and
international voyages;
[(D) to apply for an appointment as, to
accept if tendered an appointment as, and to
serve as a commissioned officer in the United
States Navy Reserve (including the Merchant
Marine Reserve, United States Navy Reserve),
the United States Coast Guard Reserve, or any
other Reserve unit of an armed force of the
United States, for at least 6 years following
the date of graduation from the Academy of such
individual;]
(D) in the case of an individual who executes
a commitment agreement under this subsection
after January 1, 2007, to serve and perform all
required duties and comply with all the
requirements of a commissioned officer in the
Selective Reserve of the United States Navy
(including the Merchant Marine Reserve), the
U.S. Public Health Service, or the National
Oceanic and Atmospheric Administration for a
period of at least 5 years following the date
of appointment, followed by from 1 to 3 years
in the Selective Reserve or Inactive Ready
Reserve, as provided by regulations prescribed
by the Secretary of Defense, (for a total of
service no greater than 8 years) or, with the
approval of the Secretary of Defense, to accept
an appointment in any other Reserve component
of an armed force of the United States or
perform such substitute service as determined
by the Secretary of Defense to be the
equivalent thereof;
(E) to serve the foreign and domestic
commerce and the national defense of the United
States for at least 5 years following the date
of graduation from the Academy--
(i) as a merchant marine officer
serving on vessels documented under the
laws of the United States or on vessels
owned and operated by the United States
or by any State or territory of the
United States;
(ii) 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
clause (i) is not available to such
individual;
(iii) 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]
Administration or the U.S. Public
Health Service, or in other maritime-
related employment with the Federal
Government which serves the national
security interests of the United
States, as determined by the Secretary;
or
(iv) by combining the services
specified in clauses (i), (ii), and
(iii); and
(F) to report to the Secretary on the
compliance by the individual to this paragraph.
(2)(A) If the Secretary determines that any
individual who has attended the Academy for not less
than 2 years has failed to fulfill the part of the
agreement required by paragraph (1)(A), such individual
may be ordered by the Secretary of Defense to active
duty in one of the armed forces of the United States to
serve for a period of time not to exceed 2 years. In
cases of hardship as determined by the Secretary, the
Secretary may waive this provision in whole or in part.
(B) If the Secretary of Defense is unable or
unwilling to order an individual to active duty under
subparagraph (A), 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 may recover from the individual
the cost of education provided by the Federal
Government.
(3)(A) If the Secretary determines that an individual
has failed to fulfill any part of the agreement
required by paragraph (1), as described in paragraph
(1)(B), (C), (D), (E), or (F), such individual may be
ordered to active duty to serve a period of time not
less than 3 years and not more than the unexpired
portion, as determined by the Secretary, of the service
required by paragraph (1)(E). The Secretary, in
consultation with the Secretary of Defense, shall
determine in which service the individual shall be
ordered to active duty to serve such period of time. In
cases of hardship, as determined by the Secretary, the
Secretary may waive this provision in whole or in part.
(B) If the Secretary of Defense is unable or
unwilling to order an individual to active duty under
subparagraph (A), 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 may recover from the individual
the cost of education provided and may reduce the
amount to be recovered from such individual to reflect
partial performance of service obligations and such
other factors as the Secretary determines merit such a
reduction.
(4) To aid in the recovery of the cost of education
provided by the Federal Government pursuant to a
commitment agreement under this section, the Secretary
may request the Attorney General to begin court
proceedings, and the Secretary may make use of the
Federal debt collection procedures in chapter 176 of
title 28, United States Code, or other applicable
administrative remedies.
(5) The Secretary may defer the service commitment of
any individual pursuant to subparagraph (E) of
paragraph (1) (as specified in the agreement required
by such paragraph) for a period of not more than 2
years if such individual is engaged in a graduate
course of study approved by the Secretary, except that
any deferment of service as a commissioned officer
pursuant to paragraph (1)(E) must be approved by the
Secretary of the military department (including the
Secretary of Commerce with respect to the National
Oceanic and Atmospheric Administration) which has
jurisdiction over such service.
(6)(A) In order to meet the requirements of paragraph
(1)(D), a graduate of the Academy shall perform all
directed training and obey all orders and directions
required by the relevant Reserve Component and remain
qualified in Ready Reserve classification for a period
of not less than 6 years, as required by the
regulations of the applicable armed service unless such
compliance is waived by the Secretary of Defense or the
Secretary of the Department in which the United States
Coast Guard is operating.
(B) Notwithstanding section 552a of title 5, United
States Code, the Secretary of Defense or the Secretary
of the Department in which the Coast Guard is
operating, and the Administrator of the National
Oceanic and Atmospheric Administration--
(i) shall report the status of
obligated service of an individual
graduate upon request of the Maritime
Administration; and
(ii) may, in their discretion, notify
the Maritime Administration of the
default in performance of a graduate in
the performance of the graduate's
duties, either on active duty or in the
Ready Reserve Component of their
respective service, or as a
commissioned officer of the National
Oceanic and Atmospheric Administration.
(C) A report or notice under subparagraph (B)
shall identify the graduate determined to have
failed to comply with service obligation
requirements and provide all required
information as to why such graduate has failed
to comply. Upon receipt of such a report or
notice, such graduate may be considered to be
in default of the graduate's service
obligations by the Maritime Administration, and
be subject to all remedies the Maritime
Administration may have with respect to such a
default.
(7) An individual who graduates from the U. S.
Merchant Marine Academy after June 30, 2007, and meets
the service commitment described in paragraph
(1)(E)(iii) of this subsection shall be excused from
meeting the requirements of subparagraphs (1)(C) and
(1)(D).
(8) The Secretary may modify or waive any of the
terms and conditions set forth in paragraph (1) through
the imposition of alternative service requirements.
(f) Places of Training.--The Secretary may provide for the
training of cadets at the Academy--
(1) on vessels owned or subsidized by the United
States;
(2) on other vessels documented under the laws of the
United States if the owner of any such vessel
cooperates in such use;
(3) in shipyards or plants and with any industrial or
educational organizations; and
(4) on any other vessel considered by the Secretary
to be necessary or appropriate or in the national
interest.
(g) Degrees Awarded.--
(1) Bachelor's degree.--The Superintendent of the
Academy may confer the degree of bachelor of science
upon any individual who has met the conditions
prescribed by the Secretary and who, if a citizen of
the United States, has passed the examination for a
merchant marine officer's license. No individual may be
denied a degree under this subsection because the
individual is not permitted to take such examination
solely because of physical disqualification.
(2) Master's degree.--The Superintendent of the
Academy may confer a master's degree upon any
individual who has met the conditions prescribed by the
Secretary. Any master's degree program may be funded
through non-appropriated funds. In order to maintain
the appropriate academic standards, the program shall
be accredited by the appropriate accreditation body.
The Secretary may make regulations necessary to
administer such a program.
(h) Board of Visitors.--
(1) A Board of Visitors to the Academy shall be
established, for a term of two years commencing at the
beginning of each Congress, to visit the Academy
annually on a date determined by the Secretary and to
make recommendations on the operation of the Academy.
(2) The Board shall be composed of--
(A) 2 Senators appointed by the chairman of
the Commerce, Science, and Transportation
Committee of the Senate;
(B) 3 Members of the House of Representatives
appointed by the chairman of the Merchant
Marine and Fisheries Committee of the House of
Representatives;
(C) 1 Senator appointed by the Vice
President;
(D) 2 Members of the House of Representatives
appointed by the Speaker of the House of
Representatives; and
(E) the chairman of the Commerce, Science,
and Transportation Committee of the Senate and
the chairman of the Merchant Marine and
Fisheries Committee of the House of
Representatives, as ex officio members.
(3) Whenever a member of the Board is unable to
attend the annual meeting provided in paragraph (1),
another individual may be appointed in the manner
provided by paragraph (2) as a substitute for such
member.
(4) The chairmen of the Commerce, Science, and
Transportation Committee of the Senate and the Merchant
Marine and Fisheries Committee of the House of
Representatives may designate staff members of such
committees to serve without reimbursement as staff for
the Board.
(5) While away from their homes or regular places of
business in the performance of services for the Board,
members of the Board and any staff members designated
under paragraph (4) shall be allowed travel expenses,
including per diem in lieu of subsistence, in the same
manner as persons employed intermittently in the
Government service are allowed expenses under section
5703 of title 5, United States Code.
(i) Advisory Board.--
(1) An Advisory Board to the Academy shall be
established to visit the Academy at least once during
each academic year, for the purpose of examining the
course of instruction and management of the Academy and
advising the Maritime Administrator and the
Superintendent of the Academy.
(2) The Advisory Board shall be composed of not more
than 7 persons of distinction in education and other
fields relating to the Academy who shall be appointed
by the Secretary for terms not to exceed 3 years and
may be reappointed.
(3) The Secretary shall appoint a chairman from among
the members of the Advisory Board.
(4) While away from their homes or regular places of
business in the performance of service for the Advisory
Board, members of the Advisory Board shall be allowed
travel expenses, including per diem in lieu of
subsistence, in the same manner as persons employed
intermittently in the Government service are allowed
expenses under section 5703 of title 5, United States
Code.
(5) The Federal Advisory Committee Act (5 U.S.C. App.
1 et seq.) shall not apply to the Advisory Board
established pursuant to this subsection.
(j) Limitation on Charges and Fees for Attendance.--
(1) Except as provided in paragraph (2), no charge or
fee for tuition, room, or board for attendance at the
Academy may be imposed unless the charge or fee is
specifically authorized by a law enacted after October
5, 1994.
(2) The prohibition specified in paragraph (1) does
not apply with respect to any item or service provided
to cadets for which a charge or fee is imposed as of
October 5, 1994. The Secretary of Transportation shall
notify Congress of any change made by the Academy in
the amount of a charge or fee authorized under this
paragraph.
MERCHANT MARINE ACT, 1936
TITLE XIII--MARITIME EDUCATION AND TRAINING
SEC. 1304. STATE MARITIME ACADEMIES.
[46 U.S.C. App. 1295c]
(a) Cooperation and Assistance.--The Secretary shall
cooperate with and assist any State maritime academy in
providing instruction to individuals to prepare them for
service in the merchant marine of the United States.
(b) Regional Maritime Academies.--The Governors of all States
or territories of the United States, or both, cooperating to
sponsor a regional maritime academy shall designate in writing
one State or territory of the United States, from among the
sponsoring States or territories, or both, to conduct the
affairs of such regional maritime academy. Any regional
maritime academy shall be eligible for assistance from the
Federal Government on the same basis as any State maritime
academy sponsored by a single State or territory of the United
States.
(c) Training Vessels.--
(1)(A) The Secretary may furnish for training
purposes any suitable vessel under the control of the
Secretary or provided under subparagraph (B), or
construct and furnish a suitable vessel if such a
vessel is not available, to any State maritime academy
meeting the requirements of subsection (f)(1). Any such
vessel--
(i) shall be repaired, reconditioned, and
equipped (including supplying all apparel,
charts, books, and instruments of navigation)
as necessary for use as a training ship;
(ii) shall be furnished to such State
maritime academy only after application for
such vessel is made in writing by the Governor
of the State or territory sponsoring such State
maritime academy or, with respect to a regional
maritime academy the Governor of the State or
territory designated pursuant to subsection
(b);
(iii) shall be furnished to such State
maritime academy only if a suitable port for
the safe mooring of such vessel is available
while it is being used by such academy;
(iv) shall be maintained in good repair by
the Secretary; and
(v) shall remain the property of the United
States.
(B) Any department or agency of the United States may
provide to the Secretary to be furnished to any State
maritime academy any vessel (including equipment) which
is suitable for the purposes of this paragraph and
which can be provided without detriment to the service
to which such vessel is assigned. (2) (A) The Secretary
shall, subject to the availability of appropriations,
pay to each State maritime academy the amount of the
costs of all fuel consumed by any vessel furnished
under paragraph (1) while such vessel is being used for
training purposes by such academy.
(B) The amount of the payment to a State maritime
academy under this paragraph shall not exceed--
(i) $100,000 for fiscal year 2006;
(ii) $200,000 for fiscal year 2007; and
(iii) $300,000 for fiscal year 2008 and each
fiscal year thereafter.
(3)(A) The Secretary may provide for the training of
individuals attending a State maritime academy--
(i) on vessels owned or subsidized by the
United States;
(ii) on other vessels documented under the
laws of the United States if the owner of any
such vessel cooperates in such use; and
(iii) in shipyards or plants and with any
industrial or educational organizations.
(B) While traveling under orders for purposes of
receiving training under this paragraph, any individual
who is attending a State maritime academy shall receive
from the Secretary allowances for transportation
(including reimbursement of traveling expenses) in
accordance with any regulations promulgated by the
Secretary.
(d) Annual Payments.--
(1)(A) The Secretary may enter into an agreement,
which shall be effective for not more than 4 years,
with one State maritime academy (not including regional
maritime academies) located in each State or territory
of the United States which meets the requirements of
subsection (f)(1), and with each regional maritime
academy which meets the requirements of subsection
(f)(1), to make annual payments to each such academy
for the maintenance and support of such academy.
(B) Subject to subparagraph (C), the annual payment
to such State maritime academy shall be at least equal
to the amount given to the academy for its maintenance
and support by the State in which it is located, and to
such regional maritime academy shall be at least equal
to the amount given the academy by all States and
territories cooperating to sponsor the academy.
(C) The amount under subparagraph (B) may not be more
than $ 25,000, except that the amount shall be--
(i) $100,000 to such State maritime academy
if the academy meets the condition set forth in
subsection (f)(2); or
(ii) $300,000 for fiscal year 2006, $400,000
for fiscal year 2007, and $500,000 for fiscal
year 2008 and each fiscal year thereafter to
such regional maritime academy if the academy
meets the condition set forth in subsection
(f)(2).
(2) The Secretary shall provide to each State
maritime academy guidance and assistance in developing
courses on the operation and maintenance of new
vessels, on equipment, and on innovations being
introduced to the merchant marine of the United States.
(e) Detailing of Personnel.--Upon the request of the Governor
of any State or territory, the President may detail, without
reimbursement, any of the personnel of the United States Navy,
the United States Coast Guard, or the United States Maritime
Service to any State maritime academy to serve as
superintendents, professors, lecturers, or instructors at such
academy.
(f) Conditions to Receiving Payments or Use of Vessels.
(1) As a condition to receiving any payment or the
use of any vessel under this section, any State
maritime academy shall--
(A) provide courses of instruction on
navigation, marine engineering (including steam
and diesel propulsion), the operation and
maintenance of new vessels and equipment, and
innovations being introduced to the merchant
marine of the United States;
(B) agree in writing to conform to such
standards for courses, training facilities,
admissions, and instruction as are established
by the Secretary after consultation with the
superintendents of the State maritime
academies; and
(C) agree in writing to require, as a
condition for graduation, that each individual
who is a citizen of the United States and who
is attending the academy in a merchant marine
officer preparation program shall pass the
examination administered by the Coast Guard
required for issuance of a license under
section 7101 of title 46, United States Code.
(2) As a condition to receiving an annual payment of
any amount in excess of $25,000 under subsection (d), a
State maritime academy shall agree to admit to such
academy each year a number of individuals who meet the
admission requirements of such academy and who are
citizens of the United States residing in States and
territories of the United States other than the States
or territories, or both, supporting such academy. The
Secretary shall determine the number of individuals
under this paragraph for each State maritime academy so
that such number does not exceed one-third of the total
number of individuals attending such academy at any
time.
(g) Student Incentive Payment Agreements.--
(1) The Secretary may enter into an agreement, which
shall be effective for not more than 4 academic years,
with any individual, who is a citizen of the United
States and is attending a State maritime academy which
entered into an agreement with the Secretary under
subsection (d)(1), to make student incentive payments
to such individual, which payments shall be in amounts
equaling $4,000 for each academic year and which
payments shall be--
(A) allocated among the various State
maritime academies in a fair and equitable
manner;
(B) used to assist the individual in paying
the cost of uniforms, books, and subsistence;
and
(C) paid by the Secretary as the Secretary
shall prescribe while the individual is
attending the academy.
[(2) Each agreement entered into under paragraph (1)
shall require the individual to accept midshipman and
enlisted reserve status in the United States Navy
Reserve (including the Merchant Marine Reserve, United
States Navy Reserve) before receiving any student
incentive payments under this subsection.]
(2) Each agreement entered into under paragraph (1)
shall require the individual to accept enlisted reserve
status in the United States Naval Reserve (including
the Merchant Marine Reserve, United States Naval
Reserve) or the United States Coast Guard Reserve
before receiving any student incentive payments under
this subsection.
(3) Each agreement entered into under paragraph (1)
shall obligate the individual receiving student
incentive payments under the agreement--
(A) to complete the course of instruction at
the State maritime academy which the individual
is attending;
(B) to take the examination for a license as
an officer in the merchant marine of the United
States on or before the date of graduation from
such State maritime academy of such individual
and to fulfill the requirements for such
license not later than 3 months after such
graduation date;
(C) to maintain a valid license as an officer
in the merchant marine of the United States for
at least 6 years following the date of
graduation from such State maritime academy of
such individual, accompanied by the appropriate
national and international endorsements and
certification as required by the United States
Coast Guard for service aboard vessels on
domestic and international voyages;
(D) to accept if tendered an appointment as,
and to serve as a commissioned officer in the
United States Navy Reserve (including the
Merchant Marine Reserve, United States Navy
Reserve), the United States Coast Guard
Reserve, or any other reserve unit of an armed
force of the United States, for at least 6
years following the date of graduation from
such State maritime academy of such individual;
(E) to serve the foreign and domestic
commerce and the national defense of the United
States for at least 3 years following the date
of graduation from the Academy--
(i) as a merchant marine officer
serving on vessels documented under the
laws of the United States or on vessels
owned and operated by the United States
or by any State or territory of the
United States;
(ii) 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
clause (i) is not available to such
individual;
(iii) 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 employment with the
Federal Government which serves the
national security interests of the
United States, as determined by the
Secretary; or
(iv) by combining the services
specified in clauses (i), (ii), and
(iii); and (F) to report to the
Secretary on the compliance by the
individual to this paragraph.
(4)(A) If the Secretary determines that an individual
who has accepted the payment described in paragraph (1)
for a minimum of 2 academic years has failed to fulfill
the part of the agreement required by paragraph (1) and
described in paragraph (3)(A), such individual may be
ordered by the Secretary of Defense to active duty in
the Armed Forces of the United States to serve for a
period of time not to exceed 2 years. In cases of
hardship, as determined by the Secretary, the Secretary
may waive this provision in whole or in part.
(B) If the Secretary of Defense is unable or
unwilling to order an individual to active duty under
subparagraph (A), 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--(i) subject to clause (ii), may
recover from the individual the amount of student
incentive payments, plus interest and attorneys fees;
and (ii) may reduce the amount to be recovered from
such individual to reflect partial performance of
service obligations and such other factors as the
Secretary determines merit such reduction.
(5)(A) If the Secretary determines that an individual
has failed to fulfill any part of the agreement
required by paragraph (1), as described in paragraph
(3)(B), (C), (D), (E), or (F), such individual may be
ordered to active duty to serve a period of time not
less than 2 years and not more than the unexpired
portion, as determined by the Secretary, of the service
required by paragraph (3)(E). The Secretary, in
consultation with the Secretary of Defense, shall
determine in which service the individual shall be
ordered to active duty to serve such period of time. In
cases of hardship, as determined by the Secretary, the
Secretary may waive this provision in whole or in part.
(B) If the Secretary of Defense is unable or
unwilling to order an individual to active duty under
subparagraph (A), 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--
(i) subject to clause (ii), may recover from
the individual the amount of student incentive
payments, plus interest and attorneys fees; and
(ii) may reduce the amount to be recovered
from such individual to reflect partial
performance of service obligations and such
other factors as the Secretary determines merit
such reduction.
(6) To aid in the recovery of student incentive
payments plus interest and attorneys fees the Secretary
may request the Attorney General to begin court
proceedings, and the Secretary may make use of the
Federal debt collection procedures in chapter 176 of
title 28, United States Code, and other applicable
administrative remedies.
(7) The Secretary may defer the service commitment of
any individual pursuant to subparagraph (E) of
paragraph (3) (as specified in the agreement required
by such paragraph) for a period of not more than 2
years if such individual is engaged in a graduate
course of study approved by the Secretary, except that
any deferment of service as a commissioned officer
pursuant to subparagraph (E) of such paragraph must be
approved by the Secretary of the military department
(including the Secretary of Commerce with respect to
the National Oceanic and Atmospheric Administration)
which has jurisdiction over such service.
(8) This subsection shall apply only to individuals
first entering a State maritime academy after the date
occurring 6 months after the effective date of the
Maritime Education and Training Act of 1980.
(h) Appointment of Cadet as Midshipman in United States Navy
Reserve.--Any citizen of the United States attending a State
maritime academy may be appointed by the Secretary of the Navy
as a midshipman in the United States Navy Reserve (including
the Merchant Marine Reserve, United States Navy Reserve).
MERCHANT MARINE ACT, 1936
TITLE XIII--MARINE EDUCATION AND TRAINING
SEC. 1309. OPERATION OF THE GLOBAL MARITIME AND TRANSPORTATION SCHOOL.
(a) Operation as Nonappropriated Fund Instrumentality.--After
the date of enactment of the Maritime Administration
Improvement Act of 2006, the Global Maritime and Transportation
School shall continue to operate as a nonappropriated fund
instrumentality of the United States under the jurisdiction of
the Department of Transportation, Maritime Administration.
(b) Activities.--
(1) In general.--Under the general supervision of the
Department of Transportation, Maritime Administration,
the school shall develop, administer, and provide
educational, training, and professional development
activities, including educational activities, for
Federal agencies, Federal employees, nonprofit
organizations, other entities, and members of the
general public, as well as carry out such other
projects and activities that may be authorized by the
Superintendent.
(2) Training services.--The training services and
educational activities provided by the school shall be
available to the Armed Forces of the United States and
Commissioned Officers of the National Oceanic and
Atmospheric Administration, Federal and State agencies,
Federal and State employees, nonprofit organizations,
private companies or organizations, and private
individuals of the United States or foreign countries
friendly to the United States.
(c) Fees and Donations.--
(1) Collection of fees.--The school may charge and
retain fair and reasonable fees for the activities
provided.
(2) Acceptance and making of donations.--
(A) The school may not accept any gifts of
services or other items from the United States
of America. The school may accept, use, hold,
dispose, and administer gifts, bequests, and
devises of money, securities, and other real or
personal property made for the benefit of, or
in connection with the school from parties
other than the United States of America.
(B) The school shall not accept a donation
from a person that is actively engaged in a
procurement activity with the school or has an
interest that may be substantially affected by
the performance or nonperformance of an
official duty of a member of the Board or an
employee of the school.
(C) The school is authorized to make gifts to
the Department of Transportation and the
Secretary is authorized to accept gifts from
the school for any purpose.
(3) Not federal funds.--Fees collected under
paragraph (1) and amounts received under paragraph (2)
shall not be considered to be Federal funds and shall
not be required to be deposited in the Treasury of the
United States. The school shall not be funded by
appropriated funds.
(d) Use of USMMA Faculty and Staff.--
(1) Payment.--The school may provide payment to
United States Merchant Marine Academy faculty and staff
for teaching and other services for the school, but
only to the extent that the provision of such teaching
or services does not interfere or conflict with the
official duties of the faculty and staff and are
approved by the Superintendent.
(2) Contracting authority.--The Academy may enter
into contracts with the school to provide faculty and
staff of the Academy for teaching and other services
and, to the extent of the actual costs incurred by the
Academy under said contracts, credit such funds
received under such contracts to the Academy's
appropriations, notwithstanding those provisions of law
relating to the deposit of miscellaneous receipts into
the Treasury.
(e) General Administration.--
(1) Authority of superintendent.--The Superintendent
is responsible for the overall supervision and
administration of the school and the determination of
its policies. In implementing this responsibility, the
Superintendent shall appoint members to the Board and
shall designate one member as the Senior Managing
Director and may designate other Managing Directors as
necessary.
(2) Authority of the board.--The Superintendent may
delegate to the Board the Superintendent's
responsibility to advise and oversee the supervision
and administration of the school. The Board may consist
of both United States Merchant Marine Academy employees
and non-Academy employees, as determined by the
Superintendent. The Board shall be subject to
regulation by the Secretary and shall report to the
Superintendent.
(3) Authority of the senior managing director.--The
Superintendent may delegate to the Senior Managing
Director of the school the authority to manage,
administer, and operate the school.
(4) Duties of the managing directors.--The Senior
Managing Director shall be responsible, subject to the
supervision and direction of the Board and the
Superintendent, for carrying out the functions of the
school. All other Managing Directors shall be
responsible, subject to the supervision and direction
of the Senior Managing Director, for carrying out the
functions of the school.
(5) Borrowing and investment authority.--The Board,
with the approval of the Superintendent, may authorize
the Senior Managing Director--
(A) to borrow money on the credit of the
school; and
(B) to invest funds held in excess of the
current operating requirements of the school
for purposes of maintaining a reasonable
reserve.
(6) Liability.--The Managing Directors and the other
members of the Board shall not be held personally
liable for any loss or damage that may accrue to the
school as the result of any act performed within the
scope of their duties under this section.
(f) Employees.--Employees of the school are employees of a
nonappropriated fund instrumentality of the United States.
(g) Not a Federal Agency.--The the school shall not be
considered a Federal agency for purposes of--
(1) the Federal Advisory Committee Act; or
(2) sections 552 and 552a of title 5, United States
Code.
(h) Acquisition and Disposal of Property.--In order to carry
out the activities of the school, the school may--
(1) acquire goods, services, and real property by
lease, purchase, or otherwise;
(2) maintain, enlarge, or remodel any such property;
(3) have sole control of any such personal or real
property; and
(4) dispose of real and personal property without
regard to the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 101 et seq.).
(i) Contract Authority.--The school may enter into contracts
and leases without regard to the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 101 et seq.) or
any other law that prescribes procedures for the procurement of
property or service by an executive agency.
(j) Use of Department Facilities and Resources.--The school
may use the facilities and resources of the Department of
Transportation, with the approval of the Superintendent, but
only if any costs incurred by the Department that are
attributable solely to the school operations and all costs
incurred by the school arising out of such operations are paid
using funds of the school or the Department of Transportation
receives other adequate consideration for paying for such
costs. Any reimbursement may be retained by the United States
Merchant Marine Academy and credited to the charged
appropriations account.
(k) Audits of Records.--The financial records of the school
shall be made available to the Department of Transportation
Inspector General, upon request, for purposes of conducting an
audit.
(l) Definitions.--In this section:
(1) Board.--The term ``Board'' means the school Board
of Directors.
(2) Director.--The term ``Director'' means a member
of the school's Board of Directors.
(3) Managing director.--The term ``Managing
Director'' means a member of the Board who is an
employee of the school with operational responsibility
for the organization, but not a Federal employee.
(4) Senior managing director.--The term ``Senior
Managing Director'' means the Managing Director
designated the ``Senior Managing Director'' by the
Superintendent, as set forth in subsection (e) of this
section.
(5) Secretary.--The term ``Secretary'' means the
Secretary of Transportation.
(6) Superintendent.--The term ``Superintendent''
means the Superintendent of the United States Merchant
Marine Academy at Kings Point, New York, operated by
the Maritime Administration, United States Department
of Transportation or, in the absence of the
Superintendent, the Superintendent's authorized
designee or such other person as the Secretary may
designate.
MERCHANT MARINE DECORATIONS AND MEDALS ACT
SEC. 8. EXCLUSIVENESS OF RIGHT TO DECORATION OR MEDAL; CIVIL PENALTY
FOR VIOLATION.
[46 U.S.C. App. 2007]
Except as authorized by this Act, or the Secretary of
Transportation, a person may not manufacture, sell, possess, or
display a decoration or medal provided for in this Act. A
person violating this section is liable to the United States
Government for a civil penalty of $2,000.