[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2029 Reported in Senate (RS)]
Calendar No. 295
109th CONGRESS
1st Session
S. 2029
[Report No. 109-183]
To amend and enhance certain maritime programs of the Department of
Transportation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 17, 2005
Mr. Stevens, from the Committee on Commerce, Science, and
Transportation, reported the following original bill; which was read
twice and placed on the calendar
_______________________________________________________________________
A BILL
To amend and enhance certain maritime programs of the Department of
Transportation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Maritime
Administration Enhancement Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Title I--Enhancement of Maritime Programs.
Sec. 101. United States Maritime Service.
Sec. 102. War risk insurance for merchant marine vessels.
Sec. 103. Maritime education and training.
Sec. 104. Authority to dispose of obsolete government vessels.
Sec. 105. Awards and medals.
Sec. 106. Elimination of tariffs on certain national defense
activities.
Sec. 107. Availability of funds from application fees for deepwater
port licenses.
Sec. 108. Availability of funds from administrative waivers of
coastwise trade laws for eligible vessels.
Sec. 109. Amendment to vessel operations revolving fund.
Sec. 110. Right to use Maritime Administration decoration.
Sec. 111. Hawaii port infrastructure expansion program.
Sec. 112. Payments for State and regional maritime academies.
Sec. 113. Reduction of report burden.
Sec. 114. Assistance for small shipyards and maritime communities.
Title II--Loan Guarantee Program Administrative Changes
Sec. 201. Redesignation of duplicate numbered sections.
Sec. 202. Transfer of authority for Title XI non-fishing loan guarantee
decisions to MARAD.
TITLE I--ENHANCEMENT OF MARITIME PROGRAMS
SEC. 101. UNITED STATES MARITIME SERVICE.
Section 1306(a) of the Maritime Education and Training Act of 1980
(46 U.S.C. App. 1295e(a)), is amended by inserting ``and to perform
functions to assist the United States merchant marine, as determined
necessary by the Secretary,'' after ``United States'' the second place
it appears.
SEC. 102. WAR RISK INSURANCE FOR MERCHANT MARINE VESSELS.
Section 1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App.
1288(a)) is amended by striking ``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.'' and inserting ``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 need 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.''.
SEC. 103. MARITIME EDUCATION AND TRAINING.
(a) Requirements for Admission to the United States Merchant Marine
Academy.--Section 1303(b)(2) of the Merchant Marine Act, 1936 (46
U.S.C. App. 1295b(b)(2)) is amended by adding at the end the following:
``(C) Notwithstanding any other provision of law, 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 any other provision of law, 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.''.
(b) Reserve Training Compliance and Armed Forces Performance
Reporting Requirement for United States Merchant Marine Academy
Graduates.--Section 1303(e) of the Merchant Marine Act, 1936 (46 U.S.C.
App. 1295b(e)) is amended--
(1) by striking subparagraph (D) of paragraph (1) and
inserting the following:
``(D) to apply for an appointment as, to accept if tendered
an appointment as, and to serve and perform all required duties
and comply with all requirements as, a commissioned officer in
Ready Reserve status in the United States Naval Reserve
(including the Merchant Marine Reserve and the United States
Naval Reserve), any other Reserve component of an armed force
of the United States, or any other equivalent, as determined by
the Secretary;''; and
(2) by adding at the end the following:
``(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 an 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 been defaulted and provide all required
information as to why such graduate has been defaulted. 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.''.
(c) Authority for Additional Training Locations for Students at the
United States Merchant Marine Academy.--Section 1303(f) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295b(f) is amended--
(1) by striking ``and'' in paragraph (2);
(2) by striking ``organizations.'' in paragraph (3) and
inserting ``organizations; and''; and
(3) by adding at the end the following:
``(4) on such other vessels as the Secretary determines to
be valuable for the education of cadets at the Academy or in
the interest of national security.''.
(d) Service in the Armed Forces and Alternate Service
Requirements.--Section 1303(e) of the Merchant Marine Act, 1936 (46
U.S.C. App. 1295b(e)), as amended by subsection (b) of this section, is
further amended by adding at the end the following:
``(7) An individual who serves as a commissioned officer on active
duty in an armed force of the United States or in the National Oceanic
and Atmospheric Administration for the 5 years immediately following
graduation from the Academy shall be excused from the requirements of
subparagraphs (1)(C), (1)(D), and (1)(E).
``(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.''.
(e) Global Maritime and Transportation School.--Title XIII of the
Merchant Marine Act, 1936 (46 U.S.C. App. 1295 et seq.) is amended by
adding at the end the following:
``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 Enhancement Act of
2005, 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, GMATS
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 GMATS 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.
``(3) Federal requests for services.--Requests for training
or other services from the Armed Forces of the United States or
other agencies of the United States may be made pursuant to the
provisions of section 1535 of title 31, United States Code.
``(c) Fees and Donations.--
``(1) Collection of fees.--GMATS may charge and retain fair
and reasonable fees for the activities provided.
``(2) Acceptance and making of donations.--
``(A) GMATS 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 GMATS.
``(B) GMATS shall not accept a donation from a
person that is actively engaged in a procurement
activity with GMATS 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 GMATS.
``(C) GMATS is authorized to make gifts to the
Department of Transportation and the Secretary is
authorized to accept gifts from GMATS 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. GMATS shall not
be funded by appropriated funds.
``(d) Use of USMMA Faculty and Staff.--
``(1) Payment.--GMATS may provide payment to United States
Merchant Marine Academy faculty and staff for teaching and
other services for GMATS, 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 GMATS 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
GMATS 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 GMATS.
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
GMATS the authority to manage, administer, and operate GMATS.
``(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 GMATS. All other Managing
Directors shall be responsible, subject to the supervision and
direction of the Senior Managing Director, for carrying out the
functions of GMATS.
``(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 GMATS; and
``(B) to invest funds held in excess of the current
operating requirements of GMATS 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 GMATS as the result of
any act performed within the scope of their duties under this
section.
``(f) Employees.--Employees of GMATS are employees of a
nonappropriated fund instrumentality of the United States.
``(g) Not a federal agency.--The GMATS shall not be considered a
Federal agency for purposes of--
``(1) the Federal Advisory Committee Act (5 U.S.C. ); 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 GMATS, GMATS 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.--GMATS 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.--GMATS 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 GMATS operations and all
costs incurred by GMATS arising out of such operations are paid using
funds of GMATS or the Department of Transportation receives other
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 GMATS 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) GMATS.--The term `GMATS' means the Global Maritime
and Transportation School at the United States Merchant Marine
Academy, a nonappropriated fund instrumentality of the Maritime
Administration of the United States Department of
Transportation.
``(2) Board.--The term `Board' means the GMATS Board of
Directors.
``(3) Director.--The term `Director' means a member of the
GMATS Board.
``(4) Managing Director.--The term `Managing Director'
means a member of the Board who is an employee of GMATS with
operational responsibility for the organization, but not a
Federal employee.
``(5) 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.
``(6) Secretary.--The term `Secretary' means the Secretary
of Transportation.
``(7) 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.''.
SEC. 104. AUTHORITY TO DISPOSE OF OBSOLETE GOVERNMENT VESSELS.
(a) Repeal of Limitation on Scrapping.--Section 3502 of the Floyd
D. Spence National Defense Authorization Act of Fiscal Year 2001 (Pub.
L. 106-398; 114 Stat.1654A-490) is amended-
(1) by striking subsection (c);
(2) redesignating subsections (d), (e), and (f) as
subsections (c), (d), and (e), respectively; and
(3) striking ``subsection (d)(1)'' in subsections ((d) and
(e), as redesignated, and inserting ``subsection (c)(1)''.
(b) Transfer of Title of Obsolete Vessels To Be Disposed of as
Artificial Reefs.--Paragraph (4) of section 4 of the Act entitled ``An
Act to authorize appropriations for the fiscal year 1973 for certain
maritime programs of the Department of Commerce, and for related
purposes'' (Pub. L. 92-402; 16 U.S.C. 1220a) is amended to read as
follows:
``(4) the transfer would be at no cost to the government
(except for any financial assistance provided under section
1220(c)(1) of this title) with the State taking delivery of
such obsolete ships and titles in an `as-is--where-is'
condition at such place and time designated as may be
determined by the Secretary of Transportation.''.
SEC. 105. AWARDS AND MEDALS.
Section 5(c) of the Merchant Marine Decorations and Medals Act (46
U.S.C. App. 2004(c)) is amended by striking ``provide at cost, or
authorize for the manufacture and sale at reasonable prices by private
persons--'' and inserting ``provide--''.
SEC. 106. ELIMINATION OF TARIFFS ON CERTAIN NATIONAL DEFENSE
ACTIVITIES.
(a) Duty-free Treatment for Emergency War Materials Imported for
Use by the Maritime Administration.--
(1) The superior text to subheading 9808.00.30 of chapter
98 of the Harmonized Tariff Schedule of the United States is
amended by inserting ``or the Maritime Administration'' after
``departments''.
(2) Subheading 9808.00.30 of chapter 98 of the Harmonized
Tariff Schedule of the United States is re-designated as
subheading 9808.00.35.
(3) The amendments made by this subsection shall be
effective with respect to goods entered, or withdrawn from
warehouse for consumption, on or after the fifteenth day after
the date of enactment of this Act.
(b) Repairs Made to Vessels Operated as Part of the National
Defense Reserve Fleet.--Section 466 of the Tariff Act of 1930 (19
U.S.C. 1466) is amended by redesignating subsections (g) and (h) as
subsections (h) and (i), respectively, and inserting after subsection
(f) the following:
``(g) National Defense Reserve Fleet Exception.--
``(1) In general.--The duty imposed under subsection (a)
shall not apply to the cost of equipment, or any part thereof
purchased, of repair parts or materials used, or expenses of
repairs made in a foreign country for any vessel operated as
part of the National Defense Reserve Fleet when the vessel is
under the jurisdictional control of the Department of Defense
if equivalent equipment, parts, repair parts, or materials made
in the United States, or repairs made in the United States were
determined by the Secretary of Transportation not to be
reasonably available.
``(2) Report on determinations.--The Secretary of
Transportation shall transmit a report to the Senate Committee
on Commerce, Science, and Transportation and the House of
Representatives Committee on Armed Services setting forth the
circumstances under which any such determination was made by
the Secretary.''.
SEC. 107. AVAILABILITY OF FUNDS FROM APPLICATION FEES FOR DEEPWATER
PORT LICENSES.
(a) In General.--Fees collected pursuant to the processing of
applications for licenses for ownership, construction, and operation of
deepwater ports, as authorized by section 5 of the Deepwater Port Act
of 1974 (33 U.S.C. 1504), shall be credited to the Maritime
Administration for deposit into its operations and training account.
Fees credited pursuant to this section shall be used to defray
administrative expenses and for enhancements and improvements to the
program's operations, and shall be available until expended.
(b) Limitation.--The amount of fees credited to the Administration
under this section may not exceed $450,000 per fiscal year.
SEC. 108. AVAILABILITY OF FUNDS FROM ADMINISTRATIVE WAIVERS OF
COASTWISE TRADE LAWS FOR ELIGIBLE VESSELS.
(a) In General.--Notwithstanding section 3302 of title 31, United
States Code, fees collected pursuant to the processing of
Administrative Waivers of the Coastwise Trade Laws for Eligible
Vessels, as authorized by title V of the Coast Guard Authorization Act
of 1998 (46 U.S.C. 12106 note)--
(1) shall be credited as offsetting collections to the
Maritime Administration for deposit into its Operations and
Training account;
(2) shall be available for expenditure to defray
administrative expenses and for enhancements and improvements
to the program's operations; and
(3) shall remain available until expended.
(b) Limitation.--The amount of fees credited to the Administration
under this section may not exceed $50,000 per fiscal year.
SEC. 109. AMENDMENT TO VESSEL OPERATIONS REVOLVING FUND.
Section 801 of the Act of June 2, 1951 (46 U.S.C. App. 1241a) is
amended to read as follows:
``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 in the Fund shall be available for the
purposes of the Fund, notwithstanding any other provision of law, 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.--Notwithstanding any other provision of
law, 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.--Paragraph (1) does not apply
to a vessel under a construction-differential subsidy
contract.''.
SEC. 110. RIGHT TO USE MARITIME ADMINISTRATION DECORATION.
Section 8 of the Merchant Marine Decorations and Medals Act (46
U.S.C. App. 2007) is amended by inserting ``or the Secretary of
Transportation,'' after ``Act,''.
SEC. 111. HAWAII PORT INFRASTRUCTURE EXPANSION PROGRAM.
Amounts appropriated or otherwise made available for any fiscal
year for an intermodal marine facility comprising a component of the
Hawaii Port Infrastructure Expansion Program, and any non-Federal
contributions made available for that program, shall be--
(1) transferred to and administered by the Administrator of
the Maritime Administration; and
(2) subject only to such conditions and requirements as may
be required by the Maritime Administration.
SEC. 112. PAYMENTS FOR STATE AND REGIONAL MARITIME ACADEMIES.
(a) Annual Payment.--Section 1304(d)(1)(C)(ii) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295c(d)(1)(C)(ii)) is amended by
striking ``$200,000'' and inserting ``subject to the availability of
appropriations, $300,000 for fiscal year 2006, $400,000 for fiscal year
2007, and $500,000 for fiscal year 2008 and each fiscal year
thereafter''.
(b) School Ship Fuel Payment.--Section 1304(c)(2) of the Merchant
Marine Act, 1936 (46 U.S.C. App. 1295c(c)(2)) is amended--
(1) by striking `The Secretary may pay to any State
maritime academy' and inserting `(A) The Secretary shall,
subject to the availability of appropriations, pay to each
State maritime academy'; and
(2) by adding at the end the following:
``(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.''.
SEC. 113. REDUCTION OF REPORT BURDEN.
Section 3502 of the Floyd D. Spence National Defense Authorization
Act for Fiscal Year 2001 (114 Stat. 1654A-492), as amended by section
104, is further amended by striking subsection (d), as redesignated,
and redesignating subsection (e) as subsection (d).
SEC. 114. ASSISTANCE FOR SMALL SHIPYARDS AND MARITIME COMMUNITIES.
(a) Establishment of Program.--The Administrator of the Maritime
Administration shall establish a program to provide assistance to State
and local governments--
(1) to provide assistance in the form of grants, loans, and
loan guarantees to small shipyards for capital improvements;
and
(2) for maritime training programs in communities whose
economies are substantially related to the maritime industry.
(b) Awards.--In providing assistance under the program, the
Administrator shall--
(1) take into account--
(A) the economic circumstances and conditions of
maritime communities; and
(B) the local, State, and regional economy in which
the communities are located; and
(2) strongly encourage State, local, and regional efforts
to promote economic development and training that will enhance
the economic viability of and quality of life in maritime
communities.
(c) Use of Funds.--Assistance provided under this section may be
used--
(1) to make capital and related improvements in small
shipyards located in or near maritime communities;
(2) to encourage, assist in, or provide training for
residents of maritime communities that will enhance the
economic viability of those communities; and
(3) for such other purposes as the Administrator determines
to be consistent with and supplemental to such activities.
(d) Prohibited Uses.--Grants awarded under this section may not be
used to construct buildings or other physical facilities or to acquire
land unless such use is specifically approved by the Administrator in
support of subsection (c)(5).
(e) Matching Requirements.--
(1) Federal funding.--Except as provided in paragraph (2),
Federal funds for any eligible project under this section shall
not exceed 75 percent of the total cost of such project.
(2) Exceptions.--
(A) Small projects.--Paragraph (1) shall not apply
to grants under this section for stand alone projects
costing not more than $25,000. The amount under this
subparagraph shall be indexed to the consumer price
index and modified each fiscal year after the annual
publication of the consumer price index.
(B) Reduction in matching requirement.--If the
Administrator determines that a proposed project merits
support and cannot be undertaken without a higher
percentage of Federal financial assistance, the
Administrator may award a grant for such project with a
lesser matching requirement than is described in
paragraph (1).
(f) Application.--
(1) In general.--The Administrator shall determine who, as
an eligible applicant, may submit an application, at such time,
in such form, and containing such information and assurances as
the Administrator may require.
(2) Minimum standards for payment or reimbursement.--Each
application submitted under paragraph (1) shall include--
(A) a comprehensive description of--
(i) the need for the project;
(ii) the methodology for implementing the
project; and
(iii) any existing programs or arrangements
that can be used to supplement or leverage
assistance under the program.
(3) Procedural safeguards.--The Administrator, in
consultation with the Office of the Inspector General, shall
issue guidelines to establish appropriate accounting,
reporting, and review procedures to ensure that--
(A) grant funds are used for the purposes for which
they were made available;
(B) grantees have properly accounted for all
expenditures of grant funds; and
(C) grant funds not used for such purposes and
amounts not obligated or expended are returned.
(4) Project approval required.--The Administrator may not
award a grant under this section unless the Administrator
determines that--
(A) sufficient funding is available to meet the
matching requirements of subsection (e);
(B) the project will be completed without
unreasonable delay; and
(C) the recipient has authority to carry out the
proposed project.
(g) Audits and Examinations.--All grantees under this section shall
maintain such records as the Administrator may require and make such
records available for review and audit by the Administrator.
(h) Small Shipyard Defined.--In this section, the term ``small
shipyard'' means a shipyard that--
(1) is a small business concern (within the meaning of
section 3 of the Small Business Act (15 U.S.C. 632); and
(2) does not have more than 600 employees.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to the Administrator of the Maritime Administration for
each of fiscal years 2006 through 2010 to carry out this section--
(1) $5,000,000 for training grants; and
(2) $25,000,000 for capital and related improvement grants.
TITLE II--LOAN GUARANTEE PROGRAM ADMINISTRATIVE CHANGES
SEC. 201. REDESIGNATION OF DUPLICATE NUMBERED SECTIONS.
Title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et
seq.) is amended by redesignating the second sections 1111 and 1112, as
added by section 303 of the Sustainable Fisheries Act (Public Law 104-
297; 110 Stat. 3616) as sections 1113 and 1114, respectively.
SEC. 202. TRANSFER OF AUTHORITY FOR TITLE XI NON-FISHING LOAN GUARANTEE
DECISIONS TO MARAD.
(a) In General.--Title XI of the Merchant Marine Act, 1936 (46
U.S.C. App. 1271 et seq.) is amended--
(1) by striking ``Secretary'' each place it appears and
inserting ``Secretary or Administrator'' in--
(A) section 1101 (c), (f), and (g);
(B) section 1102;
(C) section 1103(a), (b), (c), (e), (g), and (h);
(D) section 1104A, except in--
(i) subsection (b)(7) and the undesignated
paragraph that follows;
(ii) paragraphs (1), (2), (3)(B), and (4)
of subsection (d);
(iii) subsection (e)(2)(F) the second place
it appears;
(iv) subsection (j); and
(v) subsection (n)(1) the first place it
appears;
(E) section 1104B;
(F) section 1105(a), (b), (c), and (e);
(G) section 1105(d) the first, second, third,
fifth, and last places it appears; and
(H) sections 1108, 1109 (except in subsection (c)),
and 1113 (as redesignated by section 201 of this
title);
(2) by striking ``Secretary'' and inserting
``Administrator'' in--
(A) section 1103(i);
(B) section 1103(j) the first place it appears;
(C) section 1104A(b)(7) each place it appears but
not in the undesignated paragraph that follows
subsection (b)(7);
(D) section 1104A(d)(1)(A) each place it appears
except the first;
(E) section 1104A(d)(3) each place it appears
except in subparagraph (B);
(F) section 1104A(j)(1) the first, fifth, and
seventh places it appears;
(G) section 1104A(n) each place it appears except
the first;
(H) section 1110 each place it appears except the
first and fourth places it appears in subsection (b);
(I) section 1111(a) and (b)(2) each place it
appears;
(J) section 1111(b)(4) each place it appears except
the first; and
(K) section 1112 each place it appears; and
(3) by striking ``Secretary's'' in sections 1108(g)(1) and
1109(d)(3) and inserting ``Secretary's or Administrator's''.
(b) Additional and Conforming Title XI Changes.--
(1) Section 1101 is amended--
(A) by striking ``title,'' and all that follows in
subsection (n) and inserting ``title.''; and
(B) by adding at the end the following:
``(p) The term `Administrator' means the Administrator of
the Maritime Administration.''.
(2) Section 1103(j) is amended by striking ``In
guaranteeing and entering commitments to guarantee under this
section,'' and inserting ``If the Secretary or Administrator
seeks a priority for a commitment to guarantee under this
section,''.
(3) Section 1104A(d) is amended--
(A) by striking ``Secretary of Transportation'' in
paragraphs (1)(A) and (3)(B) and inserting
``Administrator'';
(B) by striking ``the waiver'' in paragraph (4)(B)
and inserting ``if deemed necessary by the Secretary or
Administrator, the waiver'';
(C) by striking ``the increased'' in paragraph
(4)(B) and inserting ``any significant increase in''.
(4) Section 1104A(f) is amended--
(A) by striking ``financial structures, or other
risk factors identified by the Secretary or
Administrator.'' in paragraph (2), as amended by
subsection (a) of this section, and inserting ``or
financial structures.'';
(B) by adding at the end of paragraph (2) ``The
Secretary or Administrator shall not establish by rule,
regulation, or procedure any requirement for
independent analysis that is, or is intended to be,
applied uniformly to loan guarantee applications
without regard to such risk factors.'';
(C) by striking ``financial structures, or other
risk factors identified by the Secretary or
Administrator.'' in paragraph (3), as amended by
subsection (a) of this section, and inserting ``or
financial structures.''; and
(D) by adding at the end the following:
``(5) A third party independent analysis conducted under paragraph
(2) shall be performed by a private sector expert in assessing such
risk factors who is selected by the Administrator. No Federal funds
shall be expended to conduct any review of any application under this
title, or any modification of an existing loan guarantee, by any party
that is not an expert in maritime finance or operations.''.
(5) Section 1104A(j)(2) is amended by striking ``The
Secretary of Transportation'' and inserting ``The
Administrator''.
(6) Section 1104A(l) is amended by adding at the end ``The
Administrator shall retain in the Maritime Administration
adequate resources with sufficient expertise to perform the
functions prescribed by this title so that no assistance from
the Department of Transportation or any other Federal agency is
required to carry out this title.''.
(7) Section 1104A(m) is amended by striking the last
sentence and inserting ``If the Secretary or Administrator has
waived a requirement under section 1104A(d), the loan agreement
shall include requirements for additional payments, collateral,
or equity contributions to meet such waived requirement upon
the occurrence of verifiable conditions indicating that the
obligor's financial condition enables the obligor to meet the
waived requirement.''.
(8) Section 1104A(n)(1) is amended by striking ``The
Secretary of Transportation'' and inserting ``The
Administrator''.
(9) Section 1111 is amended--
(A) by striking ``SECRETARY OF TRANSPORTATION'' in
the section heading and inserting ``ADMINISTRATOR'';
(B) by striking ``Secretary of Transportation''
each place it appears and inserting ``Administrator'';
(c) Conforming Changes in Other Statutes.--
(1) Section 401(a) of the Ocean Shipping Reform Act of 1998
(46 U.S.C. App. 1273a(a)) is amended by striking ``Secretary of
Transportation'' and inserting ``Administrator of the Maritime
Administration''.
(2) Section 101 of Public Law 85-469 (46 U.S.C. 1280) is
amended by inserting ``or the Administrator of the Maritime
Administration'' after ``Secretary''.
(3) Section 3527 of the Maritime Security Act of 2003 (46
U.S.C. App. 1280b) is amended by striking ``Secretary of
Transportation'' and inserting ``the Administrator of the
Maritime Administration''.
(4) Section 3528 of the Maritime Security Act of 2003 (46
U.S.C. App. 1271 note) is repealed.
Calendar No. 295
109th CONGRESS
1st Session
S. 2029
[Report No. 109-183]
_______________________________________________________________________
A BILL
To amend and enhance certain maritime programs of the Department of
Transportation, and for other purposes.
_______________________________________________________________________
November 17, 2005
Read twice and placed on the calendarD23/