A BILL
"To authorize appropriations for Fiscal Years 2000 and 2001
for 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.
This Act may be cited as the "Maritime Administration
Authorization Act for Fiscal Years 2000 and 2001".
SECTION 2. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS
2000 AND 2001.
Funds are hereby authorized to be appropriated, as
Appropriations Acts may provide, for the use of the
Department of Transportation for the Maritime Administration
as follows:
(a) For expenses necessary for operations and training
activities, not to exceed $72,164,000 for the fiscal year
ending September 30, 2000.
(b) For the costs, as defined in section 502 of the Federal
Credit Reform Act of 1990, of guaranteed loans authorized by
Title XI of the Merchant Marine Act, 1936, as amended (46 App.
U.S.C. 1271 et seq.), $6,000,000, to be available until expended.
In addition, for administrative expenses related to loan
guarantee commitments under Title XI of the Merchant Marine Act,
1936, as amended (46 App. U.S.C. 1271 et seq.), $3,893,000.
(c) For the fiscal year ending September 30, 2001, such sums
as may be necessary.
SECTION 3. AMENDMENTS TO TITLE XI OF THE MERCHANT MARINE
ACT, 1936.
(a) Section 1108(a) of the Merchant Marine Act, 1936
(46 App. U.S.C. 1279a(a)) is amended by striking the
language preceding the proviso and inserting in its place
the following:
"(a) Creation. If the proceeds of an obligation
guaranteed under this title are to be used to finance the
construction, reconstruction, or reconditioning of a vessel
or vessels which will serve as security for the guarantee of
the Secretary, the Secretary is authorized to accept and
hold, in escrow under an escrow agreement with the obligor,
proceeds of that obligation (together with such interest as
may be earned thereon and, if required by the Secretary, an
amount equal to six month's interest on the obligation).
The Secretary may not release funds from the escrow until
the Secretary first determines that the obligor has paid its
portion of the actual cost of constructing, reconstructing,
or reconditioning the vessel or vessels and, second,
determines that the funds to be released are needed to pay,
or make reimbursements in connection with payments
previously made to the shipyard or other contractors for
work performed, or to pay for other approved costs, with
respect to the vessel or vessels."
(b) Title XI of the Merchant Marine Act, 1936 is
amended by inserting immediately after Section 1108, the
following new section:
"Sec. 1109. RESERVE FUNDS AND COLLATERAL ACCOUNTS.
"(a) Creation of Funds and Accounts. There is
hereby established in the Treasury a deposit fund into
which the Secretary is authorized to deposit cash
belonging to an obligor so long as the Secretary has a
security interest in such cash. The account shall be
governed by the terms of an agreement, as described
hereunder, to be entered into by the Secretary and an
obligor.
"(b) Terms of Agreement. The Secretary and an
obligor shall enter into a reserve fund or other
collateral account agreement to govern the making of
deposits and withdrawals and the retention, use, and
reinvestment of the cash deposited under subsection (a)
above. The agreement shall contain such terms and
conditions as are further required hereunder and as are
considered by the Secretary to be necessary to protect
fully the interests of the United States.
"(c) Investment. The Secretary is
authorized to invest and reinvest any part of the cash
of a reserve fund or collateral account in obligations
of the United States with such maturities that these
funds and accounts will be available as required for
purposes of the agreement. Cash balances of the
deposit fund in excess of current requirements shall be
maintained in a form of uninvested funds and the
Secretary of the Treasury shall pay interest on these
funds.
"(d) Income. The cash deposited in a reserve
fund or collateral account may not be withdrawn
without the consent of the Secretary. The Secretary
may retain and offset any or all of the cash on deposit
in a reserve fund or collateral account, and any income
realized thereon, as part of the Secretary's recovery
against an obligor that has defaulted on an obligation.
In the absence of a default on an obligation, the
Secretary may pay any income realized on a reserve fund
or collateral account in accordance with the terms of
the agreement."
SECTION 4. AMENDMENTS TO TITLE IX OF THE MERCHANT MARINE
ACT, 1936.
(a) Title IX of the Merchant Marine Act, 1936, as
amended, (46 App. U.S.C. ¤101 et seq.) is amended by adding
immediately after section 902 the following new section to
read as follows:
"Sec. 903. DOCUMENTATION OF CERTAIN DRY CARGO VESSELS.
"The restrictions of section 901(b)(1) of this Act
concerning the building, rebuilding, or documentation of a
vessel in a foreign country shall not apply to dry bulk
vessels and breakbulk vessels over five thousand deadweight
tons and constructed, reconstructed or acquired in a foreign
shipyard within one year of the date of enactment of this
section and prior to enactment of the OECD Shipbuilding
Trade Agreement Act, whichever occurs earlier, and have
transferred to U.S.-flag registry under section 12105 of
title 46, United States Code: Provided that (1) such vessels
shall have non-emergency shipyard repairs, and other
shipyard work necessary to conform the vessel to U.S.-flag
standards, performed in a shipyard of the United States, (2)
such vessels comply with the standards set forth in Section
1137 of the Coast Guard Authorization Act of 1996 (46 App.
U.S.C. 1187 note), (3) such vessels shall not be granted
approval under section 9(e) of the Shipping Act, 1916, as
amended on October 19, 1996, and (4) the provisions of
section 607 of this Act shall not apply to vessels
constructed, reconstructed, modified or acquired pursuant to
this section:"
(b) Section 901b(c)(2) of the Merchant Marine
Act, 1936, as amended (46 U.S.C App. 1241f(c)(2)) is amended
by striking "1986." and inserting "1986, the 18-month period
commencing April 1, 1999, and the 12-month period beginning
on the first day of October in the year 2000 and each year
thereafter."
SECTION 5. EXTENSION OF WAR RISK INSURANCE AUTHORITY.
Section 1214 of the Merchant Marine Act, 1936, as
amended (46 App. U.S. C. 1294) is amended by striking "June
30, 2000" and inserting "June 30, 2005".
SECTION 6. TRANSPORTATION REPORT ON MARITIME ACTIVITIES.
Section 208 of the Merchant Marine Act, 1936, as
amended (46 App. U.S.C. 1118) is amended by--
(1) striking "and the Secretary of Transportation
shall," and
(2) inserting before the word "make" the words
"and the Secretary of Transportation by April 1 of each odd-
numbered year, shall".
SECTION 7. OWNERSHIP OF THE JEREMIAH O'BRIEN.
Section 3302 of Title 46, United States Code, is
amended by striking "owned by the United States Maritime
Administration" and inserting in lieu thereof "owned by the
National Liberty Ship Memorial, Inc.".