(Source: "Maritime Transportation Security Act of 2002," Government Printing Office, 5 November 2013) [107th Congress Public Law 295] [From the U.S. Government Printing Office] <DOC> [DOCID: f:publ295.107] [[Page 2063]] MARITIME TRANSPORTATION SECURITY ACT OF 2002 [[Page 116 STAT. 2064]] Public Law 107-295 107th Congress An Act To amend the Merchant Marine Act, 1936, to establish a program to ensure greater security for United States seaports, and for other purposes. <<NOTE: Nov. 25, 2002 - [S. 1214]>> Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, <<NOTE: Maritime Transportation Security Act of 2002.>> SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) <<NOTE: 46 USC 2101 note.>> Short Title.--This Act may be cited as the ``Maritime Transportation Security Act of 2002''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--MARITIME TRANSPORTATION SECURITY Sec. 101. Findings. Sec. 102. Port security. Sec. 103. International seafarer identification. Sec. 104. Extension of seaward jurisdiction. Sec. 105. Suspension of limitation on strength of Coast Guard. Sec. 106. Extension of Deepwater Port Act to natural gas. Sec. 107. Assignment of Coast Guard personnel as sea marshals and enhanced use of other security personnel. Sec. 108. Technical amendments concerning the transmittal of certain information to the Customs Service. Sec. 109. Maritime security professional training. Sec. 110. Additional reports. Sec. 111. Performance standards. Sec. 112. Report on foreign-flag vessels. Sec. 113. Revision of Port Security Planning Guide. TITLE II--MARITIME POLICY IMPROVEMENT Sec. 201. Short title. Sec. 202. Vessel COASTAL VENTURE. Sec. 203. Expansion of American Merchant Marine Memorial Wall of Honor. Sec. 204. Discharge of agricultural cargo residue. Sec. 205. Recording and discharging notices of claim of maritime lien. Sec. 206. Tonnage of R/V DAVIDSON. Sec. 207. Miscellaneous certificates of documentation. Sec. 208. Exemption for Victory Ships. Sec. 209. Certificate of documentation for 3 barges. Sec. 210. Certificate of documentation for the EAGLE. Sec. 211. Waiver for vessels in New World Challenge Race. Sec. 212. Vessel ASPHALT COMMANDER. Sec. 213. Coastwise trade authorization. Sec. 214. Jones Act waiver for delayed vessel delivery. Sec. 215. Realignment of policy responsibility in the Department of Transportation. TITLE III--COAST GUARD PERSONNEL AND MARITIME SAFETY Sec. 301. Short title. Subtitle A--Personnel Management Sec. 311. Coast Guard band director rank. [[Page 116 STAT. 2065]] Sec. 312. Compensatory absence for isolated duty. Sec. 313. Accelerated promotion of certain Coast Guard officers. Subtitle B--Marine Safety Sec. 321. Extension of Territorial Sea for Vessel Bridge-to-Bridge Radiotelephone Act. Sec. 322. Modification of various reporting requirements. Sec. 323. Oil Spill Liability Trust Fund; emergency fund advancement authority. Sec. 324. Merchant mariner documentation requirements. Sec. 325. Penalties for negligent operations and interfering with safe operation. Subtitle C--Renewal of Advisory Groups Sec. 331. Commercial Fishing Industry Vessel Advisory Committee. Sec. 332. Houston-Galveston Navigation Safety Advisory Committee. Sec. 333. Lower Mississippi River Waterway Advisory Committee. Sec. 334. Navigation Safety Advisory Council. Sec. 335. National Boating Safety Advisory Council. Sec. 336. Towing Safety Advisory Committee. Subtitle D--Miscellaneous Sec. 341. Patrol craft. Sec. 342. Boating safety. Sec. 343. Caribbean support tender. Sec. 344. Prohibition of new maritime user fees. Sec. 345. Great Lakes lighthouses. Sec. 346. Modernization of National Distress and Response System. Sec. 347. Conveyance of Coast Guard property in Portland, Maine. Sec. 348. Additional Coast Guard funding needs after September 11, 2001. Sec. 349. Miscellaneous conveyances. TITLE IV--OMNIBUS MARITIME IMPROVEMENTS Sec. 401. Short title. Sec. 402. Extension of Coast Guard housing authorities. Sec. 403. Inventory of vessels for cable laying, maintenance, and repair. Sec. 404. Vessel escort operations and towing assistance. Sec. 405. Search and rescue center standards. Sec. 406. VHF communications services. Sec. 407. Lower Columbia River maritime fire and safety activities. Sec. 408. Conforming references to the former Merchant Marine and Fisheries Committee. Sec. 409. Restriction on vessel documentation. Sec. 410. Hypothermia protective clothing requirement. Sec. 411. Reserve officer promotions. Sec. 412. Regular lieutenant commanders and commanders; continuation upon failure of selection for promotion. Sec. 413. Reserve student pre-commissioning assistance program. Sec. 414. Continuation on active duty beyond thirty years. Sec. 415. Payment of death gratuities on behalf of Coast Guard auxiliarists. Sec. 416. Align Coast Guard severance pay and revocation of commission authority with Department of Defense authority. Sec. 417. Long-term lease authority for lighthouse property. Sec. 418. Maritime Drug Law Enforcement Act amendments. Sec. 419. Wing-in-ground craft. Sec. 420. Electronic filing of commercial instruments for vessels. Sec. 421. Deletion of thumbprint requirement for merchant mariners' documents. Sec. 422. Temporary certificates of documentation for recreational vessels. Sec. 423. Marine casualty investigations involving foreign vessels. Sec. 424. Conveyance of Coast Guard property in Hampton Township, Michigan. Sec. 425. Conveyance of property in Traverse City, Michigan. Sec. 426. Annual report on Coast Guard capabilities and readiness to fulfill national defense responsibilities. Sec. 427. Extension of authorization for oil spill recovery institute. Sec. 428. Protection against discrimination. Sec. 429. Icebreaking services. Sec. 430. Fishing vessel safety training. Sec. 431. Limitation on liability of pilots at Coast Guard Vessel Traffic Services. Sec. 432. Assistance for marine safety station on Chicago lakefront. Sec. 433. Extension of time for recreational vessel and associated equipment recalls. Sec. 434. Repair of municipal dock, Escanaba, Michigan. Sec. 435. Vessel GLOBAL EXPLORER. [[Page 116 STAT. 2066]] Sec. 436. Aleutian trade. Sec. 437. Pictured Rocks National Lakeshore boundary revision. Sec. 438. Loran-C. Sec. 439. Authorization of payment. Sec. 440. Report on oil spill responder immunity. Sec. 441. Fishing agreements. Sec. 442. Electronic publishing of marine casualty reports. Sec. 443. Safety and security of ports and waterways. Sec. 444. Suspension of payment. Sec. 445. Prohibition on navigation fees. TITLE V--AUTHORIZATION OF APPROPRIATIONS FOR THE COAST GUARD Sec. 501. Short title. Sec. 502. Authorization of appropriations. Sec. 503. Authorized levels of military strength and training. TITLE I--MARITIME TRANSPORTATION SECURITY SEC. 101. FINDINGS. <<NOTE: 46 USC 70101 note.>> The Congress makes the following findings: (1) There are 361 public ports in the United States that are an integral part of our Nation's commerce. (2) United States ports handle over 95 percent of United States overseas trade. The total volume of goods imported and exported through ports is expected to more than double over the next 20 years. (3) The variety of trade and commerce carried out at ports includes bulk cargo, containerized cargo, passenger transport and tourism, and intermodal transportation systems that are complex to secure. (4) The United States is increasingly dependent on imported energy for a substantial share of its energy supply, and a disruption of that share of supply would seriously harm consumers and our economy. (5) The top 50 ports in the United States account for about 90 percent of all the cargo tonnage. Twenty-five United States ports account for 98 percent of all container shipments. Cruise ships visiting foreign destinations embark from at least 16 ports. Ferries in the United States transport 113,000,000 passengers and 32,000,000 vehicles per year. (6) Ports often are a major locus of Federal crime, including drug trafficking, cargo theft, and smuggling of contraband and aliens. (7) Ports are often very open and exposed and are susceptible to large scale acts of terrorism that could cause a large loss of life or economic disruption. (8) Current inspection levels of containerized cargo are insufficient to counter potential security risks. Technology is currently not adequately deployed to allow for the nonintrusive inspection of containerized cargo. (9) The cruise ship industry poses a special risk from a security perspective. (10) Securing entry points and other areas of port facilities and examining or inspecting containers would increase security at United States ports. (11) Biometric identification procedures for individuals having access to secure areas in port facilities are important [[Page 116 STAT. 2067]] tools to deter and prevent port cargo crimes, smuggling, and terrorist actions. (12) United States ports are international boundaries that-- (A) are particularly vulnerable to breaches in security; (B) may present weaknesses in the ability of the United States to realize its national security objectives; and (C) may serve as a vector or target for terrorist attacks aimed at the United States. (13) It is in the best interests of the United States-- (A) to have a free flow of interstate and foreign commerce and to ensure the efficient movement of cargo; (B) to increase United States port security by establishing improving communication among law enforcement officials responsible for port security; (C) to formulate requirements for physical port security, recognizing the different character and nature of United States port facilities, and to require the establishment of security programs at port facilities; (D) to provide financial assistance to help the States and the private sector to increase physical security of United States ports; (E) to invest in long-term technology to facilitate the private sector development of technology that will assist in the nonintrusive timely detection of crime or potential crime at United States ports; (F) to increase intelligence collection on cargo and intermodal movements to address areas of potential threat to safety and security; and (G) to promote private sector procedures that provide for in-transit visibility and support law enforcement efforts directed at managing the security risks of cargo shipments. (14) On April 27, 1999, the President established the Interagency Commission on Crime and Security in United States Ports to undertake a comprehensive study of the nature and extent of the problem of crime in our ports, as well as the ways in which governments at all levels are responding. The Commission concluded that frequent crimes in ports include drug smuggling, illegal car exports, fraud, and cargo theft. Internal conspiracies are an issue at many ports and contribute to Federal crime. Criminal organizations are exploiting weak security at ports to commit a wide range of cargo crimes. Intelligence and information sharing among law enforcement agencies needs to be improved and coordinated at many ports. A lack of minimum physical and personnel security standards at ports and related facilities leaves many ports and port users very vulnerable. Access to ports and operations within ports is often uncontrolled. Security-related and detection-related equipment, such as small boats, cameras, large-scale x-ray machines, and vessel tracking devices, are lacking at many ports. (15) The International Maritime Organization and other similar international organizations are currently developing a new maritime security system that contains the essential elements for enhancing global maritime security. Therefore, it is in the best interests of the United States to implement new international instruments that establish such a system. [[Page 116 STAT. 2068]] SEC. 102. PORT SECURITY. (a) In General.--Title 46, United States Code, is amended by adding at the end the following new subtitle: ``Subtitle VI--Miscellaneous ``Chap. Sec. ``701. Port Security 70101 ``CHAPTER 701--PORT SECURITY ``Sec. ``70101. Definitions. ``70102. United States facility and vessel vulnerability assessments. ``70103. Maritime transportation security plans. ``70104. Transportation security incident response. ``70105. Transportation security cards. ``70106. Maritime safety and security teams. ``70107. Grants. ``70108. Foreign port assessment. ``70109. Notifying foreign authorities. ``70110. Actions when foreign ports not maintaining effective antiterrorism measures. ``70111. Enhanced crewmember identification. ``70112. Maritime security advisory committees. ``70113. Maritime intelligence. ``70114. Automatic identification systems. ``70115. Long-range vessel tracking system. ``70116. Secure systems of transportation. ``70117. Civil penalty. ``Sec. 70101. Definitions ``For the purpose of this chapter: ``(1) The term `Area Maritime Transportation Security Plan' means an Area Maritime Transportation Security Plan prepared under section 70103(b). ``(2) The term `facility' means any structure or facility of any kind located in, on, under, or adjacent to any waters subject to the jurisdiction of the United States. ``(3) The term `National Maritime Transportation Security Plan' means the National Maritime Transportation Security Plan prepared and published under section 70103(a). ``(4) The term `owner or operator' means-- ``(A) in the case of a vessel, any person owning, operating, or chartering by demise, such vessel; and ``(B) in the case of a facility, any person owning, leasing, or operating such facility. ``(5) The term `Secretary' means the Secretary of the department in which the Coast Guard is operating. ``(6) The term `transportation security incident' means a security incident resulting in a significant loss of life, environmental damage, transportation system disruption, or economic disruption in a particular area. ``Sec. 70102. United States facility and vessel vulnerability assessments ``(a) Initial Assessments.--The Secretary shall conduct an assessment of vessel types and United States facilities on or adjacent to the waters subject to the jurisdiction of the United States to identify those vessel types and United States facilities that pose a high risk of being involved in a transportation security incident. ``(b) Facility and Vessel Assessments.--(1) Based on the information gathered under subsection (a) of this section, the Secretary shall conduct a detailed vulnerability assessment of the [[Page 116 STAT. 2069]] facilities and vessels that may be involved in a transportation security incident. The vulnerability assessment shall include the following: ``(A) Identification and evaluation of critical assets and infrastructures. ``(B) Identification of the threats to those assets and infrastructures. ``(C) Identification of weaknesses in physical security, passenger and cargo security, structural integrity, protection systems, procedural policies, communications systems, transportation infrastructure, utilities, contingency response, and other areas as determined by the Secretary. ``(2) Upon completion of an assessment under this subsection for a facility or vessel, the Secretary shall provide the owner or operator with a copy of the vulnerability assessment for that facility or vessel. ``(3) The Secretary shall update each vulnerability assessment conducted under this section at least every 5 years. ``(4) In lieu of conducting a facility or vessel vulnerability assessment under paragraph (1), the Secretary may accept an alternative assessment conducted by or on behalf of the owner or operator of the facility or vessel if the Secretary determines that the alternative assessment includes the matters required under paragraph (1). ``Sec. 70103. Maritime transportation security plans ``(a) National Maritime Transportation Security Plan.--(1) The Secretary shall prepare a National Maritime Transportation Security Plan for deterring and responding to a transportation security incident. ``(2) The National Maritime Transportation Security Plan shall provide for efficient, coordinated, and effective action to deter and minimize damage from a transportation security incident, and shall include the following: ``(A) Assignment of duties and responsibilities among Federal departments and agencies and coordination with State and local governmental agencies. ``(B) Identification of security resources. ``(C) Procedures and techniques to be employed in deterring a national transportation security incident. ``(D) Establishment of procedures for the coordination of activities of-- ``(i) Coast Guard maritime security teams established under this chapter; and ``(ii) Federal Maritime Security Coordinators required under this chapter. ``(E) A system of surveillance and notice designed to safeguard against as well as ensure earliest possible notice of a transportation security incident and imminent threats of such a security incident to the appropriate State and Federal agencies. ``(F) Establishment of criteria and procedures to ensure immediate and effective Federal identification of a transportation security incident, or the substantial threat of such a security incident. ``(G) Designation of-- [[Page 116 STAT. 2070]] ``(i) areas for which Area Maritime Transportation Security Plans are required to be prepared under subsection (b); and ``(ii) a Coast Guard official who shall be the Federal Maritime Security Coordinator for each such area. ``(H) A risk-based system for evaluating the potential for violations of security zones designated by the Secretary on the waters subject to the jurisdiction of the United States. ``(I) A recognition of certified systems of intermodal transportation. ``(J) A plan for ensuring that the flow of cargo through United States ports is reestablished as efficiently and quickly as possible after a transportation security incident. ``(3) The Secretary shall, as the Secretary considers advisable, revise or otherwise amend the National Maritime Transportation Security Plan. ``(4) Actions by Federal agencies to deter and minimize damage from a transportation security incident shall, to the greatest extent possible, be in accordance with the National Maritime Transportation Security Plan. ``(5) The Secretary shall inform vessel and facility owners or operators of the provisions in the National Transportation Security Plan that the Secretary considers necessary for security purposes. ``(b) Area Maritime Transportation Security Plans.--(1) The Federal Maritime Security Coordinator designated under subsection (a)(2)(G) for an area shall-- ``(A) submit to the Secretary an Area Maritime Transportation Security Plan for the area; and ``(B) solicit advice from the Area Security Advisory Committee required under this chapter, for the area to assure preplanning of joint deterrence efforts, including appropriate procedures for deterrence of a transportation security incident. ``(2) The Area Maritime Transportation Security Plan for an area shall-- ``(A) when implemented in conjunction with the National Maritime Transportation Security Plan, be adequate to deter a transportation security incident in or near the area to the maximum extent practicable; ``(B) describe the area and infrastructure covered by the plan, including the areas of population or special economic, environmental, or national security importance that might be damaged by a transportation security incident; ``(C) describe in detail how the plan is integrated with other Area Maritime Transportation Security Plans, and with facility security plans and vessel security plans under this section; ``(D) include consultation and coordination with the Department of Defense on matters relating to Department of Defense facilities and vessels; ``(E) include any other information the Secretary requires; and ``(F) be updated at least every 5 years by the Federal Maritime Security Coordinator. ``(3) The Secretary shall-- ``(A) review and approve Area Maritime Transportation Security Plans under this subsection; and [[Page 116 STAT. 2071]] ``(B) periodically review previously approved Area Maritime Transportation Security Plans. ``(4) In security zones designated by the Secretary in each Area Maritime Transportation Security Plan, the Secretary shall consider-- ``(A) the use of public/private partnerships to enforce security within the security zones, shoreside protection alternatives, and the environmental, public safety, and relative effectiveness of such alternatives; and ``(B) technological means of enhancing the security zones of port, territorial waters, and waterways of the United States. ``(c) Vessel and Facility Security Plans.--(1) Within 6 months after the prescription of interim final regulations on vessel and facility security plans, an owner or operator of a vessel or facility described in paragraph (2) shall prepare and submit to the Secretary a security plan for the vessel or facility, for deterring a transportation security incident to the maximum extent practicable. ``(2) The vessels and facilities referred to in paragraph (1)-- ``(A) except as provided in subparagraph (B), are vessels and facilities that the Secretary believes may be involved in a transportation security incident; and ``(B) do not include any vessel or facility owned or operated by the Department of Defense. ``(3) A security plan required under this subsection shall-- ``(A) be consistent with the requirements of the National Maritime Transportation Security Plan and Area Maritime Transportation Security Plans; ``(B) identify the qualified individual having full authority to implement security actions, and require immediate communications between that individual and the appropriate Federal official and the persons providing personnel and equipment pursuant to subparagraph (C); ``(C) include provisions for-- ``(i) establishing and maintaining physical security, passenger and cargo security, and personnel security; ``(ii) establishing and controlling access to secure areas of the vessel or facility; ``(iii) procedural security policies; ``(iv) communications systems; and ``(v) other security systems; ``(D) identify, and ensure by contract or other means approved by the Secretary, the availability of security measures necessary to deter to the maximum extent practicable a transportation security incident or a substantial threat of such a security incident; ``(E) describe the training, periodic unannounced drills, and security actions of persons on the vessel or at the facility, to be carried out under the plan to deter to the maximum extent practicable a transportation security incident, or a substantial threat of such a security incident; ``(F) be updated at least every 5 years; and ``(G) be resubmitted for approval of each change to the vessel or facility that may substantially affect the security of the vessel or facility. ``(4) The Secretary shall-- ``(A) promptly review each such plan; [[Page 116 STAT. 2072]] ``(B) require amendments to any plan that does not meet the requirements of this subsection; ``(C) approve any plan that meets the requirements of this subsection; and ``(D) review each plan periodically thereafter. ``(5) A vessel or facility for which a plan is required to be submitted under this subsection may not operate after the end of the 12- month period beginning on the date of the prescription of interim final regulations on vessel and facility security plans, unless-- ``(A) the plan has been approved by the Secretary; and ``(B) the vessel or facility is operating in compliance with the plan. ``(6) Notwithstanding paragraph (5), the Secretary may authorize a vessel or facility to operate without a security plan approved under this subsection, until not later than 1 year after the date of the submission to the Secretary of a plan for the vessel or facility, if the owner or operator of the vessel or facility certifies that the owner or operator has ensured by contract or other means approved by the Secretary to deter to the maximum extent practicable a transportation security incident or a substantial threat of such a security incident. ``(7) The Secretary shall require each owner or operator of a vessel or facility located within or adjacent to waters subject to the jurisdiction of the United States to implement any necessary interim security measures, including cargo security programs, to deter to the maximum extent practicable a transportation security incident until the security plan for that vessel or facility operator is approved. ``(d) Nondisclosure of Information.--Notwithstanding any other provision of law, information developed under this chapter is not required to be disclosed to the public, including-- ``(1) facility security plans, vessel security plans, and port vulnerability assessments; and ``(2) other information related to security plans, procedures, or programs for vessels or facilities authorized under this chapter. ``Sec. 70104. Transportation security incident response ``(a) Facility and Vessel Response Plans.--The Secretary shall-- ``(1) establish security incident response plans for vessels and facilities that may be involved in a transportation security incident; and ``(2) make those plans available to the Director of the Federal Emergency Management Agency for inclusion in the Director's response plan for United States ports and waterways. ``(b) Contents.--Response plans developed under subsection (a) shall provide a comprehensive response to an emergency, including notifying and coordinating with local, State, and Federal authorities, including the Director of the Federal Emergency Management Agency, securing the facility or vessel, and evacuating facility and vessel personnel. ``(c) Inclusion in Security Plan.--A response plan required under this subsection for a vessel or facility may be included in the security plan prepared under section 70103(c). [[Page 116 STAT. 2073]] ``Sec. 70105. Transportation security cards ``(a) Prohibition.-- <<NOTE: Regulations.>> (1) The Secretary shall prescribe regulations to prevent an individual from entering an area of a vessel or facility that is designated as a secure area by the Secretary for purposes of a security plan for the vessel or facility that is approved by the Secretary under section 70103 of this title unless the individual-- ``(A) holds a transportation security card issued under this section and is authorized to be in the area in accordance with the plan; or ``(B) is accompanied by another individual who holds a transportation security card issued under this section and is authorized to be in the area in accordance with the plan. ``(2) A person shall not admit an individual into such a secure area unless the entry of the individual into the area is in compliance with paragraph (1). ``(b) Issuance of Cards.--(1) The Secretary shall issue a biometric transportation security card to an individual specified in paragraph (2), unless the Secretary decides that the individual poses a security risk under subsection (c) warranting denial of the card. ``(2) This subsection applies to-- ``(A) an individual allowed unescorted access to a secure area designated in a vessel or facility security plan approved under section 70103 of this title; ``(B) an individual issued a license, certificate of registry, or merchant mariners document under part E of subtitle II of this title; ``(C) a vessel pilot; ``(D) an individual engaged on a towing vessel that pushes, pulls, or hauls alongside a tank vessel; ``(E) an individual with access to security sensitive information as determined by the Secretary; and ``(F) other individuals engaged in port security activities as determined by the Secretary. ``(c) Determination of Terrorism Security Risk.--(1) An individual may not be denied a transportation security card under subsection (b) unless the Secretary determines that individual-- ``(A) has been convicted within the preceding 7-year period of a felony or found not guilty by reason of insanity of a felony-- ``(i) that the Secretary believes could cause the individual to be a terrorism security risk to the United States; or ``(ii) for causing a severe transportation security incident; ``(B) has been released from incarceration within the preceding 5-year period for committing a felony described in subparagraph (A); ``(C) may be denied admission to the United States or removed from the United States under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); or ``(D) otherwise poses a terrorism security risk to the United States. ``(2) <<NOTE: Regulations.>> The Secretary shall prescribe regulations that establish a waiver process for issuing a transportation security card to an individual found to be otherwise ineligible for such a card under [[Page 116 STAT. 2074]] paragraph (1). In deciding to issue a card to such an individual, the Secretary shall-- ``(A) give consideration to the circumstances of any disqualifying act or offense, restitution made by the individual, Federal and State mitigation remedies, and other factors from which it may be concluded that the individual does not pose a terrorism risk warranting denial of the card; and ``(B) issue a waiver to an individual without regard to whether that individual would otherwise be disqualified if the individual's employer establishes alternate security arrangements acceptable to the Secretary. ``(3) The Secretary shall establish an appeals process under this section for individuals found to be ineligible for a transportation security card that includes notice and an opportunity for a hearing. ``(4) Upon application, the Secretary may issue a transportation security card to an individual if the Secretary has previously determined, under section 5103a of title 49, that the individual does not pose a security risk. ``(d) Background Records Check.--(1) On request of the Secretary, the Attorney General shall-- ``(A) conduct a background records check regarding the individual; and ``(B) upon completing the background records check, notify the Secretary of the completion and results of the background records check. ``(2) A background records check regarding an individual under this subsection shall consist of the following: ``(A) A check of the relevant criminal history databases. ``(B) In the case of an alien, a check of the relevant databases to determine the status of the alien under the immigration laws of the United States. ``(C) As appropriate, a check of the relevant international databases or other appropriate means. ``(D) Review of any other national security-related information or database identified by the Attorney General for purposes of such a background records check. ``(e) Restrictions on Use and Maintenance of Information.--(1) Information obtained by the Attorney General or the Secretary under this section may not be made available to the public, including the individual's employer. ``(2) Any information constituting grounds for denial of a transportation security card under this section shall be maintained confidentially by the Secretary and may be used only for making determinations under this section. The Secretary may share any such information with other Federal law enforcement agencies. An individual's employer may only be informed of whether or not the individual has been issued the card under this section. ``(f) Definition.--In this section, the term `alien' has the meaning given the term in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3)).''. ``Sec. 70106. Maritime safety and security teams ``(a) In General.--To enhance the domestic maritime security capability of the United States, the Secretary shall establish such maritime safety and security teams as are needed to safeguard the public and protect vessels, harbors, ports, facilities, and cargo in waters subject to the jurisdiction of the United States from [[Page 116 STAT. 2075]] destruction, loss or injury from crime, or sabotage due to terrorist activity, and to respond to such activity in accordance with the transportation security plans developed under section 70103. ``(b) Mission.--Each maritime safety and security team shall be trained, equipped, and capable of being employed to-- ``(1) deter, protect against, and rapidly respond to threats of maritime terrorism; ``(2) enforce moving or fixed safety or security zones established pursuant to law; ``(3) conduct high speed intercepts; ``(4) board, search, and seize any article or thing on or at, respectively, a vessel or facility found to present a risk to the vessel or facility, or to a port; ``(5) rapidly deploy to supplement United States armed forces domestically or overseas; ``(6) respond to criminal or terrorist acts within a port so as to minimize, insofar as possible, the disruption caused by such acts; ``(7) assist with facility vulnerability assessments required under this chapter; and ``(8) carry out other security missions as are assigned to it by the Secretary. ``(c) Coordination With Other Agencies.--To the maximum extent feasible, each maritime safety and security team shall coordinate its activities with other Federal, State, and local law enforcement and emergency response agencies. ``Sec. 70107. Grants ``(a) In General.--The Secretary of Transportation, acting through the Maritime Administrator, shall establish a grant program for making a fair and equitable allocation among port authorities, facility operators, and State and local agencies required to provide security services of funds to implement Area Maritime Transportation Security Plans and facility security plans. The program shall take into account national economic and strategic defense considerations. ``(b) Eligible Costs.--The following costs of funding the correction of Coast Guard identified vulnerabilities in port security and ensuring compliance with Area Maritime Transportation Security Plans and facility security plans are eligible to be funded: ``(1) Salary, benefits, overtime compensation, retirement contributions, and other costs of additional Coast Guard mandated security personnel. ``(2) The cost of acquisition, operation, and maintenance of security equipment or facilities to be used for security monitoring and recording, security gates and fencing, marine barriers for designated security zones, security-related lighting systems, remote surveillance, concealed video systems, security vessels, and other security-related infrastructure or equipment that contributes to the overall security of passengers, cargo, or crewmembers. ``(3) The cost of screening equipment, including equipment that detects weapons of mass destruction and conventional explosives, and of testing and evaluating such equipment, to certify secure systems of transportation. ``(4) The cost of conducting vulnerability assessments to evaluate and make recommendations with respect to security. [[Page 116 STAT. 2076]] ``(c) Matching Requirements.-- ``(1) 75-percent 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.--There are no matching requirements for grants under subsection (a) for projects costing not more than $25,000. ``(B) Higher level of support required.--If the Secretary of Transportation determines that a proposed project merits support and cannot be undertaken without a higher rate of Federal support, then the Secretary may approve grants under this section with a matching requirement other than that specified in paragraph (1). ``(d) Coordination and Cooperation Agreements.--The Secretary of Transportation shall ensure that projects paid for, or the costs of which are reimbursed, under this section within any area or port are coordinated with other projects, and may require cooperative agreements among users of the port and port facilities with respect to projects funded under this section. ``(e) Administration.-- ``(1) In general.--The program shall require eligible port authorities, facility operators, and State and local agencies required to provide security services, to submit an application, at such time, in such form, and containing such information and assurances as the Secretary of Transportation may require, and shall include appropriate application, review, and delivery mechanisms. ``(2) Minimum standards for payment or reimbursement.--Each application for payment or reimbursement of eligible costs shall include, at a minimum, the following: ``(A) A copy of the applicable Area Maritime Transportation Security Plan or facility security plan. ``(B) A comprehensive description of the need for the project, and a statement of the project's relationship to the applicable Area Maritime Transportation Security Plan or facility security plan. ``(C) A determination by the Captain of the Port that the security project addresses or corrects Coast Guard identified vulnerabilities in security and ensures compliance with Area Maritime Transportation Security Plans and facility security plans. ``(3) Procedural safeguards.-- <<NOTE: Regulations.>> The Secretary of Transportation shall by regulation establish appropriate accounting, reporting, and review procedures to ensure that amounts paid or reimbursed under this section are used for the purposes for which they were made available, all expenditures are properly accounted for, and amounts not used for such purposes and amounts not obligated or expended are recovered. ``(4) Project approval required.--The Secretary of Transportation may approve an application for the payment or reimbursement of costs under this section only if the Secretary of Transportation is satisfied that-- ``(A) the project is consistent with Coast Guard vulnerability assessments and ensures compliance with Area [[Page 116 STAT. 2077]] Maritime Transportation Security Plans and facility security plans; ``(B) enough money is available to pay the project costs that will not be reimbursed by the United States Government under this section; ``(C) the project will be completed without unreasonable delay; and ``(D) the recipient has authority to carry out the project as proposed. ``(f) Audits and Examinations.--A recipient of amounts made available under this section shall keep such records as the Secretary of Transportation may require, and make them available for review and audit by the Secretary of Transportation, the Comptroller General of the United States, or the Inspector General of the Department of Transportation. ``(g) Reports on Security Funding and Compliance.-- ``(1) Initial report.--Within 6 months after the date of enactment of this Act, the Secretary of Transportation shall transmit an unclassified report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure, that-- ``(A) includes a funding proposal and rationale to fund the correction of Coast Guard identified vulnerabilities in port security and to help ensure compliance with Area Maritime Transportation Security Plans and facility security plans for fiscal years 2003 through 2008; and ``(B) includes projected funding proposals for fiscal years 2003 through 2008 for the following security programs: ``(i) The Sea Marshall program. ``(ii) The Automated Identification System and a system of polling vessels on entry into United States waters. ``(iii) The maritime intelligence requirements in this Act. ``(iv) The issuance of transportation security cards required by section 70105. ``(v) The program of certifying secure systems of transportation. ``(2) Other expenditures.--The Secretary of Transportation shall, as part of the report required by paragraph (1) report, in coordination with the Commissioner of Customs, on projected expenditures of screening and detection equipment and on cargo security programs over fiscal years 2003 through 2008. ``(3) Annual reports.--Annually, beginning 1 year after transmittal of the report required by paragraph (1) until October 1, 2009, the Secretary of Transportation shall transmit an unclassified annual report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure, on progress in achieving compliance with the correction of Coast Guard identified vulnerabilities in port security and compliance with Area Maritime Transportation Security Plans and facility security plans that-- [[Page 116 STAT. 2078]] ``(A) identifies any modifications necessary in funding to ensure the correction of Coast Guard identified vulnerabilities and ensure compliance with Area Maritime Transportation Security Plans and facility security plans; ``(B) includes an assessment of progress in implementing the grant program established by subsection (a); ``(C) includes any recommendations the Secretary may make to improve these programs; and ``(D) with respect to a port selected by the Secretary of Transportation, describes progress and enhancements of applicable Area Maritime Transportation Security Plans and facility security plans and how the Maritime Transportation Security Act of 2002 has improved security at that port. ``(h) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary of Transportation for each of fiscal years 2003 through 2008 such sums as are necessary to carry out subsections (a) through (g). ``(i) Research and Development Grants for Port Security.-- ``(1) Authority.--The Secretary of Transportation is authorized to establish and administer a grant program for the support of research and development of technologies that can be used to secure the ports of the United States. The Secretary may award grants under the program to national laboratories, private nonprofit organizations, institutions of higher education, and other entities. The Secretary shall establish competitive procedures for awarding grants under the program and criteria for grant applications and eligibility. ``(2) Use of funds.--Grants awarded pursuant to paragraph (1) shall be used to develop-- ``(A) methods to increase the ability of the Customs Service to inspect, or target for inspection, merchandise carried on any vessel that will arrive or has arrived at any port or place in the United States; ``(B) equipment to accurately detect explosives, or chemical and biological agents, that could be used to commit terrorist acts against the United States; ``(C) equipment to accurately detect nuclear materials, including scintillation-based detection equipment capable of attachment to spreaders to signal the presence of nuclear materials during the unloading of containers; ``(D) improved tags and seals designed for use on shipping containers to track the transportation of the merchandise in such containers, including `smart sensors' that are able to track a container throughout its entire supply chain, detect hazardous and radioactive materials within that container, and transmit such information to the appropriate authorities at a remote location; ``(E) tools to mitigate the consequences of a terrorist act at a port of the United States, including a network of sensors to predict the dispersion of radiological, chemical, or biological agents that might be intentionally or accidentally released; or ``(F) applications to apply existing technologies from other industries to increase overall port security. ``(3) Administrative provisions.-- [[Page 116 STAT. 2079]] ``(A) No duplication of effort.--Before making any grant, the Secretary of Transportation shall coordinate with other Federal agencies to ensure the grant will not be used for research and development that is already being conducted with Federal funding. ``(B) Accounting.-- <<NOTE: Regulations.>> The Secretary of Transportation shall by regulation establish accounting, reporting, and review procedures to ensure that funds made available under paragraph (1) are used for the purpose for which they were made available, that all expenditures are properly accounted for, and that amounts not used for such purposes and amounts not expended are recovered. ``(C) Recordkeeping.--Recipients of grants shall keep all records related to expenditures and obligations of funds provided under paragraph (1) and make them available upon request to the Inspector General of the Department of Transportation and the Secretary of Transportation for audit and examination. ``(D) Annual review and report.--The Inspector General of the Department of Transportation shall annually review the program established under paragraph (1) to ensure that the expenditures and obligations of funds are consistent with the purposes for which they are provided and report the findings to Congress. ``(4) Authorization of appropriations.--There is authorized to be appropriated $15,000,000 for each of the fiscal years 2003 through 2008 to carry out the provisions of this subsection. ``Sec. 70108. Foreign port assessment ``(a) In General.--The Secretary shall assess the effectiveness of the antiterrorism measures maintained at-- ``(1) a foreign port-- ``(A) served by vessels documented under chapter 121 of this title; or ``(B) from which foreign vessels depart on a voyage to the United States; and ``(2) any other foreign port the Secretary believes poses a security risk to international maritime commerce. ``(b) Procedures.--In conducting an assessment under subsection (a), the Secretary shall assess the effectiveness of-- ``(1) screening of containerized and other cargo and baggage; ``(2) security measures to restrict access to cargo, vessels, and dockside property to authorized personnel only; ``(3) additional security on board vessels; ``(4) licensing or certification of compliance with appropriate security standards; ``(5) the security management program of the foreign port; and ``(6) other appropriate measures to deter terrorism against the United States. ``(c) Consultation.--In carrying out this section, the Secretary shall consult with-- ``(1) the Secretary of Defense and the Secretary of State-- ``(A) on the terrorist threat that exists in each country involved; and [[Page 116 STAT. 2080]] ``(B) to identify foreign ports that pose a high risk of introducing terrorism to international maritime commerce; ``(2) the Secretary of the Treasury; ``(3) appropriate authorities of foreign governments; and ``(4) operators of vessels. ``Sec. 70109. Notifying foreign authorities ``(a) In General.--If the Secretary, after conducting an assessment under section 70108, finds that a port in a foreign country does not maintain effective antiterrorism measures, the Secretary shall notify the appropriate authorities of the government of the foreign country of the finding and recommend the steps necessary to improve the antiterrorism measures in use at the port. ``(b) Training Program.--The Secretary, in cooperation with the Secretary of State, shall operate a port security training program for ports in foreign countries that are found under section 70108 to lack effective antiterrorism measures. ``Sec. 70110. Actions when foreign ports not maintaining effective antiterrorism measures ``(a) In General.--If the Secretary finds that a foreign port does not maintain effective antiterrorism measures, the Secretary-- ``(1) may prescribe conditions of entry into the United States for any vessel arriving from that port, or any vessel carrying cargo or passengers originating from or transshipped through that port; ``(2) may deny entry into the United States to any vessel that does not meet such conditions; and ``(3) shall provide public notice for passengers of the ineffective antiterrorism measures. ``(b) Effective Date for Sanctions.--Any action taken by the Secretary under subsection (a) for a particular port shall take effect-- ``(1) 90 days after the government of the foreign country with jurisdiction over or control of that port is notified under section 70109 unless the Secretary finds that the government has brought the antiterrorism measures at the port up to the security level the Secretary used in making an assessment under section 70108 before the end of that 90-day period; or ``(2) immediately upon the finding of the Secretary under subsection (a) if the Secretary finds, after consulting with the Secretary of State, that a condition exists that threatens the safety or security of passengers, vessels, or crew traveling to or from the port. ``(c) State Department To Be Notified.--The Secretary immediately shall notify the Secretary of State of a finding that a port does not maintain effective antiterrorism measures. ``(d) Action Canceled.--An action required under this section is no longer required if the Secretary decides that effective antiterrorism measures are maintained at the port. ``Sec. 70111. Enhanced crewmember identification ``(a) Requirement.--The Secretary, in consultation with the Attorney General and the Secretary of State, shall require crewmembers on vessels calling at United States ports to carry and [[Page 116 STAT. 2081]] present on demand any identification that the Secretary decides is necessary. ``(b) Forms and Process.--The Secretary, in consultation with the Attorney General and the Secretary of State, shall establish the proper forms and process that shall be used for identification and verification of crewmembers. ``Sec. 70112. Maritime Security Advisory Committees ``(a) Establishment of Committees.--(1) The Secretary shall establish a National Maritime Security Advisory Committee. The Committee-- ``(A) may advise, consult with, report to, and make recommendations to the Secretary on matters relating to national maritime security matters; ``(B) may make available to the Congress recommendations that the Committee makes to the Secretary; and ``(C) shall meet at the call of-- ``(i) the Secretary, who shall call such a meeting at least once during each calendar year; or ``(ii) a majority of the Committee. ``(2)(A) The Secretary may-- ``(i) establish an Area Maritime Security Advisory Committee for any port area of the United States; and ``(ii) request such a committee to review the proposed Area Maritime Transportation Security Plan developed under section 70103(b) and make recommendations to the Secretary that the Committee considers appropriate. ``(B) A committee established under this paragraph for an area-- ``(i) may advise, consult with, report to, and make recommendations to the Secretary on matters relating to maritime security in that area; ``(ii) may make available to the Congress recommendations that the committee makes to the Secretary; and ``(iii) shall meet at the call of-- ``(I) the Secretary, who shall call such a meeting at least once during each calendar year; or ``(II) a majority of the committee. ``(b) Membership.--(1) Each of the committees established under subsection (a) shall consist of not less than 7 members appointed by the Secretary, each of whom has at least 5 years practical experience in maritime security operations. ``(2) The term of each member shall be for a period of not more than 5 years, specified by the Secretary. ``(3) Before appointing an individual to a position on such a committee, the Secretary shall publish a notice in the Federal Register soliciting nominations for membership on the committee. ``(4) The Secretary may require an individual to have passed an appropriate security background examination before appointment to the Committee. ``(c) Chairperson and Vice Chairperson.--(1) Each committee established under subsection (a) shall elect 1 of its members as the Chairman and 1 of its members as the Vice Chairperson. ``(2) The Vice Chairman shall act as Chairman in the absence or incapacity of the Chairman, or in the event of a vacancy in the office of the Chairman. [[Page 116 STAT. 2082]] ``(d) Observers.--(1) The Secretary shall, and the head of any other interested Federal agency may, designate a representative to participate as an observer with the Committee. ``(2) The Secretary's designated representative shall act as the executive secretary of the Committee and shall perform the duties set forth in section 10(c) of the Federal Advisory Committee Act (5 U.S.C. App.). ``(e) Consideration of Views.--The Secretary shall consider the information, advice, and recommendations of the Committee in formulating policy regarding matters affecting maritime security. ``(f) Compensation and Expenses.--(1) A member of a committee established under this section, when attending meetings of the committee or when otherwise engaged in the business of the committee, is entitled to receive-- ``(A) compensation at a rate fixed by the Secretary, not exceeding the daily equivalent of the current rate of basic pay in effect for GS-15 of the General Schedule under section 5332 of title 5 including travel time; and ``(B) travel or transportation expenses under section 5703 of title 5. ``(2) A member of such a committee shall not be considered to be an officer or employee of the United States for any purpose based on their receipt of any payment under this subsection. ``(g) FACA; Termination.--(1) The Federal Advisory Committee Act (5 U.S.C. App.)-- ``(A) applies to the National Maritime Security Advisory Committee established under this section, except that such committee terminates on September 30, 2008; and ``(B) does not apply to Area Maritime Security Advisory Committees established under this section. ``(2) <<NOTE: Deadline.>> Not later than September 30, 2006, each committee established under this section shall submit to the Congress its recommendation regarding whether the committee should be renewed and continued beyond the termination date. ``Sec. 70113. Maritime intelligence ``(a) In General.--The Secretary shall implement a system to collect, integrate, and analyze information concerning vessels operating on or bound for waters subject to the jurisdiction of the United States, including information related to crew, passengers, cargo, and intermodal shipments. ``(b) Consultation.--In developing the information system under subsection (a), the Secretary shall consult with the Transportation Security Oversight Board and other departments and agencies, as appropriate. ``(c) Information Integration.--To deter a transportation security incident, the Secretary may collect information from public and private entities to the extent that the information is not provided by other Federal departments and agencies. ``Sec. 70114. Automatic identification systems ``(a) System Requirements.-- <<NOTE: Regulations.>> (1) Subject to paragraph (2), the following vessels, while operating on the navigable waters of the United States, shall be equipped with and operate an automatic identification system under regulations prescribed by the Secretary: ``(A) A self-propelled commercial vessel of at least 65 feet overall in length. [[Page 116 STAT. 2083]] ``(B) A vessel carrying more than a number of passengers for hire determined by the Secretary. ``(C) A towing vessel of more than 26 feet overall in length and 600 horsepower. ``(D) Any other vessel for which the Secretary decides that an automatic identification system is necessary for the safe navigation of the vessel. ``(2) The Secretary may-- ``(A) exempt a vessel from paragraph (1) if the Secretary finds that an automatic identification system is not necessary for the safe navigation of the vessel on the waters on which the vessel operates; and ``(B) waive the application of paragraph (1) with respect to operation of vessels on navigable waters of the United States specified by the Secretary if the Secretary finds that automatic identification systems are not needed for safe navigation on those waters. ``(b) Regulations.--The Secretary shall prescribe regulations implementing subsection (a), including requirements for the operation and maintenance of the automatic identification systems required under subsection (a). ``Sec. 70115. Long-range vessel tracking system ``The Secretary may develop and implement a long-range automated vessel tracking system for all vessels in United States waters that are equipped with the Global Maritime Distress and Safety System or equivalent satellite technology. The system shall be designed to provide the Secretary the capability of receiving information on vessel positions at interval positions appropriate to deter transportation security incidents. The Secretary may use existing maritime organizations to collect and monitor tracking information under the system. ``Sec. 70116. Secure systems of transportation ``(a) In General.--The Secretary, in consultation with the Transportation Security Oversight Board, shall establish a program to evaluate and certify secure systems of international intermodal transportation. ``(b) Elements of Program.--The program shall include-- ``(1) establishing standards and procedures for screening and evaluating cargo prior to loading in a foreign port for shipment to the United States either directly or via a foreign port; ``(2) establishing standards and procedures for securing cargo and monitoring that security while in transit; ``(3) developing performance standards to enhance the physical security of shipping containers, including standards for seals and locks; ``(4) establishing standards and procedures for allowing the United States Government to ensure and validate compliance with this program; and ``(5) any other measures the Secretary considers necessary to ensure the security and integrity of international intermodal transport movements. [[Page 116 STAT. 2084]] ``Sec. 70117. Civil penalty ``Any person that violates this chapter or any regulation under this chapter shall be liable to the United States for a civil penalty of not more than $25,000 for each violation.''. (b) Conforming Amendment.--The table of subtitles at the beginning of title 46, United States Code, is amended by adding at the end the following: ``VI. MISCELLANEOUS............................................ 70101''. (c) Deadline.-- <<NOTE: 46 USC 70104 note.>> The Secretary shall establish the plans required under section 70104(a)(1) of title 46, United States Code, as enacted by this Act, before April 1, 2003. (d) <<NOTE: 46 USC 70101 note.>> Rulemaking Requirements.-- (1) Interim final rule authority.--The Secretary shall issue an interim final rule as a temporary regulation implementing this section (including the amendments made by this section) as soon as practicable after the date of enactment of this section, without regard to the provisions of chapter 5 of title 5, United States Code. All regulations prescribed under the authority of this subsection that are not earlier superseded by final regulations shall expire not later than 1 year after the date of enactment of this Act. (2) Initiation of rulemaking.--The Secretary may initiate a rulemaking to implement this section (including the amendments made by this section) as soon as practicable after the date of enactment of this section. The final rule issued pursuant to that rulemaking may supersede the interim final rule promulgated under this subsection. (e) <<NOTE: 46 USC 70114 note.>> Phase-In of Automatic Identification System.-- (1) Schedule.--Section 70114 of title 46, United States Code, as enacted by this Act, shall apply as follows: (A) On and after January 1, 2003, to any vessel built after that date. (B) On and after July 1, 2003, to any vessel built before the date referred to in subparagraph (A) that is-- (i) a passenger vessel required to carry a certificate under the International Convention for the Safety of Life at Sea, 1974 (SOLAS); (ii) a tanker; or (iii) a towing vessel engaged in moving a tank vessel. (C) On and after December 31, 2004, to all other vessels built before the date referred to in subparagraph (A). (2) Definition.--The terms in this subsection have the same meaning as those terms have under section 2101 of title 46, United States Code. SEC. 103. INTERNATIONAL SEAFARER <<NOTE: 46 USC 70111 note.>> IDENTIFICATION. (a) Treaty Initiative.--The Secretary of the department in which the Coast Guard is operating is encouraged to negotiate an international agreement, or an amendment to an international agreement, that provides for a uniform, comprehensive, international system of identification for seafarers that will enable the United States and another country to establish authoritatively the identity of any seafarer aboard a vessel within the jurisdiction, including the territorial waters, of the United States or such other country. [[Page 116 STAT. 2085]] (b) Legislative Alternative.--If the Secretary fails to complete a negotiation process undertaken under subsection (a) within 24 months after the date of enactment of this Act, the Secretary shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a draft of legislation that, if enacted, would establish a uniform, comprehensive system of identification for seafarers. SEC. 104. EXTENSION OF SEAWARD JURISDICTION. (a) Definition of Territorial Waters.--Section 1 of title XIII of the Act of June 15, 1917 (50 U.S.C. 195; 40 Stat. 231) is amended-- (1) by striking ``The term `United States' as used in this Act includes'' and inserting the following: ``In this Act: ``(1) United states.--The term `United States' includes''; and (2) by adding at the end the following: ``(2) Territorial waters.--The term `territorial waters of the United States' includes all waters of the territorial sea of the United States as described in Presidential Proclamation 5928 of December 27, 1988.''. (b) Civil Penalty for Violation of Act of June 15, 1917.--Section 2 of title II of the Act of June 15, 1917 (50 U.S.C. 192), is amended-- (1) by inserting ``(a) In General.--'' before ``If'' in the first undesignated paragraph; (2) by striking ``(a) If any other'' and inserting ``(b) Application to Others.--If any other''; and (3) by adding at the end the following: ``(c) Civil Penalty.--A person violating this Act, or a regulation prescribed under this Act, shall be liable to the United States Government for a civil penalty of not more than $25,000 for each violation. Each day of a continuing violation shall constitute a separate violation.''. SEC. 105. SUSPENSION OF LIMITATION ON STRENGTH OF COAST GUARD. (a) Personnel End Strengths.--Section 661(a) of title 14, United States Code, is amended by adding at the end the following: ``If at the end of any fiscal year there is in effect a declaration of war or national emergency, the President may defer the effectiveness of any end-strength limitation with respect to that fiscal year prescribed by law for any military or civilian component of the Coast Guard, for a period not to exceed 6 months after the end of the war or termination of the national emergency.''. (b) Officers in Coast Guard Reserve.--Section 724 of title 14, United States Code, is amended by adding at the end thereof the following: ``(c) Deferral of Limitation.--If at the end of any fiscal year there is in effect a declaration of war or national emergency, the President may defer the effectiveness of any end-strength limitation with respect to that fiscal year prescribed by law for any military or civilian component of the Coast Guard Reserve, for a period not to exceed 6 months after the end of the war or termination of the national emergency.''. [[Page 116 STAT. 2086]] SEC. 106. EXTENSION OF DEEPWATER PORT ACT TO NATURAL GAS. (a) In General.--The following provisions of the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.) are each amended by inserting ``or natural gas'' after ``oil'' each place it appears: (1) Section 2(a) (33 U.S.C. 1501(a)). (2) Section 4(a) (33 U.S.C. 1503(a)). (3) Section 21(a) (33 U.S.C. 1520(a)). (b) Definitions.--Section 3 of the Deepwater Port Act of 1974 (33 U.S.C. 1502) is amended-- (1) by redesignating paragraphs (13) through (18) as paragraphs (14) through (19), respectively; (2) by amending paragraph (9) to read as follows: ``(9) `deepwater port'-- ``(A) means any fixed or floating manmade structure other than a vessel, or any group of such structures, that are located beyond State seaward boundaries and that are used or intended for use as a port or terminal for the transportation, storage, or further handling of oil or natural gas for transportation to any State, except as otherwise provided in section 23, and for other uses not inconsistent with the purposes of this Act, including transportation of oil or natural gas from the United States outer continental shelf; ``(B) includes all components and equipment, including pipelines, pumping stations, service platforms, buoys, mooring lines, and similar facilities to the extent they are located seaward of the high water mark; ``(C) in the case of a structure used or intended for such use with respect to natural gas, includes all components and equipment, including pipelines, pumping or compressor stations, service platforms, buoys, mooring lines, and similar facilities that are proposed or approved for construction and operation as part of a deepwater port, to the extent that they are located seaward of the high water mark and do not include interconnecting facilities; and ``(D) shall be considered a `new source' for purposes of the Clean Air Act (42 U.S.C. 7401 et seq.), and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.);''; and (3) by inserting after paragraph (12) the following: ``(13) `natural gas' means either natural gas unmixed, or any mixture of natural or artificial gas, including compressed or liquefied natural gas;''. (c) Facility Approval.--(1) Section 5(d) of the Deepwater Port Act of 1974 (33 U.S.C. 1504(d)) is amended by adding at the end the following: ``(4) This subsection shall not apply to deepwater ports for natural gas.''. (2) Section 5(i) of the Deepwater Port Act of 1974 (33 U.S.C. 1504(i)) is amended by adding at the end the following: ``(4) <<NOTE: Deadline.>> The Secretary shall approve or deny any application for a deepwater port for natural gas submitted pursuant to this Act not later than 90 days after the last public hearing on a proposed license. Paragraphs (1), (2), and (3) of this subsection shall not apply to an application for a deepwater port for natural gas.''. [[Page 116 STAT. 2087]] (d) Facility Development.--Section 8 of the Deepwater Port Act of 1974 (33 U.S.C. 1507) is amended by adding at the end the following: ``(d) Managed Access.--Subsections (a) and (b) shall not apply to deepwater ports for natural gas. A licensee of a deepwater port for natural gas, or an affiliate thereof, may exclusively utilize the entire capacity of the deepwater port and storage facilities for the acceptance, transport, storage, regasification, or conveyance of natural gas produced, processed, marketed, or otherwise obtained by agreement by such licensee or its affiliates. The licensee may make unused capacity of the deepwater port and storage facilities available to other persons, pursuant to reasonable terms and conditions imposed by the licensee, if such use does not otherwise interfere in any way with the acceptance, transport, storage, regasification, or conveyance of natural gas produced, processed, marketed, or otherwise obtained by agreement by such licensee or its affiliates. ``(e) Jurisdiction.--Notwithstanding any provision of the Natural Gas Act (15 U.S.C. 717 et seq.), any regulation or rule issued thereunder, or section 19 as it pertains to such Act, this Act shall apply with respect to the licensing, siting, construction, or operation of a deepwater natural gas port or the acceptance, transport, storage, regasification, or conveyance of natural gas at or through a deepwater port, to the exclusion of the Natural Gas Act or any regulation or rule issued thereunder.''. (e) Regulations.-- <<NOTE: 43 USC 1504 note.>> (1) Agency and department expertise and responsibilities.-- <<NOTE: Deadline.>> Not later than 30 days after the date of the enactment of this Act, the heads of Federal departments or agencies having expertise concerning, or jurisdiction over, any aspect of the construction or operation of deepwater ports for natural gas shall transmit to the Secretary of Transportation written comments as to such expertise or statutory responsibilities pursuant to the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.) or any other Federal law. (2) Interim final rule.--The Secretary may issue an interim final rule as a temporary regulation implementing this section (including the amendments made by this section) as soon as practicable after the date of enactment of this section, without regard to the provisions of chapter 5 of title 5, United States Code. (3) Final rules.--As soon as practicable after the date of the enactment of this Act, the Secretary of Transportation shall issue additional final rules that, in the discretion of the Secretary, are determined to be necessary under the Deepwater Port Act of 1974 (33 U.S.C. 1501 et seq.) for the application and issuance of licenses for a deepwater port for natural gas. (f) Environmental Analysis.--Section 5 of the Deepwater Port Act of 1974 (33 U.S.C. 1504) is amended by striking subsection (f) and inserting the following: ``(f) NEPA Compliance.--For all applications, the Secretary, in cooperation with other involved Federal agencies and departments, shall comply with the National Environmental Policy Act of 1969 (42 U.S.C. 4332). Such compliance shall fulfill the requirement of all Federal agencies in carrying out their responsibilities under the National Environmental Policy Act of 1969 pursuant to this Act.''. [[Page 116 STAT. 2088]] (g) State Fees.--Section 5(h)(2) of the Deepwater Port Act of 1974 (33 U.S.C. 1504(h)(2)) is amended by inserting ``and unless prohibited by law,'' after ``Notwithstanding any other provision of this Act,''. SEC. 107. ASSIGNMENT OF COAST GUARD PERSONNEL AS SEA MARSHALS AND ENHANCED USE OF OTHER SECURITY PERSONNEL. (a) In General.--Section 7(b) of the Ports and Waterways Safety Act (33 U.S.C. 1226(b)) is amended-- (1) by striking ``and'' after the semicolon in paragraph (1); (2) by striking ``terrorism.'' in paragraph (2) and inserting ``terrorism; and''; and (3) by adding at the end the following: ``(3) dispatch properly trained and qualified armed Coast Guard personnel on vessels and public or commercial structures on or adjacent to waters subject to United States jurisdiction to deter or respond to acts of terrorism or transportation security incidents, as defined in section 70101 of title 46, United States Code.''. (b) <<NOTE: 33 USC 1226 note.>> Report on Use of Non-Coast Guard Personnel.--The Secretary of the department in which the Coast Guard is operating shall evaluate and report to the Congress on-- (1) the potential use of Federal, State, or local government personnel, and documented United States Merchant Marine personnel, to supplement Coast Guard personnel under section 7(b)(3) of the Ports and Waterways Safety Act (33 U.S.C. 1226(b)(3)); (2) the possibility of using personnel other than Coast Guard personnel to carry out Coast Guard personnel functions under that section and whether additional legal authority would be necessary to use such personnel for such functions; and (3) the possibility of utilizing the United States Merchant Marine Academy, State maritime academies, or Coast Guard approved maritime industry schools in the United States, to provide training under that section. SEC. 108. TECHNICAL AMENDMENTS CONCERNING THE TRANSMITTAL OF CERTAIN INFORMATION TO THE CUSTOMS SERVICE. (a) Tariff Act of 1930.--Section 431A(d) of the Tariff Act of 1930, as added by section 343(b) of the Trade Act of 2002 (Public Law 107- 210), <<NOTE: 19 USC 1431a.>> is amended to read as follows: ``(d) Reporting of Undocumented Cargo.-- ``(1) In general.--A vessel carrier shall notify the Customs Service of any cargo tendered to such carrier that is not properly documented pursuant to this section and that has remained in the marine terminal for more than 48 hours after being delivered to the marine terminal, and the location of the cargo in the marine terminal. ``(2) Sharing arrangements.--For vessel carriers that are members of vessel sharing agreements (or any other arrangement whereby a carrier moves cargo on another carrier's vessel), the vessel carrier accepting the booking shall be responsible for reporting undocumented cargo, without regard to whether it operates the vessel on which the transportation is to be made. [[Page 116 STAT. 2089]] ``(3) Reassignment to another vessel.--For purposes of this subsection and subsection (f), if merchandise has been tendered to a marine terminal operator and subsequently reassigned for carriage on another vessel, the merchandise shall be considered properly documented if the information provided reflects carriage on the previously assigned vessel and otherwise meets the requirements of subsection (b). Notwithstanding the preceding sentence, it shall be the responsibility of the vessel carrier to notify the Customs Service promptly of any reassignment of merchandise for carriage on a vessel other than the vessel on which the merchandise was originally assigned. ``(4) Multiple containers.--If a single shipment is comprised of multiple containers, the 48-hour period described in paragraph (1) shall begin to run from the time the last container of the shipment is delivered to the marine terminal operator. It shall be the responsibility of the person tendering the cargo to inform the carrier that the shipment consists of multiple containers that will be delivered to the marine terminal operator at different times as part of a single shipment.''. (b) Mandatory Advanced Electronic Information.--Section 343(a) of the Trade Act of 2002 (Public Law 107-210) <<NOTE: 19 USC 2071 note.>> is amended-- (1) by striking paragraph (1) and inserting the following: ``(1) In general.--(A) Subject to paragraphs (2) and (3), the Secretary is authorized to promulgate regulations providing for the transmission to the Customs Service, through an electronic data interchange system, of information pertaining to cargo to be brought into the United States or to be sent from the United States, prior to the arrival or departure of the cargo. ``(B) The <<NOTE: Regulations. Deadline.>> Secretary shall endeavor to promulgate an initial set of regulations under subparagraph (A) not later than October 1, 2003.''. (2) by striking paragraph (2) and inserting the following: ``(2) Information required.--The cargo information required by the regulations promulgated pursuant to paragraph (1) under the parameters set forth in paragraph (3) shall be such information on cargo as the Secretary determines to be reasonably necessary to ensure cargo safety and security pursuant to those laws enforced and administered by the Customs Service. The Secretary shall provide to appropriate Federal departments and agencies cargo information obtained pursuant to paragraph (1).''; and (3) in paragraph (3)-- (A) by striking ``aviation, maritime, and surface transportation safety and security'' in subparagraphs (F), (H), and (L)(ii) and inserting ``cargo safety and security''; (B) in subparagraph (F)-- (i) by inserting ``merchandise'' after ``determining''; (ii) by inserting ``and preventing smuggling'' after ``security''; and (iii) by adding at the end the following: ``Notwithstanding the preceding sentence, nothing in this section shall be treated as amending, repealing, or otherwise modifying title IV of the Tariff Act of 1930 or regulations promulgated thereunder.''; (C) in subparagraph (G)-- [[Page 116 STAT. 2090]] (i) in the first sentence-- (I) by inserting ``cargo'' after ``confidential''; and (II) by inserting after ``Customs Service'' the following: ``pursuant to such regulations, except for the manifest information collected pursuant to section 431 of the Tariff Act of 1930 and required to be available for public disclosure pursuant to section 431(c) of such Act.''; and (ii) by striking the second sentence; and (D) in subparagraph (L)-- (i) in the matter preceding clause (i)-- (I) by striking ``60'' and inserting ``15''; and (II) by striking ``promulgation of regulations'' and inserting ``publication of a final rule pursuant to this section''; (ii) by striking ``and'' at the end of clause (iii); (iii) by striking the period and inserting ``; and'' at the end of clause (iv); and (iv) by inserting at the end the following: ``(v) if the Secretary determines to amend the proposed regulations after they have been transmitted to the Committees pursuant to this subparagraph, the Secretary shall transmit the amended regulations to such Committees no later than 5 days prior to the publication of the final rule.''. (c) Repeal.--Section 343A of the Trade Act of 2002 (116 Stat. 985) <<NOTE: 19 USC 2071.>> is repealed. SEC. 109. MARITIME SECURITY PROFESSIONAL TRAINING. <<NOTE: 46 USC 70101 note.>> (a) In General.-- (1) Development of standards.-- <<NOTE: Deadline.>> Not later than 6 months after the date of enactment of this Act, the Secretary of Transportation shall develop standards and curriculum to allow for the training and certification of maritime security professionals. In developing these standards and curriculum, the Secretary shall consult with the National Maritime Security Advisory Committee established under section 70112 of title 46, United States Code, as amended by this Act. (2) Secretary to consult on standards.--In developing standards under this section, the Secretary may, without regard to the Federal Advisory Committee Act (5 U.S.C. App.), consult with the Federal Law Enforcement Training Center, the United States Merchant Marine Academy's Global Maritime and Transportation School, the Maritime Security Council, the International Association of Airport and Port Police, the National Cargo Security Council, and any other Federal, State, or local government or law enforcement agency or private organization or individual determined by the Secretary to have pertinent expertise. (b) Minimum Standards.--The standards established by the Secretary under subsection (a) shall include the following elements: (1) The training and certification of maritime security professionals in accordance with accepted law enforcement and security guidelines, policies, and procedures, including, as appropriate, recommendations for incorporating a background [[Page 116 STAT. 2091]] check process for personnel trained and certified in foreign ports. (2) The training of students and instructors in all aspects of prevention, detection, investigation, and reporting of criminal activities in the international maritime environment. (3) The provision of off-site training and certification courses and certified personnel at United States and foreign ports used by United States-flagged vessels, or by foreign- flagged vessels with United States citizens as passengers or crewmembers, to develop and enhance security awareness and practices. (c) Training Provided to Law Enforcement and Security Personnel.-- (1) In general.--The Secretary is authorized to make the training opportunities provided under this section available to any Federal, State, local, and private law enforcement or maritime security personnel in the United States or to personnel employed in foreign ports used by vessels with United States citizens as passengers or crewmembers. (2) Academies and schools.--The Secretary may provide training under this section at-- (A) each of the 6 State maritime academies; (B) the United States Merchant Marine Academy; (C) the Appalachian Transportation Institute; and (D) other security training schools in the United States. (d) Use of Contract Resources.--The Secretary may employ Federal and contract resources to train and certify maritime security professionals in accordance with the standards and curriculum developed under this Act. (e) Annual Report.--The Secretary shall transmit an annual report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the expenditure of appropriated funds and the training under this section. (f) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary to carry out this section $5,500,000 for each of fiscal years 2003 through 2008. SEC. 110. ADDITIONAL REPORTS. (a) Annual Report on Maritime Security and Terrorism.--Section 905 of the International Maritime and Port Security Act (46 U.S.C. App. 1802) is amended by adding at the end thereof the following: ``Beginning with the first report submitted under this section after the date of enactment of the Maritime Transportation Security Act of 2002, the Secretary shall include a description of activities undertaken under title I of that Act and an analysis of the effect of those activities on port security against acts of terrorism.''. (b) <<NOTE: 46 USC 70101 note.>> Report on Training Center.--The Commandant of the United States Coast Guard, in conjunction with the Secretary of the Navy, shall submit to Congress a report, at the time they submit their fiscal year 2005 budget, on the life cycle costs and benefits of creating a Center for Coastal and Maritime Security. The purpose of the Center would be to provide an integrated training complex to prevent and mitigate terrorist threats against coastal and maritime assets of the United States, including ports, harbors, ships, dams, reservoirs, and transport nodes. [[Page 116 STAT. 2092]] (c) <<NOTE: 46 USC 70116 note.>> Report on Secure System of Transportation Program.--Within 1 year after the secure system of transportation program is implemented under section 70116 of title 46, United States Code, as amended by this Act, the Secretary of the department in which the Coast Guard is operating shall transmit a report to the Senate Committees on Commerce, Science, and Transportation and Finance and the House of Representatives Committees on Transportation and Infrastructure and Ways and Means that-- (1) evaluates the secure system of transportation program and its components; (2) states the Secretary's view as to whether any procedure, system, or technology evaluated as part of the program offers a higher level of security than requiring imported goods to clear customs under existing procedures and for the requirements of the National Maritime Security Plan for reopening of United States ports to commerce; (3) states the Secretary's view as to the integrity of the procedures, technology, or systems evaluated as part of the program; (4) makes a recommendation with respect to whether the program, or any procedure, system, or technology should be incorporated in a nationwide system for preclearance of imports of waterborne goods and for the requirements of the National Maritime Security Plan for the reopening of United States ports to Commerce; (5) describes the impact of the program on staffing levels at the department in which the Coast Guard is operating, and the Customs Service; and (6) states the Secretary's views as to whether there is a method by which the United States could validate foreign ports so that cargo from those ports is preapproved for entry into the United States and for the purpose of the requirements of the National Maritime Security Plan for the reopening of United States ports to commerce. SEC. 111. PERFORMANCE STANDARDS. <<NOTE: 46 USC 70116 note.>> <<NOTE: Deadline.>> Not later than January 1, 2004, the Secretary of the department in which the Coast Guard is operating, in consultation with the Transportation Security Oversight Board, shall-- (1) develop and maintain an antiterrorism cargo identification, tracking, and screening system for containerized cargo shipped to and from the United States either directly or via a foreign port; and (2) develop performance standards to enhance the physical security of shipping containers, including standards for seals and locks. SEC. 112. <<NOTE: 46 USC 70101 note.>> REPORT ON FOREIGN-FLAG VESSELS. Within 6 months after the date of enactment of this Act and every year thereafter, the Secretary of the department in which the Coast Guard is operating, in consultation with the Secretary of State, shall provide a report to the Committee on Commerce, Science, and Transportation of the Senate, and the Committee on Transportation and Infrastructure of the House of Representatives that lists the following information: (1) A list of all nations whose flag vessels have entered United States ports in the previous year. [[Page 116 STAT. 2093]] (2) Of the nations on that list, a separate list of those nations-- (A) whose registered flag vessels appear as Priority III or higher on the Boarding Priority Matrix maintained by the Coast Guard; (B) that have presented, or whose flag vessels have presented, false, intentionally incomplete, or fraudulent information to the United States concerning passenger or cargo manifests, crew identity or qualifications, or registration or classification of their flag vessels; (C) whose vessel registration or classification procedures have been found by the Secretary to be noncompliant with international classifications or do not exercise adequate control over safety and security concerns; or (D) whose laws or regulations are not sufficient to allow tracking of ownership and registration histories of registered flag vessels. (3) Actions taken by the United States, whether through domestic action or international negotiation, including agreements at the International Maritime Organization under section 902 of the International Maritime and Port Security Act (46 U.S.C. App. 1801), to improve transparency and security of vessel registration procedures in nations on the list under paragraph (2). (4) Recommendations for legislative or other actions needed to improve security of United States ports against potential threats posed by flag vessels of nations named in paragraph (2). SEC. 113. <<NOTE: 46 USC 70103 note.>> REVISION OF PORT SECURITY PLANNING GUIDE. The Secretary of Transportation, acting through the Maritime Administration and after consultation with the National Maritime Security Advisory Committee and the Coast Guard, shall publish a revised version of the document entitled ``Port Security: A National Planning Guide'', incorporating the requirements prescribed under chapter 701 of title 46, United States Code, as amended by this Act, within 3 years after the date of enactment of this Act, and make that revised document available on the Internet. TITLE II-- <<NOTE: Maritime Policy Improvement Act of 2002.>> MARITIME POLICY IMPROVEMENT SEC. 201. SHORT TITLE. <<NOTE: 46 USC 2101 note.>> This title may be cited as the ``Maritime Policy Improvement Act of 2002''. SEC. 202. VESSEL COASTAL VENTURE. Section 1120(g) of the Coast Guard Authorization Act of 1996 (Public Law 104-324; 110 Stat. 3978) is amended by inserting ``COASTAL VENTURE (United States official number 971086),'' after ``vessels''. SEC. 203. EXPANSION OF AMERICAN MERCHANT MARINE MEMORIAL WALL OF HONOR. (a) Findings.--The Congress finds that-- [[Page 116 STAT. 2094]] (1) the United States Merchant Marine has served the people of the United States in all wars since 1775; (2) the United States Merchant Marine served as the Nation's first navy and defeated the British Navy to help gain the Nation's independence; (3) the United States Merchant Marine kept the lifeline of freedom open to the allies of the United States during the Second World War, making one of the most significant contributions made by any nation to the victory of the allies in that war; (4) President Franklin D. Roosevelt and many military leaders praised the role of the United States Merchant Marine as the ``Fourth Arm of Defense'' during the Second World War; (5) more than 250,000 men and women served in the United States Merchant Marine during the Second World War; (6) during the Second World War, members of the United States Merchant Marine faced dangers from the elements and from submarines, mines, armed raiders, destroyers, aircraft, and ``kamikaze'' pilots; (7) during the Second World War, at least 6,830 members of the United States Merchant Marine were killed at sea; (8) during the Second World War, 11,000 members of the United States Merchant Marine were wounded, at least 1,100 of whom later died from their wounds; (9) during the Second World War, 604 members of the United States Merchant Marine were taken prisoner; (10) one in 32 members of the United States Merchant Marine serving in the Second World War died in the line of duty, suffering a higher percentage of war-related deaths than any of the other armed services of the United States; and (11) the United States Merchant Marine continues to serve the United States, promoting freedom and meeting the high ideals of its former members. (b) Grants To Construct Addition to American Merchant Marine Memorial Wall of Honor.-- (1) In general.--The Secretary of Transportation may make grants to the American Merchant Marine Veterans Memorial Committee, Inc., to construct an addition to the American Merchant Marine Memorial Wall of Honor located at the Los Angeles Maritime Museum in San Pedro, California. (2) Federal share.--The Federal share of the cost of activities carried out with a grant made under this section shall be 50 percent. (3) Authorization of appropriations.--There is authorized to be appropriated to carry out this section $500,000 for fiscal year 2003. SEC. 204. DISCHARGE OF AGRICULTURAL CARGO RESIDUE. <<NOTE: 33 USC 1902a.>> Notwithstanding any other provision of law, the discharge from a vessel of any agricultural cargo residue material in the form of hold washings shall be governed exclusively by the provisions of the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.) that implement Annex V to the International Convention for the Prevention of Pollution from Ships. [[Page 116 STAT. 2095]] SEC. 205. RECORDING AND DISCHARGING NOTICES OF CLAIM OF MARITIME LIEN. (a) Liens on Any Documented Vessel.-- (1) In general.--Section 31343 of title 46, United States Code, is amended as follows: (A) By amending the section heading to read as follows: ``Sec. 31343. Recording and discharging notices of claim of maritime lien''. (B) In subsection (a) by striking ``covered by a preferred mortgage filed or recorded under this chapter'' and inserting ``documented, or for which an application for documentation has been filed, under chapter 121''. (C) By amending subsection (b) to read as follows: ``(b)(1) The Secretary shall record a notice complying with subsection (a) of this section if, when the notice is presented to the Secretary for recording, the person having the claim files with the notice a declaration stating the following: ``(A) The information in the notice is true and correct to the best of the knowledge, information, and belief of the individual who signed it. ``(B) A copy of the notice, as presented for recordation, has been sent to each of the following: ``(i) The owner of the vessel. ``(ii) Each person that recorded under subsection (a) of this section an unexpired notice of a claim of an undischarged lien on the vessel. ``(iii) The mortgagee of each mortgage filed or recorded under section 31321 of this title that is an undischarged mortgage on the vessel. ``(2) A declaration under this subsection filed by a person that is not an individual must be signed by the president, member, partner, trustee, or other individual authorized to execute the declaration on behalf of the person.''. (D) By amending subsection (c) to read as follows: ``(c)(1) On full and final discharge of the indebtedness that is the basis for a notice of claim of lien recorded under subsection (b) of this section, the person having the claim shall provide the Secretary with an acknowledged certificate of discharge of the indebtedness. The Secretary shall record the certificate. ``(2) The district courts of the United States shall have jurisdiction over a civil action in Admiralty to declare that a vessel is not subject to a lien claimed under subsection (b) of this section, or that the vessel is not subject to the notice of claim of lien, or both, regardless of the amount in controversy or the citizenship of the parties. Venue in such an action shall be in the district where the vessel is found or where the claimant resides or where the notice of claim of lien is recorded. The court may award costs and attorneys fees to the prevailing party, unless the court finds that the position of the other party was substantially justified or other circumstances make an award of costs and attorneys fees unjust. The Secretary shall record any such declaratory order.''. (E) By adding at the end the following: ``(e) A notice of claim of lien recorded under subsection (b) of this section shall expire 3 years after the date the lien was established, as such date is stated in the notice under subsection (a) of this section. [[Page 116 STAT. 2096]] ``(f) This section does not alter in any respect the law pertaining to the establishment of a maritime lien, the remedy provided by such a lien, or the defenses thereto, including any defense under the doctrine of laches.''. (2) Clerical amendment.--The table of sections for chapter 313 of title 46, United States Code, is amended by striking the item relating to section 31343 and inserting the following: ``31343. Recording and discharging notices of claim of maritime lien.''. (b) Notice Requirements.--Section 31325 of title 46, United States Code, is amended as follows: (1) In subsection (d)(1)(B) by striking ``a notice of a claim'' and inserting ``an unexpired notice of a claim''. (2) In subsection (f)(1) by striking ``a notice of a claim'' and inserting ``an unexpired notice of a claim''. (c) Approval of Surrender of Documentation.--Section 12111 of title 46, United States Code, is amended by adding at the end the following: ``(d)(1) The Secretary shall not refuse to approve the surrender of the certificate of documentation for a vessel solely on the basis that a notice of a claim of a lien on the vessel has been recorded under section 31343(a) of this title. ``(2) The Secretary may condition approval of the surrender of the certificate of documentation for a vessel over 1,000 gross tons.''. (d) Technical Correction.--Section 9(c) of the Shipping Act, 1916 (46 App. U.S.C. 808(c)) is amended in the matter preceding paragraph (1) by striking ``Except'' and all that follows through ``12106(e) of title 46,'' and inserting ``Except as provided in section 611 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1181) and in section 12106(e) of title 46,''. (e) Effective <<NOTE: 46 USC 12111 note.>> Date.--This section shall take effect January 1, 2003. SEC. 206. TONNAGE OF R/V DAVIDSON. (a) In General.--The Secretary of the department in which the Coast Guard is operating shall prescribe a tonnage measurement as a small passenger vessel as defined in section 2101 of title 46, United States Code, for the vessel R/V DAVIDSON (United States official number D1066485) for purposes of applying the optional regulatory measurement under section 14305 of that title. (b) Application.--Subsection (a) shall apply only when the vessel is operating in compliance with the requirements of section 3301(8) of title 46, United States Code. SEC. 207. MISCELLANEOUS CERTIFICATES OF DOCUMENTATION. (a) In General.--Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), section 8 of the Act of June 19, 1886 (24 Stat. 81, chapter 421; 46 App. U.S.C. 289), and sections 12106 and 12108 of title 46, United States Code, the Secretary of the department in which the Coast Guard is operating may issue a certificate of documentation with appropriate endorsement for employment in the coastwise trade for the following vessels: (1) LOOKING GLASS (United States official number 925735). (2) YANKEE (United States official number 1076210). [[Page 116 STAT. 2097]] (3) LUCKY DOG of St. Petersburg, Florida (State of Florida registration number FLZP7569E373). (4) ENTERPRIZE (United States official number 1077571). (5) M/V SANDPIPER (United States official number 1079439). (6) FRITHA (United States official number 1085943). (7) PUFFIN (United States official number 697029). (8) VICTORY OF BURNHAM (United States official number 663780). (9) R'ADVENTURE II (United States official number 905373). (10) ANTJA (State of Florida registration number FL3475MA). (11) SKIMMER, manufactured by Contour Yachts, Inc. (hull identification number QHG34031D001). (12) TOKEENA (State of South Carolina registration number SC 1602 BJ). (13) DOUBLE EAGLE 2 (United States official number 1042549). (14) ENCOUNTER (United States official number 998174). (15) AJ (United States official number 599164). (16) BARGE 10 (United States official number 1101368). (17) NOT A SHOT (United States official number 911064). (18) PRIDE OF MANY (Canadian official number 811529). (19) AMAZING GRACE (United States official number 92769). (20) SHEWHO (United States official number 1104094). (21) SOVEREIGN (United States official number 1028144). (22) CALEDONIA (United States official number 679530). (23) ISLANDER (State of South Carolina identification number SC 9279 BJ). (24) F/V ANITA J (United States official number 560532). (25) F/V HALF MOON BAY (United States official number 615796). (26) F/V SUNSET BAY (United States official number 598484). (27) BILLIE-B (United States official number 958427). (b) Eligibility for Administrative Waivers.--The following vessels are deemed to be eligible vessels within the meaning of section 504(2) of the Coast Guard Authorization Act of 1998 (46 U.S.C. 12106 note): (1) EXCELLENCE III (hull identification number HQZ00255K101). (2) ADIOS (hull identification number FAL75003A101). (3) LAUDERDALE LADY (United States official number 1103520). (4) UNIT ONE (United States official number 1128562). (c) Repeal of Jones Act Waiver Administrative Process Sunset; Anti- fraud Revocation Authority.-- (1) Repeal of sunset.--Section 505 of the Coast Guard Authorization Act of 1998 (46 U.S.C. 12106 note) is repealed. The repeal of section 505 shall have no effect on the validity of any certificate or endorsement issued under section 502 of that Act. (2) Revocation for fraud.--Section 503 of the Coast Guard Authorization Act of 1998 (46 U.S.C. 12106 note) is amended to read as follows: [[Page 116 STAT. 2098]] ``SEC. 503. REVOCATION. ``(a) Revocation for Fraud.--The Secretary shall revoke a certificate or an endorsement issued under section 502, after notice and an opportunity for a hearing, if the Secretary determines that the certificate or endorsement was obtained by fraud. ``(b) Application With Criminal Penalties.--Nothing in this section affects-- ``(1) the criminal prohibition on fraud and false statements provided by section 1001 of title 18, United States Code; or ``(2) any other authority of the Secretary to revoke a certificate or endorsement issued under section 502 of this Act.''. (d) Technology Demonstration Waiver.--Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 U.S.C. App. 883), section 8 of the Act of June 19, 1886 (24 Stat. 81, chapter 421; 46 U.S.C. App. 289), and sections 12106 and 12108 of title 46, United States Code, the Secretary of Transportation may issue a certificate of documentation with appropriate endorsement for the sole purpose of technology demonstrations (including transporting guests for such demonstration who have not contributed consideration for their passage) for the vessel FOILCAT (United States official number 1063892). SEC. 208. EXEMPTION FOR VICTORY SHIPS. Section 3302(l)(1) of title 46, United States Code, is amended by adding at the end the following: ``(D) The SS Red Oak Victory (United States official number 249410), owned by the Richmond Museum Association, located in Richmond, California. ``(E) The SS American Victory (United States official number 248005), owned by Victory Ship, Inc., of Tampa, Florida. ``(F) The LST-325, owned by USS LST Ship Memorial, Incorporated, located in Mobile, Alabama.''. SEC. 209. CERTIFICATE OF DOCUMENTATION FOR 3 BARGES. (a) Documentation Certificate.--Notwithstanding section 12106 of title 46, United States Code, and section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), and subject to subsection (c) of this section, the Secretary of the department in which the Coast Guard is operating may issue a certificate of documentation with an appropriate endorsement for employment in the coastwise trade for each of the vessels listed in subsection (b). (b) Vessels Described.--The vessels referred to in subsection (a) are the following: (1) The former Navy deck barge JIM, having a length of 110 feet and a width of 34 feet. (2) The former railroad car barge HUGH, having a length of 185 feet and a width of 34 feet. (3) The former railroad car barge TOMMY, having a length of 185 feet and a width of 34 feet. (c) Limitation on Operation.--A vessel issued a certificate of documentation under this section may be used only as a floating platform for launching fireworks, including transportation of materials associated with that use. SEC. 210. CERTIFICATE OF DOCUMENTATION FOR THE EAGLE. Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), chapter 121 of title 46, United States Code, [[Page 116 STAT. 2099]] and section 1 of the Act of May 28, 1906 (46 App. U.S.C. 292), the Secretary of the department in which the Coast Guard is operating shall issue a certificate of documentation with appropriate endorsement for employment in the coastwise trade for the vessel EAGLE (hull number BK- 1754, United States official number 1091389) if the vessel is-- (1) owned by a State, a political subdivision of a State, or a public authority chartered by a State; (2) if chartered, chartered to a State, a political subdivision of a State, or a public authority chartered by a State; (3) operated only in conjunction with-- (A) scour jet operations; or (B) dredging services adjacent to facilities owned by the State, political subdivision, or public authority; and (4) externally identified clearly as a vessel of that State, subdivision, or authority. SEC. 211. WAIVER FOR VESSELS IN NEW WORLD CHALLENGE RACE. Notwithstanding section 8 of the Act of June 19, 1886 (46 App. U.S.C. 289), beginning on April 1, 2002, the 10 sailboats participating in the New World Challenge Race may transport guests, who have not contributed consideration for their passage, from and around the ports of San Francisco and San Diego, California, before and during stops of that race. This section shall have no force or effect beginning on the earlier of-- (1) 60 days after the last competing sailboat reaches the end of that race in San Francisco, California; or (2) December 31, 2003. SEC. 212. VESSEL ASPHALT COMMANDER. Notwithstanding any other law or agreement with the United States Government, the vessel ASPHALT COMMANDER (United States official number 663105) may be transferred to or placed under a foreign registry or sold to a person that is not a citizen of the United States and transferred to or placed under a foreign registry. SEC. 213. COASTWISE TRADE AUTHORIZATION. (a) In General.--Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), or any other provision of law restricting the operation of a foreign-built vessel in the coastwise trade of the United States, the following vessels may, subject to subsection (b), engage in the coastwise trade of the United States to transport platform jackets from ports in the Gulf of Mexico to sites on the Outer Continental Shelf for completion of certain offshore projects as follows: (1) The H-114, H-627, I-650, and H-851 for the projects known as Atlantis, Thunderhorse, Holstein, and Mad Dog. (2) The I-600 for the projects known as Murphy Medusa, Dominion Devil's Tower, and Murphy Front Runner. (b) Priority for U.S.-Built Vessels.--Subsection (a) shall not apply in instances where a United States-built, United States-documented vessel with the capacity to transport and launch the platform jacket involved or its components is available to transport that jacket or its components. In this section, the term ``platform jacket'' has the meaning given that term under the thirteenth proviso of section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), as amended by subsection (c) of this section. [[Page 116 STAT. 2100]] (c) <<NOTE: 46 USC app. 883.>> Definition.--The thirteenth proviso (pertaining to transportation by launch barge) of section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), is amended by striking the period at the end and inserting the following: ``; and for the purposes of this proviso, the term `platform jacket' includes any type of offshore drilling or production structure or components, including platform jackets, tension leg or SPAR platform superstructures (including the deck, drilling rig and support utilities, and supporting structure) hull (including vertical legs and connecting pontoons or vertical cylinder), tower and base sections of a platform jacket, jacket structures, and deck modules (known as `topsides') of a hydrocarbon development and production platform.''. SEC. 214. JONES ACT WAIVER FOR DELAYED VESSEL DELIVERY. (a) In General.--Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 U.S.C. App. 883), section 8 of the Act of June 19, 1886 (24 Stat. 81, chapter 421; 46 U.S.C. App. 289), and sections 12106 and 12108 of title 46, United States Code, the Secretary of Transportation may issue a certificate of documentation with appropriate endorsement for employment in the coastwise trade for a self-propelled tank vessel not built in the United States as provided in this section. (b) Waiver Requirements.--The Secretary may not grant a waiver under subsection (a) unless-- (1) the person requesting the waiver is a party to a binding legal contract, executed within 24 months after the date of enactment of this Act, with a United States shipyard for the construction in the United States of a self-propelled tank vessel; (2) the Secretary determines, on the basis of the terms of the contract, the parties to the contract, the actions of those parties in connection with the contract, and the circumstances under which the contract was executed, that the parties are making a bona fide effort to construct in the United States and deliver a self-propelled tank vessel in a timely manner; (3) the vessel for which the waiver is granted will meet otherwise applicable requirements of law regarding ownership and operation for vessels employed in the coastwise trade; (4) the shipyard owns a facility with sufficient infrastructure to construct the self-propelled tank vessel; (5) the self-propelled tank vessel that is the subject of that contract will not be available for use on the contracted delivery date because of a delay in the construction or delivery of the vessel due to unusual circumstances; and (6) the Secretary determines that no other suitable tank vessel or vessels, or tank vessel capacity, that would not require such a waiver are reasonably available to the person requesting the waiver. Prior to making the determination under paragraph (6), the Secretary shall provide public notice of a waiver request and shall provide persons who may have such suitable tank vessels an opportunity to indicate to the requester and the Secretary the particulars of available tank vessels or tank vessel capacity not requiring a waiver under this section. (c) Limitations.-- (1) Capacity of tank vessel.--The Secretary may not grant a waiver under subsection (a) for a self-propelled tank [[Page 116 STAT. 2101]] vessel that has substantially greater capacity than the vessel described in subsection (b)(1). (2) Maximum duration of waiver.--The Secretary may not grant a waiver under subsection (a) for a period prior to, or extending more than 48 months after, the original contract delivery date of the vessel described in subsection (b)(1). (3) Maximum number of waivers.--The Secretary may grant waivers under subsection (a) for not more than 3 self-propelled tank vessels. (d) Determination of Waiver.-- (1) In general.--A waiver grant under subsection (a) shall terminate on the earlier of-- (A) the date established by the Secretary as its expiration date under subsection (c)(2); or (B) the date that is 60 days after the day on which the vessel described in subsection (b)(1) is delivered. (2) Termination for intentional delay.--The Secretary may terminate a waiver granted under subsection (a) at any time if the Secretary determines that the delay in the construction or delivery of the vessel described in subsection (b)(1) is no longer due to unusual circumstances. (e) Suspension of Waiver.--The Secretary may suspend a waiver granted under subsection (a) for any period of time if the Secretary determines that a suitable tank vessel, or suitable tank vessel capacity, that would not require such a waiver is reasonably available to the person requesting the waiver. (f) Contracted-for Vessel Delivery.--If the Secretary grants a waiver under subsection (a), the shipyard constructing the vessel described in subsection (b)(1) shall deliver the vessel, constructed in accordance with the terms of the contract, as soon as practicable after the delivery date established by the contract. (g) Unusual Circumstances Defined.--In this section, the term ``unusual circumstances'' means bankruptcy of the shipyard or Acts of God (other than ordinary storms or inclement weather conditions), labor strikes, acts of sabotage, explosions, fires, or vandalism, and similar circumstances beyond the control of the parties to the contract which prevent commencement of construction, or timely delivery or completion, of a vessel. SEC. 215. REALIGNMENT OF POLICY RESPONSIBILITY IN THE DEPARTMENT OF TRANSPORTATION. (a) In General.--Section 102 of title 49, United States Code, is amended by-- (1) redesignating subsection (d) as subsection (g), and moving such subsection to appear after subsection (f); (2) inserting after subsection (c) the following: ``(d) The Department has an Under Secretary of Transportation for Policy appointed by the President, by and with the advice and consent of the Senate. The Under Secretary shall provide leadership in the development of policy for the Department, supervise the policy activities of Assistant Secretaries with primary responsibility for aviation, international, and other transportation policy development and carry out other powers and duties prescribed by the Secretary. The Under Secretary acts for the Secretary when the Secretary and the Deputy Secretary are absent or unable to serve, or when the offices of Secretary and Deputy Secretary are vacant.''; and [[Page 116 STAT. 2102]] (3) by striking ``Secretary and the Deputy Secretary'' each place it appears in the last sentence of subsection (e), and inserting ``Secretary, Deputy Secretary, and Under Secretary of Transportation for Policy''. (b) Position in Executive Service.--Section 5313 of title 5, United States Code, is amended by adding at the end the following: ``Under Secretary of Transportation for Policy.''. (c) <<NOTE: 49 USC 102 note.>> Conforming Amendment.--Section 102 of title 49, United States Code, is further amended by striking subsection (g), as redesignated by subsection (a)(1), on the date that an individual is appointed to the position of Under Secretary of Transportation for Policy under subsection (d) of such section, as added by subsection (a)(2) of this section. TITLE III-- <<NOTE: Coast Guard Personnel and Maritime Safety Act of 2002.>> COAST GUARD PERSONNEL AND MARITIME SAFETY SEC. 301. SHORT TITLE. <<NOTE: 14 USC 1 note.>> This title may be cited as the ``Coast Guard Personnel and Maritime Safety Act of 2002''. Subtitle A--Personnel Management SEC. 311. COAST GUARD BAND DIRECTOR RANK. Section 336(d) of title 14, United States Code, is amended by striking ``commander'' and inserting ``captain''. SEC. 312. COMPENSATORY ABSENCE FOR ISOLATED DUTY. (a) In General.--Section 511 of title 14, United States Code, is amended to read as follows: ``Sec. 511. Compensatory absence from duty for military personnel at isolated duty stations ``The Secretary may grant compensatory absence from duty to military personnel of the Coast Guard serving at isolated duty stations of the Coast Guard when conditions of duty result in confinement because of isolation or in long periods of continuous duty.''. (b) Clerical Amendment.--The table of sections for chapter 13 of title 14, United States Code, is amended by striking the item relating to section 511 and inserting the following: ``511. Compensatory absence from duty for military personnel at isolated duty stations.''. SEC. 313. ACCELERATED PROMOTION OF CERTAIN COAST GUARD OFFICERS. Title 14, United States Code, is amended-- (1) in section 259, by adding at the end the following: ``(c)(1) After selecting the officers to be recommended for promotion, a selection board may recommend officers of particular merit, from among those officers chosen for promotion, to be placed at the top of the list of selectees promulgated by the Secretary under section 271(a) of this title. The number of officers that a board may recommend to be placed at the top of the list of selectees may not exceed the percentages set forth in subsection (b) unless [[Page 116 STAT. 2103]] such a percentage is a number less than one, in which case the board may recommend one officer for such placement. No officer may be recommended to be placed at the top of the list of selectees unless he or she receives the recommendation of at least a majority of the members of a board composed of five members, or at least two-thirds of the members of a board composed of more than five members. ``(2) The Secretary shall conduct a survey of the Coast Guard officer corps to determine if implementation of this subsection will improve Coast Guard officer retention. A selection board may not make any recommendation under this subsection before the date on which the Secretary publishes a finding, based upon the results of the survey, that implementation of this subsection will improve Coast Guard officer retention. ``(3) The Secretary shall submit any finding made by the Secretary pursuant to paragraph (2) to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.''; (2) in section 260(a), by inserting ``and the names of those officers recommended to be advanced to the top of the list of selectees established by the Secretary under section 271(a) of this title'' after ``promotion''; and (3) in section 271(a), by inserting at the end the following: ``The names of all officers approved by the President and recommended by the board to be placed at the top of the list of selectees shall be placed at the top of the list of selectees in the order of seniority on the active duty promotion list.''. Subtitle B--Marine Safety SEC. 321. EXTENSION OF TERRITORIAL SEA FOR VESSEL BRIDGE-TO-BRIDGE RADIOTELEPHONE ACT. Section 4(b) of the Vessel Bridge-to-Bridge Radiotelephone Act (33 U.S.C. 1203(b)), is amended by striking ``United States inside the lines established pursuant to section 2 of the Act of February 19, 1895 (28 Stat. 672), as amended.'' and inserting ``United States, which includes all waters of the territorial sea of the United States as described in Presidential Proclamation 5928 of December 27, 1988.''. SEC. 322. MODIFICATION OF VARIOUS REPORTING REQUIREMENTS. (a) <<NOTE: 26 USC 9509 note.>> Termination of Oil Spill Liability Trust Fund Annual Report.--The report regarding the Oil Spill Liability Trust Fund required by the Conference Report (House Report 101-892) accompanying the Department of Transportation and Related Agencies Appropriations Act, 1991, as that requirement was amended by section 1122 of the Federal Reports Elimination and Sunset Act of 1995 (Public Law 104-66), shall no longer be submitted to the Congress. (b) <<NOTE: 31 USC 1113 note.>> Preservation of Certain Reporting Requirements.--Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) does not apply to any report required to be submitted under any of the following provisions of law: [[Page 116 STAT. 2104]] (1) Coast guard operations and expenditures.--Section 651 of title 14, United States Code. (2) Summary of marine casualties reported during prior fiscal year.--Section 6307(c) of title 46, United States Code. (3) User fee activities and amounts.--Section 664 of title 46, United States Code. (4) Conditions of public ports of the united states.-- Section 308(c) of title 49, United States Code. (5) Activities of federal maritime commission.--Section 208 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1118). (6) Activities of interagency coordinating committee on oil pollution research.--Section 7001(e) of the Oil Pollution Act of 1990 (33 U.S.C. 2761(e)). SEC. 323. OIL SPILL LIABILITY TRUST FUND; EMERGENCY FUND ADVANCEMENT AUTHORITY. Section 6002(b) of the Oil Pollution Act of 1990 (33 U.S.C. 2752(b)) is amended by inserting after the first sentence the following: ``To the extent that such amount is not adequate, the Coast Guard may obtain an advance from the Fund of such sums as may be necessary, up to a maximum of $100,000,000, and within 30 days shall notify Congress of the amount advanced and the facts and circumstances necessitating the advance. Amounts advanced shall be repaid to the Fund when, and to the extent that, removal costs are recovered by the Coast Guard from responsible parties for the discharge or substantial threat of discharge.''. SEC. 324. MERCHANT MARINER DOCUMENTATION REQUIREMENTS. (a) Interim Merchant Mariners' Documents.--Section 7302 of title 46, United States Code, is amended-- (1) by striking ``A'' in subsection (f) and inserting ``Except as provided in subsection (g), a''; and (2) by adding at the end the following: ``(g)(1) The Secretary may, pending receipt and review of information required under subsections (c) and (d), immediately issue an interim merchant mariner's document valid for a period not to exceed 120 days, to-- ``(A) an individual to be employed as gaming personnel, entertainment personnel, wait staff, or other service personnel on board a passenger vessel not engaged in foreign service, with no duties, including emergency duties, related to the navigation of the vessel or the safety of the vessel, its crew, cargo or passengers; or ``(B) an individual seeking renewal of, or qualifying for a supplemental endorsement to, a valid merchant mariner's document issued under this section. ``(2) No more than one interim document may be issued to an individual under paragraph (1)(A) of this subsection.''. (b) Exception.--Section 8701(a) of title 46, United States Code, is amended-- (1) by striking ``and'' after the semicolon in paragraph (8); (2) by redesignating paragraph (9) as paragraph (10); and (3) by inserting after paragraph (8) the following: ``(9) a passenger vessel not engaged in a foreign voyage with respect to individuals on board employed for a period of not more than 30 service days within a 12 month period [[Page 116 STAT. 2105]] as entertainment personnel, with no duties, including emergency duties, related to the navigation of the vessel or the safety of the vessel, its crew, cargo or passengers; and''. SEC. 325. PENALTIES FOR NEGLIGENT OPERATIONS AND INTERFERING WITH SAFE OPERATION. Section 2302(a) of title 46, United States Code, is amended by striking ``$1,000.'' and inserting ``$5,000 in the case of a recreational vessel, or $25,000 in the case of any other vessel.''. Subtitle C--Renewal of Advisory Groups SEC. 331. COMMERCIAL FISHING INDUSTRY VESSEL ADVISORY COMMITTEE. (a) Commercial Fishing Industry Vessel Advisory Committee.--Section 4508 of title 46, United States Code, is amended-- (1) by inserting ``Safety'' in the section heading after ``Vessel''; (2) by inserting ``Safety'' in subsection (a) after ``Vessel''; (3) by striking ``(5 App. U.S.C. 1 et seq.)'' in subsection (e)(1) and inserting ``(5 App. U.S.C.)''; and (4) by striking ``on September 30, 2000'' in subsection (e)(1) and inserting ``on September 30, 2005''. (b) Conforming Amendment.--The table of sections for chapter 45 of title 46, United States Code, is amended by striking the item relating to section 4508 and inserting the following: ``4508. Commercial Fishing Industry Vessel Safety Advisory Committee.''. SEC. 332. HOUSTON-GALVESTON NAVIGATION SAFETY ADVISORY COMMITTEE. Section 18(h) of the Coast Guard Authorization Act of 1991 (Public Law 102-241) is amended by striking ``September 30, 2000.'' and inserting ``September 30, 2005.''. SEC. 333. LOWER MISSISSIPPI RIVER WATERWAY ADVISORY COMMITTEE. Section 19(g) of the Coast Guard Authorization Act of 1991 (Public Law 102-241) is amended by striking ``September 30, 2000'' and inserting ``September 30, 2005''. SEC. 334. NAVIGATION SAFETY ADVISORY COUNCIL. Section 5(d) of the Inland Navigational Rules Act of 1980 (33 U.S.C. 2073) is amended by striking ``September 30, 2000'' and inserting ``September 30, 2005''. SEC. 335. NATIONAL BOATING SAFETY ADVISORY COUNCIL. Section 13110(e) of title 46, United States Code, is amended by striking ``September 30, 2000'' and inserting ``September 30, 2005''. SEC. 336. TOWING SAFETY ADVISORY COMMITTEE. The Act entitled ``An Act to establish a Towing Safety Advisory Committee in the Department of Transportation'' approved October 6, 1980 (33 U.S.C. 1231a), is amended by striking ``September 30, 2000.'' in subsection (e) and inserting ``September 30, 2005.''. [[Page 116 STAT. 2106]] Subtitle D--Miscellaneous SEC. 341. PATROL CRAFT. Notwithstanding any other provision of law, the Secretary of the department in which the Coast Guard is operating may accept, by direct transfer without cost, for use by the Coast Guard primarily for expanded drug interdiction activities required to meet national supply reduction performance goals, up to 7 PC-170 patrol craft from the Department of Defense if it offers to transfer such craft. SEC. 342. BOATING SAFETY. (a) General State Revenue Definition.--For fiscal year 2003, the term ``general State revenue'' in section 13102(a)(3) of title 46, United States Code, includes any amounts expended for the State's recreational boating safety program by a State agency, a public corporation established under State law, or any other State instrumentality, as determined by the Secretary of the department in which the Coast Guard is operating. (b) Funding.--For fiscal year 2003, the amount available for recreational boating safety under section 4(b)(3) of the Act of August 9, 1950 (16 U.S.C. 777c(b)(3)), is $83,000,000. SEC. 343. CARIBBEAN SUPPORT TENDER. (a) In General.--The Coast Guard is authorized to operate and maintain a Caribbean Support Tender (or similar type vessel) to provide technical assistance, including law enforcement training, for foreign coast guards, navies, and other maritime services. (b) Medical and Dental Care.--(1) The Commandant may provide medical and dental care to foreign military Caribbean Support Tender personnel and their dependents accompanying them in the United States-- (A) on an outpatient basis without cost; and (B) on an inpatient basis if the United States is reimbursed for the costs of providing such care. Payments received as reimbursement for the provision of such care shall be credited to the appropriations against which the charges were made for the provision of such care. (2) Notwithstanding paragraph (1)(B), the Commandant may provide inpatient medical and dental care in the United States without cost to foreign military Caribbean Support Tender personnel and their dependents accompanying them in the United States if comparable care is made available to a comparable number of United States military personnel in that foreign country. SEC. 344. PROHIBITION OF NEW MARITIME USER FEES. Section 2110(k) of title 46, United States Code, is amended by striking ``2001'' and inserting ``2006''. SEC. 345. GREAT LAKES LIGHTHOUSES. <<NOTE: 14 USC 92 note.>> (a) Findings.--The Congress finds the following: (1) The Great Lakes are home to more than 400 lighthouses. One hundred and twenty of these maritime landmarks are in the State of Michigan. (2) Lighthouses are an important part of Great Lakes culture and stand as a testament to the importance of shipping in the region's political, economic, and social history. [[Page 116 STAT. 2107]] (3) Advances in navigation technology have made many Great Lakes lighthouses obsolete. In Michigan alone, approximately 70 lighthouses will be designated as excess property of the Federal Government and will be transferred to the General Services Administration for disposal. (4) Unfortunately, the Federal property disposal process is confusing, complicated, and not well-suited to disposal of historic lighthouses or to facilitate transfers to nonprofit organizations. This is especially troubling because, in many cases, local nonprofit historical organizations have dedicated tremendous resources to preserving and maintaining Great Lakes lighthouses. (5) If Great Lakes lighthouses disappear, the public will be unaware of an important chapter in Great Lakes history. (6) The National Trust for Historic Preservation has placed Michigan lighthouses on their list of Most Endangered Historic Places. (b) Assistance for Great Lakes Lighthouse Preservation Efforts.--The Secretary of the department in which the Coast Guard is operating, may-- (1) continue to offer advice and technical assistance to organizations in the Great Lakes region that are dedicated to lighthouse stewardship; and (2) promptly release information regarding the timing of designations of Coast Guard lighthouses on the Great Lakes as excess to the needs of the Coast Guard, to enable those organizations to mobilize and be prepared to take appropriate action with respect to the disposal of those properties. SEC. 346. <<NOTE: 14 USC 88 note.>> MODERNIZATION OF NATIONAL DISTRESS AND RESPONSE SYSTEM. (a) Report.-- <<NOTE: Deadline.>> The Secretary of the department in which the Coast Guard is operating shall prepare a status report on the modernization of the National Distress and Response System and transmit the report, not later than 60 days after the date of enactment of this Act and annually thereafter until completion of the project, to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives. (b) Contents.--The report required by subsection (a) shall-- (1) set forth the scope of the modernization, the schedule for completion of the System, and information on progress in meeting the schedule and on any anticipated delays; (2) specify the funding expended to-date on the System, the funding required to complete the System, and the purposes for which the funds were or will be expended; (3) describe and map the existing public and private communications coverage throughout the waters of the coastal and internal regions of the continental United States, Alaska, Hawaii, Guam, and the Caribbean, and identify locations that possess direction-finding, asset-tracking communications, and digital selective calling service; (4) identify areas of high risk to boaters and Coast Guard personnel due to communications gaps; (5) specify steps taken by the Secretary to fill existing gaps in coverage, including obtaining direction-finding equipment, digital recording systems, asset-tracking communications, [[Page 116 STAT. 2108]] use of commercial VHF services, and digital selective calling services that meet or exceed Global Maritime Distress and Safety System requirements adopted under the International Convention for the Safety of Life at Sea; (6) identify the number of VHF-FM radios equipped with digital selective calling sold to United States boaters; (7) list all reported marine accidents, casualties, and fatalities occurring in areas with existing communications gaps or failures, including incidents associated with gaps in VHF-FM coverage or digital selected calling capabilities and failures associated with inadequate communications equipment aboard the involved vessels during calendar years 1997 and thereafter; (8) identify existing systems available to close all identified marine safety gaps before January 1, 2003, including expeditious receipt and response by appropriate Coast Guard operations centers to VHF-FM digital selective calling distress signal; and (9) identify actions taken to-date to implement the recommendations of the National Transportation Safety Board in its Report No. MAR-99-01. SEC. 347. CONVEYANCE OF COAST GUARD PROPERTY IN PORTLAND, MAINE. (a) Authority To Convey.-- (1) In general.--The Secretary of the department in which the Coast Guard is operating, or a designee of the Secretary, may convey to the Gulf of Maine Aquarium Development Corporation, its successors and assigns, without payment for consideration, all right, title, and interest of the United States in and to approximately 4.13 acres of land, including a pier and bulkhead, known as the Naval Reserve Pier property, together with any improvements thereon in their then current condition, located in Portland, Maine. All conditions placed with the deed of title shall be construed as covenants running with the land. (2) Identification of property.--The Secretary, in consultation with the Commandant of the Coast Guard, may identify, describe, and determine the property to be conveyed under this section. The floating docks associated with or attached to the Naval Reserve Pier property shall remain the personal property of the United States. (b) Lease to the United States.-- (1) Condition of conveyance.--The Naval Reserve Pier property shall not be conveyed until the Corporation enters into a lease agreement with the United States, the terms of which are mutually satisfactory to the Commandant and the Corporation, in which the Corporation shall lease a portion of the Naval Reserve Pier property to the United States for a term of 30 years without payment of consideration. The lease agreement shall be executed within 12 months after the date of enactment of this Act. (2) Identification of leased premises.--The Secretary, in consultation with the Commandant, may identify and describe the leased premises and rights of access, including the following, in order to allow the Coast Guard to operate and perform missions from and upon the leased premises: [[Page 116 STAT. 2109]] (A) The right of ingress and egress over the Naval Reserve Pier property, including the pier and bulkhead, at any time, without notice, for purposes of access to Coast Guard vessels and performance of Coast Guard missions and other mission-related activities. (B) The right to berth Coast Guard cutters or other vessels as required in the moorings along the east side of the Naval Reserve Pier property and the right to attach floating docks which shall be owned and maintained at the United States sole cost and expense. (C) The right to operate, maintain, remove, relocate, or replace an aid to navigation located upon, or to install any aid to navigation upon, the Naval Reserve Pier property as the Coast Guard, in its sole discretion, may determine is needed for navigational purposes. (D) The right to occupy up to 3,000 contiguous gross square feet at the Naval Reserve Pier property for storage and office space, which will be provided and constructed by the Corporation, at the Corporation's sole cost and expense, and which will be maintained, and utilities and other operating expenses paid for, by the United States at its sole cost and expense. (E) The right to occupy up to 1,200 contiguous gross square feet of offsite storage in a location other than the Naval Reserve Pier property, which will be provided by the Corporation at the Corporation's sole cost and expense, and which will be maintained, and utilities and other operating expenses paid for, by the United States at its sole cost and expense. (F) The right for Coast Guard personnel to park up to 60 vehicles, at no expense to the Government, in the Corporation's parking spaces on the Naval Reserve Pier property or in parking spaces that the Corporation may secure within 1,000 feet of the Naval Reserve Pier property or within 1,000 feet of the Coast Guard Marine Safety Office Portland. Spaces for no less than 30 vehicles shall be located on the Naval Reserve Pier property. (3) Renewal.--The lease described in paragraph (1) may be renewed, at the sole option of the United States, for additional lease terms. (4) Limitation on subleases.--The United States may not sublease the leased premises to a third party or use the leased premises for purposes other than fulfilling the missions of the Coast Guard and for other mission related activities. (5) Termination.--In the event that the Coast Guard ceases to use the leased premises, the Secretary, in consultation with the Commandant, may terminate the lease with the Corporation. (c) Improvement of Leased Premises.-- (1) In general.--The Naval Reserve Pier property shall not be conveyed until the Corporation enters into an agreement with the United States, subject to the Commandant's design specifications, project's schedule, and final project approval, to replace the bulkhead and pier which connects to, and provides access from, the bulkhead to the floating docks, at the Corporation's sole cost and expense, on the east side of the Naval Reserve Pier property within 30 months from the date [[Page 116 STAT. 2110]] of conveyance. The agreement to improve the leased premises shall be executed within 12 months after the date of enactment of this Act. (2) Further improvements.--In addition to the improvements described in paragraph (1), the Commandant may further improve the leased premises during the lease term, at the United States sole cost and expense. (d) Utility Installation and Maintenance Obligations.-- (1) Utilities.--The Naval Reserve Pier property shall not be conveyed until the Corporation enters into an agreement with the United States to allow the United States to operate and maintain existing utility lines and related equipment, at the United States sole cost and expense. At such time as the Corporation constructs its proposed public aquarium, the Corporation shall replace existing utility lines and related equipment and provide additional utility lines and equipment capable of supporting a third 110-foot Coast Guard cutter, with comparable, new, code compliant utility lines and equipment at the Corporation's sole cost and expense, maintain such utility lines and related equipment from an agreed upon demarcation point, and make such utility lines and equipment available for use by the United States, if the United States pays for its use of utilities at its sole cost and expense. The agreement concerning the operation and maintenance of utility lines and equipment shall be executed within 12 months after the date of enactment of this Act. (2) Maintenance.--The Naval Reserve Pier property shall not be conveyed until the Corporation enters into an agreement with the United States to maintain, at the Corporation's sole cost and expense, the replacement bulkhead and pier on the east side of the Naval Reserve Pier property. The agreement concerning the maintenance of the bulkhead and pier shall be executed within 12 months after the date of enactment of this Act. (3) Aids to navigation.--The United States shall be required to maintain, at its sole cost and expense, any Coast Guard active aid to navigation located upon the Naval Reserve Pier property. (e) Additional Rights.--The conveyance of the Naval Reserve Pier property shall be made subject to conditions the Secretary considers necessary to ensure that-- (1) the Corporation shall not interfere or allow interference, in any manner, with use of the leased premises by the United States; and (2) the Corporation shall not interfere or allow interference, in any manner, with any aid to navigation nor hinder activities required for the operation and maintenance of any aid to navigation, without the express written permission of the head of the agency responsible for operating and maintaining the aid to navigation. (f) Remedies and Reversionary Interest.--The Naval Reserve Pier property, at the option of the Secretary, shall revert to the United States and be placed under the administrative control of the Secretary, if, and only if, the Corporation fails to abide by any of the terms of this section or any agreement entered into under subsection (b), (c), or (d) of this section. [[Page 116 STAT. 2111]] (g) Liability of the Parties.--The liability of the United States and the Corporation for any injury, death, or damage to or loss of property occurring on the leased property shall be determined with reference to existing State or Federal law, as appropriate, and any such liability may not be modified or enlarged by this title or any agreement of the parties. (h) Expiration of Authority To Convey.--The authority to convey the Naval Reserve property under this section shall expire 3 years after the date of enactment of this Act. (i) Definitions.--In this section, the following definitions apply: (1) Aid to navigation.--The term ``aid to navigation'' means equipment used for navigational purposes, including a light, antenna, sound signal, electronic navigation equipment, cameras, sensors power source, or other related equipment which are operated or maintained by the United States. (2) Corporation.--The term ``Corporation'' means the Gulf of Maine Aquarium Development Corporation, its successors and assigns. SEC. 348. ADDITIONAL COAST GUARD FUNDING NEEDS AFTER SEPTEMBER 11, 2001. (a) In General.-- <<NOTE: Deadline. Reports.>> No later than 90 days after the date of enactment of this Act, the Secretary of the department in which the Coast Guard is operating shall submit a report to the Congress that-- (1) compares Coast Guard expenditures by mission area on an annualized basis before and after the terrorist attacks of September 11, 2001; (2) estimates-- (A) annual funding amounts and personnel levels that would restore all Coast Guard mission areas to the readiness levels that existed before September 11, 2001; (B) annual funding amounts and personnel levels required to fulfill the Coast Guard's additional responsibilities for port security after September 11, 2001; and (C) annual funding amounts and personnel levels required to increase law enforcement needs in mission areas other than port security after September 11, 2001; (3) generally describes the services provided by the Coast Guard to the Department of Defense after September 11, 2001, and states the cost of such services; and (4) identifies the Federal agency providing funds for those services. (b) Report Required.--Not later than 180 days after the date of enactment of this Act, the Commandant of the Coast Guard shall submit a report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate identifying mission targets for each Coast Guard mission for fiscal years 2003, 2004, and 2005 and the specific steps necessary to achieve those targets. The Inspector General of the department in which the Coast Guard is operating shall review the final strategic plan and provide an independent report with its views to the Committees within 90 days after the plan has been submitted by the Secretary. SEC. 349. MISCELLANEOUS CONVEYANCES. (a) Authority To Convey.-- [[Page 116 STAT. 2112]] (1) In general.--The Secretary of the department in which the Coast Guard is operating may convey, by an appropriate means of conveyance, all right, title, and interest of the United States in and to each of the following properties: (A) Coast Guard Slip Point Light Station, located in Clallam County, Washington, to Clallam County, Washington. (B) The parcel of land on which is situated the Point Pinos Light, located in Monterey County, California, to the city of Pacific Grove, California. (2) Identification of property.--The Secretary may identify, describe, and determine the property to be conveyed under this subsection. (3) Limitation.--The Secretary may not under this section convey-- (A) any historical artifact, including any lens or lantern, located on the property at or before the time of the conveyance; or (B) any interest in submerged land. (b) General Terms and Conditions.-- (1) In general.--Each conveyance of property under this section shall be made-- (A) without payment of consideration; and (B) subject to the terms and conditions required by this section and other terms and conditions the Secretary may consider appropriate, including the reservation of easements and other rights on behalf of the United States. (2) Reversionary interest.--In addition to any term or condition established under this section, each conveyance of property under this section shall be subject to the condition that all right, title, and interest in the property shall immediately revert to the United States if-- (A) the property, or any part of the property-- (i) ceases to be available and accessible to the public, on a reasonable basis, for educational, park, recreational, cultural, historic preservation, or other similar purposes specified for the property in the terms of conveyance; (ii) ceases to be maintained in a manner that is consistent with its present or future use as a site for Coast Guard aids to navigation or compliance with this section; or (iii) ceases to be maintained in a manner consistent with the conditions in paragraph (4) established by the Secretary pursuant to the National Historic Preservation Act (16 U.S.C. 470 et seq.); or (B) at least 30 days before that reversion, the Secretary provides written notice to the owner that the property is needed for national security purposes. (3) Maintenance of navigation functions.--Each conveyance of property under this section shall be made subject to the conditions that the Secretary considers to be necessary to assure that-- (A) the lights, antennas, and associated equipment located on the property conveyed that are active aids to navigation shall continue to be operated and maintained [[Page 116 STAT. 2113]] by the United States for as long as they are needed for this purpose; (B) the owner of the property may not interfere or allow interference in any manner with aids to navigation without express written permission from the Commandant of the Coast Guard; (C) there is reserved to the United States the right to relocate, replace, or add any aid to navigation or make any changes to the property conveyed as may be necessary for navigational purposes; (D) the United States shall have the right, at any time, to enter the property without notice for the purpose of operating, maintaining, and inspecting aids to navigation and for the purpose of enforcing compliance with this subsection; and (E) the United States shall have an easement of access to and across the property for the purpose of maintaining the aids to navigation in use on the property. (4) Maintenance of property.--(A) Subject to subparagraph (B), the owner of a property conveyed under this section shall maintain the property in a proper, substantial, and workmanlike manner, and in accordance with any conditions established by the conveying authority pursuant to the National Historic Preservation Act (16 U.S.C. 470 et seq.) and other applicable laws. (B) The owner of a property conveyed under this section is not required to maintain any active aid to navigation equipment on the property, except private aids to navigation permitted under section 83 of title 14, United States Code. (c) Special Terms and Conditions.--The Secretary may retain all right, title, and interest of the United States in and to any portion of any parcel referred to in subsection (a)(1)(B) that the Secretary considers appropriate. (d) Definitions.--In this section, the following definitions apply: (1) Aids to navigation.--The term ``aids to navigation'' means equipment used for navigation purposes, including a light, antenna, radio, sound signal, electronic navigation equipment, or other associated equipment which are operated or maintained by the United States. (2) Owner.--The term ``owner'' means, for a property conveyed under this section, the person identified in subsection (a)(1) of the property and includes any successor or assign of that person. TITLE IV-- <<NOTE: Omnibus Maritime and Coast Guard Improvements Act of 2002.>> OMNIBUS MARITIME IMPROVEMENTS SEC. 401. SHORT TITLE. <<NOTE: 14 USC 1 note.>> This title may be cited as the ``Omnibus Maritime and Coast Guard Improvements Act of 2002''. SEC. 402. EXTENSION OF COAST GUARD HOUSING AUTHORITIES. (a) Housing Contractors.--Section 681(a) of title 14, United States Code, is amended by inserting ``, including a small business [[Page 116 STAT. 2114]] concern qualified under section 8(a) of the Small Business Act (15 U.S.C. 637(a)),'' after ``private persons''. (b) Budget Authority Limitation.--Section 687(f) of title 14, United States Code, is amended by striking ``$20,000,000'' and inserting ``$40,000,000''. (c) Demonstration Project.--Section 687 of title 14, United States Code, is amended by adding at the end the following: ``(g) Demonstration Project Authorized.--To promote efficiencies through the use of alternative procedures for expediting new housing projects, the Secretary-- ``(1) may develop and implement a demonstration project for acquisition or construction of military family housing and military unaccompanied housing on or near the Coast Guard installation at Kodiak, Alaska; ``(2) in implementing the demonstration project, shall utilize, to the maximum extent possible, the contracting authority of the Small Business Administration's section 8(a) program; ``(3) shall, to the maximum extent possible, acquire or construct such housing through contracts with small business concerns qualified under section 8(a) of the Small Business Act (15 U.S.C. 637(a)) that have their principal place of business in the State of Alaska; and ``(4) shall report to Congress by September 1 of each year on the progress of activities under the demonstration project.''. (d) Extension.--Section 689 of title 14, United States Code, is amended by striking ``2001'' and inserting ``2007''. SEC. 403. <<NOTE: 46 USC 12119 note.>> INVENTORY OF VESSELS FOR CABLE LAYING, MAINTENANCE, AND REPAIR. (a) Inventory.--The Secretary of Transportation shall develop, maintain, and periodically update an inventory of vessels that are documented under chapter 121 of title 46, United States Code, are 200 feet or more in length, and have the capability to lay, maintain, or repair a submarine cable, without regard to whether a particular vessel is classified as a cable ship or cable vessel. (b) Vessel information.--For each vessel listed in the inventory, the Secretary shall include in the inventory-- (1) the name, length, beam, depth, and other distinguishing characteristics of the vessel; (2) the abilities and limitations of the vessel with respect to the laying, maintaining, and repairing of a submarine cable; and (3) the name and address of the person to whom inquiries regarding the vessel may be made. (c) Publication.--The Secretary shall-- (1) not <<NOTE: Deadline. Federal Register, publication.>> later than 60 days after the date of enactment of this Act, publish in the Federal Register a current inventory developed under subsection (a); and (2) <<NOTE: Federal Register, publication.>> every 6 months thereafter, publish in the Federal Register an updated inventory. SEC. 404. <<NOTE: 46 USC app. 316a.>> VESSEL ESCORT OPERATIONS AND TOWING ASSISTANCE. (a) In General.--Except in the case of a vessel in distress, only a vessel of the United States (as that term is defined in section 2101 of title 46, United States Code) may perform the following escort vessel operations within the navigable waters of the United States: [[Page 116 STAT. 2115]] (1) Operations that commence or terminate at a port or place in the United States. (2) Operations required by United States law or regulation. (3) Operations provided in whole or in part within or through navigation facilities owned, maintained, or operated by the United States Government or the approaches to those facilities, other than facilities operated by the St. Lawrence Seaway Development Corporation on the St. Lawrence River portion of the Seaway. (b) Addition to Towing Vessel.--In the case of a vessel being towed under section 4370 of the Revised Statutes of the United States (46 App. U.S.C. 316(a)), an escort vessel is any vessel assigned and dedicated to the vessel being towed in addition to any towing vessel required under that section. (c) Relationship to Other Law.--Nothing in this section shall affect or be construed or interpreted to affect or modify section 4370 of the Revised Statutes of the United States (46 U.S.C. 316(a)). (d) Definition.--In this section, the term ``escort vessel'' means any vessel that is assigned and dedicated to assist another vessel, whether or not tethered to that vessel, solely as a safety precaution to assist in controlling the speed or course of the assisted vessel in the event of a steering or propulsion equipment failure, or any other similar emergency circumstance, or in restricted waters where additional assistance in maneuvering the vessel is required to ensure its safe operation. (e) Penalty.--A person violating this section is liable to the United States Government for a civil penalty of not more than $10,000 for each day during which the violation occurs. SEC. 405. SEARCH AND RESCUE CENTER STANDARDS. (a) In General.--Title 14, United States Code, is amended-- (1) by redesignating the second section 673 and section 674 in order as sections 674 and 675; and (2) by adding at the end of chapter 17 the following: ``Sec. 676. Search and rescue center standards ``(a) The Secretary shall establish, implement, and maintain the minimum standards necessary for the safe operation of all Coast Guard search and rescue center facilities, including with respect to the following: ``(1) The lighting, acoustics, and temperature in the facilities. ``(2) The number of individuals on a shift in the facility assigned search and rescue responsibilities (including communications), which may be adjusted based on seasonal workload. ``(3) The length of time an individual may serve on watch to minimize fatigue, based on the best scientific information available. ``(4) The scheduling of individuals having search and rescue responsibilities to minimize fatigue of the individual when on duty in the facility. ``(5) The workload of each individual engaged in search and rescue responsibilities in the facility. ``(6) Stress management for the individuals assigned search and rescue responsibilities in the facilities. ``(7) The design of equipment and facilities to minimize fatigue and enhance search and rescue operations. [[Page 116 STAT. 2116]] ``(8) The acquisition and maintenance of interim search and rescue command center communications equipment. ``(9) Any other requirements that the Secretary believes will increase the safe operation of the search and rescue centers. ``(b) Sense of Congress.--It is the sense of the Congress that the Secretary should establish, implement, and maintain minimum standards necessary to ensure that an individual on duty or watch in a Coast Guard search and rescue command center facility does not work more than 12 hours in a 24-hour period, except in an emergency or unforeseen circumstances. ``(c) Definition.--For the purposes of this section, the term `search and rescue center facility' means a Coast Guard shore facility that maintains a search and rescue mission coordination and communications watch. ``(d) Report to Congress.--The Secretary shall provide a quarterly written report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure, describing the status of implementation of the standards described in subsection (b), including a list of the facilities at which such standards have or have not been implemented.''. (b) <<NOTE: 14 USC 676 note.>> Prescription of Standards.--The Secretary shall prescribe the standards required under section 675(a) of title 14, United States Code, as enacted by subsection (a) of this section, before January 1, 2003. (c) Clerical Amendment.--The table of sections for chapter 17 of title 14, United States Code, is amended by striking the second item relating to a section 673 and the item relating to a section 674 and inserting the following: ``674. Small boat station capability. ``675. Small boat station closures. ``676. Search and rescue center standards.''. SEC. 406. VHF COMMUNICATIONS SERVICES. <<NOTE: 14 USC 92 note.>> (a) The Secretary of the department in which the Coast Guard is operating may authorize a person providing commercial VHF communications services to place commercial VHF communications equipment on real property under the administrative control of the Coast Guard (including towers) subject to any terms agreed to by the parties. The Secretary and that commercial VHF communications service provider also may enter into an agreement providing for VHF communications services to the Coast Guard (including digital selective calling and radio direction finding services) at a discounted rate or price based on providing such access to real property under the administrative control of the Coast Guard. (b) Commercial VHF communication equipment placed on real property under the administrative control of the Coast Guard under this section shall not interfere in any manner with any current or future Coast Guard communication equipment. (c) Nothing in this section shall affect the rights or obligations of the United States under section 704(c) of the Telecommunications Act of 1996 (47 U.S.C. 332 note) with respect to the availability of property or under section 359(d) of the Communications Act of 1934 (47 U.S.C. 357(d)) with respect to charges for transmission of distress messages. [[Page 116 STAT. 2117]] SEC. 407. LOWER COLUMBIA RIVER MARITIME FIRE AND SAFETY ACTIVITIES. There is authorized to be appropriated to the Secretary of the department in which the Coast Guard is operating $987,400 for fire, oil, and toxic spill response communications, training, equipment, and program administration activities conducted by nonprofit organizations that act in cooperation with the Coast Guard, to remain available until expended. Organizations receiving appropriated funds must have a multiyear record of spill and marine fire response in Federal navigable waterways. Federal funds shall not exceed 25 percent of such an organization's total budget. SEC. 408. CONFORMING REFERENCES TO THE FORMER MERCHANT MARINE AND FISHERIES COMMITTEE. (a) Laws Codified in Title 14, United States Code.--(1) Sections 194(b)(2) and 194(b)(5) of title 14, United States Code, are amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (2) Section 663 of title 14, United States Code, is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (3) Section 664(c) of title 14, United States Code, is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (b) Laws Codified in Title 33, United States Code.--(1) Section 3(d)(3) of the International Navigational Rules Act of 1977 (33 U.S.C. 1602(d)(3)) is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (2) Section 5004(2) of the Oil Pollution Act of 1990 (33 U.S.C. 2734(2)) is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (c) Laws Codified in Title 46, United States Code.--(1) Section 6307(a) of title 46, United States Code, is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (2) Section 901g(b)(3) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1241k(b)(3)) is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. (3) Section 913(b) of the International Maritime and Port Security Act (46 App. U.S.C. 1809(b)) is amended by striking ``Merchant Marine and Fisheries'' and inserting ``Transportation and Infrastructure''. SEC. 409. RESTRICTION ON VESSEL DOCUMENTATION. Section 12108(a) of title 46, United States Code, is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) was built in the United States;''; (2) by striking ``and'' at the end of paragraph (3); (3) by redesignating paragraph (4) as paragraph (5); and (4) by inserting after paragraph (3) the following: ``(4) was not forfeited to the United States Government after July 1, 2001, for a breach of the laws of the United States; and''. [[Page 116 STAT. 2118]] SEC. 410. HYPOTHERMIA PROTECTIVE CLOTHING REQUIREMENT. <<NOTE: 14 USC 477 note.>> The Commandant of the Coast Guard shall ensure that all Coast Guard personnel are equipped with adequate safety equipment, including hypothermia protective clothing where appropriate, while performing search and rescue missions. SEC. 411. RESERVE OFFICER PROMOTIONS. (a) Section 729(i) of title 14, United States Code, is amended by inserting ``on the date a vacancy occurs, or as soon thereafter as practicable in the grade to which the officer was selected for promotion or, if promotion was determined in accordance with a running mate system,'' after ``grade''. (b) Section 731(b) of title 14, United States Coast Code, is amended by striking the period at the end and inserting ``, or in the event that promotion is not determined in accordance with a running mate system, then a Reserve officer becomes eligible for consideration for promotion to the next higher grade at the beginning of the promotion year in which he or she completes the following amount of service computed from the date of rank in the grade in which he or she is serving: ``(1) two years in the grade of lieutenant (junior grade); ``(2) three years in the grade of lieutenant; ``(3) four years in the grade of lieutenant commander; ``(4) four years in the grade of commander; and ``(5) three years in the grade of captain.''. (c) Section 736(a) of title 14, United States Code, is amended by inserting ``the date of rank shall be the date of appointment in that grade, unless the promotion was determined in accordance with a running mate system, in which event'' after ``subchapter,''. SEC. 412. REGULAR LIEUTENANT COMMANDERS AND COMMANDERS; CONTINUATION UPON FAILURE OF SELECTION FOR PROMOTION. Section 285 of title 14, United States Code, is amended-- (1) by striking ``Each officer'' and inserting ``(a) Each officer''; and (2) by adding at the end the following: ``(b) A lieutenant commander or commander of the Regular Coast Guard subject to discharge or retirement under subsection (a) may be continued on active duty when the Secretary directs a selection board convened under section 251 of this title to continue up to a specified number of lieutenant commanders or commanders on active duty. When so directed, the selection board shall recommend those officers who in the opinion of the board are best qualified to advance the needs and efficiency of the Coast Guard. When the recommendations of the board are approved by the Secretary, the officers recommended for continuation shall be notified that they have been recommended for continuation and offered an additional term of service that fulfills the needs of the Coast Guard. ``(c)(1) An officer who holds the grade of lieutenant commander of the Regular Coast Guard may not be continued on active duty under subsection (b) for a period that extends beyond 24 years of active commissioned service unless promoted to the grade of commander of the Regular Coast Guard. An officer who holds the grade of commander of the Regular Coast Guard may not be continued on active duty under subsection (b) for a period that extends [[Page 116 STAT. 2119]] beyond 26 years of active commissioned service unless promoted to the grade of captain of the Regular Coast Guard. ``(2) Unless retired or discharged under another provision of law, each officer who is continued on active duty under subsection (b) but is not subsequently promoted or continued on active duty, and is not on a list of officers recommended for continuation or for promotion to the next higher grade, shall, if eligible for retirement under any provision of law, be retired under that law on the first day of the first month following the month in which the period of continued service is completed.''. SEC. 413. RESERVE STUDENT PRE-COMMISSIONING ASSISTANCE PROGRAM. (a) In General.--Chapter 21 of title 14, United States Code, is amended by inserting after section 709 the following new section: ``Sec. 709a. Reserve student pre-commissioning assistance program ``(a) The Secretary may provide financial assistance to an eligible enlisted member of the Coast Guard Reserve, not on active duty, for expenses of the member while the member is pursuing on a full-time basis at an institution of higher education a program of education approved by the Secretary that leads to-- ``(1) a baccalaureate degree in not more than 5 academic years; or ``(2) a post-baccalaureate degree. ``(b)(1) To be eligible for financial assistance under this section, an enlisted member of the Coast Guard Reserve shall-- ``(A) be enrolled on a full-time basis in a program of education referred to in subsection (a) at any institution of higher education; and ``(B) enter into a written agreement with the Coast Guard described in paragraph (2). ``(2) A written agreement referred to in paragraph (1)(B) is an agreement between the member and the Secretary in which the member agrees-- ``(A) to accept an appointment as a commissioned officer in the Coast Guard Reserve, if tendered; ``(B) to serve on active duty for up to five years; and ``(C) under such terms and conditions as shall be prescribed by the Secretary, to serve in the Coast Guard Reserve until the eighth anniversary of the date of the appointment. ``(c) Expenses for which financial assistance may be provided under this section are the following: ``(1) Tuition and fees charged by the institution of higher education involved. ``(2) The cost of books. ``(3) In the case of a program of education leading to a baccalaureate degree, laboratory expenses. ``(4) Such other expenses as are deemed appropriate by the Secretary. ``(d) The amount of financial assistance provided to a member under this section shall be prescribed by the Secretary, but may not exceed $25,000 for any academic year. ``(e) Financial assistance may be provided to a member under this section for up to 5 consecutive academic years. [[Page 116 STAT. 2120]] ``(f) A member who receives financial assistance under this section may be ordered to active duty in the Coast Guard Reserve by the Secretary to serve in a designated enlisted grade for such period as the Secretary prescribes, but not more than 4 years, if the member-- ``(1) completes the academic requirements of the program and refuses to accept an appointment as a commissioned officer in the Coast Guard Reserve when offered; ``(2) fails to complete the academic requirements of the institution of higher education involved; or ``(3) fails to maintain eligibility for an original appointment as a commissioned officer. ``(g)(1) If a member requests to be released from the program and the request is accepted by the Secretary, or if the member fails because of misconduct to complete the period of active duty specified, or if the member fails to fulfill any term or condition of the written agreement required to be eligible for financial assistance under this section, the financial assistance shall be terminated. The Secretary may request the member to reimburse the United States in an amount that bears the same ratio to the total costs of the education provided to that member as the unserved portion of active duty bears to the total period of active duty the member agreed to serve. The Secretary shall have the option to order such reimbursement without first ordering the member to active duty. An obligation to reimburse the United States imposed under this paragraph is a debt owed to the United States. ``(2) The Secretary may waive the service obligated under subsection (f) of a member who becomes unqualified to serve on active duty due to a circumstance not within the control of that member or who is not physically qualified for appointment and who is determined to be unqualified for service as an enlisted member of the Coast Guard Reserve due to a physical or medical condition that was not the result of the member's own misconduct or grossly negligent conduct. ``(3) A discharge in bankruptcy under title 11 that is entered less than 5 years after the termination of a written agreement entered into under subsection (b) does not discharge the individual signing the agreement from a debt arising under such agreement or under paragraph (1). ``(h) As used in this section, the term `institution of higher education' has the meaning given that term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).''. (b) Clerical Amendment.--The table of sections for chapter 21 of title 14, United States Code, is amended by adding the following new item after the item relating to section 709: ``709a. Reserve student pre-commissioning assistance program.''. SEC. 414. CONTINUATION ON ACTIVE DUTY BEYOND THIRTY YEARS. Section 289 of title 14, United States Code, is amended by adding at the end the following new subsection: ``(h) Notwithstanding subsection (g) and section 288 of this title, the Commandant may by annual action retain on active duty from promotion year to promotion year any officer who would otherwise be retired under subsection (g) or section 288 of this title. An officer so retained, unless retired under some other provision of law, shall be retired on June 30 of that promotion year in [[Page 116 STAT. 2121]] which no action is taken to further retain the officer under this subsection.''. SEC. 415. PAYMENT OF DEATH GRATUITIES ON BEHALF OF COAST GUARD AUXILIARISTS. Section 823a(b) of title 14, United States Code, is amended by inserting after paragraph (8) the following: ``(9) On or after January 1, 2001, section 651 of Public Law 104-208.''. SEC. 416. ALIGN COAST GUARD SEVERANCE PAY AND REVOCATION OF COMMISSION AUTHORITY WITH DEPARTMENT OF DEFENSE AUTHORITY. (a) In General.--Chapter 11 of title 14, United States Code, is amended-- (1) in section 281-- (A) by striking ``three'' in the section heading and inserting ``five''; and (B) by striking ``three'' in the text and inserting ``five''; (2) in section 283(b)(2)(A), by striking ``severance'' and inserting ``separation''; (3) in section 286-- (A) by striking ``severance'' in the section heading and inserting ``separation''; and (B) by striking subsection (b) and inserting the following: ``(b) An officer of the Regular Coast Guard who is discharged under this section or section 282, 283, or 284 of this title and has completed 6 or more, but less than 20, continuous years of active service immediately before that discharge or release is entitled to separation pay computed under subsection (d)(1) of section 1174 of title 10. ``(c) An officer of the Regular Coast Guard who is discharged under section 327 of this title and has completed 6 or more, but less than 20, continuous years of active service immediately before that discharge or release is entitled to separation pay computed under subsection (d)(1) or (d)(2) of section 1174 of title 10 as determined under regulations promulgated by the Secretary. ``(d) Notwithstanding subsections (a) and (b), an officer discharged under chapter 11 of this title for twice failing of selection for promotion to the next higher grade is not entitled to separation pay under this section if the officer requested in writing or otherwise sought not to be selected for promotion, or requested removal from the list of selectees.''; (4) in section 286a-- (A) by striking ``severance'' in the section heading and inserting ``separation'' in its place; and (B) by striking subsections (a), (b), and (c) and inserting the following: ``(a) A regular warrant officer of the Coast Guard who is discharged under section 580 of title 10, and has completed 6 or more, but less than 20, continuous years of active service immediately before that discharge is entitled to separation pay computed under subsection (d)(1) of section 1174 of title 10. ``(b) A regular warrant officer of the Coast Guard who is discharged under section 1165 or 1166 of title 10, and has completed 6 or more, but less than 20, continuous years of active service immediately before that discharge is entitled to separation pay [[Page 116 STAT. 2122]] computed under subsection (d)(1) or (d)(2) of section 1174 of title 10, as determined under regulations promulgated by the Secretary. ``(c) In determining a member's years of active service for the purpose of computing separation pay under this section, each full month of service that is in addition to the number of full years of service creditable to the member is counted as one-twelfth of a year and any remaining fractional part of a month is disregarded.''; and (5) in section 327-- (A) by striking ``severance'' in the section heading and inserting ``separation''; (B) by striking subsection (a)(2) and inserting the following: ``(2) for discharge with separation benefits under section 286(c) of this title.''; (C) by striking subsection (a)(3); (D) by striking subsection (b)(2) and inserting the following: ``(2) if on that date the officer is ineligible for voluntary retirement under any law, be honorably discharged with separation benefits under section 286(c) of this title, unless under regulations promulgated by the Secretary the condition under which the officer is discharged does not warrant an honorable discharge.''; and (E) by striking subsection (b)(3). (b) Clerical Amendment.--The table of sections for chapter 11 of title 14, United States Code, is amended-- (1) in the item relating to section 281, by striking ``three'' and inserting ``five''; (2) in the item relating to section 286, by striking ``severance'' and inserting ``separation''; (3) in the item relating to section 286a, by striking ``severance'' and inserting ``separation''; and (4) in the item relating to section 327, by striking ``severance'' and inserting ``separation'' in its place. (c) <<NOTE: 14 USC 286 note.>> Effective Date.--The amendments made by paragraphs (2), (3), (4), and (5) of subsection (a) shall take effect 4 years after the date of enactment of this Act, except that subsection (d) of section 286 of title 14, United States Code, as amended by paragraph (3) of subsection (a) of this section, shall take effect on the date of enactment of this Act and shall apply with respect to conduct on or after that date. The amendments made to the table of sections of chapter 11 of title 14, United States Code, by paragraphs (2), (3), and (4) of subsection (b) of this section shall take effect 4 years after the date of enactment of this Act. SEC. 417. LONG-TERM LEASE AUTHORITY FOR LIGHTHOUSE PROPERTY. (a) In General.--Chapter 17 of title 14, United States Code, is amended by inserting after section 672 the following: ``Sec. 672a. Long-term lease authority for lighthouse property ``(a) The Commandant of the Coast Guard may lease to non-Federal entities, including private individuals, lighthouse property under the administrative control of the Coast Guard for terms not to exceed 30 years. Consideration for the use and occupancy of lighthouse property leased under this section, and for the value [[Page 116 STAT. 2123]] of any utilities and services furnished to a lessee of such property by the Commandant, may consist, in whole or in part, of non-pecuniary remuneration including the improvement, alteration, restoration, rehabilitation, repair, and maintenance of the leased premises by the lessee. Section 321 of chapter 314 of the Act of June 30, 1932 (40 U.S.C. 303b) shall not apply to leases issued by the Commandant under this section. ``(b) Amounts received from leases made under this section, less expenses incurred, shall be deposited in the Treasury.''. (b) Clerical Amendment.--The table of sections for chapter 17 of title 14, United States Code, is amended by inserting after the item relating to section 672 the following: ``672a. Long-term lease authority for lighthouse property.''. SEC. 418. MARITIME DRUG LAW ENFORCEMENT ACT AMENDMENTS. (a) In General.--Section 3 of the Maritime Drug Law Enforcement Act (46 App. U.S.C. 1903) is amended-- (1) in subsection (c)(1)(D), by striking ``and''; (2) in subsection (c)(1)(E), by striking ``United States.'' and inserting ``United States; and''; and (3) by inserting after subsection (c)(1)(E) the following: ``(F) a vessel located in the contiguous zone of the United States, as defined in Presidential Proclamation 7219 of September 2, 1999, and (i) is entering the United States, (ii) has departed the United States, or (iii) is a hovering vessel as defined in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401).''. (b) Maritime Drug Law Enforcement Amendment.--Section 4 of the Maritime Drug Law Enforcement Act (46 App. U.S.C. 1904) is amended-- (1) by inserting ``(a)'' before ``Any property''; and (2) by adding at the end the following: ``(b) Practices commonly recognized as smuggling tactics may provide prima facie evidence of intent to use a vessel to commit, or to facilitate the commission of, an offense under this Act, and may support seizure and forfeiture of the vessel, even in the absence of controlled substances aboard the vessel. The following indicia, among others, may be considered, in the totality of the circumstances, to be prima facie evidence that a vessel is intended to be used to commit, or to facilitate the commission of an offense under this Act: ``(1) The construction or adaptation of the vessel in a manner that facilitates smuggling, including-- ``(A) the configuration of the vessel to ride low in the water or present a low hull profile to avoid being detected visually or by radar; ``(B) the presence of any compartment or equipment which is built or fitted out for smuggling, not including items such as a safe or lock-box reasonably used for the storage of personal valuables; ``(C) the presence of an auxiliary tank not installed in accordance with applicable law or installed in such a manner as to enhance the vessel's smuggling capability; ``(D) the presence of engines that are excessively over-powered in relation to the design and size of the vessel; [[Page 116 STAT. 2124]] ``(E) the presence of materials used to reduce or alter the heat or radar signature of the vessel and avoid detection; ``(F) the presence of a camouflaging paint scheme, or of materials used to camouflage the vessel, to avoid detection; or ``(G) the display of false vessel registration numbers, false indicia of vessel nationality, false vessel name, or false vessel homeport. ``(2) The presence or absence of equipment, personnel, or cargo inconsistent with the type or declared purpose of the vessel. ``(3) The presence of excessive fuel, lube oil, food, water, or spare parts, inconsistent with legitimate vessel operation, inconsistent with the construction or equipment of the vessel, or inconsistent with the character of the vessel's stated purpose. ``(4) The operation of the vessel without lights during times lights are required to be displayed under applicable law or regulation and in a manner of navigation consistent with smuggling tactics used to avoid detection by law enforcement authorities. ``(5) The failure of the vessel to stop or respond or heave to when hailed by government authority, especially where the vessel conducts evasive maneuvering when hailed. ``(6) The declaration to government authority of apparently false information about the vessel, crew, or voyage or the failure to identify the vessel by name or country of registration when requested to do so by government authority. ``(7) The presence of controlled substance residue on the vessel, on an item aboard the vessel, or on a person aboard the vessel, of a quantity or other nature which reasonably indicates manufacturing or distribution activity. ``(8) The use of petroleum products or other substances on the vessel to foil the detection of controlled substance residue. ``(9) The presence of a controlled substance in the water in the vicinity of the vessel, where given the currents, weather conditions, and course and speed of the vessel, the quantity or other nature is such that it reasonably indicates manufacturing or distribution activity.''. SEC. 419. WING-IN-GROUND CRAFT. (a) Small Passenger Vessel.--Section 2101(35) of title 46, United States Code, is amended by inserting ``a wing-in-ground craft, regardless of tonnage, carrying at least one passenger for hire, and'' after `` `small passenger vessel' means''. (b) Wing-In-Ground Craft.--Section 2101 of title 46, United States Code, is amended by adding at the end the following: ``(48) `wing-in-ground craft' means a vessel that is capable of operating completely above the surface of the water on a dynamic air cushion created by aerodynamic lift due to the ground effect between the vessel and the water's surface.''. SEC. 420. ELECTRONIC FILING OF COMMERCIAL INSTRUMENTS FOR VESSELS. Section 31321(a)(4) of title 46, United States Code, is amended-- (1) by striking ``(A)''; and [[Page 116 STAT. 2125]] (2) by striking subparagraph (B). SEC. 421. DELETION OF THUMBPRINT REQUIREMENT FOR MERCHANT MARINERS' DOCUMENTS. Section 7303 of title 46, United States Code, is amended by striking ``the thumbprint,''. SEC. 422. TEMPORARY CERTIFICATES OF DOCUMENTATION FOR RECREATIONAL VESSELS. (a) Section 12103(a) of title 46, United States Code, is amended by inserting ``, or a temporary certificate of documentation,'' after ``certificate of documentation''. (b)(1) Chapter 121 of title 46, United States Code, is amended by adding after section 12103 the following: ``Sec. 12103a. Issuance of temporary certificate of documentation by third parties ``(a) The Secretary of the department in which the Coast Guard is operating may delegate, subject to the supervision and control of the Secretary and under terms set out by regulation, to private entities determined and certified by the Secretary to be qualified, the authority to issue a temporary certificate of documentation for a recreational vessel if the applicant for the certificate of documentation meets the requirements set out in sections 12102 and 12103 of this chapter. ``(b) A temporary certificate of documentation issued under section 12103(a) and subsection (a) of this section is valid for up to 30 days from issuance.''. (2) The table of sections for chapter 121 of title 46, United States Code, is amended by inserting after the item relating to section 12103 the following: ``12103a. Issuance of temporary certificate of documentation by third parties.''. SEC. 423. MARINE CASUALTY INVESTIGATIONS INVOLVING FOREIGN VESSELS. Section 6101 of title 46, United States Code, is amended-- (1) by redesignating the second subsection (e) as subsection (f); and (2) by adding at the end the following: ``(g) To the extent consistent with generally recognized practices and procedures of international law, this part applies to a foreign vessel involved in a marine casualty or incident, as defined in the International Maritime Organization Code for the Investigation of Marine Casualties and Incidents, where the United States is a Substantially Interested State and is, or has the consent of, the Lead Investigating State under the Code.''. SEC. 424. CONVEYANCE OF COAST GUARD PROPERTY IN HAMPTON TOWNSHIP, MICHIGAN. (a) Requirement To Convey.-- (1) In general.--Notwithstanding any other law, the Secretary of the department in which the Coast Guard is operating may convey to BaySail, Inc. (a nonprofit corporation established under the laws of the State of Michigan; in this section referred to as ``BaySail''), without monetary consideration, all right, title, and interest of the United States in and to property adjacent to Coast Guard Station Saginaw River, located in [[Page 116 STAT. 2126]] Hampton Township, Michigan, as identified under paragraph (2). No submerged lands may be conveyed under this section. (2) Identification of property.--The Secretary, in consultation with the Commandant of the Coast Guard, shall identify, describe, and determine the property to be conveyed under this section. (3) Survey.--The exact acreage and legal description of the property conveyed under paragraph (1), as identified under paragraph (2), and any easements or rights-of-way reserved by the United States under subsection (b), shall be determined by a survey satisfactory to the Secretary. The cost of the survey shall be borne by BaySail. (b) Terms and Conditions of Conveyance.--The conveyance of property under this section shall be made subject to any terms and conditions the Secretary considers necessary, including the reservation of easements and other rights on behalf of the United States. (c) Reversionary Interest.-- (1) In general.--During the 5-year period beginning on the date the Secretary makes the conveyance authorized by subsection (a), the real property conveyed pursuant to this section, at the option of the Secretary, shall revert to the United States and be placed under the administrative control of the Secretary if-- (A) BaySail sells, conveys, assigns, exchanges, or encumbers the property conveyed or any part thereof; (B) BaySail fails to maintain the property conveyed in a manner consistent with the terms and conditions under subsection (b); (C) BaySail conducts any commercial activity at the property conveyed, or any part thereof, without approval of the Secretary; or (D) at least 30 days before the reversion, the Secretary provides written notice to the owner that the property or any part thereof is needed for national security purposes. (2) Additional period.--The Secretary may, before the last day of the 5-year period described in paragraph (1), authorize an additional 5-year period during which paragraph (1) shall apply. SEC. 425. CONVEYANCE OF PROPERTY IN TRAVERSE CITY, MICHIGAN. Section 1005(c) of the Coast Guard Authorization Act of 1996 (110 Stat. 3957) is amended by striking ``the Traverse City Area Public School District'' and inserting ``a public or private nonprofit entity for an educational or recreational purpose''. SEC. 426. <<NOTE: 14 USC 2 note.>> ANNUAL REPORT ON COAST GUARD CAPABILITIES AND READINESS TO FULFILL NATIONAL DEFENSE RESPONSIBILITIES. <<NOTE: Deadline.>> Not later than February 15 each year, the Secretary of the department in which the Coast Guard is operating shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report, prepared in conjunction with the Commandant of the Coast Guard, setting forth the capabilities and readiness of the Coast Guard to fulfill its national defense responsibilities. [[Page 116 STAT. 2127]] SEC. 427. EXTENSION OF AUTHORIZATION FOR OIL SPILL RECOVERY INSTITUTE. Section 5001(i) of the Oil Pollution Act of 1990 (33 U.S.C. 2731(i)) is amended by striking ``10 years'' and all that follows through the period at the end and inserting ``September 30, 2012.''. SEC. 428. PROTECTION AGAINST DISCRIMINATION. (a) In General.--Section 2114(a) of title 46, United States Code, is amended to read as follows: ``(a)(1) A person may not discharge or in any manner discriminate against a seaman because-- ``(A) the seaman in good faith has reported or is about to report to the Coast Guard or other appropriate Federal agency or department that the seaman believes that a violation of a maritime safety law or regulation prescribed under that law or regulation has occurred; or ``(B) the seaman has refused to perform duties ordered by the seaman's employer because the seaman has a reasonable apprehension or expectation that performing such duties would result in serious injury to the seaman, other seamen, or the public. ``(2) The circumstances causing a seaman's apprehension of serious injury under paragraph (1)(B) must be of such a nature that a reasonable person, under similar circumstances, would conclude that there is a real danger of an injury or serious impairment of health resulting from the performance of duties as ordered by the seaman's employer. ``(3) To qualify for protection against the seaman's employer under paragraph (1)(B), the employee must have sought from the employer, and been unable to obtain, correction of the unsafe condition.''. (b) Appropriate Relief.--Section 2114(b) of such title is amended-- (1) in paragraph (1) by striking ``and'' at the end; (2) in paragraph (2) by striking the period and inserting a semicolon; and (3) by adding at the end the following: ``(3) an award of costs and reasonable attorney's fees to a prevailing plaintiff not exceeding $1,000; and ``(4) an award of costs and reasonable attorney's fees to a prevailing employer not exceeding $1,000 if the court finds that a complaint filed under this section is frivolous or has been brought in bad faith.''. SEC. 429. ICEBREAKING SERVICES. <<NOTE: 14 USC 93 note.>> The Commandant of the Coast Guard shall not plan, implement, or finalize any regulation or take any other action which would result in the decommissioning of any WYTL-class harbor tugs unless and until the Commandant certifies in writing to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives that sufficient replacement capability has been procured by the Coast Guard to remediate any degradation in current icebreaking services that would be caused by such decommissioning. [[Page 116 STAT. 2128]] SEC. 430. FISHING VESSEL SAFETY TRAINING. (a) In General.--The Commandant of the Coast Guard may provide support, with or without reimbursement, to an entity engaged in fishing vessel safety training, including-- (1) assistance in developing training curricula; (2) use of Coast Guard personnel, including active duty members, members of the Coast Guard Reserve, and members of the Coast Guard Auxiliary, as temporary or adjunct instructors; (3) sharing of appropriate Coast Guard informational and safety publications; and (4) participation on applicable fishing vessel safety training advisory panels. (b) No Interference With Other Functions.--In providing support under subsection (a), the Commandant shall ensure that the support does not interfere with any Coast Guard function or operation. SEC. 431. LIMITATION ON LIABILITY OF PILOTS AT COAST GUARD VESSEL TRAFFIC SERVICES. (a) In General.--Chapter 23 of title 46, United States Code, is amended by adding at the end the following: ``Sec. 2307. Limitation of liability for Coast Guard Vessel Traffic Service pilots ``Any pilot, acting in the course and scope of his or her duties while at a United States Coast Guard Vessel Traffic Service, who provides information, advice, or communication assistance while under the supervision of a Coast Guard officer, member, or employee shall not be liable for damages caused by or related to such assistance unless the acts or omissions of such pilot constitute gross negligence or willful misconduct.''. (b) Clerical Amendment.--The table of sections for chapter 23 of title 46, United States Code, is amended by adding at the end the following: ``2307. Limitation of liability for Coast Guard Vessel Traffic Service pilots.''. SEC. 432. ASSISTANCE FOR MARINE SAFETY STATION ON CHICAGO LAKEFRONT. (a) Assistance Authorized.--The Coast Guard may transfer funds, appropriated by Public Law 107-87 for the construction of a Coast Guard Marine Safety and Rescue Station in Chicago, Illinois, to the City of Chicago to pay the Federal share of the cost of a project to demolish the Old Coast Guard Station, located at the north end of the inner Chicago Harbor breakwater at the foot of Randolph Street, and to plan, engineer, design, and construct a new facility at that site for use as a marine safety station on the Chicago lakefront. (b) Cost Sharing.-- (1) Federal share.--The Federal share of the cost of a project carried out with assistance under this section may not exceed one-third of the total cost of the project or $2,000,000, whichever is less. (2) Non-federal share.--There shall not be applied to the non-Federal share of a project carried out with assistance under this section-- [[Page 116 STAT. 2129]] (A) the value of land and existing facilities used for the project; and (B) any costs incurred for site work performed before the date of the enactment of this Act, including costs for reconstruction of the east breakwater wall and associated utilities. SEC. 433. EXTENSION OF TIME FOR RECREATIONAL VESSEL AND ASSOCIATED EQUIPMENT RECALLS. Section 4310(c) of title 46, United States Code, is amended-- (1) in each of paragraphs (2)(A) and (2)(B) by striking ``5'' and inserting ``10''; and (2) in each of paragraphs (1)(A), (1)(B), and (1)(C) by inserting ``by first class mail or'' before ``by certified mail''. SEC. 434. REPAIR OF MUNICIPAL DOCK, ESCANABA, MICHIGAN. The Secretary of Transportation may transfer to the City of Escanaba, Michigan, up to $300,000 of funds appropriated for Coast Guard acquisition, construction, and improvements by Public Law 107-87, for the repair of the North wall of the municipal dock, Escanaba, Michigan. SEC. 435. VESSEL GLOBAL EXPLORER. The Secretary of Transportation shall amend the certificate of documentation of the vessel GLOBAL EXPLORER (United States official number 556069) to state that the vessel was built in the year 2002 in Gulfport, Mississippi. SEC. 436. ALEUTIAN TRADE. (a) Loadlines.--Section 5102(b)(5)(B)(ii) of title 46, United States Code, is amended by inserting ``is not'' after ``(ii)''. (b) <<NOTE: 46 USC 5102 note.>> Implementation.--Except as provided in subsection (c), a fish tender vessel that before January 1, 2003, transported cargo (not including fishery related products) in the Aleutian trade is subject to chapter 51 of title 46, United States Code (as amended by subsection (a) of this section). (c) <<NOTE: 46 USC 5102 note.>> Exception.-- (1) In general.--Before December 31, 2006, the BOWFIN (United States official number 604231) is exempt from chapter 51 of title 46, United States Code (as amended by subsection (a) of this section) when engaged in the Aleutian trade, if the vessel does not undergo a major conversion. (2) Ensuring safety.--Before the date referred to in paragraph (1), a Coast Guard official who has reason to believe that the vessel referred to in paragraph (1) operating under this subsection is in a condition or is operated in a manner that creates an immediate threat to life or the environment or is operated in a manner that is inconsistent with section 3302 of title 46, United States Code, may direct the master or individual in charge to take immediate and reasonable steps to safeguard life and the environment, including directing the vessel to a port or other refuge. SEC. 437. <<NOTE: 16 USC 460s-15.>> PICTURED ROCKS NATIONAL LAKESHORE BOUNDARY REVISION. (a) Transfer.--As soon as practicable after the date of enactment of this Act, the Administrator of General Services may transfer [[Page 116 STAT. 2130]] to the Secretary, without consideration, administrative jurisdiction over, and management of, the public land. (b) Boundary Revision.--The boundary of the Lakeshore is revised to include the public land transferred under subsection (a). (c) Availability of Map.--The map shall be on file and available for public inspection in the appropriate offices of the National Park Service. (d) Administration.--The Secretary may administer the public land transferred under section (a)-- (1) as part of the Lakeshore; and (2) in accordance with applicable laws (including regulations). (e) Access to Aids to Navigation.--The Secretary of Transportation, in consultation with the Secretary, may access the front and rear range lights on the public land for the purposes of servicing, operating, maintaining, and repairing those lights. (f) Definitions.--In this section: (1) Lakeshore.--The term ``Lakeshore'' means the Pictured Rocks National Lakeshore in the State of Michigan. (2) Map.--The term ``map'' means the map entitled ``Proposed Addition to Pictured Rocks National Lakeshore'', numbered 625/ 80048, and dated April 2002. (3) Public land.--The term ``public land'' means the approximately .32 acres of United States Coast Guard land and improvements to the land, including the United States Coast Guard Auxiliary Operations Station and the front and rear range lights, as depicted on the map. (4) Secretary.--The term ``Secretary'' means the Secretary of the Interior. (g) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary $225,000 to restore, preserve, and maintain the public land transferred under subsection (a). SEC. 438. LORAN-C. There are authorized to be appropriated to the Department of Transportation, in addition to funds authorized for the Coast Guard for operation of the LORAN-C system, for capital expenses related to LORAN-C navigation infrastructure, $25,000,000 for fiscal year 2003. The Secretary of Transportation may transfer from the Federal Aviation Administration and other agencies of the Department funds appropriated as authorized under this section in order to reimburse the Coast Guard for related expenses. SEC. 439. AUTHORIZATION OF PAYMENT. (a) In General.--The Secretary of the Treasury shall pay the sum of $71,000, out of funds in the Treasury not otherwise appropriated, to the State of Hawaii, such sum being the damages arising out of the June 19, 1997, allision by the United States Coast Guard Cutter RUSH with the ferry pier at Barber's Point Harbor, Hawaii. (b) Full Settlement.--The payment made under subsection (a) is in full settlement of all claims by the State of Hawaii against the United States arising from the June 19, 1997, allision. SEC. 440. REPORT ON OIL SPILL RESPONDER IMMUNITY. <<NOTE: 33 USC 1321 note.>> (a) Report to Congress.-- <<NOTE: Deadline.>> Not later than January 1, 2004, the Secretary of the department in which the Coast Guard is [[Page 116 STAT. 2131]] operating, jointly with the Secretary of Commerce and the Secretary of the Interior, and after consultation with the Administrator of the Environmental Protection Agency and the Attorney General, shall submit a report to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives on the immunity from criminal and civil penalties provided under existing law of a private responder (other than a responsible party) in the case of the incidental take of federally listed fish or wildlife that results from, but is not the purpose of, carrying out an otherwise lawful activity conducted by that responder during an oil spill removal activity where the responder was acting in a manner consistent with the National Contingency Plan or as otherwise directed by the Federal On-Scene Coordinator for the spill, and on the circumstances under which such penalties have been or could be imposed on a private responder. The report shall take into consideration the procedures under the Inter-Agency Memorandum for addressing incidental takes. (b) Definitions.--In this section-- (1) the term ``Federal On-Scene Coordinator'' has the meaning given that term in section 311 of the Federal Water Pollution Control Act (33 U.S.C. 1321); (2) the term ``incidental take'' has the meaning given that term in the Inter-Agency Memorandum; (3) the term ``Inter-Agency Memorandum'' means the Inter- Agency Memorandum of Agreement Regarding Oil Spill Planning and Response Activities under the Federal Water Pollution Control Act's National Oil and Hazardous Substances Pollution Contingency Plan and the Endangered Species Act, effective on July 22, 2001; (4) the terms ``National Contingency Plan'', ``removal'', and ``responsible party'' have the meanings given those terms under section 1001 of the Oil Pollution Act of 1990 (33 U.S.C. 2701); and (5) the term ``private responder'' means a nongovernmental entity or individual that is carrying out an oil spill removal activity at the direction of a Federal agency or a responsible party. SEC. 441. FISHING AGREEMENTS. (a) In General.--Section 10601(a) of title 46, United States Code, is amended-- (1) by inserting after ``on a voyage, the'' the following: ``owner, charterer, or managing operator, or a representative thereof, including the''; and (2) by inserting a comma after ``individual in charge''. (b) Clerical and Conforming Amendments.--Section 10601 of title 46, United States Code, is amended-- (1) in subsection (a) by striking ``enployed'' and inserting ``employed''; (2) by striking subsection (b); and (3) by redesignating subsection (c) as subsection (b). (c) <<NOTE: 46 USC 10601 note.>> Application.--An agreement that complies with the requirements of section 10601(a) of title 46, United States Code, as herein amended, and that is not the subject of an action prior to June 20, 2002, alleging a breach of subsections (a) or (b) of section [[Page 116 STAT. 2132]] 10601 as in effect on such date, is hereby deemed to have been in compliance with such subsections. SEC. 442. ELECTRONIC PUBLISHING OF MARINE CASUALTY REPORTS. (a) In General.--Section 6101 of title 46, United States Code, is amended by adding at the end the following: ``(g)(1) The Secretary shall publish all major marine casualty reports prepared in accordance with this section in an electronic form, and shall provide information electronically regarding how other marine casualty reports can be obtained. ``(2) For purposes of this paragraph, the term `major marine casualty' means a casualty involving a vessel, other than a public vessel, that results in-- ``(A) the loss of 6 or more lives; ``(B) the loss of a mechanically propelled vessel of 100 or more gross tons; ``(C) property damage initially estimated at $500,000 or more; or ``(D) serious threat, as determined by the Commandant of the Coast Guard with concurrence by the Chairman of the National Transportation Safety Board, to life, property, or the environment by hazardous materials. ``(h) <<NOTE: Deadline.>> The Secretary shall, as soon as possible, and no later than January 1, 2005, publish all marine casualty reports prepared in accordance with this section in an electronic form.''. (b) <<NOTE: 46 USC 6101 note.>> Application.--The amendment made by subsection (a) applies to all marine casualty reports completed after the date of enactment of this Act. SEC. 443. SAFETY AND SECURITY OF PORTS AND WATERWAYS. The Ports and Waterways Safety Act (33 U.S.C. 1221 et seq.) is amended-- (1) by striking ``safety and protection of the marine environment'' in section 2(a) (33 U.S.C. 1221(a)) and inserting ``safety, protection of the marine environment, and safety and security of United States ports and waterways''; and (2) by striking ``safety and protection of the marine environment,'' in section 5(a) (33 U.S.C. 1224(a)) and inserting ``safety, protection of the marine environment, and the safety and security of United States ports and waterways,''. SEC. 444. SUSPENSION OF PAYMENT. (a) In General.--Title 14, United States Code, is amended by inserting after section 424 the following: ``Sec. 424a. Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution ``Under procedures prescribed by the Secretary, the Secretary may suspend the payment of the retired pay of a member or former member during periods in which the member willfully remains outside the United States to avoid criminal prosecution or civil liability. The procedures shall address the types of criminal offenses and civil proceedings for which the procedures may be used, including the offenses specified in section 8312 of title 5, and the manner by which a member, upon the return of the member to the United States, may obtain retired pay withheld during the member's absence.''. [[Page 116 STAT. 2133]] (b) Clerical Amendment.--The table of sections at the beginning of chapter 11 of title 14, United States Code, is amended by inserting after the item relating to section 424 the following: ``424a. Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution.''. SEC. 445. PROHIBITION ON NAVIGATION FEES. Section 4 of the Rivers and Harbors Appropriation Act of 1884 (33 U.S.C. 5) is amended as follows: (1) The existing text is designated as subsection (a). (2) The following is added at the end: ``(b) No taxes, tolls, operating charges, fees, or any other impositions whatever shall be levied upon or collected from any vessel or other water craft, or from its passengers or crew, by any non-Federal interest, if the vessel or water craft is operating on any navigable waters subject to the authority of the United States, or under the right to freedom of navigation on those waters, except for-- ``(1) fees charged under section 208 of the Water Resources Development Act of 1986 (33 U.S.C. 2236); or ``(2) reasonable fees charged on a fair and equitable basis that-- ``(A) are used solely to pay the cost of a service to the vessel or water craft; ``(B) enhance the safety and efficiency of interstate and foreign commerce; and ``(C) do not impose more than a small burden on interstate or foreign commerce.''. TITLE V-- <<NOTE: Coast Guard Authorization Act for Fiscal Year 2003.>> AUTHORIZATION OF APPROPRIATIONS FOR THE COAST GUARD SEC. 501. SHORT TITLE. This title may be cited as the ``Coast Guard Authorization Act for Fiscal Year 2003''. SEC. 502. AUTHORIZATION OF APPROPRIATIONS. Funds are authorized to be appropriated for fiscal year 2003 for necessary expenses of the Coast Guard as follows: (1) For the operation and maintenance of the Coast Guard, $4,327,456,000, of which $25,000,000 is authorized to be derived from the Oil Spill Liability Trust Fund to carry out the purposes of section 1012(a)(5) of the Oil Pollution Act of 1990. (2) For the acquisition, construction, rebuilding, and improvement of aids to navigation, shore and offshore facilities, vessels, and aircraft, including equipment related thereto, $725,000,000, of which $20,000,000 is authorized to be derived from the Oil Spill Liability Trust Fund to carry out the purposes of section 1012(a)(5) of the Oil Pollution Act of 1990. (3) For research, development, test, and evaluation of technologies, materials, and human factors directly relating to improving the performance of the Coast Guard's mission in support of search and rescue, aids to navigation, marine safety, marine environmental protection, enforcement of laws and treaties, ice operations, oceanographic research, and defense readiness, $22,000,000, to remain available until expended, of which [[Page 116 STAT. 2134]] $3,500,000 is authorized to be derived each fiscal year from the Oil Spill Liability Trust Fund to carry out the purposes of section 1012(a)(5) of the Oil Pollution Act of 1990. (4) For retired pay (including the payment of obligations otherwise chargeable to lapsed appropriations for this purpose), payments under the Retired Serviceman's Family Protection and Survivor Benefit Plans, and payments for medical care of retired personnel and their dependents under chapter 55 of title 10, United States Code, $889,000,000. (5) For alteration or removal of bridges over navigable waters of the United States constituting obstructions to navigation, and for personnel and administrative costs associated with the Bridge Alteration Program, $18,000,000, to remain available until expended. (6) For environmental compliance and restoration at Coast Guard facilities (other than parts and equipment associated with operations and maintenance), $17,000,000, to remain available until expended. SEC. 503. AUTHORIZED LEVELS OF MILITARY STRENGTH AND TRAINING. (a) Active Duty Strength.--The Coast Guard is authorized an end-of- year strength for active duty personnel of 45,500 as of September 30, 2003. (b) Military Training Student Loads.--The Coast Guard is authorized average military training student loads as follows: (1) For recruit and special training for fiscal year 2003, 2,250 student years. (2) For flight training for fiscal year 2003, 125 student years. (3) For professional training in military and civilian institutions for fiscal year 2003, 300 student years. (4) For officer acquisition for fiscal year 2003, 1,150 student years. Approved November 25, 2002. LEGISLATIVE HISTORY--S. 1214 (H.R. 3983): --------------------------------------------------------------------------- HOUSE REPORTS: Nos. 107-405 accompanying H.R. 3983 (Comm. on Transportation and Infrastructure) and 107-777 (Comm. of Conference). SENATE REPORTS: No. 107-64 (Comm. on Commerce, Science, and Transportation). CONGRESSIONAL RECORD: Vol. 147 (2001): Dec. 20, considered and passed Senate. Vol. 148 (2002): June 4, considered and passed House, amended, in lieu of H.R. 3983. Nov. 14, Senate and House agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): Nov. 25, Presidential statement. <all>
Tag: Historic Events
United States Maritime Commission
(Source: “United States Maritime Commission,” Wikipedia 5 November 2013)
The United States Maritime Commission was an independent executive agency of the U.S. federal government that was created by the Merchant Marine Act of 1936, passed by Congress on June 29, 1936, and replaced the United States Shipping Board which had existed since World War I. It was intended to formulate a merchant shipbuilding program to design and build five hundred modern merchant cargo ships to replace the World War I vintage vessels that comprised the bulk of the United States Merchant Marine, and to administer a subsidy system authorized by the Act to offset the cost differential between building in the U.S. and operating ships under the American flag. It also formed the United States Maritime Service for the training of seagoing ship’s officers to man the new fleet.
Purposes
The purpose of the Maritime Commission was multifold as described in the Merchant Marine Act’s Declaration of Policy. The first role was to formulate a merchant shipbuilding program to design and then have built over a ten-year period 500 modern fast merchant cargo ships which would replace the World War I-vintage vessels which made up the bulk of the U.S. Merchant Marine prior to the Act. Those ships were intended to be chartered (leased) to U.S. shipping companies for their use in the foreign seagoing trades for whom they would be able to offer better and more economical freight services to their clients. The ships were also intended to serve as a reserve naval auxiliary force in the event of armed conflict which was a duty the U.S. merchant fleet had often filled throughout the years since the Revolutionary War. The second role given to the Maritime Commission was to administer a subsidy system authorized by the Act which would offset the differential is cost between both building in the U.S. and operating ships under the American flag. Another function given to the Commission involved the formation of the U.S. Maritime Service for the training of seagoing ship’s officers to man the new fleet. The actual licensing of officers and seamen still resided with the Bureau of Marine Inspection and Navigation.
President Roosevelt nominated Joseph P. Kennedyfirst head of the Commission. Kennedy held that position until February 1938 when he left to become US Ambassador to Great Britain. After Kennedy’s departure, the chairmanship was assumed by Rear Admiral Emory S. Land, USN (ret.), who had been the head of U.S. Navy’s Bureau of Construction and Repair prior to his appointment to the Commission on the behest of the President and where he had been a deputy commissioner since the founding of the body. The other four members of the Commission in the years before the beginning of World War II were a mix of retired naval officers and men from disciplines of law and business. The man most notable in the group Land brought to the Commission was Commander Howard L. Vickery, USN, who, like Land, was a naval officer closely involved in the construction of new Navy vessels. Vickery became responsible for overseeing the Commission’s shipbuilding functions including the design and construction of the ships, developing shipyards to build them and companies to manufacture the complicated and highly specialized ship’s machinery. As World War II drew closer, Vickery was very much at the forefront of putting into place the Emergency Shipbuilding Program which man like Henry J. Kaiser were so instrumental in developing into an industry which would perform some of the greatest feats of wartime industrial production ever previously witnessed and never since matched.
As a symbol of the rebirth of the U.S. Merchant Marine and Merchant Shipbuilding under the Merchant Marine Act, the first vessel contracted for was SS America, which was owned by the United States Line and operated in the passenger liner and cruise service during 1940-1. Upon the U.S. entry into World War II, Americawas requisitioned by the U.S. Navy and became USS West Point.[1] In the prewar years, several dozen other merchant ships were built for the Commission under its original 500 ship Long Range Shipbuilding Program but it wasn’t until the late fall of 1940 the critical importance of the Commission to the defense of the lifeline to Great Britain and to the national mobilization for war became apparent when the beginnings of the Emergency Shipbuilding program were laid. Together, all the Maritime Commission’s shipbuilding program became known as Ships for Victoryand great pride was taken in it by the many thousands of ordinary citizens went to work in the shipyards and joined the ranks of the shipbuilding workforce.
From 1939 through the end of World War II, the Maritime Commission funded and administered the largest and most successful merchant shipbuilding effort in world history, producing thousands of ships, including Liberty ships, Victory ships, and others, notably Type C1, Type C2, Type C3 freighters and T2 tankers. Most of the C2s and C3s were converted to Navy auxiliaries, notably attack cargo ships,attack transports, and escort aircraft carriers and many of the tankers became fleet replenishment oilers. The Commission also was tasked with the construction of many hundred “military type” vessels such as Landing Ship, Tank (LST)s andTacoma-class frigates and large troop transports. By the end of the war, U.S. shipyards working under Maritime Commission contracts had built a total of 5,777 oceangoing merchant and naval ships.
In early 1942 both the training and licensing was transferred to the U.S. Coast Guard for administration, but then late in the fall of 1942, the Maritime Service was transferred to the newly created War Shipping Administration which itself was created for the purpose of overseeing the operation of the fleet of merchant ships being built by the Emergency Program for the needs of the U.S. Armed Services. The WSA was added to the list of wartime agencies created within the Roosevelt Administration and was intended to relieve the already full plate of responsibilities of the Commission, yet they shared the same Chairman in Admiral Land and so worked very closely together.
With the ending of World War II, both the Emergency and Long Range shipbuilding programs were terminated as there were far too many merchant vessels now for the Nation’s peacetime needs. In 1946, the Merchant Ship Sales Actwas passed to sell off a large portion of the ships previously built during the war to commercial buyers, both domestic and foreign. This facilitated the rebuilding of the fleets of both allied nations such as Great Britain, Norway and Greece which had lost a majority of their prewar vessels to the Battles of the Atlantic and Mediterranean Sea. Although not sold outright to the nations we had only so recently fought, U.S. merchant ship helped nations which had been our enemies recover their merchant shipping capacity such as Japan which had lost many hundreds of its merchant vessels to the US Navy’s World War II submarine offensive in the western Pacific with the loan of vessels or to the carrying of relief cargoes to war ravaged Europe in both the rebuilding programs under the Marshall Plan and food aid send during the desperate winter of 1945-46 when famine loomed large over much of the continent. For the next 25 years, in ports all around the world one could find dozens of ships which had been built during the war but which now were used in peace. Many of those same ships continued to sail until the early 1980s but most had been sold for scrap in the 1960s and 1970s as more modern designs were developed and more efficient slow speed diesel enginesintroduced to replace the steamships which predominated those built by the Commission during the war years.
Ships not disposed of through the Ship Sales Act were placed into one of eightNational Defense Reserve Fleet(NDRF) sites maintained on the Atlantic, Pacific and Gulf coasts. On several occasions in the postwar years ships in the reserve fleets were activated for both military and humanitarian aid missions. The last major mobilization of the NDRF came during the Vietnam War. Since then, a smaller fleet of ships called the Ready Reserve Force has been mobilized to support both humanitarian and military missions.
The last major shipbuilding project undertaken by the Commission was to oversee the design and construction of the super passenger liner SS United States which was intended to be both a symbol of American technological might and maritime predominance but also could be quickly converted into the world’s fastest naval troop transport.
The Maritime Commission was abolished on 24 May 1950, and its functions were divided between the U.S. Federal Maritime Commission which was responsible for regulating shipping trades and trade routes and the United States Maritime Administration, which was responsible for administering the construction and operating subsidy programs, maintaining NDRF, and operating the U.S. Merchant Marine Academy which had been built and opened during World War II and which continues to be funded and operated today as one of the five Federal Military Service Academies.
Timeline
- 1936: Merchant Marine Act abolishes Shipping Board and establishes Maritime Commission.
- 1937: Joseph P. Kennedy appointed by President Roosevelt as the first head of the Maritime Commission
- 1938: Maritime Commission authorizes large merchant fleet
- 1940: Maritime Commission agrees to build 60 Ocean class merchant ships for the British Ministry of War Transportation.
- 1941 Beginning of the Emergency Shipbuilding Program
- 1942: The War Shipping Administration was established
- 1942: The United States Coast Guard takes over Bureau of Marine Inspection and Navigation
- 1942: United States Merchant Marine Academy opens at Kings Point, Long Island, New York
- 1942: Maine Merchant Marine Academy, later named Maine Maritime Academy, opens in Castine, Maine
- 1950: Functions of Maritime Commission transferred to Department of Commerce and MARAD, United States Maritime Administration
See also
Responsibility for U.S. merchant shipping has been held by many agencies since 1917. For a history, see:
- United States Shipping Board.
- United States Merchant Marine
- U.S. Merchant Marine Academy
- War Shipping Administration
- United States Maritime Administration
References
- Ships for Victory: A History of Shipbuilding under the U.S. Maritime Commission in World War II, by Frederic C. Lane. Johns Hopkins University Press, 1950. ISBN 0-8018-6752-5
External links
United States Shipping Board
(Source: “United States Shipping Board” Wikipedia, 5 November 2013. Links below go to Wikipedia)
The United States Shipping Board was established as an emergency agency by the Shipping Act (39 Stat. 729), 7 September 1916. It was formally organized 30 January 1917. It was sometimes referred to as the War Shipping Board.
The Shipping Board’s functions were to:
- Regulate:
- commercial maritime carriers and trade practices,
- marine insurance,
- transfers of ship registry, and
- the rates charged in interstate waterborne commerce.
- Investigate adequacy of port and water transportation facilities,
- Determine the necessity for steamship lines and the characteristics of vessels on those lines,
- Develop a naval auxiliary and merchant marine, and
- Subsidize private ship construction.
The Board was abolished, effective 2 March 1934.
Its successor agencies have been the U.S. Shipping Board Bureau of the U.S. Department of Commerce (1933–36); the U.S. Maritime Commission (1936–50); the U.S. Federal Maritime Board of the Department of Commerce (regulatory functions only, 1950–61); the U.S. Federal Maritime Commission (regulatory functions only, 1961- ); the United States Maritime Administration of the Department of Commerce (all other functions, 1950–81); and the U.S. Maritime Administration of the U.S. Department of Transportation (all other functions, 1981- ).
Panama Refining Co. v. Ryan
(Source: “Panama Refining Co. v. Ryan,” Wikipedia, 5 November 2013. The post date for this article is 7 January 1935. It was argued on 10-11 December 1934.)
Panama Refining Co. v. Ryan, 293 U.S. 388 (1935), also known as the Hot Oil case, was a case in which the United States Supreme Court ruled unconstitutional the Roosevelt Administration’s prohibition of interstate and foreign trade in petroleumgoods produced in excess of state quotas—the “hot oil” orders adopted under the 1933 National Industrial Recovery Act.
The ruling was the first of several which overturned key elements of the Administration’s New Deal legislative program. The relevant section 9(c) of the NIRA was found to be an unconstitutional delegation of legislative power in that it permitted Presidential interdiction of trade without defining criteria for the application of the proposed restriction.
The finding thus differed from later Court rulings which argued that Federal government action affecting intrastate production breached the Commerce Clause of the Constitution: in Panama v. Ryan the Court found that Congress had violated thenondelegation doctrine by vesting the President with legislative powers without clear guidelines, giving the President enormous and unchecked powers. The omission of Congressional guidance on State petroleum production ceilings occasioned the adverse ruling because this omission allowed the executive to assume the role of the legislature. JusticeCardozo dissented, claiming that the guidelines had been sufficient.
Expanded Reading from FindLaw.com
PANAMA REFINING CO. v. RYAN, 293 U.S. 388 (1935)
293 U.S. 388
PANAMA REFINING CO. et al.
v.
RYAN et al.
AMAZON PETROLEUM CORPORATION et al.
v.
SAME.
Nos. 135, 260.
Argued Dec. 10, 11, 1934.
Decided Jan. 7, 1935.
[293 U.S. 388, 391] Messrs. J. N. Saye, of Longview, Tex., and F. W. Fischer, of Tyler, Tex., for petitioners.
[293 U.S. 388, 398] Mr. Harold M. Stephens, Asst. Atty. Gen., for respondents.
Mr. Chief Justice HUGHES delivered the opinion of the Court.
On July 11, 1933, the President, by Executive Order No. 6199 (15 USCA 709 note), prohibited ‘the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly[293 U.S. 388, 406] authorized agency of a State.’ 1 This action was based on section 9(c) of title 1 of the National Industrial Recovery Act of June 16, 1933, 48 Stat. 195, 200, 15 U.S.C. tit. 1, 709(c), 15 USCA 709(c). That section provides:
- ‘Sec. 9. …
- ‘(c) The President is authorized to prohibit the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly authorized agency of a State. Any violation of any order of the President issued under the provisions of this subsection shall be punishable by fine of not to exceed $1,000, or imprisonment for not to exceed six months, or both.’
On July 14, 1933, the President, by Executive Order No. 6204 (15 USCA 709 note), authorized the Secretary of the Interior to exercise all the powers vested in the President ‘for the purpose of en- [293 U.S. 388, 407] forcing Section 9(c) of said act and said order’ of July 11, 1933, ‘including full authority to designate and appoint such agents and to set up such boards and agencies as he may see fit, and to promulgate such rules and regulations as he may deem necessary.’ 2 That order was made under section 10(a) of the National Industrial Recovery Act, 48 Stat. 200, 15 U.S.C. 710(a), 15 USCA 710(a), authorizing the President ‘to prescribe such rules and regulations as may be necessary to carry out the purposes’ of title 1 of the National Industrial Recovery Act and providing that ‘any violation of any such rule or regulation shall be punishable by fine of not to exceed $500, or imprisonment for not to exceed six months, or both.’
On July 15, 1933, the Secretary of the Interior issued regulations to carry out the President’s orders of July 11 and 14, 1933. These regulations were amended by orders [293 U.S. 388, 408] of July 25, 1933, and August 21, 1933, prior to the commencement of these suits. Regulation IV provided, in substance, that every producer of petroleum should file a monthly statement under oath, beginning August 15, 1933, with the Division of Investigations of the Department of the Interior giving information with respect to the residence and post office address of the producer, the location of his producing properties and wells, the allowable production as prescribed by state authority, the amount of daily production, all deliveries of petroleum, and declaring that no part of the petroleum or products produced and shipped had been produced or withdrawn from storage in excess of the amount permitted by state authority. Regulation V required every purchaser, shipper (other than a producer), and refiner of petroleum, including processors, similarly to file a monthly statement under oath, giving information as to residence and post office address, the place and date of receipt, the parties from whom and the amount of petroleum received and the amount held in storage, the disposition of the petroleum, particulars as to deliveries, and declaring, to the best of the affiant’s information and belief, that none of the petroleum so handled had been produced or withdrawn from storage in excess of that allowed by state authority. Regulation VII provided that all persons embraced within the terms of section 9(c) of the act, 15 USCA 709(a) and the executive orders and regulations issued thereunder, should keep ‘available for inspection by the Division of Investigations of the Department of the Interior adequate books and records of all transactions involving the production and transportation of petroleum and the products thereof.’
On August 19, 1933, the President, by Executive Order No. 6256, stating that his action was taken under title 1 of the National Industrial Recovery Act, approved a ‘Code of [293 U.S. 388, 409] Fair Competition for the Petroleum Industry.’ 3 By a further Executive Order of August 28, 1933, the President designated the Secretary of the Interior as Administrator, and the Department of the Interior as the federal agency, to exercise on behalf of the President all the powers vested in him under that act and code. Section 3(f) of title 1 of the National Industrial Recovery Act, 15 USCA 703(f), provides that, when a code of fair competition has been approved or prescribed by the President under that title, ‘any violation of any provision thereof in any transaction in or affecting interstate or foreign commerce shall [293 U.S. 388, 410] be a misdemeanor and upon conviction thereof an offender shall be fined not more than $500 for each offense, and each day such violation continues shall be deemed a separate offense.’
This ‘Petroleum Code’ (in its original form and as officially printed) provided in section 3 of article III relating to ‘Production’ for estimates of ‘required production of crude oil to balance consumer demand for petroleum products’ to be made at intervals by the federal agency. This ‘required production’ was to be ‘equitably allocated’ among the several states. These estimates and allocations, when approved by the President, were to be deemed to be ‘the net reasonable market demand,’ and the allocations were to be recommended ‘as the operating schedules for the producing States and for the industry.’ By section 4 of article III, the subdivision, with respect to producing properties, of the production allocated to each state, was to be made within the state. The second paragraph of that section further provided:
- ‘If any subdivision into quotas of production allocated to any State shall be made within a State any production by any person, as person is defined in Article I, Section 3 of this code in excess of any such quota assigned to him, shall be deemed an unfair trade practice and in violation of this code.’
By an Executive Order of September 13, 1933, No. 6284-a, modifying certain provisions of the Petroleum Code, this second paragraph of section 4 of article III was eliminated. It was reinstated by Executive Order of September 25, 1934, No. 6855
These suits were brought in October, 1933.
In No. 135, the Panama Refining Company, as owner of an oil refining plant in Texas, and its coplaintiff, a producer having oil and gas leases in Texas, sued to restrain the defendants, who were federal officials, from enforcing Regulations IV, V, and VII prescribed by the Secretary of the Interior under section 9(c) of the National Industrial [293 U.S. 388, 411] Recovery Act. Plaintiffs attacked the validity of section 9(c) as an unconstitutional delegation to the President of legislative power and as transcending the authority of the Congress under the commerce clause. The regulations, and the attempts to enforce them by coming upon the properties of the plaintiffs, gauging their tanks, digging up pipe lines, and otherwise, were also assailed under the Fourth and Fifth Amendments of the Constitution.
In No. 260, the Amazon Petroleum Corporation and its coplaintiffs, all being oil producers in Texas and owning separate properties, sued to enjoin the Railroad Commission of that state, its members and other state officers, and the other defendants who were federal officials, from enforcing the state and federal restrictions upon the production and disposition of oil. The bill alleged that the legislation of the state and the orders of its commission in curtailing production violated the Fourteenth Amendment of the Federal Constitution. As to the federal requirements, the bill not only attacked section 9(c) of the National Industrial Recovery Act, and the regulations of the Secretary of the Interior thereunder, upon substantially the same grounds as those set forth in the bill of the Panama Refining Company, but also challenged the validity of provisions of the Petroleum Code. While a number of these provisions were set out in the bill, the contest on the trial related to the limitation of production through the allocation of quotas pursuant to section 4 of article III of the code.
As the case involved the constitutional validity of orders of the state commission and an interlocutory injunction was sought, a court of three judges was convened under section 266 of the Judicial Code (28 U.S.C . 380 (28 USCA 380)). That court decided that the cause of action against the federal officials was not one within section 266, but was for the consideration of the District Judge alone. The parties agreed that the causes of action should be severed and that each cause [293 U.S. 388, 412] should be submitted to the tribunal having jurisdiction of it. Hearing was had both on the applications for interlocutory injunction and upon the merits. The court of three judges, sustaining the state orders, denied injunction, and dismissed the bill as against the state authorities. Amazon Petroleum Corp. v. Railroad Comm. (D.C.) 5 F.Supp. 633, 634, 639.
In both cases against the federal officials, that of the Panama Refining Company and that of the Amazon Petroleum Corporation, heard by the District Judge, a permanent injunction was granted. 5 F.Supp. 639. In the case of the Amazon Petroleum Corporation, the court specifically enjoined the defendants from enforcing section 4 of article III of the Petroleum Code; both plaintiffs and defendants and the court being unaware of the amendment of September 13, 1933.
The Circuit Court of Appeals reversed the decrees against the federal officials and directed that the bills be dismissed. Ryan v. Amazon Petroleum Corp., 71 F.(2d) 1; Ryan v. Panama Refining Co., 71 F.(2d) 8. The cases come here on writs of certiorari granted on October 8, 1934, 293 U.S. 539 , 55 S.Ct. 102, 79 L.Ed. –; 293 U.S. 539 , 55 S.Ct. 83, 79 L.Ed. –.
First. The controversy with respect to the provision of section 4 of article III of the Petroleum Code was initiated and proceeded in the courts below upon a false assumption. That assumption was that this section still contained the paragraph (eliminated by the Executive Order of September 13, 1933) by which production in excess of assigned quotas was made an unfair practice and a violation of the code. Whatever the cause of the failure to give appropriate public notice of the change in the section, with the result that the persons affected, the prosecuting authorities, and the courts, were alike ignorant of the alteration, the fact is that the attack in this respect was upon a provision which did not exist. The government’s announcement that, by reason of the elimination of this paragraph, the government ‘cannot, and therefore it does not intend to, prosecute petitioners or other producers of oil in Texas, criminally or otherwise, [293 U.S. 388, 413] for exceeding, at any time prior to September 25, 1934, the quotas of production assigned to them under the laws of Texas,’ but that, if ‘petitioners, or other producers, produce in excess of such quotas after September 25, 1934, the government intends to prosecute them,’ cannot avail to import into the present case the amended provision of that date. 4 The case is not one where a subsequent law is applicable to a pending suit and controls its disposition. 5 When this suit was brought and when it was heard, there was no cause of action for the injunction sought with respect to the provision of section 4 of article III of the code; as to that, there was no basis for real controversy. See California v. San Pablo & T.R. Co., 149 U.S. 308, 314 , 13 S.Ct. 876; United States v. Alaska Steamship Co., 253 U.S. 113, 116 , 40 S.Ct. 448; Barker Painting Co. v. Local No. 734, Brotherhood of Painters, etc., 281 U.S. 462 , 50 S.Ct. 356. If the government undertakes to enforce the new provision, the petitioners, as well as others, will have an opportunity to present their grievance, which can then be considered, as it should be, in the light of the facts as they will then appear.
For this reason, we pass to the other questions presented, and we express no opinion as to the interpretation or validity of the provisions of the Petroleum Code.
Second. Regulations IV, V, and VII, issued by the Secretary of the Interior prior to these suits, have since been amended. But the amended regulations continue sub- [293 U.S. 388, 414] stantially the earlier requirements and expand them. They present the same constitutional questions, and the cases as to these are not moot. Southern Pacific Company v. Interstate Commerce Commission, 219 U.S. 433, 452 , 31 S. Ct. 288; Southern Pacific Terminal Co. v. Interstate Commerce Commission, 219 U.S. 498 , 514-516, 31 S.Ct. 279; McGrain v. Daugherty, 273 U.S. 135, 181 , 182 S., 47 S.Ct. 319, 50 A.L.R. 1.
The original regulations of July 15, 1933, as amended July 25, 1933, and August 21, 1933, were issued to enforce the Executive Orders of July 11 and July 14, 1933. The Executive Order of July 11, 1933, was made under section 9(c) of the National Industrial Recovery Act, and the Executive Order of July 14, 1933, under section 10(a) of that act, authorizing the Secretary of the Interior to promulgate regulations, was for the purpose of enforcing section 9(c) and the Executive Order of July 11, 1933. The amended regulations have been issued for the same purpose. The fundamental question as to these regulations thus turns upon the validity of section 9( c) and the executive orders to carry it out.
Third. The statute provides that any violation of any order of the President issued under section 9(c) shall be punishable by fine of not to exceed $1,000, or imprisonment for not to exceed six months, or both. We think that these penalties would attach to each violation, and in this view the plaintiffs were entitled to invoke the equitable jurisdiction to restrain enforcement, if the statute and the executive orders were found to be invalid. Philadelphia Company v. Stimson, 223 U.S. 605, 620 , 621 S., 32 S.Ct. 340; Terrace v. Thompson, 263 U.S. 197, 214-216, 44 S. Ct. 15; Hygrade Provision Company v. Sherman, 266 U.S. 497, 499 , 500 S., 45 S.Ct. 141.
Fourth. Section 9[c] is assailed upon the ground that it is an unconstitutional delegation of legislative power. The section purports to authorize the President to pass a prohibitory law. The subject to which this authority relates is defined. It is the transportation in interstate and [293 U.S. 388, 415] foreign commerce of petroleum and petroleum products which are produced or withdrawn from storage in excess of the amount permitted by state authority. Assuming for the present purpose, without deciding, that the Congress has power to interdict the transportation of that excess in interstate and foreign commerce, the question whether that transportation shall be prohibited by law is obviously one of legislative policy. Accordingly, we look to the statute to see whether the Congress has declared a policy with respect to that subject; whether the Congress has set up a standard for the President’s action; whether the Congress has required any finding by the President in the exercise of the authority to enact the prohibition.
Section 9(c) is brief and unambiguous. It does not attempt to control the production of petroleum and petroleum products within a state. It does not seek to lay down rules for the guidance of state Legislatures or state officers. It leaves to the states and to their constituted authorities the determination of what production shall be permitted. It does not qualify the President’s authority by reference to the basis or extent of the state’s limitation of production. Section 9(c) does not state whether or in what circumstances or under what conditions the President is to prohibit the transportation of the amount of petroleum or petroleum products produced in excess of the state’s permission. It establishes no creterion to govern the President’s course. It does not require any finding by the President as a condition of his action. The Congress in section 9(c) thus declares no policy as to the transportation of the excess production. So far as this section is concerned, it gives to the President an unlimited authority to determine the policy and to lay down the prohibition, or not to lay it down, as he may see fit. And disobedience to his order is made a crime punishable by fine and imprisonment.[293 U.S. 388, 416] We examine the context to ascertain if it furnishes a declaration of policy or a standard of action, which can be deemed to relate to the subject of section 9(c) and thus to imply what is not there expressed. It is important to note that section 9 (15 USCA 709) is headed ‘Oil Regulation’-that is, section 9 is the part of the National Industrial Recovery Act which particularly deals with that subject-matter. But the other provisions of section 9 afford no ground for implying a limitation of the broad grant of authority in section 9(c). Thus section 9(a) authorizes the President to initiate before the Interstate Commerce Commission ‘proceedings necessary to prescribe regulations to control the operations of oil pipe lines and to fix reasonable, compensatory rates for the transportation of petroleum and its products by pipe lines,’ and the Interstate Commerce Commission is to grant preference ‘to the hearings and determination of such cases.’ Section 9(b) authorizes the President to institute proceedings ‘to divorce from any holding company any pipe-line company controlled by such holding company which pipeline company by unfair practices or by exorbitant rates in the transportation of petroleum or its products tends to create a monopoly.’ It will be observed that each of these provisions contains restrictive clauses as to their respective subjects. Neither relates to the subject of section 9(c).
We turn to the other provisions of title 1 of the act. The first section (15 USCA 701) is a ‘declaration of policy.’ 6It declares that a national emergency exists which is ‘pro- [293 U.S. 388, 417] ductive of widespread unemployment and disorganization of industry, which burdens interstate and foreign commerce, affects the public welfare, and undermines the standards of living of the American people.’ It is declared to be the policy of Congress ‘to remove obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof;’ ‘to provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among trade groups;’ ‘to induce and maintain united action of labor and management under adequate governmental sanctions and supervision;’ ‘to eliminate unfair competitive practices, to promote the fullest possible utilization of the present productive capacity of industries, to avoid undue restriction of production (except as may be temporarily required), to increase the consumption of industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment, to improve standards of labor, and otherwise to rehabilitate industry and to conserve natural resources.’
This general outline of policy contains nothing as to the circumstances or conditions in which transportation of petroleum or petroleum products should be prohibited-nothing as to the policy of prohibiting or not prohibiting the transportation of production exceeding what the [293 U.S. 388, 418] states allow. The general policy declared is ‘to remove obstructions to the free flow of interstate and foreign commerce.’ As to production, the section lays down no policy of limitation. It favors the fullest possible utilization of the present productive capacity of industries. It speaks, parenthetically, of a possible temporary restriction of production, but of what, or in what circumstances, it gives no suggestion. The section also speaks in general terms of the conservation of natural resources, but it prescribes no policy for the achievement of that end. It is manifest that this broad outline is simply an introduction of the act, leaving the legislative policy as to particular subjects to be declared and defined, if at all, by the subsequent sections.
It is no answer to insist that deleterious consequences follow the transportation of ‘hot oil’-oil exceeding state allowances. The Congress did not prohibit that transportation. The Congress did not undertake to say that the transportation of ‘hot oil’ was injurious. The Congress did not say that transportation of that oil was ‘unfair competition.’ The Congress did not declare in what circumstances that transportation should be forbidden, or require the President to make any determination as to any facts or circumstances. Among the numerous and diverse objectives broadly stated, the President was not required to choose. The President was not required to ascertain and proclaim the conditions prevailing in the industry which made the prohibition necessary. The Congress left the matter to the President without standard or rule, to be dealt with as he pleased. The effort by ingenious and diligent construction to supply a criterion still permits such a breadth of authorized action as essentially to commit to the President the functions of a Legislature rather than those of an executive or administrative [293 U.S. 388, 419] officer executing a declared legislative policy. We find nothing in section 1 which limits or controls the authority conferred by section 9(c).
We pass to the other sections of the act. Section 2 (15 USCA 702) relates to administrative agencies which may be constituted. Section 3 (15 USCA 703) provides for the approval by the President of ‘codes’ for trades or industries. These are to be codes of ‘fair competition’ and the authority is based upon certain express conditions which require findings by the President. Action under section 9(c) is not made to depend on the formulation of a code under section 3. In fact, the President’s action under section 9(c) was taken more than a month before a Petroleum Code was approved. Subdivision (e) of section 3 (15 USCA 703(e) authorizes the President, on his own motion or upon complaint, as stated, in case any article is being imported into the United States ‘in substantial quantities or increasing ratio to domestic production of any competitive article,’ under such conditions as to endanger the maintenance of a code or agreement under title 1, to cause an immediate investigation by the Tariff Commission. The authority of the President to act, after such investigation, is conditioned upon a finding by him of the existence of the underlying facts, and he may permit entry of the articles concerned upon such conditions and with such limitations as he shall find it necessary to prescribe in order that the entry shall not tend to render the code or agreement ineffective. Section 4 (15 USCA 704) relates to agreements and licenses for the purposes stated. Section 5 (15 USCA 705) refers to the application of the anti-trust laws. Sections 6 and 7 (15 USCA 706, 707) impose limitations upon the application of title 1, bearing upon trade associations and other organizations and upon the relations between employers and employees. Section 8 (15 USCA 708), contains provisions with respect to the application of the Agricultural Adjustment Act of May 12, 1933 (7 USCA 601 et seq.). [293 U.S. 388, 420] None of these provisions can be deemed to prescribe any limitation of the grant of authority in section 9(c).
Fifth. The question whether such a delegation of legislative power is permitted by the Constitution is not answered by the argument that it should be assumed that the President has acted, and will act, for what he believes to be the public good. The point is not one of motives, but of constitutional authority, for which the best of motives is not a substitute. While the present controversy relates to a delegation to the President, the basic question has a much wider application. If the Congress can make a grant of legislative authority of the sort attempted by section 9(c), we find nothing in the Constitution which restricts the Congress to the selection of the President as grantee. The Congress may vest the power in the officer of its choice or in a board or commission such as it may select or create for the purpose. Nor, with respect to such a delegation, is the question concerned merely with the transportation of oil, or of oil produced in excess of what the state may allow. If legislative power may thus be vested in the President or other grantee as to that excess of production, we see no reason to doubt that it may similarly be vested with respect to the transportation of oil without reference to the state’s requirements. That reference simply defines the subject of the prohibition which the President is authorized to enact or not to enact as he pleases. And, if that legislative power may be given to the President or other grantee, it would seem to follow that such power may similarly be conferred with respect to the transportation of other commodities in interstate commerce with or without reference to state action, thus giving to the grantee of the power the determination of what is a wise policy as to that transportation, and authority to permit or prohibit it, as the person or board or commission so chosen may [293 U.S. 388, 421] think desirable. In that view, there would appear to be no ground for denying a similar prerogative of delegation with respect to other subjects of legislation.
The Constitution provides that ‘All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.’ Article 1, 1. And the Congress is empowered ‘To make all Laws which shall be necessary and proper for carrying into Execution’ its general powers. Article 1, 8, par. 18. The Congress manifestly is not permitted to abdicate or to transfer to others the essential legislative functions with which it is thus vested. Undoubtedly legislation must often be adapted to complex conditions involving a host of details with which the national Legislature cannot deal directly. The Constitution has never been regarded as denying to the Congress the necessary resources of flexibility and practicality, which will enable it to perform its function in laying down policies and establishing standards, while leaving to selected instrumentalities the making of subordinate rules within prescribed limits and the determination of facts to which the policy as declared by the Legislature is to apply. Without capacity to give authorizations of that sort we should have the anomaly of a legislative power which in many circumstances calling for its exertion would be but a futility. But the constant recognition of the necessity and validity of such provisions and the wide range of administrative authority which has been developed by means of them cannot be allowed to obscure the limitations of the authority to delegate, if our constitutional system is to be maintained.
The Court has had frequent occasion to refer to these limitations and to review the course of congressional action. At the very outset, amid the disturbances due to war in Europe, when the national safety was imperiled[293 U.S. 388, 422] and our neutrality was disregarded, the Congress passed a series of acts, as a part of which the President was authorized, in stated circumstances, to lay and revoke embargoes, to give permits for the exportation of arms and military stores, to remit and discontinue the restraints and prohibitions imposed by acts suspending commercial intercourse with certain countries, and to permit or interdict the entrance into waters of the United States of armed vessels belonging to foreign nations. 7 These early acts were not the subject of judicial decision, and, apart from that, they afford no adequate basis for a conclusion that the Congress assumed that it possessed an unqualified power of delegation. They were inspired by the vexations of American commerce through the hostile enterprises of the belligerent powers,8 they were directed to the effective execution of policies repeatedly declared by the Congress, and they confided to the President, for the purposes and under the conditions stated, an authority which was cognate to the conduct by him of the foreign relations of the government. 9 [293 U.S. 388, 423] The first case relating to an authorization of this description was that of The Aurora v. United States, 7 Cranch, 382, 388. The cargo of that vessel had been condemned as having been imported from Great Britain in violation of the Nonintercourse Act of March 1, 1809 (2 Stat. 528). That act expired on May 1, 1810,10 when Congress passed another [293 U.S. 388, 424] act (2 Stat. 605, 606) providing that, in case either Great Britain or France before March 3, 1811, ‘shall … so revoke or modify her edicts as that they shall cease to violate the neutral commerce of the United States, which fact the President of the United States shall declare by proclamation, and if the other nation shall not within three months thereafter so revoke or modify her edicts in like manner’ (section 4), then, with respect to that nation, as stated, the provisions of the act of 1809, after three months from that proclamation, ‘shall … be revived and have full force and effect.’ On November 2, 1810, the President issued his proclamation declaring that France had so revoked or modified her edicts, and it was contended that the provisions of the act of 1809, as to the cargo in question, had thus been revived. The Court said that it could see no sufficient reason why the Legislature should not exercise its discretion in reviving the act of 1809, ‘either expressly or conditionally, as their judgment should direct.’ The provision of that act declaring ‘that it should continue in force to a certain time, and no longer,’ could not restrict the power of the Legislature to extend its operation ‘without limitation upon the occurrence of any subsequent combination of events.’ This was a decision, said the Court in Field v. Clark, 143 U.S. 649, 683 , 12 S.Ct. 495, 501, ‘that it was competent for congress to make the revival of an act depend upon the proclamation of the president, showing the ascertainment by him of the fact that the edicts of certain nations had been so revoked or modified that they did not violate the neutral commerce of the United States.’
In Field v. Clark, supra, the Court applied that ruling to the case of ‘the suspension of an act upon a contingency to be ascertained by the president, and made known by his proclamation.’ The Court was dealing with section 3 of the Act of October 1, 1890, 26 Stat. 567, 612. [293 U.S. 388, 425] That section provided that, ‘with a view to secure reciprocal trade’ with countries producing certain articles, ‘whenever, and so often as the President shall be satisfied’ that the government of any country producing them imposed ‘duties or other exactions upon the agricultural or other products of the United States’ which, in view of the free list established by the act, the President ‘may deem to be reciprocally unequal and unreasonable, he shall have the power and it shall be his duty,’ to suspend the free introduction of those articles by proclamation to that effect, and that during that suspension the duties specified by the section should be levied. The validity of the provision was challenged as a delegation to the President of legislative power. The Court reviewed the early acts to which we have referred, as well as later statutes considered to be analogous. 11 While sustaining the provision, the Court emphatically declared that the principle that ‘congress cannot delegate legislative power to the president’ is ‘universally [293 U.S. 388, 426] recognized as vital to the integrity and maintenance of the system of government ordained by the constitution.’ The Court found that the act before it was not inconsistent with that principle; that it did not ‘in any real sense, invest the president with the power of legislation.’ As ‘the suspension was absolutely required when the president ascertained the existence of a particular fact,’ it could not be said ‘that in ascertaining that fact, and in issuing his proclamation, in obedience to the legislative will, he exercised the function of making laws.’ ‘He was the mere agent of the law-making department to ascertain and declare the event upon which its expressed will was to take effect.’ Id., pages 692, 693 of 143 U.S., 12 S.Ct. 495, 504, 505. The Court referred with approval to the distinction pointed out by the Supreme Court of Ohio in Cincinnati, Wilmington, etc., Railroad v. Clinton County Commissioners, 1 Ohio St. 88, between ‘the delegation of power to make the law, which necessarily involves a discretion as to what it shall be, and conferring authority or discretion as to its execution, to be exercised under and in pursuance of the law.’
Applying that principle, authorizations given by Congress to selected instrumentalities for the purpose of ascertaining the existence of facts to which legislation is directed have constantly been sustained. Moreover the Congress may not only give such authorizations to determine specific facts, but may establish primary standards, devolving upon others the duty to carry out the declared legislative policy; that is, as Chief Justice Marshall expressed it, ‘to fill up the details’ under the general provisions made by the Legislature. Wayman v. Southard, 10 Wheat. 1, 43. In Buttfield v. Stranahan, 192 U.S. 470, 496 , 24 S.Ct. 349, 352, the Act of March 2, 1897 (29 Stat. 604, 605, 3 (see 21 USCA 43)), was upheld, which authorized the Secretary of the Treasury, upon the recommendation of a board of experts, to ‘establish uniform standards of purity, quality, and fitness[293 U.S. 388, 427] for consumption of all kinds of teas imported into the United States.’ The Court construed the statute as expressing ‘the purpose to exclude the lowest grades of tea, whether demonstrably of inferior purity, or unfit for consumption, or presumably so because of their inferior quality.’ The Congress, the Court said, thus fixed ‘a primary standard’ and committed to the Secretary of the Treasury ‘the mere executive duty to effectuate the legislative policy declared in the statute.’ ‘Congress legislated on the subject as far as was reasonably practicable, and from the necessities of the case was compelled to leave to executive officials the duty of bringing about the result pointed out by the statute.’ See Red ‘C’ Oil Co. v. Board of Agriculture of North Carolina, 222 U.S. 380, 394 , 32 S.Ct. 152.
Another notable illustration is that of the authority given to the Secretary of War to determine whether bridges and other structures constitute unreasonable obstructions to navigation and to remove such obstructions. Act of March 3, 1899, 18, 30 Stat. 1153, 1154 (33 USCA 502). By that statute the Congress declared ‘a general rule and imposed upon the Secretary of War the duty of ascertaining what particular cases came within the rule’ as thus laid down. Union Bridge Co. v. United States, 204 U.S. 364, 386 , 27 S.Ct. 367; Monongahela Bridge Co. v. United States, 216 U.S. 177, 193 , 30 S.Ct. 356; Philadelphia Co. v. Stimson, 223 U.S. 605, 638 , 32 S.Ct. 340. Upon this principle rests the authority of the Interstate Commerce Commission, in the execution of the declared policy of the Congress in enforcing reasonable rates, in preventing undue preferences and unjust discriminations, in requiring suitable facilities for transportation in interstate commerce, and in exercising other powers held to have been validly conferred. St. Louis, I.M. & S. Ry. Co. v. Taylor, 210 U.S. 281, 287 , 28 S.Ct. 616; Inter-Mountain Rate Cases, 234 U.S. 476, 486 , 34 S.Ct. 986; Avent v. United States, 266 U.S. 127, 130 , 45 S.Ct. 34; New York Central Securities Corporation [293 U.S. 388, 428] v. United States, 287 U.S. 12, 24 , 25 S., 53 S.Ct. 45. Upon a similar ground the authority given to the President, in appropriate relation to his functions as Commander-in-Chief, by the Trading with the Enemy Act, as amended by the Act of March 28, 1918 (40 Stat. 460, 12 (50 USCA Appendix 12)), with respect to the disposition of enemy property, was sustained. ‘The determination,’ said the Court, ‘of the terms of sales of enemy properties in the light of facts and conditions from time to time arising in the progress of war was not the making of a law; it was the application of the general rule laid down by the act.’ United States v. Chemical Foundation, 272 U.S. 1, 12 , 47 S.Ct. 1, 5.12
The provisions of the Radio Act of 1927 (44 Stat. 1162, 1163), providing for assignments of frequencies or wave lengths to various stations, afford another instance. In granting licenses, the Radio Commission is required to act ‘as public convenience, interest, or necessity requires.’ Section 4. In construing this provision, the Court found that the statute itself declared the policy as to ‘equality of radio broadcasting service, both of transmission and of reception,’ and that it conferred authority to make allocations and assignments in order to secure, according to stated criteria, an equitable adjustment in the distribution of facilities. 13 The standard set up was not so indefinite ‘as to confer an unlimited power.’ Federal Radio Commission v. Nelson Brothers Co.,289 U.S. 266, 279 , 285 S., 53 S.Ct. 627, 634.
So also, from the beginning of the government, the Congress has conferred upon executive officers the power to make regulations-‘not for the government of their departments, but for administering the laws which did govern.’ United States v. Grimaud, 220 U.S. 506, 517 , 31 S.Ct. 480, 483. Such regulations become, indeed, binding rules of con- [293 U.S. 388, 429] duct, but they are valid only as subordinate rules and when found to be within the framework of the policy which the Legislature has sufficiently defined. In the case of Grimaud, supra, a regulation made by the Secretary of Agriculture requiring permits for grazing sheep on a forest reserve of lands belonging to the United States was involved. The Court referred to the various acts for the establishment and management of forest reservations and the authorization of rules which would ‘insure the objects of such reservations,’ that is, ‘to regulate their occupancy and use, and to preserve the forests thereon from destruction.’ The Court observed that ‘it was impracticable for Congress to provide general regulations for these various and varying details of management,’ and that, in authorizing the Secretary of Agriculture to meet local conditions, Congress ‘was merely conferring administrative functions upon an agent, and not delegating to him legislative power.’ Id., pages 515, 516 of 220 U. S., 31 S.Ct. 480, 482. The Court quoted with approval the statement of the principle in Field v. Clark, supra, that the Congress cannot delegate legislative power, and upheld the regulation in question as an administrative rule for the appropriate execution of the policy laid down in the statute. See Wayman v. Southard, supra; Interstate Commerce Commission v. Goodrich Transit Co., 224 U.S. 194, 214 , 215 S., 32 S.Ct. 436; Selective Draft Law Cases, 245 U.S. 366, 389 , 38 S.Ct. 159, L.R.A. 1918C, 361, Ann.Cas. 1918B, 856; McKinley v. United States, 249 U.S. 397 , 39 S.Ct. 324.
The applicable considerations were reviewed in Hampton, Jr., & Co. v. United States, 276 U.S. 394 , 48 S.Ct. 348, 352, where the Court dealt with the so-called ‘flexible tariff provision’ of the Act of September 21, 1922 (42 Stat. 858, 941, 942, 315 (19 USCA 154-159)), and with the authority which it conferred upon the President. The Court applied the same principle that permitted the Congress to exercise its ratemaking power in interstate commerce, and found that a similar provision was justified for the fixing of customs duties; that is, as the Court said: ‘If Congress shall lay down by [293 U.S. 388, 430] legislative act an intelligible principle to which the person or body authorized to fix such rates is directed to conform, such legislative action is not a forbidden delegation of legislative power. If it is thought wise to vary the customs duties according to changing conditions of production at home and abroad, it may authorize the Chief Executive to carry out this purpose, with the advisory assistance of a Tariff Commission appointed under congressional authority.’ The Court sustained the provision upon the authority of Field v. Clark, supra, repeating with approval what was there said, that ‘What the President was required to do was merely in execution of the act of Congress.’ Id., pages 409-411 of 276 U.S., 48 S.Ct. 348, 352.
Thus, in every case in which the question has been raised, the Court has recognized that there are limits of delegation which there is no constitutional authority to transcend. We think that section 9(c) goes beyond those limits. As to the transportation of oil production in excess of state permission, the Congress has declared no policy, has established no standard, has laid down no rule. There is no requirement, no definition of circumstances and conditions in which the transportation is to be allowed or prohibited.
If section 9(c) were held valid, it would be idle to pretend that anything would be left of limitations upon the power of the Congress to delegate its lawmaking function. The reasoning of the many decisions we have reviewed would be made vacuous and their distinctions nugatory. Instead of performing its lawmaking function, the Congress could at will and as to such subjects as it chooses transfer that function to the President or other officer or to an administrative body. The question is not of the intrinsic importance of the particular statute before us, but of the constitutional processes of legislation which are an essential part of our system of government. [293 U.S. 388, 431] Sixth. There is another objection to the validity of the prohibition laid down by the executive order under section 9(c). The executive order contains no finding, no statement of the grounds of the President’s action in enacting the prohibition. Both section 9(c) and the executive order are in notable contrast with historic practice (as shown by many statutes and proclamations we have cited in the margin14) by which declarations of policy are made by the Congress and delegations are within the framework of that policy and have relation to facts and conditions to be found and stated by the President in the appropriate exercise of the delegated authority. If it could be said that from the four corners of the statute any possible inference could be drawn of particular circumstances or conditions which were to govern the exercise of the authority conferred, the President could not act validly without having regard to those circumstances and conditions. And findings by him as to the existence of the required basis of his action would be necessary to sustain that action, for otherwise the case would still be one of an unfettered discretion as the qualification of authority would be ineffectual. The point is pertinent in relation to the first section of the National Industrial Recovery Act. We have said that the first section is but a general introduction, that it declares no policy and defines no standard with respect to the transportation which is the subject of section 9(c). But if from the extremely broad description contained in that section and the widely different matters to which the section refers, it were possible to derive a statement of prerequisites to the President’s action under section 9(c), it would still be necessary for the President to comply with those conditions and to show that compliance as the ground of his prohibition. To hold [293 U.S. 388, 432] that he is free to select as he chooses from the many and various objects generally described in the first section, and then to act without making any finding with respect to any object that he does select, and the circumstances properly related to that object, would be in effect to make the conditions inoperative and to invest him with an uncontrolled legislative power.
We are not dealing with action which, appropriately belonging to the executive province, is not the subject of judicial review or with the presumptions attaching to executive action. 15 To repeat, we are concerned with the question of the delegation of legislative power. If the citizen is to be punished for the crime of violating a legislative order of an executive officer, or of a board or commission, due process of law requires that it shall appear that the order is within the authority of the officer, board, or commission, and, if that authority depends on determinations of fact, those determinations must be shown. As the Court said in Wichita Railroad & Light Co. v. Public Utilities Commission, 260 U.S. 48, 59 , 43 S.Ct. 51, 55: ‘In creating such an administrative agency, the Legislature, to prevent its being a pure delegation of legislative power, must enjoin upon it a certain course of procedure and certain rules of decision in the performance of its function. It is a wholesome and necessary principle that such an agency must pursue the procedure and rules enjoined, and show a substantial compliance therewith to give validity to its action. When, therefore, such an administrative agency is required as a condition precedent to an order, to make a finding of facts, the validity of the order must rest upon the needed finding. If it is lacking, the order is ineffective. [293 U.S. 388, 433] It is pressed on us that the lack of an express finding may be supplied by implication and by reference to the averments of the petition invoking the action of the Commission. We cannot agree to this.’ Referring to the ruling in the Wichita Case, the Court said in Mahler v. Eby, 264 U.S. 32, 44 , 44 S.Ct. 283, 288: ‘We held that the order in that case, made after a hearing and ordering a reduction, was void for lack of the express finding in the order. We put this conclusion, not only on the language of the statute, but also on general principles of constitutional government.’ We cannot regard the President as immune from the application of these constitutional principles. When the President is invested with legislative authority as the delegate of Congress in carrying out a declared policy, he necessarily acts under the constitutional restriction applicable to such a delegation.
We see no escape from the conclusion that the Executive Orders of July 11, 1933, and July 14, 1933, Nos. 6199, 6204 (15 USCA 709 note), and the regulations issued by the Secretary of the Interior thereunder, are without constitutional authority.
The decrees of the Circuit Court of Appeals are reversed, and the causes are remanded to the District Court, with direction to modify its decrees in conformity with this opinion so as to grant permanent injunctions, restraining the defendants from enforcing those orders and regulations.
It is so ordered.
Mr. Justice CARDOZO (dissenting).
With all that is said in the opinion of the court as to the Code of Fair Competition adopted by the President August 16, 1933, for the Governance of the Petroleum Industry, I am fully in accord. No question is before us at this time as to the power of Congress to regulate production. No question is here as to its competence to clothe the President with a delegated power whereby a code of fair competition may become invested with the force of[293 U.S. 388, 434] law. The petitioners were never in jeopardy by force of such a code or of regulations made thereunder. They were not in jeopardy because there was neither statute nor regulation subjecting them to pains or penalties if they set the code at naught. One must deplore the administrative methods that brought about uncertainty for a time as to the terms of executive orders intended to be law. Even so, the petitioners do not stand in need of an injunction to restrain the enforcement of a non-existent mandate.
I am unable to assent to the conclusion that section 9(c) of the National Recovery Act, 15 USCA 709(c), a section delegating to the President a very different power from any that is involved in the regulation of production or in the promulgation of a code, is to be nullified upon the ground that his discretion is too broad or for any other reason. My point of difference with the majority of the court is narrow. I concede that to uphold the delegation there is need to discover in the terms of the act a standard reasonably clear whereby discretion must be governed. I deny that such a standard is lacking in respect of the prohibitions permitted by this section when the act with all its reasonable implications is considered as a whole. What the standard is becomes the pivotal inquiry.
As to the nature of the act which the President is authorized to perform there is no need for implication. That at least is definite beyond the possibility of challenge. He may prohibit the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted by any state law or valid regulation or order prescribed thereunder. He is not left to roam at will among all the possible subjects of interstate transportation, picking and choosing as he pleases. I am far from asserting now that delegation would be [293 U.S. 388, 435] valid if accompanied by all that latitude of choice. In the laying of his interdict he is to confine himself to a particular commodity, and to that commodity when produced or withdrawn from storage in contravention of the policy and statutes of the states. He has choice, though within limits, as to the occasion, but none whatever as to the means. The means have been prescribed by Congress. There has been no grant to the Executive of any roving commission to inquire into evils and then, upon discovering them, do anything he pleases. His act being thus defined, what else must he ascertain in order to regulate his discretion and bring the power into play? The answer is not given if we look to section 9(c) only, but it comes to us by implication from a view of other sections where the standards are defined. The prevailing opinion concedes that a standard will be as effective if imported into section 9(c) by reasonable implication as if put there in so many words. If we look to the whole structure of the statute, the test is plainly this, that the President is to forbid the transportation of the oil when he believes, in the light of the conditions of the industry as disclosed from time to time, that the prohibition will tend to effectuate the declared policies of the act-not merely his own conception of its policies, undirected by any extrinsic guide, but the policies announced by section 1 (15 USCA 701) in the forefront of the statute as an index to the meaning of everything that follows. 1 [293 U.S. 388, 436] Oil produced or transported in excess of a statutory quota is known in the industry as ‘hot oil,’ and the record is replete with evidence as to the effect of such production and transportation upon the economic situation and upon national recovery. A declared policy of Congress in the adoption of the act is ‘to eliminate unfair competitive practices.’ Beyond question an unfair competitive practice exists when ‘hot oil’ is transported in interstate commerce with the result that lawabiding dealers must compete with lawbreakers. Here is one of the standards set up in the act to guide the President’s discretion. Another declared policy of Congress is ‘to conserve natural resources.’ Beyond question the disregard of statutory quotas is wasting the oil fields in Texas and other states and putting in jeopardy of exhaustion one of the treasures of the nation. All this is developed in the record and in the arguments of counsel for the government with a wealth of illustration. Here is a second standard. Another declared policy of Congress is to ‘promote the fullest possible utilization of the present productive capacity of industries,’ and ‘except as may be temporarily required’ to ‘avoid undue restriction of production.’ Beyond question prevailing conditions in the oil industry have brought about the need for temporary restriction in order to promote in the long run the fullest productive capacity of business in all its many [293 U.S. 388, 437] branches, for the effect of present practices is to diminish that capacity by demoralizing prices and thus increasing unemployment. The ascertainment of these facts at any time or place was a task too intricate and special to be performed by Congress itself through a general enactment in advance of the event. All that Congress could safely do was to declare the act to be done and the policies to be promoted, leaving to the delegate of its power the ascertainment of the shifting facts that would determine the relation between the doing of the act and the attainment of the stated ends. That is what it did. It said to the President, in substance: You are to consider whether the transportation of oil in excess of the statutory quotas is offensive to one or more of the policies enumerated in section 1, whether the effect of such conduct is to promote unfair competition or to waste the natural resources or to demoralize prices or to increase unemployment or to reduce the purchasing power of the workers of the nation. If these standards or some of them have been flouted with the result of a substantial obstruction to industrial recovery, you may then by a prohibitory order eradicate the mischief.
I am not unmindful of the argument that the President has the privilege of choice between one standard and another, acting or failing to act according to an estimate of values that is individual and personal. To describe his conduct thus is to ignore the essence of his function. What he does is to inquire into the industrial facts as they exist from time to time. Cf. Hampton, Jr., & Co. v. United States, 276 U.S. 394 , at page 409, 48 S.Ct. 348; Locke’s Appeal, 72 Pa. 491, 498, 13 Am.Rep. 716, quoted with approval in Field v. Clark, 143 U.S. 649 , at page 694, 12 S.Ct. 495. These being ascertained, he is not to prefer one standard to another in any subjective attitude of mind, in any personal or willful way. He is to study the facts objectively, the violation of a standard[293 U.S. 388, 438] impelling him to action or inaction according to its observed effect upon industrial recovery-the ultimate end, as appears by the very heading of the title, to which all the other ends are tributary and mediate. Nor is there any essential conflict among the standards inter se, at all events when they are viewed in relation to section 9 (c) and the power there conferred. In its immediacy, the exclusion of oil from the channels of transportation is a restriction of interstate commerce, not a removal of obstructions. This is self-evident, and, of course, was understood by Congress when the discretionary power of exclusion was given to its delegate. But what is restriction in its immediacy may in its ultimate and larger consequences be expansion and development. Congress was aware that for the recovery of national well-being there might be need of temporary restriction upon production in one industry or another. It said so in section 1. When it clothed the President with power to impose such a restriction-to prohibit the flow of oil illegally produced-it laid upon him a mandate to inquire and determine whether the conditions in that particular industry were such at any given time as to make restriction helpful to the declared objectives of the act and to the ultimate attainment of industrial recovery. If such a situation does not present an instance of lawful delegation in a typical and classic form (Field v. Clark, 143 U.S. 649 , 12 S.Ct. 495; United States v. Grimaud, 220 U.S. 506 , 31 S.Ct. 480; Hampton, Jr., & Co. v. United States, 276 U.S. 394 , 48 S.Ct. 348), categories long established will have to be formulated anew.
In what has been written, I have stated, but without developing the argument, that by reasonable implication the power conferred upon the President by section 9(c) is to be read as if coupled with the words that he shall exercise the power whenever satisfied that by doing so he will effectuate the policy of the statute as theretofore declared. Two canons of interpretation, each familiar to our law, [293 U.S. 388, 439] leave no escape from that conclusion. One is that the meaning of a statute is to be looked for, not in any single section, but in all the parts together and in their relation to the end in view. Cherokee Intermarriage Cases (Red Bird v. U.S.), 203 U.S. 76, 89 , 27 S.Ct. 29; McKee v. United States, 164 U.S. 287 , 17 S.Ct. 92; Talbott v. Board of Com’rs of Silver Bow County, 139 U.S. 438, 443 , 444 S., 11 S.Ct. 594. The other is that, when a statute is reasonably susceptible of two interpretations, by one of which it is unconstitutional and by the other valid, the court prefers the meaning that preserves to the meaning that destroys. United States v. Delaware & Hudson Co., 213 U.S. 366, 407 , 29 S.Ct. 527; Knights Templars’ & Masons’ Life Indemnity Co. v. Jarman, 187 U.S. 197, 205 , 23 S.Ct. 108. Plainly, section 1, with its declaration of the will of Congress, is the chart that has been furnished to the President to enable him to shape his course among the reefs and shallows of this act. If there could be doubt as to this when section 1 (15 USCA 701) is viewed alone, the doubt would be dispelled by the reiteration of the policy in the sections that come later. In section 2 (15 USCA 702). which relates to administrative agencies, in section 3 (15 USCA 703), which relates to codes of fair competition, in section 4 (15 USCA 704), which relates to agreements and licenses, in section 6 (15 USCA 706), which prescribes limitations upon the application of the statute, and in section 10 (15 USCA 710), which permits the adoption of rules and regulations, authority is conferred upon the President to do one or more acts as the delegate of Congress when he is satisfied that thereby he will aid ‘in effectuating the policy of this title’ or in carrying out its provisions. True section 9 (15 USCA 709), the one relating to petroleum, does not by express words of reference embody the same standard, yet nothing different can have been meant. What, indeed, is the alternative? Either the statute means that the President is to adhere to the declared policy of Congress, or it means that he is to exercise a merely arbitrary will. The one construction invigorates the act; the other saps its life. A choice between them is not hard. [293 U.S. 388, 440] I am persuaded that a reference, express or implied, to the policy of Congress as declared in section 1, is a sufficient definition of a standard to make the statute valid. Discretion is not unconfined and vagrant. It is canalized within banks that keep it from overflowing. Field v. Clark, 143 U.S. 649 , 12 S.Ct. 495, United States v. Grimaud, 220 U.S. 506 , 31 S.Ct. 480, and Hampton, Jr., & Co. v. United States, 276 U.S. 394 , 48 S.Ct. 348, state the applicable principle. Under these decisions the separation of powers between the Executive and Congress is not a doctrinaire concept to be made use of with pedantic rigor. There must be sensible approximation, there must be elasticity of adjustment, in response to the practical necessities of government, which cannot foresee to-day the developments of tomorrow in their nearly infinite variety. The Interstate Commerce Commission, probing the economic situation of the railroads of the country, consolidating them into systems, shaping in numberless ways their capacities and duties, and even making or unmaking the prosperity of great communities (Texas & Pacific R. Co. v. United States, 289 U.S. 627 , 53 S.Ct. 768 ), is a conspicuous illustration. See, e.g., 41 Stat. 479-482, c. 91, 405, 406, 407, 408, 42 Stat. 27, c. 20, 49 U.S.C. 3, 4, 5 (49 USCA 3- 5). Cf. Inter-Mountain Rate Case (U.S. v. Atchison, T. & S.F.R. Co.), 234 U.S. 476 , 34 S.Ct. 986; N.Y. Central Securities Co. v. United States, 287 U.S. 12, 24 , 25 S., 53 S.Ct. 45; Sharfman, The Interstate Commerce Commission, vol. 2, pp. 357, 365. There could surely be no question as to the validity of an act whereby carriers would be prohibited from transporting oil produced in contravention of a statute if in the judgment of the Commission the practice was demoralizing the market and bringing disorder and insecurity into the national economy. What may be delegated to a commission may be delegated to the President. ‘Congress may feel itself unable conveniently to determine exactly when its exercise of the legislative power should become effective, because dependent on future conditions, and it may leave [293 U.S. 388, 441] the determination of such time to the decision of an executive.’ Hampton, Jr., & Co. v. United States, supra, at page 407 of 276 U.S., 48 S.Ct. 348, 351. Only recently (1932) the whole subject was discussed with much enlightenment in the Report by the Committee on Ministers’ Powers to the Lord Chancellor of Great Britain. See, especially, pages 23, 51. In the complex life of to-day, the business of government could not go on without the delegation, in greater or less degree, of the power to adapt the rule to the swiftly moving facts.
A striking illustration of this need is found in the very industry affected by this section, the production of petroleum and its transportation between the states. At the passage of the National Recovery Act (48 Stat. 195) no one could be certain how many of the states would adopt valid quota laws, or how generally the laws would be observed when adopted, or to what extent illegal practices would affect honest competitors or the stability of prices or the conservation of natural resources or the return of industrial prosperity. Much would depend upon conditions as they shaped themselves thereafter. Violations of the state laws might turn out to be so infrequent that the honest competitor would suffer little, if any, damage. The demand for oil might be so reduced that there would be no serious risk of waste, depleting or imperiling the resources of the nation. Apart from these possibilities, the business might become stabilized through voluntary co-operation or the adoption of a code or otherwise. Congress not unnaturally was unwilling to attach to the state laws a sanction so extreme as the cutting off of the privilege of interstate commerce unless the need for such action had unmistakably developed. What was left to the President was to ascertain the conditions prevailing in the industry, and prohibit or fail to prohibit according to the effect of those conditions upon the phases of the national policy relevant thereto.[293 U.S. 388, 442] From a host of precedents available, both legislative and judicial, I cite a few as illustrations. By an act approved June 4, 1794, during the administration of Washington (1 Stat. 372; Field v. Clark, 143 U.S. 649, 683 , 12 S.Ct. 495) Congress authorized the President, when Congress was not in session, and for a prescribed period ‘whenever, in his opinion, the public safety shall so require, to lay an embargo on all ships and vessels in the ports or the United States, or upon the ships and vessels of the United States, or the ships and vessels of any foreign nation, under such regulations as the circumstances of the case may require, and to continue or revoke the same, whenever he shall think proper.’ By an act of 1799, February 9 (1 Stat. 613, 615, 4), suspending commercial intercourse with France and its dependencies, ‘it shall be lawful for the President of the United States, if he shall deem it expedient and consistent with the interest of the United States, by his order, to remit, and discontinue, for the time being, the restraints and prohibitions aforesaid; … and also to revoke such order (i.e., ree stablish the restraints), whenever, in his opinion, the interest of the United States shall require.’ By an act of October 1, 1890 (26 Stat. 567, 612), sustained in Field v. Clark, supra, the President was authorized to suspend by proclamation the free introduction into this country of enumerated articles when satisfied that a country producing them imposes duties or other exactions upon the agricultural or other products of the United States which he may deem to be reciprocally unequal or unreasonable. By an act of September 21, 1922 (42 Stat. 858, 941, 945 (19 USCA 154- 159, 182 et seq.)), sustained in Hampton, Jr., & Co. v. United States, supra, the President was empowered to increase or decrease tariff duties so as to equalize the differences between the costs of production at home and abroad, and empowered, by the same means, to give redress for other acts of discrimination or unfairness ‘when he finds that the public interest will be [293 U.S. 388, 443] served thereby.’ 19 USCA 182. Delegation was not confined to an inquiry into the necessity or occasion for the change. It included the magnitude of the change, the delegate thus defining the act to be performed. By an act of June 4, 1897 (30 Stat. 11, 35), amended in 1905 (33 Stat. 628), regulating the forest reservations of the nation, the purpose of the reservations was declared to be ‘to improve and protect the forest within the reservation,’ and to secure ‘favorable conditions of water flows, and to furnish a continuous supply of timber for the use and necessities of citizens of the United States.’ Without further guide or standard, the Secretary of Agriculture was empowered to ‘make such rules and regulations and establish such service as will insure the objects of such reservations, namely, to regulate their occupancy and use and to preserve the forests thereon from destruction.’ The validity of these provisions was upheld in United States v. Grimaud, supra, as against the claim by one who violated the rules that there had been an unlawful delegation. Many other precedents are cited in the margin. 2 They teach one lesson and a clear one.
There is no fear that the nation will drift from its ancient moorings as the result of the narrow delegation of power permitted by this section. What can be done under cover of that permission is closely and clearly circumscribed both as to subject-matter and occasion. The statute was framed in the shadow of a national disaster. A host of unforeseen contingencies would have to be faced from day to day, and faced with a fullness of under [293 U.S. 388, 444] standing unattainable by any one except the man upon the scene. The President was chosen to meet the instant need.
A subsidiary question remains as to the form of the executive order, which is copied in the margin. 3 The question is a subsidiary one, for, unless the statute is invalid, another order with fuller findings or recitals may correct the informalities of this one, if informalities there are. But the order to my thinking is valid as it stands. The President was not required either by the Constitution or by any statute to state the reasons that had induced him to exercise the granted power. It is enough that the grant of power had been made and that pursuant to that grant he had signified the will to act. The will to act being declared, the law presumes that the declaration was preceded by due inquiry and that it was rooted in sufficient grounds. Such, for a hundred years and more, has been the doctrine of this court. The act of February 28, 1795 (1 Stat. 424), authorized the President ‘whenever the United States shall be invaded, or be in imminent danger of invasion from any foreign nation or Indian tribe,’ to call forth such number of the militia of the states as he shall deem necessary and to issue his [293 U.S. 388, 445] orders to the appropriate officers for that purpose. Cf. Const. art. 1, 8, cl. 15. When war threatened in the summer of 1812, President Madison, acting under the authority of that statute, directed Major General Dearborn to requisition from New York, Massachusetts, and Connecticut certain numbers of the states’ militia. American State Papers, Military Affairs, vol. 1, pp. 322-325. No finding of ‘imminent danger of invasion’ was made by the President in any express way, nor was such a finding made by the Secretary of War or any other official. The form of the requisitions to Massachusetts and Connecticut appears in the state papers of the government (American State Papers, supra); the form of those to New York was almost certainly the same. Replevin was brought by a New York militia man who refused to obey the orders, and whose property had been taken in payment of a fine imposed by a court martial. The defendant, a deputy marshal, defended on the ground that the orders were valid, and the plaintiff demurred because there was no allegation that the President had adjudged that there was imminent danger of an invasion. The case came to this court. Martin v. Mott, 12 Wheat. 19, 32. In an opinion by Story, J., the court upheld the seizure. ‘The argument is (he wrote) that the power confided to the president is a limited power, and can be exercised only in the cases pointed out in the statute, and therefore, it is necessary to aver the facts which bring the exercise within the purview of the statute. In short, the same principles are sought t be applied to the delegation and exercise of this power intrusted to the executive of the nation for great political purposes, as might be applied to the humblest officer in the government, acting upon the most narrow and special authority. It is the opinion of the court, that this objection cannot be maintained. When the president exercises an authority confided to him by law, the presumption is, that it is exercised in pursuance [293 U.S. 388, 446] of law. Every public officer is presumed to act in obedience to his duty, until the contrary is shown; and, a fortiori, this presumption ought to be favor ably applied to the chief magistrate of the Union. It is not necessary to aver, that the act which he might rightfully do, was so done.’ A like presumption has been applied in other cases and in a great variety of circumstances. Philadelphia & Trenton R. Co. v. Stimpson, 14 Pet. 448, 458; Rankin v. Hoyt, 4 How. 327, 335; Carpenter v. Rannels, 19 Wall. 138, 146; Confiscation Cases ( U.S. v. Clarke), 20 Wall. 92, 109; Knox County v. Ninth National Bank, 147 U.S. 91, 97 , 13 S.Ct. 267; United States v. Chemical Foundation, 272 U.S. 1, 14 , 15 S., 47 S.Ct. 1. This does not mean that the individual is helpless in the face of usurpation. A court will not revise the discretion of the Executive, sitting in judgment on his order as if it were the verdict of a jury. Martin v. Mott, supra. On the other hand, we have said that his order may not stand if it is an act of mere oppression, an arbitrary fiat that overleaps the bounds of judgment. Sterling v. Constantin, 287 U.S. 378, 399 , 400 S., 401, 53 S.Ct. 190. The complainants and others in their position may show, if they can, that in no conceivable aspect was there anything in the conditions of the oil industry in July, 1933, to establish a connection between the prohibitory order and the declared policies of the Congress. This is merely to say that the standard must be such as to have at least a possible relation to the act to be performed under the delegated power. One can hardly suppose that a prohibitory order would survive a test in court if the Executive were to assert a relation between the transportation of petroleum and the maintenance of the gold standard or the preservation of peace in Europe or the Orient. On the other hand, there can be no challenge of such a mandate unless the possibility of a rational nexus is lacking alto- [293 U.S. 388, 447] gether. Here, in the case at hand, the relation between the order and the standard is manifest upon the face of the transaction from facts so notorious as to be within the range of our judicial notice. There is significance in the fact that it is not challenged even now.
The President, when acting in the exercise of a delegated power, is not a quasi judicial officer, whose rulings are subject to review upon certiorari or appeal (Chicago Junction Case, 264 U.S. 258, 265 , 44 S.Ct. 317; cf. Givens v. Zerbst, 255 U.S. 11, 20 , 41 S.Ct. 227), or an administrative agency supervised in the same way. Officers and bodies such as those may be required by reviewing courts to express their decision in formal and explicit findings to the end that review may be intelligent. Florida v. United States, 282 U.S. 194, 215 , 51 S.Ct. 119; Beaumont, Sour Lake & Western R. Co. v. United States, 282 U.S. 74, 86 , 51 S.Ct. 1; United States v. Baltimore & Ohio R. Co., 293 U.S. 454 , 55 S.Ct. 268, Jan. 7, 1935. Cf. Public Service Commission of Wisconsin v. Wisconsin Telephone Co ., 289 U.S. 67 , 53 S.Ct. 514. Such is not the position or duty of the President. He is the Chief Executive of the nation, exercising a power committed to him by Congress, and subject, in respect of the formal qualities of his acts, to the restrictions, if any, accompanying the grant, but not to any others. One will not find such restrictions either in the statute itself or in the Constitution back of it. The Constitution of the United States is not a code of civil practice.
The prevailing opinion cites Wichita Railroad & Light Co. v. Public Utilities Commission of Kansas, 260 U.S. 48 , 43 S.Ct. 51, and Mahler v. Eby, 264 U.S. 32, 44 , 44 S.Ct. 283. One dealt with a delegation to a public utilities commission of the power to reduce existing rates if they were found to be unreasonable; the other a delegation to the Secretary of Labor of the power to deport aliens found after notice and a hearing to be undesirable residents. In each it was a [293 U.S. 388, 448] specific requirement of the statute that the basic fact conditioning action by the administrative agency be stated in a finding and stated there expressly. If legislative power is delegated subject to a condition, it is a requirement of constitutional government that the condition be fulfilled. In default of such fulfillment, there is in truth no delegation, and hence no official action, but only the vain show of it. The analogy is remote between power so conditioned and that in controversy here.
Discretionary action does not become subject to review because the discretion is legislative rather than executive. If the reasons for the prohibition now in controversy had been stated in the order, the jurisdiction of the courts would have been no greater and no less. Investigation resulting in an order directed against a particular person after notice and a hearing is not to be confused with investigation preliminary and incidental to the formulation of a rule. An embargo under the act of 1794 would have been more than a nullity though there had been a failure to recite that what was done was essential to the public safety or to enumerate the reasons leading to that conclusion. If findings are necessary as a preamble to general regulations, the requirement must be looked for elsewhere than in the Constitution of the nation.
There are other questions as to the validity of section 9(c), 15 USCA 709(c), in matters unrelated to the delegation of power to the President, and also questions as to the regulations adopted in behalf of the President by the Secretary of the Interior. They are not considered in the prevailing opinion. However, they have been well reviewed and disposed of in the opinion of Sibley, J., writing for the court below. It is unnecessary at this time to dwell upon them further.
The decree in each case should be affirmed.
Footnotes
[ Footnote 1 ] The full text of the Executive Order of July 11, 1933, is as follows:
- ‘Executive Order
- ‘Prohibition of Transportation in Interstate and Foreign Commerce of Petroleum and the Products Thereof Unlawfully Produced or Withdrawn from Storage.
- ‘By virtue of the authority vested in me by the Act of Congress entitled ‘An Act To encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,’ approved June 16, 1933 (Public No. 67, 73d Congress), the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly authorized agency of a State, is hereby prohibited.
- ‘Franklin D. Roosevelt.
- ‘The White House,
- ‘July 11, 1933.’
[ Footnote 2 ] The Executive Order of July 14, 1933, is as follows:
- ‘Executive Order
- ‘Prohibition of Transportation in Interstate and Foreign Commerce of Petroleum and the Products Thereof Unlawfully Produced or Withdrawn from Storage.
- ‘By virtue of the authority vested in me by the Act of Congress, entitled ‘An Act To encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,’ approved June 16, 1933 (Public No. 67, 73d Congress), in order to effectuate the intent and purpose of the Congress as expressed in Section 9(c) thereof, and for the purpose of securing the enforcement of my order of July 11, 1933, issued pursuant to said act, I hereby authorize the Secretary of the Interior to exercise all the powers vested in me, for the purpose of enforcing Section 9(c) of said act and said order, including full authority to designate and appoint such agents and to set up such boards and agencies as he may see fit, and to promulgate such rules and regulations as he may deem necessary.
- ‘Franklin D. Roosevelt.
- ‘The White House,
- ‘July 14, 1933.’
[ Footnote 3 ] The Executive Order of August 19, 1933, is as follows:
- ‘Executive Order
- ‘Code of Fair Competition for the Petroleum Industry.
- ‘An application having been duly made, pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for my approval of a Code of Fair Competition for the Petroleum Industry, and hearings having been held thereon and the Administrator having rendered his report together with his recommendations and findings with respect thereto, and the Administrator having found that the said Code of Fair Competition complies in all respects with the pertinent provisions of Title I of said Act and that the requirements of clauses (1) and (2) of subsection (a) of Section 3 of the said Act have been met:
- ‘Now, Therefore, I, Franklin D. Roosevelt, President of the United States, pursuant to the authority vested in me by Title I of the National Industrial Recovery Act, approved June 16, 1933, and otherwise, do adopt and approve the report, recommendations and findings of the Administrator and do order that the said Code of Fair Competition be and it is hereby approved.
- ‘Franklin D. Roosevelt.
- ‘Approval Recommended:
- ‘Hugh S. Johnson, Administrator.
- ‘The White House,
- ‘August 19, 1933.’
[ Footnote 4 ] The government states that, although the second paragraph of section 4 of article III was a part of the code for a short period prior to September 13, 1933, no legal basis exists for prosecution for production in Texas during that period.
[ Footnote 5 ] See United States v. The Schooner Peggy, 1 Cranch, 103, 109, 110; Dinsmore v. Southern Express Co., 183 U.S. 115 ;, 120, 22 S.Ct. 45; Crozier v. Fried Krupp Aktiengesellschaft, 224 U.S. 290, 302 , 32 S.Ct. 488; Gulf, Colorado & Santa Fe R. Co. v. Dennis, 224 U.S. 503, 507 , 32 S.Ct. 542; Watts, Watts & Co. v. Unione Austriaca, 248 U.S. 9, 21 , 39 S.Ct. 1, 3 A.L.R. 323; Duplex Printing Press Co. v. Deering, 254 U.S. 443, 464 , 41 S.Ct. 172, 16 A.L.R. 196; American Steel Foundries v. Tri-City Council, 257 U.S. 184, 201 , 42 S.Ct. 72, 27 A.L.R. 360; Texas Company v. Brown, 258 U.S. 466, 474 , 42 S.Ct. 375.
[ Footnote 6 ] The text of section 1 is as follows:
- ‘Section 1. A national emergency productive of widespread unemployment and disorganization of industry, which burdens interstate and foreign commerce, affects the public welfare, and undermines the standards of living of the American people, is hereby declared to exist. It is hereby declared to be the policy of Congress to remove obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof; and to provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among trade groups, to induce and maintain united action of labor and management under adequate governmental sanctions and supervision, to eliminate unfair competitive practices, to promote the fullest possible utilization of the present productive capacity of industries, to avoid undue restriction of production (except as may be temporarily required), to increase the consumption of industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment, to improve standards of labor, and otherwise to rehabilitate industry and to conserve natural resources.’
[ Footnote 7 ] Acts of June 4, 1794, 1 Stat. 372; March 3, 1795, 1 Stat. 444; June 13, 1798, 1 Stat. 565, 566; February 9, 1799, 1 Stat. 613, 615; February 27, 1800, 2 Stat. 7, 9, 10; March 3, 1805, 2 Stat. 339, 341, 342; February 28, 1806, 2 Stat. 351, 352; April 22, 1808, 2 Stat. 490.
[ Footnote 8 ] Marshall’s Life of Washington, vol. 2, p. 319 et seq.
[ Footnote 9 ] Thus, prior to the Act of June 4, 1794 (1 Stat. 372), the Congress had laid embargoes, for limited periods, upon vessels in ports of the United States bound to foreign ports. Resolutions of March 26, 1794, and April 18, 1794, 1 Stat. 400, 401. Fearing that the national safety might be endangered, the President, by the Act of June 4, 1794, was authorized to lay an embargo, with appropriate regulations, whenever he found that ‘the public safety shall so require’ (section 1), the authority not to be exercised while the Congress was in session and the embargo to be limited in any case to 15 days after the commencement of the next session. The Act of March 3, 1795 (1 Stat. 444), authorizing the President to permit the exportation of arms, etc., was ‘in cases connected with the security of the commercial interest of the United States, and for public purposes only.’ By the Act of June 13, 1798 (1 Stat. 565), commercial intercourse was suspended between the United States and France and its dependencies. The act was to continue only until the end of the next session of Congress, and it was provided (section 5) that if, before the next session, the government of France ‘shall clearly disavow, and shall be found to refrain from the aggressions, depredations and hostilities’ against the vessels and other property of citizens of the United States, and shall acknowledge the neutrality of the United States, ‘it shall be lawful for the President,’ ‘being well ascertained of the premises,’ to remit and discontinue the prohibitions and restraints imposed by the act and to make proclamation accordingly. (continued on p. 423)
The Act of February 9, 1799 (1 Stat. 613), further suspended commercial intercourse between the United States and France and its dependencies until March 3, 1800, and gave a similar authority (section 4) to the President to remit and discontinue the restraints and prohibitions of the act, ‘if he shall deem it expedient and consistent with the interest of the United States,’ either with respect to the French Republic or to any place belonging to that republic, ‘with which a commercial intercourse may safely be renewed,’ and to revoke such order if he found that the interest of the United States so required. The suspension of commercial intercourse was renewed by the Act of February 27, 1800 (2 Stat. 7) until March 3, 1801, with a similar provision as to the authority of the President. The Act of March 3, 1805 (2 Stat. 339), related to persons committing treason, felony, etc., within the jurisdiction of the United States and taking refuge in foreign armed vessels, and the authority to the President to permit or prevent the entry of such vessels into the waters of the United States (section 4) was ‘in order to prevent insults to the authority of the laws, whereby the peace of the United States with foreign nations may be endangered.’ See, also, Act of April 22, 1808, 2 Stat. 490. See, also, Proclamations of President Adams, ‘Works of John Adams,’ vol. IX, pp. 176, 177.
[ Footnote 10 ] See Act of June 28, 1809, 2 Stat. 550.
[ Footnote 11 ] Acts of March 3, 1815, 3 Stat. 224; March 3, 1817, 3 Stat. 361; January 7, 1824, 4 Stat. 2; May 24, 1828, 4 Stat. 308; May 31, 1830, 4 Stat. 425; March 6, 1866, 14 Stat. 3; March 3, 1883, 22 Stat. 490; June 26, 1884, 23 Stat. 57; October 1, 1890, 26 Stat. 616; R.S. 2493, 2494, 4219, 4228. Proclamations of Presidents: 3 Stat.App. 1; 4 Stat.App. 3, pp. 814- 818; 9 Stat.App. 1001, 1004; 11 Stat.App. 795; 13 Stat.App. 739; 14 Stat. App. 818, 819; 16 Stat.App. 1127; 17 Stat.App. 954, 956, 957; 21 Stat. 800; 23 Stat. 841, 842, 844.
For other analogous statutes, see Acts of December 17, 1813, 3 Stat. 88, 93; June 19, 1886, 24 Stat. 79, 82 (section 17 (46 USCA 142)); March 3, 1887, 24 Stat. 475 (46 USCA 143); August 30, 1890, 26 Stat. 414, 415 ( sections 4, 5 (21 USCA 18; 19 USCA 181)); February 15, 1893, 27 Stat. 449, 452 (section 7 (42 USCA 111)); March 2, 1895, 28 Stat. 727, 733; September 8, 1916, 39 Stat. 756, 799 (15 USCA 75-77); June 15, 1917, 40 Stat. 217, 225; August 10, 1917, 40 Stat. 276; October 6, 1917, 40 Stat. 411, 422 (section 11 (50 USCA Appendix, 11)); March 4, 1919, 40 Stat. 1348, 1350; June 17, 1930, 46 Stat. 590, 704 (section 338 (19 USCA 1338 )). Resolutions of March 14, 1912, 37 Stat. 630; January 31, 1922, 42 Stat. 361 (22 USCA 236, 237). Proclamations: 24 Stat. 1024, 1025, 1028, 1030; 27 Stat. 995, 1011; 38 Stat. 1960; 39 Stat. 1756; 40 Stat. 1683, 1689, et seq.
[ Footnote 12 ] See, also, sections 4(b) and 5(a) of the Trading with the Enemy Act, 40 Stat. 411, 414, 415, 50 USCA Appendix 4(b), 5(a).
[ Footnote 13 ] Act of March 28, 1928, 5 (amending section 9 of the Radio Act of 1927) 45 Stat. 373.
[ Footnote 14 ] See Acts and Proclamations cited in note 11, supra.
[ Footnote 15 ] See Philadelphia & T.R.R. Co. v. Stimpson, 14 Pet. 448, 458; Martin v. Mott, 12 Wheat. 19, 30, 32; Dakota Central Telephone Co. v. South Dakota, 250 U.S. 163, 182 , 184 S., 39 S.Ct. 507, 4 A.L.R. 1623; United States v. Chemical Foundation, 272 U.S. 1, 14 , 15 S., 47 S.Ct. 1; Sterling v. Constantin, 287 U.S. 378, 399 , 53 S.Ct. 190.
[ Footnote 1 ] ‘Section 1. … It is hereby declared to be the policy of Congress to remove obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof; and to provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among trade groups, to induce and maintain united action of labor and management under adequate governmental sanctions and supervision, to eliminate unfair competitive practices, to promote the fullest possible utilization of the present productive capacity of industries, to avoid undue restriction of production (except as may be temporarily required), to increase the consumption of industrial and agricultural products by increasing purchasing power, to reduce and relieve unemployment, to improve standards of labor, and otherwise to rehabilitate industry and to conserve natural resources.’
The act as a whole is entitled as one ‘To encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,’ and the heading of title I, which includes sections 1 to 10, is ‘Industrial Recovery.’
[ Footnote 2 ] 2 Stat. 411, December 19, 1806; 3 Stat. 224, March 3, 1815; 23 Stat. 31, 32, May 29, 1884; 25 Stat. 659, February 9, 1889; 38 Stat. 717 (15 USCA 41 et seq.), September 26, 1914; 41 Stat. 593 (8 USCA 157), May 10, 1920; Williams v. United States, 138 U.S. 514 , 11 S.Ct. 457; Buttfield v. Stranahan, 192 U.S. 470 , 24 S.Ct. 349; Inter-Mountain Rate Case (U.S. v. Atchison, T. & S.F.R. Co.), 234 U.S. 476 , 34 S.Ct. 986; Mahler v. Eby,264 U.S. 32 , 44 S.Ct. 283. Cf. Emergency Banking Act of March 9, 1933, 48 Stat. 1; Agricultural Adjustment Act of May 12, 1933, 48 Stat. 51, 53, 43.
[ Footnote 3 ] ‘Executive Order. Prohibition of Transportation in Interstate and Foreign Commerce of Petroleum and the Products Thereof Unlawfully Produced or Withdrawn from Storage. By virtue of the authority vested in me by the Act of Congress entitled ‘An Act To encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes,’ approved June 16, 1933 ( Public No. 67, 73d Congress), the transportation in interstate and foreign commerce of petroleum and the products thereof produced or withdrawn from storage in excess of the amount permitted to be produced or withdrawn from storage by any State law or valid regulation or order prescribed thereunder, by any board, commission, officer, or other duly authorized agency of a State, is hereby prohibited. Franklin D. Roosevelt. The White House, July 11, 1933.’ No. 6199.
Merchant Marine Act of 1920 (the Jones Act)
(Source: “Merchant Marine Act of 1920,” Wikipedia, 5 November 2013. Sources indicated the act was adopted in early June 1920. The post date assigned to this document is 1 June 1920.)
Merchant Marine Act of 1920
The Merchant Marine Act of 1920 (P.L. 66-261), also known as the Jones Act, is a United States federal statute that regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 is part of the Jones Act that deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The Act was introduced by Senator Wesley Jones.
In addition, amendments to the Jones Act, known as the Cargo Preference Act (P.L. 83-644), provide permanent legislation for the transportation of waterborne cargoes in U.S.-flag vessels. The Merchant Marine Act of 1920 has been revised a number of times, the most recent revision was the recodified version of 2006.[1]
The Jones Act is often confused with the Death on the High Seas Act, another United States maritime law that does not apply to coastal and in-land navigable waters.
Objectives and Purpose of the Merchant Marine Act of 1920
TITLE 46, APPENDIX App. > CHAPTER 24 > 861. Purpose and policy of United States[2] It is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant marine of the best equipped and most suitable types of vessels sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary in time of war or national emergency, ultimately to be owned and operated privately by citizens of the United States; and it is declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine, and, insofar as may not be inconsistent with the express provisions of this Act, the Secretary of Transportation shall, in the disposition of vessels and shipping property as hereinafter provided, in the making of rules and regulations, and in the administration of the shipping laws keep always in view this purpose and object as the primary end to be attained.
Cabotage
Cabotage is the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country. Originally a shipping term, cabotage now also covers aviation, railways, and road transport. Cabotage is “trade or navigation in coastal waters, or, the exclusive right of a country to operate the air traffic within its territory”. Cabotage is used in the context of “cabotage rights”, the right of a company from one country to trade in another country. In aviation terms, it is the right to operate within the domestic borders of another country. Most countries enact cabotage laws for reasons of economic protectionism, national security or public safety.The cabotage provisions relating to the “Jones Act” restrict the carriage of goods or passengers between United States ports to U.S.-built and flagged vessels. It has been codified as portions of 46 U.S.C. Generally, the Jones Act prohibits any foreign built or foreign flagged vessel from engaging in coastwise trade within the United States. A number of other statutes affect coastwise trade and should be consulted along with the Jones Act. These include the Passenger Services Act, 46 USC section 289 which restricts coastwise transportation of passengers and 46 USC section 12108 restricts the use of foreign vessel to commercially catch or transport fish in U.S. waters.[3]These provisions also require at least three-fourths of the crewmembers to be U.S. citizens. Moreover, the steel of foreign repair work on the hull and superstructure of a U.S.-flagged vessel is limited to ten percent by weight. This part of the policy is required for national security to maintain a shipbuilding capacity for construction and repair of vessels within the United States.
Seamen’s rights
The U.S. Congress adopted the Merchant Marine Act in early June 1920, formerly46 U.S.C. § 688 and codified on October 6, 2006 as 46 U.S.C. § 30104. The Act formalized the rights of seamen.
It allows injured sailors to make claims and collect from their employers for the negligence of the ship owner, the captain, or fellow members of the crew.[4] It operates simply by extending similar legislation already in place that allowed for recoveries by railroad workers and providing that this legislation also applies to sailors. Its operative provision is found at 46 U.S.C. § 688(a), which provides:
“Any sailor who shall suffer personal injury in the course of his employment may, at his election, maintain an action for damages at law, with the right to trial by jury, and in such action all statutes of the United States modifying or extending the common-law right or remedy in cases of personal injury to railway employees shall apply…”
This allows seamen to bring actions against ship owners based on claims of unseaworthiness or negligence. These are rights not afforded by common international maritime law.
The United States Supreme Court, in the case of Chandris, Inc., v. Latsis, 515 U.S. 347, 115 S.Ct. 2172 (1995), has set a benchmark for determining the status of any employee as a “Jones Act” seaman. Any worker who spends less than 30 percent of his time in the service of a vessel on navigable waters is presumed not to be a seaman under the Jones Act. An action under the Act may be brought either in a U.S. federal court or in a state court. The seaman/plaintiff is entitled to a jury trial, a right which is not afforded in maritime law absent a statute authorizing it.
Criticism
Critics note that the legislation results in costs for moving cargo between U.S. ports that are far higher than if such restrictions did not apply[citation needed]. In essence, they argue, the act is protectionism.
Critics also contend the Jones Act has caused the U.S. shipbuilding industry to build vessels in the U.S. which are more expensive than those built elsewhere. A 2001 U.S. Department of Commerce study indicates that U.S. shipyards build only one percent of the world’s large commercial ships. Few ships are ordered from U.S. shipyards except for cabotage. U.S. operators of ships in cabotage have an economic incentive to continue operating old vessels rather than replace them with relatively high cost vessels built in the U.S. The report concluded that the lack of United States competitiveness stemmed from foreign subsidies, unfair trade practices, and lack of U.S. productivity.[citation needed] However, the same argument buttresses that of their opponents who state that without the Jones Act, all remaining US shipyards would be deconstructed or outsourced overseas resulting in the utter destruction of the US Maritime industry. In turn, this would result in higher costs for US Navy vessels and eventually require most Naval ships meant for national defense to be built overseas as well.[5][dead link]
Moreover, critics point to the lack of a U.S.-flagged international shipping fleet. They claim that it is economically impossible for U.S.-flagged, -built, and -crewed ships to compete internationally with vessels built and registered in other nations with crews willing to work for wages that are a fraction of what their U.S. counterparts earn.[citation needed] However, the same argument is used by the Seamen Union which claims the Jones Act allows for a well paid, educated, and all American merchant mariner force.[citation needed]
Support
Supporters of the Shipping Act maintain that the legislation is of strategic economic and wartime interest to the United States. The act, they say, protects the nation’s sealift capability and its ability to produce commercial ships. In addition, the act is seen as a vital factor in helping maintain a viable workforce of trained merchant mariners for commerce and national emergencies. During the Vietnam War, ships crewed by civilian seamen carried 95% of the supplies used by the American armed forces. Many of these ships sailed into combat zones under fire. The SS Mayaguez incident involved the capture of mariners from the American merchant ship SS Mayaguez.[6] Supporters say that it also protects seafarers from deplorable living and working conditions often found on foreign-flagged ships. Finally, they point to the key role played by the US Merchant Marine in supporting Global operations against terrorism and the Iraq and Afghanistan Campaigns. They claim that without these assets, the US would be under substantial foreign influence in conducting its policy in accordance with National Security.[5][dead link]
America needs a strong and vibrant U.S.-Flag Merchant Marine. That is why you can continue to count on me to support the Jones Act (which also includes the Passenger Vessel Services Act) and the continued exclusion of maritime services in international trade agreements. Barack Obama, August 28, 2008 [7][dead link]
I can assure you that a Reagan Administration will not support legislation that would jeopardize this long-standing policy … embodied in the Jones Act … or the jobs dependent on it. President Ronald Reagan, 1980 [8]
“The [Jones Act trailership] SS NORTHERN LIGHTS made 25 voyages and 49 port calls [to the Iraqi war zone]. She carried 12,200 pieces of military gear totaling 81,000 short tons and covering over 2,000,000 square feet (190,000 m2). Those statistics clearly demonstrate the value that the U.S.-flag shipping industry brings to the Defense Transportation System. General Norton A. Schwartz, USAF, Commander in Chief, U.S. Transportation Command, 2005 [8]
When it comes to backing the Jones Act, from my standpoint, it’s a no-brainer. We need a strong maritime industry, and part of a strong industry is highly trained merchant mariners, so many of whom are employed on Jones Act ships. We need a strong shipbuilding industry. We can’t let the generations that follow us forget what America was capable of when the call went out for Liberty and Victory ships during World War II. We need the current shipping capacity to move the lifeblood of this country where it needs to go, when it needs to go. The Jones Act supports all these things. It’s vital to our national security. Rear Admiral Mark Buzby, Commander, U.S. Military Sealift Command, 2012 [8]
The Jones Act has been supported by Presidents Obama, Clinton, Bush, Reagan, Carter, and Ford, and further all the way back to Woodrow Wilson who originally signed it into law in 1920. It is supported by American military leaders. Furthermore, there are other domestic interests which support the Act both from self-interest in keeping them cost competitive in some areas in contrast to the high-cost of sea traffic as well as more altruistic policies of keeping a diversified transportation system. In fact, all of these transportation interests intersect seafaring cargo at some point in the supply line. Consequently, retention of the Jones Act is also supported from the domestic airline, trucking, and rail industries. “Reduced to its essential terms, the Jones Act simply requires companies operating in the domestic commerce of the United States to comply with U.S. laws. This requirement includes corporate taxes, the National Labor Relations Act, the Fair Labor Standards Act, Coast Guard standards, employing American citizens, etc. American ships are subject to these laws and foreign ships are not. This same fundamental principle applies to every other company doing business in the United States, from agriculture to retail.” (Quote from R.J. Pfeiffer, maritime expert former CEO of Alexander Baldwin in commentary published in the Star Advertiser 12/26/1997)
Waivers of Shipping Act provisions
Requests for waivers of certain provisions of the act are reviewed by the United States Maritime Administration on a case-by-case basis. Waivers have been granted in cases of national emergencies or in cases of strategic interest.[9]
In the wake of Hurricane Katrina, Homeland Security Secretary Michael Chertofftemporarily waived the U.S. Shipping Act for foreign vessels carrying oil and natural gas from September 1 to 19, 2005.[10][11]
In order to conduct an emergency shipment of gasoline from Dutch Harbor, Alaskato Nome in January 2012, Secretary of Homeland Security Janet Napolitanogranted a waiver to the Russian ice class marine tanker Renda. Renda was originally scheduled to onload gasoline in Northern Japan for shipment but was unable due to a gale.[12]
The Department of Homeland Security issued a blanket waiver of the Jones Act to all shipping for 12 days from November 2 to 13 2012, following widespread fuel shortages caused by Hurricane Sandy.[13][14]
See also
- Flag of convenience
- Passenger Vessel Services Act of 1886 similar law concerning passenger transportation between US ports.
- Seaman status in United States admiralty law
References
- ^ http://www.1800jonesact.com/Jones-Act/
- ^ Title 46a of the US Code as currently published by the US Government reflects the laws passed by Congress as of Jan. 3, 2012, and it is this version that is published here.http://www.law.cornell.edu/uscode/html/uscode46a/usc_sec_46a_00000861—-000-.html
- ^http://www.law.cornell.edu/uscode/html/uscode46/usc_sup_01_46_06_V_08_D_10_551.htmlch.551 Coastwise Trade.
- ^ jones act
- ^ a b “Maritime law tough to navigate,” Portland Press Herald/Maine Sunday Telegram. October 3, 2006.
- ^ Bush, George W. (May 21, 2002). “National Maritime Day, 2002”. Whitehouse.gov. Retrieved 2008-11-22.
- ^ “Obama Reaches Out to SIU and Michael Sacco in a Letter After SIU Endorsement”
- ^ a b c http://www.americanmaritimepartnership.com/statements.html
- ^ “Coast wise: the U.S. marine Jeff Ownz is keeping a close watch on Maritime Act assaults,” Workboat. January 1, 2007
- ^ “DHS: Update: United States Government Response to the Aftermath of Hurricane Katrina”. Dhs.gov. September 15, 2005. Retrieved July 6, 2010.
- ^ http://npga.org/files/public/Jones_Act_Waver_9-05.pdf
- ^ [1]
- ^ U.S. Gulf Gasoline Increases After Jones Act Is Suspended Bloomberg, Nov 2, 2012
- ^ US issues blanket Jones Act waiver for fuel tankers after Sandy Reuters, Nov 2, 2012
Further reading
- Sethi, Arjun, The Merchant Marine Act of 1920: The Impact on American Labor (2005).
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