Maritime Transportation Security Act of 2002 – Merchant Marine Act Amended

(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>

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 shipsVictory ships, and others, notably Type C1Type C2Type 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.
  • 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.

See also

Responsibility for U.S. merchant shipping has been held by many agencies since 1917. For a history, see:

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. Ryan293 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.

[293 U.S. 388, 405]  

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.’ 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.’ 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.’ 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. The case is not one where a subsequent law is applicable to a pending suit and controls its disposition. 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. 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.   [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.   [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. 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. 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 KatrinaHomeland 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 RendaRenda 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

References

  1. ^ http://www.1800jonesact.com/Jones-Act/
  2. ^ 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
  3. ^http://www.law.cornell.edu/uscode/html/uscode46/usc_sup_01_46_06_V_08_D_10_551.htmlch.551 Coastwise Trade.
  4. ^ jones act
  5. a b “Maritime law tough to navigate,” Portland Press Herald/Maine Sunday Telegram. October 3, 2006.
  6. ^ Bush, George W. (May 21, 2002). “National Maritime Day, 2002”. Whitehouse.gov. Retrieved 2008-11-22.
  7. ^ “Obama Reaches Out to SIU and Michael Sacco in a Letter After SIU Endorsement”
  8. a b c http://www.americanmaritimepartnership.com/statements.html
  9. ^ “Coast wise: the U.S. marine Jeff Ownz is keeping a close watch on Maritime Act assaults,” Workboat. January 1, 2007
  10. ^ “DHS: Update: United States Government Response to the Aftermath of Hurricane Katrina”. Dhs.gov. September 15, 2005. Retrieved July 6, 2010.
  11. ^ http://npga.org/files/public/Jones_Act_Waver_9-05.pdf
  12. ^ [1]
  13. ^ U.S. Gulf Gasoline Increases After Jones Act Is Suspended Bloomberg, Nov 2, 2012
  14. ^ US issues blanket Jones Act waiver for fuel tankers after Sandy Reuters, Nov 2, 2012

Further reading

  • Sethi, ArjunThe Merchant Marine Act of 1920: The Impact on American Labor (2005).

 

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