article: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States Cruise Vessel Development Act of 1994''. SEC. 2. PURPOSE. The purpose of this Act is to promote construction and operation of United States flag cruise vessels in the United States. SEC. 3. COASTWISE TRANSPORTATION OF PASSENGERS. Section 8 of the Act entitled ``An Act to abolish certain fees for official services to American vessels, and to amend the laws relating to shipping commissioners, seamen, and owners of vessels, and for other purposes'', approved June 19, 1886 (24 Stat. 81, chapter 421; 46 App. U.S.C. 289), is amended to read as follows: ``SEC. 8. COASTWISE TRANSPORTATION OF PASSENGERS. ``(a) In General.--Except as otherwise provided by law, a vessel may transport passengers in coastwise trade only if-- ``(1) the vessel is owned by a person that is-- ``(A) an individual who is a citizen of the United States; or ``(B) a corporation, partnership, or association that is a citizen of the United States under section 2(a) of the Shipping Act, 1916 (46 App. U.S.C. 802(a)); ``(2) the vessel meets the requirements of section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883); and ``(3) for a vessel that is at least 5 net tons, the vessel is issued a certificate of documentation under chapter 121 of title 46, United States Code, with a coastwise endorsement. ``(b) Exception for Vessel Under Demise Charter.-- ``(1) In general.--Subsection (a)(1) does not apply to a cruise vessel operating under a demise charter that-- ``(A) has a term of at least 18 months; and ``(B) is to a person described in subsection (a)(1). ``(2) Extension of period for operation.--A cruise vessel authorized to operate in coastwise trade under paragraph (1) based on a demise charter described in paragraph (1) may operate in that coastwise trade during a period following the termination of the charter of not more than 6 months, if the operation-- ``(A) is approved by the Secretary; and ``(B) is in accordance with such terms as may be prescribed by the Secretary for that approval. ``(c) Exception for Vessel To Be Reflagged.-- ``(1) Exception.--Subsection (a)(2) and section 12106(a)(2)(A) of title 46, United States Code, do not apply to a cruise vessel if-- ``(A) the vessel-- ``(i) is not documented under chapter 121 of title 46, United States Code, on the date of enactment of the United States Cruise Vessel Development Act of 1994; and ``(ii) is not less than 5 years old and not more than 15 years old on the first date that the vessel is documented under that chapter after that date of enactment; and ``(B) the owner or charterer of the vessel has entered into a contract for the construction in the United States of another cruise vessel that has a total berth or stateroom capacity that is at least 80 percent of the capacity of the cruise vessel. ``(2) Termination of authority to operate.--Paragraph (1) does not apply to a vessel after the date that is 18 months after the date on which a certificate of documentation with a coastwise endorsement is first issued for the vessel after the date of enactment of the United States Cruise Vessel Development Act of 1994 if, before the end of that 18-month period, the keel of another vessel has not been laid, or another vessel is not at a similar stage of construction, under a contract required for the vessel under paragraph (1)(B). ``(3) Extension of period before termination.--The Secretary of Transportation may extend the 18-month period under paragraph (2) for an additional period of not to exceed 6 months for good cause shown. ``(d) Limitation on Operations.--A person (including a related person with respect to that person) who owns or charters a cruise vessel operating in coastwise trade under subsection (b) or (c) under a coastwise endorsement may not operate any vessel between-- ``(1) any 2 ports served by another cruise vessel that transports passengers in coastwise trade under subsection (a) on the date the Secretary issues the coastwise endorsement; or ``(2) any of the islands of Hawaii. ``(e) Penalties.-- ``(1) Civil penalty.--A person operating a vessel in violation of this section is liable to the United States Government for a civil penalty of $1,000 for each passenger transported in violation of this section. ``(2) Forfeiture.--A vessel operated in knowing violation of this section, and its equipment, are liable to seizure by and forfeiture to the United States Government. ``(3) Disqualification from coastwise trade.--A person that is required to enter into a construction contract under subsection (c)(1)(B) with respect to a cruise vessel (including any related person with respect to that person) may not own or operate any vessel in coastwise trade after the period applicable under subsection (c)(2) with respect to the cruise vessel, if before the end of that period a keel is not laid and a similar stage of construction is not reached under such a contract. ``(f) Definitions.--In this section-- ``(1) the term `coastwise trade' includes transportation of a passenger between points in the United States, either directly or by way of a foreign port; ``(2) the term `cruise vessel' means a vessel that-- ``(A) is at least 10,000 gross tons (as measured under chapter 143 of title 46, United States Code); ``(B) has berth or stateroom accommodations for at least 200 passengers; and ``(C) is not a ferry; and ``(3) the term `related person' means, with respect to a person-- ``(A) a holding company, subsidiary, affiliate, or association of the person; and ``(B) an officer, director, or agent of the person or of an entity referred to in subparagraph (A).''. SEC. 4. CONSTRUCTION STANDARDS. Section 3309 of title 46, United States Code, is amended by adding at the end the following new subsection: ``(d)(1) A vessel described in paragraph (3) is deemed to comply with parts B and C of this subtitle. ``(2) The Secretary shall issue a certificate of inspection under subsection (a) to a vessel described in paragraph (3). ``(3) A vessel is described in this paragraph if-- ``(A) the vessel meets the standards and conditions for the issuance of a control verification certificate to a foreign vessel embarking passengers in the United States; ``(B) a coastwise endorsement is issued for the vessel under section 12106 of this title after the date of enactment of the United States Cruise Vessel Development Act of 1994; and ``(C) the vessel is authorized to engage in coastwise trade by reason of subsection (c) of section 8 of the Act entitled `An Act to abolish certain fees for official services to American vessels, and to amend the laws relating to shipping commissioners, seamen, and owners of vessels, and for other purposes', approved June 19, 1886 (24 Stat. 81, chapter 421; 46 App. U.S.C. 289).''. SEC. 5. CITIZENSHIP FOR PURPOSES OF DOCUMENTATION. Section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802), is amended-- (1) in subsection (a) by inserting ``other than primarily in the transport of passengers,'' after ``the coastwise trade''; and (2) by adding at the end the following new subsection: ``(e) For purposes of determining citizenship under subsection (a) with respect to operation of a vessel primarily in the transport of passengers in coastwise trade, the controlling interest in a partnership or association that owns the vessel shall not be deemed to be owned by citizens of the United States unless a majority interest in the partnership or association is owned by citizens of the United States free from any trust or fiduciary obligation in favor of any person that is not a citizen of the United States.''. SEC. 6. AMENDMENT TO TITLE XI OF THE MERCHANT MARINE ACT, 1936. Section 1101(b) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271(b)) is amended by striking ``passenger cargo'' and inserting ``passenger, cargo,''. SEC. 7. PERMITS FOR VESSELS ENTERING UNITS OF NATIONAL PARK SYSTEM. (a) Priority.--Notwithstanding any other provision of law, the Secretary of the Interior may not permit a person to operate a vessel in any unit of the National Park System except in accordance with the following priority: (1) First, any person that-- (A) will operate a vessel that is documented under the laws of, and the home port of which is located in, the United States; or (B) holds rights to provide visitor services under section 1307(a) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3197(a)). (2) Second, any person that will operate a vessel that-- (A) is documented under the laws of a foreign country, and (B) on the date of the enactment of this Act is permitted to be operated by the person in the unit. (3) Third, any person that will operate a vessel other than a vessel described in paragraph (1) or (2). (b) Revocation of Permits for Foreign-Documented Vessels.--The Secretary of the Interior shall revoke or refuse to renew permission granted by the Secretary for the operation of a vessel documented under the laws of a foreign country in a unit of the National Park System, if-- (1) a person requests permission to operate a vessel documented under the laws of the United States in that unit; and (2) the permission may not be granted because of a limit on the number of permits that may be issued for that operation. (c) Restrictions on Revocation of Permits.--The Secretary of the Interior may not revoke or refuse to renew permission under subsection (b) for any person holding rights to provide visitor services under section 1307(a) of the Alaska National Interest Lands Conservation Act (16 U.S.C. 3197(a)). (d) Return of Permits.--Any person whose permission to provide visitors services in a unit of the National Park System has been revoked or not renewed under subsection (b) shall have the right of first refusal to a permit to provide visitors services in that unit of the National Park System that becomes available when the conditions described in subsection (b) no longer apply. Such right shall be limited to the number of permits which are revoked or not renewed.
summary: United States Cruise Vessel Development Act of 1994 - Amends Federal shipping law to revise provisions prohibiting the use of foreign vessels to transport passengers between places in the United States to authorize the transport of passengers in coastwise trade only if the vessel: (1) is owned by a U.S. citizen, or a U.S. corporation, partnership, or association; (2) meets certain requirements under the Merchant Marine Act; and (3) is at least five net tons and is issued a certificate of documentation with a coastwise endorsement. (Sec. 3) Exempts from this prohibition any cruise vessel: (1) demised to a U.S. person for a term of at least 18 months; or (2) reflagged as a U.S. vessel after enactment of this Act, if the owner or charterer contracts for U.S. construction of another cruise vessel with at least 80 percent of the existing vessel's total berth or stateroom capacity. Prohibits any person owning or chartering a cruise vessel thus exempted from operating any vessel between: (1) any two ports served by another cruise vessel transporting passengers in the coastwise trade on the date the Secretary of Transportation issues the coastwise endorsement; or (2) any of the Hawaiian islands. Sets forth civil and forfeiture penalties for violations of this Act. (Sec. 4) Requires the Secretary of Transportation (Secretary) to issue a certificate of inspection to vessels that: (1) meet the standards and conditions for the issuance of a control verification certificate to a foreign vessel embarking passengers in the United States; (2) a coastwise endorsement is issued; and (3) are authorized to engage in coastwise trade as vessels reflagged under the requirements of this Act. (Sec. 5) Amends the Shipping Act, 1916 to declare that, for purposes of vessel documentation in the coastwise trade, the controlling interest in a partnership or association that owns such a vessel shall not be deemed to be a U.S. citizen unless a majority interest in the partnership or association is owned by U.S. citizens free from any trust or fiduciary obligation in favor of a non-U.S. citizen. (Sec. 7) Prohibits the Secretary of the Interior from permitting a person to operate a vessel in any unit of the National Park System except in accordance with specified priorities, the first of which goes to any person: (1) operating a U.S.-flag vessel whose home port is in the United States; or (2) holding rights to provide visitor services under the Alaska National Interest Lands Conservation Act. Requires the Secretary to revoke or renew permission for the operation of any foreign-documented vessel that does not hold such Alaskan visitor rights if: (1) a person requests permission to operate a U.S.-flag vessel in the same unit; and (2) permission may not be granted because of a limit on the number of such permits.