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                                                       Calendar No. 466
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-246
_______________________________________________________________________


 
     COAST GUARD AUTHORIZATION ACT FOR FISCAL YEARS 1998 AND 1999

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1259





                  July 10, 1998--Ordered to be printed


       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             second session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas          Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon

                       John Raidt, Staff Director

                       Mark Buse, Policy Director

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

             James S. W. Drewry, Democratic General Counsel



                                                       Calendar No. 466
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-246
_______________________________________________________________________


     COAST GUARD REAUTHORIZATION ACT FOR FISCAL YEARS 1998 AND 1999

                                _______
                                

                 July 10, 1998.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1259]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1259) ``A Bill to authorize 
appropriations for fiscal years 1998 and 1999 for the United 
States Coast Guard, and for other purposes'', having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  S. 1259, the Coast Guard Authorization Act for Fiscal Years 
1998 and 1999, authorizes appropriations for the U.S. Coast 
Guard for fiscal year (FY) 1998 and FY 1999, covering six 
appropriations accounts: (1) operation and maintenance 
expenses; (2) acquisition, construction, and improvement of 
facilities and equipment (AC&I;); (3) research, development, 
testing, and evaluation (RDT&E;); (4) retired pay; (5) 
alteration or removal of bridges; and (6) environmental 
compliance and restoration. The bill also authorizes end-of-
year military strength and training loads, strengthens 
requirements for post-incident alcohol testing, establishes 
sanctions for obstructing law enforcement related to vessel 
boardings and aircraft landings, and makes other changes to 
existing law.

                          Background and Needs

  The Coast Guard is the principal Federal maritime safety and 
law enforcement agency. Coast Guard activities include vessel 
safety inspection, the rescue of life and property at sea, 
fisheries law enforcement, marine environmental protection, and 
the interdiction of drug traffickers and alien migrants. In 
addition, the agency carries out port security functions, 
cooperates closely with the other armed forces in military 
readiness activities, and has primary responsibility for the 
coastal defense of the United States. During times of war and 
national emergency, the Coast Guard becomes an arm of the U.S. 
Navy.
  The Coast Guard Authorization Act of 1996 (Public Law 104-
324) authorized appropriations and levels of military strength 
and training for the Coast Guard for FY 1996 and FY 1997. S. 
1259 would authorize appropriations and levels of military 
strength and training for the Coast Guard in the two succeeding 
fiscal years and make other changes to existing law to address 
issues related to the Coast Guard.

             FY 1998 and 1999 administration budget request

  For FY 1998, the Administration requested a budget of 
approximately $4.0 billion for the Coast Guard, an increase of 
$146 million or 4 percent over FY 1997 funding levels. The 
Administration also requested a budget of approximately $4.1 
billion for FY 1999, an approximately 6 percent increase from 
the amount available in FY 1997. In addition, it requested an 
end-of-year strength of 36,469 active duty military personnel 
in FY 1998, and an end-of-year strength of 35,538 active duty 
military personnel in FY 1999. Coast Guard budget accounts that 
are authorized in S. 1259 are summarized below.
Operating expenses
  More than two-thirds of the total Coast Guard budget supports 
the operating expenses account, which funds activities to 
protect public safety and the marine environment, enforce laws 
and treaties, maintain aids to navigation, and preserve defense 
readiness. The Administration requested $2.74 billion for this 
account in FY 1998, an increase of $122 million from the FY 
1997 appropriated level. For FY 1999, the Administration 
requested $2.77 billion. In each fiscal year, the request 
assumes that $25 million would be transferred from the Oil 
Spill Liability Trust Fund to the operating expenses account 
and that approximately $300 million would be available from the 
Department of Defense (DOD) for defense-related activities.
Acquisition, construction, and improvements
  AC&I; funds are used to pay for major capital improvements, 
including vessel and aircraft acquisition and rehabilitation, 
information management, and construction programs at selected 
facilities. Major AC&I; projects include replacement of seagoing 
and coastal buoy tenders, motor lifeboats, and coastal patrol 
boats; improvement of fleet logistics systems; the icebreaker 
program; surface search radar replacement; aircraft collision 
avoidance upgrades; and communications and computer software 
systems. The Administration requested $379 million for AC&I; in 
FY 1998, an increase of $4.2 million over the appropriated 
level for FY 1997. In FY 1999, the Administration requested 
$408 million. In each fiscal year, the request assumes that $20 
million would be transferred from the Oil Spill Liability Trust 
Fund to the AC&I; account. The FY 1999 request assumes that an 
additional $35 million will be available incommercial 
navigation user fee receipts, bringing proposed AC&I; expenditures to a 
total of $443 million.

Research, development, test, and evaluation

  Funds from this account are used to develop hardware, 
procedures, and systems that directly contribute to increasing 
the productivity of Coast Guard operating and regulatory 
programs. The Administration requested $19 million for this 
account in FY 1998, a decrease of $200,000 from the 
appropriated level for FY 1997. The Administration requested 
$18.3 million for this account in FY 1999. In each fiscal year, 
the request assumes that $3.5 million would be transferred from 
the Oil Spill Liability Trust Fund to this account.

Retired pay

  Funds from this account are used for retired pay, annuities, 
and medical care for retired military personnel and former 
Lighthouse Service members, their dependents, and their 
survivors under chapter 55 of title 10, United States Code. The 
Administration requested $645.7 million in FY 1998, an increase 
of $28.9 million over the appropriated level for FY 1997. For 
FY 1999, the Administration requested $684 million for retired 
pay.

Alteration of bridges

  Under the Truman-Hobbs Act, the Federal government shares 
with the states the cost of altering publicly-owned highway and 
railroad bridges that obstruct the free movement of marine 
traffic. Since FY 1995, the Administration has requested no 
funding for highway bridge modifications, initiating a policy 
under which the Coast Guard no longer would seek direct funding 
for such bridges. Instead, the Administration proposes that the 
federal share be financed from the discretionary bridge program 
funds of the Federal Highway Administration, under the 
continuing program direction of the Coast Guard. The 1996 Coast 
Guard authorization law (P.L. 104-324) provided the 
Administration with discretionary authority to implement this 
proposal. In addition, $17 million was included in the FY 1998 
appropriations bill for the Coast Guard account. Now, the 
Administration has indicated interest in expanding the Federal 
Highway Administration's discretionary funding authority to 
include Truman-Hobbs railroad bridges. The Administration did 
not request Coast Guard funding for Truman-Hobbs Act projects 
in FY 1998 and FY 1999.

Environmental compliance and restoration

  This account provides resources to bring current and former 
Coast Guard facilities into conformance with national 
environmental standards. The Administration requested $21 
million for both FY 1998 and FY 1999, a decrease of $1 million 
from the appropriated level for FY 1997.

                         authorization requests

  The authorization bill transmitted by the Administration 
proposes various changes to existing law to address issues and 
problems identified by the Coast Guard. These requests include 
legislation to remove the cap on warrant officer severance pay; 
allow the use of appropriated funds for the rental or lease of 
commercial vehicles to transport next-of-kin of eligible 
retired Coast Guard personnel to military funerals at national 
cemeteries; provide reimbursement to the City of Novato, 
California, for the cost of revising the Hamilton Reuse 
Planning Authority's closed base reuse plan; eliminate the 
Coast Guard Supply Fund reimbursement requirement; permit the 
funding of certain awards programs; protect personal 
information collected in marine casualty investigations from 
mandatory release; eliminate a biennial research and 
development reporting requirement; and extend the territorial 
sea for the purposes of certain Federal laws.

                          legislative history

  On March 18, 1997, the Committee held a hearing on the 
Administration's budget request for FY 1998 and on draft 
legislation to authorize Coast Guard programs and activities 
for FY 1998 and FY 1999. In addition to reviewing the 
Administration's budget priorities for the Coast Guard, the 
hearing addressed drug interdiction, alcohol and drug testing 
after serious marine incidents, fisheries law enforcement, 
marine pollution prevention, Coast Guard personnel issues, 
funding mechanisms for bridge alterations, and recreational 
boating safety.
  S. 1259 was introduced on October 6, 1997, by Senator Snowe, 
with Senators Hollings and Breaux as cosponsors. On October 8, 
1997, the bill was considered by the Committee in an open 
executive session. Senator McCain offered an amendment intended 
to enhance the effectiveness of drug interdiction and other law 
enforcement efforts of Federal law enforcement agencies like 
the Coast Guard. Specifically, the McCain amendment would 
establish criminal sanctions for an airplane pilot to knowingly 
disobey an order to land from a Coast Guard or other law 
enforcement officer or for a vessel captain to knowingly 
disobey an order to stop or slow down to facilitate boarding by 
the Coast Guard or other authorized Federal law enforcement 
agency. The amendment would also establish criminal sanctions 
for non-forcible obstruction of a vessel boarding and for 
knowingly providing false information about a vessel and its 
cargo to a Federal law enforcement officer during a boarding of 
that vessel. The McCain amendment was adopted by voice vote, 
and the Committee, without objection, ordered S. 1259 reported 
with amendments.

                      Summary of Major Provisions

Authorization levels

  S. 1259 as reported authorizes appropriations for the Coast 
Guard accounts covered in the bill that total $3.83 billion in 
FY 1998 and $3.86 billion in FY 1999. The authorization levels 
in the bill are generally consistent with the Administration's 
proposed authorization bill. However, the numbers do not 
reflect the FY 1999 budget request that was transmitted after 
the Committee approved S. 1259 as reported. The reported bill 
also authorizes FY 1998 and FY 1999 end-of-year active duty 
military strength and annual training levels at Administration-
requested levels.

Personnel management

  The reported bill provides the Secretary of Transportation 
(Secretary) with the discretionary authority to waive severance 
pay requirements for officers separated with an other than 
honorable discharge, and it removes the statutory cap on 
severance pay for regular Coast Guard warrant officers.

Alcohol testing

  The bill as reported requires the Coast Guard to ensure that 
alcohol testing of appropriate persons involved in a serious 
marine incident is conducted promptly after such an incident 
occurs. The bill also increases the maximum civil penalties for 
failure to comply with Coast Guard alcohol and drug testing 
requirements and for the first violation of Federal rules 
prohibiting the operation of a vessel while intoxicated.

Penalty for violation of international safety convention

  The reported bill prohibits a vessel which has been detained 
by the Secretary for violation of an international safety 
convention to which the United States is a party from carrying 
cargo sponsored by the United States government. This 
prohibition expires one year after the date of the vessel's 
detention or upon the Secretary granting an appeal of the 
detention upon which the prohibition is based.

Extension of territorial sea for certain laws

  The reported bill extends the territorial sea definitions in 
the Ports and Waterways Safety Act and subtitle II of title 46, 
United States Code, from 3 to 12 nautical miles from the U.S. 
baselines. The extensions conform these laws with Presidential 
Proclamation 5928 of December 27, 1988, which was issued by 
President Reagan and which extended the U.S. territorial sea 
from 3 to 12 nautical miles.

Sanctions for failure to land or bring to

  The reported bill establishes criminal sanctions for failure 
by a person in charge of an aircraft to obey an order to land 
issued by an authorized Federal drug law enforcement officer 
and for failure by a person in charge of a vessel to obey an 
order issued by an authorized Federal law enforcement officer 
to ``bring to'' that vessel (i.e., to enable law enforcement to 
board the vessel). The amendment also establishes criminal 
sanctions for obstruction of a vessel boarding and for 
providing false information about a vessel and its cargo to a 
Federal law enforcement officer during a boarding of that 
vessel.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 13, 1997.
Hon. John McCain,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1259, the Coast 
Guard Authorization Act for Fiscal Years 1998 and 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Reis (for federal costs), Kristen Layman (for the state and 
local impact), and Jean Wooster (for the impact on the private 
sector).
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               congressional budget office cost estimate

S. 1529--Coast Guard Authorization Act for Fiscal Years 1998 and 1999

    Summary: S. 1529 would authorize appropriations for 
discretionary programs of the U.S. Coast Guard (USCG) for 
fiscal years 1998 and 1999. For both years, the bill would 
authorize about $3.2 billion, including about $2.7 billion for 
operating expenses, $379 million for acquisition and other 
capital projects. $19 million for research activities, $26 
million for bridge alterations, and $21 million for 
environmental compliance. Of the amounts authorized for each 
year, $48.5 million would be derived from the Oil Spill 
Liability Trust Fund (OSLTF).
    S. 1259 contains no new intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA) and would impose no significant costs on state, local, 
or tribal governments.
    Two provisions of the bill could increase federal revenues 
from civil penalties; therefore, pay-as-you-go procedures would 
apply. The budgetary effect of these provisions, however, would 
be negligible.
    Estimated cost to the Federal Government: Assuming 
appropriation of the entire amounts authorized for 
discretionary programs, funding for both 1998 and 1999 would be 
$24 million (less than 1 percent) more than has been enacted 
for 1998. The estimated budgetary effects of the legislation 
are summarized in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--      
                                                           -----------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
USCG Spending Under Current Law:                                                                                
    Estimated Authorization Level \1\.....................    3,052    3,161       29        0        0        0
    Estimated Outlays.....................................    2,807    3,092      893      464      136       63
Proposed Changes:                                                                                               
    Estimated Authorization Level.........................        0       24    3,156        0        0        0
    Estimated Outlays.....................................        0       20    2,251      444      344       81
USCG Spending Under S. 1259:                                                                                    
    Estimated Authorization Level.........................    3,052    3,185    3,185        0        0        0
    Estimated Outlays.....................................    2,807    3,112    3,144      908      480      144
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 and 1998 figures are the amounts appropriated for programs authorized by this bill. The $29 million
  shown for 1999 is the amount already authorized by the Oil Pollution Act of 1990 for appropriations from the  
  OSLTF.                                                                                                        

    The costs of this legislation fall within budget functions 
300 (natural resources and environment) and 400 
(transportation). Amounts provided in the bill for Coast Guard 
retirement have not been included in the above table because 
such pay is an entitlement under current law, requiring no 
annual authorization of appropriations.
    Basis of estimate: For purposes of this estimate, CBO 
assumes that S. 1259 will be enacted during the first few 
months of calendar 1998, and that the full amounts authorized 
for USCG programs will be appropriated for each fiscal year.
    The additional authorization of $24 million for 1998 shown 
in the table represents the difference between the total stated 
in the bill for discretionary accounts and the amount already 
appropriated for such accounts to date. For 1999, the 
additional authorization level of $3,156 million is as stated 
in the bill. That amount does not include $28.5 million of the 
$48.5 million to be derived from the OSLTF. (This amount, which 
consists of $25 million for Coast Guard operations and $3.5 
million for research, is excluded because it is already 
authorized under existing law.) Outlays for all years are 
estimated on the basis of historical spending patterns for 
Coast Guard programs.
    Section 201 of S. 1259 would increase future costs of Coast 
Guard operations and other discretionary programs, assuming 
appropriation of the necessary amounts, by removing the $15,000 
cap on severance payments for warrant officers. In total, CBO 
estimates the cost of this provision to be less than $200,000 
per year.
    Several provisions of Title IV would direct the Coast Guard 
to convey without reimbursement certain real property to 
various units of local government or nonprofit organizations. 
Because none of these sites are likely to be sold under current 
Administration plans, their donation would have no effect on 
the federal budget.
    Other provisions of S. 1259 are not expected to have any 
significant impact on the federal budget.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 sets up pay-
as-you-go procedures for legislation affecting direct spending 
or receipts. Two provisions of S. 1259 could affect receipts by 
increasing civil penalties, but CBO estimates that the amount 
of any new revenues would not be significant.
    Estimated impact on State, local, and tribal governments: 
S. 1259 contains no intergovernmental mandates as defined in 
UMRA; however, several provisions would affect state and local 
governments. CBO estimates that, on the whole, the bill's 
provisions, including those discussed above, would benefit 
state and local governments.
    The bill's amendments to the federal Vessel Identification 
System could result in more vessel owners seeking state 
numbering and titling of their boats. These amendments would 
make state-titled vessels more likely to receive preferred 
mortgages. As a result, vessel owners who previously would have 
sought federal documentation would be more likely to seek state 
titles. CBO estimates that the impact of these changes on state 
budgets would be negligible. Furthermore, states generally 
charge fees for vessel services that cover the costs of 
administering this voluntary program.
    Any additional costs associated with the property 
conveyances authorized in this bill would be incurred 
voluntarily by states.
    Estimated impact on the private sector: S. 1259 would 
extend from 3 miles to 12 miles the territorial sea of the 
United States for purposes of enforcing the Ports and Waterways 
Safety Act and portions of Title 46 of the United States Code 
(Shipping). Thus, S. 1259 would extend the geographical 
coverage of existing private-sector mandates, regarding marine 
safety, on owners of operators of vessels visiting U.S. ports. 
Based on information provided by the Coast Guard, CBO estimates 
that this bill should impose no additional costs on the private 
sector because the same number of ships would be affected as 
under current law.
    Previous CBO estimate: On July 31, 1997, CBO prepared a 
cost estimate for H.R. 2204, the Coast Guard Authorization Act 
of 1997, as ordered reported by the House Committee on 
Transportation and Infrastructure on July 23, 1997. The 
estimate for H.R. 2204 reflected that bill's higher 
authorization levels for both fiscal years 1998 and 1999.
    Estimate prepared by: Federal Costs: Deborah Reis; Impact 
on State, Local, and Tribal Governments: Kristen Layman; and 
Impact on the Private Sector: Jean Wooster.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.

                       number of persons covered

  S. 1259 as reported by the Committee authorizes 
appropriations to continue existing Coast Guard programs and 
makes a number of changes to current law. The bill would have 
little, if any, regulatory impact, but a few of the bill's 
sections could impact some individuals and businesses, and the 
effects of these sections can be clarified as follows:
  Section 302 of the reported bill prohibits the transport of 
cargo sponsored by the U.S. government on a vessel that has 
been detained by the Secretary for violation of an 
international safety convention to which the United States is a 
party. This section could reduce business opportunities for 
vessel owners and crew that might be available currently, but 
the reduction in business would occur only as a result of a 
violation of important safety standards designed to protect 
human life, property, and the environment. The provision will 
not create additional regulation. Rather, it will help to 
strengthen compliance with international safety regulations 
already recognized and enforced by the United States.
  Section 305 extends the territorial sea definition in the 
Ports and Waterways Safety Act and subtitle II of title 46, 
United States Code, from 3 nautical miles to 12 as measured 
from the baselines of the United States. This change expands 
the area of application of these laws that provide for safe 
maritime transportation and protection of the environment. The 
laws currently apply to vessels when they enter the area within 
3 nautical miles of the U.S. coast. Since nearly all marine 
transport vessels operating from 3 to 12 nautical miles 
offshore also enter the current 3-mile territorial sea, they 
are already subject to the requirements of the laws amended by 
the reported bill. Section 305 does not, therefore, impose new 
requirements on the maritime industry.
  Section 409 establishes criminal sanctions for failure by a 
person in charge of an aircraft to obey an order to land issued 
by an authorized Federal law enforcement officer and for 
failure by a person in charge of a vessel to obey an order 
issued by an authorized Federal law enforcement officer to 
``bring to'' that vessel. While this section could impact some 
aircraft and vessel owners and operators, it is intended only 
to improve enforcement of existing Federal laws and to affect 
only those aircraft and vessels suspected of engaging in 
unlawful activity or, in the case of vessels, those required 
under other Federal laws and regulations to comply with 
boarding orders from authorized Federal law enforcement 
officers. Furthermore, the section is not intended in any way 
to compromise existing protections against illegal searches by 
Federal law enforcement agencies.

                            economic impact

  As noted above, sections 302 and 409 of the reported bill 
could have an economic impact on some individuals and 
businesses, but these impacts would result from penalties 
imposed for violations of existing Federal regulations and laws 
or from lawful attempts by authorized Federal law enforcement 
agencies to enforce existing Federal regulations and laws, 
particularly those related to illegal drug importation and 
money laundering. These sections do not impose new regulatory 
requirements on individuals and businesses.

                                privacy

  Section 303 of the reported bill enhances personal privacy 
protections by clarifying that the Coast Guard is not required 
to release to the public personal information such as home 
telephone numbers, home addresses, and social security numbers 
collected in the course of a marine casualty investigation.
  Section 409 should not have a significant impact on the 
personal privacy of persons in charge of aircraft or vessels 
because the section does not compromise the existing 
protections against illegal searches that provide a check 
against inappropriately intrusive behavior by Federal law 
enforcement authorities. The authority to order aircraft to 
land is intended to be used only if a Federal law enforcement 
agency has a reason to suspect that the person in charge of an 
aircraft is involved in illegal drug activity or money 
laundering. Under section 89 of title 14, United States Code, 
the Coast Guard is currently authorized to board and examine 
any vessel subject to the jurisdiction of the United States, 
and section 409 is intended to improve enforcement of this 
existing authority.

                               paperwork

  S. 1259 as reported should not significantly increase 
paperwork requirements for individuals and businesses.

                      Section-by-section Analysis

Section 1. Short title

  This section states the short title of the bill as the 
``Coast Guard Authorization Act for Fiscal Years 1998 and 
1999''.

Section 2. Table of sections

  This section provides a table of the sections in the 
legislation.

                        TITLE I--AUTHORIZATIONS

Section 101. Authorization of appropriations

  This section of the reported bill would authorize Coast Guard 
appropriations for FY 1998 and FY 1999. The following chart 
summarizes the FY 1998 and the FY 1999 authorization levels 
proposed in subsections (a) and (b), respectively:

     PROPOSED LEVELS FOR PROGRAMS AUTHORIZED IN S. 1259 AS REPORTED     
                [By fiscal years, in millions of dollars]               
------------------------------------------------------------------------
                  Programs                       FY 1998       FY 1999  
------------------------------------------------------------------------
Operating Expenses..........................       2,740         2,740  
AC&I........................................;         379           379  
R&D.........................................;          19            19  
Retired Pay.................................         645.7         675.6
Alteration of Bridges.......................          26            26  
Environmental Compliance....................          21            21  
                                             ---------------------------
      Total.................................       3,830.7       3,860.6
------------------------------------------------------------------------

Section 102. Authorized levels of military strength and training

  This section of the reported bill provides authorization for 
levels of military personnel strength and training for FY 1998 
and FY 1999. Subsection (a) authorizes a Coast Guard end-of-
fiscal-year strength for active duty military personnel of 
37,660 as of September 30, 1998. Subsection (b) authorizes 
average military training student loads in FY 1998 of 1,368 
student years for recruit and special training; 98 student 
years for flight training; 283 student years for professional 
training in military and civilian institutions; and 797 student 
years for officer acquisition.
  Subsection (c) authorizes a Coast Guard end-of-fiscal-year 
strength for active duty military personnel of such numbers as 
may be necessary as of September 30, 1999. Subsection (d) 
authorizes average military training student loads in FY 1999 
of such student years as may be necessary for each category. 
The authorized strength levels in this section do not include 
members of the Coast Guard Ready Reserve called to active duty 
for special or emergency augmentation of regular Coast Guard 
forces for periods of 180 days or less.

                    TITLE II--COAST GUARD MANAGEMENT

Section 201. Severance pay

  Subsection (a) of this section of the reported bill amends 
section 286a(d) of title 14, U.S. Code, to eliminate the 
$15,000 cap on severance pay for regular Coast Guard warrant 
officers. This provision will eliminate an inequity in current 
law under which severance pay for Coast Guard warrant officers, 
unlike severance pay for all other military personnel, is 
subject to a statutory dollar limit.
  When the Coast Guard severance pay cap was originally 
enacted, it was similar to the $15,000 cap in place at the time 
for DOD warrant officer separation pay (the DOD equivalent of 
severance pay). In 1980, however, the DOD cap was increased to 
$30,000 (P.L. 96-513), and then it was completely eliminated by 
section 501 of the FY 1991 Department of Defense Authorization 
Act (P.L. 101-510). Currently, no statutory dollar limits apply 
to the separation pay of any members of the DOD services, nor 
are there any statutory caps on the severance pay available to 
other regular Coast Guard officers, Coast Guard Reserve 
officers, or Coast Guard enlisted personnel. Subsection (a) 
extends the same treatment to severance pay for Coast Guard 
warrant officers. On average, four Coast Guard warrant officers 
are separated with severance pay annually.
  Subsections (b) and (c) provide the Secretary with the 
discretionary authority to deny severance pay to a warrant 
officer or an officer, respectively, who is separated from 
Coast Guard service with an other than honorable discharge, if 
the Secretary determines that the circumstances under which the 
warrant officer or officer was discharged do not warrant 
severance pay. This authority is comparable to that available 
to the DOD services.

Section 202. Authority to implement and fund certain awards programs

  This section of the reported bill amends section 93 of title 
14, U.S. Code, to authorize Coast Guard use of appropriations 
or other available funds to provide for the honorary 
recognition of individuals and organizations that significantly 
contribute to Coast Guard programs, missions, or operations. 
Specifically, this section authorizes the use of such funds to 
purchase award items such as trophies and plaques and to pay 
for reasonable ceremony and presentation expenses.
  The Coast Guard has traditionally maintained programs that 
formally recognize the significant contributions of citizens, 
non-profit organizations, businesses, and state and local 
governments to the missions and operations of the Coast Guard. 
These programs include the William M. Benkert Award to 
recognize excellence in marine environmental protection and the 
Charles P. Murphy Award to recognize contributions to national 
and international marine safety protection. The Comptroller 
General has ruled, however, that appropriated funds may not be 
used for this purpose without specific statutory authorization. 
The U.S. Department of Agriculture, the Department of the 
Interior, and the National Aeronautics and Space 
Administration, among others, have statutory authorizations 
which allow the use of available funds and appropriations to 
provide awards to private individuals and organizations.
  This section provides similar authority for the Coast Guard. 
The Committee recognizes the value of honoring the 
contributions of private citizens, organizations, businesses, 
and state and local governments to the many important 
operations of the Coast Guard, and the value of encouraging 
similar contributions in the future. The Committee expects, 
however, that the Coast Guard will conduct these programs in a 
prudent and fiscally responsible manner.

Section 203. Use of appropriated funds for commercial vehicles at 
        military funerals

  This section of the reported bill amends section 93 of title 
14, U.S. Code, to authorize use of appropriated funds for 
renting or leasing commercial vehicles to provide 
transportation for family members attending military funerals 
of eligible retired Coast Guard personnel at national 
cemeteries. The Coast Guard does not maintain a motor pool that 
can provide transportation to next of kin for these occasions, 
and under current law, the Coast Guard does not have the 
authority to use appropriated funds to rent or lease vehicles 
for these functions. Providing transportation for the family 
members of deceased Coast Guard personnel eligible for burial 
in national cemeteries is an appropriate way to honor the 
contributions and sacrifices of the deceased service members. 
TheCoast Guard estimates that the annual costs associated with 
these rentals would be less than $1000.

Section 204. Authority to reimburse Novato, California, reuse 
        commission

  This section authorizes up to $25,000 for the reimbursement 
of the City of Novato, California, for expenses incurred by the 
city in revising the Hamilton Reuse Planning Authority's base 
reuse plan. The city had to revise the reuse plan after the 
Coast Guard changed its request for housing at the former 
Hamilton Air Force Base, and these revisions resulted in 
additional costs for the city. The Committee strongly 
encourages the Coast Guard to take steps to ensure its timely 
participation in the military base realignment and closure 
process and to avoid similar costs in the future.

Section 205. Eliminate supply fund reimbursement requirement

  This section of the reported bill amends section 650(a) of 
title 14, U.S. Code, to eliminate the requirement that the 
Coast Guard supply fund (Supply Fund) be reimbursed when 
commodities such as dining facility food items, fuel, and 
certain spare parts and uniform items are transferred to other 
Coast Guard accounts.
  The Coast Guard maintains a number of commodities as 
capitalized assets within its Supply Fund account. Under 
current law, these commodities cannot be transferred from the 
Supply Fund unless the fund is reimbursed for their value. 
Processing these reimbursement transactions requires a 
significant investment of time and resources even though this 
reimbursement is not necessary to ensure that commodity 
transfers are properly accounted for. The Coast Guard has 
determined that although food items account for only 7 percent 
of the Supply Fund inventory value, 89 percent of their Supply 
Fund accounting efforts are devoted to the maintenance of 
inventory for the Coast Guard dining facilities.
  Section 205 allows food items and other commodities that are 
currently maintained as part of the Supply Fund to be 
transferred from the Supply Fund account without the need for 
reimbursement and the associated transactions. This provision 
is intended to help improve the efficiency of the Coast Guard's 
accounting procedures without adversely affecting accounting 
safeguards. Monthly operating statements which track each step 
of a transaction will continue to be required. The accounting 
change in this section is supported by the Department of the 
Treasury.

Section 206. Disposal of certain material to Coast Guard Auxiliary

  This section of the reported bill amends section 641 of title 
14, U.S. Code, to authorize the Commandant of the Coast Guard 
to transfer directly personal property of the Coast Guard to 
the Coast Guard Auxiliary (Auxiliary). Such a transfer may be 
made, with or without charge, upon a determination that: (1) 
after consultation with the Administrator of General Services, 
such property is excess to the needs of the Coast Guard but is 
suitable for use by the Auxiliary in performing Coast Guard 
functions, powers, duties, missions, or operations; and (2) 
this excess property will be used solely by the Auxiliary for 
these purposes. This section also stipulates that no 
appropriated funds may be used to operate, maintain, repair, 
alter, or replace any property transferred under this section 
except as permitted by section 830 of title 14, U.S. Code.
  The Auxiliary is a 36,000 member volunteer organization that 
provides the Coast Guard with low-cost assistance in its 
boating safety mission. Authorizing legislation for the 
Auxiliary dates back to World War II, when the Auxiliary 
conducted anti-submarine patrols and served as a predecessor to 
the current Coast Guard Reserve (Coast Guard Auxiliary and 
Reserve Act of 1941, 55 Stat. 9). Auxiliary members place 
themselves and their privately-owned vessels and aircraft at 
risk while conducting Coast Guard missions.
  The assistance provided by the Auxiliary to the Coast Guard 
(and the States) is often limited by the lack of availability 
of vessels and other equipment. Section 641 of title 14, U.S. 
Code, authorizes incorporated units of the Auxiliary to receive 
obsolete or other unneeded material of the Coast Guard. Under 
current law, however, such excess material is available to the 
Auxiliary only after it has first been reported to the General 
Services Administration and made available to all other Federal 
agencies, State and local governmental agencies, and private 
non-profit organizations.

         TITLE III--MARINE SAFETY AND ENVIRONMENTAL PROTECTION

Section 301. Alcohol testing

  Subsection (a) of this section of the reported bill amends 
section 7702 of title 46, U.S. Code, to require the Secretary 
to establish procedures to ensure that alcohol testing of the 
appropriate crew members of a vessel involved in a serious 
marine incident is conducted within two hours after the 
incident is stabilized. Under current law, the Secretary has 
discretion in determining when to require drug and alcohol 
tests for the holder of a license, certificate of registry, or 
merchant mariner's document. In addition to establishing a two-
hour time limit for alcohol testing after a serious marine 
incident, this subsection amends section 7702 to make mandatory 
preemployment (with respect to drugs only), periodic, random, 
reasonable cause, and post-accident testing of such 
individuals.
  The changes in subsection (a) are intended to ensure that 
alcohol testing is conducted promptly after a serious marine 
incident occurs. Under current Coast Guard regulations, the 
marine employer must have crew members who perform safety-
sensitive functions on a vessel involved in a serious marine 
incident tested for alcohol and drug use promptly after the 
incident occurs. But compliance with this requirement is 
inadequate. On September 27, 1996, the Liberian-registered oil 
tanker, Julie N, struck a bridge in Portland, Maine, spilling 
170,000 gallons of oil into the Fore River near Casco Bay. 
Several days after the accident occurred, it was revealed that 
the pilot of the vessel was not tested for alcohol, thereby 
preventing accident investigators from determining whether 
alcohol use played a role in the oil spill. The National 
Transportation Safety Board has stated that there are 
approximately 27 other cases since the Exxon Valdez oil spill 
in 1989 in which mandatory post-accident alcohol and drug 
testing was not properly completed after serious maritime 
accidents.
  Subsection (a) focuses on alcohol testing because the window 
of opportunity to conduct these tests is short compared to the 
window for drug testing. According to the Coast Guard, alcohol 
tests must be completed within eight hours of an accident in 
order to providereliable results. Federal rules for accidents 
involving most of the other transportation modes require alcohol tests 
to be conducted within two hours of the accident unless safety concerns 
preclude the conduct of these tests. Subsection (a) applies a 
comparable standard, requiring the Coast Guard to ensure that alcohol 
tests have been completed no later than two hours after a serious 
marine incident has occurred or been stabilized to prevent further 
threats to public safety or the environment.
  The Coast Guard is a federal law enforcement agency and the 
lead marine incident response agency, and its responsibilities 
encompass the monitoring and enforcement of prompt compliance 
with federal testing rules. The Coast Guard can meet the 
requirement in subsection (a) by either verifying that the 
marine employer has conducted the tests or by conducting the 
tests itself.
  The Committee does not believe that this requirement imposes 
a significant burden on the Coast Guard. By the time a serious 
marine incident is stabilized, many Coast Guard personnel are 
involved in the accident response on scene or on shore, and 
staff can be detailed without detracting from the accident 
response to verify that the marine employer conducts the tests 
within the two-hour time limit. In addition, the equipment 
necessary to conduct an alcohol test is relatively inexpensive 
and portable, and many Coast Guard units already have such 
equipment. As an alternative, if neither the marine employer 
nor the Coast Guard can conduct the tests within the time 
limit, arrangements could be made with local law enforcement 
agencies to conduct the tests.
  The changes made by this subsection of the reported bill do 
not alter in any way the responsibility of a marine employer to 
ensure that all employees in safety sensitive positions are 
properly and expeditiously tested for alcohol use. In fact, 
subsection (b) amends section 2115 of title 46, U.S. Code, to 
increase from $1,000 to $5,000 the maximum civil penalty for 
failure to comply with Coast Guard alcohol and drug testing 
requirements. This increase should provide a stronger 
disincentive to violations of testing procedures.
  Subsection (c) of the reported bill amends section 2302(c)(1) 
of title 46, U.S. Code, by increasing the maximum civil penalty 
from $1,000 to $5,000 for a first violation of Coast Guard 
rules prohibiting the operation of a vessel while under the 
influence of alcohol or drugs. The increase is intended to 
provide a stronger disincentive to the operation of a vessel 
while intoxicated. Each year, hundreds of citizens die as a 
result of accidents involving vessels whose operators were 
intoxicated, and the number of such accidents has increased in 
recent years. While increased penalties should help to reduce 
the number of vessel accidents involving drugs or alcohol, the 
Committee recognizes that more must be done to address this 
problem and urges the Coast Guard to devote serious attention 
to reducing substantially the number of such accidents in the 
future.

Section 302. Penalty for violation of international safety convention

  This section of the reported bill amends section 2302 of 
title 46, U.S. Code, to prohibit a vessel from transporting 
cargo sponsored by the Federal government if the vessel has 
been detained by the Coast Guard for violation of an 
international safety convention to which the United States is a 
party, and the Secretary has published notice of the detention. 
Such a vessel is prohibited from transporting government-
sponsored cargoes for one year after the date of the detention, 
unless the Secretary grants an appeal of the detention. In 
addition, the head of a Federal agency is permitted to grant an 
exemption from the prohibition if the owner of the affected 
vessel provides compelling evidence that the vessel is 
currently in compliance with applicable international safety 
conventions to which the United States is a party. The 
transport prohibition applies to cargo for which a Federal 
agency has contracted for shipping by water or for which a 
Federal agency has provided financing which results in the 
shipping of the cargo by water. The Coast Guard currently 
maintains a Port State Control website on the Internet that 
lists all of the foreign-flag vessels to which this section 
applies.
  According to Coast Guard statistics, 69 of the 476 vessels 
detained in 1996 carried U.S. Government preference cargoes 
between 1992 and 1997. Also, 22 owners or operators that had 
multiple vessels detained in 1996 also transported government 
cargoes between 1992 and 1997. The Committee believes that it 
is inappropriate for a vessel to receive financial benefits 
from carrying Federally-sponsored cargoes when that vessel is 
not in compliance with applicable international safety rules 
recognized by the United States. Allowing such vessels to 
transport Federally-sponsored cargo undermines compliance with 
important safety standards and is unfair to vessel owners and 
operators who adhere to these standards.

Section 303. Protect marine casualty investigations from mandatory 
        release

  This section of the reported bill amends section 6305(b) of 
title 46, U.S. Code, to clarify that the Coast Guard is not 
required to release to the public personal information such as 
home telephone numbers, home addresses, and social security 
numbers gathered in the course of a marine casualty 
investigation.
  Current law states that reports of marine casualty 
investigations shall be made available to the public, but it 
provides an exception from mandatory public release for any 
information in a report related to national security. The 
statute's explicit reference to only national security has 
generated confusion as to whether the law excludes the 
protection of other kinds of information, particularly personal 
information not normally required to be released under laws 
such as the Freedom of Information Act (FOIA). Certain personal 
information is exempted from mandatory disclosure under FOIA 
and other laws in order to protect individuals from unwarranted 
invasions of their personal privacy, to encourage the full 
cooperation of witnesses, and to protect witnesses from 
retaliation by parties at fault. These same interests apply in 
the investigation of a marine casualty, but the existing 
language of section 6305(b) may be interpreted to preclude the 
Coast Guard from withholding certain personal information from 
public release in these cases.
  Section 303 of the reported bill addresses this problem by 
deleting the singular national security exemption in the 
current law and replacing it with language stating that the 
Coast Guard is not required to release information otherwise 
protected under section 552(b) of FOIA (5 U.S.C. 552(b)) or 
other Federal laws. Thus, section 303 has the effect of fully 
applying the FOIA rules for determining which information is 
appropriate for public release. Section552(b) exempts national 
security information as well as certain personal information from 
public disclosure. The personal information exemption under FOIA is not 
automatic, however. It can be used only when the interest in protecting 
personal privacy outweighs any benefit that would result from the 
release of the information.

Section 304. Eliminate biennial research and development report

  This section of the reported bill eliminates the requirement 
under section 7001 of the Oil Pollution Act of 1990 (33 U.S.C. 
2761) that the chairman of the Interagency Coordinating 
Committee on Oil Pollution Research (Interagency Committee) 
issue a report every two years on the Committee's activities 
during the preceding two-year period and on activities planned 
for the upcoming two-year period.
  The Interagency Committee consists of representatives of 13 
Federal agencies, and it is chaired by the Coast Guard. The 
purposes of the Interagency Committee are to prepare a 
comprehensive and coordinated Federal oil pollution research 
and development plan and to promote cooperation in oil 
pollution research and development among Federal agencies, 
industry, research institutions, the States, and other nations. 
In recent years, however, funding for the Interagency 
Committee's activities has been very limited, and there is 
relatively little information to report. Thus, the mandatory 
preparation of the report is unnecessary.

Section 305. Extension of territorial sea for certain laws

  This section of the reported bill amends the Ports and 
Waterways Safety Act (PWSA, 33 U.S.C. 1222 et. seq.) and 
subtitle II of title 46, United States Code, by extending the 
U.S. territorial sea for the purposes of these laws from 3 to 
12 nautical miles from U.S. coastal baselines. The U.S. 
territorial sea is a maritime zone extending beyond the land 
territory and internal waters of the United States over which 
the United States exercises sovereignty and jurisdiction. 
International law recognizes a 12 nautical mile territorial sea 
for sovereign nations. Under Presidential Proclamation 5928 of 
December 27, 1988, President Reagan extended the U.S. 
territorial sea from 3 to 12 nautical miles to advance national 
security and other foreign relations interests of the United 
States.
  Section 305 makes the application of these domestic maritime 
laws consistent with international law and Presidential 
Proclamation 5928. Subsection (a) amends section 102 of the 
PWSA by adding a new definition of the term ``navigable waters 
of the United States.'' The term is defined to include all 
waters of the U.S. territorial sea as described in Presidential 
Proclamation 5928. As a result of this amendment, provisions of 
the PWSA would be enforceable from the baselines of the U.S. 
out to 12 nautical miles. Under the PWSA, the Coast Guard 
establishes vessel operating requirements for all U.S. and 
foreign vessels, including vessel traffic systems. The PWSA 
also authorizes the Coast Guard to direct the movement and 
anchorage of vessels, establish safety zones, and investigate 
vessel casualties. In addition, the PWSA enables the Coast 
Guard to prohibit the operation in U.S. waters of substandard 
vessels, including those with a history of accidents, pollution 
incidents, or serious repair problems, as well as those vessels 
that discharge oil or hazardous materials or that are 
improperly manned.
  Under the current language in the PWSA, the Coast Guard has 
been limited in its ability to fully protect public safety, the 
marine environment, and maritime transportation. For example, 
in November 1996, there were two instances in which vessels 
collided with navigational light stations at distances of 8.6 
nautical miles and 7 nautical miles from the shore, and the 
Coast Guard was unable to establish safety zones around the 
perimeter of the accident sites. Rather, the Coast Guard could 
only issue a notice of warning to mariners. Had the same 
collisions occurred within three nautical miles, the Coast 
Guard would have been able to establish safety zones in order 
to control and protect vessel traffic in the area. The change 
made by subsection (a) of the reported bill extends the Coast 
Guard's authority to enforce important maritime safety and 
marine environmental protection requirements from the current 3 
nautical miles to 12 nautical miles. It will not, however, 
affect a vessel's right of innocent passage through the U.S. 
territorial sea or transit passage through U.S. navigable 
waters that are part of an international strait.
  Subsection (b) amends subtitle II of title 46, U.S. Code, to 
apply a 12 nautical mile territorial sea to the vessel safety 
and shipping laws contained therein. Subtitle II includes the 
majority of U.S. maritime safety and seaman protection laws. 
These laws are administered by the Coast Guard and include 
inspection and regulation of vessels; civil penalties and 
criminal sanctions for the negligent operation of vessels in 
U.S. waters; load lines and measurements of vessels; 
investigation of marine casualties; merchant seaman protection 
and relief; merchant seaman licenses and certificates; the 
manning of commercial vessels; and recreational boating safety 
programs. The extension of the U.S. territorial sea from 3 to 
12 nautical miles for purposes of subtitle II would improve the 
Coast Guard's ability to ensure the safe operation of vessels 
in U.S. waters and enhance the Coast Guard's ability to fully 
implement its Port State enforcement program. Under this 
program, the Coast Guard regulates the operation of potentially 
unsafe foreign flag vessels seeking to enter U.S. ports.
  Specifically, paragraph (b)(1) inserts a new definition of 
``navigable waters of the United States'' in the general 
definitions section of subtitle II (46 U.S.C. 2101). As 
defined, the term will include all waters of the 12-mile 
territorial sea of the United States.
  Paragraph (b)(2) amends section 2301 of title 46, U.S. Code, 
by clarifying that ``waters subject to the jurisdiction of the 
United States'' include all waters of the 12-mile territorial 
sea of the United States. This amendment clarifies the 
authority of the Coast Guard to control and assess penalties 
against foreign vessels operating negligently in U.S. waters.
  Paragraph (b)(3) amends section 4102(e) of title 46, U.S. 
Code, to ensure that the Coast Guard regulations for manned 
uninspected vessels, including the number and type of emergency 
locating equipment required, will continue to apply beyond 
three miles from the baseline of the United States, an area 
which is no longer considered high seas.
  Paragraph (b)(4) amends section 4301(a) of title 46, U.S. 
Code, by including within a new definition of ``waters subject 
to the jurisdiction of the United States'' all waters of the 
12-mile territorial sea. The amendment enhances the authority 
of the Coast Guard to regulate recreational vessel safety in 
U.S. waters.
  Paragraph (b)(5) amends section 4502(a)(7) of title 46, U.S. 
Code, by striking ``on vessels that operate on the high seas'' 
and inserting ``beyond 3 nautical miles from the baselines from 
which the territorial sea of the United States is measured''. 
The amendment enables the Coast Guard to continue to require 
emergency position indicating radio beacons on vessels that 
operate beyond three nautical miles from the baseline from 
which the territorial sea is measured.
  Paragraph (b)(6) amends section 4506(b) of title 46, U.S. 
Code, by inserting new language to clarify that commercial 
fishing vessels are exempt from Coast Guard regulations under 
this chapter only if they are operating in U.S. internal waters 
or within 3 nautical miles from the baselines of the United 
States, but are not exempt if they are operating between 3 and 
12 nautical miles.
  Paragraph (b)(7) amends section 8502(a)(3) of title 46, U.S. 
Code, by clarifying that the requirement for Federal pilots on 
coastwise seagoing vessels continues to apply to vessels 
operating within three nautical miles from the baselines of the 
United States.
  Paragraph (b)(8) amends section 8503(a)(2) of title 46, U.S. 
Code, to clarify that the Coast Guard may continue to require a 
Federal pilot on a self-propelled vessel when a pilot is not 
required by State law if the vessel is engaged in foreign 
commerce and is operating within three nautical miles from the 
baselines from which the U.S. territorial sea is measured.

Section 306. Law enforcement authority for special agents of the Coast 
        Guard Investigative Service

  This section of the reported bill amends section 95 of title 
14, U.S. Code, to expand and clarify the law enforcement 
authorities of special agents of the Coast Guard Investigative 
Service (CGIS). Under current law, CGIS special agents may 
carry firearms. Section 306 adds the authority to execute and 
serve warrants and to make arrests without a warrant if a 
Federal offense is committed in the agent's presence or if the 
agent has probable cause to believe that a person has committed 
or is committing a felony under Federal law. In addition, this 
section states that these law enforcement authorities can be 
exercised only in the enforcement of laws for which the Coast 
Guard has law enforcement authority or in exigent 
circumstances. Finally, this section of the reported bill 
authorizes the Commandant of the Coast Guard to designate the 
CGIS special agents who will have enhanced law enforcement 
authority under the section.
  The CGIS is the Coast Guard's investigative organization, 
conducting investigations related to military justice, 
procurement fraud, environmental crimes, and other criminal 
matters relevant to Coast Guard duties. Under current 
Department of Justice regulations (28 C.F.R. Part 60), military 
special agents of the CGIS are identified as agents authorized 
to apply for and execute search warrants through local U.S. 
Attorneys. Section 306 clarifies that civilian special agents 
are authorized to apply for and execute warrants as well.
  Since 1990, CGIS civilian special agents have been designated 
as Deputy U.S. Marshals, a designation which gives them the 
authority to make arrests related to CGIS investigations. But 
this special deputation authority must be renewed annually 
through a time-consuming application process involving the 
Department of Justice's Criminal Division, the U.S. Marshals 
Service, and the Coast Guard. The fact that deputation 
authority has been granted to civilian CGIS special agents 
consistently since 1990 provides clear evidence of the 
appropriateness and utility of giving these agents the 
authority to make arrests. The statutory changes made by this 
section of the reported bill obviate the need to repeat the 
lengthy and costly annual renewal process through the Justice 
Department and the U.S. Marshals Service.
  This section will improve the effectiveness and efficiency of 
the CGIS in carrying out the missions of the Coast Guard and 
the U.S. Attorney General. It will also provide CGIS special 
agents with law enforcement authority comparable to that which 
is available to the agents of the DOD Defense Criminal 
Investigative Service.

                        TITLE IV.--MISCELLANEOUS

Section 401. Vessel identification system amendments

  This section amends several provisions in title 46, U.S. 
Code, to help ensure the effective operation of the Federal 
Vessel Identification System (VIS). Now under development by 
the Coast Guard, the VIS will establish a new database capable 
of providing law enforcement officials and other authorized 
users ready access to registration, documentation, ownership, 
and other kinds of information for a huge number of vessels 
across the United States.
  The VIS will operate in a manner similar to the Vehicle 
Identification Number (VIN) system for automobiles. Today, a 
boat owner could keep a $25,000 boat on a $2,500 trailer, and 
if both the boat and trailer were stolen, law enforcement 
authorities could track a future sale of the trailer, even if 
it occurred in another state, by using the VIN system. However, 
due to the lack of an effective interstate vessel tracking 
system, the boat could simply be transported to another state, 
re-registered, and then sold to an unknowing buyer. Access to 
key vessel information through the VIS will provide the Coast 
Guard and other law enforcement agencies with an improved 
ability to deter fraud and other crime. Moreover, marine 
consumers and lenders will receive an increased level of 
protection in complex transactions, one result of which should 
be enhanced access to vessel financing.
  Under a pilot program, a Coast Guard contractor has designed 
the VIS pursuant to the Coast Guard's specifications and has 
tested the system. According to the Coast Guard, the initial 
tests indicate that the system appears to be sound. The Coast 
Guard is currently conducting its own testing as well, and in 
the summer of 1998, the Coast Guard expects the first two pilot 
states, Wisconsin and Ohio, to enter the operational test and 
evaluation stage. Virginia, the third pilot state, is expected 
to begin using the VIS shortly thereafter.
  Section 401 makes a number of changes in law necessary for 
full and effective implementation of the VIS. Under current 
law, a vessel titled in a State is ineligible for Federal 
documentation. In practice, however, some vessels may receive 
state titles while Federal documentation is pending. As a 
result, a vessel owner or lender unaware of the state title may 
later find out that the vessel is ineligible for Federal 
documentation and, consequently, that a mortgage filed with the 
Coast Guard could be neither perfected nor preferred, possibly 
resulting in a complete loss of collateral for the lender. 
Paragraph (1) of section 401 addresses this problem by amending 
section 12102(a) of title 46, U.S. Code, to delete the language 
prohibiting the Federal documentation of a vessel titled in a 
State.
  Consistency of documentation is an important feature of the 
VIS. Therefore, while a vessel titled in a State should be 
eligible to obtain Federal documentation, it is not 
advantageous to permit the vessel to maintain dual 
registrations. Unfortunately, the current law does not 
explicitly prohibit dual registrations. To remedy this problem, 
paragraph (2) of this section of the reported bill amends 
section 12301 of title 46, U.S. Code, to clarify that a 
Federally documented vessel cannot also be titled in a State 
and to require that a State title be surrendered in accordance 
with regulations issued by the Secretary when a vessel receives 
Federal documentation. The provision also stipulates that the 
Secretary may not approve the surrender of a State title 
covered by a preferred mortgage unless the mortgagee consents. 
As a result of this change, the VIS would provide for more 
effective tracking of vessel information. Moreover, instances 
of vessel title fraud, such as circumvention of an outstanding 
security interest perfected on a State title, would be more 
difficult to successfully execute because the surrender of a 
State title would be permitted only if the secured party named 
on the title provides consent.
  Paragraph (3) of section 401 amends section 31322(b) of title 
46, U.S. Code, to provide that preferred mortgages for vessels 
titled in a State may have any rate of interest to which the 
parties agree. Under current law, preferred mortgages for 
Federally documented vessels may have any interest rate to 
which the parties to the mortgage agree. The change made by 
this paragraph extends the same treatment of interest rates to 
vessels that are titled in a State and that qualify for a 
preferred mortgage under section 31322(d) of title 46, U.S. 
Code. Paragraph (4) of this section of the reported bill makes 
technical and conforming changes to existing section 
31322(d)(1).
  Section 401(5) amends section 31322(d)(3) of title 46, U.S. 
Code, to clarify that a preferred mortgage attaches to a vessel 
and remains preferred even if the vessel is no longer titled in 
the State in which the mortgage became a preferred mortgage. 
The language of the existing statute states that the preferred 
mortgage remains preferred even if the vessel is no longer 
titled in the State in which the mortgage was ``made''. This 
linkage to the State in which the mortgage was ``made'' rather 
than preferred is technically problematic because vessel owners 
often ``make'' or secure mortgages in States different from the 
ones in which they live and in which their vessels are titled. 
As corrected by the amendment in paragraph (5), section 
31322(d)(3) more clearly provides for the continuity of 
preferred mortgage status and thus helps to ensure consistency 
and equity in marine financing arrangements.
  Paragraphs (7), (8), and (9) of section 401 amend section 
31325 of title 46, U.S. Code, to enable a lender to enforce a 
preferred mortgage lien on a State-titled vessel in a civil 
action in rem. Section 31322(d) currently specifies the 
conditions under which a mortgage for a State-titled vessel is 
deemed a preferred mortgage with priority status. However, 
section 31325 of existing law does not extend the foreclosure 
rights to the holders of preferred mortgages for State-titled 
vessels that are available to such holders for vessels 
documented under Federal law. The changes in paragraphs (7), 
(8), and (9) would give lenders the same foreclosure options 
for preferred mortgages covering State-titled vessels and 
vessels documented under Federal law. These foreclosure options 
are expected to be exercised primarily in unusual cases when 
self-help repossession remedies under State law are not 
feasible. The changes to section 31325 should encourage lenders 
to make financing for recreational vessels more readily 
available.

Section 402. Conveyance of Communication Station Boston Marshfield 
        Receiver Site, Massachusetts

  This section of the reported bill authorizes the Secretary to 
convey the Coast Guard Communication Station Boston Marshfield 
Receiver Site in Massachusetts to the Town of Marshfield, 
Massachusetts. The section specifies, however, that the 
Secretary may not convey the land on which the station's 
communications tower and the microwave building facility are 
situated.

Section 403. Conveyance of Nahant Parcel, Essex County, Massachusetts

  This section of the reported bill authorizes the Coast Guard 
to convey a closed Coast Guard recreation facility in Nahant, 
Massachusetts, to the Town of Nahant. The land on which the 
facility was built had originally been town property and was 
conveyed to the Coast Guard. Now that the Coast Guard facility 
on this property has closed, the town would like to restore its 
use for community recreational purposes.

Section 404. Conveyance of Eagle Harbor Light Station

  This section of the reported bill directs the General 
Services Administration (GSA) to convey the Eagle Harbor Light 
Station in Michigan to the Keweenaw County Historical Society. 
Prior to transfer to the GSA, this light station had been a 
Coast Guard property. Conveyance of the property is subject to 
several conditions: (1) the property will be maintained in a 
manner that ensures its present or future use as a Coast Guard 
aid to navigation; (2) it will be maintained in a manner 
consistent with the provisions of the National Historic 
Preservation Act of 1966 (16 U.S.C. 470 et seq.); and (3) it 
will be used for public benefit as a non-profit center for the 
interpretation and preservation of maritime history.

Section 405. Conveyance of Coast Guard Station Ocracoke, North Carolina

  This section of the reported bill authorizes the Coast Guard 
to convey the closed Coast Guard station at Ocracoke, North 
Carolina, to the ferry division of the North Carolina 
Department of Transportation (NCDOT). The conveyance of this 
property would be subject to the conditions that: (1) the Coast 
Guard may reserve easements on the property for the continued 
use of the boat launching ramp,the access road to the boat 
launching ramp, and the pier space; and (2) the ferry division of NCDOT 
maintain the property at its own expense in a manner necessary for the 
use of any of the aforementioned easements. This section is similar to 
S. 1262, a bill introduced by Senator Faircloth on October 7, 1997.

Section 406. Conveyance of Coast Guard Property to Jacksonville 
        University in Jacksonville, Florida

  This section of the reported bill authorizes the Secretary to 
convey the property comprising the Long Branch Rear Range Light 
in Jacksonville, Florida, to Jacksonville University. The 
conveyance of this property would be subject to any terms and 
conditions that the Coast Guard deems appropriate and to the 
condition that the property reverts to the United States if it 
ceases to be used by Jacksonville University.

Section 407. Coast Guard City, USA

  This section of the reported bill recognizes the community of 
Grand Haven, Michigan, as ``Coast Guard City, USA''. The close 
relationship between Grand Haven and the Coast Guard dates back 
to 1932. Today, the people of Grand Haven continue to honor the 
Coast Guard with an annual Grand Haven Coast Guard Festival and 
a memorial service for the Coast Guard men and women who have 
died while performing Coast Guard missions.

Section 408. Vessel documentation clarification

  This section of the reported bill amends section 12102(a)(4) 
of title 46, U.S. Code, and section 2(a) of the Shipping Act of 
1916 (46 U.S.C. App. 802(a)) to clarify that the chief 
executive officer, by whatever title, of a corporation owning a 
U.S. documented vessel must be a citizen of the United States.
  Under existing law, one condition for a vessel owned by a 
corporation to be eligible for U.S. documentation is that the 
``president or other chief executive officer'' of the 
corporation is a U.S. citizen. The Coast Guard has interpreted 
the conjunction ``or'' in this condition to mean ``and''. As a 
result, the Coast Guard currently requires both the president 
and the chief executive officer of a corporation to be U.S. 
citizens. This section clarifies that the U.S. citizenship 
requirement applies singularly to the chief executive officer 
regardless of title, not to both the chief executive officer 
and the president where those titles pertain to separate 
positions in a corporation. This statutory change does not in 
any way affect the other citizenship requirements applicable 
under current law to a corporation's board of directors or the 
controlling interest of a corporation.

Section 409. Sanctions for failure to land or to bring to; sanctions 
        for obstruction of boarding and providing false information

  Subsection (a) of this section adds a new section 2237 to 
chapter 109 of title 18, U.S. Code, which makes it unlawful for 
a pilot, operator, or person in charge of an aircraft which has 
crossed the U.S. border, or which is operating outside the 
United States but is subject to U.S. jurisdiction, to knowingly 
disobey an order to land issued by an authorized Federal law 
enforcement officer who is enforcing Federal drug or money 
laundering laws. This subsection also directs the Federal 
Aviation Administration (FAA), in consultation with the U.S. 
Customs Service and the U.S. Attorney General, to prescribe 
regulations defining the means by and circumstances under which 
it would be appropriate to order an aircraft to land. These 
regulations must ensure that any such order is clearly 
communicated in accordance with international standards and 
must include guidelines for determining when an officer may 
issue an order to land based on observed conduct, prior 
information, or other circumstances.
  Subsection (b) states that it shall be unlawful for the 
master, operator, or person in charge of a U.S. vessel or a 
vessel subject to U.S. jurisdiction to knowingly disobey an 
order issued by the Coast Guard or other authorized Federal law 
enforcement agency to ``bring to'' that vessel (i.e., stop the 
vessel or slow it down to facilitate boarding). This subsection 
also makes it unlawful for anyone on board such a vessel to 
fail to comply with an order issued by an authorized Federal 
law enforcement officer related to a boarding, to impede or 
obstruct a boarding or arrest, or to knowingly provide false 
information to a boarding officer about the vessel's 
destination, origin, ownership, registration, nationality, 
cargo, or crew.
  Subsection (c) clarifies that this new section 2237 does not 
limit in any way the preexisting authority of a Federal law 
enforcement officer to order an aircraft to land or a vessel to 
bring to. Subsection (d) allows a foreign nation to consent or 
waive objection to U.S. enforcement actions authorized in this 
section by radio, telephone, or similar oral or electronic 
means. Subsection (e) defines terms used in this section such 
as ``vessel subject to the jurisdiction of the United States'', 
``aircraft subject to the jurisdiction of the United States'', 
and ``bring to''.
  Subsection (f) establishes criminal penalties for the 
intentional violation of provisions in this new section. Such 
penalties provide for imprisonment for not more than 3 years 
and a fine. Subsection (g) states that an aircraft or vessel 
used in violation of this new section may be seized and 
forfeited and is also liable in rem for any fine or civil 
penalty imposed under this section.
  Section 408 was included in the bill during Committee 
consideration as an amendment by Senator McCain. It is intended 
to correct shortcomings in existing law that can complicate or 
undermine Federal law enforcement activities. Section 89 of 
title 14, U.S. Code, provides broad authority to the Coast 
Guard to board and examine vessels subject to the jurisdiction 
of the United States ``for the prevention, detection, and 
suppression of violations of laws of the United States''. 
However, current law lacks the enforcement provisions necessary 
to fully and effectively implement this authority. For 
instance, a civil penalty can be imposed for failure to bring a 
vessel to a stop upon the command of a customs officer (19 
U.S.C. 1581(d)), but the penalty only applies to vessels in 
places where the U.S. Customs Service is authorized to stop and 
board. A criminal and civil penalty can be imposed in 
conjunction with a failure to stop a vessel when hailed by a 
Federal law enforcement authority within 250 miles of the U.S. 
territorial sea (19 U.S.C. 1590(g)(8)), but only if contraband 
is later found on the vessel. Under section 637 of title 14, 
U.S. Code, the Coast Guard may fire into a vessel that fails to 
stop after receiving a warning, but an action of this severity 
is generally reserved for the most extreme circumstances. As in 
the case of vessels, Federal law enforcement agencies alsolack 
effective authority to compel suspicious aircraft entering the country 
or operating outside the United States (but otherwise subject to U.S. 
jurisdiction) to land.
  This section of the reported bill addresses these 
deficiencies by establishing a clear statutory prohibition, 
buttressed by criminal sanctions, against the knowing failure 
to obey a Federal law enforcement officer's order to land an 
aircraft or bring a vessel to. The authority to order an 
aircraft to land in subsection (a) is explicitly related to the 
enforcement of Federal drug and money laundering laws. The 
Committee intends that aircraft landings will be ordered under 
this section only if an authorized Federal law enforcement 
officer has reason to believe that the pilot, operator, or 
person in charge of the aircraft may be involved in the 
violation of these laws, and the FAA regulations to implement 
new section 2237 should reflect this intent.
  With regard to vessels, there are other areas of current law 
in which law enforcement authorities can be strengthened. 
Forcible obstruction of a Federal law enforcement officer is a 
crime under sections 111 and 113 of title 18, U.S. Code, but 
there is no general authority which establishes penalties, 
either criminal or civil, for non-forcible acts of obstruction 
during a Coast Guard boarding. In response, new section 2237 
provides for criminal sanctions and vessel forfeiture for these 
acts as a deterrent to behavior which can undermine the 
effectiveness and orderly conduct of lawful boarding 
operations.
  This section also addresses the serious problems that can 
result if the Coast Guard or other Federal law enforcement 
agency conducting a vessel boarding is given false information 
during the boarding about the vessel and its crew, cargo, and 
destination. For instance, false information about a vessel's 
nationality or destination can delay the determination as to 
whether the United States has jurisdiction over the vessel or 
hinder attempts to obtain consent from a foreign country for 
the United States to exercise jurisdiction. Such obstructive 
tactics can give smugglers the opportunity to destroy evidence 
or jettison contraband. Factual information concerning a 
vessel's destination, origin, ownership, cargo, or crew 
facilitates the ability of the boarding team to determine 
whether the vessel may be engaged in smuggling activities. This 
information is also important for the successful prosecution of 
smuggling cases. The establishment of criminal penalties for 
the provision of false information during boarding may help to 
deter this kind of obstruction.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                         TITLE 14.--COAST GUARD

                      Part I.--Regular Coast Guard

                    CHAPTER 5.--FUNCTIONS AND POWERS

Sec. 93. Commandant; general powers

  For the purpose of executing the duties and functions of the 
Coast Guard the Commandant may:
          (a) maintain water, land, and air patrols, and ice-
        breaking facilities;
          (b) establish and prescribe the purpose of, change 
        the location of, consolidate, discontinue, re-
        establish, maintain, operate, and repair Coast Guard 
        shore establishments;
          (c) assign vessels, aircraft, vehicles, aids to 
        navigation, equipment, appliances, and supplies to 
        Coast Guard districts and shore establishments, and 
        transfer any of the foregoing from one district or 
        shore establishment to another;
          (d) conduct experiments, investigate, or cause to be 
        investigated, plans, devices, and inventions relating 
        to the performance of any Coast Guard function and 
        cooperate and coordinate such activities with other 
        government agencies and with private agencies;
          (e) conduct any investigations or studies that may be 
        of assistance to the Coast Guard in the performance of 
        any of its powers, duties, or functions;
          (f) collect, publish, and distribute information 
        concerning Coast Guard operations;
          (g) conduct or make available to personnel of the 
        Coast Guard such specialized training and courses of 
        instruction, including correspondence courses, as may 
        be necessary or desirable for the good of the service;
          (h) design or cause to be designed, cause to be 
        constructed, accept as gift, or otherwise acquire 
        patrol boats and other small craft, equip, operate, 
        maintain, supply, and repair such patrol boats, other 
        small craft, aircraft, and vehicles, and subject to 
        applicable regulations under the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et 
        seq.) dispose of them;
          (i) acquire, accept as gift, maintain, repair, and 
        discontinue aids to navigation, appliances, equipment, 
        and supplies;
          (j) equip, operate, maintain, supply, and repair 
        Coast Guard districts and shore establishments;
          (k) [Repealed]
          (l) establish, equip, operate, and maintain shops, 
        depots, and yards for the manufacture and construction 
        of aids to navigation, equipment, apparatus, vessels, 
        vehicles, and aircraft not normally or economically 
        obtainable from private contractors, and for the 
        maintenance and repair of any property used by the 
        Coast Guard;
          (m) accept and utilize, in times of emergency in 
        order to save life or protect property, such voluntary 
        services as may be offered to the Coast Guard;
          (n) rent or lease, under such terms and conditions as 
        are deemed advisable, for a period not exceeding five 
        years, suchreal property under the control of the Coast 
Guard as may not be required for immediate use by the Coast Guard, the 
monies received from any such rental or lease, less amount of expenses 
incurred (exclusive of governmental personal services), to be deposited 
in the Treasury;
          (o) grant, under such terms and conditions as are 
        deemed advisable, permits, licenses, easements, and 
        rights-of-way over, across, in, and upon lands under 
        the control of the Coast Guard when in the public 
        interest and without substantially injuring the 
        interests of the United States in the property thereby 
        affected;
          (p) establish, install, abandon, re-establish, re-
        route, operate, maintain, repair, purchase, or lease 
        such telephone and telegraph lines and cables, together 
        with all facilities, apparatus, equipment, structures, 
        appurtenances, accessories, and supplies used or useful 
        in connection with the installation, operation, 
        maintenance, or repair of such lines and cables, 
        including telephones in residences leased or owned by 
        the Government of the United States when appropriate to 
        assure efficient response to extraordinary operational 
        contingencies of a limited duration, and acquire such 
        real property, rights-of-way, easements, or attachment 
        privileges as may be required for the installation, 
        operation, and maintenance of such lines, cables, and 
        equipment;
          (q) establish, install, abandon, re-establish, change 
        the location of, operate, maintain, and repair radio 
        transmitting and receiving stations;
          (r) provide medical and dental care for personnel 
        entitled thereto by law or regulation, including care 
        in private facilities;
          (s) accept, under terms and conditions the Commandant 
        establishes, the service of an individual ordered to 
        perform community service under the order of a Federal, 
        State, or municipal court;
          (t) notwithstanding any other law, enter into 
        cooperative agreements with States, local governments, 
        non-governmental organizations, and individuals, to 
        accept and utilize voluntary services for the 
        maintenance and improvement of natural and historic 
        resources on, or to benefit natural and historic 
        research on, Coast Guard facilities, subject to the 
        requirement that--
                  (1) the cooperative agreements shall each 
                provide for the parties to contribute funds or 
                services on a matching basis to defray the 
                costs of such programs, projects, and 
                activities under the agreement; and
                  (2) a person providing voluntary services 
                under this subsection shall not be considered a 
                Federal employee except for purposes of chapter 
                81 of title 5, United States Code, with respect 
                to compensation for work-related injuries, and 
                chapter 171 of title 28, United States Code, 
                with respect to tort claims;
          (u) enter into cooperative agreements with other 
        Government agencies and the National Academy of 
        Sciences; [and]
          (v) require that any member of the Coast Guard or 
        Coast Guard Reserve (including a cadet or an applicant 
        for appointment or enlistment to any of the foregoing 
        and any member of a uniformed service who is assigned 
        to the Coast Guard) request that all information 
        contained in the National Driver Register pertaining to 
        the individual, as described in section 30304(a) of 
        title 49, be made available to the Commandant under 
        section 30305(a) of title 49, may receive that 
        information, and upon receipt, shall make the 
        information available to the [individual.] individual;
          (w) provide for the honorary recognition of 
        individuals and organizations that significantly 
        contribute to Coast Guard programs, missions, or 
        operations, including but not limited to state and 
        local governments and commercial and nonprofit 
        organizations, and pay for, using any appropriations or 
        funds available to the Coast Guard, plaques, medals, 
        trophies, badges, and similar items to acknowledge such 
        contribution (including reasonable expenses of ceremony 
        and presentation); and
          (x) rent or lease, under such terms and conditions as 
        are deemed advisable, commercial vehicles to transport 
        the next of kin of eligible retired Coast Guard 
        military personnel to attend funeral services of the 
        service member at a national cemetery.

[Sec. 95. Civilian agents authorized to carry firearms

  [Under regulations prescribed by the Secretary with the 
approval of the Attorney General, civilian special agents of 
the Coast Guard may carry firearms or other appropriate weapons 
while assigned to official investigative or law enforcement 
duties.]

Sec. 95. Special agents of the Coast Guard Investigative Service law 
                    enforcement authority

  (a)(1) A special agent of the Coast Guard Investigative 
Service designated under subsection (b) has the following 
authority:
          (A) To carry firearms.
          (B) To execute and serve any warrant or other process 
        issued under the authority of the United States.
          (C) To make arrests without warrant for--
                  (i) any offense against the United States 
                committed in the agent's presence; or
                  (ii) any felony cognizable under the laws of 
                the United States if the agent has probable 
                cause to believe that the person to be arrested 
                has committed or is committing the felony.
  (2) The authorities provided in paragraph (1) shall be 
exercised only in the enforcement of statutes for which the 
Coast Guard has law enforcement authority, or in exigent 
circumstances.
  (b) The Commandant may designate to have the authority 
provided under subsection (a) any special agent of the Coast 
Guard Investigative Service whose duties include conducting, 
supervising, or coordinating investigation of criminal activity 
in programs and operations of the United States Coast Guard.
  (c) The authority provided under subsection (a) shall be 
exercised in accordance with guidelines prescribed by the 
Commandant and approved by the Attorney General and any other 
applicable guidelines prescribed by the Secretary of 
transportation or the Attorney General.

                         CHAPTER 11.--PERSONNEL

                                OFFICERS

         D. DISCHARGES; RETIREMENTS; REVOCATION OF COMMISSIONS

Sec. 286a. Regular warrant officers: severance pay

  (a) The severance pay of a regular warrant officer of the 
Coast Guard who is separated under section 580(a)(4)(A) of 
title 10 is computed by multiplying his years of active service 
that could be credited to him under section 511 of the Career 
Compensation Act of 1949, as amended, but not more than 12, by 
twice the monthly basic pay to which he is entitled at the time 
of separation.
  (b) The severance pay of a regular warrant officer of the 
Coast Guard who is separated under section 1166 of title 10 is 
computed by multiplying his years of active service that could 
be credited to him under section 511 of the Career Compensation 
Act of 1949, as amended, but not more than 12, by the monthly 
basic pay to which he is entitled at the time of [separation.] 
separation, unless the officer is separated with an other than 
honorable discharge and the Secretary of the Service in which 
the Coast Guard is operating determines that the conditions 
under which the officer is discharged or separated do not 
warrant payment of severance pay.
  (c) For the purposes of this section, a part of the year that 
is six months or more is counted as a whole year, and a part of 
a year that is less than six months is disregarded.
  (d) The acceptance of severance pay under this section does 
not deprive a person of any retirement benefits from the United 
States. However, there shall be deducted from each of his 
retirement payments so much thereof as is based on the service 
for which he has received severance pay under this section, 
until the total deductions equal the amount of such severance 
pay. [However, no person is entitled to severance pay under 
this section in an amount that is more than $ 15,000.]

                        E. SEPARATION FOR CAUSE

Sec. 327. Officers considered for removal; retirement or discharge; 
                    severance benefits

  (a) At any time during proceedings under section 322 or 323 
of this title, and before the removal of an officer, the 
Secretary may grant a request--
          (1) for voluntary retirement, if the officer is 
        otherwise qualified therefor; or
          (2) for honorable discharge with severance benefits 
        under subsection (b) in those cases arising under 
        clause (1) of section 321 of this title; or
          (3) for discharge with severance benefits under 
        subsection (b) in those cases arising under clause (2) 
        of section 321 of this title.
  (b) Each officer removed from active duty under section 326 
of this title shall--
          (1) if on the date of removal the officer is eligible 
        for voluntary retirement under any law, be retired in 
        the grade for which he would be eligible if retired at 
        his request; or
          (2) if on that date the officer is ineligible for 
        voluntary retirement under any law, be honorably 
        discharged in the grade then held with severance pay 
        computed by multiplying his years of active 
        commissioned service, but not more than twelve, by one 
        month's basic pay of that grade, in those cases arising 
        under clause (1) of section 321 of this title; or
          (3) if on that date the officer is ineligible for 
        voluntary retirement under any law, be discharged in 
        the grade then held with severance pay computed by 
        multiplying his years of active commissioned service, 
        but not more than twelve, by one month's basic pay of 
        that grade, in those cases arising under clause (2) of 
        section 321 of this [title.] title, unless the 
        Secretary determines that the conditions under which 
        the officer is discharged or separated do not warrant 
        payment of severance pay.

                      CHAPTER 17.--ADMINISTRATION

Sec. 641. Disposal of certain material

          (a) The Commandant subject to applicable regulations 
        under the Federal Property and Administrative Services 
        Act of 1949 may dispose of, with or without charge, [to 
        the Coast Guard Auxiliary, including any incorporated 
        unit thereof,] to the sea-scout service of the Boy 
        Scouts of America, and to any public body or private 
        organization not organized for profit having an 
        interest therein for historical or other special 
        reasons, such obsolete or other material as may not be 
        needed for the Coast Guard.
          (b) The Commandant may, under regulations prescribed 
        by the Secretary, sell apparatus or equipment 
        manufactured by or in use in the Coast Guard, which is 
        not readily procurable in the open market. The money 
        received from such sale shall be deposited in the 
        Treasury to the credit of the current appropriation 
        from which purchase of similar apparatus or equipment 
        is authorized.
          (c)(1) The Commandant may--
                  (A) provide for the sale of recyclable 
                materials that the Coast Guard holds;
                  (B) provide for the operation of recycling 
                programs at Coast Guard installations; and
                  (C) designate Coast Guard installations that 
                have qualified recycling programs for the 
                purposes of subsection (d)(2).
          (2) Recyclable materials shall be sold in accordance 
        with section 203 of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 484), 
        except that the Commandant may conduct sales of 
        materials for which the proceeds of sale will not 
        exceed $5,000 under regulations prescribed by the 
        Commandant.
  (d)(1) Proceeds from the sale of recyclable materials at a 
Coast Guard installation shall be credited to funds available 
for operations and maintenance at that installation in amounts 
sufficient to cover operations, maintenance, recycling 
equipment, and overhead costs for processing recyclable 
materials at the installation.
          (2) If, after funds are credited, a balance remains 
        available to a Coast Guard installation and the 
        installation has a qualified recycling program, not 
        more than 50 percent of that balance may be used at the 
        installation for projects for pollution abatement, 
        energy conservation, and occupational safety and health 
        activities. The cost of the project may not be greater 
        than 50 percent of the amount permissible for a minor 
        construction project.
          (3) The remaining balance available to a Coast Guard 
        installation may be transferred to the Coast Guard 
        Morale, Welfare, and Recreation Program.
  (e) If the balance available to the Coast Guard installation 
under this section at the end of a fiscal year is in excess of 
$200,000, the amount of that excess shall be deposited in the 
general fund of the Treasury as offsetting receipts of the 
Department in which the Coast Guard is operating and ascribed 
to Coast Guard activities.
  (f)(1) Notwithstanding any other law, the Commandant may 
directly transfer ownership of personal property of the Coast 
Guard to the Coast Guard Auxiliary (including any incorporated 
unit thereof), with or without charge, if the Commandant 
determines--
          (A) after consultation with the Administrator of 
        General Services, that the personal property is excess 
        to the needs of the Coast Guard but is suitable for use 
        by the Auxiliary in performing Coast Guard functions, 
        powers, duties, roles, missions, or operations as 
        authorized by law pursuant to section 822 of this 
        title; and
          (B) that such excess property will be used solely by 
        the Auxiliary for such purposes.
  (2) Upon transfer of personal property under paragraph (1), 
no appropriated funds shall be available for the operation, 
maintenance, repair, alteration, or replacement of such 
property, except as permitted by section 830 of this title.

Sec. 650. Coast Guard Supply Fund

  (a) A Coast Guard Supply Fund is authorized. The Secretary 
may prescribe regulations for designating the classification of 
materials to be stocked. In these regulations, whenever the 
fund is extended to include items not previously stocked, or 
spare parts obtained as part of a procurement under a different 
account of major items such as vessels or aircraft, whether or 
not such parts were previously stocked, the Secretary may 
authorize an increase in the existing capital of the fund by 
the value of such usable materials transferred thereto from 
Coast Guard inventories carried in other accounts. Except for 
the materials so transferred, the fund shall be charged with 
the cost of materials purchased or otherwise acquired. [The 
fund shall be credited with the value of materials consumed, 
issued for use, sold, or otherwise disposed of, such values to 
be determined on a basis that will approximately cover the cost 
thereof.] In these regulations, whenever the fund is reduced to 
delete items stocked, the Secretary may reduce the existing 
capital of the fund by the value of the materials transferred 
to other Coast Guard accounts. Except for the materials so 
transferred, the fund shall be credited with the value of 
materials consumed, issued for use, sold, or otherwise disposed 
of, such values to be determined on a basis that will 
approximately cover the cost thereof.
  (b) Obligations may, without regard to fiscal year 
limitations, be incurred against anticipated reimbursement to 
the Coast GuardSupply Fund in such amount and for such period, 
as the Secretary, with approval of the Director of the Office of 
Management and Budget, may determine to be necessary to maintain stock 
levels consistently with planned operations for the next year.

                TITLE 18.--CRIMES AND CRIMINAL PROCEDURE

                  CHAPTER 109.--SEARCHES AND SEIZURES

Sec. 2237. Sanctions for failure to land or to bring to; sanctions for 
                    obstruction of boarding and providing false 
                    information

  (a)(1) It shall be unlawful for the pilot, operator, or 
person in charge of an aircraft which has crossed the border of 
the United States, or an aircraft subject to the jurisdiction 
of the United States operating outside the United States, to 
knowingly fail to obey an order to land by an authorized 
Federal law enforcement officer who is enforcing the laws of 
the United States relating to controlled substances, as that 
term is defined in section 102(6) of the Controlled Substances 
Act (21 U.S.C. 802(6)), or relating to money laundering 
(sections 1956-57 of this title).
  (2) The Administrator of the Federal Aviation Administration, 
in consultation with the Commissioner of Customs and the 
Attorney General, shall prescribe regulations governing the 
means by, and circumstances under which a Federal law 
enforcement officer may communicate an order to land to a 
pilot, operator, or person in charge of an aircraft. Such 
regulations shall ensure that any such order is clearly 
communicated in accordance with applicable international 
standards. Further, such regulations shall establish guidelines 
based on observed conduct, prior information, or other 
circumstances for determining when an officer may use the 
authority granted under paragraph (1).
  (b)(1) It shall be unlawful for the master, operator, or 
person in charge of a vessel of the United States or a vessel 
subject to the jurisdiction of the United States, to knowingly 
fail to obey an order to bring to that vessel on being ordered 
to do so by an authorized Federal law enforcement officer.
  (2) It shall be unlawful for any person on board a vessel of 
the United States or a vessel subject to the jurisdiction of 
the United States to--
          (A) fail to comply with an order of an authorized 
        Federal law enforcement officer in connection with the 
        boarding of the vessel;
          (B) impede or obstruct a boarding or arrest or other 
        law enforcement action authorized by any Federal law; 
        or
          (C) provide information to a Federal law enforcement 
        officer during a boarding of a vessel regarding the 
        vessel's destination, origin, ownership, registration, 
        nationality, cargo, or crew, which that person knows is 
        false.
  (c) This section does not limit in any way the preexisting 
authority of a customs officer under section 581 of the Tariff 
Act of 1930 or any other provision of law enforced or 
administered by the Customs Service, or the preexisting 
authority of any Federal law enforcement officer under any law 
of the United States to order an aircraft to land or a vessel 
to bring to.
  (d) A foreign nation may consent or waive objection to the 
enforcement of United States law by the United States under 
this section by radio, telephone, or similar oral or electronic 
means. Consent or waiver may be proven by certification of the 
Secretary of State or the Secretary's designee.
  (e) For purposes of this section--
          (1) A `vessel of the United States' and a `vessel 
        subject to the jurisdiction of the United States' have 
        the meaning set forth for these terms in the Maritime 
        Drug Law Enforcement Act (46 App. U.S.C. 1903);
          (2) an aircraft `subject to the jurisdiction of the 
        United States' includes--
                  (A) an aircraft located over the United 
                States or the customs waters of the United 
                States;
                  (B) an aircraft located in the airspace of a 
                foreign nation, where that nation consents to 
                the enforcement of United States law by the 
                United States; and
                  (C) over the high seas, an aircraft without 
                nationality, an aircraft of United States 
                registry, or an aircraft registered in a 
                foreign nation that has consented or waived 
                objection to the enforcement of United States 
                law by the United States;
          (3) an aircraft `without nationality' includes--
                  (A) an aircraft aboard which the pilot, 
                operator, or person in charge makes a claim of 
                registry, which claim is denied by the nation 
                whose registry is claimed; and
                  (B) an aircraft aboard which the pilot, 
                operator, or person in charge fails, upon 
                request of an officer of the United States 
                empowered to enforce applicable provisions of 
                United States law, to make a claim of registry 
                for that aircraft.
          (4) the term `bring to' means to cause a vessel to 
        slow or come to a stop to facilitate a law enforcement 
        boarding by adjusting the course and speed of the 
        vessel to account for the weather conditions and sea 
        state; and
          (5) the term `Federal law enforcement officer' has 
        the meaning set forth in section 115 of this title.
  (f) Any person who intentionally violates the provisions of 
this section shall be subject to--
          (1) imprisonment for not more than 3 years; and
          (2) a fine as provided in this title.
  (g) An aircraft that is used in violation of this section may 
be seized and forfeited. A vessel that is used in violation of 
subsection (b)(1) or subsection (b)(2)(A) may be seized and 
forfeited. The laws relating to the seizure, summary and 
judicial forfeiture, and condemnation of property for violation 
of the customs laws, the disposition of such property or the 
proceeds from the sale thereof, the remission or mitigation of 
such forfeitures, and the compromise of claims, shall apply to 
seizures and forfeitures undertaken, or alleged to have been 
undertaken, under any of the provisions of this section; except 
that such duties as are imposed upon the customs officer or any 
other person with respect to the seizure and forfeiture of 
property under the customs laws shall be performed with respect 
to seizures and forfeitures of property under this section by 
such officers, agents, or other persons as may be authorized or 
designatedfor that purpose. A vessel or aircraft that is used 
in violation of this section is also liable in rem for any fine or 
civil penalty imposed under this section.

               TITLE 33.--NAVIGATION AND NAVIGABLE WATERS

            CHAPTER 25.--PORTS AND WATERWAYS SAFETY PROGRAM

Sec. 1222. Definitions

  As used in this Act, unless the context otherwise requires--
          (1) ``Marine environment'' means the navigable waters 
        of the United States and the land and resources therein 
        and thereunder; the waters and fishery resources of any 
        area over which the United States asserts exclusive 
        fishery management authority; the seabed and subsoil of 
        the Outer Continental Shelf of the United States, the 
        resources thereof and the waters superadjacent thereto; 
        and the recreational, economic, and scenic values of 
        such waters and resources.
          (2) ``Secretary'' means the Secretary of the 
        department in which the Coast Guard is operating.
          (3) ``State'' includes each of the several States of 
        the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Canal Zone, Guam, 
        American Samoa, the United States Virgin Islands, the 
        Trust Territories of the Pacific Islands, the 
        Commonwealth of the Northern Marianas, and any other 
        commonwealth, territory, or possession of the United 
        States.
          (4) ``United States'', when used in geographical 
        context, means all the States thereof.
          (5) ``Navigable 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.

               TITLE 33.--NAVIGATION AND NAVIGABLE WATERS

                       CHAPTER 40.--OIL POLLUTION

             OIL POLLUTION RESEARCH AND DEVELOPMENT PROGRAM

Sec. 2761. Oil Pollution Research and Development Program

  (a) Interagency Coordinating Committee on Oil Pollution 
Research.--
          (1) Establishment.--There is established an 
        Interagency Coordinating Committee on Oil Pollution 
        Research (hereinafter in this section referred to as 
        the ``Interagency Committee'').
          (2) Purposes.--The Interagency Committee shall 
        coordinate a comprehensive program of oil pollution 
        research, technology development, and demonstration 
        among the Federal agencies, in cooperation and 
        coordination with industry, universities, research 
        institutions, State governments, and other nations, as 
        appropriate, and shall foster cost-effective research 
        mechanisms, including the joint funding of research.
          (3) Membership.--The Interagency Committee shall 
        include representatives from the Department of Commerce 
        (including the National Oceanic and Atmospheric 
        Administration and the National Institute of Standards 
        and Technology), the Department of Energy, the 
        Department of the Interior (including the Minerals 
        Management Service and the United States Fish and 
        Wildlife Service), the Department of Transportation 
        (including the United States Coast Guard, the Maritime 
        Administration, and the Research and Special Projects 
        Administration), the Department of Defense (including 
        the Army Corps of Engineers and the Navy), the 
        Environmental Protection Agency, the National 
        Aeronautics and Space Administration, and the United 
        States Fire Administration in the Federal Emergency 
        Management Agency, as well as such other Federal 
        agencies as the President may designate.
A representative of the Department of Transportation shall 
serve as Chairman.
  (b) Oil Pollution Research and Technology Plan.--
          (1) Implementation plan.--Within 180 days after the 
        date of enactment of this Act, the Interagency 
        Committee shall submit to Congress a plan for the 
        implementation of the oil pollution research, 
        development, and demonstration program established 
        pursuant to subsection (c). The research plan shall--
                  (A) identify agency roles and 
                responsibilities;
                  (B) assess the current status of knowledge on 
                oil pollution prevention, response, and 
                mitigation technologies and effects of oil 
                pollution on the environment;
                  (C) identify significant oil pollution 
                research gaps including an assessment of major 
                technological deficiencies in responses to past 
                oil discharges;
                  (D) establish research priorities and goals 
                for oil pollution technology development 
                related to prevention, response, mitigation, 
                and environmental effects;
                  (E) estimate the resources needed to conduct 
                the oil pollution research and development 
                program established pursuant to subsection (c), 
                and timetables for completing research tasks; 
                and
                  (F) identify, in consultation with the 
                States, regional oil pollution research needs 
                and priorities for a coordinated, 
                multidisciplinary program of research at the 
                regional level.
          (2) Advice and guidance.--The Chairman, through the 
        Department of Transportation, shall contract with the 
        National Academy of Sciences to--
                  (A) provide advice and guidance in the 
                preparation and development of the research 
                plan; and
                  (B) assess the adequacy of the plan as 
                submitted, and submit a report to Congress on 
                the conclusions of such assessment.
        The National Institute of Standards and Technology 
        shall provide the Interagency Committee with advice and 
        guidance on issues relating to quality assurance and 
        standards measurements relating to its activities under 
        this section.
  (c) Oil Pollution Research and Development Program.--
          (1) Establishment.--The Interagency Committee shall 
        coordinate the establishment, by the agencies 
        represented on the Interagency Committee, of a program 
        for conducting oil pollution research and development, 
        as provided in this subsection.
          (2) Innovative oil pollution technology.--The program 
        established under this subsection shall provide for 
        research,development, and demonstration of new or 
improved technologies which are effective in preventing or mitigating 
oil discharges and which protect the environment, including--
                  (A) development of improved designs for 
                vessels and facilities, and improved 
                operational practices;
                  (B) research, development, and demonstration 
                of improved technologies to measure the ullage 
                of a vessel tank, prevent discharges from tank 
                vents, prevent discharges during lightering and 
                bunkering operations, contain discharges on the 
                deck of a vessel, prevent discharges through 
                the use of vacuums in tanks, and otherwise 
                contain discharges of oil from vessels and 
                facilities;
                  (C) research, development, and demonstration 
                of new or improved systems of mechanical, 
                chemical, biological, and other methods 
                (including the use of dispersants, solvents, 
                and bioremediation) for the recovery, removal, 
                and disposal of oil, including evaluation of 
                the environmental effects of the use of such 
                systems;
                  (D) research and training, in consultation 
                with the National Response Team, to improve 
                industry's and Government's ability to quickly 
                and effectively remove an oil discharge, 
                including the long-term use, as appropriate, of 
                the National Spill Control School in Corpus 
                Christi, Texas, and the Center for Marine 
                Training and Safety in Galveston, Texas;
                  (E) research to improve information systems 
                for decision-making, including the use of data 
                from coastal mapping, baseline data, and other 
                data related to the environmental effects of 
                oil discharges, and cleanup technologies;
                  (F) development of technologies and methods 
                to protect public health and safety from oil 
                discharges, including the population directly 
                exposed to an oil discharge;
                  (G) development of technologies, methods, and 
                standards for protecting removal personnel, 
                including training, adequate supervision, 
                protective equipment, maximum exposure limits, 
                and decontamination procedures;
                  (H) research and development of methods to 
                restore and rehabilitate natural resources 
                damaged by oil discharges;
                  (I) research to evaluate the relative 
                effectiveness and environmental impacts of 
                bioremediation technologies; and
                  (J) the demonstration of a satellite-based, 
                dependent surveillance vessel traffic system in 
                Narragansett Bay to evaluate the utility of 
                such system in reducing the risk of oil 
                discharges from vessel collisions and 
                groundings in confined waters.
          (3) Oil pollution technology evaluation.--The program 
        established under this subsection shall provide for oil 
        pollution prevention and mitigation technology 
        evaluation including--
                  (A) the evaluation and testing of 
                technologies developed independently of the 
                research and development program established 
                under this subsection;
                  (B) the establishment, where appropriate, of 
                standards and testing protocols traceable to 
                national standards to measure the performance 
                of oil pollution prevention or mitigation 
                technologies; and
                  (C) the use, where appropriate, of controlled 
                field testing to evaluate real-world 
                application of oil discharge prevention or 
                mitigation technologies.
          (4) Oil pollution effects research.--
                  (A) The Committee shall establish a research 
                program to monitor and evaluate the 
                environmental effects of oil discharges. Such 
                program shall include the following elements:
                          (i) The development of improved 
                        models and capabilities for predicting 
                        the environmental fate, transport, and 
                        effects of oil discharges.
                          (ii) The development of methods, 
                        including economic methods, to assess 
                        damages to natural resources resulting 
                        from oil discharges.
                          (iii) The identification of types of 
                        ecologically sensitive areas at 
                        particular risk to oil discharges and 
                        the preparation of scientific 
                        monitoring and evaluation plans, one 
                        for each of several types of ecological 
                        conditions, to be implemented in the 
                        event of major oil discharges in such 
                        areas.
                          (iv) The collection of environmental 
                        baseline data in ecologically sensitive 
                        areas at particular risk to oil 
                        discharges where such data are 
                        insufficient.
                  (B) The Department of Commerce in 
                consultation with the Environmental Protection 
                Agency shall monitor and scientifically 
                evaluate the long-term environmental effects of 
                oil discharges if--
                          (i) the amount of oil discharged 
                        exceeds 250,000 gallons;
                          (ii) the oil discharge has occurred 
                        on or after January 1, 1989; and
                          (iii) the Interagency Committee 
                        determines that a study of the long-
                        term environmental effects of the 
                        discharge would be of significant 
                        scientific value, especially for 
                        preventing or responding to future oil 
                        discharges.
                Areas for study may include the following sites 
                where oil discharges have occurred: the New 
                York/New Jersey Harbor area, where oil was 
                discharged by an Exxon underwater pipeline, the 
                T/B CIBRO SAVANNAH, and the M/V BT NAUTILUS; 
                Narragansett Bay where oil was discharged by 
                the WORLD PRODIGY; the Houston Ship Channel 
                where oil was discharged by the RACHEL B; the 
                Delaware River, where oil was discharged by the 
                PRESIDENTE RIVERA, and Huntington Beach, 
                California, where oil was discharged by the 
                AMERICAN TRADER.
                  (C) Research conducted under this paragraph 
                by, or through, the United States Fish and 
                Wildlife Service shall be directed and 
                coordinated by the National Wetland Research 
                Center.
          (5) Marine simulation research.--The program 
        established under this subsection shall include 
        research on the greater use and application of 
        geographic and vessel response simulation models, 
        including the development of additional data bases and 
        updating of existing data bases using, among others, 
        the resources of the National Maritime Research Center. 
        It shall include research and vessel simulations for--
                  (A) contingency plan evaluation and 
                amendment;
                  (B) removal and strike team training;
                  (C) tank vessel personnel training; and
                  (D) those geographic areas where there is a 
                significant likelihood of a major oil 
                discharge.
          (6) Demonstration projects.--The United States Coast 
        Guard, in conjunction with other such agencies in the 
        Department of Transportation as the Secretary of 
        Transportation may designate, shall conduct 4 port oil 
        pollution minimization demonstration projects, one each 
        with (A) the Port Authority of New York and New Jersey, 
        (B) the Ports of Los Angeles and Long Beach, 
        California, (C) the Port of New Orleans, Louisiana, and 
        (D) ports on the Great Lakes, for the purpose of 
        developing and demonstrating integrated port oil 
        pollution prevention and cleanup systems which utilize 
        the information and implement the improved practices 
        and technologies developed from the research, 
        development, and demonstration program established in 
        this section. Such systems shall utilize improved 
        technologies and management practices for reducing the 
        risk of oil discharges, including, as appropriate, 
        improved data access, computerized tracking of oil 
        shipments, improved vessel tracking and navigation 
        systems, advanced technology to monitor pipeline and 
        tank conditions, improved oil spill response 
        capability, improved capability to predict the flow and 
        effects of oil discharges in both the inner and outer 
        harbor areas for the purposes of making infrastructure 
        decisions, and such other activities necessary to 
        achieve the purposes of this section.
          (7) Simulated environmental testing.--Agencies 
        represented on the Interagency Committee shall ensure 
        the long-term use and operation of the Oil and 
        Hazardous Materials Simulated Environmental Test Tank 
        (OHMSETT) Research Center in New Jersey for oil 
        pollution technology testing and evaluations.
          (8) Regional research program.--
                  (A) Consistent with the research plan in 
                subsection (b), the Interagency Committee shall 
                coordinate a program of competitive grants to 
                universities or other research institutions, or 
                groups of universities or research 
                institutions, for the purposes of conducting a 
                coordinated research program related to the 
                regional aspects of oil pollution, such as 
                prevention, removal, mitigation, and the 
                effects of discharged oil on regional 
                environments. For the purposes of this 
                paragraph, a region means a Coast Guard 
                district as set out in part 3 of title 33, Code 
                of Federal Regulations (1989).
                  (B) The Interagency Committee shall 
                coordinate the publication by the agencies 
                represented on the InteragencyCommittee of a 
solicitation for grants under this subsection. The application shall be 
in such form and contain such information as may be required in the 
published solicitation. The applications shall be reviewed by the 
Interagency Committee, which shall make recommendations to the 
appropriate granting agency represented on the Interagency Committee 
for awarding the grant. The granting agency shall award the grants 
recommended by the Interagency Committee unless the agency decides not 
to award the grant due to budgetary or other compelling considerations 
and publishes its reasons for such a determination in the Federal 
Register. No grants may be made by any agency from any funds authorized 
for this paragraph unless such grant award has first been recommended 
by the Interagency Committee.
                  (C) Any university or other research 
                institution, or group of universities or 
                research institutions, may apply for a grant 
                for the regional research program established 
                by this paragraph. The applicant must be 
                located in the region, or in a State a part of 
                which is in the region, for which the project 
                is proposed as part of the regional research 
                program. With respect to a group application, 
                the entity or entities which will carry out the 
                substantial portion of the proposed research 
                must be located in the region, or in a State a 
                part of which is in the region, for which the 
                project is proposed as part of the regional 
                research program.
                  (D) The Interagency Committee shall make 
                recommendations on grants in such a manner as 
                to ensure an appropriate balance within a 
                region among the various aspects of oil 
                pollution research, including prevention, 
                removal, mitigation, and the effects of 
                discharged oil on regional environments. In 
                addition, the Interagency Committee shall make 
                recommendations for grants based on the 
                following criteria:
                          (i) There is available to the 
                        applicant for carrying out this 
                        paragraph demonstrated research 
                        resources.
                          (ii) The applicant demonstrates the 
                        capability of making a significant 
                        contribution to regional research 
                        needs.
                          (iii) The projects which the 
                        applicant proposes to carry out under 
                        the grant are consistent with the 
                        research plan under subsection 
                        (b)(1)(F) and would further the 
                        objectives of the research and 
                        development program established in this 
                        section.
                  (E) Grants provided under this paragraph 
                shall be for a period up to 3 years, subject to 
                annual review by the granting agency, and 
                provide not more than 80 percent of the costs 
                of the research activities carried out in 
                connection with the grant.
                  (F) No funds made available to carry out this 
                subsection may be used for the acquisition of 
                real property (including buildings) or 
                construction of any building.
                  (G) Nothing in this paragraph is intended to 
                alter or abridge the authority under existing 
                law of any Federal agency to make grants, or 
                enter into contracts or cooperative agreements, 
                using funds other than those authorized in this 
                Act for the purposes of carrying out this 
                paragraph.
          (9) Funding.--For each of the fiscal years 1991, 
        1992, 1993, 1994, and 1995, $6,000,000 of amounts in 
        the Fund shall be available to carry out the regional 
        research program in paragraph (8), such amounts to be 
        available in equal amounts for the regional research 
        program in each region; except that if the agencies 
        represented on the Interagency Committee determine that 
        regional research needs exist which cannot be addressed 
        within such funding limits, such agencies may use their 
        authority under paragraph (10) to make additional 
        grants to meet such needs. For the purposes of this 
        paragraph, the research program carried out by the 
        Prince William Sound Oil Spill Recovery Institute 
        established under section 5001, shall not be eligible 
        to receive grants under this paragraph until the 
        authorization for funding under section 5006(b) 
        expires.
          (10) Grants.--In carrying out the research and 
        development program established under this subsection, 
        the agencies represented on the Interagency Committee 
        may enter into contracts and cooperative agreements and 
        make grants to universities, research institutions, and 
        other persons. Such contracts, cooperative agreements, 
        and grants shall address research and technology 
        priorities set forth in the oil pollution research plan 
        under subsection (b).
          (11) In carrying out research under this section, the 
        Department of Transportation shall continue to utilize 
        the resources of the Research and Special Programs 
        Administration of the Department of Transportation, to 
        the maximum extent practicable.
  (d) International Cooperation.--In accordance with the 
research plan submitted under subsection (b), the Interagency 
Committee shall coordinate and cooperate with other nations and 
foreign research entities in conducting oil pollution research, 
development, and demonstration activities, including controlled 
field tests of oil discharges.
  [(e) Biennial Reports.--The Chairman of the Interagency 
Committee shall submit to Congress every 2 years on October 30 
a report on the activities carried out under this section in 
the preceding 2 fiscal years, and on activities proposed to be 
carried out under this section in the current 2 fiscal year 
period.]
  [(f)] (e) Funding.--Not to exceed $22,000,000 of amounts in 
the Fund shall be available annually to carry out this section 
except for subsection (c)(8). Of such sums--
          (1) funds authorized to be appropriated to carry out 
        the activities under subsection (c)(4) shall not exceed 
        $5,000,000 for fiscal year 1991 or $3,500,000 for any 
        subsequent fiscal year; and
          (2) not less than $3,000,000 shall be available for 
        carrying out the activities in subsection (c)(6) for 
        fiscal years 1992, 1993, 1994, and 1995.
All activities authorized in this section, including subsection 
(c)(8), are subject to appropriations.

                          TITLE 46.--SHIPPING

                    Subtitle II.--Vessels and Seamen

                      Part A.--General Provisions

                          CHAPTER 21.--GENERAL

Sec. 2101. General definitions

  In this subtitle--
          (1) ``associated equipment''--
                  (A) means--
                          (i) a system, accessory, component, 
                        or appurtenance of a recreational 
                        vessel; or
                          (ii) a marine safety article intended 
                        for use on board a recreational vessel; 
                        but
                  (B) does not include radio equipment.
          (2) ``barge'' means a non-self-propelled vessel.
          (3) ``Boundary Line'' means a line established under 
        section 2(b) of the Act of February 19, 1895 (33 U.S.C. 
        151).
          (3a) ``citizen of the United States'' means a 
        national of the United States as defined in section 
        101(a)(22) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(22)) or an individual citizen of the 
        Trust Territory of the Pacific Islands who is 
        exclusively domiciled in the Northern Mariana Islands 
        within the meaning of section 1005(e) of the Covenant 
        to establish a Commonwealth of the Northern Mariana 
        Islands in Political Union with the United States of 
        America (48 U.S.C. 1681 note).
          (4) ``Coast Guard'' means the organization 
        established and continued under section 1 of title 14.
          (5) ``commercial service'' includes any type of trade 
        or business involving the transportation of goods or 
        individuals, except service performed by a combatant 
        vessel.
          (5a) ``consideration'' means an economic benefit, 
        inducement, right, or profit including pecuniary 
        payment accruing to an individual, person, or entity, 
        but not including a voluntary sharing of the actual 
        expenses of the voyage, by monetary contribution or 
        donation of fuel, food, beverage, or other supplies.
          (6) ``consular officer'' means an officer or employee 
        of the United States Government designated under 
        regulations to grant visas.
          (7) ``crude oil'' means a liquid hydrocarbon mixture 
        occurring naturally in the earth, whether or not 
        treated to render it suitable for transportation, and 
        includes crude oil from which certain distillate 
        fractions may have been removed, and crude oil to which 
        certain distillate fractions may have been added.
          (8) ``crude oil tanker'' means a tanker engaged in 
        the trade of carrying crude oil.
          (8a) ``dangerous drug'' means a narcotic drug, a 
        controlled substance, or a controlled substance analog 
        (as defined in section 102 of the Comprehensive Drug 
        Abuse and Control Act of 1970 (21 U.S.C. 802)).
          (9) ``discharge'', when referring to a substance 
        discharged from a vessel, includes spilling, leaking, 
        pumping, pouring, emitting, emptying, or dumping, 
        however caused.
          (10) ``documented vessel'' means a vessel for which a 
        certificate of documentation has been issued under 
        chapter 121 of this title.
          (10a) ``Exclusive Economic Zone'' means the zone 
        established by Presidential Proclamation Numbered 5030, 
        dated March 10, 1983.
          (11) ``fish'' means finfish, mollusks, crustaceans, 
        and all other forms of marine animal and plant life, 
        except marine mammals and birds.
          (11a) ``fishing vessel'' means a vessel that 
        commercially engages in the catching, taking, or 
        harvesting of fish or an activity that can reasonably 
        be expected to result in the catching, taking, or 
        harvesting of fish.
          (11b) ``fish processing vessel'' means a vessel that 
        commercially prepares fish or fish products other than 
        by gutting, decapitating, gilling, skinning, shucking, 
        icing, freezing, or brine chilling.
          (11c) ``fish tender vessel'' means a vessel that 
        commercially supplies, stores, refrigerates, or 
        transports fish, fish products, or materials directly 
        related to fishing or the preparation of fish to or 
        from a fishing, fish processing, or fish tender vessel 
        or a fish processing facility.
          (12) ``foreign vessel'' means a vessel of foreign 
        registry or operated under the authority of a country 
        except the United States.
          (13) ``freight vessel'' means a motor vessel of more 
        than 15 gross tons as measured under section 14502 of 
        this title, or an alternate tonnage measured under 
        section 14302 of this title as prescribed by the 
        Secretary under section 14104 of this title that 
        carries freight for hire, except an oceanographic 
        research vessel or an offshore supply vessel.
          (13a) ``Great Lakes barge'' means a non-self-
        propelled vessel of at least 3,500 gross tons as 
        measured under section 14502 of this title, or an 
        alternate tonnage measured under section 14302 of this 
        title as prescribed by the Secretary under section 
        14104 of this title operating on the Great Lakes.
          (14) ``hazardous material'' means a liquid material 
        or substance that is--
                  (A) flammable or combustible;
                  (B) designated a hazardous substance under 
                section 311(b) of the Federal Water Pollution 
                Control Act (33 U.S.C. 1321); or
                  (C) designated a hazardous material under 
                section 5103(a) of title 49;
          (14a) ``major conversion'' means a conversion of a 
        vessel that--
                  (A) substantially changes the dimensions or 
                carrying capacity of the vessel;
                  (B) changes the type of the vessel;
                  (C) substantially prolongs the life of the 
                vessel; or
                  (D) otherwise so changes the vessel that it 
                is essentially a new vessel, as decided by the 
                Secretary.
          (15) ``marine environment'' means--  
                  (A) the navigable waters of the United States 
                and the land and resources in and under those 
                waters;
                  (B) the waters and fishery resources of an 
                area over which the United States asserts 
                exclusive fishery management authority;
                  (C) the seabed and subsoil of the outer 
                Continental Shelf of the United States, the 
                resources of the Shelf, and the waters 
                superjacent to the Shelf; and
                  (D) the recreational, economic, and scenic 
                values of the waters and resources referred to 
                in subclauses (A)-(C) of this clause.
          (15a) ``mobile offshore drilling unit'' means a 
        vessel capable of engaging in drilling operations for 
        the exploration or exploitation of subsea resources.
          (16) ``motor vessel'' means a vessel propelled by 
        machinery other than steam.
          (17) ``nautical school vessel'' means a vessel 
        operated by or in connection with a nautical school or 
        an educational institution under section 13 of the 
        Coast Guard Authorization Act of 1986.
          (17a) ``navigable 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.
          [(17a)] (17b) ``numbered vessel'' means a vessel for 
        which a number has been issued under chapter 123 of 
        this title.
          (18) ``oceanographic research vessel'' means a vessel 
        that the Secretary finds is being employed only in 
        instruction in oceanography or limnology, or both, or 
        only in oceanographic or limnological research, 
        including those studies about the sea such as seismic, 
        gravity meter, and magnetic exploration and other 
        marine geophysical or geological surveys, atmospheric 
        research, and biological research.
          (19) ``offshore supply vessel'' means a motor vessel 
        of more than 15 gross tons but less than 500 gross tons 
        as measured under section 14502 of this title, or an 
        alternate tonnage measured under section 14302 of this 
        title as prescribed by the Secretary under section 
        14104 of this title that regularly carries goods, 
        supplies, individuals in addition to the crew, or 
        equipment in support of exploration, exploitation, or 
        production of offshore mineral or energy resources.
          (20) ``oil'' includes oil of any type or in any form, 
        including petroleum, fuel oil, sludge, oil refuse, and 
        oil mixed with wastes except dredged spoil.
          (20a) ``oil spill response vessel'' means a vessel 
        that is designated in its certificate of inspection as 
        such a vessel, or that is adapted to respond to a 
        discharge of oil or a hazardous material.
          (20b) ``overall in length'' means--
                  (A) for a foreign vessel or a vessel engaged 
                on a foreign voyage, the greater of--
                          (i) 96 percent of the length on a 
                        waterline at 85 percent of the least 
                        molded depth measured from the top of 
                        the keel (or on a vessel designed with 
                        a rake of keel, on a waterline parallel 
                        to the designed waterline); or
                          (ii) the length from the fore side of 
                        the stem to the axis of the rudder 
                        stock on that waterline; and
                  (B) for any other vessel, the horizontal 
                distance of the hull between the foremost part 
                of the stem and the aftermost part of the 
                stern, excluding fittings and attachments.
          (21) ``passenger''--
                  (A) means an individual carried on the vessel 
                except--
                          (i) the owner or an individual 
                        representative of the owner or, in the 
                        case of a vessel under charter, an 
                        individual charterer or individual 
                        representative of the charterer;
                          (ii) the master; or
                          (iii) a member of the crew engaged in 
                        the business of the vessel who has not 
                        contributed consideration for carriage 
                        and who is paid for on board services;
                  (B) on an offshore supply vessel, means an 
                individual carried on the vessel except--
                          (i) an individual included in clause 
                        (i), (ii), or (iii) of subparagraph (A) 
                        of this paragraph;
                          (ii) an employee of the owner, or of 
                        a subcontractor to the owner, engaged 
                        in the business of the owner;
                          (iii) an employee of the charterer, 
                        or of a subcontractor to the charterer, 
                        engaged in the business of the 
                        charterer; or
                          (iv) an individual employed in a 
                        phase of exploration, exploitation, or 
                        production of offshore mineral or 
                        energy resources served by the vessel;
                  (C) on a fishing vessel, fish processing 
                vessel, or fish tender vessel, means an 
                individual carried on the vessel except--
                          (i) an individual included in clause 
                        (i), (ii), or (iii) of subparagraph (A) 
                        of this paragraph;
                          (ii) a managing operator;
                          (iii) an employee of the owner, or of 
                        a subcontractor to the owner, engaged 
                        in the business of the owner;
                          (iv) an employee of the charterer, or 
                        of a subcontractor to the charterer, 
                        engaged in the business of the 
                        charterer; or
                          (v) an observer or sea sampler on 
                        board the vessel pursuant to a 
                        requirement of State or Federal law; or
                  (D) on a sailing school vessel, means an 
                individual carried on the vessel except--
                          (i) an individual included in clause 
                        (i), (ii), or (iii) of subparagraph (A) 
                        of this paragraph;
                          (ii) an employee of the owner of the 
                        vessel engaged in the business of the 
                        owner, except when the vessel is 
                        operating under a demise charter;
                          (iii) an employee of the demise 
                        charterer of the vessel engaged in the 
                        business of the demise charterer; or
                          (iv) a sailing school instructor or 
                        sailing school student.
          (21a) ``passenger for hire'' means a passenger for 
        whom consideration is contributed as a condition of 
        carriage on the vessel, whether directly or indirectly 
        flowing to the owner,charterer, operator, agent, or any 
other person having an interest in the vessel.
          (22) ``passenger vessel'' means a vessel of at least 
        100 gross tons as measured under section 14502 of this 
        title, or an alternate tonnage measured under section 
        14302 of this title as prescribed by the Secretary 
        under section 14104 of this title--
                  (A) carrying more than 12 passengers, 
                including at least one passenger for hire;
                  (B) that is chartered and carrying more than 
                12 passengers; or
                  (C) that is a submersible vessel carrying at 
                least one passenger for hire.
          (23) ``product carrier'' means a tanker engaged in 
        the trade of carrying oil except crude oil.
          (24) ``public vessel'' means a vessel that--
                  (A) is owned, or demise chartered, and 
                operated by the United States Government or a 
                government of a foreign country; and
                  (B) is not engaged in commercial service.
          (25) ``recreational vessel'' means a vessel--
                  (A) being manufactured or operated primarily 
                for pleasure; or
                  (B) leased, rented, or chartered to another 
                for the latter's pleasure.
          (26) ``recreational vessel manufacturer'' means a 
        person engaged in the manufacturing, construction, 
        assembly, or importation of recreational vessels, 
        components, or associated equipment.
          (27) ``sailing instruction'' means teaching, 
        research, and practical experience in operating vessels 
        propelled primarily by sail and may include--
                  (A) any subject related to that operation and 
                to the sea, including seamanship, navigation, 
                oceanography, other nautical and marine 
                sciences, and maritime history and literature; 
                and
                  (B) only when in conjunction with a subject 
                referred to in subclause (A) of this clause, 
                instruction in mathematics and language arts 
                skills to sailing school students having 
                learning disabilities.
          (28) ``sailing school instructor'' means an 
        individual who is on board a sailing school vessel to 
        provide sailing instruction, but does not include an 
        operator or crewmember who is among those required to 
        be on board the vessel to meet a requirement 
        established under part F of this subtitle.
          (29) ``sailing school student'' means an individual 
        who is on board a sailing school vessel to receive 
        sailing instruction.
          (30) ``sailing school vessel'' means a vessel--
                  (A) that is less than 500 gross tons as 
                measured under section 14502 of this title, or 
                an alternate tonnage measured under section 
                14302 of this title as prescribed by the 
                Secretary under section 14104 of this title;
                  (B) carrying more than 6 individuals who are 
                sailing school instructors or sailing school 
                students;
                  (C) principally equipped for propulsion by 
                sail, even if the vessel has an auxiliary means 
                of propulsion; and
                  (D) owned or demise chartered, and operated 
                by an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1954 
                (26 U.S.C. 501(c)(3)) and exempt from tax under 
                section 501(a) of that Code, or by a State or 
                political subdivision of a State, during times 
                that the vessel is operated by the 
                organization, State, or political subdivision 
                only for sailing instruction.
          (31) ``scientific personnel'' means individuals on 
        board an oceanographic research vessel only to engage 
        in scientific research, or to instruct or receive 
        instruction in oceanography or limnology.
          (32) ``seagoing barge'' means a non-self-propelled 
        vessel of at least 100 gross tons as measured under 
        section 14502 of this title, or an alternate tonnage 
        measured under section 14302 of this title as 
        prescribed by the Secretary under section 14104 of this 
        title making voyages beyond the Boundary Line.
          (33) ``seagoing motor vessel'' means a motor vessel 
        of at least 300 gross tons as measured under section 
        14502 of this title, or an alternate tonnage measured 
        under section 14302 of this title as prescribed by the 
        Secretary under section 14104 of this title making 
        voyages beyond the Boundary Line.
          (34) ``Secretary'', except in part H, means the head 
        of the department in which the Coast Guard is 
        operating.
          (35) ``small passenger vessel'' means a vessel of 
        less than 100 gross tons as measured under section 
        14502 of this title, or an alternate tonnage measured 
        under section 14302 of this title as prescribed by the 
        Secretary under section 14104 of this title--
                  (A) carrying more than 6 passengers, 
                including at least one passenger for hire;
                  (B) that is chartered with the crew provided 
                or specified by the owner or the owner's 
                representative and carrying more than 6 
                passengers;
                  (C) that is chartered with no crew provided 
                or specified by the owner or the owner's 
                representative and carrying more than 12 
                passengers; or
                  (D) that is a submersible vessel carrying at 
                least one passenger for hire.
          (36) ``State'' means a State of the United States, 
        Guam, Puerto Rico, the Virgin Islands, American Samoa, 
        the District of Columbia, the Northern Mariana Islands, 
        and any other territory or possession of the United 
        States.
          (37) ``steam vessel'' means a vessel propelled in 
        whole or in part by steam, except a recreational vessel 
        of not more than 40 feet in length.
          (37a) ``submersible vessel'' means a vessel that is 
        capable of operating below the surface of the water.
          (38) ``tanker'' means a self-propelled tank vessel 
        constructed or adapted primarily to carry oil or 
        hazardous material in bulk in the cargo spaces.
          (39) ``tank vessel'' means a vessel that is 
        constructed or adapted to carry, or that carries, oil 
        or hazardous material in bulk as cargo or cargo 
        residue, and that--
                  (A) is a vessel of the United States;
                  (B) operates on the navigable waters of the 
                United States; or
                  (C) transfers oil or hazardous material in a 
                port or place subject to the jurisdiction of 
                the United States.
          (40) ``towing vessel'' means a commercial vessel 
        engaged in or intending to engage in the service of 
        pulling, pushing, or hauling along side, or any 
        combination of pulling, pushing, or hauling along side.
          (41) ``undocumented'' means not having and not 
        required to have a document issued under chapter 121 of 
        this title.
          (42) ``uninspected passenger vessel'' means an 
        uninspected vessel--
                  (A) of at least 100 gross tons as measured 
                under section 14502 of this title, or an 
                alternate tonnage measured under section 14302 
                of this title as prescribed by the Secretary 
                under section 14104 of this title--
                          (i) carrying not more than 12 
                        passengers, including at least one 
                        passenger for hire; or
                          (ii) that is chartered with the crew 
                        provided or specified by the owner or 
                        the owner's representative and carrying 
                        not more than 12 passengers; and
                  (B) of less than 100 gross tons as measured 
                under section 14502 of this title, or an 
                alternate tonnage measured under section 14302 
                of this title as prescribed by the Secretary 
                under section 14104 of this title--
                          (i) carrying not more than 6 
                        passengers, including at least one 
                        passenger for hire; or
                          (ii) that is chartered with the crew 
                        provided or specified by the owner or 
                        the owner's representative and carrying 
                        not more than 6 passengers.
          (43) ``uninspected vessel'' means a vessel not 
        subject to inspection under section 3301 of this title 
        that is not a recreational vessel.
          (44) ``United States'', when used in a geographic 
        sense, means the States of the United States, Guam, 
        Puerto Rico, the Virgin Islands, American Samoa, the 
        District of Columbia, the Northern Mariana Islands, and 
        any other territory or possession of the United States.
          (45) ``vessel'' has the same meaning given that term 
        in section 3 of title 1.
          (46) ``vessel of the United States'' means a vessel 
        documented or numbered under the laws of the United 
        States or titled under the law of a State.
          (47) ``vessel of war'' means a vessel--
                  (A) belonging to the armed forces of a 
                country;
                  (B) bearing the external marks distinguishing 
                vessels of war of that country;
                  (C) under the command of an officer 
                commissioned by the government of that country 
                and whose name appears in the appropriate 
                service list or its equivalent; and
                  (D) staffed by a crew under regular armed 
                forces discipline.

Sec. 2115. Civil penalty to enforce alcohol and dangerous drug testing

  Any person who fails to implement or conduct, or who 
otherwise fails to comply with the requirements prescribed by 
the Secretary for, chemical testing for dangerous drugs or for 
evidence of alcohol use, as prescribed under this subtitle or a 
regulation prescribed by the Secretary to carry out the 
provisions of this subtitle, is liable to the United States 
Government for a civil penalty of not more than [$1,000] $5,000 
for each violation. Each day of a continuing violation shall 
constitute a separate violation.

              CHAPTER 23.--OPERATION OF VESSELS GENERALLY

Sec. 2301. Application

  Except as provided in section 2306 of this title, this 
chapter applies to a vessel operated on waters subject to the 
jurisdiction of the United States (including the territorial 
sea of the United States as described in Presidential 
Proclamation 5928 of December 27, 1988) and, for a vessel owned 
in the United States, on the high seas.

Sec. 2302. Penalties for negligent operations

  (a) A person operating a vessel in a negligent manner that 
endangers the life, limb, or property of a person is liable to 
the United States Government for a civil penalty of not more 
than $1,000.
  (b) A person operating a vessel in a grossly negligent manner 
that endangers the life, limb, or property of a person commits 
a class A misdemeanor.
  (c) An individual who is under the influence of alcohol, or a 
dangerous drug in violation of a law of the United States when 
operating a vessel, as determined under standards prescribed by 
the Secretary by regulation--
          (1) is liable to the United States Government for a 
        civil penalty of not more than [$1,000 for a first 
        violation and not more than $5,000 for a subsequent 
        violation; or] $5,000; or
          (2) commits a class A misdemeanor.
  (d) For a penalty imposed under this section, the vessel also 
is liable in rem unless the vessel is--
          (1) owned by a State or a political subdivision of a 
        State;
          (2) operated principally for governmental purposes; 
        and
          (3) identified clearly as a vessel of that State or 
        subdivision.
  (e)(1) A vessel may not be used to transport cargoes 
sponsored by the United States Government if the vessel has 
been detained by the Secretary for violation of an 
international safety convention to which the United States is a 
party, and the Secretary has published notice of that 
detention.
  (2) The prohibition in paragraph (1) expires for a vessel 1 
year after the date of the detention on which the prohibition 
is based or upon the Secretary granting an appeal of the 
detention on which the prohibition is based.
  (3) The head of a Federal Agency may grant an exemption from 
the prohibition in paragraph (1) on a case by case basis if the 
owner of the vessel to be used for transport of the cargo 
sponsored by the United States Government can provide 
compelling evidence that the vessel is currently in compliance 
with applicable international safety conventions to which the 
United States is a party.
  (4) As used in this subsection, the term ``cargo sponsored by 
the United States Government'' means cargo for which a Federal 
agency contracts directly for shipping by water or for which 
(or the freight of which) a Federal agency provides financing, 
including financing by grant, loan, or loan guarantee, 
resulting in shipment of the cargo by water.

             Part B.--Inspection and Regulation of Vessels

               CHAPTER 41.--UNINSPECTED VESSELS GENERALLY

Sec. 4102. Safety equipment

  (a) Each uninspected vessel propelled by machinery shall be 
provided with the number, type, and size of fire extinguishers, 
capable of promptly and effectively extinguishing burning 
liquid fuel, that may be prescribed by regulation. The fire 
extinguishers shall be kept in condition for immediate and 
effective use and so placed as to be readily accessible.
  (b) Each uninspected vessel propelled by machinery shall 
carry at least one readily accessible life preserver or other 
lifesaving device, of the type prescribed by regulation, for 
each individual on board.
  (c) Each uninspected vessel shall have the carburetors of 
each engine of the vessel (except an outboard motor) using 
gasoline as fuel, equipped with an efficient flame arrestor, 
backfire trap, or other similar device prescribed by 
regulation.
  (d) Each uninspected vessel using a volatile liquid as fuel 
shall be provided with the means prescribed by regulation for 
properly and efficiently ventilating the bilges of the engine 
and fuel tank compartments, so as to remove any explosive or 
flammable gases.
  (e) Each manned uninspected vessel operating [on the high 
seas] beyond 3 nautical miles from the baselines from which the 
territorial sea of the United States is measured or beyond 
three nautical miles from the coastline of the Great Lakes 
shall be equipped with the number and type of alerting and 
locating equipment, including emergency position indicating 
radio beacons, prescribed by the Secretary.
  (f)(1) The Secretary, in consultation with the Towing Safety 
Advisory Committee and taking into consideration the 
characteristics, methods of operation, and nature of service of 
towing vessels, may require the installation, maintenance, and 
use of a fire suppression system or other measures to provide 
adequate assurance that fires on board towing vessels can be 
suppressed under reasonably foreseeable circumstances.
  (2) The Secretary shall require under paragraph (1) the use 
of a fire suppression system or other measures to provide 
adequate assurance that a fire on board a towing vessel that is 
towing a non-self-propelled tank vessel can be suppressed under 
reasonably foreseeable circumstances.

                   CHAPTER 43.--RECREATIONAL VESSELS

Sec. 4301. Application

  (a) This chapter applies to a recreational vessel and 
associated equipment carried in the vessel on waters subject to 
the jurisdiction of the United States (including the 
territorial sea of the United States as described in 
Presidential Proclamation 5928 of December 27, 1988) and, for a 
vessel owned in the United States, on the high seas.
  (b) Except when expressly otherwise provided, this chapter 
does not apply to a foreign vessel temporarily operating on 
waters subject to the jurisdiction of the United States.
  (c) Until there is a final judicial decision that they are 
navigable waters of the United States, the following waters 
lying entirely in New Hampshire are declared not to be waters 
subject to the jurisdiction of the United States within the 
meaning of this section: Lake Winnisquam, Lake Winnipesaukee, 
parts of the Merrimack River, and their tributary and 
connecting waters.

      CHAPTER 45.--UNINSPECTED COMMERCIAL FISHING INDUSTRY VESSELS

Sec. 4502. Safety standards

  (a) The Secretary shall prescribe regulations which require 
that each vessel to which this chapter applies shall be 
equipped with--
          (1) readily accessible fire extinguishers capable of 
        promptly and effectively extinguishing a flammable or 
        combustible liquid fuel fire;
          (2) at least one readily accessible life preserver or 
        other lifesaving device for each individual on board;
          (3) an efficient flame arrestor, backfire trap, or 
        other similar device on the carburetors of each inboard 
        engine which uses gasoline as fuel;
          (4) the means to properly and efficiently ventilate 
        enclosed spaces, including engine and fuel tank 
        compartments, so as to remove explosive or flammable 
        gases;
          (5) visual distress signals;
          (6) a buoyant apparatus, if the vessel is of a type 
        required by regulations prescribed by the Secretary to 
        be equipped with that apparatus;
          (7) alerting and locating equipment, including 
        emergency position indicating radio beacons, [on 
        vessels that operate on the high seas] beyond 3 
        nautical miles from the baselines from which the 
        territorial sea of the United States is measured or 
        beyond 3 nautical miles from the coastline of the Great 
        Lakes; and
          (8) a placard as required by regulations prescribed 
        under section 10603(b) of this title.
  (b)(1) In addition to the requirements of subsection (a) of 
this section, the Secretary shall prescribe regulations 
requiring the installation, maintenance, and use of the 
equipment in paragraph (2) of this subsection for documented 
vessels to which this chapter applies that--
          (A) operate beyond the Boundary Line;
          (B) operate with more than 16 individuals on board; 
        or
          (C) in the case of a fish tender vessel, engage in 
        the Aleutian trade.
  (2) The equipment to be required is as follows:
          (A) alerting and locating equipment, including 
        emergency position indicating radio beacons;
          (B) lifeboats or liferafts sufficient to accommodate 
        all individuals on board;
          (C) at least one readily accessible immersion suit 
        for each individual on board that vessel when operating 
        on the waters described in section 3102 of this title;
          (D) radio communications equipment sufficient to 
        effectively communicate with land-based search and 
        rescue facilities;
          (E) navigation equipment, including compasses, radar 
        reflectors, nautical charts, and anchors;
          (F) first aid equipment, including medicine chests; 
        and
          (G) other equipment required to minimize the risk of 
        injury to the crew during vessel operations, if the 
        Secretary determines that a risk of serious injury 
        exists that can be eliminated or mitigated by that 
        equipment.
  (c)(1) In addition to the requirements described in 
subsections (a) and (b) of this section, the Secretary may 
prescribe regulations establishing the standards in paragraph 
(2) of this subsection for vessels to which this chapter 
applies that--
          (A)(i) were built after December 31, 1988, or undergo 
        a major conversion completed after that date; and
          (ii) operate with more than 16 individuals on board; 
        or
          (B) in the case of a fish tender vessel, engage in 
        the Aleutian trade.
  (2) The standards shall be minimum safety standards, 
including standards relating to--
          (A) navigation equipment, including radars and 
        fathometers;
          (B) lifesaving equipment, immersion suits, signaling 
        devices, bilge pumps, bilge alarms, life rails, and 
        grab rails;
          (C) fire protection and firefighting equipment, 
        including fire alarms and portable and semiportable 
        fire extinguishing equipment;
          (D) use and installation of insulation material;
          (E) storage methods for flammable or combustible 
        material; and
          (F) fuel, ventilation, and electrical systems.
    (d)(1) The Secretary shall prescribe regulations for the 
operating stability of a vessel to which this chapter applies--
          (A) that was built after December 31, 1989; or
          (B) the physical characteristics of which are 
        substantially altered after December 31, 1989, in a 
        manner that affects the vessel's operating stability.
    (2) The Secretary may accept, as evidence of compliance 
with this subsection, a certification of compliance issued by 
the person providing insurance for the vessel or by another 
qualified person approved by the Secretary.
    (e) In prescribing regulations under this chapter, the 
Secretary--
          (1) shall consider the specialized nature and 
        economics of the operations and the character, design, 
        and construction of the vessel; and
          (2) may not require the alteration of a vessel or 
        associated equipment that was constructed or 
        manufactured before the effective date of the 
        regulation.
  (f) To ensure compliance with the requirements of this 
chapter, at least once every 2 years the Secretary shall 
examine--
          (1) a fish processing vessel; and
          (2) a fish tender vessel engaged in the Aleutian 
        trade.

Sec. 4506. Exemptions

  (a) The Secretary may exempt a vessel from any part of this 
chapter if, under regulations prescribed by the Secretary 
(including regulations on special operating conditions), the 
Secretary finds that--
          (1) good cause exists for granting an exemption; and
          [(2) the safety of the vessel and those on board will 
        not be adversely affected.]
          (2) is operating--
                  (A) in internal waters of the United States; 
                or
                  (B) within 3 nautical miles from the 
                baselines from which the territorial sea of the 
                United States is measured.''.
  (b) A vessel to which this chapter applies is exempt from 
section 4502(b)(2)(B) of this title if it--
          (1) is less than 36 feet in length; and
          (2) is not operating on the high seas.

                       Part D.--Marine Casualties

              CHAPTER 63.--INVESTIGATING MARINE CASUALTIES

Sec. 6305. Reports of investigations

  (a) The Secretary shall prescribe regulations about the form 
and manner of reports of investigations conducted under this 
part.
  (b) Reports of investigations conducted under this part shall 
be made available to the [public, except to the extent that 
they contain information related to the national security.] 
public. This subsection does not require the release of 
information described by section 552(b) of title 5 or protected 
from disclosure by another law of the United States.

     Part E.--Merchant Seamen Licenses, Certificates, and Documents

                 CHAPTER 77.--SUSPENSION AND REVOCATION

Sec. 7702. Administrative procedure

  (a) Sections 551-559 of title 5 apply to each hearing under 
this chapter about suspending or revoking a license, 
certificate of registry, or merchant mariner's document.
  (b) The individual whose license, certificate of registry, or 
merchant mariner's document has been suspended or revoked under 
this chapter may appeal, within 30 days, the suspension or 
revocation to the Secretary.
  (c)[(1)] The Secretary shall request a holder of a license, 
certificate of registry, or merchant mariner's document to make 
available to the Secretary, under section 206(b)(4) of the 
National Driver Register Act of 1982 (23 U.S.C. 401 note), all 
information contained in the National Driver Register related 
to an offense described in section 205(a)(3) (A) or (B) of that 
Act committed by the individual.
  [(2)] (d)(1) The Secretary shall require the testing of the 
holder of a license, certificate of registry, or merchant 
mariner's document for use of alcohol and dangerous drugs in 
violation of law or Federal regulation. The testing [may] shall 
include preemployment (with respect to dangerous drugs only), 
periodic, random, reasonable cause, and post accident testing.
          (2) The Secretary shall establish procedures to 
        ensure that after a serious marine incident occurs, 
        alcohol testing of crew members responsible for the 
        operation or other safety-sensitive functions of the 
        vessel or vessels involved in such incident is 
        conducted no later than two hours after the incident is 
        stabilized.
  [(d)(1)] (e)(1) The Secretary may temporarily, for not more 
than 45 days, suspend and take possession of the license, 
certificate of registry, or merchant mariner's document held by 
an individual if, when acting under the authority of that 
license, certificate, or document--
          (A) that individual performs a safety sensitive 
        function on a vessel, as determined by the Secretary; 
        and
          (B) there is probable cause to believe that the 
        individual--
                  (i) has performed the safety sensitive 
                function in violation of law or Federal 
                regulation regarding use of alcohol or a 
                dangerous drug;
                  (ii) has been convicted of an offense that 
                would prevent the issuance or renewal of the 
                license, certificate, or document; or
                  (iii) within the 3-year period preceding the 
                initiation of a suspension proceeding, has been 
                convicted of an offense described in section 
                205(a)(3) (A) or (B) of the National Driver 
                Register Act of 1982.
          (2) If a license, certificate, or document is 
        temporarily suspended under this section, an expedited 
        hearing under subsection (a) of this section shall be 
        held within 30 days after the temporary suspension.

                      Part F.--Manning of Vessels

                          CHAPTER 85.--PILOTS

Sec. 8502. Federal pilots required

  (a) Except as provided in subsections (g) and (i) of this 
section, a coastwise seagoing vessel shall be under the 
direction and control of a pilot licensed under section 7101 of 
this title if the vessel is--
          (1) not sailing on register;
          (2) underway;
          (3) [not on the high seas; and] not beyond 3 nautical 
        miles from the baselines from which the territorial sea 
        of the United States is measured; and
          (4) (A) propelled by machinery and subject to 
        inspection under part B of this subtitle; or
          (B) subject to inspection under chapter 37 of this 
        title.
  (b) The fees charged for pilotage by pilots required under 
this section may not be more than the customary or legally 
established rates in the States in which the pilotage is 
performed.
  (c) A State or political subdivision of a State may not 
impose on a pilot licensed under this subtitle an obligation to 
procure a State or other license, or adopt any other regulation 
that will impede the pilot in the performance of the pilot's 
duties under the laws of the United States.
  (d) A State or political subdivision of a State may not levy 
pilot charges on a vessel lawfully piloted by a pilot required 
under this section.
  (e) The owner, charterer, managing operator, agent, master, 
or individual in charge of a vessel operated in violation of 
this section or a regulation prescribed under this section is 
liable to the United States Government for a civil penalty of 
$10,000. The vessel also is liable in rem for the penalty.
  (f) An individual serving as a pilot without having a license 
required by this section or a regulation prescribed under this 
section is liable to the Government for a civil penalty of 
$10,000.
  (g)(1) The Secretary shall designate by regulation the areas 
of the approaches to and waters of Prince William Sound, 
Alaska, if any, on which a vessel subject to this section is 
not required to be under the direction and control of a pilot 
licensed under section 7101 of this title.
  (2) In any area of Prince William Sound, Alaska, where a 
vessel subject to this section is required to be under the 
direction and control of a pilot licensed under section 7101 of 
this title, the pilot may not be a member of the crew of that 
vessel and shall be a pilot licensed by the State of Alaska who 
is operating under a Federal license, when the vessel is 
navigating waters between 60 Degree(s) 49' North latitude and 
the Port of Valdez, Alaska.
  (h) The Secretary shall designate waters on which tankers 
over 1,600 gross tons subject to this section shall have on the 
bridge a master or mate licensed to direct and control the 
vessel under section 7101(c)(1) of this title who is separate 
and distinct from the pilot required under subsection (a) of 
this section.
  (i)(1) Except as provided in paragraph (2), a dredge to which 
this section would otherwise apply is exempt from the 
requirements of this section.
  (2) If the Secretary determines, after notice and comment, 
that the exemption under paragraph (1) creates a hazard to 
navigational safety in a specified area, the Secretary may 
require that a dredge exempted, by paragraph (1) which is 
operating in that area shall comply with this section.

Sec. 8503. Federal pilots authorized

  (a) The Secretary may require a pilot licensed under section 
7101 of this title on a self-propelled vessel when a pilot is 
not required by State law and the vessel is--
          (1) engaged in foreign commerce; and
          [(2) operating on the navigable waters of the United 
        States.]
          (2) operating--
                  (A) in internal waters of the United States; 
                or
                  (B) within 3 nautical miles from the 
                baselines from which the territorial sea of the 
                United States is measured.
  (b) A requirement prescribed under subsection (a) of this 
section is terminated when the State having jurisdiction over 
the area involved--
          (1) establishes a requirement for a State licensed 
        pilot; and
          (2) notifies the Secretary of that fact.
  (c) For the Saint Lawrence Seaway, the Secretary may not 
delegate the authority under this section to an agency except 
the Saint Lawrence Seaway Development Corporation.
  (d) A person violating this section or a regulation 
prescribed under this section is liable to the United States 
Government for a civil penalty of not more than $25,000. Each 
day of a continuing violation is a separate violation. The 
vessel also is liable in rem for the penalty.
  (e) A person that knowingly violates this section or a 
regulation prescribed under this section commits a class D 
felony.

                    Subtitle II.--Vessels and Seamen

                   Part H.--Identification of Vessels

                 CHAPTER 121.--DOCUMENTATION OF VESSELS

Sec. 12102. Vessels eligible for documentation

  (a) A vessel of at least 5 net tons that is not registered 
under the laws of a foreign country [or is not titled in a 
State] is eligible for documentation if the vessel is owned 
by--
          (1) an individual who is a citizen of the United 
        States;
          (2) an association, trust, joint venture, or other 
        entity--
                  (A) all of whose members are citizens of the 
                United States; and
                  (B) that is capable of holding title to a 
                vessel under the laws of the United States or 
                of a State;
          (3) a partnership whose general partners are citizens 
        of the United States, and the controlling interest in 
        the partnership is owned by citizens of the United 
        States;
          (4) a corporation established under the laws of the 
        United States or of a State, whose [president or other] 
        chief executive [officer] officer, by whatever title, 
        and chairman of its board of directors are citizens of 
        the United States and no more of its directors are 
        noncitizens than a minority of the number necessary to 
        constitute a quorum;
          (5) the United States Government; or
          (6) the government of a State.
  (b) A vessel is eligible for documentation only if it has 
been measured under part J of this subtitle. However, the 
Secretary of Transportation may issue a temporary certificate 
of documentation for a vessel before it is measured.
  (c)(1) A vessel owned by a corporation is not eligible for a 
fishery endorsement under section 12108 of this title unless 
the controlling interest (as measured by a majority of voting 
shares in that corporation) is owned by individuals who are 
citizens of the United States. However, if the corporation is 
owned in whole or in part by other United States corporations, 
the controlling interest in those corporations, in the 
aggregate, must be owned by individuals who are citizens of the 
United States.
  (2) The Secretary shall apply the restrictions on controlling 
interest in section 2(b) of the Shipping Act, 1916 (46 App. 
U.S.C. 802(b)) when applying this subsection.
  (d)(1) For the issuance of a certificate of documentation 
with only a registry endorsement, subsection (a)(2)(A) of this 
section does not apply to a beneficiary of a trust that is 
qualified under paragraph (2) of this subsection if the vessel 
is subject to a charter to a citizen of the United States.
  (2) (A) Subject to subparagraph (B) of this paragraph, a 
trust is qualified under this paragraph with respect to a 
vessel only if--
          (i) each of the trustees is a citizen of the United 
        States; and
          (ii) the application for documentation of the vessel 
        includes the affidavit of each trustee stating that the 
        trustee is not aware of any reason involving a 
        beneficiary of the trust that is not a citizen of the 
        United States, or involving any other person that is 
        not a citizen of the United States, as a result of 
        which the beneficiary or other person would hold more 
        than 25 percent of the aggregate power to influence or 
        limit the exercise of the authority of the trustee with 
        respect to matters involving any ownership or operation 
        of the vessel that may adversely affect the interests 
        of the United States.
  (B) If any person that is not a citizen of the United States 
has authority to direct or participate in directing a trustee 
for a trust in matters involving any ownership or operation of 
the vessel that may adversely affect the interests of the 
United States or in removing a trustee for a trust without 
cause, either directly or indirectly through the control of 
another person, the trust is not qualified under this paragraph 
unless the trust instrument provides that persons who are not 
citizens of the United States may not hold more than 25 percent 
of the aggregate authority to so direct or remove a trustee.
  (3) Paragraph (2) of this subsection shall not be considered 
to prohibit a person who is not a citizen of the United States 
from holding more than 25 percent of the beneficial interest in 
a trust.
  (4) If a person chartering a vessel from a trust that is 
qualified under paragraph (2) of this subsection is a citizen 
of the United States under section 2 of the Shipping Act, 1916 
(46 App. U.S.C. 802), then the vessel is deemed to be owned by 
a citizen of the United States for purposes of that section and 
related laws, except for subtitle B of title VI of the Merchant 
Marine Act, 1936.

              CHAPTER 123.--NUMBERING UNDOCUMENTED VESSELS

Sec. 12301. Numbering vessels

  (a) An undocumented vessel equipped with propulsion machinery 
of any kind shall have a number issued by the proper issuing 
authority in the State in which the vessel principally is 
operated.
  (b) The Secretary shall require an undocumented barge more 
than 100 gross tons operating on the navigable waters of the 
United States to be numbered.
  (c) A documented vessel shall not be titled by a State or 
required to display numbers under this chapter, and any 
certificate of title issued by a State for a documented vessel 
shall be surrendered in accordance with regulations prescribed 
by the Secretary.
  (d) The Secretary may approve the surrender under subsection 
(a) of a certificate of title covered by a preferred mortgage 
under section 31322(d) of this title only if the mortgagee 
consents.

        CHAPTER 313.--COMMERCIAL INSTRUMENTS AND MARITIME LIENS

Sec. 31322. Preferred mortgages

  (a) A preferred mortgage is a mortgage, whenever made, that--
          (1) includes the whole of the vessel;
          (2) is filed in substantial compliance with section 
        31321 of this title; and
          (3) (A) covers a documented vessel; or
          (B) covers a vessel for which an application for 
        documentation is filed that is in substantial 
        compliance with the requirements of chapter 121 of this 
        chapter and the regulations prescribed under that 
        chapter.
  [(b) A preferred mortgage filed or recorded under this 
chapter may have any rate of interest that the parties to the 
mortgage agree to.]
  (b) Any indebtedness secured by a preferred mortgage that is 
filed or recorded under this chapter, or that is subject to a 
mortgage, security agreement, or instruments granting a 
security interest that is deemed to be a preferred mortgage 
under subsection (d) of this section, may have any rate of 
interest to which the parties agree.
  (c)(1) If a preferred mortgage includes more than one vessel 
or property that is not a vessel, the mortgage may provide for 
the separate discharge of each vessel and all property not a 
vessel by the payment of a part of the mortgage indebtedness.
  (2) If a vessel covered by a preferred mortgage that includes 
more than one vessel or property that is not a vessel is to be 
sold on the order of a district court in a civil action in rem, 
and the mortgage does not provide for separate discharge as 
provided under paragraph (1) of this subsection--
          (A) the mortgage constitutes a lien on that vessel in 
        the full amount of the outstanding mortgage 
        indebtedness; and
          (B) an allocation of mortgage indebtedness for 
        purposes of separate discharge may not be made among 
        the vessel and other property covered by the mortgage.
  (d)(1) A [mortgage or instrument] mortgage, security 
agreement, or instrument granting a security interest perfected 
under State law covering the whole of a vessel titled in a 
State is deemed to be a preferred mortgage if--
          (A) the Secretary certifies that the State titling 
        system complies with the Secretary's guidelines for a 
        titling system under section 13106(b)(8) of this title; 
        and
          (B) information on the vessel covered by the 
        [mortgage or instrument] mortgage, security agreement, 
        or instrument is made available to the Secretary under 
        chapter 125 of this title.
  (2) This subsection applies to [mortgages or instruments] 
mortgages, security agreements, or instruments covering vessels 
titled in a State after--
          (A) the Secretary's certification under paragraph 
        (1)(A) of this subsection; and
          (B) the State begins making information available to 
        the Secretary under chapter 125 of this title.
  [(3) A preferred mortgage under this subsection continues to 
be a preferred mortgage if the vessel is no longer titled in 
the State where the mortgage was made.]
  (3) A preferred mortgage under this subsection continues to 
be a preferred mortgage even if the vessel is no longer titled 
in the State where the mortgage, security agreement, or 
instrument granting a security interest became a preferred 
mortgage under this subsection.
  (e) If a vessel is already covered by a preferred mortgage 
when an application for titling or documentation is filed--
          (1) the status of the preferred mortgage covering the 
        vessel to be titled in the State is determined by the 
        law of the jurisdiction where the vessel is currently 
        titled or documented; and
          (2) the status of the preferred mortgage covering the 
        vessel to be documented under chapter 121 is determined 
        by subsection (a) of this section.

Sec. 31325. Preferred mortgage liens and enforcement

  (a) A preferred mortgage is a lien on the mortgaged vessel in 
the amount of the outstanding mortgage indebtedness secured by 
the vessel.
  (b) On default of any term of the preferred mortgage, the 
mortgagee may--
          (1) enforce the preferred mortgage lien in a civil 
        action in rem for a documented vessel, a vessel to be 
        documented under chapter 121 of this title, a vessel 
        titled in a State, or a foreign vessel;
          (2) enforce a claim for the outstanding indebtedness 
        secured by the mortgaged vessel in--
                  (A) a civil action in personam in admiralty 
                against the mortgagor, maker, comaker, or 
                guarantor for the amount of the outstanding 
                indebtedness or any deficiency in full payment 
                of that indebtedness; and
                  (B) a civil action against the mortgagor, 
                maker, comaker, or guarantor for the amount of 
                the outstanding indebtedness or any deficiency 
                in full payment of that indebtedness; and
          (3) enforce the preferred mortgage lien or a claim 
        for the outstanding indebtedness secured by the 
        mortgaged vessel, or both, by exercising any other 
        remedy (including an extrajudicial remedy) against a 
        documented vessel, a vessel for which an application 
        for documentation is filed under chapter 121 of this 
        title, a vessel titled in a State, a foreign vessel, or 
        a mortgagor, maker, comaker, or guarantor for the 
        amount of the outstanding indebtedness or any 
        deficiency in full payment of that indebtedness, if--
                  (A) the remedy is allowed under applicable 
                law; and
                  (B) the exercise of the remedy will not 
                result in a violation of section 9 or 37 of the 
                Shipping Act, 1916 (46 App. U.S.C. 808, 835).
  (c) The district courts have original jurisdiction of a civil 
action brought under subsection (b)(1) or (2) of this section. 
However, for a documented vessel, a vessel to be documented 
under chapter 121 of this title, a vessel titled in a State, or 
a foreign vessel, this jurisdiction is exclusive of the courts 
of the States for a civil action brought under subsection 
(b)(1) of this section.
  (d)(1) Actual notice of a civil action brought under 
subsection (b)(1) of this section, or to enforce a maritime 
lien, must be given in the manner directed by the court to--
          (A) the master or individual in charge of the vessel;
          (B) any person that recorded under section 31343(a) 
        or (d) of this title a notice of a claim of an 
        undischarged lien on the vessel; and
          (C) a mortgagee of a mortgage filed or recorded under 
        section 31321 of this title that is an undischarged 
        mortgage on the vessel.
  (2) Notice under paragraph (1) of this subsection is not 
required if, after search satisfactory to the court, the person 
entitled to the notice has not been found in the United States.
  (3) Failure to give notice required by this subsection does 
not affect the jurisdiction of the court in which the civil 
action is brought. However, unless notice is not required under 
paragraph (2) of this subsection, the party required to give 
notice is liable to the person not notified for damages in the 
amount of that person's interest in the vessel terminated by 
the action brought under subsection (b)(1) of this section. A 
civil action may be brought to recover the amount of the 
terminated interest. The district courts have original 
jurisdiction of the action, regardless of the amount in 
controversy or the citizenship of the parties. If the plaintiff 
prevails, the court may award costs and attorney fees to the 
plaintiff.
  (e) In a civil action brought under subsection (b)(1) of this 
section--
          (1) the court may appoint a receiver and authorize 
        the receiver to operate the mortgaged vessel and shall 
        retain in rem jurisdiction over the vessel even if the 
        receiver operates the vessel outside the district in 
        which the court is located; and
          (2) when directed by the court, a United States 
        marshal may take possession of a mortgaged vessel even 
        if the vessel is in the possession or under the control 
        of a person claiming a possessory common law lien.
  (f)(1) Before title to the documented vessel or vessel for 
which an application for documentation is filed under chapter 
121 is transferred by an extrajudicial remedy, the person 
exercising the remedy shall give notice of the proposed 
transfer to the Secretary, to the mortgagee of any mortgage on 
the vessel filed in substantial compliance with section 31321 
of this title before notice of the proposed transfer is given 
to the Secretary, and to any person that recorded a notice of a 
claim of an undischarged lien on the vessel under section 
31343(a) or (d) of this title before notice of the proposed 
transfer is given to the Secretary.
  (2) Failure to give notice as required by this subsection 
shall not affect the transfer of title to a vessel. However, 
the rights of any holder of a maritime lien or a preferred 
mortgage on the vessel shall not be affected by a transfer of 
title by an extrajudicial remedy exercised under this section, 
regardless of whether notice is required by this subsection or 
given.
  (3) The Secretary shall prescribe regulations establishing 
the time and manner for providing notice under this subsection.

                     TITLE 46.--APPENDIX; SHIPPING

                    CHAPTER 23.--SHIPPING ACT, 1916

Sec. 802. Corporation, partnership, or association as citizen

  (a) Ownership of Controlling Interest.--Within the meaning of 
this Act no corporation, partnership, or association shall be 
deemed a citizen of the United States unless the controlling 
interest therein is owned by citizens of the United States, 
and, in the case of a corporation, unless its [president or 
other] chief executive [officer] officer, by whatever title, 
and the chairman of its board of directors are citizens of the 
United States and unless no more of its directors than a 
minority of the number necessary to constitute a quorum are 
noncitizens and the corporation itself is organized under the 
laws of the United States or of a State, Territory, District, 
or possession thereof, but in the case of a corporation, 
association, or partnership operating any vessel in the 
coastwise trade the amount of interest required to be owned by 
citizens of the United States shall be 75 per centum.
  (b) Determination of Controlling Interest.--The controlling 
interest in a corporation shall not be deemed to be owned by 
citizens of the United States (a) if the title to a majority of 
the stock thereof is not vested in such citizens free from any 
trust or fiduciary obligation in favor of any person not a 
citizen of the United States; or (b) if the majority of the 
voting power in such corporation is not vested in citizens of 
the United States; or (c) if through any contract or 
understanding it is so arranged that the majority of the voting 
power may be exercised, directly or indirectly, in behalf of 
any person who is not a citizen of the United States; or, (d) 
if by any other means whatsoever control of the corporation is 
conferred upon or permitted to be exercised by any person who 
is not a citizen of the United States.
  (c) Determination of Seventy-five Per Centum of Interest.--
Seventy-five per centum of the interest in a corporation shall 
not be deemed to be owned by citizens of the United States (a) 
if the title to 75 per centum of its stock is not vested in 
such citizens free from any trust or fiduciary obligation in 
favor of any person not a citizen of the United States; or (b) 
if 75 per centum of the voting power in such corporation is not 
vested in citizens of the United States; or (c) if, through any 
contract or understanding, it is so arranged that more than 25 
per centum of the voting power in such corporation may be 
exercised, directly or indirectly, in behalf of any person who 
is not a citizen of the United States; or (d) if by any other 
means whatsoever control of any interest in the corporation in 
excess of 25 per centum is conferred upon or permitted to be 
exercised by any person who is not a citizen of the United 
States.