To amend the Merchant Marine Act, 1920, to allow transportation of certain agricultural goods and livestock in Hawaiian noncontiguous trade on foreign-flag vessels, and for other purposes.

July 24, 2003

Mr. CASE introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To amend the Merchant Marine Act, 1920, to allow transportation of certain agricultural goods and livestock in Hawaiian noncontiguous trade on foreign-flag vessels, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Hawaii Agriculture/Livestock Shipping Open Market Act of 2003'.

SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE.

(a) IN GENERAL- Section 27 of the Merchant Marine Act, 1929 (46 App. U.S.C. 883) is amended by inserting `(a) IN GENERAL- ' before the first sentence, and by adding at the end the following:

`(b) NONCONTIGUOUS TRADE EXEMPTION- Subsection (a) shall not apply with respect to transportation in Hawaiian noncontiguous trade of merchandise that is a forest product (as that term is defined in section 3(11) of the Shipping Act of 1984 (46 App. U.S.C. 1702(11))), agricultural products (as that term is defined in section 101(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(1))), or livestock (as that term is defined in section 2(4) of the Packers and Stockyards Act, 1921 (7 U.S.C. 182(4))), on a foreign qualified freight vessel for which the Secretary of Transportation has issued a certificate of documentation.

`(c) DEFINITIONS- In this section:

`(1) FOREIGN QUALIFIED FREIGHT VESSEL- The term `foreign qualified freight vessel' means a freight vessel (as that term is defined in section 2101 of title 46, United States Code) of not less than 1,000 gross tons that--

`(A) was not built in the United States (or if rebuilt, not rebuilt in the United States);

`(B) is registered in a foreign country; and

`(C) employs United States citizens to the extent required of vessels registered under section 12102 of this title.

`(2) HAWAIIAN NONCONTIGUOUS TRADE- The term `Hawaiian noncontiguous trade' means--

`(A) trade between a point in the contiguous 48 States or Alaska and a point in Hawaii; or

`(B) trade between any point in Hawaii and any other point in Hawaii.'.

(b) COASTWISE ENDORSEMENTS- 12106(b) of title 46, United States Code, is amended--

(1) by inserting `(1)' after `(b)';

(2) by inserting `to paragraph (2) and' after `Subject'; and

(3) by adding at the end the following:

`(2)(A) Paragraph (1) shall not apply with respect to a foreign qualified freight vessel used for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), for which the Secretary of Transportation has issued a certificate of documentation.

`(B) In subparagraph (A) the term `foreign qualified freight vessel' has the meaning given that term in section 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).'.

(c) FOREIGN TRANSFER- Section 9(c) of the Shipping Act, 1916 (46 App. U.S.C. 808) is amended by inserting `(1)' before the first sentence, and by adding at the end the following:

`(2)(A) Notwithstanding paragraph (1), a foreign qualified freight vessel for which the Secretary has issued a certificate of documentation after the date of enactment of this Act and that is used solely for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)) may be placed under foreign registry without the approval of the Secretary at any time after that vessel is issued a certificate of documentation. At such time as that vessel is placed under foreign registry, the Secretary shall revoke the certificate of documentation issued by the Secretary.

`(B) In subparagraph (A) the term `foreign qualified freight vessel' has the meaning given that term in section 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).'.

SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS.

(a) CITIZENSHIP OF CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS- Section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802) is amended by adding at the end the following:

`(d)(1) The following provisions of this section shall not apply to a foreign qualified freight vessel used for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)):

`(A) The text of subparagraph after `possession thereof'.

`(B) subsection (c).

`(2) In paragraph (1) the term `foreign qualified freight vessel' has the meaning given that term in section 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).'.

(b) APPROVAL OF TRANSFER OF REGISTRY OR OPERATION UNDER AUTHORITY OF A FOREIGN COUNTRY OR FOR SCRAPPING IN A FOREIGN COUNTRY; PENALTIES- Section 9 of the Shipping Act, 1916 (46 U.S.C. App. 808) is amended by adding at the end the following:

`(e)(1) In lieu of the penalty under subsection (d), a person that commits an act described in paragraph (2) in violation of this section is liable to the United States Government for a civil penalty of not more than $10,000 for each violation.

`(2) The acts referred to in paragraph (1) are the following:

`(A) Charter, sell, or transfer a foreign qualified freight vessel used for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), or interest in or control of such a vessel.

`(B) Place under foreign registry a foreign qualified freight vessel used for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), that is documented in the United States.

`(C) Operate under the authority of a foreign country a foreign qualified freight vessel used for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)).

`(f) To promote the transfer of foreign vessels to be documented under chapter 121 of title 46, United States Code, for use for transportation referred to in section 27(b) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(b)), the Secretary may grant approval under subsection (c) with respect to such a vessel before the date the vessel is documented.'.

`(g) In subsections (e) and (f), the term `foreign qualified freight vessel' has the meaning given that term in section 27(c) of the Merchant Marine Act, 1920 (46 App. U.S.C. 883(c)).'.

SEC. 4. LABOR PROVISIONS.

(a) LIABILITY FOR INJURY OR DEATH OF MASTER OR CREW MEMBER- Section 20(a) of the Act of March 4, 1915 (38 Stat. 1185, chapter 153; 46 U.S.C. App. 688(a)), is amended--

(1) by inserting `(1)' after `(a)';

(2) by adding at the end of paragraph (1) (as designated under paragraph (1) of this subsection) the following new sentence: `In an action brought under this subsection against a defendant employer that does not reside or maintain an office in the United States (including any territory or possession of the United States) and that engages in any enterprise that makes use of one or more ports in the United States (as defined in section 2101 of title 46, United States Code), jurisdiction shall be under the district court most proximate to the place of the occurrence of the personal injury or death that is the subject of the action.'; and

(3) by adding at the end the following new paragraph:

`(2)(A) The employer of a master or member of the crew of a vessel--

`(i) may, at the election of the employer, participate in an authorized compensation plan under the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.); and

`(ii) if the employer makes an election under clause (i), notwithstanding section 2(3)(G) of the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 902(3)(G)), shall be subject to that Act.

`(B) If an employer makes an election, in accordance with subparagraph (A), to participate in an authorized compensation plan under the Longshore and Harbor Workers' Compensation Act--

`(i) a master or crew member employed by that employer shall be considered to be an employee for the purposes of that Act; and

`(ii) the liability of that employer under that Act to the master or crew member, or to any person otherwise entitled to recover damages from the employer based on the injury, disability, or death of the master or crew member, shall be exclusive and in lieu of all other liability.'.

(b) MINIMUM REQUIREMENTS- All vessels, whether documented in the United States or not, operating in the coastwise trade of the United States shall be subject to minimum international labor standards for seafarers under international agreements in force for the United States, as determined by the Secretary of Transportation on the advice of the Secretaries of Labor and Defense.

SEC. 5. REGULATIONS REGARDING VESSELS.

(a) APPLICABLE MINIMUM REQUIREMENTS- Except as provided in subsection (b), the minimum requirements for vessels engaging in the transportation of cargo or merchandise in the United States coastwise trade shall be the recognized international standards in force for the United States (as determined by the Secretary of the department in which the Coast Guard is operating, in consultation with any other official of the Federal Government that the Secretary determines to be appropriate).

(b) CONSISTENCY IN APPLICATION OF STANDARDS- In any case in which any minimum requirement for vessels referred to in subsection (a) establishes a lower standard than a minimum that is applicable to vessels that are documented in a foreign country and that are admitted to engage in the transportation of cargo and merchandise in the United States coastwise trade, the standard applicable to such vessels that are documented in a foreign country shall be the standard to be applied to United States documented vessels.

SEC. 6. ENVIRONMENTAL STANDARDS.

All vessels, whether documented under the laws of the United States or not, engaging in the United States coastwise trade shall comply with all applicable United States and international environmental standards in force for the United States.

SEC. 7. REQUIREMENTS FOR CERTAIN NONCITIZENS IRREGULARLY ENGAGING IN DOMESTIC COASTWISE TRADE.

(a) IN GENERAL- Each person or entity that is not a citizen of the United States, as defined in section 2101(3a) of title 46, United States Code, that owns or operates vessels that irregularly engage in the United States domestic coastwise trade shall--

(1) name an agent upon whom process may be served;

(2) abide by all applicable laws of the United States, including applicable environmental and tax laws; and

(3) post evidence of documentation and endorsements aboard such vessel indicating the owner or owners of such vessel, including any person controlling vessels and the number of port calls and coastwise trips made during that calendar year.

(b) PERSONS TREATED AS SINGLE EMPLOYER- For purposes of paragraph (3), all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 shall be treated as 1 person.

END