HR 1486 RFS
101st CONGRESS
1st Session
H. R. 1486
IN THE SENATE OF THE UNITED STATES
May 3 (legislative day, JANUARY 3), 1989
Received; read twice and referred to the Committee on Commerce, Science,
and Transportation
AN ACT
To authorize appropriations for fiscal year 1990 for the Maritime
Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,

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be appropriated for the Maritime Administration--
(1) any amounts necessary to liquidate obligations under
operating-differential subsidy contracts for the fiscal year 1990 portion
of the total of current contract authority;
(2) $3,750,000 for research and development activities, to remain available
until expended, including--
(A) $2,250,000 for vessel design and shipyard studies; and
(B) $1,500,000 for other research.
(3) $33,205,000 for expenses related to manpower, education, and training,
including--
(A) $23,157,000 for maritime training at the Merchant Marine Academy at
Kings Point, New York;
(B) $8,670,000 for assistance to the State maritime academies and the
current fleet of five training ships; and
(C) $1,378,000 for manpower and additional training;
(4) $25,966,000 for operating programs, including--
(A) $17,853,000 for general administration;
(B) $957,000 for development of water transportation systems; and
(C) $7,156,000 for use of water transportation systems; and
(5) $246,909,000 for expenses related to national security support
capabilities, including--
(A) $245,608,000 for the National Defense Reserve Fleet, including--
(i) $86,865,000 for fleet additions, replacements, acquisitions, and
upgrading of vessels for the Ready Reserve Force;
(ii) $118,615,000 for maintenance and operations programs in support of
the Ready Reserve Force;
(iii) $4,000,000 for Ready Reserve Force facilities;
(iv) $29,550,000 for Ready Reserve Force vessel conversions; and
(v) $6,578,000 for other programs in the National Defense Reserve Fleet; and
(B) $1,301,000 for emergency planning operations.

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App. U.S.C. 1295c(g)) is amended--
(1) in paragraph (1)(B), by striking `and' the second place it appears;
(2) in paragraph (1), by striking subparagraph (C) and substituting the
following:
`(C) paid by the Secretary for the first complete or partial academic year
of attendance to the individual in a lump sum of $1,200 or on a prorated
basis based on actual attendance, and at a time during the second academic
year when the individual enters into an agreement accepting midshipman
and enlisted reserve status as required under paragraph (2); and
`(D) paid by the Secretary for the academic years after those years specified
in subparagraph (C) as the Secretary shall prescribe while the individual
is attending the academy.';
(3) in paragraph (2), by striking `apply for midshipman' and substituting
`accept midshipman and enlisted reserve';
(4) in paragraph (3)(D), by striking `to apply for an appointment as,'; and
(5) in paragraph (4), by striking `has attended a State maritime academy
for not less than two years' and insert `has accepted the payment described
in paragraph (1)(C) of this subsection'.
(b) The amendments made by this section apply to individuals who commence
attendance after December 31, 1989, at a State maritime academy in accordance
with section 1304 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1295c).

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Transportation, after consultation with other agencies in the executive
branch and the State, regional, and Federal maritime academies, shall
submit to Congress a study within one year to determine how currently
employed training vessels, United States-flag commercial vessels, vessels
in the Ready Reserve Force, and other vessels under the control of the
United States Government may be used to provide training opportunities
for State, regional, and Federal maritime academy students that will
produce licensed graduate officers. This study shall include data on the
cost effectiveness to the United States Government; cost impacts on the
affected State governments; safety of any vessels involved; safety of the
students; operational and scheduling impacts upon the several entities;
liability exposure, and the impact on national security sealift. No changes
in current shipboard training programs at the State maritime academies
are authorized until completion of this study and review by the Congress.

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App. U.S.C. 1295c(d)(1)) is amended--
(1) after `(d)(1)' by inserting `(A)'; and
(2) striking the second sentence and substituting:
`(B) Subject to clause (C) of this paragraph, the annual payment to the
academy under this subsection shall be at least equal to the amount given
to the academy for its maintenance and support by the State in which it
is located, or, for a regional maritime academy, by all States cooperating
to sponsor the academy.
`(C) The amount under clause (B) of this paragraph may not be more than
$25,000, or--
`(i) $100,000 if the academy satisfies subsection (f)(2) of this section; or
`(ii) $200,000 if the regional maritime academy satisfies subsection (f)(2)
of this section.'.

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App. U.S.C. 1744) if amended to read as follows:
`SEC. 11. (a) The Secretary of Transportation shall maintain a National
Defense Reserve Fleet, including any vessel assigned by the Secretary to
the Ready Reserve Force component of the fleet, consisting of those vessels
owned or acquired by the United States Government that the Secretary, after
consultation with the Secretary of the Navy, determines are of value for
national defense purposes and that the Secretary of Transportation decides
to place and maintain in the fleet.
`(b) Except as otherwise provided by law, a vessel in the fleet may be
used only--
`(1) for an account of an agency of the United States Government during
a period during which vessels may be requisitioned under section 902 of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1242); or
`(2) on the request of the Secretary of the Navy, and in accordance with
memoranda of agreement between the Secretary of Transportation and the
Secretary of Defense, for--
`(A) testing for readiness and suitability for mission performance;
`(B) defense sealift functions for which other sealift assets are not
reasonably available; and
`(C) support of the deployment of the United States armed forces in a
military contingency, for military contingency operations, or for civil
contingency operations upon orders from the National Command Authority; or
`(3) for otherwise lawfully permitted storage or transportation of
nondefense related cargo as directed by the Secretary of Transportation
with the concurrence of the Secretary of Defense.
`(c) The Secretary of Transportation may enter into a contract for the
maintenance of the fleet, including the force, only for--
`(1) the repair, activation, operation, berthing, towing, or lay-up of
a vessel;
`(2) a vessel used by a State maritime academy; and
`(3) obtaining maintenance technical services when--
`(A) the technical expertise required for that service is beyond the
capabilities of the fleet staff or when the fleet has insufficient personnel
resources to adequately maintain the fleet; and
`(B) the contract does not result in reducing employment at the fleet site.'.

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is amended by striking `1990.' and substituting `1995.'.
NATIONAL MARITIME ENHANCEMENT INSTITUTE

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National Maritime Enhancement Institutes.
(b) SCOPE- Activities undertaken by the Institute include--
(1) conducting research concerning methods for improving maritime industries'
performance;
(2) enhancing the competitiveness of domestic maritime industries in
international trade;
(3) forecasting trends in maritime trade;
(4) assessing technological advancements;
(5) developing management initiatives and training;
(6) analyzing economic and operational impacts of regulatory policies and
international negotiations or agreements pending before the international
bodies;
(7) assessing the compatibility of domestic maritime infrastructure systems
with overseas transport systems;
(8) fostering innovations in maritime transportation pricing; and
(9) improving maritime economics and finance.
(c) APPLICATION- An institution seeking designation as a National Maritime
Enhancement Institute shall submit an application under regulations
prescribed by the Secretary.
(d) SELECTION CRITERIA- The Secretary shall select a designee under this
Act on the basis of the following criteria:
(1) the demonstrated research and extension resources available to the
designee for carrying out this subsection;
(2) the capability of the designee to provide leadership in making national
and regional contributions to the solution of both long-range and immediate
problems of the domestic maritime industry;
(3) an established program encompassing research and training directed to
enhancing maritime industries;
(4) a demonstrated ability to assemble and evaluate pertinent information
from national and international sources and to disseminate results of
maritime industry research and educational programs through a continuing
education program; and
(5) the designee be a nonprofit institution of higher learning.
(e) ELIGIBILITY FOR GRANTS- The Secretary may make research grants to an
Institute from amounts appropriated for that purpose.

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(a) DETERMINATION BY SECRETARY OF STATE- If the Secretary of State,
with the concurrence of the United States Trade Representative and the
Secretary of Commerce, determines that the public interest so requires,
the Secretary of Transportation is authorized to award to a domestic firm
a contract that, under the use of competitive procedures, would be awarded
to a foreign firm, if--
(1) the final product of the domestic firm will be completely assembled
in the United States;
(2) when completely assembled, not less than 50 per centum of the final
product of the domestic firm will be domestically produced; and
(3) the difference between the bids submitted by the foreign and domestic
firms is not more than 6 per centum.
In determining under this subsection whether the public interest so requires,
the Secretary of State shall take into account United States international
obligations and trade relations.
(b) LIMITED APPLICATION- This section shall not apply to the extent
to which--
(1) such applicability would not be in the public interest;
(2) compelling national security considerations require otherwise; or
(3) the United States Trade Representative determines that such an award
would be in violation of the General Agreement on Tariffs and Trade or an
international agreement to which the United States is a party.
(c) LIMITATION- This section shall apply only to contracts for which--
(1) amounts are authorized by this Act to be made available; and
(2) solicitations for bids are issued after the date of the enactment of
this Act.
(d) REPORT TO CONGRESS- The Secretary of Transportation shall report to
the Congress on contracts covered under this section and entered into
with foreign entities in fiscal years 1990 and 1991 and shall report
to the Congress on the number of contracts that meet the requirements
of subsection (a) but which are determined by the United States Trade
Representative to be in violation of the General Agreement on Tariffs
and Trade or an international agreement to which the United States is a
party. The Secretary of Transportation shall also report to the Congress
on the number of contracts covered under this Act and awarded based upon
the parameters of this section.
(e) DEFINITIONS- For purposes of this section--
(1) the term `domestic firm' means a business entity that is incorporated
in the United States and that conducts business operations in the United
States; and
(2) the term `foreign firm' means a business entity not described in
paragraph (1).
Passed the House of Representatives May 2, 1989.
Attest:
DONNALD K. ANDERSON,
Clerk.r centum.
In determining under this subsection whether the public interest so requires,
the Secretary of State shall take into account United S

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To authorize appropriations for fiscal year 1990 for the Maritime Administration and for other purposes. — HR. 1486

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