Elijah E. Cummings Merchant Mariner Workforce Development Act
This bill directs the Department of Transportation (DOT) to establish the Elijah E. Cummings Merchant Mariner Career Training Loan Program to make loans available to certain students for the training of U.S. merchant mariners, including those working to receive a Standards of Training, Certification and Watchkeeping endorsement.
The program shall be administered by the U.S. Maritime Administration (MARAD).
MARAD may not make loans to a student under the program in an amount that exceeds $30,000 in a calendar year or $120,000 in the aggregate.
MARAD must publish a plan to recruit, train, and retain merchant mariners, including (1) a strategy to address merchant mariner recruitment, training, and retention issues in the United States; and (2) demonstration and research priorities concerning such issues.
Additionally, DOT may award competitive grants to, or enter into contracts or cooperative agreements with, maritime training institutions to carry out demonstration and research projects that implement the priorities identified in the plan for the purpose of recruiting, training, or retaining U.S. merchant mariners.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7464 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7464
To amend title 46, United States Code, to direct the Secretary of
Transportation to establish a merchant mariner education loan program,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 1, 2020
Mr. Sean Patrick Maloney of New York (for himself, Mr. DeFazio, Mr.
Graves of Missouri, and Mr. Gibbs) introduced the following bill; which
was referred to the Committee on Transportation and Infrastructure
_______________________________________________________________________
A BILL
To amend title 46, United States Code, to direct the Secretary of
Transportation to establish a merchant mariner education loan program,
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 ``Elijah E. Cummings Merchant Mariner
Workforce Development Act''.
SEC. 2. CENTERS OF EXCELLENCE FOR DOMESTIC MARITIME WORKFORCE TRAINING
AND EDUCATION: TECHNICAL AMENDMENTS.
(a) Redesignation and Transfer of Section.--Section 54102 of title
46, United States Code, is redesignated as section 51706 of such title
and transferred to appear after section 51705 of such title.
(b) Clerical Amendments.--Title 46, United States Code, is
amended--
(1) in the analysis for chapter 541, by striking the item
relating to section 54102; and
(2) in the analysis for chapter 517, by striking the item
relating to section 51705 and inserting the following:
``51705. Training for use of force against piracy.
``51706. Center of excellence for domestic maritime workforce training
and education''.
SEC. 3. MERCHANT MARINER EDUCATION LOAN PROGRAM.
(a) In General.--Chapter 517 of title 46, United States Code, as
amended by section 2 of this Act, is further amended by adding at the
end the following:
``Sec. 51707. Merchant mariner career training loan program
``(a) Establishment.--The Secretary of Transportation shall
establish the Elijah E. Cummings Merchant Mariner Career Training Loan
Program (in this section referred to as the `program') in accordance
with the requirements of this section.
``(b) Purpose.--The purpose of the program shall be to make
merchant mariner career training loans available to eligible students
to provide for the training of United States merchant mariners,
including those working to receive a Standards of Training,
Certification and Watchkeeping endorsement under subchapter B of
chapter I of title 46, Code of Federal Regulations.
``(c) Administration.--The program shall be carried out by the
Secretary, acting through the Administrator of the Maritime
Administration.
``(d) Duties.--The Secretary shall--
``(1) allocate, on an annual basis, the award of loans
under the program based on the needs of students;
``(2) develop an application process and eligibility
criteria for the award of loans under the program;
``(3) approve applications for loans under the program
based on the eligibility criteria and allocations made under
paragraph (1); and
``(4) designate maritime training institutions at which
loans made under the program may be used.
``(e) Designation of Maritime Training Institutions.--
``(1) In general.--In designating maritime training
institutions under subsection (d)(4), the Secretary--
``(A) may include Federal, State, and commercial
training institutions and nonprofit training
organizations, including centers of excellence
designated under section 51706;
``(B) shall designate institutions based on
geographic diversity and scope of classes offered;
``(C) shall ensure that designated institutions
have the ability to administer the program; and
``(D) shall ensure that designated institutions
meet requirements to provide training instruction for
appropriate Coast Guard-approved training instruction.
``(2) Exclusions.--The Secretary--
``(A) may exclude from participation in the program
a maritime training institution that has had severe
performance deficiencies, including deficiencies
demonstrated by audits or program reviews conducted
during the 5 calendar years immediately preceding the
present year;
``(B) shall exclude from participation in the
program a maritime training institution that has
delinquent or outstanding debts to the United States,
unless such debts are being repaid under or in
accordance with a repayment arrangement satisfactory to
the United States, or the Secretary in the Secretary's
discretion determines that the existence or amount of
any such debts has not been finally determined by the
appropriate Federal agency;
``(C) may exclude from participation in the program
a maritime training institution that has failed to
comply with quality standards established by the
Department of Labor, the Coast Guard, or a State; and
``(D) may establish such other criteria as the
Secretary determines will protect the financial
interest of the United States and promote the purposes
of this section.
``(f) State Maritime Academies.--
``(1) Use of funds for loans to students attending state
maritime academies.--The Secretary may obligate not more than
50 percent of the amounts appropriated to carry out this
section for a fiscal year for loans to undergraduate students
attending State maritime academies receiving assistance under
chapter 515 of this title.
``(2) Academic standards for students.--Students at State
maritime academies receiving loans under the program shall
maintain satisfactory progress toward the completion of their
course of study as evidenced by the maintenance of a cumulative
C average, or its equivalent, or academic standing consistent
with the requirements for graduation, as determined by the
institution.
``(g) Loan Amounts and Use.--
``(1) Maximum amounts.--
``(A) In general.--The Secretary may not make loans
to a student under the program in an amount that
exceeds $30,000 in a calendar year or $120,000 in the
aggregate.
``(B) Adjustment for inflation.--The Secretary
shall, every 5 years for the life of a loan under the
program, adjust the maximum amounts described in
subparagraph (A) in accordance with any change in the
Consumer Price Index for All Urban Consumers published
by the Bureau of Labor Statistics of the Department of
Labor that occurs since the previous adjustment.
``(2) Use of loan proceeds.--A student who receives a loan
under the program may use the proceeds of the loan only for
postsecondary expenses incurred at an institution designated by
the Secretary under subsection (d)(4) for books, tuition,
required fees, travel to and from training facilities, and room
and board.
``(h) Student Eligibility.--
``(1) In general.--Subject to paragraph (2), to be eligible
to receive a loan under the program, a student shall--
``(A) be eligible to hold a license or merchant
mariner document issued by the Coast Guard;
``(B) provide to the Secretary such information as
the Secretary may require, including all current Coast
Guard documents, certifications, proof of United States
citizenship or permanent legal status, and a statement
of intent to enter a maritime career;
``(C) meet the enrollment requirements of a
maritime training institution designated by the
Secretary under subsection (d)(4); and
``(D) sign an agreement to--
``(i) complete a course of instruction at
such a maritime training institution; and
``(ii) maintain a license or document and
work under the authority of the license or
document and any associated endorsements for at
least 18 months following the date of
graduation from the maritime program for which
the loan proceeds will be used.
``(2) Limitation.--An undergraduate student at the United
States Merchant Marine Academy shall not be eligible for a loan
under the program.
``(i) Administration of Loans.--
``(1) Contents of loan agreements.--Any agreement between
the Secretary and a student borrower for a loan under the
program shall--
``(A) be evidenced by a note or other written
instrument that provides for the repayment of the
principal amount of the loan and any origination fee,
together with interest thereon, in equal installments
(or, if the student borrower so requests, in graduated
periodic installments determined in accordance with
such schedules as may be approved by the Secretary)
payable quarterly, bimonthly, or monthly, at the option
of the student borrower, over a period beginning 9
months from the date on which the student borrower
completes study or discontinues attendance at the
maritime program for which the loans are used at the
institution approved by the Secretary and not exceeding
10 years;
``(B) include provision for acceleration of
repayment of the whole, or any part, of such loan, at
the option of the student borrower;
``(C) provide the loan without security and without
endorsement;
``(D) provide that the liability to repay the loan
shall be canceled upon the death of the student
borrower, or if the student borrower becomes
permanently and totally disabled, as determined in
accordance with regulations to be issued by the
Secretary;
``(E) contain a notice of the system of disclosure
of information concerning default on such loan to
credit bureau organizations; and
``(F) include provisions for deferral of repayment,
as determined by the Secretary.
``(2) Rate of interest.--A student borrower who receives a
loan under the program shall be obligated to repay the loan
amount to the Secretary, together with interest beginning in
the period referred to in paragraph (1)(A), at a rate of
interest determined by the Secretary, in consultation with the
Secretary of Education, in accordance with section 455 of the
Higher Education Act of 1965 (20 U.S.C. 1087e).
``(3) Disclosure required prior to disbursement.--
``(A) In general.--The Secretary shall at or prior
to the time the Secretary makes a loan to a student
borrower under the program, provide thorough and
adequate loan information on such loan to the student
borrower. The disclosures required by this paragraph
may be made as part of the written application material
provided to the student borrower, as part of the
promissory note evidencing the loan, or on a separate
written form provided to the student borrower.
``(B) Contents.--The disclosures shall include--
``(i) the address to which communications
and payments should be sent;
``(ii) the principal amount of the loan;
``(iii) the amount of any charges collected
at or prior to the disbursal of the loan and
whether such charges are to be deducted from
the proceeds of the loan or paid separately by
the student borrower;
``(iv) the stated interest rate on the
loan;
``(v) the yearly and cumulative maximum
amounts that may be borrowed;
``(vi) an explanation of when repayment of
the loan will be required and when the student
borrower will be obligated to pay interest that
accrues on the loan;
``(vii) a statement as to the minimum and
maximum repayment term that the Secretary may
impose, and the minimum monthly payment
required by law and a description of any
penalty imposed as a consequence of default,
such as liability for expenses reasonably
incurred in attempts by the Secretary to
collect on a loan;
``(viii) a statement of the total
cumulative balance, including the loan applied
for, owed by the student borrower to the
Secretary, and an estimate of the projected
monthly payment, given such cumulative balance;
``(ix) an explanation of any special
options the student borrower may have for loan
consolidation or other refinancing of the loan;
``(x) a statement that the student borrower
has the right to prepay all or part of the
loan, at any time, without penalty;
``(xi) a statement summarizing
circumstances in which repayment of the loan or
interest that accrues on the loan may be
deferred, and a brief notice of the program for
repayment of loans, on the basis of military
service, pursuant to the Department of Defense
educational loan repayment program (10 U.S.C.
16302);
``(xii) a definition of default and the
consequences to the student borrower if the
student borrower defaults, together with a
statement that the disbursement of, and the
default on, a loan under this part shall be
reported to a credit bureau or credit reporting
agency;
``(xiii) to the extent practicable, the
effect of accepting the loan on the eligibility
of the student borrower for other forms of
student assistance; and
``(xiv) an explanation of any cost the
student borrower may incur in the making or
collection of the loan.
``(C) Information to be provided without cost.--The
information provided under this paragraph shall be
available to the Secretary without cost to the student
borrower.
``(4) Repayment after default.--The Secretary may require
any student borrower who has defaulted on a loan made under the
program to--
``(A) pay all reasonable collection costs
associated with such loan; and
``(B) repay the loan pursuant to an income
contingent repayment plan.
``(5) Authorization to reduce rates and fees.--
Notwithstanding any other provision of this section, the
Secretary may prescribe by regulation any reductions in the
interest rate or origination fee paid by a student borrower of
a loan made under the program as the Secretary determines
appropriate to encourage ontime repayment of the loan. Such
reductions may be offered only if the Secretary determines the
reductions are cost neutral and in the best financial interest
of the United States.
``(6) Collection of repayments.--The Secretary shall
collect repayments made under the program and exercise due
diligence in such collection, including maintenance of all
necessary records to ensure that maximum repayments are made.
Collection and servicing of repayments under the program shall
be pursued to the full extent of the law, including wage
garnishment if necessary. The Secretary of the Department in
which the Coast Guard is operating shall provide the Secretary
of Transportation with any information regarding a merchant
mariner that may aid in the collection of repayments under this
section.
``(7) Repayment schedule.--A student borrower who receives
a loan under the program shall repay the loan quarterly,
bimonthly, or monthly, at the option of the student borrower,
over a period beginning 9 months from the date the student
borrower completes study or discontinues attendance at the
maritime program for which the loan proceeds are used and
ending not more than 10 years after the date repayment begins.
Provisions for deferral of repayment shall be determined by the
Secretary.
``(8) Contracts for servicing and collection of loans.--The
Secretary may--
``(A) enter into a contract or other arrangement
with State or nonprofit agencies and, on a competitive
basis, with collection agencies for servicing and
collection of loans under this section; and
``(B) conduct litigation necessary to carry out
this section.
``(j) Revolving Loan Fund.--
``(1) Establishment.--The Secretary shall establish a
revolving loan fund consisting of amounts deposited in the fund
under paragraph (2).
``(2) Deposits.--The Secretary shall deposit in the fund--
``(A) receipts from the payment of principal and
interest on loans made under the program; and
``(B) any other monies paid to the Secretary by or
on behalf of individuals under the program.
``(3) Availability of amounts.--Amounts in the fund shall
be available to the Secretary, without further appropriation--
``(A) to cover the administrative costs of the
program, including the maintenance of records and
making collections under this section; and
``(B) to the extent that amounts remain available
after paying such administrative costs, to make loans
under the program.
``(4) Maintenance of records.--The Secretary shall maintain
accurate records of the administrative costs referred to in
paragraph (3)(A).
``(k) Annual Report.--The Secretary, on an annual basis, shall
submit to the Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate a report on the program, including--
``(1) the total amount of loans made under the program in
the preceding year;
``(2) the number of students receiving loans under the
program in the preceding year; and
``(3) the total amount of loans made under program that are
in default as of the date of the report.
``(l) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 2021 through 2026--
``(1) $10,000,000 for making loans under the program; and
``(2) $1,000,000 for administrative expenses of the
Secretary in carrying out the program.
``Sec. 51708. Merchant mariner recruitment, training, and retention
program
``(a) Strategic Plan.--
``(1) In general.--Not later than one year after the date
of enactment of this section, and at least once every 3 years
thereafter, the Secretary of Transportation, acting through the
Administrator of the Maritime Administration, shall publish in
the Federal Register a plan to recruit, train, and retain
merchant mariners for the 5-year period following the date of
publication of the most recently published plan under this
paragraph.
``(2) Contents.--A plan published under paragraph (1) shall
contain--
``(A) a strategy to address merchant mariner
recruitment, training, and retention issues in the
United States; and
``(B) demonstration and research priorities
concerning merchant mariner recruitment, training, and
retention.
``(3) Factors.--In developing a plan under paragraph (1),
the Secretary shall take into account, at a minimum--
``(A) the availability of existing research (as of
the date of publication of the plan); and
``(B) the need to ensure results that have broad
applicability.
``(4) Consultation.--In developing a plan under paragraph
(1), the Secretary shall consult with representatives of the
maritime industry, labor organizations, including the Commander
of the Transportation Command and the Commander of the Military
Sealift Command, and other governmental entities and persons
with an interest in the maritime industry.
``(5) Transmittal to congress.--The Secretary shall
transmit copies of a plan published under paragraph (1) to the
Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate.
``(b) Demonstration and Research Projects.--
``(1) In general.--The Secretary may award grants to, or
enter into contracts or cooperative agreements with, a maritime
training institutions designated under section 51607(e) or a
consortium such institutions, to carry out demonstration and
research projects that implement the priorities identified in
the plan prepared under subsection (a)(1), for the purpose of
recruiting, training, or retaining United States merchant
mariners.
``(2) Competitive awards.--Grants shall be awarded. and
contracts and cooperative agreements shall be entered into,
under this subsection on a competitive basis under guidelines
and requirements to be established by the Secretary.
``(3) Applications.--To be eligible to receive a grant or
enter into a contract or cooperative agreement under this
section for a project under this subsection, a maritime
training institution shall submit to the Secretary a proposal
that includes, at a minimum--
``(A) a description of the project; and
``(B) a method for evaluating the effectiveness of
the project.
``(4) Eligible projects.--Projects eligible for grants,
contracts, and cooperative agreements under this subsection--
``(A) shall carry out the demonstration and
research priorities included in the plan published
under subsection (a)(1); and
``(B) may--
``(i) provide training to upgrade the
skills of United States merchant mariners,
including training to acquire a Standards of
Training, Certification and Watchkeeping
endorsement under subchapter B of chapter I of
title 46, Code of Federal Regulations;
``(ii) promote the use of distance learning
that enables students to take courses through
the use of teleconferencing, the Internet, and
other media technology;
``(iii) assist in providing services to
address merchant mariner recruitment and
training of youth residing in targeted high
poverty areas within empowerment zones and
enterprise communities;
``(iv) implement partnerships with national
and regional organizations with special
expertise in developing, organizing, and
administering merchant mariner recruitment and
training services;
``(v) design, develop, and test an array of
approaches to providing recruitment, training,
or retention services, including to one or more
targeted populations;
``(vi) in conjunction with employers,
organized labor, other groups (such as
community coalitions), and Federal, State, or
local agencies, design, develop, and test
various training approaches in order to
determine effective practices; or
``(vii) assist in the development and
replication of effective service delivery
strategies for the national maritime industry
as a whole.
``Sec. 51709. Authorization of appropriations
``There are authorized to be appropriated for each of fiscal years
2021 through 2026--
``(1) $10,000,000 for making grants and entering into
cooperative agreements under sections 51707 and 51708; and
``(2) $1,000,000 for administrative expenses of the
Secretary in carrying out such sections.''.
(b) Conforming Amendment.--The analysis for such chapter is amended
by adding at the end the following:
``51707. Merchant mariner career training loan program.
``51708. Merchant mariner recruitment, training, and retention program.
``51709. Authorization of appropriations.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Transportation and Infrastructure.
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
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