Noncontiguous Shipping Relief Act of 2023
This bill establishes a limited exception to coastwise laws to allow foreign-flag freight vessels to transport merchandise domestically to or from a port in the noncontiguous United States. The bill also addresses various issues related to foreign-flag freight vessels engaged in coastwise trade (i.e., domestic waterborne trade between U.S. ports).
Under the coastwise laws, commonly known as the Jones Act, a freight vessel may not transport merchandise between U.S. ports unless it is U.S.-built, at least 75% owned by U.S. citizens, and mostly crewed by U.S. citizens. The bill authorizes qualifying foreign-flag vessels to transport merchandise between (1) a port in the contiguous United States and a port in the noncontiguous United States (i.e., Alaska, Hawaii, Puerto Rico, or a U.S. territory or possession); or (2) two ports in the noncontiguous United States.
Under the bill, all foreign-flag freight vessels operating in U.S. coastwise trade must comply with the (1) minimum international labor standards applicable to U.S. seafarers, and (2) same environmental standards that apply to U.S. vessels.
The bill authorizes such operators to participate in the Longshore and Harbor Workers’ Compensation program on behalf of masters and crew members they employ.
The bill also requires foreign-flag vessel owners and operators engaging in coastwise trade to identify an agent for service of process, abide by U.S. tax and other laws, and maintain specified documentation on board. Additionally, lawsuits against such vessels alleging personal injury or death must be brought in U.S. district court.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2588 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2588
To amend title 46, United States Code, to allow transportation of
merchandise in noncontiguous trade on foreign-flag vessels, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 13, 2023
Mr. Case (for himself and Mr. Moylan) introduced the following bill;
which was referred to the Committee on Transportation and
Infrastructure, and in addition to the Committee on Education and the
Workforce, 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
_______________________________________________________________________
A BILL
To amend title 46, United States Code, to allow transportation of
merchandise in 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 ``Noncontiguous Shipping Relief Act of
2023''.
SEC. 2. TRANSPORTATION OF CERTAIN MERCHANDISE.
(a) In General.--Section 55102 of title 46, United States Code, is
amended by redesignating subsection (c) as subsection (d) and by
inserting after subsection (b) the following:
``(c) Noncontiguous Trade Exemption.--
``(1) In general.--Subsection (b) shall not apply with
respect to transportation in noncontiguous trade of merchandise
on a foreign qualified freight vessel for which the Secretary
of Transportation has issued a certificate of documentation
under chapter 121.
``(2) Definitions.--In this subsection:
``(A) Foreign qualified freight vessel.--The term
`foreign qualified freight vessel' means a freight
vessel (as that term is defined in section 2101) of not
less than 1,000 gross tons that--
``(i) was not built in the United States
(or if rebuilt, not rebuilt in the United
States);
``(ii) is registered in a foreign country;
and
``(iii) employs United States citizens to
the extent required of vessels registered under
section 12102.
``(B) Noncontiguous trade.--The term `noncontiguous
trade' has the meaning given such term in section
53501.''.
(b) Coastwise Endorsements.--Section 12112(a)(2)(B) of title 46,
United States Code, is amended--
(1) in clause (ii), by striking ``or'';
(2) in clause (iii), by striking ``and'' and inserting
``or''; and
(3) by adding at the end the following:
``(iv) is a foreign qualified freight vessel (as
defined in section 55102(c)) used for transportation
referred to in section 55102(c) for which the Secretary
of Transportation has issued a certificate of
documentation; and''.
(c) Foreign Transfer.--Section 56101(a)(2) of title 46, United
States Code, is amended--
(1) by striking ``Paragraph (1)(A)'' and inserting:
``(A) Fishing vessel.--Paragraph (1)(A)''; and
(2) by adding at the end the following:
``(B) Foreign qualified freight vessel.--Paragraph
(1) does not apply with respect to a foreign qualified
freight vessel for which the Secretary has issued a
certificate of documentation after the date of
enactment of the Noncontiguous Shipping Relief Act of
2023 and that is used solely for transportation
referred to in section 55102(c).
``(C) Foreign registry.--A foreign qualified
freight vessel may be placed under foreign registry
without the approval of the Secretary at any time after
such vessel is issued a certificate of documentation.
At such time as such vessel is placed under foreign
registry, the Secretary shall revoke the certificate of
documentation issued by the Secretary.''.
SEC. 3. CITIZENSHIP AND TRANSFER PROVISIONS.
(a) Citizenship of Corporations, Partnerships, and Associations.--
Section 50501 of title 46, United States Code, is amended by adding at
the end the following:
``(e) Exceptions.--Subsection (c) and paragraphs (2) and (3) of
subsection (b) shall not apply to a foreign qualified freight vessel
(as such term is defined in section 55102(c)) used for transportation
referred to in section 55102(c)(2)(B).''.
(b) Approval of Transfer of Registry or Operation Under Authority
of a Foreign Country or for Scrapping in a Foreign Country;
Penalties.--Section 56101 of title 46, United States Code, is amended
by adding at the end the following:
``(f) Transfer of Foreign Qualified Freight Vessels.--To promote
the transfer of foreign qualified freight vessels to be documented
under chapter 121 of this title for use for transportation referred to
in section 55102(c)(2)(B) of this title, the Secretary may grant
approval under subsection (a) with respect to such a vessel before the
date the vessel is documented.
``(g) Foreign Qualified Freight Vessel Defined.--In this section,
the term `foreign qualified freight vessel' has the meaning given such
term in section 55102(c) of this title.''.
SEC. 4. LABOR PROVISIONS.
(a) Liability for Injury or Death of Master or Crew Member.--
Section 30104(a) of title 46, United States Code, is amended by adding
at the end the following: ``In an action brought under this section
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 this
title) 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.''.
(b) Election To Under Participate Longshore and Harbor Workers'
Compensation Act.--Section 30104 of title 46, United States Code, is
amended by adding at the end the following:
``(c) Participation in an Authorized Compensation Plan.--The
employer of a master or member of the crew of a vessel may participate
in an authorized compensation plan under the Longshore and Harbor
Workers' Compensation Act (33 U.S.C. 901 et seq.). An employer that
participates in such a plan is subject to such Act. If an employer
participates in an authorized compensation plan under such Act--
``(1) a master or crew member employed by such employer
shall be considered to be an employee for the purposes of such
Act; and
``(2) the liability of that employer under such 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.''.
(c) 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 104 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) of subsection (a), 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.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Education and the Workforce, 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.
Referred to the Subcommittee on Coast Guard and Maritime Transportation.
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