What This Bill Does
This bill allows the Maritime Administration (a federal agency managing shipping and ports) to pay for repairs, upgrades and modifications to ships. The bill specifically covers work needed to make ships qualify as U.S. vessels or to convert civilian ships for military use.
Who It Affects
The Maritime Administration. Shipyard companies located in the United States. Ship owners and operators. Vessels participating in federal maritime programs.
Key Provisions
The Maritime Administration can finance reconstruction, reconditioning, retrofitting, repair or similar work in U.S. shipyards for vessels that need modifications to become qualified U.S. vessels. (Sec. 2)
The Maritime Administration can finance work needed for vessels to receive a coastwise endorsement (a permit allowing certain shipping activities). (Sec. 2)
The Maritime Administration can finance converting civilian U.S. vessels into military configurations. (Sec. 2)
The Maritime Administration can finance work on vessels under contract to the federal government and vessels in the Maritime Security Program, Emergency Preparedness Program, Cable Security Fleet, Tanker Security Fleet or National Defense Reserve Fleet. (Sec. 2)
Buy America requirements apply to funds the Maritime Administration spends under the Shipyard Modernization and Improvement Program (meaning materials must meet U.S. sourcing standards). (Sec. 3)
What Changes
Federal law currently limits what vessel work the Maritime Administration can finance. This bill expands that authority to include financing retrofits, repairs and modifications needed to qualify vessels as U.S. vessels or for military conversion purposes.
Important Definitions
None defined in the bill text.
I
118TH CONGRESS
1ST SESSION
H. R. 874
To amend title 46, United States Code, to allow the Administrator of the
Maritime Administration to finance vessel retrofit, repair, or similar
work required for the vessel to be a vessel of the United States, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 8, 2023
Mr. GARAMENDI introduced the following bill; which was referred to the
Committee on Armed Services
A BILL
To amend title 46, United States Code, to allow the Adminis-
trator of the Maritime Administration to finance vessel
retrofit, repair, or similar work required for the vessel
to be a vessel of the United States, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Federal Ship Financ-
4
ing Improvement Act’’.
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•HR 874 IH
SEC. 2. LOANS FOR RETROFITTING TO QUALIFY AS A VES-
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SEL OF THE UNITED STATES.
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Section 53706(a) of title 46, United States Code, is
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amended by adding at the end the following:
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‘‘(8) Financing (including reimbursement of an
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obligor for expenditures previously made for) the re-
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construction, reconditioning, retrofitting, repair, or
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similar work in a shipyard located in the United
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States—
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‘‘(A) required for the vessel to be a vessel
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of the United States;
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‘‘(B) required for the vessel to be issued a
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coastwise endorsement under chapter 121;
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‘‘(C) to convert a civilian vessel of the
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United States to a more useful military configu-
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ration;
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‘‘(D) for any vessel under contract to the
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Federal Government; or
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‘‘(E) for any vessel participating in—
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‘‘(i) the Maritime Security Program
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or the Emergency Preparedness Program
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under chapter 531;
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‘‘(ii) the Cable Security Fleet under
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chapter 532;
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‘‘(iii) the Tanker Security Fleet under
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chapter 534; or
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•HR 874 IH
‘‘(iv) the National Defense Reserve
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Fleet under section 57100.’’.
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SEC. 3. BUY AMERICA REQUIREMENTS FOR SHIPYARD
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MODERNIZATION AND IMPROVEMENT PRO-
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GRAM.
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Section 53733 of title 46, United States Code, is
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amended by adding at the end the following:
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‘‘(f) BUY AMERICA.—Section 54101(d)(2) shall apply
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to any funds obligated by the Administrator under this
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section.’’.
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SEC. 4. TECHNICAL CORRECTIONS.
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(a) CHAPTER 537.—The analysis for chapter 537 of
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title 46, United States Code, is amended by striking the
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item relating to section 53703 and inserting the following:
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‘‘53703. Application and administration.’’.
(b) CHAPTER 541.—The analysis for chapter 541 of
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title 46, United States Code, is amended to read as fol-
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lows:
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‘‘CHAPTER 541—MISCELLANEOUS
‘‘Sec.
‘‘54101. Assistance for small shipyards.’’.
Æ
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